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Transcript of PUBLIC PROCUREMENT MANAGEMENT & OVERSIGHT: A Comparative Perspective PUBLIC PROCUREMENT MANAGEMENT &...
PUBLIC PROCUREMENTPUBLIC PROCUREMENTMANAGEMENT & OVERSIGHT:MANAGEMENT & OVERSIGHT:A Comparative PerspectiveA Comparative Perspective
Public Financial Management Reform ProgramADB Grant 0133-CAM
14 – 16 June 2010
AgendaAgenda Introduction and Workshop Objectives
Overview: Public Procurement◦ Objectives◦ Management of the System◦ Accountability
Comparison of Public Procurement Systems: Fully Developed & Developing- United States of America- Republic of Indonesia- Royal Government of Cambodia
PFM Reform Program: Roadmap of Procurement Assistance to Cambodia
Conclusion
Introduction and Introduction and ObjectivesObjectivesIn December 2004, the Royal
Government of Cambodia, through MEF, desired the establishment of an effective and efficient PFM system with a 10-year planning and implementation period.
As a part of these longer-term reforms, the PFM in Rural Ministries Project, financed by ADB Grant 0133-CAM, aims to strengthen the capabilities of procurement officials the three rural development ministries, MAFF, MRD and MOWRAM
Components: Grant Components: Grant ProgramProgramComponent 1: Improve Public Financial
Management Capacity in Rural Development
Ministries
Component 2: Strengthening Capacity for Internal Auditing
Component 3: Strengthening Debt Management
Component 4: Strengthening the Effectiveness of the National Audit Authority
Workshop Objectives:◦ Compare the public procurement
management systems, and related accountability, of the USA (a developed country) and Indonesia (a developing country) as a reference point for the Royal Government of Cambodia
◦ Commence the process to enhance the
procurement capabilities of officials serving at the three rural ministries. This will be accomplished through a series of capacity building initiatives, this being the first.
◦ Provide: The characteristics of a full-developed, well-
functioning public procurement system; and The initiatives undertaken by the Republic of
Indonesia to reform its procurement system.
Overview of Public Overview of Public ProcurementProcurement
Public vs. Private Procurement
Management of the Public System
Accountability
Public procurement is the use of public funds to acquire needed public goods and services
The primary objective of a fully-developed, well-functioning public procurement system is to acquire these goods and services at fair and reasonable prices. Social objectives; such as to ensure the growth and development of Cambodian suppliers, consultants and other service providers, are secondary objectives.
What is effective management of a country’s public procurement system?
A system that consistently acquires needed public goods and services at fair and reasonable prices is one indicator that it is well-functioning and well-managed.
Another indicator is free and open competition among private sector firms who have confidence in the fairness and integrity of the system
Fraud, waste and abuse will be minimized
Accountability helps to ensure the system is answerable for its actions:
◦Role of Internal Audit: General Inspectorate
◦External Audit: Supreme Audit Institution
◦Other checks and balances: Stakeholders
Comparison of Procurement Comparison of Procurement SystemsSystems
- United States of America
- Republic of Indonesia
USA Public Procurement USA Public Procurement SystemSystem
Public Procurement in the Public Procurement in the USAUSA
The US federal government spends approximately $530 billion annually for a wide range of goods and services
US system is characterized by:◦Centralized planning and policymaking◦Decentralized procurement function
Well, if not overly, managed (checks and balances)
Internal and external accountability checks
Involves all three branches of government
◦ Legislative Branch: enacts laws, such as the Federal Acquisition Regulation (FAR) which was promulgated as United States Code (USC)
◦ Executive Branch: implements laws. The Office of Federal Procurement Policy (OFPP) operates within the Office of Management and Budget
◦ Judicial Branch: interprets laws and regulations
Legislative RoleLegislative Role
Federal Acquisition Regulation (FAR)◦The FAR is the primary regulation for use
by all Federal Executive agencies in their acquisition of supplies and services
◦The FAR became effective on April 1, 1984◦Permits fixed-price, fixed-price incentive
and cost-type and multi-year contracts◦The FAR provides for public participation,
small business set asides and other “socially” desirable objectives
Executive RoleExecutive RoleThe OFPP in the Office of Management
and Budget plays a central role in shaping the policies and practices federal agencies use to acquire needed public goods and services. Similar to Cambodia’s Department of Public Procurement
OFPP was established by Congress in 1974 to provide overall direction for government-wide procurement policies, regulations and procedures and to promote economy, efficiency, and effectiveness in acquisition processes.
