Documents-Training Modules-General-Procurement Training Manual. Module B. Participant Book (RB) - 18.11.09
Documents-Training Modules-General-Procurement Training Manual. Module B. Participant Book (RB) - 18.11.09
Documents-Training Modules-General-Procurement Training Manual. Module B. Participant Book (RB) - 18.11.09
DRAFT
Procurement Module B
Training Material
(Step 4: Implement Work Plan and Budget)
Participants Book
November 2009
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Contents
Insert after all final changes and additions have been made
Agreement.............................................................................................................. 119
Payment Schedule:................................................................................................. 121
Appendix To Agreement.......................................................................................... 122
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Bill of Quantities
Expression of Interest
International Competitive Bidding
Internationally accepted definitions of trade terms e.g. CIF, FOB etc issued by the
International Chamber of Commerce
Instructions to Bidders
Instructions to Consultants
Least Cost Selection
Letter of Invitation
Ministry of Interior and Local Government
National Competitive Bidding
Public Private Partnerships
Quality Based Selection
Quality and Cost Based Selection
Request for Proposals
Request for Quotations
Restricted Tendering
Standard Bidding Document
Special Conditions of Contract
Terms of Reference
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1. INTRODUCTION
1.1.
Background
Procurement is one of the key support functions in the public service. Effective
and efficient delivery of public goods and services by the core
functions/departments of the local government depend to a large extent on the
effectiveness and efficiency of the procurement function. Therefore
strengthening public procurement systems in the local government in Puntland is
expected to contribute to improved governance and service delivery.
The preparation of these procurement guidelines for local government in
Puntland has come in response to an assessment of the existing procurement
practices and systems in the districts. Among the issues identified by the
assessments include: weak legal and institutional framework; absence of clear
guidelines; overlap of duties and responsibilities in relation to procurement;
weak transparency and accountability and a general lack of awareness of the
procurement procedures.
The lack of a strong procurement profession and inadequate training of staff has
led to failure to employ good practices in procurement, creating inefficiencies
and high costs to the districts. A general lack of understanding of the procedures
or non compliance further creates opportunities for corruption and inefficient use
of public funds. The inefficient use of funds can be generated from problems
across the entire procurement process-from the poor procurement planning,
definition of the needs and creation of the bidding documents, to a lack of
transparency and competition in the process followed for announcements,
bidding, evaluation and award of contracts, to poor contract supervision.
Effective procurement guidelines and step-by-step procedures are required to
assist district staff involved in the procurement process to perform their duties
effectively and efficiently. The guidelines have been prepared based on best
practices in public procurement to assist the districts to improve their
procurement systems.
Following the preparation of procurement guidelines a set of training manuals
have been developed for use in training local government staff in the districts
who are dealing with procurement on a day to day basis. The training manuals
consist of two parts: the participants manual and trainers manual. The trainers
manual is designed to guide those who will facilitate training to conduct the
training sessions.
1.2.
Purpose of Training
The purpose of this training is to provide participants with a clear understanding of
effective public procurement and the generic procurement process and to provide
participants with the capacity to plan, implement and evaluate a procurement
process appropriate to the goods or services being procured.
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1.3.
Learning Outcomes
By the end of the training the participants will be able to:
1.4.
Symbols used in this handbook
To assist participants in using this handbook effectively, the following symbols have
been used:
Shaded box
remember
1.5.
Training Modules
This training module is organized in three modules units as follows:
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DRAFT
Implementation and Procurement Module B - Training Overview
Unit
1.
Understanding
the
Procurement
Environment
Session
Introduction Session
(30 mins)
Components
Introductions, welcome, aims
and objectives of the training.
Session objectives
Introduction
Procurement in districts
Objectives of procurement
Categories of procurement
Principles of public procurement
Good Practices
Roles and responsibilities
3. The procurement
(90 mins)
4.
Procurement
Methods
(75 mins)
Session objectives
Definition and purpose
Transparency and integrity
Procurement ethics
Examples of unethical conduct
Corruption
Session objectives
Procurement Cycle
Procurement planning
Forecasting and budgeting
Annual procurement plan
Session objectives
Procurement Methods
Methods
of
selection
and
employment of consultants
Procurement under PPP
Community participation in
procurement
1. Principles of Public
Procurement (95
mins)
2. Ethical and
Integrity Issues in
Procurement (75
mins)
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Unit
2.
