Tendering and Bidding

Tendering Bidding process

Bidding process
– NCB, ICB, tender documents,
tender preparation and
foating

Prepared and Presented by:

Prof. Khem Dallakoti
Institute of Engineering
Tender
Tender is an oer in writing by the
tenderer (the person who oers
the tender) to execute some
specied wor! or to supp"y some
specied goods at certain
rate#amount within a xed time
$rame under certain conditions o$
agreement% This is the rst step
in the $ormu"ation o$ contract%
Purpose of Bidding
 &unds pro'ided $or the proect
imp"ementation sha"" be used on"y $or
intended purpose%
 conomy and e*ciency sha"" be obser'ed –

best 'a"ue $or its money%

 +"" e"igib"e bidders sha"" be gi'en eua"

opportunity to compete%
 -e'e"opment o$ domestic contracting and

manu$acturing industries sha"" be

encouraged%
 There sha"" be transparency in a"" stage o$

the procurement process%

Bidding process . +-B
The Internationa" Competiti'e Bidding (ICB) process
inc"udes six main phases/
 +d'ertisement and Notication,

 0reparation and Issuing o$ the Bidding -ocument,

 Bid 0reparation and 1ubmission,

 Bid 2pening,

 Bid 'a"uation, and

 Contract +ward
Advertisement and
Notication
 In'itation $or Bids (I&B) sha"" be ad'ertised in the +-B 3ebsite as
we"" as in (i) a newspaper o$ genera" circu"ation in the borrower4s
country (in at "east one ng"ish "anguage newspaper i$ a'ai"ab"e), or
(ii) an internationa""y !nown and $ree"y accessib"e website in
ng"ish%
 + copy o$ the I&B sha"" be submitted to +-B $or appro'a" and $or
pub"ication in +-B website in accordance with the pro'isions o$ the
nancing agreement%
 &or "arge or specia"i5ed contracts, +-B may additiona""y reuire that
the I&B be ad'ertised in we"".!nown technica" maga5ines or trade
pub"ications, or in newspapers o$ wide internationa" circu"ation, in
su*cient time to enab"e prospecti'e Bidders to prepare and submit
Bids%
Preparing and Issuing a
Bidding Document
 The mp"oyer is responsib"e $or preparing and issuing the Bidding -ocument
$or a specic contract%
 The Bidding -ocument sha"" be prepared by the mp"oyer on the basis o$ the
appropriate 1B- issued by +-B, as this is a mandatory reuirement $or
contracts to be nanced by +-B%
 The mp"oyer sha"" prepare the Bidding -ocument using the pub"ished
'ersion o$ the 1B- without suppressing or adding text to the sections o$ the
document that must be used without modication, which are 1ection 6
(Instructions to Bidders) and 1ection 7 (8enera" Conditions o$ Contract)% +""
in$ormation and data particu"ar to each indi'idua" bidding process must be
pro'ided by the mp"oyer in the $o""owing sections o$ the Bidding -ocument/
◦ 1ection 9 . Bid -ata 1heet
◦ 1ection : . 'a"uation and ;ua"ication Criteria
◦ 1ection < . Bidding &orms
◦ 1ection = . "igib"e Countries
◦ 1ection > . mp"oyer4s ?euirements
◦ 1ection @ . 0articu"ar Conditions o$ Contract
◦ 1ection A . Contract &orms
 The mp"oyer sha"" a""ow Bidders su*cient time to study the Bidding
-ocument, prepare comp"ete and responsi'e Bids, and submit their Bids%
Bid Preparation and
Submission
 The Bidder is so"e"y responsib"e $or the preparation
and submission o$ its Bid% -uring this stage, the
 mp"oyer sha""/
◦ 0rompt"y respond to reuests $or c"arications $rom Bidders and
amend the Bidding -ocument as needed%
◦ +mend the Bidding -ocument on"y with prior appro'a" o$ +-B%
Bid 2pening
 The mp"oyer is responsib"e $or the Bid 2pening, which is a critica" e'ent in the bidding process%
The mp"oyer sha"" appoint experienced sta to conduct the Bid 2pening, as inappropriate
procedures at Bid 2pening are usua""y irre'ersib"e and may reuire cance""ation o$ the bidding
process with conseuent de"ays and waste o$ resources%
 The mp"oyer, in obser'ance o$ best practices, sha""/
◦ Conduct the Bid 2pening strict"y $o""owing the procedures as specied in the Instructions to
Bidders $or a"" Bids recei'ed not "ater than the date and time o$ the bid submission dead"ine%
The term Bid 2pening can be mis"eading because a Bid $or which a Bid 3ithdrawa" or Bid
1ubstitution notice was recei'ed on time sha"" not be opened, but returned unopened to the
Bidder% The seuence in which Bids are hand"ed, opened, and recorded is crucia"%
◦ nsure that a"" Bids that were recei'ed on time are accounted $or, be$ore starting the Bid
2pening, as Bids that are not opened and read out at Bid 2pening sha"" not be considered
$urther%
◦ Not reect any Bid at Bid 2pening, except $or "ate bids recei'ed a$ter the date and time o$
the bid submission dead"ine% Technica""y, "ate bids shou"d not reach the Bid 2pening, but in
certain cases a Bidder may attempt to submit its bid at the Bid 2pening p"ace a$ter the
dead"ine%
◦ xamine the Bids at Bid 2pening in accordance with the pro'isions o$ the Instructions to
Bidders% The mp"oyer sha"", howe'er, 'eri$y at Bid 2pening the 'a"idity o$ the
documentation such as 0ower o$ +ttorney or other acceptab"e eui'a"ent document as
specied in the Instructions to Bidders conrming the 'a"idity o$ a bid modication, bid
withdrawa", or bid substitution, because a withdrawn or substituted Bid sha"" not be opened
and in conseuence not read out and, there$ore, not be considered by the mp"oyer%
1imi"ar"y, a bid modication sha"" be opened, read out, and recorded to modi$y a Bid tha t
was recei'ed on time%
Bid Evaluation and
Contract Award
 The mp"oyer is responsib"e $or bid e'a"uation and
contract award% The mp"oyer sha"" appoint
experienced sta to conduct the e'a"uation o$ the
Bids% Dista!es committed at bid e'a"uation may "ater
prompt comp"aints $rom Bidders, reuiring
ree'a"uation o$ the Bids, with conseuent de"ays and
waste o$ resources%
 The mp"oyer, in obser'ance o$ best practices, sha""/
◦ Daintain the bid e'a"uation process strict"y condentia"%
◦ ?eect any attempts or pressures to distort the outcome o$ the
e'a"uation, inc"uding $raud and corruption%
◦ 1trict"y app"y on"y and a"" o$ the e'a"uation and ua"ication
criteria specied in the Bidding -ocument%
Tender Notice
Tender Notice/ It is the in$ormation
in'iting bids $rom competent and
capab"e contractors and $orms a
part o$ contract document% It shou"d
be wide"y pub"ished in important
newspapers%
Tender notice is not an oer% It is an

