IFAD Procurement Guidelines revised 2008

Guidelines Procurement responsibilities under
IFAD Loan and Grant Direct Supervision

PI Division
6 March 2008

Guidelines Procurement responsibilities under
IFAD Loan and Grant Direct Supervision

Introduction

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 1 .
It also draws from information distributed to IFAD staff during the Direct Supervision Training
Programme held at Casa San Bernardo during 2007/08.

2. Loan administration is the part of the supervision process that deals with the issues of
disbursement, flow of funds, procurement of goods, works and consulting services, financial controls
and management aspects of implementation (budgeting, accounting, financial planning, reporting and
audit). These guidelines provide direction on the procurement element of loan administration. The
responsibility matrix for loan administration within IFAD, including procurement, is provided as
Annex 5.

Letter to the Borrower (LttB)

3. Based on the standard format letter issued by OL/FC 2 , the Letter to the Borrower (LttB) is
prepared by the PI Regional Financial Management Officer (RFMO) and signed by the Assistant
President, PD. Soon after loan signing, the LttB is sent to the Borrower’s representatives and officials
attached to the project or programme. The LttB clearly explains the action to be taken by the
Borrower in order to start withdrawal of funds and spells out the methods and procedures for
withdrawal of funds, procurement of goods, works and consulting services as well as the financial and
audit reporting requirements. A copy of the IFAD Guidelines for Procurement is annexed to the
LttB. Furthermore, standard forms, checklists and instructions to facilitate the Borrower’s compliance
with procedures are also attached to the LttB.

Procurement

4. The IFAD Procurement Guidelines of December 2004 3 and the Loan Agreement, which governs
the legal relationship between the Borrower and IFAD, should always be consulted for a description
of applicable procurement procedures. A sample matrix of responsibilities between
PMU/IFAD/Borrower is given in Annex 4.

5. Procurement Methods. There are several methods of procurement, both for procurement of
goods and works and for procurement of consulting services. The methods for procurement of goods
and works are described in Part B of the Procurement Guidelines, while the methods for procurement
of consulting services are described in Part C of the Procurement Guidelines. Schedule 4 of the loan
agreement specifies the method(s) permitted for the borrower to procure goods, works and services in
the individual project. If applicable, Schedule 4 also specifies the threshold amounts for the individual
procurement methods. Annex 1 provides a table showing the procurement methods and their main
characteristics/description.

6. Supervision Tasks in Procurement. Procurement is fundamentally the responsibility of the
Borrower. However, in IFAD the CPM and RFMO are involved in the procurement process in the
following instances:

1
http://www.ifad.org/operations/projects/supervision/guidelines.pdf
2
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 for
IFAD review are now sent electronically to CPMs there is a substantial risk that these may be delayed
or lost – particularly considering the high volume of email communication and frequent travel
schedule faced by CPMs. In order to more proactively manage this aspect a central email address has
been created. The address is piprocurement@ifad.org. On receipt, any documentation in the central
email address will be sent immediately be to the CPM, PA and IRC and logged in the Procurement
Tracking Sheet. The PA and CPM then have responsibility for follow up in accordance with the
workflow 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 the
region advising to use the central email address for the purpose of submitting procurement related
documents.

9. Review of the Procurement Plan. The Borrower is to have a duly approved annual work plan
and budget 4 , which includes a procurement plan for all major procurements of goods, works and
consulting services to be carried out within a period of at least 18 months (i.e. extending up to six
months beyond the end of the AWPB). The first procurement plan (elaborated as part of project
appraisal) is to be updated after loan effectiveness and is to cover the initial 18 months of the project
implementation period. This is to be submitted to IFAD for approval. The procurement plan is
updated annually (or as needed) to cover every subsequent 18-month period of project implementation
as part of the normal AWPB development exercise.

