IFAD Procurement Guidelines revised 2008
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IFAD Procurement Guidelines revised 2008

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Procurement Guidelines

1. These Guidelines are intended to assist PI staff in handling procurement of Goods, Work and Consultancy Services in the context of IFAD Direct Supervision. It is a compendium of instructions, forms and checklists extracted from IFAD’s Guidelines for Supervision and Implementation Support.

It also draws from information distributed to IFAD staff during the Direct Supervision TrainingProgramme held at Casa San Bernardo during 2007/08.

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IFAD Procurement Guidelines revised 2008 IFAD Procurement Guidelines revised 2008 Document Transcript

  • Guidelines Procurement responsibilities under IFAD Loan and Grant Direct Supervision PI Division 6 March 2008
  • Guidelines Procurement responsibilities under IFAD Loan and Grant Direct SupervisionIntroduction1. These Guidelines are intended to assist PI staff in handling procurement of Goods, Work andConsultancy Services in the context of IFAD Direct Supervision. It is a compendium of instructions,forms and checklists extracted from IFAD’s Guidelines for Supervision and Implementation Support 1 .It also draws from information distributed to IFAD staff during the Direct Supervision TrainingProgramme held at Casa San Bernardo during 2007/08.2. Loan administration is the part of the supervision process that deals with the issues ofdisbursement, flow of funds, procurement of goods, works and consulting services, financial controlsand management aspects of implementation (budgeting, accounting, financial planning, reporting andaudit). These guidelines provide direction on the procurement element of loan administration. Theresponsibility matrix for loan administration within IFAD, including procurement, is provided asAnnex 5.Letter to the Borrower (LttB)3. Based on the standard format letter issued by OL/FC 2 , the Letter to the Borrower (LttB) isprepared by the PI Regional Financial Management Officer (RFMO) and signed by the AssistantPresident, PD. Soon after loan signing, the LttB is sent to the Borrower’s representatives and officialsattached to the project or programme. The LttB clearly explains the action to be taken by theBorrower in order to start withdrawal of funds and spells out the methods and procedures forwithdrawal of funds, procurement of goods, works and consulting services as well as the financial andaudit reporting requirements. A copy of the IFAD Guidelines for Procurement is annexed to theLttB. Furthermore, standard forms, checklists and instructions to facilitate the Borrower’s compliancewith procedures are also attached to the LttB.Procurement4. The IFAD Procurement Guidelines of December 2004 3 and the Loan Agreement, which governsthe legal relationship between the Borrower and IFAD, should always be consulted for a descriptionof applicable procurement procedures. A sample matrix of responsibilities betweenPMU/IFAD/Borrower is given in Annex 4.5. Procurement Methods. There are several methods of procurement, both for procurement ofgoods and works and for procurement of consulting services. The methods for procurement of goodsand works are described in Part B of the Procurement Guidelines, while the methods for procurementof consulting services are described in Part C of the Procurement Guidelines. Schedule 4 of the loanagreement specifies the method(s) permitted for the borrower to procure goods, works and services inthe individual project. If applicable, Schedule 4 also specifies the threshold amounts for the individualprocurement methods. Annex 1 provides a table showing the procurement methods and their maincharacteristics/description.6. Supervision Tasks in Procurement. Procurement is fundamentally the responsibility of theBorrower. However, in IFAD the CPM and RFMO are involved in the procurement process in thefollowing instances:1 http://www.ifad.org/operations/projects/supervision/guidelines.pdf2 The standard LttB template is currently under preparation by OL.3 http://intradev:8015/pub/basic/procure/e/proceng.pdf. 1
  • Review of procurement implementation plan; Review of prequalification of bidders; and Procurement review a. Prior review; and b. Ex-post review.7. Receipt of procurement documents in IFAD. As many procurement related documents forIFAD review are now sent electronically to CPMs there is a substantial risk that these may be delayedor lost – particularly considering the high volume of email communication and frequent travelschedule faced by CPMs. In order to more proactively manage this aspect a central email address hasbeen created. The address is piprocurement@ifad.org. On receipt, any documentation in the centralemail address will be sent immediately be to the CPM, PA and IRC and logged in the ProcurementTracking Sheet. The PA and CPM then have responsibility for follow up in accordance with theworkflow described in detail below and for updating the Procurement Tracking Sheet.8. A formal communication on this process will be prepared and sent to all ongoing projects in theregion advising to use the central email address for the purpose of submitting procurement relateddocuments.9. Review of the Procurement Plan. The Borrower is to have a duly approved annual work planand budget 4 , which includes a procurement plan for all major procurements of goods, works andconsulting services to be carried out within a period of at least 18 months (i.e. extending up to sixmonths beyond the end of the AWPB). The first procurement plan (elaborated as part of projectappraisal) is to be updated after loan effectiveness and is to cover the initial 18 months of the projectimplementation period. This is to be submitted to IFAD for approval. The procurement plan isupdated annually (or as needed) to cover every subsequent 18-month period of project implementationas part of the normal AWPB development exercise.10. The Procurement Plan must as a minimum identify in reasonable detail (a) the various contractsfor goods, works and consulting services required to implement the project; (b) the proposed methodsof procurement for such contracts that are permitted under the loan agreement; and (c) the relatedIFAD review procedures. A checklist for review and a sample of the lay-out of a well-preparedprocurement plan are presented in Annex 2. A standard Procurement Plan template will be availableshortly.11. Checklists to be used. Procurement supervision includes office-based and field-based review aswell as Prior Review and Ex-Post Review. Prior review requiring the provision of IFAD’s “noobjection” is mainly an office-based activity. Ex-post review is mainly field-based which includes thereview of procurement that is not subject to prior review.12. Four Checklists have been prepared for use as a tool and guide for conducting the procurementreview. Checklist 2 - Prior Review Procedures: Prequalification of Bidders Checklist 3 - Prior Review Procedures: Procurement of Goods and Works Checklist 4 - Prior Review Procedures: Procurement of Consulting Services Checklist 5 - Procurement Ex Post Review Procedures13. For further information, refer to Annex 3: Procurement Review Process.14. Procurement Workflow: Schedule 4 of Loan Agreements may provide the financial thresholdfor procurement that is subject to prior review 5 . All procurement that is valued at the prescribedfinancial threshold should be submitted by the PMU to the CPM at the following stages of theprocurement process for provision of clearances and “no objection”:4 Refer to PI Results Orientation AWPB Guidelines available on PI Desk5 Thresholds may have been agreed during loan negotiations and included in minutes of negotiations. 2
