Transparency in Government Purchases - CVC Frowns
THE Central Vigilance Commission has been emphasising on the need for observing integrity, transparency, fairness and equity in all aspects of decision making including in tendering and award of contracts. However, the Commission is still receiving complaints regarding adoption of non-transparent methods in tendering and award of contracts. A number of such complaints pertain to award on nomination (single source procurement) basis instead of following a process of open competitive bidding. The Commission in their earlier office order No. 23/7/07 dated 05.07.2007 had laid down the exceptional circumstances where 'single source procurement' can be resorted.
In view of the complaints being received regarding award of contracts on 'nomination basis' without adequate justification, the Commission has reiterated the earlier instructions for strict implementation. The Commission has also observed that there have been instances where government organisations/PSUs obtain contract from other government organisations/PSUs and further award the same to private entities on 'back to back tie up' basis without competitive tendering mechanism and without any significant value addition by the procuring government organisation/PSU. This practice subverts the Commission's emphasis on integrity, transparency, fairness and equity in decision making.
Further, the Commission directs that details of all tenders awarded on nomination basis shall be posted on website in public domain.
CVC Circular No. 18/12/12, Dated: December 11 2012.