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In case of bids in Two-Envelop System, the correct option is
1. Technical bid is opened first
2. Either of the two (Technical and Financial) bids can be opened first
3. Both (Terminal and Financial) bids are opened simultaneously
4. Financial bid is opened first

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Correct Answer - Option 1 : Technical bid is opened first


Two Envelop System:

(i) This process is followed in cases where technical specifications, TOR (Terms of Reference) or the technology/process etc are pre-determined. Now only the two things namely: Eligibility criterion of the bidders and the financial offer needs to be evaluated.
(ii) As far as opening the is concerned, obviously the envelop one containing eligibility criterion is opened first and the financial proposal of only those who meet the qualification criterion are opened. And the tender is awarded to the most economical bidder.

Three Envelop System:

(i) In this case the bidder are asked to submit the documents as below:

  • Envelope 1 : Documents related to eligibility criteria.
  • Envelope 2 : Technical bid.
  • Envelope 3 : Financial bid.

(ii) The envelops are opened in sequence, that means first, second and then third. Through the documents submitted in envelop one, the eligibility of the bidder is ascertained.

(iii) Envelop 2 will be opened of only those bidders who meets the qualification criterion. At this stage technical offer of all the Eligible bidders is opened. generally at pre-defined date a conference is arranged to discuss the various offer submitted by various bidders, to discuss the merits and demerits of the technical offers. The bidders who offer the most viable and technologically superior technical solution are declared. All successful bidders at this stage are now asked to modify their financial bids, if required, as the technical specification has changed.

(iv) Envelope 3 will be opened of only those successful bidders at stage 2. And the contract is awarded to the most economical bidder.

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