Transcript Evaluation and Qualification Requirements
Evaluation and Qualification Requirements
Evaluation & Qualification Requirements
The success of procurement is measured by obtaining the goods, works, and physical services in a timely manner , at the required quality , and at the best (lowest) possible price the market can offer. To meet this objective, the procurement process conducted by the procuring entity should ensure that the contract is awarded to a bidder who: (i) is capable to perform the contract on time ; (ii) will provide the goods, works and services at the required quality (determination of the responsiveness of the bid) ; and (iii) at the best price conditions.
QUALIFICATION PROCEDURES
PRE-QUALIFICATION
FIRST STEP IN PROCUREMENT PROCESS
APPLICABLE TO LARGE AND COMPLEX CONTRACTS IN:
CIVIL WORKS (e.g. dams, hydropower stations, power transmission lines, pipelines, roads, railways, ports, airports, water treatment plants, etc.)
INFORMATION SYSTEMS (hardware + software)
PRIVATE SECTOR PARTICIPATION (e.g. management contracts, BOT-BOO-BOOT, concession)
ALL PRE-QUALIFIED CONTRACTORS ARE INVITED TO BID
QUALIFICATION PROCEDURES (cont’d)
CLASSIFICATION
PRECONDITION FOR PARTICIPATION IN BIDDING
APPLICABLE TO NATIONAL CONTRACTORS CLASSIFIED BY CATEGORIES OF WORKS IN ACCORDANCE WITH CONTRACT TYPE AND SIZE AND CONTRACTOR QUALIFICATION
ONLY CONTRACTORS BELONGING TO CATEGORY/IES SPECIFIED IN INVITATION TO BID ARE ELIGIBLE TO PARTICIPATE
QUALIFICATION PROCEDURES (cont’d)
POST-QUALIFICATION
LAST STEP IN BID EVALUATION PROCESS
APPLICABLE TO ALL GOODS AND WORKS CONTRACTS
AWARD OF CONTRACT TO QUALIFIED BIDDER WITH LOWEST EVALUATED RESPONSIVE BID
QUALIFICATION PASS-FAIL CRITERIA (cont.d)
1. GENERAL EXPERIENCE
AVERAGE ANNUAL TURNOVER:
“MINIMUM 2 (1,5) OF AVERAGE ESTIMATED COST/YEAR IN LAST - (two to five) - YEARS”
QUALIFICATION PASS-FAIL CRITERIA
2. SPECIALISED EXPERIENCE
SCOPE OF WORKS: SIMILAR TYPE & SIZE OF CONTRACTS SIMILAR CONDITIONS (e.g. climate)
“MINIMUM NUMBER - (one to three) - OF CONTRACTS DURING LAST - (five to ten) -YEARS
QUALIFICATION PASS-FAIL CRITERIA (cont.d)
3. PERSONNEL QUALIFICATIONS
MANAGERIAL AND TECHNICAL KEY POSITIONS:
MINIMUM NUMBER OF SIMILAR PROJECTS SUCCESSFULLY MANAGED BY THE INCUMBENT
MINIMUM NUMBER OF YEARS OF EXPERIENCE (TOTAL AND IN POSITION)
QUALIFICATION PASS-FAIL CRITERIA (cont.d)
4. FINANCIAL CAPABILITIES
PAST PERFORMANCES
LIABILITIES/ASSETS
CASH FLOW REQUIREMENT
“MINIMUM AMOUNT AVAILABLE FOR THE PERIOD IN MONTHS BEFORE PAYMENT IS RECEIVED BY CONTRACTOR
e.g: CW/PS: $240 M. /48 MTHS = $5m*4 MTHS: $20M.
IS: $12M./24 MTHS = $0.5m* 4 MTHS: $2M.
