Translate

Open and Award Tender

Open and Award Tender

In earlier article, we studied how procurement of goods and services is concerned with various types of tenders. In this article, we will go through the process of opening and awarding tender. 

Open and Award Tender

Open and Award Tender

In a standard tender, a process is adopted to carry out all functions i.e.

(i) Estimation of Tender’s Value including Quantity and Amount (ii) Expression of Interest (EoI) (iii) Request for Proposal (RFP) (iv) Request for Quotation (RFQ) (v) Pre-bid Conference (PBC) (vi) Notice Inviting Tender (NIT) (vii) Approval of the Tender (viii) Publicity of the Tender (ix) Earnest Money Deposit (EMD) (x) Bid Evaluation (xi) Tender Opening Committee (ToC) - Technical (x) Approval to technically qualified Tenders (xi) Tender Opening Committee (ToC) - Financial (xii) Approval to financially qualified Tenders (xiii) Tender Evaluation Committee (TEC) (xiv) Approval to technically and financially qualified Tenders (xv) Purchase Order (xvi) Award of Contract (xvii) Performance Security Deposit (xviii) Agreement (xix) Refund of EMD (xx) Notice or Publicity about award of Tender (xi) Monitoring of Contract (xii) Evaluation of Contract

Let’s firstly know about the standard bid document:

Tender Document:

In order to realize the bids in proper format, the procuring authorities prepare a standard bid document known as tender document. It is provided as ‘Detailed Notice Inviting Tender’ i.e. DNIT. It contains instructions to the bidder regarding filling the tender form, terms and conditions of the contract, requirements of the procuring authorities, detailed specifications on which basis the delivered products or services will be evaluated, the form of contact, and other standard forms. The tender document must clearly specify the evaluation criteria of bids.

Earnest Money Deposit:

The provision of safeguarding the procuring authorities from the bidders, not seriously interested in providing goods and services, is Earnest Money Deposit known as EMD. The bidder after submitting the technical and financial envelope; cannot withdrawal or alter the bid. In case, it is done, the EMD is forfeited. The organizations registered with Central Purchase Organization or National Small Industries Corporation are exempt to deposit the EMD. The amount of EMD is refunded back the the bidders after the completion of process of awarding tender. The unsuccessful bidders are refunded bank and the successful bidder’s amount of EMD is adjusted in his payments.

How much EMD should be asked to deposit?

The amount of EMD depends upon the estimated value of the tender. It is from 2% to 5% of the estimated tender value. In Haryana State, the Government fixed the maximum ceiling for EMD i.e. 2 Lacs. The EMD is deposited through Demand Draft or Bankers’ Cheque or Bankers’ Guarantee.

Performance Security:

In order to safeguard the interests of the procuring authority, the successful bidder is asked to deposit performance security. The Performance Security is the amount which can be forfeited in case the bidder is not providing goods and services as per the terms of the contract.

How much Performance Security’s amount can be?

The performance security is from 5% to 10% of the tender value on which the successful bidder agreed to provide goods or services as per the terms and conditions of the contact. The amount is realized through Demand Draft. The performance security is refunded back after the full completion of the term of the contract, usually after 60 days beyond the date of completion of all contractural obligations of the supplier including warranties.

Evaluating Bids:

The bids are evaluated on the basis of the criteria provided in the tender document. In accordance with the time required to be taken for evaluation, the date of award of tender is specified accordingly in the tender document. The process of tender evaluation is very confidential until the award of the tender and such information cannot be disclosed even under ‘Right to Information (RTI) Act’ till the tender is awarded successfully. Two types of committees are formulated i.e. Tender Opening Committee and Tender Evaluation Committee.

(i) Technical Bid Evaluation:

The tender document comprises terms and conditions to give technical and commercial bids for the tender. The technical bid usually comprises the check list to evaluate the status of bidders in various terms. First of all, the technical envelope is opened and the technical check list is evaluated with the technical terms provided in the tender document.
The bidders will either qualify or not qualifying at technical terms. Those who are dis-qulalified are reject at this stage of evaluation. This is First stage of evaluating bids and the price or amount is silent. Without knowing how much the vendor or bidders are demanding for supplying products or rendering services, they are evaluated on Technical terms and conditions. In initial examination, the following factors are examined:

(a) Whether the tender meets the eligibility criteria detailed in Tender Document or not?(b) Whether all crucial documents duly siged and attested by the bidder, have been attached or not?(c) Whether amount of Earnest Money Deposit have been furnished in the bid documents or not?(d) Whether the tender satisfies all conditions provided in the tender document or not?(e) Sample is tested if required as per terms of conditions of the Tender(f) The bidder’s capacity is evaluated as per the requirements of providing goods and services(g) The bidder’s turnover is verified as per the terms provided in tender document(h) The statutory documents are verified like PAN Number, Registration Number, GST Number etc.

