1. Bid Evaluation and Award
Er. Hari P Dhakal
24 May 2017

2. Session Content
Bid Opening
Bid Evaluation
Award of Contract

3. Procurement Flow Diagram
Planning/Bid Packaging
Prequalification
Bidding Documents
Opening of technical Bid
Technical Bid Evaluation
Opening of price Bid
Price Bid Evaluation
Award of Contract

4. Bid Opening: Public Opening of Bids
Principles and Features:
Bid received are opened publicly at the Time and Place indicated in the Bid Documents
For fairness and transparency
Bidders’ representative attendance encouraged
Record of signature/initialed by the representatives of bidders present

5. Technical Bid Opening: Information to be read out
Bidder’s name and address
Presence/absence of Price Bid envelope
Whether Bid Security submitted or not
Authorized representative’s signature in Letter of Technical Bid
Interlineations, erasures, overwriting corrections; details of corrected figures and whether signed by authorized representative
Any other details as considered appropriate by office

6. Price Bid Opening: Information to be read out
Following information:
Bidder’s name and address
Total bid price
Amount or percentage of any discounts offered
Offered price, if technical alternative proposed
Authorized representative’s signature in Letter of Price Bid and Price schedule
Interlineations, erasures, overwriting corrections; details of corrected figures and whether signed by authorized representative
Remarks, if any; Rate analysis, if requested
Any other details as considered appropriate by office

7. Record of Public Opening of Technical Bid
Pursuant to the notice published on …., the following bids for the Contract no.:…..were received by bid closing date on ……… at …….. hrs. at …… (place) and were publicly opened on ……… at …….. hrs. at …… (place) in the presence of the following individuals
S.N.
Name of Bidder
Bid Security
Amount / Validity
Price Proposal (Yes/No)
Comments
Bidder’s Signature

8. Bid Opening: Typical Problems
Late bids
Incomplete reading out information
Omission to read out discounts offered
Bid Withdrawal by Unauthorized person
Bid modification within 24 hours prior to deadline for submission
Note: There is no evaluation decision at bid opening

9. Bid Evaluation: Purpose
Determination of the lowest evaluated and substantially responsive bid, qualified to perform the contract

10. Bid Evaluation Committee
Bid evaluation committee comprise of:
Chief of public entity or senior officer designated by him or her (technical employee, if possible) –Chairperson
Chief of financial administration section of the concerned public entity – Member
Technical expert, related to the subject matter (officer level, if possible) – Member
Law officer of the public entity, if there is a position of law officer in the public entity - Member

11. Bid Evaluation Committee
May invite expert from government or non-government sector with the approval of Chief of public entity
May appoint a consultant subject to the approved program and budget in accordance with PPA/PPR, if required
May form a sub-committee to assist it in the evaluation
Chief of Procurement Committee shall act as the secretary of the Evaluation Committee

12. Bid Evaluation: Basics
Time frame
before the expiry of the bid validity as stipulated in the bid document
within time frame prescribed by act/regulations
Confidentiality of procedure: no information to non-authorized persons on
Substance of bid
Preliminary examination result and status
Evaluation results and status
Recommendation of award

13. Bid Evaluation: Basics
Bids not considered for evaluation
late bids
not sealed bids
withdrawn bids
bids from disqualified bidders (if prequalification)
bids from blacklisted bidders
open price bid with technical proposal (two envelope bidding procedure)
bids submitted by mutual collusion

14. Bid Evaluation: Steps
Eligibility
Completeness of bid
Technical Aspects
Commercial Aspects
Financial Aspects
Special Considerations

15. Bid Evaluation: Preliminary Examination
Eligibility
Completeness of bid

16. Preliminary Examination of Completeness of Technical Bid
Purpose
To ensure received bids are complete as required by bid documents
Examines whether,
required bid securities have been furnished;
bid documents have been properly signed;
power of attorney or any relevant document has been submitted;
joint venture agreements submitted;
documents for eligibility of bidders have been furnished;
documents to assess the qualification of a bidder are provided
whether bids are generally in order for further evaluation

17. Determination of Substantial Responsiveness of Technical Bid
Purpose
Elimination of bids which are not responsive to important requirements
Examples
failure to satisfy the bid validity period (shorter period)
failure to satisfy eligibility requirements
failure to submit acceptable bid security
failure to sign the Technical Bid Form
failure to meet critical delivery/construction schedule
failure to meet major technical requirements
Submissions of conditional bids

18. Determination of Substantial Responsiveness of Technical Bid
Major Deviations
Effect on validity of bid,
Specified in the bid documents as grounds for rejection of the bid,
A deviation from the provisions of the bidding documents with effect on the bid price, but cannot be given a monetary value,
An unacceptable deviation from the specifications,
Conditional bid

