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E3-E4 MANAGEMENT

TENDER EVALUATION

Date: 01-04-2011

Introduction

• Every organization needs various resources such

as men, machine, material etc. for running its

production facilities to produce sellable

product/services.

• Many of these resources have to be procured from

various suppliers. Most of high value purchase are

done through tender process

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For internal circulation of BSNLonly

LESSON PLAN

• Tender types

• Objectives of tender evaluation

• Bid opening committee

• Committee for evaluation of tender

• CVC guidelines

Tender Types

• Limited tender Route

• Open Tender

• Expression of Interest Route(EOI)

• Memorendum of undertaking(MOU)

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Objectives of Tender Evaluation

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• Compliance to stipulated technical and commercial

conditions

• Evaluate the bids for selecting reasonable and

competitive rates

• Follow the evaluation in a very objective and transparent

manner

• Ensure compliance to CVC guidelines

• Complete the evaluation process in defined time frame

while ensuring checks

Objectives of Tender Evaluation

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• Key objectives of Tender Evaluation• General Check• Technical Evaluation• Financial Evaluation

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• All technical specifications are complied

• All items have been quoted as per schedule of requirements

• Bill of materials submitted with the bid meets our requirement and there is no under-provisioning

• All technical specifications are complied

• All items have been quoted as per schedule of requirements

• Bill of materials submitted with the bid meets our requirement and there is no under-provisioning

TECHNICAL EVALUATION

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FORMATION OF BID OPENING TEAM

Estimated value of the tender

Level of the bid opening officer

Other members of the bid opening team

3 Crores and above Divisional Engg. or Equivalent

Asstt. Engineer or equivalent + One dealing Asstt.

Less than 3 crores Asstt. Engineer or equivalent

Accounts officer + one dealing Asstt.

�Proposal for formation of bid opening team would be approvedby the Jt DDG (MMT) in charge of the tendering, well inadvance of the bid opening.

Preparations By the Bid Opening Team

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•Attendance register of the bidders.

•List of bidders who purchase the bid document.

•Majdoor , Security Guard etc.

•P.A. system.

•Sealing arrangement etc.

Information to be read out in Bid Opening

1. Name of the Bidder

2. Name of the item

3. Quantities/prices quoted in the bid

4. Discount, if offered

5. Taxes and levies

6. Bid opening official should politely and firmly tern down

queries of any other nature from any bidder.

7. No argument should be entertainment on this account by

the bid opening officer.

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Minutes of the bid openinga) Bid opening is completed on the same calendarday.

b) Or responsible for preparation of the minutes onthe same day or maximum next day of the bidopening with reasons recorded.

c) List of participants.

d) Report duly signed by bid opening team. Certifyingthat eligible participants were allowed.

e) Information regarding item read out.

f) Submission of bidder wise were as per bidconditions.

g) Steps taken to preserve the sanctity of the bids.

h) Proper storage of bids after the bid opening.

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Constitution of the CET

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Technical Planning /

service/technology

cell

Convener

Commercial MM cell Member

Finance Finance cell member

In addition depending upon the nature of the tender,

officers from TEC / operation branch could also form part of

the CET.

LEVEL OF CET

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Value of the tender

Technical Members commercial

Finance

Upto Rs. 10 crores

DGM AGM AGM

>Rs.10 Cr. & upto rs. 50 Cr.

DGM DGM DGM

>Rs. 50 Cr & upto Rs. 100

Cr.

CGM/PGM/GM DGM DGM

> Rs.100 Cr. CGM/PGM/GM GM GM

Depends upon the value of the tender

Guidelines to CET

• Correct evaluation decision will continue to depend

upon the experience and good judgment of those

who are responsible for evaluation.

• The following documents need to evaluate:-

• (a) all bids accepted at the time of bid opening.

• (b) bid document along with technical specification.

• (c) guideline for CET.

• (d) minutes of bid opening if any.

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Guidelines to CET

• Where there is any variation technical compliancestatement.

• Determination of bid responsiveness based oncontents of bid itself.

• Quarries to or from bidders should generally beavoided.

• No document should ask which impact on price.• Only responsive bids should be evaluated in detail.• (a) it meets all the major technical clauses.• (b) it meets commercial clauses.• (c) the offer is accompanied by a bid security

deposit on the prescribed proforma in bid documentand valid for 30 days beyond the validity.

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• CET should hold a preliminary meeting within one week

• CET formulate its recommendation within a reasonable

time frame

• The technical evaluation by the technical branch of CET.

• The preparation of comparative statement of value of bids

is to be carried out by the finance representative of CET.

• Commercial evaluation – by MM Cell representative in

CET & vetted by finance representative.

• CET may finalize its recommendation within further TEN

days

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Guidelines to CET

Guidelines to CET

• The CET should clearly spell out itsrecommendations in its report about

• Technically acceptable bids.• Listed in an order starting from the lowest

technically acceptable bid(L-1) upwards or as pervendor rating starting from V-1.

• The report should contain complete technical,commercial and financial appraisal.

• The logic leading to the recommendations andreason for rejecting bids lower than the lowesttechnically acceptable bids.

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Guidelines to CET

• The tender shall be evaluated for thequantities indicated in the schedule ofrequirements.

• In normal purchase procedure, the orders will goin favour of the lowest acceptable bidder for thefull quantity.

• Apportioning the quantities may arise due tocertain limitations or considerations. As most ofthe items procured by the BSNL are specializedproducts it becomes necessary to sustainmultiple vendors/suppliers through distribution ofquantities.

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Distribution of the tendered quantities

• The quantity to be allocated to L-1 and number of

suppliers on whom orders shall be placed would be

specified in the tender document.

• The CET thus should act as per these guidelines for

distribution of the quantities amongst the various eligible

suppliers as per the tender document.

• In case no mention is made in the documents then, it

should be in the inverse ratio of their price quotation.

• The L-2 bidder should be offered uniform price @ of

L-1 rate as per the tender document.For internal circulation of BSNLonly

• All the pages and enclosures of the CET report

should be numbered consecutively and signed by all

CET members

• CET needs additional time to complete the work,

permission of extension may be obtained from

competent authority by the Chairman of CET specifically

indicating the reason for the same.

• The meetings of Committee for Evaluation of Tender

should be fixed with prior consultation with its members.

• The Chairman/Convener of the Committee for Evaluation

of Tender should formally submit the report of the

committee to the MM Branch.

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Evaluation of Single responsive bid

• Such cases are not to be treated as single tender. CET is

allowed to evaluate such responsive bid and competent

authority can decide in consultation with IFA by satisfying that:

a) Wide publicity was given for the subject tender

b) Tender specifications are generic in nature.

c) Qualified bidder satisfies all tender specifications, terms &

conditions

d) Rates are reasonable.

e) All the policies/guidelines regarding procurement of

Telecom equipment and stores in BSNL are observed.

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CVC Guidelines

1) No post tender negotiation with L-1 except in certain

exceptional situations.

2) Proprietary items, items with limited sources of supply

3) Item where there is a suspicion of cartel formation.

4) With the justification and details of such negotiation

should be duly recorded.

For internal circulation of BSNLonly

For internal circulation of BSNLonly

THANK YOU