DDA adopts Swiss Challenge method to end single-bid tender delays

New Delhi, Dec 9 (PTI) In a first-of-its-kind reform aimed at ending repeated cancellations of tenders due to single bids, the Delhi Development Authority (DDA) is set to adopt a new bidding method for disposing of land and high-value projects.

The new system — the Swiss Challenge method — will guarantee DDA secures an amount higher than its reserve price in every case, whether the asset is disposed of through sale or long-term licence.

This bidding method allows the initial single bid to be made public and treated as the new reserve price, inviting counter-bids through a competitive process. The original bidder will also have the option to participate in the re-auction, it said in the statement.

The move, recently approved by Lieutenant Governor V K Saxena, is expected to ensure faster tender finalisation, transparent price discovery and higher revenues for the authority, according to an official statement.

Described as a robust, transparent and revenue-maximising mechanism, the method aligns with DDA's model request for proposal (RFP) structure for high-value, long-term licence projects of up to 55 years.

Officials said it protects the authority from delays, cost escalations and stalled projects often caused by single-bid scenarios.

Meanwhile, the DDA recently approved the model RFP framework to ensure competitive bidding, accurate price discovery and maximisation of licence-fee revenue. The Swiss Challenge mechanism will complement this framework by ensuring that tenders do not fail due to a lack of competition.

Additionally, key advantages include avoidance of repeated tender failures, faster decision-making, protection against under-valuation, fair competition and flexibility to accept the best offer or allow the original bidder to match the highest counter-bid. PTI NSM NSM AMJ AMJ