Road Ministry Revamps Bidding Rules: Single Bids Now Valid, But With Conditions

In a significant shift in highway project bidding, the Ministry of Road Transport and Highways has announced that a single bid for national highway work will now be accepted, provided it meets certain conditions.

"Single bids received in open bidding will be considered valid, provided the procurement was satisfactorily advertised, sufficient time was given for the submission of bids, the qualification criteria were not unduly restrictive, and prices are reasonable in comparison to market value," the ministry stated in its circular dated 28 August.

Previously, single bids received in the first round of bidding were automatically cancelled, leading to re-tendering. If single bids were also received in the re-tender, they were accepted only after approval by the competent authority.

The ministry's decision is in line with a 2021 letter from the Finance Ministry, which stresses that the lack of competition should not be assessed solely based on the number of bidders.

"It has become a common practice among some procuring entities to routinely assume that open tenders which result in single bids are not acceptable and to go for re-tendering as a safe course of action. This is not correct," the Finance Ministry pointed out in its letter.

"Re-bidding involves costs: first, the actual costs of re-tendering; second, the delay in executing the work, which consequently delays the attainment of the purpose for which the procurement is being made; and third, the possibility that the re-bid may result in a higher bid," the letter added.

Regarding the reasonableness of prices, the circular from the Ministry of Road Transport specifies that the evaluation committee should compare the bid rates with those of similar contracts awarded elsewhere.

The purchase price of similar contracts should be adjusted for inflation, geographical conditions, and other relevant factors to ensure a fair evaluation.