1. The Private Sector and the Caribbean: Working Together for Development June 23, 2010 Procurement Policies and Procedures for Goods, Works and Consulting Services for the Public Sector M. Teresa Soto-Aguilar Project Procurement, Financial Management and Portfolio Monitoring Division (VPC/PDP)

2. 2 I.Overview: Project cycle and procurement process II.Procurement Policies III.Responsibilities in the Procurement Process IV.Basis for contract award and right to complain V.Where to find information and documents Procurement of Goods, Works & Consulting Services – Topics Overview

3. 3 Identification Preparation Analysis Approval Execution and Supervision 6 Months 4-8 Years Project Profile PROCUREMENT ARRANGEMENTS Loan Proposal Project Operational Document Programming Procurement Process I) Overview: Project cycle and procurement process

4. 4 Procurement process: Who are your counterparts? Procurement contracts with Executing Agencies in projects financed by the IDB Goods & Works Consulting Services Procurement contracts with the IDB Consulting services for project preparation, technical cooperation 95% 5%

5. 5 II) IDB Procurement Policies – for Sovereign Guaranteed Operations Basic Policy Principles: Economy, Efficiency, Transparency, Equality, Competition and due process – Apply in general to IDB financed operations Current Policies adopted in Jan. 2005: GN-2349-7 ( http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=774392) GN2350-7 ( http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=774394 ) Almost identical to those used by other MDB’s Basic differences:  Eligibility  Nationality  Origin of goods

6. 6 Basic Policy Principles: Economy, Efficiency, Transparency, Equality, Competition and due process are observed Appendix 4 of Policies (GN2349-7) (GN2350-7) Borrower (generally private sector) responsible for procurement Private sector/commercial procurement practices acceptable to the Bank IDB reviews such practices/procedures to ensure the result in competitive market prices and needs of project are met. IDB loan proceeds must be used to procure goods, works and services from IDB member countries. IDB Procurement Policies - Provisions for Non Sovereign Guaranteed Operations (NSG)

7. 7 When providing guarantees for NSG:  Selection procedures for support in project preparation are requested from a shortlist  Registration available to firms: www.iadb.org/resources/business/doingBusiness/formConsultant.cfm When SCF Department lends to Sovereign Guarantee Borrowers, both Policies GN-2349-7 and GN-2350-7 apply fully for this portion of the loan.

8. 8 Specific Procurement Notice (Advertising) Bidding documents Clarifications Bid Submission Payment for documents Bid evaluation Public bid opening Bid results & notification Public Access to Database Award of Contract and Signing Procurement Plan Procurement Process for Works and Goods

9. 9 Procurement Process for the Selection of Consulting Services Issuance of Request for Proposals Clarifications Proposals Submission Proposal evaluation Proposals results and notification Public Access to Database Award of Contract and Signing Procurement Plan Short List of Firms to be invited Request of expressions of interest (Advertising) Technical Proposals opening-Evaluation- Price Proposals Opening-Evaluation

10. 10 * Includes all the projects bidding processes Procurement Policies - Publicity General Procurement Notice (GNP) * Published once within 30 days of loan ’ s approval by the Board of Directors in:  United Nations periodical “ Development Business ” (online)  IDB ’ s web site - Procurement Portal immediately thereafter: http://www.iadb.org/procurement

11. 11 Specific Procurement Notice (SPN)* Required for International Competitive Bidding (ICB) - published in:  United Nations periodical “ Development Business ” (online)  IDB ’ s web site - Procurement Portal immediately thereafter Required for National Competitive Bidding (NCB) published in:  The Country ’ s official web site for advertising government business opportunities; or  One local newspaper of wide circulation Procurement Policies – Publicity (Cont.)

