Procurement and tendering (L3)

Question 1

On the Yew Tree Farm project, talk me through your tender analysis.

Answer 1

• The tender evaluation was based on identifying the most economically advantageous offer taking into account the evaluation criteria set out in the ITT
• Tender returns were issued to all members of design team for feedback and input
• This process firstly involved checking the completeness of the submissions and that all requested information had been provided
• Next the submissions were checked for errors both arithmetical on the pricing side and a logic check for the rest of the tender
   Method for dealing with errors outlined in ITT
• Options include to allow contractors to correct or
• For the Contractor to stand by their price
• Next the tenders were reviewed in thorough detail and despite the pricing document being an Activity Schedule developed by the Contractor, the ITT stipulated that the Activity Schedule should include activities related to Prelims, Construction and Completion documents enabling a like-for-like comparison
• Including a review of the inclusions, exclusions and assumptions again to ensure a like-for-like comparison was undertaken i.e. Bethell allowed only for 100m of replacement land drainage – EWI says all land drainage disrupted by the works to be reinstated which from drawings provided to tenderers was most likely to be in the range of 150-410m and so their offer did not comply with the requirements of the EWI and other tenders had complied
• A list of tender clarifications was collated for each tender and sent to each of the tenderers for a response
   Worded in such a way as to not give opportunity to tenderers to resubmit their tender
• Following which, tenders where then scored using the evaluation criteria set out in the ITT

Question 2

Did you use a weighting mechanism at all for scoring the tenders?

Answer 2

• Yes
• There were 7 different criteria
   Cost
   Commercial
   Construction
   Customer
   Programme
   Environmental and third party
   Design (e.g. organogram)
• Responses were scored from 0-100 ranging from low to high in increments of 25
• Each of the criteria was weighted to reflect how important each were to the client
• Cost was given a weighting of 50%
• All of which was set out in the ITT

Question 3

What was your recommendation based on?

Answer 3

• My recommendation was based on the criteria for award set out in the Instructions to Tenderers
• The submitted tenders were assessed against the Commercial (including pricing) and Technical criteria and associated weighting and scores set out in the ITT

Question 4

How did you present your recommendation?

Answer 4

• The recommendation was set out in the form of an award recommendation report
• The report provided details on
   The tender process – including mid-bid review
   Commercial assessment
   Technical assessment
   Overall assessment and proposed recommendation

Question 5

Was your recommendation implemented/ accepted?

Answer 5

• Having sought the necessary approvals in line with the internal delegated authority matrix
• The recommendation was endorsed and the contract was awarded to the recommended NMS Lot 9 Framework Contractor

Question 6

On the HARP project, what were you reviewing for compliance?

Answer 6

• That each of the tenders received were compliant with Appendix 1 of the ITN which set out the methodologies the bidder was required to follow when completing the pricing document
   E.g. stated that each item needed to be priced and no statement that the item is included should be made such that a like-for-like comparison was easier to undertake

Question 7

Can you give me an example of some of the clarifications you required from bidders?

Answer 7

• Reinstatement Plan:
   The reinstatement plan that was submitted by one of the tenderers stated removal of hardcore.
   However, we had previously responded to a tender query asking if recycled material can be used for the temporary compound laydown/ access road to which we replied that no, MOT Type 2 (clean stone with no recycled materials) is to be used for all temporary work areas
   Therefore, we clarified this with the tenderer to ensure their proposals for the works did not include the use of hardcore or similar materials
• Working Hours:
   A couple of tenderers stated working hours that were not consistent with the requirement in the EWI or Framework
   This was clarified tenderers to confirm that their offer and programme are complaint with the later start time stated in the EWI and Framework

Question 8

In what scenario might you advise that negotiated tendering would be the best way to proceed on a project?

Answer 8

• Fast track projects – when time is critical, the speed with which a price can be obtained for the works is quicker under a negotiated tendering strategy compared to a more competitive tendering strategy
• Complex projects – which require specialist expertise or innovative technology, negotiating with a contractor who has proven experience maybe preferred by the client
• However, it may not be suitable for use if the client is a public sector client due to the lack of competition making it difficult to prove that value for money has been achieved

Question 9

If a tender was due in by noon on a certain day and just before the time it was due a tendering party called to say their tender would be late arriving by say 30minutes, what is your advice on this matter?

Answer 9

• I would remind them of the information set out in the Information to Tenderers
• In the Yew Tree Farm ITT it was stipulated that should a tenderer require more time, a request must be made in writing to the Contract Formulator at least one week prior to the Tender return date
• It was also stipulated that tenders received after the closing date and time will be regarded as late and may not be considered
• Therefore, I would then remind them that failure to comply with the provisions of the ITT in full may result in the disqualification of the Tenderer
• I would emphasise that this decision is based on fairness and is governed by procurement regulation

Question 10

What would be the risk in accepting this late tender?

Answer 10

• Accepting tenders after the submission deadline can introduce several risks including:
   Legal and regulatory risks – Due to risk of challenges from other bidders
   Reputational risk – Undermines the integrity and transparency of the process which could lead to lack of future participation from bidders
   Procedural risks – May set a precedent for future tenders leading to difficulty in enforcing submission deadlines