2.3 Develop and Approve BIS

The bid invitation specification (BIS) is designed to contain all information that bidders need to prepare their bids. Its development will naturally rely on much of the previous work done on the NPP project, but will be updated to the most up to date status, and thus be the sole document that vendors will rely on in preparing their formal bids. Any specific owner’s requirements for the project (see tool below) need to be clearly defined in the BIS.

BISs are useful even for sole-source purchases or intergovernmental agreements. They allow the purchaser to clearly specify the scope and requirements for the project (including any specific owner’s requirements), and for the bidder to provide a clearly scoped and costed bid. The purchaser can then compare the received bid against other options (e.g. other energy supply options, do nothing option, etc.), and ensure that the proposal received represents good value. A quality, independently-produced owner’s estimate of reasonable project costs is key to starting point for such a sole-source comparison.

Section 3 and Appendix IV of NG-T-3.9 provides general information on the content of a typical BIS. It is useful to clearly indicate within the BIS the information that is to be provided by the bidders, and the acceptable format for its presentation. Failure to do so can lead to difficulties in comparing bids from different vendors.

The figure below from NG-T-3.9 shows how the process proceeds from the BIS through to contact signature and execution, and typical resources and duration needed.

NP-T-3.21 and the Owner’s requirements guide provides a number of useful items that should be considered for inclusion into contract terms and conditions for new NPPs. Some of these are technical in nature (e.g. computer security requirements, clauses related to counterfeit and fraudulent items, etc.), while others are more strategic in nature (e.g. intellectual property rights, need to identify design and spare parts data to be provided and its format to support operations and maintenance (including future procurement), etc.). It is recommended that these be reviewed in some detail and incorporated into a new NPP’s BIS. Failure to do so can lead to increased expense and rework once the NPP in placed into commercial operation.

Corporate standard terms and conditions should also be reviewed and included in the BIS as it is usually easier and advantageous for an owner to utilize its own familiar contract language. Where no corporate standards exist, internationally recognized language such as that in FIDIC, NEC3, IChemE, ITC, ICC, and others can be a useful starting point.