(ii) Financial Bid Evaluation:

Once a bidder qualifies in the technical stage of evaluation, his financial or commercial envelope is opened in second stage of evaluation known as Financial Bid Evaluation. The bidders who disqualify in the first round of technical bid evaluation are not provided opportunity to be evaluated in second round; in other words, their commercial envelopes will not be opened. The Financial Bid Evaluation covers:

(a) Arriving at outcome price of the bid(b) Determining the Lowest-1, Lowest-2, Lowest-3 Vendors of the Tender(c) Determining the reasonability of the rates quoted by Lowest -1.(d) Recommending for the Negotation (if required)

Copyright © 2019 Dr. Lalit Kumar. All rights reserved. 

You might also be interested in the following:

Types of Tenders in Government

Tender and Central Vigilance Commission

e-Procurement, Purchase Matters and Inventory Management

2 comments:

  1. Interim Valuation Certificates Negotiate and agree the Final Account figure with the POST-CONTRACT in Dubai, Sharjah,, Kuwait, Qatar, Bahrain, Oman, KSA Final Valuation Certificate. Tender documents are prepared and submitted to the Engineer to issue to approved Tenderers.

    Preparation of Interim Valuation Certificates :

    Usually, on a monthly basis, following a site visit to ascertain the progress of Works at site, an Interim Valuation is submitted to enable the Engineer to issue the Interim Payment Certificate.

    Pricing of Variations :

    The contractual entitlement and cost implications, if any, are determined and recommendations made to the Engineer to enable him to obtain approval from the Client and issue the Engineer’s Instructions.

    Nominated Sub-contracts :

    For sections of Works, where the Client is to nominate a Subcontractor, the Tender documents are prepared and submitted to the Engineer to issue to approved Tenderers. On receipt, a detailed review is carried out and our recommendations are given to the Engineer / Client for final decision and appointment.

    Site Progress / Design Team Meetings :

    The Quantity Surveyor will attend the progress meetings as well as the design team meetings.

    Cost Report :

    On a quarterly basis, a Cost Report is submitted which will clearly indicate

    • Work done to-date
    • Outstanding Work
    • Agreement
    • Variations to Contract
    • Form of Tender
    • Additional Works
    • Possible Additions / Omissions to the Contract
    • Anticipated Final Cost

    This Report will enable cost control and facilitate any corrective measures required to ensure that the project costs remains within budget.

    ReplyDelete
  2. Thanks for sharing. Reach out Dynamic Netsoft Technologies, we're a pioneer Microsoft gold partner who is expertise in Bid Management

    ReplyDelete

Happy to hear from you. Please give your comments...

Auto_1

Horizontal Responsive1

Popular Posts

LoP_1

Special Offer!

