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1. :jfutd ;fj{hlgs vl/b M af]nkq;DaGwL sfuhft tof/L tyf :jf:Yf If]qsf vl/b;DaGwL dfldnfx? ;'/]z k|wfg g]kfn k|zf;lgs k|lzIf0f k|lti7fg, @)&^.^.&

2. Session Coverage • Bid, Bidder, Bidding Document, Procurement Contract • Provisions of PPA/ PPR about preparation of Bidding Document • Bidding Document: Impact, Based on, Types of Contract • Bidding Document : • Information to the Bidder (ITB) -Bid Data Sheet (BDS), Qualification and Evaluation Criteria • General Conditions of Contract (GCC) and Special Conditions of Contract (SCC): content and filling of SCC • General procurement related issues in health sector

3. Bid, Bidder, Bidding Document, Procurement Contract • “Bid” means a document setting out price, proposal or rate submitted by a bidder in the format specified by a Public Entity as per the notice published by that entity for procurement; • “Bidder” means any person, firm, organization or company that submits or may submit bid to take part in procurement proceedings; • “Bidding Document” means a document prepared by the concerned Public Entity making invitation to bid for submission by bidders by filling up or preparing price or proposal or rate in such document and this term also includes instructions to bidders, specifications, drawing, design, terms of reference, schedule of work, evaluation criteria, bill of quantities, conditions of contract and similar other documents; • “Procurement Contract” means a procurement contract entered into between a Public Entity and a supplier or construction entrepreneur or consultant or service provider

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8. af]nkq;DaGwL sfuhftsf] tof/L -;f=v=P]= !#_ • -0f_ bkmf %@ adf]lhdsf] vl/b ;Demf}tfsf zt{x? / ;f] ;Demf}tf nfu" x'g] tl/sf, • -t_ :jfy{ aflemg] -sGˆnLS6 ckm O{G6«]i6_ ePdf af]nkq pk/ sf/afxL gx'g] jf hfn;fhL jf e|i6frf/ u/]df x'g] sfg"gL sf/afxL ;DaGwL hfgsf/L, • -y_ ;fj{hlgs lgsfon] af]nkq ;DaGwL sf/afxL ubf{ u/]sf] q'l6 jf lg0f{o lj?4 k'g/fjnf]sgsf nflu af]nkqbftfn] lgj]bg lbg ;Sg] Joj:yf, • -b_ k|fljlws IfdtfnfO{ k|dfl0ft ug]{ sfuhft tyf cfly{s k|:tfj -af]n cÍ_ Pp6} vfddf k]z ug'{ kg]{ Joxf]/f, / • -w_ ;fj{hlgs vl/b cg'udg sfof{non] k"j{ of]Uotf jf af]nkq ;DaGwL sfuhftdf pNn]v ug'{ kg]{ egL lgwf{/0f u/]sf ljifox?

9. Public Procurement Monitoring Office, website:ppmo.gov.np

10. Bidding documents Purpose: • Equal Information to ALL Bidders • What is to be Procured • Technical Requirements • How to Prepare a RESPONSIVE BID • Evaluation Criteria • Form of Contract

11. Bidding documents Impact of poorly drafted documents: • Complaints from Bidders • Selection of Poorly Qualified Firm • Delays in Project Implementation • Lack of Credibility of Institutions • Claims and Disputes

12. Bid Documents Based on: • Procurement Methods : ICB, NCB, Sealed Quotation, Direct Procurement, User’s Group or Beneficiary Community • Process/Stages : Single Stage, Two Stage • Open Competition (with or without Pre-Qualification) • Type of Contract • Donor Guidelines

13. Types of Contract(Clause 22, Appendix 4 of the Regulation) • Types of Civil Works Contract : • Unit Rate Contract • Lump-sum Contract • Cost Reimbursable Contract • Time and Material Rate Contract • Design and Build Contract • Management Contract • Performance Based Maintenance Management Contract • Piecework Contract • Goods and Consultancy Procurement-Contracts

