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WORLD BANK PROCUREMENT Creating an enabling environment for business in international development Howard Centenary Senior Procurement Specialist March 2019

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Page 1: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

WORLD BANK PROCUREMENT

Creating an enabling environment for business in international development

Howard CentenarySenior Procurement Specialist

March 2019

Page 2: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

Middle IncomeCountries

Low IncomeCountries Foreign and Local Investors

MIGAIFCIBRD IDA

GOVERNMENTS PRIVATE SECTOR

ICSID

Tribunal

The World Bank Group

Page 3: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

2019 Global Commitments by Region

24%

12%

30%

7%11%

15%

Page 4: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

Top Areas of Spend in FY16-18 (Worldwide)$10 to 15 Billion annually- 1,600 Projects in 132 countries

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Transportation 35% Energy & Extractives 17%Water/Sanit/Waste 23%

Source AO: BI – Information as of February 26, 2019

35.0%

22.9%

17.2%

4.8%

4.7%

4.4%4.3%

3.0%2.1% 1.7%

Transportation

Water/Sanit/Waste

Energy & Extractives

Public Admin

Health & Social Services

Agriculture

Other

Education

Industry & Trade Services

Social Protection

Page 5: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

Top Ten Procuring Borrowers (FY16-18)

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RANK COUNTRY CONTRACT VALUE (USD) % OF TOTAL VALUE

1 India 4,667,253,814 12.88%

2 Pakistan 2,408,199,754 6.65%

3 China 2,224,762,499 6.14%

4 Ecuador 1,927,528,000 5.32%

5 Bangladesh 1,505,424,470 4.16%

6 Egypt 1,388,332,036 3.83%

7 Ethiopia 1,253,065,491 3.46%

8 Ukraine 889,337,152 2.45%

9 Kenya 806,961,037 2.23%

10 Argentina 800,183,376 2.21%

Source AO: BI – Information as of February 26, 2019

Page 6: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

Top Ten Supplier Countries (FY16-18)

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RANK COUNTRY CONTRACT VALUE (USD) % OF TOTAL VALUE

1 China 8,551,151,525 23.60%

2 India 5,411,736,508 14.94%

3 Spain 1,958,128,817 5.40%

4 Brazil 1,634,399,542 4.51%

5 Turkey 1,328,625,883 3.67%

6 France 900,679,192 2.49%

7 Bangladesh 698,423,064 1.93%

8 Vietnam 602,102,201 1.66%

9 Germany 589,927,819 1.63%

10 Argentina 588,402,421 1.62%

40 Austria 125,750,746 0.35%Source AO: BI – Information as of February 26, 2019

Page 7: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

Top Ten Consulting Service Countries (FY16-18)

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RANK COUNTRY CONTRACT VALUE (USD) % OF TOTAL VALUE

1 India 240,951,968 5.83%

2 France 231,965,787 5.61%

3 United States 167,901,341 4.06%

4 Germany 147,741,442 3.58%

5 Peru 134,189,403 3.25%

6 United Kingdom 131,527,445 3.18%

7 Russian Federation 105,666,158 2.56%

8 Canada 104,631,996 2.53%

9 Italy 88,186,925 2.13%

10 Spain 87,655,840 2.12%

44 Austria 18,295,715 0.44%

Source AO: BI – Information as of February 25, 2019

Page 8: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

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AUSTRIAOverall Contracts Awarded Grouped by Value (US$)

FY16-18

Source AO: BI – Information as of February 27, 2019

5

5

1

6

1,000 - 100,000

100,001 - 500,000

500,001 - 1,000,000

5,000,001 - Above

Page 9: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

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AUSTRIAContract Awards by Procurement Category

FY16-18 (US$)

Source AO: BI – Information as of February 27, 2019

$85M

$22M

$18M

CIVIL WORKS GOODS CONSULTANT SERVICES

Page 10: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

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Energy & Extractives 45% Water/Sanit/Waste 31%

$125 Million

AUSTRIASector Distribution of Awards (FY16-18)

Source AO: BI – Information as of February 27, 2019

45.4%

30.9%

13.5%

9.2%

0.6% 0.5%

Energy & Extractives

Water/Sanit/Waste

Transportation

Other

Health & Social Services

Agriculture

Page 11: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

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Why bid on World Bank contracts?

