Trainer's Manual For Capacity Building in Procurement Using World Bank & IDA Rules

Capacity Building Manual for Procurement
A Training Manual for

Capacity Building for
Procurement
Anjum Asim Shahid Rahman

PROCUREMENT, CONTRACT MANAGEMENT AND CAPACITY BUILDING PROJECT
2-Ali Plaza, 1-E, Jinnah Avenue, Blue area, Islamabad
Tel: 2271906, Fax: 2273874
1
Procurement, Contract Management and Capacity Building Project
Table of contents
Part I-Pre-Procurement
1.
2.
3.
4.
5.
Procurement Process
Procurement Cycle
Procurement Planning
Differences in Procurement
Types and Methods of Procurement
4
7
9
14
16
Part II-Procurement
6. Procurement of Goods
7. Major Steps in Procurement of Goods
8. Methods of Procurement
9. ICB
10. Other Methods of Procurement
a. Limited International Bidding (LIB)
b. National Competitive Bidding (NCB)
c. Shopping/Small Procurement
d. Direct Purchase/Single Source
e. Force Account
21
23
34
Part III-Hiring of Consultants

1. Hiring of Consultants
56
2. Methods used for Selection of Consultants (Firms and Individuals) 58
a.
QCBS
59
b.
c.
d.
e.
f.
g.
Quality Based Selection

Fixed Budget Selection
Single Source Selection
Least Cost Selection
Selection on Consultants Qualifications
Selection of particular type of Consultants
79
3. Contract problem areas
81
83
85
87
89
2
Part IV General
1.
2.
3.
4.
5.
6.
7.
8.
8.
9.
Incoterms
Fraud & Corruption
Review by IBRD/IDA (Donor)
Mis-Procurement
Conflict of Interest
Record Keeping
Guarantees
Contract Administration
Contract Close out
Test
93
95
97
104
106
109
123
125
127
Part V Exhibits/Annexure
3
ACRONYMS AND ABBREVIATIONS

NACP
PACP
GOP
MoF
PPRA
MoH
DoH
IDA
IBRD
WB
ADB
TOR
SOW
SBD
ICB
NCB
LIB
IFB
RFQ
LEB
BEC
TEC
EOI
RFP
QCBS
QBS
SBCQ
P.O.
S.O.
National AIDS Control Programme

Provincial AIDS Control Programme
Government of Pakistan
Ministry of Finance
Public Procurement Regulatory Authority
Ministry of Health
Department of Health
International Development Agency
International Bank for Reconstruction and
Development
World Bank
Asian Development Bank
Terms of Reference
Scope of Work
Standard Bidding Document
International Competitive Bidding
National Competitive Bidding
Limited International Bidding
Invitation for Bids
Request for Quotations
Lowest Evaluated Bid
Bid Evaluation Committee
Technical Evaluation Committee
Expression of Interest
Request for Proposals
Quality and Cost Based Selection
Selection Based on Consultants Qualification
Purchase Order
Supply Order
4
Pre-Procurement
5
Procurement Process
6
FLOW CHART OF THE PROCUREMENT PROCESS

Financing
Agency
Project Authority
Normally
Agrees
During
d
Appraisal
Define goods, works,

D
and services package
contracts, methods of
procurement
Bidder/
Contractor
Other Methods
Of
Procurement
Competitive Bidding
Prequalify
Bidders
NO
Reviews
YES
Prepare Bid Docs
Prepare
Prequal Docs
Reviews
Advertise
Bidding
Docs.
Advertise
Issue
Prequal.
Docs.
Takes Out
Documents
Prepare
Bidding
Docs
Reviews
Evaluate,
Select
Qualified
Bidders
Reviews
Issue Bid Documents
Submits
Inform.
Takes Out
Bid. Docs
7
FLOW CHART OF THE PROCUREMENT

PROCESS (CONTINUED)
Financing
Bidder/
Agency
Reviews
Reviews
Project Authority
Contractor
Receives
Clarification
Requests
Prebid
Meeting
Issues
Clarification
ssues
Attends
Meeting
Or Requests
Receives
Clarification
Reviews
Receives Bids
& Evaluates
Submits
BID
Reviews
Makes
Award
Receives
Copy of
Contract
Formalizes,
Signs Contr.
Signs
Contract
CONTRACT
Issues Notice
To Proceed
Start
Work
WORK
Acknowledges
Award
8
Procurement Cycle
9
The Procurement Cycle
Planning
Gen. Proc. Notice (ICB)
Bid Doc. Prep.
(Prequalification)
Publicize
Receive Bids
For ICB:
Language,
currency
Provisions, Bank
Review, award to LEB
Open Bids
Evaluate Bids
Award contract
Perform Contract
Performance Eval. Report
Bank review:
Planning
Prequal
Doc. & Eval.
Bid
Doc.
Bid
Eval.
Contract
10
11
Separate for:
Services
Goods
Decide Contract Packages:
What like items, large, small, values slice and package

How ICB, NCB, other, co-financing (Ref. to credit Agreement)
When each step, each package
Who - to do, to review
Determine lead time:
Administrative
Manufacture
Delivery
Plan:
Critical dates for each package

Tabulate/prepare bar chart
Periodically update
Use of monitoring
12
Format of Procurement Plan
13
PROCUREMENT PLAN FOR CONSULTANTS SERVICES UNDR (Project Name)

Procurement Activity:
Est. cost:
Est. cost:
Est. cost:
Method of procurement:
Method of procurement:
Method of
procurement:
Procurement Steps for

Consultants
Planned
Dates
Actual
Dates
Planned
Dates
Actual
Dates
Planned
Dates
Actual
Dates
Preparation of TORs/Cost Estimates/EOI

Banks No-objection to TORs and EOIs
(for prior review cases only)
Advertising for Expression of Interests in
National Newspapers. Additionally
advertising in UNDB required for
contracts above $200,000
Receipt of Interests from Firms
Preparation of Short List
Banks No-objection to Short List
(For prior review cases only)
Preparation of RFP
Banks no-objection to RFP
(for prior review cases)
Issuance of RFP to Short-listed Firms
Receipt of Technical and Financial
Proposals
Completion of Technical Evaluation
Banks No-objection to Technical
Evaluation
Opening of Financial Proposals
Completion of Combined/Final
Evaluation
Banks Clearance of Combined/Final
Evaluation
Negotiations/ Preparation of Draft
Contract
Banks No-objection to draft Contract
Contract Signing
14

PROCUREMENT PLAN FOR GOODS UNDER (Project Name)
Procurement Steps
for Goods
Est. Cost:
Est. Cost:
Estimated Cost:
Method of Procurement:
Planned Dates
Planned Dates
Planned
Dates
Actual Dates
Actual Dates
Actual Dates
Preparation of Bidding
Documents /
(Request for Quotations
in case of Shopping)
Banks No-Objection to
Bidding Documents
Advertisement of
Invitation for Bids
Bid
Submission/Opening
Date
Completion of
Evaluation and
Recommendations
Banks No-objection to
Evaluation and contract
award
(for prior review cases
only)
Award of Contract
Copy of signed contract
sent to Bank
Completion of Contract
15
Differences in Procurement
16
Differences in Procurements
GOODS
Red Guidelines
Product based
Open competition
Cost major factor
Specifications
Single stage procedure
Negotiations rare
Invitation of bids
Public bid opening
Bid and Performance

Securities
CONSULTING SERVICES
Green Guidelines
Knowledge based
Shortlist
Quality major factor
Terms of Reference
Two stage procedure
Negotiations usual
Request for proposals
Technical proposal opening
not public
Financial proposal opening
public
No Securities
Note: For further details please refer to the copies of the World Bank
Guidelines and Government of Pakistan Procurement Rules 2004 enclosed
in the training package.
17
Types and Methods of Procurement
18
Types
Generally the following types of procurement are to be processed / carried
out under the project: Procurement of Goods
Hiring/Contracting for Consultants Services (Firms and Individuals).
19
Methods of Procurement
For Goods:
Full and Open Competition internationally, which is also called International

Competitive Bidding (ICB)
Limited International Bidding (LIB)
Full and Open Competition within country, which is also called National
Competitive Bidding (NCB)
Small Procurement or National Shopping/International Shopping
Direct Purchase / Single Source
Force Account
For Services:
QCBS
SBCQ
QBS
Others like,
Fixed Budget
Single Source
20
PROCUREMENT METHODS
There are various methods of procurement which are used in accordance with the
situation and requirements of the legal document, like:
For Goods
Procurement through Full and Open Competition under World Bank financed
procurement called International Competitive Bidding (ICB)
Competition within the country which is also Full and Open Competition but within the
country, and is usually called NCB
Shopping or Small Purchase
Under the legal documents of the Project, however, the following procurement methods
are to be used.
1.
Procurement of Goods
2.
Contracts amounting US$ 200,000 and above shall be procured using ICB
procedures.
Contracts amounting from US$ 30,000 to 200,000 shall be procured using
NCB procedures.
Contracts up to US$ 30,000 shall be procured using National Shopping
Procedures.(+)
Hiring/Contracting for Consultants Services Firms and

Individuals.
A.
Firms
Contracts amounting to US$ 100,000 and above will be achieved

by using QCBS Method.
Contracts up to US$ 100,000 will be achieved by using SBCQ
Method
Individuals
All Contracts will be achieved by using QBS Method.
Under this project, shopping procedures are not to be followed and
procurements of more than Rs. 40,000 must be achieved through open
competition inviting bids through advertisement.
21
Part II
22
Goods contracts of US $ 2, 00,000 and above are competed internationally (ICB).
Contracts upto US $ 2, 00,000 or less are competed through full and open
competition within the country (NCB).
Procurement of smaller value i.e. upto US. $ 30,000 are made through shopping
which does not require bidding through wide publicity but the competition must
be held, and at least three quotations should be obtained and compared.
Under this project, shopping procedures are not to be followed and procurements
of more than Rs. 40,000 must be achieved through open competition inviting bids
through advertisement.
23
Procurement of Goods (Continued)

Major Steps
Preparation of specifications and cost estimates
Preparation of IFB/RFQ
Advertisement
Issuance of IFB/RFQ
Pre bid meeting
Bid opening
Bid Evaluation
Preparation of Evaluation report
Approval/NOL of Bid evaluation
Award of contract
24
Procurement of Goods (continued)

ICB
Adequate notification
Equal opportunity
Time for bid submission
Fair conditions of contract
Broad specifications
Equal treatment of bidders
Disclose evaluation criteria
Apply without discrimination
Award to lowest evaluated bid
Technically & commercialy responsive (with adjustments)
Meets qualification criteria
25
Procurement of Goods (continued)
ICB steps
Notification advertising
(prequalification)
Issue of bidding documents
Submission of bids
Public opening of bids
Evaluation
Selection of lowest evaluated bid
Post qualification
Contract award
Contract performance
26
Reference Material (ICB)
27
PROCUREMENT OF GOODS
I
International Competitive Bidding (ICB)

