FBR Drafts Evaluation Criteria for Selection of Vendor to Install VAS in Sugar Mills

The Federal Board of Revenue (FBR) has drafted evaluation criteria for the selection of one vendor to install the video-analytics solution across all manufacturers of sugar in Pakistan.

According to the FBR’s document on evaluation criteria, the FBR has sought invitation for bids (IFB) for Video-Analytics Surveillance of sugar production lines under Competitive Bidding between pre-qualified suppliers.

The FBR documents stated that the evaluation process is clearly focused on the proposed solution as a whole and how its components interact to provide the business process outcomes described in the IFB document. The scoring of presented technical proposals from the pre-qualified vendors shall be executed by FBR through the review, the quantitative and qualitative evaluation of technical proposals in accordance with technical requirements presented in instruction to Bidders.

The FBR document said that in order to properly monitor the production and sale of sugar and the attendant sales tax and income tax thereon, the Federal Board of Revenue (FBR) issued SRO 889(I)/2020, dated 21.09.2020 warranting all sugar mills to install Video Analytical Surveillance (VAS) System expecting that the process would be completed before the official onset of the crushing season.

The FBR ran a rigorous process of procurement as enshrined under the VAS Rules, 2020, and pre-qualified/approved seven vendors for supply and installation of the System on sugar factories.

The VAS System, however, has so far been installed only by a few sugar mills and those too are sub-optimal solutions. Ostensibly, the cost, which under the prevailing rules is to be borne by the sugar mills, has been the key factor towards non-implementation of the VAS System. Sugar mill-owners, in an apparent effort to cut cost, went around getting demonstrations and quotations from all seven vendors consuming unending time in the process. Those that went ahead with installation eventually opted for the cheapest and sub-standard solutions.

A relatively small contract size/volume (80 mills only) to be distributed over seven vendors, also did not prove enough an incentive for the vendors to aggressively invest in procurement of the systems and install in a timely fashion. The last deadline, i.e., 31.01.2021 has already expired and it seems unlikely that the System would be installed in a satisfactory manner across the board by all the mills.

The situation warrants a change in approach. Accordingly, FBR has been tasked to select and contract one vendor to install the video-analytics solution across all manufacturers of sugar in Pakistan and in the shortest possible time. The cost is to be borne by the Government and the Vendor will submit its invoices to FBR for payment.

For the evaluation of financial proposals, the scoring of presented and compliant financial/price proposals shall be done by FBR using a mathematical formula.

The total score is derived by simply adding the technical and financial scores together. The vendor with the highest grand total of points will be declared as the most advantageous Bid and FBR shall invite the respective vendor for contract negotiation, FBR added.

The FBR added that the production of sugar goods, manufactured in Pakistan, shall be monitored through intelligent video analytics (vision analytics) by the installation of equipment including intelligent production line video surveillance using video/vision analytics cameras, sensors, etc.:

  • Real-time collection of data that shows production through object detection and object counting;
  • Transmission of data to a cloud-based data management service for storage and archiving of data;
  • Detection of stoppages and production rates;
  • Quantitative analysis of production;
  • Obtaining and safe-keeping of the required data analytics to be used in legal actions.

The vendor shall make sure that all goods used in relation to the Bid are new, unused, and of the most recent or current models and that they incorporate all recent improvements in design and materials. The warranty of all equipment shall remain valid for the period of the Contract, FBR added.