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Multi-Criteria Tendering System (MCTS)

Multi-Criteria Tendering System (MCTS). Yoshifumi Nishimura Government Buildings Department Ministry of Land, Infrastructure and Transport, Japan The Workplace Network 2001 Oslo & Copenhagen 7 th May, 2001. Ⅰ Outline of MCTS. Background

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Multi-Criteria Tendering System (MCTS)

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  1. 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

  2. Ⅰ 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

  3. 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.

  4. 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.

  5. 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)

  6. 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.

  7. Ⅱ 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

  8. Evaluation Criteria (Base Point) : given in case that all the proposed conditions are better than the minimum requirements (Add.Point) : 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

  9. Results of Tender Evaluation

  10. y FirmＣ □ ■ FirmA ○ ● FirmB △ ▲ 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)

  11. Ⅲ 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 weeksshorter than expected.

  12. ⅣOutlooks 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.

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