Single Tender Enquiry

A Single Tender Enquiry is the most restricted procurement method in Indian government purchasing, where a department bypasses competition entirely and sources directly from one supplier, permitted only when a Proprietary Article Certificate is issued or a genuine emergency exists.

What is a Single Tender Enquiry?

A Single Tender Enquiry (STE) is procurement from a single identified vendor without inviting competing bids. It stands in contrast to both open tender and limited tender enquiry methods. Because it eliminates price competition entirely, STE is the most scrutinised procurement method by the Central Vigilance Commission (CVC) and the Comptroller and Auditor General (CAG).

Three grounds justify an STE under GFR 2017 and CVC guidelines. First, a Proprietary Article Certificate (PAC) certified by a technically competent officer that only one manufacturer produces the item, typically spare parts, patented equipment, or proprietary software add-ons to existing systems. Second, extreme emergency such as natural disaster, epidemic, or war where delay would cause serious harm. Third, standardisation with existing equipment already in use, where introducing a second source would create interoperability or maintenance problems.

For PAC-based STEs above Rs 25 lakh, approval from a committee (not a single officer) is required. For STEs above Rs 1 crore, approval from the Secretary-level officer or Finance Committee is typically needed. CAG audits regularly flag STEs where the PAC justification is questionable or where a competitive option clearly existed.

Negotiations in an STE are mandatory, since there is no competition, the procuring entity must establish price reasonableness through market inquiry, comparison with previous purchase prices, or comparison with SoR rates before accepting the vendor's quoted price.

Why STE Matters for Indian Government Suppliers

From a supplier's perspective, being named as a sole source through a PAC is highly valuable, it guarantees the contract without competition. OEMs (Original Equipment Manufacturers) often maintain this position for spare parts and proprietary consumables. However, if a government buyer is seeking alternatives or if the PAC justification is challenged, a supplier could lose exclusive access. Understanding PAC requirements helps suppliers both defend their sole-source position and identify competitors' vulnerabilities.

Example

A ministry has 50 CCTV surveillance cameras from a specific manufacturer installed in a sensitive building. The cameras require proprietary software licenses for annual renewal. The department issues an STE to the original equipment manufacturer for Rs 18 lakh in software licenses, supported by a PAC signed by the Joint Director (IT) certifying that only the original vendor's software is compatible with the installed hardware. The department's finance wing concurs and the competent authority approves the purchase order without seeking competing quotations.

Frequently Asked Questions

What is a Proprietary Article Certificate and who signs it?

A Proprietary Article Certificate (PAC) is a formal certification by a technically qualified officer, typically an engineer, scientist, or technical head, that only one specific manufacturer or vendor can supply the required item. It must state: the item description, the name of the sole source, and the specific technical reason why no substitute or alternative exists. False PACs are a CVC violation. For high-value items, the PAC must be counter-signed by a higher authority.

Can an STE be used for recurring annual purchases?

Using STE repeatedly for the same items over multiple years is a red flag for CVC and CAG audits. If an item needs annual procurement, departments are expected to periodically review whether alternatives have emerged, and to conduct open tendering if competition is feasible. Repeat STEs without fresh PAC justification are cited in CAG audit reports as examples of irregular procurement.

What is the difference between STE and emergency procurement?

Emergency procurement is an STE on grounds of urgency rather than proprietary nature. It requires a formal urgency certificate from the competent authority documenting the emergency and the potential harm from delay. Emergency certificates are scrutinised to ensure the urgency was genuine and not created by administrative delay in initiating procurement. Procurement officers who create artificial urgency to avoid open tendering face disciplinary action.

Are STEs visible on CPPP or GeM?

STEs are not published on CPPP before award. However, many departments publish post-award contract notices on their websites for STEs above specified thresholds as required by CVC guidelines. RTI applications can compel disclosure of STE details including the PAC, comparative price analysis, and the approving authority.