PWD Vol-2, Chapter-9, Step 6 Page 9-15 to18

Step 6. Evaluation of Bids
Principles of Evaluation

The purpose of the bid evaluation process is to determine the lowest evaluated substantially responsive bid in accordance with the terms and conditions of the bidding documents. Bids shall be evaluated by the Bid Evaluation Committee established by the implementing agency. It is recommended that at least one of the implementing agency’s technical staff who was involved in the engineering design be included in the Committee. In complex contracts it is recommended that an engineering consultant be retained to assist the Committee. After the opening of bids, information relating to the examination, clarification and evaluation of bids shall not be disclosed to bidders or other persons not officially concerned with the process until the successful bidder is notified of the award of contract.

The Bid Evaluation Committee may need to request clarification of bidders concerning ambiguities or inconsistencies in the bids. Such requests shall be in writing, and no change in the price or scope of the originally requested works shall be sought or accepted, except for the correction of arithmetic errors. The responses from bidders shall be in writing. No circumstances shall justify meetings or conversations between the Bid Evaluation Committee and the bidders during the bid evaluation process. Bidders frequently attempt to contact the Bid Evaluation Committee, Project Manager or the implementing agency to query progress of evaluation, offer unsolicited clarifications, etc. Receipt of any further information shall be acknowledged as to receipt only. Evaluation of bids shall be on the basis of the information in the bids alone.

Standard Guide on Bid Evaluation

A Standard Guide on Bid Evaluation and supporting evaluation guide are provided in PWD Part III. This document is based on the Asian Development Bank Guide on Bid Evaluation, June 1998 edited to apply to Nepal. It incorporates accepted international principles and practices of bid evaluation. This document shall be used for evaluating all types of competitive bids received in domestic and donor-assisted projects subject to:

• The procedures may be simplified for use in small contracts using quotations/sealed quotations/public bidding, although the basic principles of fair comparison remain unchanged.
• Individual donors may require use of their own bid evaluation forms and procedures, which may differ in detail.

A summary of the bid evaluation process is given below. Detailed instructions and forms are provided in the Standard Guide on Bid Evaluation.

PPA 2007; Chapter 3, Section 23, 24, 25,26

23. Examination of Bids:

(1) The Public Entity shall have to submit to the evaluation committee the bids opened pursuant to Section 22.

(2) The committee shall, prior to evaluating the bids submitted pursuant to Sub-section (1), examine the bids in order to ascertain the following matters:-
(a) Whether documents establishing that the bidder is qualified under law to submit the bid are submitted or not,
(b) Whether the bid is complete in accordance with the instructions to bidders set forth in the bidding documents or not and whether it is signed by the bidder or by the bidder’s authorized agent or not,
(c) Where a bid security is required to be submitted along with the bid, whether a bid security of such type, period and amount as set forth in the bidding documents is accompanied with the bid or not,
(d) Whether the bid is substantially responsive to the technical specifications set forth in the bidding documents and the terms and conditions of procurement contract attached with the bidding documents or not.

(3) In examining the completeness of bids pursuant to clause (b) of Subsection (2), the following matters shall be examined:-
(a) Whether a power of attorney for the authorized agent or local agent of the bidder is submitted or not,
(b) Where a joint venture agreement is necessary, whether such agreement is submitted or not,
(c) Whether documents establishing the eligibility of the bidder and of goods mentioned by the bidder are submitted or not,
(d) Whether necessary document relating to the qualifications of the bidder is submitted or not,
(e) Where the bidding documents require the submission of a rate analysis, whether such rate analysis is submitted or not,
(f) Other matters as prescribed.

(4) The Public Entity may, in the course of examining the bids pursuant to this Section, ask bidders for necessary information.

(5) The concerned bidder shall have to provide the information sought by the Public Entity pursuant to Sub-section (4) to the Public Entity, and in providing such information, no change or alteration in the bid price or other substance of the bid shall be allowed. to this Section, the Public Entity may correct such an error, and where, in
making such correction, there exists a discrepancy between unit rate and total
amount, the unit rate shall prevail, and the total amount shall be corrected as per
the same rate.
(9) Where there is a discrepancy between figures and words in a bid
submitted by a bidder, the amount in words shall prevail.
(10) Where any error is corrected pursuant to Sub-section (8) or (9),
information of such correction shall be communicated to the concerned bidder.