in$ormation pro'ided to a"" the

prospecti'e bidders to submit theor
oer
In'itation $or bid . +-B
( tender notice)
 The In'itation $or Bids pro'ides in$ormation that enab"es potentia" Bidders to decide
whether to participate% +part $rom the essentia" items "isted in the 1tandard Bidding
-ocument, the In'itation $or Bids shou"d a"so indicate any important bid e'a"uation
criteria, such as the app"ication o$ a margin o$ pre$erence in bid e'a"uation, or ua"ication
criteria, i$ no preua"ication too! p"ace%
 The In'itation $or Bids is not a part o$ the Bidding -ocument and there$ore it sha"" not be
inc"uded in the Bidding -ocument%
 The In'itation $or Bids sha"" be ad'ertised in the +-B 3ebsite, as we"" as in (i) a
newspaper o$ genera" circu"ation in the borrower4s country, or (ii) an internationa""y !nown
and $ree"y accessib"e website in ng"ish% + copy o$ the In'itation $or Bids sha"" be
submitted to +-B $or appro'a" and $or pub"ication in the +-B 3ebsite in accordance with
the pro'isions o$ the nancing agreement
 &or "arge or specia"i5ed contracts, +-B may additiona""y reuire that the In'itation $or Bids
be ad'ertised in we"".!nown technica" maga5ines or trade pub"ications, or in newspapers
o$ wide internationa" circu"ation, in su*cient time to enab"e prospecti'e Bidders to
prepare and submit Bids%
1amp"e o$ notice . +-B
In'itation $or Bids
Eser4s 8uide 0rocurement o$ 3or!s +-B 1tandard Bidding -ocument
Standard ormat for Invitation for Bids
Date !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

