B EVE SUSTAINABLE PROCUREMENT LCC ASSIGNMENT

HAND IN ON WEDNESDAY 24th April 2024 BEFORE 5 PM (This assignment is individual

based and should be handed in handwritten)

QUESTION:
MB DLG sought to procure a Generator Set for use at their Head Office. The DLG envisaged that it would
award the supply contract to the most economically advantageous tender (MEAT). The MEAT approach
includes both operating and disposal costs as well as evaluation of acquisition costs and also other award
criteria related to sustainability. The following information is extracted from the bid document issued to
potential suppliers.

SELECTION AND EVALUATION CRITERIA

Acquisition cost Score (AS)
To determine acquisition scores for each bid, the bid with the lowest TCO shall be given a score of 100,
and other bids shall be given a score proportionate to this, by application of the following formula:
AS = 100 x Tm/T in which:
AS denotes the Acquisition Score of the bid under consideration;
Tm is the bid with the lowest TCO;
T denotes the TCO of the bid under consideration.

Sustainability+ Score (SS)

Merit points to be used as follows:

Sub-criterion Score
Availability of Local Maintenance Support Firms 20

Low Noise pollution 20

Low Carbon Emissions 20
Eco Label Standard Certification 20
Return to Supplier for Safe Disposal after useful life 20

Combined Weighted Score

A total score (TS) will be determined for each bid, by combining its Acquisition Score (AS) and
Sustainability Score (SS) scores using the following weightings:
Acquisition = 25
Sustainability+ = 75
The Bidder with the Highest Combined Weighted Score will be selected for award of contract.
BIDDERS INFORMATION:
Information extracted from the Supplier’s bids is as follows:

Supplier: Kadingidi Supplier: Kabandole

GenSet 1 GenSet 2
Purchase price UGX 5,500,000 UGX 12,000,000
Fuel consumption:
5.5 Litres 4.5 Litres
Every 12 hours
UGX 150,000 UGX 200,000
Maintenance
Every after 600 hours Every after 1,200 hours
Warranty up to 3 years. Warranty up to 2 year Repairs
Annual Repairs costs depe
nds on Warranty Period
Repairs UGX 400,000 UGX 100,000
Installation UGX 450,000 UGX 300,000
Disposal income after 5 ye
UGX 2,200,000 Nil
ars
Utilisation:
Number of hours per annu 7,200 7,200
m

Additional information
Inflation rate 8%
Discount rate 15%
Cost of fuel is UGX 6,000 per litre

Note: Save for the Initial Purchase Price and installation which occur at the beginning of the year, all other
cash flows occur at the end of their respective year.

EVALUATION BASED ON SUSTAINABILITY CRITERIA

The following information is extracted from the evaluation report

Criterion Supplier: Kadingidi Supplier: Kabandole

GenSet 1
Local Maintenance Support Firms 05 out of 20 points
Noise pollution 05 out of 20 points
Low Carbon Emissions 10 out of 20 points
Eco Label 05 out of 20 points
Return to Supplier for Safe Disposal 00 out of 20 points
GenSet 2
15 out of 20 points
15 out of 20 points
15 out of 20 points
20 out of 20 points
15 out of 20 points
Required
a. What is the justification for using MEAT in procurement?
b. Using the information extracts provided above:
i. Determine the total cost of ownership (TCO) of each of the Generator Sets
ii. Select the supplier with the most economically advantageous tender

END