Judicial RoleJudicial Role
More than 90% of all bid protests and performance disputes are amicably resolved without judicial intervention
Binding and Non-Binding ArbitrationHierarchy of courts for aggrieved
parties to appeal public procurement actions
Board of Contract AppealsCourt of Claims
Other CharacteristicsOther Characteristics
Stable cadre of well-trained, highly compensated procurement professionals, bound by an enforced code of conduct
Neutral and impartial fora to resolve bid protests and performance disputes
Procurement opportunities are widely-advertised and available in print form and on government websites
Both Pre- and Post- Award Audits
Evolution of the US Evolution of the US SystemSystemProcurement through the 1960’s
◦Fraud, abuse and corruption
Three Key Reforms in the 1970’s◦Cost Accounting Standards Board
(CASB)◦Public Law 87-653 Truth in
Negotiations◦Foreign Corrupt Practices Act of
1977
Public Procurement in Public Procurement in IndonesiaIndonesia
GOI not yet enacted a Public Procurement LawProcurement is governed by adopted decreesMinimal judicial intervention (untrustworthy)BANI Arbitration (also viewed as untrustworthy)Before 1984: highly centralized
◦ Even a typewriter. . .◦ Team 10
From 1984 - 94: relaxed centralization for economic reasons; however competition, transparency & fairness were minimal.
Non-competitive awards to politically connected individuals and corporations were common
Public Procurement Reform Public Procurement Reform (1992 – 1996)(1992 – 1996)Broad-based, longer term reform
initiativeBased in the Coordinating Ministry
for Economic AffairsLed by a senior, well-respected
officialPolitical will for reform (New Order Regime)
Economics supported the reform initiative
GOI initiative that was financially supported by ADB, USAID and WB
Broad-Based Support for Broad-Based Support for ReformReform 14 ministries and 10 state-owned
enterprises (SOEs)
Procurement Review and Policy Analysis Group (PRPAG) formed to:
◦ review and improve the Indonesian government's basic rules, regulations and practices relating to government procurements to improve the efficiency, transparency and openness of the government procurement system;
◦ improve the government’s procurement oversight and management capabilities;
◦ develop standard curricula for government-wide procurement training;
◦ conduct a series of capacity building activities; including workshops, seminars and a training-of trainers (TOT) program, to help ingrain and institutionalize the expected new government procurement decree and implementing regulations into a cohesive, well-functioning Indonesian government procurement system; and
◦ develop a system to disseminate timely and accurate information on government procurement policies, practices, and actions to both the public and private sectors.
