IFAD Procurement Guidelines revised 2008

Guidelines Procurement responsibilities under IFAD Loan and Grant Direct Supervision

PI Division 6 March 2008

Guidelines Procurement responsibilities under IFAD Loan and Grant Direct Supervision

Introduction 1. These Guidelines are intended to assist PI staff in handling procurement of Goods, Work and Consultancy Services in the context of IFAD Direct Supervision. It is a compendium of instructions, forms and checklists extracted from IFAD’s Guidelines for Supervision and Implementation Support1. It also draws from information distributed to IFAD staff during the Direct Supervision Training Programme held at Casa San Bernardo during 2007/08. 2. Loan administration is the part of the supervision process that deals with the issues of disbursement, flow of funds, procurement of goods, works and consulting services, financial controls and management aspects of implementation (budgeting, accounting, financial planning, reporting and audit). These guidelines provide direction on the procurement element of loan administration. The responsibility matrix for loan administration within IFAD, including procurement, is provided as Annex 5. Letter to the Borrower (LttB) 3. Based on the standard format letter issued by OL/FC2, the Letter to the Borrower (LttB) is prepared by the PI Regional Financial Management Officer (RFMO) and signed by the Assistant President, PD. Soon after loan signing, the LttB is sent to the Borrower’s representatives and officials attached to the project or programme. The LttB clearly explains the action to be taken by the Borrower in order to start withdrawal of funds and spells out the methods and procedures for withdrawal of funds, procurement of goods, works and consulting services as well as the financial and audit reporting requirements. A copy of the IFAD Guidelines for Procurement is annexed to the LttB. Furthermore, standard forms, checklists and instructions to facilitate the Borrower’s compliance with procedures are also attached to the LttB. Procurement 4. The IFAD Procurement Guidelines of December 20043 and the Loan Agreement, which governs the legal relationship between the Borrower and IFAD, should always be consulted for a description of applicable procurement procedures. A sample matrix of responsibilities between PMU/IFAD/Borrower is given in Annex 4. 5. Procurement Methods. There are several methods of procurement, both for procurement of goods and works and for procurement of consulting services. The methods for procurement of goods and works are described in Part B of the Procurement Guidelines, while the methods for procurement of consulting services are described in Part C of the Procurement Guidelines. Schedule 4 of the loan agreement specifies the method(s) permitted for the borrower to procure goods, works and services in the individual project. If applicable, Schedule 4 also specifies the threshold amounts for the individual procurement methods. Annex 1 provides a table showing the procurement methods and their main characteristics/description. 6. Supervision Tasks in Procurement. Procurement is fundamentally the responsibility of the Borrower. However, in IFAD the CPM and RFMO are involved in the procurement process in the following instances:

1 http://www.ifad.org/operations/projects/supervision/guidelines.pdf 2 The standard LttB template is currently under preparation by OL. 3 http://intradev:8015/pub/basic/procure/e/proceng.pdf.

1

http://intradev:8015/pub/basic/procure/e/proceng.pdf

Review of procurement implementation plan; Review of prequalification of bidders; and Procurement review

a. Prior review; and b. Ex-post review.

7. Receipt of procurement documents in IFAD. As many procurement related documents for IFAD review are now sent electronically to CPMs there is a substantial risk that these may be delayed or lost – particularly considering the high volume of email communication and frequent travel schedule faced by CPMs. In order to more proactively manage this aspect a central email address has been created. The address is [email protected]. On receipt, any documentation in the central email address will be sent immediately be to the CPM, PA and IRC and logged in the Procurement Tracking Sheet. The PA and CPM then have responsibility for follow up in accordance with the workflow described in detail below and for updating the Procurement Tracking Sheet. 8. A formal communication on this process will be prepared and sent to all ongoing projects in the region advising to use the central email address for the purpose of submitting procurement related documents. 9. Review of the Procurement Plan. The Borrower is to have a duly approved annual work plan and budget4, which includes a procurement plan for all major procurements of goods, works and consulting services to be carried out within a period of at least 18 months (i.e. extending up to six months beyond the end of the AWPB). The first procurement plan (elaborated as part of project appraisal) is to be updated after loan effectiveness and is to cover the initial 18 months of the project implementation period. This is to be submitted to IFAD for approval. The procurement plan is updated annually (or as needed) to cover every subsequent 18-month period of project implementation as part of the normal AWPB development exercise. 10. The Procurement Plan must as a minimum identify in reasonable detail (a) the various contracts for goods, works and consulting services required to implement the project; (b) the proposed methods of procurement for such contracts that are permitted under the loan agreement; and (c) the related IFAD review procedures. A checklist for review and a sample of the lay-out of a well-prepared procurement plan are presented in Annex 2. A standard Procurement Plan template will be available shortly. 11. Checklists to be used. Procurement supervision includes office-based and field-based review as well as Prior Review and Ex-Post Review. Prior review requiring the provision of IFAD’s “no objection” is mainly an office-based activity. Ex-post review is mainly field-based which includes the review of procurement that is not subject to prior review. 12. Four Checklists have been prepared for use as a tool and guide for conducting the procurement review.

Checklist 2 - Prior Review Procedures: Prequalification of Bidders Checklist 3 - Prior Review Procedures: Procurement of Goods and Works Checklist 4 - Prior Review Procedures: Procurement of Consulting Services Checklist 5 - Procurement Ex Post Review Procedures

13. For further information, refer to Annex 3: Procurement Review Process. 14. Procurement Workflow: Schedule 4 of Loan Agreements may provide the financial threshold for procurement that is subject to prior review5. All procurement that is valued at the prescribed financial threshold should be submitted by the PMU to the CPM at the following stages of the procurement process for provision of clearances and “no objection”: 4 Refer to PI Results Orientation AWPB Guidelines available on PI Desk 5 Thresholds may have been agreed during loan negotiations and included in minutes of negotiations.

2

mailto:[email protected]

1. a. Bidding documents for goods and works 1. b. Request for proposal (RFP) for consulting services 2. Evaluation and selection 3. Contract award

15. During the project implementation phase, the Programme Assistant and the Regional Financial Management Officer (RFMO) will provide support and assistance to the CPM in the review of procurement documents to ensure compliance to provisions in loan agreement and procurement guidelines. For complex cases of procurement, a technical specialist should be contracted to provide technical expertise in the review of the documentation submitted by PMU. This workflow process is detailed below.

Programme Assistant. The PA is responsible for managing documentation and ensuring the Procurement Tracking Sheet is updated according to the different stages of procurement review processes and based on the updated checklists.

Country Programme Manager. Using the Checklist as a tool in the review, the CPM undertakes initial review and if required, passes on the documents to the RFMO for advice.

Regional Financial Management Officer. Reviews the procurement documents and submits findings/comments to the CPM. The Procurement Tracking Sheet will also be monitored by the RFMO.

Country Programme Manager. The CPM communicates assessment to the PMU and Government authorities if necessary. Upon completion of review and determination of compliance, the CPM sends the communication to the PMU providing “no objection” to the procurement and sends the procurement documents with the checklist to the PA.

Programme Assistant. Logs the no objection in the Procurement Log Sheet and files the document in the cabinet log file.

16. Review of Prequalification of Bidders. Prequalification of bidders is usually done for large and complex works or in situations where there is a potential for substantial time and cost savings in the procurement of goods and works by evaluation of only bids from qualified bidders. Prequalification involves review by IFAD in two instances: (a) prior to the borrower’s issuance of invitations to prequalify, IFAD reviews the draft documents to be used, including the text of the invitation to prequalify, the prequalification questionnaire and the evaluation methodology, together with a description of the advertising procedures to be followed; and (b) following the borrower’s evaluation of submissions, IFAD reviews the draft evaluation report together with the list of prequalified bidders and a statement of their qualifications, and of the reasons for excluding any applicant from prequalification.

