procurement of goods and works - icn nz.pdf · procurement of goods and works new zealand october...
TRANSCRIPT
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Business Opportunities Seminar
Procurement of Goods and Works
New Zealand October 2013
Presented By: Amr J. Qari, Procurement Specialist
Asian Development Bank
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Agenda
ADB Business Opportunities
ADB’s Procurement Policy Framework
Bidding Dos and Don’ts
Bid Evaluation Fundamentals
ADB Disbursement Procedures
Q&A
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Country Strategy and Business Plans Early notices General Procurement Notice Procurement Plan
Specific Procurement notices Invitation for Prequalification Invitation for Bids
Hop-on Opportunities Prequalified Contractors Contracts Awarded
Identifying Opportunities for
Goods and Works
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Documents Governing
Procurement
Loan Agreement (Schedule 4)
Procurement Guidelines
Standard Bidding Documents
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Procurement Guidelines
Purpose
To inform Borrowers as well as Suppliers,
Manufacturers and Contractors of the
general principles and procedures to be
observed in carrying out procurement
under ADB finance
Additional arrangements may be set out in
the Loan Agreement
PROCUREMENT
GUIDELINES
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Procurement Guidelines
Responsibilities
The Borrower (Executing Agency) is
responsible for all procurement activities
ADB has the obligation ensure compliance with
key principles
Goods/Woks from ADB member countries
Economy and Efficiency
Fairness
Transparency
Promotion of Domestic Industries
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Procurement Guidelines
Applicability
Contracts financed by ADB entirely or partly
Guidelines must be followed
Contracts not financed by ADB but part of Project Borrower may adopt its own procurement procedures.
Works/goods to be procured must be . . .
. . . of satisfactory and compatible quality
. . . completed and/or delivered in timely fashion
. . . priced not to affect adversely viability of project
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Procurement Guidelines
Eligibility
Limitation for Participation Ideally only by bidders' capability to fulfill the contract
Exceptions Compliance with UN Security Council decision
Conflict of interest (i.e., party has interests that could
improperly influence that party’s performance of official duties or
responsibilities, contractual obligations, or compliance with law)
Government owned enterprises (unless they are legally and
financially autonomous, operate under principles of commercial law
and not dependent on executing agency)
Declaration of ineligibility by ADB
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Procurement Guidelines
Misprocurement
If Procurement is not carried out as agreed ADB will
. . . declare misprocurement
. . . cancel corresponding portion of financing
. . . exercise other remedies
If appropriate, ADB may permit rebidding
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Procurement Guidelines
Fraud and Corruption Corrupt Practice the offering, giving, receiving, or soliciting, directly or indirectly, anything of value to influence improperly the actions of another party (e.g. bribery, kickbacks, extortion, bid manipulation)
Fraudulent Practice action or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an obligation (e.g., false bid security/bank guarantees, work certificates, financial statements)
Collusive Practice an arrangement between two or more parties designed to achieve an improper purpose, including influencing improperly the actions of another party (e.g. leaking of bid information, rigged specifications)
Coercive Practice impairing or harming, or threatening to impair or harm, directly or indirectly, any party or its property to influence improperly the actions of a party
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ADB’s Anticorruption Policy requires all parties to observe
the highest standard of ethics during the procurement and
execution of such contracts. In pursuance of this policy,
ADB will
Procurement Guidelines
Fraud and Corruption
Declare a firm ineligible either indefinitely or for a stated period of time
Cancel the corresponding portion of a loan
Inspect accounts and records of suppliers and contractors and have them audited by auditors appointed by the Bank
Reject a proposal to award contract
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Procurement Guidelines
Procurement Plan
Executing Agency shall provide ADB its Procurement Plan for approval before loan negotiations
Procurement Plan should specify:
Number and size of packages for Supply, Works, Design-Supply-Install (Turnkey), Consulting Services
Timing (Advertisement, Closing Date, Contract Award)
Procurement Method (ICB, LIB, NCB, Shopping, etc.)
ICB Bidding Procedures
ADB Review Procedures (Post or Prior review)
Modifications to National Competitive Bidding Procedures
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Procurement Guidelines
Procurement Plan
Contract Purpose
Works Contract for construction of engineering structures
such as roads, bridges and dams. Unit price or lump
sum contract may be used depending on whether
input requirements are known with precision.
