SESSION 13:

BID
EXAMINATION,
EVALUATION AND
AWARD OF
CONTRACT
B2 TRAINING ON PROCUREMENT OF WORKS AND CONSULTANCY
SERVICES

WITH REFERENCE TO IPFMRP – CDP Project

PUBLIC PROCUREMENT
ACT 2063 AND PUBLIC
PROCUREMENT
REGULATION 2064

Shakti Prasad Shrestha

  Formation of Bid Evaluation Committ
 Bid Security
 Non–procession of Bids
Presentation  Eligibility, Bid Examination and
Outlines Evaluation
 Bid Capacity Assessment
 Special Evaluation of Bids of
Construction Work

2
  Bid Evaluation Report (Legal /
Practical Guidelines)
Presentation  Letter of Intention to Award (LoI)
 Letter of Acceptance
Outlines  Award and Signing the Contract
 Rejection of Bids or Cancellation of
Procurement Proceedings

3
 Formation of Bid Evaluation Committee
 Evaluation Committee to be Formed (Sec 71): PE shall have to
form an evaluation committee (EC) for examination and
evaluation of the pre-qualification proposals, bids, expression of
interest or proposals of consultancy services or sealed quotation.
 Evaluation Committee (Rule -147): comprise of the following:
(a) The chief of the PE or a senior officer designated by him/her, a technical staff
as far as possible) - Chairperson
(b) Chief of the Financial Administration Section of the concerned Public Entity
- Member
(c) Technical expert concerned with the subject matter (0fficer level as far as
possible) - Member
(d) Law officer of the concerned Public Entity, where such a position exist
- Member
 The chief of the procurement unit shall act as the secretary of the
committee
4
Formation of Bid Evaluation Committee
 GoN/NGO Expert Invitation:The EC with
approval of the chief of the PE can invite in its
meeting the expert in related subject matter
of governmental or non-governmental sector.

 Consultant appointment: PE may, subject to the

approved program and budget, appoint a
consultant by application of the procedure of
Law .

5
Formation of Bid Evaluation Committee
Form a Sub-Committee: EC may form a sub-committee
for rendering assistance to it in the work of evaluation of
quotation, bid or proposal. (Help in technical and
arithmetic accuracy)
Prepare Minute: The secretary of the EC have to
prepare and keep the Muchulka (minute) of the meeting
and keep a file of all the agenda discussed in the
meeting.
EC itself may determine its procedure.
Evaluation Report: EC have to submit an evaluation
report to the chief of the Public Entity.
6
Case : Relating to Evaluation Committee
1. One PE has many civil works programs such as
road, buildings and construction of civil-electro-
mechanical programs under a project to be
finished in a fiscal year. In this situation , whether
that project should have :
 One EC or
 Different EC as per the nature of work?

to finish the evaluation work on time

7
 Bid Security: (Sec.21)
 A bidder shall provide bid security along with the bid.
 It may be in the form of Cash to be deposited in the Bank
Account or in the form of Bank Guarantee. The Security
amount to be fixed by PE 2 to 3 percent of Estimated amount
and need to mention the amount for the same.
 Bid Security can forfeited in the following conditions:-
 If the bidder requests for modification or withdrawal of bid
during the validity period of bid, after the deadline for the
submission of bids,
 If the bidder refuses to accept the correction of arithmetical
errors found in the bid,
 If the selected bidder fails to sign the procurement contract in
accordance with the terms and conditions set forth in the
bidding documents,
8
 Bid Security: (Sec.21)
 Bid Security Forfeiture:
 Where the bidder fails to furnish the performance security
within the time for signing the procurement contract,
 If the bidder has changed the bid price or substantive matter of
the bid while providing any information in response to
clarification sought by the Public Entity in the course of
examination of bids.
 If any act contrary to conduct as referred to bidder conduct is
committed.
 Return the bid security: After the conclusion of a
procurement contract PE shall return the bid security of the
bidder who has signed the procurement contract and the bid
security of those bidders whose bid security is not liable to
forfeiture

9
Evaluation of Bid

10
 Purpose of Bid Evaluation:
 To determine the lowest evaluated
substantially responsive bid in accordance
with the terms and conditions specified in
the bidding documents,

 To ensure the bidder's capabilities and

capacity to execute the Contract
satisfactorily within specified time.

