Rules & Procedures (Procurement with Dialogue)

Part 2 - Procedures of the Procurement Process (with Dialogue)
2.1       Stages of Evaluation and Negotiation

CIG will conduct the evaluation of submissions and negotiations in the following stages:

2.2       Stage I – Mandatory Requirements

Stage I will consist of a review to determine which submissions comply with all of the mandatory requirements. If a submission fails to satisfy all of the mandatory eligibility requirements, CIG will issue the bidder a rectification notice identifying the deficiencies and providing the bidder an opportunity to rectify the deficiencies.  If the bidder fails to satisfy the mandatory requirements within the Rectification Period, its submission will be excluded from further consideration. The Rectification Period will begin to run from the date and time that CIG issues a rectification notice to the bidder. The mandatory eligibility requirements are set out in the Procurement Particulars (Appendix A).

2.3       Stage II - Rated Criteria & Short-Listing

CIG will evaluate each qualified submission on the basis of the non-price rated criteria as set out in the Procurement Particulars (Appendix A). Up to the top three (3) ranked proponents from this stage will be invited to participate in direct dialogue between CIG and the bidder to discuss refinements of the initially proposed solution as per Stage III. 

2.4       Stage III – Supplier Dialogue
The goal of the dialogue is for CIG to obtain the most satisfactory solution to its procurement needs where, due to the complexity of the project, it is not feasible for the entity to formulate a detailed description of the subject matter of the procurement without dialogue. At the end of the dialogue period, which will be defined in the procurement schedule, CIG will issue addenda related to any changes of deliverables, including the reason for the change, for all short-listed bidders to consider in their final proposal. Although dialogue sessions will be held privately, minutes of the meetings will be required to be keep as a part of the procurement record.

2.5       Stage IV – Final Proposal Assessment

CIG will evaluate each final proposal on the basis of the non-price rated criteria as set out in Section F of the procurement Particulars (Appendix A). The scoring from section 2.3 above will be re-assessed based on the refinements submitted in the final proposal.

2.6       Stage V – Pricing

Stage III will consist of the following sub-stages:

2.6.1    Initial Pricing

Stage III will consist of a scoring of the initial submitted pricing of each qualified submission in accordance with the price evaluation method set out in the Pricing Form (Appendix C). The evaluation of price will be undertaken after the evaluation of mandatory requirements and rated criteria has been completed.

2.6.2    Final Pricing Options

CIG may, at its discretion, conduct one of the following processes to allow bidders to refine their submissions and pricing:

2.6.2.1 Reverse Auction

CIG may, at its discretion, conduct a Reverse Auction (RA). All eligible bidders will be invited to participate in the RA and will be provided with instructions on how to do so. In the event that CIG conduct a RA, this shall be considered the bidder’s final price offering and CIG will score the final price offering in accordance with the price evaluation method set out in the Pricing Form (Appendix C).

2.6.2.2 Best and Final Offer

CIG may, at its discretion, invite up to the top 3 ranked bidders to enter into concurrent negotiations. In the event of tie in the eligible rankings, both bidders will be invited. During these concurrent negotiations, CIG will provide each bidder with any additional information and will seek further information and submission improvements from each bidder. After the expiration of the concurrent negotiation period, each bidder will be invited to revise its initial proposal and submit its BAFO to CIG. Improvements in pricing as the result of the BAFO shall be considered the bidder’s final price offering and CIG will score the final price offering in accordance with the price evaluation method set out in the Pricing Form (Appendix C). Improvements to submissions will be reflected in modifications to the scoring is section 2.3.

2.6.2.3 Option not to Engage in RA or BAFO

If after the evaluation of the initial price offering, CIG chooses not to engage in the RA or BAFO process, CIG may proceed directly to selection of top-ranked bidder(s). If after the evaluation of the initial price offering, CIG chooses to engage in the RA or BAFO process, participation in a RA or BAFO process by bidders is optional. Should bidders not participate in the process, their scoring at the end of section 2.6 will be used in the final ranking of bidders. 
 

