Multi-Criteria Tendering System (MCTS)

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Multi-Criteria Tendering System (MCTS)

• Yoshifumi Nishimura
• Government Buildings Department
• Ministry of Land, Infrastructure and Transport,
  Japan
• The Workplace Network 2001
• Oslo Copenhagen 7th May, 2001

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? Outline of MCTS

• Background
• Request of the tendering system selecting
  contractor who offers the most advantageous
  conditions
• Some public works need to be esteemed for
  construction period, safety conditions and so on,
  as well as for cost.
• One of the reform of the tendering and
  contractiog procedures for public works

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2. Scope and Coverage

• Applied to the following case
• The difference of overall cost is fairly high due
  consideration of the performance proposed by
  tenderer.
• The contents of the proposed performance causes
  difference more fairly in the achieved
  performance than in construction cost.
• The work especially requires environment
  preservation, special safety measures, etc.

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3. Award Mechanism

• Tender must correspond to the followings
• (1) Construction cost shall be under the
  ceiling price.
• (2) Tender performance shall satisfy all the
  minimum requirement of indispensable criteria.
• (3) Evaluation score shall be over the
  reference score.
• Ceiling price is calculated on the premise that
  the purposed technical criteria can be
  materialized.
• Reference score is gained by dividing reference
  points calculated on the base of minimum
  requirement by tender price.
• Tenderer with the highest evaluation score get
  award.

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4. Evaluation Score
FIBi Basic points of indispensable criteria
i FIEi Additional points of indispensable
criteria i in accordance with performance FDi
Points of dispensable criteria i in accordance
with performance Ci Cost besides construction
cost (i.e. compensation cost)
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5. Miscellaneous

• Commissioning entity shall
• - show each evaluation criterion, evaluation
  method and so on in tender documentation.
• - record and show the tender evaluation and the
  result of award to the public.
• - properly cope with the complaint from the
  tenderers.
• Security of the proposed performance
• - to specify the performance on the contract
  documents
• - to verify the performance by supervisions and
  inspections
• - to state in tender documentation and contract
  documents that reconstruction or compensation
  shall be made if the realized performance would
  not satisfy the specifications.

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? First Example of Adoption of MCTS in Public
Building Projects in Japan

• The Extra-high Voltage Substation for the new
• Laboratory in Tsukuba Science City
• Power receiving system Main/Sub 2-feeder
  receiving system
• Distribution system Three-phase Three-wire
  system, 66kV
• Insulated system Gas installed system
• Installed capacity 15,000 kVA
• Installation system Indoor-type

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Evaluation Criteria
(Base Point) given in case that all the
proposed conditions
are better than the minimum requirements (Add.Po
int) given according to the amount of
SF6 gas reduction, Efficiency of
Transformer (Cost of Power Rate due to Electrical
Loss) total cost of the power rate
corresponding to the power loss in twenty
years
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Results of Tender Evaluation
Tenderer Technical Proposal Technical Proposal Technical Proposal Technical Proposal Technical Proposal Construction Cost (thousand Yen) Evaluation Score Results of Tender
Tenderer Performance of Extra-high Voltage Transformer Performance of Extra-high Voltage Transformer Performance of Extra-high Voltage Transformer Using quantity of SF6 gas (kg) Using quantity of SF6 gas (kg) Construction Cost (thousand Yen) Evaluation Score Results of Tender
Tenderer Efficiency () Non-load Electrical Loss (kW) Load Electrical Loss (kW) In GIS In Transformer Construction Cost (thousand Yen) Evaluation Score Results of Tender
Firm A 99.5 15 27 218 315 650,000 0.1402 1st (succeeded)
Firm B 99.5 17 26 319 340 660,000 0.1372 2nd
Firm C 99.4 19 27 140 280 665,000 0.1366 3rd
Firm D 99.3 25 30 290 300 680,000 - Exceeded Ceiling Price
Firm E 99.5 19 25 140 370 695,000 - Exceeded Ceiling Price
Firm F 99.5 17 20 210 290 698,000 - Exceeded Ceiling Price
Firm G 99.3 28 29 169 180 705,000 - Exceeded Ceiling Price
Minimum Condition of Requirement 99.3 and over 30 and under 30 and under 500 and under 400 and under - - -
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y
FirmC
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FirmA
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FirmB
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Base Points
Base points Additional points
Ceiling price
x
Construction Cost Cost of the power
corresponding to the electrical loss
Notes (x, y) ???( Construction Cost,
Evaluation Points) ??( Construction Cost
Cost of the power corresponding to the electrical
loss, Evaluation Points)
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? Examples of Adoption of MCTS in Civil
Engineering Works in Japan

• Removal of the bridge across the trunk road
• Evaluation Criteria Construction cost and Time
  of the road closing
• Result The time of the whole road closing was
  reduced an hour by the day.
• Improvement of the dam
• Evaluation Criteria Construction Cost and
  Period of water level lowering
• Result The period was fifty-six weeks, thirteen
  weeks shorter than expected.

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? Outlooks

• To procure and supply fine quality objects
  
• impartially, inexpensively and timely
• - Our responsibility
• Commissioning entities should try to apply MCTS
  to suitable projects.
• The case of the Substation tendering presented
  might be a model of MCTS.
• The applicative possibility of MCTS should be
  examined.