Bidders' Guide to Success in Public Procurement. A Hand Book. National Procurement Agency

Transcription

1 Bidders' Guide t Success in Public Prcurement A Hand Bk Natinal Prcurement Agency

2 P R E F A CE This "Bidders Guide t Success in Public Prcurement" is a hand bk emphasized all relevant and imprtant details in public prcurement and will be useful t enhance the knwledge f all bidders wh culd be treated as an imprtant segment in the public prcurement prcess. This effrt is t prvide with them a hand bk fr their easy reference by utlining the steps f which shuld be taken int cnsideratin and t prevent making errrs in submitting bids. We have bserved that the mst f the bidders are subject t make mistakes very ften and faced the results f rejectin f bids which will be an ultimate lss t the bidder as well as the Prcuring Entity. Therefre, all bidders shuld enhance their knwledge and be acquainted with the prcurement prcess by fllwing the 'Prcurement Guidelines 2006 (Gds & Wrks)', the 'Manual 2006' and the 'Standard Bidding Dcuments' (SDBs) which culd be dwn laded frm Thse bidders wh are invlved in submitting bids n pharmaceutical and medical trade shuld adhere t the guideline released by us n 'Prcurement f Pharmaceuticals & Medical Dev ises 2007'. I earnestly request t study and cmply with Gvernment Prcurement Guidelines in rder t ensure Transparency, Accuntability, Fair Cmpetitin and Value fr Mney thrugh efficient and effective Public Prcurement System f the Cuntry. Daya Liyanage Chairman/CEO Natinal Prcurement Agency

3 Bidders' Guidance t Success in Public Prcurement 1. Hw t knw abut Prcurement Cntracts 1.1 Advance Prcurement Ntice: Yu are advised t visit NPA web site ( and the Websites f the Gvernment Agencies regularly t btain advance ntices n future prcurement requirements. The Prcuring Entities (PE) are required t publish their advance prcurement ntices f large cntracts (Cabinet Appinted Prcurement Cmmittees and Ministry Prcurement Cmmittees) in the NPA website in additin t the ministry/agency website (Sri Lanka Gvernment Web Prtal) if any. Prcuring Entities are als slicited t publish the advance ntices f smaller value prcurement in the ministry/agency website. 1.2 Prcurement under Natinal Shpping (Qutatin) Prcedure Yu may get yur names included in shrtlists f suppliers/cntractrs, by respnding t the advertisements f the Gvernment Agencies requesting applicatins fr registratin and prviding necessary infrmatin t satisfy the criteria used by the PE. Subjected t the limits given in the Prcurement Manual the PEs are permitted t fllw prcurement using shpping prcedure. Where ever pssible, the invitatin fr qutatin will be sent t the cntractrs/suppliers wh are registered as mentined abve under the PE. These registratins are generally dne semi annually and annually. 1.3 Prcurement under Limited Bidding Prcedure Yu may infrm in advance f their specializatin (Gds/Wrks) t the ptential PEs and request the PE t invite bids when necessity arises. When there are nly limited suppliers fr certain gds r specialised cntractrs fr certain wrk are available, the PE may invite bids nly frm such bidders.

4 1.4 Prcurement under Natinal Cmpetitive Bidding Prcedure (NCB) Yu may btain infrmatin f bidding pprtunities n all NCB cntracts f Gvernment agencies frm the prcurement ntices published in the news papers/websites etc. Large number f prcurement under the Gvernment agencies will be dne by fllwing NCB prcedures. The PE must advertise each NCB prcurement in natinal papers, and wherever pssible in the websites. 1.5 Prcurement under Internatinal Cmpetitive Bidding Prcedure (ICB) Yu may cllect infrmatin n Sri Lanka ICB cntracts as 1.4 abve. In additin, thse wh are interested in participating in internatinal cntracts f ther cuntries may btain infrmatin frm internatinal publicatins r visiting their websites such as UNDB ( and DgMarket ( In additin t NCB prcedures, the PE is required t give internatinal publicity when ICB prcedures are used. There shuld be n barrier fr dmestic bidders t participate in ICB bidding prcedure, prvided preference what s ever shall be given t freign bidders. Hwever, the dmestic bidders and dmestically manufactured prducts shall be given dmestic preference as stipulated in the Prcurement Guidelines ; & Factrs t be cnsidered by the bidders befre participating in bidding (a) Make sure yu are nt a blacklisted cntractr: Defaulted r Blacklisted Cntractrs /Suppliers: Blacklisted cntractrs / suppliers are nt eligible fr the bidding and award f cntract;

5 (b) ICTAD registratin fr wrk cntracts: In the case f wrk cntracts, befre purchasing the bidding dcuments make sure that the ICTAD registratin requirements are fulfilled. A bid withut the specified ICTAD registratin will be rejected. In the case f wrk cntracts, t be eligible fr cntract awards, yu shuld have valid registratin under the natinal registratin and grading system f Institute fr Cnstructin Training & Develpment (ICTAD) as specified in the bidding dcuments n the date f submissin f bids as well as n the date f expiry f the riginal bid validity perid; In the case f wrk cntracts the PE is required t indicate the estimate f the cnstructin cmpnent in the bid invitatin;. (c) Qualificatin and Experience: Yu shuld be qualified t cmplete the wrks r supply the gds within the stipulated time perid. Yu shuld examine the experience and qualificatin required and magnitude f the cntract, t cmpare yur strengths with thse specified befre participating in the bidding prcess. The PEs are als advised t prvide sufficient infrmatin in the bid invitatin abut the scpe f the wrks/supply. This infrmatin will help yu t decide in the participatin fr bidding, cnsidering the magnitude f the wrks/supply and the current cmmitments. The bidding dcuments shuld als indicate the qualificatin, capacity and experience required fr the award f cntract. (d) Free examinatin f Bidding Dcuments: When in dubt, request the PE fr free examinatin f the bidding dcuments befre purchasing. The PE will allw any prspective bidder t examine the bidding dcuments free f charge prir t purchase the same. This may be allwed by the PE at ne lcatin r many lcatins as specified in the bidding dcuments. 3. Purchase f Bidding Dcuments (a) Lcatin: Yu may purchase bidding dcuments frm any f the lcatins specified. The PE may specify ne r mre lcatin/s fr selling f bidding dcuments.

6 . (b) Time: Yu shuld purchase the bidding dcuments nly during the perid and time specified in the bid invitatin. The PE will specify in the bid invitatin, during what time the dcuments culd be purchased. Generally the time will be limited t wrking hurs f the PE. The bidding dcuments shuld be made available fr purchase at least ne day prir t clsing f bids. (c) Fees: Yu shall make the payment in an amunt and manner described in the bidding dcument, prir t the purchase f bidding dcument. T purchase the bidding dcument the PE will specify a nn refundable nminal fee (t cver the expenditure invlve in duplicating a set f dcuments) t be paid by the bidder. (d) Dcuments: Yu shall prduce the dcumentary evidence t prve that the specified fee has been paid. The PE will request the bidders t submit dcumentary evidence t cnfirm that specified fee is paid. N ther dcuments with respect t qualificatin r experience will be requested as a cnditin fr purchase f bidding dcuments. (e) ICTAD Registratin: Yu shall submit dcumentary evidence t prve the ICTAD registratin in wrk cntracts tgether with the bid. Failure t submit this evidence may be a reasn fr rejectin. ICTAD registratin is nt a pre-requisite t purchase the bidding dcuments. Hwever, t be eligible fr cntract awards under wrk prcurement, yu shuld hld a valid and specified ICTAD registratin at the time f submissin f bids and at the last date f the riginal bid validity perid. If there are bjectins regarding the specificatins frm any bidder 10 days prir t clsing f bids, in case f Prcurements handled by CAPC, MPC & TEC may revisit specificatins. The PE shall cnvey its decisin t all bidders wh have purchased the bidding dcuments. (Please refer t Guideline 2.6 f Chapter 2 f GPG 2006 and 6.1 f the Prcurement Manual 2006)

7 4. Preparatin f Bids: Yu shuld prepare yur bids fllwing the instructin prvided in the bidding dcument. Yu are strngly advised t study carefully the instructins given in the bidding dcument with special attentin t the Instructin t Bidders and Bidding Data. Nn cmpliance f the cnditins given fr preparing the bid in the bidding dcuments may be a rejectin f the bid irrespective f the bid price. A substantially respnsive bid shuld be ne which cnfrms t all terms, cnditins and specificatins f the bidding dcuments, withut material deviatin r reservatin. These requirements given in first paragraph f this sectin will include (but nt limited t) the fllwing: (a) (b) (c) Scpe f Wrk: Nature f the wrk and under what circumstance the wrk has t be carried ut. Whether extra measures and csts are invlved in cmpleting the wrks within the time perid given ; Cmpsitin f the Bidding Dcument: Ensure that all the sectins listed in the bidding dcuments are received; It is yur respnsibility t ensure that yu have received all the dcuments listed in the bidding dcument; if any dcument is missing, yu must make a written request frm the PE t btain such dcuments ; Clarificatins: Study the bidding dcuments very carefully and makes clarificatin if any in writing. These clarificatins may be based n the restrictin f cmpetitin r fairness f specificatins as described in the bidding dcuments r may be related t nn cmpliance f the prcedures by the PE. Yu are entitled t receive respnses t any clarificatin made by yu, if such clarificatin is received by the PE befre the expiry f time perid specified in the bidding dcuments; Even if this perid is expired, yu can seek clarificatins any time befre clsing f bids. (d) Amendments t Bidding Dcument: If yu receive any amendments t the bidding dcument, acknwledge the receipt f the same and study such dcuments and incrprate the requirements in the preparatin f the bid. Request fr a time extensin t submit the bid, if material amendments are made t the bidding dcuments

8 (e) (f) (g) (h) Site Visits: Whether an fficial site visit is arranged by the PE r nt, visit the prject site very specially in wrk cntracts t gather mre infrmatin t have knwledge, under what circumstances and envirnmental cnditins the cntract will have t be perfrmed. Pre-Bid meeting: Participate at the Pre-bid meeting and make clarificatins and demand fr the minutes f such pre-bid meeting. Bid Currency: Use nly the currencies prvided in the bidding dcument fr pricing the bid. Use f nn specified currency may result the rejectin f bid. Bid Prices: T avid difficulties during the executin f the cntract, yur attentin shuld be made t the fllwing: i. When items have t be priced n different INCOTERMS under Gds cntract, study carefully the risks and bligatins invlved in the supplier befre prepare the price schedule. ii. Select the crrect price schedule in such situatins. iii. Generally in wrk cntracts, items fr which n rate r price is entered by yu, will nt be paid fr by the PE when executed and shall be deemed cvered by the ther rates and prices in the Bills f Quantities. iv. Fr Gds cntracts if it is stated that yu shall qute fr all the items nn pricing an item may be a reasn fr rejectin f the bid. v. Carefully examine the bligatins n the payment f taxes and duties and ther factrs that shuld be included in the item price. vi. Cnsider effect f bid validity perid t the price quted, especially when price fluctuatin clauses are nt included in the cntract. vii. Study the cntractual bligatins such as submissin f insurance plicies, perfrmance security, related services, furnishing f samples, tests, incidental expenses and manuals which are nt reimbursed directly under the cntract.