12. 12 Procurement Methods for Goods and Works Procurement Plan specifies the method to be used for each Procurement process All methods open to bidders from member countries Methods: International Competitive Bidding (ICB) National Competitive Bidding (NCB) Shopping (comparison of at least 3 price quotations) NCB may be used for procurement under the threshold amounts

13. 13 Days from publication of Specific Procurement Notice (SPN) to deadline for submission of bids or submission of Prequalification Request Prequalification Applications 45 days Bids  Goods 45 days  Small Works 45 days  Major Works 90 days Goods and Works Prequalification & Bid Preparation Time

14. 14 Days from publication of SPN to deadline for submission of proposals Request for Expressions of Interest 14 days Request for Proposal (shortlist: 6 firms) 30 days Consulting Services Proposal Preparation Time

15. 15 Issue clear and balanced bidding documents Provide sufficient time for bidders to prepare bids Provide timely responses to bidders questions Evaluate bids based only on criteria established in bidding documents Award the procurement contract Communicate results to all parties Address complaints promptly and fairly Executing Agency Responsibilities III) Responsibilities in the procurement process

16. 16 Carefully analyze ALL requirements of the bidding documents or request for proposal documents Strictly comply with the instructions and specifications-terms of reference in the bidding/request for proposals documents Require clarifications to documents in writing Review bid/proposal for compliance with the requirements before submitting Submit bid/proposal with enough time to arrive before deadline Bidder’s Responsibilities Responsibilities in the procurement process

17. 17 Bank Responsibilities Oversees the application of IDB procurement policies and procedures Reviews the procurement process ex-ante or ex-post (based on evaluation of institutional capacity) to determine adherence to IDB procurement policies Responsibilities in the procurement process

18. 18 For Goods & Works: The Bidder whose bid has been determined to have the lowest evaluated bid price and is substantially responsive to the bidding documents IV) Basis for contract award and right to complain Basis for contract award for goods and works

19. 19 The Consulting Firm with the best evaluated proposal depending on the selection method Six selection methods:  Quality & Cost Based Selection (QCBS)  Quality Based Selection (QBS)  Least Cost Based Selection (LCBS)  Fixed Budget Based Selection (FBBS)  Selection Based on Qualifications (CQS)  Single Source Selection (SSS) (non competitive) Basis for contract award for consulting

20. 20 Difference in procedures from procurement of Goods and Works:  Emphasis on technical competence/capacity and qualifications over price  Invitations sent to a Short List of Consulting Firms (6) Consulting Services Selection Characteristics

21. 21 Bidders/consulting firms may submit a complaint in writing at any stage of the procurement process Procurement process is not suspended when complaint is submitted Contracting Agency resolves the complaint If Bank determines that its procurement policies have not been adhered to, Bank can declare misprocurement  Bank cancels portion of the loan allocated to the process that was declared misprocured Right to File a Complaint

22. IDB dedicated web page to HAITI www.iadb.org/haiti/?lang=en 22 VI) Where to find information and documents IDB procurement portal Free www.iadb.org/procurement United Nations Development Business on line: US $550/ per year www.devbusiness.com www.devbusiness.com

23. 23 Type of Procurement Special Provisions WorksGoodsConsulting firms Threshold amounts (US$000) ICBShoppingICBShopping Shortlist comprising entirely national firms >1,000<1,000>250<250<100 Advertising Mandatory on UNDB and IDB website National optional National or international invitation Mandatory on UNDB and IDB website National optional National or international invitation N/A Time periods for prequalification Minimum 1 week N/AMinimum 1 week N/A Time period for receiving bids Minimum 2 weeks Minimum 3 business days Minimum 2 weeks Minimum 3 business days Minimum 2 weeks Limited International Bidding Time period: Minimum 2 weeks Minimum 3 firms Time period: 2 weeks minimum Minimum 3 firms N/A HAITI - Special procurement provisions to address the emergency caused by the 12 January 2010 earthquake (OP-387-1) These procurement provisions are available in addition to current IDB Procurement Policies.

24. 24 IDB Haiti

25. 25 IDB Haiti

26. 26 Once you are on the IDB’s Internet Website, you can select Businesses to go to the Procurement Website. IDB Portal

27. 27 Where to find information

28. 28 Where to find information

29. 29 Where to find information: www.iadb.org/procurementwww.iadb.org/procurement

30. 30 IDB Procurement Portal – Projects in the Pipeline

31. 31 RSS stands for “Really Simple Syndication” It is an easy way to stay updated automatically with relevant information from specific websites Automated notifications will appear every time your favorite websites post something new To enable this, a Web site will make a feed, or channel, available, just like any other file or resource on the server Procurement Web Page RSS

32. 32 IDB Procurement Notices

33. 33 Questions?

34. 34