Opening, Evaluation and

Contract Signing
 Public Procurement

at ion
Fo rm
Steps C
TE

PROCESS
8. Submission
9. Opening
10. Evaluation
11. Approval
12. Notification of Award
13. Contract Signing
 Act [Section- 5,47, 48-49, 59]

Opening and Evaluation

of
Tenders/Proposals

Rules [Rule- 4, 7,97, 98-99, 119-121]

 TENDER OPENING ( Step 9)
Opening of tenders:

A tender opening committee shall, immediately

after the deadline for submission of tenders and
at the place stated in the tender document, open
tenders in the presence of interested tenderers or
their authorized representatives who attend.

Section 47(1) of PPA

 Tender/Proposal Opening Committee
Formed By

THREE member Committee:

1(one) member from the TEC or PEC and 2 (two) other

members from the concerned Procuring Entity:

a) Chairperson
b) Member
c) Member-Secretary
Schedule II of Rule 7
 TOC/POC SHALL ENSURE THAT
 Tenders/Proposals prepared and submitted on the basis of
Standard Tender/Proposal documents (STDs/SRFPs)
Act [Section 5,46]

 Tenders/Proposals are Properly signed, marked and sealed

Rule - 96,118

 Tendering process observing deadline

 Acknowledgement of receipt
 A short-listed Applicant shall not participate in more than one
Proposal ( Intellectual Service)
 The curricula vitae shall be signed by the individual Consultants
and dated ( Intellectual Service)
 GOODS & WORKS: TENDER OPENING
Rule- 97 and relevant ITT Clauses

TOC (constituted under Rule-7) shall open, all Tenders received on or

before the submission deadline, in public and in only one place

 Steps to be followed in Schedule IV, D, of the PPR 2008

 Immediately after submission deadline at the primary place but no later
than ONE HOUR after expiry of the deadline (multiple dropping: three
hours)
 Late tenders, “Withdrawn” and “Substituted” Tenders shall not be
opened, but returned unopened
 GOODS & WORKS: TENDER OPENING
TOC shall ensure:

 Examination and verification of authenticity of ‘W’, ’S’, ’M’

or ‘O’, if any
 Chairperson of TOC will read aloud each Tender and record in
the TOS
 Only those Modification, Discounts read aloud at the Tender
opening will be considered in evaluation
 All pages of the original will be initialed by TOC
 No delayed opening on the plea of absence of Tenderers
 Representative shall be duly authorized

No Tender will be rejected at the Tender opening

W- Withdrawal, S-Substitution, M-Modification and O-Original
 GOODS & WORKS: TENDER OPENING
Upon completion of Opening Tender Opening Sheet(TOS) to be prepared

TOS signed by:

All TOC Members
 Attending Tenderers/Authorised Representatives
TOS issued to:
 HOPE or AO
 Members of TOC
 Authorized Consultant
 Tenderers having submitted timely; on request

Omission of a Tenderer signature to TOS does not invalidate the Tender

GOODS & WORKS: TENDER OPENING
Upon completion of Opening

Obligations:
Member Secretary (Rule - 97)
 Ensures opening procedure is followed
 Certifies that TDs are sent to PE

PE (Rule-32)
 Ensures safe custody of Tender Documents
 Hands over to EC Chairperson within maxm 2 wd

Use Forms for Opening

 Intellectual Services: PROPOSAL OPENING
Rule - 118

 POC shall open first all Technical Proposals received; shortly after
the deadline for submission and at the place specified in the PDS
 No public opening of the Technical Proposals
 Financial Proposal shall be kept closed in safe custody of HOPE
 A minutes of the PE shall convene the meeting of the POC
 Proposal opening shall be drawn by POC
 PE shall send the Proposals along with the minutes of the opening
to PEC

Use Forms for Opening

 Evaluation ( Step 10)
Actions of TEC

Evaluate by themselves;
Evaluated by 5 including external 2;
Signed by 5 including 1 external;
Meeting valid with 3 members;
Gives declaration of impartiality;
Declaration that the evaluation done according to Rules and Act.;
Shall never be delegated;
TEC can seek clarification;
Member disagree can give note of descent;
Submit the report directly to the AA.
Member shall not be changed without grounds in rules.
TENDER EVALUATION: MAIN STAGES
Goods & Works

 Preliminary Examination

 Technical Examination & Responsiveness

 Financial Evaluation & Price Comparison

 Post-qualification

Competitive tendering methods

 PRELIMINARY EXAMINATION
Purpose

 To eliminate Tenders from consideration if they

are incomplete or invalid

If no pre-qualification is performed:
 To examine and verify whether Minimum
Qualification Requirements are met
 PRELIMINARY EXAMINATION
Procedure

