NEW PROCUREMENTFRAMEWORK
The Vision: “Procurement in Investment ProjectFinancing supports clients to achieve value for moneywith integrity in delivering sustainable development”
The Hague
November 2, 2016
Major contract awards to Dutch companies – FY 15 (by procurement type andcategory)
Administrative Services Consultant Services Audit Services Consultant Services
Construction Supervision Consultant Services Design Services Consultant Services
Equipment, Construction Goods Equipment, Educational Goods
Equipment, Medical Goods Equipment, Transportation Goods
Feasibility Studies Consultant Services Geological/Geophysical Services Consultant Services
Health Services Consultant Services Institution building Consultant Services
Legal Advisory Services Consultant Services Management /Technical Advice Consultant Services
Miscellaneous Goods Pharmaceuticals, Medical Products Goods
Procurement Technical Assistance Consultant Services Research/Development Services Consultant Services
Sector Studies Consultant Services Training Services Consultant Services
Major contract awards to Dutch companies – FY 16 (by procurement type andcategory)
Construction Supervision Consultant Services Design Services Consultant Services
Equipment, Mechanical Goods Feasibility Studies Consultant Services
Financial Services Consultant Services Legal Advisory Services Consultant Services
Management /Technical Advice Consultant Services Miscellaneous Goods
Other Operational Services Non-consulting Servi Pharmaceuticals, Medical Products Goods
Training Services Consultant Services Works, Maintenance and Rehabilitation Civil Works
The journey to here
InitiatingDiscussionPaper 2012
Check that theBank’s approachis modern, meets
new needs &futureproof
Globalconsultations
(round 1)
Proposed NewFramework 2013
What we heard inconsultations
Board debate &direction given
Developing theNew Framework
2014
Proposals toresolve Complex
issues
Globalconsultations
(Round 2)
Finalizing theNew Framework
2015
Finalized Policyand approaches
to complex issues
Board approval toimplement in
FY16
The New Framework became effective as of July 1, 2016
Applicable for Investment Project Financing
• Concept Review Decision on or after July 1, 2016 and some “Early Adopters”
• If justified, Additional Financing may use Procurement/Consultant Guidelines
The New Procurement Framework enables Borrowers with:
• more choices for different situations and contexts
• flexibility to adopt proportional and fit-for-purpose procurement approaches
• value for money
Key Messages on the New Procurement Framework (NPF)
5
Prior Reviews streamlined to:
allow Borrowers and the Bank to focus on large value or high risk
and complex procurement; and
assist clients with Contract Management and Hands-on Expanded
Implementation Support for procurement, as appropriate
Key Messages on the New Procurement Framework
6
An enhanced vision and expanded core principles
Exclusion of Bank’s guarantees and Financial Intermediary loans and
grants to private sector beneficiaries
Introduction of most advantageous bid to achieve best value for money(VfM) including non-price aspects for complex, innovative procurement
New concept of “Fit-for-purpose” in lieu of one size fits all
Project Procurement Strategy for Development (PPSD) to guide
selection of the optimum approach to achieve VfM throughout the
procurement cycle in support of the Project’s Development Objectives
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Overview of Key Procurement Policy Changes
Overview of Key Procurement Policy Changes
Sustainable Procurement
Recourse to Noncompliance expanded and remedies proportional to theseverity of the infringement versus only misprocurement
Use of Alternative Procurement Arrangements (APA) versus currentunitary approach
Hands-on Expanded Implementation Support for procurement (Limited toSituations of Urgent Need of Assistance or Capacity Constraints)
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Core Procurement Principles
Value for Money
Economy
Integrity
Fit-for-Purpose
Efficiency
Transparency
Fairness
Borrowers Procurement Regulations / Guidelines Active projects and those under preparationwith PCN before July 1, 2016 will continue to apply Procurement Guidelines and Consultant
Guidelines
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PROCUREMENT IN INVESTMENT PROJECT FINANCING
Goods, Works, Non-Consult ing andConsult ing Services
July 2016
Borrowers: implementation of the project, including carrying out procurementactivities
Bank: supervision (fiduciary role) and implementation support, including:
Prior and Post Reviews
Independent Procurement Reviews (IPR)
Third party assurance
Hands-on Expanded Implementation Support (HEIS) for procurement incertain cases
Roles and Responsibilities
Noncompliance
More options beyond misprocurement (legal remedies)
Professional judgment
Corrective actions shall
• be proportional to the severity and impact of the infringementand
• take into account all relevant factors, including any validaction/s, inaction/s or omission/s by the Borrower, or any partyinvolved in the procurement, including the Bank
Complaints Handling & Standstill Period
Introduced Standstill period (10 business days), allowing unsuccessful bidders(standing) to lodge any complaints within a specific time prior to contract award
Exclusions apply such as
• direct selection
• emergency situations recognized by Bank
• only one bid/proposal submitted in a competitive process
Introduced debriefings by the Borrowers within Standstill period
Business standards (response time)
Borrowers shall record in STEP (see next slides) all complaints
In case of prior-review contracts, Borrowers shall inform the Bank of anyprocurement complaints
Selection Methods for Goods, Works and Non-Consulting Services
Selection methods for Consulting Services
STEP
All procurement operations will “live” in the Systematic Tracking ofExchanges in Procurement (STEP).
This is an electronic end-to-end procurement processing and trackingplatform that includes planning, implementation, activity tracking, contractmanagement, reporting and analysis modules.
PPSD & Procurement Plan
Project Procurement Strategy for Development (PPSD)
by Borrower with Bank support
Activity Procurement Strategy
high risk and/or high value activities/contracts
Procurement Plan
output of PPSD
Standard Procurement (Bidding) Documents - What's new?
18
SPDs are based on the Standard Bidding Documents.
SBDs have been modified to reflect new Regulatory concepts and
requirements and operationalize the Regulations.
23 SPDs launched on July 1, 2016: available http://www.worldbank.org
SPDs to be used with:
international competitive procurements where the Project Concept Note
is approved after July 1, 2016
other procurements, with the Bank’s agreement.
SPDs – key features: Request for Proposals
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New model RFP process that applies to Goods,
Works and Non-consulting Services.
Introduces:
Initial Selection
Applies rated criteria
Promotes performance based specifications
Encourages innovation and alternative solutions
Customized SPD for Competitive Dialogue
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Source of tender notices for IBRD/IDA Projects
United Nations Development Business @ devbusiness.com
World Bank’s external Website
http://www.projects.worldbank.org/procurement/procurementsearch?lang=en&qterm=P147348&srce=both
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Procurement App - For ipad
Finances - For ipad & iphones