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REVISION OF PROCUREMENT AND
CONSULTANT GUIDELINES
January 2011
Implementation Support Workshop February 06-10, 2012
Ankara
The World Bank
Background
The Guidelines have evolved over the years to reflect trends in the Bank’s overall policies, global knowledge, experience in public procurement, best international procurement practices, dialogue with the borrowers and partnerships with stakeholders and other donors.
QUIZ (1)
When was the last major revision to procurement guidelines?
A) 2006
B) 2010
C) 2004
D) Don’t know
Background
2004 - the last time the major revisions to the Guidelines were made
2006 and 2010 revisions were limited to Fraud and Corruption provisions
Eliminated country eligibility restrictions
Introduce use of e-procurement
Emphasized greater transparency and simplification
Background
2011 revisions do not, in a major or material way, change the existing overall Bank procurement policy framework, including methods and procedures
Rationale for Revisions in 2011
To reflect:
broad evolution of policies and Board decisions affecting procurement
harmonization effort with MDBs/IFIs
practical experience in application of the Guidelines, and trends in industry practices
Process
Long process of consultations (more than a year)
Internal
External - Including Harmonization with MDBs
Process
Extensive internal reviews and discussions, including feedback from staff, Policy Committee of Procurement Sector Board, Audit Committee, pre-Board briefings to the EDs, and Board discussion
Extensive external consultations with borrowers’ implementing agencies, private sector/industry, MDBs/IFIs. Posting of GLs on the web for public consultations &feedback, including from civil society
Harmonization
Consultations with MDBs as part of a broader harmonization process
Resulted in reaching consensus on all changes and new provisions
Achieved higher level of harmonization
Knowledge Check on Rationale
(a) evolution of policies and Board decisions
harmonization effort with MDBs/IFIs
practical experience in application of the Guidelines, and trends in industry practices
(b) Harmonization with Bank policies
evolution of industry guidelines
changing procurement needs
Categories of Revisions
(1) Evolution of Policies
(2) Harmonization Effort
(3) Reflection on Practical Experience & Industry Trends
(4) “Cross-alignment” between the two guidelines and editorial
(1)Evolution of Policies
Revised provisions in both Guidelines:
Eligibility: to ensure consistency with sanctions reforms and between both Guidelines
Conflict of Interest (COI): used to be only in Consultant Guidelines, now in both. The text is also expanded to allow for a full treatment of COI
(1) Evolution of Policies (cont’d)
Fraud and Corruption (F&C):
to align with sanctions reforms (temporary and early temporary suspension, cross-debarment, and corporate cross-debarment (GSD))
to define applicable sanctions procedures in contracts with UN agencies
to clarify due diligence requirements before awarding contracts
to include INT contact information for reporting F&C allegations
(1) Evolution of Policies (cont’d)
Use of country systems (UCS):
UCS is introduced as a new method under the Piloting Program (Section III) to allow its use through the standard reference to the Guidelines in the loan or credit agreements
(2) Harmonization Efforts
Sanctions provisions, in particular, cross-debarment & definitions of fraud, corruption, collusion and coercive practices with other 4 MDBs
Provisions of harmonized master bidding documents and consultants’ RFP are reflected in clarified Guidelines’ clauses and terminology related to bidding process and contract terms
(3) Reflection on Practical Experience
Without change in substance, existing provisions have been revised and/or expanded to clarify the requirements:
Government-owned enterprises: requirements on documentation to establish eligibility of such enterprises are added
Involvement of civil servants in Bank-financed projects is clarified
(3) Reflection on Practical Experience
Misprocurement - added:
application of this sanction when the lowest bids are no longer valid as a result of prolonged and unjustified delays by the borrower
the Bank’s right to declare misprocurement and cancel the funds when the borrower or beneficiaries are engaged in F&C
(3) Reflection on Practical Experience
Publication of award of contracts:
a new provision in Annex 1 consolidates all requirements previously found in different Sections
Advertising:
requirements change – posting in dgMarket is no longer required, only in UNDB and Bank’s external website
advertisement in borrower’s electronic portal of free access is now an alternative to national gazette, not “in addition”
(3) Reflection on Practical Experience
Post review:
Possibility of relying on independent reviews, depending on assessed risks and scope of project, is added