  • 1. a. Bidding documents for goods and works 1. b. Request for proposal (RFP) for consulting services 2. Evaluation and selection 3. Contract award15. During the project implementation phase, the Programme Assistant and the Regional FinancialManagement Officer (RFMO) will provide support and assistance to the CPM in the review ofprocurement documents to ensure compliance to provisions in loan agreement and procurementguidelines. For complex cases of procurement, a technical specialist should be contracted to providetechnical expertise in the review of the documentation submitted by PMU. This workflow process isdetailed below. Programme Assistant. The PA is responsible for managing documentation and ensuring the Procurement Tracking Sheet is updated according to the different stages of procurement review processes and based on the updated checklists. Country Programme Manager. Using the Checklist as a tool in the review, the CPM undertakes initial review and if required, passes on the documents to the RFMO for advice. Regional Financial Management Officer. Reviews the procurement documents and submits findings/comments to the CPM. The Procurement Tracking Sheet will also be monitored by the RFMO. Country Programme Manager. The CPM communicates assessment to the PMU and Government authorities if necessary. Upon completion of review and determination of compliance, the CPM sends the communication to the PMU providing “no objection” to the procurement and sends the procurement documents with the checklist to the PA. Programme Assistant. Logs the no objection in the Procurement Log Sheet and files the document in the cabinet log file.16. Review of Prequalification of Bidders. Prequalification of bidders is usually done for large andcomplex works or in situations where there is a potential for substantial time and cost savings in theprocurement of goods and works by evaluation of only bids from qualified bidders. Prequalificationinvolves review by IFAD in two instances: (a) prior to the borrower’s issuance of invitations toprequalify, IFAD reviews the draft documents to be used, including the text of the invitation toprequalify, the prequalification questionnaire and the evaluation methodology, together with adescription of the advertising procedures to be followed; and (b) following the borrower’s evaluationof submissions, IFAD reviews the draft evaluation report together with the list of prequalified biddersand a statement of their qualifications, and of the reasons for excluding any applicant fromprequalification.17. Prior and Ex-post Review of Procurement. Irrespective of the method of procurement to beemployed, the loan agreement may specify the threshold for prior review. For example, for contractsvalued at more than the threshold amount, the review procedure described in Appendix I of theProcurement Guidelines must be applied. IFAD reviews the borrower’s procurement procedures,documents, bid evaluations, award recommendations and contracts to ensure that the procurementprocess is carried out in accordance with agreed guidelines. The loan agreement specifies the extent towhich the review procedures will apply in respect of the various categories of goods, works andconsulting services to be financed, in whole or in part, from the IFAD loan. Where prior review is notrequired, through supervision IFAD conducts a post-award review on a sample basis ofdocumentation and contracts submitted as supporting documents for withdrawal applications. Theprocedure for prior review differs for procurement of goods and works and procurement of consultingservices. 3
  • 18. Checklists for the review of prequalification of bidders, prior and post approval are provided inAppendix 2 - Annex 3. Sample summary procurement table/individual contract monitoring form andcontract record are provided in Appendix 3 - Annex 3.19. Draft (not yet approved by IFAD Management) sample Standard Bidding Documents for Goods,Works, Consulting Services for the borrower’s use and user’s Manual on Procurement, Disbursementand Financial Management in Projects with Community Participation can be found on the PI //desk. Itis intended that PI will finalise and make available these standardized documents shortly.20. Performance measurement/processing time: as procurement is a critical element ofimplementation, it is expected that “no objection” is given within one week from receipt ofdocumentation when no major issues are encountered. For procurement requiring follow up all“pending issues” should be recorded in the Procurement Log Sheet. As with Withdrawal Applications,PI will actively monitor status of pending issues for Procurement on a weekly basis. Further follow upand discussion on lessons learned will be pursued during weekly divisional staff meetings.21. Filing. All no objection and procurement documentation should be securely filed (locked) in anorderly manner in the PI filing room. This is to be maintained according to individual loan/grant alongwith any related correspondences and checklists.22. All incoming request for no objection should be forwarded to the designated divisional emailaddress piprocurement@ifad.org. Any documentation received directly by the CPM should be sent tothis email address for forwarding to the Mail room/IRC. The mail will be checked on a daily basis andrequest logged in by Portfolio Management Group and forwarded to the concerned CPM and PA. Incase of absence, the documentation will be reviewed by the person delegated. 4
  • ANNEX 1THE DIFFERENT METHODS OF PROCUREMENT
  • PROCUREMENT METHODS I. Procurement of goods and works Method Description Applicability/Characteristics Advertising Remarks International Competitive Procedure for procurement of High value procurement General Procurement - Margin of preference Bidding (ICB) goods and works on the Interest for international business Notices (GPN) for domestic goods and international market with community Open ITB or invitation works may be applied open competition Equal opportunity to bid to pre-qualify UNDB/dgMarket International press Limited International ICB by direct invitation Smaller value Restricted ITB - Domestic preference Bidding (LIB) (no open advertisement) Limited number of suppliers not applicable National Competitive Procedure for public Small value contracts Local press - IFAD to establish Bidding (NCB) procurement in Borrower Geographically scattered, labor- Internet acceptability of national Country intensive or time-spread works Open ITB procedures Local prices below international market - Foreign suppliers Annex 1 No or limited interest from allowed to bid international business community1 ICB advantages outweighed by financial and administrative costs International Shopping Comparison of price Small value procurement Request for quotation - Purchase order or brief quotations from at least 3 Off-the-shelf goods, standard (restricted) contract suppliers in 2 different specification commodities, simple civil countries works National Shopping Comparison of price Same as International Shopping Request for quotation - Purchase order or brief quotations from at least 3 Goods available locally from several (restricted) contract suppliers sources at competitive prices Direct Contracting Single or sole-source Extension of existing contract No advertising selection Standardization for vehicles, equipment No competition Proprietary equipment obtainable from one source only Condition of performance guarantee Emergency procurement
  • Procurement from Procurement of goods from Grains, animal feed, cooking oil, fuel, Pre-qualified bidders Short bid validity Commodity Markets commodity markets fertilizers, pesticides, metals Issuance of periodic Single (market) currency Multiple award for partial quantities to invitations for bid and payment secure supply and prices Work by Force Account Use of the Borrower’s own Difficulty in defining work quantities No advertising IFAD ensure that personnel and equipment to Small, scattered works in remote No competition - force account units are perform construction work locations properly staffed, Risk of unavoidable work interruptions equipped and organized No disruption of on-going operations - costs are reasonable Emergency situations Procurement from UN Procurement of specific Small quantities of off-the-shelf products No advertising - Use of UN agency Agencies goods from specialized UN No competition rules and procedures agencies - Indication in loan agreement Refer to the IFAD Procurement Guidelines for the following procurement methods: Annex 1 Procurement by agents and use of inspection agents Procurement by financial intermediaries or sub-loan beneficiaries2 Procurement with community participation