Page 12: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

The World Bank’s New Procurement Framework Old Problems – New Solutions

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One size fits all, limited options, prescriptive

F&C seen as primary challenge

Mixed capacity - clients, suppliers and Bank

Arms-length approach to markets

Primary focus on selection phase

Key focus on results

Fit for purpose approach as enabler of value for money

Flexible, risk-based decision-making

Early, proactive market engagement

Capacity building

Dynamic risk management, with enhanced integrity, fairness and transparency

Increased focus on contract management

Page 13: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

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Some innovations in World Bank procurement

Emphasis on strategic procurement

New suite of Standard Procurement Documents (SPDs)

ESHS provisions in works documents

Use of Rated Criteria

Abnormally Low Bids/Proposals

Sustainable Procurement

Many new options and methods

Value engineering

Enhanced complaints management

Direct payment

Industry Engagement program

Page 14: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

Project Procurement Strategy for Development

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Project Procurement Strategy for Development (PPSD) is a critical planning tool that informs the procurement approach

Captures key market analysis findings and explains how they:

impact on the Borrower’s approach to market, and

determine the best fit-for-purpose procurement approach

Borrower required to prepare a PPSD

for each Investment Project Financing

(IPF) project

Page 15: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

Abnormally Low Bids/Proposals (ALB/P)

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Method to identify and resolve very low priced bids/proposals Borrower is required to reject Bids determined to be abnormally low Definition of ALB/P:

Where the price, in combination with other elements, appears unreasonably low, to the extent that it raises material concerns as to the bidder’s/proposer’s capability to perform the contract for that price

Identify: Borrower identifies a potential ALB/PClarify: Borrower seeks clarification from the bidder/proposerJustify: Bidder/proposer prepares a justification of the priceVerify: Borrower analyzes the justification to verify if it provides

reasonable explanation and validation of the price Decide: Borrower decides whether to accept or reject the bid/proposal.

The 5 stages in managing an ALB/P:

Page 16: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

Standstill Period, Debriefing and Complaints

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Page 17: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

Selection Methods

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RFP - Competitive method used when Borrower specifies functional/performance needs and the market proposes solutions. Uses Bank SPD and rated criteria apply

RFB - Competitive method used when Borrower clearly specifies requirements and wishes to maintain a higher degree of control in delivery. Uses Bank SPD

RFQ - Seek quotations for readily available, off-the-shelf GWNcS.

Direct Selection - Approach and negotiate with only one firm

Page 18: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

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Characteristics of selection of consultants

Page 19: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

Selection Methods for Consultants

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FIRMS• Quality and cost-based selection

(QCBS)• Least cost-based selection (LCS)• Fixed budget based selection

(FBS)• Quality based selection (QBS)• Consultant’s qualification based

selection (CQS)• Direct selection (DS)

INDIVIDUALS• Open competition• Limited competition• Direct selection

Page 20: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

How to Identify Contract Opportunities

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Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement data on major contract

awards in Procurement App Procurement plan on WB site www.worldbank.org General and Specific Procurement Notices on

United Nations Development Business www.devbusiness.com

Page 21: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

Examples of upcoming projects

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Project Description Sector Country Amount ($m)

Water Resources and Irrigation Project

Water Albania 27

National Solid Waste Management Project (Nov 2019)

Urban Azerbaijan 117

Education Modernization Project (April 2019)

Education Belarus 103

Energy Supply Reliability and Financial Recovery (April 2019)

Energy Georgia 110

Page 22: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

Examples of upcoming projects

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Project Description Sector Country Amount ($m)

Moldova Power System Development Project (April 2019)

Energy Moldova 70

Enabling Digital Governance in Serbia Project (Nov 2019)

ICT Serbia 50

Electricity Sector Improvement Project (Nov 2019)

Energy Angola 250

Rural Electricity Access Project (Dec 2018)