17. Prior and Ex-post Review of Procurement. Irrespective of the method of procurement to be employed, the loan agreement may specify the threshold for prior review. For example, for contracts valued at more than the threshold amount, the review procedure described in Appendix I of the Procurement Guidelines must be applied. IFAD reviews the borrower’s procurement procedures, documents, bid evaluations, award recommendations and contracts to ensure that the procurement process is carried out in accordance with agreed guidelines. The loan agreement specifies the extent to which the review procedures will apply in respect of the various categories of goods, works and consulting services to be financed, in whole or in part, from the IFAD loan. Where prior review is not required, through supervision IFAD conducts a post-award review on a sample basis of documentation and contracts submitted as supporting documents for withdrawal applications. The procedure for prior review differs for procurement of goods and works and procurement of consulting services.

3

18. Checklists for the review of prequalification of bidders, prior and post approval are provided in Appendix 2 - Annex 3. Sample summary procurement table/individual contract monitoring form and contract record are provided in Appendix 3 - Annex 3. 19. Draft (not yet approved by IFAD Management) sample Standard Bidding Documents for Goods, Works, Consulting Services for the borrower’s use and user’s Manual on Procurement, Disbursement and Financial Management in Projects with Community Participation can be found on the PI //desk. It is intended that PI will finalise and make available these standardized documents shortly. 20. Performance measurement/processing time: as procurement is a critical element of implementation, it is expected that “no objection” is given within one week from receipt of documentation when no major issues are encountered. For procurement requiring follow up all “pending issues” should be recorded in the Procurement Log Sheet. As with Withdrawal Applications, PI will actively monitor status of pending issues for Procurement on a weekly basis. Further follow up and discussion on lessons learned will be pursued during weekly divisional staff meetings. 21. Filing. All no objection and procurement documentation should be securely filed (locked) in an orderly manner in the PI filing room. This is to be maintained according to individual loan/grant along with any related correspondences and checklists.

22. All incoming request for no objection should be forwarded to the designated divisional email address [email protected]. Any documentation received directly by the CPM should be sent to this email address for forwarding to the Mail room/IRC. The mail will be checked on a daily basis and request logged in by Portfolio Management Group and forwarded to the concerned CPM and PA. In case of absence, the documentation will be reviewed by the person delegated.

4

mailto:[email protected]

ANNEX 1

THE DIFFERENT METHODS OF PROCUREMENT

A

nnex 1

1

PROCUREMENT METHODS I. Procurement of goods and works Method Description Applicability/Characteristics Advertising Remarks International Competitive Bidding (ICB)

Procedure for procurement of goods and works on the international market with open competition

High value procurement Interest for international business

community Equal opportunity to bid

General Procurement Notices (GPN) Open ITB or invitation to pre-qualify UNDB/dgMarket International press

- Margin of preference for domestic goods and works may be applied

Limited International Bidding (LIB)

ICB by direct invitation (no open advertisement)

Smaller value Limited number of suppliers

Restricted ITB - Domestic preference not applicable

National Competitive Bidding (NCB)

Procedure for public procurement in Borrower Country

Small value contracts Geographically scattered, labor-

intensive or time-spread works Local prices below international market No or limited interest from

international business community ICB advantages outweighed by

financial and administrative costs

Local press Internet Open ITB

- IFAD to establish acceptability of national procedures - Foreign suppliers allowed to bid

International Shopping Comparison of price quotations from at least 3 suppliers in 2 different countries

Small value procurement Off-the-shelf goods, standard

specification commodities, simple civil works

Request for quotation (restricted)

- Purchase order or brief contract

National Shopping Comparison of price quotations from at least 3 suppliers

Same as International Shopping Goods available locally from several

sources at competitive prices

Request for quotation (restricted)

- Purchase order or brief contract

Direct Contracting Single or sole-source selection

Extension of existing contract Standardization for vehicles, equipment Proprietary equipment obtainable from

one source only Condition of performance guarantee Emergency procurement

No advertising No competition

A

nnex 1

2

Procurement from Commodity Markets

Procurement of goods from commodity markets

Grains, animal feed, cooking oil, fuel, fertilizers, pesticides, metals

Multiple award for partial quantities to secure supply and prices

Pre-qualified bidders Issuance of periodic invitations

Short bid validity Single (market) currency for bid and payment

Work by Force Account Use of the Borrower’s own personnel and equipment to perform construction work

Difficulty in defining work quantities Small, scattered works in remote

locations Risk of unavoidable work interruptions No disruption of on-going operations Emergency situations

No advertising No competition

IFAD ensure that - force account units are properly staffed, equipped and organized - costs are reasonable

Procurement from UN Agencies

Procurement of specific goods from specialized UN agencies

Small quantities of off-the-shelf products No advertising No competition

- Use of UN agency rules and procedures - Indication in loan agreement

Refer to the IFAD Procurement Guidelines for the following procurement methods:

Procurement by agents and use of inspection agents Procurement by financial intermediaries or sub-loan beneficiaries Procurement with community participation

Annex 1

3

II. Procurement of consulting services Method Description Applicability/characteristics Advertising Remarks Quality and Cost Based Selection

Competitive selection from short-listed firms based on quality and cost of proposal

Two-step evaluation: quality (technical proposal) and cost (financial proposal)

GPN (large contracts) Request for Proposal (RFP)

Preferred selection method for most consulting services

Selection Under a Fixed Budget

Competitive selection from short-listed firms based on best technical proposal within budget

Simple and precisely defined assignment Consulting firms requested to bid within

a fixed budget

Request for proposal Rejection of proposals above fixed budget

Least-Cost Selection Competitive selection from short-listed firms based on lowest cost provided minimum quality score is achieved

Standard, routine assignments (e.g. audits or design of simple works)

Well-established standards and practices Small contract value

Request for proposal - Establishment of a minimum score for quality - Rejection of proposals under minimum score

Quality Based Selection Competitive selection from

short-listed firms based on quality only

Complex/highly specialized assignments High downstream impact No comparability of proposals

GPN (large contracts) Request for Proposal

Only technical proposals may be invited

Selection Based on Consultants’ Qualifications

Selection from short-listed firms based on consultant’s experience and competence

Very small assignments Cost of RFP preparation and evaluation

not justified

Request for expression of interest

Submission of combined technical-financial proposals

Single Source Selection Selection of a firm without any competition

Must be exceptional: Continuation of previous work Emergency situation Very small assignments Only one firm is qualified/experienced

No competition Clear advantage over competition or impossibility to compete must be demonstrated

Selection of Individual Consultants

Individuals selected based on qualifications, references and other relevant criteria, with limited or no competition

Teams of personnel not required No additional professional support

required Main requirement is experience and

qualification of individual consultant

Request for expression of interest or Direct contact

Individuals may be selected on a single source basis

Refer to the IFAD Procurement Guidelines for the following procurement methods: Procurement agents and inspection agents

UN agencies, Civil Society Organizations, Auditors and Service Delivery Contractors

ANNEX 2

THE PROCUREMENT IMPLEMENTATION PLAN

Annex 2

THE PROCUREMENT IMPLEMENTATION PLAN

Review of the Procurement Plan 1. The loan agreement (Article III) requires the Borrower to have a duly approved annual work plan and budget (AWPB), which includes a procurement implementation plan (PIP) for all major procurements of goods, works and consulting services to be carried out within a period of at least 18 months (i.e. extending up to six months beyond the end of the AWPB). The AWPB and PIP are submitted to IFAD for review and approval before the beginning of the relevant project year. 2. The first procurement plan (elaborated as part of project appraisal) is to be updated after loan effectiveness and is to cover the initial 18 months of the project implementation period and is to be submitted to IFAD for approval. The procurement plan is to be updated annually (or as needed) to cover every subsequent 18-month period of project duration as part of the AWPB exercise. There is no standard format or template for a procurement plan but the plan must as a minimum identify in reasonable detail:

(a) thresholds, ceilings and preferences to be applied in the implementation of procurement under the project;

(b) the various contracts for goods, works and consulting services required to implement the project;

(c) the proposed methods of procurement for each contract; and (d) the related IFAD review procedures.

