BID EVALUATION OF WORKS PARTII May 26 2017

BID EVALUATION OF WORKS PART-II May 26, 2017

BID EVALUATION The Purpose of Bid Evaluation in team work is to select the lowest evaluated substantially responsive bidder with compliance of procurement principle 2

YOU CAN HAVE INDIVIDUAL STARS, BUT TO GET THE MOST OF YOUR PROCUREMENT TEAM, YOU NEED TO INSPIRE A TEAM MENTALITY. “TALENT WINS GAMES, BUT TEAMWORK AND INTELLIGENCE WINS CHAMPIONSHIPS. ” – MICHAEL JORDAN “TEAMWORK IS THE ABILITY TO WORK TOGETHER TOWARD A COMMON VISION. THE ABILITY TO DIRECT INDIVIDUAL ACCOMPLISHMENTS TOWARD ORGANIZATIONAL OBJECTIVES. IT IS THE FUEL THAT ALLOWS COMMON PEOPLE TO ATTAIN UNCOMMON RESULTS. ” – ANDREW CARNEGIE 3

EVALUATION OF BIDS � Process outlined covers: To be started Immediately Ø Formation of BEC ( Ref PPA 71/PPR 147) Ø Working Procedure /Code of Conduct to be framed and approved by BEC Ø Receipt and Bid opening minutes of bids opened Ø First Visit the PPMO site for identification of Black listed bidders Ø Preliminary Examination of Bids Ø Seeking clarifications from bidders Ø Financial comparison of bids Ø Detailed Examination of bids Ø Examination of Post-qualification criteria of the responsive bidders Ø Finalization of the lowest evaluated substantially responsive bidder Ø Submission of Bid Evaluation Report (BER) with Bid Award Recommendatio n Bid Evaluation Must be completed with in Bid Validity Period 4

EVALUATION OF BIDS Preliminary Examination: Purpose: To identify and reject the bids that are incomplete, invalid or substantially non-responsive to the bidding documents. Elements of PE : Ø Verification Ø Eligibility Ø Completeness of Bid Ø Substantially Responsiveness 5

EVALUATION OF BIDS Verification: ü Bid submission/Opening in stipulated Date/time ü Bid opening minutes ü Same bid as sold ü Joint Venture Agreement ü Power of Attorney ü Qualification Documents Eligibility ü Nationality ü Government Owned Entity ü Firm/Business Registration Certificate ü VAT/PAN Certificate ü Tax Clearance /Income statement/Certificate/Time Extension for Tax Clearance ü Ineligibility based on a United Nations resolution or Borrower’s country law 6

EVALUATION OF BIDS Bid Security: ü Bid Security Format consistent with sample in Bid document ü Bid Security Amount ü Bid Security Validity Period ü Bank’s legal Status ( Development/Commercial/ banned by NRB) Completeness of Bid: ü Bid form signed ü Bill of Quantities /Price Schedule filled properly and signed ü One bid submitted ü Audited Balance Sheet ü Declaration Letter for eligibility ü Conflict of Interest Substantially Responsive: ü Bid Validity Period ü Alternative bid 7

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EVALUATION OF BIDS Decision on for detailed evaluation of bids: Based on the process mentioned above decision should be made at this stage, to go for detailed examination: � Committee should be agreed on: Ø those bids which are substantially non-responsive and should not be considered further; Ø any clarification needs to be requested from bidders. � A log of all requests for clarification and responses must be kept. Requests for clarification can be sought at any time, up to the contract award decision. 9

EVALUATION OF BIDS Detail Examination: � � � Correction of arithmetic errors Do not consider Provisional Sum Do not consider VAT Modification and discounts Analysis of prices for major items (to check whether the bid is substantially balanced and to verify that the prices are not so low that the bidder would incur substantial financial losses and fails to complete work satisfactorily or reflection of misunderstanding of specifications) � � Priced deviations – time and advance etc. Domestic preference Qualifications (Financial, Equipment, Experience) Front loading and inconsistent rates (higher unit prices for earlier works, higher unit rates for underestimated work items) 10

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VERIFICATION OF QUALIFICATION CRITERIA • Average Annual Turn over in last 3 years over 5/10 years • Experience as a prime contractor in the projects of similar nature of works in last 5 years • Liquid Asset/ Credit Facility • Equipments Requirements • Manpower requirements 12

QUALIFICATION Turn Over Criteria Requirement Compliance Requirements Documents Joint Venture Submission Requirements Single Entity All Partners Each One Combined Partner not applicable must meet 25 % of requirement must meet 40 % of requirement 2. 4. 1 General Construction Experience Average annual Turn over of last best three years over last ten years. must meet requirement Form EXP - 1 13

QUALIFICATION 2. 4 Experience Criteria Requirement Compliance Requirements Documents Joint Venture Submission Requirements Single Entity All Partners Each One Combined Partner not applicable must meet requirement not applicable 2. 4. 1 General Construction Experience under construction contracts in the role of contractor, subcontractor, or management contractor for at least the last 5(five) years prior to the applications submission deadline. must meet requirement Form EXP - 1 14

