BID OPENING, EVALUATION AND AWARD OF CONTRACT: GN. 97, REG.

89, 90, 91 & 96

BID OPENING, EVALUATION AND AWARD OF CONTRACT: GN. 97, REG. 89,90, 91 & 96.
Learning Objectives: When you have completed this chapter you should be able to: Identify procedure for bid opening and evaluation of bid, State reasonable time for bid clarification procedures.

LEARNING OBJECTIVES:
Identify procedures to be used in correction of errors. Set a margin of preference if applicable. Identify the contract award procedures to be followed.

CONTENT:
Bid opening Evaluation, Preliminary & Detailed. Correction of Errors Confidentiality Currency for Bid Evaluation Consideration of margin of preference Recommendation for award.

Definition And Purpose

The purpose of Tender Evaluation is to determine the value to the PE of each tender in a manner that will provide a meaningful comparison among responsive and responsible bids based on Evaluation and Qualification criteria and the determination of the lowest evaluated cost bid.

Definition and Purpose

Therefore, it is a process of technically and financially comparing bids amongst themselves and then judging them basing on the criteria issued with the tender documents for tenders which were invited.

BID OPENING REG. 89 GN 97.

The secretary of tender board that approved the issue of tenders shall convene a meeting for the purpose of opening the tenders that have been submitted (6) Time for opening shall be the same as the time set for the deadline for receipt of tenders or promptly thereafter and shall be announced together with the place for the tender opening in the Invitation to Tenders (7)

BID OPENING REG. 89 (8) GN 97.

All tenders including withdrawal notices and modifications submitted before the deadline i.e. time and date for submission shall be opened in public, in the presence of the tenderers or their representatives. The names of all those present at the tender opening and the organization they represent shall be recorded by the secretary of the respective tender board

Bid Opening Reg. 89(9) GN 97

The bidders name, the Bid Prices, the total amount of each bid and of any alternative Bid if permitted, any discounts, Bid modifications and withdrawals, the presence or absence of Bid Security and such other details as the tender board may consider appropriate, will be announced to those persons present at the opening of tenders.

BID OPENING REG. 89 GN 97.

No bid shall be rejected at bid opening except for the late bids, (Reg. 89 (11). Envelopes marked WITHDRAWAL shall be opened and read out first. Discounts offered by tenderers must be read out and announced in public during opening.

Bid Opening Reg. 89 GN 97

Bids modifications, and any discounts that are not opened and read out during bid opening will not be considered for further evaluation regardless of the circumstances. Reg. 89(13) The Tender board that received and opened the tenders shall prepare minutes of Bid opening, including the information disclosed to those present during opening.

Bid Opening Reg. 89 GN 97

Confidentiality: Information relating to the examination clarification, evaluation, and comparison of bids and recommendation for the award of a contract shall not be disclosed to bidders or any person(s) not officially concerned with such process. Ref. Reg. 89 (17) Any effort by a bidder to influence the Employers processing of bids or award decisions shall result in the rejection of his/her tender. Reg 89(19)

EVALUATION OF BIDS
The Basic Principles: Tender evaluation shall be consistent with the terms and conditions set forth in the bidding documents 90(4). Evaluation shall be carried out using the criteria explicitly stated in the bidding documents. Tenders shall be made comparable among themselves in order to determine the lowest evaluated cost bid 90(5).

Evaluation of Bids
The Basic Principles: Whether there is pre-qualification carried out previously, the process starts with preliminary examination, whereby tenders are examined to identify responsiveness and whether the bidder is qualified for detailed evaluation. Unit rates and price shall be analyzed to ensure that the bid is realistic. Also consider alternative bids.

Evaluation of Bids
Basic principles: The currency or currencies in which the price offered in each bid would be paid by the purchaser, if that bid was accepted, shall be valued in terms of a single currency selected by the purchaser. The rates of exchange be used in such valuation shall be the selling exchange) rates published by an official source e.g.. BoT.

Evaluation of Bids
Basic principles: A detailed report on the evaluation and comparison of bid setting forth the specific reasons on which the determination of the lowest evaluated cost bid is based shall be prepared and accompanied by the three lowest evaluated cost bid for approval. Post qualification shall be undertaken for the lowest evaluated tenderer only. If the first firm fails, it shall be conducted for the next lowest evaluated tenderer.

