DISCOUNT Vs BID SECURITY

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

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.

Eng. Nicholas

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.

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.