QUALIFICATION PASS-FAIL CRITERIA (cont.d)
5. EQUIPMENT CAPABILITIES
MINIMUM KEY EQUIPMENT LISTED
QUALIFICATION PASS-FAIL CRITERIA (cont.d)
6. CONTRACT COMMITMENTS
CURRENT CONTRACTS COMMITMENTS & WORKS IN PROGRESS
7. LEGAL STATUS 8. LITIGATION 9. REFERENCES
PRE-QUALIFICATION FOR ICB
PRACTICE
LARGE OR COMPLEX CIVIL WORKS
CUSTOM DESIGNED EQUIPMENT
INFORMATION SYSTEMS
INDUSTRIAL PLANT
PRIVATE SECTOR OPERATIONS
SPECIALIZED SERVICES
PRE-QUALIFICATION FOR ICB (cont’d)
OBJECTIVE
SAVES EXPENSE OF BIDDING FOR UNQUALIFIED BIDDERS
IMPROVES INTEREST OF LEADING CONTRACTORS
INDICATES INTEREST OF POTENTIAL CONTRACTORS
ESTABLISHES ELIGIBILITY FOR DOMESTIC PREFERENCE (IF ANY)
REDUCES POTENTIAL FOR CONTROVERSY
PRE-QUALIFICATION FOR ICB (cont’d)
INFORMATION PROVIDED
DESCRIPTION OF WORKS, SIZE OR COST
SCOPE OF CONTRACT
SOURCE OF FINANCE, TERMS OF PAYMENT
IMPLEMENTATION SCHEDULE
ELIGIBILITY, LANGUAGE, PROCEDURES
PRE-QUALIFICATION REQUIREMENTS
PRE-QUALIFICATION FOR ICB (cont’d)
INFORMATION REQUESTED
MINIMUM NECESSARY
AVOID CERTIFICATES USE STANDARD QUESTIONNAIRE
NUMBER PRE-QUALIFIED
ALL FIRMS WHO MEET CRITERIA (NO MAXIMUM)
Bid Evaluation
OBJECTIVE
SECURE GOODS/SERVICES AT MOST ECONOMICAL COST
PRICE ONLY ONE FACTOR OTHER FACTORS
TIME OF DELIVERY/COMPLETION TERMS OF PAYMENT OPERATING COST EFFICIENCY AND COMPATIBILITY OF THE EQUIPMENT AVAILABILITY OF SERVICES AND SPARE PARTS RELATED TRAININIG ENVIRONMENTAL BENEFITS OTHER FACTORS OTHER THAN PRICE TO BE USED FOR DETERMINING THE LEB SHALL BE TO THE EXTENT POSSIBLE EXPRESSED IN MONETARY TERMS, I.E RESALE VALUE.
Evaluation Methodology Commercial Features (cont’d)
TIME OF DELIVERY
EVALUATE LOSS OR GAIN BY LATE OR EARLY DELIVERY
PAYMENT TERMS
EVALUATE VARIATIONS AT SPECIFIED INTEREST/DISCOUNT RATE
Evaluation Methodology Technical Features
OPERATING COST FUEL TRAINING MAINTENANCE COST STANDARDISATION RESALE VALUE /DEPRECIATED COST LIFE CYCLE COST OWNERSHIP COST CAPACITY PRODUCTIVITY
Evaluation Methodology Minimum Technical Specifications
PASS/FAIL CRITERIA
MINIMUM REQUIREMENT
BELOW MINIMUM: REJECTED NO CREDIT FOR BETTER SPEC RESPONSIVE = LEB
MAXIMUM REQUIREMENT RANGE PARAMETERS (MAX <>min)
Life Cycle Cost Methods
COST TO OWN AND OPERATE ITEM DURING ITS USEFUL LIFE
INITIAL PURCHASE PRICE
ADJUSTED FOR EXTRAS, DELIVERY, VARIATIONS IN PAYMENT TERM, ETC.
