1 procurement of goods, works specialized services world bank seminar on procurement of goods, works...
TRANSCRIPT
1
PROCUREMENT OF GOODS, WORKSSPECIALIZED SERVICES
WORLD BANK
Seminar on Procurement of Goods, Works and Consultancy Contracts financed from World
Bank Loans and IDA Credits, February 27 - March 3, 2006, Zagreb, Croatia.
2
PROCUREMENT CATEGORIES
GOODS COMMODITIES, RAW MATERIALS MACHINERY, EQUIPMENT INDUSTRIAL PLANT
WORKS CONSTRUCTION INFRASTRUCTURE
SERVICES (CONTRACTUAL) TRANSPORTATION, INSURANCE INSTALLATION, COMMISSIONING TRAINING AND MAINTENANCE OPERATION AND MANAGEMENT MAPPING, DRILLING, ETC.
3
PROCUREMENT PROCESS FOR GOODS, WORKS AND SPECIALIZED SERVICES
INTERNATIONAL COMPETITIVE BIDDING (ICB) ADEQUATE ADVANCE NOTIFICATION
GENERAL PROCUREMENT NOTICE (REQUIRED)
• ANNOUNCES ICB PROCUREMENT OPPORTUNITIES
• PUBLISHED IN “UN DEVELOPMENT BUSINESS”
• PUBLISH MINIMUM 8 WEEKS BEFORE RELEASE OF BIDDING OR PRE-QUALIFICATION DOCUMENTS
NOTIFICATION BEFORE PREQUALIFICATION/BIDDING SPECIFIC PROCUREMENT NOTICE
• REQUEST FOR PRE-QUALIFICATION OR BIDS FOR SPECIFIC CONTRACTS
• PUBLISHED IN:
– ONE NATIONAL NEWSPAPER (REQUIRED)
– OFFICIAL GAZETTE (IF ANY)
– DIRECT NOTICE TO FIRMS RESPONDING TO GPN (REQUIRED)
4
NOTIFICATION (CONTD)
• SPECIFIC UN DEVELOPMENT BUSINESS (OPTIONAL)
• 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)
PROCUREMENT PROCESS FOR GOODS, WORKS AND SPECIALIZED SERVICES
PROCUREMENT PROCESS FOR GOODS, WORKS AND SPECIALIZED SERVICES
5
EQUAL OPPORTUNITY• TIME FOR BID SUBMISSION -- GENERALLY 8 TO 12 WEEKS
FOR LARGE CONTRACTS BUT NOT LESS THAN 6 WEEKS
• FAIR CONDITIONS OF CONTRACT -- USE OF BANK’S STANDARD BIDDING DOCUMENTS MANDATORY
• BROAD SPECIFICATIONS (IDENTIFY MANDATORY AND DESIRABLE)
EQUAL TREATMENT OF BIDDERS• DISCLOSE EVALUATION CRITERIA
• APPLY WITHOUT DISCRIMINATION
AWARD TO LOWEST EVALUATED BID
PROCUREMENT PROCESS FOR GOODS, WORKS AND SPECIALIZED SERVICES
6
ICB STEPS 1) NOTIFICATION/ADVERTISING 2) (PREQUALIFICATION) WHERE SPECIFIED IN LN/CR 3) ISSUE BIDDING DOCUMENTS 4) SUBMISSION OF BIDS 5) PUBLIC BID OPENING 6) SEND MINUTES OF BID OPENING TO BANK 7) EVALUATE AND PREPARE REPORT
• SELECTION OF THE LOWEST EVALUATED BID
• POSTQUALIFICATION (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
PROCUREMENT PROCESS FOR GOODS, WORKS AND SPECIALIZED
SERVICES
7
OTHER METHODS OF PROCUREMENT
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 EACH NON-ICB
METHOD AS PER LOAN/CREDIT AGREEMENT SHOULD NOT BE EXCEEDED
9
LIMITED INTERNATIONAL BIDDING NATIONAL COMPETITIVE BIDDING SHOPPING FORCE ACCOUNT DIRECT CONTRACTING MINOR WORKS UN AGENCIES (UNICEF/ILO/WHO) FINANCIAL INTERMEDIARIES (COMMERCIAL PRACTICES) BOO-BOT-BOOT LOAN GUARANTEED BY BANK COMMUNITY PARTICIPATION
OTHER METHODS OF PROCUREMENT
10
LIMITED INTERNATIONAL BIDDING APPROPRIATE WHEN