10. The Procurement Plan must as a minimum identify in reasonable detail (a) the various contracts
for goods, works and consulting services required to implement the project; (b) the proposed methods
of procurement for such contracts that are permitted under the loan agreement; and (c) the related
IFAD review procedures. A checklist for review and a sample of the lay-out of a well-prepared
procurement plan are presented in Annex 2. A standard Procurement Plan template will be available
shortly.
11. Checklists to be used. Procurement supervision includes office-based and field-based review as
well as Prior Review and Ex-Post Review. Prior review requiring the provision of IFAD’s “no
objection” is mainly an office-based activity. Ex-post review is mainly field-based which includes the
review 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 procurement
review.
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 Procedures
13. For further information, refer to Annex 3: Procurement Review Process.
14. Procurement Workflow: Schedule 4 of Loan Agreements may provide the financial threshold
for procurement that is subject to prior review 5 . All procurement that is valued at the prescribed
financial threshold should be submitted by the PMU to the CPM at the following stages of the
procurement process for provision of clearances and “no objection”:

4
Refer to PI Results Orientation AWPB Guidelines available on PI Desk
5
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 award
15. During the project implementation phase, the Programme Assistant and the Regional Financial
Management Officer (RFMO) will provide support and assistance to the CPM in the review of
procurement documents to ensure compliance to provisions in loan agreement and procurement
guidelines. For complex cases of procurement, a technical specialist should be contracted to provide
technical expertise in the review of the documentation submitted by PMU. This workflow process is
detailed 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 and
complex works or in situations where there is a potential for substantial time and cost savings in the
procurement of goods and works by evaluation of only bids from qualified bidders. Prequalification
involves review by IFAD in two instances: (a) prior to the borrower’s issuance of invitations to
prequalify, IFAD reviews 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; and (b) following the borrower’s evaluation
of submissions, IFAD reviews 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.

17. Prior and Ex-post Review of Procurement. Irrespective of the method of procurement to be
employed, the loan agreement may specify the threshold for prior review. For example, for contracts
valued at more than the threshold amount, the review procedure described in Appendix I of the
Procurement Guidelines must be applied. IFAD reviews the borrower’s procurement procedures,
documents, bid evaluations, award recommendations and contracts 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 the various categories of goods, works and
consulting services to be financed, in whole or in part, from the IFAD loan. Where prior review is not
required, through supervision IFAD conducts a post-award review on a sample basis of
documentation and contracts submitted as supporting documents for withdrawal applications. The
procedure for prior review differs for procurement of goods and works and procurement of consulting
services.

3

18. Checklists for the review of prequalification of bidders, prior and post approval are provided in
Appendix 2 - Annex 3. Sample summary procurement table/individual contract monitoring form and
contract 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, Disbursement
and Financial Management in Projects with Community Participation can be found on the PI //desk. It
is intended that PI will finalise and make available these standardized documents shortly.

20. Performance measurement/processing time: as procurement is a critical element of
implementation, it is expected that “no objection” is given within one week from receipt of
documentation 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 up
and 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 an
orderly manner in the PI filing room. This is to be maintained according to individual loan/grant along
with any related correspondences and checklists.

22. All incoming request for no objection should be forwarded to the designated divisional email
address piprocurement@ifad.org. Any documentation received directly by the CPM should be sent to
this email address for forwarding to the Mail room/IRC. The mail will be checked on a daily basis and
request logged in by Portfolio Management Group and forwarded to the concerned CPM and PA. In
case of absence, the documentation will be reviewed by the person delegated.

