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Bid Evaluation Process Overview

This document outlines the bid evaluation process, which consists of four main stages: 1) Preliminary examination to check bidder eligibility and completeness of bids 2) Detailed evaluation of substantially responsive bids through commercial, technical, and financial analysis 3) Post-qualification of the lowest evaluated bidder to verify their qualifications and capacity 4) Preparation of a bid evaluation report documenting the process The stages involve checking for errors, omissions, and deviations in bids, applying any discounts, converting currencies, and assessing bids' adherence to commercial and technical requirements. Domestic preference may also be considered where applicable.

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146 views21 pages

Bid Evaluation Process Overview

This document outlines the bid evaluation process, which consists of four main stages: 1) Preliminary examination to check bidder eligibility and completeness of bids 2) Detailed evaluation of substantially responsive bids through commercial, technical, and financial analysis 3) Post-qualification of the lowest evaluated bidder to verify their qualifications and capacity 4) Preparation of a bid evaluation report documenting the process The stages involve checking for errors, omissions, and deviations in bids, applying any discounts, converting currencies, and assessing bids' adherence to commercial and technical requirements. Domestic preference may also be considered where applicable.

Uploaded by

puvitta sudeshila
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd

Bid Evaluation

LEARNING OBJECTIVES
1. Understanding the objectives of the Bid
Evaluation
2. Identifying the Evaluation Criteria
3. Identifying the stages Of the Bid
Evaluation
4. Identifying the Bid Evaluation Factors
5. Bid Evaluation Process
BID EVALUATION PROCESS
STAGE -1
TO ASCERTAIN WHETHER THE:
The bidder is eligible

Bid is signed

Bid security

□Bid is containing all required critical documents.


bid is complete and quote for all items
• [Link]
Black Listed
• ICTAD grading for Local Contracts
• Member Country
2. Authority to Sign
The bids shall be signed by the person authorized to
do so.
3. Purpose of Bid Security
Bidder will not withdraw /modify his bids during the
validity period
Bidder will agree to do changes in the price due to
arithmetical correction
The bidder will not refuse to sign contract when to do
FOUR STAGES OF BID EVALUATION
1. Preliminary Examination of Bids
( Including determination of responsiveness) Object is to
exclude ineligible, non-responsiveness and
incomplete bids from detailed Examination.

2. Detailed Bid Evaluation and


comparison of bids.
objective is to determine the lowest evaluated bid from
the substantial responsiveness bid
3. Post Qualification.
Object is to verify the qualification and experience of the
lowest evaluated bidder
4. Bid Evaluation Report .

1.
Stage 2
DETAILED EVALUATION OF TENDER
[Link] Analysis; [Link] Analysis; and
[Link] Analysis.
Check for arithmetical
DETAILED errors &
EVALUATION
correct Errors will be corrected by the
Employer as follows:
(a) where there is a discrepancy
between the amounts in figures and in
words, the amount in words will
govern;
(b) where there is a discrepancy
between unit rate and line item
total, resulting from multiplying unit
rate by quantity, unit rate as quoted
will govern.
(c) unless this sub-clause is modified in
Bidding Data and if the bid price
decreases by the above procedure, the
amount stated in the Form of Bid shall
be adjusted with the concurrence of the
bidder and shall be considered as
binding upon the bidder;
(D) WHERE THERE IS A DISCREPANCY

between unit rate and line item total,


resulting from multiplying unit rate by
quantity, unit rate as quoted will govern,
unless there is an obviously gross
misplacement of decimal point in unit
rate, in which case line item total as
quoted will govern, and unit rate will be
corrected;
CHECK FOR OMISSIONS
APPLY DISCOUNTS IF ANY

