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Social Development Foundation (SDF)
PROCUREMENT MANUAL
July 2015
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ABBREVIATIONS AND ACRONYMS
BDT Bangladesh Taka
C&F Clearing and Forwarding Agent
CPTU Central Procurement Technical Unit
MD-SDF Managing Director -SDF
SDF Social Development Foundation
DIRECTOR Director, Finance and Procurement
PCT Procurement Core Team
GoB Government of Bangladesh
HOPE Head of Procuring Entity
IBRD International Bank for Reconstruction and Development
ICB International Competitive Bidding
IDA International Development Association
L/C Letter of Credit
MoF-BFID Ministry of Finance-Bank and Financial Institutions Division
NCB National Competitive Bidding
NOA Notification of Award
PEC Proposal Evaluation Committee
PPA Public Procurement Act
PPR Public Procurement Rules
STD Standard Tender Document
TEC Tender Evaluation Committee
TOC Tender Opening Committee
TSC Technical Subcommittee
WB World Bank
APL Adaptive Program Lending
BP Bank Procedures
CC Chief Counsel
CD Country Director
CFR Cost and Freight
CIF Cost, Insurance and Freight
CIP Carriage and Insurance Paid to
CL Country Lawyer
COD Country Operations Director
CPAR Country Procurement Assessment Report
CPT Carriage Paid to
CTF Consultant Trust Fund
CU Country Unit
DACON Bank’s Data on Consultants
DDP Delivered Duty Paid
DDU Delivered Duty Unpaid
DES Delivered Ex Ship
DEQ Delivered Ex Quay
DP Decentralization Plan
DTP Desk Top Publishing
ECAs Export Credit Agencies
ECU European Currency Unit
EDs Executive Directors, Board of
FAS Free alongside Ship
FCA Free Carrier
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FOB Free on Board
GC General Counsel
GMP Good Manufacturing Practices
GPN General Procurement Notice
GNP Gross National Product
IAD Internal Auditing Department
ICB International Competitive Bidding
ICC International Chamber of Commerce
ICSID International Center for Settlement of International Development
LAIA Latin American Integration Association
LEGOP Legal Department’s Office of Procurement and Consultant Services
LIB Limited International Bidding
LIL Learning in Lending
LOA Loans Department
LOI Letter of Invitation
MDO Managing Director Operations
MIGA Multilateral Investments Guarantee Agency
MOP Memorandum and Recommendation of the President
MOS Monthly Operational Summary
NBF Not Bank Financed
NCB National Competitive Bidding
NGO Non-Governmental Organization
OCS Operational Core Services Network
OPCPR Procurement Policy and Services Group
ODAs Official Development Agencies
OP Operational Policies
OPD Operations Policy Department
OPMIS Operations Management Information Systems
OPRC Operational Procurement Review Committee
PAD Project Appraisal Document
PAS Procurement Accredited Staff
PB Procurement Network Board
PCD Project Concept Document
PCR Project Completion Report
PEF Performance Evaluation File
PPF Project Preparation Facility
PPI Privately Provided Infrastructure
PR President’s Report
PRMPS Public Sector Management Staff
PS Procurement Specialist
RFP Request for Proposal
RPA Regional Procurement Advisor
RVP Regional Vice President
SA Special Accounts
SALs Structural Adjustment Loans
SAR Staff Assessment Report
SBD Standard Bidding Documents
SECAL Sector Adjustment Loan
SM Sector Manager
SOD Sector Operations Director
SOE Statements of Expenditure
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SPN Specific Procurement Notice Investment Disputes
TA Technical Assistance Association
IFBs Invitation for Bids
TF Trust Funds
IFI International Financing Institutions
TOR Terms of Reference
INNs International Non-Proprietary Names
TTL Task Team Leader
IS International Shopping
IT Information Technology
ITB Invitation to Bid
ITF Interim Trust Fund
UNDP United Nations Development Program
USD United States Dollars
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Definitions
Wherever used in this document, the following terms or expressions shall have the following
meanings.
Purchaser: the Social Development Foundation represented by the Managing Director,
SDF and by the Director, Finance & Procurement is responsible for procurement
Supplier: provider of goods or services
Goods: all of the equipment, machinery, and other materials that the supplier is required
to supply to the purchaser under the contract
Contract: agreement entered into between the purchaser and the supplier as recorded in
the Formal Written Agreement signed by the parties including all attachments and
appendices thereto and all documents incorporated by reference therein
Contract price: the price payable to the supplier under the contract for the full
performance of its contractual obligations
Delivery: delivery by the dates set out in the contract
Tests: such test or tests as are prescribed in the contract or considered necessary to
confirm the specification of the goods
Procurement plan: schedule of procurement activities
Tendering:
the systematic procedure of soliciting offers from suppliers
Tendering and bidding are synonymous for the purposes of this manual
Tenderer and bidder are synonymous for the purposes of this manual
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Table of Contents
CHAPTER-1 : Procurement Policy and Institutional Topics ..................................................... 1
1.1 Introduction .......................................................................................................................... 2
1.2 Use of the procurement Manual ........................................................................................... 2
1.3 Purpose of this Manual ........................................................................................................ 2
1.4 Operational Policies ............................................................................................................. 3
CHAPTER-2 : Planning, Basic Principles & Monitoring ............................................................ 4
2.1 Organization for Procurement.............................................................................................. 5
2.2 Procurement Planning .......................................................................................................... 5
2.3 Procurement Monitoring and Evaluation ............................................................................. 6
2.4 Procurement Tracker ............................................................................................................ 7
2.5 Procurement Records ........................................................................................................... 8
2.6 Post-Procurement Review .................................................................................................... 9
2.7 Product Quality Assurance ................................................................................................ 10
2.8 Product Quality Assurance during the Bidding Process .................................................... 10
2.9 Pre-Shipment Inspection and Testing ................................................................................ 11
2.10 Post-Shipment Inspection and Testing............................................................................... 11
2.11 Procurement Portfolios ...................................................................................................... 12
2.12 Materials Standardization .................................................................................................. 13
2.13 Materials Specifications ..................................................................................................... 13
2.14 Materials Specifications Database ..................................................................................... 13
2.15 Samples .............................................................................................................................. 13
2.16 Sourcing Prospective Bidders ............................................................................................ 14
2.17 Bidder/Supplier /Consultants Database ............................................................................. 14
2.18 Supplier Monitoring and Performance Appraisal .............................................................. 14
2.19 Electronic Government Procurement (EGP) ..................................................................... 15
2.20 Ineligibility of Firms Blacklisted due to Fraudulent and Corrupt Practices ...................... 15
2.21 Ethical Code ....................................................................................................................... 16
2.22 Sustainable Procurement:................................................................................................... 17
CHAPTER-3 : Decentralization, Role of Procurement Unit, Committees and Procurement Method......................................................................................................................................... 18
3.1 SDF Procedures for Decentralization ................................................................................ 19
3.2 Logistics and Supply Unit .................................................. Error! Bookmark not defined.
3.3 Procurement Core Team .................................................................................................... 20
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3.4 Functions of PCT ............................................................................................................... 20
3.5 Meetings of PCT ................................................................................................................ 21
3.6 Composition of the PCT .................................................................................................... 21
3.7 Tender Opening Committee ............................................................................................... 21
3.8 Tender/Proposal Evaluation Committees .......................................................................... 21
3.9 Constitution of TEC/PEC .................................................................................................. 22
3.10 Technical Sub-committees ................................................................................................. 22
3.11 Ordering ............................................................................................................................. 23
3.12 Procurement Procedures .................................................................................................... 23
3.12.1 Regular/Scheduled Procurement ................................................................................ 23
3.12.2 Emergency Procurement ............................................................................................. 23
3.13 Misprocurement ................................................................................................................. 23
3.14 Procurement Methods ........................................................................................................ 23
CHAPTER-4 : Procurement of Goods and Works .................................................................... 25
4.1 PROCUREMENT METHODS ......................................................................................... 26
4.2 INTERNATIONAL COMPETITIVE BIDDING (ICB) ................................................... 26
4.3 LIMITED INTERNATIONAL BIDDING ........................................................................ 26
4.4 NATIONAL COMPETITIVE BIDDING (NCB) ............................................................. 27
4.5 SHOPPING/NATIONAL SHOPPING .............................................................................. 29
4.6 DIRECT CONTRACTING ............................................................................................... 33
CHAPTER-5 : Procurement of Services ..................................................................................... 34
5.1 Eligibility ........................................................................................................................... 35
5.2 Conflict of Interest ............................................................................................................. 36
5.3 Unfair Competitive Advantage .......................................................................................... 37
5.4 METHODS FOR PROCUREMENT OF SERVICES ....................................................... 37
5.4.1 QUALITY AND COST BASED SELECTION (QCBS) .......................................... 37
5.4.2 QUALITY BASED SELECTION (QBS) .................................................................. 41
5.4.3 FIXED BUDGET SELECTION (FBS) ...................................................................... 42
5.4.4 LEAST COST SELECTION (LCS) ........................................................................... 42
5.4.5 CONSULTANTS’ QUALIFICATIONS BASED SELECTION (CQS) ................... 42
5.4.6 SINGLE-SOURCE SELECTION (SSS) .................................................................... 43
5.5 SELECTION OF INDIVIDUAL CONSULTANTS ......................................................... 43
5.6 TYPES OF CONTRACTS ................................................................................................ 44
5.6.1 Lump Sum Contract: .................................................................................................. 44
5.6.2 Time-Based Contract: ................................................................................................. 44
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CHAPTER-6 : Prequalification of Suppliers, Framework, Procurement and Threshold ..... 46
6.1 Prequalification of Suppliers .............................................................................................. 47
6.2 Framework Contracts ......................................................................................................... 47
6.3 PROCUREMENT STEPS ................................................................................................. 49
6.4 PROCUREMENT OPERATIONAL THRESH HOunit ................................................... 50
CHAPTER-7 : Bidding Document, Specification and Security in Procurement of Goods and Works ............................................................................................................................ 62
7.1 Standard Bidding Documents ............................................................................................ 63
7.2 Technical Specifications .................................................................................................... 64
7.3 Contract Securities ............................................................................................................. 65
7.4 Bid Securities ..................................................................................................................... 66
7.5 Performance Securities ...................................................................................................... 66
7.6 Force Majeure .................................................................................................................... 66
CHAPTER-8 : Evaluation and Comparison of Bids for Goods and Works ............................. 67
8.1 General ............................................................................................................................... 68
8.2 Evaluation and Comparison of Bids .................................................................................. 68
8.3 Bid Evaluation Committee ................................................................................................. 68
8.4 Declaration of impartiality and compliance: ...................................................................... 69
8.5 Examination of Bids .......................................................................................................... 69
8.6 Preliminary Examination ................................................................................................... 70
8.7 Correction of Arithmetic Errors ......................................................................................... 71
8.8 Application of Evaluation Criteria ..................................................................................... 71
8.9 Evaluation of Bids on the Basis of Price Only .................................................................. 71
8.9.1 Foreign Bids ............................................................................................................... 71
8.9.2 Local Bids ................................................................................................................... 72
8.10 Deviations from the Requirements of Bidding Documents ............................................... 72
8.11 Evaluation and Comparison of Bids for Goods and Works ............................................... 73
8.12 Evaluation of Bids for Works Contracts ............................................................................ 75
8.13 Evaluation and Comparison of Bids for Goods and Works ............................................... 75
8.14 Open Tender Procedures .................................................................................................... 77
8.15 Opening of File .................................................................................................................. 77
8.16 Preparation of the Tender Document ................................................................................. 77
8.17 Specifications / Terms of Reference / Description of Services ......................................... 78
8.18 Delivery Periods and Performance .................................................................................... 78
8.19 Bid Validity ........................................................................................................................ 78
8.20 Bid Currency ...................................................................................................................... 78
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8.21 Liquidated Damages .......................................................................................................... 79
8.22 Packing and Marking ......................................................................................................... 79
8.23 Approval of Tender Document .......................................................................................... 79
8.24 Invitation for Bids .............................................................................................................. 79
8.25 Activities during Bidding Time ......................................................................................... 80
8.26 Postponement of Bid Opening ........................................................................................... 80
8.27 Cancellation of Invitation before Opening ........................................................................ 80
8.28 Bid Submission, Opening, and Recording ......................................................................... 80
8.28.1 Bid Submission ........................................................................................................... 80
8.28.2 Opening of Bids .......................................................................................................... 81
8.28.3 Modification of Bids ................................................................................................... 81
8.28.4 Recording of Bids ....................................................................................................... 81
8.28.5 Bid Samples ................................................................................................................ 81
8.28.6 Currency Conversion .................................................................................................. 82
8.28.7 Payments ..................................................................................................................... 82
8.29 Clearing and Delivery and Post-Delivery Considerations ................................................. 82
8.29.1 Clearing and Delivery ................................................................................................. 82
8.29.2 Warranty/Defects Liability Period .............................................................................. 83
8.29.3 Defective Goods at Time of Delivery ......................................................................... 83
CHAPTER-9 : Procurement Strategy, Objective and Risk Management .............................. 84
9.1 SDF’s Procurement Strategy.............................................................................................. 85
9.2 Procurement Objectives ..................................................................................................... 85
9.3 Procurement Risk Management ......................................................................................... 86
CHAPTER-10 : Handling Procurement Complaints ................................................................. 87
10.1 Right to Complain .............................................................................................................. 88
10.2 Submission of Complaints to the Authority....................................................................... 89
10.3 Applicable Law ........................................................................................................ 89
ANNEXURE – 1 Supplyer Registration Form ........................................... 89
ANNEXURE – 2 Procurement Plan Format ............................................. 89
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CHAPTER -1
PROCUREMENT POLICY AND
INSTITUTIONAL TOPICS
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1.1 Introduction
The provisions in this Procurement Procedures Manual are based on worldwide competitive
bidding practices adopted by procurement practitioners. The objective is the attainment of value
for money by applying practices that take into account efficiency, economy, and transparency in
the procurement process through solicitation of bids from all eligible sources.
1.2 Use of the procurement Manual
The Manual begins with a review of some policy and institutional aspects of procurement that
have broad applicability and about which questions arise most frequently. Subsequent chapters
deal with specific procurement topics, taking them generally in the chronological order in
which they occur, from the initial analysis of SDF procurement systems and capacity,
through the procurement planning stages and into project implementation and contract
administration and the last Chapter deals with some specific organizational procurement
issues of SDF.
It is expected that this Manual will continue to be improved and added to with a view to
keeping it relevant and useful to its users. In case of projects funded by the World Bank, if there is
any difference between provisions of this manual and relevant provisions in the World Bank’s
Procurement/Consultant Guidelines (PG/CG), then the PG/CG will prevail.
1.3 Purpose of this Manual
The purpose of this manual is to provide procurement procedures for use by SDF at its Head
Office, Regional, Districts and Cluster Offices that is mandated to manage and utilize their
resources in an economic manner, with due care to accountability and transparency. SDF has
been conducting procurement since 2003. SIPP-I and SIPP-II showed that, except for a couple
of national shopping contracts, general procurement performance has been satisfactory.
Based on the past experience and performance of SIPP in terms of procurement, it can be
concluded that procurement is an area where organizations should pay appropriate attention in
order to bring organizational sustainability, establish credibility, transparency and
accountability. As SDF has been implementing development programs employing Community
Driven Development Approach it follows a simplified decentralized procurement procedure.
Application of Procedures
The policies, procedures, and practices specified in this Procurement Procedures
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Manual are meant to provide instructions and guidance to all staff dealing with
procurement within the SDF. The SDF reserves the authority of expending and
accounting for all resources according to the procurement procedures herein.
The objective of these procedures is to ensure use of public resources with due
care for economy, efficiency, transparency, accountability, and consistency in
procurement management. Use of these procedures also ensures that awarding
contracts is done in an appropriate manner.
The Managing Director or any person designated by MD will appoint a Tender
Opening Committee (TOC) for the purpose of opening submitted bids.
The Approving Authority of SDF will appoint Tender Evaluation Committees
(TECs) or Proposal Evaluation Committees (PECs) and Technical Sub-
committees (TSCs) to evaluate bids and make award recommendations to the
Approving Authority.
This manual is the authoritative document only in the areas of procurement
management that it covers. The manual has been prepared carefully to ensure
consistency with the Government of Bangladesh’s (GOB’s) procurement policy,
laws, and regulations contained in the PPA, PPR, and the Guidelines for
Procurement under IBRD Loans and IDA Credits.
This manual may be revised from time to time to include any amendments to the
PPA, PPR, or World Bank (WB) procurement guidelines, or to prescribe new or
improved procedures that simplify the procurement process and otherwise help to
accomplish the objective of the SDF’s activities based on Government decisions.
The manual describes the policies and procedures relevant to the procurement
cycle of the SDF.
In the event that any statement or word in this document is in conflict with PPR
2008 or subsequent amendments, the PPR will prevail and shall remain the
authoritative document.
1.4 Operational Policies
The Guidelines apply equally when procurement is carried out by the SDF Headquarter
level, Regional level or other offices. SDF requires careful procurement planning before
approval of procurement and supervises procurement during project implementation to ensure
the appropriate application of these rules.
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CHAPTER -2
PLANNING, BASIC PRINCIPLES &
MONITORING
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2.1 Organization for Procurement
The Director F&P, SDF shall conduct the procurement of all commodities, including office
equipments, furniture’s an fixtures, vehicles, motor-cycles, bi-cycles, information and education
materials and other printing materials/ products as assigned by the Managing Director for
distribution to end users throughout the country. Procuring entities of SDF shall conduct the
procurement of other commodities according to the needs of their operational plans.
2.2 Procurement Planning
Planning for procurement should start with estimating annual requirements of individual
operational plans under the purview of the different Line Directors (units) in SDF. Planning
should take into account long-term strategies for efficiency, and cost effectiveness and optimum
uses of resources. Procurement planning reduces the number of emergency orders and results in
lower purchase costs and improved service delivery. Such planning should also take into
consideration the information needs of the supply chain, from initiation through delivery, on a
holistic basis. Effective procurement planning, or the lack of it, has a very definite impact on the
overall schedule of SDF and the attainment of their goals and objectives.
The Director- F&P shall be responsible for preparation of procurement plan as per yearly
organizational/ project procurement plan considering the need of the projects. DFP will share the
plan with other Head of the Departments and Managing Director of SDF under the purview of
and coordinated by a designated officer(s). The designated officer(s) may act as the Supply
Planning Officer(s) and shall develop the initial forecasts in collaboration with the respective
units. The forecasts will then be consolidated taking into consideration stock on hand, stock on
order, and consumption trends, using appropriate forecasting tools and methodologies. The
Director F&P will act as the convener of the Procurement Core Team (PCT).
