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PROCUREMENT AUDIT REPORT
11- Sub projects
Individual Consultant for Technical and Procurement Audit and
Usability Assessment of MDP3-W1 Sub-projects (by End of Cycle I)
Assignment # 4.3.3 (West Bank)
SUBMITTED BY:
Al Jawhari Consulting Engineers
Eng. Abdelhakeem Al Jawhari
DECEMBER 2019
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TABLE OF CONTENTS
1. Background: ...................................................................................................................................... 6
2. MDP3 components: .......................................................................................................................... 6
3. Background on the assignment: ....................................................................................................... 8
4. Objective and scope of the assignment: ........................................................................................... 9
5. Findings: .......................................................................................................................................... 11
6. Methodology of Procurement Audit............................................................................................... 12
6.1 Identifying the list of Projects .................................................................................................... 12
6.2 Approach and Process ................................................................................................................ 13
6.2.1 Desk review and data collection .......................................................................................... 14
6.2.2 Further and preparation action ........................................................................................... 14
6.2.3 Field visits and key informant interviews (KIIs) ................................................................... 14
6.2.4 Key informant interviews KIIs with MDLF team .................................................................. 15
6.2.5 Key informant interviews KIIs with contractors and LTCs ................................................... 15
7. Summary Sheets: ............................................................................................................................ 16
7.1 Summary Sheet -1:
(Al Eizariyya Municipality Project: Purchasing Excavator) .................................................................. 17
7.2 Summary Sheet -2:
(Aqqaba Municipality Project: Construction of Multipurpose playground) ....................................... 20
7.3 Summary Sheet -3:
(Ash Shoyoukh Municipality Project: Rehabilitation of Internal Roads) ............................................ 23
7.4 Summary Sheet -4:
(Azzun Municipality Project: Rehabilitation of Internal Roads) ......................................................... 27
7.5 Summary Sheet -5:
(Beit Jala Municipality Project: Enlarging the Municipality Building and Establishing a Customer
Service Center) .................................................................................................................................... 30
7.6 Summary Sheet -6:
(Beit Sahur Municipality Project: Rehabilitation of Internal Roads)................................................... 33
7.7 Summary Sheet -7:
(Beit Ummar Municipality Project: Rehabilitation of Internal Roads) ................................................ 36
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7.8 Summary Sheet -8:
(Kafr Rai’e Municipality Project: Supply of Hydraulic Platform Utility Vehicle) ................................. 39
7.9 Summary Sheet -9:
(Silwad Municipality Project: Rehabilitation of Internal Roads) ......................................................... 42
7.10 Summary Sheet -10:
(Consulting services project (1):Municipal Ranking Update – End of MDP3 – Cycle1) ...................... 45
7.11 Summary Sheet -11:
(Consulting services project (2): Rollout of O&M Software - West Bank & Gaza (16Municipalities in
the WB & 8 in Gaza)) ........................................................................................................................... 46
8. Annexes: .......................................................................................................................................... 47
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LIST OF ABBREVIATIONS:
AFD Agence Francaise pour Development
BD Bidding Documents
BEC Bid Evaluation Committee
BG Bank Guarantee
BOC Bid Opening Committee
BoQ Bill of quantities
BOS Bid Opening Sheet
CQS Selection based on consultant Qualifications
EMP Environmental Management Plan
ESMP Environment and Social Management Plan
EOI Expression of Interest
EU European Union
FP Funding Partner
GIA Grant Implementation Agreement
GIZ German Technical Cooperation
IDA International Development Association
IFB Invitation for Bid
KfW Kreditanstalt für Wiederaufbau (German Bank for Development)
KIIs Key Informant Interviews
KPIs Key Performance Indicators
LCS Least-Cost Selection
LG Local Government
LGUs Local Government Units
LTCs Local technical consultants
MDLF Municipal development and lending fund
MDP Municipal Development Program
MoLG Ministry of Local Government
NCB National Competitive Bidding
NOA Notification of Award
NUCs Notice of Unsafe Condition
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O&M Operation and maintenance
PCU Palestinian Contractors’ Union
PE Procurement Entity
PEC Proposal Evaluation Committee
PLO The Palestine Liberation Organization
PNA Palestinian National Authority
POC Proposal Opening Committee
QBS Quality- Based Selection
QCBS Quality & Cost Based Selection
RFP Request for Proposal
RFQ Request for Quotation
SDC Swiss Agency for Development and Cooperation
SDIP Strategic Development and Investment plan
SSS Direct Selection-Single-Source Selection
TIN Tax identification No.
ToR Terms of Reference
VAT Value Added Tax
VNG International Cooperation Agency of the Association of Netherlands Municipalities
VO Variation Order
WB World Bank
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1. Background:
The Palestine Liberation Organization (PLO), for the benefit of the Palestinian National Authority
(PNA), has received an initial financing of 130 Million Euros from the World Bank (WB)-International
Development Association (IDA), Federal Republic of Germany through KfW, Denmark, SDC, VNG, GIZ
and AFD and EU towards the cost of the 3rd phase of the Municipal Development Program (MDP3).
The MDP 3 is aligned with the Palestinian Authority’s (PA) long-term strategy to consolidate and
strengthen service delivery in the Local Government (LG) sector towards financially sustainable Local
Government Units (LGUs), as specified in the Ministry of Local Government (MoLG)’s Sector Strategy
2017-2022.
MDP 3 is at the center of a series of interlocking interventions by the multi donors in collaboration
with the central government to strengthen the institutional development, accountability and
financial sustainability of local governance and service delivery in Palestine.
The MDP3 will consolidate and scale up past gains under MDP1 and MDP2 in municipal performance
and accountability enhancement and will start enabling the environment at the central level and
municipal partnerships with the private sector to improve the efficiency and sustainability of
municipal services.
2. MDP3 components:
Component 1: Municipal performance and Service Delivery. MDP 3 is the third municipal
development project to support and incentivize improvements in the development of municipal
management capacity. Previous MDPs financed municipal infrastructure and service delivery
through the provision of basic block and performance-based grants, and provided demand-driven
capacity development support for municipalities. This approach was very innovative at design
and has shown to be highly effective. MDP 3 builds on this overall approach while focusing more
on improving financial sustainability and accountability in municipal service provision. Like MDP
1 and MDP 2, municipal performance will be measured through Key Performance Indicators
(KPIs), yet these have been substantially revised to reflect a greater focus on the sustainability of
municipal services. Performance measurements will encompass three main areas for reform: i)
Financial Performance and Sustainability, ii) Institutional Performance, and iii) Transparency,
Accountability and Participation.
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Component 2: Capacity Development. This component of the project would continue to
strengthen municipal capacity in the project’s three performance areas: (i) financial sustainability,
ii) institutional performance and iii) transparency, accountability and participation. In addition,
specific attention will be paid to higher order needs of municipalities that will enable them to
improve their financial sustainability and credit worthiness, strengthening other core municipal
functions as well as strengthen their social accountability to their citizens and stakeholders.
Municipal capacity development activities will continue to be identified by municipalities and
MDLF to enable municipalities to achieve results and improve their performance. The
performance measuring system will be applied to identify relevant capacity building activities to
the municipality, which will be delivered to improve capacity and sustain results achieved.
Component 3: Municipal Partnership Projects. This component will provide technical assistance
and project financing to municipalities to: a) engage more effectively with the private sector, and
b) work across administrative boundaries to develop joint and/or innovative investments for
municipal service delivery and local economic development. The Bank will finance only the
technical assistance portion under Sub-component A.
- Sub-Component A: Private Sector Partnership Support.: In order to better leverage
private sector engagement, this component will support municipalities to identify,
develop, and structure opportunities for private sector participation in municipal service
delivery and local economic development on a demand-driven basis.
- Sub-Component B: This sub-component will finance top-up payments complementary to
the grant allocations under component 1 to incentivize municipal joint and/or innovative
investments based on municipal demands to leverage economies of scale for municipal
investments and facilitate financially sustainable municipal investments.
Component 4: Project Implementation Support and Management. This component will finance
goods and consultant services for monitoring and evaluation, outreach and communication and
local technical consultants for the engineering supervision of Component 1 and the MDLF
management fee.
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3. Background on the assignment:
This assignment is located in the context of measuring one on the key indicators of MDP3, namely,
“Percentage of investments financed under MDP3 in adequate technical state and used as
intended”
The (MDLF), as the delegated implementation agency, is using part of the (KFW) Fund under
component 4, particularly the M&E sub-component, to conduct the technical and procurement audit
of a sample of MDP3-Cycle 01 -component 1 sub-projects in the West Bank by hiring an individual
consultant:
The Technical Audit will assess a representative sample of infrastructure sub-projects
implemented in MDP3-cycle01 - focusing on the following areas:
- The technical quality and structural soundness, and the compliance of implemented sub-
projects with technical specifications.
- The compliance with safeguard measures in the Environmental Management Plan (EMP) for
MDP.
- The effectiveness of the implementation from institutional, social, technical, and operational
dimensions.
- The broad areas under the technical audit including: sub-project selection, technical
soundness, appraisal, appropriateness and sustainability construction management,
construction quality, physical status and functionality of the sub-projects; environmental
consideration, capacity building activities, O&M management; monitoring mechanism.