  • II. Procurement of consulting services Method Description Applicability/characteristics Advertising Remarks Quality and Cost Based Competitive selection from Two-step evaluation: quality (technical GPN (large contracts) Preferred selection Selection short-listed firms based on proposal) and cost (financial proposal) Request for Proposal method for most quality and cost of proposal (RFP) consulting services Selection Under a Fixed Competitive selection from Simple and precisely defined assignment Request for proposal Rejection of proposals Budget short-listed firms based on Consulting firms requested to bid within above fixed budget best technical proposal within a fixed budget budget Least-Cost Selection Competitive selection from Standard, routine assignments (e.g. audits Request for proposal - Establishment of a short-listed firms based on or design of simple works) minimum score for lowest cost provided Well-established standards and practices quality minimum quality score is Small contract value - Rejection of proposals achieved under minimum score Quality Based Selection Competitive selection from Complex/highly specialized assignments GPN (large contracts) Only technical short-listed firms based on High downstream impact Request for Proposal proposals may be Annex 1 quality only No comparability of proposals invited Selection Based on Selection from short-listed Very small assignments Request for expression Submission of3 Consultants’ Qualifications firms based on consultant’s Cost of RFP preparation and evaluation of interest combined technical- experience and competence not justified financial proposals Single Source Selection Selection of a firm without Must be exceptional: No competition Clear advantage over any competition Continuation of previous work competition or Emergency situation impossibility to Very small assignments compete must be Only one firm is qualified/experienced demonstrated Selection of Individual Individuals selected based on Teams of personnel not required Request for expression Individuals may be Consultants qualifications, references and No additional professional support of interest or selected on a single other relevant criteria, with required Direct contact source basis limited or no competition Main requirement is experience and qualification of individual consultant Refer to the IFAD Procurement Guidelines for the following procurement methods: Procurement agents and inspection agents UN agencies, Civil Society Organizations, Auditors and Service Delivery Contractors
  • ANNEX 2THE PROCUREMENT IMPLEMENTATION PLAN
  • Annex 2 THE PROCUREMENT IMPLEMENTATION PLAN Review of the Procurement Plan1. The loan agreement (Article III) requires the Borrower to have a duly approved annual workplan and budget (AWPB), which includes a procurement implementation plan (PIP) for all majorprocurements of goods, works and consulting services to be carried out within a period of at least18 months (i.e. extending up to six months beyond the end of the AWPB). The AWPB and PIP aresubmitted to IFAD for review and approval before the beginning of the relevant project year.2. The first procurement plan (elaborated as part of project appraisal) is to be updated after loaneffectiveness and is to cover the initial 18 months of the project implementation period and is to besubmitted to IFAD for approval. The procurement plan is to be updated annually (or as needed) tocover every subsequent 18-month period of project duration as part of the AWPB exercise. There isno standard format or template for a procurement plan but the plan must as a minimum identify inreasonable detail: (a) thresholds, ceilings and preferences to be applied in the implementation of procurement under the project; (b) the various contracts for goods, works and consulting services required to implement the project; (c) the proposed methods of procurement for each contract; and (d) the related IFAD review procedures.3. The loan agreement (Article III) requires the borrower to elaborate an AWPB (includingprocurement implementation plan) and submit it to IFAD for review and approval before thebeginning of the relevant project year.4. When reviewing the PIP, it is important to keep in mind that the it serves both as a tool forguiding project procurement implementation and as a collection of benchmarks (dates and method ofprocurement) against which actual implementation progress can be measured throughout the year. Apoorly thought-through PIP may cause a loss of time in the procurement process. Time spent on athorough review of the PIP (with particular emphasis on the method of procurement to be followedand the need or not for IFAD prior approval) is therefore a good investment: getting things right atthis stage can save a lot of time and effort later in the year, not only for the borrower but also forIFAD staff.CHECKLIST: REVIEW OF THE PROCUREMENT IMPLEMENTATION PLAN5. From his/her knowledge of the project and from supervision missions and other interaction withthe project during the year, the CPM would have developed his/her own checklist of project-specificissues that need to be addressed and reviewed in the AWPB. The checklist below is aimed at detectingmajor deficiencies in the internal coherence and consistency of the PIP.Coherence • General coherence: Is the nature and quantity of goods/works/services generally consistent with the nature of project activities/components as per the appraisal report? • Coherence with AWPB: Do the nature and quantity of goods/works/consulting services appear consistent with the activities in the AWPB? Are the costs of procurement adequate and reflected in the budget? 1
  • Annex 2Procurement Packaging • Is the procurement systematically and logically grouped according to the categories of the procurement (goods/works/consulting services)? • Within each category, have similar or related items been combined in a single package where possible and sensible? • Has packaging been done in a way that generally facilitates the use of the most competitive and efficient procurement method and that ensures the best value for money? Note specifically “split packaging” (e.g. several small, similar packages designed to circumvent the threshold for competitive procurement methods); and packaging that limits competition by de facto locking a series of contracts to the winner of the first contract (e.g. a separate package for delivery of machinery followed by future packages for spare parts and maintenance)?Procurement Method • Is the selection of procurement methods in compliance with the provisions of Schedule 4 of the loan agreement?Procurement Schedule • Do the time estimates indicated (for the individual procurement method) seem realistic? • Is the procurement schedule consistent with the implementation schedules in the AWPB (does the delivery of goods, works and services correspond to physical targets in the work plan)?6. A sample of the lay-out of a well-prepared 18-month procurement implementation plan is inAppendix 1. 2
  • TURKEY P ro g ra m m e fo r R u ra l P o v e rty R e d u c tio n (P R P R ) P ro c u re m e n t P la n O rig in a l: O c to b e r 2 0 0 6 (P ro g ra m m e A p p ra is a l) Ab b re v ia tio n s : G B - G o ve rn m e n t B u d g e t IC - In d ivid u a l C o n s u lta n ts In t s h o p - In te rn a tio n a l S h o p p in R e v is e d : B e n - B e n e fic ia rie s L C B - L o c a l C o m p e titiv e B id d in g L o c s h o p - L o c a l S h o p p in g P e rio d : J u ly 2 0 0 7 - D e c e m b e r 2 0 0 8 (1 8 m o n th s ) T A - T e c h n ic a l A s s is ta n c e S O E - S ta te m e n t o f E xp e n d itu re s N /A - N o t A p p lic a b le T R W S - T ra in in g , W o rk s h o p s a n d S tu d ie C Q - C o n s u lta n t S e rvic e s : C o n s u lta n t Q u a lific a tio n G R - C o n trib u to ry G ra n ts Q C S B - C o n s u lta n t S e rvic e s :Q u a lity /C o s t S e le c tio n B a s e R C - R e c u rre n t C o s ts B C P - B e s t C o m m e rc ia l P ra c tic e s Contract Amount Tender Invitation Contract Signing Proposed No of Package ID No Total Allocated Loan Category Amount for 18 Procurement Bid Opening Package No Financier-ID Latest Date Completion year/month Contractor Reference No of Lots Combined (US$.000) (US$.000) Prior/Post Packages Allocated Supplier/ Delivery/ Starting Amount Method months Review Month Code Date Date D e s c rip tio n C o m p o n e n t A - V illa g e Im p ro v e m e n t P ro g ra m m e Aw a re n e s s R a is in g IF A D 1 A 1 .1 P ro g ra m m e H a n d b o o k P u b lic a tio n G oods LC B 3 4 .9 3 4 .9 P o s t 1 2 0 0 8 /1 2 0 0 8 /1 2 0 0 8 /2 2 0 0 8 /3 