Question

What criteria are used to evaluate procurement bids? How are these criteria defined?

Answer 1

Criteria for Evaluating procurement bids:

Preliminary examination

Verification: The validity of the Application/Bid/Proposal requires that all relevant forms be signed by authorized person or persons. If the Applicant/Bidder/Proposer is a joint venture, the joint venture agreement must be submitted; if the Applicant/Bidder/Proposer is an agent, an authorization from the supplier or manufacturer must be provided in addition to any documentation required of the supplier or manufacturer itself.

Eligibility: All goods and services shall originate from eligible source countries. In the case of plant and equipment, this eligibility test is applied only to the finished product offered in the Application/Bid/Proposal and to its major and clearly identifiable components.

Bid/Proposal Security: The SPD may require submission of a Bid/Proposal security. If so, the Bid/Proposal security must conform to the requirements of the SPD, and it must accompany the Bid/Proposal.

Completeness of Application/Bid/Proposal: Unless the SPDs have specifically allowed Applicant/Bidder/Proposers to quote for only select items or for only Section II. Substantial responsiveness Guidance – Evaluation Criteria 6 partial quantities of a particular item—those not offering all of the required items should ordinarily be considered nonresponsive. However, under works contracts, missing prices for occasional work items are considered to be included in prices for closely related items elsewhere.

Technical and Commercial Qualifying criteria

Prequalification and Initial Selection

Prequalification

a) Eligibility i. Nationality ii. Conflict of Interest iii. Bank Eligibility iv. United Nations resolution or Borrower’s country law b) Historical Contract Non-Performance i. History of Non-Performing Contracts ii. Suspension Based on Execution of Proposal Securing Declaration by the Employer iii. Pending Litigation iv. Litigation History c) Financial Situation and Performance i. Financial Capabilities ii. Average Annual Turnover d) Experience i. General Experience ii. Specific Experience.

Initial Selection

a) Eligibility i. Nationality ii. Conflict of Interest iii. Bank Eligibility iv. United Nations resolution or Borrower’s country law b) Historical Contract Non-Performance i. History of Non-Performing Contracts ii. Suspension Based on Execution of Proposal Securing Declaration by the Employer iii. Pending Litigation iv. Litigation History c) Financial Situation and Performance i. Financial Capabilities ii. Average Annual Turnover d) Experience i. General Experience ii. Specific Experience e) Past performance i. Number of similar contracts ii. Timeliness of delivery. Management capability (policy, systems, practice) i. Management facilities ii. Financial management iii. Risk management iv. Health and safety management v. Innovation vi. Sustainable business b) Contract / Project Management Capability (policy, systems, practice) i. Contract/Project management ii. Scope of human resources and structure assigned to contract/project management iii. Budget and financial management iv. Risk processes to mitigate and manage v. Value engineering, continuous improvement c) Employer’s requirements i. Full understanding of the Employer’s Requirements ii. Practical and realistic preliminary approach and methodology iii. Realistic preliminary timeline/delivery schedule iv. Effective risk identification d) Sustainable Procurement i. Sustainable procurement (policy and systems) ii. Track record of delivering successful sustainable procurement result/s (actual examples to be provided) iii. Sustainable procurement accreditation from a recognized body iv. Sustainable procurement award from a recognized body.

Evaluation of Bid/Proposal Cost

• Adjusted Bid/Proposal price
• Life-cycle costs
• Unbalanced, front loaded and Abnormally low bids/proposals

Rated-Type Criteria

Prioritization of rated criteria

a) Start by creating a table as per the example below with each criteria being identified as a letter in alphabetical order; b) Insert the criteria into the matrix twice – one in the horizontal rows and once in the vertical columns; c) Take each pairing in turn. Ask the evaluation team to determine which of the two compared against each other is more important in this procurement e.g. compare criterion ‘A’ against ‘B’. If the team decide that ‘B’ is most important then insert Section V. Rated-Type Criteria the letter ‘B’ in the box. If the evaluation team decides that both criteria are equal then insert A and B; d) Count the total number of ‘A’s, ‘B’s ‘C’s etc; e) The letter with the highest count is the most important and the letter with the lowest count is the least important; f) Prioritize as 1st, 2nd, 3rd etc. on the basis of the highest count so that each criterion is ranked against the other; and g) Discuss and agree points or percentage weightings. When combining with price, the total weightings of all rated criteria other than price should normally not exceed 30% but it may be set as high as fifty percent (50%) if justified to achieve VfM.

Evaluation of Technical scores

a) The technical features to be evaluated are generally defined below and specifically identified in the Proposal Data Sheet (PDS): i. to what extent that the performance, capacity, or functionality features meet or exceed the levels specified in the performance / functional requirements and/or influence the life-cycle cost and effectiveness of the Plant. Guidance – Evaluation Criteria 17 ii. quality of Technical Proposal in terms of method statement, key personnel, access to key equipment, site organization, safety, quality assurance, mobilization schedule, Implementation Schedule and any other activities as specified by the Employer and based on the proposers experience. iii. Any sustainable procurement requirement if specified in the Employer’s Requirements. b) Each technical feature may include sub criteria as specified in the PDS. The scores to be given to each technical feature and sub criteria are specified in the PDS.