1 1 Module II. Bidding and Evaluation Process I.Bidding documents (Stages of bidding & preparation of bidding document) II.Bid evaluation methods (principles of evaluation and methods) III.Workshop (Preparation of bidding document & Evaluation of bids) IV.Assessment of the day

2 2 а. Stages of bidding b. Standard bidding documents b.1 Subject matter of bidding document b.2 Preparation of bidding document Bidding documents (Stages of bidding & preparation of bidding document) /Module II.1/

3 Establishing the ‘Evaluation Committee’ (EC); Defining of procurement method; /Stating the justification except open bidding;/ Preparing Bidding documents (BDs); Publishing of bid Invitation; Clarification of Bidding document from bidder Pre-bid meeting to ensure the ‘quality’ of Bidding document Response to the clarifications and/or Amendment to the Bidding document basing on the clarifications Bid opening; Evaluating of bids; Contract award. M.II.1. а. Stages of bidding SCOPE of EC FUNCTIONS

4 Why we are giving an importance on following 4 actions that should be taken by Procuring entity (PE) in each procurement? 1.Clarification of Bidding document from bidder Bidders should be aware of their opportunity to clarify the requirements given by PE where necessary. In case of any violations, there should be a room to fix it before going so far. 2. Pre-bid meeting to ensure the ‘quality’ of Bidding document It is helpful for both of PEs and potential Bidders to elaborate and fix the BDs and prepare quality bid as well! 3. Response to the clarifications and/or Amendment to the Bidding document basing on the clarifications Bidders those who submitted clarification and/or raised the issue, should be informed back from PEs and there also must be measures to take as a response action. For instance, amendment to the BDs… M.II.1. а. Stages of bidding

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7 Use of Bidding documents Limited bidding Limited bidding Request for quotation /preparing quotation/ Open bidding Open bidding Bidding documents Bidding documents /preparing of bid / Comparison Comparison Direct contracting Direct contracting Bidding documents M.I.2 b. Standard bidding documents

8 Content of Standard Bidding Document M.I.2 b. Standard bidding documents PART I.Bidding Procedures Section 1 - Instructions to Bidders (ITB) Section 2 - Bid Data Sheet (BDS) Section 3 - Evaluation and Qualification Criteria (EQC) Section 4 - Bidding Forms (BDF) PART II.Requirements Section 5 - Drawings Section 6 - Works Requirements (WRQ) PART III.Conditions of Contract and Contract Forms Section 7 - General Conditions (GCC) Section 8 - Particular Conditions (PCC) Section 9 - Contract Forms (COF) Attachment - Invitation for Bids (IFB)

9 Preparation of Bidding documents (BDs) M.I.2 b. Standard bidding documents (ITB)(BDS)(EQC)(BDF)(Draw)(WRQ)(GCC)(PCC)(COF)(IFB)(ITB)(BDS)(EQC)(BDF)(Draw)(WRQ)(GCC)(PCC)(COF)(IFB) Standard BDs BDs Produce:(Draw)(WRQ)(EQC)Revise:(BDS)(PCC)(IFB)

10 Subject matter of Bidding documents Requirements on Eligibility and Capacity of Bidder WHO Goods, Works, Services to procure WHAT Evaluation principles and method HOW TO SELECT Place to deliver WHEN/WHERE Bidding requirements Contractual requirements M.I.2 b. Standard bidding documents

Publishing of Bidding document WhoWhat How to select When/Where Submission of BidWhoWhatHow/WhenPrice OFFERACCEPTANCE MUTUAL UNDERSTANDING; NO NEED TO ARGUE DURING TENDERING & CONTRACTING IN CASE OF QUALITY BIDDING DOCUMENTS! &

12 Case for 3 minutes: Put sections of SBDs where appropriate! WHOWHATHOW TO SELECTWHEN/WHERE (ITB)(BDS)(EQC)(BDF)(Draw)(WRQ)(GCC)(PCC)(COF)(IFB)

13 а. а. Evaluation principles (Evaluation guideline, approved by Minister of Finance #81,2007 ) b. Evaluation stages c. Evaluation methods Bid evaluation methods (principles of evaluation and methods) /Module II.2/

