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NCB Evaluation

Evaluation of Bids under National


Competitive Bidding

NCB

Evaluation of Bids under NCB 1


NCB Evaluation

1. Before proceeding for evaluation, it should be


ascertained whether the bids:

i) Meet the eligibility requirements specified in


paragraphs 1.6 to 1.8 of Bank Guidelines;

ii) Have been properly signed;

[Judgment should be used in applying the above tests.


For instance, if the bidding document stipulated that
each page is to be signed or initialed, and a bidder
omitted to sign one or more pages containing more
supporting information, this should not be a ground
for disqualification. Similarly, minor discrepancies
e.g., if a bidder has failed to furnish the required
number of copies or has failed to use the supplied form
for filling in the prices, but has submitted a similar
form on his own letterhead could be rectified through
the clarification process without giving any benefit to
the bidder and without prejudice to other bidders’
interests .If You follow latest ICB Gds or Works
document format for ICB the position is changed-
Please see ITB Cl12.1 May 2006/revised May 2010
Works , ITB Cl 12.1 April 2008 Small works and ITB
Cl 32.2 in Gds].

iii) Are accompanied by the required


authorization/Undertaking (for agents and
subsidiaries as specified in the document);

Evaluation of Bids under NCB 2


NCB Evaluation

iv) Are accompanied by the required securities;

[Where the bidder has quoted for more than one pack,
if the bid security furnished is inadequate for all the
packs, the Purchaser shall take the price bid into
account only to the extent the bid is secured. For this
purpose, the extent to which the bid is secured shall be
determined by evaluating the requirement of bid
security to be furnished for the packs included in his
bid (offer) in the serial order of the Schedule of
Requirements of the Bidding Document]

v) Are substantially responsive to the


requirements of the bidding documents;

vi) Provides any clarification and or


substantiation that the Purchaser/ Employer
is required to determine the responsiveness;
and

vii) Are otherwise generally in order.

If a bid is not substantially responsive, that is, it


contains material deviations from or reservations
to the terms, conditions and specifications in the
bidding documents, it should not be considered
further. The bidder must not be permitted to
correct or withdraw material deviations or
reservations once bids have been opened.

Evaluation of Bids under NCB 3


NCB Evaluation

2. Judgement should be used in ascertaining the


above. The purchaser may waive any minor
informality or nonconformity or irregularity in a
bid, which does not constitute a material
deviation, provided such waiver, does not
prejudice or affect the relative ranking of any
bidder. In those cases for the purpose of
evaluation, adjustments should be made for the
costs to the purchaser of any quantifiable non-
material deviations or reservations.
3. a) A substantially responsive bid is one which
conforms to all the terms and conditions of the
bidding document without material deviations.
The determination of a bid’s responsiveness is to
be based on the contents of the bid itself without
recourse to extrinsic evidence.

b) A substantially responsive bid is defined as


under in SBD (Works) and SBD (Goods):

SBD (Works):

“27.2 A substantially responsive bid is one


which conforms to all the terms, conditions
and specifications of the bidding documents,

Evaluation of Bids under NCB 4


NCB Evaluation

without material deviation or reservation. A


material deviation or reservation is one (i)
which affects in any substantial way the
scope, quality or performance of the works;
(ii) which limits in any substantial way,
inconsistent with the bidding documents, the
Employer’s rights or the bidder’s obligations
under the Contract; or (iii) whose
rectification would affect unfairly the
competitive position of other bidders
presenting substantially responsive bids.”
Similar Clause exists in SBD small works ITB Cl 29.2

SBD (Goods) - NCB India:

“24.4 Deviations from or objections or


reservations to critical provisions
such as those concerning
Performance Security (GCC Clause
7), Warranty (GCC Clause 15), Force
Majeure (GCC Clause 25),
Limitation of Liability (GCC Clause
29), Applicable Law (GCC Clause
30), and Taxes and Duties (GCC
Evaluation of Bids under NCB 5
NCB Evaluation

Clause 32) will be deemed to be a


material deviation.”

Unacceptable Deviations

* Late Bid Submission

* Ineligible Bidder

* Unsigned Bid

* No substantially responsive Bid Security

* Bidder/JV not as pre qualified

* Price Adjustment Vs Fixed Price

* Unacceptable Alternative Design

* Non-Conforming Time Phasing

* Unacceptable Subcontracting

Evaluation of Bids under NCB 6


NCB Evaluation

* Qualification of Arbitration Rules. Locations


and other factors stated in Clause 24.4 of
ITB. for Goods
Debatable Deviations

* Different Payment Terms

* Non-Compliance with Local Regulations

- Labour, Import, Duties, Taxes etc.

* Completion/Maintenance Periods

* Special Methods of Construction

* Questionable Subcontracting

* Omission of (Minor) Works/Items

* Limited Liabilities

* Modified Liquidated Damages

* Different Codes/Standards

Evaluation of Bids under NCB 7


NCB Evaluation

- Materials, Workmanship, Design etc.

c) No bidder should be requested or permitted


to alter his bid after the bid has been opened.
In order to evaluate his bid, if any
clarification is required, the same can be
called. The request for clarification and the
response shall be in writing and no change in
the price or substance of the bid shall be
sought, offered or permitted.

[Bids should not be rejected solely on account of non-


submission of historical information. Bidders should
be given one opportunity to furnish the necessary
information by giving minimum time. Where
necessary purchaser/employer may also consider
verifying the information independently before
considering rejection of lower offers for non-
submission of historical information]

4. No preferential treatment should be given to any


bidder or class of bidders either for price or for
conditions unless specifically cleared with the
Bank and stipulated in the Project Agreement.

Any procedure under which bids above or below


a pre-determined assessment of bid values are
automatically disqualified, is not acceptable

5. (i) Civil Works


Evaluation of Bids under NCB 8
NCB Evaluation

All substantially responsive bids should be


evaluated in detail as per procedure
stipulated in bidding documents.

In evaluating the bids, the Employer will


determine for each Bid the evaluated Bid
price by adjusting the Bid price as follows:

(a) Making any correction for errors;

(b) Excluding provisional sums and the


provision, if any, for contingencies in the
Bill of Quantities, but including Day
work, where priced competitively; (if
included in NCB document)

(c) Making an appropriate adjustment for


any other acceptable variations,
deviations, or alternative offers; and

Evaluation of Bids under NCB 9


NCB Evaluation

(d) Making appropriate adjustments to


reflect discounts or other price
modifications offered.

- The Employer reserves the right to


accept or reject any variation, deviation,
or alternative offer. Variations,
deviations, and alternative offers and
other factors which are in excess of the
requirements of the bidding documents
or otherwise result in unsolicited
benefits for the Employer will not be
taken into account in Bid evaluation.

- The estimated effect of any price


adjustment conditions during the period
of implementation of the Contract will
not be taken into account in Bid
evaluation.

