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Evaluation process fundamentals

  • The actual evaluation should commence only after the evaluation criteria is approved.
  • The criteria should contain clear auditable and justifiable parameters for evaluation.
  • Objective of “value for money” should always be the consideration in the process.
  • Such criteria should remain confidential and not be disclosed to any Tenderer.
  • Technical & unpriced evaluation and priced Tender evaluation should be carried out by different individuals.
  • Evaluation should always be carried out on the basis of documents submitted by Tenderers and not on personal experiences, impressions, reputation or any other such factors that are non auditable.
  • Two part Tendering: Technical evaluation should be carried out first and upon clear recommendations (approved by management committees/ boards) of Technically acceptable Tenderers, priced/commercial Tenders of only the Technically acceptable Tenderers should be opened and evaluated.
  • Approved evaluation parameters for normalisation, life cycle cost economies, integration of Technical evaluation results into the priced evaluation, sensitivity analysis, etc should not be changed during evaluation.
  • Access to technical and priced Tenders should be restricted to authorised individuals.
  • Normally Contracts are awarded to the Tenderer offering the lowest price. However, where other issues are important, such as quality (specifications) or technical superiority of products or delivery times or experience of Tenderer/its personnel, a price advantage for a technically superior offer could be considered in the overall evaluation thru an appropriate formula discounting prices to the extent that a particular Tender is technically superior to the less superior Tender.
  • For complex, large EPC, FEED or license agreements, it is likely that many other factors would be assessed in a detailed evaluation process weighted to emphasise the relevant and most important factors.
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