WORLD BANK BIDDING DOCUMENTS AND MAIN FEATURES 1

BIDDING DOCUMENTS w Purpose n n Instruct bidders on procedure for submission of bids Describe goods or works to be produced Inform the bidders of criteria for evaluation Define conditions of contract w Components n n n Invitation for bids Instruction to bidders (ITB), ITB data sheet General conditions of contract (GCC); GCC data sheet/special (SCC) Technical specifications Schedule of requirements Bidding and contract forms and attachments 2

INSTRUCTIONS TO BIDDERS w Eligibility qualification w Procedure for clarifications w Bid preparation - form w Number of copies, addressee w Language w Pricing and currencies w Modification and withdrawal w Bid securities, sureties, etc. 3

INSTRUCTIONS TO BIDDERS w Bid evaluation criteria and procedures w Domestic preferences w Closing date w Bid submission procedures w Corrections w Bid validity w Opening of bids 4

BIDDING DOCUMENTS SALIENT FEATURES w Language n n Official language of Bank (English, French, Spanish) except bidding at national level For bank review all documentation shall be in one of the official Bank languages w Bid Prices n Goods (Excludes custom/import/other levies on finished goods) l l n Mandatory Optional Works (Include all taxes and duties paid or payable) l l n CIF/CIP/EXW FOB/CFR Unit Price Lump Sum Turnkey l Erected at site (Including all duties, taxes, except on imported equipment quoted CIF/CIP) 5

BIDDING DOCUMENTS SALIENT FEATURES w Bid Currency n Goods l l n Borrower may ask bidders to state local costs in currency of country Bidders have option to state foreign currency amount in any Bank member currency but not more than three foreign currencies Works l l Borrower may ask bidders to state price entirely in local currency and allow payments in up to three foreign currencies for inputs from abroad Alternatively provisions similar to goods 6

BIDDING DOCUMENTS SALIENT FEATURES w Payment Conditions n n n Fixed price (contracts/delivery up to 18 months) Price Adjustment (contracts delivery beyond 18 months) Advance payments Letter of credit Direct payment w Bid Security n n n Should not be too high 1 to 5 percent of price Fixed amount preferable 7

BIDDING DOCUMENTS SALIENT FEATURES w Performance Security n n Goods: 5 -10 percent Works: 10 percent w Advance Payment n Bank guarantee for equal amount w Retention Money n 5 percent of contract value 8

TECHNICAL SPECIFICATIONS w General n n n Sufficiently specific to elicit responsive bids Enable participation by any qualified bidder, without technical prejudice Display technical criteria for evaluation of bids w Particular (Goods) n n Technical features (Mandatory, desirable/optional) Performance requirements/design criteria Reference to Design drawings Applicable standards and codes internationally acceptable (substantial equivalence acceptable) 9

TECHNICAL SPECIFICATIONS n n n Requirements for commissioning and operating conditions Guarantee requirements Discourage specific brand requirements or trade marks w Particular (works) n n Reference to Working Drawings Bill of quantities Industry standards Locally applicable codes 10

GENERAL CONDITIONS OF CONTRACT w w w Rights and obligations of both parties Procedure for shipment, insurance inspection, documentation Procedure for measurement Procedure for alterations Price adjustment procedure Procedure, terms and currencies of payment Procedure for performance securities Force majeure Procedure for damages, penalties for delay Procedure for termination Mode and form for settling disputes 11 Applicable law

SPECIAL CONDITIONS OF CONTRACT w w w w Definition of the purchaser/supplier Specific amount of performance security Specific procedures for inspection testing Special requirements for insurance Specific payment terms/currency Price adjustment mechanism Other deletions/additions to general conditions 12

LIST OF DOCUMENTS AVAILABLE w Bank’s standard bidding documents for procurement n n n n n Goods - Yes Works - Yes Prequalification Supply and Installation Commodity Health Sector Goods (Pharmaceuticals, Vaccines and Condoms) Textbooks Information Technology Petroleum Products Bid Evaluation Report - Yes 13

LIST OF DOCUMENTS AVAILABLE w Other documents as approved by region for use n n NCB (goods, works, minor works, etc. ) - Yes Standard requests for quotes l International Shopping - Yes l National Shopping w Evaluation reports for NCB, IS, NS and minor works - Yes 14

BIDDING DOCUMENTS COMMON ISSUES w No changes in certain sections of document w Fill in bid and contract data sheets w No changes after Bank’s no-objection or obtain Bank’s clearance before making changes in bid documents w Always send to Bank copy of the bid document and amendments as issued to bidders w Send to Bank minutes of pre-bid meeting, if any w Prepare project specific SBDs based on Bank’s SBD (ICB and Non-ICB) w Mix of documents (using clauses of different documents) is unacceptable w Use of Bank’s standard Bid Evaluation Report 15

BIDDING DOCUMENTS COMMON ISSUES w w w Bid closing and opening at same time Cost of bid document Bidding time Language Commercial deviations (law-liquidated damagestaxes-termination-warranty-arbitration) w Certifications/authorizations/registration w Bid and performance security (period-value) 16

BIDDING DOCUMENTS COMMON ISSUES w Bid evaluation criteria (goods/works/information technology/ supply and install) w Bid validity extension – should be avoided – Bank approval required before second and subsequent extensions or for extension after 60 days from original validity – for fixed price contracts extension beyond 60 days requires increase in price by predetermined factors w Payments and delays w Incidental and after-sales services w Spare parts w Appropriate review of bidding documents and bids (establish substantial responsiveness in evaluation reports) 17