What is Dynamic Bid(Rank based Reverse

Auction)(Multicurrency)?

• In this type of Auction multiple bidders may quote their bid in different currencies as defined & generally
some loading factor( in form of a multiplication factor and/or constant factor) is applied on their quoted
price to arrive at Effective bid price in their own currency which is then submitted in the system for the
auction. In case of Dynamic Bidding Start bid Price & Bid decrement (Change price), Multiplication (M)
and or Constant ( C ) will be available on the bidding screen .

• In this type of auction, Bidders, Once quote a valid & accepted bid can view their ‘Rank’ in the auction
among participating bidders.
• Bid Decrement ( change price) is displayed on the screen. Start bid price & Current market price may or
may not be displayed on the bidding screen.

• If any start bid Price is displayed, Bidder can quote their bid equal to or less than start bid price. Start bid
price may be different for different bidders. If Start Bid price is not displayed bidders can quote any price
as their 1st Bid and see their Rank. Bidders can improve upon their rank by reducing their price. Bidders
can reduce their bid from their own last quote bid. Their bids should be reduced by minimum one
decrement( change price) or more from Start Bid price (if applicable incase of 1st Bid) or from Last Bid
Price (Incase of subsequent bid) in order of their bids to be accepted.
 Dynamic Bid Rank based Reverse
Auction(Multicurrency)Continue…
• In Dynamic bidding System can accept same price from multiple bidders except L1 Price. i.e. L1 price
cannot be quoted by more than one bidder however other ranks can same Price. In such case ( where
price is same) Bidders rank is displayed according to their time of submission of bid. Extension time of the
auction is governed by the Auto–extension rule & No manual extension is possible on request of any
bidder.Incase of multiple markets enter your bid amount individually for each market one after the other.

Note: In Rank based reverse auction your rank with respect to other bidders will be displayed to you.
Individual bidders may be capped with separate SBP ( It may or may not be equal to the Sealed Bid price).
It may be equal or different to each vendors.
 Constituents of a Live Dynamic Price Negotiation

1.Auction ID, Item Description, Client Name.

2. ‘M’= Loading Factor ; if any, will be mentioned in the auction notice.
3. ‘C’= Constant; if any, will be mentioned in the auction notice.
4.Minimum bid decrement will be displayed beside Change.
5. Bidding Currency will be displayed next to ‘Currency

Check the auction ID, item

description & client name

Change

Currency
Constant
Loading Factor
 Constituents of a Live Dynamic Price Negotiation. Contd…

6. Start Bid Price (SBP) will be displayed under Start Price Column. Please note that Start Bid
Price Displayed to you (if) may be Common or Different for all the bidders as decided by the
client.
7. By default the SBP will be displayed under the New Bid column of the bidding screen.

Note 1 : Incase of multiple markets enter your bid amount individually for each market one after
the other and Incase of multiple market whenever new market will be launched you need go
back to the “Add to watch list section” by clicking on “ Modify Watch list “. Or else new markets
will not be visible in your bidding screen.

Start Bid Price

“Modify watch list”- Please click here and add

new markets to view them on bidding screen.
 How To Place Your Bid In Dynamic Price Negotiation Stage

1. Start Price will be shown including the loading factor with constant value. If that will be
accepted to you then you have to quote without loading factor and constant value in the
new bid box. Please do not click on “+” or “ – “ button of the bidding screen.”
Note: Calculation to arrive in the New Bid price = (start price – ‘C’) ÷ ’M’ or the refer the
calculation sheet which has been sent to you.

2. Place your calculated price according to the bidding basis mentioned in the auction notice
in the box under New Bid column. Make sure to enter the bid amount up to six decimal
places.

Do not click on “+”or “-”

 How To Place Your Bid In Dynamic Price Negotiation Stage

3. Select the check box present left to the Auction ID.

4. Effective Bid will be shown under effective bid column.
{(Effective Bid = New Bid price x M) + C}
Note: Check the Effective Bid as per calculation and it should be equal to start price or less than
one bid decrement at least or more from the start price.
5. Click on OK to confirm the bid.
6. Click on Submit to quote your Bid price.
 Reason for Bid Rejection

If the bid will be rejected then ‘Rejected’ will be shown under Result column.

If the Effective Bid value and the start price are same but the bid is getting rejected then it means
the New Bid price is higher than Start Price after six decimal points.

Rejected Bid
 How to place revised bid In Dynamic Price Negotiation Stage?

Once again do the calculation to arrive in the New Bid price = (start price – ‘C’ - Change) ÷ ’M’ or the refer
the calculation sheet which has been sent to you.
1. Place your calculated price according to the bidding basis mentioned in the auction notice in the box
under New Bid column. Make sure to enter the bid amount up to six decimal places.
2. Select the check box present left to the Auction ID.
3. Effective Bid will be shown under effective bid column.
{(Effective Bid = New Bid price x M) + C}

Note: Check the Effective Bid as per calculation and it should be equal to Start Price or less than one bid
decrement at least from the Start Price.

4. Click on OK to confirm the bid.

5. Click on Submit to quote your Bid price.
 Accepted bid

5. After submitting the bid in the new bid column, if Bid Accepted will be shown under the Result column,
that means your bid has been accepted and registered in the system.
6. If the bid is accepted then Rank will appear under Rank column of bid summary screen. If your Rank is 1
that means you are the leading bidder whereas if it is 2 or above then you have to revise your bid to improve
your rank.
7. The current market price may be displayed under Current MKT Price column of bid summary screen as
per client instruction. {(Current Market Price = Bid price x M) + C}
8. Your last quoted price will be displayed under Last Bid column of the bidding screen.
If the Rank changed in higher side from the bid summary screen that means somebody else
quoted lower than your price hence you are not L1 at that point of time. To become L1 bidder
you have to revise your bid again lower than your last quoted rate or the current market price at
least by 1 bid decrement or more. Calculation for the same can be done by using the below
mentioned formula.