2 0 0 8 /6 IF A D 2 A 1 .2 S ta ff O rie n ta tio n TRW S SOE 6 .7 6 .7 N /A 1 2 0 0 7 /9 IF A D 3 A 1 .3 V illa g e M e e tin g s TRW S 3 3 .2 1 0 .9 N /A 2 0 0 8 /6 S u b -to ta l AR : 7 4 .8 5 2 .5 F a rm e r E d u c a tio n a n d T ra in in g Annex 2 – Appendix 1 IF A D 4 A 2 .1 R e h a b ilita tio n o f tra in in g fa c ilitie s (in S iirt) 1 CW LC B 3 4 .2 3 4 .2 P ost 1 2 0 0 8 /1 2 0 0 8 /1 2 0 0 8 /2 2 0 0 8 /3 2 0 0 8 /1 2 IF A D 5 V -2 A 2 .2 V e h ic le s fo r P D A s 2 G o o d s In t s h o p 3 4 2 .5 3 4 2 .5 P rio r 1 2 0 0 8 /3 2 0 0 8 /3 2 0 0 8 /5 2 0 0 8 /6 2 0 0 8 /811 IF A D 6 A 2 .3 O ffic e e q u ip m e n t fo r P D A s 1 G oods LC B 7 1 .6 7 1 .6 P rio r 3 2 0 0 8 /1 2 0 0 8 /2 2 0 0 8 /3 2 0 0 8 /4 2 0 0 8 /6 IF A D 7 A 2 .4 T ra in in g e q u ip m e n t fo r P D A s 1 G oods Loc shop 4 6 .7 4 6 .7 P ost 3 2 0 0 8 /1 IF A D 8 A 2 .5 E q u ip m e n t fo r tra in in g fa c ilitie s (in S iirt) 1 G oods Loc shop 2 0 .8 2 0 .8 P ost 1 2 0 0 8 /9 IF A D 9 V -1 A 2 .6 V e h ic le s fo r P ro g ra m m e s ta ff (e xte n s io n ) 1 G o o d s In t s h o p 9 1 .1 9 1 .1 P rio r 1 2 0 0 7 /7 2 0 0 7 /8 2 0 0 7 /9 2 0 0 7 /1 0 2 0 0 7 /1 2 IF A D 10 O E -1 A 2 .7 O ffic e e q u ip m e n t fo r P ro g ra m m e s ta ff (e xte n s io n ) 1 G oods LC B 2 5 .8 2 5 .8 P rio r 1 2 0 0 7 /7 2 0 0 7 /7 2 0 0 7 /8 2 0 0 7 /9 2 0 0 7 /1 0 IF A D 11 A 2 .8 T ra in in g e q u ip m e n t fo r P ro g ra m m e s ta ff (e xte n s io n ) 1 G o o d s L o c s h o p 3 0 .4 3 0 .4 P ost 1 2 0 0 7 /7 IF A D 12 A 2 .9 D e v e lo p m e n t o f T ra in in g M a te ria ls TA IC 3 1 .9 1 5 .6 P rio r 3 2 0 0 8 /1 IF A D 13 A 2 .1 0 P u b lic a tio n o f T ra in in g M a te ria ls G oods Loc shop 1 6 3 .7 3 1 .1 P ost m u lti 2 0 0 8 /4 IF A D 14 A 2 .1 1 V illa g e T ra in in g fo r A g ric u ltu ra l P ro d u c tiv ity (in p u ts fo r d T R W S L o c s h o p 1 ,7 1 1 .8 3 2 6 .9 P ost m u lti 2 0 0 8 /6 IF A D 15 A 2 .1 2 R e c ru itm e n t o f P ro g ra m m e E xte n s io n S p e c ia lis ts RC IC 5 2 7 .3 1 1 2 .1 P rio r 3 2 0 0 7 /1 0 2 0 0 8 /1 S u b -to ta l F E T : 3 0 9 7 .7 1 1 4 8 .8 In fra s tru c tu re fo r V illa g e Im p ro v e m e n t IF A D 16 A 3 .1 V IP I O p e ra tio n a l M a n u a l TA IC 1 0 .1 1 0 .1 P rio r 1 2 0 0 7 /9 IF A D 17 A 3 .2 P re p a ra tio n o f F e a s ib ility S tu d ie s TA IC /C Q 2 5 8 .6 6 2 .3 P rio r 3 2 0 0 8 /1 IF A D /G B 1 8 A 3 .3 C iv il W o rk s CW LC B 7 ,2 0 0 .0 6 5 0 .0 P rio r m u lti 2 0 0 8 /9 IF A D 18 A A 3 .4 T e n d e rin g CW SOE 1 4 4 .0 1 3 .0 2 0 0 8 /7 IF A D 19 A 3 .5 V illa g e T ra in in g fo r In fra s tru c tu re P ro je c ts TRW S QCSB 7 2 0 .0 6 5 .0 P rio r 3 2 0 0 8 /6 S u b -to ta l IV I: 8 ,3 3 2 .7 8 0 0 .4 S u b -to ta l C o m p o n e n t A: 1 1 5 0 5 .3 2 0 0 1 .7 C o m p o n e n t B - R u ra l E c o n o m ic G ro w th IF A D 20 B .1 S u rv e y o f F a rm e rs O rg a n is a tio n s T R W S IC /C Q 3 1 .1 1 5 .2 P rio r 1 2 0 0 7 /8 2 0 0 7 /1 0 2 0 0 7 /1 2 IF A D 21 B .2 S tu d y o f P ro d u c tio n S y s te m s T R W S IC /C Q 1 0 .1 1 0 .1 P rio r 1 2 0 0 7 /8 2 0 0 7 /1 0 2 0 0 7 /1 2 IF A D 22 B .3 S u p p ly C h a in M a p p in g /M a rk e tin g A n a ly s e s T R W S IC /C Q 1 3 9 .7 4 1 .5 P rio r m u lti 2 0 0 8 /1 2 0 0 8 /3 2 0 0 8 /6 IF A D 23 B .4 M a rk e tin g a n d B u s in e s s D e v e lo p m e n t S tu d ie s T R W S IC /C Q 1 0 8 .5 1 0 .4 P rio r m u lti 2 0 0 8 /3 2 0 0 8 /5 2 0 0 8 /9 IF A D 24 B .5 P ro g ra m m e S ta ff T ra in in g in S C M TRW S SOE 3 .1 1 .5 2 0 0 7 /1 2
  • ANNEX 3PROCUREMENT REVIEW PROCESS
  • Annex 3 PROCUREMENT REVIEW PROCESS1. The general policies and procedures applicable to project procurement in IFAD financedprojects are set out in the IFAD Procurement Guidelines of December 2004. The loan agreement,which governs the legal relationship between the Borrower and IFAD, stipulates the specificprovisions for the procurement of goods, works and consulting services in the respective project. Thefollowing is limited to providing practical guidance on some of the more important aspects ofprocurement-related tasks and procedures such as these present themselves in the majority of projects.Methods of Procurement2. There are several methods of procurement, both for procurement of goods and works and forprocurement of consulting services.3. The methods for procurement of Goods and Works (described in Procurement GuidelinesPart B) are: (a) International competitive bidding; (b) Limited international biding; (c) National competitive bidding; (d) International or national shopping; (e) Direct contracting; (f) Procurement from commodity markets; and (g) Work by force account.4. The methods for selection of Consulting Services (described in Procurement Guidelines Part C)are: (a) Quality and cost based selection; (b) Quality based selection; (c) Selection under a fixed budget; (d) Least-cost selection; (e) Selection based on consultants’ qualifications; (f) Single-source selection; and (g) Selection of individual consultants.5. Schedule 4 of the loan agreement specifies the method(s) permitted for the Borrower for theprocurement of goods, works and consulting services. If applicable, Schedule 4 also specifies otherrelevant information on procurement, e.g. procurement handled by IAPSO/UN agencies or otherinstitutions.6. Supervision Tasks in Procurement. You will find in the following Appendices the checkliststo be used during the procurement review process and the forms to be utilized to record contractsreviewed and monitoring forms: • Appendix 1: the checklist to be used for supervision tasks as well as the workflow to be followed for IFAD review and • Appendix 2: Sample Summary Procurement Table/Sample Contract Record and Sample Individual Contract Monitoring Form 1
  • Annex 3 Review of Procurement with Prequalification of Bidders7. Prequalification of bidders is usually done for large and complex works or in situations wherethere is a potential for substantial time and cost savings in the procurement of goods and works byevaluation of only bids from qualified bidders.8. Prequalification involves review by IFAD in two instances (see flow chart 1): • Prior to the borrower’s issuance of invitations to prequalify: review of the draft documents to be used, including the text of the invitation to prequalify, the prequalification questionnaire and the evaluation methodology, together with a description of the advertising procedures to be followed. • Following the borrower’s evaluation of submissions: review of the draft evaluation report together with the list of prequalified bidders and a statement of their qualifications, and of the reasons for excluding any applicant from prequalification Flow Chart 1: Review of Prequalification of Bidders Borrower IFAD CPM Modifications Drafting of Draft Review of prequalification documents draft documents documents Finalization of documents No objection Prequalification Modifications Process Evaluation of Evaluation Review of submissions report, draft documents list of bidders Preparation No objection of final list of bidders 2
  • Annex 3CHECKLIST: Review of Draft Prequalification Documents9. The advertisement and invitation for prequalification should contain the followinginformation: (a) a brief description of the goods and works to be procured; (b) the contract conditions; (c) who is financing the project; (d) eligibility requirements for potential bidders, suppliers and contractors; and (e) the time and place where prequalification documents can be obtained.10. The prequalification documents should enlarge on the information provided in theadvertisement and contain a description of: (a) the proposed procurement; (b) the estimated value of the contract and major quantities of work; (c) location of the work; (d) procurement scheduling of goods or works to be procured; (e) abbreviated specifications and conditions of contract; (f) main quantities to be procured; (g) delivery or implementation schedules; (h) requirements for bid and performance securities; (i) how the project is to be financed; (j) payment terms; (k) price adjustment provisions; (l) the language and governing law of the contract; (m) other information in sufficient detail to enable bidders, suppliers or contractors to assess their interest and respond appropriately; (n) the name and address of the Borrower and of the Borrower’s official in charge of the procurement with a statement of their roles; (o) submissions required, such as completed questionnaire forms and supporting documents and their number and the deadline for their submission; and (p) a clear statement on the criteria for evaluation of prequalification applications.11. As a general rule the evaluation criteria should be objective and relate to the candidate’sexperience, financial resources, personnel resources and equipment resources. Ambiguousrequirements such as “general reputation”, or “cooperativeness”, and requirements that are irrelevantor unfairly discriminatory should be avoided.CHECKLIST: Review of Evaluation Report and Draft List of Bidders12. IFAD does not require a specific format for the evaluation report, but the report should includeat a minimum: (a) a list of all applicants; (b) their ratings keyed to the specific criteria and items of information requested, (c) the list of rejected applicants with a detailed justification for the rejection; and (d) the resulting proposed list of prequalified applicants. 3