The supply/ procurement planning function will—
1. Develop a five-year rolling forecast for Goods/Works/Services that is reviewed annually
2. Develop a three-year rolling supply plan that is reviewed every quarter; the plan will
draw information on demand for Goods/Works/Services from the five-year forecast.
3. Provide inputs to the development of annual procurement plans; this plan will draw
information on quantities of items to be procured from the supply plan
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The procurement plan will consist of—
Schedules of requirements
Estimated costs
Approving authority
Sources of funding
Applicable procurement methods
Processing times, up to the final contract signing
Estimated delivery time
A consolidated annual procurement plan should be presented to the SDF management by the
Procurement Department of SDF for approval by the first week of April for the next financial
year. The plan will be finally approved by the Managing Director of SDF.
2.3 Procurement Monitoring and Evaluation
The Director- Finance & Procurement shall establish a system to continuously monitor all
procurement information, including the number and value of contracts procured through each
method and the performance status of each contract. The indicators to monitor procurement and
supply management will include—
Average time between the product order point (taken as the point at which contract
signed) and receipt of goods; these measures the average fulfillment lead time
Average time between the desire to order point (taken as the point at which the annual
forecast is recommended by PCT and approved by the MD) and the receipt of goods; this
is a measure of the total procurement lead time
Average time for the following key internal and external activities—
Time taken from the point when the consolidated annual procurement plan for WB
funded procurement was sent to the WB to the point when WB approval was received
Time taken from the point when bid documents were submitted to the WB to the point
the WB No Objection was received for the bid documents
Time taken from point of tender opening to the point of submission of the bid evaluation
report to the WB
Time taken from the point the bid evaluation report was submitted to the WB to the point
the WB no Objection was received for the award per the bid evaluation report for the
WB funded project
Number of contracts signed within the initial bid validity period
Contract price of products in the latest tender compared with prices from previous
Page | 7
tenders for the same products and (when possible) for approximately similar quantities
Contract price of products in the latest tender compared with the median prices reported
in international price indicators.
The indicators for procurement performance will be reviewed periodically engaging the internal
audit team or externally appointed team as necessary. The monitoring format will be consistent
with the Government’s PROMIS and e-PMIS (for e-GP contracts). SDF has to secure
usernames and passwords in order to be able to use PROMIS and e-PMIS.
2.4 Procurement Tracker
The SDF is planning to develop a web-based tracker to monitor the procurement process. All
steps in the procurement cycle for each commodity package, from its origin (the point of the
issuance of an approval for the annual procurement plan by the MD of SDF) to the receipt of
supplies shall be monitored by the procurement tracker. The tracker will track the following
procurement milestones-
MD’s approval for the consolidated annual procurement plan
WB No Objection for the WB funded component of the consolidated annual
procurement plan
WB No Objection for bidding documents (if applicable)
Tender/quotation invitation
Closing of tender/quotation
Tender evaluation report
Award recommendation to WB (when applicable)
WB No Objection for award (if applicable)
Notification of award (NOA) to successful bidder
Signing of the contract
Shipment by supplier
Receipt of supply in warehouses
Maintenance of the tracker is the responsibility of the Director- F&P.
For procurement funded by the World Bank (WB) and/or under the new project NJLIP,
procurement tracking will be done through STEP (Systematic Tracking of Exchanges in
Procurement), a new tool developed by the World Bank for implementation in all WB-funded
projects. Under NJLIP, the tool will be used on experimental basis during January-June 2016
and will be a regular tool from July 2016 onwards.
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2.5 Procurement Records
SDF shall maintain records and documents on all procurement activities for a minimum of 12
years, which commences from the receipt of goods in the warehouse, either in full or partially.
Procurement records shall be maintained from the beginning procurement planning to the
completion of the contract and must include a copy of the goods received notes. It will be
coherent with relevant provisions under PPA/PPR.
The Director – F&P will arrange to maintain a secured storage system for all procurement
documentation. Each procurement record shall, as a minimum, contain the following documents
and information:
1. The approved annual consolidated procurement plan
2. Technical specification from user unit
3. A copy of the published advertisement (newspaper and website) as well as copies of
invitations for applications, tenders, proposals, quotations, or other solicitations
4. A copy of any prequalification, tender, proposal, or other solicitation documents and
revisions thereof
5. A copy of the official cost estimate for the contract as per the Operational Plan
6. Pre-bid minutes, if applicable
7. The names and addresses of tenderers or applicants who submitted tenders, proposals,
or quotations
8. Minutes of tender or proposal opening meeting
9. All communications with tenderers or applicants
10. The bid document and tenders and proposals or quotations received
11. The bid evaluation report by the TEC/PEC
12. Other technical reports (if any – from TSC, TEST report, etc.)
13. No Objection on TEC/PEC evaluation report from WB for Pool Fund-funded packages
(only for prior review packages)
14. Approvals from Approving Authority of TEC/PEC evaluation reports
15. NOA and the contract documents
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16. Information relating to any decision on temporary suspension or annulment of
procurement proceedings after initiation
17. Documentation on any appeal or complaint concerning the procurement proceedings
18. Contract award notice, including name and address of the tenderer to whom the
contract was awarded as well as the contract price (where applicable)
19. Copy of performance security release (where applicable)
20. L/C documents
21. Pre-shipment inspection reports (where applicable)
22. Delivery and acceptance reports for goods
23. Copies of all amendments made to the contract and variation orders issued affecting
the conditions of the contract relating to the contract price and the delivery schedule
24. All records of payment including invoices for procurement of goods
25. Rejection, re-call, and withdrawal documents (if any)
26. Any other relevant documentation
The procurement file should have a checklist, signed by the desk officer responsible for the
package, confirming that the documents listed are available in the file.
If any particular document is not on the file, a note explaining its absence and stating where the
document can be located (if it is maintained by another department or unit) shall be included in
the file.
2.6 Post-Procurement Review
The HOPE shall arrange for annual post-procurement reviews of packages in compliance with
the mandatory procurement reviews as per the PPR 2008 and the World Bank Guidelines. This
review shall be carried out by an independent external auditor or reviewer appointed by the
SDF. The findings of the review shall be provided to the Managing Director of SDF. In addition
to the annual mandatory reviews, the Director F&P may conduct internal management reviews
with the objective of strengthening processes wherever deficiencies are found. The overall
objectives of any procurement review will be—
Establish the existence of documentation supporting the procurement system
Evaluate and assess the adequacy of internal controls
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Examine compliance with prescribed procurement procedures and tender law
Ensure that funds provided for procurement are spent efficiently
Report on weaknesses identified during the review
Make recommendations for improvements
For WB-funded projects, Government’s FAPAD will continue to carry out audits under its
jurisdictions, and such audits may include procurement-related objections. SDF will
2.7 Product Quality Assurance
Good quality goods, works and services are a critical factor in safeguarding the interest of SDF.
Poor quality is unlikely to fulfill their purpose of organizational objectives. In worst-case
scenarios, they can be detrimental to reputation of the organization. Besides procuring from
reliable and quality suppliers, appropriate pre- and post-shipment inspection and surveillance of
the goods throughout the delivery, customs clearance, warehousing, and distribution processes
are important to make sure that products of the right quality are procured and that the quality is
maintained through good storage and distribution practices. Once in the distribution system,
reliable monitoring of expiry dates and storage conditions as well as recognizing and responding
to product defects and adverse reactions are critical.
In case of WB-funded projects, NJLIP will follow the procurement strategy described in the
PAD of the project.
2.8 Product Quality Assurance during the Bidding Process
Ensuring product quality is an essential component of the procurement process. It is achieved
through appropriate selection of commodities, preparing comprehensive technical
specifications/terms of reference/description of service and by procuring from qualified
manufacturers whose product quality and good manufacturing practices have been confirmed by
reputed independent sources supported by appropriate certifications such as ISO, DIN JIS, CE
etc.
The quality standards and certifications required by SDF for the submission of a bid shall be
specified in the bidding document. It will be the responsibility of the TSCs and TECs/PECs to
check this documentation and ensure only bids complying with the requirements are considered
during bid evaluation.
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2.9 Pre-Shipment Inspection and Testing
Product quality assurance can be facilitated by pre-shipment quality inspection and testing. This
inspection and certification usually covers quality, quantity, and reasonableness of price.
Imports procured through competitive bidding processes shall not be subject to price
verification, but only verification for quality and quantity.
As per the list of the National Board of Revenue, SDF shall retain the services of reputable,
independent, pre-shipment inspection agencies to conduct visual inspections and/or testing of all
consignments meant for SDF prior to shipment. In the event that a pre-shipment quality check
indicates that all or some of the batches have failed to meet quality standards, SDF will not
accept the batches in question and may reject the entire consignment. Bidding documents for all
procurements shall contain provisions indicating that the SDF shall require pre-shipment
inspections of all consignments.
2.10 Post-Shipment Inspection and Testing
All goods received by SDF shall be subjected to post-shipment inspection to ensure conformity
to required quality and technical specifications. This post shipment process may involve visual
inspection and/or laboratory testing of samples. In visual inspection, incoming commodities are
critically examined for obvious quality defects and for conformity to product specifications
mentioned in tender documents. Visual inspection should be carried out by a Standing Board. A
number of tests can be performed at the time of receipt to assure quality of the products
received. However, doing laboratory testing on a routine basis is expensive and time consuming.
Hence, in practice, it is important to decide what specific products should be tested and how
often. A two-stage sampling technique may be used in which a small sample is examined and a
second, larger sample is drawn and inspected only in the event the first sample fails visual
inspection.
Post-shipment laboratory testing should not be used as a routine procedure. It should be done
selectively, for example, when products are purchased from a new supplier or when it is decided
that a particular supply or selected batches of a supply should be subjected to post- shipment
quality testing if there is reason to doubt the quality of the supply.
If SDF undertakes post-shipment quality testing of one or more batches, steps should be taken to
isolate all the stock in question and not distribute it until the test report is received and the
products / services is reported to comply with the quality standards specified in the SDF bidding
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documents.
If products / services fail testing, SDF should take action to secure fresh supplies from the
manufacturers free of charge as specified in the tender documentation. The failed products /
services should be quarantined and separated from other stock. The bid documentation should
also contain a clause that clearly states that the company that supplies failed products / services
will be responsible for removing them from the SDF warehouse within a stipulated time.
It is important that the bid documentation clearly states the requirements for pre- and post-
shipment inspections so that all prospective bidders are properly aware of these conditions.
2.11 Procurement Portfolios
The procurement portfolios handled by the Director- F&P with the approval of MD and arrange
the procurement as per the need of the organization. Portfolio will be followed in procurement
of goods and equipment and other commodities that may be required from time to time.
Based on information provided in the procurement plans, risk mitigation reports and mission
aide memoirs, along with identified level of risk and the relative expenditure for each
commodity or category of spend; the procurement portfolio was categorized as follows:
Routine products: laptops, computers and accessories, furniture, stationeries, bicycles,
photocopier, air conditioner, audiovisual equipment, IPS/generators, junior and mid-level
consultants, printing of books/manuals.
Bottleneck items: motorcycles, licensed software, digital camera, community services
organizations (CSOs), integrated MIS system.
Leverage products: cross-country vehicles, process monitoring consultants.
Strategic products: senior individual experts/consultants, international consultants.
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2.12 Materials Standardization
The use of open, competitive bidding procedures in procurement can be streamlined and, in
particular, special attention paid to the development of specifications to help achieve some of the
benefits available through standardization wherever possible.
2.13 Materials Specifications
The specifications for an item should be based on the general purpose for which the item is
intended and not only upon the design, cost, or quality. It is particularly important to avoid the
use of brand names in material specifications. Where unavoidable, the phrase “or equivalent”
should be used.
A performance (or generic) specification gives a clear idea of the function, application, and
performance required of the supplied goods or services. From such specifications, suppliers can
often provide new, improved, or cheaper solutions. A conformance (or particular) specification
restricts the supplier to providing the actual article as physically described. Any of these could
be used when necessary.
Specifications must be clearly, accurately, and completely drawn so as to leave no doubt in the
supplier’s mind as to what the purchaser requires. Unnecessarily restrictive requirements, which
may unduly limit the number of bidders, shall be avoided.
Specifications shall be drawn up by the individual units responsible for managing different
products/services in collaboration with procurement desk officers. Where appropriate, assistance
must be sought from technical experts to ensure preparation of the correct specifications.
2.14 Materials Specifications Database
SDF is planning to develop a database of material specifications that shall be regularly updated
to ensure accuracy and reliability. Such a database will become an invaluable management tool
for facilitating the objectives of the supply process under the sector, i.e., efficiency, economy,
and transparency without sacrificing quality. Development of the database may commence with
the specifications of the last procurement package for individual items approved by the WB with
respect to Pool Fund-funded procurement.
2.15 Samples
Requiring submission of samples along with the bids should be discouraged. Normally no
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samples should be requested, and decisions on award should be made based on merit of the bid
and bidding qualifications. In exceptional cases when submission of samples is justified,
because of high risks and quality assurance reasons, the bidding documents should identify this
circumstance and require the successful bidder to provide samples for tests before award,
allowing a reasonable time for such submission. However, the procedures and details of tests to
be conducted should be specified and results of tests obtained within a reasonable time of about
two weeks. For such items, bidders should be required to submit, along with their bids, test
results conducted in a recognized laboratory. If the samples fail pursuant to tests conducted by
the purchaser, bidders will be notified of the discrepancies and items of failure, accompanied by
test reports, will be returned to the bidder.
2.16 Sourcing Prospective Bidders
One of the greatest challenges within a procurement organization is establishing specifications
and reliable competitive sources for goods. Sources of prospective bidders include—
1. Newspapers and publications; prospective bidders and manufacturers can apply for
placement on a prospective bidders list
2. Invitation to tender for specific requirements via the media
3. Trade directories and reference manuals provided by specific industries
4. Trading organizations, chambers of commerce, embassies/commercial attaches, and
other similar organizations
5. Local trade fairs and exhibitions; manufacturers’ brochures can be collected for future
study and analysis
6. Other procurement managers and contacts in local and foreign institutions
7. Internet searches
2.17 Bidder/Supplier /Consultants Database
The procurement department shall develop a database of competent bidders and suppliers that
will be regularly maintained and updated to ensure its accuracy and reliability.
2.18 Supplier Monitoring and Performance Appraisal
Continued good performance by suppliers can be ensured through a formal monitoring system
that tracks:
lead time;
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compliance with contract pricing terms and delivery schedules;
solicited partial shipments;
remaining shelf-life requirements;
compliance with product quality,
packaging, and labeling instructions; and
compliance with other contract terms.
The procurement department of SDF shall maintain a file for each supplier that contains copies
of registration documents, references, correspondence, complaints, and other anecdotal supplier
information. The information system should track the number and value of bid contracts
awarded chronologically and the value of total purchases from the supplier by year.
On completion of a contract, the performance of the successful bidder shall be assessed by the
Director F&P on the basis of conformity to contract instructions, responses to progress
enquiries, time and completion of delivery, and quality or specification. A bidder who performs
poorly may have their name deleted from the bidder database.
Suggested matrices for measuring supplier performance may include—
1. Percentage of goods supplied in time per the delivery schedule specified in the contract
2. Goods supplied in variance with the delivery schedule specified in the contract expressed
in time lines; for example, consignments received within one month either before or after
the scheduled time, within two months of the scheduled time, etc.
3. Percentage of manufacturing items complying with specified quality standards in each
consignment as confirmed by pre- and/or post-shipment quality testing
2.19 Electronic Government Procurement (EGP)
SDF will take an ID number from CPTU for E-tendering. For open tender/bidding SDF will
offer tender in the EGP system and competitive supplier/service provider will submit the
necessary information in the EGP through online. Managing Director and Director F&P will be
the contact officials from SDF with CPTU for EGP. Advertisement shall be sent to the CPTU
and the newspapers simultaneously.
2.20 Ineligibility of Firms Blacklisted due to Fraudulent and Corrupt
Practices
It is the SDF policy not to tolerate any fraud and corruption in the procurement or
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execution of contracts. SDF requires the highest standard of ethical behavior from its own
staff and from firms and individuals bidding for work. Fraudulent or corrupt practices
include the solicitation, payment or receipt of bribes, gratuities or kickbacks, or the
manipulation of contracts through any form of misrepresentation, fraudulent or corrupt practices.
Accordingly, any supplier, contractor or consultant firm, contracted to provide services in
procurement, found by SDF after appropriate investigations to have engaged in a corrupt or
fraudulent practice be declared ineligible to bid for contracts. Such ineligibility may be for a
specific period of time or indefinitely according to the gravity of the offense.
2.21 Ethical Code
Personnel entrusted with and involved in procurement shall never use their authority or office
for personal gain and shall seek to uphold and enhance the standing of procurement practice in
the SDF by—
1. Maintaining an impeccable standard of integrity in all their business relationships, both
inside and outside the SDF
2. Fostering the highest possible standards of professional competence
3. Optimizing the use of resources for which they are responsible to provide the
maximum benefit to the SDF
4. Complying with the letter and the spirit of the Laws of the People’s Republic of
Bangladesh and the regulations contained in WB procurement guidelines and procedures
5. Rejecting any business practice which might reasonably be deemed improper
6. Gifts.—
(a) Save as otherwise provided in this Code, no Person shall offer to any staff of SDF, or
any member of his family, any gift the receipt of which will place him under any form of
official obligation to the donor of the gift.
(a). A Person may give an SDF staff a gift of small intrinsic value such as business
diaries, calendars, key rings or a ballpoint with the Person's company symbol provided
that the value of such individual item does not exceed Tk. 500.
7. Hospitality. —
(a) A Person shall not influence or put SDF staff under any obligation by offering
hospitality to influence the making of a procurement decision by that public servant as a
consequence of accepting hospitality from a Person or any other private individual.
(b) A Person shall not encourage any meetings or entertainment to be held, the main
purpose of which shall be to honor or praise SDF staff.
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8. Unacceptable activities. –
(a) The following activities shall be considered unacceptable activities under this Code:
(b) A Person shall not offer to or secure for, or promise to secure for a SDF staff to any
foreign award, title or decoration, document or aid agreement.
(c) A Person shall not lend money to, or borrow money from, or place himself under any
pecuniary obligations to any public servant with whom he has any procurement dealings.
(d) A Person shall not encourage a SDF staff to construct a building whether intended to
be used for residential or commercial purpose, nor encourage a public servant in the
buying or selling of valuable property, moveable and immovable, nor encourage a public
servant to speculate in investments.
