Common Mistakes Made IN Procurement

1. Common Mistakes Made IN Procurement Proper documents not followed for undertaking procurement

2. Invitation for Bids • Bid advertisement (Invitation for Bids—IFB) not in the prescribed format. • IFB not published in a widely circulated newspaper • IFB not mentioning that the Project has received World Bank funds. • For Shopping, request for quotations not sent • Use of tendering procedure other than that agreed to under the Project

3. Bid Documents • Bid evaluation criteria not mentioned in the bidding document. • Inadequacy or absence of bid security (2 to 5% of estimated contract value)—cannot be assessed in the absence of an estimated value of bid package/item • Separate performance security not asked for. • Bid validity period not asked for

4. Bid Opening and Evaluation • Pre-bid meeting not held • Pre-bid meeting held towards the end of the bidding period • Pre-bid meeting minutes not kept • Delay in opening of bids • Bids opened after expiry of bid validity

5. Bid Opening and Evaluation contd • Bid prices and bid security amounts not recorded in the Bid Opening Register • Bid-evaluation report not prepared or not prepared in the prescribed format.

6. Contract Award • Contract awarded after expiry of bid validity period • Delivery period not mentioned in the purchase order • Negotiation of prices after bid opening • Acknowledgement of receipt of contract award not obtained from the contract awardee

7. Civil Works • Competition restricted to parties within the State. • Civil works not completed but payment made in excess of contract value. • Civil works cost escalation in excess of 15% without obtaining Bank’s approval

8. Civil Workscontd • Measurement book for civil works not maintained/ not maintained properly—absence of dates on which measurements taken, absence of signature of the authorized

9. Shopping/Direct Contracting • Equipment/ furniture procurement through State Rate contract • Direct contracting of an item procured through Shopping by another institution • Price of items procured under 15% excess provision exceeding the contracted price under NCB/ Shopping

10. Shopping/Direct Contracting contd • Bank’s approval not taken for an item procured by direct contracting beyond the prescribed financial limit • Proprietary nature of an item not determined properly

11. Post Procurement • Liquidated damages not levied for delay in completion of Works/ supply of Goods • Delay in release of final payment after receipt of final bill • Assets Register not maintained/ Items not recorded in the Assets Register/ Location at which the asset placed not stated/ Identification number to the asset not given

12. Post Procurementcontd • Equipment not installed and commissioned because the required building space is not ready