Supply Contract for supply and delivery of equipment or
materials to specified location. Scope may include
provision of related services such as installation,
testing, commissioning and training.
Design-Supply-
Install (Turnkey)
Single contract provides engineering design, supply
of equipment, construction, testing and
commissioning of complete facility to meet specified
performance targets.
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Two Stage Two-Stage: Two-Envelope
Single-Stage: Two-Envelope
Single-Stage: One-Envelope
Procurement Guidelines
ICB Bidding Procedures
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ADB Approval Deadline
STOP
Preparation
Technical Proposal
Financial Proposal
Evaluation
Technical
Financial
Technical Proposal
Financial Proposal
Procurement Guidelines Single-Stage: One-Envelope
Bidding Procedure (Default)
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Speed
Transparency
Technical non-conformities weighed against potential cost savings before bid rejection
PROS
Risk that bid evaluation will be less objective and ignore significant technical deviations
Risk that lowest bidder will initiate complaints/litigation if declared non-responsive
CONS
Procurement Guidelines Single-Stage: One-Envelope
Bidding Procedure (Default)
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Procurement Guidelines
Forms of Procurement International Competitive Bidding
Limited International Bidding
National Competitive Bidding
Shopping
Direct Contracting
Force Account
Procurement from Specialized Agencies
Procurement Agents
Inspection Agents
Procurement in Loans to Financial Intermediaries
Procurement under BOO / BOT / BOOT, Concessions and Similar Private Sector Arrangements
Performance Based Procurement
Procurement under Loans Guaranteed by ADB
Community Participation in Procurement
Procurement under Disaster and Emergency Assistance
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Procurement Guidelines
International Competitive Bidding
Fairness, Transparency For prospective bidders from eligible source
countries, adequate, fair and equal opportunities
ICB is the default procurement method
Threshold Contract Values (US $) Goods - $500,000 to $1,000,000 Works - $1,000,000 to $10,000,000
Value for Money For Borrower, wide range of choices in bid
selection from among competing suppliers / contractors
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Procurement Guidelines
Sequence of ICB Activities
Bid Opening
Bidding Documents
Prequalification
Advertising
Award of Contract
Bid Evaluation
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Procurement Guidelines
Typical Time Line For ICB Activities
-4 -3 -2 -1 1 2 3 4 5 6 7 8 9 10 11
Bid Packaging
Preparation of PQ Document
Prequalification
Preparation of Bidding Document
Bidding
Award
Month
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Prequalification
•Advertisement and Invitation to Prequalify •Evaluation Criteria •Evaluation of Applications
Preparation of Bid Documents
•Invitation to Bid •Advertisement •Bid Documents
Bid Evaluation
•Evaluation Report •Proposal of Award
Award of Contract
•Certified Contract
Procurement Guidelines
ADB Prior Review
EA
Procurement Plan
• Contracts (Goods, Works, Services) • Procurement Mode • Procurement Timing • ADB review (post/prior)
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Standard Bidding Documents –
Outline and Components
Part I: Bidding Procedures Section 1. Instruction to Bidders Section 2. Bid Data Sheet Section 3. Evaluation and Qualification Criteria Section 4. Bidding Forms Section 5. Eligible Countries
Part II: Requirements Section 6. Supply or Works Requirements
Part III: Contract Section 7. General Conditions of Contract Section 8. Particular Conditions of Contract Section 9. Contract Forms
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Standard Bidding Documents –
Evaluation Criteria
Scope
Multiple Contracts
Technical Criteria
Economic Criteria Deviations from Terms of Payment
Deviations from Delivery and Completion Schedule
O&M Costs
Spare Parts
Performance and Productivity
Margin of Preference
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Standard Bidding Documents –
Qualification Criteria
Size of Operation (average annual turnover)
Contractual Experience (number of contracts completed)
Technical Experience (years in production and units sold)
Production Capacity (type, size, and quantity required)
Financial Position (audited annual financial statements)
Cash flow Capacity (access to liquid assets)
Litigation History (current or past litigation)