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Inter-American Development Bank Business Briefing

Project Procurement Division. Inter-American Development Bank Business Briefing. Procurement of Works, Goods and Consulting Services in projects financed by IDB by Felix Fernandez-Pizzi, Acting Chief DEV/PRM. February , 2007.

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Inter-American Development Bank Business Briefing

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  1. Project Procurement Division Inter-American Development Bank Business Briefing Procurement of Works, Goods and Consulting Services in projects financed by IDB by Felix Fernandez-Pizzi, Acting Chief DEV/PRM February, 2007

  2. Knowledge of Procurement Process for Goods and Works / Consulting Selection Process Knowledge of applicable rules Understanding of the responsibilities in the Procurement Process Where to find and use information and documents Topics Overview Project Procurement Division

  3. Project Procurement Cycle Negotiation and Approval Execution and Supervision Analysis Programming Identification Preparation Programming Borrower & Bank Borrower & Bank Borrower & Bank Bank Borrower & Bank Borrower & Bank Project Concept Document Project Report PROJECT OUTLINE PROCUREMENT PLAN 1-2 Years 4-8 Years

  4. Last day of last warranty for Goods and/or Works Acceptance of Services, Goods and/or Works Invitation to Prequalified Applicants to bid Identification of needs (Procurement Plan) Signing of Contract Advertising Warranty Preparation Prequalification Bidding Execution Project Execution Procurement Process

  5. Project Execution Public Bidding for Consulting Services Procedures Request of expresions of interest (Advertising) Short List of Firms to be invited Public Access to Database Bid result and notification Public Proposals opening Request for Proposals Proposal Submission Procurement Plan Proposal evaluation Contract Signing Clarifications

  6. Project Execution Public Bidding for Works and Goods Procedures Public Access to Database Bid results & notification Request of Proposals (Advertising) Payment for documents Public bid opening Bidding documents Procurement Plan Contract Signing Bid Submission Bid evaluation Clarifications

  7. Procurement contracts with IDB, mainly consulting services on project preparation support ~ 5% Procurement contracts with ExecutingAgencies in projects financed by IDB works, goods consulting services ~ 95% Business Opportunities at IDB Project Procurement Division

  8. General Procurement Notice (GPN) * Published once within 30 days of loan’s approval by the Board of Directors in: United Nations periodical “Development Business” (online) IDB’s web site - Procurement Portal immediatelythereafter:http://www.iadb.org/procurement Project Advertising Project Procurement Division * Includes all the projects bidding processes

  9. Specific Procurement Notice (SPN)* Required for International Competitive Bidding (ICB) - published in: United Nations periodical “Development Business” (online) IDB’s web site - Procurement Portal immediately thereafter Required for National Competitive Bidding (NCB) published in: The Country’s official web site for advertising government business opportunities; or One local newspaper of wide circulation Competitive Bidding Advertising Project Procurement Division * Includes all the specific processes

  10. Days from publication of SPN to deadline for submission of proposals Request for Expressions of Interest 14 days Request for Proposal (shortlist: 6 firms) 4 weeks Consulting ServicesProposal Preparation Time Project Procurement Division

  11. Days from publication of Specific Procurement Notice (SPN) to deadline for submission of bids Prequalification Applications 45 days Bids Goods 6 weeks Small Works 6 weeks Major Works 12 weeks Goods and Works Bid Preparation Time Project Procurement Division

  12. Apply for IDB-financed projects to all procurement financed by the Bank They are harmonized among MDBs Bank’s procurement practices reflect best practices used worldwide. IDB Procurement Policies Project Procurement Division

  13. Procurement Financed by IDBBank Responsibilities Project Procurement Division • Oversees the application of IDB procurement policies and procedures • Reviews the procurement process ex-ante or ex-post (based on evaluation of institutional capacity) to determine adherence to IDB procurement policies

  14. Issue clear and balanced bidding documents * Provide sufficient time for bidders to prepare bids Provide timely responses to bidders’ questions Evaluate bids based only on criteria established in bidding documents Award the procurement contract Communicate results to all parties at the same time Address complaints promptly and fairly Project Executing Agency’s Responsibilities Project Procurement Division * Most of them already standardized

  15. Carefully analyze ALL requirements of the bidding documents or request for proposal documents Strictly comply with the instructions and specifications-terms of reference in the bidding/request for proposals documents Require clarifications to documents in writing Review bid/proposal for compliance with the requirements before submitting Submit bid/proposal with enough time to arrive before deadline Bidder’s Responsibilities Project Procurement Division

  16. Emphasis on technical competence/capacity and qualifications over price Invitations are sent to a Short List of pre-selected Consulting Firms (6) Consulting Services Selection Characteristics Project Procurement Division

  17. The Consulting Firm with the best evaluated proposal depending on the selection method. Six selection methods: Quality & Cost Based Selection (QCBS) Quality Based Selection (QBS) Least Cost Based Selection (LCBS) Fixed Budget Based Selection (FBBS) Selection Based on Qualifications (CQS) Single Source Selection (SSS) (non competitive) Consulting ServicesWho is Awarded the Contract? Project Procurement Division

