Procurement Methods Armando Ribeiro Araujo

1
Procurement MethodsArmando Ribeiro Araujo
2
Procurement Guidelines

• Goods and Works
• Introduction
• International Competitive Bidding
• Other Methods
• Appendices

• Consulting Services
• Introduction
• Quality- and Cost-Based Selection
• Other Methods
• Types of Contracts and Important Provisions
• Appendices

http//www.worldbank.org/html/opr/procure/propage.
html
3
Fraud Corruption Provisions Guidelines (Para
1.15 or 1.25)

• Corrupt Practice
• Offering, giving, receiving or soliciting of
  anything of value
• Fraudulent Practice
• Misrepresentation of facts
• -- to influence the procurement process or
  contract execution

4
Fraud and Corruption

• Parties expected to observe highest ethical
  standards
• Bank reserves the right to audit firms accounts
  and records of the contract
• Sanctions by Bank
• Will reject proposal for award
• Cancel the portion of the loan
• Declare firm ineligible for a limited period of
  time or indefinitely
• List of debarred firms will be posted on the
  World Bank website
• http//www.worldbank.org/html/opr/procure/debarr.h
  tml

5
Anti-corruption Hotline Number

• The World Banks Hotline for reporting
  allegations of fraud and corruption can be
  reached outside of the United States and Canada
  by contacting an ATT operator and asking for the
  Banks toll-free hotline number
• 1-800-831-0463

6
PROCUREMENT RELATIONSHIPS
World Bank
Borrower
Contractor
7
THE BANKS ROLE

• Lend for Specific Projects
• Appraise Projects and Assess Risk
• Assist the Borrower
• Provide Information on Projects
• Monitor Compliance with Agreements

8
THE BORROWERS ROLE

• RESPONSIBLE FOR PROCUREMENT
• Prepares Procurement Plan
• Prepares and issues Bidding Documents
• Invites Bids
• Receives and Evaluates Bids/proposals
• Awards Contracts
• Implements

9
BIDDERS RECOURSE(Appendix IV of the Guidelines)

• Address all queries or complaints to the client -
  the borrower
• Copy queries/complaints to World Bank sector
  director and Regional Procurement Adviser
• Write to your embassy in borrowers country or
  commercial attaché in Washington to expedite
• Bidders may request a debriefing

10
PROCUREMENT METHODS

• ICB - Intl Competitive Bidding
• LIB - Limited Intl Bidding
• NCB - National Competitive Bidding
• SHOPPING
• DIRECT CONTRACTING
• FORCE ACCOUNT
• OTHERS

3
11
INTERNATIONAL COMPETITIVE BIDDING

• NOTIFICATION /ADVERTISING
• PREQUALIFICATION IF REQUIRED
• OFFICIAL BANK LANGUAGES
• USE OF STANDARD BIDDING DOCUMENTS AND
  EVALUATION FORMS
• BID PRICES

4
12
ICB- BID AND CONTRACT DOCUMENTS

• INTERNATIONAL STANDARDS AND SPECIFICATION
• FAIR ALLOCATION OF RISK BETWEEN PARTIES
  IN THE CONTRACT
• DISCLOSURE OF EVALUATION CRITERIA
• PUBLIC BID OPENING

5
13
ICB - PAYMENT CONDITIONS

• EXCHANGE RATE FIXED
• PRICE ADJUSTMENT
• NO FINANCING REQUIREMENT
• ADVANCE PAYMENTS
• LETTERS OF CREDIT
• DIRECT PAYMENT

6
14
ICB- BID OPENING AND EVALUATION

• PUBLIC BID OPENING
• NO MODIFICATION OF BID AFTER
• OPENING
• EXAMINATION OF BIDS

7
15
ICB- BID OPENING AND EVALUATION (CONTINUED)

• EVALUATION AND COMPARISON OF
• BIDS
• DOMESTIC PREFERENCES
• BID VALIDITY
• AWARD OF CONTRACT

8
16
ICB- STANDARD BIDDING DOCUMENTS

• USE BY ALL BORROWERS
• CONTENT
• GENERAL DATA
• PROJECT AND COUNTRY SPECIFIC
• DATA
• AVAILABLE STANDARD DOCUMENTS

9
17
HOW TO DO BUSINESS

• DEVELOP STRATEGY
• IDENTIFY NEEDS
• OBTAIN INFORMATION
• PREPARE BIDS
• SUBMIT BIDS AND GUARANTEES IN
• TIME
• ATTEND BID OPENING
• READ APPENDIX 4 OF GUIDELINES

13