Overview of the Bidding

Process and Guide to

Formulating Clarifications
Lesson Objectives
• Understanding the timeline of the bidding process
• Identify the bidding documents and submittals
• Formulation of Clarifications

Overview of the Bidding Process and Guide to Formulating Clarifications

Bidding Process Overview of the Bidding Process and Guide to Formulating Clarifica

1
ADVERTISE

2 BID PREPARATION &

SUBMISSION

3 EVALUATION &
SELECTION

4 NEGOTIATION &
AWARD

Notice to Buy Bid Bid Selection Contract

Bidders Package Opening of Winner Signing
Bidding Preparation Period Acceptance Period
Bid Advertisement and Announcement
• Subject/scope of work,
• Employer name and address
• Relevant Dates: purchase of bid packages, site visits, bid submission,
bid opening
• Anticipated price range of the project (optional)
• Anticipated project duration (optional)
• Conditions for bid acceptance/rejection
• Eligible Bidders
• Any other Instructions and/or Restrictions on Bidders

Overview of the Bidding Process and Guide to Formulating Clarifications

Sample
of Bid
Advertisement
Pre-Bid Conference
• Ensures a clear understanding of the
procurement process and documents.
• “fair and open competition”
Some notes about Pre-bid conferences:
- Conference time and location are clearly
mentioned in the “invitation to bid” document.
- Held 2-3 weeks after the release of bid
documents.
- May require the attendance of pre-bid
conference as a requirement for bid submittals

Overview of the Bidding Process and Guide to Formulating Clarifications

Bidder’s Prequalification
• Ensuring Bidders who will join are technically and financially capable;
• Enabling prospective Bidders, to form a JV that may give a better chance of
success; and
• Limiting the number of Bidders, in advance, to a manageable size when many
Bidders are expected to participate.
• Bidders are usually prequalified based on different attributes:
- financial situation (debt, assets);
- previous customer satisfaction;
- size of previous work; and
- type of previous work

Overview of the Bidding Process and Guide to Formulating Clarifications

Prequalification Evaluation Procedure

Stage-1 Preliminary
Examination (pass or fail)
• Completeness of Documents
and Information
• Formality of Application
YES
SATISFIED
DISQUALIFIED
Stage-2 Qualification Evaluation (pass or fail)
1.Eligibility SATISFIED
NO
• Nationality
• Conflict of Interest
• JICA Ineligibility
2. Historical Contract Non-Performance and Litigation YES
• History of Non-Performing Contracts
• Pending Litigation Prequalified Applicants
• Litigation History Submission of Evaluation
3. Financial Situation and Capabilities Reports to JICA
• Financial Performance
• Average Annual Turnover
• Financial Capabilities
4. Experience
• General Experience
Concurred
• Specific Experience
by JICA

NO
Determination of
Prequalified Applicants

DISQUALIFIED
Bidding Process Overview of the Bidding Process and Guide to Formulating Clarifica

✓
1
ADVERTISE

2 BID PREPARATION &

SUBMISSION

3 EVALUATION &
SELECTION

4 NEGOTIATION &
AWARD

Notice to Buy Bid Bid Selection Contract

Bidders Package Opening of Winner Signing
Bidding Preparation Period Acceptance Period
Bid Preparation and Submission
Bid package, includes the following:
• Instructions to Bidders
• Bid Forms
• Bill of Quantities
• Contract Documents: (1) General Conditions; (2) Particular Conditions
• Specifications: (1) General Requirements; (2) Technical Specifications
• Drawings
• Additional Information (e.g. soil study, environmental report, etc.)

Overview of the Bidding Process and Guide to Formulating Clarifications

Bid Preparation and Submission
Instructions to Bidders
Contain information about the bid procedures, such as:
• Bidder responsibilities (site visit, familiarity with bid documents and local law)
• Bidding Documents (Where to find them and to whom they are available )
• Interpretation (Procedure for questions and interpretation of the documents)
• Bidding Procedures (bid submission, list of requirements, modification or
withdrawal of bids)
• Consideration and Evaluation of Bids (bids opening, rejection, acceptance)
• Post-Bid Procedures (submission of contractor's subcontracts)

Overview of the Bidding Process and Guide to Formulating Clarifications

Bid Preparation and Submission
Bid Forms
Completed by the Bidders and submitted as part of their Bids
• Letter of Technical Bid and Price Bid
• Power of Attorney
• Qualification Forms:
(1) Bidder Information forms (or JV);
(2) Financial Statements;
(3) Finance related Forms;
(4) Experience forms; etc.

