2.8 Analysis of alternative tenders
- 2 Tendering procedures - Physical works
- 2.1 Tendering authority procedures
- 2.2 Invitiation to tender
- 2.3 Expedited tender procedures
- 2.4 Tender evaluation specification
- 2.5 Tender evaluation process
- 2.6 Tender evaluation - lowest price conforming tender method
- 2.7 Tender evaluation - weighted attribute method
- 2.8 Analysis of alternative tenders
- 2.9 Tender negotiation
- 2.10 Notification procedures
- 2.11 Conformity with RFT
- 2.12 Use of particular inputs.
- 2.13 Other guidelines
2.8 Analysis of alternative tenders
2.8.1
Only alternative tenders which are within the scope of the RFT, and which meet the tendering authority's requirements, shall be considered. Tenders varying the duration of a contract shall only be considered where the RFT specified that such variations were acceptable and advised how they would be evaluated. The duration of period contracts may not be varied (see Section 2.5.4 of this Manual).
2.8.2
When the Lowest Price Conforming Tender Method is being used, alternative tenders shall be evaluated in two stages as follows, after the evaluation of non-alternative tenders has been completed:
- The first stage shall consist of determining tender acceptability when judged on technical competence and assessed against the non-price attributes. Each attribute shall be scored on a pass/fail basis. Any attribute which scores a fail will exclude that tender from further consideration.
- The second stage shall consist of assessing the difference in the present value of the end result offered by the preferred (lowest priced) non-alternative tender and the alternative tender. The alternative tender price shall then be adjusted by this amount.
2.8.3
When the Weighted Attribute Method is being used, alternative tenders shall be evaluated as follows, after the evaluation of all non-alternative tenders has been completed:
- The first stage shall consist of determining tender acceptability when judged on technical competence and assessed against the non-price attributes. Each non-price attribute shall be graded on a points basis, from 0 (completely inadequate) to 100 (excellent). Any tender that scores 35 or less on any attribute shall be excluded from further consideration.
- The second stage shall consist of assessing the difference in the present value of the end result offered by the preferred non-alternative tender (that which scored the highest overall index) and the alternative tender. The alternative tender price shall then be adjusted by this amount.
- The adjusted tender price shall be converted to a grade using the formula in Section 2.7.1(1) of this Manual, and the same median conforming tender price that was used when calculating a price grade for non-alternative tenders. (Note: the median is not revised to take account of alternative tender prices.)
- The fourth stage shall consist of multiplying the weight of each attribute as previously specified in the RFT by the grade of that same attribute and then dividing by 100 to give an index for each attribute. The indices for each alternative tender shall then be summed to give an overall index for each tender.
2.8.4
Alternative tenders shall then be compared with the preferred non-alternative tender to determine the top tender. If the preferred non-alternative tender remains the top tender following the evaluation of alternative tenders, tendering authorities shall only accept this tender. Tendering authorities shall not be bound to accept any alternative tender.
