world bank procurement · country partnership framework (cpf) monthly operational summary project...
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WORLD BANK PROCUREMENT
Creating an enabling environment for business in international development
Howard CentenarySenior Procurement Specialist
March 2019
Middle IncomeCountries
Low IncomeCountries Foreign and Local Investors
MIGAIFCIBRD IDA
GOVERNMENTS PRIVATE SECTOR
ICSID
Tribunal
The World Bank Group
2019 Global Commitments by Region
24%
12%
30%
7%11%
15%
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
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
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
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
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AUSTRIAOverall Contracts Awarded Grouped by Value (US$)
FY16-18
Source AO: BI – Information as of February 27, 2019
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5
1
6
1,000 - 100,000
100,001 - 500,000
500,001 - 1,000,000
5,000,001 - Above
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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
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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
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Why bid on World Bank contracts?
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
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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
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
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:
Standstill Period, Debriefing and Complaints
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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
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Characteristics of selection of consultants
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
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
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
Examples of upcoming projects
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Project Description Sector Country Amount ($m)
Moldova Power System Development Project (April 2019)
Energy Moldova 70
Enabling Digital Governance in Serbia Project (Nov 2019)
ICT Serbia 50
Electricity Sector Improvement Project (Nov 2019)
Energy Angola 250
Rural Electricity Access Project (Dec 2018)
Energy Cameroon 150
Examples of upcoming projects
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Project Description Sector Country Amount ($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
Procurement & Finances Apps
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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
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
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
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
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:
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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
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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