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Bid evaluation - Works

Bid evaluation - Works. Clarification of bids ( if necessary) Determination of responsiveness “Substantial” responsiveness No material deviations Correction of errors Figures / words Unit rate / total Misplacement of decimal point. Bid evaluation – Works (cont.).

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Bid evaluation - Works

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  1. Bid evaluation - Works • Clarification of bids (if necessary) • Determination of responsiveness • “Substantial” responsiveness • No material deviations • Correction of errors • Figures / words • Unit rate / total • Misplacement of decimal point

  2. Bid evaluation – Works (cont.) • Conversion to single currency • Options • Any specified datenot earlier than 4 weeksprior to bid closingnot later than original datefor expiry of bid validity • Date to be clearly specifiedin bid documents

  3. Bid evaluation – Works (cont.) • Evaluation and comparison of bids • Compare bids in single currency,after excluding provisional sums,contingency • Add monetary cost ofquantifiable variations* with implications • Add value of benefits foregonefor longer times of completion* * Only where applicable

  4. Bid evaluation – Works (cont.) • Adjust for “acceptable” quantifiable variations • Preference for domestic bidders** • 7 - 1/2% on the adjusted bid price ** for eligible countries only

  5. Correction for error

  6. Comparison of bid conversion to common currency • Object • To determine lowest evaluated bid on date specified • Bid price • Convert into amountspayable in each currency • Pre-stated common currency • Either borrower’s orany currency such as USD or €

  7. Comparison of bid conversion to common currency (cont.) • Exchange rates at date specified • Into local currency • Official source such as central or local commercial bank • Into foreign common • Selling rates as published in specified international press for foreign component • Selling rates of central / local commercial bank for local component

  8. Preference fordomestic contractors • Borrower may grant margin ofpreference for comparison of bids • With prior agreement of bank • Include in loan / credit agreement • For ICB only

  9. Preference fordomestic contractors (cont.) • Requirements for eligibility formargin of preference (7.5%) • Applicable only for “domestic bidders” i.e. Individual firms • Registered in borrower country • Greater than 50% national ownership • Not more than 50% subcontracting to foreign firms • Joint-venture of domestic firms • As in 1 & 2 above • Joint venture registered in Borrower’s country

  10. Preference fordomestic contractors (cont.) • Bidding documents to indicate preference, criteria and methodology for evaluation • Bidder to furnish data to support eligibility as domestic contractor

  11. Life cycle cost methods • Cost to own and operate itemduring its useful life • Initial purchase price • Adjusted for extras, delivery,variations in payment terms, etc. • * Value of adjustments added to bid price • Operating cost during life of item • Fuel, spare parts, maintenance(x years) • * Annual costs discounted to NPV • Ownership cost during life of item • Economical useful life (x years) • * Resale of scrap value discounted to NPV

  12. Life cycle cost methods (cont.) • Efficiency cost method during its useful life • Capitalize differences in efficiency in operation of items i.e. boiler, turbine, transformer, etc. during life • Productivity cost method • Determine life cycle cost perunit of output for comparison purposes • Life cycle cost of plant (x years) NPV divided bytotal unit output of plant

  13. Life cycle cost methods (cont.) • Productivity cost method • Determine life cycle cost per unit of output for comparison purposes • Life cycle cost of plant (x years) NPV divided by total unit output of plant

  14. Post-qualification • Only for lowestevaluated responsive bidder • Criteria(update pre-qualification info) • Capacity (new work commitments) • Financial resources • Management • Critical equipment • Current litigation

  15. Bid evaluation - Report content • Identification of contract • Bidding process • Pre-qualification / advertising amendments • Bid submission/opening • Bidder identify prices/currencies

  16. Bid evaluation - Report content (cont.) • Examination and evaluation • Responsiveness /reasons for rejection • Corrections • Currency conversion /exchange rates • Deviations / treatment / calculations • Proposed contract award • Standard format

  17. Rejection of all bids • Permissible onlyon consultation with bank • Only if lowest bid exceedsestimate by substantial margin, or • If bids are not responsive, or • Lack of competition, if so • Review specifications and contract conditions before re-inviting bids

  18. Award of contract • Selected bidder should notbe required : • To reduce price • To undertake work not specified inthe bidding document,or • To modify the bid

  19. Award of contract (cont.) • The employer should : • Award the contract withinthe period of the validity of bids • To the bidder whose bid has been determined to bethe lowest evaluated bid, and • Who meets the appropriate qualifying standards

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