The procurement audit, will assess a representative sample of subprojects financed by the KFW
focusing on the following areas:
- The procurement quality and the compliance of implemented sub-projects with MDLF
procurement guidelines & procedures as stated in the MDLF procurement manual.
- The approaches and processes during the procurement & contacts Management.
- The effectiveness of the procurement process from institutional, planning, technical, and
operational dimensions.
- The broad areas under the procurement audit includes: procurement planning, procurement
Methods, tendering process, evaluation & awarding process and contracts Management
process.
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4. Objective and scope of the assignment:
The objective of the assignment is to review and assess the processes and the manner, in which the
sub-projects have been implemented, norms, specifications construction quality, physical and
financial status, functionality, usability, operation and maintenance of the subprojects. To meet the
objective of the assignment, the scope of work includes the following:
A) Technical Audit for a representative sample of sub-projects under MDP3-Cycle 01 – regardless
from which the sub-projects are financed:
- To assess the appropriateness of technical options (including the design, drawings, and
specification).
- To assess the quality and soundness of design and technical specifications and compliance with
Palestinian or international standards.
- To assess the quality control (technical soundness of construction) aspects and procedures
adopted throughout the implementation.
- To check whether the selected sub-projects were constructed as per design, drawings, and
specification and contract requirements
- To assess whether the physical progress is in line with the financial progress.
- To assess the effectiveness of the procurement process adopted by the municipality.
- To assess the operation and maintenance arrangements, monitoring and evaluation and the
sustainability of the implemented sub-projects.
- To assess the compliance with social and environmental safeguard measures according to the
Environmental Management Plan (ESMP) for MDP3. For instance, the technical audit shall assess
the impact on persons with disability, for example if the road projects have facilitated their
accessibility (in case it is already not considered).
- To Identify the problems/challenges faced by each stakeholder in fulfilling their roles in the
implementation of the sub-projects, particularly “Municipality, contractor, MDLF, LTCs,
Beneficiaries……etc”.
- As part of the sub-projects feasibility, the consultant has to assess the cost efficiency and the
value of money, by comparing the estimated and final benefits of the project (before vs after the
implementation).
- To assess the infrastructure sub-projects implemented by municipalities under MDP3 Cycle 01
in terms of (functionality, usability and utilization, intended outcomes, unintended results if
any).
- Based on the findings and observations made in the field, the consultant is requested to
recommend ways and lessons learnt for future improvements.
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B) Procurement audit for a representative sample of subprojects financed by the KFW under
MDP3-Cycle 01.
- To assess the compliance of implemented sub-projects with the MDLF’s procurement manual.
Incase compliance is neither satisfactory nor sufficient; the report should indicate appropriately
the reason/s for the non-compliance, and their impact on the procurement outcome.
- To assess the effectiveness of the procurement process adopted by the municipality in
accordance to MDLF procurement Manual.
- To assess the soundness of the tender evaluation reports.
- To assess the effectiveness of the contract management process adopted by the municipality.
- To assess whether selected sub-projects were implemented according to contract concerning
time, volume and design.
- To assess whether the materials procured using MDP3 Funds were properly recorded in the
accounts of municipalities and/or MDLF.
- To assess whether the Materials procured using the MDP3 Funds were properly delivered and
installed on site.
- To assess the maintenance/keeping of procurement records for each project by the MDLF and
municipalities.
- To Identify the problems/challenges faced by each stakeholder in fulfilling their roles in
procurement & Contract Management process of the sub-projects, particularly “Municipality,
contractor, MDLF, LTCs, Beneficiaries……etc”.
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5. Findings:
Finding 1:
Generally, all projects were implemented in compliance with MDLF procurement manual and tender documents. However, the auditor noticed a minor comment regarding the selection of procurement method for one project. (Review the minor comment by checking Summary sheet No. 8)
Finding 2:
The tender evaluation report was sound and efficient. However, the auditor noticed a minor comment regarding the post qualification requirements for a bidder in one project. (Review the minor comment by checking Summary sheet No.5).
Finding 3:
The contract management process adopted by all municipalities was satisfactory covering administrative, financial, managerial and technical tasks. However, the auditor noticed a minor comment regarding dealing with handover process in one project. (Review the minor comment by checking Summary sheet No.3).
Finding 4:
The maintenance and keeping process (Filing) for both the MDLF and the Municipalities was well organized covering the whole project life cycle.
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6. Methodology of Procurement Audit
The auditor adopted the following methodology:
6.1 Identifying the list of Projects
A representative sample of eleven sub-projects funded by KFW was selected for procurement audit.
The selected sub-projects covered several categories including works, goods and consultancy
services. The sample selection was based on the geographical areas, projects eligible sectors, projects
size, municipality’s size , project status and cover at least 15.8% of total allocation for MDPIIICI \W1 -
West Bank funded by KFW. The selection methodology is illustrated as follows:
The selection methodology of sub-projects sample:
Geographical distribution Sub-project categories Type of intervention
At least one project shall be selected from each Cluster in west bank.
The sub projects shall be selected to cover several categories.
New development project, rehabilitation project, others.
The 11 projects are distributed
over all clusters.
• Jenin and Tubas
• Nablus and Salfit
• Tulkarm and Qalqilia
• Ramallah &Albeireh
• Jerusalem and Jericho
• Hebron and Bethlehem
The selected sample represents the
following sub-project categories:
• 7 Works – (5 Roads and 2 public
facilities).
• 2 Goods (Supply projects)
• 2 Consulting services
• Majority – Rehabilitation
projects.
• Minor – New development
projects.
• Minor – Others.
Sub-project Status Procurement & Selection methods Allocation budget.
Completed and ongoing projects.
The selected sub- projects shall cover the different procurement & selection methods.
The selected sub-projects shall vary in allocation values from small to large size projects.
The selected sample covers both
completed and ongoing projects
where the majority of selected
projects are completed.
• 9 Completed projects
• 2 Ongoing projects
The selected sample covers the
following procurement and selection
methods:
Procurement methods:
• NCB
• RFQ-Shopping
Selection methods:
• CQS
• SSS
The selected sample covers
projects of different allocations as
follows:
• 2 projects < 50,000 Euros
• 1 project (50,000 – 100,000
Euro)
• 6 projects (100,000 Euro-
200,000).
• 2 projects > 200,000 Euro.
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As for the sectors, seven sub-projects were works (roads and public facilities), two were Goods, and
two were consultancy services as described in the table below.
Table.1: List of projects selected for procurement audit
No. Procuring
entity Title of the Selected sub-
project Governorate
Project Category
Proc. /Selection Method
Gross Allocation
Euro Status Type of audit
1. Al
Eizariyya Purchasing excavator Jerusalem Goods RFQ 75,908 Completed Procurement
2. Aqqaba Construction of
multipurpose play ground Tubas Works RFQ 107,295 Completed
Technical &
Procurement
3. Ash
Shoyukh
Rehabilitation of Internal
Roads Hebron Works NCB 142,662 Completed
Technical &
Procurement
4. Azzun Rehabilitation of Internal
Roads Qalqilia Works RFQ 147,650 Completed Procurement
5. Beit Jala
Enlarging the municipality
building and establishing
a customer service center
Bethlehem Works NCB 227,136 Ongoing Procurement
6. Beit Sahur Rehabilitation of Internal
Roads Bethlehem Works NCB 190,826 Completed
Technical &
Procurement
7. Beit
Ummar
Rehabilitation of Internal
Roads Hebron Works NCB 235,122 Completed Procurement
8. Kufor Ra'ie Supply of Hydraulic
Platform Utility Vehicle Jenin Goods NCB 78,000 Completed Procurement
9. Silwad Rehabilitation of Internal
Roads
Ramallah &
Albireh Works RFQ 112,192 Completed Procurement
10. MDLF Municipal Ranking update
– End of MDP3- Cycle 1 -
Consulting
services CQS 35,000 Completed Procurement
11. MDLF
Rollout of O&M software
– West Bank & Gaza (16
Municipalities in the WB
and 8in Gaza)
- Consulting
services SSS 139,200 Ongoing Procurement
Total Gross Allocation for selected sub-projects (Euro) 1,490,991
Grand Total Allocation for MDPIIICI \W1 - West Bank funded by KFW (Euro) 9,393,090
Percentage of sample projects allocation per MDPIIICI \W1 - West Bank projects funded by KFW 15.8%
6.2 Approach and Process
In order to accomplish the procurement audit for the selected projects, the auditor conducted the
following:
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6.2.1 Desk review and data collection
o For files and documents submitted by MDLF including MDP3, MDLF Operation Manual,
Appraisal and Approval of sub-projects for implementation, M&E, Progress and Completion
reports of the sub-projects, List of all sub projects within this phase, MDLF procurement
Manual and other supporting documents.
o As part of the data collection, the
consultant, conducted a thorough Desk
Review for all documents and files of the
municipalities and MDLF for the 9 projects
covering works and goods. Additionally,
the files of MDLF for the two consultancy
assignments were checked as well.