Bid evaluation reports for civil works should


be compiled in suggested format.

(ii) Goods:

a) Comparison of bids shall be ex-factory/ex-


warehouse/off-the-shelf price of goods, such

Evaluation of Bids under NCB 10


NCB Evaluation

price to include all costs as well as duties and


taxed paid or payable on components and
raw materials incorporated in the goods.( If
goods offered are imported price should
include customs and other import taxes paid
or payable)

b) Evaluation of bids shall include all duties


(Customs for imported, Excise /VAT for
domestic if quoted- In World Bank financed
contracts ED is not payable in India) if paid
or payable on the final
assembled/manufactured goods, but shall
exclude and not take into account sales and
other similar taxes which will be payable on
the goods.

c) Evaluation of the bids should take into


account, in addition to the bid price and the
price of incidental services, the following
factors in a manner and to the extent
indicated in the documents;

- Cost of inland transportation, insurance and


other costs incidental to delivery of the goods
to their final destination;

- Delivery schedule offered in the bid;

Evaluation of Bids under NCB 11


NCB Evaluation

- Deviations in payment schedule from that


specified;

- Cost of components, mandatory spare parts


and service;

- The availability of spare parts and after sales


service for the equipment offered;

- Projected operating and maintenance costs


during life of the equipment;

- Performance and productivity of the


equipment offered; and

- Other specific criteria indicated in the


bidding document.

Bids should be adjusted appropriately as per


bidding documents for any deviations with
reference to the requirements. (No adjustment can
be done for factors not stated in bidding
document)

(d) Bonus or additional credits for bid evaluation


should not be given for offered features that
exceed the required standards or
specifications viz. additional horse power or

Evaluation of Bids under NCB 12


NCB Evaluation

capacity unless there is a specific provision


for this in the bidding document.

(e) Bids often omit a particular component or


options or accessories or a minor attachment
(viz. tool kit or spare wheel in a vehicle). If
the item offered for supply is otherwise
functional and if the omissions are minor and
these parts can be procured separately, the
bid may be loaded for parts not included in
the scope of supply and evaluated. In other
cases the bid should be treated as non-
responsive.

(f) All substantially responsive bids should be


evaluated in detail as per procedure
stipulated in bidding documents.

Bid evaluation reports for goods should be


prepared in suggested format.
6. The evaluation will exclude and not take into
account any allowance for price adjustment
during the period of execution of the contract.

7. A bidder should not be required as a condition of


award to undertake responsibilities for work not
stipulated in the specifications or otherwise to
modify his bid.

Evaluation of Bids under NCB 13


NCB Evaluation

Single Bids

8. Where only one bid is received, efforts should be


made to ascertain the reasons. If it is determined
that publicity was not adequate, bid specifications
or any of terms were restrictive or unclear, prices
are unreasonable in comparison to market rates
,the bid should be cancelled and invited afresh
after amending the specifications/ terms.

If however, it is determined that bid specifications


are not restrictive and the prices quoted are
reasonable and bid is technically and
commercially responsive, the single bid should be
considered for award.
If consistently less than 3 bids are received the
reasons for poor competition should be analyzed
and remedial action should be formulated and
taken to promote better competition. Bank should
be advised of the proposed steps for comments if
any

Sub-contracting

Evaluation of Bids under NCB 14


NCB Evaluation

9. All bidders are expected to indicate clearly in the


bid, if they proposed sub-contracting elements of
the works amounting to more than 10/20 percent
of the Bid Price. For each such proposal the
qualification and the experience of the identified
sub-contractor in the relevant field should be
furnished along with the bid to enable the
employer to satisfy about their qualifications
before agreeing for such sub-contracting and
include it in the contract.

However sub-contracting for certain specialized


elements of the work is not unusual and
acceptable for carrying out the works more
effectively; but vertical splitting of the works for
sub-contracting is not acceptable.

Award of Contract

10. Contract should be awarded to a bidder, whose


bid has been determined to be substantially
responsive and who has offered the lowest
evaluated price provided further that the bidder is
determined to be qualified to perform the contract
satisfactorily and meets the qualification criteria

Evaluation of Bids under NCB 15


NCB Evaluation

specified in the bidding document. If the lowest


evaluated bidder (in the same name and style)
does not meet the qualification criteria, his bid
should be rejected and a similar determination
should be made for the next lowest evaluated
bidder; the process continued, if necessary.

11. In the case of civil works, if the bid of the


successful bidder is seriously unbalanced in
relation to the engineer's estimate of the real cost
of work, Performance Security should be
increased to a level sufficient to protect the
Department against financial loss in the event of
subsequent default of the successful bidder under
the contract.
12. If the contract is being let on a “Slice and
Package” basis, the lowest evaluated bid price
(the combined cost of all the lots) will be
determined in conjunction with other contracts to
be awarded concurrently taking into account any
discounts offered by the bidders for the award of
more than one contract.

13. If extension of bid validity is required it should be


sought from all bidders before stipulated
expiration date (for valid bids only), and not from
the lowest alone and the Bank notified. The

Evaluation of Bids under NCB 16


NCB Evaluation

extension shall be for the minimum period


required to complete the evaluation. In the case
of fixed price contracts, if the award is delayed
beyond the expiry of the initial bid validity, the
contract price will be adjusted by a factor
specified in the document. Bank’s prior
concurrence is required if the extension is longer
than 4 weeks beyond the original validity period.
14. In case of pre-review contracts, evaluation report
and recommendations for award along with
comparative statement should be sent to the Bank
for review and clearance before communicating
award of contract.

Rejection of Bids

15. Regardless of value, if all bids are proposed to be


rejected and bids are to be re-invited; the Bank
should be consulted before such action. Bank
does not favor negotiations. –Format W

16. In the case of civil works, the system of rejecting


bids outside a pre-determined margin or “bracket”
of prices should not be used without prior
clearance with the Bank.

Evaluation of Bids under NCB 17


NCB Evaluation

17. Rejection of bids due to submission of collusive


(unreasonably high) prices will attract provisions
of para 1.14 of Procurement Guidelines. In such
cases bidders must be requested to furnish
breakdown of unit rates in terms of clause 26.1 of
ITB (NCB works) providing justification for
higher bid prices. If this justification, after
review, is determined rational, contract should be
awarded to the lowest evaluated responsive
bidder. If not, these bidders must be declared as
ineligible from bidding in the rebid for that
contract as specified in Clause 5.8 and 3.1 of ITB
(NCB works).

Performance of Security

18. Performance security should be obtained for the


prescribed amount and in an acceptable form in
the currency of the contract in accordance with
the conditions of the contract. Additional security
should be taken to cover the risks of unbalanced
bids in case of civil works.

Evaluation of Bids under NCB 18


NCB Evaluation

19. Performance security should normally remain


valid as stipulated in the bidding document.

