LexThe Tamil Nadu Transparency in Tenders Act, 1998 and Rules, 2000
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FINANCE DEPARTMENT
TAMIL NADU TRANSPARENCY IN
TENDERS ACT, 1998.
TAMIL NADU TRANSPARENCY IN
TENDERS RULES, 2000.
AND
TAMIL NADU TRANSPARENCY IN TENDERS
(PUBLIC PRIVATE PARTNERSHIP
PROCUREMENT) RULES, 2012.
(As amended upto the 26th June, 2018)
©
Government of Tamil Nadu
2018
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PREFACE
Government organizations procure a wide variety of
goods and services and undertake execution of works in
pursuance of their duties and responsibilities. With a
view to improving transparency in decision making in
public procurement and reducing the scope for
subjectivity, the Tamil Nadu Transparency in Tenders
Act, 1998 was enacted and the Rules thereunder made for
procurement of goods, execution of works and hiring of
consultants. Over the years, the need for certain
improvements was felt and its flexibility lies in its
amendments. Accordingly, amendments were made to the
said Act and Rules.
In this edition, the text of the Tamil Nadu Transparency
in Tenders Act, 1998, Tamil Nadu Transparency in
Tenders Rules, 2000 and Tamil Nadu Transparency in
Tenders (PPPP) Rules, 2012 has been brought up-to-date
by incorporating therein all amendments made up to
26th June 2018. The footnotes below the text indicate the
said amendment Acts and Rules by which such
amendments have been made.
I hope that this edition would be useful to procuring
officials working in various Government organisations
and will bring about greater transparency and
predictability.
K. SHANMUGAM
Fort St. George,
Chennai-600 009.
Dated: 14-08-2018.
Additional Chief Secretary to
Government
Finance (Salaries) Department.
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TABLE OF CONTENTS
i
TAMIL NADU TRANSPARENCY IN TENDERS ACT, 1998
Sections Content Pages
1. Short title, extent and commencement ..................... 2
2. Definitions .............................................................. 2
3. Prohibition or Procurement except by tender ........... 4
4. Regulation of Tenders .............................................. 5
5. Appointment of Bulletin Officer ............................... 5
6. Functions of Bulletin Officers .................................. 5
7. Appointment of Tender Inviting Authority and
Tender Accepting Authority ..................................... 6
8. Opening of Tender ................................................... 6
9. Functions of Tender Inviting Authority .................... 6
10. Evaluation and Acceptance of Tender ...................... 7
11. Appeal .................................................................... 9
12. Right to reject Tender .............................................. 10
13. Power to obtain information .................................... 10
14. Power of Government to call for records ................... 10
15. Procedure to be followed in certain cases ................. 10
16. Provisions of this Act not to apply in certain cases ... 11
17. Officers deemed to be Public Servant ....................... 15
18. Indemnity ............................................................... 15
19. Bar of Jurisdiction .................................................. 15
20. Act to override other laws ........................................ 15
21. Power to remove difficulties ..................................... 16
22. Power to make rules ................................................ 16
23. Savings ................................................................... 16
The Schedule .......................................................... 17
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TABLE OF CONTENTS
ii
TAMIL NADU TRANSPARENCY IN TENDERS RULES, 2000
Rules Content Pages
CHAPTER-I
PRELIMINARY
1. Short Title and Commencement.- ................................... 19
2. Definitions.- .................................................................. 19
CHAPTER-II
GENERAL
3. Categories of Procurement .............................................. 21
4. Methods of Tendering ..................................................... 21
CHAPTER-III
PUBLICITY
5. Publication of Tender Bulletin......................................... 22
6. Distribution of Tender Bulletin ....................................... 22
7. Tender Bulletin to contain information only .................... 23
8. Information to be published in District Tender Bulletin ... 23
9. Information to be published in the State Tender Bulletin . 23
10. Details to be mentioned in Notice Inviting Tenders .......... 24
11. Publication of Notice Inviting Tenders in Newspapers ..... 24
12. Sending Notice Inviting Tenders to all possible tenderers . 25
CHAPTER-IV
NOTICE INVITING TENDERS AND TENDER DOCUMENTS
13. Technical Specifications contained in Tender Documents 26
13-A General Condition ........................................................... 26
14. Commercial Conditions .................................................. 27
15. Tender Documents to clearly specify Evaluation Criteria . 30
16. Supply of Tender Documents .......................................... 30
17. Clarification to Tender Documents .................................. 31
CHAPTER-V
RECEIPT OF TENDERS AND TENDER OPENING
18. Place and Time for Receipt of Tenders ............................. 32
19. Marking of covers in which the tender is submitted ......... 33
20. Minimum time for submission of tenders ........................ 33
TABLE OF CONTENTS
iii
TAMIL NADU TRANSPARENCY IN TENDERS RULES, 2000
Rules Content Pages
20-A Withdrawal of Tenders Before Opening ........................... 33
21. Opening of Tenders ........................................................ 34
22. Procedure to be followed at tender opening ..................... 35
23. Changes and Alterations not to be permitted after tender
opening .......................................................................... 36
24. Tender Scrutiny Committee ............................................ 36
CHAPTER-VI
TENDER EVALUATION
25. Tender Evaluation to be in accordance with Evaluation
Criteria .......................................................................... 38
26. Time taken for Evaluation and Extension of tender
validity ........................................................................... 37
27. Process of Tender Evaluation to be confidential until the
award of the contract is notified ...................................... 37
28. Initial Examination to determine substantial
responsiveness ............................................................... 38
29. Determination of the Lowest Evaluated Price................... 39
29-A Treatment of Speculative Tenders ................................... 41
30. Preparation of Evaluation Report and Award of Tenders .. 41
CHAPTER-VI-A
PURCHASE PREFERENCE
30-A. Purchase Preference to Domestic Enterprises ................. 43
30-B. Purchase Preference to Government departments, Public
Sector Undertakings, Statutory Boards and others ......... 43
CHAPTER-VII
EVALUATION AND AWARD OF TENDERS IN SPECIAL CASES
31. Procurement in Special Cases ......................................... 44
31-A Fixed Rate Contract ........................................................ 45
32. Pre-qualification Procedure in a single stage, two cover
Tender ........................................................................... 46
32-A Pre-qualification with Multi-stage Tendering ................... 47
33. Low Value Procurement .................................................. 48
The Annexure................................................................. 49
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TABLE OF CONTENTS
iv
TAMIL NADU TRANSPARENCY IN TENDERS (PUBLIC PRIVATE
PARTNERSHIP PROCUREMENT) RULES, 2012.
