Transcript MODULE 1 PROJECT PROCUREMENT DOCUMENTS

BOSNIA AND HERZEGOVINA
Road Management and Safety
Project
PROCUREMENT LAUNCH
WORKSHOP
May 21-22, 2002, Sarajevo
1
MODULE 1
PROJECT PROCUREMENT
DOCUMENTS
2
LOAN AGREEMENT (LA)
• LA IS RULING DOCUMENT BETWEEN
BORROWER AND WORLD BANK
• LA TAKES PRECEDENCE OVER
NATIONAL LAWS AND REGULATIONS
• PROJECT APPRAISAL DOCUMENT (PAD),
ANNEX 6, NOT LEGALLY BINDING
• PROJECT AGREEMENT WHEN BANK
CANNOT LEND DIRECTLY TO
IMPLEMENTING ENTITY RESPONSIBLE
FOR IMPLEMENTATION
3
LA TABLE OF CONTENTS
–
–
–
–
–
–
–
ART I : GENERAL CONDITIONS; DEFINITIONS
ART II : THE LOAN
ART III : EXECUTION OF THE PROJECT
ART IV : FINANCIAL COVENANTS
ART V : REMEDIES OF THE BANK
ART VI : EFFECTIVE DATE; TERMINATION
ART VII: REPRESENTATIVE OF THE
BORROWER; ADDRESSES
PLUS SEVERAL ATTACHMENTS (SCHEDULES)
4
PROCUREMENT RELEVANT POINTS IN LA
ART I - GENERAL CONDITIONS; DEFINITIONS:
– REFERENCE TO THE BANK’S “GENERAL
CONDITIONS APPLICABLE TO LOAN AND
GUARANTEE AGREEMENTS…”
– DEFINITION OF IMPLEMENTING AGENCIES
AND ALL TERMS USED IN LA
ART II - THE LOAN:
– LOAN AMOUNT
– WITHDRAWAL FROM THE LOAN FOR SPECIFIC
PURPOSE
– CLOSING DATE
5
PROCUREMENT RELEVANT POINTS IN LA
ART III - EXECUTION OF THE PROJECT:
– BORROWER TO CARRY OUT PROJECT WITH
“DUE DILIGENCE AND EFFICIENCY…”
– REFERENCE TO “IMPLEMENTATION
PROGRAM,” SCHEDULE 5
– REFERENCE TO PROCUREMENT PROVISIONS
IN SCHEDULE 4
ART IV - FINANCIAL COVENANTS:
– BORROWER TO MAINTAIN RECORDS AND
ACCOUNTS
– ANNUAL AUDIT REPORTS
– STATEMENT OF EXPENDITURES (SOEs)
6
PROCUREMENT RELEVANT POINTS IN LA
ART V - REMEDIES OF THE BANK:
– EVENTS FOR LOAN SUSPENSION
– CANCELLATION
ART VI - EFFECTIVE DATE; TERMINATION:
– LA EFFECTIVENESS CONDITIONS
– TERMINATION OF LA FOR FAILURE TO BECOME
EFFECTIVE WITHIN STIPULATED PERIOD
ART VII - REPRESENTATIVE OF THE BORROWER;
ADDRESSES
– MINISTER OF FINANCE NORMALLY
DESIGNATED
7
TYPICAL LA SCHEDULES
– 1. WITHDRAWAL OF THE PROCEEDS OF THE
LOAN (“DISBURSEMENT SCHEDULE”)
– 2. DESCRIPTION OF THE PROJECT
– 3. INTEREST AND PRINCIPAL REPAYMENT
PROVISIONS
– 4. PROCUREMENT AND CONSULTING SERVICES
(“PROCUREMENT SCHEDULE”)
– 5. IMPLEMENTATION PROGRAM
– 6. SPECIAL ACCOUNT
8
PROCUREMENT SCHEDULE
• TWO SECTIONS:
– SECTION I - PROCUREMENT OF GOODS
AND WORKS
• PART A: GENERAL
• PART B: INTERNATIONAL COMPETITIVE
BIDDING
• PART C: OTHER PROCUREMENT
PROCEDURES
• PART D: REVIEW BY THE BANK OF
PROCUREMENT DECISIONS
9
PROCUREMENT SCHEDULE
CONT.
– SECTION II - EMPLOYMENT OF
CONSULTANTS
• PART A: GENERAL
• PART B: QUALITY- AND COST-BASED
SELECTION
• PART C: OTHER PROCEDURES FOR THE
SELECTION OF CONSULTANTS
• PART D: REVIEW BY THE BANK OF THE
SELECTION OF CONSULTANTS
10
OTHER PROCUREMENT
DOCUMENTS
– PAD, ANNEX 6, PROCUREMENT AND
DISBURSEMENT ARRANGEMENTS
– PROCUREMENT PLAN, INCLUDING CONTRACT
PACKAGES, PROCUREMENT STEPS, AND BAR
CHART
– PROCUREMENT CAPACITY ASSESSMENT,
INCLUDING RISK EVALUATION AND ACTION
PROGRAM FOR CAPACITY-BUILDING
– GENERAL PROCUREMENT NOTICE
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MODULE 2
PROCUREMENT POLICIES
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PROCUREMENT POLICY
• CONSIDERATIONS THAT GUIDE WORLD
BANK PROCUREMENT POLICIES:
– NEED FOR ECONOMY AND EFFICIENCY
– GIVE ALL ELIGIBLE BIDDERS OPPORTUNITY
TO COMPETE
– ENCOURAGE DEVELOPMENT OF LOCAL
INDUSTRIES IN BORROWING COUNTRY
– IMPORTANCE OF TRANSPARENCY IN THE
PROCUREMENT PROCESS
13
PROCUREMENT GUIDELINES
WORLD BANK
$
• ACCUMULATED EXPERIENCE OF WORLD
BANK AND IDA
• GENERALLY GOOD PRACTICE, NOT SPECIAL
FOR BANK-FINANCED PROJECTS
• INCORPORATED IN LOAN/CREDIT
AGREEMENT
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GUIDELINES CONTINUED
• THREE SECTIONS:
– I.
GENERAL
• POLICY
• APPLICABILITY
– II. INTERNATIONAL COMPETITIVE BIDDING
– III. OTHER METHODS OF PROCUREMENT
• FOUR APPENDIXES
–
–
–
–
1.
2.
3.
4.
BANK REVIEW PROCESS
DOMESTIC PREFERENCES
DISBURSEMENTS
GUIDANCE TO BIDDERS
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GUIDELINES CONTINUED
• GOODS AND WORKS FINANCED BY
THE BANK
• US$25 BILLION PER YEAR
• 40,000 CONTRACTS EACH YEAR IN
TOTAL
• MODEL FOR OTHER FINANCIAL
INSTITUTIONS:
– IADB, ADB, AfDB, EBRD AND OTHERS
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GUIDELINES CONTINUED
• EVOLUTION OF THE GUIDELINES
• 1951: INTERNATIONAL COMPETITIVE BIDDING (ICB)
INTRODUCED
– NO MEMBERSHIP RESTRICTIONS
• 1956: ONLY FROM MEMBER COUNTRIES (AND
SWITZERLAND)
• 1961: FIRST GUIDELINES FOR BANK STAFF
• 1964: FORMAL GUIDELINES PUBLISHED
• 1965: DOMESTIC PREFERENCE FOR GOODS
• 1972: REGIONAL PREFERENCE INTRODUCED
• 1974: DOMESTIC PREFERENCE FOR WORKS
• 1975: OTHER METHODS (NCB, LIB, ETC.)
• 1985: MAJ0R REVIEW BY THE BOARD
• 1995: LAST MAJ0R REVIEW BY THE BOARD
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APPLICABILITY OF GUIDELINES
– FOR CONTRACTS NOT FINANCED BY THE BANK
(BUT PART OF PROJECT) OTHER PROCUREMENT
PROCEDURES MAY BE USED PROVIDED GOODS
AND WORKS TO BE PROCURED:
• ARE OF SATISFACTORY QUALITY AND COMPATIBLE
WITH THE BALANCE OF THE PROJECT
• WILL BE DELIVERED AND COMPLETED IN A TIMELY
MANNER
• ARE PRICED SO AS NOT TO AFFECT ADVERSELY THE
ECONOMIC AND FINANCIAL VIABILITY OF THE
PROJECT
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ELIGIBILITY
– NATIONALS OF BANK MEMBER COUNTRIES,
EXCEPT:
• COUNTRY LAW PROHIBITS COMMERCIAL
RELATIONS
• COMPLIANCE WITH UN SECURITY COUNCIL
SANCTIONS PROHIBITS IMPORTS FROM THE
COUNTRY
• CONSULTING FIRMS HAVING PROVIDED SERVICES
FOR PROJECT PREPARATION OR IMPLEMENTATION
• PUBLIC SECTOR FIRMS, UNLESS THEY ARE
FINANCIALLY AUTONOMOUS AND OPERATE UNDER
COMMERCIAL LAW
• DEBARRED FIRMS FOUND GUILTY OF FRAUD OR
CORRUPTION
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SOURCES OF COFINANCING
•
•
•
•
•
MULTILATERAL BANKS
BILATERAL AGENCIES
EXPORT CREDIT AGENCIES
COMMERCIAL BANKS
PRIVATE SECTOR
INVESTORS
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COFINANCING (CONT.)
• JOINT FINANCING
– BANK PROCUREMENT RULES
– BANK SOMETIMES ADMINISTER
– INFREQUENTLY USED
• PARALLEL FINANCING
– SPECIFIC PROCUREMENT RULES APPLY
FOR EACH FINANCIER
– CONTRACTS FINANCED UNDER
SEPARATE LOAN AGREEMENTS
– FREQUENTLY USED
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CONSULTING GUIDELINES
• FIVE SECTIONS:
– I. INTRODUCTION
• GENERAL, POLICY, APPLICABILITY, CONFLICT OF
INTEREST, ELIGIBILITY, FRAUD AND CORRUPTION
– II. QUALITY- AND COST-BASED SELECTION
(QCBS)
– III. OTHER METHODS OF SELECTION
– IV. TYPES OF CONTRACTS AND IMPORTANT
PROVISIONS
– V. SELECTION OF INDIVIDUAL CONSULTANTS
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CONSULTING GUIDELINES
CONT.
