Rules 173 of the GFR stipulates that the contract should ordinarily be awarded to the lowest evaluated bidder whose bid has been found to be responsive and who is eligible and qualified to perform the contract satisfactorily as per the terms and conditions incorporated in the corresponding bidding document. However, where the lowest acceptable bidder against ad-hoc requirement is not in a position to supply the full quantity required, the remaining quantity, as far as possible, be ordered from the next higher responsive bidder at the rates offered by the lowest responsive bidder.
There are no express guidelines regarding exclusion of abnormally low bids under the GFR. However, Rule 173(xvi) of the GFR does recognise that contracts should ordinarily be awarded to the lowest evaluated bidder whose bid has been found to be responsive and who is eligible and qualified to perform the contract satisfactorily as per the terms and conditions incorporated in the corresponding bidding document. However, where the lowest acceptable bidder against ad-hoc requirement is not in a position to supply the full quantity required, the remaining quantity, as far as possible, be ordered from the next higher responsive bidder at the rates offered by the lowest responsive bidder.
Furthermore, under Rule 173(xvi) of the GFR, only in exceptional circumstances, price negotiations may be resorted to only with the lowest evaluated responsive bidder against an ad-hoc procurement which may be necessary due to some unavoidable circumstances. However, as a rule, negotiations with bidders after bid opening is severely discouraged.