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Business Opportunities Seminar Procurement of Goods and Works United States (August 2014). Presented By: Amr J. Qari Senior Procurement Specialist. Asian Development Bank. Agenda. ADB Business Opportunities ADB’s Procurement Policy Framework Bidding Dos and Don’ts Q&A.

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Presentation Transcript
Business Opportunities Seminar

Procurement of Goods and Works

United States

(August 2014)

Presented By:

Amr J. Qari

Senior Procurement Specialist

Asian Development Bank

  • ADB Business Opportunities
  • ADB’s Procurement Policy Framework
  • Bidding Dos and Don’ts
  • Q&A
why pursue adb financed goods and works contracts
Why pursue ADB financed goods and works contracts?
  • Significant expenditure on goods and works (approximately $6Bn in 2013)
  • Gateway to new opportunities in fast growing emerging economies across multiple sectors
  • Availability of funds is assured
  • Internationally accepted procurement procedures
  • Risks related to transparency, fairness and integrity of procurement activities mitigated through ADB oversight
  • Support a worthy development mission
identifying opportunities for goods and works
Identifying Opportunities for Goods and Works
  • Country Strategy and Business Plans
  • Early notices
    • General Procurement Notice
    • Procurement Plan
  • Specific Procurement notices
    • Invitation for Prequalification
    • Invitation for Bids
  • Hop-on Opportunities
    • Prequalified Contractors
    • Contracts Awarded
Geographies to Consider for New

Business Development

  • Solomon Islands
  • Papua New Guinea
  • Timor-Leste and other Pacific States
  • Afghanistan
  • Cambodia
  • Pakistan
documents governing procurement
Documents Governing Procurement
  • Loan Agreement (Schedule 4)
  • Procurement Guidelines
  • Standard Bidding Documents
procurement guidelines purpose
Procurement GuidelinesPurpose



  • To inform Borrowers as well as Suppliers, Manufacturers and Contractors of the general principles and procedures to be observed in carrying out procurement under ADB finance
  • Additional arrangements may be set out in the Loan Agreement
procurement guidelines responsibilities
Procurement GuidelinesResponsibilities
  • The Borrower (Executing Agency) is responsible for all procurement activities
  • ADB has the obligation ensure compliance with key principles
  • Goods/Woks from ADB member countries
  • Economy and Efficiency
  • Fairness
  • Transparency
  • Promotion of Domestic Industries
procurement guidelines applicability
Procurement GuidelinesApplicability

Contracts financed by ADB entirely or partly

  • Guidelines must be followed

Contracts not financed by ADB but part of Project

  • Borrower may adopt its own procurement procedures.
  • Works/goods to be procured must be . . .

. . . of satisfactory and compatible quality

. . . completed and/or delivered in timely fashion

. . . priced not to affect adversely viability of project

procurement guidelines eligibility
Procurement GuidelinesEligibility

Limitation for Participation

  • Ideally only by bidders' capability to fulfill the contract


  • Compliance with UN Security Council decision
  • Conflict of interest(i.e., party has interests that could improperly influence that party’s performance of official duties or responsibilities, contractual obligations, or compliance with law)
  • Government owned enterprises (unless they are legally and financially autonomous, operate under principles of commercial law and not dependent on executing agency)
  • Declaration of ineligibility by ADB
procurement guidelines misprocurement
Procurement GuidelinesMisprocurement

If Procurement is not carried out as agreed

ADB will

. . . declare misprocurement

. . . cancel corresponding portion of financing

. . . exercise other remedies

If appropriate, ADB may permit rebidding

procurement guidelines fraud and corruption
Procurement GuidelinesFraud and Corruption

Corrupt Practice

the offering, giving, receiving, or soliciting, directly or indirectly, anything of value to influence improperly the actions of another party (e.g. bribery, kickbacks, extortion, bid manipulation)

Fraudulent Practice

action or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an obligation (e.g., false bid security/bank guarantees, work certificates, financial statements)

Collusive Practice

an arrangement between two or more parties designed to achieve an improper purpose, including influencing improperly the actions of another party (e.g. leaking of bid information, rigged specifications)

Coercive Practice

impairing or harming, or threatening to impair or harm, directly or indirectly, any party or its property to influence improperly the actions of a party

procurement guidelines fraud and corruption1
Procurement GuidelinesFraud and Corruption

