Government tenders, particularly for such large corporations as Indian Oil Corporation Limited, possess very demanding eligibility criteria, and only a full understanding thereof can enable successful participation. In this article, the essential information that binds you with the bidding process will be divided into some aspects, put simply and formally and optimized for SEO purposes.
What Are Pre-Qualification Criteria?
Pre-Qualification Criteria act as a gatekeeper to assure that only capable or credible bidders are allowed to offer for tender. Meeting the Pre-Qualification Criteria is compulsory. If your bid does not meet these criteria, it is rejected outright.
Objectives of PQC
It ensures that bidders are filtered on the basis of their past performances and capabilities.
It ensures quality procurement.
It protects government resources and activities from being affected by fraudulent or unqualified suppliers.
Key Eligibility Criteria in the IOCL Tender
The IOCL tender lays down particular pre-qualification requirements for the bidders. These are again classified into technical and commercial criteria. Let us now pursue an analysis of these.
A. Technical Criteria
For this tender, the Technical Criteria does not exist. This implies that bidders are not required to state technical experience or capability for the job.
B. Commercial Criteria
Conversely, the Commercial Criteria do prevail, but they are fundamental. These are subdivided into:
1. Financial Criteria (Annual Turnover)
Curiously enough, IOCL has dispensed with any minimum turnover requirement. A bidder could have had nil turnover during the last three financial years (2019-20, 2020-21, and 2021-22) and shall still qualify.
Proof Acceptable under Financial Criteria:
Audited Balance Sheets with Income Statements
Published Annual Reports
Balance Sheets in Public Domain
Thus, the tender may be entered into by new entrants, startups, and small-scale vendors.
2. Commercial Experience Criteria
To meet the requirement of commercial experience, the bidder must show evidence of the performance of similar work in the last five years prior to the very last date of submission of bids. The threshold values are:
Three orders of similar nature, each with a value of at least INR 5,13,093, OR
Two orders of similar nature, each with a value of at least INR 6,84,124, OR
One order of similar nature with a minimum value of INR 8,55,155
These include the following similar items:
Control Valve
On/off Valve
Smart Positioner
Valve Controller
Supporting Documentation
For evaluation, authenticity, comprehensiveness, and verifiability of documentation are of the essence. Accordingly, the bidders would have to furnish to establish proof of order execution one of the following:
Purchase Order and Invoice along with self-certification
Certificate from the bank evidencing payment
Certificate of execution from the client
Goods Receipt Note (GRN), if for IOCL clients
TPI release note or its equivalent documentation
Failure to submit the required documents shall disqualify the bidder.
Notes on Order Value Calculations
FOB/FCA/FOR dispatch prices (including Packing and Forwarding and TPI charges) shall be used.
Taxes and freight, wherever applicable, and all other charges where applicable shall be charged only if shown under separate heads.
Currency conversion is done on the basis of RBI reference rates on the PO date.
Clubbing of more than one order/s passed by GeM against the same bid shall be allowed.
Other Important Conditions for PQC Compliance
1. NDA Clause
If your executed orders are covered under an NDA, a declaration of your CEO/CFO endorsed by a Chartered Accountant or CPA has to be made. Where such endorsement is disallowed, then justification must be stated.
2. No Consortium Bids
Consortiums or joint ventures are not allowed unless otherwise specifically mentioned.
3. Individual Company Credentials Only
Parent company or group company credentials cannot be used to satisfy the experience criteria.
Common Mistakes That Lead to Bid Rejection
Incomplete documentation
Submitting bids in physical form (only GeM portal bids accepted)
Invalid or expired certificates
Submitting more than one bid per entity
Altering bid post-submission
Tampering with tender documents
Bid Submission Checklist
Before bidding, the following must be assured:
Commercial documents are uploaded.
Proof regarding similar works executed be submitted.
All declarations and annexures are filled in.
One bid only is to be tendered by your entity.
The validity of the offer shall be clearly mentioned as 120 days.
IOCL's Rights and Evaluations
IOCL reserves the rights:
To consider your bid on the basis of the information submitted.
To reject bids outright without specifying a reason.
To liaise with issuing authorities for the verification of documents presented.
To take punitive action in the event of submitting false or forged documents.
Benefits for Startups and MSEs
Although the tender does not offer PQC relaxation to MSEs and Startups, the policy allows them to bid separately for trial or test orders, which, if successful, may be considered for future exemptions.
Conclusion
While such tenders offer good business opportunities for large and small enterprises, fulfilling the Eligibility Criteria and Pre-Qualification Requirements is a must. Following the guide above and preparing your paperwork with attention to detail will stand you in good stead not only for being qualified but also for winning the contract.