A Comprehensive Guide to MP Tenders Procurement Process: Standard Guidelines and Processes Other Services

Madhya Pradesh, the heart of India, has been evolving significantly over the past few years. In 2024-25, the state's GDP has grown11.05%, with the current estimated GDP of around ₹15,03 lakh crore. 

As the state continues to expand its infrastructure, power and energy, agriculture, and other key sectors, the opportunities for businesses through the government procurement process have grown substantially. 

However, there are several MP government guidelines and procedures that every contractor or bidder must know. 

In this blog, we will discuss the Madhya Pradesh procurement process, highlighting key guidelines, tender opportunities, and more. Let's dive into the blog!

Understanding Public Procurement Processes in Madhya Pradesh

The Public Procurement Process is a structured and transparent procedure followed by government departments, public sector undertakings, and other state entities to invite suppliers to submit proposals for providing goods, services, or works. It promotes transparency, fairness, and accountability among suppliers while fostering local industries and ensuring public funds are used effectively. The MP Government wildly uses MP eTendering systems to conduct and manage procurement process activities. 

Below, we have mentioned a step-by-step process defining the stages of procurement processes in Madhya Pradesh. 

Stage 1: Identifying the Need

The Procurement process begins when government departments, public sector undertakings, or any state entities identify specific requirements for goods, services, or construction work associated with the state development goals such as infrastructure development, healthcare, education, agriculture, etc. 

Stage 2: Tender Issuance 

After identifying the need, the procurement authority focuses on issuing tenders, which may be open or closed depending on the project size and complexity. E-tenders are generally issued on the MP Tenders Portal. 

Plus, the tender documentation is published with all the relevant details, including technical specifications, terms of delivery, and conditions for submission, allowing vendors to understand and fulfill all expectations. 

Stage 3: Bid Submission and Evaluation 

Suppliers or contractors interested in tendering are required to prepare and submit their bids following the outlined guidelines in the tender document. Bids include technical proposals, pricing, clear deadlines, and compliance with specified requirements. 

Once bids are received, procurement authorities evaluate them based on predetermined criteria like price, technical capability, past performance, and compliance with specifications to ensure that a suitable vendor offering the best value is shortlisted. However, the M.P. government gives more preference to local suppliers, including SMEs, startups, and businesses owned by women or marginalized communities.  

Stage 4: Negotiation and Award 

At this stage, the selected vendor is awarded a contract when both parties mutually negotiate and agree to final terms and conditions, including scope of work, price, delivery timelines, and quality standards. 

Stage 5: Contract Management and Closure 

Once the contract is awarded, authorities closely monitor the project to ensure the delivery of goods or services as per agreed terms. Contractors are also paid once the project is completed. In addition, contractors have to provide the necessary post-delivery support and maintenance. 

Standard Procurement Guidelines of MP Government

Below are some of the standard guidelines for MP Government Tenders. If you want to download the official guideline document, click here. 

For open tenders: 

• When the estimated purchase value of goods and services exceeds ₹2.50 lakhs, or it is not possible or ideal to purchase goods according to a certain manner prescribed in Rule 9, the purchase process will proceed through open tenders via https://mptenders.gov.in or GeM. The construction-related tenders can be invited through the usual MP Tenders Portal. 

• Tenders must be published in an e-portal, at least one national daily newspaper, and two state-level newspapers. Plus, tenders-related details must be available on the portal. 

• According to M.P. state guidelines, procurement authorities must provide at least 21 days to submit tenders from the date of publication of the tender notice or uploading the tender document on the portal, whichever is later. However, authorities can also offer short-term tenders with a minimum of 14 days in special circumstances, including the possibility of loss of life or the possibility of an increase in financial burden on the State/indenter due to loss of assets or non-timely action. Tenders can also have a time limit of 7 days or 3 days after obtaining approval from any higher-level officer or administrative department. 

• The reverse auction must be available for public use on the GeM portal/e-tender portal. 

• The purchasing department is allowed to hire the services of M.P. Laghu Udyog Nigam to invite open tenders on GeM or www.mptenders.gov.in at a service charge of 0.5% of the tenders price payable to the Corporation. 

For Tenders purchasing from a single source: 

• The User Department or Institution must know that only a particular firm is the manufacturer of the required goods. 

• During an emergency, it is essential to buy required goods from a particular source, and the reason must be recorded. Approval should also be obtained from the next higher authority. 

• For single source tender, all the required purchases must be made through the GeM portal. If vendors are not available on the GeM portal, procurement authorities can call tenders under the provision of M.P. Store Purchase and Service Procurement Rules-2015 (as amended 2022). Plus, rational decisions related to purchases through other means can also be taken by the head of the department. 

• A certificate of justification must be issued by the competent authority of the Ministry/Department/Institution before purchase or procurement from a single source, as shown below. 