11
 Things to be considered:
- Bid Evaluation by Bid Evaluation Committee,
- Define TOR of evaluation committee,
- Security of bid documents
- Pre-qualification and Post qualification,
- Single envelope or double envelope,
- Evaluation based on only set evaluation
criteria in Pre-qualification Document/
Bidding documents (needs study of bidding
document),
- Confidentiality of Procedures,
- Non-discrimination/Equal treatment,
12
 Things to be considered (Cont..):
 Timely Evaluation- within bid
validity period,
 Extension of the validity of bids,
 Employer’s right to accept any bid,
and to reject any or all bids
 A firm or its affiliates engaged to
provide consulting services for the
preparation or supervision of the
Works, not eligible to Bid,
13
 Things to be considered (Cont..):
Should not be conflict of interest,
If nearest relatives have participated as a
bidder in the procurement proceedings, not
involve in such procurement proceedings by
giving immediate notification to one level
higher authority,
Explanation: nearest relatives means husband, wife,
father, mother, son, daughter of a joint family,
mother-in-law, father-in-law, elder brother,
younger brother, elder sister, younger sister, son-in-
law, sister-in-law or brother-in-law.

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 Things to be considered (Cont..):
 No contact/interfere by the bidder to the
PE from the time of the bid opening and
until the notice of acceptance of bid or
proposal is given with the objective of
causing
 The PE may, in the course of examining the
bids, ask bidders for necessary information,
 The PE may, in the course of examining the
bids, authenticate the submitted
documents submitted by the bidders.
15
 Things to be considered (Cont..):
 Not allowed to change or alter the bid
price or other substance of the bid in
providing such information by the bidder,
 In case of Pre-qualification, verification of
qualification criteria and short-list to be
made,
 Bid evaluation is not a mechanical job as
generally thought, tremendous subjective
decision is necessary,
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Need to Consider Before Examination and
Evaluation of Bid
 Public Procurement Act (Preamble): Major aspects to
understand to make public procurement much more
open, transparent, objective and reliable, obtain the
maximum returns of public expenditures in an
economical and rational manner by promoting
competition, fairness, honesty, accountability and
reliability in public procurement processes, and; ensure
good governance as well as ensuring the equal
opportunity for construction entrepreneurs to participate
in public procurement processes without any
discrimination
 Evaluation and examination of bid as per Pass/Fail criteria
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 Evaluation Procedures:

Collection of Information
– Basic Data,
– Bid Opening Record (Muchulka),
– Bids received,
– Pre-bid meeting minute,
– Clarification & Addendum, if any

18
 Evaluation Procedures (Cont..):
Basic Data:
Before starting the actual evaluation, it will be helpful to
collect all the key information of bidding available
like:
– Name of Project; Loan/Credit/Grant Number,
– Sorce of Fund,
– Name of Contract and Identification Number,
– Approved cost estimate,
– IFB Notice,
– Number of Bids Purchased and Received,
– Applicable law/guidelines,
– Prior review/post review if any
19
 Evaluation Procedures (Cont..):

 Based on Price,
 Based on weights,
 Based on Price and quality,
 Based on quality,
 Based on sequencial order for the
logical conclusion

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2
1

Bid Evaluation procedure based on sequencial order

for the logical conclusion- Single envolope
Examination of eligibility 1

Examination of completeness 2

Determination of substantial responsiveness 3

Technical, commercial, economic aspect and 4

adjustment of minor deviation

Arithmetical Examination & Comparison of Bids/

Determination of lowest evaluated bid 5

Special evaluation of lowest evaluated bid 6

Examination of post qualification 7

Bid evaluation report 8

2
2

Bid Evaluation procedure based on sequencial order

for the logical conclusion- Two envolope
Examination of eligibility 1

Examination of completeness 2

Determination of substantial responsiveness 3

Technical, commercial, economic aspect and 4

adjustment of minor deviation

Examination of post qualification 5

Bid evaluation report 6

Arithmetical Examination & Comparison of Bids/ 7

Determination of lowest evaluated bid
7
Special evaluation of lowest evaluated bid7 8

Final Bid evaluation report 9

 Non–procession of Bids (Sec.24)
 Identify the following non-procession conditions and separate
such bids and do not take such bids to another steps of
examination :
 Where it is not sealed,
 Where it is not submitted within the time frame,
 The bids withdrawn
 If it is not in accordance with JV, power of attorney etc.
 The bids submitted by mutual collusion
 The bids cancelled due to qualification substantially lower than
the PQ stage
 Such Bids shall not be processed further and hence dropped
from further evaluation. Bids responsive with above matters
shall be processed further and taken to next step

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 Examination of Eligibility (Rule 40)
 Bidders legal eligibility shall be examined as per following
criteria :
 Registration certificate of a firm, organization or company,
 Business registration license,
 Explanation: For the purpose of this clause, the term
"business registration license" means a certificate obtained
by a construction entrepreneur pursuant to the law in force
relating to construction enterprises with the objective of
carrying out a construction business.
 Value Added Tax registration certificate and Permanent
Account Number (PAN) registration certificate,

24
 Examination of Eligibility (Rule 40)
Bidders legal eligibility shall be examined as per following
criteria (Contd..):
Tax clearance certificate or the document of having
submitted tax returns of the period specified by the Public
Entity obtained from the Inland Revenue Office,
A written declaration made by the bidder with a statement
that he/she is not ineligible to participate in the procurement
proceedings; has no conflict of interest in the proposed
procurement proceedings, and has not been punished for a
profession or business related offense.

