Overall Considerations Economy & efficiency Equal opportunity to all eligible bidders Fairness, integrity, transparency & good governance Development of domestic capacity Competition as per procurement methods prescribed in the Guidelines & specified in the project’s approved proc plan

Project Specific Considerations Procurement of Goods, Works & consulting services shall be: In accordance with loan agreement Executed within project implementation period Within budget allocations of LA Consistent with the Project’s approved annual work plan and its 12-month procurement plan Conducive to achieve Best value for money

Procurement Triangle Time Cost Quality

Procurement Methods – Goods/Works International Competitive Bidding Limited International Bidding National Competitive Bidding National Shopping Direct Contracting Commercial Practice Force Account

International Competitive Bidding Suited to high-value requirements International business community are interested in participation Provides all eligible bidders timely & equal opportunity to compete

National Competitive Bidding Governed by National Law and Procedures & is appropriate when: Foreign bidders are not interested Amounts are small & local prices are below international market levels Nature of goods & works – dispersed geographically and/or over time Works are labour-intensive

National Competitive Bidding Advertising limited to national press, official gazette & free open-access website Bidding documents in national language National Procedures must provide for adequate competition, access, objective evaluation, transparency & provisions for bidders’ protests Payment in local currency

National Shopping Appropriate for : No formal bidding documents Low Value goods & works Off-the-shelf goods or simple works Standard specification commodities No formal bidding documents Requests for quotations to provide description and quantity of goods, delivery time and place Written quotations Quotations by telex, facsimile or e-mail acceptable

National Shopping At least three quotations at evaluation (to ensure competitive prices) Goods available from more than one source No public bid opening of quotations Brief contract or Purchase order

Direct Contracting or Single Source Selection Accepted by IFAD for: Extension of existing & usually competitively-awarded contract Rationale: Standardisation Proprietary items Process design requires critical items from specific supplier as condition of contractor providing performance guarantee In exceptional cases such as response to natural disaster

Procurement with Community Participation It is not a specific procurement method Simplification of standards of procurement Accepted by IFAD in the Poverty Reduction and Rural Development Projects Project’s role to review, supervise and guide the procurement and implementation of activities. Decided during design

Considerations during design Country Legal Framework Organizational capacity Capacity and technical skills Administrative and accounting skills Cost benefit analysis Beneficiary community’s contribution

Community Groups as Implementing Agencies Competitive contracting applying agreed procurement methods Supervision of contracted provider of works, goods or services

Community Groups as provider of goods, works or services directly It is an implementation modality within project design Agreed with IFAD after design May act as contractor on a commercial basis As a contributor to the project – beneficiary contribution