Criteria Requirement Documents Joint Venture Submission Requirements Single Entity 2. 4. 2 Compliance Requirements All Partners Each One Combined Partner must meet requirement not applicable Specific Construction Experience (a) Contracts of Similar Size and Nature Participation as Prime contractor, must meet management contractor, or requirement subcontractor, in at least 2 (two) road construction contracts within the last 5 (five) years, each with a value of at least NRS [ insert amount equal to 80% of the estimated value]that have been successfully or are substantially completed and that are similar to the proposed works. The similarity shall be based on the physical size, complexity, methods, technology or other characteristics as described in Section V, Works Requirements. Form EXP - 1 Note: Only the net amount worked out after deducting the amount for VAT shall be computed and such amount shall be adjusted to the present value by applying wholesale price index of Nepal Rastra Bank. 15

Criteria Requirement Documents Joint Venture Submission Requirement s Single Entity (b) Construction Experience in Key Activities For the above or other contracts executed must meet all during the period stipulated in 2. 4. 2(a) requirements above, a minimum construction experience in the following key activities : To be selected as appropriate for the subject contract. Others to be deleted. Compliance Requirements All Partners Each One Combined Partner not applicable must meet all requirements Form EXP - 2(b) [80% of estimated contract quantity]Sqm of Otta Seal/DBST in a single contract for road to be upgraded to Otta Seal Or [80% of estimated contract quantity]Sqm. Of DBST in a single contract for road to be upgraded to DBST. Or [80% of estimated contract quantity]Sqm. Of gravelling in a single contract for road to be upgraded to gravel surface. Other may be inserted as per particular contract requirement 16

QUALIFICATION Credit Facility Criteria Requirement Documents Joint Venture Submission Requirements Single Entity Credit facility required Compliance Requirements must meet requirement All Partners Each One Combined Partner not applicable Not applicable must meet requirement Form EXP - 1 17

2. 5 Personnel The Bidder must demonstrate that it has the personnel for the key positions that meet the following requirements: No. Position Academic Qualification [When position demands] 1. Contract Manager 2. Site Engineer 3. Lab Technician B. Eng. Or equivalent Total Work Experience [Years] Experience in Similar Works [years] 5 3 5 3 The Bidder shall provide details of the proposed personnel and their experience records in the relevant Information Forms included in Section IV (Bidding Forms). 18

2. 6 Equipment The Bidder must demonstrate that it has the key equipment listed hereafter: Equipment Type and Characteristics No. 1. 2. 3. 4. 5. 6. 7. 8. 9. [Select the required for the work or specify additional requirement and delete this note ] Excavator Motor Grader Vibrating Roller (12 ton) Loader or Front Loader Backhoe Water Bowser Bitumen Distributor Chips Spreader Pneumatic Tyre Roller (PTR) (10 to 12 T) Steel Roller (8 T) Min. Number Requirement [specify the number required and delete this note] Note: The No. of the above listed equipments should be determined on the basis of the specifications and contract period. The Bidder shall provide further details of proposed items of equipment using the relevant Form in Section IV (Bidding Forms) 19

Bid Evaluation Report. doc with exercise

Award Of Contract Ø NOTICE FOR INTENTION TO AWARD OF CONTRACT ( PPA 27. 2) IN CASE OF NO COMPLAIN IN AGAINST OF AWARD , ISSUANCE OF LETTER OF ACCEPTANCE: THE CONTRACTOR SHOULD BE CALLED FOR CONTRACT AGREEMENT WITH IN 15 DAYS ; SUBJECT TO SUBMISSION OF PERFORMANCE SECURITY IN STANDARD FORMAT. (I) BP UP TO 15 % OF CE , PS = 5 % OF THE BP (II) BP LESS THAN 15 % OF CE, PS: ((0. 85 XCE-BP)X 0. 50))+ 0. 05 XBP

Contract Administration/Contract Management

CONTRACT A contract is an agreement between two parties, one called the owner/Employer and the other the contractor to perform a previously determined scope of work for a previously determined amount of money.

Contract Negotiation RATE CAN NOT BE NEGOTIATED MINOR DEVIATION CAN BE NEGOTIATED TO FULFILL DURING CONTRACT IMPLEMENTATION OTHERS AS NECESSARY

CONTRACT DOCUMENT Documents forming the Contract and their order of Priority: (GCC 2. 3) 1. Agreement 2. Letter of Acceptance 3. Contractor’s Bid 4. Special Condition Of 5. General Condition of Contract 6. Specifications (Special/Standard) 7. Drawings 8. Bill of Quantities 9. Any other document listed in SCC as part of the Contract

“The measure of a success is not whether you have a tough problem to deal with but whether it is the same problem you had last year. ” 26

THIS WAS A TASTER NOW THE MAIN COURSE