3. The loan agreement (Article III) requires the borrower to elaborate an AWPB (including procurement implementation plan) and submit it to IFAD for review and approval before the beginning of the relevant project year. 4. When reviewing the PIP, it is important to keep in mind that the it serves both as a tool for guiding project procurement implementation and as a collection of benchmarks (dates and method of procurement) against which actual implementation progress can be measured throughout the year. A poorly thought-through PIP may cause a loss of time in the procurement process. Time spent on a thorough review of the PIP (with particular emphasis on the method of procurement to be followed and the need or not for IFAD prior approval) is therefore a good investment: getting things right at this stage can save a lot of time and effort later in the year, not only for the borrower but also for IFAD staff. CHECKLIST: REVIEW OF THE PROCUREMENT IMPLEMENTATION PLAN 5. From his/her knowledge of the project and from supervision missions and other interaction with the project during the year, the CPM would have developed his/her own checklist of project-specific issues that need to be addressed and reviewed in the AWPB. The checklist below is aimed at detecting major deficiencies in the internal coherence and consistency of the PIP. Coherence

• General coherence: Is the nature and quantity of goods/works/services generally consistent with the nature of project activities/components as per the appraisal report?

• Coherence with AWPB: Do the nature and quantity of goods/works/consulting services appear consistent with the activities in the AWPB? Are the costs of procurement adequate and reflected in the budget?

1

Annex 2

2

Procurement Packaging • Is the procurement systematically and logically grouped according to the categories of the

procurement (goods/works/consulting services)?

• Within each category, have similar or related items been combined in a single package where possible and sensible?

• Has packaging been done in a way that generally facilitates the use of the most competitive and efficient procurement method and that ensures the best value for money? Note specifically “split packaging” (e.g. several small, similar packages designed to circumvent the threshold for competitive procurement methods); and packaging that limits competition by de facto locking a series of contracts to the winner of the first contract (e.g. a separate package for delivery of machinery followed by future packages for spare parts and maintenance)?

Procurement Method

• Is the selection of procurement methods in compliance with the provisions of Schedule 4 of the loan agreement?

Procurement Schedule

• Do the time estimates indicated (for the individual procurement method) seem realistic?

• Is the procurement schedule consistent with the implementation schedules in the AWPB (does the delivery of goods, works and services correspond to physical targets in the work plan)?

6. A sample of the lay-out of a well-prepared 18-month procurement implementation plan is in Appendix 1.

Annex 2 – A

ppendix 1

1

Annex 2 – A

ppendix 1

T U R K EY Pro gram m e fo r R ural Po verty R edu ction (PR PR )

Procu rem en t P lanO rig inal: O ctober 2006 (P rogram m e Appra isa l) Abbreviatio ns: G B - G overnm ent B udget IC - Ind ividua l C onsu ltan ts In t shop - In te rnationa l S hopp inR ev ised : B en - B enefic ia ries LC B - Loca l C om petitive B idd ing Loc shop - Loca l S hopp ingP erio d : Ju ly 2007 - D ecem ber 2008 (18 m onths) TA - T echnica l A ss is tance S O E - S ta tem ent o f E xpend itures N /A - N ot A pp licab le

TR W S - T ra in ing , W orkshops and S tud ie C Q - C onsu ltant S ervices : C onsultan t Q ualifica tionG R - C ontributory G rants Q C S B - C onsu ltant S ervices :Q uality /C ost S e lection B aseR C - R ecurren t C os ts B C P - B est C om m erc ia l P rac tices

Fina

ncie

r-ID

C

ode

Pac

kage

ID N

o

Com

bine

d P

acka

ge N

o

Ref

eren

ce

D escrip tion No

of L

ots

Loan

Cat

egor

y

Pro

cure

men

t M

etho

d

Tota

l Allo

cate

d A

mou

nt

(US

$.00

0)

Allo

cate

d A

mou

nt fo

r 18

mon

ths

(US

$.00

0)

Prio

r/Pos

t R

evie

w

Pro

pose

d N

o of

P

acka

ges

Sta

rting

ye

ar/m

onth

Tend

er In

vita

tion

Mon

th

Bid

Ope

ning

D

ate

Con

tract

Sig

ning

D

ate

Del

iver

y/

Com

plet

ion

Late

st D

ate

Con

tract

Am

ount

Sup

plie

r/ C

ontra

ctor

C om ponen t A - V illage Im provem ent P rogram m e Aw areness R aising

IF A D 1 A 1.1 P rogram m e H andbook P ub lication G oods LC B 34.9 34.9 P ost 1 2008/1 2008/1 2008/2 2008/3 2008/6IF A D 2 A 1.2 S taff O rien ta tion TR W S S O E 6.7 6.7 N /A 1 2007/9IF A D 3 A 1.3 V illage M eetings TR W S 33.2 10.9 N /A 2008/6

S ub-to tal AR : 74.8 52.5Farm er E ducation and Tra in ing

IF A D 4 A 2.1 R ehabilita tion o f tra in ing fac ilities (in S iirt) 1 C W LC B 34.2 34.2 P ost 1 2008/1 2008/1 2008/2 2008/3 2008/12IF A D 5 V -2 A 2.2 V eh ic les for P D A s 2 G oods Int shop 342.5 342.5 P rior 1 2008/3 2008/3 2008/5 2008/6 2008/8IF A D 6 A 2.3 O ffice equipm ent for P D A s 1 G oods LC B 71.6 71.6 P rior 3 2008/1 2008/2 2008/3 2008/4 2008/6IF A D 7 A 2.4 T ra in ing equipm ent for P D A s 1 G oods Loc shop 46.7 46.7 P ost 3 2008/1IF A D 8 A 2.5 E qu ipm ent for tra in ing fac ilities (in S iirt) 1 G oods Loc shop 20.8 20.8 P ost 1 2008/9IF A D 9 V -1 A 2.6 V eh ic les for P rogram m e sta ff (extens ion) 1 G oods Int shop 91.1 91.1 P rior 1 2007/7 2007/8 2007/9 2007/10 2007/12IF A D 10 O E -1 A 2.7 O ffice equipm ent for P rogram m e sta ff (extens ion) 1 G oods LC B 25.8 25.8 P rior 1 2007/7 2007/7 2007/8 2007/9 2007/10IF A D 11 A 2.8 Tra in ing equipm ent for P rogram m e sta ff (extens ion) 1 G oods Loc shop 30.4 30.4 P ost 1 2007/7IF A D 12 A 2.9 D evelopm ent o f T ra in ing M ateria ls TA IC 31.9 15.6 P rior 3 2008/1IF A D 13 A 2.10 P ub lication o f T ra in ing M ateria ls G oods Loc shop 163.7 31.1 P ost m ulti 2008/4IF A D 14 A 2.11 V illage T ra in ing for A gricu ltu ra l P roduc tiv ity (inpu ts for d TR W S Loc shop 1,711.8 326.9 P ost m ulti 2008/6IF A D 15 A 2.12 R ecru itm ent o f P rogram m e E xtens ion S pec ia lis ts R C IC 527.3 112.1 P rior 3 2007/10 2008/1

S u b-to tal FE T: 3097.7 1148.8In frastru cture fo r V illage Im provem ent

IF A D 16 A 3.1 V IP I O perationa l M anual TA IC 10.1 10.1 P rior 1 2007/9IF A D 17 A 3.2 P reparation o f F eas ib ility S tud ies TA IC /C Q 258.6 62.3 P rior 3 2008/1IF A D /G B 18 A 3.3 C iv il W orks C W LC B 7,200.0 650.0 P rior m ulti 2008/9IF A D 18 A A 3.4 Tendering C W S O E 144.0 13.0 2008/7IF A D 19 A 3.5 V illage T ra in ing for In fras truc ture P ro jects TR W S Q C S B 720.0 65.0 P rior 3 2008/6