A. General
The legal agreement specifies the type of goods and monetary limits for such
contracts, which should be procured following the ICB procedures.
The general considerations which guide ICB procedures are:
Wide publicity on International and National level

The need for economy and efficiency in procurement
All eligible bidders from all member countries are given opportunity to
compete
Domestic preference
Importance of transparency in the procurement process
B. Eligibility
The invitation for bid must be open to all bidders, as defined under the Banks
guidelines. Inviting bids only from pre-registered firms is unacceptable.
Foreign firms should also not be precluded from competing. As exceptions to the
foregoing:
a)
A firm which has been engaged by the government to provide consulting
services for the preparation or implementation of a project, and any of its
affiliates, shall be disqualified from subsequently providing goods or
works for the same project.
b)
Government owned enterprises in Pakistan may participate only if they
can establish that they are (i) legally and financially autonomous, and (ii)
operate under commercial law. No dependent agency of the government
shall be permitted to bid for the procurement of goods, works or
consultants services.
c)
A firm declared ineligible because of fraudulent or corrupt practices in
competing for or executing a Bank financed contract.
All goods, contractors equipment, and other related services to be
supplied under these contracts shall have their origin in the eligible
source countries, defined under the Banks guidelines. For the purpose of
this clause, origin means where the goods and related services are
manufactured and produced. The origin of goods and services is distinct
from the nationality of the bidder.
C. Steps To Follow In ICB Process
Packaging of goods and works

(Qualification)
28
Preparation of bidding documents

Advertisement of invitation for bids (IFB) Internationally (in UN
Business Development)
Sale of bidding documents, and receipt of bids, and opening of bids
Evaluation of bids
Selection of lowest evaluated bid
Post qualification
Award of Contract
Contract Performance
These steps are further elaborated as follows:

Packaging of Goods and Works:
1.
2.
A procurement plan in the Banks suggested format indicating details for

each package must be compiled and sent to Bank for review and
clearance before initiating action.
Keeping in view that goods and works are to be procured economically
and efficiently, consistent with quality, appropriate individual packages
should be made. In case of works the size and scope of individual
packages will depend on the magnitude, nature, and location; in the case
of goods, it depends on quantity and nature of items to be procured.
Preparation of Bidding Documents

3.
4.
5.
Bidding documents must be prepared on the basis of the models cleared

with the bank for the project (Banks sample ICB bidding documents are
attached).
Deviations should not be made without prior clearance with the bank.
For ICB contracts, Banks clearance is necessary for each bidding
documents, even if these are based on approved models.
Bidding documents should include the following:
Part 1: Instruction to Bidders
General conditions of the contract
Part 2: Invitation to Bid
Bidding data which specifies qualification criteria, and
criteria for bid evaluation and contract award
Special Conditions of Contract
Technical specifications and drawings
Schedule of requirements/schedule of completion
Bill of Quantities (BOQ)
Forms for Bid, Bid security, Contract Agreement,
performance security advance payment security, and
manufacturers authorization
Some important provisions in the bidding conditions (Bid Data Sheet)
are as below.
i)
Currency of Bid: Should be mentioned.

29
ii)
Bid Security: Should normally be 2% of the bid price, or a fixed

amount computed on the basis of estimated cost. No exemption
of bid security should be permitted to any class of bidders.
iii)
Bid Prices: In the case of goods, bid prices are delivered duty
paid (DDP), at the destination specified.
In case of civil works, bid prices must be invited based on each
item specified in the BOQ, and not on Composite Schedule of
Rates (CSR). Contractors should be made responsible for all
materials and equipment without having to rely on departmental
supplies.
6.
iv)
Evaluation Criteria: Relevant factors in addition to price to be

considered in bid evaluation and the manner in which they will
be applied for the purpose of determining the lowest evaluated
bid.
v)
Qualification Criteria: In all cases where bidders are not prequalified, explicit post qualification criteria should be specified
in the bidding documents. In case of civil works, minimum
qualifying criteria for physical out-turn and financial turnover
should be clearly set out.
Some important provisions in the bidding documents under Special

Conditions of Contract/Contract Data are:
i)
Inspection and Tests: specify what tests are required, where they
will be conducted and who will conduct the tests.
ii)
Liquidated Damages: should not exceed 0.1% per day (for

goods), and 0.05% per day (for civil works), of the contract
price, subject to a maximum of 10% of the contract value.
iii)
Price Adjustment: should invariably be provided when the

stipulated period of completion is more than 18 months. The
adjustment formula is provided in the bidding documents.
iv)
Advance Payment: If any, must be paid against a bank guarantee.
Advertisement of Invitation for Bids (IFB)

7.
IFB must be advertised in UN Business Development, Public

Procurement Regulatory Authority (PPRA) Website and at least one
national newspaper, and must appear in all provincial capitals.
Publication in other newspapers having wide circulation in the country.
And in case of civil works sending a copy of the IFB to contractors
Association of Pakistan (CAP) and Pakistan Engineering Council (PEC),
is highly recommended.
30
Sale of Bidding Documents and Receipt of Bids

8.
Bidding documents must be made available for sale to all those who
intend to participate in the bidding, for a minimum period of 45 days.
9.
The price of bidding documents should be nominal, to cover

reproduction and mailing expenses only. Bidders should not be asked to
deposit bid security before submission of their bids.
10.
Bidders must be permitted to deposit their bids on any day during the
bidding period. Receipt of bids should not be restricted to a few days or
last ten days only. Bidders should be allowed to send their bids either by
post or in person on any day during the bidding period.
11.
A record of all bidders who purchase the biding documents should be

maintained in an orderly manner.
12.
Pre-bid conference (optional):

a)
b)
c)
Should be provided where necessary, and should be convened

early in the bidding process, but allow sufficient time for bidders
to study the bidding documents and prepare questions. The date
and time of pre-bid meeting must be specified in the bidding
documents, in the bid data sheet.
The purpose of the meeting will be to clarify issues and answer
questions on any matter that may be raised at this stage. Minutes
of the meeting indicating responses given in the meeting
(including explanation of the query but without identifying the
source of the inquiry) should be furnished to all those attending
the meeting and subsequently to all purchasers of the bidding
documents, after getting the same cleared with the Bank (for
prior review contracts).
Any modification of the bidding documents, if necessary as a
result of pre-bid meeting, shall be made exclusively through
issuance of amendment, and not through the minutes of the prebid meeting
Opening of Bids
13.
The date and time for opening of bids should preferably be the same as
the deadline for submission of bids, however not more than one hour gap
is acceptable.
14.
All bids received must be opened in the presence of all bidders

representatives who choose to attend. Participants shall sign a
register/sheet prepared for the purpose evidencing their attendance.
15.
The bidders name, bid prices, bid modifications or withdrawals,

discounts, and presence or absence of the requisite bid security shall be
announced during the opening of bids. The minutes of the bid opening,
documenting the above, must be prepared. No bid shall be rejected at bid
31
opening, except for late bids, which shall be returned unopened to the
bidder(s).
16.
Bids and modifications that are not opened and read out at bid opening
shall not be considered further for evaluation, irrespective of
circumstances. Withdrawn bids will be returned to the bidder unopened.
Evaluation of Bids
17.
Before proceeding for evaluation, preliminary examination check should

ascertain that the bids:
meet the eligibility requirements;
have been properly signed;
are accompanied by the required bid security;
are substantially responsive to the requirements of the bidding
documents; and are otherwise generally in order.
18.
If any bid is not substantially responsive, that is, it contains material

deviations from or reservations to the terms, conditions and
specifications in the bidding documents, it should not be considered
further. The bidder must not be permitted to correct or withdraw material
deviations or reservations once bids have been opened.
19
The department/agency/purchaser may waive any minor informality or

nonconformity or irregularity in a bid which does not constitute a
material deviation, provided such waiver does not prejudice or affect the
relative ranking of any bidder.
20
No preferential treatment should be given to any bidder or class of

bidders either for price or for conditions
21
Any procedure, under which bids above or below a predetermined

assessment of bid values are automatically disqualified, is not acceptable.
22
For goods and works, all substantially responsive bids should be

evaluated in detail as per procedure specified in the bidding documents.
The following points should be noted:
- in case of goods, comparison of bids shall be on Delivered Duty Paid
(DDP) prices
- for both goods and works, evaluation will exclude any allowance for
price adjustment during the period of execution of the contract, if
provided in the bid.
- bids should be loaded appropriately as per bidding documents for any
acceptable deviation with reference to the requirements.
32
23
Bonus or additional credits for bid evaluation should not be given for
offered features that exceed the required standards or specifications, or
earlier delivery schedule than specified in the bidding documents.
24
Banks suggested format for preparation of the bid evaluation report

should be used for all contracts
25
A bidder should not be required as a condition of award to undertake

responsibilities for work not stipulated in the specifications or otherwise
to modify his bid.
26
Rejection of All bids: Regardless of value, if all bids are proposed to be

rejected and bids are to be re-invited, the Banks prior concurrence
should be obtained. In the case of civil works, the system of rejecting
bids outside a predetermined margin or bracket of process should not
be used without prior clearance with the Bank.
27
Post-Qualification:
a)
The Purchaser/Employer will determine to its satisfaction

whether the bidder that is selected as having submitted the
lowest evaluated responsive bid is qualified to perform the
contract satisfactorily, in accordance with the criteria specified in
the bidding document.
b)
The determination will take into account the Bidders

financial, technical, and production capabilities, in accordance
with the qualification criteria specified in the bidding documents.
It will be based upon an examination of the documentary
evidence of the Bidders qualifications submitted by the Bidder,
as well as such other information as the Purchaser/Employer
deems necessary and appropriate.
c)
An affirmative determination will be a prerequisite for award

of the contract to the Bidder. A negative determination will result
in rejection of the bid, in which event the Purchaser/Employer
will proceed to the next lowest evaluated bid to make a similar
determination of that Bidders capabilities to perform
satisfactorily.
Award of Contract
28
Contract should be awarded to a bidder whose bid has been determined

to be substantially responsive and who has offered the lowest evaluated
price provided further that the bidder is determined to be qualified to
perform the contract satisfactorily and meets the qualification criteria
specified in the bidding document.
29
In the case of works, if the bid of the successful bidder is seriously

unbalanced in relation to the engineers estimate of the real cost of
works, Performance Security should be increased to a level sufficient to
33
protect the department against loss in the event of subsequent default of

the successful bidder under the contract.
30
If the contract is being let on a Slice and Package basis the lowest
evaluated bid price (the combined cost of all the lots) will be determined
in conjunction with other contracts to be awarded concurrently taking
into account any discounts offered by the bidders for the award of more
than one contract.
31
If extension of bid validity is required it should be sought from all

