ASARECA

Procurement guidelines

Goods and Works

PROCUREMENT OF GOODS By Procurement and Contracting Officer

ITAZA MUHIIRWA

Procurement Steps

Prepare preliminary equipment and other goods list.

For works prepare detailed designs and bills of quantities.

Prepare cost estimates ( Works ) Prepare bidding documents Seek approval for the bidding documents Advertise

Procurement Steps cont---

Issue bidding documents Review and evaluate bids Select lowest cost evaluated bidder Prepare evaluation report Seek approval for Evaluation report

Procurement steps continued ……….. Award Contract Delivery place should be specified in the bidding

document Receive goods and inspect for compliance Works are inspected by a consultant who issues a

certificate for payment at agreed stages. Install and commission (goods ) Payment ( certificate for works, and invoice and

goods received note for goods ) Supplier to train users if it is part of the contract Conduct project procurement evaluation

Methods of procurement of goods

International competitive Bidding - ICB Is the preferred procurement method for goods Affords opportunity to all eligible prospective bidders

from all countries How is it determined - by value usually above USD 200,000 and

US5,000,000 for works - Or when goods are to, be imported and require

payment in foreign currency

ESSENCE OF ICB

Adequate notification Equal opportunity -Time for bid submission -Fair conditions of contract -Broad specifications Transparency Public bid opening Disclosure of evaluation criteria Equal treatment of Bidders - Apply criteria without discrimination - No negotiation Award to the lowest evaluated responsive bid , meeting the

specified evaluation criteria

ICB PROCEDURES

One stage / single step – - One bid is submitted - is the commonest -Least contentious

Two stage Bidding -two envelopes -Technical and price submitted separately but at

the same time Technical evaluation is done first and price

proposals for the compliant firms are opened

Industrial Projects

First stage Invite technical proposals including

qualifications details Evaluate discuss and finalize technical

specifications

Second stage Invite bids on revised bids from qualified

bidders only

Other methods of procurement of goods

These methods are to be adopted

Where ICB would not be most economical and efficient method of procurement and where other methods are deemed more appropriate.

-The other methods must satisfy economy and efficiency

-Must ensure competition

-Transparency and value for money

Limited International bidding

Essentially ICB but in this case there is limited production by a few entities therefore there is direct invitation to the few known suppliers to bid/ selected bidders of proven capacity . The invitation should be sent to at least two countries – there is no open advertising

This method is used where Contract values are small There are only limited number of f suppliers and other exceptional reasons justifying the use

NATIONAL COMPETITIVE BIDDING

Competitive bidding advertised nationally for procurement of goods or works which by nature or scope are unlikely to attract foreign competition.

Local currency is specified Foreign bidders allowed if they are interested Foreign bidders are to be paid in local currency The contract values are small Goods are available at prices below the international market Prepare bidding document – Use Bank standard bidding

documents

National Competitive Bidding----

Approve bidding documents Advertise in National news paper Bidding period 4-6 weeks Evaluate Prepare evaluation report Approve evaluation report AWARD

Shopping

Shopping is a procurement method based on comparing price quotations obtained from several proven foreign or national suppliers

At least three quotations are compared to ensure competitive prices

Used for Procuring small amounts off shelf goods or standard specification commodities

Used for procurement in emergency projects or for urgent relief type operations

SHOPPING CONT-----

Requests for quotation shall indicate the description and quantity of goods as well as the desired delivery time

Under international shopping quotations should be solicited from at least two countries

There is no requirement for public opening Shopping is intended to be very simple But note that it is the least competitive and therefore

should not be abused

Direct Contracting

Direct contracting without competition may be an appropriate method under the following circumstances

Extension of existing contracts for works or goods awarded with procedures acceptable to the Bank

Standardization of equipment or spare parts to be compatible with the existing equipment

In exceptional cases such as response to natural disasters

Bidding documents

Standard bidding document for ICB Section 1 instructions to bidders Section 11 Bid data sheet Section 111 Evaluation and qualification

criteria Section iv Bidding forms Section v Eligible countries

Bidding documents ……..

Part 2 Supply requirements Section VI Schedule of requirements Part 3 Section VII General conditions of contract Section VIII Special conditions of the contract Section IX Contract forms

Bid security

The purpose of the bid security is to protect the buyer against bidders conduct

Buyer has an option of asking for a bid security The bid security shall be for the amount and and as per the form

specified in the bidding document Bid security shall be specified amount usually between2-5% of

the estimated cost of goods Bid security is to remain valid for 4 weeks beyond bid validity Bid security may be in the bid currency or any other convertible

currency

Evaluation

An evaluation report is prepared for approval by sub grantee/ASARECA/Bank

Notice of award is sent to bidder Contract is signed

Thank you