Tendering Procedures

1. Block Education Officers’ Training
Tendering Procedures
Prof. (Dr.) Rajeev Ranjan
Chandragupt Institute of Management Patna

2. Agenda
 Introduction: Commonly used terms
 EOI vs RFP vs RFQ vs NIT/IFB
 RFP…?
 Contents of RFP
 Preparation of TOR
 Evaluation of Bids
 RFP: Caution@QCBS
 Sample RFP for Discussion

3. EOI
 Used as a Screening/Shortlisting Tool
 Likely to involve a further request before a
final decision
 Purchaser NOT committed to Buying

4. RFP
 Purchaser has NO clear defined criteria or
specification
 Focused on more than just pricing, thereby
entailing a bit of consulting from the
contractor
 Issued to the short-listed consultants to seek
their technical and financial proposals
 Purchaser NOT committed to Buying

5. RFQ
 Purchaser has clearly defined criteria or
specification
 Judged solely on Price
 Purchaser COMMITTED to buying

6. NIT/IFB/CFB
 Purchaser has clearly defined criteria or
specification
 Judged both on Price & Qualitative factors
 Purchaser COMMITTED to buying

7. EOI vs RFP vs RFQ vs NIT
EOI
• Used as a
Screening/Shortlisti
ng Tool
• Likely to involve a
further request
before a final
decision
• Purchaser NOT
committed to
Buying
RFP
• Purchaser has NO
clear defined
criteria or
specification
• Focused on more
than just pricing,
thereby entailing a
bit of consulting
from the contractor
• Issued to the short-
listed consultants
to seek their
technical and
financial proposals
• Purchaser NOT
committed to
Buying
RFQ
• Purchaser has
clearly defined
criteria or
specification
• Judged solely on
Price
• Purchaser
COMMITTED to
buying
NIT/IFB/CFT
• Purchaser has
clearly defined
criteria or
specification
• Judged both on
Price & Qualitative
factors
• Purchaser
COMMITTED to
buying

8. Request For Proposal…
 A document to be used by the Department for obtaining
offers from the consultants for the required service. (Rule-
131ZC)
 Issued to the shortlisted consultants to seek their
technical and financial proposals. (Rule-131ZC)
 Used for creating an open competition in order to bring
down the cost of a solution.
 However, RFP closest to the specifications may not
necessarily be the one with the lowest price.
 Therefore when accepting a proposal, the procuring
authority must carry out a cost benefit analysis to make
sure the cost does not out-weigh the benefits.

9. RFP: Contents [Rule-131ZC]
 A letter of Invitation
 Information to Consultants regarding the procedure for submission
of proposal
 Terms of Reference (TOR)
 Eligibility and pre-qualification criteria in case the same has not
been ascertained through Enquiry for Expression of Interest
 List of key position whose CV and experience would be evaluated
 Bid evaluation criteria and selection procedure
 Standard formats for technical and financial proposal
 Proposed contract terms
 Procedure proposed to be followed for midterm review of the
progress of the work and review of the final draft report.

10. Preparation of TOR [Rule-131ZB]
The TOR should include
 Precise statement of objectives
 Outline of the tasks to be carried out
 Schedule for completion of tasks
 The support or inputs to be provided by the Ministry or
Department to facilitate the consultancy
 The final outputs that will be required of the Consultant.

11. Receipt & Opening of Proposals
[Rule-131ZD]
 Proposals should ordinarily be asked for from
consultants in ‘Two-bid’ System with Technical and
Financial bids sealed separately.
 The bidder should put these two sealed envelops in a
bigger envelop duly sealed and submit the same to
the Department by the specified date and time at the
specified place.
 On receipt, the technical proposals should be opened
first by the Department at the specified date, time and
place.

12. Late Bids [Rule-131ZE]
 Late bids, i.e., bids received after the specified
date and time of receipt, should NOT be
considered.

13. Evaluation of Bids…
Evaluation of Technical Bids [Rule 131ZF]:
 Technical Bids should be analysed and evaluated by a
Consultancy Evaluation Committee (CEC) constituted
by the Department.
 The CEC shall record in detail the reasons for
acceptance or rejection of the technical proposals
analysed and evaluated by it.

14. Evaluation of Bids…
Evaluation of Financial Bids [Rule 131ZG]:
 The Department shall open the financial bids of only those
bidders who have been declared technically qualified by
the Consultancy Evaluation Committee as per Rule 131ZF
for
- Further analysis or evaluation
- Ranking, and
- Selecting the successful bidder for awarding the
contract on the basis of LCS (Least Cost System) or
QCBS (Quality and Cost Based Selection) as the case may
be

15. IFB: Caut!on@QCBS
 The RFP must specify the minimum qualifying
score for the quality of technical proposal [GFR Rule-
191(iii)]
 The RFP must also specify the relative weightages to
be given to the quality and cost (70:30, 60:40, 50:50
etc.) [GFR Rule-191(iii)]
 in NO CASE, the weightage of the Technical
Parameters, should exceed 80% [GFR Rule-191(iv)]

16. Thank you!