bidders before stipulated expiry date, and not from the lowest alone. In
the case of fixed price contracts, if the award is delayed by a period
exceeding 60 days beyond the expiry of the initial bid validity, the
contract price will be adjusted by a factor specified in the request for
extension. The Banks prior concurrence is required for the first request
for extension (if it is longer than eight weeks) and for all subsequent
requests for extension irrespective of the period.
32
Price negotiation with the bidders is unacceptable. If the lowest

evaluated, responsive and qualified bid exceeds the pre-bid cost
estimates by a substantial margin, the causes for the excessive cost
should be investigated and the Bank must be consulted to determine next
step(s).
33
In case of prior review contracts, evaluation report and recommendations

for award along with comparative statement should be sent to the bank
for review and clearance before communicating award of contract.
34
Performance Security:
a)
b)
c)
Performance security should be obtained for the prescribed

amount and in an acceptable form in the currency of the contract
in accordance with the conditions of the contract. Additional
security should be taken to cover the risks of unbalanced bids in
case of civil works.
Performance security should remain valid as stipulated in the
bidding document.
Failure of the successful bidder to sign the contract or
furnish performance security within the specified period shall
constitute sufficient grounds for the annulment of the award and
forfeiture of the bid security in which event the purchaser may
make the award to the next lowest evaluated bidder.
34
Other Methods
35
Other Methods of Procurement (Goods)
Limited International Bidding
Shopping
Direct purchase
Force account
Commercial practices
Community participation
UNICEF/ILO/WHO
Commodity markets
Procurement agents
Inspection agents
36
Limited International Bidding (LIB)
Appropriate when
-
Amounts are small
There are only a few suppliers
Other exceptional reasons may justify departure from full

ICB
Procedure
-
No public advertising
Solicit bids from a limited number of suppliers
Procedures otherwise identical to ICB
No domestic preference
37
National Competitive Bidding (NCB)

Appropriate when;
-
Foreign bidders are uninterested
Amounts are small
Nature of goods/work dispersed
(Steps of NCB procurement cycle same as ICB)
Principles generally the same as ICB;

-
Provide adequate competition
Adequate bid documents
Bid evaluation in accordance with pre-specified criteria
Assure award to the lowest evaluated bidder whose bid has been
determined to be substantially responsive and meets the qualification
criteria
38

Conditions
Does no exclude foreign bidders
GPN not required
Allows bidding in local language
Bid security in Pak Rupees
Payment in Pak Rupees
All bids are evaluated and compared on the basis of goods delivered duty
paid (DDP)
39
Reference Material (NCB)
40
NCB IS APPROPRIATE WHEN
The NCB procedures are appropriate when it is certain that foreign firms will not be
interested due to small values and nature of items
II
CONDITIONS FOR USING NCB
GPN not required

Foreign Firms are not precluded
Allows bidding in local language
Bid Security in Local Currency
Bid Prices in Local Currency
Payment in Local Currency
Bids are evaluated and compared on the basis of goods delivered duty paid (DDP)
41
III
National Competitive Bidding Procedures (NCB)

Generally procedures for NCB are similar to those of ICB. In this Section/part
procedures relating to NATIONAL COMPETITIVE BIDDING (NCB) are discussed
A.
General
The legal agreement specifies the type of goods and woks and monetary limits
for such contracts, which can be procured following the NCB procedures. The
general considerations which guide NCB procedures are:
B.
The need for economy and efficiency in procurement

All eligible bidders from within the country and from other member,
countries are given opportunity to compete
Importance of transparency in the procurement process
Eligibility
The invitation for bid must be open to all bidders, as defined under the Banks
guidelines. Inviting bids only from pre-registered firms is unacceptable. Foreign
firms should also not be precluded from competing.
As exceptions to the foregoing:
A firm which has been engaged by the government to provide consulting services
for the preparation or implementation of a project, and any of its affiliates, shall
be disqualified from subsequently providing goods or works for the same project
Government-owned enterprises in Pakistan may participate only if they can
establish that they are (i) legally and financially autonomous, and (ii) operate
under commercial law. No dependant agency of the government shall be
permitted to bid for the procurement of goods, works.
A firm declared ineligible because of fraudulent or corrupt practices in competing
for or executing a bank financed contract. All goods, contractors equipment, and
other related services to be supplied under these contracts shall have their origin
in the eligible source countries, defined under the Banks guidelines. For the
purpose of this clause, origin means where the goods, and related services are
manufactures and produced. The origin of goods and services in distinct from the
nationality of the bidder.
C.
Steps to Follow In NCB Process

Advertisement if Invitation for Bids (IFB)
Sale of Bidding documents, and receipt of bids
42
Opening of Bids
Evaluation of Bids
Award of Contract
A Procurement plan in the Banks suggested format indicating details for each
package must be compiled and sent to bank for review and clearance before
initiating action.
1.
Keeping in view that goods and works are to be procured

economically and efficiently, consistent with quality, appropriate
individual packages should be made. In case of works the size and
scope of individual packages will depend on the magnitude nature,
and location; in the case of goods, it depends on quantity and
nature
of items to be procured.
2.
Bidding documents must be prepared on the basis of the models cleared
with the bank for the Project (Banks sample NCB Bidding
Documents are
attached)
3.
Deviations should not be made without prior clearance with the Bank.
For prior review contracts, Banks clearance is necessary for
each
bidding
documents, even if these are based on approved models.
4.
Bidding documents should include the following:

Part 1: Instruction to Bidders General Conditions of the Contract
Part 2: Invitation to Bid
- Bidding Data which specifies qualification criteria, and criteria-for bid
evaluation and contract award.
- Special Conditions of Contract
- Technical Specifications and Drawing
- Schedule of Requirements/Schedule of completion
- Bill of Quantities (BOQ)
- Forms for bid, bid security, contract agreement, performance Security
advance payment security, and manufacturers authorization.
5.
Some important provisions in the bidding conditions (Bid Data Sheet)
should be noted.
i)
ii)
Currency of bid: should be Pak Rupees

Bid Security: should normally be 2% of the bid price, or a fixed
amount computed on the basis of estimated cost. No exemption
of bid security should be permitted to any class of bidders.
43
iii)
iv)
v)
6.
Bid Prices: In case of civil works, bid prices must be invited

based on each item specified in the BOQ, and not on Composite
Schedule of Rates (CSR). Contractors should be made
responsible for all materials and equipment without having to
rely on departmental supplies. In the case of goods, bid prices
are delivered duty paid (DDP) at the destination specified.
Evaluation: criteria relevant factors in addition to price to be
considered and bid evaluation and the manner in which they will
be applied for the purpose of determining the lowest evaluated
bid.
Qualification Criteria: In all cases where bidders are not prequalified, explicit post qualification criteria should be specified
in the bidding documents. In case of civil works, minimum
qualifying criteria for physical out turn and financial turnover
should be clearly set out.
Some important provisions in the bidding documents under special

conditions of contract/Contract data should be noted:
i)
ii)
iii)
iv)
Inspection and Tests: Specify what tests are required, where they
will be conducted in who will conduct the tests.
Liquidated Damages: Should not exceed 0. 1% per day (for
goods), and 0.05% per day (for civil works), of the contract
price, subject to a maximum of 10% of the contract value.
Price Adjustment: Should invariably be provided when the
stipulated period of completion is more than 18 months. The
adjustment formula is provided in the bidding documents.
Advance Payment: if any must be paid against the bank
guarantee.
Advertisement of IFB
7.
IFB must be advertised in at-least one national newspaper, and must
appear in all provincial capitals. Publications in other
newspapers
having
wide circulation in the country. And (in case of civil works) sending a copy of
the IFB to contractors Association
of Pakistan (CAP) are highly
recommended.
Sale of Bidding Documents and Receipt of Bids
8.
9.
10.
11.
Bidding Documents must be made available for sale, to all those who
intend to participate in the bidding, for a minimum period of 30 days.
The Price of Bidding documents should be nominal, to cover
reproduction and mailing expenses only. Bidders should not be asked to
deposit bid security before submission of their bids.
Bidders must be permitted to deposit their bids on any day during the
bidding period. Receipt of bids should not be restricted to few days or
last ten days only. Bidders can send their bids either by post or in person
on any day during the bidding period.
A record of all bidders who purchase the bidding documents should be
maintained in an orderly manner.
44
12.
Pre-Bid Conference (Optional):

a.
b.
c.
13.
14.
15.
16.
Should be provided where necessary, and should be convened early

in the bidding process, but should allow sufficient time for bidders
to study the bidding documents and prepare questions. Date and
time of the pre bi meeting must be specified in the bidding
documents, in the bid data sheet.
The Purpose of the meeting will be to clarify issues and answer
questions on any matter that may be raised at this stage. Minutes of
the meeting indicating responses given in the meeting (including
and explanation of the query but without identifying the source of
the inquiry) should be furnished expeditiously to all those
attending the meeting and subsequently to all purchasers of the
bidding documents ,after getting the same cleared with the Bank
(for prior review contracts).
Any modification of the bidding documents, if necessary as a
result of the pre-bid meeting shall be made exclusively, and not
through the minutes of the pre-bid meeting.
The date and time for opening of bids should preferably be the same as
deadline for submission of bids, however maximum of one hour
difference between these times is acceptable.
All bids received must be opened in presence of all bidders
representatives who choose to attend .Participants shall sign a register
evidencing their attendance.
The bidders name, bid prices, bid modifications or withdrawals,
discounts and presence or absence of the requisite bid security shall be
announced during the opening of the bids. The minutes of the bid
opening documenting the above must be prepared. No bid shall be
rejected at bid opening, except for late bids, which shall be returned to
the bidder.
Bids and modifications that are not opened and read out at the bid
opening shall not be considered further for evaluation, irrespective of
circumstances. Withdrawn bids will be returned to the bidder unopened.
Evaluation of Bids
17.
Before proceeding for evaluation, preliminary examination check should

ascertain that the bids:
a.
Meet the eligibility requirements;
b.
Have been properly signed;
c.
Are accompanied by the required bid security ;
d.
Are substantially responsive to the requirements of the bidding
documents(and);
e.
Are otherwise generally in order.
18.
If a bid is not substantially responsive, that is, it contains material

deviations from or reservations to the terms, conditions and
specifications in the bidding documents, it should not be considered
further. The bidder must not be permitted to correct or withdraw material
deviations or reservations once bids have been opened.
45
19.
20.
21.
22.
23.
24.
25.
26.
27.
The purchaser may waive any minor informality or irregularity in a bid