  • Annex 3 Review of Procurement with Prior Review1. Irrespective of the method of procurement to be employed, the loan agreement generally specifiesthe threshold for prior review (i.e. for contracts valued at more than the threshold amount, the reviewprocedure described in Appendix I of the Procurement Guidelines must be applied). IFAD reviews theborrower’s procurement procedures, documents, bid evaluations, award recommendations andcontracts to ensure that the procurement process is carried out in accordance with agreed guidelines.The loan agreement specifies the extent to which the review procedures will apply in respect of thevarious categories of goods, works and consulting services to be financed, in whole or in part, fromthe IFAD loan. Where prior review is not required, IFAD conducts a post-award review on a samplebasis of documentation and contracts submitted as supporting documents for withdrawal applications.2. The procedure for prior review differs for procurement of goods and works and procurement ofconsulting services.Prior review of Procurement of Goods and Works3. Prior review of procurement of goods and works involves review by IFAD in two instances (seeflow chart 2): • Review of draft bidding documents, including the invitation to bid, instructions to bidders, including the basis of bid evaluation and contract award, the conditions of contract and specifications of deliverables, and a description of the advertising procedures to be followed for the bidding (if prequalification has not been used). • Review of the bid evaluation report, including comparison of bids received, recommendations for award of contract, the draft contract and other information requested by IFAD. Flow Chart 2: Prior Review of Procurement of Goods and Works Borrower IFAD CPM Modifications Modifications Drafting of Draft Review of bidding. documents draft documents documents Finalization of documents No objection Tender Process Modifications Evaluation of Evaluation Review of bids report documents Contracting No objection 4
  • Annex 3CHECKLIST: Review of Draft Bidding DocumentsGeneral4. Is the procurement: • in accordance with the loan agreement and any subsequent changes reflected in mission reports (e.g., Supervision, Mid-Term Review, Back-to-Office Reports, Aide-Memoires, correspondence, etc.)? • within the availability of funds? • consistent with the approved AWPB (procurement plan)?Adequacy and Quality of the Bidding Documents5. Bidding documents should provide all the information necessary for a bidder to prepare its bid forthe goods or works to be provided. This includes: • Instruction to the bidders; • Proposed pricing (e.g., unit prices or lump sum); • Currency arrangements; • Qualification standards set out for bidder (where no prequalification); • Terms of Reference (TOR) or Statement of Work (SOW) describing contract requirements; • Evaluation criteria by which the award will be determined; • Clarity and propriety of the borrower’s use of preferences (e.g. the method by which domestic bidders may be favoured); and • Insurance or bond requirements.Other Issues • Unusual provisions (e.g. large advance payments); • Proposed attachments to be included in the bidding documents; • Borrowers’ list of proposed bidders to receive the invitation of bids; and • Draft contract to be awarded.6. “Other information as IFAD may reasonably request”: Although IFAD does not approve the bidevaluation committee it would be pertinent at this stage to request and review information about theproposed composition of the committee in order to ascertain that there is sufficient representation ofrelevant agencies/stakeholders and expertise.CHECKLIST: Review of the Bid Evaluation Report7. There is no standard format for the bid evaluation report, but the report should to the extentpossible cover and reflect the logical sequence of a standard bid evaluation process in the followingmanner: (a) receipt and opening of bids (including minutes of the public bid opening); (b) examination of bids; (c) substantially non-responsive bids; (d) correction of arithmetic errors; (e) currency conversion; (f) adjustment for nonmaterial deviations; (g) bids subject to detailed evaluation; (h) evaluation of bids; (i) comparison of bids; (j) lowest evaluated responsive bid; (k) post qualification; and (l) award recommendation. 5
  • Annex 38. “Other information as IFAD may reasonably request”: It would in most cases be relevant torequest evidence of the evaluation carried out by each member of the evaluation committee (scorecards, evaluation sheets, etc.). Prior Review of Procurement of Consulting Services9. Prior review of procurement of consulting services involves review by IFAD in up to fourinstances (see flow chart 3). • Review of draft Request for Proposal (RFP), including Terms of Reference, cost estimate and short list of consultants; • Review of technical evaluation report; • Review of financial evaluation and final evaluation report (not applicable when the procurement method is quality based selection, selection based on consultants’ qualifications and single source selection); and • Review of negotiated draft contract. Flow Chart 3: Prior Review of Procurement of Consulting Services Borrower IFAD CPM Modifications Modifications Drafting of Draft Review of RFP, including documents draft TORs documents, including TORs Finalization of documents No objection Tender Process Modifications Evaluation of Technical Review of technical evaluation report proposals report No objection Modifications Evaluation of Final Review of financial evaluation report proposals report Quality-based selection No objection Modifications Negotiation Draft contract Review of of contract draft contract No objection Signing of contract 6
  • Annex 3CHECKLIST: Review of Draft RFPGeneral10. Is the procurement: • in accordance with the loan agreement and any subsequent changes reflected in mission reports (e.g., Supervision, Mid-Term Review, Back-to-Office Reports, Aide-Memoires, correspondence, etc.)? • within the availability of funds (cost estimate by submitted by borrower)? and • consistent with the approved AWPB (procurement plan)?Adequacy and Quality of the RFP11. The RFP should provide all the information necessary for a consulting firm to prepare itsproposal. This includes: • Instructions to the consultant (including applicable forms and data sheets); • Requirements to specification of pricing (e.g. time-based, lump sum, reimbursable); • Currency arrangements; • Terms of Reference (TOR) describing contract requirements, overall as well as for individual personnel; • Selection method; • Evaluation criteria (technical and financial) by which the award will be determined; • Clarity and propriety of the Borrower’s use of preferences (e.g. the method by which domestic consultants may be favoured); and • Insurance or bond requirements.Other Issues • Unusual provisions; • Proposed attachments to be included in the RFP; • Borrowers’ shortlist of consultants to receive the RFP; and • Draft contract to be awarded.2.3.1.2 CHECKLIST: Review of the Evaluation Report12. The specific contents of the evaluation report will vary according to the selection method applied.However, the following should be included as a minimum:Technical Evaluation (a) Brief description of main events in the selection process prior to the technical evaluation (advertising, the establishment of the shortlist, expressions of interest, withdrawals of firms before proposal submissions, delays, complaints from consultants, extension of proposal submission date, etc.); (b) Brief description of meetings and actions taken by the evaluation committee; (c) Analysis of strengths and weaknesses in relation to the evaluation criteria of each proposal; (d) Summary of the results of the technical evaluation: scores and the award recommendation; and (e) Annexes detailing: • technical scores/ranking given to individual consultants on each evaluation criterion; and • scores given by each individual member of the evaluation committee. 7
