Inter-American Development Bank Works, Goods and Consulting Services in projects financed by IDB April PROCUREMENT

Project Procurement Division Topics Overview Procurement of Goods and Works / Selection of Consulting Services Procurement Policies Distribution of responsibilities in the Procurement Process Where to find information&documents

Programming IdentificationPreparation Analysis Negotiation and Approval Execution and Supervision Borrower & Bank Borrower & Bank Bank Borrower & Bank 6 Months4-8 Years Borrower & Bank PROJECT OUTLINE PROCUREMENT PLAN Project ReportProject Concept Document Programming Borrower & Bank Project Procurement Division Project Procurement Cycle

Procurement Process Identification of needs (Procurement Plan) Advertising Last day of last warranty for Goods and/or Works Prequalification Bidding Signing of Contract Acceptance of Services, Goods and/or Works Execution Warranty Preparation Invitation to Prequalified Applicants to bid Project Procurement Division

Process for Selection of Consulting Services Request for Proposals Clarifications Proposal Submission Proposal evaluation Bid result and notification Public Access to Database Contract Signing Procurement Plan Short List of Firms to be invited Request of expresions of interest (Advertising) Public Proposals opening Project Procurement Division

Public Bidding for Works and Goods Procedures Request of Proposals (Advertising) Bidding documents Clarifications Bid Submission Payment for documents Bid evaluation Public bid opening Bid results & notification Public Access to Database Contract Signing Procurement Plan Project Procurement Division

Business Opportunities at IDB Procurement contracts with IDB, mainly consulting services on project preparation support ~ 5% Procurement contracts with Executing Agencies in projects financed by IDB works, goods consulting services ~ 95% Project Procurement Division

IDB Procurement Policies Bank’s Policies and Practices reflect best practices used worldwide. Apply for IDB-financed projects to all procurement financed by the Bank Project Procurement Division

IDB Procurement Policies IDB Procurement Policies Apply since 2005 Resulted from the harmonization process, with other MDBs Almost identical to those used by the World Bank Basic difference: Eligibility Nationality Origin of goods Project Procurement Division

IDB Consultant Policies Sections I: Introduction II: Quality and Cost Based Selection III:Other Methods of Selection IV:Types of Contracts & Important Prov. V:Selec. Of Individual ConsultantsAppendices I:Review by the Bank II:Instructions to Consultants III:Guidance to Consultants IV:Procurement in Loans to the Private Sector Project Procurement Division

IDB Goods and Works Policies Sections I: Introduction II: International Competitive Bidding III:Other Methods of ProcurementAppendices I:Review by the Bank II:Other Methods of Procurement III:Guidance to Bidders IV:Procurement Loans Private Sector Project Procurement Division

Publicity General Procurement Notice (GPN) * –Published once within 30 days of loan’s approval by the Board of Directors in: United Nations periodical “Development Business” (online) IDB’s web site - Procurement Portal immediately thereafter: * Includes all the projects bidding processes Project Procurement Division

Publicity Specific Procurement Notice (SPN)* –Required for International Competitive Bidding (ICB) - published in: United Nations periodical “Development Business” (online) IDB’s web site - Procurement Portal immediately thereafter –Required for National Competitive Bidding (NCB) published in: The Country’s official web site for advertising government business opportunities; or One local newspaper of wide circulation * Includes all the specific processes Project Procurement Division

Procurement Financed by IDB *** Bank Responsibilities Oversees the application of IDB procurement policies and procedures Reviews the procurement process ex-ante or ex-post (based on evaluation of institutional capacity) to determine adherence to IDB procurement policies Project Procurement Division

Issue clear and balanced bidding documents * Provide sufficient time for bidders to prepare bids Provide timely responses to bidders’ questions Evaluate bids based only on criteria established in bidding documents Award the procurement contract Communicate results to all parties Address complaints promptly and fairly ***Executing Agency’s Responsibilities * Most of them already standardized Project Procurement Division

***Bidder’s Responsibilities Carefully analyze ALL requirements of the bidding documents or request for proposal documents Strictly comply with the instructions and specifications-terms of reference in the bidding/request for proposals documents Require clarifications to documents in writing Review bid/proposal for compliance with the requirements before submitting Submit bid/proposal with enough time to arrive before deadline Project Procurement Division

Goods and Works Who is Awarded the Contract? lowest evaluated bid price substantially responsive to the bidding documents The Bidder whose bid has been determined to have the lowest evaluated bid price and is substantially responsive to the bidding documents. Project Procurement Division

best evaluated proposal The Consulting Firm with the best evaluated proposal depending on the selection method. Six selection methods: Quality & Cost Based Selection (QCBS) Quality Based Selection (QBS) Least Cost Based Selection (LCBS) Fixed Budget Based Selection (FBBS) Selection Based on Qualifications (CQS) Single Source Selection (SSS) (non competitive) Consulting Services Who is Awarded the Contract? Project Procurement Division

Difference in procedures from procurement of Goods and Works: Emphasis on technical competence/capacity and qualifications over price Invitations are sent to a Short List of pre-selected Consulting Firms (6) Consulting Services Selection Characteristics Project Procurement Division

Bidders/Consulting Firms may submit a complaint in writing at any stage of the procurement process Procurement process is not suspended when complaint is submitted Contracting Agency resolves the complaint If Bank determines that its procurement policies have not been adhered to, Bank declares misprocurement Bank cancels portion of the loan allocated to the process that was declared misprocured. Procurement Process Right to Complain Project Procurement Division

e-GP is the use of electronic information technology (especially Internet) by governments in conducting their procurement relationships with suppliers for the acquisition of works, goods and consulting services required by the public sector. Benefits of e-GP: EnhancedTransparency Enhanced Transparency Enhanced Efficiency Enhanced Efficiency Promotes Economic Development Promotes Economic Development Project Procurement Division Electronic Government Procurement (e-GP)

Where to Find the Bid Notices Request for Expression of Interest Development Business: DB Online: US $550/ year United Nations Development Business Online United Nations Development Business Online ( IDB Procurement Web Site - free of charge: IDB PROCUREMENT PORTAL - MAIN MENU ( Project Procurement Division

Procurement Web Page RSS RSS stands for “Really Simple Syndication”. It is an easy way to stay updated automatically with relevant information from specific websites. Automated notifications will appear every time your favorite websites post something new. To enable this, a Web site will make a feed, or channel, available, just like any other file or resource on the server. Project Procurement Division

Project Procurement Division

Tips Familiarize yourself with IDB Procurement Policies and Standard Procurement Documents Check the Procurement Portal of the IDB web site to learn about: Projects Pipeline Follow up on Projects in Execution Consider joint ventures with local firms Learn local business practices Project Procurement Division

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