11

Module II.

Bidding and Evaluation Process

I. Bidding documents (Stages of bidding & preparation of bidding document)

II. Bid evaluation methods (principles of evaluation and methods)

III. Workshop (Preparation of bidding document & Evaluation of bids)

IV. Assessment of the day

22

а. Stages of bidding

b. Standard bidding documents

b.1 Subject matter of bidding document

b.2 Preparation of bidding document

Bidding documents (Stages of bidding & preparation of bidding

document)/Module II.1/

3

• Establishing the ‘Evaluation Committee’ (EC);

• Defining of procurement method; /Stating the justification except open bidding;/

• Preparing Bidding documents (BDs);

• Publishing of bid Invitation;

• Clarification of Bidding document from bidder

• Pre-bid meeting to ensure the ‘quality’ of Bidding document

• Response to the clarifications and/or

• Amendment to the Bidding document basing on the clarifications

• Bid opening;

• Evaluating of bids;

• Contract award.

M.II.1.а. Stages of bidding SCOPE of EC FUNCTIONS

4

Why we are giving an importance on following 4 actions that should be taken by Procuring entity (PE) in each procurement?1. Clarification of Bidding document from bidder

Bidders should be aware of their opportunity to clarify the requirements given by PE where necessary. In case of any violations, there should be a room to fix it before going so far.

2. Pre-bid meeting to ensure the ‘quality’ of Bidding document

It is helpful for both of PEs and potential Bidders to elaborate and fix the BDs and prepare quality bid as well!

3. Response to the clarifications and/or Amendment to the Bidding document basing on the clarifications

Bidders those who submitted clarification and/or raised the issue, should be informed back from PEs and there also must be measures to take as a response action. For instance, amendment to the BDs…

M.II.1.а. Stages of bidding

5

Are they Bidders, indeed?

Who shall control the bidding procedure?

How we can benefit from the CSOs involving in

to public procurement?

At What stage and to What extent the CSOs

can give input and benefit by involving in to

public procurement implementation?

SELECT THE MOST APPROPRIATE FUNCTIONS

FROM THE LIST ! (Slide #3)

7

Use of Bidding documents

Limited bidding

Request for quotation

/preparing quotation/

Open bidding Bidding documents

/preparing of bid /

Comparison

Direct contracting

Bidding documents

M.I.2 b. Standard bidding documents

8

Content of Standard Bidding Document M.I.2 b. Standard bidding documents

PART I. Bidding ProceduresSection 1 - Instructions to Bidders (ITB)Section 2 - Bid Data Sheet (BDS)Section 3 - Evaluation and Qualification Criteria (EQC)Section 4 - Bidding Forms (BDF)PART II. RequirementsSection 5 - DrawingsSection 6 - Works Requirements (WRQ)PART III. Conditions of Contract and Contract FormsSection 7 - General Conditions (GCC)Section 8 - Particular Conditions (PCC)Section 9 - Contract Forms (COF) Attachment - Invitation for Bids (IFB)

9

Preparation of Bidding documents (BDs)

M.I.2 b. Standard bidding documents

(ITB)(BDS)(EQC)(BDF)(Draw)(WRQ)(GCC)(PCC)(COF)(IFB)

(ITB)(BDS)(EQC)(BDF)(Draw)(WRQ)(GCC)(PCC)(COF)(IFB)

Standard BDs BDs

Produce:

(Draw)(WRQ)(EQC)

Revise:(BDS)(PCC)(IFB)

10

Subject matter of Bidding documents

WHO

• Requirements on Eligibility and Capacity of Bidder

WHAT

• Goods, Works, Services to procure

HOW TO SELECT

• Evaluation principles and method

WHEN/WHERE

• Place to deliver

Biddingrequirements

Contractual requirements

M.I.2 b. Standard bidding documents

Publishing ofBidding

document

WhoWhatHow to selectWhen/Where

Submission of Bid

WhoWhatHow/WhenPrice

OFFER ACCEPTANCE

MUTUAL UNDERSTANDING; NO NEED TO ARGUE DURING TENDERING & CONTRACTING IN

CASE OF QUALITY BIDDING DOCUMENTS!

