International Development Business Bid to Win Partnering for Success, and Creating Winning Proposals

1
International Development Business Bid to
WinPartnering for Success, and Creating
Winning Proposals
IDB Procurement Workshop Washington, DC April
15, 2004
2
Presentation Objectives

• Develop a better understanding of

• International development business project
  opportunities with through the IDB
• Perhaps the 2 most critical success factors
• Strategic partnering
• Effective proposals

3
The Road to Success
Partnering, Proposals, Persistence

4
Types of Opportunities(for Consultants)

• Direct-hire with the IDB as client (smaller
  value short term usually sole source).
• Competitively-bid projects with IDB borrowing
  country government as client (larger value,
  longer term, formal competitive bids).
• Subcontracts with other firms. (as partner, as a
  team member).

5
Large Value Contracts Competitive Bids
6
Experts agree

• Partnering is perhaps the most critical
  success factor. Most successful firms credit good
  partnership as the most key success factor and
  most firms who fail blame weak partnership as the
  main failure factor

7
Partnering for Succe
"The greatest change in corporate culture - and
the way business is being conducted - may be the
accelerated growth of relationships based on
partnership." -
Peter F. Drucker
8
Why Partnering?

• Common Sense (good business sense)
• Locals have knowledge of the culture, political
  situation, business and legal environment
• Locals have the personal contacts

9
Local firms winning more..

• IFI contract award trends companies from
  developing and transition countries winning more
  and more and more and more of the business
• Not just local firms international firms within
  region (ie., Brazilian firms winning contracts in
  Colombia, Peru, Mexico, etc

• So If you cant beat em, join em.

10
Why Partnering

• Having local content is now imperative in order
  to earn points in most technical/ consulting
  proposal evaluations
• Partners Points

11
Why Partnering

• Partnering now also a financial imperative in
  most IDB and World Bank funded technical
  assistance contracts. Why?
• QCBS

Quality Cost Based Selection
12
QCBS Getting Points for Partnering

• Financial Evaluation can now account for as much
  as 25 of the overall proposal evaluation
• Thus, greater price competition in IDB consulting
  bids than in the past
• Local content typically economizes on budget for
  fees (and certain project expenses)

13
QCBS Not all bad !

• Can make your bids more competitive against
  traditionally high-priced tough competition.
• And
• QCBS typically means lump sum remuneration
  contracts (greater flexibility in project
  management)

14
Finding a Partner (How?)

• Step 1 Profiling a partner
• Step 2 Searching for and Identifying
  prospective partners
• Step 3 Short listing 2-3 best prospects
• Step 4 Contacting and meeting prospects.

15
How to Find a Partner(Step 1 Profiling)

• Complete a prospective partner profile (matrix
  criteria, qualities, skills, qualifications)
• Use a checklist approach (evaluate
  strengths/weaknesses)

16
Profiling Partner Criteria

• Qualities (Skills)
• Honesty, integrity
• Communication skills
• Languages
• Work Ethic

• Qualifications
• Knowledge and expertise in the sector
• Project experience (including in projects funded
  by World Bank, bilateral donors, etc.)
• Relationships and reputation in the country

Domestic and international experience of firm
(export success?)
17
Step 2 (Searching for them)

• Recommendations
• From other firms active in the region/country
• From IFI project officials (DC, in country)
• Embassies (and reciprocal)
• Trade missions
• Chambers of Commerce
• Industry associations
• World Bank / IDB contract listings
• Alumni
• Other ?

18
WB / IADB /AsDB Contract Awards Listings

• Searchable contract data bases
• www.worldbank.org/sprojects/AdvancedContract.asp
• http//condc05.iadb.org/idbppi/asp/mainpage.asp
• www.adb.org/Documents/ADBBO/contracts.asp
• Other key sources of info on local consultants
• www.developmentex.com
• www.dgmarket.com
• www.consultingbase.com

19
Assessing Prospective Partners
Check credentials, reputation

• Do they have a website?