Step 1: Eligibility and Completeness of tender as stated in TD

Step 2: Reject the tender if any of these documents are missing:
 Tender Submission Letter
 Priced Schedule
 Written confirmation authorizing the signatory of the
Tender to commit the Tenderer
 Valid Tender Security
 Public Procurement

Completeness/Eligibility
Eligible Country( Tenderer/goods);
Shall have the capacity to sign the contract;
Government owned-legally and financially autonomous,
Enrolled as trade body;
Shall not have conflict of interest;
Shall not be under a declaration of ineligibility for corrupt, fraudulent, collusive and coercive;
Are not restrained or barred;
Shall not be insolvent, be bankrupt, be in process of bankruptcy;
Fulfilled its obligation to pay taxes and VAT;
Continued eligibility satisfactory to the PE;
Applicable for sub-contractor proposed by the tenderer.
PRELIMINARY EXAMINATION (cont.)

Step 3: Verify that Tenders are remaining valid for

the period specified in the TDS
Step 4: Verify Details of Tender Security (TS)
Step 5: Verification of Written Notice for W, S, M

Tender eliminated if not in conformity

 Public Procurement

Completeness/Qualification
Litigation History
Maximum number of arbitration awards against the tenderer over a period specified.
Experience Criteria
 Overall experience
 Specific experience
 Minimum supply or production capacity/Turn over
Financial Criteria
Satisfactory supply of similar goods of minimum value under maximum number
contracts within the period;
Available of minimum liquid assets, working capital lines of credit from bank to meet
the cash flow requirement during execution of contract.
 Public Procurement

Completeness/Format

Tender Submission Letter PG3-1

Tenderer Information Sheet PG3-2
Price Schedule PG3-3A/3B
Specifications Submission sheet PG3-4
Manufacturer’s Authorization PG3-5, if required
Tender Security provided & Signed PG3-6
 Public Procurement

Tender security

Reference
Date

Authenticity Validity

Format Amount
 Public Procurement

Elimination

Only those Tenders “surviving”

the preliminary examination
need to be examined under
Technical Examination
 Public Procurement
Technical Evaluation
Verification and examination of documentary evidence that the
Tenderer’s qualifications conform to the Tender Documents

Compliance of Technical specification

Verify Authenticity, Adequacy and Acceptability

If no Major deviation, Responsive

 Technical Evaluation

on ss o
st

s
Adequacy

ou nes
i
tive

thr sive
e

gh
jec
Re ass

Authenticity
Ob

sp

Acceptability

And Technical Compliance

 TECHNICAL Evaluation
Purposes

• Tender‘s responsiveness is to be based on the contents of the

Tender itself without recourse to extrinsic evidence
• To identify and reject Tenders that are non-compliant with the
mandatory technical requirements and therefore are not to be
considered further

Step 6: Country of Origin Declaration (Goods)

Step 7: Technical Specifications and documentary evidence

Step 8: Tenderer’s Qualifications

 TECHNICAL Evaluation
Purposes

• Evaluation on qualification criteria

• Verification of technical compliance

Step 6: Country of Origin Declaration (Goods)

Step 7: Technical Specifications and documentary evidence

Step 8: Tenderer’s Qualifications

 TECHNICAL Evaluation
Purposes

• Evaluation on qualification criteria

• Verification of technical compliance
Step 8: Tenderer’s Qualifications
 General Experience
 Specific Experience
 Tender Capacity
 Turn over/Production capacity
 Financial capacity
 Litigation history
 RESPONSIVE TENDER
Rule- 98
 Complies with mandatory requirements without material
(major) deviation, reservation
 Information not requested shall not be considered
 Non responsive Tender shall not be made responsive by
correction of material deviation

Material deviation or reservation

• Affects in any substantial way the scope, quality or performance
• Limits in any substantial way, the PE’s rights or the Tenderer’s
obligations
• Whose rectification would unfairly affect the competitive position
of other Tenderers presenting responsive tenders
 TENDER CLARIFICATION
Rule- 98 (8)

NEG NO
 TEC can seek clarification in writing OTI
A TI
ONS
!
 Any changes in the prices or substance of the Tender shall
not be sought, offered, or permitted, except to confirm
correction of arithmetical errors
 Neither the clarification nor the response shall be directed
to make an apparently non-responsive Tender responsive
 Tenderer not responding to TEC’s request shall not be
considered for evaluation
 FINANCIAL EVALUATION
Calculation of lowest evaluated cost

