Technical Bid Evaluation Criteria and Vendor Offer

Review (with PDF)

whatispiping.com/technical-bid-evaluation/

Partha Pratim Panja July 19, 2019

What is Technical Bid Evaluation(TBE)?

Technical Bid Evaluation or TBE is the organized evaluation and examination
process of the vendor’s technical bid documents or proposals from the technical
requirement point of view. For all items, a Material Requisition (MR) document is
prepared and sent to several vendors stating the requirements for any item on a specific
project. Based on availability and experience different Vendors provide their bids or offers.
All these offers need to be reviewed before selecting the final vendor. So, Technical Bid
Evaluation(TBE) or Vendor Offer Review is an important step before final procurement.
This article will provide a sample guide on the general activities to be carried out during
Vendor offer review, TBE (Technical Bid Evaluation) & Vendor drawing Review:

The Technical Bid Evaluation basically assesses the technical capability

along with the quality, compliance with codes, standards & specifications,
experience, operating cost, and performance penalties to meet the project-
specific requirement as well as execution capability.

Guide for Vendor Offer Review

The following points to be checked during the Vendor Offer Review of any item.

Offer to be reviewed with respect to Material Requisition.

The vendor should be listed in the list of Approved Vendors by the Client.
The manufacturer location shall be as per the Approved Vendor List.
Scope & Interface clarity to be checked.
Vendor to stamp and comply with MR (Material Requisition), Specification & Table
of compliance
Technical queries preparation.
Check whether the vendor is taking any Deviation with respect to MR.
Ensure that the Vendor shall comply with all in-house Specifications, Guidelines,
Procedures, Work Instructions, and International Code & Standard requirements.
Design Change to be covered as part of TQ (Technical Queries).
Response to Vendor TQ clarification.
Vendor Clarification Meeting, if required.
Close all Technical Queries (TQs) & clarifications.

Guide for Technical Bid Evaluation

While performing technical bid evaluation (TBE), the following points to be considered.

1/12
 Compile all vendor offers into one document (excel sheet of some other document).
List down all the requirements of MR& Specifications.
Attach all the Technical Queries, Justification letters, Deviation & Clarification lists.
All vendor deviations to be approved by the Client.
Delivery time to be mentioned.
Technical Acceptance or Rejection against each vendor to be mentioned.
Issue TBE for Client Comments & Approval
TBE (Approved for Purchase) to be issued to procurement for Commercial
Acceptance.
After finalization of Vendor, Purchase Specification to be issued to a particular
vendor

Guide for Vendor Drawing Review

The following points to be kept in mind while Reviewing the vendor drawings

Vendor drawing to be reviewed with respect to Purchase Specifications.

Any design change at this stage will be an additional activity to the Vendor which
may incur an additional cost.
Drawings to be reviewed based on technical requirements and to be commented on
accordingly.
Normally each organization has its own checklists for vendor drawing review and
those to be followed with close attention to avoid any major mistake.

Various Types of Equipment for Review

Types of Equipment, Packages & Piping Components that are

normally reviewed

2/12
Static Equipment for Technical Bid Evaluation
Important static equipment for technical bid evaluation is

Storage Tanks
Heat Exchanger / Air Cooler
Knock-out drum
Vessels
Columns
Heaters
Reactors
Filters

Rotating Equipment for TBE

Technical bid evaluation is performed in the following rotary equipment in a process plant

Gas turbines.
Steam turbines.
Centrifugal Pumps.
Positive displacement pumps.
Centrifugal Compressors.
Fans & Blowers

Packages for Technical Bid Evaluation

Important package items used in the oil & gas industry for the technical bid evaluation
process are

Compressor package
Flare package
WTP package
Separator package
Chemical Injection Skids
FMS

Mechanical (Static & Rotating) discipline will be the Lead for Vendor offer review,
Technical Bid Evaluation & Vendor drawing review for Static / Rotating Equipments
& Packages.

Piping will provide inputs to mechanical.

Technical Bid Evaluation for Piping Components

Main piping items used for technical bid evaluation are

Pipe, fittings, flanges, gaskets & bolts/nuts

Valves (Gate, Globe, Ball, Butterfly, Check, Needle, Relief valve, etc,.)
Strainers (Bucket, Tee, Y-type strainer, etc.,)

3/12
 Steam / Drain Traps
Couplings
Other Special Items

Piping will be the Lead for Vendor offer review, Technical Bid Evaluation & Vendor
drawing review for Manual valves, Relief valve, Piping special Items.

Technical Bid Evaluation for Valves

The following steps are followed for the TBE of valves.

Vendor to comply with MR, mandatory requirements.

