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WORLD BANK. INTERNATIONAL COMPETITIVE BIDDING (ICB). INTERNATIONAL COMPETITIVE BIDDING (ICB) – Main Principles. Advance notification General procurement notice (required) Announces ICB procurement opportunities Published in UN Development Business

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world bank
WORLD BANK

INTERNATIONAL COMPETITIVE BIDDING (ICB)

international competitive bidding icb main principles
INTERNATIONAL COMPETITIVE BIDDING (ICB) – Main Principles
  • Advance notification
    • General procurement notice (required)
      • Announces ICB procurement opportunities
      • Published in UN Development Business
      • Publish minimum 8 weeks before release of bidding or pre-qualification documents
      • Annual updates
  • Notification before bidding
    • Specific procurement notice
      • Request for bids for specific contracts
      • Published in:
        • One national newspaper (required)
        • Official gazette (if any)
        • Direct notice to firms responding to GPN (required)
international competitive bidding icb main principles1
INTERNATIONAL COMPETITIVE BIDDING (ICB) – Main Principles
  • Specific UN Development Business (Optional - Yes)
  • Specific Procurement Notice UNDB (required for contracts more than $10 million)
  • International Press/Journals (optional)
  • For large specialized or important contracts notice to be advertised in UNDB, and/or well known technical magazines, newspapers and trade publications
  • Inform embassies of Bank members (encouraged)
international competitive bidding icb main principles2
INTERNATIONAL COMPETITIVE BIDDING (ICB) – Main Principles
  • Equal opportunity
      • Time for bid submission – generally 8 to12 weeks for large contracts but not less than 6 weeks
      • Fair conditions of contract – use of Bank’s standard bidding documents mandatory
      • Broad specification (identify mandatory and desirable)
  • Equal treatment of bidders
      • Disclose evaluation criteria
      • Apply without discrimination
  • Award to lowest evaluated bid
international competitive bidding icb main principles3
INTERNATIONAL COMPETITIVE BIDDING (ICB) – Main Principles

ICB STEPS

  • Notification /Advertising
  • (Prequalification) where specified in LN/CR
  • Issue Bidding Documents
  • Submission of Bids
  • Public Bid Opening
  • Send minutes of Bid Opening to Bank
international competitive bidding icb main principles4
INTERNATIONAL COMPETITIVE BIDDING (ICB) – Main Principles

ICB STEPS (contd.)

  • Evaluate and prepare report
      • Selection of the lowest evaluated bid
      • Post-qualification (when no-prequalification)
      • Post bid verification (when prequalification)
  • Contract award
  • Contract performance
  • Bank clearance required before taking actions on 1, 2, 3 and 8
procurement cycle
PROCUREMENT CYCLE

GENERAL PROCUREMENT NOTICE

CONTRACT PERFORMANCE

AD FOR PRE-QUALIFICATION OR BIDDING

CONTRACT AWARD

PREQUALIFICATION

POST- QUALIFICATION

ISSUE OF BIDDING DOCUMENTS

BID EVAL. SELECTION

PRE-BID CONFERENCE

BID OPENING

other procurement methods
OTHER PROCUREMENT METHODS
  • Only when ICB is not appropriate or practical
  • Must satisfy economy and efficiency requirements
  • Provides competition to the extent possible
  • Gets the best value for money (reasonableness of price)
  • Provides transparency
other procurement methods1
OTHER PROCUREMENT METHODS
  • Adopt only that method which is specified in LN/CR agreement
  • Maintain records of all non-ICB methods
  • Aggregate amounts specified for reach non-ICB method as per loan/credit agreement should not be exceeded
other procurement methods2
OTHER PROCUREMENT METHODS
  • Limited International Bidding
  • National Competitive Bidding – Yes

Contracts <US $ 1.0 m; Aggregate US$ 9.0 m;

Prior Review > US$ 100,000

  • Shopping (International – Yes)

