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ADB Business Opportunities Seminar Bidding on ADB Financed Projects Lisbon, Portugal 21 November, 2019

2016 2030

ASIA’S

INFRASTRUCTURE

NEEDS $26 TRILLION

TO 2030

Overview of ADB operations

21 November, 2019 ADB Business Opportunities Seminar

ADB 2018 OPERATIONS

Uncontracted

portfolio

$29.8 billion Public sector

(sovereign) project

approvals

$25.1 billion

Main instruments:

- Loans and grants

- Technical assistance

- Equity and guarantees

Delivered through:

- ADB’s own resources

(ordinary; concessional;

special funds)

- Cofinancing

Focused on: “Finance ++”

- Leveraging cofinance,

policy advice, knowledge,

provision, and capacity

development


Private sector

(nonsovereign)

commitments

$3.1 billion

Total 2018 ADB

operations

$35.82 billion


Active portfolio:

$99 billion and growing

62 69 71 78 87

7,5 7,8

9,2 10,8

12,4

2014 2015 2016 2017 2018

Sovereign Portfolio Nonsovereign Portfolio

Types of business opportunities

Goods and civil works (through EAs)

Consulting services (through ADB or EAs)

~4000

contracts in 2018

~$12.5 billion

contracted in

2018

~5000

contracts in 2018 ~$736 million

contracted in

2018



What do we work on?

(Share of project portfolio by sector, 2018)

Transport

36%

Energy

25%

Water and Other

Urban

Infrastructure and

Services

13%

[CATEGORY NAME]

[PERCENTAGE]

Education

7%

Finance

3%

Health

2%

[CATEGORY NAME]

[PERCENTAGE]

[CATEGORY NAME]

[PERCENTAGE]

[CATEGORY NAME]

<1%

[CATEGORY NAME]

<1%

ADB Business Opportunities Seminar


21 November, 2019

Why pursue ADB-Financed Contracts?

21 November, 2019 ADB Business Opportunities Seminar 7

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 processes mitigated through ADB oversight

Who is Engaged on ADB Financed Projects?

• Infrastructures Construction Companies

• General and Specialist Suppliers

• Consulting Firms

• Individual Consultants

• Non-Government Organizations / Civil Society Organizations

• Research Institutions

• Foundations, Centers of Excellence

• Professional Organizations

21 November, 2019 ADB Business Opportunities Seminar 8

ADB projects rely on Consultants and Contractors

Relationships

ADB Business Opportunities Seminar 9

• The Borrower (Executing Agency) is responsible for procurement of goods and works

• ADB (under TAs) or Borrower select and recruit Consultants

• ADB reviews the procurement activities of EAs to ensure that proceeds of its financing are used in accordance with the bank’s rules

ADB SUPPLIER

CONTRACTOR

CONSULTANT

EXECUTING AGENCY

Financing Agreement

Loan and Grant funded Bidding, Evaluation and

Contracts

No Contractual Relationship except for TA.

For loans, ADB may disburse payment directly

on behalf of EA

21 November, 2019

Business Opportunities – Goods & Works


Supply of Goods

Machinery

Equipment

Computers

Furniture etc.

Civil Works

Roads

Railways

Bridges

Irrigation Canals,

Schools, etc.

Turnkey Power Plants

Pump Stations

Water Treatment Plants

Solid Waste Treatment Plants

Airports, etc.

Loans and Grants for the 3-year period: 2016-2018

$100,000 < $1m

$1m < $20m

> $20m

Average number of contracts per year 1,967 959 147

Average Contract Size ($m) 0.28 3.69 29.03

Total Contracted value of Goods and Works in 2018 = $8.9bn

21 November, 2019

Business Opportunities - Consulting


For the 3-year Period: 2016-2018

Average No. of Contracts per Year

Average Total Value of Contracts Awarded

per Year ($m)

Average Contract Size ($m)

Firms Individuals Firms Individuals Firms Individuals

Technical Assistance 201 2,432 124.49 95.43 0.62 0.04

Staff Consultants 19 1,028 4.82 25.98 0. 24 0.03

Loans 477 369.04 0.77

Grant 404 99.55 0.25

Total Contracted in 2018 = $696m

Project Preparation Feasibility Studies, Preliminary Design, ADB Safeguard Policies, Capacity Building, Procurement