4

ANNEX 1

THE 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 community
1

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 beneficiaries
2

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 of
3

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 2

THE PROCUREMENT IMPLEMENTATION PLAN

Annex 2

THE PROCUREMENT IMPLEMENTATION PLAN

Review of the Procurement Plan

1. The loan agreement (Article III) requires the Borrower to have a duly approved annual work
plan and budget (AWPB), which includes a procurement implementation plan (PIP) for all major
procurements of goods, works and consulting services to be carried out within a period of at least
18 months (i.e. extending up to six months beyond the end of the AWPB). The AWPB and PIP are
submitted 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 loan
effectiveness and is to cover the initial 18 months of the project implementation period and is to be
submitted to IFAD for approval. The procurement plan is to be updated annually (or as needed) to
cover every subsequent 18-month period of project duration as part of the AWPB exercise. There is
no standard format or template for a procurement plan but the plan must as a minimum identify in
reasonable 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 (including
procurement implementation plan) and submit it to IFAD for review and approval before the
beginning 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 for
guiding project procurement implementation and as a collection of benchmarks (dates and method of
procurement) against which actual implementation progress can be measured throughout the year. A
poorly thought-through PIP may cause a loss of time in the procurement process. Time spent on a
thorough review of the PIP (with particular emphasis on the method of procurement to be followed
and the need or not for IFAD prior approval) is therefore a good investment: getting things right at
this stage can save a lot of time and effort later in the year, not only for the borrower but also for
IFAD staff.

CHECKLIST: REVIEW OF THE PROCUREMENT IMPLEMENTATION PLAN

5. From his/her knowledge of the project and from supervision missions and other interaction with
the project during the year, the CPM would have developed his/her own checklist of project-specific
issues that need to be addressed and reviewed in the AWPB. The checklist below is aimed at detecting
major 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 2

Procurement 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 in
Appendix 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 /8
1
1

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 3

PROCUREMENT REVIEW PROCESS

Annex 3

PROCUREMENT REVIEW PROCESS

1. The general policies and procedures applicable to project procurement in IFAD financed
projects 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 specific
provisions for the procurement of goods, works and consulting services in the respective project. The
following is limited to providing practical guidance on some of the more important aspects of
procurement-related tasks and procedures such as these present themselves in the majority of projects.

Methods of Procurement

2. There are several methods of procurement, both for procurement of goods and works and for
procurement of consulting services.

3. The methods for procurement of Goods and Works (described in Procurement Guidelines
Part 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 the
procurement of goods, works and consulting services. If applicable, Schedule 4 also specifies other
relevant information on procurement, e.g. procurement handled by IAPSO/UN agencies or other
institutions.

6. Supervision Tasks in Procurement. You will find in the following Appendices the checklists
to be used during the procurement review process and the forms to be utilized to record contracts
reviewed 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 Bidders

7. Prequalification of bidders is usually done for large and complex works or in situations where
there is a potential for substantial time and cost savings in the procurement of goods and works by
evaluation 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 3

CHECKLIST: Review of Draft Prequalification Documents

9. The advertisement and invitation for prequalification should contain the following
information:

(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 the
advertisement 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’s
experience, financial resources, personnel resources and equipment resources. Ambiguous
requirements such as “general reputation”, or “cooperativeness”, and requirements that are irrelevant
or unfairly discriminatory should be avoided.

CHECKLIST: Review of Evaluation Report and Draft List of Bidders

12. IFAD does not require a specific format for the evaluation report, but the report should include
at 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 Review

1. Irrespective of the method of procurement to be employed, the loan agreement generally specifies
the threshold for prior review (i.e. for contracts valued at more than the threshold amount, the review
procedure described in Appendix I of the Procurement Guidelines must be applied). IFAD reviews the
borrower’s procurement procedures, documents, bid evaluations, award recommendations and
contracts 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 the
various categories of goods, works and consulting services to be financed, in whole or in part, from
the IFAD loan. Where prior review is not required, IFAD conducts a post-award review on a sample
basis 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 of
consulting services.

Prior review of Procurement of Goods and Works

3. Prior review of procurement of goods and works involves review by IFAD in two instances (see
flow 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

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 3

CHECKLIST: Review of Draft Bidding Documents
General
4. 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 Documents
5. Bidding documents should provide all the information necessary for a bidder to prepare its bid for
the 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 bid
evaluation committee it would be pertinent at this stage to request and review information about the
proposed composition of the committee in order to ascertain that there is sufficient representation of
relevant agencies/stakeholders and expertise.