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Examine the Following Issues in Eligibility
 Certificates Copy: Getting the copy of all eligible and
available documents ?
 Certification by Whom?: Notary Public or by the
Bidder themselves ?
 Authentication of Certification ?
 If bidder FAILs this step then it will be rejected (Rule
40.4).
 If bidder PASS this criteria then it will be included in
the next step of Completeness of bid

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Examination of Completeness of Bids (Sec 23)
 Bidder passed eligibility criteria shall be
examined for completeness of the bids
they submitted.
 For completeness examination EC
should prepare list from the ITB clauses,
where it is required by the PE to submit
the all the required documents to
participate and win the bid for the given
works.
27
 Examination of Completeness:
Whether or not: Required securities furnished
Validity period, format, bank, amount, counter
guarantee,
Bid security must be submitted in the name of JV.
 Bids are sealed properly,
 Power of Attorney to sign the bid,
 Bids properly signed by the authorized representative,
 In case of JV, Joint Venture agreements are submitted,
(if required),
 Manufacturer’s Authorization letter and
Manufacture's assurance letter, if any

28
 Examination of Completeness (cont..):
Whether or not:
 Sufficient bid validity,
 Participation in only one bid,
 Bid is submitted in the sold bidding
documents,
 Bidding document was purchased in the
name of bidder itself,
 Bid Submission Form/Letter of bid is
submitted
BOQ is submitted
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 Examination of Completeness (cont..):
Whether or not:
• Rate analysis, if required
• Blacklisted or not-PPMO/DP,
• Whether documents establishing the
eligibility of the bidder and of goods
mentioned by the bidder are submitted or
not
• Documents are submitted as requested in
the bidding document:
such as:
– Evidence to proof the experience and qualification,

30
Examination of Completeness of Bids...
 Whether documents establishing the
eligibility of the bidder and of goods
mentioned by the bidder are submitted
or not,
 Whether the bidders has self declared
that he/she has not participated in more
than five bids

31
Examination of Completeness of Bids..
 The Public Entity may, in the course of examining the bids
pursuant to this Section, ask bidders for necessary
information. When bidder provide the information and
in providing such information, no change or alteration in
the bid price or other substance of the bid shall be
allowed.

32
Examination of Completeness of Bids..

 If bidder/s did not comply with the completeness

examination, then it will be regarded as non-responsive,
thus rejected in this step
 The bidder passed in the examination of Completeness
of the bid shall be included in the next step of evaluation
 The table of this examination should be prepared and
table no be given.
 EC should in brief need to describe each bidders
position and interpret the situation for the bidder/s not
complying the particular criteria and mention in the
minutes why any bidder is not qualified for next steps and
also later on in the Bid Evaluation Report.

33
Evaluation of Technical Aspect of Bids (Rule 62)
 After the Completeness, Technical Evaluation shall be
performed for the bidders who pass the step
 Technical aspect of a bid have to evaluate the following
matters:-
 Scope of construction works
 Technical specifications and operating and performance
characteristics of key construction works ,and
 Defect Liability period.
 Any discrepancy is found, between the matters set out in the
bidding documents and stated by the bidder in the bid, have
to note such a discrepancy as well.

34
 Determination of Substantial
Responsiveness:
The purpose of the exercise is
to reject bids which are not
substantially responsive to
major commercial and
technical requirements.

35
 Determination of Substantial Responsiveness (cont..):

Preparation of Table of Technical specifications requirements

and bidder's offer:
 Technical specifications meets the minimum technical level,
 These criteria should be evaluated on a pass–fail system,
 Minor deficiency in technical compliance may not be cause
for rejection of the Bid,
 The cost of any deficiency should likewise be added to the
Bid Price concerned for the evaluation purpose.

36
 Determination of Substantial Responsiveness (cont):
During the evaluation of bids, the following definitions apply:
“Deviation” is a departure from the requirements
specified in the Bidding Document;
“Reservation” is the setting of limiting conditions or
withholding from complete acceptance of the
requirements specified in the Bidding Document; and
“Omission” is the failure to submit part or all of the
information or documentation required in the Bidding
Document.

