Available bid capacity for a bidder, Financial Management

Assignment Help:

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.


Related Discussions:- Available bid capacity for a bidder

Valuation and exit - hedge fund, Valuation and Exit Valuation: The Net ...

Valuation and Exit Valuation: The Net Asset Value is used as a base for ascertaining the prices applicable to investor subscriptions and redemptions. Fund administrator perform

Inventory management, A computer products store stocks color graphics monit...

A computer products store stocks color graphics monitors, and the daily demand is normally distributed with a mean of 1.6 monitors and a standard deviation of 0.4 monitor. The lead

Explain the cost of capital across countries, Question 1 Cost of capita...

Question 1 Cost of capital is the minimum rate of return required by a firm on its investment in order to provide the rate of return by its suppliers of capital. Explain the co

Cost of capital, The Nu-Nu Brothers Inc. (NNBI) has the following capital s...

The Nu-Nu Brothers Inc. (NNBI) has the following capital structure, which it considers to be optional: Debt 25% Preferred Stock 15% Common Equity 60% NNBI''''s expected net income

Problems using walter''s model, the following information related to sun lt...

the following information related to sun ltd.paid-up capital-1000000. earnings of the co-100000. dividend paid-80000. price-earning ratio(pie)-20. no of equity shares-100000.find o

Calculate profitability index, XYZ Ltd is a manufacturer and distributor of...

XYZ Ltd is a manufacturer and distributor of agricultural equipment. XYZ produces milking machines and supplies as well as being the sole Australian distributor of machinery from t

Available bid capacity for a bidder, A vailable bid capacity We saw th...

A vailable 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 contrac

Common size financial statement, Common Size Financial Statement Common...

Common Size Financial Statement Common Size Financial Statement is a company financial statement that shows all items as percentages of a common base figure. This kind of finan

Gordon''s dividend equalisation model, If the EPS is Rs.5, dividend pay-out...

If the EPS is Rs.5, dividend pay-out ratio is 50%, cost of equity is 20% and growth rate in the ROI is 15%. What is the value of the stock as per Gordon's Dividend Equalisation Mod

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd