revision of procurement and consultant guidelines january...

REVISION OF PROCUREMENT AND

CONSULTANT GUIDELINES

January 2011

Implementation Support Workshop February 06-10, 2012

Ankara

The World Bank

Background

The Guidelines have evolved over the years to reflect trends in the Bank’s overall policies, global knowledge, experience in public procurement, best international procurement practices, dialogue with the borrowers and partnerships with stakeholders and other donors.

QUIZ (1)

When was the last major revision to procurement guidelines?

A) 2006

B) 2010

C) 2004

D) Don’t know

Background

2004 - the last time the major revisions to the Guidelines were made

2006 and 2010 revisions were limited to Fraud and Corruption provisions

Eliminated country eligibility restrictions

Introduce use of e-procurement

Emphasized greater transparency and simplification

Background

2011 revisions do not, in a major or material way, change the existing overall Bank procurement policy framework, including methods and procedures

Rationale for Revisions in 2011

To reflect:

broad evolution of policies and Board decisions affecting procurement

harmonization effort with MDBs/IFIs

practical experience in application of the Guidelines, and trends in industry practices

Process

Long process of consultations (more than a year)

Internal

External - Including Harmonization with MDBs

Process

Extensive internal reviews and discussions, including feedback from staff, Policy Committee of Procurement Sector Board, Audit Committee, pre-Board briefings to the EDs, and Board discussion

Extensive external consultations with borrowers’ implementing agencies, private sector/industry, MDBs/IFIs. Posting of GLs on the web for public consultations &feedback, including from civil society

Harmonization

Consultations with MDBs as part of a broader harmonization process

Resulted in reaching consensus on all changes and new provisions

Achieved higher level of harmonization

Knowledge Check on Rationale

(a) evolution of policies and Board decisions

harmonization effort with MDBs/IFIs

practical experience in application of the Guidelines, and trends in industry practices

(b) Harmonization with Bank policies

evolution of industry guidelines

changing procurement needs

Categories of Revisions

(1) Evolution of Policies

(2) Harmonization Effort

(3) Reflection on Practical Experience & Industry Trends

(4) “Cross-alignment” between the two guidelines and editorial

(1)Evolution of Policies

Revised provisions in both Guidelines:

Eligibility: to ensure consistency with sanctions reforms and between both Guidelines

Conflict of Interest (COI): used to be only in Consultant Guidelines, now in both. The text is also expanded to allow for a full treatment of COI

(1) Evolution of Policies (cont’d)

Fraud and Corruption (F&C):

to align with sanctions reforms (temporary and early temporary suspension, cross-debarment, and corporate cross-debarment (GSD))

to define applicable sanctions procedures in contracts with UN agencies

to clarify due diligence requirements before awarding contracts

to include INT contact information for reporting F&C allegations

(1) Evolution of Policies (cont’d)

Use of country systems (UCS):

UCS is introduced as a new method under the Piloting Program (Section III) to allow its use through the standard reference to the Guidelines in the loan or credit agreements

(2) Harmonization Efforts

Sanctions provisions, in particular, cross-debarment & definitions of fraud, corruption, collusion and coercive practices with other 4 MDBs

Provisions of harmonized master bidding documents and consultants’ RFP are reflected in clarified Guidelines’ clauses and terminology related to bidding process and contract terms

(3) Reflection on Practical Experience

Without change in substance, existing provisions have been revised and/or expanded to clarify the requirements:

Government-owned enterprises: requirements on documentation to establish eligibility of such enterprises are added

Involvement of civil servants in Bank-financed projects is clarified


Misprocurement - added:

application of this sanction when the lowest bids are no longer valid as a result of prolonged and unjustified delays by the borrower

the Bank’s right to declare misprocurement and cancel the funds when the borrower or beneficiaries are engaged in F&C


Publication of award of contracts:

a new provision in Annex 1 consolidates all requirements previously found in different Sections

Advertising:

requirements change – posting in dgMarket is no longer required, only in UNDB and Bank’s external website

advertisement in borrower’s electronic portal of free access is now an alternative to national gazette, not “in addition”


Post review:

Possibility of relying on independent reviews, depending on assessed risks and scope of project, is added