• FOUR APPENDIXES:
– 1. BANK’S REVIEW PROCESS
– 2. INFORMATION TO CONSULTANTS
(ITC)
– 3. DISBURSEMENTS
– 4. GUIDANCE TO CONSULTANTS
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MODULE 3
PROCUREMENT PROCESS
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THE PROJECT CYCLE
IDENTIFICATION
PREPARATION
EVALUATION
APPRAISAL
IMPLEMENTATION
NEGOTIATIONS
BOARD PRESENTATION
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MODULE 4
ROLES AND RESPONSIBILITIES
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ROLES IN PROCUREMENT
PROCESS
WORLD BANK
COMPLAINTS
BORROWER
(GL APP. 4)
SUPPLIER
CONTRACTOR
CONSULTANT
PREQUALIFICATION DOCUMENTS
BIDDING DOCUMENTS
REQUEST FOR PROPOSALS
BIDS FOR GOODS AND WORKS
PRPOSALS FOR CONSULTING
SERVICES
CONTRACT(S)
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RESPONSIBILITIES OF BANK
– ASSISTS IN PROCUREMENT PLANNING
ACTIVITIES
– REVIEWS NOTIFICATION AND ADVERTIZING
– ENSURES THAT THE PROCESS IS CONSISTENT
WITH LOAN AGREEMENT AND GUIDELINES
– REVIEWS PROCUREMENT ACTIONS TO
ENSURE THAT THEY COVER GOODS, WORKS,
SERVICES, AND CONSULTANCIES FOR WHICH
FUNDS ARE BEING PROVIDED UNDER THE
PROJECT
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RESPONSIBILITIES OF BANK
CONTINUED
– REVIEWS REQUEST FOR PROPOSALS
AND SHORTLISTS OF CONSULTANTS
– REVIEWS PREQUALIFICATION AND
BIDDING DOCUMENTS
– REVIEWS BID AND PROPOSAL
EVALUATION REPORTS
– REVIEWS CONTRACTS
– VERIFIES WITHDRAWAL APPLICATIONS
BEFORE LOAN DISBURSEMENTS
– REVIEWS CONTRACT MODIFICATIONS
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RESPONSIBILITIES OF
BORROWER
– APPOINTS PROJECT IMPLEMENTATION UNIT
(USUALLY) TO EXECUTE THE PROJECT
– PERFORMS PLANNING ACTIVITIES
– NOTIFIES POTENTIAL BIDDERS OF BIDDING
OPPORTUNITIES
– PREPARES PREQUALIFICATION, BIDDING
DOCUMENTS, AND REQUEST FOR PROPOSALS
– RECEIVES AND EVALUATES BIDS AND
PROPOSALS
– AWARDS CONTRACTS
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– IMPLEMENTS CONTRACTS
RESPONSIBILITIES OF
CONTRACTOR
– OBTAINS THE BIDDING DOCUMENTS
– SUBMIT BIDS AND PROPOSALS IN
ACCORDANCE WITH REQUIRED
DOCUMENTS
– SUPPLIES GOODS OR CONSTRUCTS WORKS
ACCORDING TO THE CONTRACT
– PROVIDES THE SERVICES OR CONSULTING
SERVICES ACCORDING TO THE CONTRACT
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MODULE 5
SELECTION OF
CONSULTANTS
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TWO TYPES OF
PROCUREMENT
• GOODS AND
WORKS.
– PRODUCT BASED
– OPEN COMPETITION
– PRICE IS THE MAJOR
CRITERION
– PUBLIC OPENING OF
BIDS
• CONSULTING SERVICES
– KNOWLEDGE BASED
– SHORTLISTS
– PRICE PLAYS MINOR
ROLE
– NON-PUBLIC OPENING
OF TECHNICAL
PROPOSAL
– PUBLIC OPENING OF
FINANCIAL PROPOSALS
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TWO TYPES OF
PROCUREMENT (CONT.)
• GOODS AND WORKS
• CONSULTING SERVICES
– DETAILED
SPECIFICATIONS
– SINGLE STAGE
PROCEDURE NORMALLY
– NEGOTIATIONS ONLY
EXCEPTIONALLY
– TERMS OF REFERENCE
(GENERAL WORK
PROGRAM)
– TWO-STAGE PROCEDURE
– NEGOTIATIONS NORMALLY
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OBJECTIVES OF SELECTION
• OBTAIN HIGH QUALITY SERVICE
• ENSURE ECONOMY AND EFFICIENCY
• PROVIDE EQUAL OPPORTUNITY FOR
QUALIFIED CONSULTANTS
• ENCOURAGE DEVELOPMENT OF
LOCAL CONSULTING CAPABILITIES
• TRANSPARENCY IN THE SELECTION
PROCESS
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TYPES OF CONSULTING
SERVICES
•
•
•
•
PRE-INVESTMENT
PROJECT PREPARATION
IMPLEMENTATION
TECHNICAL ASSISTANCE
36
PRE-INVESTMENT
• COUNTRY AND SECTOR STUDIES
• FEASIBILITY STUDIES
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PROJECT PREPARATION
• DETAILED STUDIES
• DESIGN AND SPECIFICATIONS
• PREPARATION OF BIDDING
DOCUMENTS
38
IMPLEMENTATION
•
•
•
•
•
PROCUREMENT
PROJECT MANAGEMENT
CONSTRUCTION AND INSPECTION
INFORMATION SYSTEMS
ACCOUNTING AND AUDITING
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TECHNICAL ASSISTANCE
• ADVISORY SERVICES
• INSTITUTION & MANAGEMENT
ANALYSIS
• CAPACITY BUILDING
• STUDIES
• TRAINING
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TYPES OF CONSULTANTS
• PRIVATE SECTOR
•
•
•
•
INDIVIDUAL
PARTNERSHIP
LIMITED LIABILITY (CORPORATION)
JOINT VENTURE
• PUBLIC SECTOR
• GOVERNMENT-OWNED
• GOVERNMENT-SUBSIDIZED
• OTHER
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OTHER TYPES OF
CONSULTANTS
•
•
•
•
UNIVERSITIES
RESEARCH INSTITUTES
UNITED NATIONS AGENCIES
NON-GOVERNMENT ORGANIZATIONS
(NGO)
• DIVISIONS/AFFILIATES OF
MANUFACTURERS/CONTRACTORS/
UTILITIES
42
OTHER TYPES OF
CONSULTANTS CONT.
•
•
•
•
•
PROCUREMENT AGENTS
INSPECTION AGENTS
BANKS
AUDITORS
SERVICE DELIVERY CONTRACTORS
43
TYPES OF CONTRACTS
• LUMP-SUM
• SIMPLE PLANNING AND FEASIBILITY STUDIES,
ENVIRONMENTAL STUDIES, ETC. CONTENTS,
DURATION, AND OUTPUT CLEARLY DEFINED.
PAYMENTS LINKED TO OUTPUTS ONLY.
• TIME-BASED
• PLANNING, FEASIBILITY STUDIES, DETAILED
ENGINEERING, SUPERVISION, TECHNICAL
ASSISTANCE. PAYMENTS LINKED TO INPUTS,
AGREED STAFF RATES AND REIMBURSABLE ITEMS.
• WORLD BANK HAS ISSUED STANDARD
FORMS OF CONTRACT FOR THESE TWO
TYPES OF CONTRACTS.
44
TYPES OF CONTRACTS CONT.
• SUCCESS FEE CONTRACTS
• CONSULTANTS (BANKS OR FINANCIAL FIRMS) FOR
PRIVATIZATION OPERATIONS; PREPARES COMPANIES
FOR SALE OR MERGERS OF FIRMS; RETAINER AND
SUCCESS FEE (AS A PERCENTAGE OF SALE PRICE OF
THE ASSETS)
• PERCENTAGE CONTRACTS
• ARCHITECTURAL SERVICES, AND PROCUREMENT
AND INSPECTION AGENTS. SIMILAR TO LUMP-SUM
CONTRACTS, NO MATCHING OF INPUTS TO
PAYMENTS, OPEN-ENDED, NOT RECOMMENDED
EXCEPT IF BASED ON PERCENTAGE OF FIXED TARGET
COST
45
TYPES OF CONTRACTS
CONT.
• INDEFINITE DELIVERY CONTRACTS
• SPECIALIZED SERVICES “ON CALL,” TO RETAIN
ADVISERS FOR IMPLEMENTATION OF COMPLEX
PROJECTS (DAM PANEL, ADJUDICATORS,
PROCUREMENT ADVICE, TECHNICAL
TROUBLESHOOTING); AGREED UNIT RATES FOR
EXPERTS WITH PAYMENTS BASED ON TIME
ACTUALLY USED
46
FINANCING OF
CONSULTANTS
• WORLD BANK
– INSTITUTIONAL DEVELOPMENT FUND
– ONGOING LOANS/CREDITS (PIGGYBACK)
– RETROACTIVE FINANCING
– PROJECT PREPARATION FACILITY
– TECHNICAL ASSISTANCE LOAN
– ADMINISTRATIVE BUDGET
47
FINANCING CONT.
• OTHER SOURCES
– UNDP (WORLD BANK EXECUTED)
– BILATERAL/MULTILATERAL SOURCES
– JAPAN’S POLICY AND HUMAN
RESOURCES DEVELOPMENT FUND
– TRUST FUNDS (WORLD BANK
EXECUTED)
– GLOBAL ENVIRONMENT FACILITY
48
SELECTION METHODS
• QUALITY- AND COST-BASED SELECTION
(QCBS)
• PREFERRED METHOD, SIMILAR TO ICB FOR
GOODS AND WORKS.
• TECHNICAL AND FINANCIAL PROPOSALS IN
SEPARATE ENVELOPES.
• FINANCIAL PROPOSALS SHALL REMAIN SEALED
WITH INDEPENDENT AUTHORITY
• TECHNICAL EVALUATION (QUALITY) FIRST
(BANK NO OBJECTION MANDATORY)
• PUBLIC OPENING OF FINANCIAL PROPOSALS
• COMBINED EVALUATION BASED ON WEIGTHED
FORMULA
49
SELECTION METHODS cont.
• QUALITY BASED SELECTION (QBS)
• TECHNICAL PROPOSAL ONLY OR BOTH IN
SEPARATE ENVELOPES
• TECHNICAL EVALUATION (QUALITY)
• FINANCIAL EVALUATION ONLY OF FIRM
WITH HIGHEST TECHNICAL SCORE
50
SELECTION METHODS cont.
