psc-an #1 tender process brief

8/3/2019 PSC-An #1 Tender Process Brief

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The Project Procurement Plan

Advice Note #1


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Definition

Project Procurement Plan (PPP)

represents the procurement and management

strategies of the Phase 2, Langkawi project team

in fulfilling the project and business objectives in

the most cost effective manner.


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Procurement System

The chosen procurement system determines

the roles,

relationships,

shapes the values and

style of the project management,

allocation of risk,

the design strategy, employment of consultants and contractors, and

legal implications.


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Intent of PPP

The intent of the Project Procurement Plan, and theproject team is to:

Engage the appropriate resources at the right time

Evaluate options to maximise schedule and minimise cost

Execute the pre-project planning process for a No-ChangeOrder Philosophy Project

Leverage off project team relationships with thecontracting and supplier community

And assist in conducting an on-going value engineeringprocess


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Basic Strategy

Develop a Procurement Plan Identify team members

Define Roles & Responsibilities

Develop project strategy

Target resources to meet project requirements

Consider and evaluate Owner/Supplier Agreements andEquipment Supplier Agreements and benefits.

Distinguish goods and services that are mandated to bewithin standing Owner/Supplier Agreements.


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Basic Strategy

Establish Change process and procedures

Identify Owner manufactured products which are mandated,and which are to be encouraged.

Qualify / Pre-Qualify works, materials and services asrequired.

Implement procurement process:

Sole Source Negotiations Price Agreement Purchases

Competitive Bids

Alternate Sourcing Techniques


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Basic Strategy

Evaluate Procurement Process

Compare expenditure to project budget and

estimated allotment.

Perform Financial Qualifications, if required.

Award contract for works, materials and services

Develop Quality Assurance procedures and maintainQuality Control documentation.


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Procurement Strategy

PSC will be responsible for project controls, procurement, and delivery ofworks, materials and services.

PSC will be responsible for:

project oversight

obtaining project authorization

corporate accounting

Coordinating Project into Site Plans

PSC will be responsible for providing corporate guidance for procurementstrategies to meet project objectives.

Consultants will be responsible for providing design documents to meetproject objectives through the prescribed procurement strategies.

TMC will be responsible for participating in the conceptual planningprocess to define and maintain project objectives and scope through theproject life cycle.


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TENDER PROCESS

Selection of most appropriate procurementmethod

Development of tender lists

Preparation of tender documentation Invitation of tenders

Submission of tenders

Opening of tenders

Evaluation of tenders Acceptance of tender

Award of contract


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PROCUREMENT SYSTEM

The main generic types of procurement

system used in Malaysia are :

Traditional path

Management paths

- Management Contracting

- Construction Management

Design & Build/Turnkey


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Conventional Approach


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Advantages

Understood by most clients and enables contractors togive their most competitive price as the risk on thecontractor is well understood and defined.

Architect has considerable freedom to conceive anddevelop the design without excessive time or economicpressures, provided the cost ceiling is not exceededand the clients requirements are generally satisfied.

The system makes it possible for the architect tointroduce consultants and other experts to advise ordesign sub-system of the project


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Advantages

Easy comparison of tender received. Gave a goodbasis for measurement and calculation of interimvaluation payment to contractor. Allows easycalculation of variation orders.

Works can be phased out in packages so thatconstruction could commence early on site.

Provided that the design has been fullydeveloped at time of tender, the financialcommitment is reasonably established


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Construction

Design

Time


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Tendering Stages

Suitable listof

Contractors

InterviewPotential

Contractors

IssueTender

DocumentsReturn

DocumentsOpen

TenderEvaluateTender

Negotiate AWARD


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Management Contracting


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Construction Management


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PRE-QUALIFICATION OF TENDERERS (Part I)

START

Necessary to Pre-

qualify suitablecontractors ?

Prepare Pre-Q advertisemnent

Issue Pre-Q document

Yes

Yes

No

Yes

No

Is there a

Consultnts

recommended

list?

Is there an

Employersrecomended list?

Compile and approve listInitiate advertisemnent

No

Prepare & submit Pre-Q document

Receive & open Pre-Q document

Less than

minimum

number?

BA

Advertise again? Yes

No


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PRE-QUALIFICATION OF TENDERERS (Part II)

Undertake interview/ clarifications & re-

evaluate

Yes

Yes

No

Hold interview/

clarificatin

Prepare recommended list of

contractors

A

Yes

Yes

B

Undertake evaluation of

submissions

Less than

minimumnumber

meeting

criteria?

Can criteria be

modified?

Less than

minimum

numbermeeting

criteria?

No

Submit final list to employerNo

Need to re-

advertise?No

Employer approves list

STOP

Yes

No

Yes


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TENDERING PROCEDURE

START

Tender

adverti-

sement

Prepare and approve

advertisement

Initiate advertisemnent

Issue tender document

Hold site visit

Compile list of short-listed

tenderers

Is site visit a

pre-requisite

Approve list

RFIs/ RFCs Issue clarifications

Hold mid-bid

meetingHold meeting

Extend period

Issue addendaIssue tender

addenda

Extend

tendering

period

STOP

Yes

Yes

Yes

No

No

Yes

No

No

No

No

PSC

PSSC


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TENDER PROCESS

TENDER

DOCUMENTATION

ISSUED

PRE-TENDER ESTIMATEPERMISSION TO

GO TO TENDERMID-TENDER

INTERVIEW

CLARIFICATIONS

TENDER RETURNED

& OPENED

SUBMIT TENDER

EVALUATION

REPORT

ISSUE LETTER OF

ACCEPTANCE

PREPARE TENDEREVALUATION REPORT

TENDER PROCESSPREPARATION OF

TENDER DOCUMENTSEMPLOYER

APPROVAL

TENDERCLARIFICATIONS

PREPARATION OFTENDER SUBMISSIONS

QUALITY CONTROL

UPDATE COST PLANS

AGREE LIST OF

TENDERERSESTABLISH

EVALUATION

CRITERIA

APPOINT

CONTRACTOR

COMPLETE

CONTRACT

DOCUMENTATION

4 - 6 WEEKS 3 - 4 WEEKS 3 - 4 WEEKS