S ub-to ta l IV I: 8 ,332.7 800.4S ub -to tal C o m ponent A: 11505.3 2001.7

C om ponen t B - R ural E conom ic G row thIF A D 20 B .1 S urvey o f F arm ers ' O rgan isa tions TR W S IC /C Q 31.1 15.2 P rior 1 2007/8 2007/10 2007/12IF A D 21 B .2 S tudy o f P roduc tion S ystem s TR W S IC /C Q 10.1 10.1 P rior 1 2007/8 2007/10 2007/12IF A D 22 B .3 S upply C ha in M apping/M arketing A nalyses TR W S IC /C Q 139.7 41.5 P rior m ulti 2008/1 2008/3 2008/6IF A D 23 B .4 M arke ting and B us iness D evelopm ent S tud ies TR W S IC /C Q 108.5 10.4 P rior m ulti 2008/3 2008/5 2008/9IF A D 24 B .5 P rogram m e S taff T ra in ing in S C M TR W S S O E 3.1 1.5 2007/12

1

T U R K EY Pro gram m e fo r R ural Po verty R edu ction (PR PR )

Procu rem en t P lanO rig inal: O ctober 2006 (P rogram m e Appra isa l) Abbreviatio ns: G B - G overnm ent B udget IC - Ind ividua l C onsu ltan ts In t shop - In te rnationa l S hopp inR ev ised : B en - B enefic ia ries LC B - Loca l C om petitive B idd ing Loc shop - Loca l S hopp ingP erio d : Ju ly 2007 - D ecem ber 2008 (18 m onths) TA - T echnica l A ss is tance S O E - S ta tem ent o f E xpend itures N /A - N ot A pp licab le

TR W S - T ra in ing , W orkshops and S tud ie C Q - C onsu ltant S ervices : C onsultan t Q ualifica tionG R - C ontributory G rants Q C S B - C onsu ltant S ervices :Q uality /C ost S e lection B aseR C - R ecurren t C os ts B C P - B est C om m erc ia l P rac tices

Fina

ncie

r-ID

C

ode

Pac

kage

ID N

o

Com

bine

d P

acka

ge N

o

Ref

eren

ce

D escrip tion No

of L

ots

Loan

Cat

egor

y

Pro

cure

men

t M

etho

d

Tota

l Allo

cate

d A

mou

nt

(US

$.00

0)

Allo

cate

d A

mou

nt fo

r 18

mon

ths

(US

$.00

0)

Prio

r/Pos

t R

evie

w

Pro

pose

d N

o of

P

acka

ges

Sta

rting

ye

ar/m

onth

Tend

er In

vita

tion

Mon

th

Bid

Ope

ning

D

ate

Con

tract

Sig

ning

D

ate

Del

iver

y/

Com

plet

ion

Late

st D

ate

Con

tract

Am

ount

Sup

plie

r/ C

ontra

ctor

C om ponen t A - V illage Im provem ent P rogram m e Aw areness R aising

IF A D 1 A 1.1 P rogram m e H andbook P ub lication G oods LC B 34.9 34.9 P ost 1 2008/1 2008/1 2008/2 2008/3 2008/6IF A D 2 A 1.2 S taff O rien ta tion TR W S S O E 6.7 6.7 N /A 1 2007/9IF A D 3 A 1.3 V illage M eetings TR W S 33.2 10.9 N /A 2008/6

S ub-to tal AR : 74.8 52.5Farm er E ducation and Tra in ing

IF A D 4 A 2.1 R ehabilita tion o f tra in ing fac ilities (in S iirt) 1 C W LC B 34.2 34.2 P ost 1 2008/1 2008/1 2008/2 2008/3 2008/12IF A D 5 V -2 A 2.2 V eh ic les for P D A s 2 G oods Int shop 342.5 342.5 P rior 1 2008/3 2008/3 2008/5 2008/6 2008/8IF A D 6 A 2.3 O ffice equipm ent for P D A s 1 G oods LC B 71.6 71.6 P rior 3 2008/1 2008/2 2008/3 2008/4 2008/6IF A D 7 A 2.4 T ra in ing equipm ent for P D A s 1 G oods Loc shop 46.7 46.7 P ost 3 2008/1IF A D 8 A 2.5 E qu ipm ent for tra in ing fac ilities (in S iirt) 1 G oods Loc shop 20.8 20.8 P ost 1 2008/9IF A D 9 V -1 A 2.6 V eh ic les for P rogram m e sta ff (extens ion) 1 G oods Int shop 91.1 91.1 P rior 1 2007/7 2007/8 2007/9 2007/10 2007/12IF A D 10 O E -1 A 2.7 O ffice equipm ent for P rogram m e sta ff (extens ion) 1 G oods LC B 25.8 25.8 P rior 1 2007/7 2007/7 2007/8 2007/9 2007/10IF A D 11 A 2.8 Tra in ing equipm ent for P rogram m e sta ff (extens ion) 1 G oods Loc shop 30.4 30.4 P ost 1 2007/7IF A D 12 A 2.9 D evelopm ent o f T ra in ing M ateria ls TA IC 31.9 15.6 P rior 3 2008/1IF A D 13 A 2.10 P ub lication o f T ra in ing M ateria ls G oods Loc shop 163.7 31.1 P ost m ulti 2008/4IF A D 14 A 2.11 V illage T ra in ing for A gricu ltu ra l P roduc tiv ity (inpu ts for d TR W S Loc shop 1,711.8 326.9 P ost m ulti 2008/6IF A D 15 A 2.12 R ecru itm ent o f P rogram m e E xtens ion S pec ia lis ts R C IC 527.3 112.1 P rior 3 2007/10 2008/1

S u b-to tal FE T: 3097.7 1148.8In frastru cture fo r V illage Im provem ent

IF A D 16 A 3.1 V IP I O perationa l M anual TA IC 10.1 10.1 P rior 1 2007/9IF A D 17 A 3.2 P reparation o f F eas ib ility S tud ies TA IC /C Q 258.6 62.3 P rior 3 2008/1IF A D /G B 18 A 3.3 C iv il W orks C W LC B 7,200.0 650.0 P rior m ulti 2008/9IF A D 18 A A 3.4 Tendering C W S O E 144.0 13.0 2008/7IF A D 19 A 3.5 V illage T ra in ing for In fras truc ture P ro jects TR W S Q C S B 720.0 65.0 P rior 3 2008/6

S ub-to ta l IV I: 8 ,332.7 800.4S ub -to tal C o m ponent A: 11505.3 2001.7

C om ponen t B - R ural E conom ic G row thIF A D 20 B .1 S urvey o f F arm ers ' O rgan isa tions TR W S IC /C Q 31.1 15.2 P rior 1 2007/8 2007/10 2007/12IF A D 21 B .2 S tudy o f P roduc tion S ystem s TR W S IC /C Q 10.1 10.1 P rior 1 2007/8 2007/10 2007/12IF A D 22 B .3 S upply C ha in M apping/M arketing A nalyses TR W S IC /C Q 139.7 41.5 P rior m ulti 2008/1 2008/3 2008/6IF A D 23 B .4 M arke ting and B us iness D evelopm ent S tud ies TR W S IC /C Q 108.5 10.4 P rior m ulti 2008/3 2008/5 2008/9IF A D 24 B .5 P rogram m e S taff T ra in ing in S C M TR W S S O E 3.1 1.5 2007/12

ANNEX 3

PROCUREMENT REVIEW PROCESS

Annex 3

PROCUREMENT REVIEW PROCESS 1. The general policies and procedures applicable to project procurement in IFAD financed projects are set out in the IFAD Procurement Guidelines of December 2004. The loan agreement, which governs the legal relationship between the Borrower and IFAD, stipulates the specific provisions for the procurement of goods, works and consulting services in the respective project. The following is limited to providing practical guidance on some of the more important aspects of procurement-related tasks and procedures such as these present themselves in the majority of projects. Methods of Procurement 2. There are several methods of procurement, both for procurement of goods and works and for procurement of consulting services. 3. The methods for procurement of Goods and Works (described in Procurement Guidelines Part B) are:

(a) International competitive bidding; (b) Limited international biding; (c) National competitive bidding; (d) International or national shopping; (e) Direct contracting; (f) Procurement from commodity markets; and (g) Work by force account.

