Quotation Business

We have a complex procedure for purchasing equipment. If it is costly, tenders are invited, and big bidders bid for supplying the equipment. If it costs in thousands or less, quotations are invited, and smaller bidders quote. Tenders are advertised in leading newspapers, while quotation notices are put on notice-boards and telephones to usual dealers. We had asked for stainless steel trays for labor ward. The stores head clerk sent me all quotation papers for scrutiny and approval of the purchase. We had asked for big trays and small trays. There were three quotations for small trays, Rupees 2100, 2200 and 2300 from three different companies. There were three samples, which were not labeled and they looked identical, manufacturer’s stickers included. There were three quotations for big trays, of Rupees 9600. 9700 and 9800 from three companies. There were no samples. I was asked to state if the samples were satisfactory, and if the price quoted by the lowest bidder was reasonable and as per market rate. It is the normal tendency of a head of a department to state that the lowest bid was satisfactory and reasonable, and recommend the purchase from that bidder. I had my doubts. So I called a known vendor and asked him the prices. This fellow had supplied us equipment of good quality in the past, when I had made the purchases through a grant, getting three quotations from different vendors without involving the stores personnel. He quotes Rupees 330 and 2300 for a small and a big tray respectively. So the lowest bids to the stores were 6.3 and 4.1 times the market rate. I wrote this remark and returned the papers to the stores, asking for fresh quotations for the trays. I am yet to hear from the stores again.