(3) Reflection on Practical Experience: PROCUREMENT GUIDELINES

Revisions of ICB provisions (Section II)

provided clear definition of single responsibility under turnkey contracts, and use of two-stage bidding procedures

reintroduced 1995 provision on domestic preference (deleted in 2004) for single responsibility contracts

specified conditions for use of national language

clarified difference between performance security and retention money

(3) PROCUREMENT GUIDELINES (cont’d)

Revisions of ICB provisions

Use of international arbitration and use of a neutral venue no more recommended but required

simplified electronic bid opening procedure

clarified procedure for rejection of all bids (to prevent the outright rejection)

clarified process of evaluation of prices for three groups of goods and the price adjustment procedure


Revisions to non-ICB methods (Section III) used in a growing number of projects:

NCB

Shopping, Direct Contracting, and Force Account

UN agencies

Procurement in loans to fin.intermediary institutions

Procurement under PPP, concessions

Community participation in procurement


NCB (para 3.3-3.4): Aligns, clarifies, simplifies requirements for

Advertising

Comparison of all bids and award on the basis of the total cost at destination (including all taxes and duties)

Borrowers having an independent protest mechanism in place

Participation of foreign firms (on the same terms that apply to national bidders)

Borrower’s debarments can be recognized


Shopping (3.5):

threshold for Goods remains $100,000

threshold for Works is now $200,000

If Borrower obtains less than 3 quotations, No Objection is required to proceed


Direct Contracting (3.7-3.8)

Revised text reflects already existing practice

Clarified the requirements for acceptable circumstances

Natural disasters and emergency situations declared by the Borrower shall be recognized by the Bank as such to use it as a justification for DC

Procurement from UN agencies in case of natural disasters and emergencies


Force Account (3.9): expanded and clarified text on applicability requirements

Borrower must set up max aggregate amounts for FA, No Objection is required

Borrower shall apply same rigorous quality checks as for contracts to 3d parties

Specialized non-consulting services (aerial surveys and mapping) are added

Urgent repairs to prevent further damages are added for conflict-affected areas


UN Agencies provisions clarified and expanded (3.10)

Clarifications on how to apply

Specifics of application of Fraud and Corruption clause

Mandatory use of standard agreement forms


Procurement in loans to financial intermediary institutions (3.13)

“ICB” is replaced with “open or limited international or national competitive bidding”

On-lent funds to public sector beneficiaries, large and complex contracts – use competitive methods of the GLs

(new) Requirements to Project Implementation Manual to describe principles and procedures


Community participation in procurement (3.19)

Borrower makes Project Implementation Manual publicly available after it is approved by Bank

Flexibility in requiring Procurement Plan at negotiations, simplified PP with an indicative list of eligible activities can be used


Framework Agreements (3.6) is introduced as an alternative method to NCB and Shopping

Due diligence with regard to F&C and compliance with the Bank’s sanctions policies and procedures specifies borrower’s responsibility (para 8, Appendix 1)

New provisions:


New thresholds in Section III:

“Small-value contracts” are defined as below US$100,000 for Goods and US$200,000 for Works

(3) Reflection on Practical Experience: CONSULTANT GUIDELINES

Revisions to clarify and streamline the process, and eliminate inconsistencies made in:

New SRFP is being prepared

Advertising

Short-listing

Technical evaluation & public opening

Financial proposals evaluation and treatment of local indirect taxes

Negotiations and award of contract

Rejection of proposals and re-invitation

(3) CONSULTANT GUIDELINES (cont’d)

New maximum ceilings for contracts:

“Small-value contracts” : should not exceed US$300,000 for firms and US$50,000 for individual consultants

“Very small-value contracts” : should not exceed US$100,000 for firms

(4) Procurement and Consultant Guidelines: “Cross-harmonization”

Title change: both guidelines now include the phrase “under IBRD Loans and IDA Credits & Grants by World Bank Borrowers”

Applicability of the Guidelines is clarified to:

exclude Bank-executed trust funds (BETFs)

include non-consulting services (under Procurement Guidelines)

Thank you!!!

revision of procurement and consultant guidelines january...

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