4 - BIDDING AND BID DEPOSITORY

Question 1

Implementing the chosen procurement route through to the selection of the contractor / supplier and the establishment of basis for contract

Answer 1

BIDDING

Question 2

Usually referred also as “Tendering”

Answer 2

BIDDING

Question 3

type of bidding where bids are usually based on complete design

Answer 3

Single Stage Bidding

Question 4

type of bidding where bids based on partially developed consultant design

Answer 4

Two Stage Bidding

Question 5

type of bidding where contractors assists with final development of design and tender documents

Answer 5

Two Stage Bidding

Question 6

type of bidding where first stage bidder may bid / negotiate second construction stage

Answer 6

Two Stage Bidding

Question 7

type of bidding where contractors invited to bid for a contract through advertisements

Answer 7

Open Bidding

Question 8

type of bidding that can result to a large number of unsuitable firms bidding for the work

Answer 8

Open Bidding

Question 9

type of bidding that can result in wasted time and effort in selection process

Answer 9

Open Bidding

Question 10

type of bidding where best prices by firms wanting to establish themselves

Answer 10

Open Bidding

Question 11

type of bidding where consultants / clients will normally have a list of contractors who undertake different types of contracts

Answer 11

SELECTIVE BIDDING

Question 12

Most common arrangement because it allow price to be the deciding criterion

Answer 12

SELECTIVE BIDDING

Question 13

type of bidding where Contractors are invited to bid on their proven record in relation to the type and size of contract and their reliability

Answer 13

SELECTIVE BIDDING

Question 14

type of bidding where one contractor is approached

Answer 14

Negotiated Bidding

Question 15

type of bidding that is used mainly for specialist work, such case there are limited number of contractors to do the work in the market

Answer 15

Negotiated Bidding

Question 16

type of bidding that is based on one to one discussion with contractor

Answer 16

Negotiated Bidding

Question 17

type of bidding where bids are invited from a selected list on the basis of a typical bill of quantities

Answer 17

Serial Bidding

Question 18

type of bidding where the contractor chosen normally submits the lowest price who undertakes to enter into a series of contracts to carry out the work using the rates in the Bill of Quantities

Answer 18

Serial Bidding

Question 19

type of bidding where method reduces the bid costs and normally results in contractors quoting low rates in order to obtain a guaranteed program of work

Answer 19

Serial Bidding

Question 20

type of bidding that usually for repetitive minor works

Answer 20

Serial Bidding

Question 21

type of bidding that can escalate to partnering agreement

Answer 21

Serial Bidding

Question 22

10 ELEMENTS OF A COMPLETE BIDDING SYSTEM

Answer 22

• bid advertisement
• invitation to bid
• pre qualification
• document distribution
• addenda notification and distribution
• creation of the bid form
• submission of bid security
• submission of the bid
• bid tabulation
• audit trail

Question 23

If the project is not by invitation only it is important to be able to notify interested bidders that there is an opportunity to bid on. Public agencies are often mandated to advertise publicly.

Answer 23

Bid Advertisement

Question 24

For when there are bidders who are to be proactively advised of the opportunity. In addition to the ability to simply ‘send a message’ the system must help organize and manage the list of potential bidders.

Answer 24

Invitation to bid

Question 25

For some projects the bidders must demonstrate their competence and ability to complete the work prior to being invited to submit a bid.

Answer 25

Prequalification

Question 26

Distributing the drawings, specifications and any supplementary information is an essential element of the process. If properly integrated into the system there is no possibility of missing or incomplete information being used in the formulation of a bid submission.

Answer 26

Document Distribution

Question 27

All bidders must be quickly notified of any new addenda and be provided quick and easy access to the information to avoid delays or errors in the submission of bids.

Answer 27

Addenda Notification and Distribution

Question 28

including all the varied elements that make up a construction bid at a minimum including; base bid, separate prices, alternate prices, unit prices, cash allowances, stipulated sums, tax clauses, bond requirements, time to completion, labour units and other required schedules.

Answer 28

Creation of the Bid Form

Question 29

an integral and essential element of a complete bid submission and must be able to be included as part of the bid package.

Answer 29

Submission of Bid Security

Question 30

It must include the ability to; apply for and receive a bid bond, complete sections of the bid as the information is available and ready to enter, allow others in their company to work on the submission if required, withdraw the bid prior to closing time if required and of course enter all required elements of the bid call.

Answer 30

Submission of the Bid

Question 31

Once the bid closing time had been reached the recipient must be able to easily compare and evaluate the information. A tabulated set of bid responses is the most efficient means to do so and is an essential element of the complete bidding process.

