4 bid and award prdocess

UNIVERSITI MALAYSIA SABAH

KA 21102ATURCARAAN KONTRAK DAN TAKSIRAN

Part 4:BID AND AWARD PROCESS

ANIDAH HARTINI AG. SAID

1

BID AND AWARD PROCESS

CONTENTS1.Introduction2.Categories of Bidding3.Bid And Award Process

- Invitation to Bid- Distribution of Bid Document- Submission of Bid Document- Opening and Accepting Bid Document- Evaluation of Bid Document- Award of Contract- Contract Documentation

2


• Bid – Bidaan, Tawaran, Percubaan

• Categories of Project: 1. Supply – stationaries, rubbish bin, cartridge, books2. Services – cleaning, grass cutting, maintenance3. Works – construction: building, civil, M&E, landscaping

• Construction bidding is the process of submitting a proposal (tender) to undertake, or manage the undertaking of a construction project.

3


• The bid process for both Government and Private projects are similar. But for government project, the procedure are more details compare to private.

• Jabatan Kerja Raya and Kementerian Kewangan Malaysia are the agency in charge on creating and updating the procedure from time to time.

4


Figure 1 Bid and Award Process

5


Categories of Bidding

1.Tender - Tawaran– for project limit above RM500,000.00– Invitation/call tender not less than 21 days– Advertise in notice board and/or news paper/website

2.Quotation – Sebut Harga– for project limit above RM20,000.00 and below

RM500,000.00– Invitation/call tender not less than 7 days– Advertise in notice board and/or news paper/website

6


Invitation to Bid

•When a company or organization provides detailed project specifications and allows contractors to send in their proposals indicating how much the project will cost to complete.•Categories of Invitation:1.Put up in Notice Board2.Advertise at least 2 local news paper (malay & english)3.Letter of Invitation – for negotiated tender4.Website e.g. http://www.tenderdirect.com.my

https://www.eperolehan.com.my

http://www.kkr.gov.my/tender/notice

7


Notice of Bid

•Client’s Name and Address•Project Title•Period of Invitation•Registration of Contractor (Class, Head, Sub Head)•Project Briefing and Site Visit•Closing Date/Time – 12.00 noon (10.00am for sabah state)•Submission

8

Invitation to Bid – Tender Notice Board

9


Invitation to Bid

10


11


Invitation to Bid - web site

12


Table 1 Class of Contractor (General) - PKK

•Surat Pekeliling Perbendaharaan Bil. 14 Tahun 2002•Buku Panduan Awam PKK.doc

13

Kelas Nilai Projek (RM)

A Melebihi 10,000,000

B 5,000,001 hingga 10,000,000

C 2,000,001 hingga 5,000,000

D 500,001 hingga 2,000,000

E 200,001 hingga 500,000

F Sehingga 200,000


Table 2 Class of Contractor (Electric) - PKK

•Surat Pekeliling Perbendaharaan Bil. 6 Tahun 2007•Panduan Elektrik.pdf

14


I Melebihi 200,000

II 5,000,001 hingga 10,000,000

III Sehingga 500,000

IV Sehingga 200,000


Table 3 Class of Contractor (General) - PUKONSA

15


A Melebihi 5,000,000

B 2,000,001 hingga 5,000,000

C 750,001 hingga 2,000,000

D 350,001 hingga 750,000

E 150,001 hingga 350,000

F Sehingga 150,000


Table 4 Class of Contractor (General) - CIDB

16


G7 Tiada had

G6 Tidak melebihi RM10,000,000




G2 Tidak melebihi RM500,000

G1 Tidak melebihi 100,000


Distribution of Bid Document

•Selling of Bid (Tender/Quotation) Document•Tender Documentation fee is a non-refundable. Normally the price will be based on the document pages. •Tender Table Document – copy of document for contractor viewing similar to tender document.•The contractor must ensure the completeness of the tender document upon receipt. •Tenderers must bear all the costs associated with the preparation and submission of their bid and any further costs incurred prior to award of contract.

17


Distribution of Bid Document

•Contractor must present their original documents when purchasing the bid document:

Registration Certificate with PKK/PUKONSA and CIDBProject Briefing and Site Visit attendance formLetter of Authorise to collect tender document – if the person not the licence ownerLetter of Special Exemption (Surat Kebenaran Khas) from PKK/PUKONSA – for contractor who their licence did not suite the class/head/sub head offered.

18


Submission of Bid Document

•The original tender, together with any copies as specified in the Tender Document, must be securely sealed in an envelope and sent to the person named in the notice of tender.

•It is the tenderers responsibility to ensure that their tender is delivered by the date and time of the deadline for the receipt of tenders. Client does not undertake to consider tenders received after the deadline unless clear evidence of despatch is available.