EVALUATION PROCESS
The PPR GN 97 Reg. 90(1) recommends establishment of an Evaluation Committee consisting of three to five qualified members. Prepare evaluation forms (std) by harmonizing them to suite particular assignment. Ascertain ITB clauses that shall be used to determine the responsive bids. Carry out the preliminary examination of bids. Carry out the detailed evaluation of bids Report writing.

Evaluation Process Preliminary Examination

The purpose of preliminary examination is to identify and reject bid(s) that are complete invalid, or substantially non-responsive to the bidding documents and therefore are not to be considered further. Assessed Pass or Fail criteria. Prepare a checklist for tenders responsiveness based on qualification criteria. The evaluation committee should go through the ITTs to identify important instructions regarding qualifications of service providers.

Evaluation Process Preliminary Examination

Selected ITTs are then discussed and agreed on the minor ones and major deviation from a major qualification criteria. Major deviation where if the bid is accepted shall cause problems in implementation of the contract or that if accepted shall cause unfair competition among qualified bidders Reg. 90 (8)

Preliminary Examination
However minor deviation can also be rejected depending on circumstances. In the preliminary examination, the employer will look into the verification, eligibility, bid security completeness of bid and substantial responsiveness to the requirements of the bidding documents.

Preliminary Examination
Verification:
Attention should be directed towards deficiencies that if accepted would provide unfair advantages to the bidder. Sound judgment must be used, for example, simple omissions or mistakes arguably occasioned by human error should not be ground for rejection of the bid. It is rarely for a bid to be perfect in all respects.

Preliminary Examination
Verification:
However, the validity of the bid, its signature must not be in question. In case of Joint Venture, the joint venture agreement must be submitted If the bidder is an agent, an authorization from the supplier or manufacturer must be provided.

Preliminary Examination
Eligibility:Reg 90(17)a
Bidder must be a national or juridical entity from an eligible member country as defined in the PPR. All partners and Joint Ventures shall be from eligible member country, and the JV shall be registered in an eligible member country. If pre-qualification litigation has taken place, only bids from pre-qualified bidders can be considered.

Preliminary Examination
Bid Security Reg 90(17)d The bid security must conform to the requirement of the ITT, and it must accompany the bid. If the security is issued as a respective Tender Board guarantee, it must be consistent with the working of the bid security form provided in the bidding document.

Preliminary Examination
Bid Security: Submission of a copy of the security or submission of a counter-guarantee naming the PE respective tender board instead of the PE is unacceptable. Security for an amount smaller or for a period shorter than one specified in the ITB are not acceptable.

Preliminary Examination
Completeness Of Bid: Unless the bidding documents have specifically allowed partial bids-permitting bidders to quote for only selected items or for only partial quantities or particular items bids not offering all of the required items should ordinarily be considered nonresponsive. Missing prices for occasional work items are considered to be included in price for closely related items elsewhere.

Preliminary Examination :
Substantial Responsiveness:
A substantially responsive bid is one which conforms to all the terms, conditions and specifications of the tender documents(s) without material deviation or reservations. A material deviation or reservation is one which affects the scope, quality or performance of the contract, or which in any substantial way, is inconsistent with the tender documents or limits the PEs rights or the tenders obligation under the contract, and affects unfairly the competitive position of tenderers presenting responsive tenders.

Preliminary Examination :
Substantial Responsiveness:
Major deviations to the commercial requirements and technical specification are a basis for the rejection of bid. Examples of major deviations may include:- Stipulation of price adjustment when fixed price were called for. - Refusing to bear important responsibilities and liabilities allocated in the bidding document such as performance guarantee and insurance coverage.

Preliminary Examination :Examples Of Major Deviations: - Subcontracting in a substantially different amount or manner than that permitted. If a bid is not substantially responsive, it will be rejected by the PE, and may not subsequently be made responsive by correction or withdrawal of the non-conforming deviation or reservation. The results of preliminary examination should be presented in table, - if the bid fails preliminary acceptance, the reasons must be clearly explained in footnotes or in an attachment as necessary

EXAMPLE OF PRELIMINARY EXAMINATION

BIDDER VERIFICA TION ELEIGIBILITY BID SECURITY COMPLETENESS OF BID SUBSTANTIAL RESPONS IVENESS ACCEPTE D FOR DETAILED EXAMS.

