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Opening of the offers - Lowest compliant

Purpose

On “lowest  compliant” basis the adjudication of a contract is for the firm whose bid complies with the technical, financial and delivery requirements and is the lowest, subject to the rules aimed at achieving well-balanced industrial return coefficients for the Member States.

Procedure

The bids received following an invitation to tender shall be opened not earlier than five working days after the closing date for dispatch of bids.

The invitation to the bid opening is sent by the purchasing service. It shall include on EN Department side:

  • the technical responsible

  • the Group Leader of the technical responsible

  • the Department Head or his representative

All the personnel attending to the bid opening is bound by the confidentiality.
The Department Head or his representative shall be present in all the Invitation to Tender's openings in order to take any decision regarding the bid opening.

A report of the results of the opening of the bids is prepared by the purchasing service in a confidential document.

After the opening of the bids, the purchasing service shall meet with the technical responsible in order to assess the bids from a technical and from a financial point of view. Bids shall be examined in detail in order to establish that:

  • The specifications have been fully understood and the bid complies in all respects with the technical and delivery requests.

  • The bid complies in all respects with the commercial and legal conditions laid down by CERN in the invitation to tender documents.

The technical responsible is allowed to ask any question or clarification needed for the analysis of a bid. All the exchanges with bidders shall go through the purchasing service.

A financial ranking of all the bids meeting the technical specification is established.

As a rule, supply contracts are adjudicated on the basis of Free Carriage (FCA) prices (this roughly means excluding transport price).
Service contracts are adjudicated on the basis of the price quoted for the whole contract duration.

Contracts exceeding 200 kCHF shall be subject to the alignment and the splitting rules in case the lowest bid is from a well balanced Member State and the following bid is originating from one or more poorly balanced Member States, provided that it falls within 20% of that of the lowest bidder, , provided that it falls within 20% of that of the lowest bidder, if the second lowest bidder agrees to realign his price to the lowest. If not, the same procedure apply to the third lowest bidder if it is within the 20%.

Splitting rules:

  • A contract can be split among several bidders. In this case CERN shall enter into negotiations with the second best placed bidder in order to try to bring the contractual conditions as close as possible to that of the best-placed bidder. Also the third best place bidder can be contacted, or the fourth.
  •  The basic rule for splitting is that the bidder who has submitted the best bid will receive not less than the share received by the second best-placed bidder and the second best-placed bidder will receive not less than the share obtained by the third best-placed bidder, etc..


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