CVC guidelines for tenders: negotiations, eligibility, the Integrity Pact and how to complain

Every central government tender you bid for is shaped by rules from two places: the Finance Ministry's General Financial Rules and the CVC guidelines for tenders. The CVC's circulars are the reason tenders are published online, why buyers won't haggle over your price after opening, and why big tenders carry an Integrity Pact. This guide explains the main CVC guidelines on tendering, with circular numbers and dates, and the official routes to raise a complaint about a tender.

What is the CVC?

The Central Vigilance Commission is a statutory body under the Central Vigilance Commission Act, 2003. It is headed by the Central Vigilance Commissioner with up to two Vigilance Commissioners. Two Chief Technical Examiners in the CVC oversee public procurement. The CVC website describes it as created in 1964.

Some points that matter to bidders:

• Every central government organisation has a Chief Vigilance Officer (CVO), appointed in consultation with the CVC. The CVO runs vigilance inside that organisation.
• The CVC investigates and recommends. It has no power to punish by itself, but it reports to Parliament.
• Its jurisdiction covers central government Group A officers, senior officers of central PSUs, public sector banks and insurers, and similar bodies. It does not extend to state government organisations, private individuals or private companies' staff.

The CVC issues its guidelines as circulars and office orders to CVOs. Many of them have since been built into GFR 2017 and the Department of Expenditure's procurement manuals, so you will see the same ideas in tender documents.

CVC guidelines for tenders: the main rules

1. The whole tender must be on the website

CVC order No. 98/ORD/1 of 18 December 2003 said that for every open tender, the complete bid documents and application form must be on the organisation's website. A form downloaded from the website must be accepted, and the newspaper advertisement must give the website address. It took effect from 1 January 2004 for organisations that already had working websites, and from 1 April 2004 for the rest.

Office Order No. 43/7/04 of 2 July 2004 clarified that this covers goods, services and works bought through open tenders, and also short-notice tenders, but not proprietary items bought from the original maker.

Today GFR Rule 159 goes further: central ministries, their offices and autonomous bodies must publish tenders, corrigenda and award details on the Central Public Procurement Portal (now named GeM-CPPP in the rules). GovtTenderHub lists CPPP tenders and central PSU tenders from these portals in one search.

2. Who won must be published too

Office Order No. 13/3/05 of 16 March 2005 asked every organisation to post a monthly summary of contracts above a threshold on its website. Circular No. 17/7/09 of 14 July 2009 said these summaries must cover 75% of the value of contracts awarded, and must not be hidden behind passwords. GFR Rule 173 also requires the winner's name to be published. Our guide on tender status and results shows where to look.

3. No post-tender negotiations, except with L1

This is the CVC guideline bidders meet most often. It started with CVC instructions of 18 November 1998. The current rules are in two circulars:

• Circular No. 4/3/07 of 3 March 2007: "there should be no post-tender negotiations with L-1, except in certain exceptional situations." Those are proprietary items, items with limited sources of supply, and suspected cartels. If prices are unreasonable but the need is urgent, the buyer may negotiate with L1 for a bare minimum quantity and re-tender the rest. A counter-offer to L1 counts as negotiation. Offering L2 or L3 the L1 rate, when the tender had announced in advance that quantities would be split, does not. If L1 backs out, the tender must be re-done. The decision on the tender should take no more than one month from the committee's recommendation, plus up to 15 days for each higher level of approval.
• Circular No. 01/01/10 of 20 January 2010: negotiation is never with L2 or L3. If negotiation is truly needed, it is only with L1 when the government is paying, and only with H1 (the highest bidder) when the government is selling.

GFR Rule 173(xiv) says the same, and the Manual for Procurement of Goods adds that the buyer may never negotiate with firms that did not bid or whose bids were rejected. Dynamic bids in a reverse auction are not counted as negotiation.

What it means for you: quote your best price the first time. Don't count on a second round. See how L1 is decided in our L1 guide.

