Transco - NTS Asset Development Procedure No PSP19

Title: Contract Award Presentation Procedure Issue: 1

Amendments Record

Issue Prepared by Approved by Date Changes

0 Colin Overington Bob Wood Feb 2000 Initial Issue
1 Colin Overington Bob Wood Mar 2000 Front cover and Amendments
Record added

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Transco - NTS Asset Development Procedure No PSP19
Title: Contract Award Presentation Procedure Issue: 1

Contents

1.0 PURPOSE

2.0 STRUCTURE
2.1 Selection of Tenderers
2.2 Tender Evaluation
2.3 Base Tender Information - 2 short listed tenderers
2.4 Risk Workshop
2.5 Revisit the Original Technical and HS&E Evaluations
2.6 Recommendation

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Transco - NTS Asset Development Procedure No PSP19
Title: Contract Award Presentation Procedure Issue: 1

1.0 PURPOSE

The purpose of the presentation is to:

i) demonstrate that a robust and equitable tender selection and evaluation process
has been used to provide a contract award recommendation.

ii) to provide the opportunity and mechanism for all interested parties within
NTS and Support Services to challenge and review the process and
recommendation.

iii) to ensure that NTS is applying an appropriate, consistent and defensible

approach to tender evaluation and contract award.

2.0 STRUCTURE

2.1 Selection of Tenderers

The presenter must clearly demonstrate how the tender list was generated from the
AVL. If contractors were eliminated or excluded during this process then the reasons
and methodology must be provided. Confirmation must also be provided that the final
tender list was jointly approved by the NTS Senior Project Manager and P&L.

2.2 Tender Evaluation

The purpose of the initial tender evaluation process should be to provide a short list of
two tenderers for further evaluation. For the purpose of the presentation, all tenderers
must be identified as Tenderer A,B,C,D,E etc. No tenderer must be identified by
name. A single table must be presented which provides the following information for
all tenderers:

i) the commercial evaluation criteria.

e.g. tender price, activities schedules etc.
ii) the technical evaluation criteria.
e.g. programme.
iii) the weighting's against which the evaluation was undertaken.
iv) the scores achieved by each tenderer.
v) a Health, Safety and Environmental evaluation shown as a Pass or Fail (no %
scores to be used).

The table should highlight the two short listed tenderers. (see PSP18 for additional
information)

2.3 Base Tender Information - 2 short listed tenderers

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Transco - NTS Asset Development Procedure No PSP19
Title: Contract Award Presentation Procedure Issue: 1

The original base tender prices should be provided (i.e. submitted and normalised
tender price). Any changes to the scope of work or clarifications which have led to a
change in this price must be clearly identified. For example.

Tenderer A.
Normalised Tender £ 8m
Post tender change to temp fencing requirements £ 0.25m
Post tender price £ 8.25m
NB: No additional risks should be included in this part of the process. e.g. If the
evaluation team forecast that a significant amount of additional land drainage works
may be required which will increase a tenderers provisional sum for drainage works
by £0.3m then include this in the risk assessment only (else risk will be evaluated
twice). Highlight the difference between the post tender prices for each of the short
listed tenderers.

2.4 Risk Workshop

Provide the P50 figures for the two short listed tenderers which have been derived as
a result of the contractual Risk Workshop. Highlight the difference between the P50
figures between each tenderer. In addition, the overall Project P50 figure should be
highlighted - i.e. is there an increase/decrease as a result of the contractual P50
figures.

2.5 Revisit the Original Technical and HS & E Evaluations

Clearly demonstrate that, during the course of post tender negotiations, efforts have
been made to clarify and seek further information on the technical aspects of the
tenderers submission such that the original tender evaluation scores (as presented in
the table at the start of the presentation) can be revised/improved. This process must
also be applied to the HS&E aspects of the original submission and subsequent
improvements clearly highlighted.

2.6 Recommendation

On the basis of the process undertaken in steps 2.1 to 2.5 provide a recommendation
for award of contract.