CHECKLIST: Review of the Bid Evaluation Report
7. There is no standard format for the bid evaluation report, but the report should to the extent
possible cover and reflect the logical sequence of a standard bid evaluation process in the following
manner:
(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 3

8. “Other information as IFAD may reasonably request”: It would in most cases be relevant to
request evidence of the evaluation carried out by each member of the evaluation committee (score
cards, evaluation sheets, etc.).
Prior Review of Procurement of Consulting Services

9. Prior review of procurement of consulting services involves review by IFAD in up to four
instances (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

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 3

CHECKLIST: Review of Draft RFP

General

10. 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 RFP

11. The RFP should provide all the information necessary for a consulting firm to prepare its
proposal. 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 Report

12. 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 3

Financial 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


Appendix 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


CHECKLIST 2 Procurement
PRIOR REVIEW PROCEDURES: PRE-QUALIFICATION OF BIDDERS (1/2)

Country Project name
Loan number Procurement plan coverage period
Identification of procurement action Date of submission

Requirements Focus of review procedure Done Result of Observations
(Y/N) 6 review 7
1. Prior to issuance of invitations to pre-qualify
a. Draft advertisement and invitation to Critical examination of all
pre-qualify contain the following draft documents
information: (i) to ensure:
- brief description of goods or works to * overall quality of the
be 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 regulations
documents can be obtained * changes/new orientations
b. Draft pre-qualification documents adopted during IFAD missions
must contain a description of: (iii) to ensure conformity of
- proposed procurement pre-qualification with
- estimated value of the contract and approved procurement plan
major 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 are
to be purchased objective and relate to bidders’
- abbreviated specifications and * experience and past
conditions of contract (including performance on similar
language and governing law) contracts
- main quantities to be procured * financial resources
- delivery or implementation schedules * personnel resources
- requirements for bid and performance * equipment resources and
securities facilities available.
- how the project is to be financed
- payment terms
- price adjustment provisions
- other detailed information to enable
bidders to assess their interest and
respond appropriately
- names and addresses of Borrower and
officials in charge of procurement with
a statement of their roles
- pre-qualification questionnaire,
supporting documentation and other
submissions required and deadline
- clear statement on evaluation criteria
and methodology

6
Indicate whether or not this review step was completed. All negative answers must be justified in the Observations column
7
Indicate degree of compliance of the pre-qualification process with the requirements. All exceptions must be explained in the
Observations column
2


CHECKLIST 2
PRIOR REVIEW PROCEDURES: PRE-QUALIFICATION OF BIDDERS (2/2)

Requirements Focus of review procedure Done Result Observations
(Y/N) of
review
2. After evaluation of bidders’ submissions
a. 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, overall
applicants coherence and reasonableness
- the ratings given to each applicant for each
specific criterion
b. The list of pre-qualified bidders includes a
statement of their qualifications
c. The list of rejected applicants includes a
detailed justification for the rejection

No-objection date _____________ Signature CPM_____________________

3


CHECKLIST 3
PRIOR REVIEW PROCEDURES: PROCUREMENT OF GOODS AND WORKS (1/2)