Procurement of
Goods,
Services
and Works
Session
1. Supply Market
Analysis (80 mins)
2. Specifications (80
mins)
3. The Tendering
(Bidding) Process
(120 mins)
Components
Session objectives
Introduction
Definitions of a market
Reasons for market analysis
Sources of Market Information
The process of supplier
appraisal
List of approved suppliers and
contractors
Categories of registration
Supplier performance
monitoring
Session objectives
Introduction
Types of specifications
Standards
Checklist for specifications
Quality
Approval of specifications
Session objectives
Introduction: What is Tendering
Need for tendering and its
application
Tendering procedures
Preparation stage
Invitation to tender and
advertising stage
Cancellation of bidding process
Response management stage
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Unit
Session
4. Supplier Evaluation
and Selection (120
mins)
5. Negotiation (80
mins)
6. Orders and
Contracts (80 mins)
Components
Session objectives
Introduction
Tender Evaluation Committee
Evaluation of Bids
Selection of Suppliers
Comparison and ranking of bids
Post qualification of bids
Evaluation report and
recommendation
Approval of recommendation of
tender award
Rejection of all bids
Session objectives
Introduction and Definition
When to negotiate
The negotiators (negotiation
team)
The negotiation process
Session objectives
Introduction
Definition of a contract
Supplier/provider obligations
Local Government obligations
Preparation of contracts
Tender committee approval of
contracts
Types of contracts
Types of contract agreements
for employment of consultants
Awarding contracts and
notification to bidders
Local Purchase Orders
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Unit
3.Contract
Management
Session
1. Contract
Management (90
mins)
Components
Session objectives
Introduction
Contract effectiveness
Contract supervision and
administration goods
Contract supervision and
administration - works
Contract supervision and
administration services
Contract performance
Procurement reporting
Procurement Monitoring and
Evaluation
Evaluation Session
(30 mins)
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Define procurement;
2.2.
Introduction
WHAT IS PROCUREMENT?
2.3.
Procurement in Districts
The overall responsibility for the execution of the procurement process in the district
rests with the District Executive Secretary. Each district is required to establish a
District Tender Committee that will handle all matters concerning the procurement
of goods, services and works. The District Tender Committees have powers to award
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contracts for procurement of goods, services and works. The district tender
committee shall consist of:
Chairperson, who shall be one of the heads of department or a person of similar
standing and who shall be appointed by the Executive Secretary;
The Secretary shall be the Procurement Officer (head of the unit responsible for
procurement), appointed by the Executive Secretary;
Three other members who are heads of department or persons of similar
standing within the district, appointed by the Executive Secretary.
2.4.
Objectives of Procurement
The objectives of procurement in the local government are:
To provide the local government with a constant flow of goods, services and
works to meet its needs.
2.5.
Categories of Procurement
Procurement can be categorized into the following:
2.6.
Principles of Public Procurement
The overall objective of the public procurement system is to provide value for money
to the districts by ensuring that public funds are spent in a transparent, efficient and
fair manner. These guidelines incorporate policy provisions and procedures to
promote competition, fairness/equity, transparency, accountability and ethics, and
value for money.
The basic principles for the procurement of goods, services and works, within the
public sector are:
Transparency:
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Procurement process should be conducted in such a way that there is openness
and clarity on procurement policy and all interested parties know and understand
the actual procedures and processes by which contracts are awarded and
managed.
Accountability:
The
public
officials
who
are
dealing
with
procurement
activities
have
Equal Treatment/Fairness:
An efficient public procurement system should give all participants an equal
chance to compete and by avoiding discrimination among potential bidders.
Potential suppliers should be treated equally and with utmost fairness throughout
the contract award process.
Appeal rights:
Potential suppliers should be provided with a mechanism for review of grievances
and correct failures of the system.
Integrity:
The public officials responsible for procurement activities should not involve
themselves in corruption or collusion with suppliers or others.
Competition
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Procurement should be carried out by competition unless there are convincing
reasons to the contrary. Public procurement system should be able to attract high
quality national and international suppliers and contractors capable of meeting
government needs through competitions.
2.7.
Good Practices
2.8.
? Who are the key players in procurement in local government and what are
the roles and responsibilities of each key player?
The roles and responsibilities of various parties are summarized in the table
below:
PLAYER
Ministry of Interior and Local
Government (MOILG)
PROCUREMENT RESPONSIBILITIES
Overall
coordination,
direction
and
development of procurement practices and
procedures in Local Government;
Professional development and training of staff
and officials engaged in procurement;
Independent
review
of
procurement
complaints by aggrieved bidders, suppliers and
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PLAYER
The District Tender Committee
PROCUREMENT RESPONSIBILITIES
Executive Secretary
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PLAYER
PROCUREMENT RESPONSIBILITIES
Procurement Unit
contractors or consultants.
Ensuring that the implementation of the
awarded contract is in accordance with the
terms and conditions of the award.
Managing all procurement activities of the
district except adjudication and the award of
contract.
Provide secretariat services and advice to the
District Tender Committee.
Implementing the decisions of the District
Tender Committee.
Planning the procurement activities of the
district.
Recommending procurement procedures.
Preparing Tender Documents.
Preparing
advertisements
of
tender
opportunities.
Respond to requests for clarifications from
bidders;
Preparing contract documents.
Ensure that all contractual obligations of the
District are performed promptly and efficiently;
Register
and
maintain
warranties
and
retentions;
Notify the supplier immediately of any failings
in performance of his obligations;
Process claims against retentions
Monitor delivery schedules and the inspection
and certification of delivery or performance
Coordinate the process for payment to
suppliers
Maintaining and archiving records of the
procurement process.
Maintain a Register of pre-qualified suppliers.
Carry out any other associated procurement
tasks as assigned by the Tender Committee.
Technical assessment of all bids, ranking them
in order of quality and responsiveness;
Report on the technical and commercial
compliance of each bid in a technical
evaluation;
Analyse the financial bids and report the
results in a financial evaluation; and
Prepare an Evaluation Report, including
justified recommendations for rejection of bids
and for the award of contract, for approval by
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PLAYER
User Departments
PROCUREMENT RESPONSIBILITIES
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yes agree.SESSION 2:
PROCUREMENT
Identify the major forms, reasons and measures for preventing corruption in
the procurement system.
WHAT IS ETHICS?
Most people tend to define ethics as being primarily concerned with
issues such as bribes and confidentiality. However, ethics is concerned
with values which is a general term relating to those things which people
regard as good, bad, right, desirable or justifiable.
In summary, ethics is concerned with the moral principles and values
which govern our beliefs, actions and decisions.
Ethical principles require all those involved in procurement to perform their duties
with integrity.
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WHAT
IS
INTEGRITY?
The quality of being honest and having strong moral principles.
Not
corrupt or biased.
The purpose of ethics in LGA procurements is to ensure that decisions are neither
tainted nor appear to be tainted by any question of conflict of interest. Procurement
should be based on objective criteria.
To start this session, we will do an activity where you are given an opportunity to
reflect on some of your own views on ethics and integrity and how they apply to
your role as a Local Government Officer
It is often difficult to think about our views and actions in our everyday lives and how
these might relate to concepts like ethics and integrity.
This activity asks you to read some statements related to ethics and indicate how
much you agree or disagree with them.
Note that this activity is not a test and you do not have to share your answers with
anyone. In this way, the more honest you are in your answers, the more you will
benefit from the exercise.
Your trainer will guide you in this activity with further instructions and explanation.
You will need to refer to Activity Sheet 2 at the end of this Participant Book
DRAFT
members of public and must conduct procurement proceedings in such a manner
that district is respected and trusted as a client or customer.
In order to ensure
Honesty
among
district
staff,
tender
committee
members
and
Business gifts should not be accepted from current or potential suppliers and
contractors of the district;
To enhance the ethical conduct and transparency of staff and tender committee
members and employees of the district should not be suppliers/contractors of the
district either directly or indirectly.
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3.5 Examples of Unethical Conduct
Revealing
confidential
or inside information
either directly
or
Discussing
or
accepting
future
employment
with
bidder
or
prospective bidder;
Requesting
any
other
public
servant
or
government
official
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3.6 Corruption
This is the use of public power for private gain.
Promotes nepotism;
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4. SESSION 32: PROCUREMENT CYCLE AND PLANNING
4.1 Session Objectives
By the end of the session, the participants should be able to:
Stage 1
Identificatio
n of
procuremen
t needs
Stage 2
Stage 3
Stage 4
Stage
5
Define the
Specificatio
n and the
Procuremen
t approach
Supplier
Selection
Tender
evaluation
and
Contract
award
Manage
the
contract
Stage 6
Contrac
t review
contain?
2. Why is it necessary to plan for your procurement requirements?
3. What information do we need in order to accurately forecast our
procurement requirements?
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procurements.
