International Development Business “Bid to Win” Partnering for Success, and Creating Winning Proposals

1. International Development Business “Bid to Win”Partnering for Success, andCreating Winning Proposals IDB Procurement Workshop Washington, DC April 15, 2004

2. Presentation Objectives • International development business project opportunities with & through the IDB • Perhaps the 2 most critical success factors: • Strategic partnering • Effective proposals • Develop a better understanding of:

3. The Road to Success Partnering, Proposals, Persistence $

4. Types of Opportunities(for Consultants) • Direct-hire with the IDB as client (smaller value; short term; usually ‘sole source’). • Competitively-bid projects with IDB borrowing country government as client (larger value, longer term, formal competitive bids). • Subcontracts with other firms. (as partner, as a team member).

5. Large Value Contracts = Competitive Bids

6. Experts agree… …Partnering is perhaps the most critical success factor. Most successful firms credit good partnership as the most key success factor; and most firms who fail blame weak partnership as the main failure factor…

7. Partnering for Succe$$ "The greatest change in corporate culture - and the way business is being conducted - may be the accelerated growth of relationships based on partnership." - Peter F. Drucker

8. Why Partnering? • Common Sense (good business sense) • Locals have knowledge of the culture, political situation, business and legal environment • Locals have the personal contacts

9. Local firms winning more.. • IFI contract award trends: companies from developing and transition countries winning more and more and more and more of the business • Not just local firms; international firms within region (ie., Brazilian firms winning contracts in Colombia, Peru, Mexico, etc • So… If you can’t beat ‘em, join ‘em.

10. Why Partnering • Having local content is now imperative in order to earn points in most technical/ consulting proposal evaluations Partners = Points

11. Why Partnering • Partnering now also a financial imperative in most IDB and World Bank funded technical assistance contracts. Why?: QCBS ‘Quality Cost Based Selection’

12. QCBS Getting Points for Partnering • Financial Evaluation can now account for as much as 25% of the overall proposal evaluation] • Thus, greater price competition in IDB consulting bids than in the past • Local content typically economizes on budget for fees (and certain project expenses)

13. QCBS Not all bad ! • Can make your bids more competitive against traditionally high-priced tough competition. And QCBS typically means ‘lump sum remuneration’ contracts (greater flexibility in project management)

14. Finding a Partner (How?) • Step 1: Profiling a partner; • Step 2: Searching for and Identifying prospective partners; • Step 3: Short listing 2-3 best prospects; • Step 4: Contacting and meeting prospects.

15. How to Find a Partner(Step 1:Profiling) • Complete a prospective partner profile (matrix… criteria, qualities, skills, qualifications…) • Use a checklist approach (evaluate strengths/weaknesses)

16. Profiling – Partner Criteria • Qualities (Skills) • Honesty, integrity • Communication skills • Languages • Work Ethic Qualifications • Knowledge and expertise in the sector • Project experience (including in projects funded by World Bank, bilateral donors, etc.) • Relationships and reputation in the country Domestic and international experience of firm (export success?)

17. Step 2:(Searching for them) • Recommendations • From other firms active in the region/country • From IFI project officials (DC, in country) • Embassies (and reciprocal) • Trade missions • Chambers of Commerce • Industry associations • World Bank / IDB contract listings • Alumni • Other ?

18. WB / IADB /AsDB Contract Awards Listings Searchable contract data bases: • www.worldbank.org/sprojects/AdvancedContract.asp • http://condc05.iadb.org/idbppi/asp/mainpage.asp • www.adb.org/Documents/ADBBO/contracts.asp Other key sources of info on local consultants: • www.developmentex.com • www.dgmarket.com • www.consultingbase.com

19. Assessing Prospective Partners Check credentials, reputation Do they have a website? Do background check (trust but verify) Have they worked with other foreign firms?

20. Selecting the right partner • Assess COMPATIBILITY of business objectives and “philosophy” • Do not fear size differentials (different sizes can compliment) • Visit plan or offices, meet key personnel

21. Meet and Interview Prospective Partners • Try and schedule meetings to take place in their offices (permits you to assess human resources, technical capabilities, etc.) • Cross-cultural sensitivities (be prepared to socialize, get to know each other). • Partner relationships a two-way street: always remember they are interviewing you as well.

22. “Selecting” the right partner • Skills compliment and capabilities (includes Human Resources assessment, compatibility of organizational structures, quality of management, technical capability) • Knowledge of technology and of local market • Domestic and international experience of firm (export success?) • Financial strength (consider cash infusions) • Personal chemistry (the “social” factor)

23. Structuring the Partnership` • Short term (joint bid); Subcontracting agreement • Memorandum of Understanding • Issue of Exclusivity (I.e,. On bids) • Long term (joint venture)

24. Before teaming… …with another business you should do a through check on its financial and business standing. You can even ask your potential partner for an exchange of financial information—which should not be a problem if you both sign a confidentiality agreement. - Investigate.. Formal due dilligence

25. Ideally… You and a potential teaming partner will work together on a few small projects before going after a large contract. This way you will develop techniques for working together smoothly, while developing a track record to demonstrate compatibility to the contracting officials.

