Tendering and Bidding Process

 Tendering and Bidding  Tendering Biddin g process process Bidding – NCB, ICB, tender documents, tender preparation and foating

Prepared and Presented by: Prof. Khem Dallakoti Institute of Engineering

 Tender  Tender is an oer in writing by the tenderer (the person who oers the tender) to execute some specied wor! or to supp"y some specied goods at certain rate#amount within a xed time $rame under certain conditions o$ agreement% This is the rst step in the $ormu"ation o$ contract%

Purpose of Bidding &unds pro'ided $or the proect imp"ementation sha"" be used on"y $or intended purpose%  conomy and e*ciency sha"" be obser'ed – best 'a"ue $or its money%  +"" e"igib"e bidders sha"" be gi'en eua" opportunity to compete%  -e'e"opment o$ domestic contracting and manu$acturing industries sha"" be encouraged%  There sha"" be transparency in a"" stage o$ the procurement process% 

Bidding process . +-B  The Internationa" Competiti'e Bidding (ICB) process inc"udes six main phases/  +d'ertisement and Notication,   0reparation and Issuing o$ the Bidding -ocument,  Bid 0reparation and 1ubmission,  Bid 2pening,  Bid 'a"uation, and 

Contract +ward

Advertisement and Notication 

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 borrower4s country (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 in ng"ish%

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+ copy o$ the I&B sha"" be submitted to +-B $or appro'a" and $or pub"ication in +-B website in accordance with the pro'isions o$ the nancing agreement%

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&or "arge or specia"i5ed contracts, +-B may additiona""y reuire that the I&B be ad'ertised in we"".!nown technica" maga5ines or trade pub"ications, or in newspapers o$ wide internationa" circu"ation, in su*cient time to enab"e prospecti'e Bidders to prepare and submit Bids%

Preparing and Issuing a Bidding Document 

 The mp"oyer is responsib"e $or preparing and issuing the Bidding -ocument $or a specic contract%

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 The Bidding -ocument sha"" be prepared by the mp"oyer on the basis o$ the appropriate 1B- issued by +-B, as this is a mandatory reuirement $or contracts to be nanced by +-B%

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 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 modication, 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 be pro'ided by the mp"oyer in the $o""owing sections o$ the Bidding -ocument/

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1ection 9 . Bid -ata 1heet

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1ection : . 'a"uation and ;ua"ication Criteria

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1ection < . Bidding &orms

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1ection = . "igib"e Countries

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1ection > . mp"oyer4s ?euirements

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1ection @ . 0articu"ar Conditions o$ Contract

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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%

Bid Preparation and Submission  The Bidder is so"e"y responsib"e $or the preparation and submission o$ its Bid% -uring this stage, the  mp"oyer sha""/ 

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0rompt"y respond to reuests $or c"arications $rom Bidders and amend the Bidding -ocument as needed% +mend the Bidding -ocument on"y with prior appro'a" o$ +-B%

Bid 2pening 

 The mp"oyer is responsib"e $or the Bid 2pening, which is a critica" e'ent in the bidding process%  The mp"oyer sha"" appoint experienced sta to conduct the Bid 2pening, as inappropriate procedures at Bid 2pening are usua""y irre'ersib"e and may reuire cance""ation o$ the bidding process with conseuent de"ays and waste o$ resources%

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

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Conduct the Bid 2pening strict"y $o""owing the procedures as specied in the Instructions to Bidders $or a"" Bids recei'ed not "ater than the date and time o$ the bid submission dead"ine%  The term Bid 2pening can be mis"eading because a Bid $or which a Bid 3ithdrawa" or Bid 1ubstitution notice was recei'ed on time sha"" not be opened, but returned unopened to the Bidder% The seuence 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 Bid 2pening, as Bids that are not opened and read out at Bid 2pening sha"" not be considered $urther% Not reect 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 in certain cases a Bidder may attempt to submit its bid at the Bid 2pening p"ace a$ter the dead"ine% xamine the Bids at Bid 2pening in accordance with the pro'isions o$ the Instructions to Bidders% The mp"oyer sha"", howe'er, 'eri$y at Bid 2pening the 'a"idity o$ the documentation such as 0ower o$ +ttorney or other acceptab"e eui'a"ent document as specied in the Instructions to Bidders conrming the 'a"idity o$ a bid modication, bid withdrawa", or bid substitution, because a withdrawn or substituted Bid sha"" not be opened and in conseuence not read out and, there$ore, not be considered by the mp"oyer% 1imi"ar"y, a bid modication sha"" be opened, read out, and recorded to modi$y a Bid tha t was recei'ed on time%