Do background check (trust but verify)
Have they worked with other foreign firms?
20
Selecting the right partner

• Assess COMPATIBILITY of business objectives and
  philosophy
• Do not fear size differentials (different sizes
  can compliment)
• Visit plan or offices, meet key personnel

21
Meet and Interview Prospective Partners

• Try and schedule meetings to take place in their
  offices (permits you to assess human resources,
  technical capabilities, etc.)
• Cross-cultural sensitivities (be prepared to
  socialize, get to know each other).
• Partner relationships a two-way street always
  remember they are interviewing you as well.

22
Selecting the right partner

• Skills compliment and capabilities (includes
  Human Resources assessment, compatibility of
  organizational structures, quality of management,
  technical capability)
• Knowledge of technology and of local market
• Domestic and international experience of firm
  (export success?)
• Financial strength (consider cash infusions)
• Personal chemistry (the social factor)

23
Structuring the Partnership

• Short term (joint bid) Subcontracting agreement
• Memorandum of Understanding
• Issue of Exclusivity (I.e,. On bids)
• Long term (joint venture)

24
Before teaming

• with another business you should do a through
  check on its financial and business standing. You
  can even ask your potential partner for an
  exchange of financial informationwhich should
  not be a problem if you both sign a
  confidentiality agreement.
• - Investigate.. Formal due dilligence

25
Ideally

• You and a potential teaming partner will work
  together on a few small projects before going
  after a large contract. This way you will develop
  techniques for working together smoothly, while
  developing a track record to demonstrate
  compatibility to the contracting officials.

26
The Strategic Approach

• Develop a strategy (Country targets, sector
  focus commit time resources)
• Knowledge (learn about IFI market, target
  countries
• Identify / Research Opportunities
• Partner, partner, partner
• Participate in the bidding game (EOIs, proposals)

27
Bid to WinTypes of IDB Project Submissions

• General Letter of Interest (unsolicited)
• The Expression of Interest (EOIs / SOQs)
• In response to advertised requests for EOIs
• The Bid Technical Financial Proposals
• In response to Request for Proposals (RFP)
• ICB Bid (Goods, Equipment, Civil Works)

28
Submissions are in Response to

• PUBLIC NOTICES
• General Procurement Notice (GPN)
• Specific Procurement Notice (SPN)
• Requests for Proposals (short-list)

• SUBMISSION
• Letter of Interest
• Expression of Interest
• Detailed Technical Financial Proposal

• Can be in response to direct invitation as
  well

29
Development Businesswww.devbusiness.com
Where to Find the Bid Notices
DB Online US 495 / year DB Print Only
US 550 / year DB Print Online US 725 /
year DB MOS Only US 275 / year (dont
bother)
(OUCH!)
30
Other Procurement Notice Sources

• IDB Online Phased Out
• Notices now on IDB Web Site free of charge
• www.iadb.org/ros/notice/notice_eng.htm

31
Development Business - Online Version -

• Electronic version of Development Biz now rules.
• EOI submissions and goods/equipment bids are
  sometimes due 30 days from the on-line
  publication date, not from the issue date.

• THEREFORE SHOULD LOG IN AND CHECK
• FOR NEW PROCUREMENT NOTICES EVERY
• FEW DAYS (I.e. Monday, Wednesday, Friday).

32
The General Procurement Notice (GPN)
33
(No Transcript)
34
(No Transcript)
35
(No Transcript)
36
General Letter of Interest(..in response to
GPN)

• Brief one-page letter (a mini EOI)
• Introduce firm and generally express keen
  interest in project
• Ask to be put on so-called mailing list
• Enclose minimal material
• Dont rely on so-called mailing list Track Dev
  Biz for Specific Procurement Notices.
• Copy IDB Project Officer ?

