1. THE PROCUREMENT PROCESS (PROCUREMENT METHODS, PROVISIONS ON PROCEEDINGS AND STANDARD DOCUMENTS)

3. THE PROCUREMENT PROCESS
THE PROCESS IN CONTEXT
TANGIBLE &
INTANGIBLE OUTPUTS
Goods
Services
Facilities
Efficiency
Accountable and Transparent
Procurement
FINANCIAL RESOURCESS
GOSL Budgetary Allocations
Proceeds from Donors
Own Generated funds
Other Sources
THE PROCUREMENT PROCESS
PROCEEDINGS THAT WILL ENSURE :
Policy Objectives and Procedures are complied
Procurement Methods are followed
Standard Bidding Documents are used
Controls and Thresholds are observed
Review Actions are undertaken
Records are kept for Audit

4. Principles of Good Public Procurement Procedure (understanding the dilemma)
Economy:
Focuses on price and other criteria including quality, delivery, whole life costs.It does not necessarily mean cheapest price
Efficiency:
Timeliness in the execution of procurement actions. Focuses on procurement time planning, time consciousness and lack of bureaucracy

5. Principles of Good Public Procurement Procedure
Transparency
Rules on the bidding procedures must be clear and accessible to all potential bidders
Criteria for evaluation must be known to bidders
Equal opportunity and treatment to all bidders.
No discrimination in the bidding process.

6. Preamble of the Public Procurement Act, 2004
That Public Procurement processes shall be conducted by ensuring Value for Money in public expenditure.
Value for Money in procurement is:
Procuring at the RIGHT Cost
Procuring at the RIGHT Quality
Procuring at the RIGHT Time
Can all the ‘three Rights be obtained in equal proportion?

7. Resolving the dilemma Need to identify the priority factor or ‘driver’
The ‘driver’ influences the decision-making process of the procuring entity ( Procurement Planning)
What happens when:
Cost is the driver ?
Time is the driver ?
Quality is the driver ?

8. The Procurement Process/Stages
Procurement Stages
Procurement Planning
Notification (advertisements)
Prequalification (where applicable)
Issue Bids
Evaluation
Award of Contracts
Implementation

9. The Bidding Process (Notices)
ADVERTISEMENT OF BIDS
1.1 POLICY
Public Procurement shall be undertaken by means of advertised open proceedings.
1.2 OBJECTIVES
The objectives of the policy on advertisement are to:
Inform the public and Maximize Competition
Provide fair and equal opportunity to all bidders
Ensure transparency of proceedings

10. The Bidding Process (Notices)
1.3 TYPES OF NOTICES
i. General Procurement Notice (GPN)
The GPN is generally required to alert prospective bidders to available budgetary allocations, projects or grants under which there will be procurement of Goods, Works and Services. The notice usually includes information on the funding agency, recipient or implementing agency, estimated value and brief description of the requirements.
The GPN is issued usually in a minimum of 45 days prior to first procurement action.

11. Notices ii. Specific Procurement Notice
The SPN is an advertisement inviting prospective bidders to pre-qualify or bid for specific contracts.
The SPN is to be published in:
newspapers of international and/or national circulation depending on the method of procurement
NPPA website (
Notice boards and Broadcast over radio

12. The Bidding Process (Notices)
iii. Notice of Contract Award
A notice of proposed awards shall promptly be made in the national &/ international print media or on appropriate notice boards prior to contract signature depending on the contract value.
The notice should be issued prior to expiry of bid validity. Unsuccessful bidders have a right to submit an application for review in accordance with section 63 of the Law.