6.2.2 Further and preparation action
o The Auditor prepared groups of questions for the Key Informant Interviews (KIIs) which
included questions covering the procurement for the municipalities and MDLF for all
projects under procurement audit.
o The Auditor prepared procurement compliance sheets for the 9 projects which were as
much comprehensive as possible. Also separated compliance sheets were prepared for the
two consultancy assignments.
6.2.3 Field visits and key informant interviews (KIIs)
o The auditor conducted field visits to all 9
sites of the projects to make sure the
projects are there, fully functional and
constructed according to the scope.
o Documentation through photos covering all
9 projects.
o The project files of the municipalities were
checked paying more attention to the procurement related documents. Copies were taken
for certain documents in the files for documentation and evidence purposes.
o KIIs were conducted with all nine municipalities.
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6.2.4 Key informant interviews KIIs with MDLF team
o The auditor also conducted interviews with
the MDLF team who were following the
project implementation, namely the
procurement, engineering and finance.
o More clear idea was obtained about many
issues covering the procurement
guidelines, the technical administration of
the projects and the financial aspects
connected to how the projects were managed.
o The level of coordination, key issues and the level of success and lessons learned for future
projects.
6.2.5 Key informant interviews KIIs with contractors and LTCs
o In coordination with MDLF team, a
selection of a couple of contractors and
LTCs to be interviewed was done. The KIIs
were conducted at MDLF offices. More
clear ideas were obtained about many
issues covering the challenges faced, and
the relations between different
stakeholders.
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7. Summary Sheets:
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7.1 Summary Sheet -1:
(Al Eizariyya Municipality Project: Purchasing Excavator)
1. PROJECT OVERVIEW:
Project Name: Purchasing Excavator
Project Number: MDPIIIC1-0123003-02 Project status: Completed
Procurement for: Goods Procurement Method:
Shopping
Estimate value:
70,000 Euro
Original contract value:
75,908 Euro
Project final value:
69,835.36 Euro
Project original duration: 120 -150 days Delay: 28 days
Contractor: Palestinian Tractor and Equipment Co.
LTC: Arabtech Jardaneh.
2. RESULTS AND FINDINGS SUMMARY:
I. Compliance with procurement guidelines
II. Procurement efficiency
III. Soundness of tender evaluation report
The implementation project was in compliance with the MDLF’s procurement manual and the tender documents except the minor comment on: The bid validity: The time specified and requested was only 45 days. As per procurement guidelines, the bid validity should be from 60 to 120 days. However, then the municipality requested to extend the bid validity period to become 90 days before the bid validity expiration date.
The effectiveness of the procurement process adopted by the municipality was in accordance to MDLF procurement Manual.
The tender evaluation report was sound, followed the MDLF requirements and the lowest evaluated responsive bidder was awarded.
IV. Contract management V. Implementation of project according to contract
VI. Maintenance and keeping of procurement records
The contract management process adopted by the municipality was effective in line with the agreed conditions covering delivery, payments, quality control, and completion and liquidated damages.
The selected project was implemented following the tender documents, but there was a delay which was dealt Properly by the municipality.
The maintenance/keeping of procurement records were well organized by both MDLF and Municipality.
Challenges faced by stakeholders:
Challenges mainly connected to put the specifications for the excavator and the time. Both were overcome
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3. PROCUREMENT PROCESS OVERVIEW:
Bidding
Question Answer Comments
Number of RFQs Sent Out 4
Number of Quotations Received 3
Was there an advert in addition to the short list? (y/n)
Yes - Procurement Notice was advertised in Al Quds
newspaper on 15-July-2018 and 16-July-2018
Number of Amendments to the Request for Quotation
0
Date of Invitation for Quotations 15-July-18
Quotation submission deadline (date and time)
29-July-18 12:00 pm
Quotation prices: - EUR 72,900, Tower Mechanical Equipment Co. IVECO - EUR 75,908, Palestinian Tractor and Equipment
Company. - EUR 79,800, As Salam investment Group.
Number of Quotation Submission Deadline Extensions
0
Quotation Submission Deadline Extensions (in days)
0
Bid Validity Period (in days) 45
Number of Bid Validity Period Extensions
1 The municipality sent a request for bid validity extension to the contractor on 9-Sep-2018 before the bid validity expiration date.
Bid Validity Extension Period (in days) 45 The bid validity period was 90 days after the extension of 45 days.
Bid Evaluation and Award
Question Answer Comments
Quotation opening Date 29-July-18 Dated on 29-July-18 and signed by the BOC.
Tender Evaluation Report on file (y/n) yes Signed by the BEC.
Est. Contract Amount from EUR 70,000 Awarded Contract varied from Estimate by +4.1%
Lowest Evaluated Quotation Amount
EUR 72,900
Second Lowest Evaluated Quotation Amount
EUR 75,908
Awarded Contract Amount EUR 72,900 EUR 72,900 from MDPIII project through MDLF.
Performance Security on file (y/n) Yes
- Performance Security with value of EUR 7,195 issued by Cairo Amman Bank on 25-Sep-18 and valid till 24-Mar-19.
- Performance security was extended to be valid till 24-May-2019.
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Contract
Question Answer Comments
Contract Date 4-Oct-18
Actual Contract/Purchase Order Start Date
7-Oct-18
Completion Period/Delivery Period as per Awarded Contract (in days)
120-150 Days
Completion Period/Delivery period Extension or Delay (y/n)
Yes -The excavator was supplied on 4/4/2019 with unjustified delay of 28 days.
Initial handover date (Comp. in Contract 7-Mar-19)
07-May-19
Advance Payment Amount EUR 0
Percentage of Works Completed/Goods delivered
100%
Payment requests on file Yes
Contract Amount Paid as of Date of PPR
EUR 69,835.36 MDLF Share (EUR 69,835.36): EUR 69,835.36: 1st and final payment.
(Optional) Liquidated Damages Deducted from Payments (y/n)
Yes Liquidated damages were applied for delay of 28 days and the deduction amount from payments was 6072.64 EUR.
Contract Terminated (y/n) No
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7.2 Summary Sheet -2:
(Aqqaba Municipality Project: Construction of Multipurpose playground)
1. PROJECT OVERVIEW:
Project Name: Construction of Multipurpose playground
Project Number: MDPIIIC1-0324026-01 Project status: Completed
Procurement for: Works Procurement Method: Shopping
Estimate value:
136,312 Euro
Original contract value:
107,295 Euro
Project final value:
103,015.8 Euro
Project original duration: 120 days Extension / Delay: 88 days
Contractor: Bustami & Jom’a
LTC: Universal Group for Engineering and Consulting
2. RESULTS AND FINDINGS SUMMARY:
I. Compliance with procurement guidelines
II. Procurement efficiency
III. Soundness of tender evaluation report
The implementation of the project was in compliance with the MDLF’s procurement manual and the tender documents for the whole project life cycle.
The effectiveness of the procurement process adopted by the municipality was in accordance to MDLF procurement Manual.
The tender evaluation report was sound and followed the MDLF Requirements.
IV. Contract management V. Implementation of project according to contract
VI. Maintenance and keeping of procurement records
The contract management process adopted by the municipality was effective in line with the agreed conditions covering delivery, payments, completion and liquidated damages.
Generally, the selected project was implemented following the design and specification, but there was a big delay that the municipality should dealt with better.
The maintenance/keeping of procurement records were well organized by both MDLF and Municipality.
Challenges and problems faced by stakeholders.
The problems and challenges were mainly connected to dealing with the delays and performance of the contractor by municipality. Also the contractor was not able to deliver on times.
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3. PROCUREMENT PROCESS OVERVIEW:
Bidding
Question Answer Comments
Number of RFQs Sent Out 13
Number of Quotations Received 9
Was there an advert in addition to the short list? (y/n)
Yes - Procurement Notice was advertised in Al Quds
newspaper on 27-Nov-2018 and 28-Nov-2018.
Number of Amendments to the Request for Quotation
0
Date of Invitation for Quotations 1-Dec-18
Quotation submission deadline (date and time)
10-Dec-18 11:00am
Quotation prices: - EUR 107,295 , Bustami & Jom’aa Company for
Contracting. - EUR 119,771 , Quality & Control for contracting. - EUR 129,104 , Ala’a Al Dein office for Contracting. - EUR 133,190 , RCC for General Contracting Co. - EUR 136,915 , Berlis Contracting Co. - EUR 137,790 , Al Tamayoz Contracting Company. - EUR 146,360 , Al Khair Company for Contracting. - EUR 148,520 , Al Beit Al Ateeq for contracting
&general contracts. - EUR 149,466 , Perfect Company for Contracting.
Number of Quotation Submission Deadline Extensions
0
Quotation Submission Deadline Extensions (in days)
0
Bid Validity Period (in days) 120 120 days from quotation opening date.
Number of Bid Validity Period Extensions
0
Bid Validity Extension Period 0
Bid Evaluation and Award
Question Answer Comments
Quotation opening Date 10-Dec-18 Dated on 10-Dec-18 and signed by the BOC.
Tender Evaluation Report on file (y/n) yes Signed by the BEC.
