Brihanmumbai Municipal Corporation scraps IT tenders as vigilance report recommends review

MUMBAI: The BMC has cancelled tenders floated by the IT department for procurement of computers and will invite new bids following a vigilance report that suggested a review of the tendering process.

The opposition had earlier alleged that the tendering process was meant to favour certain vendors and that a particular vendor has been getting almost 80% of all tenders floated by the BMC for IT hardware over the past decade.

The vigilance department examined the tendering process and submitted a report to the municipal commissioner recently. "The vigilance department, which submitted its report to the commissioner, has made some observations and recommended transparency in the tendering process. We are going to reinvite the tenders," said an IT department official.

After the tenders floated by the BMC ran into controversy, municipal commissioner I S Chahal asked the vigilance department to examine the process.

The opposition had alleged that a couple of vendors for hardware and software systems had monopolised the tenders floated by the IT department.

Former corporator and BJP leader Vinod Mishra, who had written to the civic commissioner alleging that the computers were brought at an inflated cost of Rs 25 crore, said, "I welcome the cancellation of the tender by the administration. The vigilance report has endorsed my view that the rate analysis carried out by the IT department was wrong. But action should be taken against whosoever is responsible for the delay in the procurement process and also for the extra expenditure that the corporation will incur in reinviting tenders. The administration should ensure that there are no cartels this time and action should be taken against the consultant and vendors too."

"The report has to be accepted by the commissioner for followup action," said a vigilance department official.

When TOI contacted Chahal for comment, he directed the query to additional municipal commissioner Ashwini Bhide who did not respond to texts.

Mishra said desktops are being bought at Rs 85,000 even as these are available on the government e-marketplace (GeM) portal for approximately Rs 65,000.

Mishra further alleged the nexus between officials of the IT department and some of the vendors is so strong that the IT department drafts tender specifications and conditions in such a manner that only these companies qualify.

The IT department had earlier pointed out that as per the technical specifications mentioned in the tender, an all-in-one computer is not available on the GeM portal and Rs 89,803, excluding GST, was the price mentioned on the product website.

The IT department in its defence also referred to a circular from the central purchase department, which had set a purchase limit of Rs 50 lakh through the GeM portal.

The IT department had also clarified that the MeITY (ministry of electronics and information technology) of the government of India guidelines state the financial turnover should be five times the estimated expenditure and the turnover criterion set for the vendors is an average of Rs 100 crore for three years and not Rs 100 crore per year.