Bid Evaluation and Contract Award  The mp"oyer is responsib"e $or bid e'a"uation and contract award% The mp"oyer sha"" appoint experienced sta to conduct the e'a"uation o$ the Bids% Dista!es committed at bid e'a"uation may "ater prompt comp"aints $rom Bidders, reuiring ree'a"uation o$ the Bids, with conseuent de"ays and waste o$ resources%  The mp"oyer, in obser'ance o$ best practices, sha""/ 

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Daintain the bid e'a"uation process strict"y condentia"% ?eect 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"ication criteria specied in the Bidding -ocument%

 Tender Notice Tender Notice/ It is the in$ormation in'iting bids $rom competent and capab"e contractors and $orms a part o$ contract document% It shou"d be wide"y pub"ished in important newspapers%   Tender notice is not an oer% It is an in$ormation pro'ided to a"" the prospecti'e bidders to submit theor oer 

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

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

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 The In'itation $or Bids is not a part o$ the Bidding -ocument and there$ore it sha"" not be inc"uded in the Bidding -ocument%

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 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 !nown and $ree"y accessib"e website in ng"ish% + copy o$ the In'itation $or Bids sha"" be submitted to +-B $or appro'a" and $or pub"ication in the +-B 3ebsite in accordance with the pro'isions o$ the nancing agreement

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

1amp"e o$ notice . +-B In'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 cost o$ % % % % % insert name of name of project . . . . .. 0art o$ this nancing wi"" be used $or payments under the contract9 named abo'e . Bidding is open to preua"ied: bidders $rom e"igib"e source countries o$ the +-B%< 9% The % % % % % insert name of Employer . . . . . (―the Employer‖ invites sealed !ids from preua"ied: e"igib"e bidders $or the construction and comp"etion o$ % % % % % 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 addres s) 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%

in$ormation to be inc"uded in tender notice    

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Name o$ the +uthority pub"ishing the notice% &irst date o$ pub"ication

Brie$ description o$ the ob% -ate, time and p"ace where and when the tender document is a'ai"ab"e and to be submitted% Cost o$ tender document% Cost estimate (optiona") -ate, time and p"ace o$ opening bid% arnest money and security deposit amount% xpected date o$ acceptance o$ success$u" bids% etc%

arnest money or bid security 

It is the amount o$ money deposited whi"e bidding as a guarantee o$ the partyFs wi""ingness o$ carrying out the wor! i$ awarded to him%  ItFs amount genera""y ranges $rom 6G to :G%  9.:G o$ the 0roect cost is demanded as earnest money%  This $und is re$unded to unsuccess$u" bidder%  I$ a success$u" bidder $ai"s to carry on (sign) the contract, this amount is $or$eited%

 Type o$ bidding National Competitive Bidding &NCB' International Competitive Bidding &ICB'( 

National Competitive Bidding &NCB'  

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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 proect o*ce, -istrict +dmin o*ce, --C o*ce, Hand re'enue o*ce, treasury contro""er o*ce and C+N o*ce%

International Competitive Bidding &ICB'( 

I$ the amount o$ wor! is big and nationa"#domestic contractors cannot per$orm the ob, e"igib"e bidders are in'ited $rom a"" o'er the wor"d%

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In genera" i$ the amount o$ wor! is greater than = crore ($or procurement o$ good) and greater than E16 mi""ion ($or procurement o$ wor!s) ICB process is $o""owed% In this process tender notice is pro'ided to dip"omatic missions wor!ing in the country%

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ICB – agent In ICB the $oreign bidder sha"" $urnish the $o""owing in$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%

 The end