(Y/N) 8 review 9
1. Prior to issuance of invitations to bid (ITB)
a. Proposed procurement action is in (i) Verification that
conformity with: procurement methods and
- applicable rules and procedures procedures retained are in line
- subsequent changes reflected in with loan agreement and
mission reports applicable rules/regulations.
- approved AWPB (ii) Verification of the
- approved procurement plan information contained in the
and sufficient funds are available to draft bidding documents
conduct the procurement against the AWPB,
procurement plan and updated
status of loan funds.
b. Draft bidding documents must contain Critical examination of draft
the following information: bidding documents to ensure:
- invitation to bid * overall quality of the
- instructions to bidders (including any documents
proposed attachments) * completeness of the bidding
- qualification standards set out for documents package
bidder (when no pre-qualification) * accuracy and exhaustiveness
- technical specifications, statement of of information contained in the
works and terms of reference (if bidding documents
applicable)
- proposed pricing (unit prices, lump
sum, …) and currency arrangements
- criteria to be used to evaluate offers
- clear statement regarding borrower’s
method for domestic preferences
- insurance and bond requirements
- draft contract to be awarded, including
special provisions (advance payments,
penalties/bonuses, guarantees, etc.)
- borrower’s list of proposed bidders for
the ITB (if applicable)
c. The proposed members for the bid Examination of composition of
evaluation committee must be the committee and request of
representative of all relevant information on the background
stakeholders and have sufficient of certain members (if
expertise necessary) in order to ensure
participation of all relevant
parties and adequate expertise

8
9
Indicate degree of compliance of goods/works procurement process with the requirements. All exceptions must be explained in the
Observations column
4


CHECKLIST 3
PRIOR REVIEW PROCEDURES: PROCUREMENT OF GOODS AND WORKS (2/2)

(Y/N) of
review
2. After evaluation of bidders’ submissions
a. The receipt and opening of bids was Review of the bid opening
conducted in accordance with established rules minutes to ensure presence of
and procedures committee members and
compliance with procedures
b. The bid evaluation process followed a Review of the evaluation
logical 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 rules
non-responsive bids *strict adherence to the
- correction of arithmetical errors and currency evaluation criteria and
conversion 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 evaluation
responsive bid committee
- post-qualification and award * proper reflection of the
recommendation individual evaluations in the
c. The evaluation of bids by each individual final scores and overall
committee member must be evidenced by ranking of bids
score cards, evaluation sheets, etc. * fairness and transparency of
the entire evaluation process
d. The draft contract must be essentially Review of draft contract to
identical to the draft provided in the bidding ensure it reflects all
documents package provisions indicated in the
bidding documents


5


CHECKLIST 4
PRIOR REVIEW PROCEDURES: PROCUREMENT OF CONSULTING SERVICES (1/2)


(Y/N) 10 review 11
1. Prior to issuance of request for proposal (RFP)
a. Proposed procurement action is in (i) Verification that procurement
conformity with: methods and procedures retained
- applicable rules and procedures are in line with loan agreement
- subsequent changes reflected in and applicable rules and
mission reports regulations.
- approved AWPB (ii) Verification of the
- approved procurement plan information contained in the draft
and sufficient funds are available to RFP documents against the
conduct the procurement AWPB, procurement plan and
updated status of loan funds.
b. Draft RFP documents must contain Critical examination of draft RFP
the following information: documents to ensure:
- instructions to consultants (including * overall quality of the documents
applicable forms and data sheets) * completeness of the RFP
- proposed attachments to be included documents package
in the RFP * accuracy and exhaustiveness of
- requirements regarding specification information contained in the
of pricing (e.g. time-based, lump sum, documents
reimbursable, …)
- currency arrangements
- terms of reference describing contract
overall and for individual personnel
- selection method
- technical and financial evaluation
criteria to be used to evaluate proposals
- cost estimate
- clear statement regarding borrower’s
method for domestic preferences
- insurance and bond requirements
- draft contract to be awarded,
including special provisions
- borrower’s shortlist of consultants to
receive the RFP
c. The proposed members for the RFP Examination of composition of
evaluation committee must be the committee and request of
representative of all relevant information on the background of
stakeholders and have sufficient certain members (if necessary) in
expertise order to ensure participation of all
relevant parties and adequate
expertise

10
11
Indicate degree of compliance of the consulting services procurement process with the requirements. All exceptions must be explained
in the Observations column
6