14. Standard Bid Document (Works) Invitation for Bids Part I: BIDDING PROCEDURES Section I: Instructions to Bidders Section II : Bid Data Sheet Section III: Evaluation and Qualification Criteria Section IV: Bidding Forms Section V - Eligible Countries Part II :BIDDING PROCEDURES Section VI: Works Requirements Section VI: Bill of Quantities Part III: CONDITIONS OF CONTRACT AND CONTRACT FORMS Section VIII: General Conditions of Contract Section IX: Special Conditions of Contract Section X: Contract Forms

15. Invitation For Bids (IFB) • Provides information that enables potential Bidders to decide whether to participate. • Indicates any important bid evaluation criteria: • Qualification requirement; • Prequalification/Post Qualification; • Minimum level of experience required • Domestic preference; • Invitation for Bids is not a part of the Bidding Document and therefore it shall not be included in the Bidding Document.

16. Invitation for Bid • Publication of Procurement Notice • Place and Period in Which the Bidding Documents are Made Available • Date of Closing and Extensions, if any • Pre-bid Conference • Place of Submission of Bids • Date and Time of Public Bid Opening

17. Instruction to Bidders (ITB) • For bidders to prepare Responsivebid, • On composition of bidding documents and preparation of bids, • On bid submission, opening, evaluation, and award of contract, • Contents in ITB are to be changed as per project requirement • ITB will not be a part of contract,

18. Bid Data Sheet (BDS) This section consists of provisions that are specific to each procurement and supplements the information or requirements included in Instructions to Bidders (ITB)

19. Bid Data Sheet (BDS) • Bidding Data must refer to Instructions to Bidders (ITB) Clauses, • Bidding data is used to specify the ITB clauses by inserting specific data (name, days, amount etc.) and required changes, • Bidding data replaces the ITB clauses, if changed, • Bidding data to be filled out by the Employer before issuance of the Bidding documents.

20. Instruction to Bidders (ITB)

21. Instruction to Bidders (ITB)

22. Section I: Instructions to Bidders

23. Section I: Instructions to Bidders

24. Section II: Bid Data Sheet

26. C. Preparation of Bids

27. D. Submission and Opening of Bids

28. E. Evaluation and Comparison of Bids

29. Section III: Evaluation and Qualification Criteria • This Section contains all the criteria that the Employer shall use to evaluate bids and qualify Bidders • by post-qualification exercise. GoN/DP requires bidders to be qualified by meeting predefined, p • recise minimum requirements. The method sets pass-fail criteria, which, if not met by the bidder, results in disqualification. • In accordance with ITB 32 and ITB 35, no other methods, criteria and factors shall be used. The Bidder shall provide all the information requested in the forms included in Section IV (Bidding Forms). • 1. Evaluation • In addition to the criteria listed in ITB 35.2 (a) - (e) the following criteria shall apply: • Note: • Use the evaluation criteria listed below as appropriate and required for the project. • 1.1 Adequacy of Technical Proposal • the requirements stipulated in Section VI (Works Requirements). • 1.2 Multiple Contracts • Multiple Contracts, if permitted under ITB 35.4, will be evaluated as follows: • Award Criteria for Multiple Contracts [ITB 35.4: • Bidders have the option to Bid for any one or more Contracts. • Qualification Criteria for Multiple Contracts: • The criteria for qualification shall be the sum of the minimum requirements for respective individual contracts • Contract 1: N1 contracts, each of minimum value V1; • Contract 2: N2 contracts, each of minimum value V2; • Contract 3: N3 contracts, each of minimum value V3; • ----etc. • and • Total number of contracts is equal or less than N1 + N2 + N3 +--but the total value of all such contracts is • equal or more than N1 x V1 + N2 x V2 + N3 x V3 +---. • 1.3In Case, other than Multiple Contracts • Bidders have the option to Bid for any one or more Contracts. • 1.4 Completion Time • An alternative Completion Time, if permitted under ITB 13.2, will be evaluated as follows: • [insert project specific requirements] • 1.5 Alternative Technical Solutions • Alternative technical solutions, if permitted under ITB 13.4, will be evaluated as follows: • [insert project specific requirements] • 1.6 Quantifiable Nonconformities and Omissions • Subject to ITB 14.2 and ITB 35.2, the evaluated cost of quantifiable nonconformities including omissions, is determined as follows: • [Insert in bidding document:“Pursuant to ITB 31.3, the cost of all quantifiable nonmaterial nonconformities shall be evaluated, • but excluding omission of prices in the BoQ.The Employer will make its own assessment of the cost of any nonmaterial nonconformities • and omissions for the purpose of ensuring fair comparison of bids.”]

