Tender Evaluation For Selecting A Competent Contractor

Tender evaluation for selecting a competent contractor

by

Ruwan K Jayasinghe

In order to select the lowest, qualified, responsive evaluated bid out of the bids received the tender evaluation is being done.

Tender evaluation can be divided in to two stages

1. Bid examination and determination of responsiveness

2. Detailed Bid Evaluation

Important factors to be considered in tender evaluation

Bid examination and determination of responsiveness

The bid examination and determination of responsiveness is being done in order to find the eligibility of the bidders and the responsiveness of the bids received

Eligibility of the bidders

First of all in the bids should be examine in order to ascertain the bidder are comply with the requirements of the bid conditions, therefore in this process its find out the eligibility of the bidder to go ahead with the project, here following factors are being considered

1. Past experience

2. Financial Stability

3. Personal capabilities

4. Equipment capabilities

5. Arbitration /Litigation history

Here the bidder should be show evidence of their qualification in terms of the bid documents

In order to find the eligibility of the bidder the following factors can be carefully followed

The following factors can be considered for checking capability and experience of the bidder

Experience

1. Demonstrated ability to work within the environment of the department and its clients

2. Demonstrated understanding of legislative and administrative framework in the service area of the department

3. Previous experience or demonstrated ability to meet the service needs

4. Management philosophy as it relates to staffing, personnel management and training

5. Approach to the provision of the services

6. Approach to quality management – quality assurance certification

7. Philosophy and approach towards innovation in providing and/or managing the specific services

8. Financial capacity

The following factors can be considered for checking technical, capabilities and Quality of the bidder

Technical

1. Proposal meets service specification

2. Tenderer technically capable

3. Tenderer complies with relevant regulations

4. Tenderer’s personnel adequately qualified

5. Tenderer’s facilities appropriate

Capability

1. Proposal demonstrates understanding of the outsourcing objective

2. Tenderer’s experience and reputation in the industry

3. Tenderer’s track record as contractor

Quality

1. Use of best practice in the service approach

2. Feasible innovations offered

3. Arrangement to ensure good customer service

Post qualification process

Post qualifications are being considered in order to make sure that the lowest evaluated bid has been submitted by a responsible and trustworthy bidder

Determination of substantially responsive tenders

Substantially responsive bid is means the bid one which is tally with the conditions and specifications of the bid documents

Unsigned bids

To bind legally a bid documents should have been properly signed by the contractor if not the bid can be cancelled on the ground of the bid documents are not legally binding

Absence of incorrect bid security

Bid security is a fixed sum for the security of the bids and this should be submit not less than the amount specified

Incomplete bids

Incomplete bids can be rejected here incomplete bids as an example number of items are not quoted

Lack of supporting documents

The following documents must be submitted with the bid documents

Proof of reliability of the equipment offered

The other is to provide additional details on the technical aspect of the bid

Lack of these documents it is considered as the major deviation and the bid can be rejected

Minor deviation

Minor deviation would be one which either

Has no validity on the bid

Has no affect on the price, quality or delivery of the goods or services offered

Has no specified in the bid documents as grounds for rejection of the bid

The following are such deviations

Request for an amount of advance payment and other payment terms

Non compliance with some regulations

Proposed changes in construction period which is not critical

Changes in specified method of construction or execution in non critical nature

Omissions of minor works items included in the scope of works

Detail evaluations for bids

The purpose of bid detailed evaluation is to determine the lowest evaluated bid from the substantially responsive bids received, the lowest evaluated may necessarily not be the lowest quoted bid. In order to determine the lowest evaluated bid accurately and efficiently a systematic procedure can be arrange as follow

Check of arithmetic errors correct if any and confirm with bidder

Arithmetic errors

1. Where there is a discrepancy between the amounts in figures and in words the amount in words is govern and

2. Where there is a discrepancy between the unit rate and the line item total resulting from multiplying the unit rate by the quantity

i. the unit rate quoted will govern

ii. Unless there is an obviously gross misplacement of the decimal point of the unit rate in such case the line total as quoted will govern and the unit rate will be corrected

Pricing errors

Technical errors

There may be items billed in m2 but priced in linear meter rates or vice versa, an oblivious misunderstanding of a description may be noted, so a technical check should be made to correct those errors

Unrealistic errors

If unrealistic law or high rates quoted by a tenderer is found for critical or very important items he should be requested to prove the satisfaction of the consultant how he could perform the particular items within that rate

If the clarifications given are unacceptable and tenderer would fail in performing on those rates the bid may be rejected

Unbalanced Bids

Unit rate for those work elements to be performed early during contract performance can be priced relatively high, thus requiring higher payments to the contractor in the early phase of the contract period than justified by the value of the work performed

Bidders who have reasons to believe the quantities given in the bid documents for one or more work items are underestimated will quote unduly high price for these items since payments in unit price contracts are based on actual quantities of work performed they would attempted to obtain higher payments than justified by the value of work performed

Negotiations with tenders

While evaluating a tender if there is a need for negotiation with the bidder on issues which can improve with negotiation it should be proceeded as an example if there is a huge quantity error through negotiation it can be changed

Examine the priced BOQ

Before accepting a tender a QS has to examine

1. Mathematical check

2. Technical check/pricing error or patent errors

3. Ensure that the tenders has not made such a serious mistake that he would prefer to withdraw the tender as he may at any time before acceptance

4. If the selected bidder is not the lowest bid submit the reasons to select it

Learn More aboutTendering and Estimating-http://www.helpmydegree.info/Tendering & Estimating.html

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Tender evaluation for selecting a competent contractor