14 Confidentiality -Personal Confidentiality of Bidders -Possibility of Influence from Bidders Modification of bid -Before bid submission deadline/YES -After submitting and opening the bids/NO Clarification of bid -Explanation without changing the Subject matter of the Bid Reject non-responsive bid -Review bid (Article 27, PPLM) -Detailed evaluation on Net Value of the bid (Article 28, PPLM) Bid validity period -Fixed: 45 days (once to extend with approval of MoF) Evaluation for each package/lot -Summary of the total evaluated price Principles M.II.2.а. M.II.2.а. Evaluation principles

1. Review All bids submitted before the deadline for bid submission and opened should be reviewed. 2. Detailed evaluation Technically responsive bids should be evaluated accordingly. 3. Verification Cross- examination of lowest evaluated bid M.II.2 M.II.2 b. Evaluation stages Technically responsive bids Technically and financially responsive bids Ranking: I, II, III Lowest evaluated, technically and financially responsive BID

16 I.1. Eligibility of bidder -Conflict of interest, Non-performance and Litigation history, I.2. Qualification of Bidder -Prequalification before bid submission -General, Financial and Technical criteria to meet I.3. Verify the validity of bid -Signature, Bid forms I.4. Bid security -Amount and Validity I.5. Technical responsiveness & Completeness -Requirements of Bidding document (Draw, WRQ, PCC etc.,) I. Review M.II.2. M.II.2.c. Evaluation methods

17 II.1. Number of bids to be evaluated II.2. Correction of arithmetic errors II.3. Miscellaneous cost II.4. Modification or discount of Bid price read-out II.5. Convert into one currency II.6. Addition II.7. Evaluation criteria II.8. Calculation of monetary facts II.9. Conclusion for decision on contract award II. Detailed Evaluation M.II.2. M.II.2.c. Evaluation methods

18 II. Result of Detailed Evaluation M.II.2. M.II.2.c. Evaluation methods Bid Price Comparative Price II I III

19 III.1. Domestic Preference III.2. Conditional Discount III.3. Re-verification of Qualification III.4. Alternative bids III.5. Calculate the Contract Price III.6. Bid Evaluation report III. Verification or Examination of Lowest Evaluated bid M.II.2. M.II.2.c. Evaluation methods

20 III. Bid Evaluation M.II.2. M.II.2.c. Evaluation methods Bid Price Comparative Price CONTRACT PRICE

21 PUBLIC PROCUREMENT Procuring entity Executor (supplier) Contract for procuring goods, works and services Contract regulation State organizations Private sector Legislation on procurement Civil Code

22 Special conditions which are necessary to be specified in a procurement contract Contract valueContract value Payment conditions and typesPayment conditions and types Advance payment guarantee’s amount and typeAdvance payment guarantee’s amount and type Procuring entity’s supervision and other conditionsProcuring entity’s supervision and other conditions Performance guarantee’s amount and typePerformance guarantee’s amount and type Commercial conditionsCommercial conditions Schedule for supplying goods and executing works and servicesSchedule for supplying goods and executing works and services Conditions and methodology for making changes and reconciliations in the contractConditions and methodology for making changes and reconciliations in the contract Procurement contract conditions

23 а. а. Preparation of Bid invitation and Technical specification for 5 Ambulance Car (20 minutes) b. Evaluation of submitted bids (15 minutes) c. Quiz on cases happened in public procurement (10 minutes) Workshop/Case study /Module II.3/

24 Prepare the 1.Bid invitation 2.Technical specification For Procurement of 5 Ambulance Car, (Budget approved is MNT 60 mln) Workshop (5 in each group) а. а. Preparation of Bid invitation and Technical specification for 5 Ambulance Car (20 minutes)

25 BiddersABCD 1. Price (ml.MNT) read-out Technical Responsiveness -Number of seat (3) … … Fuel consumption 19l 15l 20l 20l (less than 20l/per 100km) Workshop (5 in each group) а. а. Evaluation of submitted bids (15 minutes)

26 1.If there is only bid submitted, should P.E reject this bid due to non competitiveness? 2.Is lowest price is the aspect of decision to award a contract? 3.How often bidder can modify his/her bid submitted? 4.Do you believe that Government can procure best quality? 5.If you were there, would you go for Best Value in public procurement? 6.Then, how to make it? Explain (all participants) c. Quiz on cases happened in public procurement (10 minutes)

27 Express what you learn in … 3 words … 5 words …7 words Assessment of the Day 1

28 THANK YOU! SEE YOU TOMORROW WITH HOMEWORK HOMEWORK