Rules Content Pages
CHAPTER-I
PRELIMINARY
1. Short title, commencement and extent ............................ 51
2. Definitions .................................................................... 51
CHAPTER-II
PUBLIC PRIVATE PARTNERSHIP (PPP) - PROJECT
PROCUREMENT PLANNING
3. Identifying the procurement method for Public Private
Partnership (PPP) Project ............................................... 56
4. Two Stage Open Competitive Tendering .......................... 56
5. Open Competitive Tendering with Request for Technical
Proposal(RTP) ................................................................. 56
6. Open Competitive Tendering with Request for
Expressions of Interest (REOI) ........................................ 57
7. Formation of Tender Scrutiny and Evaluation
Committee .................................................................... 57
8. Engaging Consultants or Advisors .................................. 58
9. Information to be published in the State Tender Bulletin` 58
10. Details to be mentioned in Notice Inviting Tenders.- ........ 58
11. Publication of Notice Inviting Tenders in Newspapers ...... 59
12. Publication in Notice Board, Website and sending Notice
Inviting Tenders to all possible tenderers.- ..................... 59
13. Supply of Tender Documents ......................................... 60
14. Security ......................................................................... 60
15. Conflict of Interest ......................................................... 62
16. Clarifications on Tender Documents ............................... 63
17. Pre-submission Meeting ................................................. 64
18. Modification of Tender Documents and Responses ......... 64
19. Manner, Place and Due Date for Submission of
Responses ..................................................................... 65
20. Withdrawal of Tenders Before Opening ........................... 66
TABLE OF CONTENTS
v
TAMIL NADU TRANSPARENCY IN TENDERS (PUBLIC PRIVATE
PARTNERSHIP PROCUREMENT) RULES, 2012.
Rules Content Pages
21. Opening of Tenders ....................................................... 66
22. Procedure to be followed at Opening of Tenders .............. 66
23. Changes and alterations not to be permitted after
Opening of Tenders ....................................................... 67
24. Initial Examination to determine substantial
responsiveness .............................................................. 67
25. Clarifications on qualification information ...................... 68
26. Confidentiality ............................................................... 69
27. Record of Tender Proceedings ........................................ 69
CHAPTER-III
REQUEST FOR EXPRESSION OF INTEREST
28. Request for Expression of Interest (REOI) ........................ 70
CHAPTER-IV
REQUEST FOR QUALIFICATION
29. Request for Qualification (RFQ) ....................................... 72
30. Contents of Request for Qualification (RFQ) ................... 72
31. Eligibility of Applicants ................................................... 73
32. Qualifying Criteria .......................................................... 73
33. Schedule of Request for Qualification (RFQ) .................... 75
34. Removal of Conflict of Interest ........................................ 76
35. Evaluation of Applications .............................................. 76
36. Notification of Qualification ............................................ 76
CHAPTER-V
REQUEST FOR TECHNICAL PROPOSAL
37. Request for Technical Proposal (RTP) .............................. 77
38. Schedule of Request for Technical Proposal (RTP) ............ 79
39. Technical Evaluation ...................................................... 80
40. Notification of passed Technical Proposals to Qualified
Applicants ...................................................................... 80
41. Combining Request for Technical Proposal with Request
for Proposal .................................................................... 81
TABLE OF CONTENTS
vi
TAMIL NADU TRANSPARENCY IN TENDERS (PUBLIC PRIVATE
PARTNERSHIP PROCUREMENT) RULES, 2012.