  • Annex 3Financial Evaluation (a) Not applicable to quality based, qualifications based and single source selection; (b) An account of adjustments made to the prices of the proposals (correction of arithmetic errors, currency conversion, adjustment for nonmaterial deviations) and determination of the evaluated price; (c) Award recommendation; and (d) An annex with the minutes of the public bid opening. 8
  • Annex 3 – Appendix 1Appendix 1 Checklist 2: Prior Review Procedures: Pre-Qualification of Bidders Checklist 3: Prior Review Procedures: Procurement of Goods and Works Checklist 4: Prior Review Procedures: Procurement of Consulting Services Checklist 5: Procurement Ex Post Review Procedures 1
  • Annex 3 – Appendix 1CHECKLIST 2 ProcurementPRIOR REVIEW PROCEDURES: PRE-QUALIFICATION OF BIDDERS (1/2)Country Project nameLoan number Procurement plan coverage periodIdentification of procurement action Date of submissionRequirements Focus of review procedure Done Result of Observations (Y/N) 6 review 71. Prior to issuance of invitations to pre-qualifya. Draft advertisement and invitation to Critical examination of allpre-qualify contain the following draft documentsinformation: (i) to ensure:- brief description of goods or works to * overall quality of thebe provided documents- contractual conditions * completeness- who is financing the project * accuracy of information- eligibility requirements for potential (ii) to verify compliance with:bidders * applicable procurement rules- time and place where pre-qualification and regulationsdocuments can be obtained * changes/new orientationsb. Draft pre-qualification documents adopted during IFAD missionsmust contain a description of: (iii) to ensure conformity of- proposed procurement pre-qualification with- estimated value of the contract and approved procurement planmajor quantities of work (iv) to ensure that criteria- work or delivery location and listed for the evaluation of pre-procurement scheduling of goods/works qualification applications areto be purchased objective and relate to bidders’- abbreviated specifications and * experience and pastconditions of contract (including performance on similarlanguage and governing law) contracts- main quantities to be procured * financial resources- delivery or implementation schedules * personnel resources- requirements for bid and performance * equipment resources andsecurities facilities available.- how the project is to be financed- payment terms- price adjustment provisions- other detailed information to enablebidders to assess their interest andrespond appropriately- names and addresses of Borrower andofficials in charge of procurement witha statement of their roles- pre-qualification questionnaire,supporting documentation and othersubmissions required and deadline- clear statement on evaluation criteriaand methodology6 Indicate whether or not this review step was completed. All negative answers must be justified in the Observations column7 Indicate degree of compliance of the pre-qualification process with the requirements. All exceptions must be explained in theObservations column 2
  • Annex 3 – Appendix 1 CHECKLIST 2 PRIOR REVIEW PROCEDURES: PRE-QUALIFICATION OF BIDDERS (2/2)Requirements Focus of review procedure Done Result Observations (Y/N) of review2. After evaluation of bidders’ submissionsa. The draft evaluation report contains: Verification and review of- a listing of all applicants these draft documents for- a list of items of information requested of completeness, overallapplicants coherence and reasonableness- the ratings given to each applicant for eachspecific criterionb. The list of pre-qualified bidders includes astatement of their qualificationsc. The list of rejected applicants includes adetailed justification for the rejection No-objection date _____________ Signature CPM_____________________ 3
  • Annex 3 – Appendix 1CHECKLIST 3PRIOR REVIEW PROCEDURES: PROCUREMENT OF GOODS AND WORKS (1/2)Country Project nameLoan number Procurement plan coverage periodIdentification of procurement action Date of submissionRequirements Focus of review procedure Done Result of Observations (Y/N) 8 review 91. Prior to issuance of invitations to bid (ITB)a. Proposed procurement action is in (i) Verification thatconformity with: procurement methods and- applicable rules and procedures procedures retained are in line- subsequent changes reflected in with loan agreement andmission reports applicable rules/regulations.- approved AWPB (ii) Verification of the- approved procurement plan information contained in theand sufficient funds are available to draft bidding documentsconduct the procurement against the AWPB, procurement plan and updated status of loan funds.b. Draft bidding documents must contain Critical examination of draftthe following information: bidding documents to ensure:- invitation to bid * overall quality of the- instructions to bidders (including any documentsproposed attachments) * completeness of the bidding- qualification standards set out for documents packagebidder (when no pre-qualification) * accuracy and exhaustiveness- technical specifications, statement of of information contained in theworks and terms of reference (if bidding documentsapplicable)- proposed pricing (unit prices, lumpsum, …) and currency arrangements- criteria to be used to evaluate offers- clear statement regarding borrower’smethod for domestic preferences- insurance and bond requirements- draft contract to be awarded, includingspecial provisions (advance payments,penalties/bonuses, guarantees, etc.)- borrower’s list of proposed bidders forthe ITB (if applicable)c. The proposed members for the bid Examination of composition ofevaluation committee must be the committee and request ofrepresentative of all relevant information on the backgroundstakeholders and have sufficient of certain members (ifexpertise necessary) in order to ensure participation of all relevant parties and adequate expertise8 Indicate whether or not this review step was completed. All negative answers must be justified in the Observations column9 Indicate degree of compliance of goods/works procurement process with the requirements. All exceptions must be explained in theObservations column 4
  • Annex 3 – Appendix 1 CHECKLIST 3 PRIOR REVIEW PROCEDURES: PROCUREMENT OF GOODS AND WORKS (2/2)Requirements Focus of review procedure Done Result Observations (Y/N) of review2. After evaluation of bidders’ submissionsa. The receipt and opening of bids was Review of the bid openingconducted in accordance with established rules minutes to ensure presence ofand procedures committee members and compliance with proceduresb. The bid evaluation process followed a Review of the evaluationlogical sequence including the following steps: report in order to ensure:- receipt and opening of bids (see a. above) * compliance of bid- examination of bids evaluation and comparison- identification and rejection of substantially process with established rulesnon-responsive bids *strict adherence to the- correction of arithmetical errors and currency evaluation criteria andconversion selection method set out in- adjustment for non-material deviations the ITB- evaluation of bids * use of evaluation sheets,- comparison of bids score cards, etc. by each- identification of the lowest evaluated member of the evaluationresponsive bid committee- post-qualification and award * proper reflection of therecommendation individual evaluations in thec. The evaluation of bids by each individual final scores and overallcommittee member must be evidenced by ranking of bidsscore cards, evaluation sheets, etc. * fairness and transparency of the entire evaluation processd. The draft contract must be essentially Review of draft contract toidentical to the draft provided in the bidding ensure it reflects alldocuments package provisions indicated in the bidding documents No-objection date _____________ Signature CPM_____________________ 5
