Pre qualified Contractors or Professional Contractors: Role of BPP in stopping quackery in the Water Industry Presented by Engr. Emeka Ezeh OFR Director-General, BPP November, 2013

Introduction Two (2) critical factors required for successful procurement of a water project are:  a good Contractor (for proper execution); and  a good Contract (to enhance implementation) Prequalification is the first procedural step in selecting the right Contractor.

Why is Prequalification necessary? To evaluate the technical competencies of bidders. To reduce the number of bidders to a sensible and economic level. To eliminate bidders that lack technical and financial capacities to successfully execute the Project. To engender stiffer competition as a result of improved chances of winning.

The Water Sector is highly specialized! Procurement in the Water Sector is not an all comers affair. Evaluation criteria should therefore be:  skewed in favour of companies that possess cognate experience on water related projects  project specific and not generic in order to address the peculiarities of the procurement  precise and clear to avoid ambiguity  drafted to permit the widest possible competition and make a clear statement of the required standards of workmanship to be provided.

Fundamental Principles of Technical Evaluation A distinct prequalification is required for procurements of works above N300 million. only the criteria set out in the prequalification documents should form the basis for scoring and grading bidders. Mandatory criteria are assessed on a simple pass/fail basis. Bids that fail to meet any of the mandatory criteria are considered non- responsive.

Fundamental Principles of Technical Evaluation The reasons for declaring a bid non- responsive must be clearly documented in the Evaluation Report. Only bids that meet the mandatory criteria will be subjected to point rating as applicable. The procuring entity should allot higher points to technical criteria.

Fundamental Principles of Technical Evaluation Cont’d Mandatory criteria considered during Technical Evaluation include evidence of:  Incorporation with the Corporate Affairs Commission  Payment of taxes and Tax Clearance Certificate  Registration with PENCOM  ITF contributions  compliance with SGF Circular Ref No SGF/OP/I/S.3/VIII/271 of 5 th October, 2011 on job creation

Fundamental Principles of Technical Evaluation Scored criteria that should be evaluated during prequalification are:  General Experience of the Firm in the Water Industry  Similar water projects handled  Key Technical Personnel with experience in water-related projects  Annual Turnover  Three Years Audited Account  Construction Equipment  Site Organization

Summary Prequalification is about the most important step in selecting the right Contractor. Procurement in the Water Sector is not an all comers affair Evaluation Exercise should eliminate quacks from the bidding process. Highest points should be allotted to technical criteria The responsibility of ensuring that only competent Contractors are prequalified rests strictly upon the procuring entity 9

Where to Get More Information Further information can be obtained from the BPP Website at or The Office of the Director-General, Bureau of Public Procurement (BPP) at No 11 Suleiman Barau Crescent, State House, Abuja 10

Thank You !!! 11