NNPCL Tender Evaluation Policy PDF

NNPC Limited SCM Processes and Procedures 8.0 Evaluate Tenders and Select Supplier This policy defines the selection criteria for evaluating tenders and selecting suppliers. Objectives The objectives of this process are to: • • • Ensure the most appropriate proposal is selected to meet requireme...

NNPC Limited SCM Processes and Procedures 8.0 Evaluate Tenders and Select Supplier This policy defines the selection criteria for evaluating tenders and selecting suppliers. Objectives The objectives of this process are to: • • • Ensure the most appropriate proposal is selected to meet requirements. Ensure the creation of an evaluation audit trail and set of supporting documentation that will support the evaluation process and final decision. Ensure contract is awarded to the most economically advantageous tender. 8.1 Evaluate Tenders and Select Supplier Policies S/N Description 1. Approval of the Vendor Selection Criteria and the Evaluation Committee User Department shall produce the Evaluation Criteria in alignment with the RFP/ITT documents. SCM shall be responsible for reviewing the User Department’s submission. The criteria for evaluating submitted proposals may be divided into sub-criteria, each of which shall be awarded sub-points, also weighed on a scale of 0 - 100 (e.g., for "methodology and work plan", the sub-criteria may be "innovation" and "relevance of detail"). SCM and User Department shall present the strategy memo and Evaluation Committee membership to the relevant Tenders Committee. The Evaluation Committee shall consist of minimum of five (5) persons from User department, SCM, Legal, Cost Engineer/ Estimator and any other relevant department. The relevant Tenders Committee may consider and approve the evaluation criteria and the Evaluation Committee membership. The relevant Authority shall constitute an Evaluation Sub-Committee at least two (2) weeks prior to opening of bids. 2. Submission of Proposals/ Tender NNPC Limited shall allow sufficient time for the preparation and submission of the requested proposals but shall in no case give less than thirty (30) days for Tenders and fourteen days (14) for proposal between the issue of the notice or request and the deadline for submission. The technical and financial tender shall be submitted simultaneously but in separate folders. 72 NNPC Limited SCM Processes and Procedures 8.1 Evaluate Tenders and Select Supplier Policies A Proposal/ Tender received after the deadline for submission of proposals shall not be opened and must be returned to the Vendor, Contractor or Supplier unopened. All tenders shall be submitted to the appropriate secure electronic platform. Immediately after the deadline for submission of Proposals/ Tenders, the technical proposals shall be opened for evaluation whilst the financial proposals shall remain secure in the electronic platform until they are opened. The Technical Evaluation Committee shall not have access or insights to the financial Proposals/ Tenders until the evaluations, including any Tender Committee Evaluation, are concluded and approved by the Tenders Committee. A Vendor, Supplier or Contractor may withdraw or modify their tender prior to the deadline for the submission of bids. 3. Tender Validity Tenderers shall be required to submit bids valid for the period specified in the bid documents. In any case, bid validity shall not be for less than sixty (60) days or more than one hundred and eighty (180) days in the first instance. 4. Tender Opening At least two (2) weeks prior to opening of the tenders, the designated authority at NNPC Limited shall constitute the Evaluation Sub-Committee. The Evaluation Sub-Committee shall be chaired by the Secretary of the relevant Tenders Committee or his/her representative. Tenders must be opened immediately following the deadline stipulated for submission. After opening of tenders, information relating to examination, clarification and evaluation of tenders and recommendation concerning award shall not be disclosed to bidders or persons not officially concerned with the evaluation process until the successful tenderer is notified of the award. 5. Tender Evaluation At least a week before the evaluation starts, the team members shall meet to familiarize themselves with the background documentation and the evaluation procedures. 73 NNPC Limited SCM Processes and Procedures 8.1 6. Evaluate Tenders and Select Supplier Policies RFQ Evaluation a. A bidder shall submit only one quotation and shall not be allowed to change or vary the quotation. b. No solicitation shall take place between a procuring entity and a contractor or supplier with respect to a quotation. c. The procurement shall be awarded to the most economically advantageous tender. 7. Criteria for Evaluation of Proposals NNPC Limited shall establish criteria to evaluate the proposals and prescribe the relative weight to be accorded to each criterion and the manner in which they are to be applied in the evaluation of: a. Mandatory criterion: i. Evidence of incorporation of the company with the Corporate Affairs Commission (CAC) including Articles and Memorandum of Association of the Company. ii. Evidence of current Tax Clearance Certificate (for the last three years). iii. Evidence of Compliance with Pensions Reform Act 2004 by inclusion of Compliance Certificate from the National Pension Commission, and iv. Evidence of compliance with the Industrial Training Fund Amendment Act, 2011 by inclusion of compliance Letter from the Industrial Training Fund. b. The qualification, experience, reliability, professional and managerial competence of the consultant or service provider and of the personnel to be involved in providing the services. c. The effectiveness of the proposal submitted by the consultant or service provider in meeting the needs of NNPC Limited. d. The proposal price, including any ancillary or related cost. e. Financial capability. f. Community Affairs, Safety Heath Environment and Security (CASHES) policy. g. Nigerian Content Plan. All criteria to be used in the bid evaluation and the method of their application must be specified in the tendering documents. NNPC Limited may accord a margin of preference for domestic consultants or service providers which shall be reflected in the contract strategy. 