A B C D E F G H

YES NO2 YES YES YES YES YES YES

YES1 YES YES4 YES NO7 YES YES YES

YES YES YES NO5 NO8 YES YES YES

YES YES YES NO6 YES YES YES YES

YES YES3 YES YES YES YES YES YES

YES NO YES NO NO YES YES YES

FOOT NOTES
1. Bidder is partly owned (25%) by government (of buyer). It operates under commercial law and is financially and managerially Independent of the Government. 2. Joint Venture agreement missing. 3. Requires, 25% mobilization advance, bid document states, max of 15%. Deviation is minor and can be quantified.

Foot Notes
4. Bidder pre-qualified as local agent, bid is joint obligation with parent company. Bid deemed acceptable because results in increase in financial backing. 5. Bid security not in freely convertible currency. 6. Does not include cost for required disposal of hazardous wastes found at site.

Foot Notes
7. Sources of materials from non-eligible country. 8. Validity of Bid Security is less than requested 12 weeks .

DETAILED EXAMINATION AND COMPARISON OF TENDER

Only those bid surviving preliminary examination shall be accepted for detailed evaluation. Bids that have failed under preliminary examination I.e. Non-responsive bids shall be rejected and not considered for detailed evaluation. If no any responsive bid, the exercise may be revised and waive certain conditions if agreed by evaluation committee.

Detailed Examination and Comparison of Tender

Check the following: Method of procurement used. Check specifications if are balanced. Check the whole tender document especially areas where all bidders have failed to comply. The Evaluation Committee shall use tables of the standard forms to examine and compare bids among themselves based on evaluation criteria set forth in the bidding documents

Detailed Examination and Comparison of Tender

NO or YES shall not apply under this section, Bidders shall compete among themselves, the winner should be the highest ranked/the lowest Price evaluated Bidder.

STEPS
Correction of Errors:- The methodology for correction of computational errors shall be carried out pursuant to the relevant section/clause of the ITT. The read-out bid prices and their corrections should be noted.

Steps
Modification, Amendments & Discounts: Consider all discounts and any financial relief's offered by the Bidder and which were read-out and recorded during tender opening. Modification & Amendments that were read-out and recorded are also taken into consideration at this stage.

Steps
Currency Conversion: Either for single currency or for multiple currency using the exchange rate as stipulated in the bidding documents (data sheet). Additions: Are for any omissions that are accepted to the client in pursuant to methodology set in the bidding document.

Steps
Adjustments: Adjustment should include any other values subtracted or added on converted currency as a result of such items, such as taxes, duties etc. The methodology used in evaluation of these factors should be precisely described in the bid evaluation report and should be fully consistent with ITB provisions.

Steps
Priced Deviations: These are values that are meant for Evaluation purposes pursuant to the ITB clauses. They should not form part of the contract. A bid with minor deviations may be considered substantially responsive if their further consideration assigns a monetary cost or penalty to the bid for purpose of bid comparison.

Steps
Attention: (i) Request for Deviation: - That are expressed by the bidder in vague terms; such as We would like an increase in the amount of mobilization advanceor we wish to discuss changes in the completion schedule should ordinarily be ignored in bid evaluation

Steps
Attention: (ii)If a bid provides for a delivery or completion period that is beyond the date specified in the bidding document but that is non the less technical acceptable to the buyer, the time advantage given should be assessed as penalty specified in the ITB or if one is not provided based on the rate of liquidated damage specified in the bidding document.

DETERMINATION OF AWARD
In the comparison of bid for Nonconsultancy services the corrected and discounted bid price together with adjustments for omissions and specified evaluation factors have been noted in table 7.

Determination of Award
The bidder with the low total is the lowest evaluated cost bid at this stage subject to:- Application of domestic or regional preference, if is allowed. - Application of any discounts, contingent on the simultaneous award of multiple contracts or lots; and

Determination of Award
- Post-qualifications Evaluation, or, if prequalification has occurred confirmation of prequalification information. Gross Discounts: - These are conditional discounts offered in the event that more than one contract or lot will be awarded to the same bidder. - The size of gross discounts offered by each bidder may vary with the potential number of contracts.