30. Bid Security Bank Guarantee Bank’s Name, and Address of Issuing Branch or Office (On Letter head of the Commercial bank or any Financial Institution eligible to issue Bank Guarantee as per prevailing Law) Beneficiary: .............................. name and address of Employer……………………………… Date: ……………………………………………Bid Security No.: .............................................. We have been informed that. …………. [insert name of the Bidder] (hereinafter called “the Bidder”)intends to submit its bid (hereinafter called “the Bid”) to you for the execution of …………...name of Contract . …………… under Invitation for Bids No. ……………… (“the IFB”). Furthermore, we understand that, according to your conditions, bids must be supported by a bid guarantee. At the request of the Bidder, we…………………. . name of Bank……………….. hereby irrevocably undertake to pay you any sum or sums not exceeding in total an amount of . . ………...amount in figures………………………. (. …………..amount in words ……………….) upon receipt by us of your first demand in writing accompanied by a written statement stating that the Bidder is in breach of its obligation(s) under the bid conditions, because the Bidder: (a) has withdrawn or modifies its Bid: i) during the period of bid validity specified by the Bidder on the Letter of Technical and PriceBid, in case of electronic submission (ii) from the period twenty-four hours prior to bid submission deadline up to the period of bid validity specified by the Bidder on the Letter of Technical Bid and Price Bid, in case of hard copy submission; or (b) does not accept the correction of errors in accordance with the Instructions to Bidders (hereinafter “the ITB”); or (c) changes the prices or substance of the bid while providing information pursuant to clause 27.1 of ITB; or (d) having been notified of the acceptance of its Bid by the Employer during the period of bid validity, (i) fails or refuses to execute the Contract Agreement, or (ii) fails or refuses to furnish the performance security, in accordance with the ITB. (e) is involved in fraud and corruption in accordance with the ITB This guarantee will remain in force up to and including the date ………number…………days after the deadline for submission of Bids as such deadline is stated in the instructions to Bidders or as it may be extended by the Employer, notice of which extension(s) to the Bank is hereby waived. Any demand in respect of this guarantee should reach the Bank not letter than the above date. This Bank guarantee shall not be withdrawn or released merely upon return of the original guarantee by the Bidder unless notified by you for the release of the guarantee. This guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No. 758. . . .Bank’s seal and authorized signature(s) . . . Note: The bid security of ………..……………. has been counter guaranteed by the Bank ……..………..…… on …………... ...……..………. (Applicable for Bid Security of Foreign Banks).

