Session 3'4 Bid Evaluation

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Session 3.4 Bid Evaluation
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Outline

• Evaluation can include relevant environmental and
  social criteria
• Criteria and weightings developed in advance
• Evaluation team
• Appropriate weightings
• Life cycle approach
• To deliver sustainable outcomes

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Bid Evaluation
Are consistent with the fundamental principles of
transparency, equal treatment and non
discrimination
Social/Environmental award criteria can be used
provided they
Are relevant to the subject of the contract
Are consistent with criteria allowed by
international regulatory framework
Help identify the bid that represents value for
money for UN
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Bid Evaluation

• Assemble a bid evaluation team in line with UN
  procurement policy and practice
• Use pre-established criteria and methods
• Clear links to specification
• Ensures transparency and consistency with UN
  practice
• See UN Procurement Practitioners Handbook

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Bid Evaluation

• General principles
• At this stage of the process procuring entities
  evaluate the quality of the tenders and compare
  prices on the basis of
• Best value for money (BVM)
• BVM is the optimum combination of
  whole-life-costs and quality to meet the users
  requirements
• BVM allows the use of environmental criteria
• The extent of use of social criteria depends on
  the procurement regime

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Award Criteria

• Award criteria must be
• Relevant to the subject of the contract
• should relate to the intrinsic qualities of each
  bid and not to secondary issues (i.e. local
  development)
• should relate to the technical specifications
• Do not confer unrestricted freedom of choice on
  the Procuring Entity
• should be clear, product-related and measurable

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Award Criteria

• Award criteria must
• Be advertised previously
• in contract notices/tender documents
• should be listed in descending order and relative
  weighting should be given
• Respect UN Principles
• principles of non-discrimination/transparency/equa
  l-treatment should be respected
• 5. Be distinct from selection criteria
• The criteria used for selection and award should
  be distinct

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Evaluation criteria

• Consistent with good procurement practice
• Categories of criteria
• Formal
• Technical
• Financial
• Sustainability criteria include environmental and
  social aspects
• Compliance/non-compliance or weighted scoring
  system can be used
• e.g. minimum environmental standards or levels of
  performance

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Weighted scoring method

• When using the weighted scoring method, the award
  of the contract should be made to the supplier
  whose offer has been evaluated and determined as
• a) responsive / compliant / acceptable and
• b) having received the highest score out of a
  pre-determined set of weighted technical and
  financial criteria specific to the solicitation

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Weighted scoring method

• This method may be used for more complex
  procurement where
• Evaluation criteria cannot easily be quantified
• Different aspects of value for money (e.g. price
  and quality) need to be considered and balanced
• Different types of scales need to be used for the
  various factors

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Use of weightings

• Depends on organisational policy
• Should reflect outcomes to be achieved
• Procurers should be guided by matrix position
  e.g.
• Critical/Secure
• Drive/Acquisition
• Weightings must always be justified

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Examples of Award Criteria

• The Life Cycle Costing Approach-three stages
• Purchase and all associated costs
• Purchase
• Delivery
• Installation
• Commissioning, etc.
• Operating costs
• Energy
• Spare Parts
• Maintenance
• End-of-life costs
• Decommissioning
• Removal

cost
End-of-life costs
Operating costs
Purchase associated cost
time
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Use of Life-Cycle Costing to promote
Environmental Objectives

• Savings on use of water, energy and fossil fuels
• Their costs are easy to calculate and have clear
  economical aspects
• Savings on disposal costs
• Can range from the cost of physical removal to
  paying for secure disposal
• If not taken into considerations a bargain can
  turn in an expensive purchase

Ex Planning the Disposal Phase - the building
sector
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Summary

• Criteria and weightings developed in advance
• Evaluation can include relevant environmental and
  social criteria
• Use of evaluation team
• Use of life cycle approach
• Focus on delivery of sustainable outcomes
  economic, environmental and social