Additional questions/examples
to work through on:
a)
Incentive Contracts and calculating the price based on actual cost
b) Sensitivity Analysis of BID Evaluations
c) Evaluation Factors
Answers will be shared by Monday 5 May 2025
For incentive
contracts
• Question 22 on p420 can be worked through
Sensitivity Analysis
• Four bids were received and the evaluation is summarised on the
next slide
• Prices in millions of rand: A = R4m B = R3,5m C = R3,0m and D = R5m
• Bid A did not meet one of the critical evaluation criteria
a) Using a trade-off analysis, which Bid would you recommend the
contract to be awarded to?
b) Perform a sensitivity Analysis on the bid evaluation
Bids
Weights
A
B
0,1
1
0,1
6
0,6
10
1
6
0,6
0,1
10
1
8
0,8
1
0,1
8
0,8
0,35
10
3,5
6
2,1
6
2,1
1
0,35
0,2
8
1,6
7
1,4
10
2
7
1,4
0,25
6
1,5
10
2,5
8
2
1
0,25
7,7
C
7,4
D
7,2
3,4
Sensitivity Analysis
• Six bids were received, two were disqualified and the evaluation of
the remaining four is summarised below
a) Perform a sensitivity Analysis on the bid evaluation
Bids
Weights
0,35
0,1
0,05
0,1
0,4
A
7
8
5
1
5
2,45
0,8
0,25
0,1
2
5,6
C
10
1
7
10
10
3,5
0,1
0,35
1
4
8,95
E
1
9
10
7
1
0,35
0,9
0,5
0,7
0,4
2,85
F
8
10
1
10
8
2,8
1
0,05
1
3,2
8,05
Evaluation Factors
• What is the difference between qualification evaluation
factors and critical evaluation factors?
• What type of evaluation factor is each of the following:
1. The bidder shall be ISO14001 certified
2. The bidder shall design, procure and install and
commission a storage facility with 80MW/320MWh
usable capacity per day
3. The works shall be completed within 12 weeks from contract
award but the faster the better
4. The bidder shall have implementation experience in
underground tanks
5. The tanks may be installed above ground or underground