37
Travel to the Country?

• .. Expensive, yet critical to the process

38
The Specific Procurement Notice (SPN)
(Request for Expressions of Interest Consulting
Services)
39
                                                
                                                  
                                                  
                                               
                                                  
                                                  
                                                  
                                             
40
(No Transcript)
41
(No Transcript)
42
(No Transcript)
43
(No Transcript)
44
The Formal Expression of Interest

• Cover letter (ideally one page)
• Convey interest and awareness of project/issues
• State why you should be short listed
• Intent to incorporate local experts (Identify
  em)
• Ask to be short listed !
• Accompanying 3-6 page pre-qual statement
• Description of Firm and a few key staff (CVs?
  Depends)
• Project Experience (Relevant Ones Brief
  Snapshots)
• Language capabilities (Should EOI be translated?)
• Brochures (Keep to a minimum)

45
Preselection Criteria(Making the Short List)

• Legal Capacity (eligibility).. (Yes/No)
• Financial Capacity (Yes/No)
• General Technical Background and
  Capability (40)
• Experience in Similar Work. (35)
• Experience in the Country,
• or Similar Countries (10)
• Language Capability. (10)
• Use of Local Consultants.. (5)

46
Goods Equipment Procurement Notices
47
(No Transcript)
48
(No Transcript)
49
Standard Bidding Documents (Goods)

• - Inter-American Development Bank Standard
  Bidding Documents for the Procurement of Goods 
  www.iadb.org/regions/goodsidb.pdf
• - Users Guide for the IDB's Standard Bidding
  Documents for the Procurement of
  Goods www.iadb.org/regions/uggoods.pdf

50
You Made the Shortlist! The RFP

• Letter of Invitation
• Other short-listed firms
• QCBS (Quality Cost-Based Selection) or QBS
• Data Sheet
• Estimated person-months
• Evaluation criteria
• Prescribed Proposal Format (Standard Forms)
• Terms of Reference
• Draft Contract

51
Key Proposal Evaluation Criteria
Actual criteria vary depending on nature of work,
country, etc.

Approx../- Qualifications/experience of team
members (CVs) .. 40 pts Approach, Methodology
Work Plan .. 40 pts Language Proficiency
... 10 pts Local Content (use of
local consultants) 10 pts
100 pts
52
Other Evaluation Criteria

• Demonstrating understanding of difficulties of
  assignment 10-15 pts. (Response i.e., proposing
  Results-based management principles, and by
  including Logical Framework
• Local Participation
• (Ranges from 10-20 points out of 100)
• Hence, having locals on team is essential to
  winning the contract
• Financial Capability of firm (or consortia)

53
Evaluation Grids

• A model can be found on World Bank website
• www.worldbank.org/procure

54
The Proposal Process

• Timing (youve got just 3-4 weeks!)
• Strategy go or no go.
• Budget? Get more info / intelligence
• Request an extension?
• Assemble a Project Team
• Assign tasks

55
The Proposal Process

• Assign tasks (i.e., Production,
  graphics, packaging, cover, logistics)
• CVs (start early)
• Get cracking, crank out a draft
• Drafter(s) proposal should have one voice
• Be compliant but be innovative

56
Key Sources of Info for Your Proposal (i.e.,
Project Background, Objectives, Budget)

• IDB Project Report (now available for free on
  line!).
• In-depth info on the project.. as a guide for
  preparing technical (and financial) proposal
• Example follows

57
(No Transcript)
58
(No Transcript)
59
Total Compliance is Imperative

• Follow bidding instructions and terms of
  reference to the letter.
• Be Compliant.. But you can still strive for
  originality and innovation in the work plan and
  methodology

60
Technical Proposal A Standard Format

• Section A Submission Letter
• Section B The Firms References
• Section C Comments and Suggestions on TOR
• Section D Methodology and Work Plan
• Section E The Team and Tasks Assigned
• Section F Curricula Vitae of Team Members
• Section G Time Schedule Team Members
• Section H Project (Work) Schedule (GANT)
• The Cover

61
The Cover

• Nice packaging conveys professionalism,
  creativity, innovation
• Use quality paper, binding, lots of color, and
  creative graphics

62
(No Transcript)
63
(No Transcript)
64
Section B Firms References

• One-two page project quals / profiles (formal
  requirement)
• Can be also useful to include
• Narrative section describing firm and introducing
  team via 2-3 sentence bios. (sell, sell, sell
  your team members)
• This section is where you sell your
  qualifications.. With particular focus on
  individual team members.