4. Pre-qualification criteria must fit the job

In an office memorandum of 17 December 2002 (No. 12-02-1-CTE-6), the CVC said it had received complaints about eligibility criteria made "very stringent/very lax to restrict/facilitate the entry of bidders". Its examples include a ₹15 crore, two-year work that asked for ₹15 crore average turnover, so only one firm qualified, and a computer purchase under ₹10 crore that asked for ₹100 crore turnover.

For civil and electrical works, the CVC set these norms:

• Average annual turnover over the last 3 years of at least 30% of the estimated cost.
• Similar works completed in the last 7 years: three works of 40% each, or two of 50%, or one of 80% of the estimated cost.
• "Similar work" must be clearly defined.

For supply contracts, qualification must rest only on experience on similar contracts, capability (staff, equipment, manufacturing) and financial standing. "No bidder should be denied prequalification ... for reasons unrelated to its capability and resources."

The Manual for Procurement of Works (2025) still uses the same 30% and 40/50/80% figures. If a tender asks for far more, raise it in writing before the bid deadline, quoting these norms. Our guide to tender eligibility criteria explains the usual criteria.

5. Settle eligibility before asking for revised prices

Office Order No. 72/12/04 of 10 December 2004: the buyer should finish shortlisting qualified firms before asking anyone for revised prices. Firms that don't qualify should be told, and their price bids returned unopened.

Integrity Pact in tenders

An Integrity Pact (IP) is an agreement between the buyer and each bidder. Both sides promise not to use corrupt practices at any stage of the contract. Signing it is a preliminary qualification: without it, your bid isn't considered.

The CVC first recommended it in an office order of 4 December 2007. The current Standard Operating Procedure (SOP) is CVC Circular No. 04/06/23 of 14 June 2023, which replaced the SOP of 25 January 2022.

Which tenders have an Integrity Pact?

There is no single national threshold. Under a Department of Expenditure OM of 19 July 2011, each ministry or department decides which procurements need an IP and above what value, with its Minister's approval. The Manual for Procurement of Goods (2024) suggests the threshold should cover 80–90% of the organisation's yearly purchases by value. Public sector banks, insurance companies and financial institutions must use it too (CVC circular of 25 February 2015). The tender document tells you if an IP applies.

What you promise as a bidder

Under the SOP, a bidder promises:

• not to offer any benefit to the buyer's employees that is not legally due;
• not to make any undisclosed agreement with other bidders on prices, specifications, certifications or subcontracts;
• not to pass on information the buyer gave it;
• to disclose its agents and the payments made to them, and, for foreign bidders, their Indian agents;
• to disclose any breaches with other public bodies in the last three years from the bid date, and older cases still pending.

Breaking the pact can lead to disqualification and exclusion from future business under GFR 2017 and the Prevention of Corruption Act. In a joint venture, every partner signs. Since Circular No. 03/04/25 of 28 April 2025, subcontractors no longer sign a three-way pact; the main contractor is solely responsible for its subcontractors following it.

Independent External Monitors (IEMs)

IEMs are independent, senior people who watch over tenders covered by an Integrity Pact.

• Who they are: retired officers of Additional Secretary level or equivalent, former heads of PSUs, public sector banks or insurers, and retired armed forces officers of similar rank. They must be 70 or younger when appointed.
• Who appoints them: the CVC nominates them from its panel. Maharatna and Navratna PSUs get three; other organisations get two. One person can be an IEM in at most three organisations at a time, and for at most three years in one organisation.
• Where to find them: every tender covered by the IP must give the names and email IDs of all the IEMs. The CVC also publishes an organisation-wise list on its website.

What IEMs do for bidders

You can send the IEMs any complaint about lack of fair play: the mode of procurement, tendering method, eligibility conditions, evaluation criteria, commercial terms, or the choice of technology or specifications. The full panel examines it together, looks at the records, and sends joint recommendations to the management.

Know the limits. The IEMs' role is advisory, and their advice is not binding on the organisation. They look at the fairness of the process, not at punishing officers; allegations of bad faith against an officer go to the CVO. During the contract, the buyer and contractor may also agree to mediation before the IEM panel, with no more than five meetings per dispute.

