Tendering and Bidding Process

8/20/2019 Tendering and Bidding Process

1/19

Tendering and Bidding process Tendering and Bidding process

– NCB, ICB, tender documents,– NCB, ICB, tender documents,tender preparation andtender preparation andfoatingfoating

Prepared and Presented by:

Prof. Khem Dallakoti

Institute of Engineering


2/19

Tender Tender

Tender is an oer in writing by thetenderer (the person who oersthe tender) to execute some

specied wor! or to supp"y somespecied goods at certainrate#amount within a xed time

$rame under certain conditions o$agreement% This is the rst stepin the $ormu"ation o$ contract%


3/19

Purpose of BiddingPurpose of Bidding

&unds pro'ided $or the proectimp"ementation sha"" be used on"y $orintended purpose%

conomy and e*ciency sha"" be obser'ed –

best 'a"ue $or its money%+"" e"igib"e bidders sha"" be gi'en eua"

opportunity to compete%

-e'e"opment o$ domestic contracting and

manu$acturing industries sha"" beencouraged%

There sha"" be transparency in a"" stage o$the procurement process%


4/19

Bidding process . +-BBidding process . +-B

The Internationa" Competiti'e Bidding (ICB) processinc"udes six main phases/

+d'ertisement and Notication,

0reparation and Issuing o$ the Bidding -ocument,

Bid 0reparation and 1ubmission, Bid 2pening,

Bid 'a"uation, and

Contract +ward


5/19

Advertisement andAdvertisement and

NoticationNotication 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 borrower4scountry (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 inng"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$ thenancing agreement%

&or "arge or specia"i5ed contracts, +-B may additiona""y reuire thatthe I&B be ad'ertised in we"".!nown technica" maga5ines or tradepub"ications, or in newspapers o$ wide internationa" circu"ation, insu*cient time to enab"e prospecti'e Bidders to prepare and submit

Bids%


6/19

Preparing and Issuing aPreparing and Issuing a

Bidding DocumentBidding Document The mp"oyer is responsib"e $or preparing and issuing the Bidding -ocument

$or a specic contract%

The Bidding -ocument sha"" be prepared by the mp"oyer on the basis o$ theappropriate 1B- issued by +-B, as this is a mandatory reuirement $orcontracts 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 modication, 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 bepro'ided by the mp"oyer in the $o""owing sections o$ the Bidding -ocument/

◦ 1ection 9 . Bid -ata 1heet

◦ 1ection : . 'a"uation and ;ua"ication Criteria

◦ 1ection < . Bidding &orms

◦ 1ection = . "igib"e Countries◦ 1ection > . mp"oyer4s ?euirements

◦ 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%


7/19

Bid Preparation andBid Preparation and

SubmissionSubmission 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 reuests $or c"arications $rom Bidders andamend the Bidding -ocument as needed%

◦ +mend the Bidding -ocument on"y with prior appro'a" o$ +-B%


8/19

Bid 2peningBid 2pening

The mp"oyer is responsib"e $or the Bid 2pening, which is a critica" e'ent in the bidding process% The mp"oyer sha"" appoint experienced sta to conduct the Bid 2pening, as inappropriateprocedures at Bid 2pening are usua""y irre'ersib"e and may reuire cance""ation o$ the biddingprocess with conseuent 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 specied in the Instructions toBidders $or a"" Bids recei'ed not "ater than the date and time o$ the bid submission dead"ine%

The term Bid 2pening can be mis"eading because a Bid $or which a Bid 3ithdrawa" or Bid1ubstitution notice was recei'ed on time sha"" not be opened, but returned unopened to the

Bidder% The seuence 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 Bid2pening, as Bids that are not opened and read out at Bid 2pening sha"" not be considered$urther%

◦ Not reect any Bid at Bid 2pening, except $or "ate bids recei'ed a$ter the date and time o$the bid submission dead"ine% Technica""y, "ate bids shou"d not reach the Bid 2pening, but incertain cases a Bidder may attempt to submit its bid at the Bid 2pening p"ace a$ter thedead"ine%

◦ xamine the Bids at Bid 2pening in accordance with the pro'isions o$ the Instructions toBidders% The mp"oyer sha"", howe'er, 'eri$y at Bid 2pening the 'a"idity o$ thedocumentation such as 0ower o$ +ttorney or other acceptab"e eui'a"ent document asspecied in the Instructions to Bidders conrming the 'a"idity o$ a bid modication, bidwithdrawa", or bid substitution, because a withdrawn or substituted Bid sha"" not be openedand in conseuence not read out and, there$ore, not be considered by the mp"oyer%1imi"ar"y, a bid modication sha"" be opened, read out, and recorded to modi$y a Bid thatwas recei'ed on time%