Procurement planning help to avoid emergency procurements and splitting of
procurements to defeat the use of appropriate procurement methods unless such
into
larger
procurements at lower unit costs, rather than frequent sourcing of quotations for
DRAFT
Forecasting and Budgeting Procurement Requirements
A district can use two possible methods to forecast requirements:
Bills of Materials. Bills of materials for the various goods/services required are
used to forecast the procurement requirement.
Past Consumption Analysis. This is used for items that have an independent
demand which are consumed on a continuous basis, for which no bills of
materials is possible. Analyse past consumption data and project the future.
2.2.
An Annual Procurement Plan
This is in form of an annual work plan used by a district to schedule procurements
for the whole year. It may include among others:
Projected funding;
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Receive, review and recommend changes where necessary, and approve the
annual procurement plan and forward a copy to the MOILG.
2.3.
Procurement unit actions
The Procurement Unit has the task of compiling the costed annual procurement plan
from the individual departments, units, projects and programmes of the district. The
procurement unit is responsible for issuing detailed instructions to the heads of the
user departments, units, projects and programmes on the format and content of
submissions for the Procurement Plan.
Other responsibilities of the procurement unit in relation to preparation of an annual
procurement plan include to:
Receive submissions, check quantities and costing, obtain clarifications and other
responses to any queries, analyse and compile all submissions into a
and approval.
Make adjustments to the plan according to service priorities as recommended by
for approval.
Notify individual Heads of departments, units, projects and programmes of their
approved procurement plans and annual procurement budgets.
2.4.
Heads of departments
The heads of departments are required to ensure the analysis and preparation of
Annual Procurement Plans for their own and subordinate areas of control.
All planned procurements of goods, works and services for the next financial year
proposed procurements for the new financial year by quantity and cost.
Respond to any queries raised by the Procurement Officer on requirements
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You will need to refer to Activity Sheet 3 at the end of your Participant
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I have tried to do a basic example to illustrate what a completed procurement form might look like. Please make
corrections or additions where necessary.
Input needed: It would be good to complete this form with a couple of other example projects (eg 1 works project, 1
services and 1 goods) so that participants can see what a completed procurement plan looks like.
Have also included a blank one of these at the end of the Participant Book as Activity Sheet 3, so that participants
can do the activity where they fill in a procurement plan for their own district.
. Financial Year
Pre-Qualification
Description /
Code
Tende
r No.
111
Basic Data
Est.
Proc.
Amount
Metho
Sshs.
d1
900,00
0
NCB
Bidding
Document
Invitation
Evaluation
Prep
arati
on
Approv
by
Tender
Comm
Date
of
invit
ation
Closi
ng
Date
Submissi
on of
report
Approv
by
Tender
Comm
7/05
14/05/
15/0
15/0
22/06/
25/06/
/10
10
5/10
6/10
10
10
Bid Doc
Prepared
Tender
Committ
Approval
Adver
t
Bid
Open
Evaluation
report
Submission
Tender
committ
appr/
contract
award
Date of
contract
sign.
7/05/10
14/05/1
15/05
15/06
22/06/10
25/06/
30/06/
/10
/10
10
10
Contract
amount
Sshs
Delivery/
Impleme
ntation
Plan
vs.
Act.
900,000
30/09/1
Plan
0
Actual
Plan
Actual
Plan
Actual
Plan
Actual
Plan
Actual
Plan
Actual
Plan
Actual
Procurement method could be any of the following; national competitive tendering, international competitive tendering,, selective
tendering,, competitive quotation, single source, direct procurement, minor value, and force accounts.
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What is the main type of procurement usually conducted in your district and
what are the reasons for using this method?
3.3.
Procurement methods
The Local Government Procurement Guidelines requires that procurement of
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3.3.1.
National Competitive Bidding
National Competitive Bidding (NCB) as a procurement method is to be used when
the district does not intend to invite foreign suppliers or contractors to participate in
tendering proceedings. Under this method the district is required to invite suppliers,
service providers or contractors regardless of their nationality, by means of a tender
advertised only in the national press. Foreign firms wishing to participate are
markets;
The estimated cost of the goods, works or services is small and does not exceed
bid;
3.3.2.
International Competitive Bidding (ICB)
ICB is mostly used when the participation of foreign suppliers or contractors in
tendering proceedings is intended. Under this procurement method a district is
required invite suppliers or contractors regardless of their nationality through the
tender notice that is advertised nationally and internationally.
