Procurement in Projects Financed by Islamic Development Bank Presented during Project Start-up Workshop September 2015, Jakarta, Republic of Indonesia Project Procurement (PPR) Division Operations Policy And Services Department (OPSD)

05. Managing IsDB Procurement Project Start-up Workshop

Documents and reports are incomplete or lack of critical information Steps and procedures are not followed or wrongly executed Carried out post- instead of pre-qualification Lack of advertising reduces or limits competition Weak qualification evaluation (for prequalification or short-listing) resulting in non-qualified consultants or bidders listed Weak contract packaging Weak or unclear evaluation criteria Evaluation criteria is not consistently applied Procurement process or due diligence does not comply to General Principle of Procurements Disqualification of firms are insufficiently or incorrectly justified Technical scores are insufficiently substantiated Lack of competition Case of complaints Long review process Project Procurement Division, OPSD 3 Republic of Indonesia, September 2015

Some procurement steps requires a minimum time period – Advertising – Preparation of expression of interests or prequalification application – Preparation of proposal or bid Standard template has to be used – Advertising, prequalification, bid document, RFP document, evaluation report Evaluation, and particularly ‘disqualification’, should be fully justified based on the procurement documents as well as principles of procurement (economy, efficiency, transparency, equal opportunities) – In most cases clarifications can be accepted and should be permitted with specific conditions For evaluation with scoring (e.g. consultant proposal), ‘numbers’ have to be substantiated with appropriate explanation – E.g. on strengths and weaknesses of the proposal – ‘extreme’ scores (zeroes, high or low score) Requirement Project Procurement Division, OPSD 4 Republic of Indonesia, September 2015

Based on level of responsiveness No bid or proposal shall be rejected at bid opening except for late submission Needs to exercise due diligence to justify rejection of a bid or proposal Sufficient documentations and justifications should be provided to IDB for review Rejection of a Bid Project Procurement Division, OPSD Republic of Indonesia, September

Factor Affecting Responsiveness Project Procurement Division, OPSD 6 Republic of Indonesia, September 2015 Deviation a departure from the requirements Reservation limiting conditions or withholding from complete acceptance of the requirements Omission failure to submit part or all of the information or documentation required

“Substantially Responsive Bids” Project Procurement Division, OPSD 7 Republic of Indonesia, September does not have any reservation or material deviation, or omission, i.e. one that…...substantively affects the scope, quality, or performance of the works or services...is inconsistent with the bidding documents, substantively limits the Employer’s rights or the Bidder’s obligations under the Contract; …if rectified, would affect unfairly the competitive position of other bidders presenting substantially responsive bids

No material deviation, reservation, or omission. Determination is based on the contents of the bid itself If substantially responsive, any nonconformities in the bid that do not constitute a material deviation, reservation or omission may be waived. If substantially responsive, nonmaterial nonconformities related to the Bid Price shall be rectified and adjusted for comparison purposes to reflect the price of a missing or non-conforming item or component. If substantially responsive, necessary information or documentation may be submitted within a reasonable time to rectify nonmaterial nonconformities. Such request shall not be related to any aspect of the price of the bid. Failure of the Bidder to comply with the request may result in the rejection of its bid Substantially Responsive Bid Project Procurement Division, OPSD 8 Republic of Indonesia, September 2015

has a shorter validity period than required. is not accompanied by a substantially responsive bid security is received after the deadline for submission of bids (will be returned unopened) offers a completion date beyond the maximum designated period is not substantially responsive to the Bid’s requirements When shall a bid be rejected? Project Procurement Division, OPSD 9 Republic of Indonesia, September 2015

linked to corrupt, fraudulent, collusive, coercive or obstructive practices. contains an adjustable price quotation (for fixed price bid). does not meet minimum acceptable standards of completeness, consistency and detail. When will a bid be rejected Project Procurement Division, OPSD 10 Republic of Indonesia, September 2015

Fails to include all information or documentation required by the bidding document. Its bidder attempts to influence the employer in the evaluation of the bids or contract award decisions. Its bidder does not provide clarifications by the date and time set by the employer Its bidder fails to comply with the request to rectify nonmaterial nonconformity. When a bid may be rejected? Project Procurement Division, OPSD 11 Republic of Indonesia, September 2015

Rejection of ALL Bids No ‘substantially’ responsive bids High and unreasonably priced bids Lack of competitions NOL REQUIRED Project Procurement Division, OPSD Republic of Indonesia, September

Resources Project Procurement Division, OPSD 13 Republic of Indonesia, September 2015 IDB IDB Bulletin IDB Website Consultant Database Media Local international Website: Associations Federation of Consultants from Islamic Countries (FICIC) Federation of Contractors in Islamic Countries (FOCIC)

Question and Answer Project Procurement Division, OPSD 14 Republic of Indonesia, September 2015

Thank You Project Procurement Division Operation Policy and Services Department prepared by Amirmehdi Asghari Senior Project Procurement Specialist معا ً نبني مستقبلا ً أفضل Together we build a better future Ensemble nous construisons un avenir meilleur Project Procurement Division, OPSD Republic of Indonesia, September