9/19

Bid Evaluation andBid Evaluation and

Contract AwardContract Award The mp"oyer is responsib"e $or bid e'a"uation and

contract award% The mp"oyer sha"" appointexperienced sta to conduct the e'a"uation o$ theBids% Dista!es committed at bid e'a"uation may "aterprompt comp"aints $rom Bidders, reuiring

ree'a"uation o$ the Bids, with conseuent de"ays andwaste o$ resources%

The mp"oyer, in obser'ance o$ best practices, sha""/

◦ Daintain the bid e'a"uation process strict"y condentia"%

◦ ?eect 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"ication

criteria specied in the Bidding -ocument%


10/19

Tender Notice Tender Notice

Tender Notice/ It is the in$ormationin'iting bids $rom competent andcapab"e contractors and $orms a

part o$ contract document% It shou"dbe wide"y pub"ished in importantnewspapers% Tender notice is not an oer% It is an

in$ormation pro'ided to a"" theprospecti'e bidders to submit theoroer


11/19

In'itation $or bid . +-BIn'itation $or bid . +-B( tender notice)( tender notice)

The In'itation $or Bids pro'ides in$ormation that enab"es potentia" Bidders to decidewhether to participate% +part $rom the essentia" items "isted in the 1tandard Bidding-ocument, the In'itation $or Bids shou"d a"so indicate any important bid e'a"uationcriteria, such as the app"ication o$ a margin o$ pre$erence in bid e'a"uation, or ua"icationcriteria, i$ no preua"ication too! p"ace%

The In'itation $or Bids is not a part o$ the Bidding -ocument and there$ore it sha"" not beinc"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 !nownand $ree"y accessib"e website in ng"ish% + copy o$ the In'itation $or Bids sha"" besubmitted to +-B $or appro'a" and $or pub"ication in the +-B 3ebsite in accordance withthe pro'isions o$ the nancing agreement

&or "arge or specia"i5ed contracts, +-B may additiona""y reuire that the In'itation $or Bidsbe ad'ertised in we"".!nown technica" maga5ines or trade pub"ications, or in newspaperso$ wide internationa" circu"ation, in su*cient time to enab"e prospecti'e Bidders toprepare and submit Bids%


12/19

1amp"e o$ notice . +-B1amp"e o$ notice . +-BIn'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 costo$ % % % % % insert name of name of project . . . . .. 0art o$ this nancing wi"" be used $or payments under the contract9 named abo'e . Bidding isopen to preua"ied: bidders $rom e"igib"e source countries o$ the +-B%<

9% The % % % % % insert name of Employer . . . . . (―the Employer‖ invites sealed !ids from preua"ied: e"igib"e bidders $or the construction andcomp"etion o$ % % % % % 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 address) incl%de *ip code. . . . .

% % % % % telephone n%m!er incl%ding co%ntry code. . . . .

% % % % % email address. . . . .

% % % % % fa+ no. . . . .

% 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%


13/19


14/19

arnest money or bidarnest money or bid

securitysecurity It is the amount o$ money deposited whi"e bidding asa guarantee o$ the partyFs wi""ingness o$ carrying outthe wor! i$ awarded to him%

ItFs amount genera""y ranges $rom 6G to :G%

9.:G o$ the 0roect cost is demanded as earnestmoney%

This $und is re$unded to unsuccess$u" bidder%

I$ a success$u" bidder $ai"s to carry on (sign) thecontract, this amount is $or$eited%


15/19

Type o$ bidding Type o$ bidding

National Competitive Bidding&NCB'

International Competitive

Bidding &ICB'(


16/19

National CompetitiveNational Competitive

Bidding &NCB'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 proect o*ce,-istrict +dmin o*ce, --C o*ce, Hand re'enue o*ce,treasury contro""er o*ce and C+N o*ce%


17/19

International CompetitiveInternational Competitive

Bidding &ICB'(Bidding &ICB'( I$ the amount o$ wor! is big and nationa"#domestic

contractors cannot per$orm the ob, e"igib"e biddersare 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"omaticmissions wor!ing in the country%


18/19

ICB – agentICB – agent

In ICB the $oreign bidder sha"" $urnish the $o""owingin$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%


19/19

The end

Documents

Tendering and Bidding Process