bof 2011: procurement of goods and works - jeff taylor

8/7/2019 BOF 2011: Procurement of Goods and Works - Jeff Taylor

1/44

B O S 1

Procurement ofGoods and Works

Asian Development Bank Business Opportunities Fair 2011

Presented byJeff Taylor, Senior Procurement SpecialistAsian Development Bank

2 March 2011, Manila
http://www.adb.org/documents/events/2011/business-opportunities-fair/default.asp


2/44

B O S 2

Business OpportunitiesFinding the Contract www.adb.og


3/44

B O S 3

Read UN Development Business (UNDB on

Check Opportunities www.adb.org

Get to know the ADB.

Study the Country

Business OpportunitiesFinding the Contract

PLEASE
http://c/Documents%20and%20Settings/EEA/Documents%20and%20Settings/brz/My%20Documents/ADB/BOS/BOS%20EUR%202005/Web%20Demo/ADB%20Home.htmhttp://c/Documents%20and%20Settings/EEA/Documents%20and%20Settings/brz/My%20Documents/ADB/BOS/BOS%20EUR%202005/Web%20Demo/ADB%20Home.htm


4/44

B O S 4

Executing AgencyEnglish Language Newspaper of general distribu

in Borrowers country or well-known websiteTrade Journals (optional)

ADBADB Business Opportunities at (www.adb.org)UN Development Business

Business OpportunitiesAdvertising and Notices
http://www.adb.org/http://www.adb.org/


5/44

B O S 5

Business Opportunities

ADBs Procurement System


6/44

B O S 6

ADBBoard Policy

CommercialPractices

OtherMDBs

ADB

Experience

ADBCharter

Procurement SystemSources

ProcurementGuidelines


7/44

B O S 7

Responsibility for Procurement Actions

The Borrower (Executing Agency) is responsibfor all procurement activities

ADB will review the procurement activities toensure that the ADBs Procurement Guidelinesare followed

Procurement SystemResponsibilities


8/44

B O S 8

Procurement SystemEligibility

Eligibility by NationalityGoods must be produced in a member country

Supplier must be a national of a member coun

Other Eligibility FactorsNo conflicts of interestNot sanctionedState-owned enterprises


9/44

B O S 9

Economy and Efficiency

Fairness

Transparency

Procurement SystemBasics

Development of Domestic Industry.


10/44

B O S 1 0

Procurement SystemSource of Funds

Contracts not financed by ADBBorrowers procurement procedures apply

Must be suitable for the projectContracts financed by ADB entirely or par

ADB System must be followed


11/44

B O S 1 1


Anti-corruption


12/44

B O S 1 2

Procurement BasicsAnticorruption Policy - Definitions

Corrupt Practice

Fraudulent PracticeCollusive Practice

Coercive Practices


13/44


14/44

B O S 1 4


Procurement Methods


15/44

B O S 1 5

Procurement MethodsInternational Competitive BiddingLimited International BiddingNational Competitive BiddingShoppingDirect Contracting (Single Source)Force Account

Performance-based procurementProcurement under Loans to Financial IntermediariesProcurement under Private Sector LoansProcurement under Disaster and Emergency Assistance

Community Participation in Procurement.

Procurement MethodsOverview


16/44

B O S 1 6

Must be used for contracts valued at US$0.5 millor more for Goods, above US$1.0 million for wo

Provides for borrowers a wide range of choices inselection from among competing suppliers /contractors

Gives prospective bidders from eligible sourcecountries adequate, fair and equal opportunities

Procurement MethodsInternational Competitive Bidding (IC


17/44

B O S 1 7

AdvertisementPrequalificationReference to ADBLanguage

Bid SecuritySource of Procurement

Currency of Bid

Currency of Bid ComparisoCurrency of Payment

Domestic Preference SchemPublic Bid Opening

Clarification and AlterationAward of Contract

Rejection and Retendering

Performance Security

Essentials of ICB

Bid Preparation Period

Procurement MethodsInternational Competitive Bidding


18/44

B O S 1 8

Two StageTwo-Stage: Two-Envelope

Single-Stage: Two-Envelope

Single-Stage: One-Envelope

Bidding ProceduresOverview


19/44

B O S 1 9

Procurement Plan

List of goods to be procured Proposed grouping of goods into contracts Proposed number and scope of civil works contra

Prequalification

Invitation to Prequalify Prequalification Document Evaluation of Applications

Preparation ofBidding Documents

Invitation to Bid Bidding Documents

Bid Evaluation Evaluation Report Proposal of Award

Award of Contract

Contract as executed

ADB Review Review of Procurement Actions

EA


20/44

B O S 2 0

Award of contracts for values of $10.0mill. and abomust be approved by the ADB

Procurement CommitteeChairman :Principal Director, COSOMembers : Assistant General Counsel

Director, Sector DivisionSecretary : Principal Procurement Specialist

(Non-Voting)

ADB Review Procurement Committee


21/44

B O S 2 1

Matters for ConsiderationFor contracts estimated at $10.0 million or more

Prequalification EvaluationTechnical Evaluation (2-stage/2-envelope bidding)Bid Evaluation AwardProposal for Rebidding

Proposal for CancellationActions in conflict with the ADB requirementsProposal to vary previous PC decisionsAny matters designated by Management.

