BID/PROPOSAL OPENING

AND
EVALUATION PROCESS
 SESSION OBJECTIVE
By the end of this session, the participants should be able to:
• Synchronize the process of receipt and opening of offers;
• Clarify the receipt, registration, and storage of offers;
• Understand the opening of offers and its process;
• Analyze the possible situations that may occur after offer
opening;
• Identify the pre-requisite for evaluation;
• Understand the evaluation criteria;
• Analyze the steps for evaluation of bid process;
• Synchronize the steps of evaluation of offers;
 Introduction
Bid Opening

1. What are the procedures you follow in bid opening?

2. Could you find different types of bids in one box at

a time?
 Introduction…
• The evaluation of bids in a fair and careful
manner to determine the lowest evaluated
responsive bid is
– A fundamental feature of a modern
procurement system and
– critical to the establishment of procurement
reform in the country.
 Introduction…
• After receiving and opening the bids/proposals
for goods, works and services the procuring
entity (PE) must determine the lowest evaluated
responsive bid.
• This examination is carried out by a nominated
bid evaluation committee consisting of at least
three experts in the field.
 BID OPENING

 Bid has to be opened on the specified time

and at the specified place in public ( at least
in the presence of the bidders or their
representatives). What is opening in public?
 Bid opening processes:
 Signing a bid opening attendance sheet is
important
 Signing the minute of bid opening and bid
opening register by bid opening committee is
important.

6
 BID OPENING (cont…)
 Verify whether the outer envelope bears the
project reference and is sealed as instructed.
 Check "WITHDRAWAL“ & “MODIFICATION”
submissions and attach these to the
respective bids.
 Open envelopes of "WITHDRAWAL"
submissions, read out withdrawal statement
and set aside bid envelope to be returned
unopened.
 BID OPENING (Cont…)

 Check if Original Copy and Bid Security envelopes

are submitted each in separate envelope.
The originals of the bid documents meeting all the
above criteria shall be opened and only the following
shall be read out :
 Single Stage (One Envelope)
- Names of Bidders;
- Type and amount of bid security;
- Bid Amount;
- All data filled out by the bidder in the "Form of
Bid"; and
- Letter submitted with the bid (If any).
- No bid shall be rejected at bid opening except for
late bids. Why? 8
 BID OPENING (Cont…)

 Register all read out data including bid security in

the Tender Opening Register Format.
 BID OPENING (Cont…)
Some Practical issues raised at bid opening
(for discussion)
1. Each page to be initialed and sealed ? What will
happen if not or misses one of them?
2. What will happen if there are cancellations,
corrections, ---- of unit rates and total prices on bid
documents? What should the bidder do? How
about the opening committee?
3. What shall we do if the bid security amount is less
than the required amount?
 BID OPENING (Cont…)
4. What shall we do when bidders raise questions when
the bid security of one or more of the bidders is (are)
not in the required amount and from the expected
source?
6. Is it possible to reject bids at opening?
7. etc.
BID EVALUATION
 PRELIMINARY EXAMINATION

The Tender Evaluation Committee will examine the

quotations/bids/proposals to determine whether :
 The quotations/bids are complete.
 Relevant trade license and registration certificate are
attached.
 Quotation/Bid is accompanied by a security.
 Quotations/Bids and supporting documents are all in
the language of the bid.
 Documentary evidence about the bidder's capability
is attached.
 Addresses of bidders to be contacted are indicated.
 Quoted price includes all costs and shows
breakdowns up to the purchaser's warehouse
 PRELIMINARY EXAMINATION (cont…)
 Quotation for all incidental service costs is separately
indicated.
 Literatures, and data indicating technical &
performance characteristics of the item offered are
attached.
 Delivery time is as per the schedule of requirement.
 Terms of payment are as required in the quotation or
Bid document.
 Others, as required.
 PRELIMINARY EXAMINATION (cont…)

 Major Deviation:
– Scope, Quality and Performance affected.
– Employer’s rights or Supplier’s obligations are
limited in substantial way.
– Rectification would unfairly affect ranking of
other substantially responsive Bids.
PRELIMINARY EXAMINATION (cont…)

 Deviations from critical provisions:

– Bid Security
– Applicable Law
– Taxes and Duties
– Defect Liability
– Functional Guarantees
– Patent and Indemnity
– Limitation of Liability
 PRELIMINARY EXAMINATION (cont…)