VALUE FOR ADJUSTMENTS ADDED TO BID PRICE
OPERATING COST DURING LIFE OF ITEM
FUEL, SPARE PARTS, MAINTENANCE (X YEARS)
ANNUAL COST DISCOUNTED TO NPV
OWNERSHIP COST DURING LIFE OF ITEM
ECONOMICAL USEFUL LIFE (X YEARS)
RESALE OR SCRAP VALUE DISCOUNTED TO NPV
Life Cycle Cost Methods
(cont’d)
EFFICIENCY COST METHOD
CAPITALIZE DIFFERENCES IN EFFICIENCY IN OPERATION OF ITEMS i.e. BOILER, TURBINE, TRANSFORMER, ETC. DURING LIFE
PRODUCTIVITY COST METHOD
DETERMINE LIFE CYCLE COST PER UNIT OF OUTPUT FOR COMPARISON PURPOSES
LIFE CYCLE COST OF PLANT (x YEARS) NPV DIVIDED BY TOTAL UNIT OUTPUT OF PLANT
On “Life Cycle Cost” Basis
ALL FIGURES IN USD A B TOTAL EVALUATED INITIAL COST (without preference) FUEL COST FOR 8 YEARS 1 MAINTENANCE COST FOR 8 YEARS MINUS DEPRECIATED COST/ RESALE VALUE LIFE CYCLE COST RANKING 1 DISCOUNTED TO PRESENT VALUE 46,400 44,350 45,000 34,000 46,000 28,000 -2,000 130,400 2 -5,000 113,350 1
Bid Evaluation Using Life Cycle Costing for Procurement of 100 Urban Buses
RELEVANT PART OF THE BID EVALUATION CLAUSES IN THE BIDDING DOCUMENTS
THE EVALUATION AND COMPARISON OF BIDS SHALL BE BASED ON THE LIFE CYCLE COST FOR THE VEHICLES DURING THE FIRST 6 YEARS, WORKED OUT IN THE FOLLOWING MANNER
INITIAL PRICE
CIF PRICE QUOTED FOR BUSES OFFERED FROM ABROAD
EX-FACTORY/EX-SHOWROOM PRICE FOR VEHICLES OFFERED FROM WITHIN THE COUNTRY
Bid Evaluation Using Life Cycle Costing for Procurement of 100 Urban Buses (cont’d)
OPERATING AND MAINTENANCE COSTS
FUEL COSTS SHALL BE COMPUTED ON THE BASIS OF 100,000 KM OF OPERATION PER YEAR AT A FUEL PRICE OF 0.80 USD PER LITER, DISCOUNTED TO NET PRESENT VALUE AT A DISCOUNT RATE OF 10%
Bid Evaluation Using Life Cycle Costing for Procurement of 100 Urban Buses (cont’d)
OPERATING AND MAINTENANCE COSTS
SPARE PARTS COST SHALL BE BASED ON 100,000 KM PER YEAR OF OPERATION, BASED ON THE GUARANTEED FIGURES PROVIDED BY THE BIDDER FOR EACH YEAR, DISCOUNTED TO NET PRESENT VALUES AT A DISCOUNT RATE OF 10 PERCENT
IF GUARANTEED FIGURES ARE NOT PROVIDED, PURCHASER MAY USE ESTIMATED FIGURES BASED ON PAST EXPERIENCE, IF AVAILABLE
Bid Evaluation Using Life Cycle Costing for Procurement of 100 Urban Buses (cont’d)
DEPRECIATED COST
PURCHASER SHALL ESTIMATE THE DEPRECIATED COST OF THE VEHICLE OFFERED BASED ON THE GUARANTEED LIFE PRIOR TO THE FIRST MAJOR OVERHAUL, OR BASED ON PAST EXPERIENCE, BUT IN NO CASE MORE THAN 8 YEARS.
BIDDERS SHALL FURNISH ALL THE DATA REQUIRED FOR THE ABOVE COMPUTATIONS AS FURTHER OUTLINED UNDER CLAUSE OF THE TECHNICAL SPECIFICATIONS
1.
2.
3.
4.