Energy Cameroon 150

Page 23: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

Examples of upcoming projects

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Project Description Sector Country Amount ($m)

One WaSH - Consolidated WaSHAccount Project (May 2019)

Water Ethiopia 300

Electricity Access Project (Nov Apr)

Energy Malawi 150

Nigeria Digital Identification for Development Project (May 2019)

ICT Nigeria 115

Tanzania Development Corridors Transport Project (Mar 2020)

Transport Tanzania 550

Page 24: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

Procurement & Finances Apps

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Page 25: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

Lessons from winning firms

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Engage early

Be selective and strategic

Make quick go/no go decisions

Work with national partners and use partnerships

strategically

Fully address the requirements and don’t deviate from

standard RFP forms/conditions

Be organized - the look of your proposal matters

Page 26: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

Lessons from winning firms

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Know your competitive advantage – Unique skills,

innovative approach?

Customize submissions based on requirements / ToR

Evaluation criteria

Understand and speak to evaluation criteria

Self evaluate against scoring grid

New approaches reward innovative delivery

Conditions or qualifications will lead to rejection

Page 27: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

Corporate Procurement: What the Bank buys

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Information Technology

Communication Equipment and Services

Professional and Technical Consulting Services

Office Supplies, Paper and Paper Products

Graphic Design, Publications and Print Services

Construction and Renovation Services

Facilities Management Services and Equipment

Other Administrative Services as needed

Page 28: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

Corporate Procurement: Consulting Services

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The Bank Group procures services from Consultants to support its project work:

Firms are contracted by the Bank Group and must be eligibleto become avendor

Individuals are appointed to the staff of the Bank Group

All consultants are selected using the Bank Group’s eTendering tool “eConsultant2” The system includes templates, contract terms and conditionsand information

about how to use the system

Firms are encouraged to create a profile in eConsultant2

Information about eConsultant2 may be found athttps://wbgeconsult2.worldbank.org

Page 29: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

Corporate Procurement: Vendor Registration

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Registration ad a vendor is a pre-requisite for contract signing

Vendor registration not required for bidding

Check the Corporate Procurement web site the Bank Group’s vendor eligibility criteria

If registered, provide updated information to the World Bank Group when your company has a material change

www.worldbank.org/[email protected] – general queries

[email protected] – consulting queries

Learn more:

Page 30: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

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Conclusion

The World Bank Procurement Framework:

Provides more choice and greater flexibility to deliver the desired outcome

More focus on VfM aspects, as opposed to cost only

Encourages innovation

More and earlier engagement with Business

More information and greater transparency on procurement through STEP

Page 31: WORLD BANK PROCUREMENT · Country Partnership Framework (CPF) Monthly Operational Summary Project Document World Bank website Financing App for real time info Historic Procurement

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Useful links for further informationWorld Bank’s Procurement Regulations for IPF Borrowers

https://policies.worldbank.org/sites/ppf3/PPFDocuments/Forms/DispPage.aspx?docid=4005

Standard Procurement Documents templates

http://www.worldbank.org/en/projects-operations/products-and-services/brief/procurement-new-framework#SPD

Guidance on SPDs http://www.worldbank.org/en/projects-operations/products-and-services/brief/procurement-new-framework

Guidance on finding business opportunities and winning contracts financed by the World Bank

http://pubdocs.worldbank.org/en/767421522948635843/Procurement-Guidelines-finding-opportunities-2018.pdf

Guidance on how to complain http://www.worldbank.org/en/projects-operations/products-and-services/brief/procurement-new-framework

Video: World Bank Procurement, How to bid, finding opportunities, what makes a successful bid

http://www.worldbank.org/en/news/video/2016/03/30/world-bank-procurement-video

Procurement App for IPad:Data on contracts

https://itunes.apple.com/us/app/world-bank-project-procurement/id911312962?mt=8

Procurement App for IPad: Data on projects, finances and procurement data

https://itunes.apple.com/us/app/world-bank-group-finances/id465555488?mt=8

UNDB Online https://www.devbusiness.com/Search/Search.aspx?PreLoadProjects=1