East and Southern Africa, Procurement Overview

1. Procurement Overview Dec 2010

4. Responsibilities Implementation of project/ programme including award & administration of contracts Borrower / Recipient IFAD supervises the Borrower’s procurement actions in order to ensure that funds are used for the purpose of the Financing agreement with due attention to considerations of economy, efficiency & social equity IFAD

7. Formation of Bid Evaluation Committee ; N-O by IFAD Prepare Specifications and tender documents (Advertisement/ ITBs/ RFPs/ RFQs as applicable) Bid Evaluation and draft contract IFAD Prior Review & No-Objection (if required) Contract Award to best evaluated bid ITB – Invitation to Bid RFP – Request for Proposal RFQ – Request for Quotation Key Tendering Process

8. Procurement Methods Different methods (ranging from International Competitive Bidding to Direct Contracting) are used for the different categories of procurement depending on nature, amount & other criteria - guiding principle being economy, efficiency & social equity

13. Compatibility with National Rules & IFAD’s Guidelines NATIONAL RULES & REGULATIONS MAY BE ADOPTED IF THEY ARE ASSESSED TO BE COMPATIBLE WITH IFAD’S GUIDELINES Compatible means that they respect the main basic principles of IFAD’s guidelines N.B. In the unlikely case that some provisions in Schedule 4 of the Financing Agreement/ LTB are not in line with IFAD’s Procurement guidelines, the provisions of Schedule 4 shall prevail

14. IFAD Prior Review Schedule 4 of the Financing Agreement/ LTB lists all major procurement contracts to be awarded on the Project, their estimated value, category (goods, works, services), the monetary threshold for IFAD’s prior review The thresholds may always be modified from time to time as notified by the Fund to the Borrower/ Recipient (needs agreement by both parties if the threshold is decreased)

16. Review of Prequalification of Bidders

18. Procurement Process for Goods, Services & Works Best use of competitive bidding Step 1 Step 2 Procurement List And Bulk Purchase Procurement Plan Model of Procurement plan: proposed minimum contents and to be updated periodically (See Procurement Handbook)

19. Step 3 Preparation of Bidding Documents Procurement Process for Goods, Services & Works GOODS SERVICES WORKS Bidding documents or Request for quotations Request for Proposals from shortlisted firms Bidding documents or Request for quotations Invitation to bid Letter of invitation & general and specific conditions Invitation to bid Instructions to bidders with: * Bid security (Lumpsum) * Bid evaluation method and process etc. Instructions to Consultants with: * Proposal preparation info * Proposal evaluation method and process etc. Instructions to bidders with: * Bid security (Lumpsum) * Bid evaluation method and process etc. Conditions of contract (general and special) Acceptable to IFAD Conditions of contract (general and special)- International Federation of Consulting Engineers (FIDIC) for large contracts above 10 million USD Schedule of requirements and technical specifications Terms of Reference (TORs) Scope of works, Bill of quantities and drawings Prices schedules Breakdown of costs Prices schedules Contract form Contract form Contract form Annexes for bid bonds and performance security, tax clearance, etc..; No proposal or performance securities

20. Procurement Process for Goods, Services & Works TECHNICAL SPECIFICATIONS (TS) FOR GOODS: Inappropriate, irrelevant, too many details lead to a restriction of competition: reference to an exclusive mark/ model (IT equipment), too many technical details (computers/ laptops), project or country specifications (give explanations), limit to essential criteria (adherence to TS evaluation), warranty & upgraded equipment, check specialists, visit potential suppliers 70 – 80% OF THE PROBLEMS OF A BID EVALUATION COME FROM A BAD DEFINITION OF TECHNICAL SPECIFICATIONS TERMS OF REFERENCE (TORs) FOR CONSULTANCY SERVICES To be done by the final user of the services and not by the procurement officer or the financial controller SCOPE OF WORKS, Bill of Quantities (BoQ), DRAWINGS: use the services of an engineering expert or office Crucial Steps

33. Step 9 Contract Notification Step 10 Contract Execution & Management Procurement Process for Goods, Services & Works

37. Thank you