Rules Content Pages
CHAPTER-VI
REQUEST FOR PROPOSAL
42. Request for Proposal (RFP) ........................................ 82
43. Project Scope .................... 83
44. Revenue Sharing or Revenue Support Mechanisms .... 83
45. Appointment and Role of Independent Auditor .......... 84
46. Appointment and Role of Independent Engineer ......... 84
47. Role of Lead Financial Institution .............................. 85
48. Treatment of Variation.- ............................................ 85
49. Evaluation Criteria.- ................................................. 86
50. Schedule of Request for Proposal (RFP) ...................... 87
51. Data Room.- ............................................................. 87
52. Site visit.- ................................................................. 88
53. Change in Composition of Consortium ....................... 88
54. Effectiveness of Tenders ............................................ 89
55. Evaluation of Tenders.- ............................................. 89
56. Selection of the Lowest Tenderer................................ 89
57. Treatment of Two Equal Tenders ............................... 90
58. Treatment of Speculative Tenders .............................. 91
59. Tender Finalization and Award .................................. 91
60. Monitoring of Concession Agreement ......................... 92
61. Change in Ownership ................................................ 92
SCHEDULES
I. Provisions of the Draft Concession Agreement............ 94
II. Scope of Work for Independent Auditor ...................... 97
III. Scope of Work for Independent Engineer ................... 98
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Notification issued under section 16(f) of TNTIT
Act,1998 ................................................................... 101
List of Amendments made ........................................ 119
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TAMIL NADU TRANSPARENCY IN
TENDERS ACT, 1998.
ii
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1
TAMIL NADU TRANSPARENCY IN TENDERS
ACT, 1998.
(TAMIL NADU ACT NO.43 OF 1998)
(Published in TNGGE No.742, 21st December 1998 - Part-IV – Section 2 – T.N. Acts and Ordinances)
The following Act of the Tamil Nadu Legislative Assembly received the
assent of the President on the 11th December 1998 and is hereby
published for general information:-
Act No.43 of 1998.
An Act to provide for transparency in the public procurement and
to regulate the procedure in inviting and accepting tenders and
matters connected therewith or incidental thereto.
Preamble.-
WHEREAS to maximise economy and efficiency in Government
procurement;
AND WHEREAS to foster and encourage effective participation by
tenderers in the process of tenders;
AND WHEREAS to promote healthy competition among tenderers;
AND WHEREAS to provide for fair and equitable treatment of all
tenderers;
AND WHEREAS it is expedient to eliminate irregularities, interference
and corrupt practices in the matters relating to tender processes by
providing transparency in such matters;
AND WHEREAS to promote the integrity of the process of tenders and to
promote fairness and public confidence in the processing of tenders by
ensuring transparency in the procedure relating to procurement;
TAMIL NADU TRANSPARENCY IN TENDERS ACT, 1998.
2
BE it enacted by the Legislative Assembly of the State of Tamil
Nadu in the Forty-ninth year of the Republic of India as follows:-
1. Short title, extent and commencement.- (1) This Act may
be called the Tamil Nadu Transparency in Tenders Act, 1998.
(2) It extends to the whole of the State of Tamil Nadu.
(3) It shall come into force on 1[such date] as the Government
may, by notification, appoint.
2. Definitions.- In this Act, unless the context otherwise
requires,-
(a) ‘Construction’ means all works associated with the
construction, reconstruction, demolition, repair or renovation of a
building, structure or any other related works;
2[(aa) ‘Domestic Enterprise’ means any micro and small
enterprise as defined in the Micro, Small and Medium Enterprises
Development Act, 2006 (Central Act 27 of 2006), which manufactures
or produces goods, provides or renders services within the State and
filed Part II of the Entrepreneurs Memorandum in the District
Industries Centres or filed Udyog Aadhaar portal.]
(b) ‘Goods’ means raw materials, products, equipment and
other objects of every kind and description and includes electricity;
(c) ‘Government’ means the State Government;
1 Appoints 1st day of October 2000 as the date on which the said Act shall come into force.
[TNGGE No.701 / 01-10-2000 (No.II(2) / FIN / 1051(d1) / 2000) - G.O.Ms.No.445 /
26th September, 2000].
2 Substituted for {“(aa) 'Domestic Small Scale Industrial Unit' means an industrial unit in which
the investment in fixed assets in plant and machinery, whether held in ownership or on lease
or by hire purchase, does not exceed rupees one hundred lakhs, and which manufactures the
goods within the State and registered with the Director of Industries and Commerce”-
Inserted by the TNTIT (Amendment) Act, 2001 (Tamil Nadu Act 14 of 2001) sec. 2(1)
[TNGGE No.667 / 24-09-2001] (w.e.f. 1-12-2001). [TNGGE No.44 / 21-11-2001 (No.II(2) /
FIN / 888(m-a) / 2001.- G.O.Ms. No.451, Finance (Salaries), 16th Nov. 2001]} by the TNTIT
(Amendment) Act, 2017 (Tamil Nadu Act 45 of 2017) sec. 2(1) [TNGG No.261 / 07-08-2017]
(w.e.f. 19-09-2017) [TNGG No.295 / 19-09-2017 (No. II(2)/FIN/783(d)/2017) - [G.O. Ms. No.
269, Finance (Salaries), 19th September 2017].
TAMIL NADU TRANSPARENCY IN TENDERS ACT, 1998.
3
3[(cc) ‘Lowest Tender’ means the tender which, on evaluation,
is found to be the most beneficial to the procuring entity in financially
quantifiable terms.]
(d) ‘Procurement’ means acquisition 4[by any means including
electronic mode of] purchase of goods or services and also of
construction;
(e) ‘Procuring entity’ means the entity specified in the
Schedule to this Act;
5[(ee) ‘Service’ means any subject matter of procurement but
does not include any goods or constructions or hiring of any person to
represent the procuring entity or give advice on Legal matters in any
judicial or quasi judicial proceeding.]
