Presented b y Engr. Emeka Ezeh OFR Director-General, BPP November, 2013

1. Pre qualified Contractors or Professional Contractors: Role of BPP in stopping quackery in the Water Industry Presented by Engr. Emeka Ezeh OFR Director-General, BPP November, 2013

2. Two (2) critical factors required for successful procurement of a water project are: • a good Contractor (for proper execution); and • a good Contract (to enhance implementation) • Prequalification is the first procedural step in selecting the right Contractor. Introduction

3. To evaluate the technical competencies of bidders. • To reduce the number of bidders to a sensible and economic level. • To eliminate bidders that lack technical and financial capacities to successfully execute the Project. • To engender stiffer competition as a result of improved chances of winning. Why is Prequalification necessary?

4. Procurement in the Water Sector is not an all comers affair. • Evaluation criteria should therefore be: • skewed in favour of companies that possess cognate experience on water related projects • project specific and not generic in order to address the peculiarities of the procurement • precise and clear to avoid ambiguity • drafted to permit the widest possible competition and make a clear statement of the required standards of workmanship to be provided. The Water Sector is highly specialized!

5. A distinct prequalification is required for procurements of works above N300 million. • only the criteria set out in the prequalification documents should form the basis for scoring and grading bidders. • Mandatory criteria are assessed on a simple pass/fail basis. Bids that fail to meet any of the mandatory criteria are considered non-responsive. Fundamental Principles of Technical Evaluation

6. The reasons for declaring a bid non-responsive must be clearly documented in the Evaluation Report. • Only bids that meet the mandatory criteria will be subjected to point rating as applicable. • The procuring entity should allot higher points to technical criteria. Fundamental Principles of Technical Evaluation

7. Mandatory criteria considered during Technical Evaluation include evidence of: • Incorporation with the Corporate Affairs Commission • Payment of taxes and Tax Clearance Certificate • Registration with PENCOM • ITF contributions • compliance with SGF Circular Ref No SGF/OP/I/S.3/VIII/271 of 5th October, 2011 on job creation Fundamental Principles of Technical Evaluation Cont’d

8. Scored criteria that should be evaluated during prequalification are: • General Experience of the Firm in the Water Industry • Similar water projects handled • Key Technical Personnel with experience in water-related projects • Annual Turnover • Three Years Audited Account • Construction Equipment • Site Organization Fundamental Principles of Technical Evaluation

9. Prequalification is about the most important step in selecting the right Contractor. • Procurement in the Water Sector is not an all comers affair • Evaluation Exercise should eliminate quacks from the bidding process. • Highest points should be allotted to technical criteria • The responsibility of ensuring that only competent Contractors are prequalified rests strictly upon the procuring entity Summary

10. Further information can be obtained from the BPP Website at www.bpp.gov.ng; or • The Office of the Director-General, Bureau of Public Procurement (BPP) at No 11 Suleiman Barau Crescent, State House , Abuja Where to Get More Information

11. Thank You !!!