Physical Infrastructure Construction Procedures, 2077

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Annex 7:
Bid Evaluation Guide For Procurement of Works
Following
NCB Single Stage One Envelope Bidding Procedures

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[Note: The Bid Evaluation Guide is meant to assist in evaluation of the bids for procurement of the works
received following the Single-Stage One-Envelope Bidding Process using the Bidding Documents
prepared following the template of Standard Bidding Document which is a part of Physical Infrastructure
Construction Procedures, 2077. Any changes in the Standard Bidding Documents will necessitate the
review and revision of the guide.]

Final Version 01_January 2021

Table of Content

Description Page No.

1 Introduction 1

2 Bid Evaluation 1

Annexes:
Annexes I: Completeness of Bids
Annex II: Compliance of Bids with Eligibility Requirements

Annex III: Correction of Quoted Bid Prices

Annex IV: Comparative Chart of Quoted Bid Prices (Corrected) and Engineers Estimate

Annex V: Example of Determining the Least Cost Combination

Final Version 01_January 2021

BID EVALUATION GUIDE

1. Introduction
The evaluation of the bids for the procurement of works following National Competitive Bidding with
Single Stage One Envelope Procedures for Works (Engineers estimate of above Rs. 2 million up to Rs.20
million) is covered in this guide.
In principle the evaluation of bids aims to determine substantially responsive bid having lowest evaluated
bid price among the bids received. The evaluation process to determine substantial responsiveness
examines the completeness of bids and bidder's compliance with eligibility and qualification
requirements. The bid prices quoted by substantially responsive bidders are modified and corrected if
necessary in accordance with the provisions of the bid document. These are compared with the engineers
estimate to determine the substantially responsive lowest evaluated bid.
This guide is intended to assist the bid evaluation committee in structured evaluation of the bids. The
specimen forms and formats for use in the bid evaluation process are presented as Annexes of this guide.
To assist in the bid evaluation process, these forms are also given separately as a work book in excel.
2. Bid Evaluation
In case of the procurement of works following the Single Stage One Envelope Procedures (without
qualification) the bids received (electronically or in hard copy) in response to the invitation of bidsare
opened at the time and date mentioned in the bid document. These bids are evaluated following the
provisions mentioned in the bid document. The steps and procedures to be followed for the evaluation of
the bids as well as corresponding clauses of the bid document are described hereunder.
i. Check if any of the bidders is declared blacklisted and ineligible by GON, PPMO then the
technical bid submitted by such bidder shall not be considered for evaluation. (ITB 3.4)
ii. If a natural person or firm/institution/company which is already declared blacklisted and ineligible by
the GoN, check whether the bid is submitted by any other new or existing firm/institution/company
owned partially or fully by such Natural person or Owner or Board of director of such blacklisted
firm/ institution/company. In such case the bid shall not be considered for evaluation. (ITB 3.5)
iii. Ascertain whether a corruption case is being filed to Court against Natural person or Owner or
Board of director of such the firm/ institution/company or a partner of JV, who has submitted the
bid. If yes, request shall be made to GON for instruction and decision on responsiveness of such
bid shall only be taken after considering the instruction received. In the meantime include the
bid in the evaluation process.(ITB 26.5)
iv. The bid shall comprise of a) Letter of Bid; b) Bid Security; c) Company registration certificate; d)
VAT registration certificate; e) Tax Clearance Certificate/ Tax return submission evidence/
evidence of time extension; f) Power of Attorney of Bid Signatory; g) Bank Voucher for cost of
the bid document; h) Joint venture agreement (if applicable); ; i) Completed Bill of Quantities
(BoQ); j) Price Adjustment Table and any additional document if prescribed in BDS. The
completeness of submitted bids shall be ascertained to determine whether all documents
mentioned above are provided by the bidder as part of his bid. The findings shall be tabulated in
the format "Completeness of Submitted Bids", which is presented as Annex I of this guide. (ITB
11and ITB 16)

