Guideline Subject: Application of Evaluation Methods

In accordance with Regulation 79 (1) of the Local Governments (Public Procurement and
Disposal of Public Assets) Regulations 2006, the following guidance is provided on procedures
to be followed by Local Governments in the application of Evaluation methods.
Evaluation is the process by which the best evaluated bidder is selected for award from among
all the bids received.
The evaluation shall be conducted by an Evaluation Committee.
All evaluations consist of three stages:
1. Preliminary Examination; this is a brief assessment of whether each bidder is eligible
and administratively compliant to the basic instructions and requirements of the
solicitation document. Eligibility and compliance shall be determined on a pass or fail
basis and a bid which is not eligible or substantially compliant shall be rejected. At this
stage, unsuitable bidders such as those who are not registered companies or do not avail
bid security where necessary are eliminated.
2. Technical (Detailed) Evaluation; this is conducted only on a bid that is determined to be
eligible and compliant during the preliminary examination. This stage determines
whether bids are substantially responsive to the commercial and technical requirements
of the solicitation documents using a pass or fail system or a merit point system e.g.
assessing technical quality of the bid by comparing it with the specifications in the
solicitation document.
3. Financial Comparison; this shall be conducted to examine and compare financial bids
and determine the best evaluated bid price. The solicitation document shall state which
costs shall be taken into account in the financial comparison and which costs shall be
excluded.
A) Evaluation Procedure:
 Membership of the Evaluation Committee shall be recommended by the Procurement and
Disposal Unit and approved by the Contracts Committee using LG PP Form 11. The
number of members of the Evaluation Committee shall depend on the value and
complexity of the procurement requirement but shall in all cases be a minimum of three
(3).
 A member of the Contracts Committee shall not be a member of the Evaluation
Committee.
 A member of the Procurement and Disposal Unit or a User department may be a member
of an Evaluation Committee, where he or she has appropriate skills or experience.
 The Evaluation Committee shall report to the Contracts Committee through the
Procurement and Disposal Unit.
B) Evaluation Methods:
 The evaluation methodology should be stated in the bid document. The Evaluation
Committee shall use one of the following evaluation methods in accordance with Regulation
79(1):

