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

Financial statement analysis , Case Study based on Financial Statement Anal...

Case Study based on Financial Statement Analysis of Hatsun Agro Private Limited 800x600 Normal 0 false false false EN-IN X-NONE X-NONE

Management of finacial institutions, what are the features of a comprehensi...

what are the features of a comprehensive interest rate risk management programme

Re-order point - technique of inventory management, Q. Re-order point - tec...

Q. Re-order point - technique of inventory management? Re-order point: - The re-order point is that stock level at which an order should be placed. Mutually the excessive and i

Pension fund system - uk, The UK Pension Fund System The UK Pension sys...

The UK Pension Fund System The UK Pension system is a three pillar pension system. A flat-rate first-tier pension is provided by the state and is known as the Basic State Pensi

Calculation of npv of blackwater plc, BLACKWATER PLC (a) Calculation o...

BLACKWATER PLC (a) Calculation of NPV EV = (0.3 × 0.50) + (0.5 × 1.40) + (0.2 × 2.0)    = 0.15 + 0.70 + 0.40 = 1.25 (i.e.) $ 1.25m To conclude the NPV of the project

Explain the considerations for the financiers of mbo, Considerations for th...

Considerations for the financiers of MBOs Support of MBO will rely on various factors: The reason for sale of business. Is it falling on hard times? Is group divesting to co

What are the predator shareholders, What are the Predator shareholders ...

What are the Predator shareholders Predator company's shareholders mayn't approve the bid for various reasons. Reduction in EPS If consideration is

Uses of index numbers, Uses of Index Numbers 1. Establishes trends ...

Uses of Index Numbers 1. Establishes trends Index numbers when analyzed reveal a general trend of the phenomenon under study. The available figures for inflation based

Show the phase of traditional approach, Q. Show the Phase of Traditional Ap...

Q. Show the Phase of Traditional Approach? Phase of Traditional Approach: According to the traditional approach the way in which the overall cost of capital and the value of th

Issuer’s considerations, Issuer's Considerations Cash Flows: Issuers ma...

Issuer's Considerations Cash Flows: Issuers may consider the period for which the funds are required and try to spread the borrowings in a way to minimize the costs. Generally,

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