Public Procurement ReformPublic Procurement ReformAccomplishmentsAccomplishments
PRPAG drafted a new Presidential Decree in 1 yr
Draft decree was adopted in April 1994PRPAG drafted a comprehensive
implementing Public Procurement ManualGOI’s Oversight and Management Capabilities
were StrengthenedStandard Curricula for Government-wide
Procurement Training was DevelopedAdvertising Procurement Opportunities
Required
Procurement Related to Overall Procurement Related to Overall Financial Management ReformFinancial Management ReformIndonesia’s FMR Commenced in 1998
In April 2001, the Ministry of Finance organized a “Financial Management Reform Committee”
In November 2001, the Committee set forth its “Principles and Strategy” to improve public expenditures management
Law17/03 concerning “State Finances” was enacted on 5 April 2003
Law 01/04 concerning “State Treasury” was enacted on 9 January 2004
Law 10/04 concerning “Law on Legislation” was enacted on 22 June 2004
Law15/04 concerning “Audit on State Finances Accountability” was enacted on 19 July 2004
Law 32/04 on “Regional Governance” and Law 33/04 on the “Fiscal Balance between the Central and Regional Governments” (Decentralization Laws) were enacted on 19 October 2004
Law 15/06 concerning “State Audit Board” was enacted on 30 October 2006
Keys to Indonesia’s FMR Keys to Indonesia’s FMR SuccessSuccessBroad-based involvementConsensus developmentSenior, well-respected Indonesians ledStakeholder consultationsMulti Donor SupportNationwide Dissemination of Newly-
Enacted laws and Newly-Adopted Regulations
Extensive Public Awareness Seminars & Workshops
Hierarchy of Indonesian Hierarchy of Indonesian Laws & RegulationsLaws & Regulations
Based on Law No. 10 of Year 2004
◦1945 Constitution◦Law or Government Reg in Lieu of a Law
◦Government Regulation◦Presidential Regulation◦Regional Regulation
.
.
.
SupremeCourt
SupremeCourt
BPKBPK
State Ministry for Administrative Reform
State Ministry for Administrative Reform
Government Boundaries
1945 Constitution
PresidentPresidentConstitutionalCourt
ConstitutionalCourt
DPDDPD
State Ministry for BUMN
State Ministry for BUMN
RegionalGovernments
Minister
Echelon1 Inspectorate
General
Line UnitsLine Units
Line Units
Central Government
SPI
BUMN
SPISPIBUMNBUMN
SecretarySecretary
GovernorGovernor
Line UnitLine Unit
BawasdaBawasda
DPRDDPRD
Bupati/MayorBupati/Mayor
Line UnitLine Unit
BawasdaBawasda
SecretarySecretary
DPRDDPRD
MoHAMoHA
JudicialCommission
JudicialCommission
MPRMPR DPRDPR
SPI
BUMD
SPISPI
BUMDBUMD
Legend: Ministry and Non Ministry Agency Level
Provincial Level
District
Command
CoordinationAudit Mandate
Audit Institutions
Audit Reporting
BPKPBPKP
Summary ComparisonSummary Comparison
US System Indonesian System
Law Yes NoRegulations Yes YesPre-Award Yes NoPost-Award Yes YesAdvertising Yes YesJudicial Yes NoWritten Opin Yes NoArbitration Yes Yes*Cadre Yes NoGW Training Yes YesAccountable Yes Yes
Cambodia’s Current Public Cambodia’s Current Public Procurement SystemProcurement System
As yet, Royal Government of Cambodia does not have a deeply-rooted public procurement law
The regulatory framework consists of Sub-Decrees and Amendments, easily changeable
Procurements and Privately-financed Build-Own-Operate (BOT) Projects are grouped together
Accordingly, Cambodia may wish to consider expediting the legal and regulatory framework to facilitate the capacity building and institutional development initiatives being undertaken
Cambodia’s Procurement Cambodia’s Procurement Regulatory FrameworkRegulatory Framework Procurement Sub-Decree No. 105 dated October 28, 2006; Procurement Sub Decree dated June 8, 1995; Procurement Sub-Decree No. 14 dated February 26, 2007; Implementing Rules and Regulations Governing Public Procurement
(IRRPP), amended on September 2, 1998; Draft Implementing Rules and Regulations on Public Procurement and
Procurement Manual for Goods, Works and Services (to be approved); Procurement Manuals for Externally Financed Projects/Programs in
Cambodia (Vols. 1-3) dated September 2005; Prakas No. 45 on the Implementation on Deconcentralization for Public
Procurement dated January 31, 2005; Instructive Circular on Procurement Planning Guidelines No. 12 dated
December 7, 2006 Supplementary Instructions of Prakas No. 319 on Rules and Regulations
of Public Procurement dated 31 August 1995
Effectively Three Systems◦Procurements financed by the State
Budget◦Donor-Supported Procurements (SOP/PM)◦Independent Procurement Agent (IPA)
Significant capacity building needsProcurement officials are (or appear
to be) assigned routine administrative work, without decision-making authority (PRC)
Government not yet able to decentralize the procurement function due to capacity deficiencies
MEF awarded contract to Independent Procurement Authority (IPA) to carryout World Bank-financed procurements on behalf of the Government.
