Rural Access Improvement and Decentralization Project (RAIDP)

Government of Nepal

Ministry of Federal Affairs and Local development

Office of District Development Committee

District Technical Office

……District, ……..

Project for Strengthening the National Rural Road Transport Program (SNRTP)

(IDA Grant No: H 899NP, IDA Credit No 5336 NP)

Bid Evaluation Report

and

Recommendation for Award of Contract

Name of Project:

Contract Name: Upgrading of …………….. Rural Road

(Ch: 0+000 to 0+000)

Identification Number: SNRTP/…../W/NCB/……/UG/07../07..

Date of Submission:

Table of Contents

1. Background:

2. Preparation of DPR & Bidding Documents ...... 1

3. Bidding Process ...... 1

3.1. Bid Invitation ...... 1

3.2. Bid Purchasing ...... 2

3.3. Pre-Bid Meeting...... 2

3.4. Clarification on bidding document...... 2

3.5. Addendum...... 3

3.6. Submisssion of bids...... 3

3.7. Withdrawals...... 4

3.8. Modifications/Substitutions...... 4

3.9. Bid Opening...... 4

4. Bid Evaluation Committee...... 4

5. Bid Evaluation...... 4

5.1. Examination of Eligibility...... 5

5.2. Examination of Completeness of bids...... 7

5.3. Arithmetic check and corrections...... 11

5.4. Read Out Bid Price...... 11

5.5. Corrected Bid Price...... 11

5.6. Analysis of Prices...... 11

5.7. Qualification Criteria...... 12

5.8. Detailed Evaluation of Post Qualification requirements...... 13

6. Conclusion and Recommendation...... 22

7. Intention for award of contract...... 23

Tables

Table1. Identification

Table2. Bidding Process

Table 3. Bid Submission and Opening

Table 4. Bid Prices (as Read Out)......

Table 5. Preliminary Examination

Table 6. Corrections and Unconditional Discounts

Table7. Proposed Contract Award...... 32

Annexes

Annex ICopy of No Objection letter on DPR and Bidding Document

Annex IICopy of Bid Invitation Notice (Cutting of Newspaper)

Annex IIICopy of Bid Document Selling Records

Annex IVCopy of Pre-Bid Meeting Minutes

Annex VClarification

Annex VIAddendum Notice

Annex VII Bid Registration Records

Annex VIII Record of e-bid submission downloaded (No. of e-submitted bids, withdrawals , modification and substitution)

Annex IX Withdrawals

Annex X Modifications/ Substitutions

Annex XI Copy of Bid Opening Muchulka (Minute) with Checklists

Annex XII Comparative Chart

Annex XIII Calculation of Net worth

Annex XIV Calculation of Turnover

Annex XV Copy of experience certificates

Annex XVI Copies of Documents received from lowest evaluated substantially responsive

bidder

1. Power of Attorney & others

ii Bid Form

iiiTax clearance certificate

ivBid Securities and Line of Credit

Annex XVII Minute of Bid Evaluation Committee

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Strengthening the National Rural Transport Program (SNRTP)

(IDA Grant No. H 899-NP AND Credit Number: 5366 NP)

BID EVALUATION REPORT

Upgrading of ………………. Road

Contract Identification No: SNRTP-…..-W-NCB -…………..

1. Background:

Government of Nepal has received a grant (Grant. H 899-NP) from the International Development Association (IDA) toward the cost of Strengthening the National Rural Transport Program (SNRTP) of District Development Committee (DDC)/District Technical Office (DTO), ………., Ministry of Federal Affairs and Local Development (MoFaLD). Therefore, part of grant proceed under the grant agreement (H 899-NP) shall be applied to cover the eligible payments under various civil works contracts for Upgrading of …….. Road. The engineers cost estimate amount is NRs. 134,740,669.86 (excluding VAT and contingencies).

The DPR was approved on ……….., 2015, Whereas, the engineers cost estimate excluding VAT, contingencies and Provisional Sum is NRs. 134,740,669.86 . The project period has been estimated ………. months.

2. Preparation of DPR & Bidding Documents

Brief Description of Civil Works:-Length, starting ending point, major structures, Engineers Estimate, Estimate as per procurement Plan in NRs Million.