which does not constitute a material deviation, provided such waiver
does not prejudice or affect the relative ranking of any bidder.
No preferential treatment under which bids above or below a
predetermined assessment of bid values are automatically disqualified, is
not acceptable.
Any procedure under which bids above or below a predetermined
assessment of bid values are automatically disqualified, is not acceptable.
For goods and works, all substantially responsive bids should be
evaluated in detail as per procedure specified in the bidding documents.
The following points should be noted
a.
In case of goods and works , evaluation will exclude any
allowance for price adjustment during the period of execution of
the contract, if provided in the bid,
b.
Bids should be loaded appropriately as per bidding documents
for any requirements.
Bonus or additional credits for bid evaluation should not be given for
offered features that exceed the required standards or specifications, or
earlier delivery schedule than specified in the bidding documents.
Banks suggested format preparation of the bid evaluation report should
be used for all contracts.
A bidder should not be required as a condition of award to undertake
responsibilities for work not stipulated in the specifications or otherwise
to modify his bid.
Rejection of All Bids: Regardless of the value, if all bids are proposed to
be rejected and bids are to be re-invited, the Banks prior concurrence
should be obtained. In case of civil works, the system of rejecting bids
outside a predetermined margin or bracket of prices should not be used
without prior clearance with the bank.
Post Qualification:
a.
The purchaser/Employer will determine to its satisfaction

whether the bidder that is selected as having submitted the
lowest evaluated responsive bid is qualified to perform the
contract satisfactorily, in accordance with the criteria specified in
the bidding document.
b.
The determination will take into account the bidders financial,
technical, and production capabilities, in accordance with the
criteria specified in the bidding documents. It will be based upon
an examination of the documentary evidence of the Bidders
qualifications submitted by the Bidder, as well as such other
information as the Purchaser/ Employer deems necessary and
appropriate.
c.
An affirmative determination will be a prerequisite for award of
the contract to the Bidder. A negative determination will result in
rejection of the bid, in which event the purchaser will proceed to
the next lowest evaluated bid to make a similar determination of
that Bidders capabilities to perform satisfactorily.
Award of Contract
28.
Contract should be awarded to a bidder whose bid has been determined
to be substantially responsive and who has offered the lowest evaluated
46
29.
30.
31.
32.
33.
34.
price provided further that the bidder is determined to be qualified to

perform the contract satisfactorily and meets the qualification criteria
specified in the bidding document.
In the case of works, if the bid of the successful bidder is seriously
unbalanced in relation to the engineers estimate of the real cost of
works, performance Security should be increased to a level sufficient to
protect the Department against financial loss in the event of subsequent
default of the successful bidder under the contract.
If the contract is being let on a Slice and Package basis, the lowest
evaluated bid price (the combined cost of all the lots) will be determined
in conjunction with other contracts to be awarded concurrently taking
into account any discounts offered by the bidders for the award of more
than one contract.
If extension of bid validity is required it should be sought from all
bidders before stipulated expiry date, and not from the lowest alone. In
the case of fixed price contracts, if the award is delayed by a period
exceeding 60 days beyond the expiry of the initial bid validity , the
contract price will be adjusted by a factor specified in the request for
extension( if it sis longer than eight weeks) and for all subsequent
requests for extension irrespective of the period.
Price negotiation with the bidders is unacceptable. If the lowest
evaluated, responsive and qualified bid exceeds the pre-bid cost
estimates by a substantial margin, the causes for the excessive cost
should be investigated and the Bank must be consulted to determine next
steps.
In case of prior review contracts, evaluation report and recommendations
for award along with comparative statements to the Bank for review and
clearance before communicating award of the contract should be sent.
Performance Security:
a.
Performance security should be obtained for the prescribed
amount and in an acceptable form in the currency of the contract
in accordance with the conditions of the contract. Additional
security should be taken to cover the risks of unbalanced bids in
case of civil works.
b.
Performance security should remain valid as stipulated in the
bidding document.
c.
Failure of the successful bidder to sign the contract or furnish
performance security within the specified period shall constitute
sufficient grounds for the annulment of the award and forfeiture
of the bid security in which event the purchaser may make the
award to the next lowest evaluated bidder.
47
Shopping
48
Shopping
International
National
- Appropriate
Values are small

Off the shelf goods
Standard specification commodities
- No Formal Bidding Document
Requests for quotations to provide

Description & quantity of goods
Delivery time & place
- Written Quotations
Quotations by telex or facsimile acceptable
- Usually at least three quotations

(to ensure competitive prices)
- International shopping
Solicit quotations from at least 3 suppliers in 2 countries
- National shopping
Goods available from more than 1 source
- No public opening of quotations
49
NATIONAL SHOPPING PROCEDURE
There is an agreement between the World Bank and NATIONAL AIDS

CONTROL PROGRAMME, Ministry of Health that Government of Pakistan
Procurement Rules (PPRA RULES) will be used instead of NATIONAL
SHOPPING PROCEDURES of the World Bank by AIDS Control
Programmes. The PPRA rules require that all purchases over and above
Rs. 40,000/- must be processed by open bidding which means that NCB
procedures given in the previous pages should be followed.
National Shopping Procedures as per the World Bank Guidelines are
explained in the next section for information of the reader/user.
IMPORTANT NOTE
Please Consult the Legal Documents for Thresholds Fixed For Shopping
50
Reference Material
(Shopping)
51
NATIONAL SHOPPING PROCEDURE

A.
General
1.
B.
The following pages use of shopping as a procurement method is

explained. It elaborates on Para. 3.5 & 3.6 of the Guidelines. Shopping is
intended to be a simple and rapid procurement method. Shopping is one
of the least competitive procurement methods and may be abused unless
it is carried out in compliance with the legal
agreements,
and
observing a minimum of formality in the process,
and
with
appropriate record keeping for verification and audit. In fact, the Bank
has recently discovered cases of abuse that have culminated in
declaration of mis-procurement.
When is Shopping Appropriate?

2.
Shopping may be used:

a.
b.
To procure small amounts of off-the-shelf goods or standard

specification commodities for which more competitive methods
are not justified on the basis of cost or efficiency.
In emergency projects or for urgent relief-type operations
including re- establishment of vital services like utilities,
communications, shelter, and vital supplies which stem from
disasters or conflict. These emergency contracts may involve one
or several activities in supply of goods, installation and
commissioning, and very urgent minor civil works. In the case of
civil works or supply involving substantial installation, the term
shopping is not used but referred commonly as "price
comparison".
Because of the risk of abuse in procurement under shopping, the use of

this method is restricted to cases when the justification for it is beyond
contention. Borrowers may not use shopping only as an expedient to bypass more competitive methods or fraction large procurements into
smaller ones solely to allow the use of shopping.
When the nature of the specifications is complex or the type of
procurement requires an elaborate, detailed evaluation system (i.e.,
efficiencies, delivery times, etc.,) that needs substantial documentation, a
formal bidding process instead of shopping is used. Shopping is not
appropriate in these cases, because it is a method that should not require
complex documentation or all the formalities of a bidding process.
C.
Setting Thresholds
52
3.
Generally, the threshold for shopping does not exceed $100,000

equivalent for low risk implementing agencies 1 but project teams
set lower thresholds when the implementing agency is considered
as a medium or high risk one in administering procurement. The
loan/credit agreement establishes the threshold below which
shopping may be used for individual contracts and the maximum
aggregate amount that cannot be exceeded for each project, unless
the aggregate amount cannot be estimated in advance. When the need
for shopping arises during project execution and the loan
agreement does
not set the thresholds below which shopping is permitted or when changes in
the existing arrangements are required, the project team clears their proposal
with the RPA and
the country lawyer before the client is notified of the
acceptance by the Bank of the loan agreement amendments or waivers, as
necessary. The threshold for shopping in emergency projects or relief
operations may, with the clearance of the RPA be set above
$100,000
to
allow for quick restoration of vital services or for
protection of life or
critical assets.
D.
Number and Origin of Quotations to be compared

4.
Interpretation of Para. 3.5 And 3.6 of the Guidelines require the

purchaser to obtain and compare at least three quotations to
establish reasonableness of price. Comparison of two quotations is
justified only when there is evidence satisfactory to the Bank that
there are only two reliable sources of supply (national or foreign as
the case may be). It is possible that not all the suppliers invited will
respond to the request for quotations. To minimize the risk of
getting
only one or two quotations, clients are advised to initially
request
more
than three quotations. Clients may also at the time of
the
request,
verify
whether those being invited will make an offer or not. When there is more than
one source for the goods, at
competitive prices, in the country of the
borrower, the purchaser may use national shopping, but must obtain at least three
quotations. If this is not the case, then international shopping is used.
Under international shopping, borrowers request quotations
from suppliers
from at least two different countries, including the
Borrowers'. Quotation
for foreign goods located in the Borrower
country and offered by a firm
located in the Borrower country, are
considered as quoted from abroad for
purposes of satisfying the "
two different countries" rule. This is applicable,
for example, to items such as computers, vehicles, etc., that are normally
imported
by dealers of the foreign manufacturers who are also able to
provide after sales services.
E.
Firms to be Invited
5.
The borrower exercises due diligence to satisfy itself that the firms
invited to quote are reputable, well established, and are suppliers of
the goods or services being purchased as part of their normal
business. In case the borrower receives unsolicited quotations, these
may be accepted after carrying out a similar due diligence
exercise
to
verify the nature and reputation of the firms.
53
F.
Form of Requests
6.
The purchaser requests quotations by letter, fax, telex, electronic

messaging, etc., (with proof of receipt and record keeping). The request
includes the description and quantity of the goods, as well
as the required
delivery time and place for the goods or services,
including
any
installation requirements, as appropriate. The request
indicates the date by
which the quotations are needed. In extremely urgent cases, described in Para.
1 (ii) (restoration of vital services),
quotations for civil works may be
requested in the form of unit rate
prices (if work quantities are available
with a reasonable degree of
reliability), "cost plus fee" arrangements (when
quantities cannot
be reasonably determined in advance) or in the form of a
lump sum
based on cost estimates carried out by the borrower, or if not
possible, by the contractors.
G.
Prices and Currencies

