Guide on Bid Evaluation - Asian Development Bank

1 Asian Development BANKGUIDE ON BID EVALUATIONJune 2018 Asian Development BANK6 ADB Avenue, Mandaluyong City1550 Metro Manila, on Bid EvaluationThis Guide is intended to provide guidance to borrowers on bid Evaluation procedures and how to prepare a bid Evaluation report to be submitted to ADB, in connection with the procurement of contracts financed in whole or in part by an ADB loan or grant, or by ADB-administered the Asian Development BankADB s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the region s many successes, it remains home to a large share of the world s poor.

2 ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical Development BANKGUIDE ON BID EVALUATIONJune 2018 Printed on recycled paper Creative Commons Creative Commons Attribution-NonCommercial-NoDerivs IGO license (CC BY-NC-ND IGO) 2018 Asian Development Bank6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, PhilippinesTel +63 2 632 4444; Fax +63 2 636 rights reserved.

3 Published in 2018. ISBN 978-92-9261-266-5 (print), 978-92-9261-267-2 (electronic)Publication Stock No. TIM189440-2 DOI: The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by ADB in preference to others of a similar nature that are not making any designation of or reference to a particular territory or geographic area, or by using the term country in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or work is available under the Creative Commons Attribution-NonCommercial-NoDerivs IGO license (CC BY-NC-ND IGO) By using the content of this publication, you agree to be bound by the terms of this license.

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5 Corrigenda to ADB publications may be found at vPart 1 Bid Evaluation Procedure and Reporting 1 Section 1: General 2A. Introduction ..2B. Purpose of Bid Evaluation ..3C. Principles in Bid Evaluation ..3D. ADB s Bidding Procedures under Competitive Bidding.

6 5 Section 2: Bid Evaluation Procedure 7A. Step 1: Opening and Preliminary Examination of Bids ..71. Basic Data ..72. Record of Bid Opening ..73. Preliminary Examination of Bids ..84. Clarifications, Deviations, Reservations, and Omissions ..8B. Step 2: Determination of Substantial Responsiveness of Bids ..91. Substantial Responsiveness to Commercial Terms and Conditions ..92. Substantial Responsiveness to Technical Requirements in Procurement of Goods and Procurement of Plant (Supply Component) ..103. Substantial Responsiveness to Technical Requirements in Procurement of Works and Procurement of Plant (Adequacy of Technical Proposal).

7 114. Preparation of Table of Substantive Responsiveness of Substantial Responsiveness of Bidders under a Two-Envelope Bidding Procedure ..126. Substantial Responsiveness of Bidders under a Two-Stage Bidding Procedure ..12C. Step 3: Detailed Evaluation of Price Bids ..131. Preparation of Table of Bid Prices ..132. Determination of Number of Bids for Detailed Evaluation ..143. Detailed Evaluation of Price Bids ..144. Financial Adjustment of Bid Prices (Commercial Aspects) ..155. Financial Adjustment of Bid Prices (Technical Aspects) ..166. Detailed Evaluation of Bids for a Civil Works Contract ..187. Application of Domestic Preference Scheme.

8 208. The Lowest Evaluated Substantially Responsive Bid ..219. Abnormally Low Bids ..21 CONTENTSivD. Step 4: Confirmation of Qualifications and Recommendation for Contract Award ..221. Evaluation of Qualifications ..222. Multiple Contract Evaluation ..223. Award of Contract ..22 Section 3: Preparation of Bid Evaluation Report 24A. Single-Stage: One-Envelope Bidding Procedure ..24B. Single-Stage: Two-Envelope Bidding Procedure ..26C. Two-Stage and Two-Stage: Two-Envelope Bidding Procedures ..26 Appendixes 271 Basic Data Sheet.

9 282 Record of Bid Opening ..303(A) Table of Substantial Responsiveness of Bids (Commercial Terms) Supply Contract ..333(B) Table of Substantial Responsiveness of Bids (Commercial Terms) Civil Works ..353(C) Table of Substantial Responsiveness of Bids (Commercial Terms) Plant Design Supply Installation ..374 Table of Substantial Responsiveness of Bids (Technical Requirements) Supply Contract ..395(A) Table of Salient Features of Bids (Commercial Terms and Conditions) Supply Contract ..405(B) Table of Salient Features of Bids (Commercial Terms and Conditions) Civil (C) Table of Salient Features of Bids (Commercial Terms and Conditions) Plant Design Supply Installation.

10 435A-1 Table of Salient Features of Bids (Technical Requirements) Supply Contract ..446(A) Table of Bid Prices (Supply Contract) ..456(B) Table of Bid Prices (Civil Works Contract) ..466(C) Table of Bid Prices (Plant Contract) ..477(A) Table of Bid Price Adjustment (Supply Contract) ..487(B) Table of Bid Price Adjustment (Civil Works Contract) ..497(C) Table of Bid Price Adjustment (Plant Design Supply Installation) ..518 Evaluation of Bidders Qualifications ..54 Part 2 Examples of Bid Evaluation 55 Example 1: Supply Contract ..56 Example 2: Civil Works Contract.