Transcript NATIONAL EMERGENCY EMPLOYMENT PROGRAM FOR RURAL …

Capacity Building and Training on
Procurement
Training the Trainers Workshop
Transparency International-National
Accountability Bureau-World Bank
September 19-21, 2005
Karachi
By Uzma Sadaf
Objectives
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Economy, efficiency, and quality of services.
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Giving equal opportunity to all eligible bidders
to compete in providing goods, works, and
services financed by the Bank.
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Encouraging domestic contracting and
manufacturing industry, and
consultancy
services.
 Transparency in the selection process.
Functions of World Bank
•
To provide funds for development projects
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To provide policy advice and technical assistance
•
To promote investment in developing countries
while implementing a project . . .
a) Responsibility of implementation rests with the
Borrower.
b) The Bank has to ensure that Loan/Credit are used
for
 the purposes intended
 with
– Economy
– Efficiency
– Transparency
…. while implementing projects…
c) Accordingly, Bank has developed Guidelines for
procurement of
Goods,
Works, and
Consultancy Services
d) Bank Guidelines explain the various procedures
acceptable for procurements as given in the Legal
Agreement.
…. while implementing projects…
e) Role of Procurement
•
Ensuring satisfactory implementation;
•
Ensuring speedy transfer of resources by way of
disbursement;
•
Achieving economy and efficiency; and
•
Ensuring success of the Project.
•
Developing Capacity of Sound Public Procurement
…. while implementing projects…
g Bank’s Considerations for Procurement
•
Need for economy and efficiency in the execution
of the project
•
giving all eligible bidders from developed and
developing countries equal opportunity to compete
•
encouraging the development of domestic
contracting and manufacturing industries
•
transparency in the procurement process.
Processing for Procurement
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Legal Agreement
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Provides guidelines to Adopt the Procurement Procedure (cost,
complexity, frequency)
Provides Bank’s Prior and Post Review thresholds


Guidelines for Selection of Goods & Works and
Consultants
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Provides Steps Required for Implementing various procurement
procedures.
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World Bank Standard Documents

Pre-qualification, bidding, contracts, RFP etc.
Legal agreement

This Agreement is between the Islamic
Republic of Pakistan and IDA/IBRD – is a
treaty subject to International Law. As a
treaty the Legal Agreement takes precedence
over local law.
 The Agreement governs the legal relationship
between the borrower and the Bank.
 Guidelines are applicable to the extent
provided in the Legal Agreements.
Procurement guidelines

Works and Goods: Procurement under IBRD
Loans and IDA Credits May 2004

Consultancy: Selection and Employment of
Consultants by World Bank Borrowers May
2004
World Bank Standard Documents

Works and Goods:
Prequalification
documents,
Bidding
documents, Bid evaluation report, Contract

Consultancy:
Expression of interest (for short-listing),
Request for proposals, Evaluation report,
Contract
Procurement of Goods
Methods Defined under the World
Bank Guidelines
Methods of procurement
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International Competitive Bidding (ICB)
National Competitive Bidding (NCB)
Shopping
Steps of a procurement process

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
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Notification and advertising
Pre-qualification of bidders (for health sector
goods)
Issuance of bidding documents to (pre-qualified)
firms
Bid opening
Bid Evaluation
Selection of lowest evaluated responsive bidder
Signing of Contract
Notification and Advertising

Draft General Procurement Notice (all planned projects)
is published in UNDB.

Specific Procurement Notice for bidding is published for
a specific project in
– Atleast one nationally circulated newspaper, or
– Official gazette, or
– Electronic portal with free access, and
– UNDB online and in dgMarket.