ICB should be used in the following circumstances:
currency;
Where it is desired to attract tenders from a widest range of suppliers or
contractors, regardless of the estimated value of goods or works be to procured;
and
Where the goods, works or services by their nature or scope, are unlikely to
attract adequate local competition.
There are no procedural differences between ICB and NCB apart from
DRAFT
3.3.3.
Restricted bidding
Restricted tendering (RT) is a process of direct invitation to a shortlist of prequalified,
pre-registered or known suppliers. This may directly follow a formal pre-qualification
of suppliers for the specific requirement. It is an appropriate method of procurement
where:
The estimated contract values are within the limit for restricted tendering;
The requirement is of a specialised nature or has requirements of public safety,
Under restricted bidding, the district will invite bids from a list of prequalified suppliers broad enough to assure competitive prices, and
including all suppliers when there are six or less. Open Competitive
Bidding procedures shall apply in all respects, other than advertisement
being replaced by direct invitation to a shortlist of bidders. Restricted
bidding also includes requests for proposals for services, as the method to
be used for the procurement of consultant services.
3.3.4.
Request for quotations (RFQ)
This is also known as shopping and is based on comparing price quotations
obtained from several suppliers, usually at least three, to ensure competitive prices.
Shopping method is appropriate for procuring readily available off-the-shelf goods or
standard specification commodities that are small in value. A district tender
committee may approve for competition to be invited through request for quotations
where it has been determined that:
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standard
specification
DRAFT
Before this method can be used, the list of the suppliers to be contacted has to be
submitted to the tender committee for approval and once approved the request for
quotations should to be sent to all approved suppliers simultaneously.
3.3.5.
Single Source/direct contracting
This is a procurement method where goods are procured directly from a single
supplier or manufacturer. The use of single source procurement method should be
approved by District Tender Committee and the district should secure a specific
waiver by the MOILG. Single source procurement method can be used in the
following circumstances:
When only one supplier has the exclusive right to the manufacture of the goods,
carry out the works, or perform the services to be procured, and no suitable
alternative is available;
For additional deliveries of goods by the original supplier which are intended
either as parts replacement for existing goods, services, or installations, or as the
extension of existing goods, services, or installations where a change of supplier
would compel the district to procure equipment or services not meeting
or economic reasons;
There is extreme urgency, provided the circumstances which gave rise to the
urgency were neither foreseeable by the district nor the result of dilatory conduct
on its part;
The services require that a particular consultant be selected due to his unique
qualifications, or when it is indispensable to continue with the same consultant.
3.3.6.
Force Account
Force account is construction by the use of public or semi-public agencies, or
departments concerned, where the public or semi-public agency has its own
personnel and equipment. The use of force account or direct labour may be justified
where:
Required works are small and scattered or in remote locations for which qualified
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contractor;
There are emergencies needing prompt attention.
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4. A flash flood in the west of Somaliland resulted in the collapse of a bridge, which
is part of a highway linking outlying towns to the main market centre in the district.
The District Council has an urgent need for procurement of works in order to repair
the bridge as soon as possible.
Which procurement method can be used in such a situation? Why?
..
.....
...
3.4.
Methods of Selection and Employment Consultants
The procurement of consultant services is a specialised form of procurement
requiring bidding procedures and documents which are very different to those for
standard goods and works. The use of merit-point evaluation systems and twoenvelope bidding procedures are routine features in the procurement and selection
of consultants. Selecting consultants for long or complex assignments on the basis
of cost alone is unlikely to achieve the required quality of services.
3.4.1.
Merit-Point Systems
A merit point system uses a point-scoring basis to determine the winning bidder.
Points are awarded for technical capability and usually for the financial cost,
according to criteria specified in the Request for Proposals. The bidder scoring the
highest number of points is usually recommended for the award of contract.
Where cost is a factor in selection, technical quality for consultancy assignments is
normally awarded 80% of the total points and cost 20%. However this is only a
guideline and the appropriateness of the weighting of the technical and financial
scores should be assessed for each assignment.
Merit point systems can also be used to evaluate whether bids pass a minimum
technical score to proceed to a final financial evaluation (Least Cost Selection
Method). The financial envelopes of all bidders whose bids pass the minimum
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technical score are then opened, and the bid with the lowest price recommended for
award of contract.
3.4.2.
Two-envelope bidding
To avoid any chance of the bidders price influencing the technical evaluation under
a merit point system, financial bids are submitted in a separate sealed envelope.
The financial envelope must only be opened after the technical evaluation is
completed and approved by the tender committee. In the interests of transparency,
a second public opening of the financial bids of those bidders who have passed the
technical evaluation stage is held.
