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DISCOUNT Vs BID SECURITY

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Discount Vs Bid Security

Post  Nicholas FD on Tue May 10, 2011 5:35 am

Hello my fellow Forum Members,

Thank you RMJ for clarification and warm welcoming to this forum.

To the best of my knowledge and I stand to be corrected, the aim of Bid Security as I know is there mainly to safeguide that particular bid from premature withdrawal of the bib and is normally set as fixed amount or any acceptable guarantee by client and is stated in a standard bid documet [sect 3.4 of stantard ppra bid document]. The Bid Guarantee will remain in force up to and including 30 days after the expiry of the bid validity period. The client will immediately return the bid securities of unsuccessful bidders upon expiry of the bid validity period, but this can be delayed beyond that but be communicated.

If the bidder decides to withdraw his/her bid before stipulated time his/her bid security wont be returned.

In short, I think the is no discount of bid security.

With thanks

Eng. Nicholas FD

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Re: DISCOUNT Vs BID SECURITY

Post  RJM on Wed May 04, 2011 10:16 pm

Nicholas you most welcomed in this Knowledge Management Database.

Nicholas + Freddy + Gadiel - the cross-cutting issue here is whether the discounted bid security is acceptable or not? No one can deny the fact that the evaluation of bids is done in accordance with terms and conditions stipulated in the bidding documents. It is also a fact that the discount is acceptable in the evaluation process provided that it was properly recorded during bids opening ceremony.

Let us see what other forum members will say on this.


Last edited by RJM on Sun Oct 30, 2011 6:06 pm; edited 2 times in total

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Discount Vs Bid Security

Post  Nicholas FD on Tue May 03, 2011 9:04 pm

Hi every body to this forum,

Evaluation is normally done according to instructions given to the bid document, if at all that discount is written in that bid document it is clear that should be considered.

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DISCOUNT VS BID SECURITY

Post  freddy.mbeyella on Fri Apr 29, 2011 1:35 pm

It is a tricky question. But what I can say discounted bid security is acceptable provided that the total tender price quoted in the Tender Form, excludes any discounts offered.

To avoid such confusion it better to state bid security as fixed amount rather than percentage of bid sum.


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DISCOUNT Vs BID SECURITY

Post  GadielCM on Fri Dec 10, 2010 6:47 pm

RJM,
Your submission seemed to be challenge for practical experience in evaluation of bids often.

But to me, I would shed the way that in this scenario, there are two issues here to be discussed and agreed, but in short, the discounted bid security is unacceptable. why?

Because during evaluation proceedings, always we have about 3 to four stages of evaluation depends on the type of procurement subject matter.So the examination of submitted acceptable bid security is always observed under preliminary stage which have to conform or to be in the line for what requested in tender advert and in the bid document, while the discount submitted or offered by the bidder is observed in commercial computation in stage 3 or four after all other stages have been passed including technical observations.

In this short comment, I would say that the evaluation team should consider those issues separately and in different stages to reach the conclusion whether the submitted bid security and discount bid security is acceptable in that matter.

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DISCOUNT Vs BID SECURITY

Post  RJM on Wed Dec 08, 2010 8:33 pm

One bidder submitted bid with discount of 3% and was properly recorded in the opening ceremony. In fact this discount was indicated in the Form of Bid.

i.e. we offer to execute A- B road in accordance with the Conditions of Contract accompanying this tender for the Contract Price of Tshs. 10,000,000,000.00, Ten Billion [Tshs.]. We are offering discount of 3% of the contract price.

The bidding documents required bidders to submit bid security of 3% of the tender sum. The referred bidder submitted bid security of 3% of the discounted amount i.e. 97% x 10,000,000,000 x 3% = Tshs. 291,000,000. Without applying discount the bid security would have been i.e. 10,000,000,000 x 3% = 300,000,000.

Now there is disagreement within Evaluation Team whether discounted bid security is acceptable and whether the bid is responsive in the context of submitted bid security.

What is your take on this?

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