Project Implementation Surveys, Detailed Design, Construction Supervision, Project Management, Capacity Building, Procurement

Knowledge Products Studies, Capacity Building, Knowledge Sharing

Staff Consultants Administrative Assistance to ADB Operations

Types of Engagement

21 November, 2019

12

Country Year Type Project Name Firm Sector Amount (US$ M)

Azerbaijan 2016 Loan Water Supply & Sanitation

Investment Program Aguas De Portugal

Water & Urban

0.0750

Pakistan 2017 TA Hydropower Development

Investment Program Aqualogus - Engenharia E Ambiente, LDA Energy 0.9438

Nepal 2017 Grant South Asia Subregional Economic

Cooperations PWR System Expansion Project Gesto Energy Consulting (Gesto Energia S.A) Energy 4.6745

Portuguese Contractors Awarded ADB Contracts


ADB’s Policy for the Procurement of Goods, Works and Services

2017 Procurement Policy

2017 Procurement Regulations

ADB Business Opportunities Seminar 13 21 November, 2019

Drivers of ADB Procurement Reforms


Increased lending operations

Evolving needs of Developing Member Countries (DMCs)

Harmonization with other Development Partners

Need to improve delivery systems

21 November, 2019

Core Procurement Principles


Economy

Efficiency

Fairness

Transparency

Quality

Value for money

New

Existing

21 November, 2019

Procurement Framework


ADB Procurement Policy (Goods, Works, Nonconsulting and Consulting Services)

Procurement Regulations for ADB Borrowers (Goods, Works, Nonconsulting and Consulting Services)

Staff Instructions • Procurement; ADB Administered Consulting Services; EA Administered Consulting

Services

Standard Bidding Documents and User Guides

• 8 SBD and 9 User Guides

Guidance Notes

• 24 Guidance Notes

21 November, 2019

New Provisions/Flexibility in Bidding Documents


Abnormally Low Bids (ALB)

•Can Accept, Mitigate (increase performance security), Reject

•Due diligence required by Borrower (Identify, clarify, decide)

•ADB no objection always required before rejecting.

Standstill Period

•Used to allow unsuccessful bidders to challenge the intended award.

•10 days recommended

•Use is optional

Use of expertise of Parent Companies and other Affiliates

•Affiliate Company Guarantee allows bidders to use experience and resources of others to meet the qualification requirements on tenders

More Flexibility in Evaluation Criteria

•Evaluation criteria can now used a points system (weighted scoring), not limited to pass/fail

Historical Non-performance

•Non-performance in past contracts can now be a qualification criteria

21 November, 2019

Main Changes – Consulting Services


Shortlisting rules improved

• No longer a limit on the shortlist of 6 consultants

• No longer a requirement to select a maximum of 2 consultants per member country

• No longer requirement for consultant from a developing Member Country

Selection Method

• No value threshold related to use of either FTP, STP or BTP

• Based only on nature and complexity of assignment

Consultants Experts*

• For EA Administered Services, firm may propose team members that are not from ADB member countries

Evaluation

• Some limited minor clarification of bids is permitted

*Not applicable for Individual Consultant Selection (ICS) or ADB administered Consulting Services

21 November, 2019

Main Aspects of ADB Procurement Rules

The Basics


Tendering

International Best Practice Procedures • Advertisement of Opportunities

• Public Bid Opening

• Robust Bid Evaluations Procedures

• Publication of Results

• Process Oversight by ADB

• Debriefing and Complaints Mechanism

• Robust Fraud and Corruption Procedures


Procurement Methods – Goods & Works

OCB • Open Competitive Bidding

LCB • Limited Competitive Bidding

RFQ • Request for Quotations

FA • Framework Agreements

ERA • Electronic Reverse Auction

BFA • Borrower’s Force Account

DC • Direct Contracting


Procurement Methods Open Competitive Bidding (OCB)

• Preferred method of procurement on

projects financed by ADB

• Applies to Goods, Works, and Services

• Procedures depend on type of

procurement being undertaken

• May involve national or international

advertisement.


