Critical Review of Public Sector Procurement Process & Procurement Terms in India

Abstract

The Central Government, various State Governments and public sector enterprises and organizations (i.e. enterprises/organizations that are either owned or controlled by central/state governments) in India carry out procurement at an individual organization/department level. There exists a lot of similarity in the procurement norms and processes that are followed by these organizations. However, bidders face certain challenges in adapting to the procurement norms and processes followed by the various government/public sector organizations. The Request for Proposal (RFP)/Tender Terms and Conditions (RFP T&Cs) of these procurement projects also pose compliance issues from a commercial, technical and legal risk perspective. Many of the RFPs have terms that are either ambiguous/vague or impose unfair/unreasonable obligations on the participating bidders. This article highlights some of these coon issues in the procurement process and RFP T&Cs. The article recommends certain changes to the procurement process and RFP T&Cs that can be implemented by the government and public sector enterprises to make the procurement process simpler, efficient and fair towards participating bidders. It also highlights certain steps that have recently been taken up by the Central Government and certain State Governments to address some of these issues.