GFR Rule 146, Open Tender

GFR Rule 146 is the provision in the General Financial Rules 2017 that mandates open competitive tendering for central government goods procurement above Rs 2.5 lakh. Above Rs 25 lakh, the notice must additionally be published on the Central Public Procurement Portal (CPPP), making it publicly accessible to any firm across India.

What is GFR Rule 146 in government procurement?

Rule 146 establishes open tendering as the default method for procurement that exceeds the Rule 145 quotation threshold. Open tendering means the opportunity is advertised publicly, any eligible firm may bid, and the lowest technically qualified bidder is awarded the contract.

For amounts between Rs 2.5 lakh and Rs 25 lakh, the department must invite open bids and advertise on its own website and through suitable means, though CPPP publication is not mandatory at this lower end. Above Rs 25 lakh, CPPP publication is mandatory, the tender must appear on eprocure.gov.in where it is searchable by any registered vendor in India.

An open tender above Rs 5 lakh must use the two-bid system (Rule 154): technical and financial bids are submitted separately. The tender must specify eligibility criteria, scope, EMD requirements, and evaluation methodology. Above Rs 5 lakh, a national newspaper advertisement is also required (in addition to portal publication above Rs 25 lakh).

The rule reflects the foundational GFR principle that competition is the government's best tool for fair pricing. Every deviation from open tendering, single tender, limited tender, proprietary purchase, must be documented with reasons and approved by a higher authority than would normally approve the procurement.

State governments have equivalent provisions in their State Finance Rules, typically with similar thresholds or minor variations.

Why it matters for bidders

Rule 146 is the gateway rule for most substantial government procurement. Knowing that all central government tenders above Rs 25 lakh must appear on CPPP tells you that systematic CPPP monitoring covers the largest portion of accessible central government opportunity. For amounts between Rs 2.5 lakh and Rs 25 lakh, you need department-specific awareness since CPPP publication is not mandatory.

Open tender also means that the entire process, eligibility criteria, bid documents, opening procedure, and evaluation, must follow the rules. There is no room for subjective shortlisting or post-award negotiation with non-L1 bidders. If you meet the eligibility criteria and quote the lowest total, you win. This predictability is the primary advantage of open tender over limited or single tender routes for an outside bidder.

Example

The Ministry of Electronics and Information Technology needs to procure software licenses and support services worth Rs 85 lakh. Rule 146 requires an open tender published on CPPP. The ministry issues an NIT on CPPP and one national newspaper, specifying eligibility criteria (minimum turnover, relevant experience), a Rs 1.70 lakh EMD, and a 21-day response window. Twelve vendors download the documents. Eight submit bids. After technical evaluation, five qualify. The five financial bids are opened, and the vendor quoting the lowest total is declared L1 and awarded the contract.

Key rules / thresholds

• Mandatory open tender above Rs 2.5 lakh for central government goods procurement.
• Mandatory CPPP publication above Rs 25 lakh.
• Mandatory national newspaper advertisement above Rs 5 lakh.
• Two-bid system (technical + financial) required above Rs 5 lakh (GFR Rule 154).
• EMD of 2-5 percent required above Rs 5 lakh (GFR Rule 155).
• Minimum 21-day response period from publication to submission deadline.