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GROUP ACTIVITY 04

PRE CONTRACT

TENDERING & COST ESTIMATE

Technical complaints

W.T MADUSANKA :130112N329

M.D.S.S. JAYASINGHE :130112N320D.W.W.MUNASINGHE :130112N333 DATE 2013/03/04

K.B.ROSHAN DHANUSHKA :130112N315 COURSE DIP IN QS

D.M.W.K.RANDENIGAMA :130112N338 INSTITUTE - NVTI NARAHENPITA

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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 thetechnical 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 andacceptable?

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?

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TC 5

A project included the procurement of 4wheel drive vehicles to be procured by ICB. The technical

specifications stated the following:

Type : 4 wheel drive

Fuel : Diesel

Engine : 175HP at 4500 RMP

Wheel Base : 21 feet 6 inches

Suspension : Heavy Duty

Fuel Tank : 70 liters

Ground Clearance : 15 cms.

Transmission : Standard Shift

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) Do these specifications meet the concept of good equipment specs?

b) What should the bidders have done when they received the bidding documents?

c) If you had received a query from the bidders, what would you have done?

d) 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 ?

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