Package bidding

Engineering contractor selection bid package, bidding, evaluation, and award. 

Lawrence M Ausubel and Paul R Milgrom. Ascending auctions with package bidding. Frontiers of Theoretical Economics, 1 1-42,2002. 

In a combinatorial auction, bidders can submit package bids. Please see Chapters 7 and 5 for further discussion of combinatorial auctions. 

A company selecting a toller will be well served if they ensure candidates received a clear set of proposal requirements. When qualified finalists are given a project scope based upon an accurate technology package, they can produce a bid that is easily evaluated. 

The vendor order can be established on a bid-factor basis. To this list can be added pluses or minuses based on experience with the vendor, In some companies, a spare parts package cost is obtained with the bids... 

Health and safety issues and worker protection should be integrated into project specifications, bid packages, contracts, and other appro-... 

One way to obtain a reasonable assured cost estimate is to submit the package of information that has been accumulated to contractors for a firm construction bid. 

Sometimes a set of items such as all the process control instruments or all piping is lumped together, and a number of suppliers are asked to bid on this package. At other times the company may have a contract with, say, a pump manufacturer that guarantees the company will receive a specified discount on the cost of all pumps, if it purchases more than a certain number per year. Then the pumps would be purchased from this vendor. There are even instances where the company may forbid the purchase of items from a given vendor. For instance, one company found that the pumps it purchased from a particular manufacturer cost approximately 5 times as much to maintain as the other pumps it had performing similar tasks. The company refused to buy any more pumps from that manufacturer. 

The level of qualifications for personnel expected should be specified in the bid package or purchase order. The facility should require the service company to provide evidence that the personnel performing inspections, testing, and maintenance meet the qualifications. Safe work procedures should be extended to all service company personnel. 

Preparation of Bid Package Bidders Selection Preparation of Bids ... 

The elaborate bid package and longer bidding period required could offset the cost and schedule advantage. 

A thorough bid package insures a meaningful bid. The bid packages required for lump sum EPC contracts for large facilities are elaborate and voluminous and require a lot of attention to details. They must include every detail that could impact the cost. 

On the other hand, the bid package for a reimbursable contract, no matter how large, could be quite simple but still requires attention to all details. If the scope is not accurate and the instructions precise and clear, the bids will not be comparable and their evaluation would be, at best, cumbersome. 

A bid package must address commercial terms as well as technical details. The preparation of the commercial selection is the responsibility of the Contracts Engineer. The Project Manager assembles all the technical details and is responsible not only for the technical section but for the overall completeness of the package. After all, it is the Project Manager who has to live with the contractor and make it perform. 

Note A bid package for a lump sum contract must also include complete P ID s, equipment and piping arrangement drawings and a complete set of project specifications... 

All answers must be documented in a formal manner with copy to all bidders unless they refer to a particular bidder s proprietary know-how or alternate proposal to execute the project in a uniquely different manner. These unique alternatives could be welcomed, and even encouraged, but should never be considered unless the bidder responds first to the bid package. 

Another important consideration in the commercial evaluation is the bidder s reaction to the Owner s pro forma contract included in the bid package. A strongly negative reaction could be an insurmountable obstacle, especially if it pertains to ingrained management principles. However, this would be an extreme case and in real life reasonable people will negotiate a mutually satisfactory agreement. 

The bid package must provide a clear understanding of the scope of work, execution requirements and commercial conditions that will permit the bidders to... 

The commercial section of the bid package is the responsibility of the Contracts Engineer and must address the contract, invoicing procedures, handling of extras, etc. 

Once the bidders have been qualified and accepted by the plant, the bid packages are given to them and a pre-bid meeting is held with all bidders, preferably about one week later. The pre-bid meeting is co-hosted by the Contracts Engineer and the Project Manager. The objective is to ... 

Preparation of purchasing packages for competitive bidding of construction work. 

Problem Inconsistent bids due to different understanding of bid package. 

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