  • Annex 3 – Appendix 1CHECKLIST 4PRIOR REVIEW PROCEDURES: PROCUREMENT OF CONSULTING SERVICES (1/2)Country Project nameLoan number Procurement plan coverage periodIdentification of procurement action Date of submissionRequirements Focus of review procedure Done Result of Observations (Y/N) 10 review 111. Prior to issuance of request for proposal (RFP)a. Proposed procurement action is in (i) Verification that procurementconformity with: methods and procedures retained- applicable rules and procedures are in line with loan agreement- subsequent changes reflected in and applicable rules andmission reports regulations.- approved AWPB (ii) Verification of the- approved procurement plan information contained in the draftand sufficient funds are available to RFP documents against theconduct the procurement AWPB, procurement plan and updated status of loan funds.b. Draft RFP documents must contain Critical examination of draft RFPthe following information: documents to ensure:- instructions to consultants (including * overall quality of the documentsapplicable forms and data sheets) * completeness of the RFP- proposed attachments to be included documents packagein the RFP * accuracy and exhaustiveness of- requirements regarding specification information contained in theof pricing (e.g. time-based, lump sum, documentsreimbursable, …)- currency arrangements- terms of reference describing contractoverall and for individual personnel- selection method- technical and financial evaluationcriteria to be used to evaluate proposals- cost estimate- clear statement regarding borrower’smethod for domestic preferences- insurance and bond requirements- draft contract to be awarded,including special provisions- borrower’s shortlist of consultants toreceive the RFPc. The proposed members for the RFP Examination of composition ofevaluation committee must be the committee and request ofrepresentative of all relevant information on the background ofstakeholders and have sufficient certain members (if necessary) inexpertise order to ensure participation of all relevant parties and adequate expertise10 Indicate whether or not this review step was completed. All negative answers must be justified in the Observations column11 Indicate degree of compliance of the consulting services procurement process with the requirements. All exceptions must be explainedin the Observations column 6
  • Annex 3 – Appendix 1 CHECKLIST 4 PRIOR REVIEW PROCEDURES: PROCUREMENT OF CONSULTING SERVICES (2/2)Requirements Focus of review procedure Done Result Observations (Y/N) of review2. After technical evaluation of consultants’ proposalsa. The receipt and opening of proposals was Review of the proposalsconducted in accordance with established rules opening minutes to ensureand procedures presence of committee members and compliance with proceduresb. The technical evaluation includes the Review of the technicalfollowing elements: evaluation report in order to- description of the main events in the ensure:selection process (advertising, establishment * adequacy of proposals andof the shortlist, expressions of interest, consultants’ qualificationswithdrawals of firms before proposal with TOR requirementssubmissions, delays, complaints from firms, * compliance of proposalextension of proposal submission date, etc.) evaluation and comparison- brief description of meetings and actions process with established rulestaken by the evaluation committee *strict adherence to the- analysis of strengths and weaknesses of each evaluation criteria andproposal in relation to the evaluation criteria selection method set out in- summary of the results of the technical the ITBevaluation (including detail of scores) * use of evaluation sheets,- annexes detailing technical scores/ranking score cards, etc. by eachgiven to each firm on each evaluation criterion member of the evaluationand scores given by each individual member committeeof the evaluation committee * proper reflection of the- award recommendation individual evaluations in thec. The evaluation of bids by each individual final scores and overallcommittee member must be evidenced by ranking of technical proposalsscore cards, evaluation sheets, etc. * fairness and transparency of the entire evaluation processd. The draft contract must be essentially Review of draft contract toidentical to the draft provided in the bidding ensure it reflects alldocuments package provisions indicated in the RFP documents3. After financial evaluation of consultants’ proposals(not applicable to quality-based, qualifications-based, single source selection and individual consultant selection)a. The financial evaluation includes the Review of the financialfollowing elements: evaluation report in order to- an account of adjustments made to the prices ensure:of the proposals * compliance of financial- correction of arithmetic errors evaluation process with- currency conversion established rules- adjustment for nonmaterial deviations * correct determination of the- determination of the evaluated price evaluated price- the award recommendation * award recommendation- an annex with the minutes of the public based on the best overallproposals opening (see 2.a. above) score No-objection date _____________ Signature CPM_____________________ 7
  • Annex 3 – Appendix 1CHECKLIST 5 – PROCUREMENT EX POST REVIEW PROCEDURES (1/2)Country Project nameLoan number Procurement plan coverage periodWithdrawal application # Supervision mission # - DateRequirements Focus of review procedure Done Result of Observations (Y/N) 12 review 131. At Headquartersa. Procurement documents Review of ex post procurementsubmitted to IFAD’s ex post documents submitted inreview as part of requests for relation with withdrawalapproval of withdrawal application to ensure:application must: * timely submission by PMU- include bidding documents, * completeness of submissionevaluation reports, awardrecommendations, copies ofsigned contracts and updatedcontract record- be sent to IFAD prior to thefirst disbursement requestb. Procurement actions are Selection of a sample ofreviewed by IFAD on a sample procurement transactions frombasis the WA using 2 criteria: * representativeness of transactions (type and size of procurement) * prior project performancec. Procurement actions must be: Critical examination of- in conformity with applicable procurement documents torules and procedures, approved ensure:AWPB and procurement plan * conformity with applicable- within the limit of funds rules and regulationsavailable under the relevant * coherence with AWPB andexpenditure category procurement plan * funds availability (against IFAD loan status records)LEGENDWA Withdrawal ApplicationSOE Statement of Expenditure12 Indicate whether or not this review step was completed. All negative answers must be justified in the Observations column13 Indicate degree of compliance of the procurement process with the requirements. All exceptions must be explained in theObservations column 8
  • Annex 3 – Appendix 1CHECKLIST 5 – PROCUREMENT EX POST REVIEW PROCEDURES (2/2)Requirements Focus of review procedure Done Result of review Observations (Y/N)2. During supervision missionsa. As part of the review of Review of project procurementprocurement under the SOE and accounting records tomodality, the following is made ensure the existence and properavailable to the IFAD maintenance/updating of filessupervision team:- all procurement anddisbursement files- the updated contract record- the updated individual contractmonitoring formsb. Procurement actions are Selection of a sample ofreviewed by IFAD on a sample procurement transactions frombasis the SOE using 2 criteria: * representativeness of transactions (type and size of procurement) * prior project performancec. Procurement actions must be: Critical examination of- in conformity with applicable procurement documents torules and procedures, approved ensure:AWPB and procurement plan * conformity with applicable- within the limit of funds rules and regulationsavailable under the relevant * coherence with AWPB andexpenditure category procurement plan * funds availability (against IFAD loan status records)d. An assessment of physical * Undertaking of site visits forprogress of procurement actions works, examination of goodsand quality of final product must received, review of consultants’be conducted reports, etc.e. An assessment of financial * Review of accounting recordsprogress of procurement actions against contract monitoringmust be conducted forms and progress reports * Identification of procurement issues and constraints * Issuance of recommendations for improvement of the procurement process 9