Funny Baba

Free Seminars

Featured post

Dr. Lalit Setia CV

Free Notes

Tips to Grow

Earn Money

Popular Posts

Free Download

Tax Saving

Fun in Life

Labels

Professional Guidance Government Income Tax Tax Deduction at Source General Knowledge Important Questions Income Tax TDS Accounting Deduction Governance Haryana Income Tax Return Latest Questions Competitive Examination Current Affairs Drawing and Disbursing Officer Audit Auditing Covid Financial Financial Management Financial Terminology Goods and Services Tax India Knowledge Lalit Kumar Lalit Kumar Setia Money Skills Tax Planning Virus Accounts Attitude Banking Compliance Currency Economic Problem Employee Facts Free Notes Functions GST Government Accounting Government eMarketplace Incomes Information Interest Omicron Virus Organization Payment Science Scientific Causes Section 80C TDS on GST Tips Tricks Very Important Questions answers Administration Advance Tax Anti-Virus Automatic Back Up Balance Sheet Bitcoin Certificate of TDS Computer Control Corruption Creativity Cryptocurrency DDOs Deductions Deductor Deductors Development Dr. Lalit Kumar Duties EPS Economy Employer English Evaluation Example Expenditure FAQs Finance Financial Accounting Financial Administration Financial Control Frustration GeM General Studies Geography Google HRA Information Technology Investment Life Management Meditation Omicron Performance Planning Positivity Process Procurement Public Public Administration Public Services Purchase Matters Questions on General Studies Resources Resume Saving Services Stress Success System Tax Collection Taxable income Technique Technology Tender Training Trust 26AS 80GG 80GGC AIS Statement ATM Abatement Abbreviations About Dr. Lalit Setia Accountant's Duties Accounting Heads Accounting Standards Accounts Branch Accrual Accumulated Fund Act Action Administrative Admissibility of DA Advance Allowance Almighty Amalgamation Amazon Amount Amrapali Group Android Annual General Meeting Annual Information Statement Anomaly Anti-Corruption Anti-virus Protection Antonyms Appraisal Appreciation Arbitrator Arrears Articles of Association Asset Auctio Audit concerns in procurement Automated Teller Machine Automatic Teller Machine Autorised Capital Average Award Bad Debts Balance of Payments Bankrupt Barter Benchmark Bhagat Prahlad Bid Bikaner Bio-Data Bitcoins Bitcoins Network Block Chain Blood Breathing Bribe Buddha Budget C M Window CV Canada Cards Caring Nature Cash Book Cash Flows Central Bank Chapter Character China Clerks Commitment Common Man Communication Communization Competitive Examinations Computation Computer Virus Computerization Conflict Contacts Contribution of Employees Corona Crime Crude Oil Culture Curriculum Vitae Custody Cyber Cybercrime Data Dearness Allowance Debit and Credit Decision Making Deduction under section 80GG Delay in Service Delhi Department Dera Sacha Sauda Desktop Devices Digital Transformation Double Click Double Entry System Dr. Lalit Setia EPF Earnest Money Deposit Earning Money Economic Growth Electronic Payment System Employment Energy Solutions Environment Evasion Examination Exempt Exemption Exemptions Expenditures Experience Exploitation Facebook Failure Festivals Final Accounts Financial Rules Financial Statements Formula Frauds Games General Generation Gap Goals Google search bar Government Deductor Government Officers Grades of Employees Gurmeet Ram Rahim Singh HRMS HUF Harish Chandra Higher Education Hindu Undivided Family History Home Loan House Building Advance House Property House Rent Allowance How to stay protected Human Resource Management System Humanity IAS Officers IT Skills ITR Importance Income Statement Income Tax Changes Income Tax Refund Income and Expenditure Account Income from Gifts Indirect Cost Innovation Internet Interpersonal Interpretation Inventory Inventory Management Investigation Investments Irregularities Jiomeet App Jokes Kids Labour Laptop Laundering Leadership Leadership Tussle Learn Learn English Learn Excel Shortcuts Learning Ledger Ledgers Liquidity Logical Lokpal Lost Crypto currencies Love MS-Office MS-Word Maldives Mankind Mask Material Mathematics Matters Meaning Measurement Equipment Meerabai Messages Methods Minimum Income Scheme Misuse Mitigation Mobile Monitor Monitoring Morality Motivation Mumbai Lockdown NPS National Highways National Pension National Pension System Nationwide Payment News Non Performing Assets Non-performance Official Life One Liner Questions Outstanding PAN number Pakistan Parents tips Pebbles Penalty Pension Per Day DA Petroleum Phonebook Practices Prevention Prices Prime Minister Private Gain Probability Problem Procedure Protection Publica Publishing Purchase Question Quotation Quotes Rational Decisions Rebate Reforms Register Registration Relationship Rent Paid Reporting Research Retirement Robert Vadra SAP SWOT Analysis Saint Ravi Dass Salaries Saudi Arabia Scam Scientific Searching emails Section 234 (a) Section 234 (b) Section 234 (c) Section 87A Security Security of Bitcoins Self Growth Shortcut Smashwords Social Activists Software Space Speculation Spyware Standard Deduction Standard Deduction on Salaries Standards Statistics Story on Husband and Wife Study Material Sugamya Pustakalaya Superintendent Symbols Symptoms of Omicron Synonyms TA Rules TAN TDS Payment Talent Search Tax Credit Taxation Taxpayers Techniques for fast and efficient work Thought Tips for Students Toddlers Tools of Rulers Tourism Trial Balance Type UCP Uncertainty Unemployment Uniformity Unique Code of Payee United States of America Users Using Asterisk Using Quotes Using Site Using minus Utilization Utilization Certificate Vigilance Bureau Whatsapp Working Capital e-Payments e-filing eMarketplace eProcurement financial procedures gmail immunity innovative solutions pandemic records management red-handed speed vaccine बैंकिग मापने वाले यंत्र राष्ट्रीय राजमार्ग

Happy Moments

Learn and Update

Popular Posts

Auto_1

Horizontal Responsive1