65
Section C Comments/Suggestions on TOR

• Heres where you demonstrate understanding of
  the assignment
• Make suggestions as to other objectives, results,
  deliverables
• Largely narrative section basically reiterating
  the TOR.. But perhaps more clearly than they were
  written.

66
Section D Approach, Methodology and Workplan

• Guts of the proposal
• Use graphics/models to illustrate your strategy
  and approach
• Use lots of tables (logical framework style) to
  lay out methodology and workplan.
• Divide project into Activities and Tasks (i.e.,
  Work Breakdown Structure, WBS).
• Summary tables, frameworks, bullet points make it
  easy for them to read, understand, and evaluate.

67
Logical Framework

• LogFrame is now the global project planning
  tool of choice
• Facilitates work plan and methodology
• IDB offers an on-line training session on
  learning how to build a logical framework
• Go to www.iadb.org/int/rtc/ecourses/

68
(No Transcript)
69
(No Transcript)
70
Section E Composition of Team

• Lists team members, their titles, and
  responsibilities in 3-column table
• Include a team/project Organization Chart (often
  not requested, but its effective so you should
  include one)

71
Section F CVs of Team Members

• CVs of Team Members
• Follow prescribed format for all CVs.
• Try to keep reasonably short (i.e., not more than
  3-5 pages max.)
• Make sure CVs signed, even if by proxy
• Photos on CVs ? (Pros and cons)

72
Section G Project Time Table

• Level of Effort of individual team members
• Bar Chart showing person days for each team
  member for each activity
• What theyre looking for is to make sure
  sufficient days to the key people (and locals.
• Youll have a chance to reallocate days during
  negotiations, inception and implementation

73
Section H Activity (Work) Schedule

• Project time-table (Activity by activity)
• GANT/Bar Chart showing timeline of project,
  activity by activity, dates of key deliverables
• Section H.2 a table/listing of deliverables and
  due dates.

74
The Financial Proposal

• Separate Envelope.. Will be opened in public and
  only after Technical Proposals are evaluated
• Costing proposal tricky. Often you have idea of
  the budget or, at least, expected total person
  months.
• LUMP SUM CONTRACTS (QCBS)
• Pricing will depend much on analysis of the
  competition knowledge of their rate standards
• Research applicable taxes.

75
Producing and Submitting the Proposal

• Print, Sign, Signature
• Copy, mark original and copies
• Packaging
• Delivery
• - Fedex?
• - Fly someone over?
• - If its late, its doomed!
• - Get a receipt.

76
After the Submission The Waiting Game

• Wait (1-3 months on average Bid validity)
• How do you know when theyve decided?
• Letter re public opening of financial proposals
• Technical and Financial Scores read out
• Composite Score calculated (in QCBS)
• Invitation to Negotiate to the winning firm
• CONTRACT AWARD
• Project Implementation

77
Protests

• Not happy with outcome?
• Think the evaluation was conducted unfairly? (ie.
  as in a recent case where financial proposals
  were opened and prices announced, but technical
  scores were not.)
• Can protest.. Directly with borrower/client
• At best, protest would result in a re-bid.
• Without strong case, protest will likely fail.
• Our usual advice fuggedaboutit.
• Rather Analyze lessons-learned.

78
Negotiating the Contract

• Invitation to negotiate
• Negotiation Strategy (Target Outcome)
• Negotiation Issues
• Duration (Start-Finish dates)
• Scope of Services (Add-ons? More budget?)
• Deliverables Timetable (Maintain control !,
  avoid linking them to factors not in your
  control)
• Terms of Payment
• Reporting Requirements
• Follow-on work
• Contingencies

79
Project Implementation

• Do good work
• Keep IDB officer(s) informed of progress
• Keep eyes open for related opportunities
• Leverage presence and experience
• Document project (I.e. photos, videos) for future
  bids

80
Questions and Comments
hewilk_at_earthlink.net 3 Main Street, Suite
108 Burlington, VT 05401 USA t 802.658.1688
f 802.652.5165