4. The methods for selection of Consulting Services (described in Procurement Guidelines Part C) are:

(a) Quality and cost based selection; (b) Quality based selection; (c) Selection under a fixed budget; (d) Least-cost selection; (e) Selection based on consultants’ qualifications; (f) Single-source selection; and (g) Selection of individual consultants.

5. Schedule 4 of the loan agreement specifies the method(s) permitted for the Borrower for the procurement of goods, works and consulting services. If applicable, Schedule 4 also specifies other relevant information on procurement, e.g. procurement handled by IAPSO/UN agencies or other institutions. 6. Supervision Tasks in Procurement. You will find in the following Appendices the checklists to be used during the procurement review process and the forms to be utilized to record contracts reviewed and monitoring forms:

• Appendix 1: the checklist to be used for supervision tasks as well as the workflow to be followed for IFAD review and

• Appendix 2: Sample Summary Procurement Table/Sample Contract Record and Sample Individual Contract Monitoring Form

1

Annex 3

Review of Procurement with Prequalification of Bidders 7. Prequalification of bidders is usually done for large and complex works or in situations where there is a potential for substantial time and cost savings in the procurement of goods and works by evaluation of only bids from qualified bidders. 8. Prequalification involves review by IFAD in two instances (see flow chart 1):

• Prior to the borrower’s issuance of invitations to prequalify: review of the draft documents to be used, including the text of the invitation to prequalify, the prequalification questionnaire and the evaluation methodology, together with a description of the advertising procedures to be followed.

• Following the borrower’s evaluation of submissions: review of the draft evaluation report together with the list of prequalified bidders and a statement of their qualifications, and of the reasons for excluding any applicant from prequalification

Flow Chart 1: Review of Prequalification of Bidders

Review of draft documents

Evaluation of submissions

Draft documents

Finalization of documents

Drafting of prequalification documents

Borrower IFAD CPM

Evaluation report, draft list of bidders

Review of documents

Preparation of final list of bidders

Modifications

No objection

Modifications

No objection

Preq

ualif

icat

ion

Proc

ess

2

Annex 3 CHECKLIST: Review of Draft Prequalification Documents 9. The advertisement and invitation for prequalification should contain the following information:

(a) a brief description of the goods and works to be procured; (b) the contract conditions; (c) who is financing the project; (d) eligibility requirements for potential bidders, suppliers and contractors; and (e) the time and place where prequalification documents can be obtained.

10. The prequalification documents should enlarge on the information provided in the advertisement and contain a description of:

(a) the proposed procurement; (b) the estimated value of the contract and major quantities of work; (c) location of the work; (d) procurement scheduling of goods or works to be procured; (e) abbreviated specifications and conditions of contract; (f) main quantities to be procured; (g) delivery or implementation schedules; (h) requirements for bid and performance securities; (i) how the project is to be financed; (j) payment terms; (k) price adjustment provisions; (l) the language and governing law of the contract; (m) other information in sufficient detail to enable bidders, suppliers or contractors to assess

their interest and respond appropriately; (n) the name and address of the Borrower and of the Borrower’s official in charge of the

procurement with a statement of their roles; (o) submissions required, such as completed questionnaire forms and supporting documents

and their number and the deadline for their submission; and (p) a clear statement on the criteria for evaluation of prequalification applications.

11. As a general rule the evaluation criteria should be objective and relate to the candidate’s experience, financial resources, personnel resources and equipment resources. Ambiguous requirements such as “general reputation”, or “cooperativeness”, and requirements that are irrelevant or unfairly discriminatory should be avoided. CHECKLIST: Review of Evaluation Report and Draft List of Bidders 12. IFAD does not require a specific format for the evaluation report, but the report should include at a minimum:

(a) a list of all applicants; (b) their ratings keyed to the specific criteria and items of information requested, (c) the list of rejected applicants with a detailed justification for the rejection; and (d) the resulting proposed list of prequalified applicants.

3

Annex 3

Review of Procurement with Prior Review 1. Irrespective of the method of procurement to be employed, the loan agreement generally specifies the threshold for prior review (i.e. for contracts valued at more than the threshold amount, the review procedure described in Appendix I of the Procurement Guidelines must be applied). IFAD reviews the borrower’s procurement procedures, documents, bid evaluations, award recommendations and contracts to ensure that the procurement process is carried out in accordance with agreed guidelines. The loan agreement specifies the extent to which the review procedures will apply in respect of the various categories of goods, works and consulting services to be financed, in whole or in part, from the IFAD loan. Where prior review is not required, IFAD conducts a post-award review on a sample basis of documentation and contracts submitted as supporting documents for withdrawal applications. 2. The procedure for prior review differs for procurement of goods and works and procurement of consulting services. Prior review of Procurement of Goods and Works 3. Prior review of procurement of goods and works involves review by IFAD in two instances (see flow chart 2):

• Review of draft bidding documents, including the invitation to bid, instructions to bidders, including the basis of bid evaluation and contract award, the conditions of contract and specifications of deliverables, and a description of the advertising procedures to be followed for the bidding (if prequalification has not been used).

• Review of the bid evaluation report, including comparison of bids received, recommendations for award of contract, the draft contract and other information requested by IFAD.

Flow Chart 2: Prior Review of Procurement of Goods and Works

Review of draft documents

Evaluation of bids

Draft documents


Drafting of bidding. documents

Modifications

Borrower IFAD CPM

Evaluation report

Review of documents

Contracting

Modifications

No objection

Modifications

No objection

Tend

er P

roce

ss

4

Annex 3 CHECKLIST: Review of Draft Bidding Documents General 4. Is the procurement:

• in accordance with the loan agreement and any subsequent changes reflected in mission reports (e.g., Supervision, Mid-Term Review, Back-to-Office Reports, Aide-Memoires, correspondence, etc.)?

• within the availability of funds? • consistent with the approved AWPB (procurement plan)?

Adequacy and Quality of the Bidding Documents 5. Bidding documents should provide all the information necessary for a bidder to prepare its bid for the goods or works to be provided. This includes:

• Instruction to the bidders; • Proposed pricing (e.g., unit prices or lump sum); • Currency arrangements; • Qualification standards set out for bidder (where no prequalification); • Terms of Reference (TOR) or Statement of Work (SOW) describing contract requirements; • Evaluation criteria by which the award will be determined; • Clarity and propriety of the borrower’s use of preferences (e.g. the method by which domestic

bidders may be favoured); and • Insurance or bond requirements.

Other Issues

• Unusual provisions (e.g. large advance payments); • Proposed attachments to be included in the bidding documents; • Borrowers’ list of proposed bidders to receive the invitation of bids; and • Draft contract to be awarded.

6. “Other information as IFAD may reasonably request”: Although IFAD does not approve the bid evaluation committee it would be pertinent at this stage to request and review information about the proposed composition of the committee in order to ascertain that there is sufficient representation of relevant agencies/stakeholders and expertise. CHECKLIST: Review of the Bid Evaluation Report 7. There is no standard format for the bid evaluation report, but the report should to the extent possible cover and reflect the logical sequence of a standard bid evaluation process in the following manner:

(a) receipt and opening of bids (including minutes of the public bid opening); (b) examination of bids; (c) substantially non-responsive bids; (d) correction of arithmetic errors; (e) currency conversion; (f) adjustment for nonmaterial deviations; (g) bids subject to detailed evaluation; (h) evaluation of bids; (i) comparison of bids; (j) lowest evaluated responsive bid; (k) post qualification; and (l) award recommendation.