THERE ARE ONLY LIMITED NUMBER OF SUPPLIERS CONTRACT AMOUNTS ARE VERY SMALL OTHER EXCEPTIONAL REASONS MAY JUSTIFY
DEPARTURE FROM ICB
OTHER PROCUREMENT METHODS
11
LIMITED INTERNATIONAL BIDDING NO PUBLIC ADVERTISEMENT BUT LIST OF SUPPLIERS TO BE
INVITED TO BID AND BIDDING DOCUMENTS SHOULD BE CLEARED WITH BANK
LIST OF SUPPLIERS SHOULD BE BROAD BASED ALL KNOWN SUPPLIERS SHOULD BE INVITED WHEN THERE ARE
ONLY LIMITED NUMBERS BIDDING DOCUMENTS WILL BE SAME AS FOR ICB EXCEPT THAT
THERE WILL BE NO DOMESTIC PREFERENCE CLAUSE MINIMUM BIDDING TIME 4 TO 6 WEEKS PUBLIC BID OPENING REQUIRED (SEND MINUTES TO BANK) EVALUATE BIDS -- PREPARE EVALUATION REPORT SEND TO BANK FOR CLEARANCE AWARD SHOULD BE MADE TO THE LOWEST EVALUATED BID
OTHER PROCUREMENT METHODS
12
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
OTHER PROCUREMENT METHODS
13
NATIONAL COMPETITIVE BIDDING (CONTD) NATIONAL PROCEDURES ACCEPTABLE ONLY WHEN CPAR/SIDE
LETTER/MINUTES OF NEGOTIATIONS OR ANY OTHER DOCUMENTS IDENTIFY UNACCEPTABLE FEATURES IN NATIONAL PROCUREMENT PROCESS, IF ANY, AND BORROWER AGREES TO REMOVE THEM
NATIONAL PRESS PUBLICATION IS REQUIRED BIDDING TIME SHOULD NOT BE LESS THAN 4 WEEKS NCB DOCUMENT SHOULD BE PREPARED AND CLEARED WITH BANK
(USE REGIONAL DOCUMENT, IF REQUIRED) PAYMENT IN LOCAL CURRENCY, NATIONAL LANGUAGE
ACCEPTABLE 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
OTHER PROCUREMENT METHODS
14
SHOPPING APPROPRIATE WHEN
• OFF THE SHELF GOODS
• VALUES ARE SMALL NO FORMAL BIDDING DOCUMENT REQUIRED NO PUBLIC BID OPENING REQUIRED
OTHER PROCUREMENT METHODS
15
SHOPPING (CONTD)
OBTAIN QUOTATIONS (PROFORMA INVOICE) IN WRITING FROM AT LEAST 3 SUPPLIERS 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 AWARD SHOULD BE MADE TO THE LOWEST EVALUATED
OFFER (RETAIN EVALUATION REPORT) PURCHASE ORDER WILL INDICATE TERMS OF ACCEPTED
OFFER
OTHER PROCUREMENT METHODS
16
DIRECT CONTRACTING INCLUDES:
EXTENSION OF EXISTING CONTRACT RATIONALE:
STANDARDIZATION PROPRIETARY ITEMS PROCESS DESIGN REQUIRES CRITICAL ITEMS FROM
SPECIFIC SUPPLIER AS CONDITION OF CONTRACTOR PROVIDING PERFORMANCE GUARANTEE
IN EXCEPTIONAL CASES SUCH AS RESPONSE TO NATURAL DISASTER
OTHER PROCUREMENT METHODS
17
DIRECT CONTRACTING (CONTD) ENSURE REASONABLENESS OF PRICE AND SEEK ADDITIONAL
INFORMATION AS REQUIRED SUCH THAT THE PRICES COMPARE FAVORABLY WITH OTHER SIMILAR TRANSACTIONS
FOR LARGE CONTRACTS VERIFICATION OF PRICE AND QUALITY MAY BE REQUIRED FROM INDEPENDENT SURVEILLANCE COMPANY
ENSURE CONTRACT CONDITIONS ARE SATISFACTORY AND INTEREST OF THE PURCHASER/EMPLOYER ARE PROTECTED
BANK’S NO-OBJECTION PRIOR TO CONTRACT AWARD REQUIRED
OTHER PROCUREMENT METHODS
18
MINOR WORKS (shopping) 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 USE SAMPLE DOCUMENT
OTHER PROCUREMENT METHODS
19
NO SPECIAL PREFERENCE TO BE ALLOWED SHOULD COMPETE WITH PRIVATE SECTOR ANY SPECIAL PROCEDURES, SUCH AS PAYMENT, TO BE