19. Bid Evaluation: Examine Responsiveness
Unacceptable Deviations
Late Bid Submission
Ineligible Bidder
Unsigned Bid
Bid Validity not as Requested
Unacceptable Bid Security
Price Adjustment Vs. Fixed Price
Unacceptable Alternate Design
Non Conforming Time Phasing
Unacceptable Subcontracting
Qualification of Arbitration Rules, Location, etc.
Deviations from Critical Provisions
Applicable Law
Taxes and Duties
Defects Liability

20. Bid Evaluation: Examine Responsiveness
Minor Deviations
Has no effect on the validity of the bid,
Has no effect on the price, quality and delivery of the goods offered,
Has such effect, but can be given monetary value,
Has not been specified in the bid documents as grounds for rejection, provided that amount of deviations is within 15%

21. Adequacy of technical proposal
Evaluation of the Technical Proposal will include an assessment of the Bidder's technical capacity to mobilize key equipment and personnel for the contract consistent with its proposal regarding work methods, scheduling and material sourcing.

22. Evaluation of Qualification
Check whether the bidder’s bid meets the specified qualification requirements:
Eligibility
Pending Litigation
Financial Situation
Historical Financial Performance
Average Annual Construction Turnover
Financial Resources

23. Evaluation of Qualification …contd
Construction Experience
General Construction Experience
Contracts of Similar Size and Nature
Construction Experience in Key Activities
Personnel
Equipment

24. Record of Public Opening of Price Bid
Pursuant to the notice published on …., the following bids for the Contract no.…..the following bids were technically qualified and were publicly opened on ……… at …….. hrs. at …… (place) in the presence of the following individuals
S.N.
Name of Bidder
Bid Price
Discounts
Comments
Bidder’s Signature

25. Preliminary Examination of Completeness of Price Bid
Purpose
To ensure received price bids are complete as required by bid documents
Examines whether,
bid documents have been properly signed by authorized person; and
whether bids are generally in order for further evaluation

26. Determination of Substantial Responsiveness of Price Bid
Purpose
Elimination of bids which are not responsive to important requirements
Example
failure to sign the price Bid Form
Failure to bid for required scope of work
check bid validity period

27. Prepare Table of Bid Prices
Prepare a table showing the Bidders’ bid price, arithmetic correction (if any), bid price in a common currency (NRs.)
No.
Bidder’s Name
Total Bid Price (NRs.)
Arithmetic Corrections (NRs.)
Corrected Bid Price (NRs.) 1
Bidder A
15,000,000.00 - 2
Bidder B
14,000,000.00
+500,000.00
14,900,000.00 3
Bidder C
19,050,000.00
-300,000.00
18,750,000.00

28. Bid Evaluation: Arithmetical Errors
No cause for bid rejection. Can be corrected
Discrepancy between figure and word - Word will prevail
Discrepancy between Unit price and Total price - Unit price will prevail
Discrepancy between Total Bid Amount and sum of Total Prices - Total Prices will prevail

29. Bid Evaluation: Currency Conversion
Exchange rate (for ICB contracts)
Source: Nepal Rastra Bank
Date: 30 days prior to the bid submission deadline
Selling exchange rate

30. Financial Adjustments of Bids
Adjust bid prices to common basis for comparison to determine lowest evaluated bid
Adjustments include:
Adjustment for Completion Time
Adjustment for Alternative Technical Solutions
Quantifiable Nonconformities, Errors and Omissions
If the total adjustment exceeds 15 percent of the bid price, the bid may be rejected as nonresponsive.

31. Other Adjustments Domestic Preference Purpose
To provide margin of preference to domestically manufactured goods or domestic contractors (for ICB contracts, if provided in the bidding document)
To allow domestic firms to compete with foreign firms on more equal footing

32. Other Adjustments Civil Works
Responsive bids are to be classified into two categories :
Category I
Bids offered by eligible Domestic Contractors and Joint Ventures eligible for the Preference
Category II
Bids offered by other Contractors 48

33. Other Adjustments Civil Works
Eligibility Criteria for Domestic Contractors
Incorporated in Nepal
Majority ownership by nationals of Nepal
Will not subcontract to foreign contractors more than 50% of the total value of their work 46

34. Other Adjustments Civil Works
Eligibility Criteria for Joint Ventures between Domestic and Foreign Firms
The domestic partners are individually eligible according to the criteria stated above
The domestic partner would not qualify for the works on technical or financial grounds without the participation the foreign partner
The domestic partner will carry out at least 50% of the works measured in terms of value 46