Overview of the Bidding Process and Guide to Formulating Clarifications

Bid Preparation and Submission
Bill of Quantities (BOQ)
• to enable Bids to be prepared efficiently and accurately;
• priced Bill of Quantities for use in the periodic valuation of works to be
executed
Drawings
• graphical description of projects
• Site plans, Utility plans, Architectural drawings, Structural engineering
drawings, Mechanical engineering drawings, Electrical engineering drawings,
etc.

Overview of the Bidding Process and Guide to Formulating Clarifications

Bidding Process Overview of the Bidding Process and Guide to Formulating Clarifica

✓
1
ADVERTISE

✓
2 BID PREPARATION &
SUBMISSION

3 EVALUATION &
SELECTION

4 NEGOTIATION &
AWARD

Notice to Buy Bid Bid Selection Contract

Bidders Package Opening of Winner Signing
Bidding Preparation Period Acceptance Period
Bid Evaluation & Selection
• Lowest Bidder:
- one who offers the lowest price and is….
• Responsive Bidder:
conforms in all required submittals and meets criteria/requirements
complies with the “Instructions to Bidders” document
• Responsible Bidder:
history of court orders and non-performance of contracts
✓ necessary facilities and equipment
✓ previous satisfactory work performance
Bid Evaluation Procedure
NO
SATISFIED DISQUALIFIED
Submission of Bids (Technical
and Price)
Opening of Technical Bids YES Evaluation of Price Bids Concurred
by JICA
Substantially Responsive
Technical Bids • Stage 1: Preliminary
Evaluation of Technical Bids Examination (pass or fail)
• Stage 2: Comparison of Price
• Stage 1: Preliminary Bids
Examination (pass or fail) The Lowest Evaluated Bid Determination of the Bidder
• Stage 2: Qualification to be Awarded
Evaluation (pass or fail) Concurred
• Stage 3: Determination of by JICA
Responsiveness of Technical
Bids (pass or fail)

Submission of
Opening of Price Bids Evaluation Report to
JICA
Bidding Process Overview of the Bidding Process and Guide to Formulating Clarifica

✓
1
ADVERTISE

✓
2 BID PREPARATION &
SUBMISSION

✓
3 EVALUATION &
SELECTION

4 NEGOTIATION &
AWARD

Notice to Buy Bid Bid Selection Contract

Bidders Package Opening of Winner Signing
Bidding Preparation Period Acceptance Period
Bid Negotiation & Award
The Employer negotiates with the lowest bidder on possible price reduction
and on the contract terms.

Bonds: the contractor pay surety companies to issue him/her the following
bonds during the project bidding/construction:
• Bid Bond: Guarantee that successful bidders will enter into contract
(submitted with the bid and returned at the time of contract signing)
• Performance Bond: Guarantee that the contractor will perform according
to terms of construction contract (submitted at the time of contract
signing)

Overview of the Bidding Process and Guide to Formulating Clarifications

Flowchart of Procurement Procedure Employer JICA Bidder

Prequalification Procedure Bidding Procedure

Step 1 Step 4 Step 7
Preparation of PQ Document Preparation of Bid Document Opening of Price Bid

JICA’s Review JICA’s Review Evaluation of Price Bid

JICA’s Review
Step 2 Step 5
Advertising Advertising

Clarifications to PQ Document Clarifications to Bid Document

Award of Contract
Step 8
Submission of Applications Submission of Applications
Notification of Award, Signing of Contract

Step 3 Step 6 JICA’s Review

Opening of Applications Opening of Technical Bid
Notification to Unsuccessful Bidders

Evaluation of Applications Evaluation of Technical Bid

JICA’s Review JICA’s Review

Notification of PQ Results Notification to Bidders

 Make sure the Clarification includes the
following elements:
• Project name and Employer’s Name
• Query number (in sequential order from the bid
document)
• Description of the request, beginning with the
question and including a reference (or vice versa)
to the relevant specification, plan, or drawing
• A description of the attachments, such as
photos, screenshots, drawings, etc.
How to • Space for the response by the Employer
Write
Clarifications
Sample Clarification Format
Tips for Producing Effective Clarifications
• Devote sufficient time to reviewing and understanding bidding documents.
• Use a standardized clarification format
• Always double-check the documents to verify that the answer to your
question does not already exist
• Write clearly and concisely
• Adopt a neutral tone. Don’t try to make the Employer look bad
• Don’t use the process to blatantly voice a disagreement
• Propose a solution, and, ideally, offer at least two options, so the Employer
only picks one
• Specify all the information you need to facilitate the response

Overview of the Bidding Process and Guide to Formulating Clarifications

Sample Clarification Questions

Overview of the Bidding Process and Guide to Formulating Clarifications

THANK YOU!

Overview of the Bidding Process and Guide to Formulating Clarifications