5

Annex 3 8. “Other information as IFAD may reasonably request”: It would in most cases be relevant to request evidence of the evaluation carried out by each member of the evaluation committee (score cards, evaluation sheets, etc.).

Prior Review of Procurement of Consulting Services 9. Prior review of procurement of consulting services involves review by IFAD in up to four instances (see flow chart 3).

• Review of draft Request for Proposal (RFP), including Terms of Reference, cost estimate and short list of consultants;

• Review of technical evaluation report; • Review of financial evaluation and final evaluation report (not applicable when the

procurement method is quality based selection, selection based on consultants’ qualifications and single source selection); and

• Review of negotiated draft contract.

Flow Chart 3: Prior Review of Procurement of Consulting Services

Review of draft documents, including TORs

Evaluation of technical proposals

Draft documents


Drafting of RFP, including TORs

Modifications

Borrower IFAD CPM

Technical evaluation report

Review of report

Evaluation of financial proposals

Modifications

No objection

Modifications

No objection

Final evaluation report

Review of report

Modifications

No objection

Negotiation of contract

Review of draft contract

Draft contract

Modifications

No objection

Signing of contract

Qua

lity-

base

d se

lect

ion

Tend

er P

roce

ss

6

Annex 3 CHECKLIST: Review of Draft RFP General 10. Is the procurement:

• in accordance with the loan agreement and any subsequent changes reflected in mission reports (e.g., Supervision, Mid-Term Review, Back-to-Office Reports, Aide-Memoires, correspondence, etc.)?

• within the availability of funds (cost estimate by submitted by borrower)? and • consistent with the approved AWPB (procurement plan)?

Adequacy and Quality of the RFP 11. The RFP should provide all the information necessary for a consulting firm to prepare its proposal. This includes:

• Instructions to the consultant (including applicable forms and data sheets); • Requirements to specification of pricing (e.g. time-based, lump sum, reimbursable); • Currency arrangements; • Terms of Reference (TOR) describing contract requirements, overall as well as for individual

personnel; • Selection method; • Evaluation criteria (technical and financial) by which the award will be determined; • Clarity and propriety of the Borrower’s use of preferences (e.g. the method by which

domestic consultants may be favoured); and • Insurance or bond requirements.

Other Issues

• Unusual provisions; • Proposed attachments to be included in the RFP; • Borrowers’ shortlist of consultants to receive the RFP; and • Draft contract to be awarded.

2.3.1.2 CHECKLIST: Review of the Evaluation Report 12. The specific contents of the evaluation report will vary according to the selection method applied. However, the following should be included as a minimum: Technical Evaluation

(a) Brief description of main events in the selection process prior to the technical evaluation (advertising, the establishment of the shortlist, expressions of interest, withdrawals of firms before proposal submissions, delays, complaints from consultants, extension of proposal submission date, etc.);

(b) Brief description of meetings and actions taken by the evaluation committee; (c) Analysis of strengths and weaknesses in relation to the evaluation criteria of each proposal; (d) Summary of the results of the technical evaluation: scores and the award recommendation;

and (e) Annexes detailing:

• technical scores/ranking given to individual consultants on each evaluation criterion; and

• scores given by each individual member of the evaluation committee.

7

Annex 3

8

Financial Evaluation

(a) Not applicable to quality based, qualifications based and single source selection; (b) An account of adjustments made to the prices of the proposals (correction of arithmetic

errors, currency conversion, adjustment for nonmaterial deviations) and determination of the evaluated price;

(c) Award recommendation; and (d) An annex with the minutes of the public bid opening.

Annex 3 – Appendix 1

1

Appendix 1

Checklist 2: Prior Review Procedures: Pre-Qualification of Bidders Checklist 3: Prior Review Procedures: Procurement of Goods and Works Checklist 4: Prior Review Procedures: Procurement of Consulting Services Checklist 5: Procurement Ex Post Review Procedures


2

CHECKLIST 2 Procurement PRIOR REVIEW PROCEDURES: PRE-QUALIFICATION OF BIDDERS (1/2) Country Project name Loan number Procurement plan coverage period Identification of procurement action Date of submission Requirements Focus of review procedure Done

(Y/N)6Result of review7

Observations

1. Prior to issuance of invitations to pre-qualify a. Draft advertisement and invitation to pre-qualify contain the following information: - brief description of goods or works to be provided - contractual conditions - who is financing the project - eligibility requirements for potential bidders - time and place where pre-qualification documents can be obtained

b. Draft pre-qualification documents must contain a description of: - proposed procurement - estimated value of the contract and major quantities of work - work or delivery location and procurement scheduling of goods/works to be purchased - abbreviated specifications and conditions of contract (including language and governing law) - main quantities to be procured - delivery or implementation schedules - requirements for bid and performance securities - how the project is to be financed - payment terms - price adjustment provisions - other detailed information to enable bidders to assess their interest and respond appropriately - names and addresses of Borrower and officials in charge of procurement with a statement of their roles - pre-qualification questionnaire, supporting documentation and other submissions required and deadline - clear statement on evaluation criteria and methodology

Critical examination of all draft documents (i) to ensure: * overall quality of the documents * completeness * accuracy of information (ii) to verify compliance with: * applicable procurement rules and regulations * changes/new orientations adopted during IFAD missions (iii) to ensure conformity of pre-qualification with approved procurement plan (iv) to ensure that criteria listed for the evaluation of pre-qualification applications are objective and relate to bidders’ * experience and past performance on similar contracts * financial resources * personnel resources * equipment resources and facilities available.

6 Indicate whether or not this review step was completed. All negative answers must be justified in the Observations column 7 Indicate degree of compliance of the pre-qualification process with the requirements. All exceptions must be explained in the Observations column


3

CHECKLIST 2 PRIOR REVIEW PROCEDURES: PRE-QUALIFICATION OF BIDDERS (2/2)

Requirements Focus of review procedure Done (Y/N)

Result of review

Observations

2. After evaluation of bidders’ submissions a. The draft evaluation report contains: - a listing of all applicants - a list of items of information requested of applicants - the ratings given to each applicant for each specific criterion

b. The list of pre-qualified bidders includes a statement of their qualifications

c. The list of rejected applicants includes a detailed justification for the rejection

Verification and review of these draft documents for completeness, overall coherence and reasonableness

No-objection date _____________ Signature CPM_____________________


4

CHECKLIST 3 PRIOR REVIEW PROCEDURES: PROCUREMENT OF GOODS AND WORKS (1/2) Country Project name Loan number Procurement plan coverage period Identification of procurement action Date of submission Requirements Focus of review procedure Done


Observations

1. Prior to issuance of invitations to bid (ITB) a. Proposed procurement action is in conformity with: - applicable rules and procedures - subsequent changes reflected in mission reports - approved AWPB - approved procurement plan and sufficient funds are available to conduct the procurement

(i) Verification that procurement methods and procedures retained are in line with loan agreement and applicable rules/regulations. (ii) Verification of the information contained in the draft bidding documents against the AWPB, procurement plan and updated status of loan funds.

b. Draft bidding documents must contain the following information: - invitation to bid - instructions to bidders (including any proposed attachments) - qualification standards set out for bidder (when no pre-qualification) - technical specifications, statement of works and terms of reference (if applicable) - proposed pricing (unit prices, lump sum, …) and currency arrangements - criteria to be used to evaluate offers - clear statement regarding borrower’s method for domestic preferences - insurance and bond requirements - draft contract to be awarded, including special provisions (advance payments, penalties/bonuses, guarantees, etc.) - borrower’s list of proposed bidders for the ITB (if applicable)

Critical examination of draft bidding documents to ensure: * overall quality of the documents * completeness of the bidding documents package * accuracy and exhaustiveness of information contained in the bidding documents

c. The proposed members for the bid evaluation committee must be representative of all relevant stakeholders and have sufficient expertise

Examination of composition of the committee and request of information on the background of certain members (if necessary) in order to ensure participation of all relevant parties and adequate expertise

8 Indicate whether or not this review step was completed. All negative answers must be justified in the Observations column 9 Indicate degree of compliance of goods/works procurement process with the requirements. All exceptions must be explained in the Observations column


5

CHECKLIST 3 PRIOR REVIEW PROCEDURES: PROCUREMENT OF GOODS AND WORKS (2/2)


Result of review

Observations

2. After evaluation of bidders’ submissions a. The receipt and opening of bids was conducted in accordance with established rules and procedures

Review of the bid opening minutes to ensure presence of committee members and compliance with procedures

b. The bid evaluation process followed a logical sequence including the following steps: - receipt and opening of bids (see a. above) - examination of bids - identification and rejection of substantially non-responsive bids - correction of arithmetical errors and currency conversion - adjustment for non-material deviations - evaluation of bids - comparison of bids - identification of the lowest evaluated responsive bid - post-qualification and award recommendation

c. The evaluation of bids by each individual committee member must be evidenced by score cards, evaluation sheets, etc.