7.
Prices for goods supplied from within the country (including

previously imported items) are requested to be quoted EXW (ex works,
ex factory, ex warehouse ex show room or off-the-shelf, as
applicable),
including all custom duties and sale and other taxes
already paid or payable
on the raw materials and components. For
goods offered from abroad (i.e.,
not previously imported), prices are requested CIF or CIP. However, if the
purchaser wishes to
invite quotations on DDP basis, the Bank will not object.
Staff should note that the use of DDP may pose an undue burden on foreign
suppliers for estimation of custom duties and internal
transport for relatively
small purchases. Prices for civil works are
requested, inclusive of all taxes
and duties payable by the
contractor. Prices can be quoted in any currency
of the Bankmember countries.
H.
Submission of Quotations
8.
I.
Suppliers submit their quotations in writing, i.e., by fax, telex, letter, or

electronic messaging (copies to be kept for the records). No bid or
performance securities are required. There is no requirement for strict
time and date for submission of quotations and for public opening, but
normally requests for quotes indicate the expected date of submission of
quotes, within one or two weeks
of the initial request. In other
cases, if the purchaser has not received at least three quotations within
the time set, it verifies with
the missing suppliers whether they
intend to do so and how soon. Unless there is extreme urgency or there
are already three or more quotations available, the client may give a
reasonable amount of additional time; say three more days, to get
additional quotations. At this point the client may proceed with the
comparison of the proposals received.
Comparison of Quotations
9.
Quotations are compared after adding to the quoted price for
goods,
the estimated cost of inland transportation and insurance, if
any, to the final
54
destination. For purposes of comparison, prices are

converted into local
currency at the exchange rate on the day of
invitation of the quotes or the
day of comparison. The lowest priced offer is selected. Purchasers may exercise
discretion in
selecting a quotation that is not the lowest priced, as far as there
is
a good justification. For example, a slightly higher price may be
justified for faster delivery or immediate availability in cases of extreme
urgency, when late delivery may result in heavy consequences for the purchaser.
In such cases, the intention should
be indicated in the request for quotation.
J.
Record of Award
10.
The client documents the award decision and its rationale and
keeps it
for review and audit by the Bank, as needed. The record contains also the list of
firms invited and the list and value of the
quotations
received
and
documents clearly that the award is based
on sound economic criteria.
K.
Currency of Payment
11.
Purchase orders specify the currency of payment which is the

currency of the quote. The Bank accepts payments in any currency
of the member countries.
L.
Purchasing from UN Agencies Instead of Shopping
12.
The Department/Agency may purchase goods that otherwise would

qualify for shopping under Para 3.5 and 3.6 of the Guidelines
directly from UN agencies.
55
Direct Purchase
Includes:
Extension of existing contract
Standardization
Proprietary items
Process design requires critical items from specific supplier as condition of

contractor providing performance guarantee
In exceptional cases such as response to natural disaster
Rationale:
56
Part III
Hiring of Consultants
(Firms & Individual)
57
Part III
Hiring of Consultants
1. Methods used for selection of consultants (firms and individuals)
a) QCBS
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
b)
c)
d)
e)
f)
g)
Cost Estimates/TORs
Advertising for EOI
Short List preparation
Short List of consultants
Request for proposals (RFP)
QBCBS RFP
Receipt of proposals
Evaluation criteria

Fixed Budget Selection
Single Source Selection
Selection on Consultants Qualifications
Selection of particular type of Consultants
2. Contract problem areas
58
METHODS USED FOR SELECTION OF

CONSULTANTS (FIRMS & INDIVIDUALS)
QCBS
SBCQ
QBS
FIXED BUDGET
LEAST COST
SINGLE SOURCE
OTHERS
MAJOR STEPS
Preparation of TORs
Expression of Interest
Pre-proposal conference
Receipt of technical and financial proposals
Evaluation of technical proposals
Public opening of financial proposals
Combined evaluation of technical & financial proposals
Approval /NOC to award recommendations/evaluation
Award of contract
59
QUALITY AND COST BASED

SELECTION
(QCBS)
60
QCBS STEPS
Preparation of Terms of Reference (TOR)

Preparation of Cost Estimate (Budget)
Advertisement (EOI)
Preparation of Short List
Preparation and issuance of Request for Proposals (RFP):
Letter of Invitation (LOI)
Information to Consultants
Receipt of proposals, opening and evaluation of technical proposals
Public opening of financial proposals and evaluation of financial proposals
Combined evaluation of quality and cost
Negotiations
Award of Contract
61
TERMS OF REFERENCE
Implementing Agency/Deptt responsible for its preparation

Bank or consultant may provide assistance, as the TORs must be prepared
by a specialist
Budget/TORs/Cost Estimate
Define Objectives: short and general
Define Scope: some detail and specific
Background information: existing data, studies site conditions
Reporting requirements (inception, progress, final reports)
Deliverables/time schedule
Facilities/services provided by Client/ Employer
62
COST ESTIMATES
LOCAL CURRENCY
Staff Cost
Living Expenses
Education Costs
Travel
Office Costs
Other Reimbursables
Price Escalation/Contingencies
COST ESTIMATES
FOREIGN CURRENCY
Staff Cost
International Travel
Education Costs
Travel
Office Costs
Other Reimbursable/ Misc.
Price Escalation/Contingencies
ADVERTISING FOR EOI
GPN annually updated

UNDB and National newspaper >$200,000
Optionally (depending on assignment) in an International publication
Copy of advert to respondents to GPN
63
Contact embassies
Request DACON lists
ADVERTISING FOR EOI

ADVERTISING CONTENT:
-
Request information on firms experience and capability

Keep it very simple
Do not ask for tailored responses
Give 30 days for response
SHORT LIST PREPARATION
SOURCES
Purchasers knowledge
Advertisement
Expressions of Interest
Associations
DACON
Banks Role
COMPOSITION:
Three to six firms

Max. two of one country
One from a developing country. If justified, assignment is small (less than
$200,000) and consultants available
64
REQUEST FOR PROPOSALS

(RFP) INCLUDES:
STANDARD FORMS

Information to Consultants (ITC)
Terms of Reference (TOR)
Form of Contract

Standard no need to prepare each time
ITC
SPECIFIC DETAILS name, description, phasing, inputs, short
list, address, limitations, evaluation criteria, validity period, etc.
QCBS-RFP
RECEIPT OF PROPOSALS
Sufficient time (4 to 12 Weeks)

Clarifications
Extension
Technical and Financial Proposals
Opening of Proposals Tech. Proposals opened by the committee
and Financial proposals kept sealed - unopened.
EVALUATION CRITERIA
Not too detailed

Cannot totally avoid judgment
ITC
Do not give points for unnecessary details
No. Of similar projects
65
Education
Annual turnover
EVALUATION CRITERIA
Basic Breakdown (EACH MARKED 0 100)
FIRMS EXPERIENCE
(Was considered in shortlist)
5-10
METHODOLOGY
(Depends on complexity)
20-50
KEY PERSONNEL (only key)
30-60
TRANSFER OF KNOWLEDGE
0-10
PARTICIPATION BY NATIONALS
0-10
100
Each to be subdivided further
EVALUATION CRITERIA
-
TRANSFER OF KNOWLEDGE
Based upon specific measures of compliance, not generalities.
PARTICIPATION OF NATIONALS
Refers to nationals in the team; a foreign firm could score higher
than a local team.
QCBS Evaluation Criteria (Example)

METHODOLOGY
-
Innovation
Level of detail
Understanding of assignment
30
30
40
100
66

KEY PERSONNEL
-
General Education
Length of experience
Positions held
Time with the firm
Experience in Developing
Countries
5
5
10
10
10

ADEQUACY FOR ASSIGNMENT
-
Specific Education
Specific Training
Experiences in specific field
10
10
20
EXPERIENCE IN THE REGION

- Knowledge of language
- Culture, admin system
10
10
100
67
Reference Material (QCBS)
68
PROCEDURES FOR HIRING OF CONSULTANTS (FIRMS)

A
HIRING OF CONSULTANTS
The acquisition of consulting services is based on project requirements supported by the
administrative action and availability of funds for the implementation.
Selection Based on QUALITY AND COST (QCBS)

When required services are of specific nature, a short list of 3-6, most qualified firms
shall be drawn after inviting the expression of interest or prequalification questionnaire
by advertising in major nation wide daily newspapers (two English and two Urdu) and
then competing the requirement amongst these short listed firms/consultants.
B
SELECTION PROCESS -MAJOR STEPS

If short listing is to be done before the selection of a firm, the process shall involve the
following main steps:1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Preparation of Scope of Work (SOW)/Terms of Reference (TOR)

including evaluation/selection criteria
Preparation of budget/cost estimates for the assignment
Advertisement for short listing/expression of interest
Short listing of firms
Request for proposals including its preparation and issuance (only to short
listed firms)
Receipt proposals (technical and financial)
Evaluation of technical proposals
Opening of financial proposals
Combined technical cum financial evaluation (in case cost is a factor for
evaluation)
Negotiations
Pre-Award Survey
Award of Contract
These steps are further elaborated in the following:1.
Scope Of Work (SOW) / Terms Of Reference (TOR)

SOW/TOR shall be prepared by the person in charge of the project or any other
individual/ firm fully familiar with requirements of the project activity. SOW
shall be compatible with the indicated available time frame and budget. It must
clearly define:
Purpose of the contract
69
Background information of the project including relevant previous

studies/publications.
Objectives.
Project description
Scope of the assignment.
Work Plans.
Estimated input in the shape of person
months/days of
technical/professional staff, with a statement that these are mere
estimates and consultants should propose their own estimates if they
want,
Expected deliverables including benchmarks.
Obligations of Client.
Obligations of the firm(s).
Reporting requirements
Evaluation Criteria on the basis of which proposals shall be evaluated. Some of

these criteria with ranges of score for each may be:Specific experience of the firm
Adequacy of the proposed work plan and methodology
Qualification and competence of the proposed key staff
Proposed Cost
(If cost is to be included in the selection criteria)
10 - 15 Points
25 - 35 Points
40 - 50 Points
10 - 30 Points
(In certain cases where work involved is of routine nature cost can be given up to
50 points.)
In case of Foreign Firms, the following may also be added to the criteria:
Similar experience in developing countries

Knowledge of local culture and languages
Knowledge of local laws and govt. administration
Compulsory local participation
The above criteria can be further enhanced, to suit specific jobs.

SOW shall be concise, specific and contractible. It shall contain information to
facilitate the offerors/firms in preparing a responsive proposal.
70
2.
Budget
A realistic budget, keeping in view the proposed activity, estimated time for
selection process, available funds and inflation prevailing in the country, shall be
prepared.
There are two main categories of the cost: "Fixed costs" like salaries, fee and
overhead; and "Reimbursable costs". Further break up of these categories is as
below.
Fixed costs:
Local staff salaries

Expatriate staff salaries(if applicable)
Fringe benefits/social charges
Indirect Costs.
Overheads
Fee
Reimbursable Costs:
3.
Mobilization
Travel and transport
Per diem
Office including equipment/supplies
Communications
Reproduction, copying and printing charges
Contingencies
Advertising
Expression of interest /prequalification notice should be invited through wide
publicity.
A notice (expression of interest or prequalification notice) to invite qualified
firms in the required fields shall be advertised , in two major English and two
Urdu national Newspapers published from all major cities of the country. The
firms will be allowed generally 45 days or at least 30 days to submit their
qualification data/information after the publication of the Notice in the news
papers. Whenever the services of Foreign firms are required, an advertisement in
international magazine /newspaper/UN Business Development, in addition to
local national newspapers, shall also be placed.
The advertisement for expression of interest/prequalification shall contain the
following information:
a)
b)
Brief description of Client including its functions.

