WORLD BANK PROCUREMENT

Transcription

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

2 The World Bank Group GOVERNMENTS PRIVATE SECTOR IBRD IDA IFC MIGA ICSID Middle Income Countries Low Income Countries Foreign and Local Investors Tribunal

3 2019 Global Commitments by Region 11% 7% 30% 12% 24% 15%

4 Top Areas of Spend in FY16-18 (Worldwide) $10 to 15 Billion annually- 1,600 Projects in 132 countries Transportation 35% Water/Sanit/Waste 23% Energy & Extractives 17% 3.0% 2.1% 1.7% 4.3% 4.4% 4.7% 4.8% 17.2% 22.9% 35.0% Transportation Water/Sanit/Waste Energy & Extractives Public Admin Health & Social Services Agriculture Other Education Industry & Trade Services Social Protection 4 Source AO: BI Information as of February 26, 2019

5 Top Ten Procuring Borrowers (FY16-18) RANK COUNTRY CONTRACT VALUE (USD) 5 % OF TOTAL VALUE 1 India 4,667,253, % 2 Pakistan 2,408,199, % 3 China 2,224,762, % 4 Ecuador 1,927,528, % 5 Bangladesh 1,505,424, % 6 Egypt 1,388,332, % 7 Ethiopia 1,253,065, % 8 Ukraine 889,337, % 9 Kenya 806,961, % 10 Argentina 800,183, % Source AO: BI Information as of February 26, 2019

6 Top Ten Supplier Countries (FY16-18) RANK COUNTRY CONTRACT VALUE (USD) 6 % OF TOTAL VALUE 1 China 8,551,151, % 2 India 5,411,736, % 3 Spain 1,958,128, % 4 Brazil 1,634,399, % 5 Turkey 1,328,625, % 6 France 900,679, % 7 Bangladesh 698,423, % 8 Vietnam 602,102, % 9 Germany 589,927, % 10 Argentina 588,402, % 40 Austria 125,750, % Source AO: BI Information as of February 26, 2019

7 Top Ten Consulting Service Countries (FY16-18) RANK COUNTRY CONTRACT VALUE (USD) 7 % OF TOTAL VALUE 1 India 240,951, % 2 France 231,965, % 3 United States 167,901, % 4 Germany 147,741, % 5 Peru 134,189, % 6 United Kingdom 131,527, % 7 Russian Federation 105,666, % 8 Canada 104,631, % 9 Italy 88,186, % 10 Spain 87,655, % 44 Austria 18,295, % Source AO: BI Information as of February 25, 2019

8 AUSTRIA Overall Contracts Awarded Grouped by Value (US$) FY ,000,001 - Above 6 500,001-1,000, , , , , Source AO: BI Information as of February 27, 2019

9 AUSTRIA Contract Awards by Procurement Category FY16-18 (US$) $18M $22M $85M CIVIL WORKS GOODS CONSULTANT SERVICES 9 Source AO: BI Information as of February 27, 2019

10 AUSTRIA Sector Distribution of Awards (FY16-18) 0.6% 0.5% 9.2% 13.5% 30.9% 45.4% Energy & Extractives Water/Sanit/Waste Transportation Other Health & Social Services Agriculture $125 Million Energy & Extractives 45% Water/Sanit/Waste 31% 10 Source AO: BI Information as of February 27, 2019

11 Why bid on World Bank contracts? 11

12 The World Bank s New Procurement Framework Old Problems New Solutions 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 12

13 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 13

14 Project Procurement Strategy for Development 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 14

15 Abnormally Low Bids/Proposals (ALB/P) 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/P Clarify: Justify: Verify: Decide: The 5 stages in managing an ALB/P: Borrower seeks clarification from the bidder/proposer Bidder/proposer prepares a justification of the price Borrower analyzes the justification to verify if it provides reasonable explanation and validation of the price Borrower decides whether to accept or reject the bid/proposal. 15

16 Standstill Period, Debriefing and Complaints 16

17 Selection Methods 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 17

18 Characteristics of selection of consultants 18

19 Selection Methods for Consultants 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 19

20 How to Identify Contract Opportunities 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 General and Specific Procurement Notices on United Nations Development Business 20

21 Examples of upcoming projects Project Description Sector Country Amount ($m) Water Resources and Irrigation Project National Solid Waste Management Project (Nov 2019) Water Albania 27 Urban Azerbaijan 117 Education Modernization Project (April 2019) Energy Supply Reliability and Financial Recovery (April 2019) Education Belarus 103 Energy Georgia

22 Examples of upcoming projects Project Description Sector Country Amount ($m) Moldova Power System Development Project (April 2019) Enabling Digital Governance in Serbia Project (Nov 2019) Energy Moldova 70 ICT Serbia 50 Electricity Sector Improvement Project (Nov 2019) Rural Electricity Access Project (Dec 2018) Energy Angola 250 Energy Cameroon

23 Examples of upcoming projects Project Description Sector Country Amount ($m) One WaSH - Consolidated WaSH Account Project (May 2019) Electricity Access Project (Nov Apr) Water Ethiopia 300 Energy Malawi 150 Nigeria Digital Identification for Development Project (May 2019) Tanzania Development Corridors Transport Project (Mar 2020) ICT Nigeria 115 Transport Tanzania

24 Procurement & Finances Apps 24

25 Lessons from winning firms 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 25

26 Lessons from winning firms 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 26

27 Corporate Procurement: What the Bank buys 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 27

28 Corporate Procurement: Consulting Services The Bank Group procures services from Consultants to support its project work: Firms are contracted by the Bank Group and must be eligibleto become a vendor 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 at 28

29 Corporate Procurement: Vendor Registration 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 Learn more: gprocurement@worldbank.org general queries wbgeconsultant@worldbank.org consulting queries 29

30 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 30

31 Useful links for further information World Bank s Procurement Regulations for IPF Borrowers Standard Procurement Documents templates Guidance on SPDs Guidance on finding business opportunities and winning contracts financed by the World Bank Guidance on how to complain Video: World Bank Procurement, How to bid, finding opportunities, what makes a successful bid Procurement App for IPad: Data on contracts Procurement App for IPad: Data on projects, finances and procurement data UNDB Online