1. 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

2. 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

3. Procurement Triangle
Time
Cost
Quality

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

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

6. 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

7. 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

8. 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 acceptable

9. 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

10. 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

11. 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

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

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

14. 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