Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

What is the difference between two stage and single stage bidding?

user-image
Question added by Muhammad samran , Junior Officer/Project Coordinator , Pakistan Stell Mill
Date Posted: 2015/03/12
Muzammil Hashmat
by Muzammil Hashmat , Deputy Director (Civil) , Pakistan Water & Power Development Authority

Single Stage Bidding: TOR of the assignment is clear to the employer and bid are invited either through single envelop (Technical & Financial Simultaneously ) or two envelop (Technical & Financial Proposal collected at same time, initially Technical Proposal evaluated and Financial Proposal of technically qualified bidder opened ). bidder are evaluated as per criteria specified in tender documents/request for proposal.

Two Stage Bidding: Employer itself is not clear about TOR/Technical Specification of the work to be carried out. So, Bidding is carried out in two stages. In first stage,   Technical Proposal are called from bidder against basic idea/theme of the work to be carried out. Technical Proposal are required to state the method/specification that how the work with basic idea to be carried out exactly. Bidders submit Technical Proposals. On the basis of best available specification from these Technical Proposal, employer again prepare tender/request for proposal now with exact specification of the work and enter into second stage of bidding on two envelop basis ( Technical & Financial  separately).

 

 

Advantages of single stage one envolpe and disadvantages

Tadele Gezahegn
by Tadele Gezahegn , Procurement Specialist , WDC, World Bank Projects

Single-Stage: One-Envelope Bidding Procedure

Bidders submit bids in one envelope containing both the price proposal and the technical proposal.

The envelopes are opened in public at the date and time advised in the bidding document. The bids are evaluated.

Following approval, the contract is awarded to the bidder whose bid has been determined to be the lowest evaluated substantially responsive bid.

Single-Stage: Two-Envelope Bidding Procedure

Bidders submit two sealed envelopes simultaneously, one containing the technical proposal and the other the price proposal, enclosed together in an outer single envelope.

Initially, only the technical proposals are opened at the date and time advised in the bidding document. The price proposals remain sealed and are held in custody by the purchaser. The technical proposals are evaluated by the purchaser. No amendments or changes to the technical proposals are permitted. This allows the purchaser to evaluate the technical proposals without reference to price. Bids of bidders who do not conform to the specified requirements may be rejected

Following approval of the technical evaluation and at a date and time advised by the purchaser, the price proposals are opened in public. The price proposals are evaluated.

Following approval of the price evaluation, the contract is awarded to the bidder whose bid has been determined to be the lowest evaluated substantially responsive bid.

Two-Stage Bidding Procedure

Bidders first submit their technical proposals, in accordance with the specifications, but without prices.

The technical proposals are opened at the date and time advised in the bidding document. The technical proposals are evaluated and discussed with the bidders. Any deficiencies, extraneous provisions and unsatisfactory technical features are pointed out to the bidders whose comments are carefully evaluated. The bidders are allowed to revise or adjust their technical proposals to meet the requirements of the purchaser. The objective of the exercise is to ensure that all technical proposals conform to the same acceptable technical standard and meet the technical solution required by the purchaser.

In case of single-stage bidding: Prospective bidders shall submit simultaneously two envelopes, one containing eligibility requirements and the other containing bidding documents.

 

In case of single-stage bidding variation: Prospective bidders shall submit simultaneously three envelopes, one containing eligibility requirements and two containing bidding documents. Contents of each of the bid envelopes are specified in Annex F.

 

In case of two-stage bidding: Prospective bidders shall submit their eligibility envelopes first, during the first stage of the bidding. Eligible bidders who are interested to bid shall submit their bidding documents in two sealed envelopes during the second stage of the bidding.

 

 

Muhammad samran
by Muhammad samran , Junior Officer/Project Coordinator , Pakistan Stell Mill

single stage

Each bid shall comprise one single envelope containing, separately, financial proposal and technical proposal.

Initially, only the envelope marked “TECHNICAL PROPOSAL” shall be opened.

The procuring agency shall evaluate the technical proposal.

During the technical evaluation no amendments in the technical proposal shall be

permitted.

Then financial proposals of bids shall be opened.

The bid found to be the lowest evaluated bid shall be accepted.

 

 

Two stage bidding procedure

 

The bidders shall first submit a technical proposal without price.

The technical proposal shall be evaluated in accordance with the specified evaluation

criteria and may be discussed with the bidders regarding any deficiencies and unsatisfactory

technical features;

After such discussions, all the bidders shall be permitted to revise their respective

technical proposals to meet the requirements of the procuring agency.

 

 

Provided that such revisions, deletions, modifications or additions are communicated to all

the bidders equally at the time of invitation to submit final bids, and that sufficient time is

allowed to the bidders to prepare their revised bids.

 

The revised technical proposal along with the original financial proposal and

supplementary financial proposal shall be opened.

The procuring agency shall evaluate the whole proposal in accordance with the evaluation

criteria and the bid found to be the lowest evaluated bid shall be accepted.

Alex Al Yazouri
by Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

I agree with answer of Mr. Muzammil Hashmat. Thanks.

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.