TAKEN INTO ACCOUNT IN EVALUATION STANDARD CONTRACT CONDITIONS NEGOTIATED WITH
UN AGENCIES TO BE USED ANY SOLE SOURCING REQUIRES JUSTIFICATION
UN Agency
20
FORCE ACCOUNT APPROPRIATE WHEN
QUANTITIES CANNOT BE DEFINED IN ADVANCE WORKS SMALL AND SCATTERED IN REMOTE AREAS AND
QUALIFIED BIDDERS ARE UNLIKELY TO BID WORK TO BE CARRIED OUT WITHOUT DISRUPTING
ONGOING OPERATION RISKS OF UNAVOIDABLE WORK INTERRUPTIONS BETTER
BORNE BY BORROWER THAN CONTRACTOR EMERGENCY NEEDING PROMPT ATTENTION
OTHER PROCUREMENT METHODS
21
FORCE ACCOUNT APPLICABLE FOR WORKS AND NOT GOODS IDENTIFICATION OF WORKS BY FORCE ACCOUNT AS PER
PROCUREMENT PLAN EXECUTION ONLY BY DEPT OF IMPLEMENTING AGENCY COST CONTROL AND EFFICIENCY ARE REQUIRED IN EXECUTING
WORK PROPER SUPERVISION OF QUALITY IS REQUIRED STANDARDS REQUIRED FOR THE WORK PROPER DOCUMENTATION OF EXPENDITURES ON LABOR,
MATERIALS, USE OF EQUIPMENT, OVERHEADS, ETC. TO BE MAINTAINED FOR PAYMENTS AND INSPECTION PURPOSES
OTHER PROCUREMENT METHODS
22
COMMUNITY PARTICIPATION PARTICIPATION OF LOCAL COMMUNITIES PARTICIPATION OF NON-GOVERNMENTAL ORGANIZATIONS INCREASED UTILIZATION OF LOCAL KNOW-HOW AND
MATERIALS EMPLOY LABOR-INTENSIVE OR OTHER TECHNOLOGIES PROCUREMENT PROCEDURES, SPECIFICATIONS AND
CONTRACT PACKAGING ADAPTED TO REFLECT THESE CONSIDERATIONS
PAD/IMPLEMENTATION MANUAL/PROJECT IMPLEMENTATION PLAN TO DESCRIBE APPLICABLE PROCEDURES
OTHER PROCUREMENT METHODS
23
PRIVATE SECTOR APPROACHES
(BOO-BOT-BOOT)
TWO ALTERNATIVE APPROACHES BOO-BOT-BOOT ENTREPRENEUR SELECTED BY ACCEPTABLE
ICB/LIB PROCEDURES BIDDING RESTRICED TO THOSE WHO COULD MOBILIZE
FINANCING BID EVALUATION CONSIDERS FINANCING AMOUNT AND
TERMS IN ADDITION TO BID PRICE AND TECHNICAL CRITERIA
ENTREPRENEUR TO PROCURE GOODS/WORKS/SERVICES UNDER OWN PROCEDURES
IF ENTREPRENEUR IS NOT SELECTED BY ICB/LIB PROCEDURE THEN:
GOODS & WORKS FINANCED BY BANK SHOULD BE PROCURED BY ICB OR LIB PROCEDURES
OTHER PROCUREMENT METHODS
24
COMMERCIAL PRACTICE
(PRIVATE SECTOR) BIDDING
SMALL VALUE
• DIRECT: SPARES, PROPRIETARY GOODS, TECHNOLOGY TRANSFER
• COMPETITION: STANDARD GOODS LARGE VALUE
• ICB PROFORMA INVOICES QUOTATIONS: AT LEAST 3 FROM 2 DIFFERENT
COUNTRY SOURCES
OTHER PROCUREMENT METHODS
25
GUARANTEE LOANS
– PROCUREMENT FINANCED BY COMMERCIAL LOANS GUARANTEED BY BANK TO FOLLOW:
• PROCEDURES WHICH ASSURE PROJECT TO BE CARRIED OUT DILIGENTLY AND EFFICIENTLY
– GOODS AND WORKS TO BE PROCURED:• BE OF SATISFACTORY QUALITY• COMPATIBLE WITH BALANCE OF PROJECT• DELIVERED/COMPLETED IN TIMELY MANNER• PRICE DOES NOT AFFECT ECONOMIC AND FINANCIAL
VIABILITY
OTHER PROCUREMENT METHODS
26
Annex H - Checklist comparing National Competitive Bidding Procedures and World Bank Policy
1. Are there eligibility restrictions based on nationality of bidder and/or origin of goods (other than primary boycotts)?