  • Annex 3 – Appendix 2Appendix 2 Procurement Module: Sample Individual Contract Monitoring Form Procurement Module: Sample Contract Record Procurement Module: Sample Summary Procurement Table 1
  • Annex 3 – Appendix 2PROCUREMENT MODULESAMPLE INDIVIDUAL CONTRACT MONITORING FORMProcurement file #: __________________ Component/Activity: ________________Description of contract: _______________________________________________________Project officer: _____________________ Date of no objection: ________________Name of supplier: __________________ Bank details: _______________________Address: _________________________ _______________________ _________________________ _______________________ Contract summaryDocument Number Amount Dates (start-end)Original contractAmendment # 1Amendment # 2Amendment # 3Amendment # 4Total Monitoring of paymentsPayment schedule Approved Payments issued Balance progress due on certificate contractMilestone Amount Number Date Invoice # Date Amount Check #TOTAL 2
  • PROCUREMENT MODULE SAMPLE CONTRACT RECORD PROGRAMME TITLE ________________________________ IFAD LOAN # ______________ MONTH/YEAR ____________ Date _______________________ 1 2 3 4 5 6 7 8 9 10 11 Contract # % of loan Procurement Contract Name/address Description of Country Contract Contract Expenditure Remarks/ category date of contractor goods, works or of origin duration amount category Date of services and (in (refer to IFAD no delivery currency Loan objection date of Agreement Annex 3 – Appendix 2 contract) Annex)3 3
  • Annex 3 – Appendix 2SAMPLE SUMMARY PROCUREMENT TABLEProcurement category Procurement Nature of Applicable IFAD prior method consultation rules reviewGoods and services (otherthan consulting services) > USD 10 000 ICB if > $100 000 Open competition IFAD Yes NCB if from $10 000 Open competition National rules Yes to $100 000 < USD 10 000 Quotations from 3 Limited National rules No suppliers - RFQ competition (small value)WorksAll amounts NCB Open competition National rules YesIndividual ConsultantsAll amounts Selection based on Limited IFAD Yes comparison of at least competition 3 CVs (limited number of suppliers and/or highly specialized services)Consulting firmsAll amounts RFP Limited National rules Yes competition (same) Source:Loan agreement, IFAD Procurement Guidelines, National Public Procurement CodeLegendICB: International Competitive BiddingNCB: National Competitive BiddingRFQ: Request for QuotationsCV: Curriculum VitaeRFP: Request for Proposals 4
  • ANNEX 4 SAMPLE MATRIX OF RESPONSIBILITIES BETWEENIFAD/PMU AND BORROWER IN PROCUREMENT PROCESSES
  • Annex 4SAMPLE MATRIX OF RESPONSIBILITIESTask PMU IFAD BorrowerPreparatory activitiesProcurement plan R A I(including proposal for grouping in lots/packages)Purchase requisition R - -Pre-qualification of biddersInvitation to pre-qualify and pre-qualification documents R N.O -Evaluation of submissions and list of pre-qualified bidders R N.O IGoods and works > USD 10 000Technical specifications R - -Invitation to bid and draft bidding documents for ICB R N.O CInvitation to bid and draft bidding documents for NCB R N.O CEvaluation of bids R N.O RContract R N.O AGoods and works < USD 10 000Technical specifications R - -Request for quotations R - -Evaluation of quotations R - -Purchase order or brief contract R - -Consulting servicesTerms of Reference R - -Request for proposal (firms) and draft RFP documents R N.O CRequest for expression of interest (individuals) R N.O CTechnical evaluation R N.O RFinancial evaluation R N.O RContract R N.O ACommon tasks for all categories of procurementExtension of bid submission deadline R N.O CBid opening R - CDirect contracting and other waivers of competitive bidding R A IAdvance without bank guarantee R A -Contract amendments R A AContract record R I -LegendR Party Responsible for the actionA ApprovalN.O No objectionC In Consultation withI For Information 1
  • ANNEX 5 RESPONSIBILITY MATRIX LOAN ADMINISTRATIONINCLUDING PROCUREMENT
  • Annex 5 ASIA AND THE PACIFIC DIVISION LOAN ADMINISTRATION WORKFLOW AND ASSIGNMENT OF TASKS Portfolio Loan Loan ACTIONS REQUIRED PA CPM RFMO Treasury/FT Adviser Asst/FC Officer/FC1. Draft Loan AgreementReview of loan administrationprovisions/ensure adequate x x xcoverageParticipation in loan negotiations x x x x x2. Letter to the BorrowerPreparation of draft letter x xFinal review x xClearance xDispatch to Borrower after AP’s X X Xsignature3. Procurement ReviewReview of Procurement Plan in Xconjunction with AWPBTechnical Review XApproval of Procurement Plan xReview of procurement documents xDrafting of communications to XProject on findings / ”noobjection”Approval/dispatch of xcommunications on procurement4. Loan Disbursements4.1.WithdrawalApplication/ChecklistPreparation of Checklist X XEntry of WA in Tracking Sheet x XProcessing and review of WA x XFinal review and certification of x XWAOverall review and approval of XWAFollow up on pending issues andpartial WA and maintain “items Xpending” fileProcess requests for amendment Xand reallocation of fundsMaintain project disbursement fileand conduct periodic Xreconciliations with LGS records 1
  • Annex 5 Portfolio Loan Loan ACTIONS REQUIRED PA CPM RFMO Treasury/FT Adviser Asst/FC Officer/FC4.2. Payment OrderPreparation of draft X XApproval of draft XReview accuracy of POAssignment & control of X Xsequential numberApproval of PODispatch to Loans & Grants XAdministration Section of FC4.3. Payment Order LogbookRecording, maintenance & control XPreparation of statistics X4.4. Communication to PMU onWA findingsDrafting & sending of routine xdisbursement mattersDrafting and sending of complex Review and x xdisbursement matters b clear4.5. Withdrawal AuthorizationData entry of PO in LGS xUndertake FC checking steps xGenerate withdrawal authorization xReview and approval of xwithdrawal authorization4.6. Payment ofW/AuthorizationData entry of W/A in People Soft x TACreation of SWIFT message to x TAIFAD depository bankVerification, approval and dispatch x TOof SWIFT messageData entry of provisional andactual value date of payment in x TALGS4.7. Payment AdviceGeneration/printing of advice from xLGS(Dispatch to Borrower, PMU, et alby Print Shop) 2
  • Annex 5 Portfolio Loan Loan ACTIONS REQUIRED PA CPM RFMO Treasury/FT Adviser Asst/FC Officer/FC4.8. Special Commitment4.8 (a) Issuance of SC LetterPreparation of Checklist xInitial review of WA xCertification of WA xPreparation of SC Letter xReview and approval of SC Letter x ControllerMaintenance and control of SCL xissuedDispatch of SCL to bank x4.8 (b) Payment Request fromBankChecking of SC payment xdetails/availability of SC fundsPreparation of PO xApproval of PO x4.9. Contract PaymentSummaryCreation and update of contract xdataControl and review of payments x4.10. Special Account RecoveryControlApproval of recovery rate xMonitoring and control of recovery x xReconciliation with LGS x4.11. Special Account LettersIn 2 stages: After payment ofInitial Deposit and at start ofrecovery processDrafting of letters xReview of letter xClearance of letter x ( as necessary)Approval xDispatch to Borrower x4.12. Closure of Loan AccountUndertake closing steps x xReview and control xUndertake loan closing procedures xApproval of loan closure xAdvice to Borrower x 3
  • Annex 5 Portfolio Loan Loan ACTIONS REQUIRED PA CPM RFMO Treasury/FT Adviser Asst/FC Officer/FC5. Audit ReportReview of auditor’s TOR x x x AOApproval of TOR XMonitoring of Audit Report X x AOSubmissionReview of Audit Report x x x AOReview and follow-up of audit x x x AOrecommendationsDrafting of communications to x AOProject on audit mattersApproval of communications x X6. Monitoring of Portfolio XPerformance (quarterly)PA Programme AssistantCPM Country Programme ManagerRFMO Regional Financial Management OfficerPA Portfolio AdviserTA Treasury AssistantTO Treasury OfficerAO Audit OfficerFC Loans Unit 4