24. Non–procession of Bids:

Bids having following noncompliance shall not be processed:
(a) Where it is not sealed,
(b) Where it is not submitted within the time frame,
(c) The bids withdrawn pursuant to Section 19,
(d) If it is not in accordance with Sub-section (2) of Section 23,
(e) The bids submitted by mutual collusion pursuant to Sub-section (6)
of Section 26,
(f) The bids cancelled pursuant to Sub-section (7) of Section 23.

25. Evaluation of Bids:

(1) All submitted bids other than those separated for nonprocession pursuant to Section 24, shall be included for evaluation.

(2) Where a bid is found containing minor deviations in the matters such as the technical specifications, descriptions and characteristics etc. so as not to reject the bid, the value of such deviations shall be quantified, to the extent possible, and included in the evaluation of bids pursuant to Sub-section (1).

(3) Where the value of minor deviations under Sub-section (2) exceeds fifteen percent of the bid price of the bidder, such a bid shall be deemed to be substantially non-responsive; and shall be excluded from evaluation.

Explanation: For the purposes of this Section, the words “minor deviations” mean such deviations that do not materially depart from the matters such as the technical specifications and descriptions as set forth in the bidding documents.

(4) Where invitation to bid has been made after determination of prequalification, the bids submitted by the bidder other than the pre-qualified bidders shall be excluded from evaluation under Sub-section (1).

(5) Bid shall be evaluated in accordance with the criteria and methodology set forth in the bidding documents; and in carrying out such evaluation, the bid with the lowest bid price shall be determined by making comparison of the evaluated price of every bid with the evaluated price of the other bids.

(6) The qualifications of the bidder of the bid having the lowest bid price under Sub-section (4) shall be verified in order to ascertain whether it conforms to the qualification criteria set forth in the bidding documents or not.

(7) Where on examination, the qualification of the bidder of the bid having the lowest bid price pursuant to Sub-section (4) is in conformity with the qualification evaluation criteria set forth in the bidding documents under Subsection (5), such bid shall be the lowest evaluated substantively responsive bid. Where, on examination, the qualification of such bidder is found not to be in conformity with the qualification as evaluation criteria set forth in the bidding documents, such bid shall be excluded from evaluation; and the qualification of the next bidder having the next lowest bid price shall be examined on the same grounds respectively.

(8) The evaluation committee shall prepare an evaluation report stating, inter alia, the criteria and methodology of evaluation of the lowest evaluated substantially responsive bid pursuant to Sub-section (6) and submit the report to the Public Entity.

26. Rejection of Bids or Cancellation of Procurement Proceedings:

(1) The Public Entity may, in the following circumstances, reject all bids or cancel the procurement proceedings:-
(a) If none of the bids are substantially responsive pursuant to clause (d) of Sub-section (2) of Section 23,
(b) If the bid price of the lowest evaluated substantially responsive bid is substantially above the cost estimate, or
(c) If requisitioned goods, construction works, consultancy services or other services are no longer required.

(2) Notwithstanding anything contained in Sub-section (1), no bid shall be rejected or re-bidding shall be invited only for the reason that only a few bids are or only one bid is substantively responsive.

(3) The Public Entity shall have to communicate to all the bidders a notice along with the reason for the rejection of bids or cancellation of the procurement proceedings pursuant to Sub-section (1).

(4) Where any bidder requests, within thirty days of the communication of notice pursuant to Sub-section (3), for grounds for the rejection of all bids or rejection of the procurement proceedings, the Public Entity shall have to communicate such information to that bidder.

(5) In making re-invitation to bid because of non-submission of any bid in response to an invitation to bid or cancellation of all bids or cancellation of the bid proceedings pursuant to Sub-section (1), the modification shall also be carry out in the bidding documents, technical specifications, cost estimate and terms and conditions of procurement contract as per necessity by reviewing the reasons for such rejection of bids or cancellation of the bid proceedings

(6) Notwithstanding anything contained elsewhere in this Section, if is proved that the bidder has submitted bid by collusion among the bidders, such bid shall be rejected.

PPR -2007, Chapter 5,Rule 60 & 61,62,63,64,65 and 66.

60. Examination of Completeness of Bids:

In examining the completeness of a bids, the evaluation committee shall, in addition to the matter set forth in Sub-section (3) of Section 23 of the Act, examine the following matters:-
(a) Whether the bidder is involved individually or as a partner of a joint venture in more than one bid or not,
(b) Whether the bidder is disqualified for participation in procurement proceedings pursuant to Sub-section (2) and (3) of Section 63 of the Act or not,

(c) Whether the bid is submitted in the bidding documents sold by the concerned Public Entity or other bodies designated by it or not,
(d) Whether the concerned individual, firm, organization or company has submitted the same bidding documents purchased by himself/herself or not.