Other Procurement Methods Goods, Works and Non-Consulting Services

• Limited Competitive Bidding (LCB) ⁻ Direct Invitation without open advertisement ⁻ May be appropriate where when there are limited number of bidders, low value does not attract bidders

or other exceptional reasons that may justify a departure from OCB

• Framework Agreements (FA) ⁻ Framework established with one or multiple bidders from which orders may be placed over time ⁻ Framework establishes scope, positions and rates that will apply to the call-offs, quantum of effort

unknown

• Request for Quotations (RFQ) ⁻ Simplified method used for low-value procurement ⁻ Based on comparing quotations from several suppliers/service providers/contractors

• Electronic Reverse Auction (ERA) ⁻ Online event where prequalified bidders compete with the aim of providing the lowest price at bid closure.

• Direct Contracting (DC) ⁻ Contracting without competition; may be appropriate under special circumstances

• Force Account (FA) ⁻ Borrower undertakes an activity using its own workforce and equipment


Procedural Options

• Single Stage, One Envelope (1S1E) • Technical (TECH) and Financial (FIN) offer submitted together in single envelope

• Single Stage, Two Envelope (1S2E) • TECH & FIN submitted in separate envelopes and evaluated separately.

• Avoid price consideration from influencing technical evaluation

• Two Stage, (2S) • For larger, more complex contracts, only TECH offer in first stage

• Some adjustment of technical specification may occur after first stage

• Revised TECH & FIN offer in single envelope at second stage

• Two Stage, Two Envelope (2S2E) • As for two stage, but FIN offer submitted in separate envelope at first stage and

supplemented, if needed, at second stage.


Procurement Methods – Consulting Services

QCBS • Quality & Cost Based Selection

QBS • Quality Based Selection

CQS • Consultants Qualifications Selection

FBS • Fixed Budget Selection

LCS • Least Cost Selection

DC • Direct Contracting


Procurement methods – Consulting Services

• Quality and Cost-Based Selection (QCBS) • Preferred Method

• Follows a One Stage, Two Envelope approach

• Weighted Scoring system Tech:Fin (70:30; 80:20; 90:10)

• Technical score of 750/1000pts needed to progress to Financial evaluation

• General • All International firm and Individual Consulting Services opportunities advertised

on CMS

• Contracts: Time-Based or Lump Sum

• A Full, Simplified or Bio-data proposal may be requested

• ToR’s may be Input (conformance) or Output (performance) based


Other Procurement Methods Consulting Services

• Quality Based Selection (QBS) ⁻ Evaluation undertaken only on the technical proposal of the bidder

⁻ Used where quality is of overriding importance, for complex/highly specialized projects, instances where

comparison of financial proposals is difficult as services could be provided in different ways

• Consultants Qualifications Selection (CQS) ⁻ Used where quality is important for small assignments

⁻ Selection based on Consultants qualifications

⁻ Expression of Interest Proposals ranked and first placed candidate invited to submit an offer.

• Fixed Budget Selection (FBS) ⁻ Used where budget is fixed and cannot be exceeded

⁻ Appropriate when ToR is precise and inputs can be accurately assessed

• Least Cost Selection (LCS) ⁻ Used for small assignments of standard nature.

⁻ Lowest bidder providing a technically acceptable proposal.

• Direct Contracting (DC) ⁻ Contracting without competition; may be appropriate under special circumstances


User Guides & Standard Bidding Documents

• Goods

• Works

• Works (Small Contracts)

• Plant - Design, Supply & Installation

• DBO Contracts for Water & Wastewater Greenfield Infrastructure Projects

• Information Technology Products and Services

• Selection of Consulting Services for Borrowers

• Prequalification of Bidders

• Guide on Bid Evaluation


Procurement of Works via OCB Standard Bidding Documents (SBD)*


Part I: Bidding Procedures

• Section 1: Instructions to Bidders (ITB)

• Section 2: Bid Data Sheet (BDS)

• Section 3: Evaluation & Qualification Criteria (EQC)

• Section 4: Bidding Forms (BDF)

• Section 5: Eligible Countries (ELC)

Part II: Requirements

• Section 6: Employer’s Requirements (ERQ)

Part III: Conditions of

Contract & Contract Forms

• Section 7: General Conditions of Contract (GCC)

• Section 8: Particular Conditions of Contract (PCC)

• Section 9: Contract Forms (COF)

*An invitation for Bids accompanies the package, but does not form part of the bid documents.