(e) A Person shall not encourage a SDF staff, or a member of his family, to engage in
any trade in the area over which such public servant has jurisdiction, nor to undertake
any employment of work, other than his official duties.
9. Conflict of Interest. –
(a) A Person finding a personal interest arising such that it may affect his impartiality in
any matter relevant to his obligations at the point in time should consider this as a
conflict of interest and shall therefore declare this personal interest immediately upon
being aware of such interest to the staff of SDF with whom he is dealing at that time.
(b) A conflict of interest may also be considered to exist if a Person is in any way closely
related to, either as a friend or a relation or has a financial investment in a business with
any SDF staff with whom he is dealing at that time.
2.22 Sustainable Procurement:
Beside financial and commercial factors, the bidding documents to be used by SDF for this
project will include as much as practicable, economic, social and environmental considerations
in line with responsible and sustainable procurement. These are, but not limited to:
Value-for-money considerations including price, quality, availability and functionality;
Life cycle costing of certain products (CCV/SUV, motorcycles etc.);
Green procurement principles, reducing pollution, waste and hazardous substances,
using renewable energy, reliable, non-hazard and recyclable raw materials in supplied
products;
Aspects of poverty reduction, eradication of inequality in gender and resource
distribution, labor conditions, fair trade, human rights etc.
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CHAPTER -3
DECENTRALIZATION, ROLE OF
PROCUREMENT UNIT, COMMITTEES AND
PROCUREMENT METHOD
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3.1 SDF Procedures for Decentralization
SDF Head Office has the overall responsibility of realizing SDF’s vision to empower
communities to overcome poverty and is in charge of monitoring, quality control, capacity
building, compliance, communications and governance. Three regional program offices operate
as decentralized locations overseeing all programs within their jurisdiction (Barisal, Rangpur
and Jamalpur). The location of the offices may be revisited based on the selection of the unions
and villages supported under NJLIP are completed. Each regional office has technical specialists
and office administrative staff. District offices are overseeing the field implementation. Under
the district office supervision, cluster (field) offices have the role to mobilize and facilitate the
establishment of community structures, the development of the community plans and the
implementation on the village level. SDF is overseen by a Board of Directors that has the
primary responsibility of controlling and directing the formulation and administration of SDF’s
policy, but is not involved in day-to-day management of the project. SDF administration has
also to be ensured decentralization of procurement responsibilities to the regional office and the
district office through delegation of financial power.
3.2 Finance and Procurement Department (FPD)
The (FPD)shall be responsible for major procurement functions within SDF assigned by the
MD. The Unit ensures that all required processes related to the management of tenders and
emergency procurements are carried out in an efficient and timely manner and conform to the
PPA 2006, PPR 2008, and WB’s procurement procedures. Specifically, the FPD is responsible
for—
Procurement/Forecasting, planning, and operational activities relating to the
procurement of goods/works/services and related commodities in the SDF
Safe custody of all records, documents, and materials related to all procurement
transactions
Warehousing, transportation, and distribution of inventories in the SDF
Strengthening the capacity of procurement and supply chain personnel of SDF
The major tasks of the Procurement Unit in regard to procurement shall include—
Maintaining and updating procurement documentation including standard bidding
documents
Developing and maintaining standard lists and specifications for various
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goods/works/services
Developing and maintaining prospective bidder database
Developing and maintaining materials specifications databases
Forecasting and quantification of goods/works/services, including preparing five-year
demand forecasts with annual reviews
Preparing and maintaining the consolidated annual procurement plan for all SDF
o procuring entities
Maintaining a supplier monitoring and evaluation system
Execute procurement including—
Preparing tender documents
Launching tenders
Coordinating bid evaluation with the MD-SDF and units responsible for different
procurement packages
Obtaining No Objection from WB, bidding documents for each procurement package,
and bid evaluation report and award as appropriate
Contract award and follow up
Facilitating clearance and payments
Monitoring contracts
Coordinating emergency procurement and donations
Maintaining an efficient record management system for all procurement activities
Maintaining a web-based procurement tracker
3.3 Procurement Core Team
The PCT shall be responsible for reviewing and finalizing procurement estimates of
goods/works/services to be procured by SDF for ensuing supply cycle. The estimates may be
adjusted in consultation with the units responsible for different goods/works/services based on
budgetary allocations.
3.4 Functions of PCT
The PCT shall be responsible for recommending the five-year demand forecast and its annual
reviews in consultation with the relevant units responsible for different goods/works/services. It
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will consider demand for goods/works/services from an organizational perspective and other
leading operators in the private sector.
3.5 Meetings of PCT
The PCT shall meet bi-monthly and as required by the MD-SDF. The FPD Unit of SDF shall
serve as Secretariat of the PCT with the officer(s) responsible for supply planning facilitating
meetings of the PCT.
3.6 Composition of the PCT
Managing Director of SDF will form a Procurement Core Committee and the committee shall
include the following members at Head quarter level
Director Finance & Procurement, who will serve as convener of the committee
Other two/ three member from relevant SDF units (as required by MD-SDF)
Manger/ Officer Procurement as member secretary
At Regional level
The Regional Director of SDF regional office will form a Procurement Core Committee and the
committee shall include the following members:
Regional Director will be the convener
Other two/ three member from relevant SDF units (as required by MD-SDF)
Officer Procurement as member secretary
3.7 Tender Opening Committee
All bids shall be opened by a TOC appointed by the MD-SDF or an officer authorized by him/
her or the Approving Authority, when the Approving Authority is below the level of MD, the
TOC will co-opt one member from the TEC/PEC and two other members. The Director F&P or
delegate will function as convener of the TOC.
3.8 Tender/Proposal Evaluation Committees
The TEC/PEC is a high-level committee formed as needed for the purposes of evaluating
particular bids and making recommendations for awards and must include personnel specialized
in the substantive nature of the bids to be evaluated. The TEC/PEC will be chaired by a member
of the committee appointed by the Approval Authority; the rank of such a member must be
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below the rank of the Approval Authority.
The TEC/PEC will submit an evaluation report with a recommendation for award to the MD,
SDF. If the value of the award is within the MD, SDF threshold, the award may be approved or
the documents returned to the TEC/PEC for further review or rejected in accordance with
conditions specified in the PPR 2008.
In order to assist the TEC/PEC with information and advice relating to procurement policies
contained in the PPA, PPR, and WB Guidelines and to provide the committees with the required
procurement management expertise and information, every TEC/PEC shall include the Director,
DFP or delegate, who may act as convener or member secretary of the TEC/PEC.
More than one TEC/PECs shall be constituted on the basis of the value of items to be procured
and to handle many procurement activities that need to be examined and evaluated at a particular
point of time.
3.9 Constitution of TEC/PEC
TEC or PEC shall be formed, prior to the invitation for application, tender, or proposal being
issued, but certainly formed before the deadline for submission of applications, tenders, or
proposals.
The Evaluation Committee shall include external members with knowledge of the items
contained in the applications, tenders, or proposals who shall be designated, provided that, for
procurements of values within ceilings mentioned in Schedule II, tender PECs shall be formed in
accordance with the said Schedule II.
The Approving Authority shall form the Evaluation Committee.
3.10 Technical Sub-committees
To ensure that all TECs/PECs are provided with the required technical information relating to
the product or service being procured, assist with the evaluation of conformity with required
specifications, document authentication, and provide assistance relating to procurement policy,
the Approval Authority may appoint TSCs to undertake technical evaluations of the bids and
advice the TEC/PECs of their findings. A TSC will comprise no more than three persons and
must include personnel specialized in the substantive nature of the bids to be evaluated.
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3.11 Ordering
The Director DFP or delegate shall have authority to manage the ordering procedures of regular
commodities from a supplier holding a valid contract, up to the limit of the contracted quantity
or value.
3.12 Procurement Procedures
3.12.1 Regular/Scheduled Procurement
Bids for regular purchases shall be obtained through ICB or NCB procedures using the open
tendering method. After entering into a contract for more than one year with a supplier, regular
procurement shall occur through purchase orders issued by the Managing Director.
3.12.2 Emergency Procurement
Emergency procurement is the acquisition of stocks to meet an emergency need, such as stock
outs, natural disasters, disease outbreaks, accidents, etc. Emergency procurements may be
conducted using restricted tendering procedures such as local or international shopping and MD
will take decision about the emergency purchase.
3.13 Misprocurement
It is important therefore that procurement procedures be followed meticulously by SDF so that
there is no chance that a procurement package will be declared a misprocurement and subject to
serious consequences. Serious deviations from processes agreed with the WB, generally
identified through WB’s post procurement review and financial management audits may result
in misprocurement or similar remedial actions.
3.14 Procurement Methods
Regardless of which method is used, a number of activities or steps need to be taken prior to
procurement. The items need to be selected, quantified, and packaged, and accurate technical
specifications need to be drafted or identified. By identifying the range of sources for quality
products, a review of the market for particular goods will help determine the best procurement
method. Soul source / proprietary (only one known manufacturer or source) items must be
procured from the primary manufacturer or its authorized agent.
These procurement methods for goods and non-consulting service shall be used—
International competitive bidding
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National competitive bidding
Limited international bidding
National shopping/ Request for quotation
Direct contracting
These procurement methods for consulting service shall be used—
Quality and Cost Based Selections (QCBS)
Quality Based Selections (QBS)
Fixed Budget System (FBS)
Least Cost Selections (LCS)
Consultants Qualifications (CQ)
Single Source Selection (SSS)
Selection of individual consultant (IC)
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CHAPTER-4
PROCUREMENT OF GOODS & WORKS
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4.1 PROCUREMENT METHODS
International Competitive Bidding (ICB)
Limited International Bidding (LIB)
National Competitive Bidding (NCB)
Shopping / RFQ
Direct Contracting
4.2 INTERNATIONAL COMPETITIVE BIDDING (ICB)
ICB is generally adopted where supplies cannot be met from indigenous sources and need
import, and/ or foreign firms are expected to participate resulting in more competition.
Invitation for bids (IFBs) for ICBs shall be published in daily national newspaper with
wide circulation all over the country, at least in one English and one regional language
daily.
Apart from wide publicity nationally, advertisement of invitation for bids (IFBs) shall be
published in United Nation’s Development Business (UNDB)/ dg Market online,
websites of concerned development partners (for example, the WB) and project website.
Use of the World Bank Standard Bidding Documents (SBDs).
Sale of bid documents should start only after publication of invitation of bids in
newspapers and UNDB Online/ dgMarket/WB/CPTU websites.
Bidding period shall be minimum 42 days from the start of the sale of the bid documents.
Domestic preference shall be allowed to domestic bidders with respect to foreign bidders
as mentioned in the bid documents.
Other procedures for ICB will broadly be same as that of National Competitive Bidding
(NCB) in respect of bid opening, bid evaluation, notification & publishing of award of
contract, complaint redress etc.
4.3 LIMITED INTERNATIONAL BIDDING
Limited International Bidding (LIB) is essentially ICB by direct invitation without open
advertisement. It may be an appropriate method of procurement where (a) there are only limited
numbers of suppliers, or (b) other exceptional reasons may justify departure from full ICB
procedures. Under LIB, borrowers shall seek bids from a list of potential suppliers broad enough
to assure competitive prices, such list to include all suppliers all over the world. Domestic
preference is not applicable in the evaluation of bids under LIB. In all respects other than
advertisement and preferences, ICB procedures shall apply, including the publication of award
of contract in UNDB online and use of the Standard Bidding documents.
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4.4 NATIONAL COMPETITIVE BIDDING (NCB)
NCB also known, as Open Tender is the competitive bidding procedure normally used for
procurement of goods and works. The procedure provides adequate competition among
participants in order to ensure competitive prices. The procurement steps for NCB broadly
consist of the following activities:
STEP 1: PREPERATION OF TENDER DOCUMENT
The tender documents shall furnish all information necessary for a prospective bidder to
prepare a tender for the goods/ works to be provided.
The bid document should invariably contain standard bidding and contract conditions to
make it self-explanatory. Some of the mandatory requirements in a bid document
include- Invitation for bids (IFBs), Instructions to Bidders (ITBs), Contract Data
including Bill/Schedule of Quantities (BOQ), General Terms & Conditions, Award
Criteria, Notification of Award, Execution of Contract, Quality Control, Payment Terms,
Taxes and Duties, Completion Certificate, Warranty/Defect Liability, Drawings, Dispute
Resolution, Arbitration, Force Majeure, etc.
Bill/Schedule of quantities (BOQ) will indicate the description of items to be provided
along with quantities and the phased manner in which the goods/ works are required to
be delivered or constructed.
Bidding documents should state clearly whether the bid prices will be fixed or price
adjustments will be made to reflect any changes in major cost components of the goods/
works.
STEP 2: ADVERTISEMENT
Timely notification of bidding opportunities is essential in competitive bidding.
Invitations shall be published in daily newspapers with wide circulation all over India, at
least in two national daily news paper--Bangla and English.
The advertisement should also be placed in institutional website.
The minimum time given for submission of bids shall be not less than 14 to 28 days from
the date of sale of bid document.
The last date and time of sale and receipt of bid document should be clearly indicated in
the notification/ advertisement.
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STEP 3: ISSUE OF BID DOCUMENT
Sale of tender documents should begin only after the publication of notification for
tender in newspapers.
Tender documents should be made available to all who seek them after paying the
requisite fees, if any, regardless of registration status and they should be allowed to bid.
However, the request should be in writing along with the requisite fee of the tender/ bid,
if any. Bidding documents will be sold till one day prior to the opening of the tenders.
Tenders can be sold from different places but the bid/ tenders shall be received at one
place only, to avoid problems arising out of late/delayed tender submission.
Tender documents can also be made downloadable from Institutional website. However
the downloaded tender documents must be submitted with requisite tender fees in the
form of bank DD without which the tender shall be rejected summarily.
STEP 4: OPENING OF BIDS
The time, date and venue for the tender opening shall be mentioned in the IFB and bid
documents.
Tender will be submitted in a single location and opened in the same location
Tenders/bids shall be opened immediately after the deadline of time fixed for submission
on the same day.
Tenders shall be opened in public. The bidders or their representatives shall be allowed
to be present at the time of opening of bids.
All tenders received should be opened. No bid should be rejected at the time of bid
opening except for late tenders. Late tenders shall be returned to the bidders unopened.
The name of the bidder and total amount of each bid along with important conditions like
excise duty, sales tax, delivery terms, delivery period, special conditions and discounts, if
any, shall be read out at the time of bid opening. Withdrawal notices and modifications
to the tender shall be read out first followed by the tender of the bidder.
Minutes of bid opening must be prepared by bid opening officials and should be signed
by all members present including bidders.
Any kind of discounts offered shall be mentioned in the bid opening document clearly.
STEP 5: BID EVALUATION AND COMPARISION
The criteria to be used in the evaluation of tenders and the award of contracts shall be
made known to all bidders and not be applied arbitrarily.
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The purpose of tender evaluation is to determine substantially responsive tender with the
lowest evaluated cost, but not necessarily the lowest submitted price, which should be
recommended for award.
The bid/ tender price read out at the bid opening shall be adjusted at the time of
evaluation with correction for any arithmetical errors for the purpose of evaluation with
the concurrence of the bidder/ contractor. Where there is a discrepancy between the rates
in figures and in words, the rate in words will prevail. Where there is a discrepancy
between the unit and the line item total resulting from multiplying the unit rate by the
quantity, the unit rate will prevail.
The conditional discounts offered by the bidder shall not be taken into account for
evaluation. This however does not apply to cross-discounts.
The purchaser shall prepare a detailed report on the evaluation and comparison of tenders
setting forth the specific reasons on which the recommendation is based for the award of
the contract.
STEP 6: AWARD OF CONTRACT
Implementing agency shall award the contract within the period to all aspects to the
bidders who has the necessary technical capability and financial resources and whose bid
is substantially responsive to the tender documents and has the lowest evaluated cost.
The purchaser can, if so desired depute a team of 3-4 officers to the premises of
manufacturer to whom the contract is proposed to be awarded, to satisfy itself that the
manufacturer has capability to produce the required quantity and also the necessary
quality testing and assurance facilities to meet the required standards. Based on the
report of this Committee, the purchaser may decide to award the contract to the
successful bidder offering the lowest or reasonable price after approval of the appropriate
authority.
Single bids should also be considered for award, if it is determined that publicity was
adequate, bid specification/conditions were not restrictive or unclear and bid prices are
considered reasonable in comparison to estimated price.
4.5 SHOPPING/NATIONAL SHOPPING
The following consideration should be kept in view for adopting this procedure:
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Shopping is a Procurement method based on comparing price quotations obtained from
several national suppliers, usually at least three to ensure competitive prices.
Shopping is intended to be a simple and rapid procurement method and is one of the least
competitive procurement methods and may be abused unless it is carried out in
compliance with legal agreements and observing a minimum formality in the process and
with appropriate record keeping for verification and audit.
Shopping should not be used as an expedient to by-pass more competitive methods or
fraction large procurement into smaller ones solely to allow the use of Shopping.
To procure small amounts of off-the-Shelf goods or Standard Specification Commodities
or simple civil works for which more competitive methods are not justified on the basis
of cost or efficiency.
Request for quotation shall be written and sent by letter, fax, telex, etc (with proof of
receipt and record keeping) and can also be displayed in the Institutional website.
The request shall include the description and quantity of the goods as well as the required
delivery time and place for the goods or services, including any installation requirements
as appropriate.
The request shall indicate the date by which the quotations are needed.
Prices for goods supplied from within the country (including previously imported items)
are requested to be quoted Ex-W (ex-works, ex-factory, ex-warehouse, ex-showroom or
off-the-shelf, as applicable) including all custom and excise duties and sale and other
taxes already paid or payable on the raw materials and components; for goods offered
from abroad (i.e., not previously imported) prices are requested CIF or CIP or DDU basis
(in case of large purchases).
In case of civil works prices shall be requested inclusive of all taxes and duties payable
by the contractor.
Requests should be addressed to more than three firms that are reputable, well
established and are suppliers of the goods or services being purchased, as part of their
normal business (after verifying whether those being invited will make an offer or not) to
ensure at least three quotations are received. If unsolicited quotations are received, they
may be accepted after carrying out a similar due diligence exercise to verify the nature
and reputation of firm.
Quotation should be submitted in writing i.e., by fax, telex, or letter (copies to be kept for
records).
No bid securities are required.
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Normally, requests for quotes should indicate the expected date of submission of quotes
with a minimum of 14 days from the date of issue of request.
