Technical and Financial Evaluation of

BidsBidsEngr. Dr. Attaullah Shah

Select Seller Techniques

� Weighting System

� Independent Estimates

� Screening System� Screening System

� Contract Negotiation ( For exclusive

manufacturer only as per PPRA rules)

� Seller Rating Systems

� Expert Judgment

Bidding Procedures under PPRA 2004

� One Envelope Procedure

� Two envelop procedure� Two envelop procedure�One stage

�Two stages

� Negotiated Contracts

Two Envelops Procedurei) The bid shall comprise a single package containing two

separate envelopes. Each envelope shall containseparately the financial proposal and the technicalproposal:

ii) The envelopes shall be marked as “FINANCIALPROPOSAL” and “TECHNICAL PROPOSAL” in boldand legible letters to avoid confusion.and legible letters to avoid confusion.

First Stage (Tech Proposal ):

The bidders shall submit, according to the required

specifications, a technical proposal without price,

The technical proposal shall be evaluated in accordance

with the specified evaluation criteria and may be

discussed with the bidders regarding any deficiencies

and unsatisfactory technical features.

iii) After such discussions, all the bidders shall be permitted torevise their respective technical proposals to meet therequirements of the procuring agency;

iv) The procuring agency may delete, modify or add any aspectof the technical requirements or evaluation criteria, or it mayadd new requirements or criteria not inconsistent with theserules.

� Such revisions, deletions, modifications or additions are

communicated to all the bidders equally at the time of invitationcommunicated to all the bidders equally at the time of invitation

to submit final bids, and that sufficient time is allowed to the

bidders to prepare their revised bids:

� Such allowance of time shall not be less than fifteen days in the

case of national competitive bidding and thirty days in the case

of international competitive bidding;

� Those bidders not willing to conform their respective bids to the

procuring agency’s technical requirements may be allowed to

withdraw from the bidding without forfeiture of their bid security (

if any).

Second stage (Revised Tech Proposal)

i) The bidders, whose technical proposals or bids have

not been rejected and who are willing, to conform their

bids to the revised technical requirements shall be

invited to submit a revised technical proposal along with

the financial proposal.

ii) The revised technical proposal and the financialii) The revised technical proposal and the financial

proposal shall be opened at a time date and venue

announced and communicated to the bidders in

advance; and

iii) The revised technical proposal and the financial

proposal shall be evaluated in the manner prescribed

above. The bid found to be the lowest evaluated bid

shall be accepted.

� Best for projects of technical nature.

� Where the firm’s capacity to deal with the complexity of

the project is critical to the successful implementation of

the project

� The scaling of technical and financial score depends on

the nature of the project and relevant importance of the

of each major criteriaof each major criteria

� Typical range from 50:50 to 70:30 for technical: financial

respectively.

� For mega IT projects, where the technical expertise,

global partnership and relevant experience of the firm are

of paramount importance, the technical part can be given

a score of 70 or even 80.

One Stage Two envelope

bidding procedure:-

i) The bid shall comprise a single package

containing two separate envelopes containing

separately the financial proposal and the

technical proposal;technical proposal;

i) The envelopes shall be marked as “FINANCIAL

PROPOSAL” and TECHNICAL PROPOSAL” in

bold and legible letters to avoid confusion;

Continued iii) initially, only the envelope marked “TECHNICAL

PROPOSAL” shall be opened;

iv) The envelope marked as “FINANCIAL PROPOSAL”

shall be retained in the custody of the procuring agency

without being opened.

v) The technical proposal shall be evaluated on the laid

down criteria.down criteria.

vi) The financial bids of the firm fulfilling the criteria are

opened and remaining are returned un-opened.

vii) The lowest evaluated bid based on the technical and

financial bids is approved.

Negotiated TenderingA procuring agency may engage in negotiatedtendering with one or more suppliers orcontractors with or without prior publication of aprocurement notification. This procedure shallonly be used when.only be used when.

i) The supplies involved are manufactured purely forthe purpose of supporting a specific piece ofresearch or an experiment, a study or a particulardevelopment.

