Tender Evaluation Adil Abdalla May 2010
Prequalification Prequalification is just a Tender without a defined service or product to price for. It is meant to strategically or tactically reduce the time required for the tender processing, or enable in-depth assessment of any potential Tenderers.
The Authority Project Board Procurement Committee Tender Committee
Evaluation Team Employer Representatives Management Representatives Consultancy Representatives
Critical Players Client Representative Tender Secretary Quality Auditor
Evaluation Teams Technical Evaluation Commercial Evaluation
Mandatory Evaluation Mandatory Requirements Short listed OK Clearly Understood Sole Short Chance to Revise Submittals Submitted Evidences of Compliance Reviewed & Checked
Commercial Results Each Bid is calculated and assessed independently Add variations due to Conditions or Limits Calculate variance against baselines
Negotiations Best Bids & Bidders Award Recommendations NC Compared to Baselines Conduct Rounds Of Negotiations SOWT Analysis Define (NC) Negotiations Criteria
Evaluation Process 1 • Prior to the tender opening exercise, the Technical Evaluation Criteria and the nomination of the Evaluation Team Members shall be approved by the relevant Tender Committee. 2 The tender evaluation team shall put aside the Commercial Proposals and open the Technical Proposals. The Tender Secretary will record the tenderer’s name and write a number by hand on the front cover of Technical Proposal in sequence out of the total number of tenders received in the Tender Schedule, eg. 1/15,2/15.....15/15 (Copy of Tender Schedule attached for reference). The same number will also be written on the outside of the envelope of Commercial Proposal for each tenderer. The name and the number given for each tenderer shall be recorded in the Tender Schedule and will be kept safely by the Tender Secretary. 3 • Clarification may be issued to tenderer (if necessary) to clarify on missing or incomplete information to complete the evaluation of Mandatory Criteria. At this stage, clarification is limited to only one (1) per tenderer.
Evaluation Process 4 • Any tenderer who fails to meet the Mandatory Criteria shall be disqualified from the tender evaluation. 5 • The tender Evaluation Team members will then start to evaluate on the Mandatory Criteria such as the submission of tender bond, letter of undertaking to provide Performance Bond if awarded the contract, valid registration with local or federal Authorities 6 • For those who meet the Mandatory Criteria will be further evaluated on the technical capability such as company experience, staff strength and financial capability, among others. 7 • Clarification may be issued to tenderer (if necessary) to clarify on missing or incomplete information to complete the evaluation of technical capability. 8 • Upon completion of the evaluation on mandatory and technical criteria, the Evaluation Team members will prepare the Technical Evaluation Report and Commercial Evaluation Criteria.
Evaluation Process 9 • The relevant Tender Committee (either Management Tender Committee or Board Tender Committee) needs to endorse the report before the Evaluation Team can proceed with the Commercial Evaluation. 10 • Upon endorsement of the tender report, the Tender Secretary will then only select the Commercial Proposals of those who passed the technical evaluation criteria and endorsed by the Tender Committee. 11 • In the absence of the Evaluation Team Members, the Tender Secretary will then open the envelopes and write a new code (alphabetical or mix, e.g. JSV, YWL, Y7T) on the front cover of the Commercial Proposal document and keep the code record properly secured. (Adequate improvements to the existing processes to avoid identification reference of tenderers by the Technical Evaluation Team Members)
Evaluation Process 12 • The Tender Secretary needs to remove / delete any information which discloses the tenderer's identity from the Commercial Proposal. The first page of the Form of Tender which contains the tender price and second page which contains the tenderer’s name and signatory will be removed by the Tender Secretary. Only the first page of the Form of Tender will then be photocopied and inserted back into the Commercial Proposal with any marks on their identity removed. Appropriate instructions in the Instructions to Tenderer and Preambles to the Bills of Quantities / Tender Sum Analysis will be included to ensure that no identity of tenderer is marked on other parts of the Commercial Proposal except in the Form of Tender. Failure to comply will lead to automatic disqualification of the tenderer. (Proposed improvement to the existing process to totally eliminate any identification of tenderer to the Commercial Evaluation Team Members) 13 • The Tender Secretary needs to determine the authority of the signatory to the Form of Tender. 14 • The tender Evaluation Team then proceeds with the Commercial Evaluation.
Evaluation Process 15 • The Techno - Commercial Evaluation Report will be prepared for Tender Committee endorsement. 16 • Upon endorsement by the Tender Committee, the report has to be approved by the Approving Authority 17 • Clarification or negotiation is to be carried out by the tender Evaluation Team Member or other personnel as approved by the Tender Committee or the approving authority if necessary. 18 • Finally, Letter of Acceptance will be issued to the successful tenderer upon conclusion of negotiation and endorsed by the Tender Committee or the approving authority.