If the Purchaser has not received at least three quotations within the time set, it should
verify with the suppliers who have not submitted quotation, whether they intend to do so
and how soon.
Quotation should be compared after adding to the quoted price for goods, the estimated
cost of inland transportation and insurance, if any, to the final destination. The lowest
responsive offer is selected.
Purchaser may exercise discretion in selecting a quotation that is not the lowest price as
far as there is good technical justification on the quality of the offered item, suitability of
delivery schedule, etc. In such cases, such requirements should be indicated in the
request for quote as well as in the evaluation note.
Award decision and its rationale should be documented/ and kept for review by audit by
the Bank (or by the Bank’s auditors) as needed. The record should contain the list of
firms invited, and the list and value of quotations received, comparative statements etc.
The documents should clearly show that the award is based on sound technical and
commercial criteria.
Purchase order shall incorporate the terms of accepted offer.
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IMPORTANT ASPECTS OF SHOPPING
Important Aspects Brief Description
Advertisement No need for advertisement in newspapers, however the
advertisement can be displayed in the Institution website.
Minimum Quotations 3 quotations.
Time for Bid
Submission
Not more than 10 days.
Negotiation There should not be any negotiations either for price or terms &
conditions of the tender submitted with suppliers.
Validity of Tender 1. Bidders shall be required to submit tender valid for the period
specified in the tender documents.
2. Generally 30 days for Shopping.
Earnest Money/ Bid
Security
Not required.
Examination of
Tenders
1. The SDF entrusted with evaluation of
tenders shall ascertain whether the tenders:
meet the eligibility requirements specified;
have been properly signed;
are valid for the period specified in the tender document;
are substantially responsive (commercially and technically)
to the tender documents; and
are otherwise generally in order.
2. If the bidder meets the above stipulations indicated in the
bid documents, it is determined as substantially responsive
and is considered further for evaluation.
Table below gives the brief of the procedures to be followed for Shopping:
Sl.No. What has to be done? Who should do
it?
Description
1. Identify the items or
the package of items
to be purchased from
the procurement plan.
Purchase
Committee
a. Understand the specifications of the item(s)
to be purchased.
b. Lay down terms & conditions and
specifications.
c. State Government rate contracts, if any,
shall be treated as one of the three quotations
in the shopping process.
d. DGS&D rate contracts shall be acceptable
for procurement under shopping.
2. Shop around or call
for all at least 3
quotations in writing
with signature of
supplier. Quotations
could also be
obtained by fax.
An officer
authorized by
respective office
head
The requests for quotations shall contain:
a. The description specification and quantity
of the goods.
b. Say that contract shall be for full quantity
of each item.
c. Terms of delivery of goods or description
of works.
d. Desired completion period
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e. Place of works
f. The price shall be quoted in INR.
g. Each bidder shall submit only one
quotation.
h. Quotation shall remain valid for a period
not less than 15 days.
i. Terms of payment.
j. Warranty Conditions.
3. Prepare a comparison
sheet to select the
most appropriate
supplier
Purchase
Committee
The following steps shall be followed:
a. Evaluate and compare the quotations
determined to be substantially responsive.
b. Write information from the quotations on a
comparison form.
c. Select the most appropriate supplier.
d. Sales Tax in connection of goods shall not
be taken in account.
e. The purchase committee members should
sign on the comparison sheet.
4.6 DIRECT CONTRACTING
The procedure for Direct Contracting may be adopted if any one of the following conditions is
met.
In case of articles including equipment/books, which are specifically certified as of
proprietary in nature, or where only a particular firm is the manufacturer of the articles
demanded.
Standardization of equipment or spare parts to be compatible with existing equipment
may justify additional purchases from the original supplier.
Extension of existing contracts for goods/works awarded with the prescribed procedures,
justifiable on economic grounds.
Works are small and scattered or are situated in remote locations where mobilization
costs for contractors would be unreasonably high.
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CHAPTER-5
PROCUREMENT OF SERVICES
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5.1 Eligibility
To encourage competition, the SDF permits consultants (firms and individuals) from all
countries to offer consulting services for. Any conditions for participation shall be limited to
those that are essential to ensure the firm’s capability to fulfill the contract in question.
SDF disallow participation in a short-listing or selection process or award to a consultant for
reasons unrelated to: (i) its capability and resources to successfully perform the contract; or (ii)
the conflict of interest.
As an exception to the foregoing paragraphs above:
(a) Consultants may be excluded if: (i) as a matter of law or official regulations, GoB prohibits
commercial relations with the consultant’s country, provided that the Bank is satisfied that such
exclusion does not preclude effective competition for the procurement of the consulting services
required; or (ii) by an act of compliance with a decision of the United Nations Security Council
taken under Chapter VII of the Charter of the United Nations, the Borrower’s country prohibits
any payments to any country, person, or entity. Where the Borrower’s country prohibits
payments to a particular firm or for particular goods by such an act of compliance, that firm may
be excluded.
(b) Government-owned enterprises or institutions of Bangladesh may participate in the SDF
country only if they can establish that they (i) are legally and financially autonomous, (ii)
operate under commercial law, and (iii) are not dependent agencies of the SDF
(c) As an exception to (b), when the services of government-owned universities or research
centers or other institutions in Bangladesh are of unique and exceptional nature including
because of the absence of a suitable private sector alternative, and their participation is critical to
project implementation,
Government officials and civil servants of Bangladesh may only be hired under consulting
contracts in SDF, either as individuals or as members of the team of experts proposed by a
consulting firm, provided that such hiring does not conflict with any employment or other laws
or regulations, or policies of the Bangladesh and if they (i) are on leave of absence without pay,
or have resigned or retired; (ii) are not being hired by the agency they were working for before
going on leave of absence without pay, resigning, or retiring11; and (iii) their hiring would not
create a conflict of
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(e) A firm or an individual sanctioned in accordance with paragraph 1.23(d) of these Guidelines
or in accordance with the World Bank Group anti-corruption policies and sanctions procedures
shall be ineligible to be awarded a Bank-financed contract, or to benefit from a Bank-financed
contract, financially or in any other manner, during such period of time as the Bank shall
determine.
5.2 Conflict of Interest
Consultants provide professional, objective, and impartial advice and at all times hold the SDF’s
interests paramount, without any consideration for future work, and that in providing advice they
avoid conflicts with other assignments and their own corporate interests. Consultants shall not
be hired for any assignment that would be in conflict with their prior or current obligations to
other clients, or that may place them in a position of being unable to carry out the assignment in
the best interest of the SDF. Without limitation on the generality of the foregoing, consultants
shall not be hired under the circumstances set forth below:
(a) Conflict between consulting activities and procurement of goods, works, or non-consulting
services (i.e., services other than consulting services covered by these Guidelines8): A firm that
has been engaged by the SDF to provide goods, works, or non-consulting services for a project,
or any affiliate that directly or indirectly controls, is controlled by, or is under common control
with that firm, shall be disqualified from providing consulting services resulting from or directly
related to those goods, works, or non-consulting services. Conversely, a firm hired to provide
consulting services for the preparation or implementation of a project, or any affiliate that
directly or indirectly controls, is controlled by, or is under common control with that firm, shall
be disqualified from subsequently providing goods, works, or services (other than consulting
services covered by these Guidelines) resulting from or directly related to the consulting services
for such preparation or implementation. This provision does not apply to the various firms
(consultants, contractors, or suppliers) which together are performing the Contractor’s
obligations under a turnkey or design and build contract.
(b) Conflict among consulting assignments: Neither consultants (including their personnel and
sub-consultants), nor any affiliate that directly or indirectly controls, is controlled by, or is under
common control with that firm, shall be hired for any assignment that, by its nature, may be in
conflict with another assignment of the consultants. As an example, consultants assisting a client
in the privatization of public assets shall neither purchase, nor advise purchasers of, such assets.
Similarly, consultants hired to prepare Terms of Reference (TOR) for an assignment shall not be
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hired for the assignment in question.
(c) Relationship with SDF staff: Consultants (including their experts and other personnel, and
sub-consultants) that have a close business or family relationship with a professional staff of the
SDF (or of the project implementing agency, or of a recipient of a part of the loan) who are
directly or indirectly involved in any part of: (i) the preparation of the TOR for the assignment,
(ii) the selection process for the contract, or (iii) the supervision of such contract may not be
awarded a contract, unless the conflict stemming from this relationship has been resolved in a
manner acceptable to the SDF throughout the selection process and the execution of the contract.
(d) A consultant shall submit only one proposal, either individually or as a joint venture partner
in another proposal. If a consultant, including a joint venture partner, submits or participates in
more than one proposal, all such proposals shall be disqualified. This does not, however,
preclude a consulting firm to participate as a sub-consultant, or an individual to participate as a
team member, in more than one proposal when circumstances justify and if permitted by the
RFP.
5.3 Unfair Competitive Advantage
Fairness and transparency in the selection process require that consultants or their affiliates
competing for a specific assignment do not derive a competitive advantage from having
provided consulting services related to the assignment in question. To that end, SDF shall make
available to all the short-listed consultants, together with the request for proposals, all
information that would in that respect give a consultant a competitive advantage.
5.4 METHODS FOR PROCUREMENT OF SERVICES
1. Quality and Cost Based Selection (QCBS)
2. Quality-Based Selection (QBS)
3. Fixed Budget Selection (FBS)
4. Least Cost Method (LCS)
5. Consultant Qualification Based Selection (CQS)
6. Single Source Selection (SSS)
7. Selection of Individual Consultant (IC)
5.4.1 QUALITY AND COST BASED SELECTION (QCBS)
QCBS uses a competitive process among shortlisted firms that takes into account the quality of
the proposals and the cost of the services in the selection of the successful firm. The relative
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weight to be given to the quality and cost shall be determined for each case depending on the
nature of the assignment. The selection process shall include the following steps,
1. Preparation of the Terms of Reference (ToR)
2. Preparation of cost estimate & the budget
3. Advertisement for Expression of Interest (EOI)
4. Evaluation of EOI to shortlist firms
5. Preparation & issuance of Request for Proposal (RFP) to short listed firms
6. Receipt of proposals
7. Opening and Evaluation of technical proposals
8. Public opening of financial proposals of firms technically qualified
9. Combined evaluation of technical and financial proposals
10. Negotiations and award of the contract to the selected firm
STEP 1: PREPARATION OF THE TERMS OF REFERENCE (TOR)
The Terms of Reference shall be prepared by a person(s) or a firm specialized in the area of the
assignment. The scope of the services described in the ToR shall be compatible with the
available budget. The ToR shall clearly define the objectives, goals and scope of the assignment
and provide background information to facilitate the consultants’ preparation of their proposals.
However, ToR should not be too detailed and inflexible, so that competing consultants may
propose their own methodology and staffing. The client and the consultants’ respective
responsibility should be clearly defined in the ToR. The ToR developed shall include:
1. A precise statement of objectives
2. An outline of the tasks to be carried out
3. A schedule for completion of tasks
4. The support/inputs provided by the client
5. The final outputs that will be required of the Consultant
6. Composition of Review Committee (not more than three members) to review
Consultant’s works
7. Review of the Progress Reports required from Consultant
8. Review of the final draft report
9. List of key positions whose CV and experience would be evaluated.
STEP 2: PREPARATION OF COST ESTIMATE & BUDGET
The Cost Estimates or Budget should be based on the assessment of the resources needed to
carry out the assignment, staff time, logistical support, and physical inputs (for example,
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vehicles, office space and equipment). Costs shall be divided in two broad categories, a) Fee or
remuneration & b) Reimbursable costs. The cost of staff time shall be estimated on a realistic
basis for all personnel involved in the assignment.
STEP 3: ADVERTISEMENT FOR EXPRESSION OF INTEREST (EOI)
Advertisement in a prescribed format is issued in widely published newspapers to obtain
expression of interest for the contract. In addition, contracts expected to cost more than US$
3200,000 shall be advertised in UNDB online and in dgMarket. Not less than 14 days from date
of posting on UNDB online shall be provided for responses, before preparation of the shortlist.
STEP 4: EVALUATION OF EOI TO SHORTLIST SIX FIRMS
If the assignment has been advertised and expressions of interest received, EOIs shall be
evaluated to shortlist six firms. The short listing of six firms must be based on the eligibility
criteria defined for EOI selection. The short list shall not include Individual Consultants. In
contracts below US$ 300,000 equivalent, shortlist may comprise national consultants only.
Government owned enterprises can be considered for award of consultancy assignment provided
they are otherwise eligible as per the Bank’s guidelines.
STEP 5: PREPARATION & ISSUANCE OF REQUEST FOR PROPOSAL (RFP) TO
SHORTLISTED FIRMS
The RFP shall include,
1. Letter of Invitation (LOI)
2. Instructions to Consultants (ITC) with Data Sheet
3. Technical Proposal - Standard Forms
4. Financial proposals - Standard Forms
5. Terms of Reference (ToR)
6. Standard Forms of contract
STEP 6: RECEIPT OF PROPOSALS
The time allowed for submission of proposal shall depend on the assignment, but normally shall
not be less than four weeks or more than three months. The firms may request clarifications
about the information provided in the RFP. The clarifications must be given in writing and copy
to all the firms. The technical and financial proposals shall be submitted at the same time but in
different sealed envelopes. Any proposals received after the closing time shall be returned
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unopened.
STEP 7: OPENING AND EVALUATION OF TECHNICAL PROPOSALS
The technical proposals shall be opened immediately by the committee, after the closing time for
submission of proposals. The evaluation of the proposals will be in two stages first quality and
then cost.
STEP 8: PUBLIC OPENING OF FINANCIAL PROPOSALS OF FIRMS TECHNICALLY
QUALIFIED
The financial proposals shall remain sealed until opened publicly. Financial proposals shall be
opened only after completing the technical evaluation and receiving no objection for the same
from the Bank.
STEP 9: COMBINED EVALUATION OF TECHNICAL AND FINANCIAL PROPOSALS
The total score shall be obtained by weighing the quality and cost scores and adding them. The
weight for the cost shall be chosen, taking into account the complexity of the assignment and the
relative importance of quality. The weight for cost shall normally be 20 points out of a total
score of 100. The proposed weightings for quality and cost shall be specified in the RFP. The
firm obtaining highest total score shall be invited for the negotiations.
STEP 10: NEGOTIATION AND AWARD OF CONTRACT
a. Negotiations shall include discussions of the TOR, the methodology, staffing, client’s
inputs, and special conditions of the contract. These discussions shall not substantially
alter the original TOR or the terms of the contract, lest the quality of the final product, its
cost, and the relevance of the initial evaluation be affected. Major reductions in work
inputs should not be made solely to meet the budget. The final TOR and the agreed
methodology shall be incorporated in “Description of Services,” which shall form part of
the contract.
b. The selected firm should not be allowed to substitute key staff, unless both parties agree.
If this is not the case, the firm may be disqualified and the process continued with the
next ranked firm. The key staff proposed for substitution shall have qualifications equal
to or better than the key staff initially proposed.
c. Financial negotiations shall include clarification of the consultants’ tax liability and how
this tax liability has been or would be reflected in the contract. As Lump-Sum Contracts
payments are based on delivery of outputs (or products), the offered price shall include
all costs (staff time, overhead, travel, hotel, etc.). Consequently, if the selection method
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for a Lump-sum contract included price as a component, this price shall not be
negotiated. In the case of Time-based Contracts, payment is based on inputs (staff time
and reimbursable) and the offered price shall include staff rates and an estimation of the
amount of reimbursable. When the selection method includes price as a component,
negotiations of staff rates should not take place, except in special circumstances, like for
example, staff rates offered are much higher than typically charged rates by consultants
for similar contracts. Consequently, the prohibition of negotiation does not preclude the
right of the client to ask for clarifications, and, if fees are very high, to ask for change of
fees, after due consultation with the Bank. Reimbursable has to be paid on actual
expenses incurred at cost upon presentation of receipts and therefore are not subject to
negotiations. However, if the client wants to define ceilings for unit prices of certain
reimbursable (like travel or hotel rates), they should indicate the maximum levels of
those rates in the RFP or define a per diem in the RFP.
d. If the negotiations fail to result in an acceptable contract, the client shall terminate the
negotiations and invite the next ranked firm for negotiations. The Bank shall be
consulted prior to taking this step.
5.4.2 QUALITY BASED SELECTION (QBS)
QBS is appropriate for the following types of assignments: (a) complex or highly specialized
assignments for which it is difficult to define precise TOR and the required input from the
consultants, and for which the client expects the consultants to demonstrate innovation in their
proposals (for example, country economic or sector studies, multi-sector feasibility studies,
design of a hazardous waste remediation plant or of an urban master plan, financial sector
reforms); (b) assignments that have a high downstream impact and in which the objective is to
have the best experts (for example, feasibility and structural engineering design of such major
infrastructure as large dams, policy studies of national significance, management studies of large
government agencies); and (c) assignments that can be carried out in substantially different
ways, such that proposals will not be comparable (for example, management advice, and sector
and policy studies in which the value of the services depends on the quality of the analysis).
STEP-1 : In QBS, the RFP may request submission of a technical proposal only (without the
financial proposal), or request submission of both technical and financial proposals at the same
time, but in separate envelopes (two-envelope system). The RFP shall provide either the
estimated budget or the estimated time of key experts, specifying that this information is given
as an indication only and that consultants shall be free to propose their own estimates
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STEP-2 : If technical proposals alone were invited, after evaluating the technical proposals
using the same methodology as in QCBS, the SDF shall ask the consultant with the highest
ranked technical proposal to submit a detailed financial proposal. The SDF and the consultant
shall then negotiate the financial proposal 43 and the contract. All other aspects of the selection
process shall be identical to those of QCBS, including the publication of the award of contract as
described in paragraph 2.31 and paragraph 7 of Appendix 1, except that only the contract price
of the winning firm is published. If consultants were requested to provide financial proposals
initially together with the technical proposals, safeguards shall be built in as in QCBS to ensure
that the financial proposal of only the selected firm is opened and the rest returned unopened,
after the negotiations are successfully concluded.
5.4.3 FIXED BUDGET SELECTION (FBS)
This method is appropriate only when the assignment is simple and can be precisely defined and
when the budget is fixed. The RFP shall indicate the available budget and request the
consultants to provide their best technical and financial proposals in separate envelopes, within
the budget. Evaluation of all technical proposals shall be carried out first as in the QCBS
method. Then the financial proposals shall be opened in public and prices shall be read out
aloud. Proposals that exceed the indicated budget shall be rejected. The Consultant who has
submitted the highest ranked technical proposal among the rest shall be selected and invited to
negotiate a contract.
