SESSION 6: SESSION 6: PR SESSION 6: SESSION 6: PR PROCEDURES OF OPEN PROCEDURES OF OPEN OCEDURES OF OPEN OCEDURES OF OPEN COMPETITION COMPETITION
6. 6.1 By the end of the session, the Participants will be 1 S able to: able to: Sessi essio a. Describe the procedures of open competitive bidding; on Obj b. Identify the difference between the n Obje four procedures; c c. Know the conditions to use Know the conditions to use different different ectiv ctive procedures. es
6.2 I This session introduces to the Participants four procedures of open competitive four procedures of open competitive ntrod ntrodu bidding including Single stage – one envelope procedure, Single stage – two envelope procedure, Single stage two uction ction 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 technical requirements have been clearly ingle ingle s defined and the bidder only has to demonstrate compliance to those demonstrate compliance to those sta tage – requirements. one e one 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 out according to the criteria out 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 bidding procedure shall be used for d h ll b d f most of the procurement.
6.4 S 6.4 S Single Stage Two Envelope bidding procedure shall be used where the bids are procedure shall be used where the bids are ingle ingle s to be evaluated on both technical and financial grounds and price is taken into financial grounds and price is taken into sta tage – account after technical evaluation. This method is relevant where the Tw Two e technical requirements are clear but does carry scope for the bidders to show their en nvelop technical strengths. lope e proc procedure dure
a. The bid shall comprise a single package containing two separate package containing two separate envelopes. b b. Each envelope shall contain 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 the bid. h bid
d. PC shall open only technical proposal on a pre decided date on a pre ‐ decided date. e. PC shall evaluate all proposals according to the criteria mentioned according to the criteria mentioned in bidding documents. f f. The firms will have to obtain a 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 h. The threshold usually ranges from 60 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 proposal during the technical l d i h h i l evaluation process.
j. PC shall publicly open financial proposals of the bidders who qualify proposals of the bidders who qualify technically. k k. All bidders who have qualified shall 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 n. The financial bids shall be adjusted The financial bids shall be adjusted for arithmetical corrections. o o. 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 prequalification and Single Stage Two lifi i d Si l S T Envelope bidding procedure?
6.5 6.5 T Two Stage Bidding Procedure shall be Two adopted in large and complex contracts adopted in large and complex contracts wo s where technically unequal proposals are sta likely to be encountered or where the likely to be encountered or where the age bi ge bid procuring agency is aware of its options in the market but, for a given set of dding performance requirements, there are two ding or more equally acceptable technical solutions available to the procuring agency. l ti il bl t th i proce proced 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 a. In the First stage the bidders shall I h Fi h bidd h ll first submit, according to the required specifications a technical required specifications, a technical proposal without price. b. b Procurement Committee will 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 technical requirements of the h i l i f h 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, or it may add new requirements or or 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 a. I In the Second stage, bidders who h S d bidd h 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 only. 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 your department where two stage bidding d t t h t t biddi procedure was adopted and why?
6.6 6.6 Two stage two envelope bidding method Tw shall be used for procurement where shall be used for procurement where Tw Tw Two st o stag alternative technical proposals are age possible, such as certain type of machinery possible, such as certain type of machinery e- t - two e or equipment or manufacturing plant. en 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 opened 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.
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