2. Are there primary boycotts which are established by law?
3. Are bidding opportunities advertised in the local press?
4. Are prospective bidders allowed at least 30 days for bid preparation (except for commodities/small goods contracts)?
5. Are contractors/suppliers pre-qualified for large/specialized contracts?
6. Are minimum experience, technical and financial requirements (for pre- or post-qualification) explicitly stated in the documents?
7. Is an invitation to pre-qualify advertised for each procurement involving large or complex potential contracts?
8. Are joint ventures with local firms required for foreign firms’ eligibility?
9. Are joint venture partners jointly and severally liable?
Yes No Bank Policy
Not allowed
Only primary boycotts are acceptable
Required
Required
Required
Required
Required
Not allowed
Required
27
10. Are there set limitations to the number of firms who can bid for a contract?
11. Are parastatals allowed to bid?
12. Are bidders required to register with a local or federal authority as a prior condition for bidding?
13. Are extensions to bid validity allowed?
Yes No Bank Policy
Not allowed
Acceptable only if they (i) are financially autonomous, (ii) operate under commercial law and (iii) are independent from borrower and its purchasing/contracting authority
Should be discouraged. Acceptable only if registration criteria, process and cost reasonable/efficient and qualified foreign firms not precluded from competing
Acceptable only if justified by exceptional circumstances
28
14. Are there restrictions on the means of delivery of bids?
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 material?
17. Is public bid opening required? Does it occur immediately or closely following the bid submission deadline?
18. Is a “two envelope” bid opening procedure permitted for procurement of goods or works?*
19. Is automatic rebidding required if too few bids are received?
Yes No Bank Policy
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.
Not allowed
Not allowed, except for unskilled labor, if available locally
Required
Not allowed
Acceptable, provided all responsive bidders are allowed to bid, the process is efficient and no serious delays result
* All technical envelopes are opened first and, after review, price envelopes of all or only qualified/responsive bids are opened in the second round
29
20. Is “bracketing” used in bid evaluations?**
21. Is award made to lowest evaluated qualified and responsive bidder?
22. Are price negotiations conducted with “winning” bidders prior to contract signature?
23. Are price adjustment provisions generally used?
Yes No Bank Policy
Not allowed
Required
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)
Not required, but recommended for works contracts of 1 year or more in duration when domestic inflation rate is high
** Rejection of bids outside a range or “bracket of bid values.
30
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?
Yes No Bank Policy
Required (to be acceptable they should be balanced, reasonable and clearly address the most important issues that lead to problems during performance, e.g. risk allocation, payment, inspection, completion/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.
31
SBD Procurement of Goods
Section I. Instructions to BiddersSection II. Bidding Data Sheet (BDS)Section III. Evaluation and Qualification
CriteriaSection IV. Bidding FormsSection VI. Schedule of Requirements
32
SBD Procurement of Goods(CONTD)
Section VII. General Conditions of Contract
Section VIII. Special Conditions of Contract
Section IX. Contract Forms