31. Evaluation and Qualification • Qualification • Eligibility • Nationality • Conflict of Interest • Government/DP Eligibility • Government owned Entity • UN Eligibility • Other Eligibility • Firm Registration Certificate • Business Registration Certificate • VAT and PAN Registration Certificate • Tax Clearance Certificate/Tax return submission

32. Evaluation and Qualification • Pending Litigation • Financial Situation • Historical Financial Performance • Average Annual Construction Turnover • Financial Resources • Experience • General Construction Experience • Specific Construction Experience • Contract of Similar Size and Nature • Construction Experience in Key Activities • Personnel • Equipment • Subcontractors

33. Exercise • A Work is to be completed within a period of 12 months. • The Estimated Cost of the Work is NRs. 12 million. • Prepare Evaluation & Qualification Criteria and SCC

34. Evaluation and Qualification: Pending Litigation 50 Range is 50 to 100%

35. Evaluation and Qualification: Financial Situation 3 Range is 3 to 5 Years

36. Evaluation and Qualification: Financial Situation 25% 40% 18 million Normally 1.5 times V/T, where V is Estimated Cost and T is Contract Duration in Years.

37. Evaluation and Qualification: Financial Situation 40% 25% Not to Exceed Cash Flow requirement for six month based on Straight Line Projection. Range is generally 4 to 6 month. 4 million

38. Evaluation and Qualification: Experience 5 Time Period is normally 5 Years or more, BUT may be reduced to 3 Years, according to nature of the works.

39. Evaluation and Qualification: Experience 1 9.6 million Range is 1 to 2 Contracts Usually 80% of the Estimated value of the Contract

40. Evaluation and Qualification: Experience ??? ????

41. Evaluation and Qualification: Personnel

42. Evaluation and Qualification: Equipment

43. Bidding Forms Forms provided by the Employer that the Bidder must complete and include in its Bid Standard Bidding Forms are: • Letter of Bid (Technical/Price) • Bid Security / Bid-Securing Declaration • Technical Proposal Format • Personnel/Equipment Forms • Bidder’s Qualification Forms

44. Bidding Forms Letter of Bid (Technical/Price) Constitutes formal confirmation by bidder to execute and complete the works specified Bid Security: Form of unconditional bank guarantee Purpose: To ensure that validity of bid will be maintained until contract is awarded or until expiration of bid validity, and until performance guarantee is furnished Technical Proposal PER – 1, PER – 2, Equipment, Site Organization, Method Statement, Mobilization Schedule, Construction Schedule Bidder’s Qualification Forms ELI – 1, ELI – 2, LIT – 1, FIN – 1, FIN – 2, FIN – 3, FIN – 4, EXP – 1, EXP – 2(a), EXP – 2(b).

45. Preparation of Specs. and BOQ • Precise and clear Technical Specification • Permit widest possible competition • Clear statement of the required standards of materials, Plant, other supplies, and workmanship • Specifications not to be restrictive • Required quantity with cross reference to specification

46. General Conditions of Contract (GCC) This Section of the Bidding Documents should provide: • Information on Matters governing the performance of the Contractor • Payments under the Contract • Matters affecting the risks, rights, and obligations of the parties If duplication of a subject is inevitable in the different sections of the documents, care must be exercised to avoid contradictions between clauses dealing with the same matter.

47. General Conditions of Contract (GCC) • To be read in conjunction with the Special Conditions of Contract and other documents as listed in Bidding document, • Should fairly express the Rights & Obligations of both parties, • To be written in Simple language and Standard clauses with no change, • Standard CoC can be different for Large, Medium, Small, admeasurement, lump sum and design and build contracts • GCC cannot be Changed /modified- Modification shall be made in SCC, If new clauses is necessary then such clauses need to be added in SCC and the information to this regard need to mention in GCC to that extent

48. Special Conditions of Contract (SCC) • Special Conditions of Contract provides contract specific information in relation to Clauses in CoC, • If provisions in CoC are not relevant to the Contract, those should be marked “NA” (Not applicable). • If provisions in CoC are not sufficient to describe the contract specific information, those clauses may be modified or some new provisions may be added, as needed. • Special Conditions of Contract to be filled by the Employer before issuance of Bidding documents

49. Special Conditions of Contract 12 months

50. Special Conditions of Contract may 110 % of the Contract Amount NRs. 100,000.00 NRs. 1,000,000.00 NRs. 50,000.00