5.4.4 LEAST COST SELECTION (LCS)
This method is only appropriate for selecting consultants for assignments of a standard or
routine nature (audits, engineering design of noncomplex works, and so forth) where well-
established practices and standards exist. Under this method, a “minimum” qualifying mark for
the “quality” is established. Proposals, to be submitted in two envelopes, are invited from a short
list. Technical proposals are opened first and evaluated. Those securing less than the minimum
qualifying mark are rejected, and the financial proposals of the rest are opened in public. The
firm with the lowest price shall then be selected.
5.4.5 CONSULTANTS’ QUALIFICATIONS BASED SELECTION (CQS)
This method may be used for small assignments for which the need for preparing and evaluating
competitive proposals is not justified. In such cases, prepare the TOR, request expressions of
interest (EOI) and information on the consultants’ experience and competence relevant to the
assignment, establish a short list, and select the firm with the most appropriate qualifications and
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references. The selected firm shall be asked to submit a combined technical-financial proposal
and then be invited to negotiate the contract.
5.4.6 SINGLE-SOURCE SELECTION (SSS)
Single-source selection of consultants does not provide the benefits of competition in regard to
quality and cost, lacks transparency in selection, and could encourage unacceptable practices.
Therefore, single-source selection shall be used only in exceptional cases.
Single-source selection may be appropriate only if it presents a clear advantage over
competition: (a) for tasks that represent a natural continuation of previous work carried out
by the firm (see next paragraph); (b) in emergency cases, such as in response to disasters
and for consulting services required during the period of time immediately following the
emergency; (c) for very small assignments; or (d) when only one firm is qualified or has
experience of exceptional worth for the assignment.
When continuity for downstream work is essential, the initial RFP shall outline this
prospect, and, if practical, the factors used for the selection of the consultant shall take the
likelihood of continuation into account. Continuity in the technical approach, experience
acquired, and continued professional liability of the same consultant may make continuation
with the initial consultant preferable to a new competition subject to satisfactory
performance in the initial assignment. For such downstream assignments, the client shall
ask the initially selected consultant to prepare technical and financial proposals on the basis
of TOR furnished by the client, which shall then be negotiated.
If the initial assignment was not awarded on a competitive basis or was awarded under tied
financing or if the downstream assignment is substantially larger in value, a competitive
process acceptable to the Bank shall normally be followed in which the consultant carrying
out the initial work is not excluded from consideration if it expresses interest. The Bank will
consider exceptions to this rule only under special circumstances and only when a new
competitive process is not practicable.
5.5 SELECTION OF INDIVIDUAL CONSULTANTS
Individual consultants are employed on assignments for which (a) teams of personnel are not
required, (b) no additional outside (home office) professional support is required, and (c) the
experience and qualifications of the individual are the paramount requirement. When
coordination, administration, or collective responsibility may become difficult because of the
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number of individuals, it would be advisable to employ a firm.
Individual consultants are selected on the basis of their qualifications for the assignment.
Advertisement is not required and consultants do not need to submit proposals.
Consultants shall be selected through comparison of qualifications of at least three
candidates among those who have expressed interest in the assignment or have been
approached directly. Individuals considered for comparison of qualifications shall meet
the minimum relevant qualifications.
Individual consultants may be selected on a sole-source basis with due justification in
exceptional cases such as: (a) tasks that are a continuation of previous work that the
consultant has carried out and for which the consultant was selected competitively; (b)
assignments with total expected duration of less than six months; (c) emergency
situations resulting from natural disasters; and (d) when the individual is the only
consultant qualified for the assignment.
5.6 TYPES OF CONTRACTS
5.6.1 Lump Sum Contract:
Lump sum contracts are used mainly for assignments in which the content and the duration of
the services and the required output of the consultants are clearly defined. Payments are linked
to outputs (deliverables), such as reports, drawings, bill of quantities, bidding documents, and
software programs. Lump sum contracts are easy to administer because payments are due on
clearly specified outputs.
5.6.2 Time-Based Contract:
This type of contract is appropriate when it is difficult to define the scope and the length of
services, either because the services are related to activities by others for which the completion
period may vary, or because the input of the consultants required to attain the objectives of the
assignment is difficult to assess. This type of contract is widely used for complex studies,
supervision of construction, advisory services, and most training assignments. Payments are
based on agreed hourly, daily, weekly, or monthly rates for staff (who are normally named in the
contract) and on reimbursable items using actual expenses and/or agreed unit prices. The rates
for staff include salary, social costs, overhead, fee (or profit), and, where appropriate, special
allowances. This type of contract shall include a maximum amount of total payments to be made
to the consultants. This ceiling amount should include a contingency allowance for unforeseen
work and duration, and provision for price adjustments, where appropriate. Time-based
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contracts need to be closely monitored and administered by the client to ensure that the
assignment is progressing satisfactorily and that payments claimed by the consultants are
appropriate.
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CHAPTER – 6
PREQUALIFICATION OF SUPPLIERS,
FRAMEWORK, PROCUREMENT AND THRESHOLD
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6.1 Prequalification of Suppliers
Prequalification/enlistment is a formal procedure for the screening of potential bidders prior to
invitation to bid. Prequalification contributes significantly to the purchase of high-quality
products while maintaining the desired competitive nature of the procurement process. To
ensure the transparency and efficiency in procurement and considering the need of the goods
and services, SDF follow the enlistment process for Printing, Stationeries, Repairmen works and
advertisement. It may be mentioned here that in order to maintain more transparency and quality
of work SDF also intends to invite reputed firms which are not under enlistment of SDF
currently.
Prequalification is not intended to reduce competition, but to ensure that invitations to bid are
extended only to those who have adequate capabilities and resources. Prequalification is usually
necessary for limited-source products or products with particular formulation, bioavailability, or
quality assurance issues. Prequalification shall be based entirely upon the capability and
resources of prospective bidders to perform the particular contract satisfactorily, taking into
account their experience and past performance on similar contracts; capabilities with respect to
personnel, equipment, and manufacturing facilities; and financial position.
The invitation to prequalify for bidding on specific contracts or groups of similar contracts shall
be advertised in local and international media as appropriate. The scope of the contract and a
clear statement of the requirements for qualification shall be sent to those who responded to the
invitation. All such applicants that meet the specified criteria shall be allowed to bid. All
applicants shall be informed of the results of prequalification. The list of prequalified firms shall
be updated on yearly basis. Verification of the information provided in the submission for
prequalification shall be confirmed at the time of award of the contract, and award may be
denied to a bidder that is judged to no longer have the capability or resources to successfully
perform the contract.
6.2 Framework Contracts
A framework contract is a contract concluded between a procuring entity and one or more
vendors for the purpose of laying down the essential terms governing a series of specific
contracts to be awarded during a given period (in particular as regards the duration,
commodities/services, prices, etc.). SDF may enter into a framework contract.
Framework contracts may be concluded following open tendering with one or more suppliers to
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provide a range of goods and physical services over a defined period of time not exceeding three
years. Framework contracts shall not be used to procure items or goods for prices higher than the
market prices. Framework contracts may take several forms for procurement of—
Definite quantities from a sole supplier for successive deliveries over a defined period of
time and, when necessary, can be combined with an option to purchase additional
quantities
Approximate quantities from a sole supplier for successive deliveries over a defined
period of time with or without an option for an extension
Approximate quantities from several suppliers on an item-by-item basis for successive
deliveries within a defined period of time with or without an option for an extension
Approximate quantities of one or more items from a sole or a number of suppliers for
successive deliveries over a shorter period of time without an option for extension
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6.3 PROCUREMENT STEPS
The flow chart given below broadly depicts the essential steps in procurement process,
Establish a Purchase Committee with the approval of MD”
Group the items/ services to be purchased in to a Package
and prepare Procurement Plan with approval MD”
Review and approval of Procurement Plan by the World
Bank
Advertisement/ Letter of Invitation
Select package from Procurement Plan and decide
appropriate method
Direct Contracting for
Goods/ Works and SSS for
Services
Update Procurement Plan & identify
Update procurement Plan & identify item for the next
procurement
Shopping for Goods/ Works
and LCS/ FBS/ CQS for
Services”
NCB/ ICB/ LIB for Goods/
Works and QCBS for
Services
Issue Purchase Order/ Sign
Contract
Select from min. three
quotations, and Issue
Purchase Order/ Sign
Contract
Select a bidder (or
shortlist) and Sign Contract
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6.4 PROCUREMENT OPERATIONAL THRESH HOLD
Activity Times, Values, etc
Committees
Constitution of Tender or Proposal Opening Committee
1(one) member from the TEC or PEC and 2(two) other members
from the concerned Procuring Entity and other agencies as below -
(a) Chairperson;
(b) Member;
(c) Member-Secretary.
Tender or Proposal Evaluation Committee for high value
procurement
• Minimum five (5) and normally not exceed seven (7) members
• Two (2) of whom at least shall be from outside the SDF,
• At least five (5) members including one (1) external members shall attend
the Evaluation and sign the Evaluation Report
Tender or Proposal Evaluation Committee for low value Procurement
• Minimum three (3) members of whom one (1) member may be selected
from another agency or another Procuring Entity
• At least three (3) members shall attend the Evaluation and sign the
Evaluation Report
Value of Contracts when number of the Evaluation Committee members
may be reduced:
• Tk. 1.5 (one and a half) million or below for Procurement of Goods and
related Services
• Tk 3 (three) million or below for procurement of Works and Physical
Services
• Up to Tk. 500,000 (five hundred thousand) for intellectual and professional
Services
Composition of the Technical Sub-Committee
• Maximum 3 members
Honorarium
Fee or Honorarium per External Member of Evaluation Committee:
• Maximum Tk. 1,200 (one thousand two hundred) per member per meeting
for Procurements above Tk.100 (one Hundred) million.
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•Maximum Tk.1,000 (One thousand) per member per meeting for
Procurements above Tk.10 (ten) million up to Tk.100 (One Hundred) million
• Maximum Tk.600 (Six hundred) per member per meeting for
Procurements between Tk. 1 (one) million and Tk. 10 (ten) million. The
inviting Procuring Entity shall pay the Honorarium to all members
Number of
committee
member and
value
Value of Contracts when external Members of Evaluation Committee
may be from other department of SDF Goods and related services
• Up to Tk. 1.5 (one and a half) million for Procurement under Open
Tendering and for contracts not funded by the WB, Limited Tendering
Method
• Up to Tk. 500,000 (five hundred thousand) for Procurement under Direct
Contracting Method
• Up to Tk. 500,000 (five hundred thousand) for Procurement under Request
for Quotation Method
Works and physical Services
• Up to Tk. 3 (three) million for Procurement under Open Tendering and
Limited Tendering Methods
• Up to Tk. 1 (one) million for Procurement under Direct Contracting
Methods
• Up to Tk.500,000 (five hundred thousand) for Procurement under Request
for Quotation Method
Services
• Up to Tk. 5 (five) million for Procurement of intellectual and professional
Services under Least Cost Selection Method
• Up to Tk. 500,000 (five hundred thousand) for procurement of intellectual
and professional Services under Single Source Selection Method
• Up to Tk. 200,000 (two hundred thousand) for Procurement of unforeseen
urgent Services under Request for Quotation Method
CPTU’s
website
Posting Procurement Plan on CPTU’s website
• For Tk 10 (ten) million and above for Works, Goods and related Services
• For Tk. 5 (five) million and above for physical Services; and
• For Tk. 5 (five) million and above for intellectual and professional Services
Time for pre- Time to provide minutes of the pre-Tender/ pre-bid meeting
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bid meeting • Maximum one (1) week
Validity
Period
Tender or Proposal Validity Period
• Normally between sixty (60) and one hundred twenty (120) days
Time for Requesting Extension of Tender or Proposal Validity
• Not later than 10 (ten) days before the expiry date of the Tender or Proposal
Validity
Tender/
performance
Security
Amount of Tender Security
• Not exceeding three percent (3%) of the official estimated cost but as a
fixed amount, in all cases, except for Item-by-Item Tenders or Lot-by-Lot
Tenders containing lots with less than five (5) items in a lot.
Tender Security for Item-by-Item Tenders or Lot-by-Lot Tenders
• Two percent (2%) of the total value of the items or lots offered in one (1)
Tender Security in the case of Item-by-Item Tenders or Lot-by-Lot Tenders
containing lots with less than five (5) items in a lot.
Amount of Performance Security
• Five percent (5%) of the Contract price for divisible commodities
• Ten percent (10%) of the Contract price for Goods and related Services
• Ten percent (10%) of the Contract price for Works if provision for advance
payment exists.
• Five percent (5%) to ten percent (10%) if provision advance payment does
not exist. Five percent (5%) to ten percent (10%) of the Contract price for
physical Services
Amount of Performance Security in case of front loading,
• Maximum twenty percent (20%) of the total Contract value
Percentage of Retention under Contracts for Works and physical
Services
• Not necessary if no advance payment has been effected and Performance
Security of ten percent (10%) is submitted,
• The total percentage of Retention and Performance Security may not exceed
ten percent (10%) if no advance payment has been made, except in the case
under Sub-Rule 27(2)
Time for return of the remaining amount of Retention money or the
Bank Guarantee
• Within twenty-eight (28) days after the issue of the Certificate of
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Completion of Defect Liabilities
Time Limit
for Safe
Custody
Time Limit for Safe Custody of received Tenders, Applications and
Proposals
• Maximum two (2) working days
Time for
notification
about
rejection/
award
Time for notification to all Tenderers and Applicants by the Procuring
Entity about rejection of all Tenders or proposals
• Within seven (7) days of decision taken by the Head of the Procuring Entity
Time for Issuance of Notification of Award
• Within seven (7) working days of receipt of the approval but before expiry
of the tender or proposal validity date
Quarterly
Reports for
CPTU
Quarterly Reports for Procurement proceeding in CPTU
• Tk.10 (ten) million and above for Goods and related Services and, Works
and Physical Services
• Tk. 5 (five) million and above for intellectual and professional Services
Contract
Awards in
CPTU’s
website
Posting of Contract Awards in CPTU’s website
• Tk 10 (ten) million and above for Goods and related Services and Works
and physical Services
• Tk. 5 (five) million and above for intellectual and professional Services
Publication of
Contract
Awards
Publication of Contract Awards in SDF notice boards and
posting in its websites
• Below Tk.10 (ten) million for Goods and related Services and Works and
physical Services
• Below Tk. 5 (five) million for intellectual and professional Services
Time for posting Contract Awards in CPTU’s website
• Within seven (7) of issuance of the NOA for not less than a month
Extensions of
Intended
Completion
Date
Extensions of Intended Completion Date
• Up to twenty percent (20%) of the original Contract time Above twenty
percent (20%) of the original contract approval of the MD of SDF shall be
required
Time for decision by the SDF to extend the Intended Completion Date
• within twenty-one (21) days of the Contractor asking the Project Manager
for an extension
Amendment
to the
Amendment to the Contract by the Approving Authority
• When increase on account of approved variations is within fifteen percent
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Contract and
payment
(15%) of the original Contract price but not exceeding Tk. 10 (ten) million
Time for payment to the Contractor
• Within twenty-eight (28) days of the date of each certificate
Certification of the Final Payment due to the Contractor
• Within fifty-six (56) days of receiving the Contractor’s account if it is
correct and complete
Time Limit to
issue Defects
Liability
Schedule
Time Limit to issue Defects Liability Schedule
• Within fifty-six (56) days from the Contractor’s request for Final Payment.
Time Limit
for taking
over site
Time Limit for the Procuring Entity to take over the Site and the Works
• Within seven (7) days of the Project Manager’s issuing a certificate of
Completion.
Record
keeping
Records of Procurement to be Maintained by SDF
• For a minimum period of five (5) years and Maximum twelve (12) years
Procurement
Review
Procurement Post Review
• When volume of Procurement of a Procuring Entity in one particular
financial year is more than Tk.100 (one hundred) million
Time for Procurement Post Review
• Within nine (9) months of the end of each financial year
Minimum Number & Percentage of Contracts for Procurement Post
Review
• Not less than fifteen percent (15%) of the number of contracts awarded in
that year to be selected by the independent Consultant in such a manner as to
cover at least thirty percent (30%) of the total contracts’ value.
Enlistment
Formation of the Enlistment Committee
Minimum of three (3) members, of which
• One (1) Director –Finance and Procurement represent the financial unit,
• One (1) member may represent the technical units of the concerned
Procuring Entity and
• One (1) member may be from outside the SDF or MD may nominate one
member from SDF.
Updating the Enlistment-Time by which the Procuring Entity shall
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notify Suppliers and Contractors of the annual meeting
• at least seven (7) days in advance of the meeting through advertisement
Value of non Judicial stamp for execution of contracts relating to JVCA
• Tk. 300 (three hundred) or as required by the Government
Review of
Complaints
Time for Administrative Review of Complaints
AS per PPR 2008
Registration Fee and Security Deposit for Complaint to Review Panel
For potential estimated Contract price or Tender price
• Less than Tk. 10 (ten) million, the Registration Fee shall be Tk. 10,000 (ten
thousand) and the Security Deposit shall be Tk. 50,000 (fifty thousand)
• Between Tk. 10 (ten) million and 50 (fifty) million, the Registration Fee
shall be Tk. 15,000 (fifteen thousand) and the Security Deposit shall be Tk.
100,000 (one hundred thousand)
• Above Tk. 50 (fifty) million and up to 100 (one hundred) million, the
Registration Fee shall be Tk. 20,000 (twenty thousand) and the Security
Deposit shall be Tk. 200,000 (two hundred thousand)
• Above Tk. 100 (one hundred) million, the Registration Fee shall be Tk.
25,000 (twenty-five thousand) and the Security Deposit shall be Tk.
500,000 (five hundred thousand)
• For complaints concerning issues prior to Tender opening, the Registration
Fee shall be Tk. 10,000 (ten thousand) and the Security Deposit shall be Tk.
50,000 (fifty thousand).