TQ preparation
Review of TQ response from Vendor.
TQ-2, if any.
Review of vendor deviation, if any.
The vendor should comply & stamp on the table of Compliance.
Pressure Testing requirements to be checked.
Painting requirements to be marked with respect to line design parameters.
For the Full Bore valve requirement, Valve ID to be check.
Fire Safe Design requirements to be checked for soft seated valves.

Sample format for Technical Bid Evaluation, Vendor offer Review

Piping Inputs to Vendor Packages for Technical Bid Evaluation

While performing the technical bid evaluation the following inputs are provided from the
piping.

Vendor to perform the engineering of interconnecting piping between all internal

skids of Package.
Vendor shall perform the stress analysis/ calculation, and other required
engineering for interconnecting piping between all skids of Package (for example
GRC Package-LR Compressor, Air Cooler, Sealing, Drums, etc)

4/12
 The vendor shall provide maximum allowable forces and moments at the interface
flanges.
Vendor to provide Piping layout drawings, Isometrics drawings for all
Interconnecting piping between all skids of Package.
Vendor shall comply with the Client/ In-house Piping Specification & Shell Standard
Piping Class
Vendor to provide Proper access / Platforms / Ladder for Maintenance and
Operation of the GRC Package.
Vendor to comply with all client requirements.
Vendor to comply with the client Specifications, Guidelines, Procedures, Internal
Codes & Standards, requirements as stated in MR.
Location & Available Area for the Packages

Piping Inputs to Static Equipment for Technical Bid Evaluation

TBE of Storage Tanks

Nozzle Orientation, Staircase Orientation & Elevations.
Allowable Nozzle forces & moments on the tanks’ shell nozzles shall be calculated
as per API 650 annex. P
Allowable nozzle load on any process nozzles on the roof shall be analyzed using
the FEA method
Pipe Support Cleat Orientation & elevations.
Piping loads at supports taken from Tank Shell / Roof.
Platform Access requirements for Rooftop Nozzles
Underside elevation of the tank.
Tank & piping Interface details

TBE of Heat Exchanger / Air Cooler / Vessels

Nozzle forces & moments
Piping Interface details
Sliding support requirements in case of Tube heat exchanger
Nozzle location & elevations.
Vendor to comply with the Nozzle Minimum forces & moments as per DEP
31.22.00.31-Gen Unfired Pressure Vessels
Pipe Support Cleat Orientation & elevations.
Piping loads at supports taken from Equipment Shell / Roof.
Platform Access requirements for top Nozzles

Piping Inputs to Rotating Equipments

Technical Bid Evaluation for Centrifugal Pumps

The following guideline should be satisfied during technical bid evaluation for centrifugal
pump selection:

5/12
The offered model should be proven and should be have been operating satisfactorily for
a minimum of 1 year in at least one installation.

The pump should not be selected in case the difference between NPSHA is less than 0.5
meters. NPSH testing must be asked whether the liquid is at/or near its boiling point, the
liquid is gas saturated, or wherever NPSHA is less than 3 m.

Pump performance must be corrected for viscous fluids; performance correction factor
given by vendor should be checked with respect to hydraulic institute standard. An
equivalent parameter for water must be mentioned on the datasheet.

In case a low-speed pump is required, a higher-speed pump should not be accepted

unless substantiated with plausible technical reasons and operating experience for a
similar application.

The pumps required for parallel should have a minimum of 10-20% higher shut-off head
than the operating head.

Pump with flat and drooping characteristics towards shut-off should not be selected for
parallel operation.

In the case of a single pump operation, the pump minimum flow shall be greater than the
flow corresponding to the differential head coinciding with the shut-off head in the
drooping characteristics.

In the case of any indigenous pump vendors offering the pump with an inducer, his
experience, and technical back-up should be checked.

Double volute pumps will be preferred for high capacity pumps (more than 250 m3/hr) and
specifically for applications where continuous part-load operation is envisaged.

Impeller type should conform to that specified in the datasheet, generally open impellers
will be preferred for liquid with suspended solids.

Non-standard flanges i,e 1-1/4’’, 2-1/2’’,5’’,7’’, and 9’’ should be provided with companion
flanges by the vendor with nuts, bolts, and gaskets.

In the case of large water pumps, suction-specific speed should be calculated at the BEP
of the maximum diameter of the impeller. Generally, this should be below 12,000 (US
units). Pumps with suction-specific speeds above 12,000 with inducers are only
acceptable.

Sundyne pumps with higher specific speeds are acceptable. The vendor should be asked
for a reference list for higher specific suction speed pumps. In case the vendor has
provided pumps with satisfactory results even with suction specific speed >12000, pumps
should be accepted with at least 20% minimum continuous flow of BEP flow.