At some point in the near future, the ministries will be required to assume these IPA duties (approx 200 procurements/year)
PFM Reform Program: PFM Reform Program: Roadmap of Procurement Roadmap of Procurement Assistance to Royal Government Assistance to Royal Government of Cambodiaof CambodiaFocused on 3 rural development
ministries
Training and capacity building in all procurement related matters under ◦the deconcentrated procurement sub
decrees for procurement under national budget and
◦within the scope of SOPs and PM
On-the-Job (OTJ) TrainingMentoringCoachingNational and International
Procurement Specialists will work with the 3 ministries
Specific objectives on the following slides
Strengthen capacity in procurement planning and monitoring and assisting in preparing the Annual Procurement Plan and the Project Procurement Plan;
Strengthen capacity to monitor and evaluate the performance of the public procurement system;
Clarify lines of accountability within the procurement process, including effective oversight guidelines and identify key internal controls in budget execution
Strengthen the capability to monitor and evaluate procurement progress and conformance procedures and in preparing regular procurement reports to MEF and other agencies;
Update databases on procurement status and use procurement website to post information on procurement processes and contract awards; and
Establish good practices to ensure efficient functioning of the PRCs.
Implementation Structure
Funding AgencyADB
Executing AgencyMinistry of Economy &
Finance
MRD MAFF MOWRAM
Department of Investment & Cooperation
PFM Committee
PFM Reform Secretariat
Economic & Finance Institute
ManilaBank Headquarters
Cambodian Resident Mission
PFM Working Group
PFM Working Group
PFM Working Group
CONSULTANTS
SUB- WORKING GROUPS PFM
Public Procurement ManagementPublic Procurement Management Public Financial Management for Public Financial Management for Rural Development Program Rural Development Program (PFMRP) (PFMRP)
Donor-Assisted ProcurementsDonor-Assisted ProcurementsCarried Out UnderCarried Out Under
SOP/PM ProceduresSOP/PM Procedures
47
The Procurement ManualThe Procurement Manual
Policies and procedures for the procurement of goods, works, and consulting services
For Externally Financed Projects / Programs in Cambodia
48
Project CycleProject Cycle
49
Evaluation 61
Identification
2Preparation
3 Appraisal
4 Loan/Grant Negotiation & Board Approval
5Implementation
PFMRP Procurement PlanPFMRP Procurement Plan
The Procurement plan specifies the following procurement methods
1. International Competitive Bidding (ICB)2. National Competitive Bidding (NCB)3. National and International Shopping (NSH
& IS)4. Selection based on Consultants
Qualifications (CQS)
The training material for the PFMRD project will focus on the above procurement methods
50
Economy and EfficiencyEconomy and EfficiencySuitability of the
goods/equipment/services purchased.The useful life.Operating, maintenance and servicing
costs.Availability of after sales service The delivery period.Onward transportation costs.Storage costs.The time taken to procure the goods
51
EquityEquityEligible suppliers provided equal
opportunitiesEnsure equitable grounds for
competition A fair basis on which to compete
52
Ethical StandardsEthical StandardsCode of Business Ethics
◦No individual shall use his authority or office for personal gain
◦An individual shall seek to maintain and enhance the reputation of the Government
◦Conflict of interests & personal relationships
◦Confidentiality and accuracy of information ◦All shall be treated with fairness and
impartiality ◦No business gifts will be accepted ◦A moral and ethical responsibility to
report any unethical conduct
53
Fraud and CorruptionFraud and Corruption“corrupt practice” “fraudulent practice” “collusive practices” “coercive practice”The ADB will cancel the portion of the
Grant/Loan allocated to the contract Declare a consultant or firm ineligible Permit the Government and the WB to
inspect accounts and records
54
Conflicts of InterestConflicts of InterestDeclare any potential conflicts of
interest Bidders and consultants with
potential conflict of interest are not eligible