ADB’s Anticorruption Policy requires all parties to observe the highest standard of ethics during the procurement and execution of such contracts. In pursuance of this policy, ADB will

  • Reject a proposal to award contract if it determines that bidder recommended for award has engaged in a prohibited practice
  • Cancel the corresponding portion of a loan if it determines that representatives of Borrower have engaged in prohibited practices during procurement or execution of contract
  • Declare a firm ineligible either indefinitely or for a stated period of time
  • Inspect accounts and records of suppliers and contractors and have them audited by auditors appointed by the Bank
how to report integrity violations
How to Report Integrity Violations

procurement guidelines forms of procurement
Procurement GuidelinesForms of Procurement
  • International Competitive Bidding
  • Limited International Bidding
  • National Competitive Bidding
  • Shopping
  • Direct Contracting
  • Force Account
  • Procurement from Specialized Agencies
  • Procurement Agents
  • Inspection Agents
  • Procurement in Loans to Financial Intermediaries
  • Procurement under BOO / BOT / BOOT, Concessions and Similar Private Sector Arrangements
  • Performance Based Procurement
  • Procurement under Loans Guaranteed by ADB
  • Community Participation in Procurement
  • Procurement under Disaster and Emergency Assistance
procurement guidelines international competitive bidding
Procurement GuidelinesInternational Competitive Bidding

ICB is the default procurement method

  • Fairness, Transparency

For prospective bidders from eligible source countries, adequate, fair and equal opportunities

  • Threshold Contract Values (US $)

Goods - $500,000 to $1,000,000

Works - $1,000,000 to $10,000,000

  • Value for Money

For Borrower, wide range of choices in bid selection from among competing suppliers / contractors

procurement guidelines icb bidding procedures
Procurement GuidelinesICB Bidding Procedures

Two Stage

Single-Stage: One-Envelope

Single-Stage: Two-Envelope

Two-Stage: Two-Envelope

typical time line for icb activities
Typical Time Line For ICB Activities

Bid Packaging

Preparation of PQ Document


Preparation of Bidding Document




procurement guidelines adb prior review
Procurement Guidelines ADB Prior Review
  • Contracts (Goods, Works, Services)
  • Procurement Mode
  • Procurement Timing
  • ADB review (post/prior)

Procurement Plan

  • Advertisement and Invitation to Prequalify
  • Evaluation Criteria
  • Evaluation of Applications


  • Invitation to Bid
  • Advertisement
  • Bid Documents

Preparation of Bid Documents


  • Evaluation Report
  • Proposal of Award

Bid Evaluation

  • Certified Contract

Award of Contract

Procurement Guidelines

Bidder Debriefing and Complaints


  • Bidders may request an explanation from the EA as to why their bids were not selected
  • The EA shall promptly provide an explanation in writing or in a meeting
  • If bidders are not satisfied with the explanation given, they may request a meeting with ADB


  • Bidders may file complaint directly with ADB
  • Bidders may copy ADB on correspondence with EA
Bidding Dos
  • Carefully review qualification and evaluation criteria

Failure to satisfy qualification criteria results in high bid rejection rate

  • No conditionalities

Do not add any conditions. Conditionalities or qualifications will lead to rejection

  • Get official clarification

If any provisions of the bidding document are unclear or unacceptable, submit an official inquiry in writing to the EA before the bid closing date or such date as may be specified.

Bidding Dos
  • Be on time

Submit bid within the stipulated deadline. Late bids will not be accepted.

  • During bid opening ensure
    • All relevant prices are read out
    • All discounts are read out
    • Presence and amount of bid security is read out
    • No envelope remains unopened
    • All the above is recorded correctly
    • The record is signed by all bidders present and by the buyer
  • Be Aware of Possible Extension

There may be a request to extend the bid validity and bid security periods by several months, as in certain cases the evaluation of bids requires more time than originally expected.

Bidding Dos

Make final check of bid

  • Amount, validity and text of Bid Security
  • Signatures and power of attorney
  • Joint venture agreement enclosed
  • References enclosed
  • Discounts in covering letter or appropriate place as specified in the bidding document
  • Marking of envelopes as appropriate
Bidding Don’ts
  • No Bid Security
  • Insufficient Amount of Bid Security
  • Lack of Supporting Documents
  • Incomplete Bids
  • Expiration and Extension of Bid Validity
  • Partial Quantities
  • Absence of test reports if required
  • Bids not signed
  • Conflict of interest