THE WORLD BANK

Procurement Briefing the NetherlandsNovember 3, 2003

Shaun Moss, Lead Procurement Specialist, Europe and Central Asia Region

PRESENTATION OVERVIEW

1. The World Bank’s project cycle and organization

2. Principles of Procurement - Roles of the World Bank and the Borrower in the procurement process

3. Consultant selection procedures4. Sources of information

CASCASCountry

Assistance Strategy

Country Assistance

Strategy

OtherAgencies

Borrowers’Proposals

PreviousProjects Country

Offices

Bank Economic& Sector Work

PROJECT IDENTIFICATION

IMPLEMENTATION

Country Assistance Strategy

IMPLEMENTATION COMPLETION REPORT

PROJECT PREPARATION

PROJECT IDENTIFICATION

PROJECT APPRAISAL

LOAN NEGOTIATIONS

LOAN APPROVAL, SIGNING AND EFFECTIVENESS

Joint activity Client activityBank activity

PROJECT SUPERVISION

BANK OPERATIONS STAFFBANK OPERATIONS STAFF

Vice PresidentAfrica

Vice PresidentSouth Asia

Vice PresidentEast Asia& Pacific

Vice PresidentMiddle East

&North Africa

Vice PresidentEurope &

Central Asia

Vice PresidentLatin America& Caribbean

CountryDirector

CountryCountryDirectorDirector

CountryDirector

CountryDirector

CountryDirector

CountryDirector

RPA* RPARPARPARPARPA

CountryDirector

* * RPA: Regional Procurement Adviser

Sector Managers

Sector ManagersTask Team Leaders

PRINCIPLES OF CONSULTANT SELECTION

High-quality services

Economy and efficiency

Equal opportunity to qualified firms from all member countries

Development of national consulting industry

Transparency in the selection process

Understand the Roles…

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

Understand the Roles

The World Bank• Assesses the Client’s capacity to carry out

procurement• Reviews and clears the procurement plan• Prior reviews large-value contracts and contract

modifications• Carries out post review of contracts under the

prior-review thresholds

Role of the Business Community

Read up on the Bank’s lending strategy in specific countries/sectors (CAS)

Identify projects of interest by tracking the Bank’s website

Market your expertise directly to the borrower of Bank funds/grant recipient

Understand the project cycle and procurement & consultant guidelines.

BANK GUIDELINES FOR CONSULTANT SELECTION

Public Notification for Large Assignments

(>US$200,000)

Restricted Competition based on shortlist

Standard Request for Proposals (RFP)

Applicable Selection Methods Specified in Loan

Agreement

SELECTION METHODS

Quality- and Cost-Based Selection (QCBS) (Technical

Quality >70; Price <30)

Quality-Based Selection (QBS) (technical quality only)

Fixed Budget (FB)

Least Cost Selection (LCS)

Consultants’ Qualifications (CQ)

Single Source Selection (SS)

SHORT LIST Limited to six firms

All shortlisted firms must be qualified1/

No more than two from any one country 2/

Promote participation of National Consultants

1/ But not all qualified firms make the shortlist

2/ Except when list may be all national firms – permitted for some smaller contracts.

BANK AS EMPLOYER OF CONSULTANTS

Individuals and firms Encourages Competition – But getting

shortlisted is easier if you are known Recognizes Conflict of Interest Restricts Re-employment Expressions of Interest advertised on

Bank’s website: www.worldbank.org/procure

CONSULTANTS’ STRATEGY

Target assignments based on regional experience and technical qualifications – be selective!

Obtain background information on project:• Country Assistance Strategy (CAS)

• Project Information Document (PID)

• Project Appraisal Document (PAD)

Understand Roles of Borrower (Government) and Bank Target marketing at appropriate time

Making the Shortlist

Monitor advertisements systematicallyExpress interest promptly, selectivelyExpression of Interest (EOI):

• Brief information on firm’s qualifications• Relevant technical and regional experience

Contact, visit client before shortlistingIdentify national partner firm and/or individual

consultants

Preparing the Proposal

Pre-proposal visit Address the Terms of Reference (TOR) clearly,

comprehensively Emphasize innovative technical solutions Qualified Consultants in Key Staff positions Firm Provides Strong Technical Leadership Cite directly relevant technical and regional experience Involve national partner consulting firm or individual

consultants Do not vary from standard RFP forms

Typical Evaluation Methodology

Specific experience of firm 10 points

Technical methodology 20 points

Qualifications of Key Staff 50 points

Knowledge transfer, training 10 points

National participation 10 points

World Bank Prior Review

• Cost and staff-month estimates• Request for Proposals inc. TOR, evaluation

system, form of contract• Shortlist• Report on Technical Evaluation• Final Evaluation Report (combined technical and

price evaluation)• Initialed, negotiated contract• Contract modifications >15%

Procurement Information

General Procurement Notices– Publication in UN Development Business (print

and online) is required for any project that will have contracts awarded following International Competitive Bidding Procedures (will also appear in Development Gateway - dgMarket)

– Published minimum of 8 weeks prior to issuance of bidding documents

– Updated annually for outstanding procurement

Requests for Expressions of Interest

Advertised in UN Development Business (UNDB online) and dgMarket for assignments with an estimated value over US$ 200,000– www.dgmarket.com

– www.devbusiness.com

Helps borrower in preparation of short list Request for proposals only issued to short-listed

firms

Trust Funds

• The World Bank often executes trust funds provided by donor countries

• Depending on the donor’s rules, the consulting opportunities may be restricted to nationals of the donor country

• Advertising is required for opportunities over $50,000 – even it is restricted to nationals of a certain country

Trust Funds (cont’d)

• Request for Expression of Interest are advertised in: dgMarket, UN Development Business and the Bank’s website:– http://www.worldbank.org/procure– Selection methods detailed in the Guidelines:

Selection and Employment of Consultants apply

Languages

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

Who won the contract?

• Data on contracts subject to prior review by the Bank are available on the Bank’s website

• http://www.worldbank.org/procure

• View by keyword, country of project, country of supplier, etc.

Procurement Information

www.worldbank.org/procure– Policies and procedures– Standard bidding and consultant documents in

official languages• Familiarize yourself with general conditions of

contract, technical forms, etc.

– Requirements and guidance for World Bank borrowers

DACON Registration

Online at www.dgmarket.comShared by WB and Inter-American

Development BankFive or more full-time professional staffNo individualsRegistration is not mandatory, but

recommended. Will not help you win contracts. You must market your firm.

Contracts Awarded to NL FY 2000-2003

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

2000 2001 2002 2003

Fiscal Year

US

D$ Consult Srvcs

Goods