IAEAInternational Atomic Energy Agency

IAEA Activities Related to Bidding and Bid Evaluation

John H. MooreNuclear Power Engineering Section

j.h.moore@iaea.org

VIE2012/9002/01 Meeting

March 23-26, 2015

Hanoi, Vietnam

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It’s great to be back in Hanoi!

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Topics to be covered

• Publications• Bid evaluation assistance,

including:• New BIDEVAL toolkit (in

progress)

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PUBLICATIONS

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Recall issued publications

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Update since December 2014 workshop

• Procurement Engineering and Supply Chain Guidelines (new NP-T-3.21) has been approved for publishing;

• Includes:• Typical procurement processes;• Considerations of special importance and lessons learned;• Procurement of services;• Procurement of software;• Counterfeit and fraudulent items;• Proactive methods for new NPPs.

More related to O&M purchasing, not new NPPs, but many similarities exist.

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NP-T-3.21 Procurement Model

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BID EVALUATION ASSISTANCE

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Invitation and Evaluation of Bids for Nuclear Power Plants (NG-T-3.9, 2011)

• General principle of bidding process;• Bid invitation specifications;• Bid evaluation process;• Technical bid evaluation;• Economic bid evaluation;• Contracting.

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Basic bidding process (from NG-T-3.9)

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BIDEVAL Toolkit

• BIDEVAL 3 software prepared in 1990’s to assist Member States in comparing and evaluation bids;

• Platform has become outdated and difficult/impossible to update;

• Decision made to initiate new project on Bid Evaluation starting in 2015;

• Project will produce a web-based “toolkit” of easy to use model forms/spreadsheets to assist in various aspects of the bid process.

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Potential model – Scottish Government Procurement site

• http://www.gov.scot/Topics/Government/Procurement/buyer-information/spdlowlevel/routetwotoolkit

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New toolkit status

• First consultancy meeting held February 2015;

• Representatives from Canada, Lithuania, South Africa,, Switzerland, USA and Vietnam (Mr. Viet Dinh Ninh);

• Preliminary process draft for toolkit developed.

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New toolkit process

Prerequisite activities

Procurement governance framework

Preliminary business

case

Decide on contracting approach

Develop & authorize

procurement strategy

Customize procurement processes

Identify key stakeholders

Develop process

evaluation criteria

Develop and approve bid

invitation specification

Handover BIS to

procurement agency

Supplier selection

Invitation to tender

Evaluate bids

Bid clarifications

Rank bidders and identify preferred

bidder

Independent review

Issue tenderHold open

vendor meeting

Vendor enquiries

Receive and open bids

Initiate negotiations

with preferred bidder

Update business case

Make final investment decision

Award contract

Post award meeting

Contract management and oversight

Lessons learned

documentation

Preparing for commissioning and operation

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Next steps

• Further refine process steps;• Add and develop available assistance tools,

including:• Samples of evaluation criteria and weightings

used on various projects.

• Develop web site ‘look and feel’;• Expected availability – 2016.

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Evaluation criteria examplesCountry 1 Country 2 Country 3

Design maturity Payment offer for site (credit for % of consortium)

Technical factors (20%)-safety-construction risk-passive safety features-etc.

Regulatory complexity / regulatory risk

Equity offering Industrial development (30%)-jobs-investment

Evaluated capacity factor Commitment on any project cost overrun

Financial (30%)-LUEC-Tariff

LUEC (Levelized Unit Energy Cost)

Ability to meet schedule Financing support (10%)

Local content Technical due diligence Equity investment (10%)

Design maturity Grid integration

Compliance with draft model agreement

Decommissioning and waste management

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ISO 10845-1 Table 3 Methods

• Financial offer• Financial offer and quality• Financial offer and preferences• Financial offer, quality, and preferences

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Other potential expert missions

• IAEA cannot participate in evaluation of specific bids, but can:

• Provide experts to comment on completeness of a BIS, evaluation criteria, or other topics in advance of a tender being issued;

• Note: expert views from such missions are their own opinions based on their expertise, not official IAEA recommendations, policy or standards.

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Notable references from draft toolkit• IAEA NG-G-3.1 Milestones in the Development of a National Infrastructure for Nuclear

Power• IAEA NG-T-1.4 Stakeholder Involvement Throughout the Life Cycle of Nuclear Facilities• IAEA NG-T-3.1 Initiating Nuclear Power Programmes

: Responsibilities and Capabilities of Owners and Operators• IAEA NG-T-3.3 Preparation of a Feasibility Study for New Nuclear Power Projects• IAEA NG-T-3.7 Managing Siting Activities for Nuclear Power Plants• IAEA NG-T-3.9 Invitation and Evaluation of Bids for Nuclear Power Plants• NP-T-3.21 Procurement Engineering and Supply Chain Guidelines in Support of

Operation and Maintenance of Nuclear Facilities• IAEA INSAG-20 Stakeholder Involvement in Nuclear Issues• IAEA TRS-275 Bid Invitation Specifications for Nuclear Power Plants, A Guidebook• IAEA TRS-204 Technical Evaluation of Bids for Nuclear Power Plants, A Guidebook• IAEA TRS-396 Economic Evaluation of Bids for Nuclear Power Plants, A Guidebook• ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT (OECD)

Anti-Corruption Ethics and Compliance Handbook for Business (2013)• ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT (OECD)

OECD Guidelines for Multinational Enterprises (2011)

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Notable references (cont.’d)

• THE INSTITUTE FOR PUBLIC PROCUREMENT (NIGP) and THE CHARTERED INSTITUTE FOR PURCHASING AND SUPPLY (CIPS), Ethical Procurement (2012);

• BRITISH STANDARDS INSTITUTE, BS 8903:2010 Principles and framework for procuring sustainably. Guide

• WORLD BANK INTERNATIONAL FINANCE CORPORATION (IFC), Performance Standards on Environmental and Social Sustainability (2012)

• CONSTRUCTION INDUSTRY INSTITUTE (CII), IR 304-2 A Framework for Sustainability during Construction (2014)

• ISO 10845-1 Construction procurement – Part 1: Processes, methods, and procedures• ISO 31000 Risk Management• IEC 31010 Risk management -- Risk assessment techniques• EPRI guide Advanced Nuclear Technology: Supplier Quality Management for New

Nuclear Plant Construction Projects, Report 3002000521• Construction Industry Institute: IR 181-2 IPRA International Project Risk Assessment,

Austin: CII, 2003.• Construction Industry Institute: IR 280-2 Applying Probabilistic Risk Management in

Design and Construction Projects, Austin: CII, 2013.• Construction Industry Institute: IR 210-2–Equitable Risk Allocation: Two-Party Risk

Assessment and Allocation Model

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COMMENTS/QUESTIONS?

Thank You for Your Participation

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