ProcurementSpecifications

Goods

How they affect Procurement

BIDDING DOCUMENTSTECHNICAL SPECIFICATIONSGENERAL

Sufficiently specific to elicit responsive bids

Enable participation by any qualified bidder, without technical prejudice

Display technical criteria for evaluation of bids

TECHNICAL SPECIFICATIONSGOODS

Physical/chemical properties

Performance requirements

Reference to Design drawings

Locally applicable standard and regulations

TECHNICAL SPECIFICATIONSWORKS

Reference to Working Drawings

Bill of quantities

Industry standards

Locally applicable codes

Some relevant clauses of the Guidelines

2.16 Bidding documents shall be so worded as to permit and encourage international competition and shall set forth clearly and precisely the work to be carried out, the location of the work, the goods to be supplied, the place of delivery or installation, the schedule for delivery or completion, minimum performance requirements, and the warranty and maintenance requirements, as well as any other pertinent terms and conditions. In addition, the bidding documents, where appropriate, shall define the tests, standards, and methods that will be employed to judge the conformity of equipment as delivered, or works as performed, with the specifications. Drawings shall be consistent with the text of the specifications, and an order of precedence between the two shall be specified.

2.17 The bidding documents shall specify any factors, in addition to price, which will be taken into account in evaluating bids, and how such factors will be quantified or otherwise evaluated. If bids based on alternative designs, materials, completion schedules, payment terms, etc., are permitted, conditions for their acceptability and the method of their evaluation shall be expressly stated.

2.19 Standards and technical specifications quoted in bidding documents shall promote the broadest possible competition, while assuring the critical performance or other requirements for the goods and/or works under procurement. As far as possible, the Borrower shall specify internationally accepted standards such as those issued by the International Standards Organization with which the equipment or materials or workmanship shall comply. Where such international standards are unavailable or are inappropriate, national standards may be specified.

In all cases, the bidding documents shall state that equipment, material, or workmanship meeting other standards, which promise at least substantial equivalence, will also be accepted.

Use of Brand Names 2.20 Specifications shall be based on relevant characteristics

and/or performance requirements. References to brand names, catalog numbers, or similar classifications shall be avoided. If it is necessary to quote a brand name or catalog number of a particular manufacturer to clarify an otherwise incomplete specification, the words “or equivalent” shall be added after such reference. The specification shall permit the acceptance of offers for goods which have similar characteristics and which provide performance at least substantially equivalent to those specified.

2.48 The Borrower shall ascertain whether the bids (a) meet the eligibility requirements specified in paragraph 1.6, 1.7 and 1.8 of these Guidelines, (b) have been properly signed, (c) are accompanied by the required securities or required declaration signed as specified in paragraph 2.14 of the Guidelines, (d) are substantially responsive to the bidding documents, and (v) are otherwise generally in order. If a bid is not substantially responsive, that is, it contains material deviations from or reservations to the terms, conditions, and specifications in the bidding documents, it shall not be considered further. The bidder shall not be permitted to correct or withdraw material deviations or reservations once bids have been opened.

Evaluation and Comparison of Bids 2.49 The purpose of bid evaluation is to determine the cost to

the Borrower of each bid in a manner that permits a comparison on the basis of their evaluated cost. Subject to paragraph 2.58, the bid with the lowest evaluated cost,43 but not necessarily the lowest submitted price, shall be selected for award.

Some relevant Material from the

SBDs

The TS constitute the benchmarks against which the Purchaser will verify the technical responsiveness of bids and subsequently evaluate the bids. Therefore, well-defined TS will facilitate preparation of responsive bids by bidders, as well as examination, evaluation, and comparison of the bids by the Purchaser.

The TS shall require that all goods and materials to be incorporated in the goods be new, unused, and of the most recent or current models, and that they incorporate all recent improvements in design and materials, unless provided for otherwise in the contract.

The TS shall make use of best practices. Samples of specifications from successful similar procurements in the same country or sector may provide a sound basis for drafting the TS.

The Bank encourages the use of metric units.

Standardizing technical specifications may be advantageous, depending on the complexity of the goods and the repetitiveness of the type of procurement. Technical Specifications should be broad enough to avoid restrictions on workmanship, materials, and equipment commonly used in manufacturing similar kinds of goods.

