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BIDDING PROCESS

1. Invitation to Bid (ITB)

An Invitation to Bid (ITB), also commonly known as an Invitation for Bid (IFB), refers
to a written or published solicitation issued by an authorized procurement officer to
provide proposals for a specific project, product, or service.
The ITB generally includes the following documents and the General Terms and
Conditions of the Contract which are inserted in the Bid Data Sheet:

 Letter of Invitation
 Instruction to bidders
 Bid Data Sheet (BDS)
 Evaluation Criteria
 Schedule of Requirements and Technical Specifications
 Returnable Bidding Forms:
 Bid Submission Form
 Joint Venture/Consortium/Association Information Form
 Qualification Form
 Format of Technical Bid
 Price Schedule

The intent of an ITB is essentially to provide the same information to all prospective
bidders, thereby allowing a true competitive bidding.

Typically, to carry out the invitation to bid process, a suitable procurement method is
adopted by the public body as per the requirements and criticality of the project.

 Choice of Procurement Method adopted by public body – ‘xx”


Most often, an Open Advertised Bidding Method is adopted by a public body wherein
the ITB is published in national newspapers with wide circulation, on the public
procurement portal, or in the case of International bidding, published in the selected
international media with wide circulation as well.

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Open Advertised Bidding may, sometimes, also be carried in two stages where:

i. It is not feasible to fully define the technical or contractual aspects of the


procurement to elicit (obtain) competitive bids; or
ii. Because of the complex nature of the goods, works, or other services to be
procured, the public body wishes to consider various technical or contractual
solutions, and to discuss with bidders the relative merits of those variants
before deciding on the final specifications and contractual conditions.

So, in the first stage:


i. The bidding document shall outline the purpose, expected performance, broad
specifications of the equipment or woks to be procured, and the qualifications
required to perform the contracts
ii. The bidding document shall also call upon bidders to submit technical bids
without a bid price and their comments on the proposed contract conditions.
iii. The public body may engage in discussions with any bidder with a view to
understand a technical bid or to indicate changes required to make it
acceptable and seek the bidder’s willingness to make such changes.

At the end of the first stage, the public body may:


i. Reject those bids which do not, and cannot be changed to meet the basic
requirements, minimum performance, required completion time or any other
weaknesses which makes the bid substantially non-responsive
ii. Modify the technical specifications, evaluation criteria, and contract conditions
in order to maximize competition and articulate appropriate evaluation
methodology in order to consider various options put forth by the bidders.

In the second stage, the public body shall invite bidders whose bids have not been
rejected to submit final bids with prices to the revised bidding documents.

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2. Submission of Bids
Following the invite to bid, prospective bidders should essentially submit their bids in
writing, duly signed and in a sealed envelope at the address specified in the bidding
document. The bidding document may also authorize other methods for the submission of
bids such as facsimile, e-mail, or by other electronic means, where it is so specified.
 Deadline for Submission of Bids
A deadline is typically set by a public body for the submission of bids and
expressions of interest so as to allow sufficient time for their preparation and
submission, with a view to maximizing competition.
A bid in a sealed envelope received after the deadline for submission is returned
unopened to the bidder.

 Withdrawal and Modification of Bids


A bidder may modify, substitute, or withdraw its bid after submission, where the
written notice of the modification, substitution or withdrawal is received by the
public body before the deadline for the submission of bids.

 Bid Validity Period


Every bid remains valid for the period of time indicated in the bidding document
which is not be more than 180 days. The validity period may be extended only
with the agreement of the “bidder” concerned for such period as may be
prescribed. A bidder who agrees to an extension of the validity period of his bid
should also furnish (provide) a corresponding extension of his bid security, if
security was required in the original bid submission.

 Disqualification of Bidders and Suppliers


A public body may also, in a bidding exercise exclude a bidder whose
performance in a previous contract has been deficient, or who has failed to deliver
goods, works, or services satisfactorily, and has caused prejudice (harm) to the
public body with regard to contractual requirements notwithstanding (despite) that
the bidder is not disqualified.

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Additionally, the public body should ensure that no disqualified supplier,
contractor or consultant is permitted to receive a procurement or otherwise
participate in the procurement proceedings.