Firms hired for project design, and implementation are not eligible to provide goods, works or services
55
Transparency in the Procurement Transparency in the Procurement ProcessProcess
The general procurement notice Specific procurement notices UN Development Business on
line Development Gateway’s dg
Market News Paper of national
circulation (The above requirements are mandatory for
all ICB contracts)56
Procurement Roles and Procurement Roles and ResponsibilitiesResponsibilitiesManual on Standard Operating
Procedures for Foreign Assisted Projects MEF will undertake an oversight roleMEF representative on the Procurement
CommitteeFor EAs as provided in the
project/grant agreement Financial limits at which decisions can
be determined at the start of each project
57
Project Management Units Project Management Units A Project Management Unit
(PMU) with the delegated authority to implement the project
The PMU acts as the focal point for project implementation
It undertakes all of the core procurement activities required for the project
58
Procurement Responsibilities Procurement Responsibilities
Project Director◦Approves and signs contracts, invoices
and important procurement documents ◦A member of the procurement
committee◦Overall responsibility for ensuring that
the ADB and the Government’s Procurement Guidelines are followed
◦Ensures that all mandatory reports are issued on time
59
Procurement Responsibilities/ …Procurement Responsibilities/ …Cont.Cont.Project Manager
◦ Approves and signs contracts, invoices and procurement documents below an agreed threshold
◦ A member of procurement committee◦ The primary contact for all formal
communications relating to procurement
◦ Ensures that all procurement monitoring and reporting is undertaken in a timely and efficient manner
◦ Leads all negotiations ◦ Chairs and supervises all bid openings
60
Procurement Responsibilities/ …Procurement Responsibilities/ …ContContSenior Administrative Officer
◦ Assists the Procurement Officer to draft the overall project procurement plan
◦ Assists the Procurement Officer in the monthly updating of the overall project procurement plan
61
Procurement Responsibilities/ …Procurement Responsibilities/ …ContContChief Financial Officer
◦ Supervises the management of all financial transactions and payments
◦ As a member of the procurement committee, undertakes financial pre or post qualification review
◦ Attends bid openings, verifies and records the bid securities that may be required
◦ Receives and arranges for the safe keeping of all bid securities
62
Procurement Responsibilities/ …Procurement Responsibilities/ …Cont.Cont.Technical Officer
◦ Drafting, or supervising the drafting of, all specifications, scopes of work and terms of reference
◦ Assisting the Procurement Officer in selecting the appropriate evaluative criteria, special conditions of contract and contractual performance indicators
◦ Manage and administer the implementation of contracts
◦ Monitors and evaluates progress and performance of technical staff, consultants, and contractors
63
Procurement Responsibilities/ …Procurement Responsibilities/ …ContContProcurement Officer
◦ Drafting and updating the project’s general procurement notice (GPN)
◦ Quantify the goods works and services required ◦ Group the goods works and services required into
packages ◦ Preparing the overall project procurement plan ◦ Update the overall project procurement plan each
month ◦ Drafting specific bidding documents ◦ Prepare and issue through the Project Manager
Specific Procurement notices◦ Submit the documents through the Project
Manager to the WB
64
Procurement Procurement Responsibilities/..Cont.Responsibilities/..Cont.Procurement Officer◦ Distribute copies of the Invitation for Bids to all
relevant firms ◦ Distribute the bidding documents ◦ Respond to all clarification requests received ◦ Ensure that the venue for bid opening is adequate
and that logistical arrangements are in place◦ Receive all bids and proposals ensuring their
secure storage ◦ Undertake the public opening of bids ◦ Review and pass all bid securities to the Financial
Officer at bid opening◦ Undertake preliminary evaluation of all bids and
proposals ◦ Facilitate the technical evaluation of all bids and
