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Procurement Methods
This document outlines various procurement methods used for government projects in Sri Lanka. It describes national competitive bidding (NCB) for projects valued under Rs. 300 million, international competitive bidding (ICB) for higher value or specialized projects, and limited bidding variants. It also covers shopping, direct contracting, repeat orders, force account, two-stage bidding, two-envelope submission, and pre-qualification of bidders - outlining the objectives and processes for each procurement method.
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Procurement Methods
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- 2. Choice of ProcurementMethods • Nature of Goods and Services • Value • Local Availability • Critical Dates • Agreement with Funding Agencies • Transparency
- 3. National Competitive Bidding(NCB) • Preparing Bidding Documents • Publishing Invitation For Bids in at least one National Newspaper and Websites • Issuing Bidding Documents • Receiving Bid Documents • Evaluation • Issuing Letter of Acceptance. • Signing Agreement.
- 4. National Competitive Bidding(NCB) • Generally applicable for most GoSL funding • Agreement with Funding Agencies • Foreign contractors also shall participate. • No domestic preference • Bid Security & Performance Security • For works ICTAD Registration is required • Value Less than Rs.300Million
- 5. International Competitive Bidding(ICB) • Why ICB? – Domestic Capacity Limited – Agreement with Funding Agencies • Main difference between ICB & NCB – Domestic Preference Applicable • International Publicity – One National Newspaper – Websites – UNDB – Embassies 3.1
- 6. Limited International CompetitiveBidding (LIB) Limited National Competitive Bidding (LNB) • When LIB or LNB is applicable? – Only a few known sources are available – Advertising would be a waste – Emergency Actions – Ensure Competitive Prices • All procedures are same as ICB or NCB except Publicity & Domestic Preference
- 7. Shopping • Services orWorks from selected sources • Applicable for small value procurement. – Registering contractors / suppliers – Sending Request for Quotations – Receiving Quotations – Comparing the Quotations – Awarding the Contract
- 8. Shopping • Quick • NoSecurities • Simple Documents • Can select most likely product or contractor
- 9. Direct Contracting • Servicesor Works from a single source • When Direct Contracting? – Prices are fixed – Compatible with existing equipment – Obtainable from only one source – Condition of a performance guarantee – Extension of an existing contract
- 10. Repeat Orders • Placea repeat order with the original supplier. • When Repeat Orders? – Over a short period of time (max 6 months) – Additional requirement was not foreseen – Uneconomical to follow bidding procedure. – Price of the goods has not dropped. – PC has no objection. – Not more than 50% of original contract value.
- 11. Force Account • Executionby using PE’s own personal and equipment • When Force Account applicable? – Quantities are difficult to define in advance. – Contractors are unlikely to bid at reasonable prices. – Carry out a work without interrupting the ongoing work. – Emergency situations that need urgent attention.
- 12. Two Stage Bidding •Technically unequal Bids are likely to be encountered. • How Two Stage Bidding works? – In first stage un-priced technical proposal. – In second stage final technical proposal with price.
- 13. Two Envelope System •Alternate types of technical proposals are possible. • How Two Envelope System works? – Technical and financial proposals submitted in two envelopes. – Technical proposals are opened first. – For responsive bids financial proposals are opened in public. • Eg: Turnkey, Design & Build, Supply & Installation
- 14. Pre-qualification of Bidders •High cost involved in preparing bids. • How Pre-qualification of Bidders works? – Invite all interested bidders to furnish their details. • Experience • Resources available – Select those who fulfills the requirement. – Issue bidding documents to selected bidders.