SESSION 6: SESSION 6: PR SESSION 6: SESSION 6: PR PROCEDURES OF - - PowerPoint PPT Presentation

SESSION 6: SESSION 6: PR PROCEDURES OF OPEN OCEDURES OF OPEN SESSION 6: SESSION 6: PR PROCEDURES OF OPEN OCEDURES OF OPEN COMPETITION COMPETITION

6. 6.1 1 S

By the end of the session, the Participants will be able to:

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able to: a. Describe the procedures of open competitive bidding;

• n Obj

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b. Identify the difference between the four procedures; c Know the conditions to use different

ectiv ctive

c. Know the conditions to use different procedures.

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6.2 I This session introduces to the Participants four procedures of open competitive ntrod ntrodu four procedures of open competitive bidding including Single stage – one envelope procedure, Single stage – two uction ction envelope procedure, Single stage two envelope procedure, Two stage bidding procedure and Two stage ‐ two envelope bidding procedure; and the conditions to use these procedures.

6.3 S

This method is relevant where the technical requirements have been clearly

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technical requirements have been clearly defined and the bidder only has to demonstrate compliance to those

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demonstrate compliance to those requirements.

• ne e
• ne envelop

lope proc procedure dure

a. Each bid shall comprise one single envelope containing separately envelope containing, separately, financial proposal and technical proposal. proposal. b. All bids received shall be opened and evaluated as described in section 5.7 Opening of Bids.

c. Technical Evaluation shall be carried

• ut according to the criteria
• ut according to the criteria

mentioned in the bidding documents. documents. d. The financial proposals will be then evaluated which essentially means y arithmetical corrections/adjustment. e. The bidder who has submitted the lowest financial bid shall be awarded the contract.

Question for Discussion

Why Single Stage One Envelope biddi d h ll b d f bidding procedure shall be used for most of the procurement.

6.4 S 6.4 S

Single Stage Two Envelope bidding procedure shall be used where the bids are

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procedure shall be used where the bids are to be evaluated on both technical and financial grounds and price is taken into

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financial grounds and price is taken into account after technical evaluation. This method is relevant where the

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technical requirements are clear but does carry scope for the bidders to show their

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technical strengths.

e proc procedure dure

a. The bid shall comprise a single package containing two separate package containing two separate envelopes. b Each envelope shall contain b. Each envelope shall contain separately financial and technical proposal. p p c. It shall be clearly marked on envelopes “FINANCIAL PROPOSAL” and “TECHNICAL PROPOSAL” to avoid any confusion while opening h bid the bid.

d. PC shall open only technical proposal

• n a pre decided date
• n a pre‐decided date.

e. PC shall evaluate all proposals according to the criteria mentioned according to the criteria mentioned in bidding documents. f The firms will have to obtain a f. The firms will have to obtain a minimum score (threshold) for qualifying technically.

g. The threshold shall be fixed keeping in view the nature of assignment and in view the nature of assignment and the supplier base. h The threshold usually ranges from 60 h. The threshold usually ranges from 60 % to 80 %. It must have been communicated in advance to bidders along with the evaluation criteria. i. In this procedure the bidders shall not be allowed to make amendments in the technical l d i h h i l proposal during the technical evaluation process.

j. PC shall publicly open financial proposals of the bidders who qualify proposals of the bidders who qualify technically. k All bidders who have qualified shall k. All bidders who have qualified shall be invited on the opening of financial proposals. p p l. The financial proposals shall be read aloud before those present at the time of opening of financial proposals.

m. Financial proposal of bidders who have not qualified technically shall have not qualified technically shall be returned unopened. n The financial bids shall be adjusted n. The financial bids shall be adjusted for arithmetical corrections.

• The bid found to be the lowest in
• .

The bid found to be the lowest in cost shall be accepted.

In this proced re the bidders shall not be allo ed to make amendments in the technical proposal

• In this procedure the bidders shall not be allowed to make amendments in the technical proposal

during the technical evaluation process.

Question for Discussion

What is the difference between lifi i d Si l S T prequalification and Single Stage Two Envelope bidding procedure?