(f) ‘Tender’ means the formal offer made 6[by any means
including electronic mode] in pursuance of an invitation by the
procuring entity
(g) ‘Tender Bulletin’ means the bulletin published for each
district or State, containing details of invitation and acceptance of
tender;
(h) ‘Tender Bulletin Officer’ means any officer appointed by
the Government to publish the district or State Tender Bulletin;
3 Inserted by the TNTIT (Second Amendment) Act, 2012 (Tamil Nadu Act 31 of 2012) sec.2(i)
[TNGGE No.320/15-11-2012] (w.e.f. 07-12-2012) [TNGGE No.342 / 7-12-2012 (No.II(2) /
FIN / 815(g)/2012) - G.O.Ms.No.422, Finance (Salaries), 7th December, 2012].
4 Substituted [for ‘by any means by’] by the TNTIT (Amendment) Act, 2017 (Tamil Nadu Act 45
of 2017) sec.2(2) [TNGGE No.261 / 07-08-2017] (w.e.f. 19-09-2017)] [TNGGE No.295 / 19-
09-2017 (No.II(2)/ FIN/ 783(d )/2017) - G.O.Ms.No.269, Finance (Salaries),
19th September 2017].
5 Inserted by the TNTIT (Second Amendment) Act, 2018 (Tamil Nadu Act 45 of 2017) sec.2
[TNGGE No.136 / 13-08-2018] (w.e.f. 26-06-2018) [TNGGE No.224/26-06-2018 (No.II(2) /
FIN / 549(d) / 2018.- G.O.Ms. No.206, Finance (Salaries), 26th June 2018].
6 Inserted by the TNTIT (Amendment) Act, 2017 (Tamil Nadu Act 45 of 2017) sec.2(3) [TNGGE
No.261 / 07-08-2017] (w.e.f. 19-09-2017) [TNGGE No.295/19-09-2017 (No. II(2) / FIN/
783(d)/2017.- G.O.Ms. No.269, Finance (Salaries), 19th September 2017].
TAMIL NADU TRANSPARENCY IN TENDERS ACT, 1998.
4
(i) ‘Tender Document’ means a set of papers 7[including
electronic document] containing schedule of works, rates, requirement
of goods or services, technical specifications, procedure and criteria as
may be prescribed for evaluation and comparison of tenders and such
other particulars as may be prescribed;
8 & 9[…]
3. Prohibition or Procurement except by tender.- (1) No
procurement shall be made by the procuring entity except by tender.
(2) The provisions of sections 9 and 10 shall not apply to any
procurement made by a procuring entity, in the normal course, if it is
for carrying on business of selling and buying goods:
Provided that in case of procurement by the procuring entities
on behalf of and for sale to Government or Government organisations
for any Government programme, such procurement shall be only by
tender.
10[(3) Notwithstanding anything contained in sub-section (1), a
procuring entity may procure goods or services through a Government
department or Government undertaking, nominated by the
Government by notification to act as an agency for procuring specified
classes of goods or services on behalf of any procuring entity upon
payment of a fee:
Provided that no procurement shall be made by the nominated
agency except by tender.]
7 Inserted by the TNTIT (Amendment) Act, 2017 (Tamil Nadu Act 45 of 2017) sec. 2(4) [TNGGE
No.261 / 07-08-2017] (w.e.f. 19.09.2017) [TNGGE No.295 / 19-09-2017 (No.II(2) / FIN /
783(d) / 2017.- G.O.Ms. No.269, Finance (Salaries), 19th September 2017].
8 Inserted [Provided that such criteria for evaluation and comparison of tenders shall also
provide for a price preference,- (a) not exceeding fifteen percent for the domestic small scale
industrial units; (b) not exceeding ten percent for the Public Sector Undertakings of the
Government in respect of products manufactured by them.] by the TNTIT (Amendment) Act,
2001 (Tamil Nadu Act 14 of 2001) sec. 2(2) [TNGGE No.667 / 24-09-2001]
(w.e.f. 1-12-2001). [TNGGE No.44 / 21-11-2001 (No.II(2) / FIN / 888(m-a) / 2001.- G.O.Ms.
No.451, Finance (Salaries), 16th Nov. 2001].
9 Omitted by the TNTIT (Second Amendment) Act, 2012 (Tamil Nadu Act 31 of 2012) sec.2(ii)
[TNGGE No.320/15-11-2012] (w.e.f. 07-12-2012) [TNGGE No.342 / 7-12-2012 (No.II(2) /
FIN / 815(g)/2012) - G.O.Ms.No.422, Finance (Salaries), 7th December, 2012].
10 Inserted by the TNTIT (Second Amendment) Act, 2018, (Tamil Nadu Act 17 of 2018), sec.3
[TNGGE No.136 / 13-08-2018] (w.e.f. 26-06-2018) [TNGGE No.224/26-06-2018 (No.
II(2)/FIN/549(d)/2018.- G.O.Ms. No.206, Finance (Salaries), 26th June 2018].
TAMIL NADU TRANSPARENCY IN TENDERS ACT, 1998.
5
4. Regulation of Tenders.- No tender shall be invited or
accepted by any authority after the commencement of this Act, except
in accordance with the procedure specified in this Act and the Rules
made thereunder.
