Transcript WORLD BANK Islamic Republic of Iran Information Seminar

WORLD BANK
INTERNATIONAL
COMPETITIVE BIDDING
(ICB)
1
INTERNATIONAL COMPETITIVE
BIDDING (ICB) – Main Principles
 Advance notification

General procurement notice (required)




Announces ICB procurement opportunities
Published in UN Development Business
Publish minimum 8 weeks before release of bidding or prequalification documents
Annual updates
 Notification before bidding

Specific procurement notice


Request for bids for specific contracts
Published in:
 One national newspaper (required)
 Official gazette (if any)
 Direct notice to firms responding to GPN (required)
2
INTERNATIONAL COMPETITIVE
BIDDING (ICB) – Main Principles
 Specific UN Development Business (Optional - Yes)
 Specific Procurement Notice UNDB (required for contracts
more than $10 million)
 International Press/Journals (optional)
 For large specialized or important contracts notice to be
advertised in UNDB, and/or well known technical magazines,
newspapers and trade publications
 Inform embassies of Bank members (encouraged)
3
INTERNATIONAL COMPETITIVE
BIDDING (ICB) – Main Principles
 Equal opportunity



Time for bid submission – generally 8 to12 weeks for large
contracts but not less than 6 weeks
Fair conditions of contract – use of Bank’s standard bidding
documents mandatory
Broad specification (identify mandatory and desirable)
 Equal treatment of bidders


Disclose evaluation criteria
Apply without discrimination
 Award to lowest evaluated bid
4
INTERNATIONAL COMPETITIVE
BIDDING (ICB) – Main Principles
ICB STEPS
1.
2.
3.
4.
5.
6.
Notification /Advertising
(Prequalification) where specified in LN/CR
Issue Bidding Documents
Submission of Bids
Public Bid Opening
Send minutes of Bid Opening to Bank
5
INTERNATIONAL COMPETITIVE
BIDDING (ICB) – Main Principles
ICB STEPS (contd.)
7. Evaluate and prepare report



Selection of the lowest evaluated bid
Post-qualification (when no-prequalification)
Post bid verification (when prequalification)
8. Contract award
9. Contract performance
10. Bank clearance required before taking actions
on 1, 2, 3 and 8
6
PROCUREMENT CYCLE
GENERAL
PROCUREMENT
NOTICE
CONTRACT
PERFORMANCE
CONTRACT
AWARD
AD FOR PREQUALIFICATION
OR BIDDING
PREQUALIFICATION
POSTQUALIFICATION
ISSUE OF
BIDDING
DOCUMENTS
BID EVAL.
SELECTION
PRE-BID
CONFERENCE
BID OPENING
7
OTHER PROCUREMENT
METHODS
 Only when ICB is not appropriate or practical
 Must satisfy economy and efficiency
requirements
 Provides competition to the extent possible
 Gets the best value for money (reasonableness of
price)
 Provides transparency
8
OTHER PROCUREMENT
METHODS
 Adopt only that method which is specified
in LN/CR agreement
 Maintain records of all non-ICB methods
 Aggregate amounts specified for reach
non-ICB method as per loan/credit
agreement should not be exceeded
9
OTHER PROCUREMENT
METHODS
 Limited International Bidding
 National Competitive Bidding – Yes
Contracts <US $ 1.0 m; Aggregate US$ 9.0 m;
Prior Review > US$ 100,000
 Shopping (International – Yes)
Contracts <US$ 0.1 M:0; Aggregate US$
280,000; Post Review
 Force Account
 Direct Contracting
10
OTHER PROCUREMENT
METHODS (Cont’d)
 Minor Works (Yes)
Contracts <US$0.1 M:0; Aggregate US$ 1.2
M:0; Prior Review First 2 contracts
(component 1 year
 UN Agencies (UNICEF/ILO/WHO)
 Financial Intermediaries (commercial practices)
 Community Participation
11
OTHER PROCUREMENT
METHODS (Cont’d)
NATIONAL COMPETITIVE BIDDING (NCB)
 Appropriate when




Foreign bidders are not interested
Nature of goods and works are dispersed
Cost of ICB disproportionately high
Goods & Works of acceptable quality are available
nationally at prices below international prices
 Acceptable if





Provide adequate competition
National procedures are reasonable
Documentation adequate
Does not exclude eligible foreign firms
Assure award to lowest evaluated bid
12
OTHER PROCUREMENT
METHODS
NATIONAL COMPETITIVE BIDDING (NCB)
 National procedures acceptable only when CPAR/Side
Letters/Minutes of Negotiations or any other documents
identify unacceptable features in national procurement
process, if any, and borrower agrees to remove them
(side letter)
 National press publication is required
 Bidding time should not be less than 4 weeks
 NCB document should be prepared and cleared with Bank