37
Determination of Substantial Responsiveness (cont..):

A substantially responsive bid is one that

meets the requirements of the Bidding
Document without material deviation,
reservation, or omission.
If a bid does not contain any
“Major/Material Deviations” in price and
quality from bidding documents or
conditions, it is substantial responsive bid.

38
 Determination of Substantial Responsiveness:

A material deviation, reservation, or omission is one

that, if accepted, would:
affect in any substantial way the scope, quality, or
performance of the Works specified in the Contract; or
limit in any substantial way, inconsistent with the
Bidding Document, the Employer’s rights or the Bidder’s
obligations under the proposed Contract; or
If rectified, would unfairly affect the competitive
position of other Bidders presenting substantially
responsive bids.

39
 Determination of Substantial Responsiveness:
Provided that a bid is substantially responsive:
The Employer may waive any nonconformities
in the bid,
The Employer may request that the Bidder
submit the necessary information or
documentation, within a reasonable period of
time, to rectify nonmaterial nonconformities.
Requesting information shall not be related to any aspect
of the price of the bid.
Failure of the Bidder to comply with the request may result
in the rejection of its bid.

40
 Determination of Substantial Responsiveness (cont..):
Provided that a bid is substantially responsive:
• The Employer shall rectify quantifiable nonmaterial nonconformities
related to the Bid Price. To this effect, the Bid Price may be adjusted,
for comparison purposes only,
• If the value of such nonconformities should not be more than fifteen
percent of the quoted amount
Minor Deviation price fixing : fix on the basis of the cost estimate or
prevailing market price or average rate of the responsive bidders.
Price of the discrepancy shall be fixed by computing in accordance with
the criteria and method set out in the bidding documents
Where such cost estimate, prevailing market price and interest rate are
not definite, the price shall be determined on the basis of average price of
the same items stated in other substantially responsive bids.
A bidder shall not be consulted in respect of the rationality of the price
to be determined

41
Determination of Substantial Responsiveness (cont..):

Non–procession of Bids:
value of minor deviations is more than 15% of the
bid amount,
Any influence by the bidder during bid evaluation,
If a Bidder does not provide clarifications,
If a Bidder does not extend the time of bid validity
and bid security as requested

42
 Determination of Substantial Responsiveness (cont..):

Non–procession of Bids:
the clarification asked is found to be
unsatisfactory,
 Inability to meet the critical delivery or work
schedule,
Failure to meet major technical requirements
Conditional bids

43
 Evaluation of Bids..
 Original copy shall be valid : If
discrepancy of price or any other
matter is found in the original and the
duplicate copy of a bid, the price or
matter set out in the original copy
shall be valid.

44
 Commercial Evaluation (Rule 63)
After the technical aspect the commercial aspect of such bid
have to evaluate the following matters:-
Period for completion of construction works ,
Conditions of payment,
Liquidated damages to be paid by the bidder for not
completing work on time and the bonus entitled to for
completing the work before time by the bidder,
 Bidders liability towards defect liability period,
Liability to be fulfilled by the bidders

45
 Evaluation of post qualification
Pending Litigation:
All pending litigation shall be treated as resolved against the
Applicant and so shall in total not represent more than 50 percent
of the Applicant’s net worth.

46
 Evaluation of Qualification (Rule-26):
 General experience: The role of bidder solely as a
prime contractor or under management contract or
partner in a joint venture or sub-contractor (In the
business from the year of establishment) will be
evaluated and the determined whether the pass or
not ?

47
 Evaluation of Qualification
 Experience in works of a similar nature and
size for each of the last ten years, and
details of work under way or contractually
committed;
 amount found out after deducting the amount for
value added tax shall be computed and such amount
shall be adjusted according to up to dated price index
of the Nepal Rastra Bank.

48
 Evaluation of Qualification (Rule-26):
 A minimum average annual turnover : construction
works experience upto 1.5 times solely or as a
partner in a joint venture is calculated from best of
any three years maximum turnover out of ten years
transaction shall be taken as criteria. If the bidder
fulfill the criteria then they will pass in this category.