Step 9: Conform to requirements in Tender Document

Step 10: Check of tax, VAT etc.
Step 11: Correction of arithmetic errors
Step 12: Price modifications, discounts
Step 13: Factors affecting economic value ( If applied)
 RECAP: STEP 12
Price Modifications, Discounts
 TEC shall only consider price modifications read out at Tender
opening
 The TEC shall evaluate and compare the Tenders taking into
account:
 The Lowest evaluated responsive tender for each item(s)
or lot, as applicable.
 The unconditional discount for each package/lot in
percentage [The discount shall be applicable on all the
items of BOQ/Schedule of requirement after arithmetical
correction.
 RECAP: STEP 13
Factors affecting the Economic Value Rule- 98 (22)

 Specified in the Tender Document, and

 To the extent practicable, these factors shall be
objective and quantifiable and shall be given a relative
weighting in the evaluation method or be expressed in
monetary terms
 Domestic preference, where applicable

“Evaluation Criteria”
 RECAP: STEP 13 (Cont.)
Factors affecting the Economic Value:

• Delivery, completion schedule

• Cost of spare parts
• After-sales services
• Fuel consumption
• Performance, productivity of
equipment etc.
 PRICE COMPARISON
Final calculation of lowest evaluated cost

 Based on Step 9 – 14 sum up the final

calculated/ evaluated Tender cost per lot
 Compare and point out the Tender (winner)
with lowest evaluated cost
 Public Procurement
Scope Reduction
If lowest price significantly higher than the official estimate or available budget or
both, but is within an acceptable range of the market price levels,
TEC may recommend either to accept the Tender, subject to availability of budget
or advise the Procuring Entity to reduce the scope, subject to:
(a) the lowest Tenderer remains the lowest after the scope has been revised ;
(b) The tenderer agrees such reduction; and
(c) the objective of the Procurement will not be seriously affected through this
reduction.
 Public Procurement
Single Tender

If single Tender found responsive, it is accepted, if market

price is closed to the lowest evaluated price;

If single Tender is received and fully compliant with the

requirement, price within the estimated price, TEC may
accept the tender.
 POST- QUALIFICATION
Rule - 100

Based on the qualification criteria specified in the TD, the

TEC shall verify to its satisfaction that the successful
tenderer is qualified to perform the contract satisfactorily
by
 Contacting references
 Obtain most up-to-date information
 Visit premises, if needed
 Public Procurement ( Step-11)

Approval Process

AA decides in compliance with the provision of the Act and Rules on the Recommendation of
EC
AA considering the over all recommendation of the TEC/PEC may either:-
a. Approve the recommendation;
b. Seek any clarification from the TEC/PEC through the PE on any specific issue in connection
with the recommendation.
Or
Explaining the Reasons :
c. Reject the recommendation for a re-evaluation;
d. Reject the recommendation with instructions to reprocess.
 Notification of Award ( Step-12)

NOA Supplier
NOA before the expiry date of

Within 7 Working

From the date of

Finalized

Issuance NOA
the validity

Accepted in
PE

Writing

Days
Within 7 Working days of
receipt of the approval of the
award by AO
 Public Procurement ( Step-13)

Contract Signing

Submission of PS ( 10% for goods) within 14 days from the acceptance of NOA
PS Validity 28 days after completion ( including the date of warranty)
Date specified in NOA
Contract signing within 28 days from the issue of NOA
 Public Procurement
Contract
1. The signed Contract Agreement;
2. The Notification of Award;
3. The Tender and the appendix to Tender;
4. Particular Conditions of Contract;
5. General Conditions of Contract
6. Technical specifications;
7. General specifications;
8. Drawings;
9. Price Schedule and schedule of requirements
for Goods;
10. Other Documents including correspondence
[order of precedence]
 Grounds for Rejection

Lowest
Evaluated
Price fi c ial te
s Of tima
d
ee ; if Es ic.
x c
E ate list
i m e a l l not
t
Es is R n sh ry if a
je ctio ndato west
Re Ma d Lo
Lack of be uate s in
Professional Reasons of l
Eva Price ity wi
i th
Misconduct Rejection Evidence m e
on for t Pric
of Effective C ar ke
M
Competition
Ac
As tion
P
Ru er
127 le Even the
(4) Unable to Propose
Stipulated
All Tender Completion of the Time is
Non-Responsive Delivery/Works Reasonable
& Realistic
 Public Procurement

