1. INTERNATIONAL COMPETITIVE BIDDING (ICB)
WORLD BANK
INTERNATIONAL COMPETITIVE BIDDING (ICB)

2. INTERNATIONAL COMPETITIVE BIDDING (ICB) – Main Principles
Advance notification
General procurement notice (required)
Announces ICB procurement opportunities
Published in UN Development Business
Publish minimum 8 weeks before release of bidding or pre-qualification documents
Annual updates
Notification before bidding
Specific procurement notice
Request for bids for specific contracts
Published in:
One national newspaper (required)
Official gazette (if any)
Direct notice to firms responding to GPN (required)

3. INTERNATIONAL COMPETITIVE BIDDING (ICB) – Main Principles
Specific UN Development Business (Optional - Yes)
Specific Procurement Notice UNDB (required for contracts more than $10 million)
International Press/Journals (optional)
For large specialized or important contracts notice to be advertised in UNDB, and/or well known technical magazines, newspapers and trade publications
Inform embassies of Bank members (encouraged)

4. INTERNATIONAL COMPETITIVE BIDDING (ICB) – Main Principles
Equal opportunity
Time for bid submission – generally 8 to12 weeks for large contracts but not less than 6 weeks
Fair conditions of contract – use of Bank’s standard bidding documents mandatory
Broad specification (identify mandatory and desirable)
Equal treatment of bidders
Disclose evaluation criteria
Apply without discrimination
Award to lowest evaluated bid

5. INTERNATIONAL COMPETITIVE BIDDING (ICB) – Main Principles
ICB STEPS
Notification /Advertising
(Prequalification) where specified in LN/CR
Issue Bidding Documents
Submission of Bids
Public Bid Opening
Send minutes of Bid Opening to Bank

6. INTERNATIONAL COMPETITIVE BIDDING (ICB) – Main Principles
ICB STEPS (contd.)
Evaluate and prepare report
Selection of the lowest evaluated bid
Post-qualification (when no-prequalification)
Post bid verification (when prequalification)
Contract award
Contract performance
Bank clearance required before taking actions on 1, 2, 3 and 8

7. GENERAL PROCUREMENT NOTICE
PROCUREMENT CYCLE
GENERAL PROCUREMENT NOTICE
CONTRACT PERFORMANCE
AD FOR PRE-QUALIFICATION OR BIDDING
CONTRACT AWARD
PREQUALIFICATION
POST- QUALIFICATION
ISSUE OF BIDDING DOCUMENTS
BID EVAL. SELECTION
PRE-BID CONFERENCE
BID OPENING

8. OTHER PROCUREMENT METHODS
Only when ICB is not appropriate or practical
Must satisfy economy and efficiency requirements
Provides competition to the extent possible
Gets the best value for money (reasonableness of price)
Provides transparency

9. OTHER PROCUREMENT METHODS
Adopt only that method which is specified in LN/CR agreement
Maintain records of all non-ICB methods
Aggregate amounts specified for reach non-ICB method as per loan/credit agreement should not be exceeded

10. OTHER PROCUREMENT METHODS
Limited International Bidding
National Competitive Bidding – Yes
Contracts <US $ 1.0 m; Aggregate US$ 9.0 m;
Prior Review > US$ 100,000
Shopping (International – Yes)
Contracts <US$ 0.1 M:0; Aggregate US$
280,000; Post Review
Force Account
Direct Contracting

11. OTHER PROCUREMENT METHODS (Cont’d)
Minor Works (Yes)
Contracts <US$0.1 M:0; Aggregate US$ 1.2
M:0; Prior Review First 2 contracts
(component 1 year
UN Agencies (UNICEF/ILO/WHO)
Financial Intermediaries (commercial practices)
Community Participation

12. OTHER PROCUREMENT METHODS (Cont’d)
NATIONAL COMPETITIVE BIDDING (NCB)
Appropriate when
Foreign bidders are not interested
Nature of goods and works are dispersed
Cost of ICB disproportionately high
Goods & Works of acceptable quality are available nationally at prices below international prices
Acceptable if
Provide adequate competition
National procedures are reasonable
Documentation adequate
Does not exclude eligible foreign firms
Assure award to lowest evaluated bid

13. OTHER PROCUREMENT METHODS
NATIONAL COMPETITIVE BIDDING (NCB)
National procedures acceptable only when CPAR/Side Letters/Minutes of Negotiations or any other documents identify unacceptable features in national procurement process, if any, and borrower agrees to remove them
(side letter)
National press publication is required
Bidding time should not be less than 4 weeks
NCB document should be prepared and cleared with Bank
(use sample document)
Payment in local currency, national language acceptable

14. OTHER PROCUREMENT METHODS
NATIONAL COMPETITIVE BIDDING (NCB) (contd.)
Bid evaluation criteria must be specified – total cost will be compared including import duty, taxes, etc.
No domestic preference clause is allowed
Foreign bidders if interested should be allowed to bid on same terms and conditions as in NCB document
Award should be made to the lowest evaluated bid
Bank’s prior review required if specified as per LN/CR