49
 Evaluation of Qualification (Rule-26):
 Special experience: In this criteria the qualification for a specific
project amount as mentioned in bid document is verified with the
bidders document as well as the numbers of project ( 1 or 2
depending on nature of work) shall be verified with the information
given by bidder considering nature, complexity and construction
technology similar to the proposed contract
 Economic and financial capacity : The following qualification shall
be evaluated
 Status of liquid assets (Current Assets - Current Liabilities) should
be positive
 Credit Line or loan facilities sufficient to meet the cash flow required
to complete the proposed construction work and other construction
works being carried out or committed to be carried out by the bidder.
The bank must give their commitment in the form of letter mentioned
in the bid document (Formats of the letter should be complied)

50
 Financial / Technical Capacity
 During evaluation if the EC found the use of financial
and technical capacity being used in the PE or the any
such project/s then requiring of such capacity to the
extent to concerned PE / Projects cannot be
calculated for the additional work of the bidder being
evaluated (Rule 65 -4 Ka) .
 The bidder/s should submit the extent of need of
financial and technical capacity from the concerned
PE or the project/s that is being used in such
PE/project/s along with the bid. (Rule 65 -4 Kha)

51
 Financial / Technical Capacity (Rule 65 )
 The EC need to confirm whether the Average Annual
Turnover is a maximum of 5 times as calculated from
the best three years turnover immediate before for
the last ten years of financial statements. It should
be stated in the bidders/s qualification and
Evaluation criteria. (Rule 65 - 4 Ga)
 While calculating the annual turnover of 5 years the
bidders , the liability of running contract the annual
liability should be deducted and ascertain the
turnover.

52
Declaration/Financial Capacity (Rule 65 )
 The bidders need to self declare and submit bid
documents accordingly. if the statement so
submitted proved false then such bidder should be
eliminated from the evaluation process and
necessary action shall be taken as per prevailing
law.
 Verify whether bidders have more assets than net
liabilities in the latest fiscal year Balance Sheet and
also examine that the bank giving line of credit /
loan facilities has used the format of credit line
facility approved by PPMO (as form in the SBD)

53
 Evaluation of Qualification...
 Skilled manpower: Depending on the nature of the
construction work Engineer, Surveyor, sub-engineer etc
qualification and experience should be verified as per bid
document requirements
 Main equipment: Certificates of ownership of working
conditions and agreement should be (duly attested from
Notary public) available or through rent, lease, contract
or other commercial means as can be used freely during
the procurement contract period.
 Entrepreneur in the case of a national construction
entrepreneur, only the amount found after deducting the
amount for value added tax shall be computed and such
amount shall be adjusted according to up to dated price
index of the Nepal Rastra Bank.
54
Evaluation of Qualification for JV (Rule 28)
 Need to evaluate the share of the JV partners
(40:25:25?),
 The following criteria, the qualification of all partners of such
joint venture shall be calculated.
 Average annual transaction turnover,
 Particular experience and the main work performed by them
 Cash flow available to carry out the construction work,
 Manpower capacity, and
 Tools or equipment capacity
 Need to examine that no single partner or limited member or to
others work has been transferred or not ? should be verified. And
also need to be examined ALL members of JV has taken the
responsibility to complete the work together (So need to verify the
portion of work each JV partners has taken responsibility as per
share and their capacity documents)
55
Evaluation of Qualification for JV (Rule 28)..
 The following criteria should be fulfilled as Individual
partner of a JV :
 General experience in the concerned work,
 Adequacy of resources required to complete the work
being carried out or to be carried out by them as per other
contract,
 Financial capacity , and
 Past procurement litigation and result thereof.
 JV bid security need to be examined whether it is issued
in the name of all the partners with condition that all
partners bear the liability.
 So all qualification mentioned above should be met by
the JV jointly and partners individually.
56
 Examination of Completeness of Bids..
 In PQ, examination of the qualification of bidder shall
be made to ascertain whether or not it conforms to
the prequalification or not.
 While examining the qualification , if the
qualification of a bidder is found to be substantially
lower than what was at the prequalification stage,
the bid of such a bidder shall be rejected.

57
 Qualification of Sub-contractor (Rule-30)
 If the bidder proposed a sub-contractor , the
qualification of such contractor will not be evaluated
during the evaluation process.
 Bidder shall have to submit the documents that prove
the qualification criteria of the sub-contractor before
concluding the procurement contract.
 At the evaluation time need to verify the Statement
causing the work , qualification and maximum
percentage ( not more than 25 percent) of the work
through a sub-contractor, should be verified.

