THE WORLD BANK

1. THE WORLD BANK Procurement Briefing the Netherlands November 3, 2003Shaun Moss, Lead Procurement Specialist, Europe and Central Asia Region

2. PRESENTATION OVERVIEW • The World Bank’s project cycle and organization • Principles of Procurement - Roles of the World Bank and the Borrower in the procurement process • Consultant selection procedures • Sources of information

3. PROJECT IDENTIFICATION Previous Projects Country Offices Borrowers’ Proposals Bank Economic & Sector Work Other Agencies CAS Country Assistance Strategy

4. Country Assistance Strategy IMPLEMENTATION COMPLETION REPORT PROJECT IDENTIFICATION PROJECT PREPARATION PROJECT SUPERVISION IMPLEMENTATION PROJECT APPRAISAL LOAN APPROVAL, SIGNING AND EFFECTIVENESS LOAN NEGOTIATIONS Joint activity Bank activity Client activity

5. BANK OPERATIONS STAFF Vice President Middle East & North Africa Vice President East Asia & Pacific Vice President Europe & Central Asia Vice President Latin America & Caribbean Vice President Africa Vice President South Asia RPA* RPA RPA RPA RPA RPA Country Director Country Director Country Director Country Director Country Director Country Director Country Director Sector Managers * RPA: Regional Procurement Adviser Sector Managers Task Team Leaders

6. PRINCIPLES OF CONSULTANT SELECTION • High-quality services • Economy and efficiency • Equal opportunity to qualified firms from all member countries • Development of national consulting industry • Transparency in the selection process

7. Understand the Roles… • The Client • Prepares procurement plan • Invites expressions of interest • Compiles shortlist • Issues Request for Proposals (RFP) • Evaluates proposals • Awards contracts • Supervises and pays consultants

8. Understand the Roles • The World Bank • Assesses the Client’s capacity to carry out procurement • Reviews and clears the procurement plan • Prior reviews large-value contracts and contract modifications • Carries out post review of contracts under the prior-review thresholds

9. Role of the Business Community • Read up on the Bank’s lending strategy in specific countries/sectors (CAS) • Identify projects of interest by tracking the Bank’s website • Market your expertise directly to the borrower of Bank funds/grant recipient • Understand the project cycle and procurement & consultant guidelines.

10. BANK GUIDELINES FOR CONSULTANT SELECTION • Public Notification for Large Assignments (>US$200,000) • Restricted Competition based on shortlist • Standard Request for Proposals (RFP) • Applicable Selection Methods Specified in Loan Agreement

11. SELECTION METHODS • Quality- and Cost-Based Selection (QCBS) (Technical Quality >70; Price <30) • Quality-Based Selection (QBS) (technical quality only) • Fixed Budget (FB) • Least Cost Selection (LCS) • Consultants’ Qualifications (CQ) • Single Source Selection (SS)

12. Limited to six firms All shortlisted firms must be qualified1/ No more than two from any one country 2/ Promote participation of National Consultants 1/ But not all qualified firms make the shortlist 2/ Except when list may be all national firms – permitted for some smaller contracts. SHORT LIST

13. BANK AS EMPLOYER OF CONSULTANTS • Individuals and firms • Encourages Competition – But getting shortlisted is easier if you are known • Recognizes Conflict of Interest • Restricts Re-employment • Expressions of Interest advertised on Bank’s website: www.worldbank.org/procure

14. CONSULTANTS’ STRATEGY • Target assignments based on regional experience and technical qualifications – be selective! • Obtain background information on project: • Country Assistance Strategy (CAS) • Project Information Document (PID) • Project Appraisal Document (PAD) • Understand Roles of Borrower (Government) and Bank • Target marketing at appropriate time

15. Making the Shortlist • Monitor advertisements systematically • Express interest promptly, selectively • Expression of Interest (EOI): • Brief information on firm’s qualifications • Relevant technical and regional experience • Contact, visit client before shortlisting • Identify national partner firm and/or individual consultants

16. Preparing the Proposal • Pre-proposal visit • Address the Terms of Reference (TOR) clearly, comprehensively • Emphasize innovative technical solutions • Qualified Consultants in Key Staff positions • Firm Provides Strong Technical Leadership • Cite directly relevant technical and regional experience • Involve national partner consulting firm or individual consultants • Do not vary from standard RFP forms

17. Typical Evaluation Methodology Specific experience of firm 10 points Technical methodology 20 points Qualifications of Key Staff 50 points Knowledge transfer, training 10 points National participation 10 points

18. World Bank Prior Review • Cost and staff-month estimates • Request for Proposals inc. TOR, evaluation system, form of contract • Shortlist • Report on Technical Evaluation • Final Evaluation Report (combined technical and price evaluation) • Initialed, negotiated contract • Contract modifications >15%

19. Procurement Information • General Procurement Notices • Publication in UN Development Business (print and online) is required for any project that will have contracts awarded following International Competitive Bidding Procedures (will also appear in Development Gateway - dgMarket) • Published minimum of 8 weeks prior to issuance of bidding documents • Updated annually for outstanding procurement

20. Requests for Expressions of Interest • Advertised in UN Development Business (UNDB online) and dgMarket for assignments with an estimated value over US$ 200,000 • www.dgmarket.com • www.devbusiness.com • Helps borrower in preparation of short list • Request for proposals only issued to short-listed firms

21. Trust Funds • The World Bank often executes trust funds provided by donor countries • Depending on the donor’s rules, the consulting opportunities may be restricted to nationals of the donor country • Advertising is required for opportunities over $50,000 – even it is restricted to nationals of a certain country

22. Trust Funds (cont’d) • Request for Expression of Interest are advertised in: dgMarket, UN Development Business and the Bank’s website: • http://www.worldbank.org/procure • Selection methods detailed in the Guidelines: Selection and Employment of Consultants apply

23. Languages • Bidding/consultant documents may be in English, French or Spanish for contracts awarded following international competitive bidding procedures or large-value consultant contracts

24. Who won the contract? • Data on contracts subject to prior review by the Bank are available on the Bank’s website • http://www.worldbank.org/procure • View by keyword, country of project, country of supplier, etc.

25. Procurement Information • www.worldbank.org/procure • Policies and procedures • Standard bidding and consultant documents in official languages • Familiarize yourself with general conditions of contract, technical forms, etc. • Requirements and guidance for World Bank borrowers

26. DACON Registration • Online at www.dgmarket.com • Shared by WB and Inter-American Development Bank • Five or more full-time professional staff • No individuals • Registration is not mandatory, but recommended. Will not help you win contracts. You must market your firm.