Estimate Contract Amount EUR 136,312
Awarded Contract varied from Estimate by -21% and the BOC noticed unbalanced prices in couple of items and increased the value of performance security to become 15% of the contract value as per bidding documents.
Lowest Evaluated Quotation Amount
EUR 107,295
Second Lowest Evaluated Quotation Amount
EUR 119,11
Awarded Contract Amount EUR 107,295 EUR 107,295 from MDPIII project through MDLF.
Performance Security on file (y/n) Yes
- Performance Security with value of EUR 16,100 issued by Bank of Palestine on 4-Feb-19 and valid from 10-Feb-2019 till 9-Aug-19.
- The Performance security was extended till 9-Nov-2019.
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Contract
Question Answer Comments
Contract / Purchase Order Start Date as per Awarded Contract
10-Feb-19
Actual Contract/Purchase Order Start Date
17-Feb-19
Completion Period/Delivery Period as per Awarded Contract (in days)
120 Days
Completion Period/Delivery period Extension or Delay (y/n)
Yes There was a long delay of 88 days, and the liquidated damages were applied for 12 days.
Completion date (Comp. in Contract 16-June-19)
12-Sep-19
Initial handover date 09-Oct-19
Advance Payment Amount EUR 0
Percentage of Works Completed/Goods delivered
100%
Payment Requests on file (y/n) Yes
Contract Amount Paid EUR 103,015.8
MDLF Share (EUR 103,015.8): EUR 32,917.95: 1st payment (MDLF) EUR 16,759.8: 2nd payment (MDLF) EUR 24,124.5: 3rd payment (MDLF) EUR 29,213.55: 4th and final payment (MDLF)
(Optional) Liquidated Damages Deducted from Payments (y/n)
Yes Liquidated damages were applied for unjustified delays of 12 days.
Contract Terminated (y/n) No
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Procurement Audit Report Page 23 of 47
7.3 Summary Sheet -3:
(Ash Shoyoukh Municipality Project: Rehabilitation of Internal Roads)
1. PROJECT OVERVIEW:
Project Name: Rehabilitation of Internal Roads
Project Number: MDPIIIC1-1124106-01 Project status: Completed
Procurement for: Works Procurement Method: NCB
Estimate value:
213,400 Euro.
Original contract value:
246,600 Euro.
Project final value:
246,600 Euro
Project original duration: 120 days Extension / Delay: 55 days
Contractor: A’mal Development and Reconstruction Company
LTC: Arab Engineers
2. RESULTS AND FINDINGS SUMMARY:
I. Compliance with procurement guidelines
II. Procurement efficiency
III. Soundness of tender evaluation report
The implementation of the project was in compliance with the MDLF’s procurement manual and the tender documents for the whole project life cycle.
The effectiveness of the procurement process adopted by the municipality was in accordance to MDLF procurement Manual
The tender evaluation report was sound, followed the MDLF Requirements and the lowest evaluated responsive bidder was awarded.
IV. Contract management V. Implementation of project according to contract
VI. Maintenance and keeping of procurement records
The contract management process adopted by the municipality was effective except minor comment about dealing with delay and contractor performance.
The selected project was implemented following the design and specification, but there was a long delay.
The maintenance/keeping of procurement records were well organized by both MDLF and Municipality but giving privilege to MDLF files.
Challenges and problems faced by stakeholders:
Problems and challenges connected mainly to dealing with the delays and performance of the contractor by the municipality. As for the contractor, he was not able to start the work when he was handed over the site due to work in infrastructure within the site and bad weather conditions.
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Procurement Audit Report Page 24 of 47
3. PROCUREMENT PROCESS OVERVIEW:
Bidding
Question Answer Comments
Was the bid advertised in accordance with the loan agreement?
Yes - The bid was advertised in Al Quds and Al
Ayyam newspapers on 4-OCt-2018.
Was prequalification used? No
Was single stage-one envelope used or single stage-two envelopes?
Single Stage One envelope
Number of Bidding Documents Sold 3
Number of Bids Received 2
Bid prices: - EUR 246,600, A’amal Development &
Reconstructing Company. - EUR 251,340, Samrqand Organization for
Contracting.
Date of Invitation for Bids 4-Oct-18
Bid submission deadline (date and time) 4-Nov-18 @12:00 pm
Number of Bid Submission Deadline Extensions
0
Bid Submission Deadline Extensions (days) 0
Bid Validity Period (in days) 90 Days 90 days from bid opening date
Number of Bid Validity Period Extensions
0
Bid Validity Extension Period (in days) 0
Evaluation and Award
Question Answer Comments
Record of Public Bid Opening on file and initialed (y/n)
Yes Dated on 4-Nov-18 and signed by the bid opening committee (BOC).
Bid opening Date 24-Nov-18 @12:00 pm
Bid Evaluation Report on file (y/n) Yes Signed by the bid evaluation Committee (BEC)
Bid Security / Bid Declaration on file (y/n) Yes The participated bidders submitted bid securities for amount of Euro 5,000.
The Notification of Intension to Award (NOA) to all Bidders. (y/n)
Yes
The procuring entity notified all the bidders participated that the bid will be awarded to A’amal Development & Reconstruction Co. for offering the lowest evaluated responsive bid.
Number of complaints received during the standstill period.
0
MDLF was informed through a letter from Ash Shoyoukh Municipality dated on 13-Dec-2018 that no complaints have been received during the 10 business days standstill period.
Contract Signing Date 5-Jan-19 MDLF’s no objection on the awarding decision dated on 13-Dec-2018.
Cost Estimate Amount EUR 213,400 Awarded Contract varied from Estimate by +13.4%.
Lowest Evaluated Bid Amount EUR 246,600
Second Lowest Evaluated Bid Amount
EUR 251,340
Awarded Contract Amount EUR 246,600 The Project Share (MDPIII): EUR 142,662 LGU Share: EUR 103,938
Were all other required RFB Conditions respected?
Yes
Performance Security on file (y/n) Yes - Performance security for a value of EUR
24,660 dated on 31-Dec-2018, issued by
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Procurement Audit Report Page 25 of 47
Bank of Palestine, and valid from 1-Jan-2019 till 30-June-2019.
- Performance security was extended on 19-June-2019 to be valid till 31-Oct-2019.
Contract
Question Answer Comments
Contract Date 5-Jan-19
Actual Contract Start Date 26-Jan-19 The municipality sent Notice to Proceed for the contractor on 23-Jan-19 informing him that he should start works on 26-Jan-19.
Completion Period/ Delivery Period as per Awarded Contract (in days)
120 days
Completion Period/Delivery period Extension or Delay (y/n)
Yes The completion period was extended for 55 days.
Number of Completion Period/Delivery Period Extensions
1
The contractor submitted a time extension request for 60 days through a letter dated on 24-Apr-19. However, the municipality rejected the request for extension on 2-May-2019. Then, the contractor submitted another time extension request through a letter dated on 20-May-2019 to extend the project till 20-July-2019. The reasons behind the extension were the delay occurred due to the municipality works in site, bad weather conditions and Ramadan days. The municipality approved to extend the project on 2-July-2019 till 20-July-2019. Comment: There was contradiction from municipality concerning dealing with delays and penalties. First refuses to give extension given the delays are not justified and the contractor is responsible. Eventually all delays were justified and the contractor was not penalized.
Duration of Completion Period / Delivery Period Extensions (in days)
55
Completion Date (Comp. in Contract: 26-May-19)
20-July-19
Comment: The contractor submitted a request for inspection and handover on 20/7/2019, the municipality visited the site on 6/8/2019 and reported the percentage of completion is 95%. Then, the inspection took place on 4/9/2019. However, the project was considered completed on 20/7/2019.
Initial handover Date 4-Sep-19
Initial handover committee included: - Mayor - 2 MDLF representatives - 2 Municipality Engineers - 2 LTC Engineers.
Advance Payment Amount EUR 0
Bank Guarantee secured against Advance Payment (if applicable)?
NA
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Procurement Audit Report Page 26 of 47
Percentage of Works Completed / Goods Delivered to Date
100%
Payment requests on file (y/n) Yes
Contract Amount Paid EUR 246,600
MDLF Share :EUR 142,662 LGU Share : EUR 103,938 EUR 40,000: 1st payment (LGU) EUR 58,576.5: 2nd payment (MDLF) EUR 30,000: 3rd payment (LGU) EUR 33,938: 4th payment (LGU) EUR 84,085.5: 5th and final payment.(MDLF)
Liquidated Damages Deducted from Payments (y/n)
No
Defects Liability Period Completion Date 4-Sep-20 The contractor provided a maintenance security valid from 5-Sep-19 until 4-Sep-20.
Contract Terminated (y/n) No
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Procurement Audit Report Page 27 of 47
7.4 Summary Sheet -4:
(Azzun Municipality Project: Rehabilitation of Internal Roads)
1. PROJECT OVERVIEW:
Project Name: Rehabilitation Of Internal Roads
Project Number: MDPIIIC1-0623048 Project status: Completed
Procurement for: Works Procurement Method: Shopping
Estimate value:
156,680 Euro
Original contract value:
170,935.8 Euro
Project final value:
170,932.53Euro
Project original duration: 90 days Extension / Delay: 64 days
Contractor: Brothers Contracting Company
LTC: Universal Group for Engineering and Consulting
2. RESULTS AND FINDINGS SUMMARY:
I. Compliance with procurement guidelines
II. Procurement efficiency
III. Soundness of tender evaluation report
The implementation of the project was in compliance with the MDLF’s procurement manual and the tender documents for the whole project life cycle.