proposals received65
Procurement Responsibilities/ …Procurement Responsibilities/ …ContContProcurement Officer◦Seek clarifications to bids and proposals as
required to complete the evaluation ◦Draft the Bid Evaluation Report for review ◦Respond to queries raised on the evaluation
report from oversight agencies or the ADB◦Prepare draft contracts◦Ensure that the relevant oversight agencies
are provided with copies of contacts◦ Issue the notification of award◦Draft the documentary requirement for any
letter of credit ◦Monitor suppliers/contractors/consultants
performance against the contract 66
Procurement Responsibilities/ …Procurement Responsibilities/ …ContContProcurement Officer
◦Review all payment requests received ◦Ensure that either the performance
security or retention monies are in place to adequately protect the Government
◦Ensure that all performance securities and retention monies are returned to the supplier or contractor upon the satisfactory completion of their contractual obligations
◦Act as The Secretary to the Procurement Committee
67
The Procurement The Procurement CommitteeCommitteeReview the scope of each
procurement package prior to commencement
Review all Bidding Documents (BD) and Requests for Proposals (RFP)
Attend and supervise the public opening of bids and proposals
Review evaluation and approve evaluation reports for goods and works
Individually and independently undertake the evaluation of proposals
68
Procurement Committee Procurement Committee Formation and ThresholdsFormation and Thresholds
Committee on minor procurement◦ review and approve all goods up to the
value of US$ 25,000 ◦ review and approve all works contracts up
to to the value of US$ 50,000◦ Review and approve all service contracts up
to the value of US$ 5,000.Chaired by the Project Manager and
include the Project Technical Officer and a representative of MEF
69
Procurement Committee Procurement Committee Formation and ThresholdsFormation and ThresholdsGeneral committee on procurement
◦ Review and approve all goods ranging in value: US$ 25,000 - 500,000
◦ Review and approve all works contracts to the value: US$ 50,000 - 3,000,000
◦ Review and approve all service contracts from US$ 5,000 - 500,000
◦ Individually and independently undertake the evaluation of all contract proposals
70
Procurement Committee Procurement Committee Formation and ThresholdsFormation and ThresholdsGeneral Committee on Procurement
◦Chaired by the Project Director. The members will be the Project Manager, one representative from the EA (and not a member of the PMU) and one or two representatives from MEF at the discretion of MEF.
◦In the event that MEF only designates one representative for a particular meeting the Project Financial Officer will be invited to become a Committee member for that meeting.
71
Procurement Committee Procurement Committee Formation and ThresholdsFormation and ThresholdsMajor Committee on Procurement
◦ review and approve all goods above the threshold value : US$ 500,000
◦ review and approve all works above the threshold value : US$ 3,000,000
◦ Review and approve services above $500,000
◦ Individually and independently undertake the evaluation of all contract proposals above the threshold value
72
Procurement Committee Procurement Committee Formation and ThresholdsFormation and ThresholdsMajor Committee on Procurement
◦Chaired by the Head of the EA or a duly authorized representative
◦Project Director ◦One representative appointed by the
head of the EA ◦Two representatives from the MEF
73
Procurement Committee Procurement Committee Formation and ThresholdsFormation and ThresholdsThe Project Director or MEF may
invite any number of observers to the meetings of each Procurement Committee meeting
In the event that authority or approval is required by a Committee member from his/her parent organization, the Chair of the Committee will set a deadline for obtaining such approval
74
Methods of Procurement Methods of Procurement The Procurement of GoodsThe Procurement of Civil WorksThe Procurement of Consulting
Services
75
Methods of Procurement, Methods of Procurement, GoodsGoods
International Competitive Bidding (ICB)
Limited International Bidding (LIB)
National Competitive Bidding (NCB)
