MORTH Revises Policy on Single Bid in Open Tender Processes

The Ministry of Road Transport & Highways (MoRTH) has recently revised its policy concerning the handling of single bids in open tenders. Previously, the MoRTH mandated that any single bid received in the first call of a tender would automatically be cancelled, with the tender being re-invited. Additionally, acceptance of a single bid after re-tendering required approval from the competent authority.

This policy was revisited following directives from the Ministry of Finance, Department of Expenditure, which issued guidelines in a letter dated 29 October 2021 (No.F.1/1/2021-PPD). The Ministry of Finance highlighted the drawbacks of routinely rejecting single bids, emphasizing that re-tendering often incurs unnecessary costs, delays project execution, and can sometimes lead to higher bids in subsequent rounds.

The Ministry of Finance outlined that a lack of competition should not be presumed based solely on the number of bids received. These principles were further elaborated in the Manual for Procurement of Works, June 2022, issued by the Ministry of Finance, Department of Expenditure.

In alignment with these recommendations, the MoRTH has decided that single bids received in open bidding processes will no longer be automatically rejected, provided the following conditions are met:

• The procurement was satisfactorily advertised, with sufficient time allowed for bid submissions.
• The qualification criteria were not unduly restrictive.
• The bid prices were reasonable in comparison to market values.

The Evaluation Committee responsible for reviewing the tenders is now required to document the confirmation of these conditions in their meeting minutes when recommending the acceptance of a single bid. To assess the reasonableness of bid prices, the Evaluation Committee is also advised to compare the rates with those from similar contracts awarded elsewhere, adjusting for inflation, geographical conditions, and material carriage differences where necessary. The circular shall be complied with immediate effect.