Andhra Pradesh High Court orders DRDO to reassess unusually low defence bids

Jaykay Enterprises contested DRDO's decision to grant a development contract for a next-generation processor-based moored mine to Apollo Micro Systems, alleging the winning bid was far below material costs. The Andhra Pradesh High Court ruled that DRDO failed to perform the required pre-award examination for such a low quote and mandated a review of the lowest and second-lowest bids according to Clause 6.42(b)(ii) of the 2025 procurement manual.

The court emphasized that a low price alone does not invalidate a tender, but a viability assessment is essential. Should the bidders satisfy the prescribed checks, one outlet award and financial approval may remain; if not, the authorities must proceed under the standard procurement framework. The decision underscores the need for rigorous scrutiny of defence procurement under the Development-cum-Production Partnership model.