 Examples of Major Deviations:

• Stipulating Price Adjustment when Fixed Price
Bids were invited;
• Non-responsive to Technical Specifications
offering different design or Product, without
substantial equivalence (Performance
Parameters);
• Not conforming to critical dates (Start-up,
Delivery, Installation or Construction Schedule);
• Subcontracting in substantially different amount
and manner than that permitted.
 PRELIMINARY EXAMINATION (cont…)

 EXAMPLES (cont’d)
• Refusing important responsibilities and
Liabilities (Performance Guarantees, Insurance
coverage)
• Those deviations specified in the Instructions to
Bidders as requiring rejection of the Bid (For
Works Contracts, Participating in their Bids as
Sub- Contractor)
 PRELIMINARY EXAMINATION (cont…)

 Bids with deviations (are not major deviations)

• May be considered substantially responsive if
deviations can be assigned monetary value to be
added as penalty for evaluation purposes; and
• if such deviations are otherwise acceptable
 BID EVALUATION
 Objective
• Secure Goods, works and services at Most
Economical Cost
• Taking price as one Factor
• Quality for subject of procurement not affected
 Other Factors
• Time of delivery/completion
• Terms of Payment
• Terms of Guarantee
• Technical Merits, Capacity, Productivity
• Operating Cost
• Efficiency
• Resale/depreciated Value
 BID EVALUATION (cont…)
 Evaluation Criteria
– Shall be stated in Bidding Documents
– Ideally all factors quantified in
Monetary Terms
 BID EVALUATION (cont…)
 Technical Features
• Operating Cost
• Fuel
• Training
• Maintenance Cost
• Standardization
• Resale Value/depreciated Cost
• Ownership Cost
• Capacity
• Productivity
 BID EVALUATION (cont…)
Commercial Features
 Price
– Convert and adjust “Basic Price” to make Bid Prices
comparable
 Price Adjustment over Contract Period
– Ignore
 Delivery Point
– Add local Transportation
 Time of Delivery
– Evaluate Loss caused by late delivery
 Warranty
– Evaluate variation if acceptable
 Payment Terms
– Evaluate variations at specified interest/discount rate
 BID EVALUATION (cont…)
 Comparison of Bid Prices:
– NATIONAL OR FOREIGN BIDDERS (Goods
offered from within the Purchaser’s Country):
• Price Quoted EXW (Ex Works, Ex Factory, Ex
Warehouse, Ex Show Room, or Off-the Shelf)
• Including all Duties and Taxes Already paid on
– Components and raw materials, or
– Previously imported foreign Goods
 BID EVALUATION

 Immediately after the bid opening , preliminary,

technical and financial evaluation will be done
consecutively
• Clarification, if sought, should be requested in writing
only
• No change in price or substance of the bids shall be
sought
• Award should be made to the lowest evaluated
responsive bid.
When all bids to be rejected?
 BID EVALUATION (cont…)

 Rejection of all Bids

 If all Bids are not responsive, or
• Lack of competition
– If so:
• Review specifications and Contract
Conditions before re-inviting Bids
 BID EVALUATION (cont…)
 Negotiations
 Only with lowest evaluated bidder, and if not
successful, then the next lowest evaluated
bidder
– No reduction in Unit Rates
– Change in Scope, Specifications, Contract
Conditions
 BID EVALUATION (cont…)
Proposed award:
– substantially responsive
– the lowest Evaluated Bid Price
– eligible and qualified
 Selected bidder should not be required:
– To reduce price
– To undertake work not specified in bidding
document
– To modify the bid
 PUBLICATION OF AWARDS AND PRICES

The publication should as a minimum include the

following information.
 Name of supplier and/or consultant
 Description of goods/ services
 Quantity of the goods
 Total contract amount
 Date of procurement.

What is your experience on publication of Awards?

 CONTRACT SECURITY

 A supplier shall provide the procuring entity with

a contract security to make good on any default by
the supplier under the contract.
 The purchaser should release the bid security
when the supplier signs the contract and provide
the contract security.
INSPECTION AND RECEIPT OF GOODS
Inspection of Goods
The Inspection could include the following:
 Model, name and number
 Quality of the goods
 Goods are new and not used and have not been
damaged
 Conducting performance test, if required, on
selected samples
 Goods are appropriately packed and secure etc.
Thank You