The effectiveness of the procurement process adopted by the municipality was in accordance to MDLF procurement Manual
The tender evaluation report was sound and followed the MDLF Requirements and the lowest evaluated responsive bidder was awarded.
IV. Contract management V. Implementation of project according to contract
VI. Maintenance and keeping of procurement records
The contract management process adopted by the municipality was effective in line with the agreed conditions covering delivery, payments, quality control and completion.
The project was implemented according to design and scope except for not being able to construct the culvert due to changes in the site.
The maintenance/keeping of procurement records were well organized by both MDLF and Municipality.
Challenges and problems faced by stakeholders:
Challenges and problems mainly connected to municipality who was not able to construct the culvert for storm water drainage and to replace by other solution later from own resources in addition to the delays.
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Procurement Audit Report Page 28 of 47
3. PROCUREMENT PROCESS OVERVIEW:
Bidding
Question Answer Comments
Number of RFQs Sent Out 8
Number of Quotations Received 7
Was there an advert in addition to the short list ? (Y/n)
Yes Procurement Notice advertised in Al Ayyam newspaper on 9-Oct-2018 and 10-Oct-2018..
Number of Amendments to the Request for Quotation
0
Date of Invitation for Quotations 9-Oct-18
Quotation submission deadline (date and time)
23-Oct-18 12:00 pm
Quotations prices after deductions: - EUR 170,935.825 , Brothers contracting company - EUR 174,000 , Al Bara’ company for contracting. - EUR 175,980 , Al Murad contracting company. - EUR 188,120 , Ala’a Al Dein Cont. - EUR 194,853.36 , Al Eswed Company - EUR 212,030 , AL-Saleh Company for Building &
Constructions - EUR 249,758 , Sava contracting company
Number of Quotation Submission Deadline Extensions
0
Quotation Submission Deadline Extensions (in days)
0
Bid Validity Period (in days) 60 60 days from bid opening date.
Number of Bid Validity Period Extensions 0
Bid Validity Extension Period ( days) 0
Bid Evaluation and Award
Question Answer Comments
Quotation opening Date 23-Oct-18 Dated on 23-Oct-18 and signed by the BOC.
Tender Evaluation Report on file (y/n) yes Signed by the BEC.
Cost Estimate Amount EUR 156,680 Awarded Contract varied from Estimate by + 8.4% .
Lowest Evaluated Quotation Amount
EUR 170,935.825 EUR 147,650 from MDPIII project through MDLF. EUR 23,285.82 from LGU.
Second Lowest Evaluated Quotation Amount
EUR 188,120
Awarded Contract Amount EUR 170,935.825
Performance Security on file (y/n) Yes Performance Security with value of EUR 17,500 issued by Al Quds Bank on 11-Nov-18 and valid till 12-May-19.
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Procurement Audit Report Page 29 of 47
Contract
Question Answer Comments
Contract Date 12-Nov-18
Actual Contract/Purchase Order Start Date
25-Nov-18 Notice to proceed sent by the municipality to contractor to inform him that he should start works on 25-Nov-2018.
Completion Period/Delivery Period as per Awarded Contract (in days)
90 Days
Completion Period/Delivery period Extension or Delay (y/n)
Yes There was justified delay for 64 days.
Completion date (Comp. in Contract 23-Feb-19)
28-Apr-19
Initial handover date 15-May-19
Advance Payment Amount EUR 0
Percentage of Works Completed/Goods delivered
100%
Payment Requests on file (y/n) Yes
Contract Amount Paid EUR 170,932.53 MDLF Share (EUR 147,650) LGU Share (EUR 23,282.53)
Liquidated Damages Deducted from Payments (y/n)
No
Contract Terminated (y/n) No
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Procurement Audit Report Page 30 of 47
7.5 Summary Sheet -5:
(Beit Jala Municipality Project: Enlarging the Municipality Building and Establishing a Customer Service Center)
1. PROJECT OVERVIEW:
Project Name: Enlarging the Municipality Building and Establishing a Customer Service Center
Project Number: MDPIIIC1-1022083-01 Project status: Ongoing
Procurement for: Works Procurement Method: NCB
Estimate value:
473,955 Euro.
Original contract value:
451,681 Euro.
Project final value:
N/A (Project is still ongoing)
Project original duration: 300 days Extension / Delay: about 50 days
Contractor: Riyad Abu Sada Office for Contracting
LTC: Arab Engineers
2. RESULTS AND FINDINGS SUMMARY:
I. Compliance with procurement guidelines
II. Procurement efficiency
III. Soundness of tender evaluation report
The implementation of the project was in compliance with the MDLF’s procurement manual and the tender documents for the whole project life cycle.
The effectiveness of the procurement process adopted by the municipality was in accordance to MDLF procurement Manual.
The tender evaluation report was sound and followed the MDLF requirements, the lowest evaluated responsive bidder was awarded.
Comment: However the BEC disqualify a bidder because he didn’t submit a classification certificate event it was not required. However that had no major effect on awarding contract because he was not the lowest bidder. More attention should be paid through evaluation process.
IV. Contract management V. Implementation of project according to contract
VI. Maintenance and keeping of procurement records
The contract management process adopted by the municipality was effective in line with the agreed conditions covering delivery, payments, quality control.
The selected project was implemented following the design and specification, but there is a delay (ongoing project).
The maintenance/keeping of procurement records were well organized by both MDLF and Municipality.
Challenges and problems faced by stakeholders:
Problems and challenges are mainly connected to very low response from the contractor in relation with the environmental and safety issues. There is a delay by the contractor which may affect the municipality plans in operation the building extension.
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Procurement Audit Report Page 31 of 47
3. PROCUREMENT PROCESS OVERVIEW
Bidding
Question Answer Comments
Was the bid advertised in accordance with the loan agreement?
Yes - The bid was advertised in Al Quds and Al Ayyam
newspapers on 13-Oct-2018.
Was prequalification used? No
Was single stage-one envelope used or single stage-two envelopes?
Single Stage One
envelope
Number of Bidding Documents Sold 9
Number of Bids Received 8
Evaluated Bid prices: - EUR 451,681, Riyad Abu Sa’da Office for
General Contracting. - EUR 463,00,JV of Brothers Engineers for
Contracting and George Khoury. - EUR 490,851, Abu Al-Teen for General
Contracting. - EUR 105,965, Construction &
Electromechanical Engineering Bureau Co. - EUR 505,040 , Ancient Pharaohs Company. - EUR 582,350, Al-Yamak Undertaking Trading
and Investment Co. - EUR 624,533.5, United Contractors Company. - EUR 632,959, A’amal Development and
Reconstruction Company.
Date of Invitation for Bids 13-Oct-18
Bid submission deadline (date and time) 13-Nov-18 @12:00 pm
Number of Bid Submission Deadline Extensions
0
Bid Submission Deadline Extensions (days) 0
Bid Validity Period (in days) 90 Days 90 days from bid opening date.
Number of Bid Validity Period Extensions
0
Bid Validity Extension Period (in days) 0
Evaluation and Award
Question Answer Comments
Record of Public Bid Opening on file and initialed (y/n)
Yes Dated on 13-Nov-2018 and signed by the bid opening committee (BOC).
Bid opening Date 13-Nov-18 @12:00 pm
Bid Evaluation Report on file (y/n) Yes Signed by the bid evaluation Committee (BEC)
Bid Security / Bid Declaration on file (y/n) Yes The participated bidders submitted bid securities for amount of Euro 10,000.
The Notification of Intension to Award (NOA) Transmission Date
17-Jan-19
The procuring entity notified all the bidders participated that the bid will be awarded to Riyad Abu Sa’da Office for General Contracting for offering the lowest evaluated responsive bid.
The Notification of Intension to Award transmitted to all Bidders. (y/n)
Yes
Number of complaints received during the standstill period.
0
Contract Signing Date 25-Feb-19 MDLF’s no objection on the awarding decision was received on 6-Feb-2019.
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Procurement Audit Report Page 32 of 47
Cost Estimate Amount EUR 473,955 Awarded Contract varied from Estimate by -4.9%.
Lowest Evaluated Bid Amount EUR 451,681
Second Lowest Evaluated Bid Amount
EUR 490,851
Awarded Contract Amount EUR 451,681 The Project Share (MDPIII): EUR 227,136. LGU Share: EUR 224,545.
Were all other required RFB Conditions respected?
Yes
Performance Security on file (y/n) Yes
- Performance security for a value of EUR 45,200 dated on 19-Feb-2019, issued by Bank of Palestine, and valid from 20-Feb-2019 till 19-Feb-2020.
Contract
Question Answer Comments
Contract Date 25-Feb-19
Actual Contract Start Date 4-Mar-19 The municipality sent Notice to Proceed for the contractor on 26-Feb-19 informing him that he should start works on 4-Mar-19.