Review of the evaluation report in order to ensure: * compliance of bid evaluation and comparison process with established rules *strict adherence to the evaluation criteria and selection method set out in the ITB * use of evaluation sheets, score cards, etc. by each member of the evaluation committee * proper reflection of the individual evaluations in the final scores and overall ranking of bids * fairness and transparency of the entire evaluation process

d. The draft contract must be essentially identical to the draft provided in the bidding documents package

Review of draft contract to ensure it reflects all provisions indicated in the bidding documents



6

CHECKLIST 4 PRIOR REVIEW PROCEDURES: PROCUREMENT OF CONSULTING SERVICES (1/2) Country Project name Loan number Procurement plan coverage period Identification of procurement action Date of submission Requirements Focus of review procedure Done


Observations

1. Prior to issuance of request for proposal (RFP) a. Proposed procurement action is in conformity with: - applicable rules and procedures - subsequent changes reflected in mission reports - approved AWPB - approved procurement plan and sufficient funds are available to conduct the procurement

(i) Verification that procurement methods and procedures retained are in line with loan agreement and applicable rules and regulations. (ii) Verification of the information contained in the draft RFP documents against the AWPB, procurement plan and updated status of loan funds.

b. Draft RFP documents must contain the following information: - instructions to consultants (including applicable forms and data sheets) - proposed attachments to be included in the RFP - requirements regarding specification of pricing (e.g. time-based, lump sum, reimbursable, …) - currency arrangements - terms of reference describing contract overall and for individual personnel - selection method - technical and financial evaluation criteria to be used to evaluate proposals - cost estimate - clear statement regarding borrower’s method for domestic preferences - insurance and bond requirements - draft contract to be awarded, including special provisions - borrower’s shortlist of consultants to receive the RFP

Critical examination of draft RFP documents to ensure: * overall quality of the documents * completeness of the RFP documents package * accuracy and exhaustiveness of information contained in the documents

c. The proposed members for the RFP evaluation committee must be representative of all relevant stakeholders and have sufficient expertise

Examination of composition of the committee and request of information on the background of certain members (if necessary) in order to ensure participation of all relevant parties and adequate expertise

10 Indicate whether or not this review step was completed. All negative answers must be justified in the Observations column 11 Indicate degree of compliance of the consulting services procurement process with the requirements. All exceptions must be explained in the Observations column


7

CHECKLIST 4 PRIOR REVIEW PROCEDURES: PROCUREMENT OF CONSULTING SERVICES (2/2)


Result of review

Observations

2. After technical evaluation of consultants’ proposals a. The receipt and opening of proposals was conducted in accordance with established rules and procedures

Review of the proposals opening minutes to ensure presence of committee members and compliance with procedures

b. The technical evaluation includes the following elements: - description of the main events in the selection process (advertising, establishment of the shortlist, expressions of interest, withdrawals of firms before proposal submissions, delays, complaints from firms, extension of proposal submission date, etc.) - brief description of meetings and actions taken by the evaluation committee - analysis of strengths and weaknesses of each proposal in relation to the evaluation criteria - summary of the results of the technical evaluation (including detail of scores) - annexes detailing technical scores/ranking given to each firm on each evaluation criterion and scores given by each individual member of the evaluation committee - award recommendation

c. The evaluation of bids by each individual committee member must be evidenced by score cards, evaluation sheets, etc.

Review of the technical evaluation report in order to ensure: * adequacy of proposals and consultants’ qualifications with TOR requirements * compliance of proposal evaluation and comparison process with established rules *strict adherence to the evaluation criteria and selection method set out in the ITB * use of evaluation sheets, score cards, etc. by each member of the evaluation committee * proper reflection of the individual evaluations in the final scores and overall ranking of technical proposals * fairness and transparency of the entire evaluation process

d. The draft contract must be essentially identical to the draft provided in the bidding documents package

Review of draft contract to ensure it reflects all provisions indicated in the RFP documents

3. After financial evaluation of consultants’ proposals (not applicable to quality-based, qualifications-based, single source selection and individual consultant selection) a. The financial evaluation includes the following elements: - an account of adjustments made to the prices of the proposals - correction of arithmetic errors - currency conversion - adjustment for nonmaterial deviations - determination of the evaluated price - the award recommendation - an annex with the minutes of the public proposals opening (see 2.a. above)

Review of the financial evaluation report in order to ensure: * compliance of financial evaluation process with established rules * correct determination of the evaluated price * award recommendation based on the best overall score



8

CHECKLIST 5 – PROCUREMENT EX POST REVIEW PROCEDURES (1/2) Country Project name Loan number Procurement plan coverage period Withdrawal application # Supervision mission # - Date Requirements Focus of review procedure Done


Observations

1. At Headquarters a. Procurement documents submitted to IFAD’s ex post review as part of requests for approval of withdrawal application must: - include bidding documents, evaluation reports, award recommendations, copies of signed contracts and updated contract record - be sent to IFAD prior to the first disbursement request

Review of ex post procurement documents submitted in relation with withdrawal application to ensure: * timely submission by PMU * completeness of submission

b. Procurement actions are reviewed by IFAD on a sample basis

Selection of a sample of procurement transactions from the WA using 2 criteria: * representativeness of transactions (type and size of procurement) * prior project performance

c. Procurement actions must be: - in conformity with applicable rules and procedures, approved AWPB and procurement plan - within the limit of funds available under the relevant expenditure category

Critical examination of procurement documents to ensure: * conformity with applicable rules and regulations * coherence with AWPB and procurement plan * funds availability (against IFAD loan status records)

LEGEND WA Withdrawal Application SOE Statement of Expenditure

12 Indicate whether or not this review step was completed. All negative answers must be justified in the Observations column 13 Indicate degree of compliance of the procurement process with the requirements. All exceptions must be explained in the Observations column


9

CHECKLIST 5 – PROCUREMENT EX POST REVIEW PROCEDURES (2/2) Requirements Focus of review procedure Done

(Y/N) Result of review Observations

2. During supervision missions a. As part of the review of procurement under the SOE modality, the following is made available to the IFAD supervision team: - all procurement and disbursement files - the updated contract record - the updated individual contract monitoring forms

Review of project procurement and accounting records to ensure the existence and proper maintenance/updating of files

b. Procurement actions are reviewed by IFAD on a sample basis

Selection of a sample of procurement transactions from the SOE using 2 criteria: * representativeness of transactions (type and size of procurement) * prior project performance

c. Procurement actions must be: - in conformity with applicable rules and procedures, approved AWPB and procurement plan - within the limit of funds available under the relevant expenditure category

Critical examination of procurement documents to ensure: * conformity with applicable rules and regulations * coherence with AWPB and procurement plan * funds availability (against IFAD loan status records)

d. An assessment of physical progress of procurement actions and quality of final product must be conducted

e. An assessment of financial progress of procurement actions must be conducted

* Undertaking of site visits for works, examination of goods received, review of consultants’ reports, etc. * Review of accounting records against contract monitoring forms and progress reports * Identification of procurement issues and constraints * Issuance of recommendations for improvement of the procurement process