Continued

ii) For technical or artistic reasons, or for

reasons connected with protection of

exclusive rights or intellectual property,exclusive rights or intellectual property,

the supplies may be manufactured or

delivered only by a particular supplier;

ii) For reasons of extreme urgency

Confidentiality

� The procuring agency shall keep all

information regarding the bid evaluationinformation regarding the bid evaluation

confidential until the time of the

announcement of the evaluation report

Alternative Methods of Procurements

a) Petty Purchases.

Procuring agencies may provide for pettypurchases where the object of the procurement isbelow the financial limit of ten thousand rupees.Such procurement shall be exempt from therequirements of bidding or quotation of prices:Such procurement shall be exempt from therequirements of bidding or quotation of prices:

b) Request for Quotations:

A procuring agency shall engage in this methodof procurement only if the following conditionsexists, namely:-

Continued Conditions

i) The cost of object of procurement is below

the prescribed limit of 100,000 rupees;

ii) The object of the procurement has standard

specifications;specifications;

iii) Minimum of three quotations have been

obtained; and

iv) The object of the procurement is to purchase

from the supplier offering the lowest price:

Direct ContractingA procuring agency shall only engage in direct contracting if the following conditions exist.

i) The procurement concerns the acquisition ofspare parts or supplementary services fromspare parts or supplementary services fromoriginal manufacturer or supplier.

Provided that the same are not available fromalternative sources;

Continued

ii) Only one manufacturer or supplier exists for

the required procurement.

iii) Where a change of supplier would oblige the

procuring agency to acquire material having

different technical specifications or

characteristics and would result in

incompatibility or disproportionate technical

difficulties in operation and maintenance:-

Continued

iv) Repeat orders not exceeding fifteen per cent

of the original procurement;

iv) In case of an emergency:

iv) When the price of goods, services or works is

fixed by the Government or any other

authority, agency or body duly authorized by

the Government, on its behalf.

Maintenance of Record and

Freedom of Information

i) All procuring agencies shall maintain a

record of their respective procurementrecord of their respective procurement

proceedings along with all associated

documentation for a minimum period of

five years.

Technical Evaluation of bids � Technical evaluation of bids is based on laid down

criteria given in the bidding documents to assess the

technical capability of the bidder on a quantitative

scale for the proposed project or procurement.

� The evaluation criteria is carefully selected with

reference to the particular procurement and must noreference to the particular procurement and must no

be generic.

� The selection of various technical evaluation criterion

will depend on the nature of procurement, expertise of

the procuring agency, availability of the perspective

bidders, time and budget etc.

Technical Evaluation of bids- Cont’d � Normally the technical evaluation/pre-qualification is carried

out at 100 points scale and the following essential areas

are covered as proposed by PEC:

� Financial Soundness 30

� Experience Record 35

� Personnel Capabilities 15

Equipment Capabilities 20� Equipment Capabilities 20

Total 100

- The score assigned can be changed based on the

nature of procurement and complexities involved

- The major heads may be broken down further to get

more quantifiable data

- You may add other parameters for assessing the

technical capabilities of the firms

Breakdown of major criterion given by PEC � General Experience: Total marks 35

� Projects of similar nature and complexity Completed in last

ten years. 15 marks

� 12 Marks are given if the contractor has completed at

least 3 projects of similar nature in last ten years.

� For less than 3 projects completed use the following

weightage:12 x (A/3) weightage:12 x (A/3)

� For more than 3 projects but less than 6 projects

completed use the following weightage.

� 12+ (A/6) x 3

� A = No of projects of similar nature Completed in last

ten years

� Full Marks are given in case of 6 projects or more.

� No marks for works less than specified limit

General Experience

S.No. Description Maximum

Points

i) Projects of similar nature and complexity

completed over latest 10 years.

15

ii) Projects of similar nature and complexity 10 ii) Projects of similar nature and complexity

in hand.

10

iii) Experience of Works) related to project

but not basic part.

5

iv) Status of enlistment with Government

Organizations and other agencies.

5

Sub-total: 35

� Projects of similar nature and complexity in-hand

during last ten years (10)

� 8 Marks are given if the contractor has 3 projects of

similar nature in-hand.

� For less than 3 projects in-hand use the following

weightage.8 x (A/3)

� For more than 3 projects but less than 6 projects in-� For more than 3 projects but less than 6 projects in-

hand use the following weightage. 8+ (A/6) x 2

� A = No of projects of similar nature In-hand during last

ten years

� Full Marks are given in case of 6 projects or more.

