Technical Bid Evaluation Criteria and Vendor Offer Review (with PDF)

What is Technical Bid Evaluation(TBE)?

Technical Bid Evaluation or TBE is the organized evaluation and examination process of the vendor’s technical bid documents or proposals from the technical requirement point of view. For all items, a Material Requisition (MR) document is prepared and sent to several vendors stating the requirements for any item on a specific project. Based on availability and experience different Vendors provide their bids or offers. All these offers need to be reviewed before selecting the final vendor. So, Technical Bid Evaluation(TBE) or Vendor Offer Review is an important step before final procurement. This article will provide a sample guide on the general activities to be carried out during Vendor offer review, TBE (Technical Bid Evaluation) & Vendor drawing Review:

The Technical Bid Evaluation basically assesses the technical capability along with the quality, compliance with codes, standards & specifications, experience, operating cost, and performance penalties to meet the project-specific requirement as well as execution capability.

Guide for Vendor Offer Review

The following points to be checked during the Vendor Offer Review of any item.

  • Offer to be reviewed with respect to Material Requisition.
  • The vendor should be listed in the list of Approved Vendors by the Client.
  • The manufacturer location shall be as per the Approved Vendor List.
  • Scope & Interface clarity to be checked.
  • Vendor to stamp and comply with MR (Material Requisition), Specification & Table of compliance
  • Technical queries preparation.
  • Check whether the vendor is taking any Deviation with respect to MR.
  • Ensure that the Vendor shall comply with all in-house Specifications, Guidelines, Procedures, Work Instructions, and International Code & Standard requirements.
  • Design Change to be covered as part of TQ (Technical Queries).
  • Response to Vendor TQ clarification.
  • Vendor Clarification Meeting, if required.
  • Close all Technical Queries (TQs) & clarifications.

Guide for Technical Bid Evaluation

While performing technical bid evaluation (TBE), the following points to be considered.

  • Compile all vendor offers into one document (excel sheet of some other document).
  • List down all the requirements of MR& Specifications.
  • Attach all the Technical Queries, Justification letters, Deviation & Clarification lists.
  • All vendor deviations to be approved by the Client.
  • Delivery time to be mentioned.
  • Technical Acceptance or Rejection against each vendor to be mentioned.
  • Issue TBE for Client Comments & Approval
  • TBE (Approved for Purchase) to be issued to procurement for Commercial Acceptance.
  • After finalization of Vendor, Purchase Specification to be issued to a particular vendor

Guide for Vendor Drawing Review

The following points to be kept in mind while Reviewing the vendor drawings

  • Vendor drawing to be reviewed with respect to Purchase Specifications.
  • Any design change at this stage will be an additional activity to the Vendor which may incur an additional cost.
  • Drawings to be reviewed based on technical requirements and to be commented on accordingly.
  • Normally each organization has its own checklists for vendor drawing review and those to be followed with close attention to avoid any major mistake.
Technical Bid evaluation of Equipment
Various Types of Equipments for Review

Types of Equipment, Packages & Piping Components that are normally reviewed

Static Equipment for Technical Bid Evaluation

Important static equipment for technical bid evaluation are

  • Storage Tanks
  • Heat Exchanger / Air Cooler
  • Knock-out drum
  • Vessels
  • Columns
  • Heaters
  • Reactors
  • Filters

Rotating Equipment for TBE

Technical bid evaluation is performed in the following rotary equipment in a process plant

  • Gas turbines.
  • Steam turbines.
  • Centrifugal Pumps.
  • Positive displacement pumps.
  • Centrifugal Compressors.
  • Fans & Blowers

Packages for Technical Bid Evaluation

Important package items used in oil & gas industry for technical bid evaluation process are

  • Compressor package
  • Flare package
  • WTP package
  • Separator package
  • Chemical Injection Skids
  • FMS

Mechanical  (Static & Rotating) discipline will be the Lead for Vendor offer review, Technical Bid Evaluation &  Vendor drawing review for Static / Rotating Equipments & Packages.

Piping will provide inputs to mechanical.

Technical Bid Evaluation for Piping Components

Main piping items used for technical bid evaluation are

  • Pipe, fittings, flanges, gaskets & bolts/nuts
  • Valves (Gate, Globe, Ball, Butterfly, Check, Needle, Relief valve, etc,.)
  • Strainers (Bucket, Tee, Y-type strainer, etc.,)
  • Steam / Drain Traps
  • Couplings
  • Other Special Items

Piping will be the Lead for Vendor offer review, Technical Bid Evaluation &  Vendor drawing review for Manual valves, Relief valve, Piping special Items.

