7.8 Bid Assessment
A. Technical Bid Assessment
The Project Committee shall open the submitted technical bids and may request the bidders to submit the required clarifications, complete the shortcomings and confirm the obligations that may be included in the bid within a specific period.
The process of assessing the submitted technical bids shall start with an initial preparatory phase in which the Project Committee verifies that the bids are complete and the minimum requirements and conditions are met.
The Project Committee may verify the bid completeness during the public session of bid opening or may carry out this process in a closed session. Along with the completeness verification, the Project Committee shall consider the technical bids, including the technical, legal and financial solutions, to make sure that they meet the minimum requirements set out in the bidding requirements document.
The Project Committee may request the bidders to confirm their technical and financial obligations and provide clarifications regarding any ambiguities in their technical bids or any attached document. It may also request them to complete any shortcomings , whether documents or other information, within a specific period it sets. This procedure aims at not excluding bidders for any reasons that may not be material, such as a minor shortcoming in the financial security value or providing a security with the same value in different currency, because they may be serious competitors and have the required abilities and desire to implement the project.
During the process of requesting clarifications and responding to the inquiries by the project committee, the questions and replies shall be in writing. The question shall refer to a specific item of the bid and shall not suggest any amendments to the bid. The answer or reply shall be accurately checked before accepting it as a clarification. If the reply includes an amendment to the bid, it shall be excluded and its contents shall be ignored.
Upon the expiration of the period set for completing the shortcomings and providing clarifications, the technical bids non-conforming to the requirements contained in the bidding requirements shall be rejected and the its financial bids shall be returned to the bidders without disclosing them pursuant to the principle of transparency.
The complete technical bids that meet the minimum requirements set out in the bidding requirements document shall be analysed and assessed. The Project Committee, assisted by team appointed by the Technical Bureau, shall assess and compare the remaining technical bids. The technical bid normally includes the technical, legal and the financial solutions and shall be assessed according to its sections.
First: Technical Solution Assessment
The technical solution assessment is divided into two main parts: preparation phase and the operation phase, i.e. the phase of service provision.
• Preparation Phase
Hereunder the considerations on which the technical solution assessment may depend during the preparation phase:
Design quality, safety, cost efficiency and practical and innovative nature.
Design level and cost-estimation accuracy
Social and environmental impact and compliance with the environmental legislation.
Ability to provide outcomes, reports and schedules
Integration of design, preparation, maintenance and operation according to a clear program.
Quality management, safety and security systems suggested by bidders.
• Operation Phase
The technical solution assessment in the operation phase shall depend on the following:
How the suggested performance targets and measurement systems exceed the minimum specifications and the operation methodology.
Quality of the services suggested to be provided to the end users and their conformity to criteria and performance indicators set in the bidding requirements document.
How the philosophy of asset management and maintenance supports the project objectives.
Quality of the suggested management structure and the personnel system.
Quality of the safety plans, including the use of the known and proven techniques.
Integration of the PPP project with the existing services.
Quality of the management system suggested by bidders.
Compliance with the environmental legislations.
Adherence to the follow-up and reporting requirements of the Federal Entity and the Technical Bureau.
Easiness of the project operation without complications or with the least possible complications that may be overcame easily.
Quality of the suggested installations and facilities, and their conformity to the specifications set out in the bidding requirements document, and the availability of sufficient measures for maintaining them and ensuring their continuity.
Second: Legal Solution Assessment
The legal solution assessment shall depend on the strength and stability of the special purpose vehicle or the "project company" suggested by the bidders. This matter is reflected in the structure suggested by bidders for that company, the incorporation agreements between them, the level of obligation and undertakings of each alliance member and each member contribution in the equities.
The legal solution assessment also focuses on the suggested amendments to the PPP contract draft and the the project company bylaw (if drafted by the Project Committee) and the resulting increase in risks and the method of their distribution.
Third: Financial Solution Assessment
The financial solution assessment is the most complicated one because it requires a complete understanding of the project costs throughout its period and the relevant alliance's structure and financing. Hereunder the considerations that the financial solution assessment shall depend thereon:
The project total cost in terms of the limits on cost affordability.
Reality of operational and capital expenditure, including the assessment of whether the quality management system costs are calculated in the financial model or not.
Cost-effectiveness of the services, installations and facilities to be provided through the project.
Strength of the financial solution, including its sensitivity to changes in operation and maintenance costs, currency rate fluctuations, inflation rate, interest rate and cash flow forms.
Strength of the financing structure.
Level and nature of equities in the financing structure.
Level of compliance showed by the debt providers and equity owners as well as the terms and conditions associated with providing this financing.
Level of incurred risks and the extent of deviation from the requirements detailed in the bidding requirements document.
Cost, level and nature of the suggested guarantee (insurance) coverage.
Nature and significance of risks, their occurrence possibility and their distribution method.
The Project Committee shall give points based on the relative weights previously identified for each section, and then the technical assessment score shall be calculated. Based on the followed assessment method, the Project Committee shall identify the accepted technical bids.
b. Financial Bid Assessment
The Project Committee shall open the financial bids associated to the accepted technical bids. The financial bid importance is limited to the price that shows in general the project cost to be incurred by the government. The price shall be audited in light of the submitted financial solution and its compliance with the submitted financial model shall be ensured.