Completion Period/ Delivery Period as per Awarded Contract (in days)
300 days
Number of Completion Period/Delivery Period Extensions
0 On the (date of visit: 23-Oct-2019)
Duration of Completion Period / Delivery Period Extensions (in days)
0
Completion Date (Comp. in Contract: 29-Dec-19)
NA Ongoing project.
Initial handover Date NA Ongoing project.
Actual Substantial Completion Date NA Ongoing project.
Advance Payment Amount EUR 0
Bank Guarantee secured against Advance Payment (if applicable)?
NA
Percentage of Works Completed / Goods Delivered to Date
40% On the date of visit (23-Oct-2019) the percentage of completion was 40%.
Payment Requests on file (y/n) Yes
Contract Amount Paid EUR NA Payments until the date of visit: EUR 57,882.68:1st payment (MDLF) EUR 44,942.85: 2nd payment (MDLF).
Liquidated Damages Deducted from Payments (y/n)
No
Defects Liability Period Completion Date NA Ongoing project.
Contract Terminated (y/n) No
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Procurement Audit Report Page 33 of 47
7.6 Summary Sheet -6:
(Beit Sahur Municipality Project: Rehabilitation of Internal Roads)
1. PROJECT OVERVIEW:
Project Name: Rehabilitation of Internal Roads
Project Number: MDPIIIC1-1023085-01 Project status: Completed
Procurement for: Works Procurement Method: NCB
Estimate value:
190,817.7 Euro
Original contract value:
163,599 Euro.
Project final value:
200,115.52 Euro
Project original duration: 120 days Extension / Delay: 126 days
Contractor: A’mal Development and Reconstruction Company
LTC: Arab Engineers
2. RESULTS AND FINDINGS SUMMARY:
I. Compliance with procurement guidelines
II. Procurement efficiency
III. Soundness of tender evaluation report
The implementation of the project was in compliance with the MDLF’s procurement manual and the tender documents for the whole project life cycle.
The effectiveness of the procurement process adopted by the municipality was in accordance to MDLF procurement Manual
The tender evaluation report was sound and followed the MDLF requirements, the lowest evaluated responsive bidder was awarded.
IV. Contract management V. Implementation of project according to contract
VI. Maintenance and keeping of procurement records
The contract management process adopted by the municipality was effective according the agreed conditions covering delivery, payments, quality control, and completion except for dealing with the infrastructure documentation and timely action especially connected to the electricity cables, water connections and no coordination with the relevant authorities.
The scope is increased with a change in the design of the existing infrastructure but following the procedure adopted for VOs within the procurement guidelines including approval from MDLF.
There were long delays in the project which exceeded the original time given to the project.
The maintenance/keeping of procurement records were well organized by both MDLF and Municipality.
Challenges and problems faced by stakeholders:
Problems and challenges, they were mainly connected to very long delays and the action connected to infrastructure and bad weather conditions.
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Procurement Audit Report Page 34 of 47
3. PROCUREMENT PROCESS OVERVIEW
Bidding
Question Answer Comments
Was the bid advertised in accordance with the loan agreement?
Yes
- The bid was advertised in Al Quds and Al Hayat newspapers on 7-June-2018.
- No objection from the MDLF received on 6-June-2018.
Was prequalification used? No
Was single stage-one envelope used or single stage-two envelopes?
Single Stage One envelope
Number of Bidding Documents Sold 5
Number of Bids Received 3
Evaluated Bid prices: - EUR 169,169, A’amal Development and
Reconstruction company - EUR 188,449.5, Al Diese General Contracting
Co. - EUR 209,780 , Ahmad Ibraheem Salem Jubran
For Contracting
Date of Invitation for Bids 7-June-18
Bid submission deadline (date and time) 4-July-18 @11:00 am
Number of Bid Submission Deadline Extensions
0
Bid Submission Deadline Extensions (days)
0
Bid Validity Period (in days) 120 Days 120 Days from bid opening date.
Number of Bid Validity Period Extensions
0
Bid Validity Extension Period (in days) 0
Evaluation and Award
Question Answer Comments
Record of Public Bid Opening on file and initialed (y/n)
Yes Dated on 4-July-18 and signed by the bid opening committee (BOC).
Bid opening Date 4-July-18 @11:00 am
Bid Evaluation Report on file (y/n) Yes Signed by the bid evaluation Committee (BEC)
Bid Security / Bid Declaration on file (y/n) Yes The participated bidders submitted bid securities for amount of Euro 6,000.
The Notification of Intension to Award (NOA) transmitted to Bidders. (y/n)
Yes
The procuring entity notified all participated bidders that the bid will be awarded to A’amal Development & Reconstruction Co. for offering the lowest evaluated responsive bid.
Number of complaints received during the standstill period.
0
Contract Signing Date 9-Aug-18
-MDLF’s no objection on the awarding decision dated on 6-Aug-2018. -Contract award was completed before the bid validity expiration date (5-Oct-2018).
Cost Estimate Amount EUR 190,817.7 Awarded Contract varied from Estimate by -16.6%.
Lowest Evaluated Bid Amount EUR 169,169 Second Lowest Evaluated Bid Amount
EUR 188,499.5
Awarded Contract Amount EUR 163,599 The Project Share (MDPIII): EUR 163,599
Contract Amount with Variation Order
EUR 190,819 The Project Share (MDPIII): EUR 190,819
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Procurement Audit Report Page 35 of 47
Were all other required RFB Conditions respected?
Yes
Performance Security on file (y/n) Yes
- Performance security for a value of EUR 16,916.9 dated on 8-Aug-2019, issued by Bank of Palestine, and valid till 8-Feb-2019.
- Performance security was extended on 6-Jan-2019 to be valid till 8-May-2019 and the value was increased to become EUR 19,200 due to increase in the contract value.
Contract
Question Answer Comments
Contract Date 9-Aug-18
Actual Contract Start Date 15-Aug-18
Completion Period/ Delivery Period as per Awarded Contract (in days)
120 days
Completion Period/Delivery period Extension or Delay (y/n)
Yes
Project duration was extended for 45 days as per variation order #1 because new additional activities were added to the project (Rehabilitation of two internal roads around the project area extending directly from minor Isteeh Road) Moreover, there was justified delay for 81 days due to municipality works in site and bad weather conditions.
Completion Date (Comp. in Contract: 14-Dec-18)
16-Apr-2019 The completion date was extended to become 28-Jan-2019 due to variation order.
Initial handover Date 2-May-19 The initial hand over was conducted on 2-May-19 with attendance of Municipality, MDLF, LTC and contractor representatives.
Advance Payment Amount EUR 0
Bank Guarantee secured against Advance Payment (if applicable)?
NA
Percentage of Works Completed / Goods Delivered to Date
100%
Payment requests on file (y/n) Yes
Contract Amount Paid EUR 200,115.52
MDLF Share : EUR 190,818.96 LGU Share: EUR 9,296.56 EUR 32,904:1st payment. (MDLF) EUR 52140.38 : 2nd payment. (MDLF) EUR 42,911.78 : 3rd payment. (MDLF) EUR 62,862.8 : 4th payment. (MDLF) EUR 9,296.56 : 5th and final payment. (LGU) This payment was for additional works.
Liquidated Damages Deducted from Payments (y/n)
NO
Defects Liability Period Completion Date 7-May-20 The contractor provided a maintenance security issued by Bank of Palestine with a value of EUR 9,550 valid from 8-May-19 until 7-May-20.
Contract Terminated (y/n) No
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Procurement Audit Report Page 36 of 47
7.7 Summary Sheet -7:
(Beit Ummar Municipality Project: Rehabilitation of Internal Roads)
1. PROJECT OVERVIEW:
Project Name: Rehabilitation of Internal Roads
Project Number: MDPIIIC1-1123103-01 Project status: Completed
Procurement for: Works Procurement Method: NCB
Estimate value:
282,655 Euro
Original contract value:
260.695.5 Euro
Project final value:
260.695.5 Euro
Project original duration: 120 days Extension / Delay: 14 days
Contractor: Arab Engineers
LTC: Al Hizam al Zahabi for Contracting Company
2. RESULTS AND FINDINGS SUMMARY:
I. Compliance with procurement guidelines
II. Procurement efficiency
III. Soundness of tender evaluation report
The implementation of the project was in compliance with the MDLF’s procurement manual and the tender documents for the whole project life cycle.
The effectiveness of the procurement process adopted by the municipality was in accordance to MDLF procurement Manual
The tender evaluation report was sound, followed the MDLF Requirements and the lowest evaluated responsive bidder was awarded (the actual with the lowest price who meets all the post qualification required), given that the lowest contractor was disqualified because he did not submit all required for post qualification.
IV. Contract management V. Implementation of project according to contract
VI. Maintenance and keeping of procurement records
The contract management process adopted by the municipality was effective in line with the agreed conditions covering delivery, payments, quality control, and completion.
The Project was implemented following contract:
Time Volume Design.
The maintenance/keeping of procurement records were well organized by both MDLF and Municipality.
Challenges and problems faced by stakeholders:
No major challenges.