Purpose and intention of the prequalification.
71
c)
d)
e)
f)
g)
h)
i)
j)
k)
l)
m)
Brief description of services

for which prequalification is to be
done/being done.
Availability of Pre-qualification Questionnaire, including details of
prequalification criteria.
Cost of pre-qualification questionnaire (if any) and address from
where available.
Date, time, the address for the submission of application for prequalification and the name/designation of the addressee who could also
respond to queries.
Time frame for prequalification process and actual services
required.
In case the necessity of site visit, facilities available for such visit(s).
Proposed conference if any for pre-submission with prospective
applicants including its date and venue..
Requirement to acknowledge the receipt of the Pre-qualification
Questionnaire
Confirmation whether the firm would submit the information or not.
Any other pertinent information which may help the interested firms to
submit a responsive application for pre-qualification
Reservation of any rights such as acceptance/rejection of the
applications.
In some cases where time is short the pre-qualification notice in the news papers
may contain all the above information briefly as against preparing a separate prequalification questionnaire along with submission date/time, address etc..
4.
Short Listing Of Firms-Committee To Evaluate The Expression Of

Interest/Prequalification Documents
A Committee comprising the representatives of the concerned divisions/ sections
including representative of Finance and Legal shall be constituted to evaluate the
prequalification documents and recommend the short listed / pre-qualified firms
(a minimum score of 60% will be generally required).
Based on the information received from the consulting firms/candidates in
respect of their qualifications, experience, availability of the requisite personnel
specialized in the field of required work for the project, financial capability and
other pertinent aspects, the Client will pre-qualify 3 to 6 most well qualified and
suitable consulting firms/individuals in each field of expertise to receive Request
For Proposals (RFP) as and when required.
On the basis of recommendations of the committee a general roster of qualified
firms/individuals for specific fields be prepared and qualified firms informed of
the fact. This roster will be updated periodically.
5.
Invitation Of Proposals
Once the list of short listed firms/consultants is approved, an invitation will be
issued to the "short listed" firms to submit their proposals.
Depending upon the complexity of the assignment reasonable time shall be given
/ allowed to firms to submit their proposals. As a general rule a period of 30- 45
days shall be allowed between obtaining the RFP and submission of proposals.
72
For large and complex contracts the time shall be 60 to 90 days, especially when
foreign firms are also expected to participate.
During the period between issuance of the RFP and 7 days before the receipt of
proposals, firms may ask for any clarification in writing and Client shall provide
these clarifications in writing and copy these to all firms who had obtained RFP.
The proposals once submitted and after the due date/time, firms will not be
allowed to make any changes. If both proposal i.e. Technical as well as Financial
are requested at the same time these shall be in separate sealed covers.
If short listing/prequalification method is not adopted:
Keeping in view the specific requirements of the project, the Client may invite
proposals from the open market. The pre-qualified firms may also participate in
the competition.
6.
Preparation And Issuance Of The Request For Proposals (RFP)

The RFP, generally shall constitute the following Sections:a)
b)
c)
d)
e)
f)
A Transmittal Letter (Letter of Invitation)

Information to Consultants
Scope of Work / Terms of Reference
Evaluation Criteria with an indication of a minimum score.
Special Instructions ( if any) and
Format of Proposed Contract.
Transmittal letter / Letter of Invitation shall list the documents included in the
RFP.
73
7.
Transmittal Letter/Letter Of Invitation

Transmittal Letter/Letter of Invitation shall normally include
a)
Brief description of the Project
b)
Intention of Client to hire the services for (brief description
of
services required),
c)
Indication that separate scaled envelopes should be used for
Technical/Financial Proposals, with clear marking on the outside of the
envelopes with date and time of opening, if Financial Proposals are also
requested.
d)
Date, time, the address for the submission of proposals and the
name/designation of the person whom to address. Depending upon the
complexity of the assignment reasonable time shall be given / allowed to
firms to submit their proposals. As a general rule at least 30 days shall be
allowed between obtaining the RFP and submission of proposals. For
large and complex contracts time between the issuance of RFP and
submission of proposal shall be 60 to 90 days, especially when foreign
firms are also expected to participate.
e)
In case the necessity of site visit, the details to facilitate such
visit(s).
f)
If any conference is planned before submission of the proposals, date,
time and place where it will be held.
g)
Validity of the proposal (normally 60-90 days.)
h)
Details of public opening of the proposals if applicable/ necessary
i)
A request to acknowledge the receipt of the RFP and confirmation
whether the firm would submit the proposal or not.
j)
The names of the firms to whom the RFP has been issued (in case of prequalified firms) and whether or not the associations between the short
listed firms are allowed acceptable
8.
Information To Consultants/Firms
This section of the RFP shall include all necessary information which will help
the prospective offerors in preparing a responsive proposal/offer and shall bring
maximum transparency to the selection process by providing information on the
evaluation criteria and factors and their respective weights and the minimum
score to qualify for the job. This will include: a)
The procedure to handle questions/clarifications concerning the RFP

and points raised during the pre- proposal conference.
b)
The method of technical, financial and combined evaluation of
proposals.
c)
Clients estimated budget for the assignment will not be disclosed.
Estimated level of input in the form of person months/days shall be indicated.
Prospective offerors would
however be free to propose their own estimate
of staff time
necessary to carry out the assignment.
d)
Indication of minimum educational qualification, experience etc. of the
key staff members.
e)
Information on negotiations; and financial and other information that
shall be required of the selected firm during negotiations of the contract.
74
f)
g)
h)
i)
j)
k)
In case of foreign firms the currency in which the costs of services shall
be given/indicated in the proposal and compared and (in case of contract
awarded the payment mode should also be indicated).
An alert notice that the firm or its affiliates shall be disqualified from
providing services under the project if such activities constitute a conflict
of interest with the services provided under the present assignment. For
example if a contract for design and supervision of certain project is
likely to be awarded to a certain firm it should be mentioned in the RFP
that this firm would not be eligible to bid on construction contract.
Format of Technical and Financial proposal
An undertaking to maintain, without changes, the proposed key staff
members and hold rates and the total proposed cost during the validity
period of the proposal.
The expected time frame for entire process and date on which successful
consultant/firm shall be expected to start work.
A statement on Tax liabilities of the firm and its proposed staff members
for the assignment.
In case of expatriate firm/consultants it should also include:
m)
n)
o)
p)
q)
r)
s)
9.
brief description of the country, major cities, facilities available at the

work location, estimated air/surface travel time/costs, information about
the local climate; travel/visa requirements for the staff coming from other
countries; and local laws concerning registration with certain bodies or
requirement to associate with the local firms.
Details of import duties and other levies on the equipment to be brought
from outside
Staff/facilities/equipment,
office space, and accommodation to be
provided by the client, if any.
Possibility of any extension in the assignment.
Possibility of subcontracting of any portion of the assignment
Payment procedures and details/requirement of deduction of tax at
source
Language in which the proposal and reports if any are to be
prepared.
The client/employer shall provide full and equal opportunity to all the
invited firms to inspect the site (if required), make any inquiries and
investigations that they consider pertinent for the project / activity and
make available any data that would help the consultants to prepare their
proposals.
Format of Contract
For the information and guidance of the consultants/firms, a format of the
proposed contract shall be included in the RFP. The proposed contract must
cover at a minimum the following aspects.a)
Introductory clause/description of the parties
b)
Definitions
c)
Services to be performed including:(i)
Description of the Project/Scope of Work/terms of reference
(ii) Key Personnel/details of personnel to be provided and
75
d)
c)
f)
g)
h)
i)
j)
h)
k)
1)
m)
n)
0)
p)
q)
r)
s)
t)
u)
v)
w)
x)
y)
z)
10.
(iii) Deliverables/reporting requirements

Commencement, term/period of the contract
Extension in the consultant's performance (optional)
Contract amount and payment including:(i)
Total price/ceiling
(ii) Advance /mobilization payment (optional)
(iii) Payment schedule and payment method/conditions
(iv) Retention (optional)
(v)
Final payment
Timing/schedule of deliverables with number of copies
Replacement of staff
Change orders (optional)
Delays
Insurance
Accounts and records
Law governing the contract and resolution of disputes
Duties/Taxes
Performance standards
Confidentiality
Ownership of reports/material
Relationship between the parties
Assignment/subcontracts
Performance guarantees ( optional)
Undertaking by the client
Undertaking by the consultants
Force Majure
Waiver
Termination
Conflict of interest
Authorized representatives and notices
Receipt and opening of technical proposals

On the date/time fixed for receipt and opening of proposals in the RFP, envelopes
containing the technical proposals shall immediately be opened. There shall be
no public opening of technical proposals. If both proposals i.e. technical as well
as financial were requested at the same time the financial proposals shall not be
opened. Proposals submitted after the time of opening shall not be entertained
and returned to the offerors without opening.
11.
Constitution of technical evaluation committee (TEC)

TEC comprising of the 3-5 officials drawn from the concerned technical
division/section shall be established. The TEC shall he responsible for evaluation
of all technical proposals received in accordance with the evaluation criteria set
out in the RFP. One of the members shall be designated as chair-person of TEC.
The TEC shall be briefed about:a)
b)
The method for evaluation;

Evaluating the proposals strictly according to evaluation criteria set out
in the RFP;
76
c)
d)
e)
12.
Keeping the process confidential;

Declaration of any conflict of interest.
Strictly prohibiting the members of the committee to contact firms who
have submitted proposals;
Keeping the proposals under safe custody at the end of the day (usually TEC is
given a separate room where they evaluate the proposals and at the end of the
day hand over the proposals to the chair-person who keeps them under lock and
key).
Evaluation of Proposals
For the evaluation of proposals one of following two methods may he used. The
method to be used shall be determined in the very beginning and RFP shall
indicate which method is to be used for selection.
a)
Quality And Cost Based Evaluation.