Contracts <US$ 0.1 M:0; Aggregate US$

280,000; Post Review

  • Force Account
  • Direct Contracting
other procurement methods cont d
OTHER PROCUREMENT METHODS (Cont’d)
  • Minor Works (Yes)

Contracts <US$0.1 M:0; Aggregate US$ 1.2

M:0; Prior Review First 2 contracts

(component 1 year

  • UN Agencies (UNICEF/ILO/WHO)
  • Financial Intermediaries (commercial practices)
  • Community Participation
other procurement methods cont d1
OTHER PROCUREMENT METHODS (Cont’d)

NATIONAL COMPETITIVE BIDDING (NCB)

  • Appropriate when
    • Foreign bidders are not interested
    • Nature of goods and works are dispersed
    • Cost of ICB disproportionately high
    • Goods & Works of acceptable quality are available nationally at prices below international prices
  • Acceptable if
    • Provide adequate competition
    • National procedures are reasonable
    • Documentation adequate
    • Does not exclude eligible foreign firms
    • Assure award to lowest evaluated bid
other procurement methods3
OTHER PROCUREMENT METHODS

NATIONAL COMPETITIVE BIDDING (NCB)

  • National procedures acceptable only when CPAR/Side Letters/Minutes of Negotiations or any other documents identify unacceptable features in national procurement process, if any, and borrower agrees to remove them

(side letter)

  • National press publication is required
  • Bidding time should not be less than 4 weeks
  • NCB document should be prepared and cleared with Bank
  • (use sample document)
  • Payment in local currency, national language acceptable
other procurement methods4
OTHER PROCUREMENT METHODS

NATIONAL COMPETITIVE BIDDING (NCB)(contd.)

  • Bid evaluation criteria must be specified – total cost will be compared including import duty, taxes, etc.
  • No domestic preference clause is allowed
  • Foreign bidders if interested should be allowed to bid on same terms and conditions as in NCB document
  • Award should be made to the lowest evaluated bid
  • Bank’s prior review required if specified as per LN/CR
checklist comparing national competitive bidding procedures and world bank policy
CHECKLIST COMPARING NATIONAL COMPETITIVE BIDDING PROCEDURES AND WORLD BANK POLICY

YES NO BANK POLICY

  • Are there eligibility restrictions based on nationality of bidder and/or origin of goods (other than primary boycotts)?
  • Are there primary boycotts which are established by law?
  • Are bidding opportunities advertised in the local press?
  • Are prospective bidders allowed at least 30 days for bid preparation (except for commodities/small goods contracts)?
  • Are contractors/suppliers pre-qualified for large/specialized contracts?
  • Are minimun experience, technical and financial requirements (for pre- or post-qualification) explicityly stated in the documents?

Not allowed

Only primary boycotts are acceptable

Required

Required

Required

Required

checklist comparing national competitive bidding procedures and world bank policy contd
CHECKLIST COMPARING NATIONAL COMPETITIVE BIDDING PROCEDURES AND WORLD BANK POLICY (contd.)

YES NO BANK POLICY

  • Is an invitation to pre-qualify advertised for each procurement involving large or complex potential contracts?
  • Are joint ventures with local firms required for foreign firms’ eligibility?
  • Are joint venture partners jointly and severally liable?
  • Are there set limitations to the number of firms who can bid for a contract?
  • Are parastatals allowed to bid?

Required

Not allowed

Required

Not allowed

Acceptable only if they (i) are financially autonomous, (ii) operate under commercial law and (iii) are independent from borrower and its purchasing/ contracting authority

checklist comparing national competitive bidding procedures and world bank policy contd1
CHECKLIST COMPARING NATIONAL COMPETITIVE BIDDING PROCEDURES AND WORLD BANK POLICY (contd.)

YES NO BANK POLICY

  • Are bidders required to register with local or federal authority as a prior condition for bidding?
  • Are extensions to bid validity allowed?
  • Are there restrictions on the means fo delivery of bids?
  • Is preference given to suppliers or contractors based on region or locality of registration, small size, ethnic ownership, etc.?
  • Are there restrictions on sources of labor and material?