2.7       Stage VI – Ranking and Contract Negotiations
2.7.1    Ranking of Bidders

After the completion of Stage V, all scores from Stage II, Stage IV and Stage V will be added together and the bidders will be ranked based on their total scores. The top-ranked bidder will receive a written invitation to enter into direct contract negotiations to finalize the agreement with CIG. In the event of a tie, the successful bidder will be the tied bidder with the lowest price.

2.7.2    Contract Negotiation Process

Any negotiations will be subject to the process rules contained in the Terms and Conditions of the procurement Process and will not constitute a legally binding offer to enter into a contract on the part of CIG or the bidder and there will be no legally binding relationship created with any bidder prior to the execution of a written agreement. The terms and conditions found in the Form of Agreement (Appendix D) are to form the basis for commencing negotiations between CIG and the selected bidder.  Negotiations may include requests by CIG for supplementary information from the bidder to verify, clarify or supplement the information provided in its submission or to confirm the conclusions reached in the evaluation, and may include requests by CIG for improved pricing or performance terms from the bidder.

2.7.3    Time Period for Negotiations

CIG intends to conclude negotiations and finalize the agreement with the top-ranked bidder during the Contract Negotiation Period, commencing from the date CIG invites the top-ranked bidder to enter negotiations. A bidder invited to enter into direct contract negotiations should therefore be prepared to satisfy the pre-conditions of award listed in Section E of the procurement Particulars (Appendix A), provide requested information in a timely fashion and conduct its negotiations expeditiously.

2.7.4    Failure to Enter into Agreement

If the pre-conditions of award listed in Section E of the procurement Particulars (Appendix A) are not satisfied or if the parties cannot conclude negotiations and finalize the agreement for the Deliverables within the Contract Negotiation Period, CIG may discontinue negotiations with the top-ranked bidder and may invite the next-best-ranked bidder to enter into negotiations. This process will continue until an agreement is finalized, until there are no more bidders remaining that are eligible for negotiations or until CIG elects to cancel the procurement process. 

2.7.5    Notification of Negotiation Status

Other bidders that may become eligible for contract negotiations may be notified at the commencement of the negotiation process with the top-ranked bidder.

Rules of the Procurement Process

3.1       General Information and Instructions
3.1.1    Bidders to Follow Instructions

Bidders should structure their submissions in accordance with the instructions in this procurement. Where information is requested in this procurement, any response made in a submission should reference the applicable section numbers of this procurement.

3.1.2    Submissions in English

All submissions are to be in English only.

3.1.3    No Incorporation by Reference

The entire content of the bidder’s submission should be submitted in a fixed form. Unless specifically requested in Appendix A, the content of websites or other external documents referred to in the bidder’s submission but not attached will not be considered to form part of its submission.

3.1.4    References and Past Performance

In the evaluation process, CIG may include information provided by the bidder’s references and may also consider the bidder’s past performance or conduct on previous contracts with CIG or other institutions.

3.1.5    Information in procurement Only an Estimate

CIG and its advisers make no representation, warranty or guarantee as to the accuracy of the information contained in this procurement or issued by way of addenda. Any quantities shown or data contained in this procurement or provided by way of addenda are estimates only, and are for the sole purpose of indicating to bidders the general scale and scope of the Deliverables. It is the bidder’s responsibility to obtain all the information necessary to prepare a submission in response to this procurement.

3.1.6    Bidders to Bear Their Own Costs

The bidder will bear all costs associated with or incurred in the preparation and presentation of its submission, including, if applicable, costs incurred for interviews or demonstrations.

3.1.7    Submission to be Retained by CIG

CIG will not return the submission or any accompanying documentation submitted by a bidder.