5. Appointment of Bulletin Officer.- The Government may, by
notification appoint,-
11[(a) an officer of the Government not below the rank of a
Deputy Secretary to Government as State Tender Bulletin Officer];
12[(b) an officer not below the rank of a Deputy Collector as
District Tender Bulletin Officer for every district];
6. Functions of Bulletin Officers.- (1) On receipt of intimation
relating to details of notice of invitation of Tender, from the Tender
Inviting Authority, information relating to acceptance of tender together
with a comparative analysis and reasons for acceptance of tenders from
the Tender Accepting Authority, the State or as the case may be, the
District Tender Bulletin Officer shall, publish the same in the State or
District Tender Bulletin, 13[as the case may be, in such manner and
within such time as may be prescribed:]
Provided that, if the procurement covers more than one district,
the invitation and the acceptance of tenders shall be published in the
State Tender Bulletin and also in the District Tender Bulletin of such
districts.
11 The Director, Information and Public Relations appointed as State Tender Bulletin Officer.
[TNGGE No.701 / 1-10-2000 (No.II(2)/FIN/1051(d2)/2000) - G.O.Ms.No.447 / 26th
September, 2000 and Amendment TNGG No.27, / 18-7-2001 (No.II/(2)FIN/561/2001) (for the
expression “Joint Director (Information)”, the expression “The Director, Information and
Public Relations was appointed as State Tender Bulletin Officer” - G.O.Ms.No.233 / 15th
June, 2001].
12 The District Public Relation Officer attached to the Collector of every district appointed as
District Tender Bulletin Officer for the respective districts. [TNGGE No.701 / 1-10-2000
(No.II(2)/FIN/1051(d2)/2000) - G.O.Ms.No.447 / 26th September, 2000].
13 Substituted for the expression “as the case may be, within such time as may be prescribed” by
the TNTIT (Second Amendment) Act, 2018, (Tamil Nadu Act 17 of 2018), sec. 4(1) [TNGGE
No.136 / 13-08-2018] (w.e.f. 26-06-2018) [TNGGE No.224/26-06-2018 (No.
II(2)/FIN/549(d)/2018.- G.O.Ms. No.206, Finance (Salaries), 26th June 2018].
TAMIL NADU TRANSPARENCY IN TENDERS ACT, 1998.
6
14[(2) The Tender Bulletin shall be delivered to registered
subscribers by e-mail and shall also be published in a dedicated
website administered by the State Tender Bulletin Officer for view and
download by any person.]
7. Appointment of Tender Inviting Authority and Tender
Accepting Authority.- (1) The Government or the procuring entity,
may, by order, appoint an officer under its control as Tender Inviting
Authority for carrying out the functions assigned to it under this Act.
(2) The Government or the procuring entity, may, by order,
appoint an officer or a committee consisting such number of officers as
may be prescribed as Tender Accepting Authority for carrying out the
functions assigned to it under this Act.
(3) Notwithstanding anything contained in sub-sections
(1) and (2), -
(a) where the Government is the Tender Accepting Authority,
Tamil Nadu Government Business Rules shall be followed for tender
acceptance ensuring adherence to the other provisions of this Act;
(b) where a Multi-member Tender Accepting Authority is
discharging its functions under other Acts, such Multi-member
Authority shall be deemed to be Tender Accepting Authority under this
Act.
8. Opening of Tender.- The Tender Accepting Authority or any
other officer authorised by it, shall open the tenders in the presence of
tenderers present and who have submitted tenders in such time and in
such place as may be specified in the tender document.
9. Functions of Tender Inviting Authority.- (1) The Tender
Inviting Authority shall invite tenders in the form of a notice containing
such particulars as may be prescribed.
14 Substituted for “(2) The Tender Bulletin shall be made available for sale in the office of the
Tender Bulletin Officer and at such other places as may be specified by him” by the TNTIT
(Second Amendment) Act, 2018, (Tamil Nadu Act 17 of 2018), sec. 4(2) [TNGGE
No.136 / 13-04-2018], (w.e.f. 26-06-2018) [TNGGE No.224 / 26-06-2018] (No.II(2) / FIN /
549(d)) / 2018 - G.O.Ms. No.206, Finance (Salaries), 26th June 2018].
TAMIL NADU TRANSPARENCY IN TENDERS ACT, 1998.
7
(2) The Tender Inviting Authority shall communicate the Notice
Inviting Tenders to the Bulletin Officers according to the value of the
procurement and within such time as may be prescribed, so as to
publish the same in the appropriate Tender Bulletin.
(3) The Tender Inviting Authority shall also publish the Notice
Inviting Tenders in Indian Trade Journal and in daily newspapers
having wide circulation depending upon the value of the procurement
prescribed.
15[(3-A) The Tender Inviting Authority shall also cause the
Notice Inviting Tender hosted in the dedicated website administered by
the State Tender Bulletin Officer.]
(4) The Tender Inviting Authority shall supply the schedule of
rates and tender documents in such manner and in such places as
may be prescribed to every intending tenderer who has applied for
such document.
10. Evaluation and Acceptance of Tender.- (1) The Tender
Accepting Authority shall cause an objective evaluation of the tenders
taking into consideration the schedule of rates as mentioned in the
tender document and the prevailing market rate for procurement and
comparison of the tenders in accordance with the procedure and
criteria specified in the tender document.