Number of well-reputed Specialists selected for Review Panels
• Maximum of ten (10) legal experts
• Maximum of ten (10) technical experts of Public Procurement
• Maximum of ten (10) specialists on Contract management
Number of Review Panels
• There shall be three to five (3 to5) Review Panels
Incentive or Honorarium per Review Panel Member
• Maximum Tk. 2,500 (two thousand five hundred) per meeting but not
exceeding five (5) meetings in total for review of one (1) complaint
Time for Selection of Review Panel
• Within five (5) working days
Time for disposal of complaints by Review Panel
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• Within a maximum of twelve (12) working days from the date of receipt of
the complaint, the Review Panel shall issue its written decision
Time for
preparation
& submission
of Tenders
and Financial
limit for
various
method
Time for preparation and submission of Tenders for National
Procurement of Goods, Works and Physical Services under the Open
Tendering Method from the date of advertisement -
• Not less than fourteen (14) days for Procurement up to Tk. 3 million
• Not less than twenty-one (21) days for contacts above Tk 3 million and up
to Tk. 50 (fifty) million,
• Not less than twenty-eight (28) days for contacts above Tk. 50 (fifty)
million,
• Not less than fourteen (14) days for emergency Procurement following a
catastrophe,
• Not less than fourteen (14) days for re-Tendering
Financial limit for use of Limited Tendering Method under Enlistment
• Maximum Tk. 1.5(one and a half) million in the case of Goods and related
Services and “stand alone Services”
• Maximum Tk. 3 (three) million in the case of Works and physical Services
Time for preparation and submission of Tenders from the date of
publication of advertisement in the newspaper under Limited Tendering
Method
• Not less than fourteen (14) days
• Time for re-Tendering can be reduced to seven (7) days
• Seven (7) days for Procurement under Rule 63 (b) and (c)
• Below seven (7) days in the case of national disasters with the approval of
Head of Procuring Entity
Time for submission of Technical Proposal in the 1st stage of Two-stage
Tendering
• Forty-two (42) days from the date of publication of advertisement in the
newspaper
Time for submission of the Tender Evaluation Report of the 1st stage
• Seven (7) days
The Minimum Time for Preparation for the 2nd stage in Two-stage
Tendering
• twenty-one (21) days
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Financial limit for RFQ of Goods and related Services and, Works and
Physical Services SDF own finance/ GoB budget
• Maximum Tk. 100,000 (one hundred thousand) in each Procurement up to
annual aggregate amount of Tk. 300,000 (three hundred thousand) for Goods
and related Services
• Maximum Tk. 200,000 (two hundred thousand) in each Procurement up to
annual aggregate amount of Tk. 500,000 (five hundred thousand) for Works
and physical Services
Development Budget/IDA Budget
• Maximum Tk. 200,000 (two hundred thousand) in each Procurement up to
annual aggregate amount of Tk. 500,000 (five hundred thousand) for Goods
and related Services
• Maximum Tk. 300,000 (three hundred thousand) in each Procurement up to
annual aggregate amount of Tk. 1,000,000 (one million) for Works and
physical Services
Procurement for national Carriers
• Maximum Tk. 500,000 (five hundred thousand) in each case
Time limit for invitation under the RFQ Method
• Less than ten (10) days from the date of invitation for quotations
Variation Order Limit
• Fifteen percent (15%) of the original Contract price
Value of Direct contracting of goods, works, services of very urgent or
essential nature
• Maximum Tk.2,000,000 (two million) in each Procurement up to annual
aggregate amount of Tk. 3,000,000 (three million)
Maximum Tk.50,000 (fifty thousand) in each Procurement up to annual
aggregate amount of Tk.100,000 (One hundred thousand) with the approval
of the MD of SDF
Limit for
Additional
Deliveries/
Variations
Limit for Additional Deliveries of Goods and Repeat Orders
• Fifteen percent (15%) of the original Contract price
Time for claiming for Variation Order
• Within seven (7) calendar days of being aware of the need for the Variation
Order.
Timeframe for Processing of Variation Orders
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• Not exceeding thirty (30) days from its preparation to approval
Cumulative increase in value of Works on the project
• Does not exceed ten percent (10%) of the adjusted original Contract price
Direct Cash
purchase
Annual Aggregate Amount for Direct Cash Purchase
• Maximum Tk. 200,000 (two hundred thousand) but not exceeding Tk.
50,000 (fifty thousand) in a single Procurement
Annual Aggregate Amount for Procurement under Force Account
• Maximum Tk. 200,000 (two hundred thousand) in each case
Preparation
and
submission of
Tenders for
ICB method
Time for preparation and submission of Tenders for International
Procurement of Goods and related Services and Works and physical
Services
• Not less than forty-two (42) days from the date of publication of
advertisement in the newspaper in case of Open Tendering Method
• Not less than twenty-eight (28) days from the date of publication of
advertisement in the newspaper in case of re-Tendering
• Not less than forty-two (42) days from the date of publication of
advertisement in the newspaper in 1st stage and not less than twenty-one (21)
days for preparation in 2nd stage in case of Two-Stage Tendering Method
Domestic preference for national Suppliers and Contractors
• Maximum 15% (fifteen percent) of the delivered price for Goods
• Maximum 7.5% (seven and a half percent) of the contract price for Works
Procurement by Embassies and national carriers
• Maximum Tk. 500,000 (five hundred thousand) in each case
• Maximum Tk 1 (one) million in each case.
Advertisement in Local and Regional Daily Newspapers
• When the official estimated cost is Tk. 500,000 (five hundred thousand) or
below
Posting of Procurement related notices in CPTU’s Website
• When the official estimated cost of Procurement is Tk. 10 (ten) million and
above for Goods and related Services and Works and physical Services
• When the official estimated cost of Procurement is Tk. 5 (five) million and
above for intellectual and professional Services
• Advertisement shall be sent to the CPTU and the newspapers
simultaneously.
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Pre-Qualification Thresholds
• Construction Works above Tk. 350 (three hundred fifty) million
• Maintenance Works above Tk. 35 (thirty five million;
• Supply and installation of plant and equipment above Tk. 150 (one hundred
fifty) million;
• Design and build infrastructure above Tk. 350 (three hundred fifty ) million;
• Custom designed equipment above Tk. 35 (thirty five ) million;
• Management contracts above Tk. 350 (three hundred fifty) million
Time allowed for Applicants to prepare their Applications for Pre-
Qualification
• Minimum twenty-one (21) days
Time before which Requests for Clarification on Pre-Qualification
Document from Applicants shall be Received by the Procuring Entity
• Seven (7) working days prior to the deadline for submission of Applications
Time by which Response to Clarifications on Pre-Qualification
Document received from Applicants
• Within five (5) working days
Number of Pre-Qualified Applicants
• Minimum three (3) Applicants
Time Limit for Pre-Qualified Applicants to advise of change in its
structure or formation
• No later than fourteen (14) days after the date of the Invitation for Tenders
Distribution of Minutes of Pre-Tender Meeting by the SDF
• Within five (5) working days after holding the meeting
Time by which the Procuring Entity responds to clarifications on Tender
or Proposal Document and issues an Addendum
• Within five (5) working days of receipt of request from clarification
Time by which Tenderers shall acknowledge receipt of Amendment or
Addenda
• Within three (3) working days
Time by which Tenderers shall inform the Procuring Entity about the
Absence of Addenda or amendment or response for Clarification
• Before two-third of the time allowed for the submission of Tenders has
elapsed.
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Time Extension in case of Modification of Tender Document
• If an amendment is made when less than one-third of the time allowed for
the preparation of Tenders remains
• Minimum Time for extension is three (3) days
Multiple
dropping of
Tenders
Multiple dropping of Tenders for Goods and related Services and Works
and Physical Services
• When the official estimated cost of the Procurement is Tk. 3 (three) million
and above
• Must be delivered to the primary place within three (3) hours of the deadline
for submission.
Time Frame
Time for Response by TEC to Objections received from the Approving
Authority
• Within three (5) working days from the date of receipt
Time for written acceptance of NOA by the successful Tenderer
• Within seven (7) days from the date of issuance of NOA
Time for submission of Performance Security by successful Tenderer
• Within fourteen (14) days from the date of acceptance of NOA but not later
than the date specified in the NOA for national Tenders.
• Within twenty-eight (28) days from issue of the NOA for international
Tenders
Time for signing of Contract by the successful Tenderer
• Within twenty-eight (28) days of the issuance of NOA.
• Within twenty-eight (28) days of the issuance of NOA for international
Procurement
Method for
hiring
consultant
and Timing
Least Cost Selection of Consultant
• Maximum Tk. 5 (five) million
Single Source Selection of Consultant
• Maximum Tk. 1,000,000 (one million) for consulting firms
• Maximum Tk. 500,000 (five hundred thousand) for individual consultants
Value of Variation Order for Intellectual and Professional Services
• Maximum fifteen percent (15%) of the original Contract price
Time for preparation and submission of Expression of Interest for
Procurement of intellectual and professional Services
• Minimum fourteen (14) days for national Procurement
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• Minimum twenty-one (21) days for international Procurement
Number of
Consultants
in a short-list
Number of Consultants in a short-list
• not less than four (4) and not more than seven (7) Applicants
• preferably six (6)
• RFP Validity 4 weeks to 12 Weeks
Intellectual
and
professional
Services
Time for preparation and submission of Proposal for intellectual and
professional Services
• Minimum twenty-eight (28) days for national Procurement
Minimum forty two (42) days for international Procurement
Time by which the MD of SDF decides or forms committee on
professional misconduct, offences etc.
• Within (five) 5 working days from the date of receipt of the relevant report
Time by which the Committee submits its report and recommendation to
the Managing Director of SDF.
• Within (five) 5 working days from the date of receipt of the relevant report
Delivery of Annual Report by CPTU to the Government
• Within seven (7) months from the beginning of the current Fiscal Year
Page | 62
CHAPTER- 7
BIDDING DOCUMENT, SPECIFICATION AND
SECURITY IN PROCUREMENT OF GOODS
AND WORKS
Page | 63
7.1 Standard Bidding Documents
SDF will prepare bidding documents for each proposed purchase involving international and
national competitive bidding, both to inform and instruct potential bidders, suppliers and
contractors of the requirements expected of them in particular procurement opportunities. Bid
documents should clearly define the SDF and of suppliers and contractors, and the conditions to
be met in order for a bid to be declared valid and responsive. They should also set out fair and
non - discriminatory criteria for selecting the winning bid. Bidding documents is very important
matters in procurement as;
encourage eligible potentially qualified firms to bid, by making reasonable demands for
information and form-filling; not discriminate against any potential bidder; and provide a
clear, objective means of evaluating the bidders.
The detail and complexity of bidding documents vary according to the nature and size of
the contract but they generally include the following:
Invitation for Bid:; To invite potential bidders to present their bids for the project at
hand, and it describes the SDF and source of financing and indicates the goods, works or
services to be procured. An IFB is issued prior to the preparation of the bidding
documents once the GPNs and SPNs are issued.
Instructions to Bidders; providing information to bidders regarding the form, procedure
and timing of bidding.
The Bid Data Sheet; which specifies the parameters of the Instructions to Bidders for the
particular procurement including source of funds, eligibility requirements, procedure for
clarification, bid preparation form, number of copies to be submitted, language of the
bids, pricing and currencies and currency conversion mechanism, instructions on
modification and of bids, bid submission procedures, closing date bid validity period
opening, evaluation and award of contract procedures, procedure for correction of
mathematical discrepancies in bids, purchaser’s right to accept any bid and reject any or
all bids; award criteria; notification of award and procedures for signing of contract.
Evaluation and Qualification Criteria; this section specifies the criteria that the Borrower
will use to evaluate the Bids post qualify the lowest evaluated Bidder.
The General Conditions of Contract; setting out the general provisions of the contract
between the Borrower and the bidder awarded the contract.
Special Conditions of Contract; which modify the General Conditions of Contract for the
particular procurement.
SBDs for Procurement of Goods (SBDG);
SBDs for Procurement of Works (Smaller Contracts) (SBDSW);
SBDs for Procurement of Large Works (SBDLW);
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SBDs for Supply and Installation of Plant and Equipment (SBDPE);
SBDs for Procurement of Pharmaceuticals (SBDP);
SBDs for Procurement of Textbooks (SBDT);
SBDs for Procurement of Commodities - Fertilizers and Fertilizer Raw Materials
(SBDC);
SBDs for Supply and Installation of Information Systems;
SBDs for Procurement t of Crude Oil/Petroleum Products;
Standard Bid Evaluation Form - Procurement of Goods or Works;
Standard Prequalification Document - Procurement of Works - Major
Equipment and Industrial Installations; and
Standard Request for Proposals (for Consultant Services)
7.2 Technical Specifications
Precise and clear specifications are prerequisite for bidders to respond realistically and
competitively to the requirements of the Purchaser/Employer without qualifying or conditioning
their bids. The specification must be drafted to permit the widest possible
competition, and at the same time make a clear statement of the required standards of
workmanship to be provided, standards of plant and other supplies and performance of the goods
and services to be procured. Only if this is done will the objectives of economy, efficiency and
fairness in procurement be realized, responsiveness of bids be ensured, and the subsequent task
of bid evaluation be facilitated.
For the goods, plant and other supplies to be incorporated in the works, the specification should
require that they be new, unused, and of the most recent or current models and that they
incorporate all recent improvements in design and materials unless provided otherwise in the
contract. For works contracts, a clause setting out the scope of works is often included at the
beginning of the Specifications, and it is customary to give a list of the Drawings. Where the
contractor is responsible for the design of any part of permanent works the extent of his
obligations must be stated.
In the procurement of works, specifications are usually written by the Employer or Engineer to
suit specific contracts. There are no standard specifications for universal application in all
sectors in all countries, but there are established principles and practices that are accepted. In the
case of goods, depending on the complexity of goods and the repetitiveness of the type of
procurement, it may be advantageous to standardize the General Technical Specifications and
incorporate them in a separate section of the Bidding Documents. There are considerable
Page | 65
advantages in standardizing general specifications for repetitive works in recognized public
sectors such as highways, ports, railways, urban housing irrigation and water supply in the same
country or region where similar conditions prevail.
In specifications for standards for materials, equipment, plant, workmanship and other supplies,
international standards should be used as much as possible and substantially equal quality to the
standards mentioned will also be acceptable.
In the case of procurement of goods or the Supply and Installation of Plant and Equipment,
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 “substantially equivalent. Technical
specifications in this instance should be descriptive and give the full requirements in respect of,
but not limited to, the following:
standards of materials and workmanship required;
details of all factory tests required (type and number);
details of all work required to achieve completion;
details of all pre-commissioning and commissioning activities to be performed
by the Contractor; and
details of all functional guarantees required and liquidated damages to be applied in the
event that such guarantees are not met.
It is recommended that essential technical and performance characteristics and requirements,
including maximum or minimum acceptable values, as appropriate, be summarized in a specific
section, to be completed by the bidder and submitted as an Attachment to the bid form.
7.3 Contract Securities
Contract securities are used to ensure that suppliers/contractors will perform their contractual
obligations when an award is made after the procurement process is carried out. Securities
include: bid and performance securities, retention money and advance payment securities. These
may be provided in the form of a bank guarantee or irrevocable Letter of Credit, cash, cashier’s
check or certified check or an insurance certificate. Retention money on the other hand is a
portion of the payments due under the contract, which is retained to ensure performance by the
supplier/contractor. When used as a guarantee, it should not exceed 5% of the contract value.
The rates of the securities to be followed as mentioned in 6.4 operational threshold.
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7.4 Bid Securities
Bid securities are required as a condition of contract for the bid. It assures compensation to the
Contracting Agency for the time and money lost if the successful bidder fails to honor his bid
and enter the contract. Bid securities may not be required in small contracts and should not be
too high. The rates of the securities to be followed as mentioned in 6.4 operational threshold.
The bid security should be released upon:
the end of the bid validity period, unless extended;
notice to the successful bidder of contract award; and
receipt of the successful bidder’s signed contract and performance security.
7.5 Performance Securities
Performance securities are required as a condition of contract validity. They guarantee the
contractor’s obligations under the contract and should always be required where the contract
value is large. However, the amount of the security should not exceed 10% of the contract price.
Where a performance security is required in addition to retention money, the amount should be
reduced to less than 10%. The contract should define clearly the kind of defaults that would
lead to the surrender of the performance security e.g. the contract may provide that the
performance security be payable only once default has been established by an arbitral award.
Where there is no default, the performance security must be discharged after completion of the
contract and expiration of the warranty period.
Another form of security is the advance payment security which guarantees advance payment
made by the contracting agency against the contractor’s default. They are in the form of a bank
guarantee or irrevocable letter of credit for an amount equal to the advance payment and are
normally callable on demand. Securities must be denominated in the currency of the bid or
another freely convertible currency. The rates of the securities to be followed as mentioned in
6.4 operational threshold.
7.6 Force Majeure
The conditions of contract shall stipulate that failure on the part of the parties to perform their
obligations under the contract will not be considered a default if such failure is the result of an
event of force majeure as defined in the conditions of contract.
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CHAPTER-8
EVALUATION AND COMPARISON OF BIDS
FOR GOODS AND WORKS
Page | 68
8.1 General
Regardless of how well the other steps in the procurement process are conducted, if bids are not
evaluated correctly and fairly, the process has failed. Unfortunately, bid evaluation is the step that is most
easily manipulated if one wants to favor a particular bidder. Even though SDF has the responsibility to
make the evaluation,
The basic sequence for bid evaluation is the same for all goods and works, and consists of the following
steps:
Preliminary examination;
Determination of bid responsiveness;
Correction of arithmetic errors;
Conversion to common currency;
Quantification of omissions and deviations;
Application of evaluation criteria;
Comparison of bids; and
Preparation of evaluation report.
8.2 Evaluation and Comparison of Bids
Evaluation of a bid will take into account, in addition to the price quoted, the following factors as
specified in the bid document to be considered:—
1. All costs incurred within the country of the purchaser that are incidental to delivering the goods
to their final destination, including cost of inland transportation, insurance, etc.
2. Delivery schedule
3. Deviations in payment schedule from that specified in the tender document
4. In case of ICB, price preferences shall be given to bidders manufacturing in Bangladesh as
provided in Rule 83 of PPR 2008 and Annexure 2: Domestic Preferences - Guidelines
Procurement Under IBRD Loans and IDA Credits (May 2004, revised October 2006 and May
2010)
5. Other specific criteria stated in the tender document
6. The bidders’ qualifications with respect to technical competence, past performance, and other
information deemed necessary to ensure that the contract will be performed satisfactorily
8.3 Bid Evaluation Committee
In order to examine and evaluate bids, SDF must appoint a Bid Evaluation Committee, In
Page | 69
appointing the members of the Evaluation Committee, SDF will follow the process as mentioned in
clause 6.4
The Bid Evaluation Committee is responsible for the evaluation and comparison of the bids
received and for the preparation of the Bid Evaluation Report.