Failure of the successful bidder to sign the


contract or furnish performance security within
the specified period shall constitute sufficient
grounds for the annulment of the award and
forfeiture of the bid security in which event the
purchaser/borrower may make the award to the
next lowest evaluated bidder or call for new bids.

SUGGESTED FORMAT OF BID


EVALUATION REPORT FOR CIVIL
WORKS (NCB)
Evaluation of Bids under NCB 19
NCB Evaluation

1. Scope of contract and approximate cost:

- Outline brief description of works covered by


invitation.
- Furnish estimated cost at the time of appraisal,
the name of recommended bidder and the
actual cost (briefly justifying the
reasonableness) for the proposed contract.
2. Bidding document:

Furnish the following details and discuss:

- Approval by World Bank/Govt.

- Variations from the approved document, if


any.

- Specifications and drawings (approval).

- Implementation schedule and stipulated time


for completion.

- Important bidding conditions, such as, price


adjustment, if any, etc.

Evaluation of Bids under NCB 20


NCB Evaluation

(Enclose copy of bidding document with


amendments if any, if not sent earlier, Annexure I).

3. Bid invitation process:

Furnish the following details and discuss:

- Bid invitation advertisement in national


press, names of newspapers and dates of
publication.

- Dates the bidding document was available


for sale.

- Number of bidders who purchased the


bidding documents and their nationality.

- Pre bid conference, minutes of meeting and


resulting amendments, if any.

- Date and time of public bid opening,


attendance, highlights of the bid opening
meeting, etc.

(Enclose copies of Bid Invitation, Pre bid minutes,


minutes of bid opening - Annexure II, III & IV).

4. Bid response:

Evaluation of Bids under NCB 21


NCB Evaluation

- State number of offers received and the


nationality. (In case of inadequate
competition analyze reasons and explain)

- Furnish details of offers received:

(i) In time
(ii) Late
----------------------------------------------------
Total

- Furnish table of bid prices as read out at


the bid-opening meeting and as
converted (in increasing order of bid
value):

Sl.No. Name of bidder Nationality Bid price Remarks


as read out

5. Clarifications obtained, if any.

Evaluation of Bids under NCB 22


NCB Evaluation

6. Preliminary examination of bids:

- Discuss preliminary examination for


eligibility (ITB Clause 3/4), arithmetical
errors, completeness, legal validity (has been
properly signed and has submitted power of
attorney etc.), bid validity, bid security and
substantial responsiveness to commercial and
technical aspects of bidding documents.

- Furnish details of all bids in Annexure - V.

- List the bids rejected as non-responsive.

Sl. No. Name of bidder Bid price Brief reasons


for Rejection

Evaluation of Bids under NCB 23


NCB Evaluation

7. Evaluation of substantially responsive bidders:

- State evaluation criteria and


methodology cross-referencing to bid
documents.

- Discuss conditions if any and


adjustment of bid prices.

- Prepare evaluation table showing the


rankings as under:

Rank Bidder Bid price

1
2
3

(Furnish details as in Annexure VI)

- Discussion of offers:

* Determination of lowest evaluated


responsive bid.

* Comments on unbalanced item bids, if


any and proposals for additional
security.

Evaluation of Bids under NCB 24


NCB Evaluation

8. Sub-Contracting

- Comment on sub-contracting proposed and


discuss qualification/experience of sub-
contractors determining whether it is
acceptable.
.

9. Post-qualification/Verification for pre qualified


bidders:

- State criteria if any outlined in the bid


document.
- Furnish actual qualification of selected
bidder and determine whether the selected
lowest evaluated responsive bidder is
qualified to satisfactorily perform the
contract. (Annexure VII)

- If the determination is negative, bid of the


lowest bidder will have to be rejected and the
next lowest evaluated bid considered to make
a similar determination of bidder's capability
to perform satisfactorily.

10. Construction Methodology

Evaluation of Bids under NCB 25


NCB Evaluation

-
Discuss the proposed construction
methodology and other details of the selected
bidder [submitted by him in terms of Clause
4.3/5.3(k) of ITB] and comment on its
acceptability.
11 Unbalanced bids
Discuss unbalanced items

12. Recommendations:

- Furnish important features of bid


recommended for award such as:

- Advances
- Price adjustments, if any
- Performance security
- Additional security proposed for
unbalanced bids, if any
- Bid validity
- Stipulated period of completion
- Other important terms and conditions

13. Value of the contract proposed for approval.

Signature of the Evaluating Officer

Evaluation of Bids under NCB 26


NCB Evaluation

Enclosures (enclose only those which were not


forwarded earlier):

1. Copy of bidding document (Annex I)


2. Copy of bid invitation and press advertisement
(Annex II)
3. Pre bid minutes and Copies of Amendments, if
issued (Annex III)
4. Minutes of bid opening (Annex IV)
5. Assessment of bids (Annex V)
6. Comparative Statement of Offers (Annex VI)
7. Details of post-qualification/verification of pre
qualified bidders (Annex VII)
8. Details of Recommended Bidder (Annex VIII)

Evaluation of Bids under NCB 27


NCB Evaluation

Annexure V/1

Assessment of Bids

Sl. Particulars Bidder 1 Bidder 2 Bidder 3 Bidder 4 Bidder 5


No. ................. ................. ................. ................. .................

1. Name of Bidder

2. Country of Origin

3. Bid Price

4. Credentials
-----------------------
Letter of Authorization

5. Commercial
Assessment*

6. Technical Assessment*

7. Decision on
Responsiveness

8. Capacity cum
Capability*
Assessment
(Post/ Pre
qualification)

* For details see attachment.

Evaluation of Bids under NCB 28


NCB Evaluation

Annexure V/2

EVALUATION OF THE BIDS

Analysis for Responsiveness of Bid:

Sl. Particulars and Clause Reference Name of Name of Name of


No. Bidder 1 Bidder 2 Bidder 3
...................... ........................ ........................
. . .

1. Validity of Bid ITB 15/16

2. Bid Security ITB 16/17

5.1 Form of
Bid Security

5.2 Bank and


Branch

5.3 Expiry Date

5.4 Amount

3. Letter of ITB 18.2/19.2


Authorization

4. Bid Form ITB 12.1/13.1

5. Exceptions to
Clauses, if any:

6. Unbalanced Bids ITB 29.5/30.5

7. Price Adjustment, if ITB 13.4/14.4


suggested

8. Technical
Deviations, if any

9. Decision on
Commercial
Responsiveness

Note: Add parameters as required to suit the item under procurement and as
specified in your bidding document.

Evaluation of Bids under NCB 29


NCB Evaluation

Annexure VI

Comparative Statement of Offers

Sl. Item of Bill of Quantity Unit Estimate Bidder 1 Bidder 2


No. Quantities
Rate Value Rate Value Rate Value
in Rs. in Rs. in Rs. in Rs. in Rs. in Rs.