6/12
 Flushing piping generally is in SS
and in the vendor’s scope of
supply. Flushing piping of size
less than ½’’ shall not be
accepted. Piping with a screwed
and threaded connection is not
accepted. All the flushing plan
piping shall be welded and
flanged and terminated with ANSI
flanges.

Spring, hardware, and secondary

elastomeric of the mechanical
seal should be compatible with
liquid handled.

In the case of Plan 32 dilution of

pumped liquid with flushing, the
liquid will take place. The rate of
dilution should be obtained from
the vendor and should be
exceeding the limit specified flow
if any.

Cooling/heating fluid quantities

must be obtained from vendors.
In the case of jacketed pumps where casing, bearings housing, and/or stuffing boxes are
required to be jacketed, it should be checked whether the vendor has supplied a pump of
similar capacity in jacked construction.

Jacket design/test pressure should be specified in the inquiry.

Material of Construction:

In the case of pumps with special metallurgy, it must be confirmed from the vendor if
he has supplied an equivalent model in similar metallurgy.
Any deviation in the material of construction should be brought to notice for
acceptance or rejection.
Hardness difference of 50 BHN should be maintained between wear rings. In the
case of Austenitic steels, hard-faced wear rings should be asked for.

Heavy-duty base plates wherever absolutely necessary should be taken for pumps
conforming to API 610 requirements.

Wherever pumps are expected to start on open discharge valve, motor KW selection shall
be as per end of curve KW required. Also, GD2 value starting torque and speed-torque
characteristics of the pumps should be asked for all motors rating of pumps starting to
open discharge.

7/12
Inspection and testing, documentation requirements should be checked according to
project specification.

The technical recommendations should be clear and without any open points. Reasons
for acceptability/non-acceptability should be clearly indicated.

In the case of vertical pumps, the vertical pumps the installation length of pumps to be
asked.

Design and engineering for Interconnecting piping between Fluid Coupling, Flushing Plan,
Seal Plan, and Cooler.

Piping Interface flange connections shall be as per ASME B16.5. Confirm nozzle
allowable loads shall be 2 times the loads as indicated in Table 5 “External nozzle forces
and moments” of API 610.

Technical Bid Evaluation for Metering Pump

These pumps are generally used as dosing pumps. The following major points should be
checked while evaluating the offer and making a technical recommendation:

The offer should be not be accepted if the model offered is not developed by the vendor
and it is not in operation in at least one installation.

The pumps type i.e. plunger or diaphragm (single, double, sandwich) should be checked
as per technical specification. For diaphragm pumps, the vendor should include a
diaphragm failure detection device in his scope for double diaphragm pumps.

For very low flow applications (<10 lph), electronic type diaphragm pumps are acceptable.
In such cases, motor to be included in vendor scope.

The turndown ratio should be checked. Generally, below 10% rundown, the dosing
accuracy of pumps will not be as per API specified limits.

Plunger/piston details such as plunger diameter, stroke length, and strokes per minute
should be checked. It should be ensured that the rated capacity furnished by the vendor
is correct and matches the quoted volumetric efficiency.

For packed plunger pumps, it is recommended to have strokes per minute less than 100,
from a wear and tear point of view. Also, the plunger shall be hardened and the average
linear speed at the maximum capacity shall not exceed 1.4 m/s.

Variable-capacity adjustment method shall be checked as per technical specification. If a

remote operation is required, the details of the servomotor pneumatic positioned and the
operating scheme shall be furnished by the vendor. Instruments groups should be
consulted for these schemes.

Specific requirements such as cooling, heating shall be checked as per specification.

8/12
NPSHA is to be specified in the pump inquiry specification without considering the
acceleration head (based on suction line size and length). NPSHR quoted by a vendor
should include acceleration head and same is to be checked from relevant data available
in the offer.

Gear and gearbox details should be checked. The gearbox service factor must be at least
1.5 for continuous operation. The manufacturer should be furnished the maximum power
rating for the gear. Gears shall be reputed make. The gear ratio should be checked with
respect to motor speed.

In the case of a diaphragm pump, the compatibility of diaphragm material shall be

checked for suitability of process fluid.

Sandwich-type diaphragm-type pumps, if specified are to be checked for vendor’s

reference.

Process side safety valve shall be externally mounted and shall have flanged connections
(applies mainly for plunger type).

Externally mounted safety valves should be supplied from approved vendors only.

Technical Bid Evaluation for Centrifugal Compressor

Check deviations furnished by vendors (from specified standards) if the deviations are
acceptable or not.

Performance curve should be available and should include the following information:

Capacity at surge limit

Capacity at the choke point
Power versus capacity pressure versus curves.

Check that offered model is a developed model and has been working for a minimum of
two years.

