ASARECA Procurement guidelines Goods and Works

PROCUREMENT OF GOODS By P rocurement and C ontracting Officer ITAZA MUHIIRWA

Procurement Steps Prepare preliminary equipment and other goods list. For works prepare detailed designs and bills of quantities. Prepare cost estimates ( Works ) Prepare bidding documents Seek approval for the bidding documents Advertise

Procurement Steps cont--- Issue bidding documents Review and evaluate bids Select lowest cost evaluated bidder Prepare evaluation report Seek approval for Evaluation report

Procurement steps continued ……….. Award Contract Delivery place should be specified in the bidding document Receive goods and inspect for compliance Works are inspected by a consultant who issues a certificate for payment at agreed stages. Install and commission (goods ) Payment ( certificate for works, and invoice and goods received note for goods ) Supplier to train users if it is part of the contract Conduct project procurement evaluation

Methods of procurement of goods International competitive Bidding - ICB Is the preferred procurement method for goods Affords opportunity to all eligible prospective bidders from all countries How is it determined - by value usually above USD 200,000 and US5,000,000 for works - Or when goods are to, be imported and require payment in foreign currency

ESSENCE OF ICB Adequate notification Equal opportunity -Time for bid submission -Fair conditions of contract -Broad specifications Transparency Public bid opening Disclosure of evaluation criteria Equal treatment of Bidders - Apply criteria without discrimination - No negotiation Award to the lowest evaluated responsive bid, meeting the specified evaluation criteria

ICB PROCEDURES One stage / single step – - One bid is submitted - is the commonest -Least contentious Two stage Bidding -two envelopes -Technical and price submitted separately but at the same time Technical evaluation is done first and price proposals for the compliant firms are opened

Industrial Projects First stage Invite technical proposals including qualifications details Evaluate discuss and finalize technical specifications Second stage Invite bids on revised bids from qualified bidders only

Other methods of procurement of goods These methods are to be adopted Where ICB would not be most economical and efficient method of procurement and where other methods are deemed more appropriate. -The other methods must satisfy economy and efficiency -Must ensure competition -Transparency and value for money

Limited International bidding Essentially ICB but in this case there is limited production by a few entities therefore there is direct invitation to the few known suppliers to bid/ selected bidders of proven capacity. The invitation should be sent to at least two countries – there is no open advertising This method is used where Contract values are small There are only limited number of f suppliers and other exceptional reasons justifying the use

NATIONAL COMPETITIVE BIDDING Competitive bidding advertised nationally for procurement of goods or works which by nature or scope are unlikely to attract foreign competition. Local currency is specified Foreign bidders allowed if they are interested Foreign bidders are to be paid in local currency The contract values are small Goods are available at prices below the international market Prepare bidding document – Use Bank standard bidding documents

National Competitive Bidding---- Approve bidding documents Advertise in National news paper Bidding period 4-6 weeks Evaluate Prepare evaluation report Approve evaluation report AWARD

Shopping Shopping is a procurement method based on comparing price quotations obtained from several proven foreign or national suppliers At least three quotations are compared to ensure competitive prices Used for Procuring small amounts off shelf goods or standard specification commodities Used for procurement in emergency projects or for urgent relief type operations

SHOPPING CONT----- Requests for quotation shall indicate the description and quantity of goods as well as the desired delivery time Under international shopping quotations should be solicited from at least two countries There is no requirement for public opening Shopping is intended to be very simple But note that it is the least competitive and therefore should not be abused

Direct Contracting Direct contracting without competition may be an appropriate method under the following circumstances Extension of existing contracts for works or goods awarded with procedures acceptable to the Bank Standardization of equipment or spare parts to be compatible with the existing equipment In exceptional cases such as response to natural disasters

Bidding documents Standard bidding document for ICB Section 1 instructions to bidders Section 11 Bid data sheet Section 111 Evaluation and qualification criteria Section iv Bidding forms Section v Eligible countries

Bidding documents …….. Part 2 Supply requirements Section VI Schedule of requirements Part 3 Section VII General conditions of contract Section VIII Special conditions of the contract Section IX Contract forms

Bid security The purpose of the bid security is to protect the buyer against bidders conduct Buyer has an option of asking for a bid security The bid security shall be for the amount and and as per the form specified in the bidding document Bid security shall be specified amount usually between2-5% of the estimated cost of goods Bid security is to remain valid for 4 weeks beyond bid validity Bid security may be in the bid currency or any other convertible currency

Evaluation An evaluation report is prepared for approval by sub grantee/ASARECA/Bank Notice of award is sent to bidder Contract is signed

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