Determination of Award
Gross Discounts: - the ITB may also limit the member or total value of awards to a bidder on the basis of its financial and technical capacity. - The buyer shall select the optimum combination of awards on the basis of least overall cost of the total contract package consistent with the qualification criteria.

Determination of Award
Qualification - If pre-qualification was conducted, the bidders qualifications have since deteriorated or the bidder has since received additional work that over stresses its capacity. - The buyer should satisfy itself fully on both accounts. - Where pre-qualification has not occurred the prospective bidder should be subjected to post qualification.

Determination of Award
Qualification - If the lowest evaluated bidder fails postqualification, its bid should be rejected and the next bidder should then be subjected to post-qualification examination. - The rejection of a bid for reasons of qualifications requires substantial justification which should be clearly documented in attachments to the report.

Determination of Award
Alternative Bids - If the ITB request or allow the buyer to accept alternative bids under the stipulation that only the alternative bid submitted by the lowest evaluated bidder and conforming to the bidding document will be considered.

Determination of Award
Proposed Award - The PE will award the contract to the bidder whose Bid has been determined to be substantially responsive to the bidding documents and who has offered the lowest evaluated Bid price. - The PE reserves the right to accept or reject any Bid, and to cancel the Bidding process and reject all Bids, at any time prior to the award of contract without thereby incurring any liability to the affected bidders or any obligation to inform the affected Bidder or bidders the grounds for the PEs action.

Determination of Award
Proposed Award: - The amount of the proposed award shall be the bid price as submitted by the wining bidder, adjusted, discounted, corrected and acceptance by the PE of alternative offers from the lowest evaluated bidder.

REPORT SUBMISSION
Content of the Report:- Back-ground of the assignment - Selection process (attach criteria considered during evaluation exercise). - Provide number of members of Evaluation Committee and days taken to complete the task. - Identify circumstances revealed during evaluation process and how was settled and any other instance if any.

Report Submission
- Present result of each bidder focusing on strengths and weakness observed e.g.: The firms experience and past performance on similar contracts. The proposed staff. The proposed methodology to execute the assignment. Financial capability to perform the contract Current commitments etc.

AWARD OF CONTRACT
The appropriate Tender board shall approve and award contract. The award shall be made, within the period of tender validity. Bid securities of unsuccessful bidders should be returned after award has been made.

Award of Contract
Within 21 days after receipt of the Letter of Acceptance, the successful Bidder shall deliver to the PE a Performance security in the amount and in the form stipulated in the Bidding document. Upon confirmation by the buyer to the Authority that, the award has been made, the results of tender award shall be published in the Authoritys Website & Journal, Government Gazette and two newspapers of wide circulation.

Award of Contract
Information may include, description of the contract, the name and Nationality of the contract awardees, and the contract price. Any further information on the bids or their evaluation report, shall be held confidential by the PE.

MANAGEMENT REPORTS
A Management report must be provided during the first week of each calendar month covering the previous calendar month detailing as minimum: Any occurrence of failure to meet the specified performance standards and proposed remedial action. Any complaints received from the PE, Contract Manager and action taken.

Management Reports
Proposal for action that would improve service delivery at NO ADDITIONAL COST.
To accompany the invoice firms should propose the format of this management report and any other issues they suggest it could embrace.

CONTRACT STAFF
All contract staff should be of good character, health and well motivated. Firms should provide procedures for appointing, reducing, and selection of staff to be employed and/ or deployed for contract and details of human resources polices, for example;

Contract Staff
- Disciplinary action - Training - Staff terms and conditions of service, leave entailment, gender perspective, pension and other benefits.

POLICIES
Services should be delivered paying due regard to environment, health and safety security consider actions. Firm must be required to provide policy statement on these issues.

UNIFORMS
Staff employed on contract are to wear smart distinguishing uniforms and name badge for identity. Firms provide details of proposed uniforms and compliance also Identity cards.

INSURANCE
Service Providers should have insurance cover as a minimum requirement for: -Employees personal accident -Damage to PE and customers property, personnel themselves. -Firms to prove details of insurance policies in place.