Grand Total:

Evaluation of Bids under NCB 30


NCB Evaluation

Annexure VII

Post Qualification

Criteria as specified in the bidding Bidder 1 Bidder 2 Bidder 3


document*

1.

2.

3.

4.

Note: 1(*). List all criteria specified in the bidding document and give
comments on how bidder meets or fails in criteria.

2. Give details for the recommended bidder and other lower bidders
whose offer is evaluated as non-responsive / who have been
determined as not meeting with these criteria.

Evaluation of Bids under NCB 31


NCB Evaluation

Annexure VIII

Details of Recommended Offer

1. Total Value of Bid in Rupees :

2. Advances: Mobilization / Equipment :

3. Interest on Advance, if any :

4. Performance Security :

5. Additional Performance Security for :


Unbalanced Bids, if any

6. Retention Money :

7. Milestones to be achieved :

8. Liquidated Damages for different milestones :

[Model dummy report attached in Page 54]

Evaluation of Bids under NCB 32


NCB Evaluation

NCB
Enclosure VI

SUGGESTED FORMAT OF BID EVALUATION


REPORT FOR GOODS & EQUIPMENT (NCB)

1. Scope of contract and approximate cost:

- Outline brief description of Goods and


services covered by the invitation.

- Furnish estimated cost at the time of


appraisal and the name of recommended
bidder and actual cost for the proposed
contract.

2. Bidding document:

Briefly discuss and indicate:

- Details of approval by World Bank/Govt.

Evaluation of Bids under NCB 33


NCB Evaluation

- Variations from the approved document, if


any
- Specifications (approval reference, if any)
- Requirement of accessories/spares, if any
- Delivery requirements
- Important bidding conditions such as:

* Price adjustment
* Adjustment for

(a) Delivery schedule


(b) Payment schedule
(c) Performance and productivity
(d) Operating and maintenance costs

[Enclose copy of bidding documents and amendments


if any, if not sent earlier (Annexure I)]
3. Bid invitation process: Furnish the following
details:

-
- Bid invitation advertisement in national
Newspapers and dates of publication

- Period in which the bidding documents were


made available for sale

Evaluation of Bids under NCB 34


NCB Evaluation

- Number of firms who purchased the bidding


documents and their nationality

- Date of closing and extensions, if any

- Pre-bid conference, minutes of meeting and


resulting amendments, if any

- Date and time of public bid opening,


attendance, highlights of the bid opening
meeting

[Enclose copies of Pre bid minutes (Annexure II)


and minutes of bid opening (Annexure III)]

4. Bid response:

- State number of offers received and the


nationality (Comment on response)

- Furnish details of offers received:

(i) In time:

(ii) Late:

Evaluation of Bids under NCB 35


NCB Evaluation

Total:

- Furnish Table of bid prices as read out at bid


opening (in ascending order):

Sl.No. Name of Nationality Bid price as Remarks


bidder read out

5. Clarifications obtained, if any

6. Preliminary examination of bids:

- Discuss preliminary examination for


eligibility (ITB Clause 2), arithmetical
errors, completeness, legal validity (has
been properly signed and has submitted
power of attorney etc.), bid validity, bid
security and substantial responsiveness
to commercial and technical aspects of
bidding documents.

- List arithmetical errors and corrected bid prices

- Furnish details of all bids in Annexure IV

- List the bids rejected as non-responsive

Evaluation of Bids under NCB 36


NCB Evaluation

Sl. No. Name of Bid price Brief


bidder reasons

7. Evaluation of substantially responsive bidders:

- State evaluation criteria, methodology cross-


referencing to bid documents, assumptions, if
any, made in evaluation (Annexure V).

- Discuss briefly offers and adjustment,


if any, for:

* Commercial aspects:

o omissions
o inland transportation
o delivery
o deviation in payment schedule
o spare parts
o operation and maintenance
o performance and productivity etc.

* Technical criteria:

o efficiency
o productivity
o training etc.

Evaluation of Bids under NCB 37


NCB Evaluation

- Prepare evaluation table showing all


adjustments and ranking as under:

Rank Name of bidder/ Evaluated FOR


Manufacturer/Agent destination price
1.

2.

3.

(Details in Annexure VI)

- Brief discussion of offers

- Determination of the lowest evaluated


responsive bidder

8. Post qualification:

Evaluation of Bids under NCB 38


NCB Evaluation

- State criteria, if any, outlined in the bid


document.

- Discuss actual qualification of selected bidder


to demonstrate whether the selected lowest
evaluated responsive bidder is qualified to
satisfactorily perform the contract. (If the
determination is negative, lowest bid will have
to be rejected and the next lowest evaluated bid
considered for a similar determination of
bidder's capability to perform satisfactorily.)

(Details in Annexure VII)

9. Recommendations:

- Furnish important features of recommended


bid such as:

- Bidders name

- Model, quantity and total bid price for:

* Basic machine
* List of tools
* List of special accessories
* List of 2 years maintenance spares

Evaluation of Bids under NCB 39


NCB Evaluation

* Other Services
Total Rs. ___________

- Source of origin

- Payment terms

- Agency commission

- Delivery

- Inspection

- Insurance

- Freight

- Performance security

- Specifications

- Other important terms and conditions

- Date of expiry of validity of the selected bid

(Enclose contract information sheet of selected


bidder, Annexure VIII)

Evaluation of Bids under NCB 40


NCB Evaluation

Signature of Evaluating officer

Signature of competent Authority

Evaluation of Bids under NCB 41


NCB Evaluation

Enclosures (enclose only those which were not


forwarded earlier):

1. Copy of bidding document (Annex I)

2. Pre bid minutes (Annex II)

3. Minutes of bid opening (Annex III)

4. Details of assessment of bids (Annex IV)

5. Assumptions made in evaluation (Annex V)

6. Evaluated bid prices of offers (Annex VI)

7. Details of post-qualification (Annex VII)

8. Contract information of selected bidder (Annex


VIII)

Evaluation of Bids under NCB 42


NCB Evaluation

Annexure IV/1
Assessment of Bids

Sl. Particulars Name of Name of Name of Name of Name of


No. Bidder 1 Bidder 2 Bidder 3 Bidder 4 Bidder 5
................ ................ ................ ................ ................
. . . . .

1. Manufactured by

2. Country of Origin

3. Agent

4. Classification

5. Model Offered

6. Model Number

7. Total Bid Price

8. Total Cost per unit as per Bid


Document in Indian Rupees

9. Credentials
-----------------------
Letter of Authorization

10. Commercial Assessment*

11. Technical Assessment*

12. Decision on Responsiveness

* For details see attachment.

