EIB Procurement Policy and Best Practice

Size: px
Start display at page:

Download "EIB Procurement Policy and Best Practice"

Transcription

1 EIB Procurement Policy and Best Practice José Luis Alfaro, Head of Procurement 1

2 Best Practice Tender documents (I) The objective is to achieve an economic and efficient outcome, while respecting the principles of transparency and traceability, equal treatment and non-discrimination, international competition and proportionality. Procurement procedure must be tailored to the works, goods and services that are being procured. Design and build vs build only: including the design in the tendering is recommended for some PPPs and unique works (like a bridge), but not for simpler works (like road rehabilitation). 2

3 Best Practice Tender documents (II) International tender documentation, such as FIDIC conditions of contract, provide a good basis, as risks are properly allocated between promoter and contractor, and provide means to resolve disputes that will inevitably arise. Changes to the contract should mantain this proportional risk sharing. Tender documents should allow for some variation orders, as there will always be things that were not considered in the design. 3

4 Best Practice Procurement of services (I) Procurement of consultancy services for preparation and implementation of the works is extremely important, as they can save large amounts of money and problems at implementation phase. Lowest Price vs. Most Economically Advantageous: Lowest price can be used for standardized goods, or for works that can be precisely specified. Most economically advantageous is better for services or works that are difficult to specify in the tender documents. 4

5 Best Practice Procurement of services (II) Selection criteria should be proportionate to the size of the contract. Award criteria should reflect not only price but technical merit, i.e. qualification and experience of the staff assigned to perform the contract (not of the company). Award criteria, including weights of the different criteria should be fully established before opening bids. Qualifications and experience of the staff is key for a quality output that will save time and money in the long run. 5

6 Best Practice Procurement of works Prequalification criteria Proportionality on prequalification criteria is essential to allow a smooth implementation of the works. A balance must be achieved: Too low criteria will improve competition, but can lead to contractors that do not perform. Too high criteria ensures a competent contractor, but reduces competition, driving prices up. If administrative documentation is missing, clarification should be sought from bidders to ensure all competent bidders are prequalified. 6

7 Best Practice Procurement of works Bid Evaluation The use of the two envelope system allows a fair assessment of the technical and administrative compliance of the bid. Opening of the financial bids should only be done for technically compliant bids. Unsuccessful bidders should be fully informed of the reasons why they were disqualified, which will reduce complaints in the long run. Publication of the Award Notice in the OJEU is mandatory. Abnormally low tenders: a difficult issue 7

8 Best Practice General A proper procurement plan can save time and money in the long run, time spent planning is time saved later. Proper risk allocation will reduce prices and avoid delays, if contractors take risks, they will price them in their bids. Disputes will arise, having a system to deal with them (e.g. FIDIC independent engineer) is always easier, quicker and cheaper than going to court. If there is no national system for dealing with this, dispute boards can be a good option. A procurement process cannot be rushed, sometimes it takes time, but there are no good shortcuts. 8

9 Thank you for your attention. 9