(3) Reflection on Practical Experience: PROCUREMENT GUIDELINES
Revisions of ICB provisions (Section II)
provided clear definition of single responsibility under turnkey contracts, and use of two-stage bidding procedures
reintroduced 1995 provision on domestic preference (deleted in 2004) for single responsibility contracts
specified conditions for use of national language
clarified difference between performance security and retention money
(3) PROCUREMENT GUIDELINES (cont’d)
Revisions of ICB provisions
Use of international arbitration and use of a neutral venue no more recommended but required
simplified electronic bid opening procedure
clarified procedure for rejection of all bids (to prevent the outright rejection)
clarified process of evaluation of prices for three groups of goods and the price adjustment procedure
(3) PROCUREMENT GUIDELINES (cont’d)
Revisions to non-ICB methods (Section III) used in a growing number of projects:
NCB
Shopping, Direct Contracting, and Force Account
UN agencies
Procurement in loans to fin.intermediary institutions
Procurement under PPP, concessions
Community participation in procurement
(3) PROCUREMENT GUIDELINES (cont’d)
NCB (para 3.3-3.4): Aligns, clarifies, simplifies requirements for
Advertising
Comparison of all bids and award on the basis of the total cost at destination (including all taxes and duties)
Borrowers having an independent protest mechanism in place
Participation of foreign firms (on the same terms that apply to national bidders)
Borrower’s debarments can be recognized
(3) PROCUREMENT GUIDELINES (cont’d)
Shopping (3.5):
threshold for Goods remains $100,000
threshold for Works is now $200,000
If Borrower obtains less than 3 quotations, No Objection is required to proceed
(3) PROCUREMENT GUIDELINES (cont’d)
Direct Contracting (3.7-3.8)
Revised text reflects already existing practice
Clarified the requirements for acceptable circumstances
Natural disasters and emergency situations declared by the Borrower shall be recognized by the Bank as such to use it as a justification for DC
Procurement from UN agencies in case of natural disasters and emergencies
(3) PROCUREMENT GUIDELINES (cont’d)
Force Account (3.9): expanded and clarified text on applicability requirements
Borrower must set up max aggregate amounts for FA, No Objection is required
Borrower shall apply same rigorous quality checks as for contracts to 3d parties
Specialized non-consulting services (aerial surveys and mapping) are added
Urgent repairs to prevent further damages are added for conflict-affected areas
(3) PROCUREMENT GUIDELINES (cont’d)
UN Agencies provisions clarified and expanded (3.10)
Clarifications on how to apply
Specifics of application of Fraud and Corruption clause
Mandatory use of standard agreement forms
(3) PROCUREMENT GUIDELINES (cont’d)
Procurement in loans to financial intermediary institutions (3.13)
“ICB” is replaced with “open or limited international or national competitive bidding”
On-lent funds to public sector beneficiaries, large and complex contracts – use competitive methods of the GLs
(new) Requirements to Project Implementation Manual to describe principles and procedures
(3) PROCUREMENT GUIDELINES (cont’d)
Community participation in procurement (3.19)
Borrower makes Project Implementation Manual publicly available after it is approved by Bank
Flexibility in requiring Procurement Plan at negotiations, simplified PP with an indicative list of eligible activities can be used
(3) PROCUREMENT GUIDELINES (cont’d)
Framework Agreements (3.6) is introduced as an alternative method to NCB and Shopping
Due diligence with regard to F&C and compliance with the Bank’s sanctions policies and procedures specifies borrower’s responsibility (para 8, Appendix 1)
New provisions:
(3) PROCUREMENT GUIDELINES (cont’d)
New thresholds in Section III:
“Small-value contracts” are defined as below US$100,000 for Goods and US$200,000 for Works
(3) Reflection on Practical Experience: CONSULTANT GUIDELINES
Revisions to clarify and streamline the process, and eliminate inconsistencies made in:
New SRFP is being prepared
Advertising
Short-listing
Technical evaluation & public opening
Financial proposals evaluation and treatment of local indirect taxes
Negotiations and award of contract
Rejection of proposals and re-invitation
(3) CONSULTANT GUIDELINES (cont’d)
New maximum ceilings for contracts:
“Small-value contracts” : should not exceed US$300,000 for firms and US$50,000 for individual consultants
“Very small-value contracts” : should not exceed US$100,000 for firms
(4) Procurement and Consultant Guidelines: “Cross-harmonization”
Title change: both guidelines now include the phrase “under IBRD Loans and IDA Credits & Grants by World Bank Borrowers”
Applicability of the Guidelines is clarified to:
exclude Bank-executed trust funds (BETFs)
include non-consulting services (under Procurement Guidelines)
Thank you!!!