1. TENDER EVALUATION lesson 7

2. EVALUATION OF TENDERS
The purpose of tender evaluation is to identify the lowest evaluated bidder i.e. which when awarded the contract, shall
ensure
best value for money is obtained
delivery/completion shall be on schedule
the right quality and quantity is supplied.

3. STEPS IN TENDER EVALUATION
Tender evaluation should be a systematic three-step method of appraising bids/quotations.
  The three steps are as follows:
(a) Check for Substantial Responsiveness
This check establishes that the quotation/tender meets the basic requirements to constitute a valid offer that can form the basis of a contract, i.e.
(i) Presence, adequacy and validity of bid security (where required),
(ii) Completeness of Bids (i.e. partial offers not accepted), and
(iii) Eligibility of bidder and goods

4. This check should be summarized in tabular form e.g..
BIDDER
CRITERIA A B C D
Bid Security
Tender Form
Completeness of Bids
Eligibility of goods and tenderer
SUBSTANTIAL RESPONSIVENESS

5. The Procurement Guidelines list what shall be considered non-responsive bids, e.g.
Late bids
Telex, telegraphic or telephone bids
Unsolicited offers
     Tenders revised by tenderer after tender closing
      Incomplete tenders, etc.

6. b. Technical Evaluation
All substantially responsive bids must be subjected to the technical evaluation.
The technical evaluation checks the bids for compliance to the technical specification. However, the technical specification should not include frivolous features (such as, number of wheel nuts on a motor vehicle).

7. BIDDERS A B C D Minimum Specification Make/model Compaq Presario
IBM 300 GL
HP 2000
Acer 2000
Pentium III 400 MHz Y
8.0 GB Hard disk
512 KB Cache N
34 x CD Rom drive
3.5 Diskette Drive
15” Colour monitor
SUBSTANTIAL RESPONSIVENESS
YES NO

8. (c) Commercial Evaluation
The Commercial Evaluation covers the commercial aspects of the offer i.e. price, delivery, payment terms, warranty, after sales support ,standardization, etc.

9. Price Delivery period 4 weeks 6 weeks 8 weeks Warranty 1 year 2 years
BIDDERS
EVALUATION CRITERIA A B C
Price
GBP220,000.00
(K800,000.00)
ZAR550, (K780,000.00)
US$470, (K950,000.00)
Delivery period
4 weeks
6 weeks
8 weeks
Warranty
1 year
2 years
3 years
After-sales support
Yes
Payment terms
30% with order 50% on delivery
20% one month after delivery 50% with order
100% with order
Ranking 1 2 3

10. If the lowest evaluated is not the lowest priced, this must be clearly explained and reasons for passing over the lowest priced quotation/bidgiven.

11. Recommendation
The evaluation report should end with a clear recommendation as to what decision is advised e.g..

12. Delivery Date Make/Model QTY Supplier
It is recommended that the contracts for the supply and delivery
of motor vehicle be awarded as follows:
Make/Model
QTY
Supplier
Total Contract Price (inclusive of VAT)
Delivery Date 1
Mitsubishi L cc Petrol 4x4 Van 02
Marunouchi Motors Ltd
K198,800,000.00
3 weeks 2
Toyota Camry 2000
Toyota Zambia Ltd
K192,000,000.00
4 weeks 3
Isuzu KB 280 Diesel 4x4 Van c/w canopy 04
Action Auto Ltd.
K382,724,000.00
4-6 weeks