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

Evaluate optimum price of the new machine, Q. Evaluate optimum price of the...

Q. Evaluate optimum price of the new machine? The optimum price will be the one which optimises total contribution over the five-year life of the new machine. Sales price o

Need help, #queThe opening balance of one of the 31-day billing cycles for ...

#queThe opening balance of one of the 31-day billing cycles for Lorenzo''s credit card was $4100, but after 15 days Lorenzo made a payment of $2300 to decrease his balance, and it

Capm model and financial leverage beta , 1. Capital Asset Pricing Model an...

1. Capital Asset Pricing Model and Multinational Corporations Why do some critics say the CAPM model is not appropriate in an international setting? Please explain a way that

Harmonisation of accounting standards, Harmonisation of Accounting Standard...

Harmonisation of Accounting Standards Recognising the required for international harmonisation of accounting standards, in year 1973, the International Accounting Standards Co

Current yields for treasury bond, ACT presently is all-equity financed. Thi...

ACT presently is all-equity financed. This reflects the stance of the former CEO, a dominant personality who stated repeatedly: "I don't want us to be in thrall to the demands of t

State the terms- stock and share, Explain the terms- Stock and  Share ...

Explain the terms- Stock and  Share Stock Ownership of a company represented by shares that are a claim on the company's earnings and assets. Share Unit of equity

Define the type of bond instrument, You are an investment banker advising a...

You are an investment banker advising a Eurobank with reference to a new international bond offering it is considering.  The carries on are to be employed to fund Eurodollar loans

What are the ifrs 8 operating segments, What are the IFRS 8 operating segme...

What are the IFRS 8 operating segments IASB issued IFRS 8 operating segments in November 2006 (which replaced IAS 14). This continues IASB's work in its joint short-term conver

Define flowcharts - documenting the accounting system, Flowcharts - Documen...

Flowcharts - Documenting the accounting system Depict in outline the sequence of events in a system showing document flow and department or function responsible for every ev

Explain the tests of controlor systems based auditing, Tests of controlor s...

Tests of controlor systems based auditing Tests to obtain audit evidence about effective operation of the accounting and internal control systems. It isn't concerned about deta

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