Convert to common currency


Responsive to commercial & technical
conditions
assess monetary implications of acceptable
deviations and other matters
Apply domestic preference if applicable
Reassess the ranking order of bids
DETAILED EVALUATION OF
SUBSTANTIALLY RESPONSIVE
TENDERS
Commercial Analysis of Substantial Responsiveness of
Tenders.
Technical Analysis of Substantial Responsiveness of
Tenders.
Financial Analysis of Substantial Responsiveness of
Tenders.
3. Post Qualification
POST QUALIFICATION
 Post qualification is suitable for use in the
procurement of works contracts, which are not
complicated where pre- qualification does not
offer much advantage.
 Post -qualification is a distinct step in bid
evaluation.
1. Post –qualification determines that
bidder, who has submitted the
lowest substantially responsive bid,
has the capability and the capacity
to perform the job.
1. If the bidder has not demonstrated his
capacity and capability he is rejected
and next bidder is considered.
Post –qualification criteria shall be clearly
spelled out in the bidding documents
Relevant forms & questionnaires shall be
included in the bidding documents to extract
data in a uniform mater.
The PE can use the data it gathered in
addition to the data submitted by the bidder
1. Average Annual Construction turn-over
2. Availability of liquid assets supplemented by project
specific lines of Credit
3. Experience in similar projects
4. Necessary Equipment.
5. Personnel
6. Production rates of key items
4. Bid Evaluation Report
BID EVALUATION REPORT
After the completion of the evaluation process the PE
should prepare a bid evaluation report setting out
process of evaluation. The PE shall use standard
forms available for the purpose.
In addition the evaluation report should include
narrative section in which any Information not
suitable for presentation in the form of tables,
together with any Supplementary information
necessary for a complete understanding of all the
factors considered during bid evaluation.
Thank you

Common questions

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The detailed evaluation of tenders addresses discrepancies by applying specific correction rules: discrepancies between numbers and words are resolved by favoring the latter, and discrepancies between unit rates and line item totals are resolved by favoring unit rates unless gross misplacement of a decimal is apparent. Corrections ensure consistency and fairness in bid comparison, safeguarding against bidder errors leading to unintended consequences in bid evaluations .

Ensuring bids are signed by an authorized person is crucial as it legitimizes the bid and confirms the bidder's commitment and authority to enter into a contract. This requirement mitigates against unauthorized submissions, potential disputes, and upholds the integrity of the bidding process .

The purpose of bid security in the bid evaluation process ensures that the bidder will not withdraw or modify their bid during its validity period, will accept arithmetical corrections to their bid price, and will agree to sign the contract if awarded. This is significant as it guarantees the integrity and commitment of the bidder, reducing the risk of non-performance after bid acceptance .

Correcting arithmetical errors during the detailed evaluation of tenders ensures accuracy and fairness in bid comparisons. By addressing such errors, potential cost discrepancies are resolved, ensuring the evaluated bid truly reflects the bidder's offer and conditions, which protects both parties from future misunderstandings and disputes .

During post-qualification, factors considered for assessing a bidder's capability include average annual construction turnover, availability of liquid assets and project-specific lines of credit, experience in similar projects, necessary equipment and personnel, and production rates of key items. These criteria ensure that the selected bidder can perform and sustain the contractual obligations .

Post-qualification is a distinctive step because it verifies that the lowest substantially responsive bid is from a bidder capable of performing the contract. This is crucial for uncomplicated contracts where pre-qualification isn't advantageous, ensuring the selected bidder has the necessary experience, financial capability, and resources to complete the contract successfully .

Bids that do not include all critical documents are typically filtered out during the Preliminary Examination stage, which excludes incomplete bids from further detailed examination. This ensures that only bids that meet basic submission criteria proceed to the next stages, maintaining the evaluation process's efficiency and effectiveness .

The bid evaluation process consists of four main stages: 1) Preliminary Examination of Bids, which aims to eliminate ineligible, non-responsive, and incomplete bids; 2) Detailed Bid Evaluation and Comparison, focusing on finding the lowest evaluated bid from substantially responsive bids; 3) Post Qualification, to verify the qualifications and experience of the lowest evaluated bidder; 4) Bid Evaluation Report, which documents the entire evaluation process and includes supplementary information for clarity .

The bid evaluation report contributes to transparency and understanding by systematically documenting how bids are evaluated and the rationale behind decisions made during each stage. It includes standard forms and a narrative section detailing factors considered, thus providing comprehensive insights and justifying the chosen bid outcome .

Commercial analysis plays a critical role in the detailed evaluation of tenders by ensuring that bids are responsive to commercial conditions and meet financial requirements. It involves assessing the validity of discounts, currency conversions, and understanding the monetary implications of any deviations, which are integral to determining the most economically feasible bid .

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