Bidding Documents Preparation: Standard Bid Document for NCB, agreed by World Bank for SNRTP project has been used for this bidding process. (, Estimated contract value, bid security provisions, key qualification requirements e.g. AATO, Specific Experience, Liquid Assets, etc., prior or post review, date of no objection to DBD if prior review

CPU/WB has given concurrence on DPR and bid document on …………. A copy of No Objection letter on DPR and bid document is attached in the Annex I.

1. Bidding Process
2. Bid Invitation:

Procurement of "Upgrading of …….. Road" is provisioned under the Works annual procurement plan of SNRTP project. As per the approved procurement plan post review requirements are needed. The SNRTP provided "No Objection" on …………. regarding detailed engineering design. Based on the NoL obtained on …….. 201.. from SNRTP, CPCU, District Technical Office (DTO), ………. advertised Specific Procurement Notices in English for National Competitive Bidding (NCB) with Contract ID: SNRTP-….-W-NCB -…………. on ………. 201.. in the ".……." National daily newspaper (cutting of news paper, Annex II) as well as in the PPMO Web site "http://www.bolpatra.gov.np" on same day. Notification time to submit the bid was ….. days to enable prospective bidders to obtain bidding documents and prepare and submit their responses, where last date of submission was ………, 201...

3.2 Bid Purchasing:

The last date of the bid purchasing was ……., 201... Three bidders downloaded the bidding document depositing the cost of Bidding Documents and two bidders purchased the hard copy of bidding Documents within the deadline. The bid document selling record was closed at DDC Office on 5 PM, …….. 201.. (Nepal Standard Time) by Chief District Engineer Mr. …………. (Copy of bid document selling record - (Annex -III).

Bidders who have downloaded/purchased Bidding Documents from PPMO Web site "http://www.bolpatra.gov.np/DTO office, ...... are listed as follows:

3.3 Pre-Bid Meeting:

As mentioned in the invitation for bid notice, the pre-bid meeting was held on …….., 201... The meeting was chaired by Chief District Engineer Mr. ……... No bidders were present in the pre-bid meeting. Hence, no comments/queries were received in the pre-bid meeting. Prospective bidders were present in the pre-bid meeting. The queries raised by the bidders was recorded. Pre-bid meeting minute was circulated to all of the bidders who purchased the bidding document. Pre bid meeting minute is attached in Annex-IV.

3.4 Clarification on Bidding Documents:

As there were no any queries raised by the bidders, no clarification was made on the bidding document (Annex V).

Or

As per ITB Clause 7, clarification on the queries raised by the bidders was prepared and circulated on ………, 2015 to all of the bidders who purchased the bidding document by providing Clarification Notice No. 1 and was posted in the websites- www.bolpatra.gov.np (Annex-V)

3.5 Addendum:

There was no any addendum notice issued (Annex.VI).

Or

As per ITB Clause 8, addendums were made on Bidding Documents as specified in the Addendum Notice no. 1, which was circulated all of the bidders who purchased the bidding document and was posted in the websites- www.bolpatra.gov.np. Addendum Notice no. 1 is attached in Annex-VI.

3.6 Submission of Bids

The deadline for the submission of bids was ….., 201.. at 12:00 hours (Nepal Standard time). The submission was closed by Chief District Engineer Mr. ………. at 12:00 Noon (Local time). The bid submission registration record has recorded two submission of bid and no any modification/ withdrawal submitted within the deadline for bid submission. (Copy of Bid Registration Records Annex VII).

Whereas, total responses in the http://www.bolpatra.gov.np was recorded 5 articles submitted within the deadline. Out of which, three articles are e-bids, one articles is modification and one article is withdrawal of bid. Responses on e-bid submission is attached in (Annex –VIII).

The following list illustrates name and address of the bidder who have submitted Bids and modification letter within dead line for bid submission:

3.7 Withdrawals:

I Nirman Company, Pulchowk, Lalitpur has submitted e-application for withdrawal duly signed by an authorized representative along with a copy of the authorization letter Annex -IX.

Or

There was no any sealed envelope/e-application submitted for withdrawals of bid.

3.8 Modifications/ Substitution:

G/H JV, Pulchowk, Lalitpur has submitted e-application for modification/substitution stating it has been deducted at the rate of 0.02 percent in all its quoted items and duly signed by an authorized representative along with a copy of the authorization letter Annex -X.