61. Evaluation of Bids:

(1) Where in an international level bidding, the bidding documents provide that the bid price may be expressed in various currencies, the evaluation and comparison of bid shall have to be done by converting the price of such bids into a single price according the exchange rate and currency as specified in the same document.

(2) In evaluating and comparing a bid, comparison shall have to be made by fixing the quoted price excluding Value Added Tax.

(3) Except as provided by the prevailing laws and these Regulations, information relating to the examination of bid, the information asked or received from the bidders in the course of such examination and the evaluation and comparison shall not be provided to any bidder or any other person not involved in the decision making process officially.

(4) The evaluation committee shall have to evaluate the bid included for evaluation pursuant to Sub-section (1) of Section 25 of the Act in accordance with the criteria and method set forth in the bidding documents of such bid.

(5) While evaluating a bid pursuant to Sub-rule (4), the technical, commercial and financial aspect of such a bid shall be evaluated.

(6) A bid having minor deviations, and having no material deviations to cause any serious effect upon the scope, quality, characteristics, terms and conditions, performance or any other requirements stated in the bidding documents and if acceptable to the Public Entity shall be considered to be substantially responsive bid and if, in evaluating such bid, any effect is caused to the cost, the evaluated amount of bid shall be worked out by ascertaining the price of such effect on an equal basis and by adjusting the same to the quoted price of the bid.

(7) The evaluated price of a bid found out pursuant to Sub-rule (6) and Rule 62, 63 and 64 shall be used only for the purpose of comparing bid and shall not be included in procurement contract price.

(8) If discrepancy of price or any other matter is found in the original copy and the duplicate copy of a bid, the price or matter set forth in the original copy shall be valid.

(9) While ascertaining the price of minor deviation pursuant to Sub-rule (6), the evaluation committee shall ascertain on the basis of the cost estimate of the concerned work or prevailing market price or interest rate. Where such cost estimate, prevailing market price and interest rate are not definite, the price shall be determined on the basis of average price of the same items stated in other substantially responsive bids.

(10) A bidder shall not be consulted in respect of the rationality of the price to be determined pursuant to this Rule.

62. Evaluation of Technical Aspect of Bids:

(1) While evaluating the technical aspect of a bid pursuant to Sub-rule (5) of Rule 61, the evaluation committee shall have to evaluate the following matters:-

• Scope of the supply of goods, construction works or other services,
• Technical specifications and operating and performance characteristics of key goods, construction works or other services, and
• Warranty period.

(2) If any discrepancy is found, in evaluating a bid pursuant to Sub-rule (1) between the matters set forth in the bidding documents and the matter stated by the bidder in the bid, the evaluation committee shall have to note such discrepancy as well.

(3) The price of the discrepancy under Sub-rule (2) shall be ascertained by computing in accordance with the criteria and method set forth in the bidding documents.

63. Evaluation of Commercial Aspect of Bids:

(1) After the technical aspect of a bid is evaluated pursuant to Rule 62, the evaluation committee, while evaluating the commercial aspect of such bid, shall have to evaluate pursuant to Sub-rule (5) of Rule 61 in the following respects:-

• Period for supply or completion of goods, construction works or other services,
• Terms and conditions of payment,
• Liquidated damages to be paid by the bidder for not completing work on time and the bonus entitled to for completing the work before time by the bidder,
• Bidders obligations towards warranty,
• Obligations to be fulfilled by the bidders,
• If the bidder has added any terms and conditions to the proposed procurement contract, such terms and conditions,

(2) While evaluating pursuant to Sub-rule (1), if a discrepancy is found in the matter stated in the bidding documents and in the matter stated by the bidder in bid, the evaluation committee shall note such discrepancy as well.

(3) The evaluation committee shall ascertain the price of discrepancy under Sub-rule (2) by computing as per the criteria and method set forth in the bidding documents.

64. Evaluation of Financial Aspect of Bids:

(1) After completion of the evaluation of the technical and the commercial aspects of a bid pursuant to Rule 62 and 63, financial aspect of such bid shall have to be evaluated.

(2) In evaluating financial aspect pursuant to Sub-rule (1), the evaluated price of a bid shall be fixed by determining the price of the necessary matters out of the matters of technical and financial aspects and according to necessity of the following matters as well in accordance with the criteria and method set forth in the bidding documents:-

• Inland transport cost,
• Technical features.

(3) While evaluating technical feature pursuant to clause (b) of Sub-rule (2), the evaluation committee shall evaluate only the minimum rate, capacity or output where a bid is submitted quoting the rate, capacity and output higher than the rate, capacity and output relating to procurement set forth in the bidding documents.

