GROUP ACTIVITY 04

PRE CONTRACT TENDERING & COST ESTIMATE

Technical complaints

W.T MADUSANKA M.D.S.S. JAYASINGHE D.W.W.MUNASINGHE K.B.ROSHAN DHANUSHKA D.M.W.K.RANDENIGAMA

:130112N329 :130112N320 :130112N333 :130112N315 :130112N338

DATE 2013/03/04 COURSE DIP IN QS INSTITUTE - NVTI NARAHENPITA

TC 1
A supplier submitted a bid on a piece of equipment which he said fully met the bid specifications and attached a catalogue sheet to his bid submission. There was a discrepancy between the specifications detailed in the offer and the specifications printed on the catalogue sheet; those on the latter did not meet the requirements laid out in the bid specifications whereas those stated in the bid complied. The PE disqualified the bid (which was the lowest price) on the grounds that the specifications were not met as evidenced by the catalogue sheet. The bidder argued that his did comply as lie had undertaken in his offer specifically to supply according to the technical specifications in the bid document and the catalogue sheet was only a reference material. Therefore, he said he should be awarded the contract as the lowest evaluated bid.

TC 2

An implementation agency called for bids for a container crane with a minimum lifting capacity of 40.6 metric tons. A bidder quoted his price i iuf we standard container crane tie manufactures,which has an operating capacity of 40 metric tons. The executing agency decided to disqualify the bidder because it did not meet the minimum specified lifting capacity. Is the bid substantially responsive and acceptable?
TC 3

For a transmission line project, a PE invited bids for 100 km of aluminum Core steel reinforced conductors. The bid specification stipulated, among other things, that the aluminum should be a minimum of 95% purity. When the bids were evaluated, the PE proposed award to the second lowest evaluated bidder on the argument that he offered conductors with 97% purity, and the additional cost was more than balanced by the reduced losses in conduction. The bidding documents merely specified the minimum threshold for purity. How will you address this issue?
TC 4

The bidding documents for some process equipment included a capacity and performance specifications. During the evaluation process, the PE found that the two lowest responsive bids (from Firms A and B) met all the technical requirement but that the second lowest bidder (Firm B) had included some features which the PE considered non-essential and over and above those called for in the specification. The PE proceeded to deduct the value of these features from B's price. This deduction made B's bid lower than A's and the PE recommended that the contract be awarded to B. is this the correct treatment of the bid?

TC 5 A project included the procurement of 4wheel drive vehicles to be procured by ICB. The technical specifications stated the following: Type : Fuel : Engine Wheel Base Suspension Fuel Tank Ground Clearance Transmission 4 wheel drive Diesel 175HP at 4500 RMP 21 feet 6 inches Heavy Duty 70 liters 15 cms. Standard Shift

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Eight bids were received with the required bid security and required documents. The PE, as a result of bid evaluation, rejected all but the highest bid on the basis that the, failed to comply with one or more of the technical specifications listed above. Question: a) b) c) d) Do these specifications meet the concept of good equipment specs? What should the bidders have done when they received the bidding documents? If you had received a query from the bidders, what would you have done? If you had to clear this bid document , would you have sent the no objection to issue the bid documents?

TC 6 In an agricultural project in Latin America, the PE invited bids for a plant For producing sugar cane juice from sugar cane. In the detailed specifications, it was stated that the cane should be crushed using steel rollers powered by an A.C. electric motor operating at 220 volts SO cycles; there should be three stages of rollers. The first stage with rollers diameter of 200 cm rotating at 5 rpm and the second stage with rollers of 100 cm rotating at 25 rpm and the final stage with rollers of 10 cm diameter rotating at 100 rpm. Four bids were received. In the evaluation, the PE rejected the lowest bid from Australia and proposed award to the second lowest bid from Brazil. The Australian bidder protested claiming that he had offered a well proven machine widely used all over Asia. Bank queried the PE who responded that the Australian machine was technically non-responsive because it used only two stages of steel rollers instead of three and with different diameters and speed, and hence, failed to comply with the bid specification. Moreover, the PE had no prior experience with such a machine. Question: How do you analyze ?