13. PROCUREMENT METHODS CHOICE OF METHODS
Procurement shall be by open bidding to the extent possible;
Splitting of goods and works into small packages to avoid monetary thresholds is not allowed;
Community participation for development of Local Economy or creation of employment through Force Account is encouraged where possible;

14. COMPETITIVE BIDDING METHODS
OPEN COMPETITIVE BIDDING
may include prequalification
may be carried out in single stage or by two stage procedures
May be National Competitive Bidding (NCB)
May be International Competitive Bidding (ICB)

15. NATIONAL COMPETITIVE BIDDING USED WHEN
- Competitive for domestic bidders only
- Estimated contract amounts are:-
Goods :- Le million
Works :- Le million
Advertise nationally and allow minimum period of 4 weeks for bid submission
2 insertions each in at least 2 national print media
Currency of bid is Leones
Foreign bidders are encouraged to participate

16. INTERNATIONAL COMPETITIVE BIDDING (ICB) USED WHEN
Procurements that are unlikely to attract local competition
High value contracts estimated as follows:
Goods : above Le 600 million
Works: above Le 900 million
Minimum bidding period is 6 weeks and advertise:
Nationally as for NCB; and
In at least one international print media on one occasion.
Allow bids in other currencies

17. RESTRICTED BIDDING METHODS
Limited International Bidding
Selective Bidding for Works
Request for Quotation (RFQ)
Sole Source
These methods are applicable where:
Goods, Works and Services are only available from a limited number of bidders or of complex/specialised nature;
Small value contracts that is not efficient to use open bidding.
Open Competitive bidding has failed to identify an acceptable bidder.

18. RESTRICTED BIDDING METHODS (Monetary Thresholds)
GOODS
WORKS
Limited Int’l Bidding
Selective Bidding
Request for Quotation
Sole Source
No limit
Not Applicable
Below Le 60 M
Le 60 – 150 M

19. PROCEDURES FOR RESTRICTED BIDDING
Direct invitation to a list of pre-qualified; pre-registered or known suppliers or contractors.
Use Standard Bidding Documents and Contract Forms.
Bidders must be given adequate time to submit bids as follows:
28 days for LIB
21 days for Selective Bidding
14 days for RFQ and Sole Source

20. RESTRICTED BIDDING Method of Procurement Minimum No. of Bidders
Minimum Period (days)
LIB
Selective Bidding
RFQ
Six (6)
Three (3) 28 21 14

21. SELECTION OF CONSULTANTS: (Request for Proposals)
Applicable selection procedures are:
1. Quality and Cost Based Selection (QCBS)
2. Quality Based Selection (QBS)
3. Fixed Budget Selection (FBS)
4. Least Cost Selection
5. Consultant’s Qualification
6. Single Source Selection

22. REQUEST For PROPOSALS (Choice of Selection Procedures)
QUALITY AND COST BASED SELECTION
Takes into account both the quality and cost of the proposal;
Proposal which offers the optimum balance of quality and cost is selected;
QCBS shall normally be used for consulting services except otherwise stated in the Regulations.

23. REQUEST For PROPOSALS (Selection Procedures cont’d)
Quality Based Selection
Focuses on quality of proposal;
Select highest technical proposal;
QBS is used for:
highly specialised assignments where it is difficult to define precise Terms of Reference;
Assignments with high down stream impact; and
Assignments that can be carried out in different ways and dependent on quality of services.

24. REQUEST For PROPOSALS (Selection Procedures)
Fixed Budget Selection
Selects the highest quality proposal which is within the estimated budget; and
Used for assignments that are simple and TOR can be precisely defined.
Least Cost Selection
Selects the lowest priced proposal which meets the technical requirements; and
Used for assignments of standard or routine nature.

25. REQUEST FOR PROPOSALS (Procedures to follow)
Notice inviting Expression of Interest (EOI)
EOI is to establish a shortlist of Consultants;
EOI should be published at least 30 days;
EOI should be services estimated to be above Le 600 million.
Request for Proposals (RFP) should always be issued to Consultants by using standard documents.

