No more mysterious bid rejections at ONGC
ONGC has long faced criticism over its often inexplicable lack of transparency when rejecting bidders.
But management is finally remedying that by making it mandatory to tell bidders why they have been rejected. Better still, rejected bidders will soon be allowed to challenge the decision.
ONGC materials management executive director Sandeep Gupta sent out a welcome notice on October 30 (2023) stating: "ONGC should follow a similar methodology to GeM tenders (from the Government e-Marketplace tender portal) and provide reasons for rejections to unsuccessful bidders and provide a 48-hour window for bidders to challenge their rejections." Gupta stresses that "as advised by the IEMs (Independent External Monitors)" ONGC should implement this practice in all its future tenders, not just those listed on the GeM portal.
ONGC must send the details of its thought process when rejecting bidders to their official email addresses. "Work centres must respond to all challenges raised by bidders before opening price bids."
In the notice, Gupta adds that the guidelines should be meticulously followed even in tenders where techno-commercial bids are yet to be opened and incorporated in rig hire and Lump Sum Turnkey (LSTK) projects. As expected, industry reaction to the notice is positive.
"All this rejecting bids without reason created a lot of unnecessary, avoidable friction," says a source. "This is welcome."
Another Noida-based service provider is happy that ONGC "has seen reason and accepted a long-standing demand." Gupta's notice is the latest in a stream of ONGC policy changes designed to address bidder concerns and streamline its tender processes since chairman Arun Singh took charge on December 7 (2022).
On September 29 (2023), Gupta wrote to senior officers saying they must secure fresh board approval if a project's cost changes by 30% before they float a tender. On September 26 (2023), Gupta sent another notice saying ONGC would allow foreign bidders to provide deposits in Indian rupees or US dollars.
On September 5 (2023), Gupta listed the changed Bid Evaluation Criteria for EPC and services contracts, including relaxed rules for a bidder's net worth.