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8/12/2019 3 Plenary - Procurement of Goods and Works by JTaylor 06Mar2014
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B O S 1
Procurement ofGoods and Works
Asian Development BankBusiness Opportunities Fair 2014
Presented byJeff Taylor, Senior Procurement Specialist Asian Development Bank
12 March 2014, Manila
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B O S 2
Business OpportunitiesFinding the Contract www.adb.og
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B O S 3
Read UN Development Business (UNDB on
Check Opportunities www.adb.org
Get to know the ADB.
Study the Country
Business OpportunitiesFinding the Contract
PLE SE
http://c/Documents%20and%20Settings/EEA/Documents%20and%20Settings/brz/My%20Documents/ADB/BOS/BOS%20EUR%202005/Web%20Demo/ADB%20Home.htmhttp://c/Documents%20and%20Settings/EEA/Documents%20and%20Settings/brz/My%20Documents/ADB/BOS/BOS%20EUR%202005/Web%20Demo/ADB%20Home.htm8/12/2019 3 Plenary - Procurement of Goods and Works by JTaylor 06Mar2014
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B O S 4
Executing AgencyEnglish Language Newspaper of general distribu
in Borrowers country or well-known websiteTrade Journals (optional)
ADB ADB Business Opportunities at ( www.adb.org)UN Development Business
Business OpportunitiesAdvertising and Notices
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B O S 5
Business Opportunities
ADBs Procurement System
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B O S 6
ADBBoard Policy
CommercialPractices
OtherMDBs
ADBExperience
ADBCharter
Procurement SystemSources
ProcurementGuidelines
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B O S 7
Responsibility for Procurement Actions
The Borrower (Executing Agency) is responsibfor all procurement activities
ADB will review the procurement activities toensure that the ADBs Procurement Guidelinesare followed
Procurement SystemResponsibilities
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B O S 8
Procurement SystemEligibility
Eligibility by Nationality Goods must be produced in a member country
Supplier must be a national of a member coun
Other Eligibility Factors No conflicts of interest Not sanctioned State-owned enterprises
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B O S 9
Economy and Efficiency
Fairness
Transparency
Procurement SystemBasics
Development of Domestic Industry.
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B O S 1
0
Procurement SystemSource of Funds
Contracts not financed by ADB Borrowers procurement procedures apply
Must be suitable for the projectContracts financed by ADB entirely or par
ADB System must be followed
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B O S 1 1
Business Opportunities
Anti-corruption
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B O S 1 2
Procurement BasicsAnticorruption Policy - Definitions
Corrupt Practice
Fraudulent Practice Collusive Practice
Coercive Practices
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B O S 1
3
When corruption occurs ADB willreject a proposal to award contract
cancel the portion of a loandeclare a firm ineligible either indefinitely or forstated period of time
inspect accounts and records of suppliers andcontractors and have them audited by auditorsappointed by ADB
Procurement BasicsAnticorruption Policy - ADB Action
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B O S 1 4
Business Opportunities
Procurement Methods
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B O S 1
5
Procurement Methods International Competitive Bidding Limited International Bidding National Competitive Bidding Shopping Direct Contracting (Single Source) Force Account
Performance-based procurement Procurement under Loans to Financial Intermediaries Procurement under Private Sector Loans Procurement under Disaster and Emergency Assistance
Community Participation in Procurement.
Procurement MethodsOverview
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B O S 1
6
Must be used for contracts valued at US$0.5 millor more for Goods, above US$1.0 million for wor
Provides for borrowers a wide range of choices inselection from among competing suppliers /contractors
Gives prospective bidders from eligible sourcecountries adequate, fair and equal opportunities
Procurement MethodsInternational Competitive Bidding IC
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B O S 1 7
Advertisement Prequalification Reference to ADB Language
Bid Security Source of Procurement
Currency of Bid
Currency of Bid Compariso Currency of Payment
Domestic Preference Schem Public Bid Opening
Clarification and Alteration Award of Contract
Rejection and Retendering
Performance Security
Essentials of ICB
Bid Preparation Period
Procurement MethodsInternational Competitive Bidding
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B O S 1
8
Two StageTwo-Stage: Two-Envelope
Single-Stage: Two-Envelope
Single-Stage: One-Envelope
Bidding ProceduresOverview
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B O S 1 9
Procurement Plan List of goods to be procured Proposed grouping of goods into contracts Proposed number and scope of civil works contr
Prequalification
Invitation to Prequalify Prequalification Document Evaluation of Applications
Preparation ofBidding Documents
Invitation to Bid Bidding Documents
Bid Evaluation Evaluation Report Proposal of Award
Award of Contract
Contract as executed
ADB ReviewReview of Procurement Actions
EA
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B O S 2
0
Award of contracts for values of $10.0mill. and abovemust be approved by the ADB
Procurement Committee Chairman : Director General, OSFMDMembers : Assistant General Counsel
Director, Sector DivisionSecretary : Principal Procurement Specialist
(Non-Voting)
ADB ReviewProcurement Committee
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B O S 2 1
Matters for ConsiderationFor contracts estimated at $10.0 million or more
Prequalification EvaluationTechnical Evaluation (2-stage/2-envelope bidding)Bid Evaluation AwardProposal for Rebidding
Proposal for Cancellation Actions in conflict with the ADB requirementsProposal to vary previous PC decisions Any matters designated by Management.
ADB ReviewProcurement Committee
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B O S 2 2
Preparation of Bids
Bid Opening
Bid Evaluation
Award of Contract
Prequalification
Procurement Sequence
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B O S 2
3
JV Requirements All partners must be eligibleJ.V. agreement must contain provision for joint anseveral liabilityOne of the partners must be authorized to be incharge
Joint Ventures
P i f Bid
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B O S 2 4
Preparation of BidsImportant Factors
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B O S 2
5
Be compliant
No conditionalities
Get official clarification
Preparation of BidsImportant Factors
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B O S 2
6
Be aware of bid evaluation criteria
Be clear with alternatives
Preparation of BidsImportant Factors
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B O S 2 7
Ensure bid is complete
Make final check of bid Amount, validity and text of Bid SecuritySignatures and power of attorneyJoint venture agreement enclosedReferences enclosedDiscounts in covering letter or appropraiate place asspecified in the bidding documentMarking of envelopes
Preparation of BidsImportant Factors
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B O S 2
8
Be on time
During opening ensure All relevant prices are read out All discounts are read outPresence and amount of bid security is read outNo envelope remains unopened
All the above is recorded correctlyThe record is signed by all bidders present and by the buyer
Be Aware of Possible Extension
Preparation of BidsImportant Factors
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B O S 2 9
Business Opportunities Seminar
How Your Bid is Evaluated
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B O S 3 0
Bid EvaluationPurpose
Determine the lowest evaluated and substantially responsive bid
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B O S 3 1
Complete Basic Data Sheet
Attach Record of Bid Opening
Prepare Table of Bid PricesExamine Bids for Responsiveness
Identify Bids for Detailed Evaluation
Evaluate Bids in Detail Adjust Bid Prices
Apply Other Adjustments
Bid EvaluationTypical Sequence
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B O S 3 2
Bid EvaluationBasics
Confidentiality After opening of bids no information to be exchanged with non-authorized persons on
Substance of bid Preliminary examination results and status Evaluation results and status Recommendation of award
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B O S 3 3
Bid EvaluationBasics
Clarification and lteration of BidsOnly clarifications not changing the substance or the price of thebid may be requested or accepted by the Borrower
rithmetical ErrorsNot a cause for bid rejectionDiscrepancy between Unit Price and Total Price
Unit Price will prevail
Discrepancy between Total Bid Amount and Sum of Total Pri Total Prices will prevail
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B
O S 3 4
Bid EvaluationBasics
Compliance with Bid DocumentsBids will be rejected if they
Do not substantially conform to Specifications
Contain inadmissible reservations to bid documents Do not substantially respond to requirements
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B
O S 3 5
Bid EvaluationBasics
Extension of Bid ValidityExceptional occurrence All bidders given the optionBidders willing to extend bid validity
cannot modify substance of bidmust extend validity of bid security
Negotiation with BidderNo negotiation to obtain more suitable offer, except if
Only one BidderOnly conforming Bid price is disproportionately high
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B
O S 3 6
Bid EvaluationBasics
Duties and Taxes(Base Price for Comparison)For Imported Goods
Includes cost of insurance and freight (CIF or CIP)Excludes custom duties or other taxes levied on goods
For Locally Supplied GoodsIncludes ex-factory price (EXW)Excludes any sales or similar taxes levied on finished goods
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B
O S 3 7
Bid EvaluationBasics
Exchange Rates
Bid comparison uses single currency as specified in bid documen(usually local currency or US$)
Bids may be quoted in currency of bidders choice, usually homecurrency, purchasers currency, and internationally traded currency,
or mix of all three (maximum of three currencies)
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B
O S 3 8
Bid EvaluationBasics
Other Factors Considered in Evaluation Efficiency and Reliability of Equipment Method of Construction Time for Completion Delivery Time Availability of After-Sales-Service Availability of Spare Parts Operating Cost
id l i
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B
O S 3 9
PurposeTo provide margin of preference to domesticallymanufactured goods or domestic contractors for
ADB-financed projectsTo allow domestic firms to compete with foreign firmon more equal footing
ConditionsGranting of preference subject to conditions Applies only to ICBNeeds to be applied for by Borrower
To be specified in Loan Agreement if scheme is appl
Bid EvaluationDomestic Preference
Bid E l i
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B
O S 4
0
Responsive bids are to be classified into three
categories:Category I: Goods manufactured locally with m
than 30% domestic value added
Category II: Goods manufactured locally with lethan 30% domestic value addedCategory III: Imported goods
Bid EvaluationDomestic Preference
Supply Contracts
Bid E l i
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B
O S 4 1
Responsive bids are to be classified into two
categories Category IBids offered by Domestic Contractors and Joint Ventur
eligible for the PreferenceCategory IIBids offered by other Contractors
Civil Works
Bid EvaluationDomestic Preference
B i O t iti S i
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B
O S 4 2
Business Opportunities Seminar
Getting Paid
Di b
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B O S 4
3
Direct Payment Procedure
Reimbursement Procedure
Commitment Procedure
Imprest Fund Procedure
DisbursementProcedures
Di b
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B O
1 - Application for LC
1
Suppliers Bank
Executing Agency
Borrowers Bank
2
2 - LC Opened3
3 - Application for CL
44 - CL Approval
5
DisbursementCommitment Procedure