One of the major
professional requirements in Public procurement is to
buy at the lowest cost (L1) ,for the given technical
requirement. One way to meet this condition is to
generate enough competition in the market by calling
number of offers. The more the number of
Techno-commercially acceptable offers lower would be the
L1 offer.
Opposite to this method is the Single Tender
Enquiry which implies purchasing without generating
competition. In fact, in STE only one offer is
solicited. One party is contacted and formalities are
completed only with this party.
Naturally, in Public buying where cash outflow for
procurement has to be reasonable STE may lead to
situations where a purchaser may have to shell out more
money than would have been in case of many tenders
situation.
Thus , STE should be adopted in exceptional cases only.
Some examples of SINGLE TENDER PURCHASE:-
- Augmentation of existing
facility
- Standardization of
components and spare parts of existing plant and
equipment
- Single source purchase of
attachments for an equipment to fulfill warranty
condition
- Proprietary item to be
purchased from a particular source
- Proprietary article
certificate ,as required, is to be provided by the
user organisation while making single source
purchase
- Single source purchasing
may become necessary in emergency cases like
natural disaster
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