9 5. Submissin f Bids: (a) Include all relevant Frms and ther infrmatin requested with the Bid: i. Number f Cpies: The bid shall cmprise with the riginal and number f cpies as specified in the bidding dcuments; (Guideline 6.3.1C) ii. Bid Frm: The riginal and the cpy f the Frm f Bid shall be typed r written in indelible ink and shall be signed by a persn r persns duly authrized t sign n behalf f yu. Make sure the Frm f Bid is addressed t the entity specified in the Instructins t Bidders f the bidding dcument, duly filled with respect t amunt and validity perid and yur legal name is written crrectly; iii. Amendments if any made by yu: If alteratins r additins are made t the bid already prepared, initial such changes made by yu signing the Bid. iv. Authrity fr signature: Include dcumentary evidence fr authrity fr signature f the persn r persns wh have signed the Bid, where requested in the bidding dcument; v. Bid Security: Enclse the riginal f the Bid Security tgether with the riginal f the Bid; Make sure the Bid security is cmplying with the fllwing (any critical departure t the frmat given, may be a rejectin f bid at the preliminary examinatin itself, irrespective f the bid price): frmat is the same as that issued with bidding dcument; issued by an agency prvided in the bidding dcument; the amunt f the bid security is nt less than the amunt specified; and Validity date is equal r beynd the date specified.

10 vi. Eligibility: Infrmatin required fr the eligibility f the bidder (ICTAD registratin, Business registratin, Jint venture infrmatin etc.) (Please refer t Guidelines 5.3.4; 5.3.5; & f GPG 2006) vii. Qualificatin and Experience: Prvide all infrmatin requested t establish that yu are qualified and experienced t perfrm the cntract, as requested in the bidding dcument; viii. Dmestic Preference: When dmestic preference is allwed in bid evaluatin make sure t include all the infrmatin required t establish that yu are entitled fr dmestic preference. (as per Guidelines 7.9.4; & f GPG 2006) ix. Test certificates: Include all test certificates if requested in the bidding dcuments; x. Prgram: Include a prgram f implementatin in the details required in the bidding dcuments; xi. Resurces: Include a cmprehensive infrmatin n men, finances and equipment that yu will utilize fr cntract implementatin, if requested in the bidding dcument. (b) (c) (d) Alternative Bids: Nte that alternative bids can be submitted nly if specifically stated in the bidding dcument. If an alternative bid is submitted, fllw the specific instructins given. In many cases, it is required t submit a bid cmpliance with the riginal requirements t cnsider the alternative bid. The alternative bid may require a separate frm f bid t sign and a separate bid security. Cnditinal Bids: Cnditinal bids in many cases are subjected t rejectin. If any cnditin is stated in the bidding dcument, make sure, it will nt affect the substantial respnsiveness f the bid; many cnditins may lead t nn respnsive f the bid. Sealing and Marking f Bids: Enclse the riginal and cpies f the bid as instructed and write all relevant infrmatin in the respective envelpes and sealed the bids as instructed;

11 (e) Deadline fr submissin f Bids: Have very clear advance knwledge abut the exact bid receiving lcatin. Always make an effrt t be at the place sufficient time ahead f the fficial clsing time t avid discrepancy in times f different clcks. Bids shall be submitted t reach the PE befre the deadline fr submissin f bids. Despite yu are allwed t mail, hand deliver r depsit in a bx, it is yur respnsibility t submit them befre the deadline. Late bids will be returned unpened. 6. Bid Opening: (a) The PE will pen bids nly in ne lcatin; (b) Yu are highly encuraged t participate at bid pening; It is always advantage that a persn wh is knwledgeable n the enclsures f the bid t participate at bid pening; (c) Ensure that the bid is pened at the bid pening, the prices and discunts are crrectly annunced; a bid nt annunced at the bid pening may nt be cnsidered fr evaluatin; (d) Mark the attendance when requested by the PE. 7. Bid Evaluatin (a) Nte that the PE will cnsider nly the infrmatin, yu have submitted alng with the bid, unless specifically requested by the PE; (b) Any infrmatin received frm yu will nt be cnsidered fr evaluatin, even if it was registered prir t clsing f bids but PE received after clsing f bids. (c) Be prmpt t prvide any further infrmatin r clarificatin requested by the PE (d) Any attempt made t influence the evaluatin prcess may be a reasn fr rejectin f the bid; (e) If a request is received frm the PE t extend the validity f the bid if yu decide t retain in the cmpetitin, extend the validity f the bid befre the expiry f the riginal bid; (f) If the validity f the bid is extended, it may be required t extend the validity f the bid security;