3.1.8    No Guarantee of Volume of Work or Exclusivity of Contract

CIG makes no guarantee of the value or volume of work to be assigned to the successful bidder. The agreement to be negotiated with the selected bidder will not be an exclusive contract for the provision of the described Deliverables. CIG may contract with others for goods and services the same as or similar to the Deliverables or may obtain such goods and services internally.

3.2       Communication after Issuance of Procurement Project
3.2.1    Bidders to Review Procurement

Bidders should promptly examine all of the documents comprising this procurement, and may direct questions or seek additional information in writing by email to the procurement contact on or before the Deadline for Questions. No such communications are to be directed to anyone other than the procurement contact. CIG is under no obligation to provide additional information, and CIG is not responsible for any information provided by or obtained from any source other than the procurement Contact. It is the responsibility of the bidder to seek clarification from the procurement Contact on any matter it considers to be unclear. CIG is not responsible for any misunderstanding on the part of the bidder concerning this procurement or its process.

3.2.2    All New Information to Bidders by Way of Addenda

This procurement may be amended only by addendum in accordance with this section. If CIG, for any reason, determines that it is necessary to provide additional information relating to this procurement, such information will be communicated to all bidders by addendum. Each addendum forms an integral part of this procurement and may contain important information, including significant changes to this procurement. Bidders are responsible for obtaining all addenda issued by CIG. In the Submission Form (Appendix B), bidders should confirm their receipt of all addenda by setting out the number of each addendum in the space provided.

3.2.3    Post-Deadline Addenda and Extension of Submission Deadline

If CIG determines that it is necessary to issue an addendum after the Deadline for Issuing Addenda, CIG may extend the Submission Deadline for a reasonable period of time.

3.2.4    Verify & Clarify

When evaluating submissions, CIG may request further information from the bidder or third parties in order to verify or clarify the information provided in the bidder’s submission, including but not limited to clarification with respect to whether a submission meets the mandatory technical requirements set out in the procurement particulars. CIG may revisit and re-evaluate the bidder’s response or ranking on the basis of any such information.

3.3       Notification and Debriefing
3.3.1    Notification to Other Bidders

Once an agreement is executed by CIG and a bidder, the other bidders will be notified directly in writing of the outcome of the procurement process.

3.3.2    Debriefing

Bidders may request a debriefing after receipt of a notification of the outcome of the procurement process. All requests must be in writing to the procurement Contact and must be made within five (5) business days of such notification. The intent of the debriefing information session is to aid the bidder in presenting a better submission in subsequent procurement opportunities.

3.3.3    Procurement Protest Procedure

Following a debriefing, if a bidder wishes to challenge the procurement process, it should provide written notice to the procurement Contact in accordance with the entity’s procurement protest procedures. The notice must provide a detailed explanation of the bidder’s concerns with the procurement process or its outcome.

3.4       Conflict of Interest and Prohibited Conduct
3.4.1    Conflict of Interest

CIG may disqualify a bidder for any conduct, situation or circumstances, determined by CIG, in its sole and absolute discretion, to constitute a Conflict of Interest, as defined in the Submission Form (Appendix B).

3.4.2    Disqualification for Prohibited Conduct

CIG may disqualify a bidder, rescind an invitation to negotiate or terminate a contract subsequently entered into if CIG determines that the bidder has engaged in any conduct prohibited by this procurement.

3.4.3    Prohibited Bidder Communications

Bidders must not engage in any communications that could constitute a Conflict of Interest and should take note of the Conflict of Interest declaration set out in the Submission Form (Appendix B).

3.4.4    Bidder Not to Communicate with Media

Bidders must not at any time directly or indirectly communicate with the media in relation to this procurement or any agreement entered into pursuant to this procurement without first obtaining the written permission of the procurement Contact.

3.4.5    No Lobbying

Bidders must not, in relation to this procurement or the evaluation and selection process, engage directly or indirectly in any form of political or other lobbying whatsoever to influence the selection of the successful bidder(s).