Evaluation of Bids under NCB 43


NCB Evaluation

Annexure IV/2
EVALUATION OF THE BIDS

Commercial Analysis for Responsiveness of Bid:

Sl. Particulars and Clause Reference Name of Name of Name of


No. Bidder 1 Bidder 2 Bidder 3
......…..... ............ .................
….
1. Model Offered

2. Model No.

3. Manufactured. By

4. Country of Origin ITB 2

5. Bid Security ITB 15

5.1 Form of
Bid Security

5.2 Bank and


Branch

5.3 Expiry Date

5.4 Amount

6. Validity of Bid ITB 16

7. Letter of Authorization ITB 13.3(a)

8. Bid Form ITB 9.1

9. Exceptions to:

Delivery; ITB 26.5(b)

Payment Terms; and ITB 26.5(c)

Others

10. Bid Currency ITB 12

11. Performance Statement ITB 13.3(b)

Evaluation of Bids under NCB 44


NCB Evaluation

Sl. Particulars and Clause Reference Name of Name of Name of


No. Bidder 1 Bidder 2 Bidder 3
............... ...................... .................
…… .
12. Decision on
Commercial
Responsiveness

Note: Add parameters as required to suit the item under procurement and as
Specified in your bidding document.

Evaluation of Bids under NCB 45


NCB Evaluation

Annexure IV/3

Technical Evaluation of the Bids :

Sl. Particulars Technical Specifications Clause Name of Name of Name of


No. Reference Bidder 1 Bidder 2 Bidder 3

.................. .................. .................

1. Model No

2. Mfd. By

3. Model Type

4.
5.
6.
7.
8.
9.
10.
11.
12.
13.

14. Decision on
Technical
Responsiveness

a) List the mandatory and optional features which are checked and
compared as detailed in your technical specifications to determine on
conformity to technical specifications.

b) This should also cover all deviations listed by bidder in response to


Clause 14.3 (c) of ITB.

Evaluation of Bids under NCB 46


NCB Evaluation

Annexure V

Brief details of Assumptions made in Evaluation

a)

b)

c)

d)

Evaluation of Bids under NCB 47


NCB Evaluation

Annexure VI

Comparative Statement of Responsive Offers


Items Price
Bidder's Bidder's Bidder's
Name Name Name
.................. ............... ..................

Cost per unit (in Rs.)


1. Ex-factory/ ex-showroom/ ex-warehouse or Off-
the-Shelf prices

2. Excise duty (if quoted separately)

3. Packing & forwarding charges

4. Inland freight

5. Insurance

6. Other charges, if any

TOTAL

7. Discounts, if any

8. Total unit cost as quoted

9. No. to be supplied

10. Total cost as quoted

11. Delivery period offered

12. Delivery period adjustment

13. Payment terms adjustment

14. Other adjustments

15. Total evaluated price with adjustment

16. Ranking

Evaluation of Bids under NCB 48


NCB Evaluation

Annexure VII

Post Qualification

Criteria as specified in the bidding Bidder 1 Bidder 2 Bidder 3


document*

1.

2.

3.

4.

Note: 1(*) List all criteria specified in the bidding document and give
comments on how bidder meets or fails in criteria.

2. Give details for the recommended bidder and other lower bidders
whose offer is evaluated as non-responsive / who have been
determined as not meeting with these criteria.

Evaluation of Bids under NCB 49


NCB Evaluation

Annexure VIII

Details of Recommended Offer

Name of Bidder___________________________________________

Sl. Name of Item Specification Unit Qty. Rate Value


No or Part No.
.

1. Basic item

2. List of Tools

3. List of special accessories and


spares

4. List of spares for 2- year


maintenance

5.

Total Cost

Evaluation of Bids under NCB 50


NCB Evaluation

MODEL EVALUATION REPORT FOR CIVIL


WORKS

(Prior Review)

Note: This is a hypothetical case for illustration


only.

1. Scope of contract and estimated cost:

The works covered under this bid is for the


construction of X kilometers of approach road to
Agriculture marketing centers in Y District of Z
State (Package 12). The estimated cost of the
work is Rs.202, 03,000. The packaging of the
work has been cleared with the Bank. The
recommendation is for award of contract to M/S
…………….at a cost Rs 235.18 lakhs – that is
approximately 16% over estimates. This is
considered reasonable as the estimate is based on
1991 rates and the inflation in the last 3 years
which is 8-9% annually

Evaluation of Bids under NCB 51


NCB Evaluation

2. Bidding document:

The bidding document is as per the model


cleared with the Bank. Since the value of the
work is more than the equivalent of US$200,000
(say Rs.60, 00,000) the bidding document along
with the drawings, specifications was got prior
reviewed by the Bank. No objection to the
bidding document has been issued by the Bank
vide letter of March 5, 1994.

Salient points of bidding document:

(a) Stipulated period of 24 months including


completion: rainy seasons

(b) Price adjustment: Provided since the


period of completion of
work is more than 12
months.

(c) Pre bid conference: Provided.

Evaluation of Bids under NCB 52


NCB Evaluation

3. Bid invitation process:

Chief Engineer, Roads AAA on May 16, 1994,


invited bids. The copy of the invitation to bid
was also sent to....................................................
Departments for publication in their office notice
boards and wide publicity. The invitation for bid
was also sent to all the formations of the Z State
Public Works Department for wide publicity. The
invitation for bid was also sent to the Director of
Publicity for arranging press publicity. A copy of
the invitation to bid is enclosed (Annexure I).
The dates of publication of the invitation for bid
in the press are as follows:

Sl. Name of Newspaper Level


Date of
No. publication
1 GGGGGG (English Daily) National 31-05-1994
2 HHHHHH (Hindi Daily) National 02-06-1994
3 IIIIIIIIII (Hindi Daily) State 02-06-1994
4 JJJJJJJ (Hindi Daily) Local 01-06-1994

Evaluation of Bids under NCB 53


NCB Evaluation

The bidding documents were made available for


sale from June 10 to July 15, 1994. The date of
bid opening was July 16, 1994. Thus a minimum
bidding period of 35 days (lower of the period
from the date of publication of the notice inviting
bids in the press or from the date of making
available the bidding documents for sale) was
provided, which is more than the stipulated
minimum period of 30 days.

The following prospective bidders purchased the


bidding document.

(1) M/s. A and Company;


(2) M/s. B and Company;
(3) M/s. C and Company;
(4) M/s. D Construction Company;
(5) M/s. E Construction Company;
(6) M/s. F Construction Company;
(7) M/s. G Constructions;
(8) M/s. H Engineers and contractors;
(9) M/s. J Construction Company; and
(10) M/s. K Entreprises Ltd.

All the above purchasers are of Indian nationality.

Evaluation of Bids under NCB 54


NCB Evaluation

Pre bid conference was held on June 30, 1994 as


scheduled. No objection to the draft of the prebid
minutes and the draft of the corrigendum was
issued by Bank on July 5, 1994. The copy of the
minutes of the pre-bid conference and the
corrigendum was sent immediately to all the
bidders who had purchased the bidding
document and was incorporated in the bidding
documents sold afterwards. (Copy of the minutes
of pre-bid conference and the copy of the
corrigendum is enclosed. Annexure II).

