Contract monitoring & evaluation

NAIROBI CBD CAMPUS
JOMO KENYATTA UNIVERSITY OF AGRICULTURE
AND TECHNOLOGY1

CONTRACT MONITORING AND EVALUATION
1) Tender format
2) Tender Evaluation
3) Procurement Schedule
4) Cost estimate
2
LECTURE 11

I.) TENDER FORMAT
The Tender Document may consist of
 Tendering Procedures
 Requirements
 Contract forms
3

PART 1 : Tendering Procedures
 Instruction to Tenderers
 Tender Data Sheet
 Evaluation and Qualification Criteria
 Tender Forms
 Eligible / potential participants
4

PART 2 : Requirements
 Technical requirements/specifications
 Scope of statement of works
 Definition of terms
 Cost estimates
 Define deliverables
 Delivery schedule
 Timelines
5

PART 3: Contract forms
 General Conditions of Contract
 Particular Conditions of Contract
 Contract Forms
6

General Conditions of Contract
Under general conditions of contract the following aspects
are covered
 Definition of terms
 Application
 Patent rights
 Performance security
7

Continued…….
 Payment prices/ contract sum
 Termination of contract
 Resolution of disputes
 Governing language
 Applicable law
 Force majeure
 Notices/intent to terminate a tender
8

Particular Conditions of Contract
 These are specific to a particular tender/procurement
 In general specific conditions are those which are
unique to that particular tender and may not be
applicable to another tender.
 Every tender has its own specific conditions.
9

Contract Forms
These are documents which are critical in formation of a
contract agreement.
 Form of tender
 Price schedule form
 Contract form
 Confidential business questionnaire
 Tenders security form
 Performance security form
10

Other components are
 Completed schedules
 Tender security,
 At the tenderer’s option, alternative proposals, if
permissible,
 Written confirmation authorizing the signatory of the
tender to commit the tenderer,
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Continued………
 Documentary evidence establishing the eligibility of the
goods and services offered by the tenderer,
 Documentary evidence establishing the tenderer’s
qualifications in accordance with the requirements,
evaluation and qualification criteria, using the relevant
forms furnished
 Documentary evidence establishing the conformity of
the technical proposal offered by the tenderer with the
tender document, using the relevant forms
 Any other document required
12

II) TENDER EVALUATIONS
 Assessments that identify the tender that best meets
the client’s needs and offers the best value for money is
deemed to be more beneficial.
 This is sometimes referred to as the ‘most economically
advantageous tender’ (MEAT) as opposed to the lowest-
price approach.
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Continued…………..
Typically, tender evaluations might consider some of the
following
 Price.
 Relevant experience.
 Understanding of the requirements.
 Past performance.
 Technical skills.
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Continued…………..
 Resource availability.
 Management skills and systems.
 Proposed methodology (this might
include mobilizations plans, design proposals, and non-
compliant proposals if these have been allowed).
 Compliance with the requirements set out in
the invitation to tender
15

III.) PROCUREMENT SCHEDULE
 Contracting officers should develop a procurement
schedule for the entire procurement cycle in
consultation with the client
16

Continued……..
The following, as applicable, must be taken into
consideration:
 Review and analysis of the client's requirements;
 Time for request for information process;
 The procurement review committee;
 Assessment/approval for the use of a fairness monitor;
17

Continued……..
 Approval of the procurement plan or the contract
planning and advance approval;
 Solicitation documents preparation;
 Translation requirements;
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Continued……..
 The time required for the preparation of and the receipt
of bids, offers or arrangements, including site visits and
bidders conference, if applicable;
 Bidding period, and extensions;
 Technical evaluation period;
 Financial evaluation;
 Benchmarking or other pre-award testing;
19

Continued……..
 Recommendations from legal and financial reviews;
 The evaluation process;
 The requirement for negotiation;
 The obtaining of security clearances;
 The level of approval required;
 Approval document preparation;
 Any other item that might contribute to the time to
complete the procurement.
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IV.) COST ESTIMATE
 A cost estimate is the approximation of the cost of a
program, project, or operation.
 The cost estimate is the product of the cost estimating
process.
 The cost estimate has a single total value and may have
identifiable component values.
21

Continued…….
 An estimator is the professional who prepares cost
estimates. There are different types of estimators, such
as building estimator, electrical estimator, chief
estimator e.tc.
 Other professional titles may also prepare estimates or
contribute to estimates, such as quantity surveyors, cost
engineers, etc.
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Continued……
Cost estimate types
 Various projects and operations have distinct types of
cost estimating, which vary in their composition and
preparation methods. Some of the major areas include:
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Continued……
 Construction cost
 Manufacturing cost
 Software development cost
 Aerospace mission cost
 Resource exploration cost
 Facility operation cost
 Facility maintenance and repair cost
 Facility rehabilitation and renewal cost
 Facility retirement cost
24

Continued……
Cost estimate classifications
Common cost estimate classifications historically used are
 Order of magnitude
 Detailed estimate
 Preliminary
 Definitive
25

Continued……
Life Cycle Costing
 Life cycle costing pertains to all four stages of the
procurement process, from planning and acquisition to
use and disposal. Currently, the Policy on Green
Procurement applies to all federal government
procurement activities.
26

Continued……
 The Policy requires that environmental performance
considerations be embedded into the procurement
decision-making process in the same manner as price,
performance, quality and availability.
27

Continued……
 Some cost elements related to environmental factors
that could be taken into account in assessing value for
money in the evaluation of bids, offers or arrangements
include:
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Continued……
 Operation costs, such as energy or water consumed by
the product over its life;
 Indirect costs (less energy efficient information
technology equipment will produce more heat causing
the building's air conditioning system to work harder,
and increase electricity costs);
29

Continued……
 Administrative costs, such as complying to workplace
hazardous materials information system (whmis);
 Investing up front to save costs later, such as specifying
higher levels of insulation where the extra expenditure
can be recovered from lower energy costs;
 Cost of disposal arrangements;
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Continued……
 The application of total life cycle costing has
traditionally meant the sum of the Product, Resource,
Operating, and Contingent (PROC) costs relating to
procurement.
31

Continued……
 Life cycle costing pertains to all four stages of the
procurement process, from planning and acquisition to
use and disposal. Currently, the Policy on Green
Procurement applies to all federal government
procurement activities.
 The Policy requires that environmental performance
considerations be embedded into the procurement
decision-making process in the same manner as price,
performance, quality and availability.
32

Continued……
 The PROC technique is essential for evaluating bids,
offers or arrangements. Value for money includes the
consideration of many factors such as cost,
performance, availability, quality and environmental
performance.
33

Contract monitoring & evaluation

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