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 v. During evaluation it may become necessary that clarifications from the bidder are required on
certain matters. In such case the evaluation committee shall submit to the Office Chief a proposal
for seeking clarification. The proposal shall be made with due consideration to the provisions and
limitations set by ITB 24.1. The Office Chief, if satisfied with the proposal shall request the
concerned bidder for clarification in writing. The response received from the bidder shall be taken
into consideration during evaluation as deemed appropriate. (ITB 24.1)
vi. The documents mentioned in (iv) above as part of the bid shall be examined to check their
validity and to ascertain the bidder's compliance with the eligibility requirements mentioned in
clause 2 of Section III Evaluation and Eligibility Criteria of the Bid Document. The Letter of Bid
shall be checked to see that it is completed without any alteration to the text or not. The Letter of
Bid with alterations shall not be accepted. The bid security submitted to meet the eligibility
requirement shall be in the prescribed format for the amount and validity as specified in BDS.
The compliance of submitted Bids with these eligibility requirements shall be tabulated in the
format "Compliance of Bids with Eligibility Requirements", which is presented as Annex II of this
guide. (EEC 2)
vii. The bids which are determined eligible shall be considered for further detailed evaluation. The
prices quoted shall be checked and corrections for any arithmetic errors in the bid prices quoted
shall be made following the provisions of ITB 28. The corrections in the bid prices shall be
tabulated in the format "Correction of Quoted Bid Prices", which is presented as Annex III of this
guide.
viii. The item wise prices (corrected) quoted by individual bidders along with engineers estimate shall
be compared and a price comparative chart shall be prepared. The price comparison shall be
tabulated in the format "Comparative Chart of Quoted Prices (corrected) and Engineers
Estimate", which is presented as Annex IV of this guide. On the basis of the comparison the bid
having lowest evaluated bid price shall be determined. The price adjustment, if applicable shall
not be considered during the price comparison. (ITB 29)
ix. Check whether the prices quoted in the bid with lowest evaluated bid price are seriously
unbalanced or frontloaded. If deemed so recommend the Employer to seek price analysis from the
bidder. Evaluate the price analysis submitted by the bidder considering ITB 29.5 and decide on
the additional performance security as per ITB 29.5.
x. If the Bidding Document allows Bidders to quote separate prices for different contracts and to
award multiple contracts to a single bidder, the lowest evaluated price of the Contract
combinations including any discounts offered in the Letter of Bid shall be determined. The Bid
prices quoted by the Bidders shall be compared on the basis of a contract or a combination of
contracts, or as a total of contracts in order to arrive at the least cost combination for the Employer
by taking into account discounts offered by Bidders in case of award of multiple contracts. In
Annex V: "Example of Determining the Least Cost Combination" of this guide an example for
determining the least cost combination in case of multiple contracts is presented. (EEC 1.1)
xi. The bid evaluation committee shall determine lowest evaluated substantially responsive bid and
prepare the price bids evaluation report using the template provided for this purpose. Also check
and determine if additional performance security has to be recommended. If instructions have
been asked pursuant to ITB 29.7, then evaluation is complete only after instructions are obtained
and its effect on the evaluation of the concerned bidder’s bid is determined. The bid evaluation

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report shall be prepared following the template of Bid Evaluation Report, which is provided for
this purpose as Annex 8 of Physical Infrastructure Construction Procedures, 2077.

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 Annex I: Completeness of Bids

Contract Description :
Contract ID No. :
No. Document Requirement as per
ITB 11 Bid of

Bidder # 1 Bidder # 2 Bidder # 3 Bidder # 4 Remarks

1. Letter of Bid

2. Bid Security/Bank Guarantee

3. Company registration certificate

4. VAT/PAN registration certificate

5. Business Registration Certificate

6. Tax clearances certificate / evidence of

tax return submission/evidence of tax
return time extension
(FY………………)

7. Power of Attorney of Bid signatory

8. Bank Voucher for cost of bid document

9. Joint venture agreement

11. Additional documents

Remarks

Overall Completeness (Yes/No)

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 Annex II: Compliance of Submitted Bids with Eligibility Requirements
Contract Description :

Contract ID No. :

S.No. Criteria and Requirement Bid of Remarks

Bidder # Bidder # Bidder #
1 2 3
1 Eligibility:
1.1 Conflict of interest: No conflicts of interest in accordance with ITB Sub-
Clause 4.3.
1.2 Government/DP Eligibility: Not having been declared ineligible by
government/DP, as described in ITB Sub-Clause 4.4.
1.3 Government-owned Entity: Bidder required to meet conditions of ITB
Sub-Clause 4.5.
1.4 UN Eligibility: Not having been declared ineligible based on a United
Nations resolution or Employer's country law, as described in ITB Sub-
Clause 4.8.

