Overview of the Bidding Process

Types of Projects NHAI undertakes 
1. Build Operate and Transfer (BOT):
In order to promote involvement of private sector in construction and maintenance of National Highways, projects are offered on BOT basis. Concession period, which can range up to thirty years, road is transferred back to NHAI by the Concessionaire. Projects of Delhi - Gurgaon Section (Access Controlled 8/6 Lane) and Nellore - Tada etc. are being executed on BOT basis.
2. Externally Aided Projects:
NHAI is the implementing agency for executing projects for which loan assistance is available from Multilateral Development Agencies like ADB and World Bank or JIBC. In case of these projects, majority of the funds are transferred by Ministry of Road Transport & Highways to NHAI through budgetary route and NHAI receives agency charges for executing these projects.
3. NHAI funded Projects:
NHAI receives funds for augmenting its capital base from the Government through annual budgets or by Market  borrowing.
Bidding process :
General procedure for selection is a two-stage bidding comprising of:
  • Stage 1:
    Pre-qualification - on basis of technical and financial expertise of the firm and its track records on similar projects.
  • Stage 2:
    Commercial bids from pre-qualified bidders. There is a time lag between stage 1 and 2.
    Wide publicity is given to NHAI tenders so as to attract attention of leading Contractors / consultants. Notice inviting tenders is posted on this web site and published in leading newspapers.
Final selection :
If a project is funded by Multilateral funding agency like World Bank, ADB, selection is with consultation / concurrence of the funding organisation. For other types of projects selection is as per standards work procedures.
Different Procurement Procedures
International Competitive Bidding(ICB)
Projects financed by international lending agencies & for larger projects for which sufficient nos. of domestic consultants /contractors/consortium are not available.
Local (National) Competitive Bidding (LCB/NCB)
Projects financed by NHAI (in general)
Consultancy Services
What are Consultancy Services?
  • IT Services
  • Feasibility studies and project preparation
  • Construction Supervision
  • Highway Sector Studies
  • Others
Procurement of Consultants is mostly on
  • Quality and Cost based selection
  • Quality based selection
  • Single Source Selection  (sometime)
What Constitutes a Consultancy - Technical Proposal (TP) & Financial Proposal (FP)?
Technical Proposal
  • Background information ,experience in similar works
  • Approach & methodology, work programme
  • Manning schedule ,bio-data of key-personnel
  • Comments on TOR & Associated arrangements if any
Financial Proposal
  • Lump Sum, Cost plus fee basis ,out-of-pocket expenses ,man month rates
  • Traveling & transport, Office accommodation, Stationery
  • Computer & Equipment charges, supply of equipment
  • Support Staff
Steps in Quality & Cost Based Selection of Consultants
Preparation of Terms of Reference (TOR)

  • Preparation of Short List
    • Open Advertisement  On & of entire pre-qualification document
    • Long List from : Lending Agencies & Available with NHAI
  • Issue of Letter of Invitation and TOR and Draft Agreement
  • Receipt of Technical Proposal (TP) & Financial Proposal(FP)
  • Evaluation By Committee of TP
  • Opening of FP of Consultants who qualify in TP
    • In the Presence of Representatives of Consultants
    • Marks obtained in TP are informed prior to opening of FP
  • Combined Evaluation of TP & FP
  • Negotiations on technical issues with highest ranked consultant
  • Work Award
How and When Quality & Single Source Selection of Consultants
  • Quality Based Selection : Adopted by ADB & JIBC
    • After Evaluation of Technical Proposal , the financial proposal of Highest ranked consultant is negotiated, by a committee
    • After Successful negotiation, work is awarded
  • Single Source Selection : In Urgent Cases Only
    • Where Work An Extension of Existing study ,by same firm...
    • Where rapid Selection is Essential
    • Where the firm has excellent experience in the particular field
Steps in Civil Works Contract Procurement
  • Invitation to Contractors to Pre-Qualify
    • Pre-Qualification of Contractors
    • Issue of Tender (BID) documents to pre-qualified contractors
    • Receipt of tenders &opening of tenders in the presence of tenderers
    • Evaluation of Tenders
    • Award of Contract
Details of Civil Works Contract Procurement
  • Pre-Qualification of Contractors
    • Press Notification & Entire PQ Document on www.nhai.org
    • Submission of PQ Applications
    • Evaluation Parameters
      • Financial
        • Average annual turnover, bid capacity, liquid assets
    • Technical
      • Personnel Organization ,plant and equipment
    • Experience in Similar Works Track Record
      • Satisfactory timely completion &litigation
    • Evaluation of Tenders
      • Bid Security ,Completeness and signed ,correction of computational errors.
    • Technical Security
      • Substantial Responsiveness
        • A tender which confirms to all the terms, conditions and specifications of the tender documents , without material deviation
    • Only Substantially bids are compared Award of work to the lowest evaluated bidder
What generally Constitutes a BID document?
  • Volume I
    • Instructions to Bidders ,conditions of contract ,special conditions
  • Volume II
    • Technical Specifications
  • Volume III
    • Form of BID, bill of quantities,schedules,model forms
  • Volume IV
    • Drawings
key parameters of procurement of civil works under International Competitive Bidding
  • Currency Conversion
    • All Amount are converted into single currency at the exchange rate on the date of BID opening
  • Price Preference
    • - Price preference for domestic bidders.
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