“Starting Bid Price” fixed by the “Auction Inviting Authority” is not confidential and shall be displayed at auction bid page against each item for information to the bidder.
Published in Finance Tags: Tender
GOVERNMENT OF WEST BENGAL
Finance [Audit] Department
325, S.C. Road, Howrah – 711102
No. 3836-F(Y)/FA/O/2M/71/14[Pt-II] Dated: 19.06.2017.
Sub.: Provisions regarding Dynamic e-Auction
Different establishments of the Government of West Bengal presently undertake dynamic e-Auction procedure for sale of materials owned by them and in the process they are facing difficulties in fixing the ‘Starting Bid Price’- below which no bidders will be allowed to bid. Under the circumstances, the Governor is pleased to incorporate the following provisions for the dynamic e-Auction process of Government of West Bengal.
1. The ‘Starting Bid Price’ is not confidential and shall be displayed at auction bid page against each item for information to the bidder.
2. ‘Starting Bid Price’ shall be fixed by the “Auction Inviting Authority”.
3. “Starting Bid Price” shall be as follows :-
i) In case of prime /fast moving materials the prevailing market price inclusive of all taxes rounded off to nearest hundred rupees will act as ‘Starting Bid Price’
ii) In case of slow moving and non moving material 80% of prevailing market price inclusive of all taxes rounded off to nearest hundred rupees will act as ‘Starting Bid Price’.
iii) In case of the item to be auctioned is exceptional nature and prevailing market rate of which is not ascertainable then the e-Auction shall comprise of following two rounds.
a. First Round of e-Auction
In this round the bidder shall be required to submit (1) ‘Technical Bid’ (2) ‘Initial Price offer’.
Only those bidders who are found to be eligible in terms of “Prescribed Eligibility Condition” and whose “Initial Price Offer” is equal to or more than “Reserve Price” will be eligible for 2nd round auction.
Eligible bidders will be not less than three in 1st round e-Auction. Highest “Initial Price Offer” among the technically eligible bidders will be treated as “Floor Price” for 2nd round e-Auction.
Top five technically qualified bidders (if number of bidders is more than five) according to initial financial bid shall be considered to be qualified for participating in the 2nd round e-Auction and intimation shall be restricted to the qualified bidders.
b. Second Round of e-Auction
In 2nd round, the qualified bidders may submit their “Final Price Offers” which must be greater than the “Floor Price”. The “Final price offer” may be revised till the conclusion of the e-Auction.
The e-Auction process shall be annulled if none of the qualified bidders submit a “Final Price Offer” on the online electronic platform. The qualified bidder who submits the highest “Final Price Offer” shall be declared as the “Preferred Bidder” immediately on the conclusion of the e-Auction.
4. In case of dynamic e-Auction if the number of bidder is less than three then a fresh e-Auction to be initiated after re-fixing the technical qualification and giving wider publication.
5. In case of 2nd call the number of bidders is still less than three then with the recommendation of Auction Committee the Secretary in charge of the Department may accept the H1 bid if it is more than reserve price.
6. In case the H1 bidder does not turn up, the 2nd highest bid may be accepted if the bid is not less than Reserve Price, after taking necessary action against the H1 bidder after observing all rules, procedures and terms of bid document.
Sd/- H.K. Dwivedi
Government of West Bengal
No. 3836-F dated 19.06.2017, Source