74 NNPC Limited SCM Processes and Procedures 8.1 Evaluate Tenders and Select Supplier Policies Evaluation factors not specified in the bidding document shall not be used in tender evaluation. 8. Technical Evaluation All selection methods subject to competition (that is except for CQS and SSS), grade the technical criteria on a scale of 0 to 100 points: this grading scale is detailed in the Specific Instructions of the RFP. The points attributed to each evaluation criteria are a function of the importance of each criterion for the assignment and may be adjusted as necessary. The allocation of points to the above criteria will differ for the type of assignment: a. For assignments of detailed engineering and design, greater weight shall be given to the consultant's proven experience and past performance, and relatively less weight shall be given to key staff, because such assignments are mostly carried out at a consultant's home office. b. For an assignment for construction supervision and implementation services the quality of key staff is much more important, since it has a direct bearing on supervision and management of the works, quality of performance and quality control, as well as transfer of technology/knowhow. NNPC Limited's Specific Instructions in the RFP may divide the above main criteria into sub-criteria, each of which shall be awarded sub-points, also weighed on a scale of 0 - 100 (e.g., for "methodology and work plan", the subcriteria may be "innovation" and "relevance of detail"). However, the number of sub-criteria should be kept to a minimum (generally not more than three) to avoid that the evaluation becomes too mechanical and a "numbers game". Sub-criteria are also customary for the proposed key staff (e.g., general qualifications and experience, adequacy for the assignment, leadership role in the area of the assignment, knowledge of the region, language proficiency, etc.). 9. Commercial Evaluation On conclusion of the technical evaluation, vendors who meet the minimum technical score shall have their commercial tenders opened not later than one (1) week after the approval of the Technical Evaluation report by the relevant authority. 10. Tenderers Debrief 75 NNPC Limited SCM Processes and Procedures 8.1 Evaluate Tenders and Select Supplier Policies At the end of every tendering process, it is required that unsuccessful tenderers be debriefed based on request. In the case where a company requests for it then the following procedure applies: a. Collate list of all unsuccessful tenderers including official emails and contact address for communications based on request. b. Obtain approval to send to all unsuccessful tenderers. c. Ensure email delivery and read receipt boxes are checked. d. Track and monitor to ensure all recipients have received and acknowledged. 11. Extension of Tender Validity Tenderers are required to keep their offers valid for a specified period. This will allow for time taken to examine and evaluate offers, select the lowest evaluated responsive tender and obtain the necessary approvals from the competent authorities for the proposed award of the contract. Tenders shall thus remain valid for the period stated in tendering documents. A tender that is valid for a shorter period than required by the tendering documents shall be rejected as non-responsive. Where there is a delay in tender evaluation, NNPC Limited shall request tenderers to extend the period of validity of their tenders. Tenderers may refuse to grant any extension of validity of their tenders without losing their Tender Security, if any. Tenderers are not allowed to increase their prices as a condition of extending the validity of their tenders, unless the tendering documents provide for an adjustment in price. 12. Acceptance of Tenders The selected tenderer needs not be the lowest cost tenderer provided NNPC Limited can show good grounds for its award decision. Notice of the acceptance of the bid shall immediately be given to the successful tenderer. 13. Repeat Order Repeat procurement can be applied only once within a period not exceeding two (2) years from the date of original tender. A repeat procurement of goods, works or services which has recently been competitively tendered and satisfactorily executed/received or still work in progress and for which the Supplier or Contractor is willing to maintain his tender prices/rates. 76 NNPC Limited SCM Processes and Procedures 8.1 14. Evaluate Tenders and Select Supplier Policies Tender Security Subject to the monetary and prior review thresholds as may from time to time be set, all procurements valued in excess of the sum prescribed shall require a bid security in an amount not more than 2% of the bid price by way of a Bank Guarantee issued by a reputable bank acceptable to NNPC Limited. When NNPC Limited requires Suppliers or Contractors submitting tenders to provide a tender security: a. The requirement shall apply to each Supplier or Contractor. b. The tender security shall be submitted in exactly the same format attached in the Standard Bidding Documents or otherwise be rejected by NNPC Limited. c. Notwithstanding paragraph (b) above, a tender security shall not be rejected by NNPC Limited on the grounds that the tender security was not issued by an issuer in the country, if the tender security and the issuer otherwise conform to requirements and format prescribed in the tenderer documents. d. A Supplier or Contractor may request NNPC Limited to confirm the acceptability of a proposed issuer or a proposed confirmer of a tender security before submitting a tender and NNPC shall respond promptly to the