  18. The Bidder whose bid has been determined to have the lowest evaluated bidprice and is substantially responsive to the bidding documents. Goods and Works Selection Characteristics and Who is Awarded the Contract? Project Procurement Division

  19. Bidders/Consulting Firms may submit a complaint in writing at any stage of the procurement process Procurement process is not suspended when complaint is submitted Contracting Agency resolves the complaint If Bank determines that its procurement policies have not been adhered to, Bank declares misprocurement Bank cancels portion of the loan allocated to the process that was declared misprocured. Procurement Process Right to Complain Project Procurement Division

  20. Development Business: DB Online: US $550/ yearUnited Nations Development Business Online (www.devbusiness.com) IDB Procurement Web Site - free of charge: IDB PROCUREMENT PORTAL - MAIN MENU (www.iadb.org/procurement) Where to Find the Bid Notices Request for Expression of Interest Project Procurement Division

  21. Project Procurement Division

  22. Search:  Search:  IDB Home IDB Home About the IDB About the IDB News News Countries Countries Topics Topics Projects Projects Research Research Publications Publications Projects Pipeline Goods Projects Pipeline Business Briefings Summary of Cases Policies General - GPNs About DEV/PRM Summary of Cases General - GPNs Business Briefings Policies About DEV/PRM Goods Thresholds Thresholds Contract Information MDB e-GP MDB e-GP Contract Information TRAINING PROCUREMENT NOTICES STANDARDDOCUMENTS PROJECT INFORMATION PROCUREMENTCOMMITTEE DEV/PRM POLICIES ANDPROCEDURES PROCUREMENT NOTICES PROCUREMENTCOMMITTEE TRAINING PROJECT INFORMATION DEV/PRM POLICIES ANDPROCEDURES STANDARDDOCUMENTS TOOLS TOOLS AWARDED CONTRACTSINFORMATION E-PROCUREMENT E-PROCUREMENT AWARDED CONTRACTSINFORMATION Advanced Search |  Advanced Search |  Help Help Specific - SPNs Specific - SPNs Projects in Execution Online Courses Works Contact DEV/PRM Protests Projects in Execution Works Online Courses Protests Contact DEV/PRM P. Plan Model P. Plan Model Consulting Services Procurement Plans Procurement Plans Consulting Services Incoterms Incoterms Projects Completed Projects Completed Glossary of Terms Glossary of Terms 22-Jan-2007 22-Jan-2007 Procurement Home Procurement Home Procurement News Procurement News Procurement Links Procurement Links English English Español Español Português Português Français Français Project Procurement Division

  23. Project Procurement Division

  24. Search:  Search:  IDB Home IDB Home About the IDB About the IDB News News Countries Countries Topics Topics Projects Projects Research Research Publications Publications Projects Pipeline Goods Projects Pipeline Business Briefings Summary of Cases Policies General - GPNs About DEV/PRM Summary of Cases General - GPNs Business Briefings Policies About DEV/PRM Goods Thresholds Thresholds Contract Information MDB e-GP MDB e-GP Contract Information TRAINING PROCUREMENT NOTICES STANDARDDOCUMENTS PROJECT INFORMATION PROCUREMENTCOMMITTEE DEV/PRM POLICIES ANDPROCEDURES PROCUREMENT NOTICES PROCUREMENTCOMMITTEE TRAINING PROJECT INFORMATION DEV/PRM POLICIES ANDPROCEDURES STANDARDDOCUMENTS TOOLS TOOLS AWARDED CONTRACTSINFORMATION E-PROCUREMENT E-PROCUREMENT AWARDED CONTRACTSINFORMATION Advanced Search |  Advanced Search |  Help Help Specific - SPNs Specific - SPNs Projects in Execution Online Courses Works Contact DEV/PRM Protests Projects in Execution Works Online Courses Protests Contact DEV/PRM P. Plan Model P. Plan Model Consulting Services Procurement Plans Procurement Plans Consulting Services Incoterms Incoterms Projects Completed Projects Completed Glossary of Terms Glossary of Terms 22-Jan-2007 22-Jan-2007 Procurement Home Procurement Home Procurement News Procurement News Procurement Links Procurement Links English English Español Español Português Português Français Français Project Procurement Division

  25. Project Procurement Division

  26. RSS stands for “Really Simple Syndication”. It is an easy way to stay updated automatically with relevant information from specific websites. Automated notifications will appear every time your favorite websites post something new. To enable this, a Web site will make a feed, or channel, available, just like any other file or resource on the server. Procurement Web Page RSS Project Procurement Division

  27. http://www.iadb.org

  28. Project Procurement Division

  29. Familiarize yourself with IDB Procurement Policies and Standard Procurement Documents Check the Procurement Portal of the IDB web site http://www.iadb.org/procurement to learn about: Projects Pipeline Follow up on Projects in Execution Consider joint ventures with local firms Learn local business practices Tips Project Procurement Division

  30. Thanks Project Procurement Division

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