(use sample document)
 Payment in local currency, national language acceptable
13
OTHER PROCUREMENT
METHODS
NATIONAL COMPETITIVE BIDDING (NCB)
(contd.)
 Bid evaluation criteria must be specified – total cost will
be compared including import duty, taxes, etc.
 No domestic preference clause is allowed
 Foreign bidders if interested should be allowed to bid on
same terms and conditions as in NCB document
 Award should be made to the lowest evaluated bid
 Bank’s prior review required if specified as per LN/CR
14
CHECKLIST COMPARING NATIONAL
COMPETITIVE BIDDING PROCEDURES
AND WORLD BANK POLICY
YES
NO
BANK POLICY
1.
Are there eligibility restrictions based on
nationality of bidder and/or origin of goods (other
than primary boycotts)?
Not allowed
2.
Are there primary boycotts which are established
by law?
Only primary boycotts
are acceptable
3.
Are bidding opportunities advertised in the local
press?
Required
4.
Are prospective bidders allowed at least 30 days
for bid preparation (except for commodities/small
goods contracts)?
Required
5.
Are contractors/suppliers pre-qualified for
large/specialized contracts?
Required
6.
Are minimun experience, technical and financial
requirements (for pre- or post-qualification)
explicityly stated in the documents?
Required
15
CHECKLIST COMPARING NATIONAL
COMPETITIVE BIDDING PROCEDURES
AND WORLD BANK POLICY (contd.)
YES
NO
BANK POLICY
7.
Is an invitation to pre-qualify advertised for each
procurement involving large or complex potential
contracts?
Required
8.
Are joint ventures with local firms required for
foreign firms’ eligibility?
Not allowed
9.
Are joint venture partners jointly and severally
liable?
Required
10.
Are there set limitations to the number of firms
who can bid for a contract?
Not allowed
11.
Are parastatals allowed to bid?
Acceptable only if they (i) are
financially autonomous, (ii)
operate under commercial law
and (iii) are independent from
borrower and its purchasing/
contracting authority
16
CHECKLIST COMPARING NATIONAL
COMPETITIVE BIDDING PROCEDURES
AND WORLD BANK POLICY (contd.)
YES
NO
BANK POLICY
12.
Are bidders required to register with local or federal
authority as a prior condition for bidding?
Should be discouraged.
Acceptable only if registration
criteria, process and cost
reasonable/efficient and
qualified foreign firms not
precluded from competing
13.
Are extensions to bid validity allowed?
Acceptable only if justified by
exceptional circumstances
14.
Are there restrictions on the means fo delivery of
bids?
Not allowed, except when
bidders have to submit physical
samples. Then they can be
required to deliver bids by
mail, by courier, by hand, etc.
15.
Is preference given to suppliers or contractors based
on region or locality of registration, small size,
ethnic ownership, etc.?
16.
Are there restrictions on sources of labor and
Not allowed
Not allowed, except for unskilled labor, if available 17
locally
CHECKLIST COMPARING NATIONAL
COMPETITIVE BIDDING PROCEDURES
AND WORLD BANK POLICY (contd.)
YES
NO
BANK POLICY
17.
Is public bid opening required? Does it occur
immediately or closely following the bid submission
deadline?
Required
18.
Is a “two envelope” bid opening procedure
permitted for procurement of goods and works?*
Not allowed
19.
Is automatic re-bidding required if too few bids are
received?
Acceptable, provided all
responsive bidders are allowed
to bid, the process is efficient
and no serious delays result
20.
Is “bracketing” used in bid evaluations?**
Not allowed
21.
Is award made to lowest evaluated qualified and
responsive bidder?
Required
*
**
All technical envelopes are opened first and, after review , price envelopes of all or only
qualified/responsive bids are opened in the second round
Rejection of bids outside a range or “bracket” of bid values
18
CHECKLIST COMPARING NATIONAL
COMPETITIVE BIDDING PROCEDURES
AND WORLD BANK POLICY (contd.)
YES
NO
BANK POLICY
22.
Are price negotiations conducted with “winning”
bidders prior to contract signature?
Not allowed, except where the
bid price is substantially above
market or budget levels and
then only if negotiations are
carried out to try to reach a
satisfactory contract through
reduction in scope and/or
reallocation of risk and
responsibility which can be
reflected in a reduction in
Contract Price. (see Guidelines
para 2.60)
23.
Are price adjustment provisions generally used?
Not required, but
recommended for works
contracts of 1 year or more in
duration when domestic
inflation rate is high
19
CHECKLIST COMPARING NATIONAL
COMPETITIVE BIDDING PROCEDURES
AND WORLD BANK POLICY (contd.)
YES
24.
Are the terms and conditions used in goods and
works procurement generally appropriate for the
size and nature of contract intended?
25.
Are contract scope/conditions modified during
implementation?
NO
BANK POLICY
Required (to be acceptable they
should be balanced, reasonably
and clearly address the most
important issues that lead to
problems during performance,
e.g. risk allocation, payment,
inspection, conpletion/
acceptance, insurance,
warrantees, changes, contract
remedies, force majeure,
governing law, termination,
etc.)
Acceptable, but advance Bank
approval of changes subject to
prior review needed if required
under the Loan Agreement
20
OTHER PROCUREMENT
METHODS
SHOPPING
 International/National

Appropriate when




Off the shelf goods
Values are small
No formal bidding document required
No public bid opening required
 International shopping:

Obtain quotations (proforma invoice) in writing from
at least 3 suppliers from 2 different countries
21
OTHER PROCUREMENT
METHODS
SHOPPING (Cont’d)
 National shopping:

Obtain quotations (proforma invoice) from at least 3
countries
 International/National

Request for quote to indicate




Description of goods
Standard specifications
Desired time & place of delivery – allow adequate time but not
less than 3 weeks. No public bid opening required
Quotations may be submitted by telex/fax
22
OTHER PROCUREMENT
METHODS
SHOPPING (Cont’d)


Award should be made to the lowest evaluated
offer (retain evaluation report for Post
Review)
Purchase order will indicate terms of accepted
offer
23
OTHER PROCUREMENT
METHODS
MINOR WORKS
 Small contracts
 Works may be dispersed
 Obtain at least 3 quotations on lump-sum
fixed price basis or fixed unit rates
 Award to the lowest evaluated bid
 Retain evaluation report for Post Review
 Use sample document
24