21 November, 2019

SBD (RFP) for Selection of Consultants by ADB


Describes firms invited, contents of RFP package and associated Information Section 1: Letter of

Invitation

Definitions or terms contained in the remainder of the RFP documents Section 2: Definitions

Specifies the rules to be followed by firms in the preparation and submission of Proposals. It also contains details on submission, opening, evaluation and award.

Section 3: Instructions to Consultants

Specific tendering conditions that may augment or supplement the contents of Section 3 Section 4: Data Sheet

The evaluation criteria applicable for the assignment Section 5: Evaluation

Criteria

The forms (including related instructions) to be completed and submitted by the firm Section 6: Standard Forms for Proposal Submission

The Terms of Reference for the assignment Section 7: Terms of

Reference

The Standard Form of Contract to be used for the assignment Section 8: Standard Form

of Contract

List of ADB member Countries Section 9: List of ADB

Member Countries

21 November, 2019

SBD (RFP) for Selection of Consultants by a Borrower


A template of a letter from the Client addressed to a shortlisted firm inviting it to submit a proposal for a consulting assignment

Section 1: Letter of Invitation

Consists of two parts: “Instructions to Consultants” and “Data Sheet”. “Instructions to Consultants” contains provisions to be used without modification. “Data Sheet” contains information specific to the RFP that may augment or supplement the information in the Instructions to Consultants

Section 2: Instructions to Consultants incl. Data Sheet

Contains the technical proposal forms to be submitted by the firm

Section 3: Technical Proposal – Standard Forms

Contains the financial proposal forms to be submitted by the firm

Section 4: Financial Proposal – Standard Forms

Contains Information regarding eligible countries for the provision of the Services Section 5: Eligible Countries

ADB’s policy in regard to corrupt and fraudulent practices, and the conduct of all parties involved in the selection process and the execution of the contract.

Section 6: Anticorruption Policy; Standards of Conduct

The Terms of Reference for the assignment

Section 7: Terms of Reference

The Standard Form of Contract to be used for the assignment (Time-based or Lump sum). Includes general conditions and contract specific special conditions

Section 8: Conditions of Contract and Contract Forms

21 November, 2019

Finding Information on ADB Funded Projects

Guidance and Insights


Identifying Opportunities for Goods & Works

• ADB and CMS Websites as a source of Information

• Country Partnership Strategy / Country Operations Business Plan

• Project Procurement Plans

• Advance and Specific Procurement notices • Invitation for Prequalification

• Invitation for Bids

• Hop-on Opportunities • Prequalified Contractors

• Contracts Awarded


Up Stream

Immediate opportunities

21 November, 2019

Subscribe to receive alerts* - https://alerts.adb.org


Does not include Consulting services Alerts which are received through http://cms.adb.org

21 November, 2019

https://alerts.adb.org/

http://cms.adb.org/

Consultant Management System (CMS) website


• Consulting opportunities are also visible through ADB’s Consultant Management System (CMS) (http://cms.adb.org)

• Firms need to register for alerts to receive notices of all consulting opportunities

• All advertisement of Consulting opportunities (both EA and ADB) are through CMS.

• The RFP process for ADB Administered Contracts is through CMS*

*EA’s use their own country systems when tendering for Consulting services; still need to meet ADB requirements

21 November, 2019

http://cms.adb.org/

Country Partnership Strategy (CPS) and Country Operations Business Plans (COBP)

• www.adb.org

• The CPS normally covers a five-year period and details ADBs strategy for engagement with the Borrower.

• The three-year COBP details the projects that are planned to be implemented to operationalize the CPS.


http://www.adb.org/

Country Partnership Strategy


Figure: Summary of ADB Philippines Country Partnership Strategy, 2018–2023

DRM = disaster risk management, LGU = local government unit, PPP = public-private partnership,

TVET = technical and vocational education and training.

Source: ADB staff.

21 November, 2019

Country operations business plans


The Procurement Plan

• Lists all foreseen procurement on a project.