3.4.3.
Quality and Cost Based Selection (QCBS) Method
Quality and Cost Based Selection (QCBS) is the standard method of selecting
consultants through competition between pre-qualified short-listed firms. Selection
is based on the technical quality of the consultants, the quality of the proposal, and
on the cost of the services to be provided. The relative weights given to the
technical quality and cost of each proposal are determined for each case depending
on the nature of the assignment.
3.4.4.
Quality-Based Selection (QBS)
Quality Based Selection (QBS) may be appropriate for complex or highly specialised
assignments, or those which invite innovations. The selection is based solely on the
quality of the proposal without consideration of the cost. QBS is suitable for the
following types of assignments:
reforms);
Assignments that have a long term impact and in which the objective is to have
the best experts available (for example, feasibility and structural engineering
design of such major infrastructure as large dams, policy studies of national
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policy studies in which the value of the services depends on the quality of the
analysis).
The Request for Proposals (RFP) should not indicate the estimated budget, but may
provide the estimated number of key staff and time, specifying that this information
is given as an indication only, and that consultants are free to propose their own
estimates. The RFP may require submission of a technical proposal only (without a
financial proposal), or request submission of both technical and financial proposals
at the same time, but in separate envelopes (two-envelope system). Only the
financial envelope of the highest ranked technical proposal is opened. The rest are
returned unopened to the bidders, after the negotiations are successfully concluded.
If technical proposals only are invited, after evaluating the technical proposals the
Consultant with the highest ranked technical proposal will be invited to submit a
detailed financial proposal. The District and the Consultant shall then negotiate the
financial proposal and the contract.
3.4.5.
Selection under a Fixed Budget
Fixed Budget Selection (FBS) is where the District seeks to obtain the best technical
proposal from pre-qualified short-listed consultants within a pre-determined budget
limit. This method is only appropriate when:
The RFP will indicate the available budget and request the consultants to provide
their best technical and financial proposals in separate sealed envelopes, within the
stated budget. The TOR must be carefully prepared to ensure that the budget is
sufficient for the consultants to perform all of the expected tasks.
Technical proposals will be evaluated and bidders who pass the minimum technical
score will be invited to a public opening of their financial envelopes.
Bidders whose technical proposals fail to meet the minimum technical score will
have their financial envelopes returned unopened. Any financial proposals that
exceed the indicated budget shall be rejected. The Consultant who has submitted
the highest ranked technical proposal within the budget will be selected for award of
contract.
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3.4.6.
Least-Cost Selection
This method is more appropriate to selection of consultants for assignments of a
standard or routine nature (audits, engineering design of noncomplex works, and so
forth) where well-established practices and professional standards exist, and when
the contract value is small.
A minimum qualifying score for the required quality is established and is stated in
the RFP. Shortlisted bidders are required to submit technical and financial proposals
in separate envelopes. Technical envelopes are opened first and evaluated. Those
bids scoring less than the minimum qualifying score are rejected. The financial
envelopes of the remaining bidders are opened in public. The firm with the lowest
price is selected for contract award.
3.4.7.
Selection Based on Consultants Qualifications
This method may be appropriate for very small assignments where the need for
submission and evaluation of detailed competitive proposals is not justified.
Expressions of interest and information on the consultants experience and
competence relevant to the assignment are requested. The firm with the most
appropriate qualifications and references is selected. The selected firm is invited to
submit a combined technical and financial proposal, and then invited to negotiate
the proposal and the contract.
3.4.8.
Single-Source Selection
Single-source selection of consultants lacks the benefit of competition in regard to
quality and cost, is not transparent in selection, and may encourage unacceptable
practices. Therefore, single-source selection should only be used in exceptional
circumstances. The justification for single-source selection must be examined
carefully to ensure economy and efficiency. The conditions for the use of direct
procurement should be noted before using this selection method.
Single-source selection is only appropriate if there is a clear advantage over
competitive selection:
for tasks that are a natural continuation of previous work carried out by the firm;
where rapid selection is essential (for example, in an emergency situation);
for very low value assignments;
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when only one firm is qualified or has the necessary experience for the
assignment.
3.5.