26. REQUEST FOR PROPOSALS (Contents of RFP)
The standard RFP document should contain the following:
Letter of Invitation (LOI);
Instructions to the Consultants on the conduct of the bidding process;
Technical Proposal Forms;
Financial Proposal Forms;
Terms of Reference (TOR);
Standard Form of Contract

27. Standard Bidding Documents
Standard Bidding Documents are to be used
Selection of Bidding Documents should take into account:
Category, value and complexity of the procurement action;
Need to minimise risks and uncertainties for the entity
Effective contract administration
List of standard bidding documents

28. The Bidding Process (Bidding documents )
Bidding Process start with preparation of the Bidding Documents
Purpose of the document:
Instruct bidders on the procedures for bidding
Describes the goods or works to be procured
Inform the bidders of the criteria for evaluation
Defines conditions of contract
Bidding Documents must have ‘issue date’

29. The Bidding Process (Bidding documents )
All completed Bidding Documents must have an ‘issue date’.
The documents must be available to bidders starting from the ‘issue date’ for inspection and collection/purchase at the venue and time specified in the invitation letter/advertisement
Documents should be available until the deadline for closing of bids.

30. The Bidding Process (Bidding documents )
DEADLINE FOR RECEIPT OF BIDS AND PROPOSALS
The deadline for receipt of bids must be specified in the Invitation to Bid or Letter of Invitation. As well as the Bidding Data Sheet. The time allowed is determined with due consideration of the method of procurement being used.
In setting the closing date for the receipt of bids , it is necessary to allow adequate time for bidders to prepare their offers.

31. The Bidding Process (Bid Clarification & Extension of dates )
CLARIFICATIONS
Request for clarification must always be in writing;
Request for clarification received from a potential bidder should be responded to in writing, provided it is received within the stipulated period prior to the deadline for submission of bids. The response should be copied to all who have been issued with the bidding documents without disclosing the source of the enquiry.
Requests for clarifications must be dealt with promptly to ensure that the bidder has adequate time to prepare and submit his bid.
Clarification requiring substantial modification of bids may result in extension of bid closing dates.

32. The Bidding Process (Receipt of Bids)
The bidding documents give clear instructions to the bidders on the procedures to be followed for submission of their bids.
All necessary arrangements must be made prior to bid opening. These should include:
Tender box for the receipt of bids.
The box must be well secured within the administration and should be under lock all of the time.
There should be a register of documents submitted up until the deadline for submission.
The key holder shall not accept any late bids into the box
The tender box shall be presented to the bid opening venue still under key lock and presented to the bid opening committee.

33. The Bidding Process (Bid Opening)
TIME for opening is immediately after deadline and time specified for bid submission
Late bids should not be accepted for bid opening.
Public Bid Opening (bidders or their representatives are allowed to be present) and the following read out:
Bidders name
Bid Form and signature
Bid Amount
Bid Security
Withdrawals or Modifications ( this is first checked or looked for before reading).
Any other comments/information.

34. Bid Opening cont.d
The bid and all of its enclosures will be kept together with envelope and stacked neatly;
The same opening procedure will apply for each bid;
Bidder’s representatives must not be allowed to approach the top table for any thing;
At the request of the bidders representative, bid details may be re- announced;
Specific details of any bids must not be discussed;
Any question relating to the process of evaluation may be answered but only with reference to the bidding document
When details of the last bid has been read out and any questions answered, the public opening will be over;
The representatives should leave the room;
The opened bids should be taken away from the room and kept securely for the evaluation to begin
Rejection of bids: Not allowed in bid opening
All late bids returned unopened
Minutes of the Public Bid Opening shall be written and submitted to Procurement Committee

35. The Bidding Process (Evaluation of Bids)
PURPOSE EVALUATION
The purpose of evaluation is to select for contract award the offer that meets the bid requirements by means of a fair and transparent process of comparison based on pre determined criteria.
Evaluation involves each bid’s responsiveness against the bid requirements and must be consistent with the terms and conditions for evaluation set out in the bidding documents. Bids that are substantially responsive will contain no major deviations to the commercial and technical requirements of the bidding documents.