How to complain about a tender

Use the routes in this order. Each one is official, and earlier routes are faster.

1. Ask in writing before the deadline. GFR Rule 173(iv) says every tender must let you question its conditions. Send a clarification or pre-bid query before the clarification end date. The Department of Expenditure's model tender document warns that if you don't raise a query, later complaints about the specifications or conditions may not be entertained.
2. Use the tender's grievance clause. Under the Manual for Procurement of Goods, a bidder who took part can apply to the officer named in the tender (or the head of the buying office) within 5 days of the decision, giving the grounds and the clauses. A losing bidder can ask for a de-briefing within 5 days of the results. A grievance after the award should be settled within 30 days. Some decisions can't be reviewed, such as the choice of tender method or a decision to negotiate with L1, and complaints against specifications are heard only if they are vague or too narrow.
3. On GeM, write to the buyer first. Clause 31 of the GeM General Terms and Conditions (version 1.29 of 25 March 2026) says bid grievances are for the buyer. GeM itself handles only complaints about clauses listed in the bid's disclaimer, after you raised them with the buyer before bid opening and got no satisfactory reply. Our GeM bidding guide explains GeM's representation process.
4. Write to the IEMs, if the tender has an Integrity Pact.
5. Complain to the organisation's CVO about bribery, collusion or favouritism. The manual says the grievance route is in addition to complaining to the vigilance department.
6. Complain to the CVC, for central organisations only:
   • online at portal.cvc.gov.in, or through "Lodge Complaints" on cvc.gov.in. You need a mobile number for an OTP, you get an SMS with a reference number, and you track the status online;
   • or by letter to The Secretary, Central Vigilance Commission, Satarkta Bhawan, GPO Complex, Block-A, INA, New Delhi-110023.

For a state government tender, the CVC has no jurisdiction. Use the grievance clause in the state tender and the state's own vigilance bodies.

How to write a complaint the CVC will act on

The CVC's Comprehensive Guidelines on Complaint Handling (Circular No. 25/12/21 of 24 December 2021) set the rules:

• Give your name, address and signature. Anonymous or false-name complaints are not entertained.
• Be specific, with evidence, and raise one issue per complaint.
• Write in English or Hindi, legibly.
• Raise only matters with a vigilance angle that are not pending in any court.
• Don't email CVC officers directly; such emails are not taken up.
• If you need your identity protected, use the whistle-blower (PIDPI) route described in the same guidelines.

The same guidelines warn that in a tender complaint, "while the Commission may get the matter investigated, it would not generally interfere in the tendering process." So a CVC complaint won't stop a tender in time. For that, the buyer and the IEMs are your route.

Common questions

What are CVC guidelines for tenders?

They are circulars and orders issued by the Central Vigilance Commission to keep public buying fair and transparent. The main ones require full tender documents online, publication of awards, no post-tender negotiation except with L1, eligibility criteria that fit the job, and the Integrity Pact for large purchases.

Is post-tender negotiation allowed as per CVC guidelines?

Normally no. Circular 4/3/07 of 3 March 2007 allows it only in exceptional cases, such as proprietary items, limited sources or a suspected cartel, and Circular 01/01/10 of 20 January 2010 says it can only be with L1 (or H1 in a sale).

What is the Integrity Pact threshold?

There is no single figure. Each ministry, department or PSU fixes the value above which its tenders carry an Integrity Pact. The Manual for Procurement of Goods suggests it should cover 80–90% of its yearly purchases by value, and the tender says if it applies.

Who appoints Independent External Monitors?

The CVC nominates IEMs from its own panel at the organisation's request: three for Maharatna and Navratna PSUs and two for others. Their names and email IDs must be printed in every tender covered by the pact.

Can I complain to the CVC about a state government tender?

No. The CVC's jurisdiction does not extend to state government organisations. Use the tender's grievance clause and the state's own vigilance bodies.

Will the CVC cancel a tender if I complain?

Usually not. Its guidelines say it may get a tender complaint investigated but would not generally interfere in the tendering process. To change a tender before it closes, raise it with the buyer, through the grievance clause, or with the IEMs.