Bid Evaluation

When all bids are received, one engineer should be assigned the job to review the bids for completeness and to prepare a bid tabulation. On a large job, this job may be divided into several tasks and may take a considerable length of time. On smaller jobs, it may be a relatively short project.

Once the bids are tabulated for specification compliance in the form of a chart for easy review by all others involved in the project, an overall evaluation should be made, factoring in energy cost, first cost, and time value of money using an established economic equation. Most companies have a standardized formula. If the data are available, total cost of ownership can be estimated, which for larger equipment is considered a good measure for evaluation.

The vendor order can be established on a bid-factor basis. To this list can be added pluses or minuses based on experience with the vendor In some companies, a spare parts package cost is obtained with the bids.

Any resemblance to the first package cost and any later spare costs, unfortunately, is a coincidence. It is suggested, if funds permit, that at least the first spares be purchased with the compressor because they can be expected to come at a good price.

Use the pluses and minuses only when vendors of equal experience are available. It is a trap to assume that the vendor for whom there are no minuses might be great if the lack of minuses is due to lack of experience. Time will surely correct this.

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