Re-assess
(i) Official Estimate or
(ii) Budget or
(iii) Both
Action after Rejection of All
Tenders
Consider Making Revisions
of
(i) Conditions of Contract
(ii) Design & Specifications
(iii) Scope of Contract
(iv) Or a Combination of the
Above Factors
 Public Procurement

Forfeiture of TS

Withdraws his Tender within the validity

 Does not accept arithmetic correction
 Refuses to accept a Notification of Award
 Fails to furnish performance security
 Refuses to sign the Contract
 Public Procurement

Return of TS

No TS returned by the (TOC);

Non responsive, after TER approved;
Rresponsive, after contract signing;
Winner, after submission of PS.
SHORT-LISTING PROCESS FOR INTELLECTUAL SERVICE
Rule- 115 Evaluation

PEC reviews and assesses the EOIs received to prepare a short-list

Qualification scale (not marking) of Excellent, Very Good, Good & Poor based
on:
brochures summarizing Applicants’ facilities & areas of expertise
descriptions of similar assignments
experience in similar operating environments & conditions
Appropriate experience & professional qualifications and adequate
resources managerial strength & financial capacity

PEC prepares a short-list of not <4 and>7, preferably 6

CPTU-IMED Three-Week Training on Public Procurement Manager M5-2 ES
 SHORT-LISTING PROCESS (cont.)
Rule – 115 Short-listing, if less than 4

If short-list < 4, the PEC shall review and verify:

the format of REOI If OK, then PEC
the requirements of PE can recommend for
properly advertised approval of the HOPE

For greater competition, with the direction of HOPE, the

assignment may be amended appropriately and re-advertised for
wider publicity
If after re-advertisement & re-assessment the number is still <4,the RFP
shall be issued to them

PE shall not practice this re-advertisement as a routine matter

CPTU-IMED Three-Week Training on Public Procurement Manager M5-2 ES

 SHORT-LISTING PROCESS (cont.)
Rule- 115 Approval of Short-listing & debriefing

After approval of the EOI by

the HOPE or AO, all Applicants
shall be informed whether or
not they have been short-listed

(4) not to include more than 2 firms from the same country & at least 1
firm from a developing country (International)
47/27
CPTU-IMED Three-Week Training on Public Procurement Manager M5-2 ES
 SHORT-LISTING PROCESS (cont.)

Receipt
Receiptof
of  Capacity
Advertisement Expressions
Expressionsofof  General experience
Advertisement  Specific Experience
Interest
Interest  Organization
 Geographic Distribution
 Number of Firms
Evaluation
Evaluation&&Shortlist
Shortlist

HOPE
HOPE or
or AO
AO Approval
Approval Process
must be
Issue
Transparent
Issue
Letters & Fair
Lettersof
ofInvitation
Invitation
++RFP
RFP

Use format for LOI in SRFP

CPTU-IMED Three-Week Training on Public Procurement Manager M5-2 ES
 EVALUATION OF PROPOSALS
Evaluation in two steps
 First quality & then cost
 No access to Financial Proposals until Technical Proposals
are evaluated by PEC & approved

 Evaluate Technical Proposals in accordance with criteria set

in RFP and TOR

 Point system specified in PDS shall be applied

 Evaluate Financial Proposal only if Technical Proposal is

found responsive
Example: PS7, ITC 39-45
 TECHNICAL PROPOSAL
5-General Criteria for Evaluation

 Specific experience
 Adequacy of the proposed Methodology & Work plan
 Key Staff’s Qualification and Competence
 Transfer of knowledge i.e. training, if any
 National participation (in case of International Procurement)

May be sub-criteria
RESULTS OF TECHNICAL EVALUATION
Organizing the results

 Ranking of the technical quality (score) of the acceptable and

complete technical proposals
 List proposals which have secured the minimum technical
score (meaning that they are considered “responsive”) and
consequently:
 They will be considered for Financial Evaluation
 List Applicants, who submitted responsive technical proposals
and invite to the public opening of the Financial Proposals
[upon approval by HOPE or AA (if below hope)]
 FINANCIAL PROPOSALS
Elements of Financial Proposals

 Financial proposal submission forms

 Summary of cost against staff remuneration, reimbursable
expenses and taxes
 Breakdown of cost against staff remuneration, reimbursable,
taxes/duties under the applicable law
 Taxes - Consultant is responsible for applicable taxes
on amounts payable by the Client
 COMBINED SCORE
Rule- 121 Technical & Financial Scores

The technical score weighted together with the

financial score gives the combined score and
the Consultant with the highest combined score
shall be invited for Contract Negotiations

QCBS Method
Thanks