58
 Special Evaluation: Confirm the case of
corruption against bidder/s
 EC during the evaluation should confirm about the
corruption case filing against the bidders and / of its
director/s
 In this regard EC, if have information, during evaluation
should ask GoN whether the corruption case is filed against
the bidder firm or its director/s should be verified.
 For this EC should ask for this from the government through
concerned ministries.
 when the GoN makes available the information and inform
that not to include the bidder/s in the bid evaluation then PE
should exclude such firm, company and the director/s from
the evaluation.
59
Financial Evaluation
 Financial Evaluation & Comparision of Bids

Preparation of Table of Bidders and Bid Prices:

 Prepare a table of bidders and bid prices (unit price,
total price) setting out details of quantities.
Correction of Arithmetical Errors:
 If any arithmetical error is found in a bid in examining bids , the
Public Entity may correct such an error, and where, in making
such correction, there exists a discrepancy between unit rate and
total amount, the unit rate shall prevail, and the total amount
shall be corrected as per the same rate.
 Where there is a discrepancy between figures and words in a bid
submitted by a bidder, the amount in words shall prevail.
 Where any error is corrected information of such correction shall
be communicated to the concerned bidder. (If bidder do not
accept / agree with the corrected figure then the bid security
shall be forfeited)
 Discount/cross discount calculation

61
 Financial Evaluation & Comparision of Bids (cont..):

Correction of Arithmetical Errors:

Arithmetical Errors should be informed to
the concerned bidder
If the Bidder that submitted the lowest
evaluated bid does not accept the correction
of errors, its bid shall be disqualified and its
bid security may be forfeited.

62
Arthmetical Examination & Comparision of Bids (cont..):

Preparation of Table of Bidders and Bid Prices:

 Multiple Contracts
If the contracts are grouped in lots, the PE will
evaluate and compare Bids on the basis of a
lot, or a combination of lots, or as a total of
lots in order to arrive at the least cost
combination to the PE by taking into account
discounts offered by Bidders in case of award
of multiple contracts.

63
Financial Evaluation & Comparision of Bids (cont..):
 If it is an international level bidding, bid
price may be expressed in various
currencies, so the evaluation and comparison
of bid shall have to be made by converting
the price of such bids into a single price
according the exchange rate and currency
30 days prior to the submission deadline.
 Comparison shall have to be made after
fixing the quoted price by excluding Value
Added Tax.

64
Determination of Substantial Responsiveness (cont..):

Rejection of all Bids:

If there is no substantially responsive bid,
If the bid/s is/ are substantially high than the
estimated price
If there is collusion among the bidder or there
is intimidation,
Fraudulant or corrupt practice
If the procurement is no more required.

65
Financial Evaluation & Comparision of Bids (cont..):..

 Where the bidding documents provide that

preference shall be given to local
construction entrepreneur, the evaluation
committee shall, in evaluating financial
aspect of bid, have to fix the evaluated bid
price by computing the amount of the
preference to be given to the domestic
construction entrepreneur and then adding
such amount to the quoted price of a
foreign bidder..

66
 Airthmetical Examination & Comparision of Bids (cont..):

 Convertion in single currency in case of

ICB,
 Minor Omissions or Missing Items:
General practice:
 Equal to the highest price quoted for the same item by the other Bidders; or
 Equal to the average price quoted for the same item by the other Bidders;
or
 Estimated by the Purchaser
 Preparation of comparative table of read out bid price, corrected bid price,
cost estimate.
 The evaluated bid price of every substantially responsive bids shall be
compared with other bids and determined the lowest evaluated

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 Special Evaluation of Bids of
Construction Work ( Rule 65)
After all above evaluation EC need to evaluate the
following Consistency of the work plan, performance
schedule and mobilization time of the construction work
with the bidding documents or not ?
Per unit rate stated by the bidder for items BoQ is
reliable or not,
Quoted price is imbalanced or not ? such as bidder
quoted unusual high rate for initial item of the work
 the bidder having quoted unusual high rate for an item
in the bill of quantity believed by him/her to have been
underestimated

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Special Evaluation of Bids of Construction
Work ( Rule 65)
 Verify whether or not the bidder has quoted so low bid
price that he/she cannot complete the work satisfactorily
or has quoted low price by wrongly understanding or
misunderstanding the scope or technical specifications of
construction works or has stated higher front loading for
the work to be carried out at the preliminary stages.
 If low price is quoted, the EC shall have to ask a
clarification along with a rate analysis from the bidder.
 Need to verify the statements whether the bidder has the
technical capacity to complete the work or not ?

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Special Evaluation of Bids of Construction
Work ( Rule 65)
 If the clarification and rate analysis is
satisfactory the EC may recommend to
taking additional performance security
equivalent to an amount of eight
percent of the quoted amount and
 Bid shall be rejected if the clarification
is not found to be satisfactory.

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Bid Evaluation Report

71
 Bid Evaluation Report (Rule 66)
 After the above evaluation of the bids, the EC shall
prepare a report of the examination and evaluation
carried out containing detailed analysis thereof

 BER should be prepared in sequence as per the

qualification and evaluation evaluated.
 In each step/s whether the bidder is qualified for
another steps need also be stated as some bidder/s
dropped earlier in the evaluation process.

