M/s BSS Material Ltd., the authorized vendor of Indo-Russian Rifles Private Limited (IRRPL), has filed a petition in the Delhi High Court alleging unfair exclusion from the bidding process for a significant ₹12,000 crore contract to supply close-quarter battle carbines to the Indian Army.
IRRPL, a joint venture manufacturing AK-203 assault rifles in Amethi, had participated in the bidding process through M/s BSS Material Ltd. last year. However, their bid was rejected by the Ministry of Defence, citing non-compliance with technical evaluation criteria, specifically the financial conditions of the vendor.
M/s BSS Material contends that there was "ambiguity" in the bidding process, leading to the erroneous consideration of the vendor's financials instead of the original equipment manufacturer's (IRRPL) financials, which is the standard practice in such cases.
The petitioner has urged the court to direct the Technical Evaluation Committee (TEC) to reconsider their bid and address the ambiguity in the selection documents. The Delhi High Court has responded by issuing notices to the Ministry of Defence, Chief of Defence Staff & Secretary, and five other parties, seeking a response by August 9th.
M/s BSS Material argues that their exclusion was arbitrary, highlighting that they had communicated with the TEC multiple times, requesting them to consider IRRPL's financials instead of their own. They also emphasized the need for a logical and merit-based evaluation of technical bids.
The vendor further asserts that comparing the financials of a vendor with those of a manufacturer is impractical, as vendors typically do not make significant investments in raw materials, production facilities, or assets required for manufacturing equipment.