15. CHECKLIST COMPARING NATIONAL COMPETITIVE BIDDING PROCEDURES AND WORLD BANK POLICY
YES NO BANK POLICY
Are there eligibility restrictions based on nationality of bidder and/or origin of goods (other than primary boycotts)?
Are there primary boycotts which are established by law?
Are bidding opportunities advertised in the local press?
Are prospective bidders allowed at least 30 days for bid preparation (except for commodities/small goods contracts)?
Are contractors/suppliers pre-qualified for large/specialized contracts?
Are minimun experience, technical and financial requirements (for pre- or post-qualification) explicityly stated in the documents?
Not allowed
Only primary boycotts are acceptable
Required

16. CHECKLIST COMPARING NATIONAL COMPETITIVE BIDDING PROCEDURES AND WORLD BANK POLICY (contd.)
YES NO BANK POLICY
Is an invitation to pre-qualify advertised for each procurement involving large or complex potential contracts?
Are joint ventures with local firms required for foreign firms’ eligibility?
Are joint venture partners jointly and severally liable?
Are there set limitations to the number of firms who can bid for a contract?
Are parastatals allowed to bid?
Required
Not allowed
Acceptable only if they (i) are financially autonomous, (ii) operate under commercial law and (iii) are independent from borrower and its purchasing/ contracting authority

17. CHECKLIST COMPARING NATIONAL COMPETITIVE BIDDING PROCEDURES AND WORLD BANK POLICY (contd.)
YES NO BANK POLICY
Are bidders required to register with local or federal authority as a prior condition for bidding?
Are extensions to bid validity allowed?
Are there restrictions on the means fo delivery of bids?
Is preference given to suppliers or contractors based on region or locality of registration, small size, ethnic ownership, etc.?
Are there restrictions on sources of labor and material?
Should be discouraged. Acceptable only if registration criteria, process and cost reasonable/efficient and qualified foreign firms not precluded from competing
Acceptable only if justified by exceptional circumstances
Not allowed, except when bidders have to submit physical samples. Then they can be required to deliver bids by mail, by courier, by hand, etc.
Not allowed
Not allowed, except for un-skilled labor, if available locally

18. CHECKLIST COMPARING NATIONAL COMPETITIVE BIDDING PROCEDURES AND WORLD BANK POLICY (contd.)
YES NO BANK POLICY
Is public bid opening required? Does it occur immediately or closely following the bid submission deadline?
Is a “two envelope” bid opening procedure permitted for procurement of goods and works?*
Is automatic re-bidding required if too few bids are received?
Is “bracketing” used in bid evaluations?**
Is award made to lowest evaluated qualified and responsive bidder?
Required
Not allowed
Acceptable, provided all responsive bidders are allowed to bid, the process is efficient and no serious delays result
* All technical envelopes are opened first and, after review , price envelopes of all or only qualified/responsive bids are opened in the second round
** Rejection of bids outside a range or “bracket” of bid values

19. CHECKLIST COMPARING NATIONAL COMPETITIVE BIDDING PROCEDURES AND WORLD BANK POLICY (contd.)
YES NO BANK POLICY
Are price negotiations conducted with “winning” bidders prior to contract signature?
Are price adjustment provisions generally used?
Not allowed, except where the bid price is substantially above market or budget levels and then only if negotiations are carried out to try to reach a satisfactory contract through reduction in scope and/or reallocation of risk and responsibility which can be reflected in a reduction in Contract Price. (see Guidelines para 2.60)
Not required, but recommended for works contracts of 1 year or more in duration when domestic inflation rate is high

20. CHECKLIST COMPARING NATIONAL COMPETITIVE BIDDING PROCEDURES AND WORLD BANK POLICY (contd.)
YES NO BANK POLICY
Required (to be acceptable they should be balanced, reasonably and clearly address the most important issues that lead to problems during performance, e.g. risk allocation, payment, inspection, conpletion/ acceptance, insurance, warrantees, changes, contract remedies, force majeure, governing law, termination, etc.)
Acceptable, but advance Bank approval of changes subject to prior review needed if required under the Loan Agreement
Are the terms and conditions used in goods and works procurement generally appropriate for the size and nature of contract intended?
Are contract scope/conditions modified during implementation?

21. OTHER PROCUREMENT METHODS
SHOPPING
International/National
Appropriate when
Off the shelf goods
Values are small
No formal bidding document required
No public bid opening required
International shopping:
Obtain quotations (proforma invoice) in writing from at least 3 suppliers from 2 different countries

22. OTHER PROCUREMENT METHODS
SHOPPING (Cont’d)
National shopping:
Obtain quotations (proforma invoice) from at least 3 countries
International/National
Request for quote to indicate
Description of goods
Standard specifications
Desired time & place of delivery – allow adequate time but not less than 3 weeks. No public bid opening required
Quotations may be submitted by telex/fax

23. OTHER PROCUREMENT METHODS
SHOPPING (Cont’d)
Award should be made to the lowest evaluated offer (retain evaluation report for Post Review)
Purchase order will indicate terms of accepted offer

24. OTHER PROCUREMENT METHODS
MINOR WORKS
Small contracts
Works may be dispersed
Obtain at least 3 quotations on lump-sum fixed price basis or fixed unit rates
Award to the lowest evaluated bid
Retain evaluation report for Post Review
Use sample document