Limited Tender Enquiry

A Limited Tender Enquiry is a restricted procurement method where a government department sends bid invitations to a pre-identified shortlist of suppliers, typically minimum three to six vendors, instead of publishing an open NIT on public portals.

What is a Limited Tender Enquiry?

Under GFR Rule 145, a Limited Tender Enquiry (LTE) is permitted for central government procurement of goods up to Rs 25 lakh where the procuring entity directly contacts known capable suppliers without public advertisement. The invitations are sent by post or email to a list of registered or known vendors, with a minimum of three vendors invited per CVC guidelines. The method is also used when goods or services are available from only a limited number of sources, regardless of value.

LTE does not appear on public portals like CPPP or GeM, making it invisible to suppliers not already known to the department. This is both its administrative convenience (faster, less documentation) and its principal risk from a transparency standpoint. CVC guidelines flag departments that routinely use LTE for items that could attract wider competition through an open tender.

For works procurement, the CPWD Manual and state PWD manuals specify separate thresholds for limited tenders in civil and electrical works, typically below Rs 5-10 lakh depending on the state. Above these thresholds, open tendering is mandatory.

The LTE response time is typically 7-15 days (versus the minimum three weeks for open tenders), making it useful when procurement is time-sensitive.

Why LTE Matters for Indian Government Suppliers

Suppliers not on a department's approved vendor list or empanelled roster effectively cannot participate in LTEs. This makes vendor empanelment and registration exercises critical business development activities. Being on the right lists, CPWD contractor register, state PWD approved list, PSU vendor panel, determines access to LTE opportunities that never appear on public portals. For smaller companies, LTE contracts from existing government relationships are often easier to win than competitive open tenders.

Example

A district hospital needs to urgently procure laboratory reagents worth Rs 8 lakh. Rather than issuing an open tender (which would take three weeks minimum), the medical superintendent uses LTE, contacting five registered medical supply firms for quotations. The three lowest quotations are compared, and the lowest responsive quote wins a supply order. The purchase is documented with reasons for using LTE, approval from the competent authority, and a comparative statement of all quotations received.

Frequently Asked Questions

What is the financial limit for using LTE in central government procurement?

GFR Rule 145 permits LTE for goods procurement up to Rs 25 lakh, provided sufficient justification exists. For amounts above Rs 25 lakh, open tender is mandatory under Rule 146. However, LTE at higher values is permissible with documented reasons (limited sources, urgency, standardization) and approval from a higher authority. CVC scrutinises such exceptions.

How many vendors must be invited in an LTE?

CVC guidelines require a minimum of three vendors for an LTE to be valid. Many departments target five to six vendors to demonstrate adequate competition. If fewer than three responses are received, some departments re-invite or convert to open tender. A single-response LTE is treated with the same caution as a single tender.

Can an LTE result be challenged by a firm not invited?

Any supplier who believes they were wrongly excluded from a limited tender can file a complaint with the CVC or the department's Chief Vigilance Officer (CVO). However, if the procuring entity followed documented procedures and the excluded firm was not on any approved list, challenges are difficult to sustain. RTI applications can be used to obtain the list of firms invited and the comparative statement.

Is LTE visible on any government portal?

LTE invitations are not published on CPPP or other public portals. However, after award, many departments publish contract award notices on their websites as required by CVC guidelines. GeM purchases above Rs 25,000 are always visible on GeM's portal regardless of purchase method, as GeM itself records the transaction.