GOVERNMENT OF THE REPUBLIC OF LITHUANIA

GOVERNMENT OF THE REPUBLIC OF LITHUANIA official translation GOVERNMENT OF THE REPUBLIC OF LITHUANIA RESOLUTION No. 1503 REGARDING THE APPROVAL OF THE METHODOLOGY FOR THE EVALUATION OF ECONOMICALLY MOST ADVANTAGEOUS TENDER 30 December 1999 Vilnius Pursuant to paragraph 4 of Article 26 of the Law of the Republic of Lithuania on Public Procurement, the Government of the Republic of Lithuania has resolved: To approve the Methodology for the Evaluation of Economically most Advantageous Tender (appended). Prime Minister Andrius Kubilius Minister of Economy Valentinas Milaknis Approved by the Resolution of the Government of the Republic of Lithuania of 30 December 1999 No. 1503 METHODOLOGY FOR THE EVALUATION OF ECONOMICALLY MOST ADVANTAGEOUS TENDER I GENERAL PROVISIONS

1. The economic advantageousness of all tenders received while effecting public procurement shall be evaluated in accordance with this methodology based on the criteria chosen by the contracting authority; the economic advantageousness of the tenders submitted by suppliers/contractors shall be compared, the order of tenders shall be drawn up (starting with the most advantageous and ending with the one offering least advantage) and the economically most advantageous tender shall be determined. Where the tenders are evaluated according to the economic advantageousness offered by them, the contract documents shall also be drawn up in accordance with this methodology.
2. Evaluation of economic advantageousness is the total score of evaluation points received by the contractor’s/supplier’s tender, calculated in accordance with this methodology and following the procedure laid down in the contract documents. The tender which scores the highest points shall be deemed to be economically most advantageous.
3. The parameters characterising the contractor’s/supplier’s qualifications may not be considered as the parameters of the object of procurement and shall not be applicable while evaluating the economic advantageousness offered by the tender.
4. Decisions regarding the evaluation of economic advantageousness of tenders shall be made before drawing up contract documents. A decision on the evaluation of the economic advantageousness offered by the tender shall be taken in the cases where the lowest offered price would not necessarily mean the most economical tender.
5. The economic advantageousness of the tenders presented by contractors/suppliers may be evaluated when procurement is effected by way of open procedure, restricted procedure or negotiated procedure.
6. The economic advantageousness of the tender shall not be evaluated where the expenses of the evaluation incurred by the contracting authority would be excessive when compared with the possible advantage whereas the results of the evaluation are not sufficiently trustworthy. II. CONCEPTS
7. The following concepts are used in the methodology: evaluation of the economic advantageousness (S) - the sum total of the points of evaluation of the price of the supplier’s/contractor’s tender (C) and points of technical evaluation (T), calculated in accordance with this methodology and in the manner prescribed by the contract documents: (1st formula); evaluation of the price of the tender (C) - the ratio between the lowest offered price (Cmin) and the price of the tender under evaluation (Cp), multiplied by the specific gravity of the price evaluation in the evaluation of the economic advantageousness (X): (2nd formula); the values of Cmin and Cp are discounted taking into account the time limits of payments and supply of products, provision of services and performance of works. The discounting is effected in accordance with the procedure for discounting the prices offered by the suppliers/contractors, approved by the Public Procurement Office under the Government of the Republic of Lithuania; technical evaluation of the offered object of procurement (T) - the sum total of the points of evaluation of functional characteristics (Tf), evaluation of operation costs (Te) and evaluation of the calculated price of the object (Tk): (3rd formula). The choice of constituent parts of the technical evaluation (Tf, Te, and Tk) depends on the type of the object of procurement (whether products, services or works are to be procured), characteristics of the object of procurement and the needs of the contracting authority; the evaluation of functional characteristics (Tf) - the sum total scored in the evaluation of the parameters (Fi) distinguishing the functional characteristics of the object of procurement (functional parameters), multiplied by the specific gravity of the functional characteristics in the evaluation of economic advantageousness (Yf): (4th formula). Functional parameters may embrace the efficiency, accuracy, aesthetic qualities, environmental impact, etc. of the object of procurement; evaluation of the functional parameter (Fi) - comparison of the value of the ith functional parameter of the offered object of procurement (Pi) with the best value of the parameter in all tenders (Pmax or Pmin), multiplied by the specific gravity of the parameter under evaluation (Li). Depending on whether the highest or the lowest value of the parameter under evaluation is treated as the best value, the functional parameter shall be evaluated in accordance with the following formulas: where the highest value of the parameter is considered as its best value: (5th formula); where the lowest value of the parameter is considered as its best value: (6th formula). The sum total of the specific gravities of all functional parameters under evaluation must amount to 1: (7th formula); the evaluation of operation costs (Te) - the ratio of the minimum sum of the offered operationcosts (Emin) and the sum of the operationcosts of the tender under evaluation (Ep), multiplied by the specific gravity of the operationcosts in the evaluation of economic advantageousness (Ye): (8th formula). Operation costs - future costs related to the use of the purchased, built or created object of procurement (costs of energy resources, operational materials, spare parts, technical maintenance, repairs and other costs). Only the operation costs chosen for the evaluation of tenders and indicated in the contract documents shall be added up. As a rule, operation costs shall be expressed in litas. If all the operations costs chosen for the evaluation of tenders are measured in identical units of measurement, they may be expressed in physical units; the evaluation of the calculated price of the object (Tk) - the ratio between the lowest calculated price of the construction (manufacture, creation) of the object (Tmin) and the price of the construction (manufacture, creation) of the object calculated in the tender (Tp), multiplied by the specific gravity of the calculated object price in the evaluation of economic advantageousness (Yk): (9th formula). III. EVALUATION OF THE ECONOMIC ADVANTAGEOUSNESS
8. The public procurement commission set up by the contracting authority shall evaluate the economic advantageousness of the suppliers’/contractors’ tenders in accordance with the following procedure: shall establish whether there are grounds for evaluating the economic advantageousness of tenders and whether this is justified; 8.