1

Appendix 2

Procurement Module: Sample Individual Contract Monitoring Form Procurement Module: Sample Contract Record Procurement Module: Sample Summary Procurement Table


2

PROCUREMENT MODULE SAMPLE INDIVIDUAL CONTRACT MONITORING FORM Procurement file #: __________________ Component/Activity: ________________ Description of contract: _______________________________________________________ Project officer: _____________________ Date of no objection: ________________ Name of supplier: __________________ Bank details: _______________________ Address: _________________________ _______________________ _________________________ _______________________

Contract summary Document Number Amount Dates (start-end) Original contract Amendment # 1 Amendment # 2 Amendment # 3 Amendment # 4 Total

Monitoring of payments Payment schedule Approved

progress certificate

Payments issued Balance due on contract

Milestone Amount Number Date Invoice # Date Amount Check # TOTAL

3

Annex 3 – A

ppendix 2

3

PROCUREMENT MODULE SAMPLE CONTRACT RECORD PROGRAMME TITLE ________________________________ IFAD LOAN # ______________ MONTH/YEAR ____________ Date _______________________

1 2 3 4 5 6 7 8 9 10 11 Contract # % of loan Procurement

category Contract date

Name/address of contractor

Description of goods, works or services

Country of origin

Contract duration and delivery date

Contract amount (in currency of contract)

Expenditure category (refer to Loan Agreement Annex)

Remarks/ Date of IFAD no objection


4

SAMPLE SUMMARY PROCUREMENT TABLE

Procurement category Procurement method

Nature of consultation

Applicable rules

IFAD prior review

Goods and services (other than consulting services)

> USD 10 000

ICB if > $100 000 NCB if from $10 000 to $100 000

Open competition Open competition

IFAD National rules

Yes

Source: Loan agreement, IFAD Procurement Guidelines, National Public Procurement Code

Yes

< USD 10 000 Quotations from 3 suppliers - RFQ

Limited competition (small value)

National rules No

Works All amounts NCB Open competition National rules Yes Individual Consultants All amounts Selection based on

comparison of at least 3 CVs

Limited competition (limited number of suppliers and/or highly specialized services)

IFAD Yes

Consulting firms All amounts RFP Limited

competition (same) National rules Yes

Legend ICB: International Competitive Bidding NCB: National Competitive Bidding RFQ: Request for Quotations CV: Curriculum Vitae RFP: Request for Proposals

ANNEX 4

SAMPLE MATRIX OF RESPONSIBILITIES BETWEEN IFAD/PMU AND BORROWER IN PROCUREMENT PROCESSES

Annex 4

1

SAMPLE MATRIX OF RESPONSIBILITIES Task PMU IFAD BorrowerPreparatory activities Procurement plan (including proposal for grouping in lots/packages)

R A I

Purchase requisition R - - Pre-qualification of bidders Invitation to pre-qualify and pre-qualification documents R N.O - Evaluation of submissions and list of pre-qualified bidders R N.O I Goods and works > USD 10 000 Technical specifications R - - Invitation to bid and draft bidding documents for ICB R N.O C Invitation to bid and draft bidding documents for NCB R N.O C Evaluation of bids R N.O R Contract R N.O A Goods and works < USD 10 000 Technical specifications R - - Request for quotations R - - Evaluation of quotations R - - Purchase order or brief contract R - - Consulting services Terms of Reference R - - Request for proposal (firms) and draft RFP documents R N.O C Request for expression of interest (individuals) R N.O C Technical evaluation R N.O R Financial evaluation R N.O R Contract R N.O A Common tasks for all categories of procurement Extension of bid submission deadline R N.O C Bid opening R - C Direct contracting and other waivers of competitive bidding R A I Advance without bank guarantee R A - Contract amendments R A A Contract record R I - Legend R Party Responsible for the action A Approval N.O No objection C In Consultation with I For Information

ANNEX 5

RESPONSIBILITY MATRIX LOAN ADMINISTRATION

INCLUDING PROCUREMENT

Annex 5

ASIA AND THE PACIFIC DIVISION LOAN ADMINISTRATION

WORKFLOW AND ASSIGNMENT OF TASKS

ACTIONS REQUIRED PA CPM RFMO Portfolio Adviser

Loan Asst/FC

Loan Officer/FC Treasury/FT

1. Draft Loan Agreement Review of loan administration provisions/ensure adequate coverage

x x x

Participation in loan negotiations x x x x x 2. Letter to the Borrower Preparation of draft letter x x Final review x x Clearance x Dispatch to Borrower after AP’s signature X X X

3. Procurement Review Review of Procurement Plan in conjunction with AWPB X

Technical Review X Approval of Procurement Plan x Review of procurement documents x Drafting of communications to Project on findings / ”no objection”

X

Approval/dispatch of communications on procurement x

4. Loan Disbursements 4.1.Withdrawal Application/Checklist

Preparation of Checklist X X Entry of WA in Tracking Sheet x X Processing and review of WA x X Final review and certification of WA x X

Overall review and approval of WA X

Follow up on pending issues and partial WA and maintain “items pending” file

X

Process requests for amendment and reallocation of funds X

Maintain project disbursement file and conduct periodic reconciliations with LGS records

X

1

Annex 5


Loan Asst/FC


4.2. Payment Order Preparation of draft X X Approval of draft X Review accuracy of PO Assignment & control of sequential number X X

Approval of PO Dispatch to Loans & Grants Administration Section of FC X

4.3. Payment Order Logbook Recording, maintenance & control X Preparation of statistics X 4.4. Communication to PMU on WA findings

Drafting & sending of routine disbursement matters x

Drafting and sending of complex disbursement matters b x x Review and

clear

4.5. Withdrawal Authorization Data entry of PO in LGS x Undertake FC checking steps x Generate withdrawal authorization x Review and approval of withdrawal authorization x

4.6. Payment of W/Authorization

Data entry of W/A in People Soft x TA Creation of SWIFT message to IFAD depository bank x TA

Verification, approval and dispatch of SWIFT message x TO

Data entry of provisional and actual value date of payment in LGS

x TA

4.7. Payment Advice Generation/printing of advice from LGS x

(Dispatch to Borrower, PMU, et al by Print Shop)

2

Annex 5


Loan Asst/FC


4.8. Special Commitment 4.8 (a) Issuance of SC Letter Preparation of Checklist x Initial review of WA x Certification of WA x Preparation of SC Letter x Review and approval of SC Letter x Controller Maintenance and control of SCL issued x

Dispatch of SCL to bank x 4.8 (b) Payment Request from Bank

Checking of SC payment details/availability of SC funds x

Preparation of PO x Approval of PO x 4.9. Contract Payment Summary

Creation and update of contract data x

Control and review of payments x 4.10. Special Account Recovery Control

Approval of recovery rate x Monitoring and control of recovery x x Reconciliation with LGS x 4.11. Special Account Letters In 2 stages: After payment of Initial Deposit and at start of recovery process

Drafting of letters x Review of letter x Clearance of letter x ( as

necessary)

Approval x Dispatch to Borrower x 4.12. Closure of Loan Account Undertake closing steps x x Review and control x Undertake loan closing procedures x Approval of loan closure x Advice to Borrower x

3

Annex 5


Loan Asst/FC


5. Audit Report Review of auditor’s TOR x x x AO Approval of TOR X Monitoring of Audit Report Submission X x AO

Review of Audit Report x x x AO Review and follow-up of audit recommendations x x x AO

Drafting of communications to Project on audit matters x AO

Approval of communications x X 6. Monitoring of Portfolio Performance (quarterly) X

PA Programme Assistant CPM Country Programme Manager RFMO Regional Financial Management Officer PA Portfolio Adviser TA Treasury Assistant TO Treasury Officer AO Audit Officer FC Loans Unit

4

IFAD Procurement Guidelines revised 2008

Business

Transcript of IFAD Procurement Guidelines revised 2008