6. Contract Award
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6. Contract Award Start Comparison
a. Are there any rules on the award of contracts?

Yes. Award criteria for consultancy services bidding packages:[1]

  • An institutional consultancy contractor may be considered to be awarded a contract if the contractor possesses:
    • A valid bid dossier or dossier of proposals;
    • Technical proposals satisfying requirements of the bid solicitor;
    • The lowest bid, subsequent to correction, adjustment of deviation, and minus of discounts (if any), for the lowest bid method; or the highest technical point, for the fixed bid method and technique-based method; or the highest general point, for the method of combination of techniques and bids; and
    • The proposed winning bid that does not exceed the approved bidding package price. In case the cost estimate of the approved bidding package is lower or higher than the approved bidding package price, such cost estimate may replace the bidding package price as the ground for consideration and approval of the bid winner.
  • An individual consultancy contractor may be considered to be awarded contract if the contractor possesses:
    • The best resume and technical proposal (if any) and satisfies requirements of the term of reference;
    • The proposed winning bid that does not exceed the approved bidding package price. In case the cost estimate of the approved bidding package is lower or higher than the approved bidding package price, such cost estimate may replace the bidding package price as the ground for consideration and approval of the bid winner.
  • Award criteria for non-consultancy services, good procurement or construction and installation bids include:[2]
    • A valid bid dossier or dossier of proposals;
    • The capacity and experience as required;
    • Deficient deviation that does not exceed 10% of the contractor's bid;
    • The lowest bid, subsequent to correction, adjustment of deviation, and minus of discounts (if any), for the lowest bid method; the lowest evaluation bid, for the evaluation bid method; or the highest general point, for the method of combination of techniques and bids; and
    • The proposed winning bid that does not exceed the approved bidding package price. In case the cost estimate of the approved bidding package is lower or higher than the approved bidding package price, such cost estimate may replace the bidding package price as the ground for consideration and approval of the bid winner.

Award of contracts is the consequence of contract negotiation step and must comply with the negotiations' basis, principles and contents. The first ranked contractor shall be invited to negotiate contract.[3] The invited contractors who refuse to negotiate contracts will not be reimbursed with their bid security.

Contract negotiation must be based on:[4]

  • the bid evaluation report of the bid dossier;
  • the bid dossier and any contractors' documents clarifying the bid dossier; and
  • the bid invitation document.

The contract negotiation principle are as follows:[5]

  • the contents that have already proposed by contractors and matching the requirements of bidding shall not be negotiated;
  • the negotiation of a contract must not change the unit price offered by the contractor after error correction and deviation adjustment minus the value of discounts (if any). During the evaluation of the bid dossier and contract negotiation, if there is a disparity of the bidding volume stated in the bill of quantities which smaller than stated in the design dossier, the bid solicitor shall request the contractor to supplement the deficient volume based on the offered unit price; if there is no unit price in the bid dossier, the bid solicitor shall report to the project owner for consideration and decision to apply the unit price stated in the approved cost estimate for the deficient volume or the unit price of another contractor that has passed the technical evaluation if this unit price is lower than that approved in the bidding package's cost estimate; and
  • the negotiation on deficient deviation shall base on the lowest offered unit price among those in other bid dossiers which have passed the technical evaluation.[6]

Contents subject to negotiation include:[7]

  • contents that are unclear, unspecified or differed between the bidding dossier and bid dossier and, that may lead to potential disputes;
  • errors in the bid dossier detected and proposed by the contractor, including changes or alternative plans proposed by the contractor if the bidding dossier allows the contractor to offer alternative plans;
  • human resources;
  • new matters arising from the bidder selection process; and
  • other matters that may deem necessary.

 

[1] Article 42, Bidding Law.

[2] Article 43, Bidding Law.

[3] Article 19.1, Decree No. 63.

[4] Article 19.2, Decree No. 63.

[5] Article 19.3, Decree No. 63.

[6] Article 19.3, Decree No. 63.

[7] Article 19.4, Decree No. 63.

b. Are there any limitations regarding the offered bid price?

Under the Bidding Law, when a bid dossier or dossier of proposals contains abnormal low unit prices, affecting the bidding package quality, the bid solicitor may request contractors to give written explanations and clarifications about the feasibility of these abnormal unit prices. If the contractor's explanations are unclear and unpersuasive, these offered unit prices shall not be accepted and concurrently be considered deviation that shall be adjusted under regulations like deficient offers of bid dossiers or dossiers of proposals compared with the requirement stated in the Law.[1]

In addition, when the proposed winning bid is below 50% of the approved bidding package price, an inter-branch appraisal team may be formed to request the contractor to clarify elements constituting the bid offering costs and considers relevant evidence such as: (i) economic elements related to construction methods, manufacturing or service provision process; (ii) applied economic solutions or the contractor's special advantages that create price advantages; and (iii) the origin of goods, services and personnel that are supplied for the bidding package, which must ensure the compliance with regulations. If the above conditions are satisfied, the bid dossier or dossier of proposal of the contractor shall still be approved to win the bid.[2]

 

[1] Article 117.6, Decree No. 63.

[2] Article 117.9, Decree No. 63.

c. Are there any rules on alternative bids?

Yes. If the bidding dossier allows the contractor to offer alternative plans when there is deviation detected and proposed by the contractor in the bid dossiers, then the contractor are allowed to offer an alternative bids. During the contract negotiation process, such deviations will be further negotiated between the bid solicitor and the selected contractor.[1]

 

[1] Article 19.4(b), Decree No. 63.