request. e. Confirmation of the acceptability of a proposed issuer or of a proposed confirmer does not preclude NNPC Limited from rejecting the tender security on the ground that the issuer or confirmer has become insolvent or is otherwise not creditworthy. f. Any requirement on tender security that refers directly or indirectly to conduct by the Supplier or Contractor submitting the bid may only relate to: i. Withdrawal or modification of the bid after the deadline for submission of bids, or before the deadline if stipulated in the tender documents. ii. Failure to sign the procurement contract if required by NNPC Limited to do so. g. Failure to provide a required security for the performance of the contract after the tender has been accepted or to comply with any other condition precedent to signing the procurement contract specified in the tender documents. h. NNPC Limited shall not make a claim to the amount of the tender security and shall promptly return or procure the return of the bid security document after whichever of the following occurs first: i. The expiry of the tender security. 77 NNPC Limited SCM Processes and Procedures 8.1 15. Evaluate Tenders and Select Supplier Policies ii. The entry into force of a procurement contract and the provision of security for the performance of the contract, if the security is required by the tender documents. iii. The termination of the procurement proceedings without the entry into force of a procurement contract, or iv. The withdrawal of the bid prior to the deadline for the submission of bids. Handling and resolving Bidders Complaints Bidders shall direct all queries and complaints to [email protected]. SCM shall respond to queries/complaints after response is appropriately vetted by designated management staff. Escalate issue to SCM [email protected] when the bidder/complainant is still not satisfied where it will be looked into independently. Make available the complaints procedures on the Procurement Page on the NNPC Group website. 16. Exceptions The following are exceptions to the general procedures above: For Selection of Consulting Firms (Small Assignment Lump-Sum/Complex Lump- Sum): a. b. c. There shall be no public opening of Technical proposals. Technical proposals shall be opened after the deadline. Financial proposals at this stage shall not be opened but kept and stored securely until they are opened at the time and manner specified in the Instruction to Consultants. 78 NNPC Limited SCM Processes and Procedures 8.2 Evaluate Tenders and Select Supplier Procedures S/N Responsible Description Party 1. SCM (N-4/5) After submission deadline and on receipt of Vendor Tenders Note: Job Aid Email/ Etendering platform The following checks shall be made • • 2. SCM (N-4/5) 3. SCM (N-4/5) 4. SCM (N-4/5) Submitted tenders comply with the requirements for the submission of the tender (i.e., Technical, Commercial, Local Content, etc.). Submitted tenders is eligible by invitation in the case of restricted tendering. Ensures that Tender Opening takes place immediately following the deadline SCM stipulated for the submission of tenders or extension thereof. Open tenders immediately following the deadline stipulated for submission. Open tenders for the technical bids and forward to the Evaluation Committee. Excel Word Word Note: After completion of technical evaluation, commercial bids shall be opened for vendors that scale the minimum Technical Evaluation score. 5. SCM (N-4/5) Take minutes of tender opening and attendance of persons present. 6. Evaluation Committee Analyse technical bids and SCM presents report as per Technical Evaluation Report Template to the appropriate Tenders Committee for consideration and approval. 7. Evaluation Committee On conclusion of Technical Evaluation Word Excel Analyse commercial bids and present the report as per Commercial Evaluation Template to the 79 NNPC Limited SCM Processes and Procedures 8.2 Evaluate Tenders and Select Supplier Procedures appropriate Tenders Committee for consideration and approval. 8. Tenders Committee On conclusion of Commercial Evaluation Review Evaluation Reports and approve award of procurement. Note: As approved by the Tenders Committee, an extract of the award be prepared by Tenders Committee Secretariat and forward to the User Department for implementation. 9. Supply Chain Team Provides feedback to the unsuccessful tenderers (Appendix 4). 10. SCM On receipts of tenderer’s complaints/ request for clarification prior to the submission of bid, the following procedure shall apply: (N-5/6) Email Email Review of tenderer’s complaints/ request and invite all prospective bidders for a general clarification meeting or send out a broadcast email to all bidders. Note: Where necessary, the relevant User Department shall be consulted. 11. SCM After submission of bids from tenderers Email Prepare a draft response and forward to Legal for review and validation. 12. Legal On receipt of draft response from SCM Email Review, validate and return to SCM. 13. SCM On receipt of validated letter from Legal Send response(s) to the bidder(s). Letter/ Email End 80 NNPC Limited SCM Processes and Procedures 8.3 Evaluate Tenders and Select Supplier Input & Output Documents S/N Document Description Type 1. Tender document Input/Output As required SCM/ User SCM (N-2) Department 2. Report of Tender Evaluation Committee Output As required SCM (N-3) SCM (N-2) 3. Extract Output As required Tenders Committee User Department 4. Response to tenderers' complaints Output As required SCM/Legal Tenderer Department 8.4 S/N Frequency Evaluate Tenders and Select Supplier Key Performance Indicators Performance Basis of Measurement Measure Source Recipient Timeframe Target 1. Timeliness of the Tender Evaluation Latest date for the evaluation of tenders. As required Within 2 weeks of tender closing 2. Compliance with evaluation criteria on RFP/ ITT Reduced or no Tenders’ complaints. As required 100% 81 NNPC Limited SCM Processes and Procedures 82