New Bid price = (current market price – ‘C’ - Change) ÷ ’M’

or
refer the calculation sheet which has been sent to you. Bidder can see their valid & accepted bid
by clicking on the “Bid details” option.

Rank
Changed
 Warning message if effective
bid is less than or equal to 10%
or SBP or Last bid.

In case bidders tries to places bid which is 10% or more lower

than SBP ( in case of 1st bid of the auction) or Last bid( in case of
subsequent Bids of the auction) in one go, Bidders will get a
warning message with exact percentage difference to reconfirm
their bid.

Bidder will have option to confirm & go ahead with bid submission
or cancel & revise their bid .
Warning Message(To prevent incorrect bid scenarios due to oversight, following system
checks are available in the system):

A) Effective bid is 10% or more lower than start bid price ( for 1st Bid of the auction)
1) A warning message from web page will be showing “ Your bid is X % lower than the Start
bid , Are you sure that you want to bid this price? Press OK to confirm, CANCEL to edit your
bid.”

1
Warning Message(To prevent incorrect bid scenarios due to oversight, following system
checks are available in the system):

A) Effective bid is 10% or more lower than last bid Price ( for Subsequent bids after 1st bid of
the auction)
1) A warning message from web page will be showing “ Your bid is X lower than the last bid
price, Are you sure that you want to bid this price? Press OK to confirm, CANCEL to edit your
bid.”

1
 Reasons 1:

1. Bidder’s Effective bid Price is higher than Start bid price (incase of first bid) when Start Bid Price is
displayed..

The bid will be Rejected.

 Reasons 2 :

2.Effective Bid is higher than upper limit set for the auction in the system (incase of first bid) when Start
Bid Price is not displayed.

The bid will be Rejected.

 Reasons 3 :
If bidder’s effective bid price is equal to or lower than the SBP (if
displayed) but Bid reduction from Start bid price (if displayed) /Last bid
price is less than minimum change price.
** For 1st Bid of the auction, this checking would be done with start bid (if
displayed) however for subsequent bid such checking would be with last
bid price & appropriate message would be displayed

The bid will be Rejected.

If Bid reduction from last effective bid price is less than minimum change price

The bid will be Rejected.

 EFFECTIVE BID IS 50 % OR MORE LOWER THAN START BID PRICE (if
displayed) ( FOR 1ST BID ) OR LAST BID PRICE(FOR SUBSEQUENT BIDS)
IN ONE GO.

** For 1st Bid of the auction, this checking would

be done with start bid (if displayed) however for
subsequent bids such checking would be with last
bid price.

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4a)Bid rejection If any bidder tries to quote a price in one go  which is 50% or more lower than start bid price(in case
of first bid) or current market price(subsequent bids).
1)If any bidder tries to quote a price in one go which is 50% or more lower than start bid price(incase of first bid).

2) bid would be rejected & appropriate reason for rejection would be displayed for few second. Again to find out the
reason for rejection, click on REJECTED.

21 The bid will be Rejected. 2

4b)Bid rejection If any bidder tries to quote a price in one go  which is 50% or more lower than last bid
price(subsequent bids).

1) If any bidder tries to quote a price in one go which is 50% or more lower than last bid
price(subsequent bids) in one go.
2.) bid would be rejected & appropriate reason for rejection would be displayed.

2
The bid will be Rejected.

22
5) Bid rejection If any bidder tries to quote a price which is equal to L1 Market Price (Which is may or
may not be visible to bidders asper clients instruction).

If any bidder tries to quote a price which is equal to L1 market price then bid would be rejected &
appropriate reason for rejection would be displayed.

2
The bid will be Rejected.

23
6)Bid rejection If Effective Bid is equal to or higher than last quoted bid.
If any bidder tries to quote a price which is equal to or higher than the last quoted bid then
bid would be rejected & appropriate reason for rejection would be displayed.

2
The bid will be Rejected.

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Reason 7.
If any bidder tries to quote a bid which is less than boundary bid value ( lowest limit of the
auction in the system) .

Bid would be rejected and bid rejection reason would be displayed as “Effective bid is less than
lower limit set of the auction in the system”.
 How to submit your price break up after
auction:
• After the competition of the auction incase you are L1 / have matched the L1price or as
applicable and stated the RFQ /Auction notice, you have to submit the item wise price break
up in the format as stated in the Auction notice (Annexure-4)or RFQ.

• The price break up has to on the price basis quoted during the online event as the case may
be ( eg. LCNC, LCNV, etc)

• For any clarification related to taxes applicable, clarify prior to start of auction.

• All the price break up have to be sent to company letterhead signed & stamped by
authorized signatory of your company.

• You may send the price break by Scanned copy through mail at the following email address:
postauctionbj@mjunction.in .
• You may also send the same vide fax to our number 033-66011725.

• Price break up has to submit within 2 hrs from the time of completion of the event.
• Failure to submit the price break up may attract penal measures as deemed suitable by the
client.
How to register your query/suggestion/feedback/complain in the
cchp:

1)Bidders can register their query/suggestion/feedback/complain through "Feedback" link provided on the Menu bar or send email at
feedback.bj@mjunction.in
2)Steps: Click on Feedback option->Click on New->Write your comments in the Description box & Submit.

1)Feedback Link