East Coast Railway's bid to procure new technology faces initial tendering difficulties

Bhubaneswar (Odisha) [India], Aug 29 (ANI): East Coast Railway has decided to procure loco attachments technology and customise it on a trial basis before using it widely, but the work encountered initial difficulties in the tendering process.
A tender was floated for the procurement in October 2019 which was discharged due to high rates. Three firms participated in the bid. The tender was again re-floated in December 2019 and four bidders participated. However, since the rate offered by the lowest firm was high, a negotiation was held with this firm and the firm agreed to reduce the price by 25 per cent, ECoR said in a release.
The negotiator on behalf of the lowest bidder promised to make a revised offer online, as agreed. But later on, it was found that the lowest the firm had made a revised offer by reducing the price which was less by 1 per cent of the initial offer.
This was in utter disregard to the negotiation done as per rule. ECoR tender committee made a counter-offer to all the eligible four firms by distributing the required quantity equitably to the firms and quoting a price which was arrived in the negotiation, i.e., about 25 per cent less compared to lowest firm's offer.
This was done because, if counter-offer would have been made to the lowest firm only for the whole quantity, then it was certain that they would have rejected it leading again to discharge of the tender. The move of the tender committee yielded results and all four firms accepted the offer, according to the release.
Thus, the Railways shall get the experimental lot at 25 per cent reduced cost from all the four firms, setting a good benchmark price for large scale future procurement of the item all over Indian Railways. Further investigation is on by ECoR Vigilance to ascertain the reason behind the lowest bidding firm initially backing out from its negotiated offer to the Railways. (ANI)