procurement in projects financed by islamic development bank country procurement workshop september...
DESCRIPTION
Selection Methods Project Procurement Division, OPSD 3 Republic of Indonesia, September 2015 Big and medium size assignments Quality and price factors are combined Minimum qualifying technical score is 75 to 80 points. The firms obtained highest combined technical and financial score selected for contract award Although the price is factor in overall selection but quality remains paramount for consideration Quality and Cost Base Selection (QCBS) Small assignments with standard or routine nature (standard accounting or financial audit, simple engineering, simple project supervision or inspection) Minimum qualifying technical score is 75 to 80 points. If a firm receives technical score below 10% of the highest technical score, its proposal shall be returned unopened Lowest Price selected for contract award Least Cost Selection (LCS)TRANSCRIPT
Procurement in Projects Financed by Islamic Development BankCountry Procurement WorkshopSeptember 2015, Jakarta, Republic of Indonesia
Project Procurement (PPR) DivisionOperations Policy And Services Department (OPSD)
03. Selection of ConsultantProject Start-up Workshop
3Republic of Indonesia, September 2015
Selection Methods
Project Procurement Division, OPSD
• Big and medium size assignments• Quality and price factors are combined• Minimum qualifying technical score is 75 to 80 points.• The firms obtained highest combined technical and financial score
selected for contract award• Although the price is factor in overall selection but quality remains
paramount for consideration
Quality and Cost Base Selection (QCBS)
• Small assignments with standard or routine nature (standard accounting or financial audit, simple engineering, simple project supervision or inspection)
• Minimum qualifying technical score is 75 to 80 points.• If a firm receives technical score below 10% of the highest technical
score, its proposal shall be returned unopened• Lowest Price selected for contract award
Least Cost Selection (LCS)
Selection of Consultant – LCS & QCBS
Project Procurement Division, OPSD 4Republic of Indonesia, September
2015
TOR, cost estimate
IDB NOL
Advertisement
Short List, draft RFP
IDB NOL (Short List,
RFP)
RFP sent to Short Listed Consultants
Proposal Preparation (30 days) & submission
Technical Evaluation
Technical Evaluation
Report (TER)*
IDB NOL Financial Evaluation
Consultant Evaluation
Report*
IDB NOL
Contract negotiation
Draft negotiated contract*
IDB NOL
Contract award
5 No Objection Letters (NOLs) required± 6 months after advertisement
LCS: Proposal with least price winsQCBS: Highest rank proposal in Combined evaluation wins
5Republic of Indonesia, September 2015
Terms of Reference (TOR)
Project Procurement Division, OPSD
• Relevant background;• The scope and objective of the project (description, phases, stages,
downstream work);• Type of services required;• Implementation schedule and expected outputs (periodic reports,
documents and end products);• Training and transfer of technology (scope and nature);• Method of remuneration for the services;• Responsibilities of the project parties (Beneficiary, consultant and etc.);• Appointment terms and conditions.• For projects of simple or routine nature the TOR can be standard, but
for complex projects the TOR should leave room for the consultants’ creativity
6Republic of Indonesia, September 2015
Preparation of Short List
Expression of Interests(EOI)
Advertisement – Request of ‘Expression of Interest’ (REOI) – use IsDB standard template
Notifications to embassies, consulates, local representatives, chamber of commerce, associations, etc. (for international short list)
EOI is not a ‘proposal’, scoring evaluation is discouraged, if used – requires extra due diligence
Project Procurement Division, OPSD
7Republic of Indonesia, September 2015
Preparation of Short List
Short List Requirement
6 – 8 Consultants
Geographical distribution, not more than two firms from any one Member Country (international short list)
Association / partnership: joint-venture, sub-consultant
Prepare short list evaluation and recommendation report for Bank’s NOL
Short list cannot be modified without Bank’s prior approval
Project Procurement Division, OPSD
8Republic of Indonesia, September 2015
Short List Evaluation
Project Procurement Division, OPSD
First Stage(not recommended
to use scoring)
Pass or Fail
Meet minimum qualification & experience
Result in a ‘long-list’ (‘pre-qualified’ firms)
Second Stage(may use scoring)
Strengths & Weaknesses of long-listed firms
Short list 6 to 8 best ranked firms
Keep one to two firms as reserve
9Republic of Indonesia, September 2015
Request for Proposal (RFP)
Project Procurement Division, OPSD
Simplified version of RFP for Complex Assignment (Bank’s standard template)
• Section 1 - Letter of Invitation• Section 2 - Instruction to Consultants• Section 3 - Technical Proposal - Standard Forms• Section 4 - Financial Proposal - Standard Forms• Section 5 - Terms of Reference• Section 6 - Standard Form of Contract Document
Section 2 & 6 shall not be changed or revised,
Sections 1, 3, 4, 5 shall be customized as per the
assignment,
10Republic of Indonesia, September 2015
Request for Proposal
Project Procurement Division, OPSD