Answer 31

Bid Tabulation

Question 32

A complete and accurate log of all the activities required to complete this process is essential to assist in avoiding and resolving issues of non-compliance or claims arising from missing or incomplete information. Knowing exactly who saw what and when it happened helps avoid many of the problems that arise following submission of the bids.

Answer 32

 An Audit Trail

Question 33

Creation of Bid Documents content

Answer 33

``` Approved Budget for the Contract Instruction to Bidders Terms of Reference Eligibility Requirements Plans and Technical Specifications ```

Question 34

The Invitation to Bid shall contain

Answer 34

A brief description of the subject of procurement A general statement on the criteria to be used Approved Budget for the Contract Source of funds Period and place of availability of Bidding Documents Contract duration Other necessary information deemed relevant Invitation for a pre-bid conference

Question 35

At least one (1) pre-bid conference shall be conducted for each procurement.

Answer 35

RA 9184 | Section 22

Question 36

What happens in a PRE-BID CONFERENCE?

Answer 36

Attended by Procuring Entity/Owner’s Representatives Project Manager to discuss the Project Brief Distribution of Bid Documents Site Visit and Inspection

Question 37

All Bids shall be accompanied by a Bid security, which shall serve as a guarantee that, after receipt of the Notice of Award, the winning bidder shall enter into contract with the Procuring Entity within the stipulated time and furnish the required performance security.

Answer 37

RA 9184 | Section 27

Question 38

The BAC shall determine the eligibility of prospective bidders based on the bidders’ compliance with the eligibility requirements

Answer 38

RA 9184 | Section 23

Question 39

A bid shall have two components, the technical and financial components, which should be in separate sealed envelopes submitted simultaneously. Bids shall be received by the BAC on such date, time and place specified.

Answer 39

RA 9184 | Section 25.

Question 40

A bidder may modify his bid, provided that this is done before the deadline for the receipt of bids

Answer 40

RA 9184 | Section 26

Question 41

The BAC shall publicly open all bids at the time, date, and place specified in the bidding documents

Answer 41

RA 9184 | Section 29

Question 42

The BAC shall publicly open all bids at the time, date, and place specified in the bidding documents.

Answer 42

RA 9184 | Section 29

Question 43

Prior to Bid Evaluation, the BAC shall examine first the technical components of the bids using "pass/fail" criteria to determine whether it contains all bid requirements for the technical component.

Answer 43

RA 9184 | Section 30

Question 44

The ABC shall be the ceiling or upper limit of bids. Bid prices exceeding this ceiling shall be outright disqualified from further evaluation. There shall be no lower limit.

Answer 44

Ceiling Price

Question 45

Post-qualification is the stage where the bidder with the LCB or HRB undergoes verification and validation whether he passed all the requirements and conditions as specified in the Bidding Documents.

Answer 45

RA 9184 | Section 34

Question 46

There shall be failure of bidding if: No bids are received No bid qualifies as the LCRB or HRRB When the bidder with the LCRB or HRRB refuses, without justifiable cause, to accept the award of contract.

Answer 46

RA 9184 | Section 35

Question 47

to prevent questionable practice of bid peddling (shopping of subcontractors prices) by the main contractors

Answer 47

BID DEPOSITORY

Question 48

Open bid process scenario

Answer 48

Stage 1: suppliers bid to subtrades Stage 2: subtrades bid to subcontractors Stage 3: subcontractors bid to main contractors

Question 49

buy packages of specially printed envelopes (color-coded and in pairs) from the bid depository office (or BDO)

Answer 49

Subcontractor

Question 50

addressed to main contractor whom he wishes his bid to go (separate envelopes for each main contractor, if necessary)

Answer 50

first envelope

Question 51

addressed to the BDO

Answer 51

second envelope

Question 52

submit sealed envelopes to the bid depository office (usually __ hours) before the closing of bid

Answer 52

48

Question 53

time-stamps the receipt of the subcontractor envelopes

Answer 53

Bid depository office

Question 54

forwards (to authority who called for the bids) list of names of subcontractors who properly deposited

Answer 54

Bid depository office

Question 55

picks up their respective packages of envelopes (usually a day before closing of bid and after receipt of envelopes by BDO)

Answer 55

Main contractor

Question 56

analyze subcontractor quotations received

Answer 56

Main contractor

Question 57

select from among the subcontractor prices and use this for their bid

Answer 57

Main contractor