&

12

Case for 3 minutes:Put sections of SBDs where

appropriate!WHO

WHAT

HOW TO SELECT

WHEN/WHERE

(ITB)(BDS)(EQC)(BDF)(Draw)(WRQ)(GCC)(PCC)(COF)(IFB)

1313

а. Evaluation principles (Evaluation guideline, approved by Minister of Finance #81,2007 )

b. Evaluation stages

c. Evaluation methods

Bid evaluation methods (principles of evaluation and

methods)/Module II.2/

1414

Confidentiality- Personal Confidentiality of Bidders- Possibility of Influence from Bidders

Modification of bid- Before bid submission deadline/YES- After submitting and opening the bids/NO

Clarification of bid- Explanation without changing the Subject matter of

the BidReject non-responsive bid

- Review bid (Article 27, PPLM)- Detailed evaluation on Net Value of the bid (Article

28, PPLM)Bid validity period

- Fixed: 45 days (once to extend with approval of MoF)Evaluation for each package/lot

- Summary of the total evaluated price

Principles M.II.2.а. Evaluation principles

1. Review

All bids submitted before the deadline for bid submission and opened should be reviewed.

2. Detailed evaluation

Technically responsive bids should be evaluated accordingly.

3. Verification

Cross-examination of lowest evaluated bid

M.II.2 b. Evaluation stages

Technically responsive bids

Technically and financially

responsive bidsRanking: I, II, III

Lowest evaluated, technically and

financially responsive BID

1616

I.1. Eligibility of bidder- Conflict of interest, Non-performance and

Litigation history, I.2. Qualification of Bidder

- Prequalification before bid submission- General, Financial and Technical criteria to

meetI.3. Verify the validity of bid

- Signature, Bid formsI.4. Bid security

- Amount and ValidityI.5. Technical responsiveness & Completeness

- Requirements of Bidding document (Draw, WRQ, PCC etc.,)

I. ReviewM.II.2.c. Evaluation methods

1717

II.1. Number of bids to be evaluatedII.2. Correction of arithmetic errors II.3. Miscellaneous cost II.4. Modification or discount of Bid price read-outII.5. Convert into one currencyII.6. AdditionII.7. Evaluation criteriaII.8. Calculation of monetary factsII.9. Conclusion for decision on contract award

II. Detailed Evaluation

M.II.2.c. Evaluation methods

1818

II. Result of Detailed Evaluation

M.II.2.c. Evaluation methods

Bid PriceComparative

Price

III

III

1919

III.1. Domestic Preference

III.2. Conditional Discount

III.3. Re-verification of Qualification

III.4. Alternative bids

III.5. Calculate the Contract Price

III.6. Bid Evaluation report

III. Verification or Examination of Lowest Evaluated bid

M.II.2.c. Evaluation methods

2020

III. Bid Evaluation

M.II.2.c. Evaluation methods

Bid PriceComparative

Price

CONTRACT PRICE

21

PUBLIC PROCUREMENT

Procuring entity

Executor (supplier)

Contract for procuring goods, works and services

Contract regulation

State organizations Private sector

Legislation on procurement Civil Code

22

Special conditions which are necessary to be specified in a procurement contract

• Contract value• Payment conditions and types• Advance payment guarantee’s amount and type • Procuring entity’s supervision and other conditions • Performance guarantee’s amount and type• Commercial conditions • Schedule for supplying goods and executing works

and services • Conditions and methodology for making changes

and reconciliations in the contract

Procurement contract conditions

2323

а. Preparation of Bid invitation and Technical specification for 5 Ambulance Car (20 minutes)

b. Evaluation of submitted bids (15 minutes)

c. Quiz on cases happened in public procurement (10 minutes)

Workshop/Case study

/Module II.3/

2424

Prepare the

1. Bid invitation 2. Technical specification

For Procurement of 5 Ambulance Car,(Budget approved is MNT 60 mln)

Workshop(5 in each group)

а. Preparation of Bid invitation and Technical specification for 5 Ambulance Car (20 minutes)

2525

Bidders A B C D1. Price (ml.MNT)read-out 50.0 56.0 47.0 44.82. Technical Responsiveness- Number of seat (3) + + -+ -- … + + +

+- … + + -+

-

- Fuel consumption 19l 15l 20l 20l(less than 20l/per 100km)

Workshop(5 in each group)

а. Evaluation of submitted bids (15 minutes)

2626

1. If there is only bid submitted, should P.E reject this bid due to non competitiveness?

2. Is lowest price is the aspect of decision to award a contract?

3. How often bidder can modify his/her bid submitted?

4. Do you believe that Government can procure best quality?

5. If you were there, would you go for Best Value in public procurement?

6. Then, how to make it? Explain

(all participants)c. Quiz on cases happened in public procurement (10 minutes)

2727

Express what you learn in

… 3 words

… 5 words

…7 words

Assessment of the Day 1

2828

THANK YOU!

SEE YOU TOMORROW WITH

HOMEWORK