4. Bid response:

In all ten bids were received. All are Indian.


Details are as follows:

In time: 9

Late: 1 (Bid of M/s. E Const. Co.


received 15 minutes late)

Total 10

Evaluation of Bids under NCB 55


NCB Evaluation

In addition to the above one ‘Withdrawal’ envelope


from M/s. H. Engineers and Contractors and one
‘Modification” envelope, from M/s. J. Construction
Company were received. The bid of M/s. E
Construction Company, which was received late,
was returned unopened in terms of Clause 21.1 of
ITB.

5. Bid opening:

The bids were opened on July 16, 1994 at 1530


hours as stipulated. The bidders or their
representatives attended the bid opening. The
envelope marked ‘Withdrawal’ received from M/s.
H. Engineers and Contractors was opened and read
out first as per Clause 23.2 of ITB. Since the
withdrawal notice was received before the date and
time for submission of the bids, the bid of M/s. H.
Engineers and Contractors was not opened as per
Clause 23.2 of ITB. The balance eight bids as well
as the ‘Modification’ envelope were opened one by
one. The bid security furnished by the bidders, rates
of the bidders, the discounts offered by them, the
corrections and conditions if any, were read out at
the meeting. The minutes of the bid opening were
prepared (Copy of the minutes is enclosed.
Annexure III).
Table of Bid prices as read out at the time of bid
opening is as follows:

Evaluation of Bids under NCB 56


NCB Evaluation

Sl. Name of Bidder Nationality Bid Price Remarks


No. as read out
(Rs.)
1 M/s. B and Company Indian 216,89,345
2 M/s. F Construction Indian 229,82,416
Co.
3. M/s. G Constructions Indian 231,24,221
4. M/s. A and Company Indian 232,64,492
5. M/s. D Construction Indian 237,56,267 Offered a discount
Co. of One percent if
the award is made
within a period of
60 days
6. M/s. K Entreprises Indian 241,89,527
Ltd.
7. M/s. C and Company Indian 265,32,119 Offered a discount
of Five percent of
the bid amount if
the award is made
within 45 days of
opening of bid
8. M/s. J Construction Indian 271,46,651 Offered an
Co. unconditional
discount of Ten
percent of offered
price in the
‘Modification’
envelope

M/s. K Enterprises Ltd. under its letter of July


18, 1994 offered an unconditional suo-moto

Evaluation of Bids under NCB 57


NCB Evaluation

discount of 12 % on their quoted price. ( as per


new Guidelines this is not permissible –see new
GL para 2.46)

6. Clarifications obtained:

M/s. C and Company had not submitted the


details of outstanding works with them. They
were asked to produce the same duly
authenticated by the Employer/Engineer within
10 days, which was promptly submitted by them.
Similarly M/s. F Construction and Company had
submitted the quantities of work done calendar
yearwise and not financial yearwise. The
financial yearwise breakup was obtained to
facilitate evaluation with reference to the
stipulated post qualification criteria. [Copies of
letter requesting for the clarification/information
and replies received from the bidders are
enclosed (Annexure IV)]

Evaluation of Bids under NCB 58


NCB Evaluation

7. Preliminary examination of bids:

7.1 Arithmetical errors:

The following are the arithmetical errors found in


the bids:

As quoted(Rs.) As calculated (Rs.)

(i) Bid of M/s. 232,64,492 216,24,776 (by


A and Co. taking the rate
expressed in words
as correct for item
no. 16)

(ii) Bid of M/s. 229,82,416 230,81,697 (by


F Const. Co. correcting the total)

The concurrence of the bidders was requested in


writing for the above corrections in terms of
Clause 27.2 of Instructions to Bidders. See
change in guidelines –confirmation only from
lowest M/s. F Construction Company gave the
concurrence for the correction in writing. M/s . A
and Company did not accept the corrected
amount of the bid. Hence its bid is rejected and
the Bid Security submitted by it has been

Evaluation of Bids under NCB 59


NCB Evaluation

forfeited in accordance with Sub-Clause 16.6 and


Clause 27.2 of ITB.-See change in new SBDs
7.2 Completeness and Legal validity:

The bidders have duly signed all the bids. They


have quoted for all the items and are thus
complete. Bids are signed by persons holding
proper power of attorney and hence are legally
valid.

7.3 Bid Validity:

As per Clause 15.1 of Instructions to the Bidders


(ITB) bids shall remain valid for a period not less
than 90 days after the deadline for the
submission of the bid. The bids were opened on
July 16, 1994 and hence the bids are to be valid
upto October 14, 1994.

M/s. C and Company has stated in the bid that its


bid is valid for 60 days after the date of bid
opening.

No condition has been given by any of the other


bidders nor have they stated specifically that their
bid is valid for 90 days after the bid opening.
Since they have signed the bidding document and
not given any condition, it is taken that all these

Evaluation of Bids under NCB 60


NCB Evaluation

bids are valid for 90 days after the bid opening i.e.
valid upto October 14, 1994.
7.4 Bid Security:

As per Clause 16.1 and 16.3 of ITB, the bid


security should be Rs.4, 04,000 and Bank
guarantees and other instruments of fixed validity
shall be valid for 45 days after the validity of the
bid i.e. upto November 28, 1994. The bid
security furnished by the various bidders is as
follows:
S. Name of Amount of Type Bank Validity
No. Bidder security (Rs.)
1. M/s. A and 404,000 F.D. Bank of Nov. 30, 94
Company Baroda
2. M/s. B and 425,000 B.G. Canara Bank Dec. 31, 94
Company
3. M/s. C and 450,000 B.G. Citi Bank Oct. 14, 94
Company
4. M/s. D 404,000 B.G. Canara Bank Nov.30, 94
Const. Co.
5. M/s. F 350,000 B.G. Vysya Bank Oct.31, 94
Const. Co.
6. M/s. G 405,000 B.G. Punjab Nov.29, 94
Const. Co. National
Bank
7. M/s. J Const. 405,000 B.G. Union Bank Dec.10, 94
Co. of India
8. M/s. K 410,000 F.D. State Bank of Mar. 15, 95
Entreprises India

Evaluation of Bids under NCB 61


NCB Evaluation

Ltd.

Bank guarantees are in prescribed format and


there are no additional remarks making them
conditional and unacceptable.

7.5 Responsiveness to commercial conditions:

M/s. B and Company has stipulated that the


department has to supply bitumen, cement and
steel at fixed rates. It has also given an
alternative formula for price adjustment. The
other bidders have not stipulated any condition.
They have signed the contractor’s bid form as
well as bidding documents stipulating no
reservations and hence it is taken that they are
agreeable to the commercial conditions.

7.6 Responsiveness to technical aspects:

None of the bidders have stipulated any


condition regarding the technical aspects.