Check that the compressor manufacturer has guaranteed pressure at the battery limit
specified in the specifications

Generally, the surge limit should be below 75% of the specified rated capacity, and the
choke point must not be near the operating point. Also, check the surge limit at the
minimum supply frequency of the electric motor.

Check the tip speed and Mach number for all the stages. It is preferred to have lower
Mach nos. as it gives better efficiency.

Ensure that critical speeds furnished by vendors are a minimum of 30% away from the
operating speed. In the case of turbine drive, any critical speed should not be close to the
speed trip value of the turbine.

9/12
Bearings should be tilting pads. Hydrodynamic thrust bearings should be suitable for
thrust in both directions.

Gear’s and couplings should be spacer type. Couplings and gears should be suitable for
higher speed (due to an increase in frequency in case of electrical motor drive and up to
trip speed for turbine drive) as required in the specification (Minimum service factor 1.4
for motors drive and 1.6 for turbine drives).

The oil system should conform to API 614 requirements, if not specified. It is generally
preferred to have the same capacity as Main oil/Aux.oil/Emergency oil pumps. Oil piping
downstream of filters should be SS. Oil pumps should preferably be positive displacement
screw pumps.

The cooler should be a removable bundle; water through tube design, conforming to
ASTM Sec VIII, TEMA ‘C’ and with auto drain traps (for air coolers). Coolers tubes should
be a minimum of 19″ OD, 18BWG; waterside fouling factor should be as per design basis
with water velocity which should be 1.5-1.8 m/s

Heat loads and surface area available for Heat Exchangers should be obtained from
vendors. The coolers should be provided with 10% excess area. The quantity of cooling
water required should be checked from heat loads given by vendors.

All major rotating parts should be dynamically balanced. Balancing speed and procedure
should be obtained from vendors for records and review.

Guaranteed vibrations should be within limits as per API standards.

The entire single-stage compressor should be preferably provided with inlet guide vanes.
IGV is effective only at part load operations. The effect of IGV on multistage compressors
is very small, hence, to compare power consumption at part loads, capacity vs. power
curves should be obtained for compressors with and without guide vanes. The selection
of guide vanes for multistage compressors should be based on techno-commercial
considerations.

For all process compressors where leakage of a medium cannot be allowed to lead into
the atmosphere, positive sealing should be provided by the vendor.

Controls and protection provided by the vendors must be as per requirements specified in
datasheets.

During deciding on motor rating following points should be considered,

Highest supply frequency to the electric motor. Ask the vendor to furnish the performance
curve at the highest supply frequency.

Power consumption at the lowest inlet temperature.

Power consumption at worst gas compression (in case of varying composition of gas
constituents).

10/12
Technical Bid Evaluation for Flare System
A flare system package normally comprises of flare stack with flare tip and molecular
seal, water seal drum, and knock-out drum. The following point needs to be checked for
preparing a technical recommendation.

Plants may have a normal (corresponding to continuous venting) and a peak load
(corresponding to emergency venting) for flares. These may be with wide variations as
regards to the capacity. In such cases possibility of using different flare tips for these two
loads should be considered also.

Calculations should be obtained from the vendor for the height of the stack. Along with
heat radiation, the ground-level concentration of toxic gaseous effluents needs to be
considered for this calculation. These calculations should be checked against both Vol. I
Ch 13/API RP-521.

Between the flare tips and the molecular seal, there are 2-3 temperature zones. The
design temperatures of the material and therefore the material changes accordingly. The
length of zones should be obtained from the vendor.

It should be checked no refractory material is used for the flare tip.

If the vendor is supplying material for the flare tip that is different from the one specified,
the design temperature for the material should be obtained from the vendor and
compared with the required value.

Molecular seal or velocity seal designs should be checked carefully.

It is recommended to include the supporting structure in the vendor scope.

The ignition panel should be forced draft type (using plant air) with electric spark ignition.
The natural draft should not be accepted. The air/Fuel ratio for a pilot burner for alternate
fuels should be asked from the vendor.

Smokeless capacity is normally specified for the greater of the following loads:

Normal load
10% of maximum load.

However, check project-specific also.

Water seal height should be checked for minimum back pressure in the flare header to
avoid the seal from breaking (API RP-521).

If the knock-out drum is in the vendor’s scope, sizing details of the knock-out drum should
be obtained from the vendor. The basis of sizing should be normally be specified in the
inquiry. 5-10% consideration in the flare header can be assumed as a basis.

11/12
Pressure drop in flare is important for a low-pressure system like atmosphere storage
tanks. This should be obtained from the vendor.

Few more resources for you…

Piping Design and Layout
Piping Stress Analysis
Piping Materials
Piping Interface

Further Studies for Technical Bid Evaluation Criteria

https://www.oas.org/juridico/PDFs/mesicic4_guy_ev09.pdf

12/12