(4) Where the bidding documents provide that preference shall be given to domestic goods and local construction entrepreneur, the evaluation committee shall, in evaluating financial aspects of bid, have to ascertain the evaluated bid price by computing the amount of the preference to be given to the domestic goods and construction entrepreneur and then adding such amount to the quoted price of foreign bidders.

(5) In evaluating bids, the evaluation committee shall not consider the spare parts recommended by the bidders.

65. Special Evaluation of Bids of Construction Work:

(1) In evaluating the bid of a construction work, the evaluation committee shall evaluate the following matters in addition to the matter set forth in Rules 62, 63 and 64:-

• Whether the work plan, performance Schedule and mobilization time of the construction work is consistent with the bidding documents or not,
• Whether the unit rates stated by the bidder for items contained in the bill of quantities is reliable or not,
• Whether or not the quoted price is imbalanced for the following reasons:-

1. For the reason of unusual high rate quoted by the bidder for an item of the work to be carried out at the initial stage of the procurement contract, or

1. For the reason of unusual high rate quoted by the bidder for an item in the bill of quantity believed by him/her to have been underestimated

(2) The evaluation committee shall carry out an examination in the condition referred to in clause (c) of Sub-rule (1) or in respect of whether or not the bidder has quoted so low bid price that s/he cannot complete the work satisfactorily or has quoted low price by wrongly understanding or misunderstanding the scope or technical specifications of construction works or has stated higher front loading for the work to be carried out at the preliminary stages. Where low price is so quoted, the evaluation committee shall have to ask for clarification along with a rate analysis from such bidder.

(3) The evaluation committee may recommend the Public Entity, for acceptance of bid by taking additional performance security equivalent to an amount of eight percent of his/her quoted bid price if the clarification sought pursuant to Sub-rule (2), is found to be satisfactory and for rejection of such bid if the clarification is not found to be satisfactory.

(4) The additional performance security taken pursuant to Sub-rule (3) shall be returned after the payment of final bill.

66. Report to be Submitted: The evaluation committee shall prepare a report of the examination and evaluation carried out by it pursuant to Rules 60, 61, 62, 63, 64 and 65 containing detailed analysis thereof and the following matters and shall have to submit such report to the Public Entity within fifteen days of the start of evaluation work:-

• Name and address of the bidder,
• The total quoted price of the bidders and currency,
• If an error has been corrected pursuant to Sub-section (8) and (9) of Section 23 of the Act, the total quoted price ascertained after the correction of error and the currency,
• If the Muchulka (minutes) of the opening of financial proposal mentions that a bidder has offered to provide any discount, the statement that the evaluation committee has adjusted the amount so offered for discount,
• The price used for comparison pursuant to clause (f) of Sub-section (2) of Section 13 of the Act and the amount determined based on the exchange rate of the referred date,
• Grounds found from the examination made pursuant to Sub-sections (2), (3), (4), and (6) of Section 23 of the Act,
• The criteria and methodology of the lowest evaluated substantially responsive bid pursuant to Sub-section (8) of Section 25 of the Act.

 

 

SBD (for medium contract for construction of bridges) Section III Heading E Bid Opening and Evaluation clause 24 to 29

24. Process to Be Confidential

24.1 Information relating to the examination, clarification, evaluation and comparison of Bids and recommendations for the award of contract shall not be disclosed to Bidders or any other persons not officially concerned with such process until the award to the successful Bidder has been announced.

25. Clarification of Bids and Contacting the Employer

25.1 To assist in the examination, evaluation and comparison of Bids, the Employer may, at the Employer’s discretion, ask any Bidder for clarification of the Bidder’s bid, including breakdowns of unit rates. The request for clarification and the response shall be in writing or by facsimile, but no change in the price or substance of the bid shall be sought, offered, or permitted except as required to confirm the correction of arithmetic errors discovered by the Employer in the evaluation of the Bids in accordance with Clause 27.

25.2 Subject to Sub-clause 25.1, no Bidder shall contact the Employer on any matter relating to his bid from the time of the bid opening to the time the contract is awarded. If the Bidder wishes to bring additional information to the notice of the Employer, he should do so in writing.

25.3 Any efforts by the Bidder to influence the Employer in the Employer’s bid evaluation, bid comparison or contract award decisions may result the rejection of the Bidder’s bid.

26. Examination of Bids and Determination of Responsiveness

26.1 Prior to the detailed evaluation of Bids, the Employer will determine whether each bid (a) meets the eligibility criteria defined in Clause 3; (b) has been properly signed; (c) is accompanied by the required securities; and (d) is substantially responsive to the requirements of the Bidding documents.