Evaluation of Bids under NCB 62


NCB Evaluation

8. Bids rejected as non-responsive to the bidding


documents:

S. No. Name of Bid Price(Rs.) Brief reasons for rejection


Bidder
1. M/s. B and 216,89,345 (i) Requires departmental supply
Company of bitumen, cement and steel at
fixed rates, contrary to bidding
document stipulations; (ii)
Proposes new P.A. Clause, which
is unacceptable.

2. M/s. C and 265,32,119 (i) Bid valid for only 60 days and
Company hence non-responsive in
terms of Clause 15.1 of ITB; (ii)
Bank Guarantee of bid security is
not secured 45 days beyond the
validity of the bid and hence non-
responsive in terms of Clause 16.2
&16.3 of ITB.

3. M/s. F 230,81,697 (i) Inadequate bid security and


Const. hence non-responsive in terms of
Company Clause 16.3 of ITB; (ii) Bank
Guarantee of bid security is not
secured 45 days beyond the Bid
opening and hence non-responsive
in terms of Clause 16.3 of ITB.

The details of all the bids are furnished in


Annexure V.

Evaluation of Bids under NCB 63


NCB Evaluation

9. Substantially responsive bids:

In view of the above the bids of the following


bidders are determined as substantially responsive to
the provisions in the bidding documents.

(I) M/s. D Construction Company;

(ii) M/s. G Constructions;

(iii) M/s. J Construction Company; and

(iv) M/s. K Entreprises Ltd.

Evaluation of Bids under NCB 64


NCB Evaluation

10. Evaluation of the substantially responsive


bids:

There are no conditions, which warrant


adjustment of the bid prices. No other specific
evaluation criteria have been stipulated in the
bidding document. The adjustment of the prices
is therefore NIL.

Evaluation table showing ranking of the bids is


as follows:

Rank Name of Bidder Bid Price Remarks

1. M/s. G 231,24,221 Lowest responsive bidder


Constructions

2. M/s. D 237,56,267 Second lowest responsive


Construction Co. bidder. Since the bidder has
offered a conditional
discount of one percent for
award of the contract
within a period of 60 days,
the discount has not been
taken into consideration for
evaluation

Evaluation of Bids under NCB 65


NCB Evaluation

3. M/s. K 241,89,527 Third lowest responsive


Entreprises Ltd. bidder. Since the bidder
has offered the discount
of 12% after the
deadline for submission
of the bids, the discount
has not been taken into
consideration for
evaluation of the bids. As
per new Guidelines this
bid will be treated as non
responsive

4. M/s. J 244,31,986 Fourth lowest responsive


Construction bidder, after taking into
Company account the unconditional
discount of 10% offered in
the ‘Modification’
envelope received before
the deadline for
submission of the bids.

Detailed item wise comparative statement is


furnished in Annexure VI

Evaluation of Bids under NCB 66


NCB Evaluation

The lowest evaluated responsive bid is that of


M/s. G Constructions and the bid price is Rs.231,
24,221/- .
11. Comments on the unbalanced item bids.

M/s. G Constructions has quoted unbalanced


rates for BOQ item numbers 3 and 4. The bidder
was requested to furnish breakdown of unit rates
for these items. It has been scrutinized and found
that the clarification furnished is not rational and
convincing. Additional performance security of
Rs.4, 35,870 is proposed to protect against the
financial loss in the event of default of the
successful bidder, in terms of Clause 29.5 of the
ITB. The bids of other bidders are balanced and
no additional security is required.

12. Post-qualification/verification of the lowest


evaluated responsive bidder:

The qualification criteria to be satisfied for the


award of this particular contract, Package 12 are
stipulated in Clause 4.5 of the ITB. In this IFB
bids were invited for two Packages 12 and 14.
M/s. G Construction’s bid is the lowest
responsive bid for Package 12 and M/s. D
Construction Company’s is lowest responsive
bidder for Package 14. The following check is

Evaluation of Bids under NCB 67


NCB Evaluation

made for the post qualification of the lowest


responsive bidder for Package 12.

S. Clause Minimum Qualification of the Remarks


No. No. Ref. qualification lowest bidder
required for
Package 12

1. 4.5 A(a) Annual Rs.12.3 M at 90-91 Bidder


financial price level i.e. Rs.18.0 satisfies these
turnover: M at 94-95 price level criteria.
Rs.12.2 M

2. 4.5 A(b) Satisfactory One similar work Bidder


completion of namely XXX in YYY satisfies these
one similar Division, in ZZZ State, criteria.
work Rs. 10 M of value Rs. 8 million
(started in the year
1991-92 and completed
(95%) in the year 1992-
93) The updated cost of
the above work at 1994-
95 rates is Rs. 9.68
million.

3. 4.5 A(c) Executed the 1,12,041 Sq. m. in Bidder


following qnty. 1990-911,12,041 Sq. m. satisfies the
of works: (i) in 1990-91 criteria fully
WBM: 80,000
Sq. m. (ii) BT:
80000 Sq.
m.

Evaluation of Bids under NCB 68


NCB Evaluation

4. 4.5 B(a) Availability of Available eqpt. Bidder


critical eqpt. O H P Total satisfies the
Roller: 7 requirement
BT Boiler: 6 1 0 7
(4)/3=1.33 say 2 - - 2
BT Mixer: 0 1 - 1
(3)/3=1
Water Tankers: 3 2 1 - 3

5. 4.5 B(b) Availability of Available: Mr. L B.E. Bidder


Project Manager with 15 years satisfies the
of not less than experience. requirement.
five years exp.:

6. 4.5 B(c) Liquid assets Rs.2.5 M from Bidder


and/or credit Canara Bank satisfies the
facilities: Rs.1.75 requirement.
M

Note: WBM - Water bound maccadam; BT - Black


topped; O - Owned; H - Hired or leased; P - To be
purchased out of Advance.

The resources and experience of the Bidder in his


name has only been considered. Sub-contractors’
experience and resources have not been taken
into account in determining the Bidder’s
compliance with the qualifying criteria.

Evaluation of Bids under NCB 69


NCB Evaluation

13. Check for Bid capacity:

The assessed Bid capacity of the lowest responsive


bidder is computed as follows:

Assessed available Bid Capacity = (A*N*1.5 - B)

A = Maximum value of civil engineering works


executed in any one of the last five years
ie.Rs.18.0 M at 1994-95 rates;
N = Number of years prescribed for the completion
of works of this package i.e. 24 months- 2 years;
B = Value at 1994-95 price level of existing
commitments and on-going works to be
completed in the next 2 years i.e. Rs.59 M

Assessed available Bid Capacity of M/s. G


Constructions is = 18*2*1.5 - 59 = minus Rs. 5 M

The proposed contract value of the Package 12 is


Rs.23.12 M.

The assessed Bid Capacity is less than the proposed


value of the contract to be awarded. Thus the lowest
evaluated responsive bidder for Package 12 M/s. G
Constructions does not satisfy the Bid Capacity
criteria and thus cannot be awarded the contract in
terms of the Clause 31.1 (b) of ITB.