3. Opening of Bids
The bid should essentially be opened at the time and place indicated in the bidding
document. Additionally, the time of bid opening should coincide with the deadline for the
submission of bids, or follow immediately thereafter, if this is necessary for logistic
reasons.

At the opening of the bid, the name of the bidder, the total amount of each bid, any
discount of alternative offered, and the presence or absence of any bid security is
typically read out and recorded, and a copy of the record is made available to any bidder
upon request. It is important to note that no decision pertinent to the disqualification or
rejection of a bid is taken or announced at the bid opening session.

The opening of a bid may, during the COVID-19 period and such further period, as may
be prescribed, be made through technological means, subject to such guidelines as the
Policy Office may issue.

4. Examination and Evaluation of Bids


Following the opening of bids, the board, in the case of a major contract, or, a public
body, should examine the bids in order to determine whether they are complete and in
accordance with the bidding documents, and ascertain whether –
i. They are properly signed and
ii. The documents required to establish their legal validity and the required security
have been furnished.

Every bid should essentially be evaluated according to the criteria and methodology set
out in the bidding documents and the evaluated cost of each bid should be compared with
the evaluated cost of other bids to determine the lowest evaluated bid.

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In the case bidding documents provide for a margin of preference to domestic suppliers
or to domestic small to medium enterprises, the applicable margin of preference should
be at the rate determined by the Public Office.

[A margin of preference actually refers to the extra mark up in price that is allowed to
any domestic contractors, suppliers or small to medium enterprises. The margin of
preference brought up in the procurement process by the government is essentially an
incentive to employ local labour in the execution of projects in the public sector.]

It is important to note that the board, in the case of a major contract, or a public body,
may, during the examination of bids, seek clarification from any bidder to facilitate
evaluation, however, it should neither ask nor permit the bidder to change the price of
substance of his bid.

Additionally, the board, in the case of major contracts, or, public body, can also set up a
bid evaluation committee, selected from a list of qualified evaluators maintained by it, in
order to evaluate bids.

In the exercise of its function, the bid evaluation committee should act without fear or
favour and should not be subject to the direction or control of any other person or
authority.

5. Award of Procurement Contracts


The procurement contract is essentially awarded by the public body to the bidder having
submitted the lowest evaluated substantially responsive bid, which meets the
qualification criteria specified in the bidding documents.

However, the chief executive officer of the public body, should, before awarding the
contract, certify and record that all procurement ruled have been compiled in accordance
with this Act.

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It is important to note that there are typically no negotiations between the public body
and the selected bidder or other bidders except in special circumstances, as may be
prescribed, or, where the selected procurement method includes negotiations.

A successful bidder may sometimes be asked to submit a performance security and sign a
contract within the period specified in the bidding document. However, if the bidder,
whose bid has been accepted fails to sign a contract, if required to do so, or fails to
provide any required security for the performance of the contract withing the prescribed
limit, the public body, can select another bidder from the remaining valid bids, and this
process shall apply to the new selection.

The public body should promptly publish, in such manner as may be prescribed, notice of
every procurement award.

6. Debriefing of unsuccessful bidders


A public body should promptly (immediately), on the request of an unsuccessful bidder,
inform that bidder the reasons for which its bid, or its application for prequalification,
was unsuccessful, where the request for such debriefing was submitted within 30 days of
the publishment of the procurement award.

7. Challenge and Appeal


A bidder who claims to have suffered, or likely to suffer, loss or injury due to a breach of
duty imposed on a public body or the Board by this Act may challenge the procurement
proceedings before the entry into force of the procurement contract.

The challenge should essentially be in writing to the Chief Executive Officer of the
concerned public body and should identify the specific act or omission alleged to
contravene this Act.

It is important to note that unless the challenge is resolved, the Chief Executive Officer of
the public body shall suspend the public procurement proceedings and shall, within such

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time period as may be prescribed, issue a written decision, stating his reasons, and, if the
challenge is upheld (confirmed), indicate the corrective measure to be taken.

 Independent Review Panel (IRP)


The IRP is essentially established to look into the requests made by unsatisfied
bidders to review procurement proceedings in certain specific cases.