6.5 6.5 T Two Stage Bidding Procedure shall be adopted in large and complex contracts Two wo s sta adopted in large and complex contracts where technically unequal proposals are likely to be encountered or where the age bi ge bid likely to be encountered or where the procuring agency is aware of its options in the market but, for a given set of dding ding performance requirements, there are two

• r more equally acceptable technical

l ti il bl t th i proce proced solutions available to the procuring agency. dure ure

• Those bidders not willing to conform their respective bids to the procuring

agency’s technical requirements may be allowed to withdraw from the bidding without forfeiture of their bid security;

First stage I h Fi h bidd h ll a. In the First stage the bidders shall first submit, according to the required specifications a technical required specifications, a technical proposal without price. b Procurement Committee will b. Procurement Committee will evaluate the technical proposal as per the criteria indicated in the bidding documents. c. PC may discuss with the bidders regarding any deficiencies and unsatisfactory technical features.

d. The bidders, whose technical proposals or bids have not been proposals or bids have not been rejected and who are willing to confirm their bids to the revised h i l i f h technical requirements of the procuring agency, shall be invited to submit a revised technical proposal submit a revised technical proposal along with the financial proposal. e. PC may revise, delete, modify or add any aspect of the technical requirements or evaluation criteria,

• r it may add new requirements or
• r it may add new requirements or

criteria not inconsistent with these rules.

f. Such modifications shall be clearly subject to PPRA Rules which state subject to PPRA Rules which state that: “Provided further that such allowance of time shall not be less allowance of time shall not be less than fifteen days in the case of national competitive bidding and thirty days in the case of international competitive bidding.” g. Bidders not interested in submitting revised proposals shall be allowed to withdraw Their bid security shall not

• withdraw. Their bid security shall not

be forfeited.

Second stage I h S d bidd h a. In the Second stage, bidders who agree to submit revised technical proposal shall be invited to submit a proposal shall be invited to submit a revised technical proposal along with the financial proposal. p p b. Technical and Financial proposals shall be opened in presence of the bidders.

c. The technical Proposal shall be evaluated as per the criteria evaluated as per the criteria. d. Financial evaluation is done to the extent of arithmetical corrections extent of arithmetical corrections

• nly.

The bid found to be the lowest evaluated bid shall be accepted bid shall be accepted

Question for Discussion

Can you name any procurement made by d t t h t t biddi your department where two stage bidding procedure was adopted and why?

6.6 6.6 Tw Tw

Two stage two envelope bidding method shall be used for procurement where

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• stag

age

shall be used for procurement where alternative technical proposals are possible, such as certain type of machinery

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possible, such as certain type of machinery

• r equipment or manufacturing plant.

nvelope lope bidding idding procedur rocedure

• In the second stage the revised technical proposal along with the original

financial proposal and supplementary financial proposal shall be opened at a date, time and venue announced in advance by the procuring agency.

a. In the First stage technical and financial proposals shall be financial proposals shall be submitted in two separate

• envelopes. Enclosed in a single
• envelopes. Enclosed in a single

sealed package. b. The technical proposal shall be p p

• pened and discussed with the

bidders with reference to specific technical requirements.

c. Procurement Committee will evaluate the technical proposal as evaluate the technical proposal as per the criteria indicated in the bidding documents. bidding documents. d. PC may discuss with the bidders regarding any deficiencies and g g y unsatisfactory technical features.

e. The bidders, whose technical proposals or bids have not been proposals or bids have not been rejected and who are willing to conform their bids to the revised h i l i f h technical requirements of the procuring agency, shall be invited to submit a revised technical proposal submit a revised technical proposal along with the financial proposal; f. PC may revise, delete, modify or add any aspect of the technical requirements or evaluation criteria,

• r it may add new requirements or
• r it may add new requirements or

criteria not inconsistent with these rules.

g. In the Second stage after agreement between the procuring agency and between the procuring agency and the bidders on the technical requirements, bidders who are requirements, bidders who are willing to conform to the revised technical specifications and whose bids have not already been rejected shall submit a revised technical l d l t proposal and supplementary financial proposal, according to the technical requirement technical requirement.

h. The revised technical proposal along with the original financial proposal with the original financial proposal and supplementary financial proposal shall be opened at a date, proposal shall be opened at a date, time and venue announced in advance by the procuring agency. i. The procuring agency shall evaluate the whole proposal in accordance with the evaluation criteria and the bid found to be the lowest evaluated bid shall be accepted bid shall be accepted. Y ill d t f t ti 7 1 7 2 You will need to refer to section 7.1, 7.2, 7.3 and 7.4 in Procurement Manual