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Home > Tender evaluation and contract award > Process evaluation

Process of evaluation:

  • Clarifications, if required, should be sought thru numbered clarifications
  • Ensure technical clarification requests contain suitable clear statements/
    confirmations from Tenderers on either:Process of evaluation:
    • there being no commercial impact of such clarification
    • in case of there being a commercial impact of a clarification, the same should be submitted in a separate sealed envelop marked “commercial impact of technical clarification No. XX”
    • commercial impact should be submitted only if it arises as a result of the clarification and no change to other quoted prices/rates should be considered/entertained
    • any other appropriate and relevant confirmation should be sought such as providing a breakdown, amplifying obligations
  • Contracts Engineer should simultaneously carry out contractual evaluation to make sure there are no exceptions and deviations to Contract terms and conditions that are outstanding
  • Upon receipt of a clear recommendation of technically and contractually acceptable Tenderers (to include any explanations on why a particular Bidder was not considered acceptable), approved by appropriate authority as necessary, commercial Tenders should be opened
  • Open price Tenders
  • Carry out a detailed price evaluation of Tenders
    • check for any arithmetic errors in the prices
    • check price tabulations
    • Normalisation: if required
      • Adjustment of costs for resources and scope considerations identified during the technical evaluations (such adjustments should be made based on quoted rates/prices and any assumptions clearly stated, which prior to award if made part of the Contract have to be confirmed with the Tenderer)
      • sensitivity analysis
      • cash flow analysis
      • compute price escalation
      • carry out currency conversions and assess currency variation effects
      • evaluation of alternate payment terms
      • evaluate request for any advance payments
      • other issues
  • Upon satisfactory conclusion, prepare award recommendation - always to technically acceptable, contractually compliant and lowest overall cost Tender.

Normally the evaluation is carried out in three (3) distinct phases or has three (3) elements i.e.:

• Technical
• Contractual and unpriced
• Priced

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