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 Bid Evaluation Report..
 Name and address of the bidder,
 Total quoted price of the bidders and currency,
 If an error has been corrected the total quoted price
fixed after the correction of error and the currency
 If the muchulka (minute) of the opening of a financial
proposal mentions that a bidder has offered to provide
any discount, the matter that the evaluation
committee has adjusted the amount so offered for
discount,

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 Bid Evaluation Report..
 Currency used for comparison ( from the foreign
currency to the Nepalese Rupees) and the amount
fixed on the basis of the exchange rate of the referred
date ( 30 days before the bid submission date)
 Grounds found from the examination made in relevant
non-possession of the bids ( Sec. 23)
 Criteria and methodology for evaluation of the lowest
evaluated substantially responsive bid (Sec. 25 (8)

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Bid Evaluation Report (Some Guidelines).
 Should present the whole functions/ objective findings of bid
evaluation and the revealed matters during the bid evaluation
process
 After the evaluation BER shall give impression that the bidder/s
have the capacity and able to perform the works
 Generally, follow in sequence is suggested :
 General Background of the Work/project, main objective/s,
required works to be performed in the present job, tentative
and related program and contract number of the concerned
fiscal year.
 Formation of Evaluation Committee and its members, ToR of
the committee members, the procedures it followed, the
meetings held during the evaluation.
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Bid Evaluation Report (Some Guidelines).
 The notice of procurement in the newspaper, newspaper
name, times, date, national or international level. The website
in which the notice has been published ( attach the copy of
such notice along with the report as mentioning it as annex)
 Numbers of bidder obtained the bid documents and the
bidders submitted the bid documents along with their name
and address ( the register for sale and submission book copy
should be attached with the report giving number of the
annex)
 Withdrawal and modification(non-possession as per Sec.24) of
the bidder/s with their names and address and the reasons to
this regard from their application (a separate table to this
regard can be prepared but it is few in numbers then just
mentioning in the report may be done)
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Bid Evaluation Report (Some Guidelines).
 The legal eligibility criteria : after stating the above details the
eligibility criteria of bid document should be presented in the
report. It is necessary to prepare a table of Legal Eligibility as
an annex & number should be given. The table should present
the bidders name and address in one side and all the eligibility
criteria in the row/s or the column.
 For every row, after verifying documents mention 'Complied' or
'Not complied' for each of the bidders. In the last row write
remarks as "Pass' or 'Fail"
 On the basis of 'Pass' or 'Fail' position the bidders having pass
remarks will be further evaluated and this should be
mentioned in the report why the bidders forwarded for next
steps of evaluation

77
Bid Evaluation Report (Some Guidelines).
 Completeness of bid : After eligibility state the position of
bidders in the Completeness of bid .
 Prepare a table of Completeness of bid as an annex &
assigning number for this. The table should present the
bidders name and address in one side and all documents
required and verified as completeness of the ITB documents
as evaluated and presented in table.
 For every row, after verifying documents mention 'Complied'
or 'Not complied' for each of the bidders. In the last row write
remarks as "Pass' or 'Fail"
 On the basis of 'Pass' or 'Fail' position the bidders having
pass remarks will be further evaluated and this should be
mentioned in the report (if minor deviation in documents)
and mention why the bidders forwarded for next steps of
evaluation
78
Bid Evaluation Report (Some Guidelines).
 After the report of completeness of bid examination, the
following reports for evaluation should be presented. It is as per
the evaluation sequence of the said criteria:
 Technical Evaluation (Rule 62) : Details as per evaluation-Need to
prepare the table for this evaluation and same process as
mentioned in the eligibility should be followed
 Commercial Evaluation (Rule 63) : Details as per evaluation
 Economic Evaluation (Rule 64) : Details as per evaluation
 In practice except technical evaluation details, the commercial
and economic evaluation is rarely necessary. However, just
mentioning it will be sufficient.
 Write details of Special evaluation Criteria results for
Construction work and write details about the matters during the
evaluation.
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 Bid Evaluation Report (Some Guidelines).
 After the above report presentation the following reports
should be presented with the table for each subject and
assign the 'comply and not comply' in each row and
columns as in eligibility criteria.
 General Construction Experience
 Specific Experience: number of projects and project value
 Average annual turnover
 Financial / bid capacity : Cash flows, Net worth, capacity (5
times of the turnover), Credit line details
 Manpower ( as required in Bid evaluation)
 Equipment ( as mentioned in evaluation)

