Mr.P.Nirojan - Technical Officer (Department of Buildings-N.P)

1. Procurement Methods

2. Choice of Procurement Methods
• 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 Competitive Bidding (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 or Works 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
• No Securities
• Simple Documents
• Can select most likely product or contractor

9. Direct Contracting
• Services or 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
• Place a 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
• Execution by 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.