1. The desired goods have been manufactured by M/s _________
2. No other make or model is accepted for the following reasons:

________________________________________

________________________________________

3. Permission of the competent authority. 

(Signed with the designation of purchase/procurement officer)

• The instructions issued by the M.P. Government from time to time will be applicable for Global Tender Enquiry. 

For Earnest Money Deposit: 

• Generally, the Earnest Money of Tenders shall be 3% (up to ₹10 crores), 1% (from ₹10 crores to ₹50 crores), and 0.5% (over ₹50 crores) of the estimated value of goods to be purchased/procured. However, the Madhya Pradesh government provides an exemption to MSEs (Micro and Small Enterprises) and Startups. 

• The department or procurement institution will determine the exact amount of earnest money deposit, and it must be recorded in the tender document. 

• The Earnest Money Deposit of the tenders must be paid electronically or by depositing via demand draft, fixed deposit receipt, banker's cheque, or bank guarantee from any commercial bank to the department's/procurer's account. 

• The Earnest Money Deposit of Tender is valid only for 45 days after the last validity date of the tender. 

• The Earnest Money Tenders of the failed tenderers must be returned within a maximum of 30 days after the expiry of the last validity date of the tender. 

• In the case of tenders purchased on the GeM portal, the Earnest Money Deposit must be accepted following GeM's prevailing provision. 

Performance Guarantee:

• The successful tenderer may have to submit a performance guarantee (3% value of the contract) to ensure proper execution of the contract. It can be deposited in the form of demand drafts, fixed deposit receipts, banker's cheques, and irrevocable bank guarantees of commercial banks. The concerned bank will verify the performance guarantee. 

• The performance guarantee must be valid for 45 days after the date of completion of all contractual obligations of the supplier, including warranty obligations. 

• In case of receipt of the performance guarantee, the earnest money deposited will be refunded/adjusted to the successful tenderer. 

• While making a purchase on the GeM portal by tender, the Performance Guarantee will be accepted per GeM's prevailing provisions.  

Regarding Supply Order: 

• The indenter or Procurement Agency issues the supply order to the successful tenderer. A supplier must be responsible for ensuring the supply of foods of required quality within a stipulated time period at the place mentioned in the supply order. If a supplier fails to supply goods within a stipulated time period, a penalty may be imposed on the supplier as per the terms of the tender. 

Payments 

• Proportionate or Partial payment can be made to the supplier for the goods supplied as per terms and conditions.

• If payments are delayed, a competent authority/council may impose a penalty according to the procedure and rates mentioned in the Micro, Small, and Medium Enterprises Development Act, 2006 of the Government of India. 

How do you view Madhya Pradesh tenders on TendersOnTime?

Here's a step-by-step process to view Madhya Pradesh tenders on TendersOnTime. 

Step 1: Log In or Register 

Visit the TendersOnTime site viawww.tendersontime.com and tap on the login or Register button located at the top right corner of the home screen. 

Step 2: Search for Tenders 

Once you log in, you will be redirected to the homepage or dashboard. Type Madhya Pradesh as a location in the Search Box or Advanced Search section. 

Step 3: Filter the Search Results 

After searching for Madhya Pradesh tenders, you can refine results through various filtering options, such as tender type, industry type, tender status, and publication date. 

Step 4: Review Tender Details

Click on the tender title to view detailed information, including the following. 

• Tender Description
• Bid Submission Date
• Eligibility Criteria
• Tender Documents
• Contact Information
• Project Timeline
• Bid Submission Guidelines 

Moreover, you can even download the tender document to gain in-depth information.

For glimpses of tenders from Madhya Pradesh, visitors can directly visit the page:

https://www.tendersontime.com/india/madhya-pradesh-tenders/

Frequently Asked Questions

Q1. Which is the best site to search for tenders?

TendersOnTime is the best platform to search for tenders, as it has a comprehensive list of government and private tenders. Plus, this platform offers various features, including real-time updates,  reliable tender alerts, bid support services, easy search and filter options, and global reach. 

Q2. What is an e-procurement portal?

An e-procurement portal is an online platform that allows government departments, public sector undertakings, or any state entities to post tenders and manage the bidding process with complete transparency and efficiency. The e-tender MP portal is also very famous and extensively used to post and manage tender opportunities. 

Q3. How do I apply for an MP tender online?

To apply for MP Tenders online, you have to register on the official Madhya Pradesh e-procurement portal. Moreover, you can also search for MP tenders on the TendersOnTime page. 

Q4. What is EMD in tender?

Earnest Money Deposit (EMD) is a security deposit submitted by a contractor to ensure commitment to the tender process. This amount is refundable after the completion of tenders. 

Q5. What if only one bid is received?

If only one bid is received in tender, the procurement authority has several options, including directly rejecting the bid, re-tendering the project, or accepting the bid if certain conditions are met.