Bid Evaluation Using Life Cycle Costing for Procurement of 100 Urban Buses (cont’d)
ALL FIGURES IN 000’ USD A C INITIAL COST BID PRICE EX-FACTORY/CIF EVALUATION ADJUSTMENT FOR DELIVERY SCHEDULE EVALUATION ADJUSTMENT FOR VARIATION IN PAYMENT TERMS TOTAL OPERATING AND MAINTENANCE COSTS FUEL GUARANTEED COST (AVERAGE) FOR EACH YEAR NPV FOR 6 YEARS SPARES - GUARANTEED COST (AVERAGE) FOR EACH YEAR NPV FOR 6 YEARS TOTAL DEPRECIATED VALUE (DEDUCT) LIFE DEPRECIATED VALUE TOTAL LIFE CYCLE COST RANKING 65,000 6,000 -- 71,000 (8,000) 34,840 (5,000) 21,775 56,615 (6 YRS) 0 127,615 2 70,000 -- 1,000 71,000 (6,000) 26,130 (4,000) 17,420 43,550 (8 YRS) 12,500 102,050 1
Bid Evaluation Using Life Cycle Costing for Oil Palm Plant
RELEVANT PART OF THE BID EVALUATION CLAUSES IN THE BIDDING DOCUMENTS
THE EVALUATION AND COMPARISON OF RESPONSIVE BIDS SHALL BE BASED ON THE TOTAL LIFE CYCLE COST FOR SIX YEARS, PER UNIT OF OUTPUT
THE LIFE CYCLE COST SHALL BE THE SUM OF THE INITIAL PURCHASE PRICE OF THE PLANT AND THE COST OF OPERATION IN ELECTRIC ENERGY FOR SIX YEARS OF OPERATION AT A UNIT COST OF US$ 0.10 PER KWH, DISCOUNTED TO PRESENT VALUE AT 12%
Bid Evaluation Using Life Cycle Costing for Oil Palm Plant (cont’d)
1. INITIAL COST BID EVALUATION AND COMPARISON ALL FIGURES IN 000’ USD A 9,500 C 10,300 (1,200) (1,000) 2. OPERATING COST PER YEAR OPERATING COST FOR 6 YEARS NPV AT 12% 3. TOTAL LIFE CYCLE COST 4,933 14,433 4,111 14,411 4. OUTPUT PER YEAR (TONS) 3,600 5. EVALUATED COST PER TON OF OUTPUT 4.01
6. RANKING 2 4,000 3.60
1 * * A:12 MILLION KWH @.10 PER KWH B:10 MILLION KWH @.10 PER KWH
Evaluation Methodology Merit Point System (NOT recommended by the World Bank )
ALLOCATE WEIGHTS TO DIFFERENT TECHNICAL FEATURES ESTABLISH RELATIONSHIP BETWEEN QUALITY AND PRICE SELECT BID WITH
HIGHEST NO. OF POINTS or LOWEST PRICE PER POINT ADVANTAGE: SIMPLE DISADVANTAGE: SUBJECTIVE ASSIGNMENT OF POINTS
Evaluation Methodology Merit Point System (cont’d) (NOT recommended by the World Bank )
POINT WEIGHTAGES
EQUIPMENT PRICE
SPARE PARTS
TECHNICAL FEATURES
AFTER SALES SERVICE
STANDARDIZATION TOTAL
BIDDING DOCUMENTS
SPECIFIES POINT WEIGHTAGE TYPICAL 65-70 8 - 10 8 - 10 4 - 5 4 - 5 100
Evaluation Methodology Multiple Lots
LOTS INCLUDE ALL ITEMS INCOMPLETE LOTS
> 10% REJECTED < 10% PRICE TO BE ADJUSTED EVALUATION OF EACH LOT (1, 2, …) FROM EACH BIDDER (A, B, C, …) COST OF ALL COMBINATIONS OF LOTS
A(1) + B(2) + C(3) A(1+2) + B(3)
A(1+2+3) LOWEST EVALUATED COST COMBINATION