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ADB Guidelines and Procurement Process

The document outlines ADB's guidelines and procurement process. It discusses key principles like procurement from member countries and transparency. It then details the various procurement methods and steps involved. This includes preparing bidding documents, evaluating bids, awarding contracts, and general requirements around areas like eligibility, bid security and evaluation criteria. The goal is to ensure an open, competitive and transparent procurement process.

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Gautam
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316 views

ADB Guidelines and Procurement Process

The document outlines ADB's guidelines and procurement process. It discusses key principles like procurement from member countries and transparency. It then details the various procurement methods and steps involved. This includes preparing bidding documents, evaluating bids, awarding contracts, and general requirements around areas like eligibility, bid security and evaluation criteria. The goal is to ensure an open, competitive and transparent procurement process.

Uploaded by

Gautam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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ADB Guidelines and

Procurement Process

Narendra Chand
Basic Principles
•Procurement from ADB Member Countries
•Economy and Efficiency in Procurement
•Same Information and Equal Opportunity
•Encouraging the Development of Domestic
Countries and Manufacturing Industries
•Transparency in Procurement
Procurement Methods
• International competitive bidding
• National competitive bidding
• Shopping
• Community participation
• Force account
Procurement Steps
Step 1- Preparatory works during
processing
• EA capacity assessment
• Procurement plan
Action on advance contracting
Approval of retroactive financing
Procurement Steps (cont…)
Step 2- Advertising
• Advertise notice in the ADB website
• Advertise locally
Step 3-Prequaification
• Drafting prequalification documents
• Prequalification evaluation report
Procurement Steps (Cont…)
Step 4- Preparation of Bid documents
• Standard bidding documents (SBDs)
User’s guide for procurement of Goods
User’s Guide for procurement of works –
Large contracts
User’s guide for procurement of works- Small
contracts
• Shopping for goods and works – No SBDs
Procurement Steps (cont…)
Step 5- Eligibility
• Determining eligibility
• Conflict of interest
• Government owned enterprises
• Ineligibility under the fraud and
corruption provisions
Procurement Steps (cont…)
Step 6- Bid opening
Step 7- Bid evaluation
• Guide on bid evaluation
Step 8- Contract award
Preparation of Bidding
Documents
Bid Packaging/Procurement Plan
(PP)
• Ensure thresholds are met for goods
and works in accordance with PP
• Confirm that review of documents
(prior/post) , and methods of
procurement in accordance with PP
Preparation (cont…)
Invitation for Bids (IFB)
• Ensure that bids are opened
immediately after the closing date /time
of bid submission
• Ensure that IFB refers to summary of
important evaluation and qualification
criteria
• No need to elaborate other information
– part of bid data sheet and
particular/special conditions of contract
Preparation (cont…)
General Requirement of Bid Doc.
• Ensure that bid documents are
consistent with grant document
• Use most recent SBD template
• Draft bid document are delivered to
ADB at least 21 days prior to proposed
date of issue
• Modifying from the SDB must only
through bid data sheet, and special
conditions of contract
Section I- Instructions to Bidder
• Ensure that Section I of the most
recent SBD template is not
amended in any way
Section II – Bid Data Sheet
• Ensure if Bid Data Sheet does not have
provision of margin of preference, Section
III (Evaluation and Qualification Criteria)
should not include margin of preference as
criteria
• Do not use both a bid security and a bid
security declaration
• Include price adjustment provision if the
contract period exceeds 15 months
Bid Data Sheet (cont…)
Understand the Following Incoterms
• EXW (Ex-work) – For goods procured
within the country. The buyer bears all
costs and risks in taking gods from seller’s
premises to destination
• CIF- For goods procured from outside the
country (maritime transport)
• CIP- For multi-modal transport
Bid Data Sheet (cont…)
• Do not allow bids to be received in
multiple locations
• Ensure that bid prices can be expressed
in up to three currencies (for ICB)
• Do not permit domestic preference to
apply to NCB
• Check bid validity period
• Check bid security period and amount
Section III- Evaluation and
Qualification Criteria
• Check that average annual turnover for a contract is
based on 2*V/T, where V-cost estimate, T-
construction period in year
• Do not set evaluation and qualification requirements
restrictive to competition
• Ensure proper cash flow requirements
• Ensure proper and realistic requirement on similar
size and nature, and activity
• Ensure clear requirement for multiple contracts
Section IV- Bidding Forms
• Ensure that bid document includes
all forms related to litigation,
financial situation/resources,
turnover, and experience
Section V- Eligible Countries
• Ensure that most recent list of
member countries is used
Section VI- Schedule of
Supply/Employer’s
Requirement
• Technical specification must be
clear
• Do not specify the features which
only one or a small minority of
suppliers can meet
• Do not refer brand names in
Specifications
Section VII- General Conditions
of Contract
• Ensure that Section VII of the most
recent SBD template is not
amended in any way
Section VIII- Special Condition
of contract
• The aggregate liability of supplier under
contract , generally 110%
• Check the liquidate damages -0.5% per
week for supply,0.05% per day for
works, maximum 10% of the contract
value
• Check the adjudication and arbitration
provisions
Bid Opening
• Do not reject bids at opening
proceedings except for late bids
• Read out discount as contained in the
bid
• Include in record of bid opening even bid
with deficiency bid amount
• Do not reject outright at bid opening bids
with deficiency bid security
BID Evaluation
• Completeness of Bids
Bid security
Properly signed
Power of attorney
Joint venture agreement
Eligibility of bidders
Bid Evaluation (cont…)
• Substantial Responsiveness (no major
deviations)
Signing the bid form and price schedule
Satisfying eligibility requirement
Bid validity and security as specified
No conditional bid
Accepting price adjustment formula
Quote for major items
Bid Evaluation (cont…)
• Detailed evaluation
Annual turnover, cash flow
requirement, and experience
Specification-plant rating, capacity,
speed, voltage and pressure etc
Performance characteristics-plant
efficiency, fuel consumption etc

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