(2) After evaluation and comparison of tenders as specified in
sub-section (1), the Tender Accepting Authority shall accept the lowest
tender ascertained on the basis of objective and quantifiable factors
specified in the tender document and giving relative weights among
them:
15 Inserted by the TNTIT (Second Amendment) Act, 2018, (Tamil Nadu Act 17 of 2018), sec. 5
[TNGGE No.136 / 13-08-2018] (w.e.f. 26-06-2018) [TNGGE No.224/26-06-2018 (No. II(2) /
FIN / 549(d)/2018.- G.O.Ms. No.206, Finance (Salaries), 26th June 2018].
TAMIL NADU TRANSPARENCY IN TENDERS ACT, 1998.
8
16[Provided that the Tender Accepting Authority shall accept the
tender of domestic enterprises, not being the lowest tender, upon
satisfaction of such conditions as may be prescribed, in respect only of
goods manufactured or produced and services provided or rendered by
them, and only to the extent of not exceeding twenty five per cent of the
total requirement in that procurement, if such domestic enterprise is
willing to match the price of the lowest tender:
Provided further that the Tender Accepting Authority shall
accept the tender of a department of Government, Public Sector
Undertaking, Statutory Board and other similar institutions as may be
notified, not being the lowest tender, upon satisfaction of such
conditions as may be prescribed, in respect only of goods
manufactured or produced and services provided or rendered by them,
and only to the extent of not exceeding forty per cent of the total
requirement in that procurement, if such tenderer is willing to match
the price of the lowest tender:
Provided also that in case of a single procurement, the total
procurement under the above two provisos shall not exceed forty
percent of the total requirement in that procurement.]
(3) Notwithstanding anything contained in sub-section (2), if the
Tender Accepting Authority decides that the price of the lowest tender
is higher with reference to the prevailing market rate or the schedule of
rates, 17[the said authority] may negotiate for a reduction of price with
that tenderer.
(4) If at any time before the acceptance of tender, the Tender
Accepting Authority receives information that a tenderer who has
submitted tender has been banned by any Procuring Entity, 17[the said
authority] shall not accept the tender of that tenderer even if it may be
the lowest tender.
16 Added by the TNTIT (Second Amendment) Act, 2018, (Tamil Nadu Act 17 of 2018), sec. 6
[TNGGE No.136 / 13-08-2018] (w.e.f. 26-06-2018) [TNGGE No.224/26-06-2018 (No. II(2) /
FIN / 549(d)/2018.- G.O.Ms. No.206, Finance (Salaries), 26th June 2018].
17 Substituted [for‘he’] in four places by TNTIT (Second Amendment) Act, 2012 (Tamil Nadu Act
31 of 2012) sec.3(i) [TNGGE No.320/15-11-2012] (w.e.f. 07-12-2012) [TNGGE No.342 /
7-12-2012 (No.II(2) / FIN / 815(g)/2012) - G.O.Ms.No.422, Finance (Salaries),
7th Dec.,2012].
TAMIL NADU TRANSPARENCY IN TENDERS ACT, 1998.
9
(5) In case where two or more tenderers quoted the same price,
the Tender Accepting Authority shall split the procurement among
such tenderers taking into consideration the experience and
credentials of such tenderers. Where such splitting is not possible or
could not be done equally, 17[the said authority] shall record reasons
for the same.
(6) If the Tender Accepting Authority proposes to accept the
tender as per the provisions of this section, 17[the said authority] shall
pass orders accepting the tender together with reasons for such
acceptance:
18[Provided that if the tenderer is unable to supply the entire
quantity required, the Tender Accepting Authority may follow the fixed
rate contract procedure as may be prescribed.]
(7) The Tender Accepting Authority shall intimate the
information regarding the name and address of the tenderer whose
tender has been accepted along with the reasons for rejection of other
tenders to the appropriate Tender Bulletin Officers.
11. Appeal.- (1) Any tenderer aggrieved by the order passed by
the Tender Accepting Authority under section 10 may appeal to the
Government within ten days from the date of receipt of order and the
Government shall dispose the appeal within fifteen days from the date
of receipt.
(2) In disposing of an appeal under sub-section (1), the
Government may, after giving the party an opportunity of making his
representations, pass such order thereon as they may deem fit.
(3) The order of the Government on such appeal shall be final.
(4) The Government may, pending the exercise of their powers
under this section pass such interlocutory orders as they may deem fit.
18 Inserted by the TNTIT (Second Amendment) Act, 2012 (Tamil Nadu Act 31 of 2012) sec. 3(ii)
[TNGGE No.320/15-11-2012] (w.e.f. 07-12-2012) [TNGGE No.342 / 7-12-2012 (No.II(2) /
FIN / 815(g)/2012) - G.O.Ms.No.422, Finance (Salaries), 7th December, 2012].
TAMIL NADU TRANSPARENCY IN TENDERS ACT, 1998.
10
12. Right to reject Tender.- (1) After negotiation with the
tenderer and before passing the order accepting a tender as under
sub-section (6) of Section 10, if the Tender Accepting Authority decides
that the price quoted by such tenderer is higher by the percentage as
may be prescribed over the schedule of rates or prevailing market
price, 19[the said authority] shall reject the tender.