3.4.6    Illegal or Unethical Conduct

Bidders must not engage in any illegal business practices, including activities such as bid-rigging, price-fixing, bribery, fraud, coercion or collusion. Bidders must not engage in any unethical conduct, including lobbying, as described above, or other inappropriate communications; offering gifts to any employees, officers, agents, elected or appointed officials or other representatives of CIG; deceitfulness; submitting submissions containing misrepresentations or other misleading or inaccurate information; or any other conduct that compromises or may be seen to compromise the competitive process provided for in this procurement.

3.4.7    Past Performance or Past Conduct

CIG may prohibit a supplier from participating in a procurement process based on past performance or based on inappropriate conduct in a prior procurement process, including but not limited to the following:

a) illegal or unethical conduct as described above;

b) the refusal of the supplier to honour its submitted pricing or other commitments; or

c) any conduct, situation or circumstance determined by CIG, in its sole and absolute discretion, to have constituted an undisclosed Conflict of Interest.

3.5       Confidential Information
3.5.1    Confidential Information of CIG

All information provided by or obtained from CIG in any form in connection with this procurement either before or after the issuance of this procurement

a) is the sole property of CIG and must be treated as confidential;

b) is not to be used for any purpose other than replying to this procurement and the performance of any subsequent contract for the Deliverables, except as required by act or by order of a court;

c)must not be disclosed without prior written authorization from CIG; and

d) must be returned by the bidder to CIG immediately upon the request of CIG.

3.5.2    Confidential Information of Bidder

All submissions and other information submitted to CIG in relation to this procurement become property of CIG and, subject to the most recent provisions of the Procurement Act, the Freedom of Information Act and the Data Protection Act, will be held in confidence.

Bidders are advised that their submissions will, as necessary, be disclosed on a confidential basis to advisers retained by CIG to advise or assist with the procurement process, including the evaluation of submissions. If a bidder has any questions about the collection and use of any information, including personal information pursuant to this procurement, questions should be submitted to the procurement contact.

As per the Procurement Regulations, please be advised that the name of the successful bidder and the value of the contract will be made publicly available online.

3.6       Procurement Process Non-binding
3.6.1    No Process Contract and No Claims

This procurement process is not intended to create and will not create a formal, legally binding bidding process and will instead be governed by the act applicable to direct commercial negotiations. For greater certainty and without limitation:

a) this procurement will not give rise to any contract–based tendering act duties or any other legal obligations arising out of any process contract or collateral contract; and

b) neither the bidder nor CIG will have the right to make any claims (in contract, tort, or otherwise) against the other with respect to the award of a contract, failure to award a contract or failure to honour a submission submitted in response to this procurement.

3.6.2    No Contract until Execution of Written Agreement

This procurement process is intended to identify prospective suppliers for the purposes of negotiating potential agreements. No legal relationship or obligation regarding the procurement of any good or service will be created between the bidder and CIG by this procurement process until the successful negotiation and execution of a written agreement for the acquisition of such goods and/or services.

3.6.3    Non-binding Price Estimates

While the pricing information provided in submissions will be non-binding prior to the execution of a written agreement, such information will be assessed during the evaluation of the submissions and the ranking of the bidders. Any inaccurate, misleading or incomplete information, including withdrawn or altered pricing, could adversely impact any such evaluation or ranking or the decision of CIG to enter into an agreement for the Deliverables.

3.6.4    Cancellation

CIG may cancel or amend the procurement process without liability at any time.

3.7       Governing Act and Interpretation

This procurement is governed by the last version of the Procurement Act and Procurement Regulations. These Terms and Conditions of the procurement Process:

a) are intended to be interpreted broadly and independently (with no particular provision intended to limit the scope of any other provision);

b) are non-exhaustive and will not be construed as intending to limit the pre-existing rights of the parties to engage in pre-contractual discussions in accordance with the common act governing direct commercial negotiations; and

c) are to be governed by and construed in accordance with the acts of the Cayman Islands.