21


Bidding Documents - Tender

•Part A: Information of Tender & Contract 1. Notice of Tender2. Instructions To Tenderer3. Form of Tender4. Condition of Tendering5. Form of Contract - including Articles of Agreement, Appendix to

Conditions of Contract, Addendum to Conditions of Contract

6. Letter of Acceptance of Tender - Specimen7. Form of Bank Guarantee - Specimen

22


Bidding Documents - Tender

• Part B: Project Specification1. Specification2. Summary of Tender3. Bill of Quantities

• Part C: Appendices1. Schedule of Rates2. Contractors Background3. Tender Drawings

23


24


Opening & Accepting Bid Document

•Tender processes must be undertaken in an open and transparent way.

•No tender received after the time and date specified for its opening shall be accepted or considered by the Council unless the relevant Officer/Manager is satisfied that there is sufficient evidence of the tender having been dispatched in time for it to have arrived before the closing date and time, or other exceptional circumstances apply, and the other tenders have not been opened.

25



•Tender will be opened by the Tender Opening Committee appoint by the head of an organisation or company.•For government project, a tender opening committee comprising senior government officials opens and records the bids in a register.•Project committee signed all the documents concerning the tenders. •Jadual Pembukaan Tender.pdf

26


27


28


Evaluation of Bid Document

•Normally tender evaluation report done by the Q.S. •For M&E project, the tender evaluation report done by the engineer itself.•Tender validity period: 90/120 days•Evaluation Criteria – based on JKR & MOF guidelines:Stage 1- Completeness of Tender DocumentStage 2 - Bidding Price, Tenderer’s Background (Technical Staff, Financial, Experience, Plant & Machineries)

29



•List and record tenders ensuring confidentially of tender submissions and manage documentation security•Assess tenders for conformance with tender requirements and reject late or non-conforming tenders •Apply key selection criteria and agreed weightings to conforming tenders and identify the best value tender as the preferred tender •Clarify any uncertain aspects of the preferred tender

30



•If successful negotiations can not be reached with the preferred tenderer, consider the next best value tender.•Re-confirm budget is available to proceed.•Prepare and sign off the tender evaluation and recommendation report, note All Tender Board members are to sign-off on the preferred tenderer as the Recommended Tenderer .

Panduan Penilaian Tender.pdf

31



Figure 2 Evaluation of Bid Document

32


Award of Contract

•Client/Employer notice to a bidding contractor of the acceptance of the submitted bid.•Tender board is the authority that have power to decide and select the successful tenderer. •Tender board member involves at least 5/7 person of senior officers in the organisation and head of agency as the chairman.•Award of contract shall be made using the submitted, not the calculated, price for the contract under bidding.

33


Award of Contract

•Notice of Award (Letter of Acceptance of Tender) should be approved by the Head of Agency or his duly authorized representative and issued within seven (7)/ fourteen (14) calendar days from the date the decision to award is made.•If the tender board finds that the bidder with the lowest calculated price passes the qualification criteria, his bid shall be considered as the "lowest calculated responsive bid", and the office/agency/corporation shall award the contract to him, at his submitted bid price, subject to the other provisions of this section.

34


Award of Contract

•Contract award shall be made within the bid validity period. Should it become necessary to extend the validity of bids, the agency concerned shall request in writing all those who submitted bids for such extension before the bid expiration date. Bidders, however, shall have the right to refuse to grant such an extension without forfeiting their bid security.•Sample letter of Acceptance of Tender•LA maincon.pdf•LA subcon.pdf

35


Award of Contract

•The successful bidder shall execute the contract with the concerned agency within fourteen (14) calendar days after receipt of the notice of award. All unsuccessful bidders shall also be notified of the award through official notices/communications.•Notice of award shall immediately be posted in a conspicuous place within the premises of the concerned office/agency/corporation and in the website of the office/agency/corporation and/or the procurement service. A copy thereof may be requested in writing.

36


Contract Documentation

•Contents similar to tender document.•Within Thirty (30) days from the day of the Employer notifying the successful Tenderer that his Tender has been accepted, the Employer will send the successful Tenderer the Contract Documents for execution.•Within Fourteen (14) days from the day of the successful Tenderer’s receipt of the Contract Documents he shall have them signed, witnessed and dated and return them to the Employer.

37

Thank you

38

Assignment 1

Instructions;•Form a group of 5 - 6 students each. (each group will get different topic)•Create the process flow chart and describe the process in details.

1. Invitation to Bid2. Distribution of Bid Document3. Submission of Bid Document4. Opening and Accepting Bid Document5. Evaluation of Bid Document6. Award of Contract7. Contract Documentation

•Date of Submission: 24th April 2012

39

Thank you

40

4 bid and award prdocess

Documents

award processthe bid

award processinvitation

award processtable

award processfigure

award processbid bidaan

contractor class

award processanidah

government project