3 Plenary - Procurement of Goods and Works by JTaylor 06Mar2014

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
http://www.adb.org/documents/events/2011/business-opportunities-fair/default.asp


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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.htm


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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
http://www.adb.org/http://www.adb.org/


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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


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


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



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B O S 2

6

Be aware of bid evaluation criteria

Be clear with alternatives



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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



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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



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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


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


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


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


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


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


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


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


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

3 Plenary - Procurement of Goods and Works by JTaylor 06Mar2014

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Transcript of 3 Plenary - Procurement of Goods and Works by JTaylor 06Mar2014