Cost Guard deviated from prescribed procedures: CAG

In its report tabled in the Parliament, the CAG said, "the ICG procured 12 Air Cushion Vehicles (ACVs costing Rs 223.26 crore, in deviation from prescribed procedure leading to doubts about optimality of economy in the price paid due to denial of level-playing field to prospective bidders."

ACVs are used for multipurpose maritime operations such as high speed coastal patrol in shallow waters and marshy areas, seaborne amphibious operations, high speed interception and interdiction and search and rescue operations in shallow waters.

"This procurement for coastal security is questionable, both on discovery of most economic price as also on the operational suitability of the very equipment," it said.

The report said two vendors had qualified for the final stage of tendering including Griffon from the UK and EPS Corporation from the US from the 14 vendors who were issued the tender and ultimately the tender was awarded to the British firm.

The CAG said RFP for the procurement stated that ACVs should have an endurance of nine hours with cruise speed of maximum 45 knots but it was found that the two selected vendors had showed their speeds to be 35 and 30 knots respectively.

"Fresh tender was not issued despite their proposals not meeting the requirements and the solicited requirement for cruising speed was altogether deleted in a pre-bid meeting," the report said. (MORE)