Criteria and range of scoresMain• Experience 5-10 points• Methodology and Approach 20-50 points• Key staffs 30-60 points
Optional• Transfer of knowledge 0-10 points• Participation by nationals 0-10 points
Total 100 points• Passing Grade = 70 - 80 points
11Republic of Indonesia, September 2015
Submission• Depending on the complexity of the assignment the period for
submission shall be between 30-90 days.• Clarifications to RFP - in writing by facsimile or electronic mail.• Response letter should be copied to all short listed consultants.• With prior IDB concurrence deadline for proposals submission can be
extended. Note: No bid security
Receipt• Delayed/Late proposals should be returned unopened. Opening• Immediate opening of technical proposals• Financial proposals remain sealed
Proposal Submission, Receipt & Opening
Project Procurement Division, OPSD
12Republic of Indonesia, September 2015
Evaluation of Technical Proposal
Steps
Recommend to use rating approach
Provide qualitative assessment to substantiate the scores
Avoid adding sub-criteria not included in RFP
Exercise due diligence in giving ‘zero’, ‘perfect’ or ‘poor’ scores
Use Standard Technical Evaluation Report
Project Procurement Division, OPSD
13Republic of Indonesia, September 2015
Inconsistent Scoring
• Scores are often broken down into nominal points
Methodology 50 pointsExcellent50 pointsGood 40 points Satisfactory 30 points Poor 20 points
Project Procurement Division, OPSD
14Republic of Indonesia, September 2015
Inconsistent Scoring
• Scores are often broken down into nominal pointsMethodology 50 points
Excellent50 pointsGood 40 points Satisfactory 30 points 60%Poor 20 points
• A ‘satisfactory’ evaluation normally passes minimum requirement, hence score allocation should be ≥ passing grade (70% or 35 points.)
Project Procurement Division, OPSD
15Republic of Indonesia, September 2015
Inconsistent Scoring
• Key Experts 1
Qualification 10 pointsPh.D. 10 pointsMaster 5 points Bachelor 0 points
• TOR requires at least a ‘Master’ degree
Project Procurement Division, OPSD
16Republic of Indonesia, September 2015
Inconsistent Scoring
• Key Experts 1
Qualification 10 pointsPh.D. 10 pointsMaster 5 points 50%Bachelor 0 points
• ‘Master’ degree is allocated 50% (‘not passed’)
Project Procurement Division, OPSD
17Republic of Indonesia, September 2015
Rating System
• Example 1
Methodology 50 pointsExcellent100%Good 90%Satisfactory 70%Poor 40%
Project Procurement Division, OPSD
18Republic of Indonesia, September 2015
Rating System
• Example 1
Methodology 50 pointsExcellent100% 50 pointsGood 90% 45 pointsSatisfactory 70% 35 pointsPoor 40% 20 points
• Each evaluator refers to each rating’s definition for scoring and prepares comment to substantiate the score (to be recorded in the report).
Project Procurement Division, OPSD
19Republic of Indonesia, September 2015
Rating System
Define rating for each criteria and sub-criteria
and allocate a percentage of maximum
scoresRating definition corresponds to
requirement in the TOR
‘Satisfactory’ rating receives ≥ passing grade (e.g. 70%)
Well-defined rating ensures consistency
and enhance technical evaluation process
Project Procurement Division, OPSD
20Republic of Indonesia, September 2015
Evaluation of Financial Proposal
Steps
Public opening of financial proposal
Arithmetic correction (none for lump sum contract), exclude tax
Ensure consistency with technical proposal: correction of quantity or price for missing item
Use Standard Consultant Evaluation Report
Project Procurement Division, OPSD
21Republic of Indonesia, September 2015
Short List
Typical Issues
Less than 6 firms (low response) or weakly qualified firms
Advertising: lacking, incomplete or unattractive
Weak evaluation criteria → weak or non-qualified firms
Stringent evaluation → precludes strong firms
Quality of short list is critical to the selection process
Project Procurement Division, OPSD
22Republic of Indonesia, September 2015
Request for Proposal (RFP)
Issues
Vague, incomplete or inconsistent evaluation Criteria
Fail to capture pertinent aspects of the TOR
Poorly defined & formulated
Unsuitable score allocation
Not all criteria included in RFP
Gaps with requirement during short-listing
Weak technical score & reduce firms participation
Project Procurement Division, OPSD
23Republic of Indonesia, September 2015
Maintaining Competition
Issues
Few Proposals Received
No confirmation from short listed firms
No ‘reserved’ firms
Short list not ‘updated’ despites withdrawal of firms
Project Procurement Division, OPSD
24Republic of Indonesia, September 2015
Key Success Factors in Selection of Consultant
Short List preparation and confirmation on
participationWell-defined evaluation
and scoring criteria, and its consistent
applicationQualitative assessments and remarks to
substantiate technical scoresConsistency-check
between technical and financial
proposals
Project Procurement Division, OPSD
25Republic of Indonesia, September 2015
Question and Answer
Project Procurement Division, OPSD
Republic of Indonesia, September 2015
Thank YouProject Procurement Division
Operation Policy and Services Departmentwww.isdb.org, [email protected]
prepared by Amirmehdi AsghariSenior Project Procurement Specialist
أفضل مستقبالً نبني معاً Together we build a better future
Ensemble nous construisons un avenir meilleur
10Project Procurement Division, OPSD