26. The Strategic Approach • Develop a strategy (Country targets, sector focus; commit time & resources) • Knowledge (learn about IFI market, target countries • Identify / Research Opportunities • Partner, partner, partner • Participate in the bidding game (EOIs, proposals)

27. Bid to WinTypes of IDB Project ‘Submissions’ • General Letter of Interest(unsolicited) • TheExpression of Interest (EOIs / SOQs) • In response to advertised requests for EOIs • The Bid: Technical & Financial Proposals • In response to Request for Proposals (RFP) • ICB Bid (Goods, Equipment, Civil Works)

28. PUBLIC NOTICES General Procurement Notice (GPN) Specific Procurement Notice (SPN) Requests for Proposals (short-list) SUBMISSION Letter of Interest Expression of Interest Detailed Technical & Financial Proposal Submissions are in Response to: • Can be in response to direct invitation as well

29. Development Businesswww.devbusiness.com Where to Find the Bid Notices DB Online: US $495 / year DB Print Only: US $550 / year DB Print & Online: US $725 / year DB MOS Only: US $275 / year (don’t bother) (OUCH!)

30. Other Procurement Notice Sources • IDB Online: Phased Out • Notices now on IDB Web Site free of charge: www.iadb.org/ros/notice/notice_eng.htm

31. Development Business - Online Version - Electronic version of Development Biz now rules. • EOI submissions and goods/equipment bids are sometimes due 30 days from theon-line publication date, not from the issue date. • THEREFORE: SHOULD LOG IN AND CHECK • FOR NEW PROCUREMENT NOTICES EVERY • FEW DAYS (I.e. Monday, Wednesday, Friday).

32. The General Procurement Notice (GPN)

36. General Letter of Interest(..in response to “GPN”) • Brief one-page letter (a mini EOI) • Introduce firm and ‘generally’ express keen interest in project • Ask to be put on so-called “mailing list” • Enclose minimal material • Don’t rely on so-called “mailing list”; Track Dev Biz for Specific Procurement Notices. • Copy IDB Project Officer ?

37. Travel to the Country? • .. Expensive, yet critical to the process

38. The Specific Procurement Notice (SPN) (Request for Expressions of Interest: Consulting Services)

39. HEALTH SECTOR REFORM PROGRAM • CONSULTING SERVICES • Country: JamaicaDevelopment Business Print Edition, Issue Number: 542Issue Date:16 September 2000 • The Government of Jamaica has secured a loan from the Inter-American Development Bank (IDB) to assist in financing its broad-based Health Sector Reform Program, a critical component of which is the articulation of the health services decentralization and the Ministry of Health (MOH)’s reorganization.The MOH requests consulting services, in order to develop a strategic plan maintaining the standards and regulating the health care in Jamaica, and invites eligible consultants to indicate their interest in providing the services. Interested consultants must send sufficient information showing that they are qualified to deliver the above-described services and should have similar work experience. • Prequalification process will be based on following criteria: • General background of the consultant • Past experience of a similar work • Work experience in Caribbean or similar countries within the region • Language capabilitiesA minimum of three and a maximum of six consultants will be selected and requested to submit proposals according to specific terms of reference. Expressions of interest must be delivered to the address below within 30 calendar days from the date of this notice publication (this notice officially published on • 16 September 2000). • Contact: Health Reform Unit, Ministry of Health. 4 King St.. Kingston, Jamaica. • Tel: (876) 967-1129. Fax: (876) 967-7687 DATE OF NOTICE: SEPTEMBER 6, 2000

44. The Formal Expression of Interest • Cover letter (ideally one page) • Convey interest and awareness of project/issues • State why you should be short listed • Intent to incorporate local experts (Identify ‘em) • Ask to be short listed ! • Accompanying 3-6 page pre-qual statement • Description of Firm and a few key staff (CVs? Depends) • Project Experience (Relevant Ones; Brief Snapshots) • Language capabilities (Should EOI be translated?) • Brochures (Keep to a minimum)

45. Preselection Criteria(Making the Short List) • Legal Capacity (eligibility)…….. (Yes/No) • Financial Capacity……………… (Yes/No) • General Technical Background and Capability…………………… (40%) • Experience in Similar Work……. (35%) • Experience in the Country, or Similar Countries………… (10%) • Language Capability……………. (10%) • Use of Local Consultants……….. (5%)

46. Goods & Equipment Procurement Notices

49. Standard Bidding Documents (Goods) • - Inter-American Development Bank Standard Bidding Documents for the Procurement of Goods  www.iadb.org/regions/goodsidb.pdf • - Users Guide for the IDB's Standard Bidding Documents for the Procurement of Goods www.iadb.org/regions/uggoods.pdf

50. You Made the Shortlist! The RFP • Letter of Invitation • Other short-listed firms • QCBS (Quality Cost-Based Selection) or QBS • Data Sheet • Estimated person-months • Evaluation criteria • Prescribed Proposal Format(Standard Forms) • Terms of Reference • Draft Contract