The details of marks of the technical and the financial bids of four bidders, who bid for a project having an estimated cost of ₹ 1,00,000 are given as follows : Contractor A: technical score 80, financial bid ₹ 1,35,000 Contractor B: technical score 75, financial bid ₹ 1,25,000 Contractor C: technical score 45, financial bid ₹ 1,01,000 Contractor D: technical score 60, financial bid ₹ 1,15,000 To whom can the contract be awarded on the following conditions : 1. Technical score must be more than 50. 2. Job is awarded to the bidder with highest composite score evaluated considering equal weightage for financial and technical bid. 3. The call may be cancelled if the award price deviates more than 20% of the estimated cost. Choose the correct answer from the options given below :
- ACancel the call, though contractor B is technically qualified but quoted more than 20% of the estimated cost.Correct
- BCancel the call, though contractor A is technically qualified but quoted more than 20% of the estimated cost.
- CCancel the call, though contractor D is technically qualified but quoted more than 20% of the estimated cost.
- DContractor C
Solution
Concept
Quality-cum-cost based selection (QCBS)
Formula
Financial score = 100 × (lowest qualified bid / bid); Composite = 0.5 × technical + 0.5 × financial
Step-by-step solution
1. Condition 1 removes C (technical score 45 ≤ 50). 2. Lowest qualified financial bid = D ₹ 1,15,000, so financial scores: A = 85.2, B = 92.0, D = 100. 3. Composite (50:50): A = (80 + 85.2)/2 = 82.6; B = (75 + 92)/2 = 83.5; D = (60 + 100)/2 = 80. 4. B has the highest composite score. His price ₹ 1,25,000 is 25% above the estimate (> 20%). 5. By condition 3 the call is cancelled.
Explanation
The qualified bidders are A, B and D. Using equal weights, B wins. But the winning price is 25 percent above the estimated cost, which is beyond the 20 percent limit, so the tender must be cancelled.
Why the other options are wrong
The call cannot be cancelled "because of A" or "because of D" since neither has the highest composite score. Contractor C is technically disqualified.
Shortcut
Eliminate by technical score → compute composite → check price deviation.
Common mistake
Awarding to the lowest bidder C or the highest technical scorer A.
Correct answer: A) Cancel the call, though contractor B is technically qualified but quoted more than 20% of the estimated cost.