Shopping (NS or IS - either national or international)
Direct Contracting (DC)
76
Methods of Procurement, Methods of Procurement, GoodsGoodsInternational Competitive Bidding (ICB)
◦In most cases the preferred method;◦Must adopt the ADB’s standard documents; ◦Used when the value is above US$100,000;◦Provides a wide range of choices from
competing suppliers; ◦Provides the suppliers (or potential suppliers)
adequate, fair and equal opportunity; ◦Advertised both nationally and internationally
77
Methods of Procurement, Methods of Procurement, GoodsGoods
Limited International Bidding◦ Identical to ICB, the same standard
document of the World Bank is used but no advertising
◦ The goods or equipment is highly specialized and there are only a limited number of suppliers
◦ The items are proprietary ◦ For an urgent repeat order
78
Methods of Procurement, Methods of Procurement, GoodsGoodsNational Competitive Bidding
◦Value is below US$100,000 or as stated in the Loan/Grant Agreement
◦Advertised nationally ◦All suppliers both foreign and national are
eligible to bid ◦No domestic preference is applicable ◦Standard National Competitive Bidding
document issued by MEF◦Use of this document for NCB is mandatory
79
Methods of Procurement, Methods of Procurement, GoodsGoodsShopping (International and
National) ◦For values below US$ 20,000◦Compares the priced quotations ◦Above US$5,000 will be advertised ◦Quotations are sealed and opened in
public◦Used for off the shelf items, when
standardization is important and exceptional circumstances as approved by MEF/ADB
◦Uses standard bidding documents issued by MEF
80
Methods of Procurement, Methods of Procurement, GoodsGoods
Direct Contracting (DC)◦Should be used as little as possible ◦No competition◦For procurement of less than $500◦The contract is negotiated ◦May be used in exceptional cases
with the prior approval of MEF/WB
81
Methods of Procurement, Methods of Procurement, WorksWorksInternational Competitive Bidding (ICB)
◦In most cases the most appropriate method ◦Used when the value is above US$300,000◦Must use the WB’s standard bidding
documents◦Provides a wide range of choices from
competing contractors ◦Provides the contractors adequate, fair and
equal opportunity ◦Advertised both nationally and internationally ◦Open to all who purchase the bidding
document
82
Methods of Procurement, Methods of Procurement, WorksWorks
Limited International Bidding◦Identical to ICB, the same standard
document of the ADB is used but no advertising
◦The works are highly specialized and there are only a limited number of contractors
◦The works are proprietary ◦For an urgent repeat order
83
Methods of Procurement, Methods of Procurement, WorksWorksNational Competitive Bidding
◦Value is below US$300,000◦Advertised nationally ◦All contractors both foreign and national
are eligible to bid ◦No domestic preference is applicable ◦Standard National Competitive Bidding
document ◦Use of this document for NCB is mandatory
84
Methods of Procurement, Methods of Procurement, WorksWorksShopping (International and
National) ◦For values below US$ 20,000◦Compares the priced quotations ◦Above US$5,000 it will be advertised ◦Quotations are sealed and opened in
public◦Used for off the shelf items, when
standardization is important and exceptional circumstances as approved by MEF/ADB
◦Uses standard documents issued by MEF
85
Methods of Procurement, Methods of Procurement, WorksWorks
Direct Contracting (DC)◦Should be used as little as possible ◦No competition◦Only when specifically allowed under
the projects Loan/Grant agreement◦May be used in exceptional cases
with the prior approval of MEF/ADB
86
Methods of Procurement, Methods of Procurement, WorksWorksForce Account
◦ Government’s own workforce, equipment and resources are used
◦ The quantities of works can be defined in advance
◦ Works are small and at scattered locations
◦ There is a natural disaster or similar emergency needing immediate attention
◦ Has the endorsement of the MEF/ADB
87
Methods of Procurement, Methods of Procurement, ServicesServices
All service procurement with the exception of single source must be advertised nationally. Service procurements above $100,000 must be advertised internationally
88
Thank You!