� Electrical works carried out during last five

years by the Sub-Contractor/JV Partner. (5)

� 4 Marks are given if the contractor has completed at

least 3 projects of similar nature in last five years.

� For less than 3 projects completed use the following

weight age. 4 x (A/3)

� For more than 3 projects but less than 6 projects � For more than 3 projects but less than 6 projects

completed use the following weightage. 4+(A/6) x1

� A = No of projects of similar nature

Completed in last five years

� Full Marks are given in case of 6 projects or more.

� Enlistment record with Government

Organizations & other agencies (5)

�1 Mark for each enlistment up to maximum of

five enlistments.

� Enlistment and Registration certificates available

� Current year renewable available or applied for � Current year renewable available or applied for

� The enlistment must be generic in the specified

category.

Personnel Capabilities

Sr.No. Description Maximum

Points

i) Graduate Engineers Registered with PEC

a) Number of Engineers b) Experience of Engineers in

number of years

6

3

number of years

ii) Number of Diploma Engineers in

Employment of the Firm

a) Number of Engineers b) Experience of Engineers in

number of Years.

4

2

Sub-total: 15

Personnel Capabilities� B.Sc Engineers registered with Pakistan Engineering

Council (PEC)- 9 Marks

� Associate Engineers- 6 Marks Total: 15 marks

� BSc Engineers: 9 Marks

� Experience (3-Marks) :

� 3 Marks will be given if the individual experience of at least 4

no. of B.Sc Engineers (professional) is equal to 15 years no. of B.Sc Engineers (professional) is equal to 15 years

or above.

� For less than 4 no of B.Sc Engineers having individual

experience of 15 years, marks will be given as per following

formulas: = (A/4) * 3

� A = No. of Engineers having individual experience of 15 years or above.

� Strength of Engineers (6 Marks)

� 6 Marks will be given if the total no. of Engineers registered with PEC are

15 nos. or above. For less than 15 no of B.Sc Engineers registered with

PEC marks will be given as per following formulas: = A/15) * 6

� A = No. of Engineers

� Associates Engineers (DAE)- 6marks

� Experience (2-Marks) :

� 2 Marks will be given if the individual experience of at least 8 no. of

Associates Engineers (DAE) is equal to 10 years or above.

� For less than 8 no of Associates Engineers (DAE) having individual

experience of 10 years, marks will be given as per following

formulas: = A/8) * 2

Personnel Capabilities

formulas: = A/8) * 2

� Strength of Associate Engineers (4 Marks)

� 4 Marks will be given if the total no. of Associate Engineers (DAE)

are 20 nos. or above.

� For less than 20 no of Associate Engineers marks will be given as

per following formulas: = (A/20) * 4

� A = No. of Associate Engineers

Equipment Capability� High value equipment should be an option to purchase, lease or hire.

Sr. No. Description Marks AssignedExplanation for Marks Obtained

1 Batching Plant (30cuM/hr Cap.) 10 8 Marks for each equipment

are given if the Contractor

meets the minimum

requirements given in the

prequalification document for

each item.

If the available quantity of

each equipment is less than

2 Concrete Pump 10

3 Crane (30 Ton Cap.) 10

4 (30 M Boom) 10

5 Dumper Trucks 10 each equipment is less than

specified limit give weightage

as.

8 x (A / Required Quantity)

If the available quantity of

each equipment is more than

the minimum equipment

requirement full marks will be

given.

A = Available quantity of each

equipment of each Item.

Total Marks =

(Marks Obtained/120) * 20

5 Dumper Trucks 10

6 Shower/ Loader/ Backhoe 10

7 Steel cutting & Bending Machine 10

8 Concrete Transit Mixer

(6 cuM/hr)

10

9 Cabin Hoist (1500 Kg Cap.) 10

10 Air Compressor (15 HP Cap.) 10

11 Form Work 10

12 Scaffolding Pipe 10

Total 20

Financial Soundness� For Financial Status assessment, the Applicants may be required to

submit Audited financial statements for the last five years or any other

document which verifies their Financial Status-30

� Available Bank Credit Line: 05 Marks

� 3 Marks are given if the available bank credit line limit is equal to 500

Million.

