MNS moots Swiss Challenge method to clean up civic tendering system

With contractors being held responsible for everything from flooding and potholes to poor roads, the Maharashtra Navnirman Sena (MNS) has mooted a solution to clean up BMC's rotten tendering system, which itself lets in tainted contractors. According to the MNS, once this new method is in place, contractors will no longer be able to rig civic contracts.

MNS group leader in the BMC Sandeep Deshpande wants the civic body to introduce the 'Swiss Challenge' method, instead of conventional tenders, in allotting civic contracts.

Deshpande has written to municipal commissioner Ajoy Mehta, asking him to introduce this procurement method at least for road contracts, which are the worst-affected by shoddy work and tainted contractors.

According to officials, under the method is a new process of giving contracts. "Any person or company with credentials can submit a development proposal to the government. That proposal is put up online and a second person can give suggestions to improve and beat that proposal," an official said. "It is a new bidding process to help private sector initiative in key public sector projects."

Once the proposal is submitted, an expert committee scrutinises it and accepts the best proposal. Once that is done, the original proposer gets a chance to accept it, if there is an improvement on his/her proposal. If the original proposer is not able to match the more attractive and competing counter proposal, the project is awarded to the counter proposal.

"The Swiss Challenge System will clean up the mess in tenders completely. It will break the monopoly of existing contractors who rig tenders, fix contracts and loot the BMC. It will also let top private firms and corporate companies take part in the city's development," Deshpande said.

He has asked Mehta to put up this proposal at a meeting of BMC group leaders and introduce it for allotting roads contracts this year. The BMC is set to spend Rs2,000 crore on constructing roads this year.

The method has been used by several states in India, including Gujarat, for roads and housing projects. In 2009, the Supreme Court had approved the method for awarding of contracts. Last month, finance minister Arun Jaitely had approved development of 400 railway stations using the method.

dna had, on Tuesday, reported how a section of disgruntled contractors has written to Mehta, listing nearly two dozen reasons why the BMC was struggling in giving work to top firms and ending up getting shoddy and substandard work.

"This will end corruption to a large extent. For 20 years, only a set group of half a dozen road contractors bag works. All top firms keep away because they can't get through the opaque tendering system. All tenders are made to favour the fixed set. The Swiss Challenge System will help the BMC get the best companies and the best price," Deshpande added.

BMC officials said a policy decision would have to be taken on the new method before introducing it in the corporation.

What is the Swiss Challenge method?
Any person or company with credentials can submit a development proposal to the government. That proposal is put up online and a second person can give suggestions to improve and beat that proposal.
Once the proposal is submitted, an expert committee scrutinises it and accepts the best proposal. Once that is done, the original proposer gets a chance to accept it, if there is an improvement on his proposal. If the original proposer is not able to match the more attractive and competing counter proposal, the project is awarded to the counter proposal.