Standards for equipment, materials, and workmanship specified in the Bidding Documents shall not be restrictive. Recognized international standards should be specified as much as possible. Reference to brand names, catalogue numbers, or other details that limit any materials or items to a specific manufacturer should be avoided as far as possible. Where unavoidable, such item description should always be followed by the words “or substantially equivalent.” When other particular standards or codes of practice are referred to in the TS, whether from the Borrower’s or from other eligible countries, a statement should follow other authoritative standards that ensure at least a substantially equal quality, then the standards mentioned in the TS will also be acceptable.

Reference to brand names and catalogue numbers should be avoided as far as possible; where unavoidable the words “or at least equivalent” shall always follow such references.

Technical Specifications shall be fully descriptive of the requirements in respect of, but not limited to, the following:

(a)Standards of materials and workmanship required for the production and manufacturing of the Goods.

(b)Detailed tests required (type and number).(c)Other additional work and/or Related Services required to

achieve full delivery/completion.(d)Detailed activities to be performed by the Supplier, and

participation of the Purchaser thereon.(e)List of detailed functional guarantees covered by the Warranty

and the specification of the liquidated damages to be applied in the event that such guarantees are not met.

The TS shall specify all essential technical and performance characteristics and requirements, including guaranteed or acceptable maximum or minimum values, as appropriate. Whenever necessary, the Purchaser shall include an additional ad-hoc bidding form (to be an Attachment to the Bid Submission Sheet), where the Bidder shall provide detailed information on such technical performance characteristics in respect to the corresponding acceptable or guaranteed values.

When the Purchaser requests that the Bidder provides in its bid a part or all of the Technical Specifications, technical schedules, or other technical information, the Purchaser shall specify in detail the nature and extent of the required information and the manner in which it has to be presented by the Bidder in its bid.

[If a summary of the Technical Specifications (TS) has to be provided, the Purchaser shall insert information in the table below. The Bidder shall prepare a similar table to justify compliance with the requirements]

“Summary of Technical Specifications. The Goods and Related Services shall comply with following Technical Specifications and Standards:

Item No - Name of Goods or Related Service Technical Specifications and

Standards[insert item No][insert name][insert TS and Standards]In form of a table.

Bottom Line

• Specify what you need, not how to get what you need.

• Look to increase competition, not reduce it.

• Be as flexible as possible without compromising the objective.

• Be clear

Case 1

Procurement of 2000 motorcycles for Ministry of Health Rural Services, included following specific items

Engine size 100 cc Fuel consumption: 70 km/liter

Can you explain what is wrong? Why this would lead to numerous complaints.

Case 2Ministry of Health is procuring Laboratory analysis

equipment and included following specification:

“The analyzer shall include an integrated printer”

Two firms complained that their machines do not have integrated printers, but perform better than those which do.

What are your views?

Case 3

Ministry of Health of India is procuring 450 dental chairs. The specification was prepared by a European consultant, and is pretty much a standard specification in use by many countries. The lowest price was 5 times higher than the estimate. The MoH wants to re-bid with new specs arguing that their dental chair requirements are much lower and that the specification was wrong.

What do you think?

Case 4

The local power authority wishes to buy 25,000 insulators (estimate=US$1,700,000) for a major transmission line. The country has used only ceramic or glass insulators in the past, and the specs call for the same. A complaint is sent to the Bank by a manufacturer of composite (plastic) insulators who is willing to guarantee that their product performs equally well at a lower cost. What should the Bank do?

Case 5

The unit will be designed in accordance with Mexican Steel Standard 12345 and Mexican Automotive standard 98765.

Is this acceptable?

The unit will be designed in accordance with Russian electrical Standard No.XXXX.

Is this acceptable?

Case 6Procurement of Port Crane. Specifications include:

Foe corrosion protection, the structural components of the crane shall be constructed using steel profiles and designs of no less than 7 mm in thickness, which will be suitably painted as per DIN XXX.

A Bidder complained: his standard design uses some components of 5 mm thickness but of corrosion resistant steel, thus achieving better corrosion resistance.

What do you think?

Case 7

Choose the best of the following clauses:

The PC shall have a Pentium 4 Processor

The PC shall have a Pentium 4 Processor or better.

The PC will have a processor of capacity not less than XXXX

Case 8

Choose the best clause: the Crane boom will have a geometry as described in drawing XYZ, with a minimum length of XXX, a minimum weight of XXXX, and be able to lift 5 tons in any position.The Crane boom will be able to lift 5 tons vertically for 6 meters at a distance of 18 meters from the wharf wall.