1. Quality and Cost Based Selection (QCBS);

 This method shall be used for the evaluation of consultancy services where the terms
of reference are well defined.
 This method may also be used for evaluation of works
 This method considers both the technical quality and the cost of each bid.
 The bid submission method shall be the one-stage two envelope method
 Technical bids are evaluated first without access to financial bids.
 The relative weighting of technical and cost elements are decided in advance and are
stated in the bid document. The relative weights to be given to the technical and
financial components of the evaluation are chosen taking into account the nature of
the assignment, the complexity and the relative importance of the technical aspect of
the bid.
 A preliminary examination shall be conducted to determine whether a bidder is
eligible and administratively compliant on a pass/fail basis.
 A technical (detailed) evaluation shall be conducted on only a bid which is
determined to be eligible and compliant. A detailed merit point evaluation of each bid
shall initially be conducted by each member of the committee and the members shall
collect and compare the scores of each evaluator.
 The scores of each evaluator shall be totalled and divided by the number of evaluators
to obtain an average score by the evaluation committee for each bid. The average
score shall be the total technical score for the bid.
 The total technical score of each bid shall be compared to the minimum qualifying
technical mark stated in the solicitation document; a bid which is less than the
minimum qualifying mark shall be rejected and eliminated from further evaluation.
 The evaluation committee shall prepare a technical evaluation report which shall be
approved by the Contracts Committee prior to opening of the financial bid.
 A bidder who has reached the minimum qualifying technical mark shall be notified of
the date and time set for the opening of financial bids. The opening dated shall not be
sooner than two weeks after the notification date.
 The bid with the highest technical score shall be given a financial score of 100; other
bids shall be given a financial score that is inversely proportional to the lowest
evaluated price.
 The evaluation committee shall prepare a financial evaluation report which shall be
approved by the Contracts Committee.
  The total score is obtained by adding the weighted technical and financial scores
together.
 A bidder obtaining the highest total score shall be recommended to the Contracts
Committee for award of contract subject to any post-qualification or negotiations that
may be required.
2. Quality Based Selection (QBS);
 This method may be used for the evaluation of consultancy services
 This evaluation method focuses on quality as the primary factor.
 The bid submission method shall be the one stage- two envelope method
 The technical bid is evaluated without access to a financial bid.
 The solicitation document shall state the technical evaluation criteria and their
maximum scores
 A preliminary examination shall be conducted to determine whether a bidder is
eligible and administratively compliant. This shall be conducted on a pass/fail basis.
 A detailed evaluation shall be conducted on only a bid which is determined to be
eligible and compliant. A detailed merit point evaluation of each bid shall initially be
conducted by each member of the committee and the members shall collect and
compare the scores of each evaluator.
 The scores of each evaluator shall be totalled and divided by the number of evaluators
to obtain an average score by the evaluation committee for each bid. The average
score shall be the total technical score for the bid.
 The total technical score of each bid shall be compared to the minimum qualifying
technical mark stated in the solicitation document; a bid which is less than the
minimum qualifying mark shall be rejected and eliminated from further evaluation.
 The evaluation committee shall prepare a technical evaluation report using LG PP
Form 12 which shall include a recommendation to open the financial bid of the bidder
who obtained the highest technical score.
 The technical evaluation report shall be approved by the Contracts Committee prior to
opening of the financial bid.
 Financial comparison is undertaken only for the best technical bid.
 The bid with the highest technical score shall be the best evaluated bid and shall be
recommended for award of contract, subject to negotiation by the procuring and
disposing entity.
3. Fixed Budget Selection:
 This method may be used for the evaluation of consultancy services
 This method recommends the bidder with the best technical bid which is within the
procuring and disposing entity’s budget.
  The bid submission method shall be the one stage- two envelope method.
 The technical bid is evaluated without access to the financial bids.
 The solicitation document shall state the technical evaluation criteria and the
maximum score, the minimum qualifying mark below which a bid is rejected and the
available budget
 For this method the procuring and disposing entity the Statement of Requirements
shall be well prepared to make sure that the budget is sufficient for a bidder to perform
the expected tasks
 A preliminary examination shall be conducted to determine whether a bidder is
eligible and administratively compliant. This shall be conducted on a pass/fail basis.
 A technical (detailed) evaluation shall be conducted on only a bid which is determined
to be eligible and compliant. A detailed merit point evaluation of each bid shall
initially be conducted by each member of the committee and the members shall collect
and compare the scores of each evaluator
 The scores of each evaluator shall be totalled and divided by the number of evaluators
to obtain an average score by the evaluation committee for each bid. The average
score shall be the total technical score for the bid.
 The total technical score of each bid shall be compared to the minimum qualifying
