Module Objectives
MODULE 16
INTRODUCTION TO
EVALUATION
GOODS/WORKS
Preliminary examination
Preliminary examination is normally conducted in
accordance with the specific terms contained in the
tender document used.
The exercise determines whether tenders are complete
and responsive to the basic instructions and
requirements of the tender document.
Some of the things to look out for are whether the
tender has been correctly signed and authorised,
erasures additions or changes have been initialed by
the tenderer, the tender security has been submitted,
manufacturers authorisation has been submitted if so
required by the tender document, the correct number of
copies have been submitted etc.
Commercial Responsiveness
Has to do with the tender conforming to aspects of the
tender that relate to the following:
a/ Delivery: this must not be materially different from that
indicated in the tendering document
b/ Payment terms: these should not differ materially from
those that may be indicated in the tender document.
By the end of this module, participants will
be able to:
Describe the processes and procedures
applicable to evaluation of tenders.
Understand the purpose of an evaluation
sheet
Definitions of Responsiveness, Material
and Minor Deviations
Responsiveness
A responsive tender is simply one that conforms to all
instructions, requirements, terms and conditions of the
tender documents.
Technical Responsiveness
Tenders that conform to or exceed the technical or other
specifications of supplies requested by the tender
document can be said to be technically responsive. To
qualify as technically responsive a tender must:
a/ conform to or exceed the specifications or
performance standards as spelt out in the tender document.
b/ meet the requirement of suitability of the specified
goods for their intended use.
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 Material Deviation
A material deviation can be conceptualised as a deviation
that:
a/ affects in a substantial way the scope, quality, or
performance of the works, services or supplies specified
in the tender document
b/ would limit in a substantial way, inconsistent with the
tender documents, the rights of the Procurement Entity or
the tenderers obligations under any resulting contract.
c/ if corrected would unfairly affect the competitiveness of
other tenders which are substantially responsive and
compliant.
Minor Deviation (Contd)
Examples of such minor deviations are
variations in payment terms required,
alternative goods that offer equal or
superior specifications and performance.
2. Discounts
Discounts offered should have been read out
at the tender opening as they would be taken
into account in the process of evaluating the
tenders.
Discounts that are offered after the deadline for
submission of tenders must not be taken into
account as that would be unfair to other
tenderers.
Minor Deviation
does not substantially affect the quality of
supplies listed in tender documents,
does not limit the rights of the Procurement
entity or the tenderers obligations under any
resulting contract
does not affect the competitiveness of other
tenders received if corrected.
Corrections, Discounts and Currency
Conversions
.
1. Corrections
Arithmetic discrepancies regarding quantities,
unit prices and total prices as stated in tender
forms should be corrected using the unit price.
Any resulting contract with the tenderer is likely
to be based on the unit price.
2. Discounts (Contd)
Any prompt payment discount included in the
tender becomes a term of the contract if that
tender is accepted, and utilized by the
Procurement entity.
Subsequent payment is made according to the
terms of the discount. Prompt payment issues
are not considered in evaluating tenders
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3. Currency Conversion
Tenders quoted in various currencies should be
converted to a common single currency. These
amounts should then be converted to a common base (the
currency stated in the tender document), using the
exchange rates on the date and from the source specified
in the tender document for this purpose.
Price comparison
Lowest Evaluated Price
tenders must first be responsive to the minimum
technical specification
the tender offering the lowest price (after considering
factors such as delivery schedule, cost of spare parts
and services [if relevant], contractual deviations, costs
of insurance and inland transportation incidental to
delivery of the goods to their final destination within
Ghana, deviations in payment schedule), becomes
the lowest evaluated price and qualifies for contract
award.

Price comparison (Contd)

Life Cycle Cost
The initial acquisition cost plus the follow-on
ownership cost during the life of the equipment.
The cost for operation and maintenance of the
asset
The follow-on costs should be discounted to net
present value in order to make proper comparison.
The discount rate to be used is usually stated in
the tender document.