Its objectives are primarily to uphold and maintain confidence of suppliers and
contractors, as well as the general public in the procurement proceeding process;
to ensure and enable transparency and good governance in the public procurement
process; to hear and determine appeals against procurement decisions by a public
body/Central Procurement Board in line with the PPA 2006 and regulations as
well as other Laws of Mauritius.

The IRP typically comprises of a Chairperson, a Vice Chairperson and four other
persons having a wide experience in legal, administrative, economic, financial,
engineering, scientific, or technical matters and appointed by the President of the
Republic.

 Right to (Judicial) Review


An unsatisfied bidder is entitled to ask the Review Panel to review the
procurement proceeding where:
i. The Chief Executive Officer of the public body does not issue a decision
with the specified time
ii. He is not satisfied with the decision
The application for review should essentially:
i. Be in writing
ii. Specify the precise reasons for making the application
iii. Be accompanied by a statement of case and a witness statement, if any;
and
iv. Be made within such time as may be prescribed

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It is important to note that the Review Panel may dismiss an application for
review or may, if it determines thar there is merit in it, order one or more of the
following remedies:
i. Prohibit the public body from acting or deciding in an unauthorized
manner or from following and incorrect procedure
ii. Recommend the annulment in whole or in part of any unauthorized act or
decision of the public body
iii. Recommend a re-evaluation of the bids or a review of the decision for
award, specifying the grounds for such recommendations
iv. Recommend payment of reasonable costs incurred in participating in the
bidding process where a legally binding contract has been awarded which,
in the opinion of the Review Panel, should have been awarded to the
applicant.

Cancellation of bidding Process

A public body, may, at any time prior to the acceptance of a bid, reject all bids, or cancel the
public procurement proceedings where:

i. All the bids are non-responsive


ii. The lowest evaluated bid is substantially above the applicable updated cost estimate
iii. The goods, works or services are no longer required
iv. It has been established that there has been collusion (conspiracy) among the bidders
v. In the public interest, the bidding document requires substantial modification making
it more convenient to restart a new bidding process
vi. After the closing date and submission of bids and before the opening bids, it is
determined that one or more bidders were unable to submit bids due to such
circumstances as may be prescribed
vii. Defects or gaps in the specifications have been revealed, which prevent the
consideration of substantially less expensive and functionally equivalent item other
than the one called for in the bidding document.

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Nevertheless, written notice of the rejection of all bids, or cancellation of the public
procurement proceedings, should be given to all the bidders that submitted the bids.

It is important to note that where the public procurement proceedings have been
cancelled by a public body under this section, no challenge and no application review
shall be entertained with respect to the cancellation.

Procurement under framework agreement


A framework agreement typically refers to an agreement or any other arrangement between
one or more public bodies or a lead organization and one or more suppliers, which
establishes the terms and conditions under which the supplier will enter into one or more
contracts with the public body in the period during which the agreement or agreement
applies.

A public body or lead organization may enter into a framework agreement in such manner
and in accordance with such terms and conditions as may be prescribed, where:

i. The need for the subject matter of a procurement is expected to arise on a repeated
basis during a given period of time within a public body or across public bodies
ii. By virtue of (because) of the nature of the subject matter of a procurement, the need
for it may arise on an urgent basis during a given period of time
iii. The policy Office considers that a particular procurement can best be undertaken
through a framework agreement.

Bid security
A bid security typically refers to the security instrument required to ensure that a bid will
remain valid during the period stated in the bidding document.

A public body should, where applicable and in such manner as may be prescribed, include in
the bidding document the requirement for bid security.

Generally, the forfeiture (loss of property or money because of a breach of a legal obligation)
of the bid security is imposed by the public body solely in the event of:
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i. A modification or withdrawal of a bid after the deadline for submission of bids during
its period of validity
ii. Refusal by the bidder to accept a correction of an error appearing on the face of the
bid
iii. Failure by a successful bidder to sign a procurement contract in accordance with the
terms set forth in the bidding document
iv. Failure by a successful bidder to provide security for the performance of the
procurement contract if required to do so by the bidding document.

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