Section 31A(2) in Tamil Nadu Transparency In Tenders Rules, 2000
(2)The rates for the supply of the goods or services will be determined through a process which shall include the following steps:-:(a)Open tenders shall be or shall have been called from all eligible tenderers and the rates quoted shall be taken into consideration;(b)The rates quoted by the eligible Lowest Tenderer in the open tender shall be compared with the prevailing market rate and the rates of the previous period and if the Tender Accepting Authority is of the view that the quoted rates are too high, the Authority may negotiate with the Lowest Tenderer to ascertain whether further reduction in rates is possible;(c)If after negotiations, the Tender Accepting Authority is of the view that the rates are still too high with reference to rates of the previous period or prevailing market rates, the Tender Accepting Authority may after considering relevant factors, determine and notify an appropriate rate, as the fixed rate.(d)All eligible suppliers who accept the fixed rate shall be enlisted by the Procuring Entity for delivery of services.(e)Where the Procuring Entity deems fit, it may issue an advertisement indicating the rates fixed and call for enrollment of more suppliers at these rates subject to such suppliers fulfilling the eligibility criteria.(f)Orders for supply of goods or services from the enlisted suppliers shall be placed on the basis of transparent criteria to be indicated in the tender documents or advertisement as the case may be, and shall inter alia, include the capacity to supply, past performance of the suppliers where applicable, and giving due priority to the supplier or suppliers who participated in the initial tender and offered the lowest rate.]