26.2 A substantially responsive bid is one which conforms to all the terms, conditions, and specifications of the Bidding documents, without material deviation or reservation. A material deviation or reservation is one (a) which affects in any substantial way the scope, quality, or performance of the Works; (b) which limits in any substantial way, inconsistent with the Bidding documents, the Employer’s rights or the Bidder’s obligations under the Contract; or (c) whose rectification would affect unfairly the competitive position of other Bidders presenting substantially responsive Bids.

26.3 If a bid is not substantially responsive, it will be rejected by the Employer, and may not subsequently be made responsive by correction or withdrawal of the nonconforming deviation or reservation.

27. Correction of Errors

27.1 Bids determined to be substantially responsive will be checked by the Employer for any arithmetic errors. Errors will be corrected by the Employer as follows:
a. where there is a discrepancy between the amounts in figures and in words, the amount in words will govern; and
b. where there is a discrepancy between the unit rate and the line item total resulting from multiplying the unit rate by the quantity, the unit rate as quoted will govern, unless in the opinion of the Employer there is an obviously gross misplacement of the decimal point in the unit rate, in which case the line item total as quoted will govern, and the unit rate will be corrected.

27.2 The amount stated in the bid will be adjusted by the Employer in accordance with the above procedure for the correction of errors and, with the concurrence of the Bidder, shall be considered as binding upon the Bidder. If the Bidder does not accept the corrected amount, the bid will be rejected and the Bid Security may be forfeited in accordance with Sub-Clause 16.6(b).

28. Currency for Bid Evaluation

28.1 Bids will be evaluated as quoted in Nepalese Rupees in accordance with Sub-Clause 14.1, unless a Bidder has used different exchange rates than those prescribed in Sub-Clause 14.2, in which case the bid will be first converted into the amounts payable in different currencies using the rates quoted in the bid and then reconverted to Nepalese Rupees using the exchange rates prescribed in Sub-Clause 14.2.

29. Evaluation and Comparison of Bids

29.1 The Employer will evaluate and compare only the Bids determined to be substantially responsive in accordance with Clause 26.

29.2 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 pursuant to Clause 27;
b. excluding provisional sums and the provision, if any, for contingencies in the Bill of Quantities, but including Daywork,¹⁵ where priced competitively;
c. making an appropriate adjustment for any other acceptable variations, deviations or alternative offers submitted in accordance with Clause 17; and
d. making appropriate adjustments in unit rates to reflect discounts or other price modifications offered in accordance with Sub-Clause 22.5.

 

29.3 Further the employer shall evaluate :

a. Weather the construction work plan, work performance schedule and mobilization period is consistent with the requirement of the bidding document or not,
b. Weather the quoted item unit rates in the Bill of quantities are reliable or not,
c. Weather or not the quoted price is unbalanced due to unnaturally high rates quoted by the bidder for work items to be completed in the initial stages of the contract or for work items whose quantities are assumed by the bidder to be underestimated.

 

29.4 If the bid, which results in the lowest Evaluated Bid price, is unbalanced or frontloaded in relation to the Employer’s estimate of the items of Work to be performed under the contract pursuant to Sub- Clause 29.3, the Employer shall ask the bidder to give clarification with detailed rate analysis for any or all items of the Bill of Quantities. If the clarification is found satisfactory then the Employer shall increase at the expense of the bidder the performance security set forth in Clause 34 by an additional 8% of the quoted amount to protect the Employer against financial loss in the event of default of the successful bidder under the contract and if the clarification is found unsatisfactory then the Employer may reject such bid.

29.5 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.

29.6 The estimated effect of any price adjustment conditions under Clause 46 of the General Conditions of Contract, during the period of implementation of the Contract, will not be taken into account in bid evaluation.

29.7¹⁶

 

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¹⁵ Day work is work carried out following instructions of the Project Manager and paid for on the basis of time spent by workers, and the use of materials and the Contractor’s equipment, at the rates quoted in the bid. For Day work to be priced competitively for bid evaluation purposes, the Employer must list tentative quantities for individual items to be costed against Day work (e.g., a specific number of tractor driver staff-days, or a specific tonnage of Portland cement), to be multiplied by the Bidders’ quoted rates and included in the total Bid Price

 

¹⁶ If the Bidding Documents include two or more lots, add Clause 29.7: “In the case of several lots, pursuant to Clause 29.2(b), the Employer will determine the application of discounts so as to minimize the combined cost of all the lots.”