Or

There was no any sealed envelope/e-application submitted for modification/substitution of bid.

3.9 Bid Opening

Bid opening was held at DDC Office, ……. on ……, 201.. at 13:00 Hours (Nepal standard Time) in presence of, Bidders' representatives and DDC officials as well as officials invited from different district offices.

Bid opening minute and bid opening check list was prepared, signed by the attendees of the bid opening meeting. The bid opening minute and bid opening check list was circulated all of the bidders who submitted the bid and was posted in the websites- www.bolpatra.gov.np.

Furthermore, copy of bid opening minute and bid opening check list was also sent to SNRTP, CPCU, Jawalakhel, Lalitpur on ………, 201... The bid opening minute and bid opening check list is attached in Annex -XI

1. Bid Evaluation Committee

A bid Evaluation committee was formed under the Chairmanship of the Project Coordinator (Chief District Engineer /District Technical Office ………) with the following members:

(i) Engineer (DTO)……….. Co-ordinator

(ii) Engineer (DDC)……….. Member

(iii)Accountant (DTO),……….. Secretary

(iv)Sub-Engineer (DDC ……….. Member

1. Bid Evaluation

The bid evaluation committee studied the bid opening minute, the bid documents, Public Procurement Act and Public Procurement Regulations and started bid evaluation process.

5.1 Examination of Eligibility:

Firstly, bidder's eligibility was examined. Firm Registration Certificate, Business Registration Certificate, VAT and PAN Registration Certificate, Tax Clearance Certificate/Tax return submission evidence for the F/Y 2071/072, written declaration made by the bidder with a statement that s/he is not ineligible to participate in the procurement proceedings; has no conflict of interest in the proposed procurement proceedings, and has not been punished for a profession or business related offense, Conflict of interest, Government owned entity and UN eligibility also was examined. See the tables below -

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1. Examination of eligibility

1. Examination of Eligibility

From the eligibility examination, M/S D/E/F JV is in-eligible as it has not submitted VAT/PAN Registration Certificate and Tax Clarence certificate of F/Y 2071/72 of M/S E Construction. All other bidders are eligible as they have submitted evidence of their eligibility. The evaluation committee decided to exclude M/S D/E/F JV in the further evaluation.

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5.2 Examination for completeness of Bids

The bids submitted were then examined whether the bid are complete or not. The areas covered in examination of the completeness of bids were:

1. Sufficiency of Bid validity
2. Sufficiency of Bid Security, in terms of amount, validity period of the bid security, bank, bidder.
3. Power of attorney to sign the bid
4. Bid properly signed
5. Only one bid submitted
6. Bid is submitted in the sold bid document
7. Bid is submitted who purchased the bid document
8. Joint Venture Agreement (if applicable)
9. Documents submitted to establish and substantiate the qualification requirement
10. Audited balance sheet of last five years
11. Credit line certificate NRs. 36,000,000.00
12. Certificate on general construction experience of at least five years prior to the bid submission deadline
13. Certificate on specific construction experience of at least 2 (two) road construction contracts within the last 5 (five) years, each with a value of at least NRs. 110,000,000.00 (without VAT) that have been successfully or are substantially completed and that are similar to the proposed works
14. Certificate of equipments
15. Resume of personnel

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Examination of completeness

From the completeness examination it was found that all of the bidder's bids are complete So, the evaluation committee decided to go ahead for the further evaluation.

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5.3 Arithmetic Check and Corrections

The evaluation committee prepared comparative chart of bidder's bid price, excluding Provisional Sums, Value Added Tax and Contingencies according to bidding rates. Each bid was checked for arithmetic errors in accordance with the provisions of the bidding documents.

5.4 Read out Bid Price:

5.5 Corrected Bid Price:

5.6 Analysis of Prices

For details of comparative chart please refer Annex -XII. Approved engineer's estimate is NRs. 134,540,669.86 without provisional sum, VAT & contingencies. The summary of the bid amount are as follows:

5.7 Qualification Criteria

Bidder was required to provide their qualification information along with bid price for post qualification. The minimum qualifying criteria for the purpose of this contract package mentioned in the bidding documents are as follows:

a) As a minimum, a Bidder's net worth calculated as the difference between total assets and total liabilities should be positive