ALB Justification Request — Tender 100/PROC/APIIC/1/2026

Date: 2026-05-11

To: M/s Abnormally Low Bidders Pvt Ltd

6-2-101, Sea View Apartments, Visakhapatnam-530001

Attention: Mr. L. Bidder

Tender: District Hospital, Kurnool

NIT No.: 100/PROC/APIIC/1/2026

Estimated Contract Value (ECV): ₹85.00 crore

Dear Sir/Madam,

Following review by the Tender Scrutiny Committee, your bid has been flagged as an Abnormally Low Bid (ALB) per CVC Office Memorandum on Vigilance Aspects of Public Procurement (No. 005/CRD/19 and successor OMs).

Quantitative basis

• Your bid: ₹52.70 crore (-38.00% vs ECV)
• Average of QUALIFIED bids: ₹75.62 crore
• ALB threshold (average × 0.8): ₹60.50 crore
• Shortfall below threshold: ₹7.80 crore

Cross-tender consistency signal

This is not an isolated incident. Your bidding pattern shows this low-bid signature across 3 of 3 tenders evaluated in this batch. Cross-tender consistency at this rate is treated as a HIGH-severity systemic signal per CVC vigilance norms, not an outlier.

• Severity: HIGH
• Detection confidence: HIGH

Required submissions (within 7 days of receipt)

Per CVC ALB norms, you are required to submit, within 7 calendar days of receipt of this letter, ALL of the following documents addressed to the Procuring Authority:

1. Detailed cost analysis demonstrating viability of contract execution at the bid amount, broken down by:

• Direct material cost (with supplier quotations annexed)
• Labour cost (with wage rates per AP State Minimum Wages Act)
• Equipment cost (owned vs leased breakdown; rental rates if leased)
• Overheads + profit margin (justification for sub-industry-standard margin)
• Contingency provision (if any)

1. Audited financial statements for the last 3 financial years showing capacity to absorb pricing risk:

• Profit & Loss statements (signed by Chartered Accountant)
• Balance sheet with working capital position
• Cash-flow statement

1. Additional Performance Bank Guarantee equal to the shortfall (₹7.80 crore) as additional security, OR an undertaking to provide 100% advance PBG covering the full contract value, OR audited evidence of prior ALB-bid execution at similar margins.

1. Bidder undertaking that the bid amount represents a bona fide technical + commercial proposal and is NOT a cover bid, price-fixing arrangement, or deliberately-low strategic bid intended for subsequent variation claims.

Consequences of non-submission or unsatisfactory response

Per CVC norms and AP Standard Tender Document Clauses on ALB treatment:

• Failure to submit within 7 days will result in rejection of your bid as INELIGIBLE for this tender.
• Unsatisfactory cost analysis (cost build-up cannot demonstrate viability) will result in rejection at the discretion of the Tender Scrutiny Committee.
• Persistent ALB pattern across tenders may invite vigilance referral to the AP State Chief Vigilance Officer for review of past procurement awards and possible blacklist proceedings.

Yours faithfully,

Procuring Authority

(Communication generated by SYSTEM; signed-off via approval workflow before dispatch)

Drilldown reference:

• BidAnomalyFinding node_id: e93411ef-cc9b-45d6-9310-0070220a3024
• Anomaly class: ALB_CORROBORATION
• Aggregate severity: HIGH; confidence: HIGH
• Cross-tender appearances: 3 of 3 tenders
• Cross-tender consistency: True