technical mark stated in the solicitation document; a bid which is less than the
minimum qualifying mark shall be rejected and eliminated from further evaluation.
 The evaluation committee shall prepare a technical evaluation report using PP Form
which shall include a recommendation to open the financial bid of those bidders who
reached the minimum qualifying technical score.
 The technical evaluation report shall be approved by the Contracts Committee prior to
opening of the financial bid.
 Bidders who have reached the minimum qualifying technical mark shall be notified of
the date and time set for the opening of financial bids.
 A financial comparison shall be conducted and a bid which exceeds the budget
indicated in the solicitation document shall be rejected. A bid which is within the
budget shall be ranked according to its technical score, and the bidder who has
submitted the highest ranked technical bid of those within the budget shall be
recommended for award of contract.
4. Least Cost Selection:
 This method may be used for consultancy services
 This method recommends the lowest priced bid which meets all the requirements of
the procuring and disposing entity.
 The bid submission method shall be the one stage- two envelope method
 The technical bid is evaluated without access to the financial bids
  The solicitation document shall state the technical evaluation criteria and the
maximum scores, the minimum qualifying mark below which a bid is rejected and the
available budget
 A preliminary examination shall be conducted to determine whether a bidder is
eligible and administratively compliant. This shall be conducted on a pass/fail basis.
A bid which is not eligible or non compliant shall be rejected and eliminated from
further evaluation
 A technical (detailed) evaluation shall be conducted on only a bid which is
determined to be eligible and compliant. A detailed merit point evaluation of each bid
shall initially be conducted by each member of the committee and the members shall
collect and compare the scores of each evaluator.
 The scores of each evaluator shall be totalled and divided by the number of evaluators
to obtain an average score by the evaluation committee for each bid. The average
score shall be the total technical score for the bid.
 The total technical score of each bid shall be compared to the minimum qualifying
technical mark stated in the solicitation document; a bid which is less than the
minimum qualifying mark shall be rejected and eliminated from further evaluation
 The evaluation committee shall prepare a technical evaluation report using LG PP
Form 12 which shall include a recommendation to open the financial bid of those
bidders who reached the minimum qualifying technical score.
 Bidders who have reached the minimum qualifying technical mark shall be notified of
the date and time set for the opening of financial bids.
 The technical evaluation report shall be approved by the Contracts Committee prior to
opening of the financial bid.
 A financial comparison shall be conducted and a bid shall be ranked according to
their total bid price. A bidder who has submitted the lowest priced bid which meets
the minimum qualifying technical mark shall be recommended for award.
 The evaluation committee shall prepare a financial evaluation report with a
recommendation to award the contract to the bidder with the lowest priced bid which
is substantially responsive to the commercial and technical requirements of the
procuring and disposing entity.
5. Technical Compliance Selection:
 This method shall be used for the evaluation of supplies, works and non-consultancy
services.
 This is the method that recommends the lowest priced bid which is substantially
responsive to the commercial and technical requirements of the procuring and
disposing entity.
 The bid submission method shall be the one stage-single envelope method
  The bids are first subjected to a preliminary examination, then Technical evaluation
and finally financial evaluation.
 A preliminary examination shall be conducted to determine whether a bidder is
eligible and administratively compliant. This shall be conducted on a pass/fail basis
only. A bid which is not eligible or non compliant shall be rejected and eliminated
from further evaluation.
 A technical (detailed) evaluation shall be conducted on only a bid which is
determined to be eligible and compliant. The detailed evaluation shall be conducted
on a pass or fail basis; a non responsive bid shall be rejected and eliminated from
further evaluation.
 A financial comparison shall be conducted only on a bid which is determined to be
responsive during detailed evaluation and a bid shall be ranked according to its total
bid price. A bidder who has submitted the lowest priced bid which is qualified,
compliant and responsive shall be recommended for award of contract.
 The evaluation committee shall prepare an evaluation report using PP Form with a
recommendation to award the contract to the bidder with the lowest bid price which is
qualified, responsive and technically compliant.
 The Evaluation Report must be signed by all members of the evaluation committee
and then forwarded to the Contracts Committee for approval.
Post- Qualification
A post-qualification exercise may be undertaken to determine whether the best evaluated
bidder has the capability and capacity (resources) to effectively carry out the contract.
The criteria for post-qualification should be limited to what is considered to be necessary
for performance of the intended contract and should be unduly restrictive.
Summary:
The final Evaluation Report shall contain recommendations on:
 The best-evaluated bidder and their evaluated price;
 Whether the best evaluated bidder is subject to post-qualification;
 Whether negotiations should be held with the best evaluated bidder.

Signed:
…………………………………………. ………………………………………….
Chairman of the Board of Directors Executive Director of the Authority

Public Procurement and Disposal of Public Assets Authority