CHECKLIST 4
PRIOR REVIEW PROCEDURES: PROCUREMENT OF CONSULTING SERVICES (2/2)

(Y/N) of
review
2. After technical evaluation of consultants’ proposals
a. The receipt and opening of proposals was Review of the proposals
conducted in accordance with established rules opening minutes to ensure
and procedures presence of committee
members and compliance
with procedures
b. The technical evaluation includes the Review of the technical
following elements: evaluation report in order to
- description of the main events in the ensure:
selection process (advertising, establishment * adequacy of proposals and
of the shortlist, expressions of interest, consultants’ qualifications
withdrawals of firms before proposal with TOR requirements
submissions, delays, complaints from firms, * compliance of proposal
extension of proposal submission date, etc.) evaluation and comparison
- brief description of meetings and actions process with established rules
taken by the evaluation committee *strict adherence to the
- analysis of strengths and weaknesses of each evaluation criteria and
proposal in relation to the evaluation criteria selection method set out in
- summary of the results of the technical the ITB
evaluation (including detail of scores) * use of evaluation sheets,
- annexes detailing technical scores/ranking score cards, etc. by each
given to each firm on each evaluation criterion member of the evaluation
and scores given by each individual member committee
of the evaluation committee * proper reflection of the
- award recommendation individual evaluations in the
c. The evaluation of bids by each individual final scores and overall
committee member must be evidenced by ranking of technical proposals
score cards, evaluation sheets, etc. * fairness and transparency of
the entire evaluation process
d. The draft contract must be essentially Review of draft contract to
identical to the draft provided in the bidding ensure it reflects all
documents package provisions indicated in the
RFP documents
3. 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 financial
following 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 overall
proposals opening (see 2.a. above) score


7


CHECKLIST 5 – PROCUREMENT EX POST REVIEW PROCEDURES (1/2)

Withdrawal application # Supervision mission # - Date

(Y/N) 12 review 13
1. At Headquarters
a. Procurement documents Review of ex post procurement
submitted to IFAD’s ex post documents submitted in
review as part of requests for relation with withdrawal
approval of withdrawal application to ensure:
application must: * timely submission by PMU
- include bidding documents, * completeness of submission
evaluation reports, award
recommendations, copies of
signed contracts and updated
contract record
- be sent to IFAD prior to the
first disbursement request
b. Procurement actions are Selection of a sample of
reviewed by IFAD on a sample procurement transactions from
basis the WA using 2 criteria:
* representativeness of
transactions (type and size of
procurement)
* prior project performance
c. Procurement actions must be: Critical examination of
- in conformity with applicable procurement documents to
rules and procedures, approved ensure:
AWPB and procurement plan * conformity with applicable
- within the limit of funds rules and regulations
available under the relevant * coherence with AWPB and
expenditure category procurement plan
* funds availability (against
IFAD loan status records)

LEGEND
WA Withdrawal Application
SOE Statement of Expenditure

12
13
Indicate degree of compliance of the procurement process with the requirements. All exceptions must be explained in the
Observations column
8


CHECKLIST 5 – PROCUREMENT EX POST REVIEW PROCEDURES (2/2)

Requirements Focus of review procedure Done Result of review Observations
(Y/N)
2. During supervision missions
a. As part of the review of Review of project procurement
procurement under the SOE and accounting records to
modality, the following is made ensure the existence and proper
available to the IFAD maintenance/updating of files
supervision team:
- all procurement and
disbursement files
- the updated contract record
- the updated individual contract
monitoring forms
b. Procurement actions are Selection of a sample of
reviewed by IFAD on a sample procurement transactions from
basis the SOE using 2 criteria:
* representativeness of
transactions (type and size of
procurement)
* prior project performance
c. Procurement actions must be: Critical examination of
- in conformity with applicable procurement documents to
rules and procedures, approved ensure:
AWPB and procurement plan * conformity with applicable
- within the limit of funds rules and regulations
available under the relevant * coherence with AWPB and
expenditure category procurement plan
* funds availability (against
IFAD loan status records)
d. An assessment of physical * Undertaking of site visits for
progress of procurement actions works, examination of goods
and quality of final product must received, review of consultants’
be conducted reports, etc.
e. An assessment of financial * Review of accounting records
progress of procurement actions against contract monitoring
must be conducted forms and progress reports
* Identification of procurement
issues and constraints
* Issuance of recommendations
for improvement of the
procurement process