36. The Bidding Process (Principles of Evaluation)
The general principles of evaluation are:
1. Confidentiality
No information relating to the examination, clarification and evaluation of bids shall be disclosed to bidders or other parties not officially involved in the process;
2. Clarifications
Bidders are not permitted to correct or withdraw any material deviations or reservations once the bids have been opened, if clarifications are required on ambiguities or inconsistencies in a bid, these are acceptable provided no changes in the substance or price of the bid or proposal are sought or accepted;

37. The Bidding Process Notice of Award
3. Transparency
The evaluation process shall be fully transparent based on pre determined criteria and shall identify the specific reasons for the rejection of any bid and for the recommendation of awards.
Notice of Award
Outcome of evaluation shall be published and communicated to all bidders who ask for reasons for not winning. Entities are expected to announce to all bidders prior to contract signature.

38. The Bidding Process (Factors for Evaluation)
At all times the criteria and factors to be used for evaluation should be stated in the bidding documents or RFP. It can be one or a combination of factors including the following:
Price of the Good, Works or Cost of Services;
Time of delivery/completion
Terms of payment
Technical merit, capacity, productivity
Operating cost
Maintenance Cost

39. The Bidding Process (Evaluation Procedure)
PRELIMINARY EXAMINATION OF BIDS
The purpose of preliminary examination is to check the bids received to establish that they are complete, valid and responsive to the bid documents. Minor omissions or obvious mistakes should not be grounds for rejection of bids.
The following are examined:

40. Preliminary Examination cont.d
Properly signed documents;
Accompanied by authorization if applicable
Bid form
Joint venture form
Bid validity
Bid security
Completeness of bid (partial bids)
Missing pages in the original copy of the bid
Substantial responsiveness: major deviations to the commercial requirements are a basis for rejection of bids. Examples of major deviations are:

41. Preliminary Examination cont.d
Fixed price vs. price adjustment
Phasing of contract not conforming to required critical dates
Subcontracting in different amount or manner
Not agreeing to important responsibilities in the bidding documents like performance guarantee or insurance
Refusing to accept local taxes, social security, customs etc
If the bid fails preliminary examination reasons must be clearly given

42. The Bidding Process (Technical Examination)
Only substantially responsive bids are considered for detailed technical examination as follows:
Comparison of bids to technical requirements of the bidding documents;
Quality of samples where applicable
After sales support services/facilities
Material deviations should be disqualified.

43. The Bidding Process (evaluation)
OTHER DETAILED EXAMINATION
Only bids found acceptable will be evaluated further in this phase. The following checks are to be made:
computation errors in bid prices : These are arithmetic corrections that have to be made in the bid prices using the unit prices. These are to be recorded appropriately in the evaluation table.
Corrections for provisional sums: Provisional sums are usually set by the employers consultant for contingencies. These sums are the same for all bids and should therefore be subtracted from the read out prices.
Modifications and Discounts: The impacts of modifications must be fully reflected in the evaluation. Accordingly the original bid price must be modified at this point in the evaluation. Conditional discounts are only applicable after completion of all evaluation steps.

44. Financial Evaluation
FINANCIAL COMPARISON
Bids that have been corrected for all errors and adjustments should be converted to the required currency for comparison as stipulated in the bidding document. The source of exchange rate and the date should be indicated.
RANKING
The converted prices are to be ranked to determine the lowest evaluated bidder and will be recommended for contract award.

45. RECOMMENDATIONS FOR AWARD
RECOMMENDATION FOR AWARD OF CONTRACT
Award of Contract must always be to the lowest evaluated bidder
Selected bidder should not be required:
To reduce price
To undertake work outside the scope specified in the document or,
To modify the bid

46. Post Qualification of Bids
Used to determine physical capability and financial resources of lowest evaluated bidder.
Not applicable when prequalification has been done
Applicable only when procedure is provided in the bidding document.
If the first ranked is rejected on post-qualification, the next ranked should also be subjected to post-qualification.
The rejection must be well justified:
A History of poor performance may be a justification for failing in post-qualification .

47. The Bidding Process EVALUATION REPORT
An evaluation report should be written in the format of NPPA Standard Evaluation Report.
The outcome of evaluation should be submitted to the Procurement Committee for approval before publishing and contract signature.

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END OF PRESENTATION
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