Procurement Under Public Private Partnership (PPP)
Public Private Partnerships shall include the following forms or combinations of
them;
service
contract,
management
contract,
leasing,
joint
ventures,
partnerships, Build Operate Transfer, Build Own Operate, Design Build Operate
Finance and concessions. Services for which there are no governmental, legal or
operational limitations that dictate they must be performed by public sector
employees,
may
be
outsourced
under
the
private
sector
participation
ensure that it has the expertise within that district to proceed with a public
private partnership;
appoint a project officer from within or outside the procuring entity; and
appoint a transaction advisor.
For public private partnership project, the district shall undertake a feasibility
study in order to:
confirm affordability of the project for the district if it will incur any financial
commitments;
establish factors that will determine value for money;
assess the potential of a public private partnership to deliver value for
money;
identify the form(s) of public private partnership most likely to deliver for
procurement stage;
provide a sound basis for the district to decide on procurement approach;
set out the proposed allocation of financial and technical risks between the
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associated costs;
presenting an analysis of the suitability of contracting out current service
The district shall not proceed with the procurement phase of a public private
partnership or private
sector participation project if the feasibility study indicates that the proposed
project will not provide value for money or improve the quality of the public
service.
The district shall advertise the request for qualification in the form of the specific
procurement notice in at least one newspaper of wide and general circulation in
Puntland, in any international newspaper as may be directed by the appropriate
tender committee, and may additionally advertise in well known technical
magazines or trade publications.
The notification of the request for qualification shall be done at the same time as
the advertisement in the local newspapers, and shall be given in sufficient time
to enable prospective tenderers to obtain request for qualification documents,
prepare and submit their responses. The notification of the request for
qualification shall contain the following:
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project;
A high level definition of the project;
Identification of the specific location where interested parties may obtain a
copy of the request for qualification, the dates and times during which the
request for qualification will be available, including any costs for obtaining a
copy;
A declaration reciting the date, time and place where the request for
DRAFT
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The shaded boxes below are taken from the guidelines and also give some
information on how to decide whether project implementation is delegated to a
community based organisation:
Box 4A: Determining a community project
The following parameters provide guidance to the District Council in
determining public basic service projects that would be assigned and delivered
by communities themselves:
1. The scope and scale in terms of number of beneficiaries is limited to/or
predominantly
(80%)
benefit
only
those
within
the
community/neighbourhood itself and the community has the expertise
required;
2. Are context specific and/or the delivery, operation and maintenance
arrangements of the asset/service are such that no public agency exists
or is adequately prepared/resourced to undertake them and are such
that the community is the most legitimate venue for local decision
making, resource management and delivery and/or that they lends
themselves to community-based management structures i.e. user
groups;
3. Are fully financed by the communities themselves; are entirely
community-led with high level of community participation and
voluntarism;
4. Are urgent/emergency demands making them time and cost ineffective
Box 4B: Community projects may include but are not limited to:
Education :Rehabilitation of primary school, extension of primary
school, improvement of primary School (e.g. fencing, latrines, feeding
center)
Water: Berket, kiosk
Sanitation; "Community" latrines, garbage collection (villages or
neighbourhoods)
Health: Health post
Agriculture/environment: Embankments (for soil erosion)
Productive projects (livelihood): Revolving funds; irrigations systems
(pumps); community center (vocational training);markets (rural villages
only)
Box 4C: Design and management of community projects
Communities that have been delegated by District Council to carry out a
community project set up a Project Implementation Committee. The project
implementing committee oversees the design of the project. If the project
implementation committee does not have the appropriate skills, it may need to
hire experts from the private sector.
The project implementation committee ensures that:
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Specifications;
4.2.
Aim of Module Unit Two
To equip the participants with the necessary skills and knowledge to be able to
procure goods, works and services.
4.3.
Objectives of Module Unit Two
By the end of this moduleunit, the participants should be able to:
Understand negotiations.
2.9.
Duration
When all the sessions in the module are taken consecutively the course should be
completed within two days.
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5. SESSION 1:
DRAFT
5.2.
Session Objectives
By the end of the session, the participants will be able to:
Define a market;
5.3.
Introduction
This session presents to participants the process of sourcing suppliers who are
reliable and can provide services efficiently and effectively.
5.4.
Definition of a Market
WHAT
IS
MARKET?
A market is an area for potential exchange. Markets are made up of
buyers demanding products and services and suppliers/providers
offering them for sale.
5.5.
WHY
MARKET
ANALYSIS?
To be able to identify and compile a list of possible sources of
goods, services and works that are reliable.
Supply market analysis involves the review of the structure, characteristics and
trends of a market for a particular product or service. When this is done possible
sources of supply for the requirements are identified as well as the risks and
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5.6.