Minimum response time is 6 weeks for ICB and 4 weeks
for NCB.
Standard Bidding Documents
• Fair (terms and conditions should be balanced)
• Non-restrictive (local registrations, response time)
• Clear and comprehensive (adequate information,
requirements, evaluation criteria)
Standard Bidding Documents
(ICB)
Bidding Procedures
• Instructions to bidders (ITB)
• Bid data sheet (BDS)
• Evaluation and qualification criteria
• Bidding Forms
• Eligible countries
Supply Requirements
• Schedule of Requirements
Contract
• General Conditions of Contract
• Special Conditions of Contract
• Contract Forms
Standard Bidding Documents
(NCB)
Part I (fixed)
• Instructions to bidders (ITB)
• General Conditions of Contract
Part II (Procurement Specific Provisions)
• Invitation for Bids (IFB)
• Bid data sheet (BDS)
• Special Conditions of Contract
• Schedule of Requirements
• Technical Specifications
• Bidding Forms
• Eligibility
Standard Bidding Documents
Instructions to Bidders (fixed)
• General (Scope of Bid, source of funds, eligibility)
• Contents of Bidding Documents (list of documents,
clarifications, amendments)
• Preparation of Bids (cost, currency, documents, period of bid
validity, format of signing)
• Submission and Opening of Bids (sealing & marking,
deadline, late bid, withdrawal, opening)
• Evaluation & Comparison of Bids (responsiveness, evaluation
criteria and procedure, )
• Award of Contract (award criteria, notification, signing of
contract, securities)
Standard Bidding Documents
Bids Data Sheet (BDS) (Procurement Specific)
• General (name of purchaser, project etc.)
• Contents of Bidding Documents (list of documents)
Preparation of Bids (cost, currency, documents, period of bid
validity, format of signing)
• Submission and Opening of Bids (address of submission, last
date )
• Evaluation & Comparison of Bids (currency conversion,
domestic preference, evaluation criteria and procedure )
• Award of Contract (variation in quantities)
Standard Bidding Documents
Evaluation and Qualification Criteria
• Post-Qualification Criteria
Manufacturing or supply experience, financial, technical and
production capabilities, authorization from a manufacturer).
• Evaluation Criteria
domestic preference (ICB)
Quoted Cost (DDP, EXW, CIP, CIF, etc.) plus incidental
costs, delivery schedule, deviation in payment schedule
spare parts, O&M cost, performance and productivity,
technical specifications
Standard Bidding Documents
Bidding Forms
• Bid Forms
• Price Schedule Form
• Bid Security Form
• Manufacturer’s Authorization Form
Standard Bidding Documents
Schedule of Requirements
• List of goods and delivery schedule
• List of related services and completion schedule
• Technical specifications
• Drawings
• Inspection and tests
Standard Bidding Documents
General Conditions of Contract (FIXED)
Clauses
• Operational Clauses
• Definitions
• Rights and obligations
• Delivery and risk transfers
• Terms and currencies of payment
• Mode & form of dispute settlement
• Governing language
• Applicable law
Standard Bidding Documents
General Conditions of Contract (FIXED)
Protective Clauses
• Performance Security
• Retention of Payments
• Insurance
• Inspection and tests
• Warranty
• Protection against third party infringement suits
• Force Majure
Standard Bidding Documents
General Conditions of Contract (FIXED)
• Variations
• Quantity changes
• Adverse physical conditions
• Price adjustments
• Remedies
• Forefeiture of Performance Security
• Damages, penalties for delays
• Suspension and termination
• Non-payments/delays in approvals
Standard Bidding Documents
Special Conditions of Contract (VARIABLE)
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Performance Security
Inspection and tests
Delivery and documentation
Payment Schedule
Insurance
Liquidated Damages
Warranties
Applicable Law
Standard Bidding Documents
Contract Forms
• Form of Contract
• Performance Security
• Advance Payment Security Form
BID OPENING
• Public Opening
• Announce the requisites (bid security, modification,
withdrawal etc.)
• Announce the price
• Record the requisites
• Only bids announced in public opening shall be further
considered for evaluation
• Late Bids are not Considered
Bid Evaluation
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Selection of the lowest evaluated responsive bidder
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Evaluation is to be based upon the contents of the bid
itself.
•
Evaluation is to be based only upon the criteria clearly
stated in the Bidding Documents.
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Ideally all factors of evaluation criteria should be
quantifiable in monetary terms.
Bid Evaluation
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Clarification
Permissible and warranted
Should be in writing
Should not Change Substance of Bid or Price
•
Preliminary Examination
(Substantial Responsiveness)
Eligibility requirements
Bid is signed
Bid Security
Required authorization
Major Deviations from Bid Conditions
Computational Errors
Major Deviations
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Scope, Quality and Performance Affected
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Employer’s rights or supplier’s obligations