• SELECTION UNDER FIXED BUDGET
(SFB)
• FINANCIAL PROPOSALS TO BE WITHIN
SPECIFIED FIXED BUDGET
• TECHNICAL AND FINANCIAL PROPOSALS IN
TWO SEPARATE ENVELOPES
• TECHNICAL EVALUATION (QUALITY) FIRST
(BANK NO OBJECTION MANDATORY)
• PUBLIC OPENING OF FINANCIAL PROPOSALS
• REJECTION OF PROPOSALS EXCEEDING FIXED
BUDGET
• HIGHEST RATED TECHNICAL PROPOSAL
(WITHIN FIXED BUDGET) SELECTED
51
SELECTION METHODS cont.
• LEAST COST SELECTION (LCS)
• SMALL ASSIGNMENTS ONLY (<$200,000)
• TECHNICAL AND FINANCIAL PROPOSALS
IN TWO SEPARATE ENVELOPES
• TECHNICAL PROPOSALS MUST ACHIEVE
SPECIFIC MINIMUM SCORE OR THEY ARE
REJECTED
• FINANCIAL PROPOSALS OF SUCCESSFUL
FIRMS OPENED IN PUBLIC
• LOWEST PRICE PROPOSAL SELECTED
52
SELECTION METHODS cont.
• SELECTION BASED ON CONSULTANTS’
QUALIFICATIONS (SBCQ)
• VERY SMALL ASSIGNMENTS ONLY (<$100,000)
• REQUEST FOR EXPRESSIONS OF INTEREST
• EVALUATION OF EACH FIRM’S EXPERIENCE AND
COMPETENCE
• SELECTION OF THE MOST APPROPRIATE FIRM
• SELECTED FIRM TO SUBMIT TECHNICAL AND
FINANCIAL PROPOSAL
53
SELECTION METHODS cont.
• SINGLE SOURCE SELECTION (SSS)
• NATURAL CONTINUATION OF PREVIOUS
WORK BY FIRM
• RAPID SELECTION ESSENTIAL
• VERY SMALL ASSIGNMENT (<$100,000)
• FIRM HAS UNIQUE QUALIFICATIONS OR
EXPERIENCE OF EXCEPTIONAL WORTH
• BANK REVIEWS/APPROVES SOLE-SOURCE
REQUEST
• BORROWER SOLICITS TECHNICAL/FINANCIAL
PROPOSAL
54
COMPETITIVE SELECTION
• CONSIDERATIONS
• COMPLEXITY
• ASSIGNMENT IMPACT
• COMPARABILITY
• COMPETITION ON QUALITY (QBS)
• TECHNICAL EVALUATION ONLY
• NEGOTIATIONS ON PRICE
• PRICE AS A FACTOR
55
COMPETITIVE SELECTION
CONTINUED
• PRICE AS A FACTOR (QCBS, FIXED
BUDGET, LEAST COST)
– TECHNICAL EVALUATION F IRST
– PRICE AS A FACTOR SECOND
– NEGOTIATIONS LIMITED TO INPUTS
(FROM CONSULTANTS AND CLIENT)
56
SELECTION STEPS
• 1. PREPARE TERMS OF REFERENCE
• 2. ESTIMATE COST (BUDGET)
• 3. ADVERTIZE FOR EXPRESSIONS OF
INTEREST (>$200,000)
• 4. PREPARE SHORTLIST
• 5. DETERMINE/CONFIRM SELECTION
PROCEDURE
57
SELECTION STEPS CONT.
• 6. PREPARE AND ISSUE REQUEST FOR
PROPOSALS, INCLUDING
– LETTER OF INVITATION (LOI)
– EVALUATION CRITERIA
– PROPOSED CONTRACT
• 7. EVALUATE TECHNICAL PROPOSALS
• 8. OBTAIN BANK’S NO OBJECTION IF
REQUIRED (PRIOR REVIEW)
• 9. OPEN AND EVALUATE FINANCIAL
PROPOSALS
58
SELECTION STEPS CONT.
• 10. OBTAIN BANK’S NO OBJECTION TO
COMBINED EVALUATION
• 11. NEGOTIATE AND SIGN CONTRACT
• 12. NOTIFY UNSUCCESSFUL FIRMS
59
SHORTLIST PREPARATION
• SOURCES
–
–
–
–
–
EXPRESSIONS OF INTEREST
BORROWER’S KNOWLEDGE/EXPERIENCE
TRADE REPRESENTATIVES
PROFESSIONAL ASSOCIATIONS
BANK REFERENCES THROUGH DACON
SYSTEM
– EXCEPTIONALLY, BANK WILL PROVIDE
SHORTLIST OR LONG LIST
60
SHORTLIST PREPARATION
CONT.
• MANDATORY REQUIREMENTS:
– FROM THREE TO SIX FIRMS
– NO MORE THAN TWO FIRMS FROM ONE
COUNTRY
– AT LEAST ONE FIRM FROM A DEVELOPING
COUNTRY (IF AVAILABLE)
– MAY COMPRISE ONLY NATIONAL CONSULTANTS
(SMALL ASSIGNMENTS)
61
REQUEST FOR PROPOSAL
• CONTENTS
– LETTER OF INVITATION
– INFORMATION TO CONSULTANTS
(INCLUDING DATA SHEET)
– STANDARD FORMS
– TERMS OF REFERENCE (TOR)
– PROPOSED CONTRACT
62
TECHNICAL EVALUATION
• GENERAL AND SPECIFIC EXPERIENCE OF
FIRM (5 - 10%)
• METHODOLOGY AND APPROACH
(20 - 50%)
• QUALIFICATIONS OF KEY STAFF
(30 - 60%)
• TRANSFER OF KNOWLEDGE (0-10%)
• PARTICIPATION BY NATIONALS (0-10%)
• TOTAL OF POINTS MUST EQUAL 100
63
TECHNICAL EVALUATION
CONT.
• GENERAL AND SPECIFIC
EXPERIENCE OF FIRM (5 - 10%)
–
–
–
–
–
RELEVANT ASSIGNMENTS
SIMILAR SIZE
COMPLEXITY
TECHNOLOGY
ENVIRONMENT
64
TECHNICAL EVALUATION
CONT.
• METHODOLOGY AND APPROACH (20
- 50%)
–
–
–
–
–
–
SCHEDULES
RESPONSIVENESS TO TOR
LOGISTICS
SKILLS TRANSFER
BACKSTOPPING
INNOVATIVENESS
65
TECHNICAL EVALUATION cont.
• QUALIFICATIONS OF KEY STAFF
(30 - 60 %)
–
–
–
–
–
–
–
TEAM COMPOSITION
PROFESSIONAL QUALIFICATIONS
SUITABILITY
LOCAL KNOWLEDGE
LANGUAGE
TRAINING EXPERIENCE
PERMANENT STAFF
66
TECHNICAL EVALUATION
CONT.
• TRANSFER OF KNOWLEDGE (0 - 10%)
– IF TRANSFER OF KNOWLEDGE IS THE
MAIN OBJECTIVE OF THE ASSIGNMENT, IT
SHOULD BE GIVEN HIGHER WEIGHT
– IF TRANSFER OF KNOWLEDGE (TRAINING)
IS A FACTOR IN EVALUATION, TOR
SHOULD CLEARLY SPECIFY THE
REQUIREMENTS (TOPICS, NUMBER OF
TRAINEES, TRAINING METHODS, BASIS
FOR EVALUATION, ETC.)
67
TECHNICAL EVALUATION
CONT.
• PARTICIPATION OF NATIONALS (0 -10%)
– ONLY KEY STAFF TO BE EVALUATED
– BASED ON NUMBER OF NATIONALS AMONG
KEY STAFF PRESENTED BY FOREIGN AND
NATIONAL FIRMS
– WEIGHT TO BE GIVEN PROPORTIONATELY
TO RATIO OF LOCAL/FOREIGN KEY STAFF,
OR OTHER SUBCRITERIA AS STIPULATED IN
DATA SHEET
68
FINANCIAL EVALUATION
• NOTIFY UNSUCCESSFUL FIRMS
• PUBLIC OPENING OF FINANCIAL
PROPOSALS OF SUCCESSFUL FIRMS
• EXCLUDE LOCAL TAXES, IF APPLICABLE,
BUT INCLUDE REIMBURSABLE EXPENSES
• LOWEST PRICE SCORES 100%, OTHERS
INVERSELY PROPORTIONAL TO THEIR
PRICES
• COMBINE TECH. AND FIN. EVALUATION 10
TO 20 % WEIGHT TO PRICE
69
INDIVIDUAL CONSULTANTS
• USE WHEN
– TEAMS ARE NOT REQUIRED
– NO OUTSIDE SUPPORT NEEDED
(BACKSTOPPING)
– INDIVIDUAL EXPERIENCE AND
QUALIFICATIONS PARAMOUNT
70
INDIVIDUAL CONSULTANTS
CONT.
• SELECTION
– LESS FORMAL THAN HIRING FIRMS
– NO SHORTLISTING NEEDED
• ADVERTISEMENT
• REFERENCES
• DIRECT APPROACH
71
INDIVIDUAL CONSULTANTS
CONT.
• BANK REVIEW
– TERMS OF REFERENCE
– QUALIFICATIONS OF CONSULTANT
– CONDITIONS OF EMPLOYMENT
• REMUNERATION
• SIMPLE CONTRACT
• WORK ENVIRONMENT
72
DATA ON CONSULTANTS
DACON
• REGISTRATION NOT A PREREQUISITE
FOR BANK-FINANCED ASSIGNMENTS
• PURPOSE
– LISTS QUALIFICATIONS OF CONSULTING
FIRMS
– PROVIDES BASIS FOR LONG/SHORTLIST
AT REQUEST OF BORROWER
73
• PURPOSE CONT.
– PROVIDE INFORMATION TO GOVERNMENTS,
BORROWERS, EXECUTIVE DIRECTORS AND
MANAGEMENT
• AVAILABLE TO
–
–
–
–
MEMBER GOVERNMENTS
BORROWERS
BANK STAFF
INTERNATIONAL FINANCING INSTITUTIONS
• PERFORMANCE EVALUATION FILE
74
ROLE OF THE WORLD BANK
• HELP PREPARE AND APPRAISE
ASSIGNMENT
• PRIOR REVIEW AND NO OBJECTION:
–
–
–
–
–
–
–
TERMS OF REFERENCE
BUDGET
SELECTION PROCESS
LETTER OF INVITATION
EVALUATION CRITERIA
DRAFT CONTRACT
SHORTLIST (OR PREPARATION THEREOF)
75
ROLE OF THE WORLD BANK
CONT.
