Bid deferred for doorstep waste collection contract in Gurgaon as MCG seeks ULB clarifications

Gurgaon: The process to appoint two private agencies for door-to-door collection, segregation and transportation of municipal solid waste in the city is set to face further delay.A scheduled opening of bids on Monday did not take place due to pending clarifications on key provisions of the tender. On Feb 17, MCG had sought these clarifications from the Haryana urban local bodies (ULB) department. Until they are received and formally issued as part of the tender record, the bids cannot be opened, officials said.
The tender, floated by MCG, seeks to select agencies for two clusters under a five-year contract aimed at streamlining waste collection across the city. A pre-bid meeting was convened on Feb 9, during which participating firms raised several technical and financial queries regarding provisions in the request for proposal (RFP). Following the meeting, the MCG had formally sought clarifications.On the revised date for opening the bids, MCG executive engineer Sunder Sheoran said, "We are expected to get the clarifications by this weekend, so subsequently bids will open."Clarification is sought on two key issues — the rate mechanism for deploying dedicated vehicles to collect wet waste from bulk waste generators (BWGs) and approval of the proposed wholesale price index (WPI)-linked annual escalation formula, including its 70:20:10 cost weightage for diesel, electricity and commercial vehicles.The RFP requires that if the corporation enters into agreements with bio-gas processing facilities or other organic waste treatment plants, the selected contractor is required to deploy separate dedicated vehicles for collection and transportation of wet waste from establishments such as condominiums, hotels, restaurants and other large commercial units. However, agencies want clarity on the rate mechanism for such additional deployment, arguing that the pricing framework for BWG-related collection is not clearly defined in the RFP issued by the ULB department.Another significant issue pertains to the annual price escalation mechanism linked to the Wholesale Price Index (WPI). While the RFP provides that yearly escalation in the quoted price is linked to WPI and that in case of negative WPI neither escalation nor deduction applies, bidders sought a clearer methodology for calculating such revisions.The contract allows the payment to the selected agencies to increase every year based on changes in the WPI, which tracks inflation in goods like fuel and equipment. However, if the WPI turns negative (meaning prices fall), the contractor's payment will not be reduced.To calculate the yearly increase, MCG proposed a formula that assumes most of the contractor's costs come from diesel (70%), followed by electricity (20%) and commercial vehicles (10%). The corporation is now seeking approval to use this specific formula before moving ahead.In public procurement, a pre-bid meeting is typically held before the bid submission deadline so that ambiguities can be clarified and formally notified through corrigenda, ensuring a level playing field for all participants. However, with clarifications still pending days before the scheduled opening, the Feb 23 bid opening could not proceed.This waste management contract is considered crucial for improving collection efficiency and segregation practices in the rapidly expanding city, and any further postponement may impact the pace of planned reforms in municipal solid waste handling.