9. shall establish which technical criteria and parameters (parameters of functional characteristics, operation costs, calculated price of the object) will be applied while evaluating the economic advantageousness of the tenders; shall determine the specific gravity of the functional parameters evaluation (Li); shall establish the specific gravity of of the price and technical evaluation in the evaluation of economic advantageousness (X, Yf, Ye, Yk); shall indicate in the tender documents: 8.5.
10. that the tenders of the contractors/suppliers will be evaluated based on their economic advantageousness; 8.5.
11. which technical criteria and parameters will be applied for the evaluation of economic advantageousness. The chosen criteria and parameters of evaluation shall be presented in the contract documents according to the decreasing order of their specific gravity; 8.5.
12. what is the specific gravity of the evaluation of the offered (discounted) price in the evaluation of economic advantageousness (X); 8.5.
13. what is the specific gravity of the technical evaluation in the evaluation of the economic advantageousness; 8.5.
14. what is the specific gravity of the evaluation of functional parameters (Li); 8.5.
15. what is the possibility of presenting several variants of responsive tenders; shall evaluate (calculate) the economic advantageousness according to the data presented in the received tenders (S); shall arrange the order of precedence of tenders according to the results of the calculation and determine the most economically advantageous tender. IV. ESTABLISHMENT OF ECONOMIC ADVANTAGEOUSNESS OF THE TENDER FOR THE PROCUREMENT OF PRODUCTS Economic advantageousness of a tender may be evaluated in the cases where the object of procurement is technically complex products, the establishment in the contract documents of the limits of technical parameters (functional characteristics, operation costs, calculated price) whereof would not ensure for the contacting authority the choice of a good tender, or when any of the following conditions are met: 9.
16. improvement of the parameters distinguishing functional characteristics of products is significant for the needs of the contracting authority, whereas in individual tenders the difference in the parameters may be over 15%; 9.
17. the projected product operation costs within the regular period of their use, but not longer than 10 years, may exceed 50% of their purchasing price, whereas the operation costs of products offered in different tenders may differ by over 15%. Depending on the specific qualities of the products to be procured the evaluation of economic advantageousness may embrace the evaluation of both functional characteristics and operation costs or only one of those.
18. Only those technical parameters, distinguishing the functional characteristics are chosen for the evaluation of the economic advantageousness of the tenders, the improvement whereof would markedly increase the efficiency of use by the contracting authority of the procured product. Some of the functional parameters may be measured, while the other (the convenience of repairs and maintenance, possibility of upgrading, aesthetic qualities, etc.) shall be evaluated according to the method of expert evaluation.
19. The sum total of the specific gravities of functional parameters (Li) must amount to
20. The lowest specific gravity of a functional parameter may not be less than: 12.
21. 0.3 - where two parameters are used; 12.
22. 0.2 - where three parameters are used; 12.
23. 0.15 - where four or more parameters are used.
24. Only the basic operation costs must be chosen for the purpose of evaluation of operation costs.
25. The sum total of the specific gravities of price evaluation (C), evaluation of functional characteristics (Tf) and evaluation of operation costs (Te) must amount to 100 (X+Yf+Ye = 100). The specific gravity of price evaluation (X) must not be less than: 14.
26. 70 - where the price, functional characteristics and operation costs are under evaluation; 14.
