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)