The probity watchdog, in a fresh set of guidelines issued to all Central government ministries or departments, has said that award of contracts on nomination basis or on 'single tender' basis should be avoided except for unavoidable circumstances such as natural calamities and emergencies.

"Tax evasion in the procurement contracts could be another area of concern; therefore, it is necessary that tax liability of the contractors or suppliers is examined properly," the CVC said.
    
It has prescribed a check list to ensure duplicate and over payments are not made to the contractor or supplier, payment for extra or substituted items have been made after due approval of the competent authority, and recovery of mandatory taxes and duties is being done as per the norms of the contract agreement.
    
The departments have been asked to ensure whether or not reimbursement of service tax, excise duty etc. is being done after obtaining the actual proof of depositing the same with authorities concerned.

"Award of contracts on nomination basis, which is also called a single tender is to be resorted to only under exceptional circumstances such as natural calamities and emergencies or there were no bids to repeated tenders or where only one supplier has been licensed (proprietary item) in respect of goods sought to be procured," it said.

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