METHODS OF EVALUATION OF TENDERS IN PUBLIC ENTITIES.pptx

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1. METHODS OF EVALUATION OF TENDERS IN PUBLIC ENTITIES BID EVALUATION Means an organized process of examining and comparing bids to select a best offer in an effort to acquire goods, works and services The best offer is referred to the lowest responsive evaluated bid. (MEAT) Most Economic Advantageous Tender.

2. LOWEST RESPONSIVE EVALUATED BID VERSUS LOWEST PRICED TENDER LOWEST RESPONSIVE EVALUATED BID Refers to a bid that has been examined and determined to be responsive to formal qualification requirement, evaluated in details, and found to be compliant with pre defined evaluation criteria. LOWEST PRICE BID A bid with the lowest price read out at the public bid opening event without being evaluated.

3. EVALUATION CRITERIA Are standards against which bids are evaluated. And there are three criteria that are used to evaluate bids MANDATORY CRITERIA Are used in straight forward bids evaluation methods. They usually used in evaluation for procurement of goods. These are first criteria against which bids are evaluated in order to eliminate bids that do not conform to the requirement. Pass/fail Responsive/non-responsive Comply/ non-comply

4. WEIGHTED CRITERIA Criteria which can be measured in terms of degree of responsiveness depend on procurement methods. Usually used in evaluation of services. WEIGHTED CRITERIA WITH MANDATORY ELEMENT Are criteria that have minimum requirement defined and are measured above that minimum requirement. This is the combination of the weighted and mandatory criteria

5. STAGES OF BID EVALUATION PROCESS 1. PRE QUALIFICATION STAGE Bids are examined to ensure they are from eligible companies or countries, that the bid is submitted with all requirements, such as bid security, tax and other legal and commercial requirements are met. All bids determined non responsive at this stage are not considered to the next stage.

6. 2. EVALUATION FOR COMPLIANCE WITH TECHNICAL REQUIREMENT At this stage, the panel evaluate for compliance with specified quality(Specification). They also look at issues such as the bidder’s experience, delivery schedule, compliance with quantity specified, work schedules, after sale services, warranty and other requirement in the bidding document. Bids tat do not comply wit the technical requirement are not considered for price/financial evaluation.

7. 3. PRICE/FINANCIAL EVALUATION At this stage, the panel examines the offered price for computation errors, and depending on the procurement type, takes into consideration factors such as provision sums and discount etc. where bids are priced in more tan one currency, all currencies are converted to a single currency for evaluation based on the exchange rate from a specified source as stated in the bidding documents.

8. 4. POST QUALIFICATION At this stage the verification is done to to the lowest responsive evaluated bidder to ascertain that the bidder still complies with the requirements.

9. BASES FOR SELECTING BIDDERS IN PUBLIC PROCUREMENT Selection of bidder is very crucial and should be decided at the planning stage itself so that the evaluation criteria may be appropriately mentioned. These methods are as follows: Quality Cost Based Selection (QCBS) Quality Based Selection (QBS) Least Cost Based Selection (LCS) Fixed Budget Based Selection (FBS)

10. QUALITY COST BASED SELECTION (QCBS) In this type of selection criteria, both quality and cost of the proposal are deciding factors for selection of the consultant or contractor. This method is used when the quality of deliverable is important but the cost of service or work can also not be ignored. Therefore, the weight of both the quality and cost of the proposal is fixed in the evaluation criteria and the evaluation of the proposal is done accordingly.

11. LEAST COST BASED SELECTION (LCS) This method is employed in the case when the cost is the deciding factor for awarding the contract. First the envelopes containing the technical proposals are opened and evaluated as per the evaluation criteria already mentioned in the Request for Proposal (RFP) document. The proposals qualifying as per the criteria are considered for opening the financial proposals. The technically qualified bidder who have quoted the least price is awarded the contract.

12. QUALITY BASED SELECTION (QBS) This selection method is suitable for the situations where the quality of the deliverable is paramount and no compromise on quality is admissible. As the selection is based on the quality of proposals hence only technical proposals are evaluated in this method. Financial proposals may either be submitted later on by the bidders or in case both technical and financial proposals are submitted at the same time, two envelope system is used

13. FIXED BUDGET BASED SELECTION (FBS) This is also a competitive method of shortlisting bidder which takes into account the quality of proposal as well as the cost also. In the request of proposal document, the cost of the service is specified as a fixed budget which cannot be exceeded. The highest qualified technical proposal meeting the specified budget is awarded the contract. This method is appropriate when the type of service required is simple and can be precisely defined, the budget is reasonably estimated and the budget is sufficient for the firm to perform the assignment.

14. TERMS OF REFERENCE (TOR) This is the statement which shows the scope or nature of the assignment to be done, time schedule and delivery of the assignment after its accumulation. The TOR is important for easy understanding and execution of the assignment. The procuring entity shall be responsible for preparing the terms of reference for the assignment with a view to ensuring compatibility between the scope of the services described in the terms of reference and the availability of budget.

15. THE TERMS OF REFERENCE SHALL CONTAIN A precise statement of the objectives and goals sought; A clear description of the nature and scope of the services required, their context and the time interval in which they are provided; A description of the duties and responsibilities of the consultant; A description of the duties and responsibilities of the procuring entity; Information on any counterpart staff and its role; Information on training and the transfer of technology, where necessary;

16. A summary of the data, a list of all available studies and information on the assignment, facilities and services which the procuring entity will provide to the consultant; and A clear statement of the criteria to be used in the selection procedure.