Under this method in addition to technical score, certain weightage is
given to cost also. The proposals are first evaluated for quality without
making any reference to cost. The cost score is then calculated, added in
technical score and combined score worked out for final ranking.
b)
Quality Based Evaluation

Under this method only technical proposals are evaluated, ranked and
contract negotiated with the top ranked firm. And if negotiations are not
successful with the top ranked firm next ranked firm is invited for
negotiations and so on.
Evaluation Process And Selection Memorandum

a)
Quality And Cost Based Evaluation.

i)
Evaluation Of Quality
Each technical proposal shall be evaluated on the basis of its
responsiveness to the SOW/TOR. If a proposal does not get a
minimum score mentioned in the RFP it would be rejected at this
stage. A detailed evaluation report describing the relative
strengths and weaknesses of each proposal shall be prepared by
the TEC. All records relating to the evaluation like individual
score sheets, rough notes etc. shall be retained upto the
completion of the assignment. The entire process of technical
evaluation shall be kept confidential.
The committee after completing the evaluation of all technical
proposals shall prepare a selection memorandum which shall
state the:
evaluation criteria;
77
ii)
list all the firms which submitted proposals;

rank the proposals according to evaluation criteria;
list all proposals declared/considered acceptable in the
order of ranking ;
detailed discussion on merits and weaknesses of each
proposal; and
Weaknesses of proposals not considered acceptable.
Evaluation of Cost
As soon as the technical evaluation is completed, the firms
which are qualified shall be informed and notified the date and
time for opening of their financial proposals. The financial
proposals shall be opened publicly in the presence of
representatives of the firms who may choose to attend. The
technical score obtained and proposed cost of each firm with its
name will be announced. The minutes of such public opening
shall also be prepared and retained in the files.
The financial proposals then shall be checked for arithmetical
errors if any and corrected. To compare the proposals at equal
footing in case of foreign firms, costs proposed by all firms will
be converted into one currency.
The technically qualified proposal with the lowest cost shall get
full financial score indicated/given in the RFP and other
proposals shall be given financial score that are inversely
proportional to their cost.
(iii)
Combined Quality and Cost Evaluation

The total score shall be obtained by adding the resultant
technical and cost scores and on this basis ranking decided and
contract negotiated with the top ranked firm.
b)

This method should be used for complex or highly specialized
assignment for which it is difficult to define precise SOW/TOR and
consultants are expected to demonstrate innovation in their proposals or
assignments under which highly qualified and eminent specialist are
required, like policy studies of national importance, or assignments that
can be performed in different ways and proposals can not be compared.
Under this option only technical proposals shall be invited, evaluated
and ranked. The top ranked firm shall then be requested to submit its
detailed cost proposal and the contract shall be negotiated with this firm.
If the negotiations with this firm are not successful the next ranked firm
shall be contacted for the cost proposal and so on. Client may obtain
financial proposal in separate sealed cover also along with Technical
78
proposals and keep under safe custody separately. Under such

circumstances financial proposal of top ranked firm shall only be opened
after the completion of technical evaluation. And if the negotiations with
the top ranked firm are successful, the financial proposals of other firms
should be returned unopened without any further delay.
The same selection process/procedure for Quality + Cost and only
Quality based method shall be followed other than explained above.
13.
Negotiations and Award of Contract

Without allowing any major changes in the original SOW/TOR and terms of the
contract Authority and firm can discuss the staffing plans, methodology and any
other concern of both the parties. Agreed work plan/methodology and
SOW/TOR shall be made the part of the contract. No changes in the key staff
shall be allowed at this stage. Since cost had been a factor in selection process,
without any special circumstances there shall be no negotiations on cost. In case
negotiations are not successful the firm shall be informed indicating the reasons
and next ranked firm invited for negotiations, until the negotiations are
successfully completed and contract signed.
14.
Information to Unsuccessful Firms/Consultants

As soon as the contract is signed with the successful firm, the unsuccessful firms
who had submitted proposals shall be informed promptly. The letter to these
firms shall contain the name and address of the successful firm, total amount of
the contract and appreciation for submitting a proposal with a request to continue
interest in Client's future projects.
15.
Debriefing to Unsuccessful Firms

In case a unsuccessful firm requests a debriefing on "why it could not win the
contract" Client shall inform that firm in general terms why it could not be
selected.
79
QUALITY BASED SELECTION
80
QUALTIY BASED SELECTION

WHEN:
Complex or highly specialized

High downstream impact
Non comparable
Technical proposal only
81
SINGLE SOURCE SELECTION
82
SINGLE SOURCE SELECTION

WHEN:
Small routine Assignments

Very small contract amount
Expressions of interest
Most appropriate qualifications
Full proposal
83
LEAST COST SELECTION
84
LEAST COST SELECTION

WHEN:
Routine Assignments
Contract amounts not large
Threshold for quality
Selection of firm with lowest cost above threshold
85
SELECTION ON CONSULTANTS
QUALIFICATIONS
86
SELECTION ON CONSULTANTS QUALIFICATIONS

WHEN:
Small routine Assignments

Very small contract amount
Expressions of interest
Most appropriate qualifications
Full proposal
87
SELECTION OF PARTICULAR
TYPES OF CONSULTANTS
88
SELECTION OF PARTICULAR TYPES OF

CONSULTANTS
UN agencies
o Neutralize privileges
o Single Source threshold
NGOs
o No preference
Procurement and Inspection Agents

QCBS (50% for cost)
Banks
o QCBS
o Retainer and success fee
o Higher weight for cost
Auditors
o QCBS (40-50%)
Service delivery contractors

o Defined in the Loan agreement
89
CONTRACTS
PROBLEM AREAS
90
PROBLEM AREAS
Omissions
Additional services
Staff substitution
Liability/Insurance
Taxation
Conflict of interest
Output/Input definition
Payment terms
Skills transfer
Disputes
Termination
91
Part IV
General
92
Table of contents
1. Incoterms
2. Fraud & Corruption
3. Review by IBRD/IDA (Donor)
4. Mis-Procurement
5. Conflict of Interest
6. Guarantees
7. Record Keeping
8. Contract Administration
9. Contract Close out
10. Test
93
INCOTERMS
94
COMMONLY USED INCOTERMS
EXW
Ex Works (named place)
FCA
Free Carrier (named place)
FAS
Free alongside Ship (named port of shipment)
FOB
Free On Board (named port of shipment)
C&F
Cost and Freight (named port of destination)
CIF
Cost, Insurance and Freight (named port of destination)
CPT
Carriage Paid to (named place of destination)
CIP
Carriage and Insurance Paid to (named place of destination)
DAF
Delivered at Frontier (named place)
DES
Delivered Ex Ship (named port of destination)
DEQ
Delivered Ex Quay (named port of destination)
DDU
Delivered Duty Unpaid (named place of destination)
DDP
Delivered Duty Paid (named place of destination)
95
Fraud and Corruption
96
Fraud and Corruption
The highest standards, of ethics during procurement and

execution of contracts are required.
Corrupt Practice means the offering, receiving or solicitation
of anything of value to influence a public official in the
procurement process or in context of execution
Fraudulent practice means a mis-representation of facts in
order to influence a procurement process or the execution of a
contract to the detriment of the Purchaser, and includes the
collusive practice among bidders (prior to or after bid
submission) designed to establish bid prices at artificial, non
competitive levels and to deprive the Purchaser of the benefits
of free and open competition
The Bank/Department Will reject a proposal for award if the
bidder is
involved in fraud or corruption
Cancel portion of the loan if Purchaser/Deptt
representatives are involved in fraud and corruption, and
satisfactory remedial action is not taken by the department.
Will declare a firm ineligible either indefinitely or for a
stated period of time
Inspect and audit accounts and records of suppliers and
contractors
97
REVIEW BY BANK
98
WHAT IS BANK REVIEW?
Review of procurement plans, documentation and decisions made by the

Purchaser/Department.
Purpose of reviews
When Reviews take place
Scope of Prior Reviews
Post Reviews
at the bank
in the field
1)
To ensure that the procurement process is carried out in accordance with

the agreed procedures (LA and Guidelines)
2)
To ensure that funds are used for intended purposes.
99
POST REVIEWS
Documents required for review.

Scope of review
Procedure for review
Post Review at the Bank/in the field
Bank Requirements for reviews
Findings
DOCUMENTS REQUIRED FOR REVIEW

After award but prior to first withdrawal application:
A conformed copy of the contract including:

- Analysis of respective proposals
- Recommendations for award
- Any other information requested by the Bank
SOE Contracts: All documentation is retained by the Purchaser for

subsequent examination by the Bank.
100
SCOPE OF REVIEW
After the awarding of contracts, review of procurement actions is carried out on
sample basis
Documents sent to the Bank
OR
In the field on documents retained by the Purchaser/Department
PROCEDURE
If the review is carried out on documents sent to the Bank:
1)
2)
A sample of contracts are selected for review (15%)

The documentation for each contract is reviewed using the check
lists.
For reviews in the field:
Bank Requirements
1)
Purchaser is given notice of review in advance.
2)
Contract Rosters must be maintained by the Purchaser as per suggested

format.
3)
All documents must be in original condition
4)
A random sample (15%) of awarded contracts is selected for review
5)
Detailed review is carried out using the checklists.
101
FINDINGS
If the Bank determines that the award of the contract(s) or contract itself is not
consistent with the Loan Agreement, the Purchaser is informed accordingly.
In case of major deviations, the Bank may take one or more of the following actions:
1.
Proportion of contracts to be reviewed may be increased.
2.
All contracts may be subject to review
3.
Mis-procurement may be declared by the Bank.
102
WHEN DO REVIEWS TAKE PLACE?