Should be discouraged. Acceptable only if registration criteria, process and cost reasonable/efficient and qualified foreign firms not precluded from competing

Acceptable only if justified by exceptional circumstances

Not allowed, except when bidders have to submit physical samples. Then they can be required to deliver bids by mail, by courier, by hand, etc.

Not allowed

Not allowed, except for un-skilled labor, if available locally

checklist comparing national competitive bidding procedures and world bank policy contd2
CHECKLIST COMPARING NATIONAL COMPETITIVE BIDDING PROCEDURES AND WORLD BANK POLICY (contd.)

YES NO BANK POLICY

  • Is public bid opening required? Does it occur immediately or closely following the bid submission deadline?
  • Is a “two envelope” bid opening procedure permitted for procurement of goods and works?*
  • Is automatic re-bidding required if too few bids are received?
  • Is “bracketing” used in bid evaluations?**
  • Is award made to lowest evaluated qualified and responsive bidder?

Required

Not allowed

Acceptable, provided all responsive bidders are allowed to bid, the process is efficient and no serious delays result

Not allowed

Required

    • * All technical envelopes are opened first and, after review , price envelopes of all or only qualified/responsive bids are opened in the second round
  • ** Rejection of bids outside a range or “bracket” of bid values
checklist comparing national competitive bidding procedures and world bank policy contd3
CHECKLIST COMPARING NATIONAL COMPETITIVE BIDDING PROCEDURES AND WORLD BANK POLICY (contd.)

YES NO BANK POLICY

  • Are price negotiations conducted with “winning” bidders prior to contract signature?
  • Are price adjustment provisions generally used?

Not allowed, except where the bid price is substantially above market or budget levels and then only if negotiations are carried out to try to reach a satisfactory contract through reduction in scope and/or reallocation of risk and responsibility which can be reflected in a reduction in Contract Price. (see Guidelines para 2.60)

Not required, but recommended for works contracts of 1 year or more in duration when domestic inflation rate is high

checklist comparing national competitive bidding procedures and world bank policy contd4
CHECKLIST COMPARING NATIONAL COMPETITIVE BIDDING PROCEDURES AND WORLD BANK POLICY (contd.)

YES NO BANK POLICY

Required (to be acceptable they should be balanced, reasonably and clearly address the most important issues that lead to problems during performance, e.g. risk allocation, payment, inspection, conpletion/ acceptance, insurance, warrantees, changes, contract remedies, force majeure, governing law, termination, etc.)

Acceptable, but advance Bank approval of changes subject to prior review needed if required under the Loan Agreement

  • Are the terms and conditions used in goods and works procurement generally appropriate for the size and nature of contract intended?
  • Are contract scope/conditions modified during implementation?
other procurement methods5
OTHER PROCUREMENT METHODS

SHOPPING

  • International/National
    • Appropriate when
      • Off the shelf goods
      • Values are small
    • No formal bidding document required
    • No public bid opening required
  • International shopping:
    • Obtain quotations (proforma invoice) in writing from at least 3 suppliers from 2 different countries
other procurement methods6
OTHER PROCUREMENT METHODS

SHOPPING (Cont’d)

  • National shopping:
    • Obtain quotations (proforma invoice) from at least 3 countries
  • International/National
    • Request for quote to indicate
      • Description of goods
      • Standard specifications
      • Desired time & place of delivery – allow adequate time but not less than 3 weeks. No public bid opening required
      • Quotations may be submitted by telex/fax
other procurement methods7
OTHER PROCUREMENT METHODS

SHOPPING (Cont’d)

  • Award should be made to the lowest evaluated offer (retain evaluation report for Post Review)
  • Purchase order will indicate terms of accepted offer
other procurement methods8
OTHER PROCUREMENT METHODS

MINOR WORKS

  • Small contracts
  • Works may be dispersed
  • Obtain at least 3 quotations on lump-sum fixed price basis or fixed unit rates
  • Award to the lowest evaluated bid
  • Retain evaluation report for Post Review
  • Use sample document
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