PART VI:
Criteria for Awarding Contracts
 

Article 28: Substantially Responsive Bids

     During bid evaluation the procuring entity or project owner shall first carry out the preliminary examination of the bids including the legality of the bid, eligibility, completeness, and responsiveness to the commercial and technical requirements of the tender documents. Subsequently, bids that are determined to be substantially responsive, are subject to a detailed evaluation including correction of arithmetical errors, adjustment for discounts, if any, conversion to common currency for evaluation, additions for missing minor omissions, and adjustment for the quantifiable evaluation criteria if specified in the tender documents. The bid evaluation and contract award should be on the basis of the criteria set out in the tender documents.

(1) For the purposes of these Implementing Rules and Regulations, “substantially responsive bids” shall mean bids that conform to the terms, conditions and specifications of the tender documents without material deviation that:

(a) Affects the scope, quality or performance of the work, supply of goods or services.

(b) Are inconsistent with the tender documents, the procuring entity or project owner rights or the bidder's obligations under the contract; or

(c) Affects unfairly the competitive position of other bidders presenting responsive bids.

(2) In particular, bids are responsive where:

(a) The bidders fulfill the requirements of Article 17;

(b) The bids comply with the terms and conditions set out in the tender documents;

(c) The bids are responsive to the technical specifications detailed in the tender documents.
 

Article 29: Award Criteria

(1) The procuring entity or project owner shall award a contract to the lowest evaluated responsive bid which meets the qualification criteria set out in the tender documents.

(2) Bid Prices: The manner in which the bid price is to be formulated and expressed, including a statement as to whether the price is to cover elements other than the cost of the goods, construction or services themselves, such as any applicable transportation and insurance charges, duties, taxes and other levies must be made explicit in the tender documents.

a) For locally available, manufactured or assembled goods, including those previously imported, the bidder must offer EXW (ex works, ex factory, or off-the-shelf). The EXW price shall include all duties, levies, sales, and other taxes already paid or payable.

b) For all goods offered from abroad, bids for goods shall be invited on the basis of CIF (port of destination), or CIP (place of destination) or other relevant Incoterms. The bidders must offer the net price inclusive of the insurance, transportation costs and duties, taxes and other levies. These costs must be shown separately for donor financed contracts as requested in the tender documents.

c) Bidders for works contracts shall be required to quote unit prices or lump sum prices for the performance of the works, and such prices shall include all duties, taxes, and other levies.

d) In the case of turnkey contracts, the bidder shall be required to quote the price of the installed plant at site, including all costs for supply of equipment, marine and local transportation and insurance, installation, and commissioning, as well as associated works and all other services included in the scope of contract such as design, maintenance, and operation. Unless otherwise specified in the bidding documents, the turnkey price shall include all duties, taxes, and other levies.

(3) In addition to price, the evaluation criteria may include the following which shall be quantified in monetary terms in the tender documents. Evaluation criteria that are not quantifiable in monetary terms shall be expressed in the terms of pass-fail criteria.

(a) Period for completion of works and services and/or delivery of goods;

(b) Life-cycle operating costs;

(c) After-sale services and technical assistance;

(d) Supply of spare parts related to the use of goods;

(e) Payment terms

     Any additional criteria must be objective and non-discriminatory. The procuring entity or project owner shall state in the tender documents all the criteria it intends to apply to the award. The price element contained in the bids should be denominated in the currency specified in the bid documents. When such prices are denominated in other currencies, for the purpose of evaluating the bids, the prices shall be converted into the currency specified in the tender documents. The conversion of the prices shall be at the date of the bid opening using the exchange rate prevailing as posted by the Bank of Lao PDR. Where the price of a bid appears substantially lower/higher than the pre-bid cost estimate, the tender committee may request the bidder to provide a breakdown and justification of the bid price. However, before rejecting a bid, the tender committee must request, in writing, from the bidder information such details it deems necessary. The tender committee may examine bids based on objective reasons, such as the economy of the construction method or the method of delivery of goods or services, or the technical solution chosen, or exceptional favorable conditions available to the bidder for the execution of the contract or the originality of the work, product or services proposed by the bidder.