1. IAEA Activities Related to Bidding and Bid Evaluation
John H. Moore
Nuclear Power Engineering Section
VIE2012/9002/01 Meeting
March 23-26, 2015
Hanoi, Vietnam

2. It’s great to be back in Hanoi!

3. Topics to be covered Publications
Bid evaluation assistance, including:
New BIDEVAL toolkit (in progress)

4. Publications

5. Recall issued publications

6. Update since December 2014 workshop
Procurement Engineering and Supply Chain Guidelines (new NP-T-3.21) has been approved for publishing;
Includes:
Typical procurement processes;
Considerations of special importance and lessons learned;
Procurement of services;
Procurement of software;
Counterfeit and fraudulent items;
Proactive methods for new NPPs.
More related to O&M purchasing, not new NPPs, but many similarities exist.

7. NP-T-3.21 Procurement Model

8. Bid evaluation assistance

9. General principle of bidding process; Bid invitation specifications;
Invitation and Evaluation of Bids for Nuclear Power Plants (NG-T-3.9, 2011)
General principle of bidding process;
Bid invitation specifications;
Bid evaluation process;
Technical bid evaluation;
Economic bid evaluation;
Contracting.

10. Basic bidding process (from NG-T-3.9)

11. BIDEVAL Toolkit
BIDEVAL 3 software prepared in 1990’s to assist Member States in comparing and evaluation bids;
Platform has become outdated and difficult/impossible to update;
Decision made to initiate new project on Bid Evaluation starting in 2015;
Project will produce a web-based “toolkit” of easy to use model forms/spreadsheets to assist in various aspects of the bid process.

12. Potential model – Scottish Government Procurement site

13. New toolkit status First consultancy meeting held February 2015;
Representatives from Canada, Lithuania, South Africa,, Switzerland, USA and Vietnam (Mr. Viet Dinh Ninh);
Preliminary process draft for toolkit developed.

14. New toolkit process Prerequisite activities
Procurement governance framework
Preliminary business case
Decide on contracting approach
Develop & authorize procurement strategy
Customize procurement processes
Identify key stakeholders
Develop process evaluation criteria
Develop and approve bid invitation specification
Handover BIS to procurement agency
Supplier selection
Invitation to tender
Evaluate bids
Bid clarifications
Rank bidders and identify preferred bidder
Independent review
Issue tender
Hold open vendor meeting
Vendor enquiries
Receive and open bids
Initiate negotiations with preferred bidder
Update business case
Make final investment decision
Award contract
Post award meeting
Contract management and oversight
Lessons learned documentation
Preparing for commissioning and operation

15. Next steps Further refine process steps;
Add and develop available assistance tools, including:
Samples of evaluation criteria and weightings used on various projects.
Develop web site ‘look and feel’;
Expected availability – 2016.

16. Evaluation criteria examples
Country 1
Country 2
Country 3
Design maturity
Payment offer for site (credit for % of consortium)
Technical factors (20%)
-safety
-construction risk
-passive safety features
-etc.
Regulatory complexity / regulatory risk
Equity offering
Industrial development (30%)
-jobs
-investment
Evaluated capacity factor
Commitment on any project cost overrun
Financial (30%)
-LUEC
-Tariff
LUEC (Levelized Unit Energy Cost)
Ability to meet schedule
Financing support (10%)
Local content
Technical due diligence
Equity investment (10%)
Grid integration
Compliance with draft model agreement
Decommissioning and waste management

17. ISO 10845-1 Table 3 Methods Financial offer
Financial offer and quality
Financial offer and preferences
Financial offer, quality, and preferences

18. Other potential expert missions
IAEA cannot participate in evaluation of specific bids, but can:
Provide experts to comment on completeness of a BIS, evaluation criteria, or other topics in advance of a tender being issued;
Note: expert views from such missions are their own opinions based on their expertise, not official IAEA recommendations, policy or standards.

19. Notable references from draft toolkit
IAEA NG-G-3.1 Milestones in the Development of a National Infrastructure for Nuclear Power
IAEA NG-T-1.4 Stakeholder Involvement Throughout the Life Cycle of Nuclear Facilities
IAEA NG-T-3.1 Initiating Nuclear Power Programmes: Responsibilities and Capabilities of Owners and Operators
IAEA NG-T-3.3 Preparation of a Feasibility Study for New Nuclear Power Projects
IAEA NG-T-3.7 Managing Siting Activities for Nuclear Power Plants
IAEA NG-T-3.9 Invitation and Evaluation of Bids for Nuclear Power Plants
NP-T-3.21 Procurement Engineering and Supply Chain Guidelines in Support of Operation and Maintenance of Nuclear Facilities
IAEA INSAG-20 Stakeholder Involvement in Nuclear Issues
IAEA TRS-275 Bid Invitation Specifications for Nuclear Power Plants, A Guidebook
IAEA TRS-204 Technical Evaluation of Bids for Nuclear Power Plants, A Guidebook
IAEA TRS-396 Economic Evaluation of Bids for Nuclear Power Plants, A Guidebook
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT (OECD) Anti-Corruption Ethics and Compliance Handbook for Business (2013)
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT (OECD) OECD Guidelines for Multinational Enterprises (2011)

20. Notable references (cont.’d)
THE INSTITUTE FOR PUBLIC PROCUREMENT (NIGP) and THE CHARTERED INSTITUTE FOR PURCHASING AND SUPPLY (CIPS), Ethical Procurement (2012);
BRITISH STANDARDS INSTITUTE, BS 8903:2010 Principles and framework for procuring sustainably. Guide
WORLD BANK INTERNATIONAL FINANCE CORPORATION (IFC), Performance Standards on Environmental and Social Sustainability (2012)
CONSTRUCTION INDUSTRY INSTITUTE (CII), IR A Framework for Sustainability during Construction (2014)
ISO Construction procurement – Part 1: Processes, methods, and procedures
ISO Risk Management
IEC Risk management -- Risk assessment techniques
EPRI guide Advanced Nuclear Technology: Supplier Quality Management for New Nuclear Plant Construction Projects, Report
Construction Industry Institute: IR 181-2 IPRA International Project Risk Assessment, Austin: CII, 2003.
Construction Industry Institute: IR 280-2 Applying Probabilistic Risk Management in Design and Construction Projects, Austin: CII, 2013.
Construction Industry Institute: IR 210-2–Equitable Risk Allocation: Two-Party Risk Assessment and Allocation Model

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