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Inter-American Development Bank. Procurement of Goods, Works and Consulting Services in projects financed by IDB Washington, DC – February 2004. Business Opportunities at IDB. There are two markets:

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inter american development bank

Inter-American Development Bank

Procurement of Goods, Works and Consulting Services in projects financed by IDB

Washington, DC – February 2004

business opportunities at idb
Business Opportunities at IDB
  • There are two markets:
    • Procurement contracts with IDBfor feasibility and design studies as part of project preparation ~5%
    • Procurement contracts with ExecutingAgencies in projects financed by IDB ~95%
basic principles in procurement
Basic Principles in Procurement
  • Economy
  • Efficiency
  • Competition
  • Equality
  • Transparency
  • Due process, and
  • Publicity
idb procurement policies practices
IDB Procurement Policies Practices
  • Bank’s procurement practices reflect best practices used worldwide. For IDB-financed projects the following rules apply:
    • National legislation applies. National legislations stipulate that for procurement financed by Multilateral Development Banks their procurement policies and procedures apply
    • Eligibility – nationality of private entities/individuals must be from IDB member countries
    • Origin of goods and related services – must originate from IDB member countries
division of responsibilities in procurement financed by idb
Division of Responsibilities in Procurement Financed by IDB
  • Bank
  • Oversees the application of IDB procurement policies and procedures
  • Gives its “no-objection” at different stages in the procurement process
  • Contracting Agency
  • Owns the bidding process
  • Publishes procurement notices
  • Issues bidding documents
  • Evaluates bids
  • Awards the procurement contracts
  • Manages contracts
procurement methods
Procurement Methods
  • Competitive bidding
      • International Competitive Bidding (ICB)
      • National Competitive Bidding (NCB)
  • Both methods are open to all eligible participants from IDB member countries
  • Use of one or the other determined by the Project Procurement Plan and the specific threshold amounts set forth in the Loan Contract
threshold amounts for procurement
Threshold Amounts for Procurement
  • Agreed in specific Loan Contract (by project and country)
  • Range for maximum threshold amounts:
    • Works = US$ 1 million to US$ 5 million
    • Goods = US$ 150,000 to US$ 350,000
    • Consulting services = US$ 200,000
  • All procurement at the threshold level or above requires the use of ICB
  • For procurement under the threshold amounts NCB can be used
exceptions to competitive bidding
Exceptions to Competitive Bidding
  • Competitive bidding restricted to a pre-established list of qualified providers/contractors, whenever there is:
    • A need to standardize specialized equipment
    • Emergency projects (natural disasters)
publicity competitive bidding
Publicity - Competitive Bidding
  • General Procurement Notice (GPN)
    • Published once within 30 days of approval of Loan by the Board of Directors
      • In:

-“Development Business”(electronic issue)

- IDB’s web page immediately thereafter (within 24 hours).

competitive bidding publicity
Competitive Bidding Publicity
  • Specific Procurement Notice (SPN)
      • Published for every NCB, in:
        • One local newspaper of wide circulation
      • In case of ICB, in addition to national publicity, the SPN is published in:

- United Nations “Development Business”(electronic issue).

- IDB’s Web Page immediately thereafter (within 24 hours).

minimum number of days for publication of spn prior to documents submission
Minimum Number of Days for Publication of SPNprior to Documents Submission
  • For Prequalification Applications:
    • Goods 45 days
    • Works 45 days
    • Consulting Services 30 days
  • For Bids:
    • Small Works 45 days
    • Major Works 90 days
    • Goods 45 days
    • Consulting Services 30 days
contracting agency s responsibilities in a bidding process
Contracting Agency’s Responsibilities in a Bidding Process
  • Provide enough time to Bidders for bid preparation – extend this period, if deemed necessary
  • Inform how to obtain clarifications to bidding documents
  • Evaluate bids in accordance with specified criteria
  • Preserve confidentiality of bidding process
  • Award the procurement contract
  • Notify all parties of the results of the process
bidder s responsibilities in a bidding process
Bidder’s Responsibilities in aBidding Process
  • Carefully analyze technical specifications/Terms of Reference included in the bidding documents
  • Strictly comply with the instructions and specifications in the bidding documents
  • Require clarifications to documents in writing
  • Make sure that bid submitted complies with all requirements of bidding documents
  • Submit bid before deadline
factors criteria evaluated in a bid
Factors/Criteria Evaluated in a Bid
  • Bidder’s Qualifications
      • Eligibility
      • Historical Contract Non-Performance
      • Financial Situation
      • Experience
  • Technical Proposal
      • Technical specifications
      • Methodology and work plan
      • Proposed personnel (CV)
      • Delivery schedule
  • Price proposal
who is awarded the contract
Who is Awarded the Contract?
  • For Goods and Works:
  • The Bidder whose bid has been determined to be the lowest evaluated bid and is substantially responsive to the bidding documents.
who is awarded the contract1
Who is Awarded the Contract?
  • For Consulting Services:
  • The Bidder with the best evaluated bid
who is awarded the contract2
Who is Awarded the Contract?
  • For Consulting Services 4 Selection Methods:
  • Quality
  • Quality & Cost
  • Fixed Budget
  • Least Cost
special characteristics in procurement of consulting services
Special Characteristics in Procurement of Consulting Services
  • Represents a small portion of total cost in projects
  • But amounts to a large number of contracts
  • Significant impact on the success of the project
special characteristics in procurement of consulting services1
Special Characteristics in Procurement of Consulting Services
  • Difference in procedures from procurement of Goods and Works:
      • Emphasis on technical competence/capacity and qualifications over price
      • When a pre-selection process takes place prior to the bidding process, invitations are sent to a Short List of pre-selected Applicants (3 to 6 Applicants) instead of all prequalified Applicants,
right to protest throughout the procurement process
Right to Protest Throughout the Procurement Process
  • Bidders/Applicants may submit a protest in writing at any stage of procurement process
  • First instance: Executing Agency and party submitting protest try to come to an agreement
  • Second instance: If protest confirmed, reviewed by the Bank who decides on its merit
  • Decision cannot be appealed
registration in dacon for consulting firms
Registration in DACON for Consulting Firms
  • DACON = Data on Consultants
    • Registration is not mandatory
    • Registration requires that firms have 5 or more full-time professionals
    • Online registration is automatic with both, IDB and World Bank (
tips and other data
Tips and other Data
  • Familiarize yourself with IDB Procurement Policies and Procedures and Standard Procurement Documents
  • Learn about projects in the pipeline / Follow up on projects

  • Consider associating in a consortium or joint venture with a local firm
  • Learn local business practices