(2) The Tender Accepting Authority before passing the order
accepting a tender, may also reject all the tenders for reasons such as
changes in the scope of procurement, new technologies or substantial
design changes, lack of anticipated financial resources, court orders,
accidents or calamities and other unforeseen circumstances.
13. Power to obtain information.- Notwithstanding anything
contained in this Act or in any other law for the time being in force, the
Government may with a view to ensuring transparency in tender
process, by order in writing, call for any information relating to
transparency from the Tender Inviting Authority or from the Tender
Accepting Authority on any matter in tender processing and the said
Authority shall furnish the same to the Government.
14. Power of Government to call for records.- The
Government may at any time, with a view to ensuring transparency in
tender process, require any authority,-
(a) to produce records relating to invitation and acceptance of
tenders;
(b) to furnish the tender document, estimate, statement,
accounts or statistics relating to such tenders; and
(c) to furnish any report.
15. Procedure to be followed in certain cases.- The
provisions of this Act to the extent they are not consistent with the
procedure prescribed in the Projects funded by International
Agreements or by International Financial Agencies shall not apply.
19 Substituted [for ‘he’] by the TNTIT (Second Amendment) Act, 2012 (Tamil Nadu Act 31 of
2012) sec. 4 [TNGGE No.320/15-11-2012] (w.e.f. 07-12-2012) [TNGGE No.342 / 7-12-2012
(No.II(2) / FIN / 815(g)/2012) - G.O.Ms.No.422, Finance (Salaries), 7th December, 2012].
TAMIL NADU TRANSPARENCY IN TENDERS ACT, 1998.
11
16. Provisions of this Act not to apply in certain cases.- The
provisions of sections 9 and 10 shall not apply to procurement,-
(a) during natural calamities and emergencies declared by the
Government;
(b) available from a single source only from a supplier or cases
in which a particular supplier or contractor has exclusive rights in
respect of the goods or services or construction and no reasonable
alternative or substitute exists or where the procuring entity having
procured goods, equipment, technology from a supplier or contractor
determines that additional supplies must be procured from that
specific supplier or contractor for reasons of standardization and
compatibility with the existing goods, equipment or technology:
Provided that a committee of three experts consisting one
technical representative of the procuring entity, one technical
representative of a State or Central Government Organisation dealing
with similar procurement and one representative from a reputed
Academic or Research Institution or Non-commercial Institution having
expertise in such line, declares it as single source procurement;
20[(bb) of a service, other than operations and maintenance,
project or facility management, supervision, supply of manpower,
outsourcing of tasks, leasing of machinery, equipment or vehicles and
insurance, in any particular instance of procurement declared by the
Government by notification, upon the recommendation of a committee
comprising the Secretary of the department concerned of the
Government, Secretary of Finance department or his representative,
the Chief Executive Officer or the head of the procuring entity, one
technical representative of the procuring entity and one representative
from a reputed Academic or Research Institution or Non-commercial
Institution having expertise in such line;]
20 Inserted by the TNTIT (Second Amendment) Act, 2018, (Tamil Nadu Act 17 of 2018), sec. 7(1)
[TNGGE No.136 / 13-04-2018], w.e.f. 26-06-2018. [TNGGE No.224 / 26-06-2018]
(No.II(2)FIN/549(d))/2018 - G.O.Ms. No.206, Finance (Salaries), 26th June 2018].
TAMIL NADU TRANSPARENCY IN TENDERS ACT, 1998.
12
21[(c) …]
(d) of low value and local purchases as may be prescribed;
22 [(dd) …]
21 Omitted by the TNTIT (Second Amendment) Act, 2018, (Tamil Nadu Act 17 of 2018), sec. 7(2), w.e.f.
26-06-2018. (TNGGE No. 136, dated 13.04.2018 & TNGGE No. 224, dated 26-06-2018) *[(c) from
departments of Government, Public Sector Undertakings, Statutory Boards and such other institutions as
may be notified by the Government only in respect of goods manufactured or services provided by them;
Provided that such procurement shall not exceed forty percent of the total requirement in that
procurement and shall be at a price not exceeding the price of the lowest tender in respect of the
remaining sixty percent.] [The clause ‘(c) from certain departments of Government, public sector
undertakings, statutory boards and such other institutions only in respect of goods manufactured or
services provided by them for a period not exceeding two years from the date of commencement of this
Act’ was amended further as detailed below: 1. The words ‘two years’ was substituted by the words ‘four
years’ by the TNTIT (Amendment) Act, 2002 (Tamil Nadu Act 43 of 2002) sec. 2 (w.e.f. 30.09.2002).
2. The words ‘four years’ was substituted by the words ‘six years’ by the TNTIT (Amendment) Act, 2004
(Tamil Nadu Act 33 of 2004) sec. 2 (w.e.f. 01.10.2004). 3. The words ‘six years’ was substituted by the
words ‘eleven years’ by the TNTIT (Amendment) Act, 2006 (Tamil Nadu Act 28 of 2006) sec. 2 (w.e.f.