Evaluation of Bids under NCB 70


NCB Evaluation

14. Post qualification verification of the next


lowest evaluated responsive bidder:

Since the lowest evaluated responsive bidder


does not meet the qualification criteria
verification is made for the next lowest evaluated
responsive bidder M/s. D Construction Company,
who is incidentally the lowest evaluated
responsive bidder in Package 14. Hence as per
Clause 4.5 C of ITB, the lowest evaluated
responsive bidder for this Package (12) must
demonstrate having experience and resources
sufficient to meet the aggregate of the qualifying
criteria for the individual contracts i.e. (Packages
12 and 14)

S. Clause Minimum Qualification of the Remarks


No. No. Ref. Qualification lowest bidder
required for
Package 12 & 14

1. 4.5 A(a) Annual financial Rs. 26.7 at 90-91 Bidder


Turnover: price level i.e. Rs. satisfies these
Pack. 12: 12.2 M 39.1 M at 94-95 criteria.
Pack. 14: 13.2 M price level
Total: 25.4 M

2. 4.5 A(b) Satisfactory Following similar Bidder


completion of one works namely for satisfies these
similar work: Package 12 PPP in criteria.
Pack. 12: 10.0 M QQQ Division RRR

Evaluation of Bids under NCB 71


NCB Evaluation

Pack. 14: 12.1 M State of value Rs.


Total: 22.1 M 10.8 million [started
in the year 1991-92
and completed (95%)
in the year 1992-93].
For package 14 KKK
in LL Division MM
State of value Rs.
13.5 million [started
in the year 1991-92
and completed (90%)
in the year 1993-94].
The updated costs of
the above works at
1994-95 rate are Rs.
13.07 million and
Rs. 14.85 million
respectively.

3. 4.5 A(c) Executed the Bidder


following qnty. of satisfies the
works: criteria fully.
(i) WBM: 2,12,659 Sq. m. in
Pack. 12: 80,000 1990-91
Pack. 14: 95,000
Total : 1,75,000

(ii) BT: 2,12,659 Sq. m. in


Pack. 12: 80,000 1990-91
Pack. 14: 95,000
Total: 1,75,000

Evaluation of Bids under NCB 72


NCB Evaluation

4. 4.5 B(a) Availability of Available eqpt. Bidder


critical eqpt. O H P Total satisfies the
Roller: 7+7=14 10 3 1 14 requirement
BT Boiler: 3 - - 3
(4+4)/3=2.7 say 3
BT Mixer: 2 1 - 3
(3+3)/3=2
Water Tankers: 7 - - 7
3+3=6

5. 4.5 B(b) Availability of Available: Mr. L. Bidder


Project Manager Retd. S.E with 35 satisfies the
of not less than years experience. requirement
five years exp.: Mr. M B.E with 15
One each for both years exp. Mr. N.
packages B.E with 12 years
exp.

6. 4.5 B(c) Liquid assets Rs. 5.5 M from Bidder


and/or credit Canara Bank satisfies the
facilities: requirement.
Rs. 1.75+1.9=Rs.
3.65M for both
packages

Note: WBM - Water bound macadam; BT - Black


topped; O - Owned; H - Hired or leased; P - To be
purchased out of Advance.

Evaluation of Bids under NCB 73


NCB Evaluation

The resources and experience of the Bidder in his


name has only been considered. Sub-contractors’
experience and resources have not been taken
into account in determining the Bidder’s
compliance with the qualifying criteria.

15. Check for Bid capacity:

The assessed Bid capacity of the lowest


responsive bidder is computed as follows:

Assessed available Bid Capacity = (A*N*1.5 -


B)

A = Maximum value of civil engineering works


executed in any one of the last five years
ie.Rs.39.1 M at 1994-95 rates;

N = Number of years prescribed for the


completion of works of this package i.e. 24
months- 2 years;
B = Value at 1994-95 price level of existing
commitments and on-going works to be
completed in the next 2 years i.e. Rs.62 M

Assessed available Bid Capacity = 39.1*2*1.5 -


62 = Rs 55.3 M

Evaluation of Bids under NCB 74


NCB Evaluation

The proposed contract value of the Packages 12


and 14 is Rs.23.12 +26.32 = 49.44 M.

Hence the assessed Bid Capacity is more than the


proposed value of the contracts to be awarded.
Thus the second lowest evaluated responsive
bidder for Package 12 -M/s. D. Construction
Company satisfies the Bid Capacity criteria also.

The bid of M/s. D Construction Company is thus


determined to be substantially responsive to the
bidding document and has offered the second
lowest evaluated bid price. It is eligible in
accordance with Clause 3 of ITB and meets the
qualification requirements prescribed in Clause 4
of ITB

Construction Methodology

M/s D construction Company has given acceptable


construction methodology in accordance with ITB clause
4.3(k)
Or
The Comments on the proposed construction methodology
of M/S D Construction co is attached. This will be
communicated to them in the letter of acceptance for
updating the methodology before signing of the agreement.

Comment on Unbalanced bids for this bid from M/S D as


given in Para 11.

Evaluation of Bids under NCB 75


NCB Evaluation

Comments on sub- contracting proposed by bidder in


response to Para 4.3 of ITB –what is the %age?, whether
this is acceptable? Are proposed subcontractors qualified as
required executing that job etc?

16. Recommendation:

The Government of XXX proposes to award the contract


for Package 12 to the second lowest evaluated responsive
bidder M/s. D Construction Company. The bid amount is
Rs.237, 56,267. He has offered a discount of one percent
if the bid is awarded within 60 days. The award is being
made well within the period of 60 days. Though the
discount was not considered for evaluation, being
conditional, it is proposed to avail the same, as the
bidder happens to be the lowest responsive qualified
bidder. The bid amount is Rs.235, 18,705 (after availing
of the discount of one percent offered by the bidder) with
the following important features of the bid.

- Mobilization advance (5% Rs.11, 75,935;


of contract value)

- Equipment advance (10% Rs.23,51,870;


of contract value)

- Initial Performance (5% of contract


security value plus
additional security

Evaluation of Bids under NCB 76


NCB Evaluation

for unbalanced
bids…………..) -
Rs.11,75,935;

- Retention money 6% of the gross amount


of each running bill
subject to a maximum
of 5% of the contract
amount;

- Price adjustment As per Clause 47 of


bidding document and
formula as given in the
Contract Data;

- Stipulated period of 24 months inclusive of


completion rainy season; and

- Bid validity October 14, 1994.

We seek the no-objection of the Bank for award


of the Contract.

Signature of the Evaluating Officer

Encl: Annexure I to VI

Evaluation of Bids under NCB 77


NCB Evaluation

NR/ls Sunday January 31,2011


/conversion/tmp/scratch/435976784.doc

Evaluation of Bids under NCB 78

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