Download - Procurement Under OP/BP 8.0
OPCPR- 03/26/2008 1
Procurement Under OP/BP 8.0
This presentation will cover…
Organizational and Institutional Support
Simplified Procurement Arrangements
Fiduciary Safeguards
OPCPR- 03/26/2008 2
Organizational and Institutional Procurement Support
Exceptionally - the Bank executes start-up activities:
In the absence of other alternatives of implementation
Requires an authorization from the Managing Director
Bank involvement will be through GSD
Contracts are financed from a PPF, or a trust fund grant
OPCPR- 03/26/2008 3
Organizational and Institutional Procurement Support
Regional Vice President (RVP) with the Country Director (CD) decide to establish a Rapid Response Committee (RRC)
Procurement specialists may be delegated higher review authority to task teams
Regional emergency designated procurement staff have been assigned
Additional resources for Bank supervision
OPCPR- 03/26/2008 4
Organizational and Institutional Procurement Support
Harmonization of procurement procedures, thresholds, review arrangements among donors
Use of pooled funds with common simplified procurement procedures
OPCPR- 03/26/2008 5
Procurement Agents and Management Contractors
Bank maintains a list PA from which Borrowers can draw from in emergency situations
Borrower has the option to select a firm using CQS
Main criteria for selection may be the timely availability of the key personnel
OPCPR- 03/26/2008 6
Procurement Agents and Management Contractors
The selection of the PA is carried out in accordance with Para. 3.10 of the Procurement Guidelines or Para. 3.17 of the Consultant Guidelines
Procurement should be carried out in accordance with procurement procedures, Loan Agreement and Procurement Plan
Where large numbers of small contracts- management contractor
OPCPR- 03/26/2008 7
Simplified Procurement Arrangements
Rapid Capacity Assessments
Can be conducted by Bank staff or by any other qualified resource person or entity
The Regional Procurement Manager clears
Template for simplified RPCA is available
OPCPR- 03/26/2008 8
Simplified Procurement Procedures
Single-source selection (SSS) SSS of consulting firms in accordance with (Para.
3.10 (b) of the Consultant Guidelines)
Only if it presents a clear advantage over competition
Firms that are already working in the country, proven track - may be the most suitable option for the start-up activities
Consultants selected on a single-source basis may be given the right to participate in future assignments
OPCPR- 03/26/2008 9
Selection of consulting firms through Consultants’ Qualification (CQS)
CQS, carried out in accordance with Para. 3.7
of the Consultant Guidelines…. However,
The application is not limited to small assignments (footnote 32 of CG)
Ceiling for the use of higher threshold will be determined by the RPM
Advertising for expressions of interest may be forgone, or limited to the local/ provincial level
OPCPR- 03/26/2008 10
Pool of Experts
Support to counterpart agencies at various steps of project execution
Fees may be resolved, at time of pre-selection, and prescribed in a framework agreement – similar in concept to an indefinite Delivery Contracts
OPCPR- 03/26/2008 11
Civil Works and Goods
Direct Contracting
In accordance with (paras. 3.6 (a) and 3.6 (e) of the Procurement Guidelines
Extend an existing contract to respond to a natural disaster
The price is reasonable and that no advantage could be obtained by further competition
OPCPR- 03/26/2008 12
Civil Works and Goods
Shopping
In accordance with (para 3.5 of the Procurement Guidelines)
Readily available off-the-shelf goods, standard specification commodities, or simple civil works
Threshold may be set on a case by case basis and cleared by the RPM
At least three price quotations for the purchase of goods, works, or services (other than consulting services)
OPCPR- 03/26/2008 13
Use of Positive Lists
A quick-disbursing component designed to finance a positive list of imported or locally produced goods.
Indicators (quantitative or qualitative) to monitor progress during implementation and evaluate outcomes upon completion.
Agreement on the conditions for the release of financial trenches and the documentation and certifications—such as customs and tax certificates or invoices—to be required for locally procured goods.
Would normally follow the national emergency procedures for government procurement, or commercial practices from the private sector if they are acceptable to the Bank.
OPCPR- 03/26/2008 14
Procurement of Commodities
Market prices of commodities, such as grain, fertilizer, and fuel, may be used in accordance with Para. 2.68 of the Procurement Guidelines
Customs duties for emergency commodities should be set at reasonable levels
Bank’s approval to finance such commodities may be conditional on the temporary exemption or reduction of customs duties
OPCPR- 03/26/2008 15
Civil Works and Goods
Pre-qualified suppliers and contractors
Using lists of pre-qualified suppliers and contractors to whom periodic invitations are issued
This approach may be used for a large number of similar simple contracts of any size
Suppliers and contractors would be asked to provide quotations for simple unit prices. Contracts awarded on a competitive basis, may be extended up to two years
OPCPR- 03/26/2008 16
Civil Works and Goods
Shorter periods for submission of bids
Bidding periods shorter than 21 days for NCB and 6 weeks for ICB should be cleared with the RPM
OPCPR- 03/26/2008 17
Civil Works and Goods
Waiving bid and performance security requirements para. 2.14 of the Guidelines leaves to the borrower the
option of requiring a bid security
Prior review thresholds Based on the capacity assessment of the program management entity Prior review threshold may be set higher than the regional ones Requires establishing a stringent monitoring and review system The objective is to minimize the need of declaring as declaring
misprocurement, at post-review
OPCPR- 03/26/2008 18
How to minimize the fiduciary risks
Emergency projects has increased risk of
fraud and corruption, (abuse of direct
contracting, false delivery certification). Team
may consider;
Sequenced approach allowing low-risk
components and activities to move ahead,
while necessary preparation are done for
activities that represent higher risks
OPCPR- 03/26/2008 19
How to minimize the fiduciary risks
Monitoring/ Procurement Agents to provide fiduciary assurance to the Borrower, the Bank and other donors
Procurement agents that are given the responsibility to handle procurement on the borrower’s behalf
Pre-shipment inspection and/or local independent verification at delivery
Intensified Bank supervision to address and mitigate the increased risks associated with such emergency operations (CO and HQ)