Step 14: Evaluation of financial proposals
The evaluation of financial proposals shall be made with respect to corrections of arithmetic errors (if any), conversion to a single currency and review of reimbursable expenditures, local taxes and provisional sums to placethe prices of all proposals on the same footing. The details about financial proposal evaluation are in ▬►PPA -2007, Chapter 4, clause 35; ▬►PPR -2007, Chapter 6 clause 80; ▬►PWD Part II, Procedural Directives, Volume A 15.3, step 8.
PPA -2007, Chapter 4, clause 35
35. Evaluation of Financial Proposal:
The financial proposal opened pursuant to Section 34 shall be evaluated as provided here under:-
(a) Where quality and cost method is applied to select the proposal, the technical and financial proposals shall be evaluated in a combined form and the proposal of the proponent who obtains the highest marks in such evaluation shall have to be selected as prescribed.
(b) Where quality method is applied to select proposal, only the proposal of the proponent obtaining the highest marks in the technical proposal shall have to be selected.
(c) Where fixed budget method is applied to select proposal, a proposal having cost above such budget ceiling shall be rejected and the proposal of the proponent who obtains the highest technical marks after falling within such budget ceiling shall have to be selected.
(d) Where least cost method is applied to select proposal, the proposal of a proponent having the lowest cost out of the proponents having obtained minimum marks prescribed for being successful in the technical proposal shall have to be selected.
PPR -2007, Chapter 6 clause 80
80. Evaluation of Financial Proposal:
(1) Except where the documents relating to proposal otherwise provide, for the purpose of evaluation of financial proposal, the service charge in such proposal shall be deemed to have also been included taxes, except the Value Added Tax payable by the consultant pursuant to prevailing law, and such reimbursable expense as consultant's travel, translation of the concerned documents, report printing or overhead cost.
(2) If the evaluation committee finds out any arithmetical error while evaluating financial proposal of each proponent, the Public Entity may correct such error if any, and in so correcting the error, if any discrepancy is found in the unit rate and the total amount the unit rate shall prevail and the total amount shall be corrected as per the same rate. Where an error is so corrected, information there of shall be given to the concerned proponent.
(3) If any discrepancy is found in number and words in the amount quoted by the proponent, the amount quoted in words shall prevail.
(4) If the Muchulka (minutes) of opening a financial proposals states that a proponent has offered to provide a discount to the proposed quoted price, the evaluation committee shall adjust the amount taking into account the offered discount.
(5) After completion of evaluation under Sub-rule (2), (3) and (4), a list of the ascertained quoted price of all the proponents shall be prepared.
PWD Part II, Procedural Directives, Volume A 15.3, Step 8
Step 8. Evaluation of Financial Proposals
The process of evaluation of the Financial Proposal includes checking whether all items of the technical proposals are priced, and correcting computational errors and currency conversions in order to bring all the Financial Proposals to an equal financial footing only then are the Financial Proposals evaluated. The following guidelines shall be followed while evaluating financial proposals for consulting services:
- The Financial Proposal shall be opened publicly in the presence of the consultant representatives who choose to attend.
- The names of the consultant, the Technical Proposal scores, and the bid prices shall be announced and recorded at the public opening of the Financial Proposals. The client shall prepare the minutes of the public opening.
- The financial evaluation committee (consisting of technical, accounting and legal experts) shall review the Financial Proposals and correct any arithmetical errors, convert prices to a single currency (local or fully convertible foreign currency as stated in the request for proposals).
- The conversion of currency shall be done as specified in the TOR.
- For the purpose of financial evaluation, the cost shall exclude contingencies, provisional sums and local taxes, but shall include other reimbursable expenses.
- Prices shall be brought to equal financial footing of all qualified and responsive proposals. If part of the work has been omitted or not priced, on appropriate amount shall be inserted, e.g. budgeted amount or the highest amount in the other financial proposals.
- The authenticity and adequacy of the prices shall be verified with evidence received from authorities, professional societies or other similar projects.