Tender Technical Evaluation

This is a modification of tendering procedure to enable an indepen­dent evaluation of how a bidder proposes to meet the owner"s tech­nical requirements. Two envelopes are submitted — one containing technical details on which an owner would appreciate an indepen­dent evaluation, the other containing financial details of the bid. The committee opens the "technical" envelopes of the various bids; their engineering technical packages go to a technical committee for separate evaluation. This process eliminates the technically unacceptable offers from further consideration. After narrowing down the final selection of technically acceptable offers, the finan­cial envelopes will be opened and evaluated. This is the stage in which the lowest price and successful bidder are determined.

Bids accepted into the first technical-evaluation stage are exam­ined according to specific criteria. These considerations include the following:

• Management system of the contractors company and its size

• Form of administrative organization onsite

• Previous general experience

• Quality standards criteria followed by the contractor

• Health, safety, and the environment (HSE) policy followed by the contractor, and records of the latest reported incidents

• Previous experience in the same project

• Equipment available

• Time schedule and the overall duration of the project completion

The above criteria are more or less important depending on the size and type of the project. Some projects have a specific nature. For example, for some projects the time factor is very important and an increase in time may affect the project. In hotel projects, any delay reduces the number of days before a hotel is open, a period in which no profits are realized by the owner. For oil companies, each day represents a loss of the number of barrels of oil produced. In such projects, considerable attention and weight is given to the schedule and time. In other projects, safety requirements may be the most important

A points system is commonly used to weigh the best techni­cal offer. Each element is assigned its weight, e. g., 20 degrees for the duration of the project. That is the technical offer which gives the minimum period of time garners 20 points, whereas contract proposals providing a longer execution time are allocated fewer points. The company obtaining the highest total is the technical winner. Many companies and government departments that fre­quently resort to putting technically complex projects out to tender maintain their own points system criteria, requiring the technical offerings of a bid to pass thresholds of as low as 50 to as high as 70 per cent in order to make the final cut. The points-table and the relative weighting of each technically significant item is set out in the tendering process documents.

The following example illustrates the technical points-system to be applied to evaluating tendered offers to construct a nuclear plant,

A. Experience

Table 7.2 Experience score

Item

No. of Points

1. General activity/standing of firm (year of establishment, number of employees, etc.)

2. Tender’s past and recent experience and the consortium members (if any); they have participated in two nuclear power projects of 500 MW and above using water cooled reactor technology in the last five years as a minimum in two different locations. In addition, they have successfully completed three similar proj­ects in the last 30 years, one of which is outside of home country. Tender and all the consor­tium members (if any) shall provide details of the required experience as well as its current workload.

50

Table 7.2 (cont.) Experience score

Item

No. of Points

Site studies and evaluation

100

Preparation of bid documents, invitation of bidding, bid evaluation and negotiation, and preparation of contract documents

50

Project management and implementation includes commissioning

100

Technology transfer and personnel training

50

Sub total

350

B. The Work Plan

Table 7.3 Work plan score

Item

No. of Points

Submittal of the tender in compliance with the terms and conditions listed in the tender document

50

Submittal of the tender in compliance with the technical requirement described in the tender document

50

Adequacy of the man months indicated in the proposal to execute the required services

75

Tendeds proposed project time schedule and description of the approach to completeness of the work

50

Tender’s localization plan to submit a complete program describing the components of the equipment that would be manufactured locally

25

Adequacy of the quality assurance program

50

Tender’s organization chart and adequate manpower data of tender’s personnel to be assigned during the execution of the work to meet the tenders schedule

100

Sub total

400

C. Financial Capability and Experience Table 7.4 Score for financial capability and experience

Item

No. of Points

Tender’s financial capability and audited financial data for the last three years

75

Tender to demonstrate its knowledge of the project international co-financing institutions procurement processes

75

Sub total

150

D. Industrial Safety Table 7.5 HSE score

Item

No. of Points

Tender understands generally recognized industrial safety standards

20

Tender’s industrial safety and health performance has progressively improved over the last 3 (three) years

40

Tender has submitted an acceptable industrial safety plan

40

Sub total

100

Total technical score

1000