TTD Eases Tender Norms for Its Hospital Supplies To Attract More Bidders
The annual turnover criterion of Rs 100 crore has been reduced to Rs 25 crore, Rs 15 crore, and Rs 10 crore depending on categories of services
Tirupati: Tirumala Tirupati Devasthanams (TTD) has relaxed the minimum annual turnover criterion for firms participating in tenders to supply medicines and medical consumables to its hospitals. It says the existing norms are limiting competition among bidders.
The TTD Trust board affirmed this decision through Resolution No. 134 when its members met on July 14. The revised eligibility criteria will be applicable for procurement of medicines, injections, laboratory items, surgical consumables, radiology articles, blood bank consumables, and other medical supplies for BIRRD (Balaji Institute of Surgery, Research and Rehabilitation of the Disabled), Sri Venkateswara Institute of Medical Sciences (SVIMS), and Sri Padmavathi Children's Heart Centre (SPCHC), Tirupati.
According to the board’s resolution, the earlier tender conditions required manufacturers, authorised distributors, and importers to meet the annual turnover limits of approximately Rs 100 crore. A subsequent review revealed that this condition is restrictive and reduces the participation of eligible bidders, affecting competition as well as procurement efficiency.
To examine the issue, TTD reconstituted a committee on July 2. The committee, headed by the director of BIRRD, met the following day and recommended lowering the turnover requirements. It said the revised norms would encourage wider participation of eligible manufacturers and distributors, improve competition, ensure uninterrupted supply of quality medicines and medical consumables, and help TTD procure them at competitive prices without compromising on quality.
Under the revised criteria, manufacturers of medicines and injections should have an average annual turnover of at least Rs 25 crore during each of the last three financial years. The minimum turnover has been fixed at Rs 15 crore for manufacturers of surgical consumables, laboratory items, blood bank consumables, radiology items, and other hospital supplies. Authorised distributors and importers should have an average annual turnover of Rs 10 crore and supply only products manufactured by companies that meet the prescribed turnover norms.
In this regard, the trust board decided to continue the multi-vendor procurement system, which allows procurement from willing L2 and L3 bidders at the L1 approved rates if the successful bidder fails to supply the approved items.
The board approved formation of a Quality Assessment Committee in each of the three hospitals. The committee will examine the quality of medicines and consumables before they are accepted for use at the respective hospital.