Prior Review
Involves the review of proposed procurement documentation and

decisions at various stages of the procurement process.
Post Review
Carried out on contracts not subject to prior review after action has been
taken by the Purchaser
103
SUMMARY OF BANK REVIEWS
Bank review ensures that procurement documentation and actions are according
to Agreement.
Bank reviews, procurement plans, and documentation prior to and after awards
Requirements for mandatory reviews are specified in LA.
For prior review requirements, no objection must be obtained at each stage of the
procurement process.
For contracts below the prior review threshold, review is carried out on a sample
basis after the award of contracts
For reviews in the field, Purchaser must maintain all documents in order.
Bank will take action against major deviations observed in post review.
Post Review procedure requires evaluation report and copies of contract
104
Mis-Procurement
105
Mis-procurement
The Bank does not finance expenditures for goods which have not been procured
in accordance with the agreed procedures in the Loan Agreement, and it is the
policy of the Bank to cancel that portion of the loan allocated to the goods that
have been mis-procured. The bank may in addition exercise other remedies under
the Loan Agreement.
106
107
THE WORLD BANK CLAUSE RELATING TO CONFLICT OF INTEREST
Bank policy requires that Consultants provide professional, objective, and impartial advice and at
all times hold the Clients interests paramount, strictly avoid conflicts with other assignments or
their own corporate interests and act without any consideration for future work.
Without limitation on the generality of the foregoing, Consultants, and any of their affiliates, shall
be considered to have a conflict of interest and shall not be recruited, under any of the
circumstances set forth below:
Conflicting activities
A firm that has been engaged by the Client to provide goods, works or services other than
consulting services for a project, and any of its affiliates, shall be disqualified from providing
consulting services related to those goods, works or services. Conversely, a firm hired to provide
consulting services for the preparation or implementation of a project, and any of its affiliates,
shall be disqualified from subsequently providing goods or works or services other than
consulting services resulting from or directly related to the firms consulting services for such
preparation or implementation. For the purpose of this paragraph, services other than consulting
services are defined as those leading to a measurable physical output, for example surveys,
exploratory drilling, aerial photography, and satellite imagery.
Conflicting assignments
A Consultant (including its Personnel and Sub-Consultants) or any of its affiliates shall not be
hired for any assignment that, by its nature, may be in conflict with another assignment of the
Consultant to be executed for the same or for another Client. For example, a Consultant hired to
prepare engineering design for an infrastructure project shall not be engaged to prepare an
independent environmental assessment for the same project, and a Consultant assisting a Client in
the privatization of public assets shall not purchase, nor advise purchasers of, such assets.
Similarly, a Consultant hired to prepare Terms of Reference for an assignment should not be hired
for the assignment in question.
Conflicting relationships
A Consultant (including its Personnel and Sub-Consultants) that has a business or family
relationship with a member of the Clients staff who is directly or indirectly involved in any part
of (i) the preparation of the Terms of Reference of the assignment, (ii) the selection process for
such assignment, or (iii) supervision of the Contract, may not be awarded a Contract, unless the
conflict stemming from this relationship has been resolved in a manner acceptable to the Bank
throughout the selection process and the execution of the Contract.
Consultants have an obligation to disclose any situation of actual or potential conflict that impacts
their capacity to serve the best interest of their Client, or that may reasonably be perceived as
having this effect. Failure to disclose said situations may lead to the disqualification of the
Consultant or the termination of its Contract.
No agency or current employees of the Client shall work as Consultants under their own
ministries, departments or agencies. Recruiting former government employees of the Client to
108
work for their former ministries, departments or agencies is acceptable provided no conflict of
interest exists. When the Consultant nominates any government employee as Personnel in their
technical proposal, such Personnel must have written certification from their government or
employer confirming that they are on leave without pay from their official position and allowed
to work full-time outside of their previous official position. Such certification shall be provided to
the Client by the Consultant as part of his technical proposal.
Unfair Advantage
If a shortlisted Consultant could derive a competitive advantage from having provided consulting
services related to the assignment in question, the Client shall make available to all shortlisted
Consultants together with this RFP all information that would in that respect give such Consultant
any competitive advantage over competing Consultants.
109
Record Keeping
110
RECORD KEEPING
CONTRACT ROSTER
CONTRACT/ PROCUREMENT FILE
CONTRACT REGISTER
FORMAT OF REPORTING OF CONTRACTS
111
CONTRACT ROSTER- GOODS

Project Name:
Sr.
No
IFB
Ref
No.
Mode of
Procurement
Type of
Bank
Review
Credit No.
Works/Goods
Description
Estimated
costs
Complete
d
(Date)
Sent
to
Bank
(Date)
Bank
Clarification
(if any)
(Date)
Banks
No
Objection
Tender
Notice
Advertised
On
(Date)
(Date)
112
Bid
Docs.
Made
available
On
(Date)

Project Name:
Pre-bid
Meeting
(if any)
Sent to
Bank
On
Sent to
Bidders
on
Original
(Date)
(Date)
(Date)
(Date)
Credit / Loan No.

Extended
(list all
extensions
if any)
(Date)
No. of
Bids
Received
(Date)
Minutes of
bid opening
send to
bank on
(Date)
Original
Extended
(list all
extension
s
if any)
(Date)
Ext. Request
Sent for
Banks prior
Concurrence
(Date)
Banks
Clarificatio
ns
(if any)
Banks
NoObjection
(Date)
(Date)
(Date)
113

Project Name:
Completed
Sent to
Bank
on
Bank
Clarifi
cation
(if any)
Banks
NoObjection
Credit / Loan No.

Acceptence
Letter(s)
Issued
On
(Date)
No.
Signed
on
Send
to
Bank
on
Stipulated
Actual
Contract
or/
Supplier
Name &
Country
Contract
Value
114
Final
paymen
t To
Contrac
tor/
supplier
Delay
in
Payme
nts
(if any)
CONTRACT ROSTER- CONSULTANTS -FIRMS &

INDIVIDUALS)
115
CONTRACT ROSTER- Consultants

Project Name:
Sr.
No
Description
of services
Estimated
Cost
Credit No.
Type of
Bank
Review
Methods of
Selection
TOR Prepared
(Date)
Expreission of Interest
Advertised
(Date)
Closing
Date
(Date)
No. of
Responses
Short-listing and RFP (LOI)

Short list
Completed
116
No. of Firms
Short listed

Project Name:
RFP
Prepared
(Date)
RFPshrt-list
sent to
bank
RFP Issued
to Firms
Proposal
Submitted/
Closing
(Date)
Credit / Loan No.

Technical Proposal
Proposal
opened
Evaluation
Completed
Sent to
Bank
Financial Proposal
Banks No
Object
Opened Publicity
Evaluation
Completed
Final (Combined
Cost & Quality
Evaluation
Completed
117

Project Name:
Credit / Loan No.
Final (Combined Cost & Quality

Evaluation
Completed
Sent to
Bank on
Banks No Object
Negotiations
Negotiatio
ns
Complete
Draft
contract sent
to Bank
Banks NOC
Award
Contract
Awarded
(Date)
Contract No.
Contract
Signed on
(Date)
118
Sent to
Bank

Project Name:
Credit / Loan No.
Contract Completion
Stipulated
Actual
Information
Name of
Consultant
Contract
Value
Final Payment Delay in Payment (if

any)
119
CONTENTS OF A CONTRACT/ PROCUREMENT

FILE
Vol. I
Project Paper containing all project details from the start of the project up to the final
approval, Funding Documents, Project Appraisal Paper, Project Implementation Paper,
and Credit Agreement if funded by any Donor
Vol. II
Approved Specifications/SOW/TORs with Procurement Method and Evaluation Criteria
EOI/Advertisement
Clipping (Copy of the advertisement) from at least one Newspaper with Date
List of Firms requesting Tender Documents/ Qualification Questioner
Proceedings of committee appointed to evaluate applications/EOIs
List of approved/short listed Firms along with approval letter from the approving
authority/donor
Copy of Draft RFP/IFB
Copies of comments from concerned quarters on IFB/ RFP
Copy of Approved RFP/IFB with a copy of NOC/NOL/Approving Letter
Copy of Minutes of Pre-Proposal Conference/Pre-Bid Meeting
Record of Bid opening meeting with details of Bid security instruments/amounts
List of bidders/firms submitting bids/proposals on fixed date/time
List of bidders/firms submitting bids/proposals late (if any)
Notification and details of Evaluation Committee formation

120
Evaluation Report with rough notes of evaluation committee

proceedings/members
Award recommendations with signatures/notes of evaluation committee (if any)
Notification of Award if applicable
A fully executed (by both parties) copy of contract
121
CONTRACT REGISTER
ESSENTIAL ENTRIES OF CONTRACT REGISTER
(When any contract is executed both parties should also sign this register)
S.N.
Contract
Number
Description of
Services/Supplies
Amount
Effective
Date
Completion Date
Date of Signing
Signature
Received by &
Signature
122
FORMAT FOR REPORTING OF CONTRACTS

Credit No.__________ Project__________ Report Date ___________
S.N.
Description of
Services/Supplies
Est.Cost
USD
Proc.Method
ICB,NCB,
Shopping/Small
Pur.,QCBS,
QBS
Banks Review
required (Prior or
Ex-Post)
Name of
Contractor/
Consultant
Contract No. &

Date
Value of Contract
PKR
123
Remarks
GUARANTEES
124
WHAT IS A BANK GUARANTEE?

A bank guarantee may be defined as the obligation of a bank to pay a sum of money in
the event of nonperformance of a contract by the Contractor/supplier
Guarantees are usually irrevocable, unconditional and payable on first demand
Bank guarantees are, as a rule, subject to the laws of the country of the issuing bank
In international trade, it is difficult for the buyer of goods or services to accurately
assess the professional ability and financial position of a supplier. He demands
therefore, and quite rightly, that the sellers ability be secured.
The purpose of performance guarantees

To ensure that the beneficiary receives the services, including materials, that he
contracted for and that he receives them within the time frame stipulated in the contract.
125
126
After the signing of the contract, day to day its, administration is also part of procurement
responsibilities procurement office must oversee and, actions other than technical issues.
Any action increasing/decreasing total contract amount, level of effort, contract period
must be addressed in accordance with the contract clauses and with the mutual agreement
of both parties except if contract is being terminated for default.
127
Contract Close Out
128
Contract Close Out

All Contracts when completed must be closed out
129

Trainer's Manual For Capacity Building in Procurement Using World Bank & IDA Rules

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Capacity Building Manual for Procurement

A Training Manual for

Anjum Asim Shahid Rahman

Capacity Building Manual for Procurement

Part III-Hiring of Consultants

Quality Based Selection

3. Contract problem areas

Capacity Building Manual for Procurement

Capacity Building Manual for Procurement

ACRONYMS AND ABBREVIATIONS

National AIDS Control Programme

Capacity Building Manual for Procurement

Capacity Building Manual for Procurement

Capacity Building Manual for Procurement

FLOW CHART OF THE PROCUREMENT PROCESS

Define goods, works,

Prepare Bid Docs

Issue Bid Documents

Procurement, Contract Management and Capacity Building Project

Capacity Building Manual for Procurement

FLOW CHART OF THE PROCUREMENT

Capacity Building Manual for Procurement

Capacity Building Manual for Procurement

The Procurement Cycle

Capacity Building Manual for Procurement

Capacity Building Manual for Procurement

Decide Contract Packages:

What like items, large, small, values slice and package

Determine lead time:

Critical dates for each package

Capacity Building Manual for Procurement

Format of Procurement Plan

Capacity Building Manual for Procurement

PROCUREMENT PLAN FOR CONSULTANTS SERVICES UNDR (Project Name)

Procurement Steps for

Preparation of TORs/Cost Estimates/EOI

Capacity Building Manual for Procurement

Capacity Building Manual for Procurement

Capacity Building Manual for Procurement

Bid and Performance

Capacity Building Manual for Procurement

Types and Methods of Procurement

Capacity Building Manual for Procurement

Capacity Building Manual for Procurement

Full and Open Competition internationally, which is also called International

Limited International Bidding (LIB)

Small Procurement or National Shopping/International Shopping

Direct Purchase / Single Source

Capacity Building Manual for Procurement

Hiring/Contracting for Consultants Services Firms and

Contracts amounting to US$ 100,000 and above will be achieved

Procurement, Contract Management and Capacity Building Project

Capacity Building Manual for Procurement

Capacity Building Manual for Procurement

Goods contracts of US $ 2, 00,000 and above are competed internationally (ICB).

Capacity Building Manual for Procurement

Procurement of Goods (Continued)

Preparation of specifications and cost estimates

Pre bid meeting

Preparation of Evaluation report

Approval/NOL of Bid evaluation

Capacity Building Manual for Procurement

Procurement of Goods (continued)