9


Appendix 2

Procurement Module: Sample Individual Contract Monitoring Form
Procurement Module: Sample Contract Record
Procurement Module: Sample Summary Procurement Table

1


PROCUREMENT MODULE

SAMPLE INDIVIDUAL CONTRACT MONITORING FORM

Procurement file #: __________________ Component/Activity: ________________
Description of contract: _______________________________________________________
Project officer: _____________________ Date of no objection: ________________

Name of supplier: __________________ Bank details: _______________________
Address: _________________________ _______________________
_________________________ _______________________

Contract summary

Document Number Amount Dates (start-end)
Original contract
Amendment # 1
Amendment # 2
Amendment # 3
Amendment # 4
Total

Monitoring of payments

Payment schedule Approved Payments issued Balance
progress due on
certificate contract
Milestone 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

contract) Annex)
3

3


SAMPLE SUMMARY PROCUREMENT TABLE

Procurement category Procurement Nature of Applicable IFAD prior
method consultation rules review
Goods and services (other
than 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)
Works
All amounts NCB Open competition National rules Yes
Individual Consultants
All amounts Selection based on Limited IFAD Yes
comparison of at least competition
3 CVs (limited number of
suppliers and/or
highly specialized
services)
Consulting firms
All amounts RFP Limited National rules Yes
competition (same) Source:
Loan agreement, IFAD Procurement Guidelines, National Public Procurement Code

Legend
ICB: International Competitive Bidding
NCB: National Competitive Bidding
RFQ: Request for Quotations
CV: Curriculum Vitae
RFP: Request for Proposals

4

ANNEX 4

SAMPLE MATRIX OF RESPONSIBILITIES BETWEEN
IFAD/PMU AND BORROWER IN PROCUREMENT PROCESSES

Annex 4

SAMPLE MATRIX OF RESPONSIBILITIES

Task PMU IFAD Borrower
Preparatory activities
Procurement plan R A I
(including proposal for grouping in lots/packages)
Purchase requisition R - -
Pre-qualification of bidders
Invitation to pre-qualify and pre-qualification documents R N.O -
Evaluation of submissions and list of pre-qualified bidders R N.O I
Goods and works > USD 10 000
Technical specifications R - -
Invitation to bid and draft bidding documents for ICB R N.O C
Invitation to bid and draft bidding documents for NCB R N.O C
Evaluation of bids R N.O R
Contract R N.O A
Goods and works < USD 10 000
Technical specifications R - -
Request for quotations R - -
Evaluation of quotations R - -
Purchase order or brief contract R - -
Consulting services
Terms of Reference R - -
Request for proposal (firms) and draft RFP documents R N.O C
Request for expression of interest (individuals) R N.O C
Technical evaluation R N.O R
Financial evaluation R N.O R
Contract R N.O A
Common tasks for all categories of procurement
Extension of bid submission deadline R N.O C
Bid opening R - C
Direct contracting and other waivers of competitive bidding R A I
Advance without bank guarantee R A -
Contract amendments R A A
Contract record R I -

Legend
R Party Responsible for the action
A Approval
N.O No objection
C In Consultation with
I For Information

1

ANNEX 5

RESPONSIBILITY MATRIX
LOAN ADMINISTRATION
INCLUDING 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/FC

1. Draft Loan Agreement
Review of loan administration
provisions/ensure adequate x x x
coverage
Participation in loan negotiations x x x x x

