Business

The Tender Selection Process

By Neil Cook This week we dive right into some detail on the Tender Evaluation Processes FRA uses. Different evaluation methods are used for different projects depending on size and
02 Aug 2014 08:21

By Neil Cook

This week we dive right into some detail on the Tender Evaluation Processes FRA uses.
Different evaluation methods are used for different projects depending on size and complexity and the proposed method for any individual tender is described in the Request for Tender (RFT).
In addition to the submitted price for a tender, all evaluations consider a range of other criteria known as ‘non-price attributes’.
The RFT states how scores will be assigned for each attribute. The non-price attributes generally include:
1. Relevant experience and Track record (can the company demonstrate they have done this sort of work well in the past)
2. Relevant Skills (do the people proposed to run the project have the required skills and experience)
3. Engagement and Development of Locals (how will the company contribute to capability and capacity building)
4. Resources (does the company have the machinery necessary to do the work)
5. Methodology (how do they propose to carry out the work)
For each tender a Tender Evaluation Team (TET) is appointed by FRA; usually a three person panel of experienced staff, often with a junior evaluator included for development reasons.
The evaluation team provides a recommendation report but the final decision rests with the FRA Board.
Most tenders are evaluated using one of the following methods:

Lowest Price Conforming
As the name suggests this evaluation methodology is primarily concerned with the price for the job and is generally used for projects with low complexity and low risk.
Tenders are ranked from lowest to highest price. The non-price attributes of the lowest tenderer only are assessed on a pass/fail basis and if the pass they will be recommended for award of the contract.
If the lowest tenderer fails they are rejected and the next lowest price tenderer is assessed.
The recent Veisa Farm Road contract was awarded to Hotspring Hire Limited using this evaluation method.

Weighted Attributes
This evaluation methodology is used for more complex or larger projects that have a higher risk associated with them; price, while still a very important consideration, is not the overriding selection criteria.
All tenderers are assessed on theirnon-price attributes before any prices are seen by the TET. An interim report is prepared by the TET and when approved by FRA the price of each tenderer is opened.
A standard formula is applied to combine the non-price scores and the price scores to determine the overall highest scoring tenderer who is recommended for award of the contract.
Recently, local company Kashmir Transportwas successful in winning the Wailevu West Coast and Kubulau unsealed road rehabilitation in a tender evaluated under this methodology.
In all cases tenderers who do not meet the minimum criteria for non-price attributes are rejected from further consideration for that tender.
FRA practice is to offer tenderers the opportunity of a briefing where we can provide guidance on shortcomings to assist tenderers to improve.
Tenderers who take the time to read and understand the RFT will be better placed to compete for contracts in the transparent, consistent tendering environment FRA is creating for the market here in Fiji.
nNeil Cook is the CEO of the Fiji Roads Authority. This is his regular column which will be published by the Fiji Sun on Saturdays.




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