Technical Bid Evaluation for Valves

The following steps are followed for TBE of valves.

  • Vendor to comply with MR, mandatory requirements.
  • TQ preparation
  • Review of TQ response from Vendor.
  • TQ-2, if any.
  • Review of vendor deviation, if any.
  • The vendor should comply & stamp on the table of Compliance.
  • Pressure Testing requirements to be checked.
  • Painting requirements to be marked with respect to line design parameters.
  • For the Full Bore valve requirement, Valve ID to be check.
  • Fire Safe Design requirements to be checked for soft seated valves.
Sample format for Technical Bid Evaluation, Vendor offer Review
Sample format for Technical Bid Evaluation, Vendor offer Review

Piping Inputs to Vendor Packages for Technical Bid Evaluation

While performing the technical bid evaluation the following inputs are provided from piping.

  • Vendor to perform the engineering of interconnecting piping between all internal skids of Package.
  • Vendor shall perform the stress analysis/ calculation, and other required engineering for interconnecting piping between all skids of Package (for example GRC Package-LR Compressor, Air Cooler, Sealing, Drums, etc)
  • The vendor shall provide maximum allowable forces and moments at the interface flanges.
  • Vendor to provide Piping layout drawings, Isometrics drawings for all Interconnecting piping between all skids of Package.
  • Vendor shall comply with the Client/ In-house Piping Specification & Shell Standard Piping Class
  • Vendor to provide Proper access / Platforms / Ladder for Maintenance and Operation of the GRC Package.
  • Vendor to comply with all client requirements.
  • Vendor to comply with the client Specifications, Guidelines, Procedures, Internal Codes & Standards, requirements as stated in MR.
  • Location & Available Area for the Packages

Piping Inputs to Static Equipment for Technical Bid Evaluation

TBE of Storage Tanks

  • Nozzle Orientation, Staircase Orientation & Elevations.
  • Allowable Nozzle forces & moments on the tanks’ shell nozzles shall be calculated as per API 650 annex. P
  • Allowable nozzle load on any process nozzles on the roof shall be analyzed using the FEA method
  • Pipe Support Cleat Orientation & elevations.
  • Piping loads at supports taken from Tank Shell / Roof.
  • Platform Access requirements for Rooftop Nozzles
  • Underside elevation of the tank.
  • Tank & piping Interface details

TBE of Heat Exchanger / Air Cooler / Vessels

  • Nozzle forces & moments
  • Piping Interface details
  • Sliding support requirements in case of Tube heat exchanger
  • Nozzle location & elevations.
  • Vendor to comply with the Nozzle Minimum forces & moments as per DEP Unfired Pressure Vessels
  • Pipe Support Cleat Orientation & elevations.
  • Piping loads at supports taken from Equipment Shell / Roof.
  • Platform Access requirements for top Nozzles

Piping Inputs to Rotating Equipments

Technical Bid Evaluation for Pumps

  • Design and engineering for Interconnecting piping between Fluid Coupling, Flushing Plan, Seal Plan, and Cooler.
  • Piping Interface flange connections shall be as per ASME B16.5.
  • Confirm nozzle allowable loads shall be 2 times the loads as indicated in Table 5 “External nozzle forces and moments” of API 610.

Few more resources for you…
Piping Design and Layout
Piping Stress Analysis
Piping Materials
Piping Interface

Further Studies for Technical Bid Evaluation Criteria

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Anup Kumar Dey

I am a Mechanical Engineer turned into a Piping Engineer. Currently, I work in a reputed MNC as a Senior Piping Stress Engineer. I am very much passionate about blogging and always tried to do unique things. This website is my first venture into the world of blogging with the aim of connecting with other piping engineers around the world.

4 thoughts on “Technical Bid Evaluation Criteria and Vendor Offer Review (with PDF)

  1. This is very useful! I’m happy I spotted your post because it’s better than similar posts I’ve read from everyone else about this subject. Can I ask you to clarify some things? Maybe give another example? Thank you!

  2. Dear sir
    You are great
    With respect to you. I am graduate engineer (degree) & 12 Years experience Oil & Gas different plants in Gulf countries Static & Rotating Project engineer Piping Commissioning activities Mechanical Completion and Maintenance etc
    Please email any Situable job regarding my profile
    Mohammad Mohsin

  3. These are some great idea about the vendor offer review and tbe vendor drawing review that you have discussed here. I really loved it and thank you very much for sharing this with us. You have a great visualization and you have really presented this content in a really good manner.

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