8.4 Declaration of impartiality and compliance:
The each member of the Evaluation Committee shall -
a) Sign individually a declaration of impartiality in the following manner -
“I (name of the Evaluation Committee member & designation) do hereby declare and confirm that I have
no business or other links to any of the competing Tenderers or Applicant”;
and
b) Sign collectively in the Tender or Proposal Evaluation Report, by certifying that - “The Evaluation
Committee certifies that the examination and evaluation has followed the requirements of the Act,
the Rules made there under and the terms and conditions of the prescribed Application, Tender or
Proposal Document and that all facts and information have been correctly reflected in the Evaluation
Report and, that no substantial or important information has been omitted”
8.5 Examination of Bids
Bids shall be subjected to preliminary examination to identify and eliminate those which are incomplete,
invalid, or substantially nonresponsive. Bids will be checked for—
Eligibility: whether the bidder is from an eligible country or the items to be supplied are from
such countries and whether the bidder has the necessary registrations, licenses, and authorizations
Completeness: whether the letter of intent (bid form) to supply has been signed, the bid prices
have been signed, and an appropriate bid security has been furnished in conformity with the
tender documents
Presentation: whether a quote has been provided for all items, especially if the procurement is in
the form of a package
Bids shall be deemed non-responsive if—
It fails to meet the essential requirements of the bid document
It does not meet the minimum bid specifications
It exceeds the required delivery schedule
It imposes conditions that modify the requirements of the invitation, making it substantially
different from what is required
The price quoted is subject to adjustment when a fixed price is called for
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When samples have been requested, they shall be checked for conformity with specifications first before
examining the bids; only bids with acceptable samples shall qualify for further examination and
evaluation.
8.6 Preliminary Examination
The bid examination phase begins during the public bid opening with a preliminary examination of the
bids. Except for decisions about rejecting bids received after the closing time, which is mandatory for all
late bids, other decisions about whether a bid is compliant with bid document requirements should not be
made during the bid opening. Errors may be made based on an incomplete reading or wrong
interpretation of a bid, and a mistaken decision taken hastily in the presence of the bidders is awkward
to correct later. Instead, after the bid opening has been completed, as its first step in the evaluation, the
committee should make a thorough examination of all bids received before the deadline for submission.
The preliminary examination of bids determines whether the bids meet the general procedural
requirements of the bidding documents. In particular, the Committee should examine bids for
compliance with the following requirements, using the bidding documents as the reference point:
The Bid should be signed properly by an authorized party, including the Power of Attorney
if stipulated and are generally in order;
Bid securities should be in acceptable format, for suitable amount and duration;
Bid packages should contain all required documents including supporting evidence of bidder
eligibility and qualifications;
Changes should be initialed;
The mathematical calculations should be properly computed - if not, corrections should be made;
and
Bids should be complete and quote prices for all items in the lot or package if so stipulated
in the bidding document.
However, SDF should exercise reasonable judgment in applying these tests and should avoid rejecting bids
on trivial procedural grounds. For example, if the bidding documents stipulate that each page of the bid
should be signed or initialed and a bidder failed to initial one or more pages of supporting information,
this should not be a ground for bid disqualification. Furnishing one more or one less than the required
number of bid copies, or not using the form supplied in the bid document, but providing bid prices on a
similar form on the bidder’s own letterhead would also be minor discrepancies. These can be rectified
through the clarification process without giving any benefit to the bidder and without prejudice to the
interests of other bidders and need not be causes for rejection. Such discrepancies should be noted,
however, and decisions about their acceptance or rejection should be recorded in the bid evaluation
report.
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8.7 Correction of Arithmetic Errors
Bids should be checked carefully by the evaluation committee for arithmetic errors in the bid form to
ensure that stated quantities and prices are consistent. The quantities should be the same as stated in
the bidding document. The total bid price for each item should be the product of the quantity and
the quoted unit price. If there is a discrepancy, the quoted unit price shall govern in the recalculation.
Prices spelled out in words shall take precedence over numeric quotations in case of differences. The
Borrower should correct all arithmetic errors and notify each bidder of the detailed changes. The
Bidder must accept such arithmetic corrections or its bid will be rejected.
8.8 Application of Evaluation Criteria
The preliminary examination stage of bid evaluation described above is aimed at making sure that the bids
received are substantially responsive. A substantially responsive bid is one that conforms to all the
terms, conditions and specifications in the bidding documents without material deviations, reservation
or omission. After the preliminary bid evaluation stage, the bids are taken through a detailed evaluation
in order to select the bidder whose bid not only complies with the technical requirements in bidding
documents, but also offers the SDF the lowest price for the goods, works and/or services to be
procured. During the bid evaluation period SDF will strictly adhere to the following principles:
Ensure that the bid evaluation process is strictly confidential; Reject any attempts or pressure to
distort the outcome of the evaluation;
Reject any proposed action likely to lead to fraud and corruption;
Comply with the Bank’s prior review requirements; and
Strictly apply only the evaluation and qualification criteria specified in the bidding
documents.
8.9 Evaluation of Bids on the Basis of Price Only
In the procurement of simple commodities, semi-finished raw materials and goods, where all offers are of
identical and comparable material, price alone is an appropriate deciding factor. For purposes of
comparing local and foreign bids for goods contracts, the Bid Evaluation Committee compares the EXW
price of goods offered from within the Bangladesh with the CIF (named port of destination) price of goods
offered from outside the Bangladesh. The bidder with the lowest priced bid is then awarded the contract.
The EXW price of local bids and the CIF price of foreign bids are calculated in the following way:
8.9.1 Foreign Bids
Where bidders offer goods procured from abroad, the price for their bids shall be on cost, insurance and
freight (CIF), Port of Entry. The CIF price includes all costs, taxes, duties etc., in the Borrower country. If
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CIF “liner terms” are specified, the freight shall also include the cost of unloading the goods on the
wharf at the port of discharge. In the case of procurement of bulk commodities such as fertilizer, iron
ore, etc., bids may be invited and compared on CIF (Free Out) Port of Entry, in which case, the unloading
from the vessel at the Port of Entry shall be carried out by the SDF at its expense. In case of land locked
countries such as Uganda, Hungary, etc., foreign bidders are required to quote Delivered at Frontier (DAF)
Border Station instead of Port of Entry.
8.9.2 Local Bids
Bidders offering goods manufactured or assembled within Bangladesh are quoted EXW (ex-
factory, ex-works, ex-showroom, or of- the-shelf, as applicable). The EXW price should include
all costs, taxes, duties, custom duties and other levies incurred in the acquisition of components
and raw materials, domestic and foreign which go into the manufacture of the goods.
If there is a sales tax or similar tax which is payable only if the sale of the finished goods offered in
the bid takes place, such sales tax and other similar taxes are excluded from the ex-factory price and
quoted separately.
Where local bidders offer goods which are imported, the ex-warehouse price or off-the-shelf price
shall include the customs duties paid on the imported goods by the importer, stockist or agent. The
price shall thus represent the total price payable by the purchaser except for any sales tax.
Where there is no provision for the application of domestic preference margins, the SDF
should evaluate bids offering goods manufactured abroad on a CIF or CIP basis. If SDF use
national shipping lines for transportation, these goods will be evaluated on an FOB basis. On the
other hand bids offering goods manufactured in the Bangladesh are evaluated on an EXW basis.
(Refer to Section 17 for detailed instructions on CIF, FOB and EXW {transport and insurance
issues in procurement})
8.10 Deviations from the Requirements of Bidding Documents
Bidding documents generally outline numerous procedures, conditions and requirements some of which
are mandatory and some which are not. If bidders submit bids that deviate from the specifications
required by SDF, deviations include exceptions, exclusions, qualifications, conditions, stated
assumptions, alternative proposals and changes to stated requirements. Deviations may either be
material or non-material. Material deviations are:
Those which affect the scope and quality or performance of a contract;
Limits the purchaser’s/employer’s rights or bidders obligations; and
Affects unfairly the competitive position of other bidders.
A bid which has complied with all the mandatory requirements of the bidding documents, but has minor or
insubstantial deviations in respect of terms or conditions on the technical
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specifications, should be retained for more detailed evaluation and should not be rejected. On the other hand,
one which is not substantially responsive because as it contains material deviations or reservations to
the terms, conditions and specifications in the bidding documents should not be considered further.
In determining whether a bid is substantially responsive SDF, apart from taking into consideration the
general procedural issues, also considers the bidder’s compliance with the required technical
specifications and the commercial aspects of the bid. Deviations may be clarified by bidders but not
withdrawn.
The following examples are considered to be non-material deviations and would be permissible in a
“substantially-responsive” bid:
Commercial Aspects
A bid offering delivery at a date slightly different from that indicated in the bid invitation, unless it
is later than an absolute cut-off date that is clearly stated as such in the bidding documents;
A bid with a fixed price in response to bidding documents calling for bidders to submit prices
subject to price adjustment (the reverse situation, i.e., a submitted price subject to adjustment when
a fixed price is called for, would normally not be permissible);
A bid requesting changes in the coefficient of the price adjustment formula specified in the
bidding document or seeking a ceiling for the price adjustment;
A bid having minor deviations in payment terms;
8.11 Evaluation and Comparison of Bids for Goods and Works
Technical Aspects
a bid offering alternative goods that are equal or superior in specifications and
performance, unless the bid documents explicitly prohibit consideration of any
alternatives;
a bid which meets all performance criteria of a works plant, but not dimensional
provisions that do not affect performance or the utility for the purpose intended;
a bid which offers goods with minor deviations from the technical specifications which
do not affect the suitability of the goods for the intended use, e.g. an agricultural tractor
with a diesel engine developing 80 hp at 2600 rpm in response to bid specifications for
agricultural tractors developing 80 hp at 3000 rpm, (deviations which affect the efficiency or
performance should be evaluated for purposes of comparison); and
a bid which offers the equipment specified but has omitted minor attachments and
components, e.g. a tool kit in motor vehicle. However, the Borrower must quantify this
deviation in monetary terms during the detailed evaluation process prior to comparing
such bid with the other bids.
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Quantification of Omissions and Deviations
The procedures described above for correcting arithmetic errors and converting to a single currency are
simply mechanical calculations and are not related to the substance of the bids. In many cases, bidders
will present bids that deviate from bidding document requirements, either accidentally or deliberately
because they believe they gain a competitive edge as a result. Regardless of the reason, such omissions
and deviations should be quantified in money terms whenever possible, to permit direct comparison with
other bids.
In the case of omission of one or a few essential items from a bid, rather than rejecting the bid in its
entirety, a surrogate price for these items may be obtained from printed parts and price lists, if available,
or from the quoted prices of other bidders. In the latter case, a price representing the average of several
other bidders for the corresponding item should be used rather than the lowest or highest figure.
The most common deviations in bids are proposals for different commercial terms; i.e., for amounts of
advance payments, changes in payment schedules, etc. and for changes in the schedule of delivery of
goods or completed works. These can usually be adjusted by applying an appropriate discount rate and
converting them to their equivalent present worth to equalize them with non-deviating bids. As already
indicated, no advantage should be given to a bid offering an earlier delivery date than is specified in the
bid document unless there is a real benefit to the Purchaser. Any bid offering a delivery date that goes
beyond a final acceptable cutoff date specified in the bidding document should be rejected as a non-
responsive bid, irrespective of the offered price.
Another form of bid deviation is to offer a higher capacity or standard of performance than is
required by the bidding document: a larger engine size, greater carrying capacity, etc. No
additional bonus or advantage should be given to such offers unless the bid document
specifically provides for this and sets out how the differences will be evaluated. In the case of
Evaluation and Comparison of Bids for Goods and Works power generating equipment, process plants,
etc., bid documents should always include evaluation criteria and procedures which take into
consideration the value of additional capacity, higher efficiency lower production costs, etc. (See
Section 19.3.4 Evaluation on the basis on Life Cycle Costing)
The bid document is the authoritative source for determining whether various kinds of deviations
are acceptable in a particular case. If it does not specifically rule out or set limits on commercial
deviations, these can be evaluated on present value calculations. Specifications and Bid Data
Sheets should indicate if technical deviations are acceptable and, if so, what criteria and procedures
should be used for their evaluation.
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8.12 Evaluation of Bids for Works Contracts
Evaluation of bids for works contracts is more complex than the evaluation of bids for goods.
To make the evaluation process easier and transparent, it is essential for the Borrower set out
in bidding documents, well defined evaluation criteria and carry out the evaluation process in
a transparent manner. If the evaluation criteria is not well defined, Bidders may be reluctant
to submit bids. The evaluation of works contracts involves price and nonprice factors,
depending on the form of works contract being procured. The selection of bids in for a works
contract involves two steps after the preliminary examination to determine responsiveness.
The first being the selection to determine whether Bidders demonstrate relevant experience in
the undertaking the works being procured and the second step is based on price.
As in the case of evaluation of bids for procurement of goods, evaluation of works contracts begins with a
determination of the following basic issues:
was the bid received by the due date required in the bidding documents;
is the bid accompanied by the prescribed fees and bid security;
is it submitted in the required form, where necessary; and
does it comply with all the specific mandatory requirements of the bidding documents.
Once a bid has been determined as responsive, the Bid Evaluation Committee assesses the technical
feasibility of the bids and compliance of such bids with specifications required in bidding documents.
Evaluation also involves the examination of the Bidder’s key staff in order to make a determination of
whether they possess the qualifications and experience to undertake the works contract. The SDF also
takes into consideration similar works procurements that the Bidder has engaged in within the last five
or so years, and whether they have been successful. Apart from these the Bid Evaluation Committee also
evaluates the Bidders financial capabilities using the documentary evidence of the Bidder’s financial
viability to carry out the contract. Bank policy requires bidders to submit with their bids financial
statements for a number of years specified in the bidding documents. These fall under the non price
factors that need to be evaluated.
After evaluating the non price factors, the Bid Evaluation Committee, proceeds to evaluate
the prices offered for the contract. Depending on the kind of works contract being procured,
the lowest evaluated bidder is determined and awarded the contract. In a contract for the
8.13 Evaluation and Comparison of Bids for Goods and Works
Building of a major road or power plant, the lowest evaluated bidder is the one offering the lowest price
to the Borrower to build the road or power plant. On the other hand where the works contract is in the
form of a concession, then the lowest bidder should be the Bidder charging the lowest tariff for the
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services to be provided by the works, this is usually the case where the Bidder undertakes the
construction and operates it for a while before handing it over to the Borrower.
Evaluation of Deviations in Bids for Works Contracts.
Bidders for works contracts often qualify or condition their bids in some way, creating
problems for Borrower staff who must decide whether a bid is substantially responsive to the
bidding documents and, if so, how deviations from the bidding conditions should be handled
in the evaluation of bids. Clear unambiguous bidding documents prepared by experienced
staff of the Borrower result in fewer qualifications by bidders. Pre-bid conferences during the
bidding period should also be convened to clarify any serious ambiguities and discrepancies
in the documents.
Deviations may include exceptions, exclusions, qualifications, conditions, stated assumptions,
alternative proposals (when not specifically solicited) and other changes to the requirements of bidding
documents. Their degree of acceptability and impact on bid comparison will vary; some may be clearly
unacceptable; some that are acceptable may be quantifiable in monetary terms; others may not be
quantifiable but may still affect the competitive position of other bidders.
The first stage in evaluation is to decide whether the deviations in a bid are so material as to be
unacceptable, and therefore are grounds for rejecting the bid. Fairness to the other bidders is a prime
consideration. A bidder’s deviation which, in itself or by its withdrawal or rectification, would
seriously affect the competitive position of other bidders unless they were given the same opportunity,
would normally constitute grounds for rejection of the entire bid. The following deviations (or some
combination thereof) may result in rejection of bids in Bank financed contracts:
bid submission by a legal entity or joint venture different from that which was
prequalified (excepting when all members of the new joint venture were prequalified initially);
The submission of a base bid subject to price adjustment when fixed price bids were
called for;
The submission of a bid based on an entirely different alternative design where such had not been
requested nor expressly permitted;
an inflexible time phasing of contract construction or performance not conforming to
prescribed critical key dates or “milestones” in a broader construction program; and
sub-contracting in a substantially different amount and manner than specified.
Deviations from the bidding requirements which do not appear at first sight so serious as to provide
immediate grounds for bid rejection maybe considered further in the evaluation process. The following
are examples of such deviations in Bank-financed contracts:
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8.14 Open Tender Procedures
Upon approval of the procurement plan or requisition to procure and notification of availability of funds,
the DFP of SDF shall prepare an operational schedule and proceed with procurement to ensure delivery
in a timely manner. For open competition, bids will be invited on the basis of detailed public notices and
bid documents, which will contain—
1. Instructions to bidders
2. Bid data sheet
3. Form or letter of Bid
4. Form of Contract
5. Schedule of requirements
6. Specifications and drawings
7. Relevant Technical Data
8. Condition of Contract both General and particular conditions of the contract
9. List of Goods or Bill of Quantity
10. Delivery time or Schedule of Completion
11. Standard forms (e.g., bid securities, performance securities)
12. Necessary appendices i.e. formats for various Securities
8.15 Opening of File
A file shall be opened for every procurement package upon which a status summary form shall be
affixed. The procurement personnel must enter the expected time line on this form to serve as a yardstick
by which actual time can be compared and to help maintain a concise and chronological summary of all
actions from initiation to completion of the procurement. The status summary will contain a full history
of transactions for the purpose of providing—
1. Summary background information to ensure informed decision making at each stage of the
procurement cycle
2. Information on actions taken by personnel in the procurement cycle
3. Information for review and investigation of certain actions
4. Essential information in the event of any inquiries, litigation, or audit
8.16 Preparation of the Tender Document
Tender documents shall be prepared for all contracts. Use of standard bidding documents is
recommended. Although the level of detail in the tender document will depend on the size and nature of
the contract, it should clearly specify the—
1. Items required
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2. Specifications
3. Bidding procedure
4. Criteria for bid evaluation and contract award
5. Any special conditions
8.17 Specifications / Terms of Reference / Description of Services
Specifications must be clear, accurate, complete, and drawn in such a manner as not to be unnecessarily
restrictive, which unduly limits competition. Specifications should leave no doubt in the minds of
potential bidders as to the nature of the goods, works, or services required.
Specifications must be drawn up by the respective units responsible for estimating different RH
commodities. Where technical considerations are involved, expert assistance shall be sought to draw up
the right specifications.