ADB Review Procurement Committee


22/44

B O S 2 2

Preparation of Bids

Bid Opening

Bid Evaluation

Award of Contract

Prequalification

Procurement Sequence


23/44

B O S 2 3

JV RequirementsAll partners must be eligibleJ.V. agreement must contain provision for joint anseveral liabilityOne of the partners must be authorized to be incharge

Joint Ventures

P i f Bid


24/44

B O S 2 4

Preparation of BidsImportant Factors


25/44

B O S 2 5

Be compliant

No conditionalities

Get official clarification



26/44


27/44

B O S 2 7

Ensure bid is complete

Make final check of bidAmount, validity and text of Bid SecuritySignatures and power of attorneyJoint venture agreement enclosedReferences enclosedDiscounts in covering letter or appropraiate place asspecified in the bidding documentMarking of envelopes



28/44

B O S 2 8

Be on time

During opening ensureAll relevant prices are read outAll discounts are read outPresence and amount of bid security is read outNo envelope remains unopened

All the above is recorded correctlyThe record is signed by all bidders present and by the buyer

Be Aware of Possible Extension



29/44

B O S 2 9

Business Opportunities Seminar

How Your Bid is Evaluated


30/44

B O S 3 0

Bid EvaluationPurpose

Determine the lowest evaluated and substantially responsive bid


31/44

B

O S 3 1

Complete Basic Data Sheet

Attach Record of Bid Opening

Prepare Table of Bid PricesExamine Bids for Responsiveness

Identify Bids for Detailed Evaluation

Evaluate Bids in DetailAdjust Bid Prices

Apply Other Adjustments

Bid EvaluationTypical Sequence


32/44

B

O S 3 2

Bid EvaluationBasics

ConfidentialityAfter opening of bids no information to be exchanged with non-authorized persons on

Substance of bidPreliminary examination results and statusEvaluation results and statusRecommendation of award


33/44

B

O S 3 3


Clarification and Alteration of BidsOnly clarifications not changing the substance or the price of thebid may be requested or accepted by the Borrower

Arithmetical ErrorsNot a cause for bid rejectionDiscrepancy between Unit Price and Total Price

Unit Price will prevail

Discrepancy between Total Bid Amount and Sum of Total PriTotal Prices will prevail


34/44

B

O S 3 4


Compliance with Bid DocumentsBids will be rejected if they

Do not substantially conform to Specifications

Contain inadmissible reservations to bid documentsDo not substantially respond to requirements


35/44

B

O S 3 5


Extension of Bid ValidityExceptional occurrenceAll bidders given the optionBidders willing to extend bid validity

cannot modify substance of bidmust extend validity of bid security

Negotiation with BidderNo negotiation to obtain more suitable offer, except if

Only one BidderOnly conforming Bid price is disproportionately high


36/44


37/44

B

O S 3 7


Exchange Rates

Bid comparison uses single currency as specified in bid documen(usually local currency or US$)

Bids may be quoted in currency of bidders choice, usually homecurrency, purchasers currency, and internationally traded currency,

or mix of all three (maximum of three currencies)


38/44

B

O S 3 8


Other Factors Considered in EvaluationEfficiency and Reliability of EquipmentMethod of ConstructionTime for CompletionDelivery TimeAvailability of After-Sales-ServiceAvailability of Spare PartsOperating Cost

id l i


39/44

B

O S 3 9

PurposeTo provide margin of preference to domesticallymanufactured goods or domestic contractors for

ADB-financed projectsTo allow domestic firms to compete with foreign firmon more equal footing

ConditionsGranting of preference subject to conditionsApplies only to ICBNeeds to be applied for by BorrowerTo be specified in Loan Agreement if scheme is appl

Bid EvaluationDomestic Preference

Bid E l i


40/44

B O S 4 0

Responsive bids are to be classified into three

categories:Category I: Goods manufactured locally with m

than 30% domestic value added

Category II: Goods manufactured locally with lethan 30% domestic value addedCategory III: Imported goods


Supply Contracts

Bid E l i


41/44

B O S 4 1

Responsive bids are to be classified into two

categoriesCategory IBids offered by Domestic Contractors and Joint Venture

eligible for the PreferenceCategory IIBids offered by other Contractors

Civil Works



42/44

Di b


43/44

B O S 4 3

Direct Payment Procedure

Reimbursement Procedure

Commitment Procedure

Imprest Fund Procedure

DisbursementProcedures

Di b


44/44

B O

1 - Application for LC

1

SuppliersBank

ExecutingAgency

BorrowersBank

2

2 - LC Opened3

3 - Application for CL

44 - CL Approval

5

DisbursementCommitment Procedure