"oan#$rant No! and Title !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Contract No! and Title !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Deadline for Submission of Bids %%%%%% insert closing date and time
6% The % % % % % insert name of Borrower or Recipient . . . . . has received1 nancing from the Asian -e'e"opment Ban! (+-B) towards the cost
o$ % % % % % insert name of name of project . . . . .. 0art o$ this nancing wi"" be used $or payments under the contract9 named abo'e . Bidding is
open to preua"ied: bidders $rom e"igib"e source countries o$ the +-B%<
9% The % % % % % insert name of Employer . . . . . (―the Employer‖ invites sealed !ids from preua"ied: e"igib"e bidders $or the construction and
comp"etion o$ % % % % % insert !rief description of the "or#s and statement of the principal $%antities involved. . . . . (―the 3or!s)%
:% To obtain $urther in$ormation and inspect the bidding documents, bidders shou"d contact/
% % % % % insert Employer&s o'ce . . . . . 
% % % % % postal address or street addres s) incl%de *ip code . . . . .
% % % % % telephone n%m!er incl%ding co%ntry code. . . . .
% % % % % email address. . . . .
% % % % % fa+ no. . . . .
<% To purchase the bidding documents in ng"ish, e"igib"e bidders shou"d/
 write to address abo'e reuesting the bidding documents $or % % % % % insert n%m!er , title of contract . . . . .
 pay a non.re$undab"e $ee> o$ % % % % % insert amo%nt and c%rrency . . . . . !y . . . . . -nsert method of payment % % % % %%
=% -e"i'er your bid/
 to the address abo'e
 on or be$ore the dead"ine/ % % % % % insert closing date and time. . . . .
 together with a Bid 1ecurity as described in the Bidding -ocument
Bids wi"" be opened immediate"y a$ter the dead"ine $or bid submission in the presence o$ bidders4 representati'es who choose to attend%
>% 3hen comparing Bids, +-B4s -omestic 0re$erence 1cheme wi"" be app"ied in accordance with the pro'isions stipu"ated in the Bidding -ocument 7%
in$ormation to be inc"uded in
tender notice
 Name o$ the +uthority pub"ishing the notice%
 &irst date o$ pub"ication
 Brie$ description o$ the ob%
 -ate, time and p"ace where and when the tender
document is a'ai"ab"e and to be submitted%
 Cost o$ tender document%
 Cost estimate (optiona")
 -ate, time and p"ace o$ opening bid%
 arnest money and security deposit amount%
 xpected date o$ acceptance o$ success$u" bids% etc%
arnest money or bid
security
 It is the amount o$ money deposited whi"e bidding as
a guarantee o$ the partyFs wi""ingness o$ carrying out
the wor! i$ awarded to him%
 ItFs amount genera""y ranges $rom 6G to :G%
 9.:G o$ the 0roect cost is demanded as earnest
money%
 This $und is re$unded to unsuccess$u" bidder%
 I$ a success$u" bidder $ai"s to carry on (sign) the
contract, this amount is $or$eited%
Type o$ bidding
National Competitive Bidding
&NCB'
International Competitive

Bidding &ICB'(
National Competitive
Bidding &NCB'
 It is sometimes ca""ed as Hoca" Competiti'e Bidding%
 In this process a"" the e"igib"e bidders registered with
82N are in'ited to participate in bidding%
 tender notice is to be pub"ished in nationa" newspaper
$or two consecuti'e days%
 tender notice sha"" a"so be pub"ished in proect o*ce,
-istrict +dmin o*ce, --C o*ce, Hand re'enue o*ce,
treasury contro""er o*ce and C+N o*ce%
International Competitive
Bidding &ICB'(
 I$ the amount o$ wor! is big and nationa"#domestic
contractors cannot per$orm the ob, e"igib"e bidders
are in'ited $rom a"" o'er the wor"d%
 In genera" i$ the amount o$ wor! is greater than =
crore ($or procurement o$ good) and greater than E1-
6 mi""ion ($or procurement o$ wor!s) ICB process is
$o""owed%
 In this process tender notice is pro'ided to dip"omatic
missions wor!ing in the country%
ICB – agent
In ICB the $oreign bidder sha"" $urnish the $o""owing
in$ormation in the bid%
 3hether the bidder is ha'ing a "oca" agent or not

 Name and address o$ the agent i$ any%

 Types o$ ser'ices being pro'ided by the agent%

 Currency and procedure o$ payment to the agent%

 2ther agreement with the agent i$ any%

The end