2. Letter to the Borrower
Preparation of draft letter x x
Final review x x
Clearance x
Dispatch to Borrower after AP’s
X X X
signature

3. Procurement Review
Review of Procurement Plan in
X
conjunction with AWPB
Technical Review X
Approval of Procurement Plan x
Review of procurement documents x
Drafting of communications to
X
Project on findings / ”no
objection”
Approval/dispatch of
x
communications on procurement

4. Loan Disbursements

4.1.Withdrawal
Application/Checklist
Preparation of Checklist X X
Entry of WA in Tracking Sheet x X
Processing and review of WA x X
Final review and certification of
x X
WA
Overall review and approval of
X
WA
Follow up on pending issues and
partial WA and maintain “items X
pending” file
Process requests for amendment
X
and reallocation of funds
Maintain project disbursement file
and conduct periodic X
reconciliations with LGS records

1

Annex 5

Portfolio Loan Loan
4.2. Payment Order
Preparation of draft X X
Approval of draft X
Review accuracy of PO
Assignment & control of
X X
sequential number
Approval of PO
Dispatch to Loans & Grants
X
Administration Section of FC

4.3. Payment Order Logbook
Recording, maintenance & control X
Preparation of statistics X

4.4. Communication to PMU on
WA findings
Drafting & sending of routine
x
disbursement matters
Drafting and sending of complex Review and
x x
disbursement matters b clear

4.5. Withdrawal Authorization
Data entry of PO in LGS x
Undertake FC checking steps x
Generate withdrawal authorization x
Review and approval of
x
withdrawal authorization

4.6. Payment of
W/Authorization
Data entry of W/A in People Soft x TA
Creation of SWIFT message to
x TA
IFAD depository bank
Verification, approval and dispatch
x TO
of SWIFT message
Data entry of provisional and
actual value date of payment in x TA
LGS

4.7. Payment Advice
Generation/printing of advice from
x
LGS
(Dispatch to Borrower, PMU, et al
by Print Shop)

2

Annex 5

Portfolio Loan Loan
4.8. Special Commitment
4.8 (a) Issuance of SC Letter
Preparation of Checklist x
Initial review of WA x
Certification of WA x
Preparation of SC Letter x
Review and approval of SC Letter x Controller
Maintenance and control of SCL
x
issued
Dispatch of SCL to bank x

4.8 (b) Payment Request from
Bank
Checking of SC payment
x
details/availability of SC funds
Preparation of PO x
Approval of PO x

4.9. Contract Payment
Summary
Creation and update of contract
x
data
Control and review of payments x

4.10. Special Account Recovery
Control
Approval of recovery rate x
Monitoring and control of recovery x x
Reconciliation with LGS x

4.11. Special Account Letters
In 2 stages: After payment of
Initial Deposit and at start of
recovery process
Drafting of letters x
Review of letter x
Clearance of letter x ( as
necessary)
Approval x
Dispatch to Borrower x

4.12. Closure of Loan Account
Undertake closing steps x x
Review and control x
Undertake loan closing procedures x
Approval of loan closure x
Advice to Borrower x

3

Annex 5

Portfolio Loan Loan
5. Audit Report
Review of auditor’s TOR x x x AO
Approval of TOR X
Monitoring of Audit Report
X x AO
Submission
Review of Audit Report x x x AO
Review and follow-up of audit
x x x AO
recommendations
Drafting of communications to
x AO
Project on audit matters
Approval of communications x X

6. Monitoring of Portfolio
X
Performance (quarterly)
PA Programme Assistant
CPM Country Programme Manager
RFMO Regional Financial Management Officer
PA Portfolio Adviser
TA Treasury Assistant
TO Treasury Officer
AO Audit Officer
FC Loans Unit

4

IFAD Procurement Guidelines revised 2008

IFAD Procurement Guidelines revised 2008

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IFAD Procurement Guidelines revised 2008