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Post  Hussein Fri Jun 11, 2010 3:07 pm

RJM,
Thank you very much for the very explanatory answer of the topic above, I've really understood what that is all about.

Hussein.

Hussein

Posts : 2
Join date : 2010-06-09

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Post  RJM Thu Jun 10, 2010 11:47 pm

As per definition provided in R2(3)/97/2005, the "lowest evaluated cost" means the price offered by a supplier, service provider, or contractor that is found to be the lowest after consideration of all relevant factors and the calculation of any weighting for these factors, provided that such factors have been specified in the tender documents. It can be deduced from the definition that the “lowest evaluated bidder” is the bidder whose bid has been evaluated and found offer lowest cost as well as meet all terms and conditions stipulated in the bid documents.

Hussein, from the definition it is clear that not only price is considered in obtaining bidder with lowest cost but also terms and conditions stipulated in the bid documents. In evaluation process, basically there are three stages of evaluation [1] preliminary examination – result is the substantially responsive bids, [2] detailed evaluation – result is the lowest evaluated bidder and [3] post-qualification (due diligence) – successful bidder with capacity and capability to execute the contract. Therefore, stage 1 & 2 result to “lowest evaluated bidder” before subjected to post-qualification.

Regarding, Engineer’s Estimate vs Lowest Evaluated Cost visit topic “Predetermined Tender Value [Engineer’s Estimate]” under Tendering Processes, Procedures and related Guidelines in this forum. However, it worth to note that PEs are empowered to reject/annul all bids in case they are above the budget pursuant to S54(2)/PPA2004 and R20(2)/97/2005.
RJM
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Post  Hussein Wed Jun 09, 2010 4:32 pm

Hi every body,

I'm always confused with the statement "Lowest Evaluated Bidder" does this mean that the Bidder with lowest amount of money for the bid shall be selected after fulfilling other legal requirements? How about the Lowest in sum of money below Engineers' Estimate?. If there happen the Lowest evaluated bidder have higher amount than the Engineers' estimate will it be acceptable. Please educate me.

Hussein

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