Overall Considerations

1. Overall Considerations • Economy & efficiency • Equal opportunity to all eligible bidders • Fairness, integrity, transparency & good governance • Development of domestic capacity • Competition as per procurement methods prescribed in the Guidelines & specified in the project’s approved proc plan

2. Project Specific Considerations Procurement of Goods, Works & consulting services shall be: • In accordance with loan agreement • Executed within project implementation period • Within budget allocations of LA • Consistent with the Project’s approved annual work plan and its 12-month procurement plan • Conducive to achieve Best value for money

3. Procurement Triangle Time Cost Quality

4. Procurement Methods – Goods/Works • International Competitive Bidding • Limited International Bidding • National Competitive Bidding • National Shopping • Direct Contracting • Commercial Practice • Force Account

5. International Competitive Bidding • Suited to high-value requirements • International business community are interested in participation • Provides all eligible bidders timely & equal opportunity to compete

6. National Competitive Bidding • Governed by National Law and Procedures & is appropriate when: • Foreign bidders are not interested • Amounts are small & local prices are below international market levels • Nature of goods & works – dispersed geographically and/or over time • Works are labour-intensive

7. National Competitive Bidding • Advertising limited to national press, official gazette & free open-access website • Bidding documents in national language • National Procedures must provide for adequate competition, access, objective evaluation, transparency & provisions for bidders’ protests • Payment in local currency

8. National Shopping • Appropriate for : • Low Value goods & works • Off-the-shelf goods or simple works • Standard specification commodities • No formal bidding documents • Requests for quotations toprovide description and quantity of goods, delivery time and place • Written quotations • Quotations by telex, facsimileor e-mail acceptable

9. National Shopping • At least three quotations at evaluation (to ensure competitive prices) • Goods available from morethan one source • No public bid opening of quotations • Brief contract or Purchase order

10. Direct Contracting or Single Source Selection • Accepted by IFAD for: • Extension of existing & usually competitively-awarded contract • Rationale: • Standardisation • Proprietary items • Process design requires critical items from specific supplier as condition of contractor providing performance guarantee • In exceptional cases such as response to natural disaster

11. Procurement with Community Participation • It is not a specific procurement method • Simplification of standards of procurement • Accepted by IFAD in the Poverty Reduction and Rural Development Projects • Project’s role to review, supervise and guide the procurement and implementation of activities. • Decided during design

12. Considerations during design • Country Legal Framework • Organizational capacity • Capacity and technical skills • Administrative and accounting skills • Cost benefit analysis • Beneficiary community’s contribution

13. Community Groups as Implementing Agencies • Competitive contracting applying agreed procurement methods • Supervision of contracted provider of works, goods or services

14. Community Groups as provider of goods, works or services directly • It is an implementation modality within project design • Agreed with IFAD after design • May act as contractor on a commercial basis • As a contributor to the project – beneficiary contribution