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

Capital structure, name the concept which increases the return on equity sh...

name the concept which increases the return on equity shares by changing the capital structure of the co.

Periodic system, limitations of using a periodic inventory system

limitations of using a periodic inventory system

Why does money have time value, Why does money have time value? Positiv...

Why does money have time value? Positive interest rates point toward that money has time value.  When one person lets one more borrow money, the first person needs compensation

Buy and hold - passive strategy, A simple passive strategy involves b...

A simple passive strategy involves building a portfolio and holding it through time. The coupons as well as the proceeds of matured bonds are just reinvested in new iss

6 KEY STAGES OF INVESTMENT DECISION WITH APPROPRIATE DIAGRAM, 6 KEY STAGES ...

6 KEY STAGES OF INVESTMENT DECISION WITH APPROPRIATE DIAGRAM

Find NPV of 2 Projects, Woody Construction is considering a new 3-year expa...

Woody Construction is considering a new 3-year expansion project that requires an initial fixed asset investment of $3.186 million. The fixed asset will be depreciated straight-lin

Capital gain or loss, An Investor can receive income from this ...

An Investor can receive income from this source when the bonds purchased at discount are held up to maturity or when he sells the bond before ma

Report on acquiring the turbine machine in leaminger plc, REPORT To: T...

REPORT To: The Directors of Leaminger plc From: A business advisor Date: December 2002 Subject: Acquiring the turbine machine Introduction In financial

Evolution of securitization, Securitization is a financial innovati...

Securitization is a financial innovation born out of the necessity the savings and loan associations of the United States of America face to save themselves from im

Reinvestment income, Other than zero coupon bonds, all fixed in...

Other than zero coupon bonds, all fixed income securities make periodic payments in the form of coupon interest. This coupon interest can be rei

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