Very Small-Value Procurement Under World Bank/IDA Small Grants, Loans and Credits Zagreb Regional Procurement Training Feb. 27 – March 3, 2006

2 Very Small-Value Procurement  For a specific project, only those methods and procedures which are considered appropriate for the project are included (or referred to) in the loan/credit or grant agreement.

3 Very Small-Value Procurement Manual Very Small-Value Procurement Manual Structure  Instructions:  Part I - small value procurement below $10,000  Part II - small value procurement above $10,000.  Attachments - sample forms of  ITQs,  RFP,  Evaluation Reports,  Contracts

4 Part I. Small Value Procurement Below $10,000  Operating Manual  referred to in the Loan/Grant Agreement  Register (List) of Potential Suppliers, Contractors and Consultants  meeting simple benchmark requirements – turnover, staff, references  Unit Price Reference Register  to be updated every 6 months

5 Part I. Small Value Procurement Below $10,000  Comparison of Prices for goods  Comparison of Prices for works  Selection of consultants  Direct Contracting or Sole Sourcing  Financing “Operating Costs ”

6 Part I. Small Value Procurement Below $10,000 Direct Contracting or Sole Sourcing if provided in the Loan/Credit/Grant Agreement  Procurement of proprietary items, such as licensed materials,  Required items available only from the manufacturer,  Extension of an existing works contract for additional works (up to 20% of the original contract value),  There is only one supplier, contractor or consultant in the grant-funded project area and in the neighboring areas,  The justification of this method must be documented and kept on file

7 Part II. Small Value Procurement Above $10,000  Shopping for Goods  Shopping for Works  Selection of a firm based on Consultant’s Qualification (CQ)  Selection of Individual Consultant

8 Shopping for Goods (SG) and Works (SW)  Clause 3.5 of the Red Guidelines Shopping: Price quotations obtained from several (min. 3) suppliers / contractors, to assure competitive prices. Readily available off-the shelf goods or standard specification commodities of small value, or simple civil works of small value. Requests for quotations shall indicate the description and quantity of the goods or specifications of works, as well as desired delivery (or completion) time and place. Quotations may be submitted by letter, facsimile or by electronic means. The evaluation of quotations shall follow the same principles as of open bidding. The terms of the accepted offer shall be incorporated in a purchase order or brief contract. Bank often verifies if quotations are legitimate.

9 Shopping for Goods  Invitation to Quote (ITQ)  Form of Contract  Form of Quotation  Evaluation Form

10 Shopping For Works  Invitation To Quote (ITQ)  Section 1 – Specifications  Section 2 – Bill of Quantities/Priced Activity Schedule  Section 3 – Drawings  Form of Contract  Form of Quotation  Evaluation Form

11 Selection Based on Consultant’s Qualifications (CQ)  Clause 3.7 of the Green Guidelines Shopping For small assignments for which the need for preparing and evaluating competitive proposals is not justified. Select from short list the firm with the most appropriate qualifications and references The selected firm should be asked to submit a combined technical-financial proposal and then be invited to negotiate the contract The Borrower shall publish in UNDB and dgMarket the name of the consultant to which the contract was awarded (may be done quarterly in a summarized table)

12 Selection Based on Consultant’s Qualifications (CQ)  Sample Format for Request of Expressions of Interest  Evaluation Report on Qualifications and Experience of Consultants  Request for Proposals (RFP)

13 Request for Proposals (RFP)  Request for Proposals  Technical Proposal Submission Form  Entity’s References  Relevant Services Carried Out in the Last Three Years that Best Illustrate Qualifications  Sample Format of Curriculum Vitae (CV)  Cost Estimate of Services and Schedule of Rates  Terms of Reference (TORs)

14 Terms of Reference (TORs)  Background information on the project  Objective/s of the assignment  Scope of Work  Expected Outcomes  Qualification requirements and basis for evaluation (evaluation criteria)  Duration of the assignment and estimated time input  Reporting requirements

15 Selection of Individual Consultant  Sample Format of CV  Evaluation Report

16 Sample Contract for Simple Consulting Services  Small Assignments Time-Based Payments  Annex A:Terms of Reference and Scope of Services  Annex B:Consultant’s Reporting Obligations  Annex C: Cost Estimate of Services, List of Personnel and Schedule of Rates  Small Assignments Lump-Sum Payments  Annex A:Terms of Reference and Scope of Services  Annex B:Consultant’s Personnel  Annex C:Consultant’s Reporting Obligations