8.18 Delivery Periods and Performance
Delivery and performance schedules stated in the tender document shall be designed with due regard to
the following—
Urgency of need for supplies
Whether the item has to be manufactured and shipped or whether it is an off-the-shelf item
Prevailing market conditions that could affect manufacture and/or shipment
Transportation mode or how the supply is to be delivered
Time for obtaining and evaluating bids and awarding contracts
Delivery terms, e.g., CIP, DDP, or Ex Works in the case of ICB
The tender document shall indicate the latest delivery schedule acceptable to the purchaser; any offer
beyond this time may be penalized or declared nonresponsive. The point of delivery shall be specified in
the tender document.
8.19 Bid Validity
The bid validity period specified in the tender document shall be a period sufficient to allow Evaluation
and award of contract.
8.20 Bid Currency
The currency of bid shall be the BDT unless otherwise specified in the tender document. The base
currency for evaluation purposes shall be the BDT. The selling exchange rate established by the Bank of
Bangladesh as specified in the tender document at the date of bid opening or as specified in the tender
document shall be used for conversions of other currencies to the BDT for comparison. The currency of
bid shall also be the currency of contract and payment.
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8.21 Liquidated Damages
If the supplier fails to deliver any or all of the items within the period(s) specified in the official purchase
order or contract agreement, the purchaser shall be entitled to deduct, without prejudice to any of its
rights under law, from the contract price, as liquidated damages, a sum equivalent to 0.2–0.5% of the
portion of the contract price of the undelivered or delayed portion of the goods for each week of delay
until actual delivery, up to a maximum deduction of 10% of the value of the delayed goods. Once the
maximum is reached, the purchaser may elect to terminate the agreement.
8.22 Packing and Marking
The tender document shall specify appropriate instructions on the method and nature of preservation,
packing, and the markings to be made on the packages to ensure that the goods will be protected from
damage, theft, and pilferage while in transit. If goods are to be transported to sites without storage, it
shall be requested that the goods be packed in nonreturnable containers.
8.23 Approval of Tender Document
All bid documents shall be approved by the HOPE. Bidding documents relating to prior review packages
funded by pool funds for items to be procured using international or national bidding, or any other
procurement method as specified under Schedule II of the PPR 2008, shall be sent to the WB for issuance
of a No Objection prior to invitation of bids.
8.24 Invitation for Bids
The invitation for bids is to alert the business community to the upcoming procurement opportunity and
should therefore be given wide publicity so that eligible, qualified bidders can register their interest and
look forward to receiving the tender document. On completion or approval of the tender document,
advertisements shall be placed in the newspapers and on the SDF and CPTU websites (mandatory if the
value exceeds the threshold specified in PPR 2008 clause 16.11), in the United Nations Development
Program/ MD Market website in case of IDA/pool-funded procurement or invitations sent directly to
selected bidders.
As a general rule, all such invitations for bids shall allow sufficient bidding time (i.e., the period between
the invitation for bids and the opening of bids) to enable bidders to purchase the tender documents and
submit bids.
If bidders are supposed to purchase tender documents, all eligible bidders shall provide their names,
contact addresses, emails, and telephone and fax numbers (if available) to enable the SDF to contact the
bidder with any required communication before bid opening.
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8.25 Activities during Bidding Time
If, after issuing the invitation for bids, but before the time of bid opening, it becomes necessary to make
changes in specifications, delivery schedules, opening dates, etc., or to correct a defective or ambiguous
statement in the invitation, an amendment shall be issued in the form of an addendum, which will be
given to every invited bidder.
A bidder may also request a clarification in the bid. In such situations, the DFA shall respond if the
request is received within a reasonable time (as specified in the bid document) prior to the deadline for
submission of bids. Such a response shall be sent out to all who have been furnished with the tender
document without revealing the source of the enquiry.
Before issuing an amendment to the bidding documents, the amount of time remaining for bid
submission must be considered. If an amendment needs to be issued and there is less than 1/3 of the time
allotted for the submission of bids left, the procuring entity shall extend the deadline by an appropriate
number of days (a minimum of three days) for submission of bids depending upon the nature of the
procurement and the addendum. Such notification must be included in the amendment.
8.26 Postponement of Bid Opening
An amendment postponing bid openings may be issued when the DFP has reason to believe that a
significant number of bids have been delayed due to acts beyond their control or when unanticipated
events interrupt the normal governmental process so that conducting the scheduled bid opening will not
be practicable. In such situations, the new opening date shall be advertised to give all parties reasonable
time to become aware of the changes.
8.27 Cancellation of Invitation before Opening
Invitations for bids should not be cancelled unless such cancellation is clearly in the public interest, when
there is no longer a requirement for the supplies or services or when amendments to the invitation would
be of such magnitude that a new invitation is desirable.
Where an invitation is cancelled, bids that have been received shall be returned unopened to the bidders
and a notice of cancellation shall be published in the same media used for the invitation of bids.
8.28 Bid Submission, Opening, and Recording
8.28.1 Bid Submission
Bids shall be submitted to the address in the invitation for bids not later than the exact date and time set
for bid opening. Bids shall be submitted in the numbers specified in the invitation to bid and in sealed,
addressed envelopes.
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All bids including all modifications received prior to the time of opening shall be kept unopened in a
secure place.
Bids submitted after expiry of the deadline shall be declared late and shall not be considered; such bids
shall be stamped “late” and returned unopened to their respective bidders. Generally, emailed,
telegraphed, or faxed bids shall not be accepted.
8.28.2 Opening of Bids
Bids must be opened by a committee (TOC) of at least three, in accordance with the provisions of
Schedule II of the PPR 2008 in the presence of bidders’ representatives who choose to attend the
opening.
The officials designated as the TOC shall declare the time for the tender opening. The officials shall then
personally and publicly open the tenders and read the contents aloud to all persons present and have the
proceedings recorded.
8.28.3 Modification of Bids
Bidders may modify or withdraw their bids after submission, provided that written notice of
the modification or withdrawal of the bids duly signed by an authorized representative is received by the
HOPE prior to the bid submission deadline. More details on withdrawal and modification are given in the
Standard Bidding Documents.7
The original of each bid shall be carefully safeguarded.
8.28.4 Recording of Bids
The chairperson of the TOC shall call out the contents, which shall be recorded by the rest of
the members of the opening panel and bidders representatives, if they so wish. Also to be recorded are
prices, delivery periods, provision of bid securities, withdrawals, modifications in standard format, and
samples (if these are required).
At the end of the bid opening, TOC members shall append their signatures to the bid recording sheet.
Minutes of the bid opening must be prepared by the member/secretary of the TOC and placed in the
procurement file. Copies of the minutes shall be distributed to the MD- SDF. In addition, bidders may
request copies. For prior review packages, copies are also promptly given to the WB.
8.28.5 Bid Samples
Samples should generally be requested if other methods of description are not feasible or adequate. Such
samples must be submitted with the bids or upon request of the TEC if required.
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Where samples are required, inspection of such samples should be done by a joint team drawn from the
DFA and the user units. Samples submitted shall be stripped of any identifying marks and coded before
the inspection takes place to prevent the possibility of bias in selection. The person who strips and codes
the samples shall not
8.28.6 Currency Conversion
Bid prices quoted in various currencies shall first be converted to BDTs by using the selling exchange
rate of a representative Bank as specified in the tender document on the date of bid opening.
8.28.7 Payments
The method and conditions of payment to the supplier shall conform to those set out in the tender and
contract documents.
When final payment is to be made after delivery of the items, the items must be checked and a goods-
received note or an acceptance certificate issued before payment can be made; for imported goods,
payment should be supported by the shipping documents.
Prices charged by the supplier for goods shall not, with the exception of any price adjustments authorized
in the tender document or contract, vary from the prices quoted by the supplier in his bid.
8.29 Clearing and Delivery and Post-Delivery Considerations
8.29.1 Clearing and Delivery
When a local supplier or foreign supplier on CIP (point of delivery) is awarded the contract,
Then delivery must be made by the supplier at the indicated place.
When the award is on a cost and freight or cost, insurance, and freight basis, as soon as the shipping
documents are received, the clearing agent appointed by the SDF shall make the necessary application to
exempt the goods from duty (if needed) or process the necessary documentation so they can be cleared
from the ports immediately upon arrival.
When the advance shipping documents are received by the C&F they shall notify the DFP to enable the
latter make preparations to receive the goods
When the imports are on a cost and freight basis, the DFP is responsible for providing insurance; when
SDF receives the shipping documents, they must be given to the C&F who will contact the approved
insurance agent to obtain the necessary coverage.
When goods arrive at the port and are being cleared, the SDF shall be notified to make provision for the
receipt, storage, and distribution of the goods.
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When cleared from port, the goods shall be delivered to the receiving bay of the destination warehouse
where they shall be checked by the Standing Board (nominated by the MD-SDF) for quality and quantity
against the supplier’s invoices. Once the Board issues their report, the information must then be entered
in the receiving-warehouse inventory control system and a goods-received note generated; the note shall
be signed by the Additional Director in charge of the Central Warehouse and attached to the supplier’s
invoice and sent to the MD for payment.
The goods received shall be transferred to the appropriate warehouse via a transfer document. A report
on the condition of the goods received is to be sent to the MD.
8.29.2 Warranty/Defects Liability Period
When required, the warranty period shall be calculated from the time of delivery of the goods
or as specified in the contract documents.
During the warranty period, the supplier shall compensate the purchaser for losses due to defects
resulting from faulty design, materials, and workmanship which become manifest.
The user or warehouse shall notify the SDF if any defect is detected in any items supplied which are still
under warranty; the DFA of SDF shall then promptly notify the supplier or contractor in writing of any
claims. The MD of SDF may take any necessary action to claim compensation at the suppliers’ expense
if the supplier fails to remedy the defect while the goods are still under warranty. All steps should be
taken as mentioned in the tender document and as per PPR 2008.
8.29.3 Defective Goods at Time of Delivery
After goods have been delivered, if the SDF user is not satisfied because the goods
are of substandard quality or otherwise do not meet the specifications as stated in the
purchase contract, the Standing Board shall issue a discrepancy report to the MD. This will provide the
MD with the necessary information to enable it to reassess the performance of the supplier and take
appropriate action permitted by the law or under the contract.
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CHAPTER-9
PROCUREMENT STRATEGY, OBJECTIVE AND
RISK MANAGEMENT
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9.1 SDF’s Procurement Strategy
SDF always give emphasize to improve the capability of SDF staff in a sustainable manner. It’s
institutional procurement strategy is to ensure the roles, responsibilities, structure, reporting,
procurement systems, skills and capacity building of staff and these will be used at optimized
ways. SDF also follow it’s project’s specific procurement strategy, and the general practice is to
follow financiers’ rules in Development Partner funded projects, the Government’s Public
Procurement Act 2006 (PPA) and Public Procurement Rules 2008 (PPR).
9.2 Procurement Objectives
SDF, key strategic procurement objectives have been identified.
Category
Supply
Difficult
y
Relative
Expenditur
e
General
Objectives Solution
Routine Easy Low
Minimize
Administrativ
e Effort
Procure with minimum lead time
(computers, printers, bicycles).
Supply and acceptance test at
decentralized level if possible.
Post-sales services contracts at
district/sub-district level.
Leverage Easy High Reduce Total
Expenditure
Use life-cycle costing with proper supply
chain for routine maintenance (CCVs).
Introduce long-term contracts (software,
CSOs, MIS development).
Bottleneck Difficult Low
Ensure supply
quality and
continuity
Establish standard specifications for SDF
needs (motorcycles).
Long-term contracting (licensed software
and systems, CSOs etc.).
Strategic Difficult High
Manage
supplier
relationship
and reduce
risk and cost
Use single source contracts for strategic
assignments with due rationale.
Maintain a pool of short-term consultants
for indefinite delivery contracts, including
for procurement and audit services.
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9.3 Procurement Risk Management
9.3.1 Capacity of Staff
SDF always give emphasize to improve the capacity of staff to minimize the procurement
risk. Necessary training will be arranged for the respective staff so that they can perform the
procurement task properly.
9.3.2 Identifying risk and risk mitigation from different procurement problem
Problem Risk Factor Risk Mitigation
SDF cannot procure material
in timely
Project operation will hamper
for getting material in due
time
Make and approve
procurement plan from
authority.
Many qualified bidders cannot
participate in bidding
Lack of competition Give appropriate time to
bidder, so that they can
prepare bid in time
Only few participants are
dropping bids.
Lack of publication It is necessary for wide
publication for competitive
bidding process
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CHAPTER - 10
HANDLING PROCUREMENT COMPLAINTS
.
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10.1 Right to Complain
Any supplier that claims to have suffered or that may suffer loss or injury due to a breach of the
provisions of the procurement procedures outlined in the PPR 2008 or the WB procurement
procedures may seek redress as per Rules 56–60 of the GOB PPR 2008. Some of the typical
circumstances under which a formal complaint may be to MD in the case of invitations for
prequalification include—
Prequalification documents were not ready when the advertisement was published by
SDF or were not available when requested by a potential applicant
Failure to respond promptly to a request for clarification from a potential applicant
Failure to evaluate the qualifications as per the criteria stated in the prequalification
document
Perceived unfair denial of prequalification
Possible corrupt or collusive practices that may have advantaged a competitor
Some of the typical circumstances under which a formal complaint may be to MD in the case of
open tendering, limited tendering, two-stage tendering, and request for quotations include:
1. Advertisement procedures not properly adhered
2. Tender documents not ready when the advertisement was published by the SDF or not
available when requested by a potential bidder
3. Failure to respond promptly to a request for clarification from a potential bidder
4. Technical specifications that are not generic or are framed in such a way that only one or
a select number of manufacturers can meet them
5. Failure to hold a pre-tender meeting as per the published advertisement or to notify
potential bidders in a timely manner about a change in date, location, and time that
resulted in some bidders being unable to attend the meeting
6. Failure to open the bid as stated in the advertisement of invitation or improper conduct at
the time of tender opening
7. Mishandling of bids received from bidders resulting in the opening of one or more
tenders before the specified time that causes either a loss of confidentiality or an actual
failure to open a tender at a public meeting
8. Failure to open all bids received prior to the submission deadline
9. Failure by the TEC/PEC to evaluate the tenders in compliance with the evaluation
criteria stated in the tender documents
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10. Any attempt by the SDF to “negotiate” with the successful tenderer without giving equal
opportunity to all tenderers prior to an award
11. Possible corrupt or collusive practices giving advantage to a competitor
12. Perceived unfair or erroneous award of a contract
13. Breaking confidentiality at the time of clarifications with each bidder during the
evaluation in the first stage of a two-stage tendering
10.2 Submission of Complaints to the Authority
1. The person shall submit a complaint in writing within the period specified in Schedule II
of the PPR 2008 to the Managing Director of SDF
2. After submission of complain the matters will be dealt with following the specified in
Schedule II of PPR-2008
3. SDF shall maintain a complaint register in which brief information of all complaints and
the decision taken regarding such complaints shall be recorded.
However, as per the PPA 2006, the following shall not be the basis for a complaint provided for
in Act 29(1) -
The choice of procurement method
A refusal to short-list an applicant
The decision to reject applications for prequalification, tenders, quotations, or proposals
A decision of award made by CCGP
10.3 Applicable Law
The applicable laws under which the contracts shall operate are the laws of the Peoples’
Republic of Bangladesh.
References:
1. PPA-2006
2. PPR-2008
3. World Bank guideline for procurement
4. PAD
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ANNEX 1. SUPPLIER REGISTRATION FORM
Section 1. Company Details and General Information
1. Name of firm
2. Street address Postal code City Country
3. P.O. box and mailing address
4. Telephone number
5. Fax number
6. E-mail address
7. WWW address
8a. Contact name
8b. Contact title
9. Parent company, if any (full
legal name)
10. Subsidiaries, associates, and/or overseas representative(s), if any
11. Nationality of the firm
12a. Type of business
12b. If other, specify
13. Nature of business
14. Year established
15. Key personnel (include names of candidates, positions, professional qualifications, and
experience)
Technical Production Management
16. Dates, numbers, and expiration dates of current licenses and permits
17. Current registration information with any Government
Ministry/Division/Directorate/Department/Authority/Unit or any other office.
18. Proof of product and facility registrations with purchaser’s country regulatory authority
and international agencies (e.g., WHO Certification Scheme, GMP)
19. Name of government agency(ies) responsible for inspecting and licensing of facilities in
the country of origin of the raw material and or processing of the goods
Date of last inspection
20. Quality assurance certification
(Please include a copy of your latest
certificate with the PQ application)
21. Production capacity (insert peak and average production capacity over the last three years
in units/day or units/month, etc.)
22. List of names and addresses of sources of raw material
23. Raw materials tested prior to use
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24. Presence and characteristics of in-house quality control laboratory
25. Names and addresses of external quality control laboratories used
26. Are all finished products tested and released by quality control prior to release for sale?
Yes No If not, why?
27. List control tests done during production
28. Procedures for dealing with rejected batches
29. List tests conducted after production and prior to release of product on market
30. List product recalls linked to defects during the last 36 months, including reasons and
dates of recall
31. Are technical documents available in English? Yes No
32. Working language of bids and contracts is English
Section 2. Financial Information
33/34. Annual sales value for the last 3 years
Year Total sales (USD)
35. VAT no./tax ID
36. Social security number
37a. Bank name:
37b. Swift/BIC address
37c. Bank address
37d. Bank account number
37e. Account name
38. Please mail a copy of the company’s annual or audited financial reports for the last three
years.
Section 3. Current Contract Commitments/Contracts in Progress
39. Name of contract(s)
40. Purchaser contact information (insert address, telephone, fax, e-mail address)
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41. Value of outstanding contracts (current USD equivalent)
42. Estimated delivery date
43. Average monthly invoices over the last six months (USD/month)
Section 4. Experience
44. Contracts over (insert amount) during the last three years
Purchaser Value Year Goods/services supplied Country of destination
Section 5. Other
45. Please list any disputes your company has been involved in over the last 3 years
Year
Award FOR or AGAINST applicant
Name of client, cause of litigation, and matter in
dispute
Dispute amount (current value, USD
equivalent)
46. We hereby certify that the information provided in this form is correct and, in the event of
changes, details will be provided as soon as possible.
Signed
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ANNEX 2 : Procurement Plan Format
Sl No.
Contract Package Number
Contract Description
Unit Qty/ Nos.
Actual Contract Price in US $
Actual Contract Price in BDT
Estimated
Contract Price in
BDT
Procedure / Method
Procurement
Guideline (PPR)
Prior Review (Yes / No)
Planned Date of
Bid Opening
Planned Date of
Contract Signing
Planned Date of Delivery
Name of Supplier
Progress of Procurement
as of Remarks
Actual Date of
Bid Opening
Actual Date of
Contract Signing
Actual Date of Delivery
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17