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Procurement Audit Report Page 37 of 47
3. PROCUREMENT PROCESS OVERVIEW
Bidding
Question Answer Comments
Was the bid advertised in accordance with the loan agreement?
Yes
- The bid was advertised in Al Hayat and Al Ayyam newspapers on 5-Sep-2018.
- No objection from the MDLF received on 4-Sep-2018.
Was prequalification used? No
Was single stage-one envelope used or single stage-two envelopes?
Single Stage One envelope
Number of Bidding Documents Sold 4
Number of Bids Received 4
Evaluated bid prices: - EUR 248,431, Khoyout El Shams Company. - EUR 260,695.5, Al Hezam Al Dahabi for
Contracting. - EUR 296,475, Al Rimah for Construction and
General Contracts. - EUR 325850, A’amal Development and
Reconstruction Company.
Date of Invitation for Bids 5-Sep-18
Bid submission deadline (date and time) 4-Oct-18 @12:00 pm
Number of Bid Submission Deadline Extensions
0
Bid Submission Deadline Extensions (days)
0
Bid Validity Period (in days) 90 Days Valid till 2-Jan-2019
Number of Bid Validity Period Extensions
0
Bid Validity Extension Period (in days) 0
Evaluation and Award
Question Answer Comments
Record of Public Bid Opening on file and initialed (y/n)
Yes Dated on 4-Oct-18 and signed by the bid opening committee (BOC).
Bid opening Date 4-Oct-18 @12:00 pm
Bid Evaluation Report on file (y/n) Yes Signed by the bid evaluation Committee (BEC)
Bid Security / Bid Declaration on file (y/n) Yes The participated bidders submitted bid securities for amount of Euro 6,000.
The Notification of Intension to Award (NOA) Transmission Date
26-Nov-18
The procuring entity notified all participated bidders that the bid will be awarded to Al Hezam Al Dahabi for Contracting Company for offering the lowest evaluated responsive bid.
The Notification of Intension to Award transmitted to all Bidders. (y/n)
Yes
Number of complaints received during the standstill period.
0
Contract Signing Date 20-Dec-18 Before the Bid validity expiration date (2-Jan-19).
Cost Estimate Amount EUR 282,655 Awarded Contract varied from Estimate by -8.4%.
Lowest Evaluated Bid Amount EUR 248,431
One bidder has offered the lowest price but he was not awarded because of not providing all required for post qualification requirements (experience certificates).
Second Lowest Evaluated Bid Amount
EUR 260695.5
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Procurement Audit Report Page 38 of 47
Awarded Contract Amount EUR 260695.5
Al Hizam Al Dahabi for Contracting Company was awarded as the lowest evaluated responsive bidder who met all required qualifications. MDLF Share: EUR 235,122 LGU Share: EUR 25,573.5
Were all other required RFB Conditions respected?
Yes
Performance Security on file (y/n) Yes
- Performance security for a value of EUR 26,070 dated on 17-Dec-2018, issued by Bank of Palestine, and valid till 18-Apr-2019.
- Performance security was extended on 20-Dec-2018 to be valid till 18-May-2019 and extended again on 15-May-2019 to be valid till 18-July-2019.
Contract
Question Answer Comments
Contract Date 20-Dec-18
Actual Contract Start Date 29-Dec-18 The municipality sent to the contractor Notice to proceed in order to inform him that he could start works on 29-Dec-2018.
Completion Period/ Delivery Period as per Awarded Contract (in days)
120 days
Completion Period/Delivery period Extension or Delay (y/n)
Yes There was justified delay for 14 days because of citizens’ complaints.
Completion Date (Comp. in Contract: 28-April-19)
9-May-2019
Initial handover Date 13-June-19
Advance Payment Amount EUR 0
Bank Guarantee secured against Advance Payment (if applicable)?
NA
Percentage of Works Completed / Goods Delivered to Date
100%
Payment Requests on file (Y/N) Yes
Contract Amount Paid EUR 260.695.5
MDLF Share: (EUR 235,122) LGU Share: (EUR 25,573.50) EUR 65,033.1: 1st payment. (MDLF) EUR 120,116.25: 2nd and final payment (MDLF). EUR 25,573.50 : 3rd payment (LGU) EUR 49,972.65: 4th and final (MDLF).
Liquidated Damages Deducted from Payments (y/n)
NO
Defects Liability Period Completion Date
17-June-20 The contractor submitted maintenance security issued by Bank of Palestine with a value of EUR 13,035 and valid from 17-June-19 till 17-June-20.
Contract Terminated (y/n) No
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Procurement Audit Report Page 39 of 47
7.8 Summary Sheet -8:
(Kafr Rai’e Municipality Project: Supply of Hydraulic Platform Utility Vehicle)
1. PROJECT OVERVIEW:
Project Name: Supply of Hydraulic Platform Utility vehicle
Project Number: MDPIIIC1- 0223019-01 Project status: Completed
Procurement for: Goods Procurement Method: NCB
Estimate value:
80,000 Euro
Original contract value:
78,000 Euro
Project final value:
78,000 Euro
Project original duration: 180 days Extension / Delay: No delay or extension.
Contractor: Tower Mechanical Equipment Co. (TOMECO)
LTC: Universal Group for Engineering and Consulting
2. RESULTS AND FINDINGS SUMMARY:
I. Compliance with procurement guidelines
II. Procurement efficiency
III. Soundness of tender evaluation report
Comment:
The implementation project was in compliance with the MDLF’s procurement manual except that the municipality chose the method for tendering not according the thresholds limitations (NCB instead of Shopping) in order to increase the number of bidders as much as possible because the limited number of qualified suppliers in the local market.
The effectiveness of the procurement process adopted by the municipality was in accordance to MDLF procurement Manual.
The tender evaluation report was sound and followed the MDLF Requirements and the lowest evaluated bidder was awarded.
IV. Contract management V. Implementation of project according to contract
VI. Maintenance and keeping of procurement records
The contract management process adopted by the municipality was effective in line with the agreed conditions covering delivery, payments, quality control, and completion.
The selected project was implemented following: The design and specification Scope Time.
The maintenance/keeping of procurement records were well organized by both MDLF and Municipality.
Challenges and problems faced by stakeholders:
As for the problems and challenges, there was a challenge and difficulty in preparation of the specifications with limited experience that required consultations and technical support and the limited number of qualified companies in the local market.
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Procurement Audit Report Page 40 of 47
3. PROCUREMENT PROCESS OVERVIEW
Bidding
Question Answer Comments
Was the bid advertised in accordance with the loan agreement?
Yes - It was advertised in Al Hayat and Al Ayyam
newspapers on 26-June-2018.
Was prequalification used? No
Was single stage-one envelope used or single stage-two envelopes?
Single Stage One envelope
Number of Bidding Documents Sold 2
Number of Bids Received 1 Evaluated bid price: - EUR 78,000, Tower Mechanical Equipment
Company.
Date of Invitation for Bids 26-June-18
Bid submission deadline (date and time) 25-July-18 @11:00 am
Number of Bid Submission Deadline Extensions
0
Bid Submission Deadline Extensions (days) 0
Bid Validity Period (in days) 90 Days 90 Days from bid opening date.
Number of Bid Validity Period Extensions
0
Bid Validity Extension Period (in days) 0
Evaluation and Award
Question Answer Comments
Record of Public Bid Opening on file and initialed (y/n)
Yes Dated on 25-July-18 and signed by the bid opening committee (BOC).
Bid opening Date 25-July-18
Bid Evaluation Report on file (y/n) Yes Signed by the bid evaluation Committee (BEC)
Bid Security / Bid Declaration on file (y/n) Yes The participated bidders submitted bid securities for amount of Euro 2,500.
The Notification of Intension to Award (NOA) Transmission Date
23-Sep-2018 There was only one bidder. Notification of award – Letter of acceptance was sent to the contractor and dated on 23-Sep-2018.
The Notification of Intension to Award transmitted to all Bidders. (y/n)
NA There was only one bidder.
Number of complaints received during the standstill period.
NA
Contract Signing Date 26-Sep-18
Cost Estimate Amount EUR 80,000 Awarded Contract varied from Estimate by -2.5%.
Lowest Evaluated Bid Amount EUR 78,000
Second Lowest Evaluated Bid Amount
EUR NA
Awarded Contract Amount EUR 78,000 MDLF Share: (EUR 78,000)
Were all other required RFB Conditions respected?
Yes
Performance Security on file (y/n) Yes Performance security for a value of EUR 7,800 dated on 26-Dec-2018, issued by Al Quds Bank, and valid till 25-Mar-2019.
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Procurement Audit Report Page 41 of 47
Contract
Question Answer Comments
Contract Date 26-Sep-18
Actual Contract Start Date 26-Sep-18
Completion Period/ Delivery Period as per Awarded Contract (in days)
180 days
Completion Period/Delivery period Extension or Delay (y/n)
No No Delays or Extensions.
Completion Date (Comp. in Contract: 26-Mar-19)
26-Feb-19
Initial handover Date 26-Feb-19
Advance Payment Amount EUR 0
Bank Guarantee secured against Advance Payment (if applicable)?