• Published once the project is approved

• Updated during project

• Goods, Works and Services

• Includes salient points regarding tenders

• May also be included in Project/Program Administration Manual


Understanding the Procurement Plan (Consulting)


Procurement Modality (QBS, CQS etc.)

When ADB will review the Package

Proposal Type (FTP, STP, BTP)

When it is expected the package will be advertised

Early tender release (before project approval)

International or National Advertising

Firm or Individual Procurement

21 November, 2019

Advance Notice (G&W)


• Used where there is advance action under a loan or grant (i.e. some initial procurement stages occur prior to the approval of a loan or grant).

21 November, 2019

Specific Procurement Notice (G&W)


• Issued at the time of the release of an Invitation for Prequalification or an Invitation to Bid.

• Advertisement will depend on the type of procurement.

• Internationally advertised contracts with estimates >$1m will be posted on www.adb.org

21 November, 2019

http://www.adb.org/

Consulting Services Recruitment Notices on CMS


Hop-on Opportunities – Contracts Awarded


Hop-on Opportunities – Prequalified Contractors


Advice on Preparation of Bids & Proposals

Goods and Works

Consulting Services


Collect relevant business intelligence?

Identify Sectors of Interest and where maximum potential for success is likely

Understand the operating context in various countries and regions

Know your competition

Look at past similar projects

Study CPS and COBP to identify future opportunities

Review procurement plans (and project documents)

Check ADB website for opportunities. Register for alerts*


*Alerts for consulting opportunities are available only at http://cms.adb.org

21 November, 2019

http://cms.adb.org/

Build your brand name

Visit ADB Headquarters/Resident missions Visit departments responsible for projects

Business Opportunities Fairs

Business Opportunities Seminars

Visit government executing agencies

Register in ADB Consultant Management System (CMS)

Build your portfolio of projects

Target different opportunities (standalone, associate/JV or Individual Consultant).


Find Advertised Opportunities Goods, Works and Non-consulting Services – EA Administered

• International Advertisement

• On www.adb.org for contracts >$1m

• On a freely and publicly accessible website in English; and in a newspaper of national

circulation (in English if available) or website in borrowers' country.

• National Advertisement: In a newspaper of national circulation or website

For Consulting Services – EA Administered

• Where international advertising: on http://cms.adb.org

• Where national advertising: in national press, or free & publicly accessible website.

All ADB administered contracts advertised on http://cms.adb.org


http://www.adb.org/

http://cms.adb.org/

http://cms.adb.org/

Identify Successful firms in Area of Interest • http://cms.adb.org

• Identify Awarded Contracts by country, sector, value and selection method.

• Investigate possibility to partner either as part of JV or by association.


http://cms.adb.org/

Offer partnerships to shortlisted firms • http://cms.adb.org

• It is possible to identify shortlisted firms and propose to associate with them.


http://cms.adb.org/

Express Interest - Consulting


Considerations Eligibility Go it alone or associate/joint

venture Capacity to compete Capacity to deliver

Relevant Technical Experience

Geographical Experience

Value-addition

21 November, 2019

Understand the project

Recognize the broader project objectives

Establish the operating context and any constraints it presents

Get to know the Executing Agency

Obtain all available information on the services to be provided

Field assessment

Identify local partner(s), if required

Estimate the local costs of doing business (e.g. local taxes for EA administered consulting services)


Prepare a strong proposal

Follow the instructions in the RFP/bidding documents

Review the mandatory qualification criteria

Understand the basis on which the bid will be evaluated

Study the Terms of Reference (TOR)/Employer’s requirements

Associate or JV with other firms to meet requirements

Provide tailored submission; avoid generic templates (quality, not quantity)

Do not add conditions to your offer

Ask Questions; contact ADB if not receiving a response

56 21 November, 2019 ADB Business Opportunities Seminar

Common Mistakes - Consulting

Firm or associates/experts not from ADB member countries*

Proposal received late: insufficient time afforded to enter a proposal into CMS

Non-compliant proposal (e.g. number of person-months or inclusion of non-nationals for

national expert positions)

Failure to respond to Client requirements

Failure to disclose conflicts of interest, e.g. employees from an EA in a proposal

Exceeding budget where RFP indicated a Maximum Budget amount

Inclusion of conditions in proposal


*2017 Procurement Policy: Firms engaged on Borrower Administered Consultancy services may use team members from non-ADB member countries

21 November, 2019

Common Mistakes – Goods and Works

Bids not signed

No Bid Security or Bid Securing Declaration (if required)

Insufficient Amount of Bid Security, incorrect validity period

Lack of Supporting Documents

Incomplete Bids / Partial Bids

Absence of test reports if required

Conflicts of interest not disclosed

Inclusion of financial offer with technical offer where bid conditions require them

to be separated


Failure to provide a Signed letter of Bid, a correct Bid Validity Period and the required Bid Security or Bid Securing Declaration and Priced BOQs are grounds for immediate disqualification of the Bid. Minor omissions to the documents required by the Bidding Documents may be clarified. Multiple minor omissions may add up to a major omission and if clarified would give the Bidder an unfair advantage

21 November, 2019

Post Award Focus on delivery of strong performance through: High Quality Team Building strong relationships with

Client (ADB or Government)

Achievement of deliverables within stated timeline


This Photo by Unknown Author is licensed under CC BY-NC-ND

Performance Assessment - Consulting ADB conducts Performance Evaluation

Reviews (PER) for each consulting assignment. A poor performance record can impact future opportunities.

This Photo by Unknown Author is licensed under CC BY-SA-NC

21 November, 2019

https://people-equation.com/making-most-of-leadership-assessments/outstanding-evaluation/

https://creativecommons.org/licenses/by-nc-nd/3.0/





http://shims7.tistory.com/41

https://creativecommons.org/licenses/by-nc-sa/3.0/





Debriefing and Complaints

Debriefing: • Unsuccessful bidders may request debriefing from

Executing Agency (EA). If they are not satisfied, they may contact ADB directly.

Complaints: • Bidders may file complaint directly with ADB and may copy

ADB on correspondence with Executing Agencies (EAs). www.adb.org/forms/complaints

Anticorruption and Integrity: • www.adb.org/site/integrity/main


This Photo by Unknown Author is licensed under CC BY-SA

https://www.adb.org/news/adb-steps-anticorruption-efforts-enhance-asias-development

https://www.debriefnow.com/images/DebriefNow_cg_men_intersection.jpg

21 November, 2019

http://www.adb.org/forms/complaints

http://www.adb.org/site/integrity/main

https://slidewiki.org/deck/86957-1/slide/490902-1/490902-1:9/view

https://creativecommons.org/licenses/by-sa/3.0/
















ADB Business Opportunities Fair (BOF)

2020 Event

• Meet with ADB staff in procurement, project management, and related operations.

• Meet with ADB sector specialists.

• Network with other consulting firms and suppliers from donor and developing member countries.

• Hear presentations on how to qualify for ADB-financed contracts.

• Discover what business opportunities are available, and where.

*Attendance is free


BOF 2019 – Attendance Statistics

• Over 1,000 attendees in 2019 • In last 5 years, attendance has increased, on average, by 15% per year


Useful Links

• ADB Procurement Policy: https://www.adb.org/documents/adb-procurement-policy

• ADB procurement Regulations: https://www.adb.org/documents/procurement-regulations-adb-borrowers

• Guidance Notes: https://www.adb.org/documents/guidance-notes-on-procurement

• Standard Bidding Documents and User Guides: https://www.adb.org/business/main (Scroll to Documents and Forms)

• ADB Consultant management system: http://cms.adb.org

• ADB Anticorruption and Integrity: www.adb.org/site/integrity/main


https://www.adb.org/documents/adb-procurement-policy





https://www.adb.org/documents/procurement-regulations-adb-borrowers







https://www.adb.org/documents/guidance-notes-on-procurement







https://www.adb.org/business/main

http://cms.adb.org/

http://www.adb.org/site/integrity/main

Please give us your feedback! https://www.surveymonkey.com/r/BXBN8VK


https://www.surveymonkey.com/r/BXBN8VK

www.adb.org

For further information please contact

Lila D. Mallory, Senior Procurement Specialist

at [email protected]

THANK YOU!

mailto:[email protected]

ADB Business Opportunities Seminarportugalglobal.pt/.../Documents/DOCs2019/19-dia-das...ADB...

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