2 Other Eligibility:
2.1 Firm Registration Certificate
2.2 Business Registration Certificate
2.3 VAT and PAN Registration
2.4 TAX clearance Certificate /Tax Return submission evidence/evidence of
time extension for the F/Y…….

2.5 Additional Requirements

3 Completeness of Document
3.1 Self declaration
3.2 Authorisation

3.3 Signature
3.4 Stamp: Pages stamped with Company Stamp
3.5 JV Agreement
3.6 Bids: Only One Bid
3.7 Letter of Bid:
3.9 Cost of Bidding document: Deposit voucher of NRs. ………..

4 Bid Validity & Bid Security

4.1 Bid Validity: 90 days
4.2 Bid Security
4.21 Format: Bid Form
4.22 Amount: NRs.
4.23 Validity: (90)+30 days
4.24 Bank , Reference No. and Issue date

Meets Requirement (Yes/No)

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 Annex III: Correction of Quoted Bid Prices

Contract Description :
Contract ID No. :

Bid of BOQ Item Data Qty Unit Rate Amount Variance Remarks
Description
As submitted
As Corrected
As submitted
As Corrected
As submitted
Bidder #1 As Corrected
As submitted
As Corrected
Total As submitted
As Corrected
As submitted
As Corrected
As submitted
As Corrected
Bidder #2 As submitted
As Corrected
Total As submitted
As Corrected
As submitted
As Corrected
As submitted
As Corrected
Bidder #3 As submitted
As Corrected
Total As submitted
As Corrected

[Note: The reasons for Variance shall be noted in the "Remarks" column of the table.]

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 Annex IV: Comparative Chart of Quoted Bid Prices (Corrected) and Engineers Estimate

Contract Description :
Contract ID No. :
Engineers Estimate Bidder No.1 Bidder No. 2 Bidder No. 3

Item Description Unit Qty Rate Amount Rate Amount Rate Amount Rate Amoun
No. t

subtotal

VAT on (subtotal)

subtotal incl. VAT

PS Items total

Grand Total incl VAT and PS Items

Variance with Engineers Estimate in %

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 Annex V: Example of Determining the Least Cost Combination

1. Let us assume that the bidding process allowed for multiple contracts and that there were
three contract packages and for each same 3 bidders had submitted the bids as summarized
in following table 1.

Table 1: List of Bidders and Quoted (corrected) Bid Prices

Contract Package Bid Price Quoted By Bidder Remarks

M/s. X Ltd. M/s. Y Ltd. M/s. Z Ltd.
1 X1 Y1 Z1
2 X2 Y2 Z2
3 X3 Y3 Z3

2. It was noted that discounts offered by the bidders are as follows:

i) M/s. X Ltd. offers a discount of a % if all three packages are awarded to the bidder.
ii) M/s. Y Ltd. offers a discount of b % if all three packages are awarded to bidder.
iii) M/s. Z Ltd. offers a discount of c % if all three packages are awarded to bidder.

3. It was noted that the lowest evaluated bid prices for packages 1, 2 and 3 were X 1; Y2 and Z3
respectively.

4. The cost combinations for contract packages 1, 2 & 3 will be

i) Combination I ( lowest quoted price for individual package): (X1 + Y2+ Z3)
ii) Combination II ( considering the discount of Bidder X): (X1 + X2+ X3)* [(100-a)/100]
iii) Combination III ( considering the discount of Bidder Y): (Y1 + Y2+ Y3)* [(100-b)/100]
iv) Combination IV ( considering the discount of Bidder Z): (Z1 + Z2+ Z3)* [(100-c)/100]

5. The least cost combination will be the combination having the lowest total amongst the cost
combinations given in clause 4 above.

[Note: It shall be noted that case specific determination of the least cost combination shall
take into consideration the actual discount/ cross discounts as offered by the individual
bidders.]

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