35. Other Adjustments Civil Works Procedure
Determine lowest evaluated bid from each Category
Compare lowest bids from each category
If lowest bid is from Category I, award contract
If lowest bid is from Category II add percentage specified and compare it with lowest bid from Category I, award contract to lowest 49

36. Other Adjustments Example Civil Works Category A Category B BID PRICE
10,000
9,900
COMPARE
10,000
9,900
AWARD
BID PRICE
9,000
9,500
COMPARE
9,000 x = 9,675
9,500
AWARD
What if
9,000 x = 9,675
9,750
AWARD

37. Bid Evaluation: Extension of Bid Validity
Extension of bid validity is considered in exceptional cases
When considered, all bidders should be asked
Bidders willing to extend bid validity
Cannot modify substance of bid
Must extend validity of bid security

38. Bid Evaluation: Multiple Contracts
If a bidder submits several successful (lowest evaluated substantially responsive) bids, the evaluation will also include an assessment of the Bidder's capacity to meet the aggregated requirements of:
Experience
Financial situation
Current contract commitments,
Cash flow capacity,
Equipment to be allocated, and
Personnel to be fielded.

39. Bid Evaluation - Multiple Contracts: Discounts
Before Discounts
Package 
Bidder A
Bidder B
Bidder C
Ranking without discount
Remarks
Package 1 80 70 60
A offered a discount of 20% if awarded both Package 1 and 3.
Package 2
no bid submitted 40 55
B offered a discount of 10% if awarded all Packages
Package 3 50 42
C offered no discount

40. Bid Evaluation – multiple contracts: Discounts
Least Cost Combination
After Discounts (in brackets)
Bidder A
Bidder B
Bidder C
Ranking without discount
Package 1
80 (64)
70(63) 60
Package 2
no bid submitted
40(36) 55
Package 3
40(32)
50(45) 42
Combination 1:
60 (from Bidder C) + 40 (from Bidder B before discount) + 40 (from Bidder A before discount) = 140
Combination 2:
64 (from Bidder A after discount) + 40 (from Bidder B before discount) + 32 (from Bidder A after discount) = 136
Combination 3:
(all three offers from Bidder B after discount) = 144

41. Technical Bid Evaluation Report
Introduction
General;
Submission of Bids;
Opening of Technical Bids;
Basic Data;
Bid Evaluation Committee
Examination For Completeness Of Technical Bids
Determination Of Substantive Responsiveness Of technical Bids 61

42. Financial Bid Evaluation Report
Introduction
General;
Opening of Price Bids;
Updated Basic Data;
Bid Evaluation Committee
Examination for Completeness of Price Bids
Determination of Substantive Responsiveness of Price Bids
Preparation of Table of Bid prices of Qualified responsive Bidders 61

43. Financial Bid Evaluation Report
Detailed Evaluation of PRICE BIDS
Bids Considered for Detailed Evaluation
Financial Adjustments:
Adjustment for Terms of Payment
Adjustment for Completion Time
Adjustment for Technical Alternatives
Quantifiable Nonconformities, Errors and Omissions 61

44. Financial Bid Evaluation Report
Detailed Evaluation OF Price Bids
Other Adjustments of price bids
Multiple Package Discounts
Domestic preference
Determination of evaluated lowest qualified substantially responsive Bidder
Comparison lowest bid prices with updated estimate to determine any seriously unbalanced or front loaded Bids
Examination of detail price analysis from bidder for seriously unbalanced or front loaded bids or substantially below estimates
Recommendation for award of Contract 61

45. Bid Evaluation Report: Basic Data Sheet
Project Name; Contract No.
Estimated value
Date of invitation for bids issued
Bid Closing Date and Time
Number of Bids received
Bid Validity Expiry date
Bid Security Expiry Date
Date of Exchange rates specified for evaluation
Exchange rates on such date

46. BID EVALUATION: Typical Problems
Failure to submit or late submission of bid security
Insufficient amount of bid security
Short bid security validity period
Lack of supporting documents
Missing items, incomplete bids
Delayed evaluation resulting in withdrawal of some bids
Expiration and extension of bid validity
Partial quantities
Conditional bids 63

47. Bid Evaluation: Award of Contract
Letter of Intention (LOI)
To lowest evaluated responsive qualified bidder
Bid Amount of the bidder to whom LOI is being given
LOI copied to other bidders
Response/protest period

48. Bid Evaluation: Award of Contract
Letter of Acceptance (LOA)
To the successful bidder
Performance security (normal and additional, if required) to be specified in the LOA

49. Bid Evaluation: Award of Contract
Signing of Contract
Contract documents with all appendices
Performance Security
Work program

50. THANK YOU !
ANY Further QUERIES ?
11/8/2018 50 50