NA
Percentage of Works Completed / Goods Delivered to Date
100%
Contract Amount Paid EUR 78,000 MDLF Share : EUR 78,000 EUR 78,000:1st and final payment was requested by the contractor on 13-Mar-2019 .
Liquidated Damages Deducted from Payments (y/n)
NO
Defects Liability Period Completion 2 years from
handover date As per maintenance contract agreement.
Contract Terminated (y/n) No
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Procurement Audit Report Page 42 of 47
7.9 Summary Sheet -9:
(Silwad Municipality Project: Rehabilitation of Internal Roads)
1. PROJECT OVERVIEW:
Project Name: Rehabilitation of Internal Roads
Project Number: MDPIIIC1-0822067-01 Project status: Completed
Procurement for: Works Procurement Method: Shopping
Estimate value:
126,755 Euro
Original contract value:
118,139 Euro
Project final value:
122,378.02 Euro.
Project original duration: 60 days Extension / Delay: 54 days
Contractor: PMP Company.
LTC: JV of Madar Consulting Engineers & Projective - Project Management & Consultancy
2. RESULTS AND FINDINGS SUMMARY:
I. Compliance with procurement guidelines
II. Procurement efficiency
III. Soundness of tender evaluation report
The implementation of the project was in compliance with the MDLF’s procurement manual and the tender documents for the whole project life cycle.
The effectiveness of the procurement process adopted by the municipality was in accordance to MDLF procurement Manual.
The tender evaluation report was sound , followed the MDLF Requirements and the lowest evaluated responsive bidder was awarded.
IV. Contract management V. Implementation of project according to contract
VI. Maintenance and keeping of procurement records
The contract management process adopted by the municipality was effective in line with the agreed conditions covering delivery, payments, quality control, completion and liquidated damages.
Generally, the project was implemented according to the design and scope except minor variations and very long delays compared to the original time.
The maintenance/keeping of procurement records were well organized by both MDLF and Municipality.
Challenges and problems faced by stakeholders:
Problems and challenges, they were mainly connected to long delays and municipality work in the site.
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Procurement Audit Report Page 43 of 47
3. PROCUREMENT PROCESS OVERVIEW
Bidding
Question Answer Comments
Number of RFQs Sent Out 5 No objection from MDLF dated on 25-Oct-2018.
Number of Quotations Received 4
Was there an advert in addition to the short list? (y/n)
No Not Required.
Number of Amendments to the Request for Quotation
0
Date of Invitation for Quotations 27-Oct-18 & 28-Oct-18
Quotation submission deadline (date and time)
5-Nov-18 12:00 pm
Quotations prices after deductions: - EUR 118,139 , PMP Company. - EUR 134,117.9 , Al Amjad Arabian Co. for
contracting and construction. - EUR 139,061.34 ,Abu Thaher Contracting Company - EUR 141,957 , Brothers Contracting Company
Number of Quotation Submission Deadline Extensions
0
Quotation Submission Deadline Extensions (in days)
0
Bid Validity Period (in days) 60 60 days form quotation opening date.
Number of Bid Validity Period Extensions
0
Bid Validity Extension Period ( days) 0
Bid Evaluation and Award Overview
Question Answer Comments
Quotation opening Date 5-Nov-18 Dated on 5-Nov-18 and signed by the BOC.
Tender Evaluation Report on file (y/n)
yes Signed by the BEC.
Cost Estimate EUR 126,755 Awarded Contract varied from Estimate by – 7.3% .
Lowest Evaluated Quotation Amount
EUR 118,139
Second Lowest Evaluated Quotation Amount
EUR 134,117.9
Awarded Contract Amount EUR 118,139 The lowest evaluated responsive bidder was awarded. EUR 112,192 from MDPIII project through MDLF. EUR 5,947 from LGU.
Performance Security on file (y/n) Yes Performance security with value of EUR 12,000 issued by Arab Islamic Bank on 18-Nov-18 and valid till 16-Aug-19.
Contract
Question Answer Comments
Contract Date 21-Nov-18
Actual Contract/Purchase Order Start Date
27-Nov-18
Completion Period/Delivery Period as per Awarded Contract (in days)
60 Days
Completion Period/Delivery period Extension or Delay (y/n)
Yes The completion period was extended.
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Procurement Audit Report Page 44 of 47
Number of Completion Period/Delivery period Extensions
2
Duration of Completion Period/Delivery period Extensions (in days)
56 days - The first extension was from 26-Jan-2019 to 3-Mar- 2019 and approved by municipality on 27-Jan-2019. -The second extension was from 3-Mar-2019 to 23-Mar-2019 and approved by municipality on 2-Mar-2019. The extensions were due to bad weather conditions and municipality works in site.
Completion date (Comp. in Contract 26-Jan-19)
21-Mar-19
Initial handover date 18-April-19 Initial handover committee included 2 Municipality engineers, MDLF representative and LTC engineer.
Advance Payment Amount EUR 0
Percentage of Works Completed/Goods delivered
100%
Contract Amount Paid EUR 122378.02 MDLF Share (EUR 112,192) LGU Share (EUR 10,186.02) EUR 37,286.55: 1st payment (MDLF) EUR 10,186.02: 2nd payment (LGU) EUR 74,905.45: 3rd and final payment (MDLF) The increase in LGU share was due to increase in the asphalt, base coarse and concrete shoulders quantities in certain locations.
Liquidated Damages Deducted from Payments (y/n)
Yes EUR 6,089 were deducted from the final payment due to deviations of asphalt thickness and compacting percentage with specification as per contract conditions.
Defects Liability Period Completion Date
28-May-20 It was issued by Arabic Islamic Bank of EUR 7,000 and valid from 29-May-19 till 28-May-20.
Contract Terminated (y/n) No
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Procurement Audit Report Page 45 of 47
7.10 Summary Sheet -10:
(Consulting services project (1):Municipal Ranking Update – End of MDP3 – Cycle1)
1. PROJECT OVERVIEW:
Project Name: Municipal Ranking update – End of MDP3- Cycle1
Consultant Name: Agility Management and Financial Consultant
Selection Method: Selection based on consultant qualifications (CQS)
Project status: Completed
Contract Type: Lump Sum
Original Contract value 35,000 Euro including VAT Final contract value:
35,000 Euro including VAT
Project original duration: 3 months Extension: 1 month
2. RESULTS AND FINDINGS SUMMARY:
I. Compliance with procurement guidelines
The implementation project was in compliance with the MDLF’s procurement manual.
II. Procurement efficiency
The procurement process adopted by the procurement entity was effective and in accordance to MDLF procurement Manual.
III. Soundness of evaluation report
The evaluation report of expression of interest was sound and followed the MDLF requirements. It included the justification of why the firm was selected in terms of performance expressions and following the evaluation criteria set for the consultancy service putting also the scores of all consultants.
IV. Contract management
The auditor believes that contract management process by MDLF was effective considering the following:
o The PE ensured that there was a proper implementation of the signed contracts following the agreed conditions and ToR.
o The MDLF team followed the consultant’s adherence to the work plan.
o The MDLF monitored the consultant reports and the availability of the key personnel
o The MDLF reviewed the quality of services provided by the consultant.
V. Maintenance and keeping of procurement records
The maintenance/keeping of procurement records were well organized following the sequence and the history of the project implementation with everything in good order.
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Procurement Audit Report Page 46 of 47
7.11 Summary Sheet -11:
(Consulting services project (2): Rollout of O&M Software - West Bank & Gaza (16Municipalities in the WB & 8 in Gaza))
1. PROJECT OVERVIEW:
Project Name: Rollout of O&M Software - West Bank & Gaza (16Municipalities in the WB & 8 in Gaza)
Consultant Name: Expert Turnkey Solutions
Selection Method: Direct Selection-Single-Source Selection (SSS)
Project status: Ongoing
Contract Type: Lump sum
Original Contract value 139,200 Euro including VAT.
Final contract value: The project is still ongoing, but there is no increase on contract value until now.
Project original duration: 6 months Extension: 128 days
2. RESULTS AND FINDINGS SUMMARY:
I. Compliance with procurement guidelines
The implementation of project was in compliance with the MDLF’s procurement manual.
II. Procurement efficiency The procurement process adopted by the procurement entity was effective and in accordance to MDLF procurement Manual.
III. Soundness of evaluation report
The evaluation report was sound and the request to award was forwarded to the FP with the justification of the selection covering performance, experience with reference to the previous selection following a competitive bidding both technically and financially. Also presented that the prices will be the same.
IV. Contract management
The auditor believes that contract management process by MDLF was effective considering the following:
o The PE ensured that there was a proper implementation of the signed contracts following the agreed conditions and ToR.
o The MDLF team followed the consultant’s adherence to the work plan.
o The MDLF monitored the consultant reports and the availability of the key personnel.
o The MDLF reviewed the quality of services provided by the consultant.
o The MDLF team shared in the inspection and handover committees nominated for all municipalities
V. Maintenance and keeping of procurement records
The maintenance/keeping of procurement records were well organized following the sequence and the history of the project implementation with everything in good order.
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Procurement Audit Report Page 47 of 47
8. Annexes: