Available bid capacity
We saw the criterion that qualifies the bidder. Now we will learn about the bid capacity.
There are chances that a bidder might acquire more contracts by meeting the qualification criteria for several packages and then fail to complete these contracts. Hence, the available bid capacity is evaluated before the contracts for several packages are assigned to the same bidder.
The assessment has to be made in a manner which is not subjective and must be a transparent process. An end qualification criterion should include a pre-disclosed method for computing available bid capacity. The available bid capacity for works is calculated as:
Assessed available bid capacity = (A*N*1.5-B), where,
A = Maximum value of works executed in any one year during the last five years, taking into account the computed as well as works in progress.
N= Number of years prescribed for completion of the package of works for which bids are invited.
B = Value of existing commitments and on-going works to be completed during the next "N" years.
The manufacturers who satisfy the qualification criteria should have available bid capacity more than the required supply, which will be calculated as below:
The assessed available bid capacity is (A*N-B) where,
A = Licensed Annual capacity for the item of supply.
N= Number of years prescribed for completion of the supplies for which the bids are invited.
B= Number as per existing commitments to be supplied during the next N period.