limited in substantial way
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Rectification would unfairly affect ranking of
other substantially responsive bids
Examples of Major Deviations
•
Late Bid Submission
•
Ineligible Bidder
•
Unsigned Bid
•
Unacceptable Bid Security
•
Lesser bid validity period
•
Price Adjustment Vs Fixed Price
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Non Conforming delivery schedule
•
Unacceptable Subcontracting
•
Deviations from critical provisions
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Applicable Law
Taxes and Duties
Defect Liability
Functional Guarantees
Patent and Indemnity
Debatable Deviations
•
Information given on different format
•
Different Payment Terms
•
Non Compliance with Local Regulations
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Labour, Import, Duties, Taxes, etc.
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Completion/Maintenance Periods
•
Omission of (Minor) Items
•
Different Codes/Standards
- Materials, Workmanship, Design, etc.
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
Detailed Bid Evaluation
(Only for Substantially Responsive Bids)
•
Arithmetic Errors (If discrepancy between words and
figures, words would prevail)
•
Currency Conversion (date as given in the Bid Docs.)
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Evaluation shall exclude
Sales & other taxes payable if contract signed (local goods)
Customs and import taxes payable if contract signed (goods
imported or to be imported)
Detailed Bid Evaluation
(Only for Substantially Responsive Bids)
•
Correction of Price (As given in the Evaluation
criteria)
-
incidental cost added
addition to cost for delayed delivery
adjustment for alternate payment schedule
addition of cost of spare parts
operating & maintenance cost
adjustment for performance and efficiency
adjustment for any specific additional criteria
as given in the bid documents.
Award of Contract
Lowest evaluated responsive bidder
•
Notification of award (notify successful bidder ,
publish results of evaluation, NOA is binding until contract is
signed)
•
Signing of Contract (within 28 days of notification of
award)
•
Performance Security (28 days of notification of
award)
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Return Bid Security of all Bidders
If lowest evaluated responsive bidder fails to sign
contract/submit performance Security, invite the 2nd
lowest evaluated responsive bidder.
ISSUES
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Validity of Bids and Bid Securities
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Extended Delivery Period
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Bid Forms not completely filled
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Authorization letter not signed
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Experience Certificate not included
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Delayed Decision of award
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Specifications & Experience Requirements
ISSUES
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Validity of Bids and Bid Securities
Must be valid for the period given in the BDS
Extension may be requested; bidder has a
right to refuse.
•
Extended Delivery Period
Acceptable if BDS gives the option to
evaluate delayed delivery.
If BDS mentions a fixed delivery period, it
is a major deviation.
ISSUES
•
Bid Forms not completely filled
May be acceptable if ALL information is
given in a signed letter
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Authorization letter not signed
A certificate may be acceptable
•
Experience Certificate not included
Bidder maybe asked to submit later
ISSUES
•
Delayed Decision of award
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Award should be made within the bid
validity period
Incase of delay, ALL bidders should be
requested to extend their bid validity.
Unreasonable extension is not a good
practice.
Delays may entail increase in cost.
ISSUES
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Specifications & Experience Requirements
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Specifications should be clear and suiting the
requirement.
A market survey prior to drafting
specifications is always helpful
Qualification requirement of suppliers
should be realistic
A Good Practice
•
Assess capacity of prospective bidders and disseminate
information
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Pre-bid Meetings
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Addendum
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Prompt evaluation and decision
Procurement of Goods
SHOPPING
Shopping

Three Quotations are required for comparison

Advertisement not necessary. Written request may be
made.
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Good practice is to approach more than three suppliers
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Conditions (delivery schedule, Specifications etc.) given
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If three responses are not received an extension may be
given.
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