12 (g) Be ready with initial wrks, such as recruitment prcedure f staff if necessary, specialized equipment, material supply and prgramming, in case yu are expecting t be the successful bidder. Fr further details n bid evaluatin, yu may refer t & f the Prcurement Manual 2006 which is n the NPA Website. 8. Cmmunicatin f Intentin f Cntract Award t the Bidders and Appeal Prcedure In the case f cntracts where the determinatin f cntract award was made by Cabinet Appinted Prcurement Cmmittee r Ministry Prcurement Cmmittee, the Secretary f the ministry will infrm yu in writing regarding the intentin f cntract award t the selected bidder, t make yu representatins against the determinatin made, if any. 8.1 The determinatin made by Cabinet Appinted Prcurement Cmmittee Any bidder s wishes t make representatin is required t submit its appeal within ne week f the ntificatin by the Secretary, t the Prcurement Appeal Bard (PAB) at the fllwing address: The Chairman Prcurement Appeal Bard Presidential Secretariat Clmb 01 A cpy f the Appeal shuld be submitted t the Secretary f the Ministry. A bidder making such an appeal is required t depsit Rs.50,000/- in a depsit accunt maintain at the Presidential Secretariat and attach a cpy f the receipt tgether with the appeal. The appeal shall cntain all material required t supprt the averment and shall be self-cntained fr the PAB t arrive at a decisin.

13 8.2 The determinatin made by Ministry Prcurement Cmmittee Any bidder s wishes t make representatin is required t submit its appeal within ne week f the ntificatin by the Secretary, t the Secretary f the Ministry. A bidder making such an appeal is required t depsit if s specified in the bidding dcument and attach a cpy f the receipt tgether with the appeal. The appeal shall cntain all material required t supprt the averment and shall be self-cntained fr the Secretary t arrive at a decisin. 9. Debriefing After the ntificatin f cntract award, if yu wh wishes t ascertain the grunds n which yur Bid was nt selected, shuld address yur request t the PE. In such a situatin the PE shuld discuss nly such Bid and nt the bids f ther cmpetitrs. 10. Frmatin f the Cntract and signing Cntract Agreement Prir t expiratin f the bid validity perid, the Emplyer will ntify the successful bidder that his Bid has been accepted. The ntificatin f award in many cases will cnstitute the frmatin f the Cntract. Make sure that the cntract agreement will incrprate the memrandum f understanding if any, between the Emplyer and the successful bidder, befre the cntract signature. 11. Immediate bligatins t cmmence the Wrk: Make arrangements t submit the perfrmance security in time; Obtain and submit the required insurance in time; Take ver the site Make arrangements fr the security f the site and persnnel

14 12. During Cntract Executin Submit the advance payment Guarantee and btain the advance Submit interim claims mnthly t avid lsses in price reimbursement claims; Always keep cmmunicatin in writing; Prvide timely ntice and warning t the Emplyer n any delay Keep recrds right frm the beginning. Obtain all certificates frm the Engineer and the Emplyer as apprpriate. SPECIAL 1. Check very carefully all the dcuments including bid security against bid dcuments since mistakes dne in bidding can be very expensive. 2. Opprtunities prvided at befre pening and pre-bid meetings shuld be made use f as subsequent changes t cnditins and specs are nt pssible.

15 Be vigilant; Be successful Fr Mre Infrmatin Natinal Prcurement Agency Lev el-22,west Tw er Wrld Trade Centre Clmb 01.