• PRIOR REVIEW CONT.
–
–
–
–
TECHNICAL EVALUATION REPORT
FINAL EVALUATION REPORT (FINANCIAL)
WINNING (OR SINGLE) PROPOSAL
DRAFT FINAL CONTRACT
• SUPERVISE ASSIGNMENT
• EVALUATE PERFORMANCE OF
CONSULTANTS
76
MODULE 6
PROCUREMENT METHODS
77
OVERALL BANK POLICY
– NEED FOR ECONOMY AND EFFICIENCY
– GIVE ALL ELIGIBLE BIDDERS OPPORTUNITY TO
COMPETE
– ENCOURAGE DEVELOPMENT OF LOCAL
INDUSTRIES IN BORROWING COUNTRY
– IMPORTANCE OF TRANSPARENCY IN THE
PROCUREMENT PROCESS
– USE INTERNATIONAL COMPETITIVE BIDDING
(ICB) WHENEVER APPROPRIATE
78
PROCUREMENT METHODS
• PREFERRED METHOD: ICB
– OPEN TO ALL ELIGIBLE BIDDERS WITH
AN ALLOWANCE FOR DOMESTIC
PREFERENCE
• OTHER METHODS
– ONLY WHEN ICB IS NOT APPROPRIATE
OR PRACTICAL
79
ICB
• ADEQUATE NOTIFICATION
• EQUAL OPPORTUNITY
– TIME FOR BID SUBMISSION
– FAIR CONDITIONS OF CONTRACT
– BROAD SPECIFICATIONS
• EQUAL TREATMENT OF BIDDERS
– DISCLOSE EVALUATION CRITERIA
– APPLY WITHOUT DISCRIMINATION
– PUBLIC BID OPENING
• AWARD TO LOWEST EVALUATED BID
80
OTHER METHODS THAN ICB
• IF OTHER METHODS ARE USED:
– MUST SATISFY ECONOMY AND
EFFICIENCY REQUIREMENT
– PROVIDE COMPETITION TO THE EXTENT
POSSIBLE
– GET THE BEST VALUE FOR MONEY
(PRICES REASONABLE?)
– ENSURE TRANSPARENCY
81
OTHER METHODS OF
PROCUREMENT
• LIMITED INTERNATIONAL BIDDING (LIB)*
• NATIONAL COMPETITIVE BIDDING (NCB)*
• SHOPPING (INTERNATIONAL AND
NATIONAL)*
• DIRECT CONTRACTING*
• FORCE ACCOUNT*
• COMMODITY MARKETS
• UN AGENCIES (UNICEF, ILO, WHO)*
82
OTHER METHODS CONTINUED
• PROCUREMENT AGENTS
• INSPECTION AGENTS
• COMMERCIAL PRACTICES
– LOANS TO FINANCIAL INTERMEDIARIES
• BOT AND SIMILAR PRIVATE SECTOR
ARRANGEMENTS
• BANK GUARANTEED LOANS
• COMMUNITY PARTICIPATION*
83
LIB
• SAME RULES AND DOCUMENTS AS
ICB BUT NO ADVERTIZING
• CONTRACT VALUES ARE SMALL
• NUMBER OF SUPPLIERS LIMITED
• EXCEPTIONAL REASONS
• DOMESTIC PREFERENCE NOT
APPLICABLE
84
NCB
• WORLD BANK POLICY APPLIED TO NCB
PROCEDURES (KEY POINTS):
– ADVERTIZED IN NATIONAL PRESS
– AT LEAST 30 DAYS BID PREPARATION
– JOINT VENTURES FOREIGN/LOCAL FIRMS
CANNOT BE MANDATED
– NUMBER OF FIRMS TO SUBMIT BIDS
CANNOT BE LIMITED
– NO MANDATORY PRIOR REGISTRATION
REQUIREMENTS FOR FOREIGN FIRMS
85
NCB cont.
• NO RESTRICTIONS ON SOURCES OF LABOR AND
MATERIALS (EXCEPT UNSKILLED LABOR)
• NO PREFERENCE FOR NATIONAL OR LOCAL
BIDDERS
• PUBLIC BID OPENING, IMMEDIATELY AFTER BID
SUBMISSION
• TWO-ENVELOPE BIDDING NOT ALLOWED
• BRACKETING NOT ALLOWED
• AWARD TO LOWEST EVALUATED BIDDER (LEB)
• NO PRICE NEGOTIATIONS WITH LEB
86
SHOPPING
– LOW CONTRACT VALUE FOR OFF-THE-SHELF
GOODS
– QUOTATIONS OBTAINED FROM AT LEAST 3
SUPPLIERS
– REQUEST SHALL INDICATE
• DESCRIPTION AND QUANTITY OF GOODS
• DELIVERY TIME AND PLACE
– NATIONAL SHOPPING WHEN GOODS
AVAILABLE LOCALLY AT COMPETITIVE
PRICES
– INTERNATIONAL SHOPPING: AT LEAST 3
BIDS FROM 2 COUNTRIES
87
DIRECT CONTRACTING
• NO COMPETITION: SINGLE SOURCE
• CONTRACT EXTENSIONS
• STANDARDIZATION OF EQUIPMENT
OR SPARE PARTS
• PROPRIETARY EQUIPMENT
• CRITICAL ITEMS RELATED TO
PERFORMANCE GUARANTEE
• EXCEPTIONAL CIRCUMSTANCES
88
FORCE ACCOUNT
– USE OF BORROWER’S OWN PERSONNEL AND
EQUIPMENT TO CONSTRUCT SOME KINDS OF
CIVIL WORKS
– QUANTITIES CANNOT BE DEFINED IN ADVANCE
– WORKS ARE SMALL AND SCATTERED IN
REMOTE LOCATIONS
– INTERRUPTIONS OF ONGOING WORK NOT
ACCEPTABLE
– RISK OF INTERRUPTIONS TO BE BORNE BY
BORROWER
– EMERGENCIES
89
PROCUREMENT FROM
UN AGENCIES
• UN AGENCIES ACTING AS SUPPLIERS
• UNDP’S INTER-AGENCY
PROCUREMENT SERVICE OFFICE
(IAPSO)
• USING THEIR OWN PROCEDURES
• SMALL QUANTITIES
• OFF-THE-SHELF GOODS
90
COMMUNITY PARTICIPATION
• PARTICIPATION OF LOCAL
COMMUNITIES AND/OR NGOs
• INCREASE UTILIZATION OF LOCAL
KNOW-HOW AND MATERIALS
• LABOR-INTENSIVE TECHNOLOGY
• PROJECT SUSTAINABILITY
• SPECIFIC SOCIAL OBJECTIVES
• PROVIDED PROCUREMENT EFFICIENT
91
CHANGE OF PROCUREMENT
METHOD
• IF BORROWER WISHES TO USE ANOTHER
PROCUREMENT METHOD THAN THE ONE
AGREED:
– SEND REQUEST WITH JUSTIFICATION IN
WRITING TO THE BANK FOR NO OBJECTION
– EXPLAIN WHETHER ONE-OFF WAIVER OR
LOAN AGREEMENT MODIFICATION IS SOUGHT
(FOR MULTIPLE CASES)
• USE OF PROCUREMENT METHOD NOT
AGREED WITH THE BANK MIGHT LEAD TO
MISPROCUREMENT
92
MODULE 7
BIDDING DOCUMENTS
93
BIDDING DOCUMENTS
• PURPOSE:
–
–
–
–
–
–
EQUAL INFORMATION TO ALL BIDDERS
WHAT IS TO BE PROCURED
TECHNICAL REQUIREMENTS
HOW TO PREPARE A RESPONSIVE BID
EVALUATION CRITERIA
FORM OF CONTRACT
94
BIDDING DOCUMENTS
• IMPACT OF POORLY DRAFTED
DOCUMENTS:
–
–
–
–
–
–
COMPLAINTS FROM BIDDERS
SELECTION OF POORLY QUALIFIED FIRM
DELAYS IN PROJECT IMPLEMENTATION
DELAYS IN DISBURSEMENTS
LACK OF CREDIBILITY OF INSTITUTIONS
MISPROCUREMENT
95
BIDDING DOCUMENTS
• WHEN TO BEGIN PREPARING
DOCUMENTS:
– AS EARLY AS POSSIBLE
– ADEQUATE TIME FOR BANK TO REVIEW
– TIMELY DISPATCH OF DOCUMENTS TO
BIDDERS
96
STANDARD BIDDING DOCUMENTS
• WHY STANDARD BIDDING DOCUMENTS:
–
–
–
–
MANDATORY FOR ICB
PROVIDE CONSISTENCY
AVOID MISTAKES AND OMISSIONS
ONLY MINIMUM CHANGES (WITH BANK NO
OBJECTION) TO REFLECT COUNTRY- AND
PROJECT-SPECIFIC ISSUES
– AND ONLY THROUGH BID DATA SHEET AND
SPECIAL CONDITIONS
• IF NO STANDARD DOCUMENTS, USE OTHER
INTERNATIONALLY RECOGNIZED
STANDARD CONDITIONS OF CONTRACT97
MAIN SECTIONS OF BIDDING DOCUMENTS
PROCUREMENT OF GOODS
• I. INVITATION FOR BIDS
• II. INSTRUCTIONS TO BIDDERS [NO CHANGES]
• III. BID DATA SHEET
• IV. GENERAL CONDITIONS OF CONTRACT [NO
CHANGES]
• V. SPECIAL CONDITIONS OF CONTRACT
• VI. SCHEDULE OF REQUIREMENTS
• VII. TECHNICAL SPECIFICATIONS
• VIII. SAMPLE FORMS
• IX. ELIGIBLE SOURCE COUNTRIES
98
HARMONIZED BIDDING DOCUMENT(S)
PROCUREMENT OF GOODS & USER’S GUIDE
• PART 1 - BIDDING PROCEDURES
–
–
–
–
I. INSTRUCTIONS TO BIDDERS
II. BID DATA SHEET
III. EVALUATION AND QUALIFICATION CRITERIA
IV. BIDDING FORMS
» BID SUBMISSION SHEET
» PRICE SCHEDULES
» MANUFACTURERS AUTHORIZATION
– V. ELIGIBLE COUNTRIES
• PART 2 - SUPPLY REQUIREMENTS
– VI. SCHEDULE OF SUPPLY
• PART 3 - CONTRACT
– VII. GENERAL CONDITIONS OF CONTRACT
– VIII. SPECIAL CONDITIONS OF CONTRACT
– IX. CONTRACT FORMS
99
MAIN SECTIONS OF BIDDING DOCUMENTS
PROCUREMENT OF WORKS
•
•
•
•
•
•
•
•
I.
II.
III.
IV.
INVITATION FOR BIDS
INSTRUCTIONS TO BIDDERS [NO CHANGES]
BIDDING DATA
PART 1. GENERAL CONDITIONS OF CONTRACT
[NO CHANGES]
V. PART 2. CONDITIONS OF PARTICULAR
APPLICATION
VI. TECHNICAL SPECIFICATIONS
VII.
FORM OF BID, APPENDIX TO BID, AND
BID
SECURITY
VIII.
BILL OF QUANTITIES
100
MAIN SECTIONS OF BIDDING DOCUMENTS
PROCUREMENT OF WORKS (CONT.)
• IX.
•
•
•
•
•
FORM OF AGREEMENT, FORMS OF
PERFORMANCE SECURITY AND BANK
GUARANTEE FOR ADVANCE PAYMENT
X. DRAWINGS
XI. EXPLANATORY NOTES
XII. POSTQUALIFICATION
XIII.
DISPUTES RESOLUTION PROCEDURE
XIV. ELIGIBILITY FOR THE PROVISION OF
GOODS, WORKS, AND SERVICES IN
BANK-FINANCED PROCUREMENT
101
MAIN SECTIONS OF BIDDING DOCUMENTS
PROCUREMENT OF SMALLER WORKS
• 1. INVITATION FOR BIDS
• 2. INSTRUCTIONS TO BIDDERS [NO CHANGES]
• 3. FORMS OF BIDS, QUALIFICATION
INFORMATION, LETTER OF
ACCEPTANCE, AND AGREEMENT
• 4. CONDITIONS OF CONTRACT [NO CHANGES]
• 5. CONTRACT DATA
• 6. SPECIFICATIONS
• 7. BILL OF QUANTITIES
• 8. SECURITY FORMS
102
PRICE ADJUSTMENT
– BIDDING DOCUMENTS SHALL STATE EITHER
THAT
• BID PRICES WILL BE FIXED, OR
• PRICE ADJUSTMENTS WILL BE MADE TO
REFLECT CHANGES IN MAJOR COST
COMPONENTS OF THE CONTRACT
– NOT NECESSARY IN SIMPLE CONTRACTS
– MANDATORY IF CONTRACT EXCEEDS 18
MONTHS
• EXCEPTION: COMMERCIAL PRACTICE IS TO
OBTAIN FIXED PRICES FOR SOME TYPES OF
EQUIPMENT REGARDLESS OF DELIVERY TIME
103
PRICE ADJUSTMENT (CONT.)
– METHODS OF PRICE ADJUSTMENT:
• USE OF FORMULA WHEN INDICES AVAILABLE
• DOCUMENTARY EVIDENCE WHEN NO INDICES
(DISCOURAGED)
– PRICE ADJUSTMENT: BOTH WAYS, TO REFLECT
RISE OR FALL IN COSTP OF LABOR, MATERIALS,
EQUIPMENT, AND OTHER INPUTS
– PRICE ADJUSTMENT FORMULA:
0
Ln
Mn
En
Pn = a + b---- + c---- + d---- + etc.
Lo
Mo
Eo
104
PRICE ADJUSTMENT (CONT.)
• Pn IS A PRICE ADJUSTMENT FACTOR
• “a” IS A CONSTANT REPRESENTING THE
NONADJUSTABLE PORTION OF CONTRACTUAL
PAYMENTS
• “b,” ”c,” ”d,” ETC. ARE WEIGHTINGS REPRESENTING
PROPORTION OF EACH COST ELEMENT (LABOR,
MATERIALS, EQUIPMENT, ETC.)
• Ln, Mn, En, ETC. ARE CURRENT COST INDICES FOR
MONTH “n”
• Lo, Mo, Eo, ETC. ARE BASE COST INDICES
CORRESPONDING TO THE ABOVE COST ELEMENTS
• SUM OF “a,” “b,” “c,” “d,” ETC. SHALL BE EQUAL TO 1.0
105
Price Adjustment (Cont.)
• FAMILIES OF FORMULAE MAY BE NECESSARY FOR
CONTRACTS INVOLVING VARIOUS CURRENCIES, OR
FOR COMPLEX WORKS INVOLVING SEVERAL TYPES
OF CONSTRUCTION WORK
• INDICES TO BE SUBMITTED BY MAJOR WORKS
CONTRACTOR WITH HIS BID AND APPROVED BY
ENGINEER
• IF PAYMENT MADE IN CURRENCY OTHER THAN THE
SOURCE OF INDEX, AN ADJUSTMENT FACTOR SHALL
BE APPLIED
• MINIMUM/MAXIMUM THRESHOLDS (GOODS)
• PRICE ADJUSTMENT IS NOT USED IN BID EVALUATION
• IF BIDDER INCLUDES A PRICE ADJUSTMENT CLAUSE
IN A FIXED PRICE CONTRACT IT WILL RESULT IN BID
106
BEING REJECTED
REVIEW BY BANK
GOODS AND WORKS
• PRIOR REVIEW
– THRESHOLDS STIPULATED IN LOAN
AGREEMENT
– ADVERTIZING PROCEDURES
– PREQUALIFICATION DOCUMENTS AND
EVALUATION METHODOLOGY
– LIST OF QUALIFIED BIDDERS
– BIDDING DOCUMENTS
– BID EVALUATION REPORT
107
REVIEW BY BANK
GOODS AND WORKS
(CONT.)
– REQUEST FOR EXTENSION OF BID
VALIDITY PERIOD
– CONTRACT MODIFICATION IF MORE THAN
15% OF ORIGINAL CONTRACT PRICE
• POST REVIEW
– PROCUREMENT DOCUMENTATION NOT
SUBJECT TO PRIOR REVIEW.
– RANDOM SAMPLING DURING
SUPERVISION OF THE PROJECT
108
MODULE 8
BID EVALUATION
109
BID OPENING
• PUBLIC OPENING, RATIONALE AND MERITS
• MINUTES, TO BE RECORDED AND SIGNED
• SINGLE STAGE (ONE ENVELOPE)
–
–
–
–
BID FORM
TECHNICAL DATA
BID PRICE SCHEDULE
BID SECURITY
• SINGLE STAGE (TWO ENVELOPES)
– NOT PERMITTED IN BANK-FINANCED PROCUREMENT
110
BID OPENING continued
• TWO-STAGE BIDDING
– TYPES OF PROJECTS
•
•
•
•
INDUSTRIAL PROJECTS
COMPLEX EQUIPMENT
PROJECTS WITH DIFFERENT TECHNICAL SOLUTIONS
COMPUTER AND COMMUNICATIONS SYSTEMS
– FIRST STAGE
• INVITE TECHNICAL PROPOSALS
• DISCUSS AND FINALIZE TECHNICAL SPECS AND
COMMERCIAL CONDITIONS
– SECOND STAGE
• INVITE PRICED BIDS ON REVISED SPECS
111
BID EXAMINATION
• CLARIFICATION
•
•
•
•
ALWAYS IN WRITING
PERMISSIBLE AND WARRANTED
CLARIFICATION MEETINGS NOT PERMITTED
CANNOT CHANGE SUBSTANCE OF BID OR
PRICE
• CONFIDENTIALITY
• IMPORTANT
112
BID EXAMINATION continued
• EXAMINATION OF BIDS
•
•
•
•
•
IS BID COMPLETE? ... AND SIGNED?
IS BID SECURITY ATTACHED IF REQUIRED?
COMPUTATIONAL ERRORS
MAJOR DEVIATIONS FROM BID CONDITIONS
TECHNICAL SCRUTINY - SUBSTANTIAL
RESPONSIVENESS
• DETAILED EVALUATION ONLY FOR
SUBSTANTIALLY RESPONSIVE BIDS
113
BID EXAMINATION continued
• MAJOR DEVIATION:
– SCOPE, QUALITY AND PERFORMANCE
AFFECTED
– EMPLOYER’S RIGHTS OR SUPPLIER’S
OBLIGATIONS LIMITED IN
SUBSTANTIAL WAY
– RECTIFICATION WOULD UNFAIRLY
AFFECT RANKING OF OTHER
SUBSTANTIALLY RESPONSIVE BIDS
114
BID EXAMINATION continued
• DEVIATIONS FROM CRITICAL PROVISIONS:
–
–
–
–
–
–
–
BID SECURITY
APPLICABLE LAW
TAXES AND DUTIES
DEFECT LIABILITY
FUNCTIONAL GUARANTEES
PATENT AND INDEMNITY
LIMITATION OF LIABILITY
115
BID EXAMINATION continued
• EXAMPLES OF MAJOR DEVIATIONS:
• STIPULATING PRICE ADJUSTMENT WHEN FIXED
PRICE BIDS WERE INVITED;
• NON-RESPONSIVE TO TECHNICAL SPECIFICATIONS
OFFERING DIFFERENT DESIGN OR PRODUCT,
WITHOUT SUBSTANTIAL EQUIVALENCE
(PERFORMANCE PARAMETERS)
• NOT CONFORMING TO CRITICAL DATES (START-UP,
DELIVERY, INSTALLATION OR CONSTRUCTION
SCHEDULE)
• SUBCONTRACTING IN SUBSTANTIALLY DIFFERENT
AMOUNT AND MANNER THAN THAT PERMITTED
116
BID EXAMINATION continued
• EXAMPLES cont.
• REFUSING IMPORTANT RESPONSIBILITIES
AND LIABILITIES (PERFORMANCE
GUARANTEES, INSURANCE COVERAGE)
• THOSE DEVIATIONS SPECIFIED IN
INSTRUCTIONS TO BIDDERS AS REQUIRING
REJECTION OF THE BID (FOR WORKS
CONTRACTS, PARTICIPATING IN OTHER BIDS
OTHER THAN AS SUBCONTRACTOR)
117
BID EXAMINATION continued
• BIDS WITH DEVIATIONS
• MAY BE CONSIDERED SUBSTANTIALLY
RESPONSIVE IF DEVIATIONS CAN BE
ASSIGNED MONETARY VALUE TO BE ADDED
AS PENALTY FOR EVALUATION PURPOSES
• AND IF SUCH DEVIATIONS OTHERWISE
ACCEPTABLE
118
BID EVALUATION
• OBJECTIVE
• SECURE GOODS/WORKS/SERVICES AT MOST
ECONOMICAL COST
• PRICE ONLY ONE FACTOR
• OTHER FACTORS
•
•
•
•
•
•
•
TIME OF DELIVERY/COMPLETION
TERMS OF PAYMENT
TERMS OF GUARANTEE
TECHNICAL MERITS, CAPACITY, PRODUCTIVITY
OPERATING COST
EFFICIENCY
RESALE/DEPRECIATED VALUE
119
BID EVALUATION continued
• EVALUATION CRITERIA
– SHALL BE STATED IN BIDDING
DOCUMENTS
– IDEALLY ALL FACTORS QUANTIFIED IN
MONETARY TERMS
• TECHNICAL FEATURES
• COMMERCIAL FEATURES
120
BID EVALUATION continued
• TECHNICAL FEATURES
•
•
•
•
•
•
•
•
•
OPERATING COST
FUEL
TRAINING
MAINTENANCE COST
STANDARDIZATION
RESALE VALUE/DEPRECIATED COST
OWNERSHIP COST
CAPACITY
PRODUCTIVITY
121
BID EVALUATION continued
• COMMERCIAL FEATURES
• PRICE
– CONVERT AND ADJUST “BASIC PRICE” TO MAKE BID PRICES
COMPARABLE
• PRICE ADJUSTMENT OVER CONTRACT PERIOD
– IGNORE
• DELIVERY POINT
– ADD LOCAL TRANSPORTATION
• TIME OF DELIVERY
– EVALUATE LOSS CAUSED BY LATE DELIVERY
• WARRANTY
– EVALUATE VARIATION IF ACCEPTABLE
• PAYMENT TERMS
– EVALUATE VARIATIONS AT SPECIFIED INTEREST/DISCOUNT
RATE
122
BID EVALUATION continued
• COMPARISON OF BID PRICES:
– NATIONAL OR FOREIGN BIDDERS (Goods
offered from within the Purchaser’s country):
• PRICE QUOTED EXW (EX WORKS, EX
FACTORY, EX WAREHOUSE, EX SHOW
ROOM, OR OFF-THE SHELF)
• INCLUDING ALL DUTIES AND TAXES
ALREADY PAID ON
– COMPONENTS AND RAW MATERIALS, OR
– PREVIOUSLY IMPORTED FOREIGN GOODS
123
BID EVALUATION continued
• COMPARISON OF BID PRICES cont.:
– FOREIGN OR NATIONAL BIDDERS (Goods
offered from abroad):
• PRICES QUOTED CIF (named port of destination),
CIP (border point), OR CIP (named place of
destination)
• BIDDERS MAY IN ADDITION BE ASKED TO
QUOTE BIDS AS FOB (port of shipment), FCA
(named place), CFR (named port of destination) or
CPT (named place of destination)
124
DOMESTIC PREFERENCE
125
PREFERENCES
for domestically manufactured goods competing
against foreign manufactured goods in ICB
• MANUFACTURERS PREFERENCE
– 15% OF CIF PRICE OR CUSTOMS DUTIES,
WHICHEVER IS LESS, ADDED TO FOREIGN BIDS
– ONLY LOCALLY MANUFACTURED GOODS
WITH DOMESTIC INPUT (LABOR, RAW
MATERIAL AND COMPONENTS) OF MORE THAN
30% OF THE EXW PRICE
– FACTORY IN OPERATION SINCE BID
SUBMISSION
126
– AVAILABLE TO ALL BORROWERS
PREFERENCES
for domestic bidders competing against
foreign bidders in ICB
• CIVIL WORKS PREFERENCE
– 7.5% OF BID PRICE ADDED TO FOREIGN
BID
– ONLY DOMESTIC CONTRACTORS
MAJORITY-OWNED BY NATIONALS
– ONLY FOR BORROWERS BELOW US$755
PER CAPITA INCOME IN 1999
127
DOMESTIC PREFERENCE
GOODS - EXAMPLE
• PROCUREMENT OF VEHICLES
• CASE 1 - ALL AMOUNTS IN US$
BIDDERS
A1
B1
C1
C2
C3
10,000
9,900
10,500
11,300
12,000
LOWEST
BIDS
10,000
9,900
10,500
FINAL
RANKING
2
1
3
EVALUATED
PRICE
STEP 1
128
DOMESTIC PREFERENCE
GOODS - EXAMPLE
• PROCUREMENT OF VEHICLES
• CASE 2 - ALL AMOUNTS IN US$
BIDDERS
EVALUATED
PRICE
STEP 1
LEB EACH
GROUP
STEP 2
LEB IN GROUP
A AND GROUP C
CUSTOMS DUTY
15%
FINAL RANKING
A1
B1
C1
C2
C3
10,000
9,900
9,500
11,300
12,000
10,000
9,900
9,500
1,425
1,695
1,800
10,925
2
12,995
3
13,800
1294
10,000
10,000
1
9,500
DOMESTIC PREFERENCE
WORKS - EXAMPLE
• EVALUATION PROCEDURE
• DIVIDE BIDDERS INTO
– GROUP A (DOMESTIC CONTRACTORS)
– GROUP B (OTHER CONTRACTORS
BIDDERS
BID PRICE
*
ADJUSTED BID PRICE
A1
1140
1040
A2
1200
1100
B1
1150
1000
B2
1160
1050
2
4
1
3
-1040
-1100
75
1075
79
1129
1
3
2
4
RANKING
DOMESTIC
PREFERENCE 7.5%**
TOTAL
RANKING
* CORRECTED FOR ERRORS AND
** APPLIED TO ADJUSTED BID PRICE
NET OF PROVISIONAL SUMS
130
SINGLE RESPONSIBILITY
CONTRACTS
• SUPPLY AND INSTALLATION OR TURNKEY
– NUMBER OF DISCRETE ITEMS OF EQUIPMENT
GROUPED INTO ONE CONTRACT PACKAGE
• PREFERENCE ONLY FOR LOCALLY
MANUFACTURED EQUIPMENT (EXW PRICE)
WITHIN PACKAGE
131
SINGLE RESPONSIBILITY
CONTRACTS CONT.
• CIF OR CIP PRICE IN EACH BID
INCREASED BY:
– IMPORT DUTIES AND TAXES (FOR NONEXEMPT IMPORTER) OR 15%,
WHICHEVER IS LESS
– IF DUTIES VARY FROM ITEM TO ITEM,
APPROPRIATE TARIFF SHALL APPLY FOR
EACH PIECE OF EQUIPMENT
132
BID EVALUATION continued
• MERIT POINT SYSTEM
• ALLOCATE WEIGHTS TO DIFFERENT TECHNICAL
FEATURES
• ESTABLISH RELATIONSHIP BETWEEN QUALITY AND
PRICE
• SELECT BID WITH HIGHEST NUMBER OF POINTS
– ADVANTAGE:
• SIMPLE
– DISADVANTAGE:
• SUBJECTIVE ASSIGNMENT OF POINTS
– BIDDING DOCUMENT
• SPECIFIES POINT WEIGHTAGES
133
BID EVALUATION continued
• MERIT POINT WEIGHTAGES
–
–
–
–
–
–
–
EQUIPMENT PRICE
SPARE PARTS
TECHNICAL FEATURES
AFTER SALES SERVICE
STANDARDIZATION
TOTAL
TYPICAL
60 to 90
0 to 20
0 to 20
0 to 20
0 to 20
100
134
BID EVALUATION - WORKS
– CLARIFICATION OF BIDS IF NECESSARY
– DETERMINATION OF RESPONSIVENESS
• “SUBSTANTIAL RESPONSIVENESS”
• NO MATERIAL DEVIATIONS
– CORRECTION OF ERRORS
• FIGURES/WORDS
• UNIT RATE/TOTAL
• MISPLACEMENT OF DECIMAL POINT
– CONVERSION TO SINGLE CURRENCY
• SPECIFIED IN BIDDING DOCUMENT
135
BID EVALUATION - WORKS
– EVALUATION AND COMPARISON OF BIDS
• COMPARE BIDS IN SINGLE CURRENCY, AFTER
EXCLUDING PROVISIONAL SUMS AND
CONTINGENCIES
• ADD MONETARY COST OF QUANTIFIABLE
VARIATIONS WITH TIMING IMPLICATIONS
• ADD VALUE OF BENEFITS FOREGONE FOR LONGER
TIMES OF COMPLETION
• ADJUST FOR “ACCEPTABLE” QUANTIFIABLE
VARIATIONS
• ADD 7.5% PREFERENCE FOR DOMESTIC BIDDERS.
IDA ONLY; 1999 GNP PER CAPITA BELOW US$755
136
BID EVALUATION continued
• REJECTION OF ALL BIDS
– PERMISSIBLE ONLY AFTER
CONSULTATION WITH THE BANK
• ONLY IF LOWEST BID EXCEEDS ESTIMATE
BY SUBSTANTIAL MARGIN, OR
• IF ALL BIDS ARE NOT RESPONSIVE, OR
• LACK OF COMPETITION
– IF SO:
• REVIEW SPECIFICATIONS AND CONTRACT
CONDITIONS BEFORE RE-INVITING BIDS
137
BID EVALUATION continued
• NEGOTIATIONS
– PERMISSIBLE ONLY AFTER CONSULTATION
WITH THE BANK
– ONLY WITH LOWEST EVALUATED BIDDER, AND
IF NOT SUCCESSFUL, THEN THE NEXT LOWEST
EVALUATED BIDDER
– NO REDUCTION IN UNIT RATES
– CHANGE IN SCOPE, SPECIFICATIONS,
CONTRACT CONDITIONS
138
BID EVALUATION continued
• AWARD OF CONTRACT
– SELECTED BIDDER SHOULD NOT BE
REQUIRED:
• TO REDUCE PRICE
• TO UNDERTAKE WORK NOT SPECIFIED IN
BIDDING DOCUMENT
• TO MODIFY THE BID
139
MISPROCUREMENT
• WHEN:
– PROCEDURES FOLLOWED AND/OR AWARD
OF CONTRACT ARE INCONSISTENT WITH
AGREED PROCEDURES
• RESULT
– CONTRACT NOT FINANCED
– AMOUNT CANCELLED FROM LOAN
– FOR REPEATED VIOLATIONS, SUSPENSION
OF LOAN
140
MODULE 9
CONTRACT IMPLEMENTATION
SMALL WORKS
PROJECT LAUNCH – MODULE 11
1
CONTRACT FORMATION
ISSUES
– PROVISIONAL SUMS
– DAYWORKS
• RATES FOR LABOR, MATERIALS, EQUIPMENT
–
–
–
–
PRICE ADJUSTMENT INDICES
WORK PROGRAM
INSURANCE POLICIES AND CERTIFICATES
BID DEVIATIONS AND/OR ALTERNATIVE
PROPOSALS
– SUBCONTRACTORS PROPOSED BY
CONTRACTOR
– APPOINTMENT OF ADJUDICATOR
PROJECT LAUNCH – MODULE 11
1
ORDER OF PRECEDENCE
–
–
–
–
–
–
–
–
1. AGREEMENT
2. LETTER OF ACCEPTANCE
3. BID
4. CONTRACT DATA
5. CONDITIONS OF CONTRACT
6. SPECIFICATIONS
7. DRAWINGS
8. BILL OF QUANTITIES (OR ACTIVITY
SCHEDULE)
– 9. OTHER DOCUMENTS LISTED IN CONTRACT
DATA AS FORMING PART OF CONTRACT
PROJECT LAUNCH – MODULE 11
1
ROLES OF PARTIES TO CONTRACT
• CONTRACTOR
SBD CLAUSE
16
ROLE DESCRIPTION
CONSTRUCT AND INSTALL THE WORKS IN ACCORDANCE
WITH SPECIFICATIONS AND DRAWINGS
12
CARRY CERTAIN RISKS (IF NOT CARRIED BY THE
EMPLOYER)
13
INSURE AGAINST CONTRACTOR’S RISKS
17
COMMENCE AND CARRY OUT THE WORKS IN
ACCORDANCE WITH APPROVED WORK PROGRAM
19
BE RESPONSIBLE FOR SAFETY OF ALL ACTIVITIES ON
SITE
23
CARRY OUT ALL PROJECT MANAGER’S INSTRUCTIONS
35
CORRECT DEFECTS AS PER PROJECT MANAGER’S
INSTRUCTIONS
42
SUBMIT MONTHLY STATEMENTS OF ESTIMATED VALUE
OF WORK EXECUTED
24-25 REFER DISPUTED DECISIONS TO THE ADJUDICATOR
32
WARN PROJECT MANAGER OF CIRCUMSTANCES
ADVERSELY AFFECTING THE EXECUTION OF THE WORKS
PROJECT LAUNCH – MODULE 11
1
ROLES OF PARTIES TO CONTRACT
• EMPLOYER
SBD CLAUSE
1
ROLE DESCRIPTION
APPOINT PROJECT MANAGER AND NOTIFY THE
CONTRACTOR OF APPOINTMENT (CONTRACT DATA)
10-11 CARRY CERTAIN RISKS
22
GIVE POSSESSION OF SITE TO THE CONTRACTOR
29
APPROVE ACCELERATION PROPOSALS
43
PAY IN TIMELY FASHION TO THE CONTRACTOR THE
AMOUNTS CERTIFIED BY THE PROJECT MANAGER
51
MAKE ADVANCE PAYMENTS TO THE CONTRACTOR IN
ACCORDANCE WITH PROVISIONS IN CONTRACT DATA
56
TAKE OVER THE SITE AND WORKS WHEN PROJECT
MANAGER HAS ISSUED CERTIFICATE OF COMPLETION
63
NOTIFY THE CONTRACTOR OF WORLD BANK
SUSPENSION OF LOAN
PROJECT LAUNCH – MODULE 11
1
ROLES OF PARTIES TO CONTRACT
• PROJECT MANAGER
SBD CLAUSE ROLE DESCRIPTION
2, 15
CLARIFY QUERIES ABOUT CONDITIONS OF
CONTRACT AND CONTRACT DATA
4
DECIDE CERTAIN CONTRACTUAL MATTERS
REPRESENTING THE EMPLOYER
9
APPROVE CONTRACTOR’S KEY PERSONNEL
13
APPROVE INSURANCE ARRANGEMENTS
18
APPROVE CONTRACTOR’S ARRANGEMENTS FOR
TEMPORARY WORKS
27
APPROVE CONTRACTOR’S WORK PROGRAM
28
DECIDE ON COMPLETION TIME EXTENSIONS
PROJECT LAUNCH – MODULE 11
1
ROLES OF PARTIES TO CONTRACT
• PROJECT MANAGER CONT.
SBD CLAUSE ROLE DESCRIPTION
33-35
CHECK CONTRACTOR’S WORK AND GIVE NOTICE
OF DEFECTS
38-40
ISSUE VARIATION ORDERS
42-43
CHECK AND CERTIFY MONTHLY CERTIFICATES AND
DETERMINE VALUE OF WORK
44
DECIDE ON CONTRACT PRICE INCREASES AND
TIME EXTENSIONS FOR COMPENSATION EVENTS
50, 55
CERTIFY THAT WORKS ARE COMPLETE
53
ISSUE INSTRUCTIONS FOR DAYWORKS
57
ISSUE DEFECTS LIABILITY CERTIFICATE AND
CERTIFY FINAL PAYMENT TO CONTRACTOR
PROJECT LAUNCH – MODULE 11
1
RISKS IN CONSTRUCTION
• INJURY AND DAMAGE RISKS
– EMPLOYER’S RISKS, SBD 11
– CONTRACTOR’S RISKS, SBD 12
• CONTRACTOR’S OBLIGATION TO INSURE
• FINANCIAL RISKS
– EMPLOYER, PROJECT MANAGER OR
CONTRACTOR FAILURE TO MEET CONTRACTUAL
OBLIGATIONS
– INFLATION (IF NO PRICE ADJUSTMENT)
– TECHNICAL RISKS
COST INCREASES
• DESIGN ERRORS
• UNFORESEEN CONDITIONS, ESPECIALLY SOILS
PROJECT LAUNCH – MODULE 11
1
COMMON CLAIMS
–
–
–
–
–
–
–
–
DELAYED ACCESS TO SITE
CLIMATIC AND ENVIRONMENTAL DIFFERENCES
PERSONNEL AND LABOR RISK
PAYMENT DELAYS
SUBSOIL CONDITIONS
AVAILABILITY OF MATERIALS
VARIATIONS
ACCELERATON OF WORKS/EXTENSIONS OF TIME
PROJECT LAUNCH – MODULE 11
14
DISPUTES
• HOW TO AVOID
– AMICABLE SETTLEMENT/DIRECT
NEGOTIATIONS
• IF NO RESOLUTION
– PROJECT MANAGER’S DECISION
REFERRED TO ADJUDICATOR
– ADJUDICATOR’S DECISION BINDING IF
NEITHER PARTY REFERS DECISION TO
ARBITRATION (WITHIN 28 DAYS)
PROJECT LAUNCH – MODULE 11
15
ARBITRATION
– SMALLER CONTRACTS
LOCAL
INSTITUTION
– LARGER CONTRACTS OR INTERNATIONAL
CONTRACTORS, INTERNATIONAL
INSTITUTION:
• UNCITRAL (UN COMMISSION ON INTERNATIONAL
TRADE LAW)
• ICSID (INTERNATIONAL CENTRE FOR SETTLEMENT
OF INVESTMENT DISPUTES)
• ICC (INTERNATIONAL CHAMBER OF COMMERCE)
PROJECT LAUNCH – MODULE 11
15
MODULE 10
BANK REVIEW
PROJECT LAUNCH – MODULE 12
1
BANK REVIEW
• GOODS AND WORKS
– PROCUREMENT PLAN
•
•
•
•
COST ESTIMATES
CONTRACT PACKAGING
PROCUREMENT METHODS
TIME SCHEDULE
– BANK’S NO OBJECTION AT NEGOTIATIONS
– ANY CHANGES IN PROCUREMENT PLAN AFTER
NEGOTIATIONS REQUIRE BANK’S NO
OBJECTION
– FOR ALL CONTRACTS REGARDLESS OF PRIOR
OR POST REVIEW REQUIREMENTS
PROJECT LAUNCH – MODULE 12
1
• GOODS AND WORKS (cont.)
– THRESHOLDS FOR PRIOR REVIEW
• SET BASED ON:
– CPAR (COUNTRY PROCUREMENT ASSESSMENT
REVIEW)
– PCAR (PROCUREMENT CAPACITY ASSESSMENT
REVIEW) of implementing agency
– PAST PERFORMANCE IN PROCUREMENT
ADMINISTRATION of implementing agency
– FINANCIAL CAPABILITY of implementing agency (if
Bank declares misprocurement)
– DIFFERENT THRESHOLDS FOR GOODS
AND WORKS CONTRACTS
– THRESHOLDS STIPULATED IN LOAN
AGREEMENT
PROJECT LAUNCH – MODULE 12
15
• GOODS AND WORKS (cont.)
– PRIOR REVIEW CONTRACTS REQUIRE BANK’S NO
OBJECTION:
• IF PREQUALIFICATION
– DRAFT PREQUALIFICATION DOCUMENTS, INCLUDING
EVALUATION METHODOLOGY
– ADVERTIZING PROCEDURES, INCLUDING SPECIFIC
PROCUREMENT NOTICE (SPN)
– PREQUALIFICATION EVALUATION SUMMARY, INCLUDING
LIST OF PREQUALIFIED BIDDERS
• BEFORE BID INVITATION ISSUED:
– DRAFT BIDDING DOCUMENTS, INCLUDING
» INVITATION FOR BIDS
» BID EVALUATION CRITERIA
» SPECIFICATIONS
– ADVERTISING PROCEDURES, INCLUDING SPN (IF NO
PREQUALIFICATION)
• ANY SUBSEQUENT MODIFICATION, INCLUDING
POSTPONEMENT OF BID SUBMISSION DATE
PROJECT LAUNCH – MODULE 12
15
• GOODS AND WORKS (cont.)
– LOAN AGREEMENT MAY PERMIT
PROCUREMENT OF GOODS AND WORKS USING
NCB METHOD
– NORMALLY NCB CONTRACTS WOULD BE
BELOW PRIOR REVIEW THRESHOLD(S)
– LOAN AGREEMENT MAY STIPULATE THAT
DRAFT NCB BIDDING DOCUMENTS BE
SUBJECT TO BANK’S PRIOR REVIEW
– DEPENDING ON NUMBER OF NCB CONTRACTS,
PRIOR REVIEW MAY COVER FIRST 1 TO 3
CONTRACTS IN BEGINNING OF PROJECT, OR IN
EVERY YEAR DURING PROJECT
IMPLEMENTATION
PROJECT LAUNCH – MODULE 12
15
• GOODS AND WORKS (cont.)
– BANK’S NO OBJECTION REQUIRED:
• FOR AN EXTENSION OF BID VALIDITY
PERIOD IF:
– FIRST REQUEST IF IT IS LONGER THAN 8 WEEKS,
AND FOR ALL SUBSEQUENT EXTENSIONS
– IF FIRST REQUEST IS SHORTER THAN 8 WEEKS,
FOR ALL SUBSEQUENT EXTENSIONS
• FOR FIXED PRICE CONTRACTS:
– EXTENSIONS SHALL INCLUDE PRICE
ADJUSTMENT MECHANISM
» IF FIRST EXTENSION IS LONGER THAN 8
WEEKS
» AFTER FIRST EXTENSION, ALSO IF SHORTER
THAN 8 WEEKS, ALL SUBSEQUENT
EXTENSIONS
PROJECT LAUNCH – MODULE 12
15
• GOODS AND WORKS (cont.)
– BANK’S NO OBJECTION REQUIRED:
– AFTER BIDS RECEIVED AND EVALUATED AND
BEFORE AWARD OF CONTRACT
• BID EVALUATION REPORT
• MATERIAL CHANGES OF TERMS AND
CONDITIONS OF CONTRACT AS COMPARED
WITH CONTRACT ISSUED WITH BID
INVITATION
• CONTRACT PRICE IS DIFFERENT FROM BID
PRICE
– AFTER AWARD OF CONTRACT, ONE COPY OF
EXECUTED CONTRACT TO BANK BEFORE FIRST
PAYMENT
PROJECT LAUNCH – MODULE 12
15
• GOODS AND WORKS (cont.)
– DURING IMPLEMENTATION, BANK’S NO
OBJECTION REQUIRED:
• EXTENSION OF CONTRACT TIME
• CHANGES IN TERMS AND CONDITIONS OF
CONTRACT
• CHANGE ORDERS, INCLUDING VARIATION OF
QUANTITIES AND SCOPE OF CONTRACT
– IF SEPARATELY OR IN AGGREGATE, THE ABOVE
CHANGES INCREASE CONTRACT PRICE BY
MORE THAN 15%, BANK’S PRIOR NO
OBJECTION REQUIRED
– CHANGES BELOW 15% ARE SUBJECT TO
BANK’S POST REVIEW
– COPIES OF ALL CONTRACT AMENDMENTS
SHALL BE SUBMITTED TO THE BANK
PROJECT LAUNCH – MODULE 12
15
• GOODS AND WORKS (cont.)
– POST REVIEW CONTRACTS:
• BORROWER CARRIES OUT ALL STEPS UP TO AND
INCLUDING AWARD OF CONTRACT
• ALL CONTRACT DOCUMENTS, INCLUDING BID
EVALUATION REPORT, TO THE BANK BEFORE FIRST
WITHDRAWAL
• IF SPECIAL ACCOUNT PAYMENTS, DOCUMENTS TO
THE BANK WITH FIRST REPLENISHMENT REQUEST
• IF STATEMENT OF EXPENDITURES (SOE), ALL
DOCUMENTS RETAINED BY BORROWER FOR REVIEW
BY BANK MISSIONS
• BANK WILL CARRY OUT POST REVIEW ON A SAMPLE
BASIS (FROM ONE IN FIVE TO ONE IN TWENTY)
BASED ON PCAR FINDINGS
PROJECT LAUNCH – MODULE 12
16
• GOODS AND WORKS (cont.)
– DURING POST REVIEW, THE BANK WILL
• VERIFY PROCUREMENT AND CONTRACTING
PROCEDURES
• ASCERTAIN COMPLIANCE WITH LOAN
AGREEMENT (INCLUDING PROJECT
DESCRIPTION)
• VERIFY TECHNICAL COMPLIANCE AND
PHYSICAL COMPLETION
– DEVIATIONS FROM AGREED
PROCEDURES MAY RESULT IN THE
BANK DECLARING MISPROCUREMENT
PROJECT LAUNCH – MODULE 12
16
BANK REVIEW
• CONSULTING SERVICES
– SELECTION PLAN FOR ALL ASSIGNMENTS
REGARDLESS OF COST
•
•
•
•
•
•
•
TERMS OF REFERENCE
COST ESTIMATE
CONTRACT PACKAGING
SELECTION METHODS
SELECTION CRITERIA
PROPOSED CONTRACT FORMAT
TIME SCHEDULE
– BANK’S NO OBJECTION AT NEGOTIATIONS
– ANY CHANGES IN SELECTION PLAN AFTER
NEGOTIATIONS REQUIRE BANK’S NO
OBJECTION
– FOR ALL CONTRACTS REGARDLESS OF PRIOR
OR POST REVIEW REQUIREMENTS
PROJECT LAUNCH – MODULE 12
162
• CONSULTING SERVICES (cont.)
– THRESHOLDS FOR PRIOR REVIEW:
• FIRMS:
• INDIVIDUALS:
MAX. US$100,000
MAX. US$50,000
– BASED ON PCAR, THRESHOLDS MAY BE SET
LOWER
– THRESHOLDS STIPULATED IN LOAN
AGREEMENT
– LOAN AGREEMENT MAY INCLUDE THRESHOLD
FOR ADVISING BANK OF TECHNICAL
EVALUATION RESULTS BEFORE OPENING OF
FINANCIAL PROPOSALS FOR POST REVIEW
CONTRACTS FOR FIRMS
PROJECT LAUNCH – MODULE 12
16
• CONSULTING SERVICES (cont.)
– PRIOR REVIEW CONTRACTS REQUIRE BANK’S
NO OBJECTION BEFORE INVITING PROPOSALS:
• SHORTLIST
• REQUEST FOR PROPOSAL (RFP)
–
–
–
–
–
–
LETTER OF INVITATION (INCLUDING SHORTLIST)
INFORMATION TO CONSULTANTS (ITC)
DATA SHEET TO ITC, INCLUDING EVALUATION CRITERIA
STANDARD/SAMPLE FORMS
TERMS OF REFERENCE (TOR)
PROPOSED CONTRACT FORMAT
• ANY FURTHER MODIFICATIONS OF RFP MADE AFTER
BANK’S NO OBJECTION
PROJECT LAUNCH – MODULE 12
16
• CONSULTING SERVICES (cont.)
– BANK’S NO OBJECTION REQUIRED
• TECHNICAL EVALUATION REPORT
• IN PARTICULAR, IF THE REPORT RECOMMENDS
REJECTION OF ALL PROPOSALS
• FINAL EVALUATION REPORT WITH PROPOSED
SELECTION
• FINAL DRAFT OF CONTRACT
– ANY SUBSTITUTIONS OF KEY STAFF
– CHANGES IN THE TOR
– CONTRACT MODIFICATIONS
• AFTER SIGNING OF CONTRACT, ONE COPY OF
EXECUTED CONTRACT TO BANK BEFORE FIRST
PAYMENT
PROJECT LAUNCH – MODULE 12
165
• CONSULTING SERVICES (cont.)
– DURING IMPLEMENTATION, BANK’S NO
OBJECTION REQUIRED:
• EXTENSION OF CONTRACT TIME
• CHANGE OF SCOPE
• SUBSTITUTIONS OF KEY STAFF
– IF SEPARATELY OR IN AGGREGATE, THE ABOVE
CHANGES INCREASE CONTRACT PRICE BY
MORE THAN 15%, BANK’S PRIOR NO
OBJECTION REQUIRED
– CHANGES BELOW 15% ARE SUBJECT TO
BANK’S POST REVIEW
– COPIES OF ALL CONTRACT AMENDMENTS
SHALL BE SUBMITTED TO THE BANK
PROJECT LAUNCH – MODULE 12
16
• CONSULTING SERVICES (cont.)
– POST REVIEW CONTRACTS:
• EVEN FOR POST REVIEW CONTRACTS, TOR AND
SHORTLIST (IF COMPETITIVE SELECTION) OR FIRM
SELECTED (SINGLE SOURCE) AS WELL AS SELECTION
CRITERIA REQUIRE BANK’S PRIOR NO OBJECTION
• BORROWER CARRIES OUT ALL OTHER STEPS UP TO AND
INCLUDING AWARD OF CONTRACT BUT NOTIFIES THE
BANK OF TECHNICAL EVALUATION PRIOR TO OPENING
OF FINANCIAL PROPOSALS
• ALL CONTRACT DOCUMENTS, INCLUDING PROPOSAL
EVALUATION REPORT(S), TO THE BANK BEFORE FIRST
WITHDRAWAL
• IF SPECIAL ACCOUNT PAYMENTS, DOCUMENTS TO THE
BANK WITH FIRST REPLENISHMENT REQUEST
• IF STATEMENT OF EXPENDITURES (SOE), ALL
DOCUMENTS RETAINED BY BORROWER FOR REVIEW BY
BANK MISSIONS
• BANK WILL CARRY OUT POST REVIEW ON A SAMPLE
BASIS (FROM ONE IN FIVE TO ONE IN TWENTY) BASED
ON PCAR FINDINGS
PROJECT LAUNCH – MODULE 12
167
• CONSULTING SERVICES (cont.)
– DURING POST REVIEW, THE BANK WILL
REVIEW:
•
•
•
•
•
CONSULTANTS’ QUALIFICATIONS
TOR (IF MODIFIED)
TERMS OF CONTRACT
SELECTION PROCEDURE
COMPLIANCE WITH LOAN AGREEMENT
(INCLUDING PROJECT DESCRIPTION)
– DEVIATIONS FROM AGREED
PROCEDURES MAY RESULT IN THE
BANK DECLARING MISPROCUREMENT
PROJECT LAUNCH – MODULE 12
16