27. 80 - where the price and the functional characteristics, or the price and operation costs are under evaluation; Where technically complex systems are to be procured, the specific gravity of the price evaluation may be reduced to
28. The sum total of the specific gravities of the evaluation of functional characteristics and operation costs (Yf and Ye) may not exceed
29. Where only one of the above is subject to evaluation, the specific gravity of the evaluation of the latter may not be higher than
30. Where technically complex systems are to be procured, the sum total of the specific gravities of the evaluation of functional characteristics and operation costs may be increased to
32. The price shall be evaluated according to the 2nd formula.
33. The functional characteristics shall be evaluated according to the 4th, 5th and 6th formulas.
34. The operation costs shall be evaluated according to the 8th formula.
35. The economic advantageousness (S) shall be evaluated according to the formula: V. ESTABLISHMENT OF THE ECONOMIC ADVANTAGEOUSNESS OF THE TENDERS OFFERING SERVICES
36. The economic advantageousness of the tenders offering consulting, design or similar services may be subject to evaluation where it is expected that a different design or construction may be offered, the setting of the limits of technical parameters (functional parameters, operation costs and calculated price) in the contract documents will not guarantee the contracting authority the choice of a sufficiently good offer and it is believed that the object being designed (created) will meet at least one of the following conditions: 19.
37. the improvement of the basic functional parameters of the object built (manufactured, created) according to the project that is under preparation is important for the needs of the contracting authority, while the difference between the parameters in different tenders may be over 15%; 19.
38. during the regular period of operation (but not longer than 10 years) of the object built (manufactured, created) according to the project its operation costs will constitute not less than 50% of the price of construction (manufacture, creation) of the object, while the operation costs in different tenders may may differ by over 15%; 19.
39. the price of construction (manufacture, creation) of the projected object may differ by up to 10% in different tenders.
40. Depending on the characteristics of the services to be procured, the evaluation of economic advantageousness may embrace the evaluation of functional characteristics and operation costs, or the evaluation of only any one of the above. The calculated price of the object may be evaluated only while procuring the design services.
41. Functional parameters shall be selected and their specific gravity shall be established in the manner specified in paragraphs 12 and
42. Applying the evaluation of the operation costs, only the projected operation costs of the object built (manufactured, created) according to the prepared project shall be calculated. For the evaluation of operation costs only the basic operation costs must be selected. The specific gravity of the price evaluation (C), evaluation of functional characteristics (Tf), evaluation of operation costs (Te), and evaluation of the calculated price (Tk) added up must amount to 100 (Y+Yf+Ye+Yk=100). The specific gravity of the price evaluation (X) must not be less than: 23.
43. 50 - where the price, functional characteristics, operation costs and calculated price of the object are under evaluation; 23.
44. 70 - where the price, functional characteristics and operation costs are under evaluation; 23.
45. 80 - where only the functional characteristics, or only the operation costs, or only the calculated price of the object are evaluated together with the price. Where the price, functional characteristics, operation costs and calculated price of the object are under evaluation, the total specific gravity of all of the above (Yf, Ye and Yk) must not exceed
46. Where two of the above-mentioned types of evaluation are applied, the sum total of their specific gravity must not be higher than 30, and where the evaluation of only one of the parameters is applied, the specific gravity thereof must not exceed
47. The price, functional characteristics and operation costs shall be evaluated according to the 2nd, 4th, 5th, 6th and 8th and 9th formulas. The calculated price of the object shall be evaluated according to the 9th formula. The economic advantageousness of tenders shall be evaluated according to the formula: ]VI. ESTABLISHING ECONOMIC ADVANTAGEOUSNESS OF THE TENDERS OFFERING WORKS The economic advantageousness of tenders offering works for procurement may be evaluated if the works are purchased together with the design services of the object of works to be procured and if establishing in the contract documents the limits for technical parameters of the object to be procured (functional parameters and operation costs) would not guarantee for the contracting authority the choice of a sufficiently good tender. Where the works that are procured are performed according to a project prepared in advance, which offers technical and construction solutions, economic advantageousness shall not be evaluated. The evaluation of economic advantageousness may include, in addition to price evaluation, both the evaluation of functional characteristics and operation costs, or any one the above taken separately. Functional characteristics shall be evaluated where the improvement of the functional parameters of the built object is important for the requirements of the contracting authority, whereas the difference in the basic functional parameters in different tenders may be over 15%. Operation costs shall be subject to evaluation where it is believed that during the regular period of operation of the object built, but not longer than 10 years, its operation costs will constitute not less than 50% of the price of construction of the object, while the possible difference in the operation costs in different tenders may exceed 15%.
48. Functional parameters shall be chosen ant their respective specific gravity in the evaluation of functional characteristics shall be established according to the procedure laid down in paragraphs 2 and
50. Only the basic operation costs shall be chosen for the evaluation of operation costs.
51. The sum total of the specific gravities of price evaluation (C), evaluation of functional characteristics (Tf) and evaluation of operation costs (Te) must amount to 100 (X+Yf+Ye=100). The specific gravity of price evaluation (X) must not be less than: 30.
52. 70 - where the price, functional characteristics and operation costs are under evaluation; 30.
53. 80 - where the price and functional characteristics or the price and operation costs are under evaluation. The sum of the specific gravities of evaluation of the functional characteristics and operation costs (Yf and Ye) must not exceed
54. Where only one of the above types of evaluation is applied, its specific gravity must not exceed
56. The price, functional characteristics and operation costs shall be evaluated in accordance with the 2nd, 4th, 5th, 6th and 8the formulas, while the economic advantageousness - according to the formula: