Generic Documents for the Design, Build, Operate

Contract for a Solid Waste Facility

Agenda

1. Overview

2. Review of Documents– Pre-Qualification Documents– Bidding Documents– DBO Contract

Overview

Procurement Documents

• Pre-Qualification Documents

• Bidding Documents– Annex A

• Bid Form• Bidder’s Price Form and Price Schedules• Bid Security Form• Performance Security Form• Bank Guarantee Form – Advance Payment• Format of Curriculum Vitae• Form for Clarification Questions

– Annex B: Draft Contract

Overview

Contract Documents

• Form of Contract• General Conditions to the Contract• Appendices to the General Conditions:

1. Special Conditions of Contract2. Terms and Procedures of Payment 3. Technical Specifications consisting of,

Appendix “3A” – Design-Build Services Appendix “3B” – Operations Services Appendix “3C” – Technical Standards

Overview

Contract Documents (continued)

4. Site Appendix 5. Service Area Appendix6. Liquidated Damages Appendix7. Operator’s Expertise Appendix8. Operator’s Bid

Pre-Qualification Documents

Sources

• SDB Works – Prequalification

• as amended for management contracts, leases etc.

• similar changes as those made in management contracts, leases etc.

• GITA and PITA approach used

Pre-Qualification Documents

Pre-Qualification Documents Review

Pre-Qualification Documents

Key Issues

• evaluation of applications based on solid waste facility design, build and operations experience, financial position, personnel capabilities and litigation history

• subcontractors experience may be considered

Pre-Qualification Documents

Pre-Qualification Criteria

• Applicants must demonstrate general experience designing, building, operating and maintaining a solid waste facility

– for a certain length of time– with a minimum average annual turnover

• Applicants must demonstrate experience in a certain number and type of solid waste disposal projects or assignments

Pre-Qualification Documents

Pre-Qualification Criteria (continued)

• Applicants must demonstrate financial strength requirements

– adequate cash flow for the contract– adequate cash flow for works in progress and

future contract commitments

• Applicants must provide information with respect to – management structure– candidates for key positions

Pre-Qualification Documents

Pre-Qualification Criteria (continued)

• Applicants must provide information about legal matters, including:

– litigation or arbitration in the past 5 years– labour relations issues– criminal or environmental prosecutions

Bidding Documents

Bidding Documents Review

Bidding Documents

Key Issues - Bids

• Bidders submit Technical Section consisting of – Design-Build Workplan – Operations Workplan– Staffing Plan

• Bidders submit Financial Section consisting of Price Schedules

• Technical and Financial Sections submitted in same envelope

Bidding Documents

Key Issues - Bid Evaluation

• preliminary examination of bids

• technical aspects of each Bid evaluated with respect to the following factors:

– the Design-Build Workplan– the Operations Workplan– the Staffing Plan

• price evaluation to ensure substantial responsiveness

Bidding Documents

Key Issues - Award

• award is to the Bidder whose Bid has been determined to be substantially responsive and has the lowest evaluated Bid Price

Design, Build, Operate Contract

Sources

• FIDIC

• existing standard World Bank bidding documents

• existing management and operating contracts

Design, Build, Operate Contract

General Conditions – Key Issues

• Contract Term, Timing and Completion

• Obligations of the Operator and the Owner (quality, governing law, site access etc.)

• Contract Price and Payment (incentives, liquidated damages, securities,

taxes and duties)

• Intellectual Property (copyright in design-build)

Design, Build, Operate Contract

General Conditions - Key Issues

• Contract Administration and Supervision (Design-Build supervision, Operations

supervision, Engineer’s duties etc.)

• Representatives, Staff and Subcontracting (Owner’s rep, Operator’s rep,

personnel, existing staff)

• Liability and Risk Distribution (defects, limitation of liability,

indemnification, insurance, force majeure etc.)

Design, Build, Operate Contract

General Conditions - Key Issues

• Change in Contract Elements (change to Design-Build Services,

change order processes)

• Suspension and Termination (rules with respect to both suspension of

work and termination of the Contract)

Design, Build, Operate Contract

Key Appendices – Technical Specifications

• Design-Build Appendix (setting out services to be provided in

the Design- Build period)

• Operations Services Appendix (outlining all operations responsibilities)

• Technical Standards Appendix (outlining all technical standards -most

are project specific)

• Operation of existing facilities, if any

Design, Build, Operate Contract

Key Appendices - Contract Price Adjustment

• to be drafted on a project-by-project basis

• long term provisions for the adjustment of price for Operations Services over time

Design, Build, Operate Contract

Key Appendices – Incentive Compensation

• to be drafted on a project-by-project basis

• intended to be used to encourage operations achievements

Design, Build, Operate Contract

Key Appendices – Existing Staff

• to be drafted on a project-by-project basis

• intended to be used to deal with circumstances where there are existing staff

• this will be dependent on the local law

Design, Build, Operate Contract

Key Appendices – Liquidated Damages

• sets out the failures of the Operator to meet the Technical Standards that will give rise to Liquidated Damages

• establishes the amounts of Liquidated Damages that will apply

Design, Build, Operate Contract

Key Appendices – Operator’s Expertise

• Operator must have all expertise required to carry out the Services

• describes the areas of expertise the Operator must have

Generic Documents for the Design, Build, Operate

Contract for a Solid Waste Facility