80
Bid Evaluation Report (Some Guidelines).
 State about the Special Evaluation: Confirm the case of
corruption against bidder/s
 Major Assumptions and Reservation : with the bidding
process including problems/ difficulties After all of the above
report : highlight about the problems and difficulties during
the evaluation process specially comments on qualification
criteria any suggestions on sufficiency, Bid documents terms
and conditions if bidder/s has raised the issue, notice of
procurement, problems in submission if any, verification
problems for qualification / evaluation criteria and other
relevant details that would be useful to refer in future for bid
preparation and evaluation of any useful observation in the
process

81
Bid Evaluation Report (Some Guidelines).
 Final Findings and Conclusions : Summarise in short
and conclude as well as write impression that the
Construction entrepreneur has the capacity and
ability to perform the job
 Recommendation about the bidder: Substantially
Responsive Lowest Evaluated Bid ( name, address,
amount without and with VAT)
 Present Annexes and any other evidences that
supports the report contents : Attach the Annexes in
sequences of report with assigning numbers for each
of table included in the report : justify with evidence
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 Submission of Report
BER shall have to submit such a report to the Public
Entity within the bid validity period (90 days) as
approved / defined by the PE chief

83
 Acceptance of Bid and Procurement
Contract (Sec 27)
 Select the Lowest Evaluated Substantially Responsive
Bid: After the bid evaluation report the Public Entity
shall select for acceptance only the lowest evaluated
substantially responsive bid .
 Letter of Intent : Within seven days of the selection of
the bid the Public Entity shall serve a notice of the
intent of acceptance of bid to the concerned bidder.
 Selected bidders information regarding the name,
address and the price of the bid shall also be
communicated to the other bidders participated in the
bid.
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 Acceptance of Bid and Procurement
Contract (Sec 27)
 Letter of Acceptance : If no bidder makes an application
on LoI within a period of seven days of providing the
notice the bid of the bidder selected shall be accepted
and a notice shall be communicated to the bidder to
furnish the performance security to conclude the
procurement contract within fifteen days.
 Performance Security and Contract signing : The
concerned bidder shall have to furnish the performance
security and sign the procurement contract within the
bid validity period ( National bidding 90 days and
International Bidding 120 days) .

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 Case : Procurement Contract
Case : A lowest evaluated bidder was served notice to furnish
performance guarantee and conclude the procurement
contract within 15 days of notice.
The bidder did not submit performance guarantee within the
said period. The next day (16th day) the bidder submitted the
original performance guarantee stating the reason that due to
National Chakka Jam he/she could not come to present the
guarantee and submit the application to conclude the
contract.
In this condition, will you do agreement with him/she or
reject his request ?
86
 Acceptance of Bid and Procurement
Contract (Sec 27)
 Next Bidder (2nd) Acceptance : If the bidder
fails to furnish the performance security and
sign the procurement contract within 15 days
of notice period the bid security of that
bidder shall be forfeited, and the bid of the
other immediately next lowest evaluated
substantially responsive bidder shall be
accepted and the procurement contract
concluded.
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Acceptance of Bid and Procurement Contract
(Sec 27)

 Another (3 rd) Bidder Acceptance : If even the bidder

(2nd) fails to furnish the performance security and
sign the procurement contract, the bid of the other
immediately next lowest evaluated substantially
responsive bidder, respectively, shall be accepted, and
a notice shall be served to that bidder for concluding
the procurement contract.
 Debriefing and Serving Information: If, within thirty
days of the communication of the notice , any bidder
whose bid has been rejected requests for grounds for
the rejection of its bid, the Public Entity shall have to
communicate such information to that bidder
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Rejection of Bids or Cancellation of Procurement
Proceedings: (Sec.26)
 PE may reject all bids or cancel the procurement proceedings in the
following circumstances:-
 If none of the bids are substantially responsive :(23(2)(d)),
 If the bid price of the lowest evaluated substantially responsive bid
is substantially above the cost estimate,
 If requisitioned construction works are no longer required
 Only Bid be Accepted : No bid shall be rejected or re-bidding shall
be invited only for the reason that only a few bids are or only one
bid is substantively responsive.
 The Public Entity shall have to communicate to all the bidders a
notice along with the reason for the rejection of bids or cancellation
of the procurement proceedings .

89
 Rejection of Bids or Cancellation of Procurement
Proceedings: (Sec.26)
 Communicate the rejection Grounds : If any bidder requests, within
thirty days of the communication of notice for grounds for the
rejection of all bids or rejection of the procurement proceedings, the
Public Entity shall have to communicate such information to that
bidder.
 Re-invitation and Rebidding and following Actions: The following
review as necessary should be performed :
 modification shall also be carry out in the bidding documents,
 technical specifications,
 cost estimate and terms and
 conditions of procurement contract as per necessity by reviewing the
reasons for such rejection of bids or cancellation of the bid
proceedings

90