� For limit less than 500 Million, use following weightage 3 x (A/500)

� For the limit more than 50O million but less than 1000 million use � For the limit more than 50O million but less than 1000 million use

following weightage 3 + (A/1000) x 2

� A= Available Bank Credit Line Limit

� Full Marks are given in case of limit is 1000 million or more.

� Working Capital in last 3 years- 05 Marks

� Registration with income tax department -05 Marks

� Copy of Valid electrical license from Sub-Contractor/ JV Partner-05

� Litigation History in which Decision has been given against the firm-05

� Blacklisting from any agency-05

Case Study of a major project � The model for technical evaluation included the following parameters:

� Nature of Firm- 10 marks

� Offices and Outreach: 10

� Methodology and approach: 20

� Experience of similar works: (40)

� Financial soundness and bank references (10)

� Key personnel for the project (10)

� Two envelop single stage procedure was adopted for award of design � Two envelop single stage procedure was adopted for award of design

and consultancy work of the project.

� The tender was invited as per PPRA requirements.

� Each firm submitted two envelops i.e. Technical proposals and

Financial proposals in one sealed envelop.

� The technical and financial score ratio was set at 70:30

� The passing marks was established as 60%

� A total of 26 bids were received and technically evaluated on the

scale given on next slide.

Technical Evaluation � Nature of Firm- 10 marks

� Individual firm: 02

� Partnership: 03

� Company: 05

� Add 1 mark per year since establishment, Max 5 marks.

� Offices and Outreach: 10

� Islamabad office: 05

�Other: 01 marks per office max: 05

� Methodology and approach: 20

� Experience of similar works: (40)

� In hand (25)

� For Min two similar works: 10

� Add 2 marks per work.

� Completed ( 15)

� For Min four works: 05

� Add 01 marks for add work

� Financial soundness and bank references ( 10)� Financial soundness and bank references ( 10)

� Balance sheets: 05

� Income Stat:03

� Bank references: 02

� Key personnel for the project (10)

� Team leader: 05

� Core team members: 10

� References (10)

� National: 05 International-05

Technical Evaluation � Technical Evaluation Committee comprised the following:

� Director General Services-HEC

� Project Director AIOU

� Director General Planning

� Director Monitoring & Evaluation

� Executive Engineer-HEC

� All the 26 cases received were technically analyzed by the core � All the 26 cases received were technically analyzed by the core

team and 7 firm got the marks 60 or above and were technically

qualified with the following details:

� Firm A: 75 marks

� Firm B: 72 marks

� Firm C: 68 marks

� Firm D: 65 marks

� Firm E : 63 marks

� Firm F : 60 marks

Technical Evaluation

� The financial bids of the firms not securing the passing

marks of 60 were returned without opening and their

participation was appreciated in the process.

� The Financial bids of the firms technically qualified were

opened and the following bids were received:

� Firm A: 30 Million � Firm A: 30 Million

� Firm B: 27 Million

� Firm C: 26 Million

� Firm D: 31 Million

� Firm E: 27 Million

� Firm F: 29 Million

Financial Evaluation � Max Score: 30

�The lowest bidders get the max financial score

of 30 (Firm C)

�The score of other firms is calculated as:

� 30 x (lowest bidder price /Quoted bid)

For example the score of the firm A is worked out as: � For example the score of the firm A is worked out as:

A: 30 x ( 26/30) = 25 marks

B: 30 x ( 26/27) = 28 marks

C: 30 x ( 26/26) = 29 marks

D: 30 x ( 26/31) = 24 marks

E: 30 x ( 26/27) = 29 marks

F: 30 x ( 26/29) = 26.90 marks

Firm Technical Score

out of 100

Technical

Score

Out of 70

Financial bid

( Million PKR)

Financial

score out

of 30

Total

A 75 marks 52.50 30 25 77.50

B 72 marks 50.4 27 28 78.40

C 68 marks 47.6 26 30 77.60

Final Score Card Final Score Card

The Firm B securing highest evaluated score 78.40

C 68 marks 47.6 26 30 77.60

D 65 marks 45.5 31 24 69.50

E 63 marks 44.1 27 29 73.10

F 60 marks 42 29 26.9 68.90

Thank YouThank You