01.10.2006) 4. The words ‘eleven years’ was substituted by the words ‘sixteen years’ by the TNTIT
(Amendment) Act, 2012 (Tamil Nadu Act 6 of 2012) sec. 2 (w.e.f. 01.10.2011].*[Substituted for ‘(c) from
certain departments of Government, public sector undertakings, statutory boards and such other
institutions only in respect of goods manufactured or services provided by them for a period not
exceeding sixteen years from the date of commencement of this Act’ by the TNTIT (Second Amendment)
Act, 2012 (Tamil Nadu Act 31 of 2012), sec. 5(i) [TNGGE No.320 / 15-11-2012]
(w.e.f. 07-12-2012) [TNGGE No.342 / 7-12-2012 (No.II(2) / FIN / 815(g)/2012) - G.O.Ms.No.422,
Finance (Salaries), 7th December, 2012].
22 Omitted by the TNTIT (Second Amendment) Act, 2018, (Tamil Nadu Act 17 of 2018), sec. 7(3), w.e.f.
26-06-2018. (TNGGE No. 136, dated 13.04.2018 & TNGGE No. 224 / 26-06-2018
(No.II(2)FIN/549(d))/2018 - G.O.Ms. No.206, Finance (Salaries), 26th June 2018].) *[(dd) from domestic
enterprises only in respect of goods manufactured or produced, services rendered by them]: Provided
that such procurement shall not exceed twenty five percent of the total requirement in that procurement
and shall be at a price not exceeding the price of the lowest tender in respect of the remaining seventy
five percent:Provided further that in case of a single procurement involving clauses (c) and (dd), such
procurement shall not exceed forty percent of the total requirement in that procurement.*[the clause-
‘(dd) from domestic small scale industrial unit for the reserved items identified by the Central
Government: Provided that where a procuring entity intends to procure any of such reserved items, the
procuring entity shall procure such item from the domestic small scale industrial units and the provisions
of sections 9 and 10 shall apply to such procurement’ -inserted by the TNTIT (Amendment) Act, 2001
(Tamil Nadu Act 14 of 2001) sec.3 [TNGGE No.667 / 24-09-2001] (w.e.f. 1-12-2001). [TNGGE
No.44 / 21-11-2001 (No.II(2) / FIN / 888(m-a) / 2001.- G.O.Ms. No.451, Finance (Salaries),
16th Nov. 2001]. - Substituted by the TNTIT (Second Amendment) Act, 2012 (Tamil Nadu Act 31 of 2012),
sec. 5(i) [TNGGE No.320 / 15-11-2012] (w.e.f. 07-12-2012) [TNGGE No.342 / 7-12-2012 (No.II(2) /
FIN / 815(g)/2012) - G.O.Ms.No.422, Finance (Salaries), 7th December, 2012] as detailed below,‘(dd)
from domestic small-scale industrial units in respect of goods manufactured by them: Provided that such
procurement shall not exceed twenty five percent of the total requirement in that procurement and shall
be at a price not exceeding the price of the lowest tender in respect of the remaining seventy five percent:
Provided further that in case of a single procurement, involving clauses (c) and (dd), such procurement
shall not exceed forty percent of the total requirement in that procurement.’ - further substituted,
excluding provisos thereto “(dd) from domestic enterprises only in respect of goods manufactured or
produced, services provided or rendered by them:”;, by the TNTIT (Amendment) Act, 2017 (Tamil Nadu
Act 45 of 2017), sec. 3(i) [TNGG No.261 / 07-08-2017] (w.e.f. 19.09.2017) [TNGG No.295 / 19-09-2017
(No. II(2)/FIN/783(d)/2017) - [G.O. Ms. No. 269, Finance (Salaries), 19th Sept. 2017].]
TAMIL NADU TRANSPARENCY IN TENDERS ACT, 1998.
13
23[(e) from the rate contracts of Association of State Road
Transport Undertakings;]
24[(f) by spot purchase of agricultural commodities, agricultural
produce and livestock from primary producers; by spot purchase of
cotton by Spinning Mills; by spot purchase of animals for the
Government programmes or schemes or for the Government
departments from shanties; of Sugarcane purchase from farmers by
the State Public Sector Undertakings or Co-operative Sugar Mills; of
paddy by Direct Purchase Centres of the Tamil Nadu Civil Supplies
Corporation; of clothing by the Government Departments or the State
Public Sector Undertakings from the Tamil Nadu Handloom Weavers’
Co-operative Society; and 25[from similar organizations] and of similar
goods and services, as may be notified by the Government;]
26[(g) of cement from the Tamil Nadu Cement Corporation
Limited, or of paper from the Tamil Nadu Newsprints and Papers
Limited:
23 Substituted for ‘(e) from the rate contracts of Director-General of Supplies and Disposals and
Association of State Road Transport Undertakings’ by the TNTIT (Second Amendment) Act,
2018, (Tamil Nadu Act 17 of 2018), sec. 7(4) [TNGGE No.136 / 13-04-2018], w.e.f.
26-06-2018. [TNGGE No.224 / 26-06-2018] (No.II(2)FIN/549(d))/2018 - G.O.Ms. No.206,
Finance (Salaries), 26th June 2018].
24 Substituted for ‘(f) by spot purchase of cotton by Spinning Mills, Oil Seeds and Oils by Tamil
Nadu Agro Industries Corporation or Tamil Nadu Oil Seeds Growers’ Federation Limited,
animals from shanties,Sugarcane by Sugar Mills, Paddy byExcerpt shown. Open the full act in Lexace.