Sources of Market Information
LGA can gather information about the possible sources of supply from the following:
The press;
Trade catalogues;
5.7.
The Process of Supplier Appraisal
This involves a number of steps, namely:
The end result of the market analysis should be the development of a list of possible
suppliers and contractors. A district may undertake pre-qualification proceedings to
identify suppliers and contractors that are qualified. The Secretary of the tender
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5.9.
Categories of Registration
Suppliers are to be registered into appropriate categories for the specific goods or
services they supply. Some common examples of registration categories may be:
Computer Services;
Office Equipment;
Medical Instruments;
Vehicle Repairs;
5.10.
Supplier Performance Monitoring
Suppliers or consultants who fail to fulfill their contractual obligations in a
satisfactory manner, in terms of quality, delivery, performance, or customer service,
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and who fail to improve their performance on being notified of the deficiency, may
be disqualified from providing further services.
Suppliers failing to perform satisfactorily shall be notified in writing, specifying the
deficiencies to be addressed,
their
You will need to use Activity Sheet 4 Checklist for List of Approved
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6. SESSION 2:
DRAFT
SPECIFICATIONS
6.2.
Session Objectives
By the end of the session, the participants will be able to:
Define specification;
6.3.
Introduction
This session introduces to the participants the importance of specifications, the
different types of product specifications, their advantages and disadvantages and
how all the above relate to procurement in districts.
WHAT
IS
SPECIFICATION?
It is a statement of a set of requirements to be satisfied by a product,
material or process, indicating, whenever appropriate, the procedures
by means of which it may be determined whether the requirements
given are satisfied.
In other words, what are the requirements for a particular product,
material or process and how can we tell if these requirements have
been met?
While the user initiates the purchase needs and may in some instance
specify the requirement, it is the responsibility of the Procurement Unit to
ensure that specifications are clear and unambiguous.
Specifications should contain the following:
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Delivery schedules
Transportation
6.4.
Types of Specifications
The major types of specifications are Brand Names, Samples, Technical, and
Functional/Performance.
Brand Name: This is a name or trade mark by which one producer
distinguishes his or her product from similar products by other producers in
the same industry for example, Omo washing powder.
Technical Specifications: Technical specifications may take the form of
design, physical dimensions, processes, etc. It is that part of purchase
specifications on design and quality. For example, technical drawings for
classrooms to be constructed in the district and the dimensions of school
desks.
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Functional/Performance
Specifications:
Functional
and
Performance
Samples: Samples may be used if any other form of specification is difficult to use,
i.e. if the item is hard to describe therefore making it more worthwhile to show it
physically to the suppliers.
6.5.
Standards
DRAFT
These are established and agreed within a country. Some national
standards may be required by legislation (particularly those regarding
health, safety and the environment), while others are voluntary.
(c) Regional standards:
For example, certain products sold into member states of the European
Union must comply with established standards (EU Directives).
(d) International standards:
These are established by institutions such as the International Standards
Organisation for (ISO), the International Electro Technical Commission
(IEC) and the International Telecommunication Union (ITU).
Standards enable buyers and sellers to speak the same language through
the use of common parameters, terminology and /or symbols.
Some
standards
complex,
so you should
not
automatically assume that the supplier will be conversant with all aspects
of a particular standard. It is therefore always wise to establish the depth
of the suppliers experience with a standard, if this is not clear.
6.6.
WHAT
SPECIFIED?
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SHOULD
BE
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Product/Service
Quantity
Delivery
Service responsiveness
Inspection/Tests
Documentation
Insurance
Warranty
Payment Terms
Legislation Issues
The product or service that is required must be stated clearly. This must be
accompanied with information regarding the required quality. You may
provide
designs,
drawings,
performance
requirements.
The
required
quantities must be stated, in addition the date, place and possibly time when
the deliveries are to be made should be indicated. If there any conditions
pertaining to delivery, e.g. restrictions, must be clearly stated. Under
delivery, you may include information on the required packaging, delivery
schedules, and method of transport.
The freight and delivery requirements for each procurement requirement
must be specified in the solicitation documents by stating the delivery terms
using the appropriate INCOTERMS. State the required mode of transportation
and freight. Specify the required level of insurance against loss, damage and
theft.
In addition to what has been highlighted, there may be need for additional
information.
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relevant to the subject of purchase, then there is need for them to be
specified. Contact names, addresses, office to which bids are to be
submitted, etc. should be specified.
6.7.
Specification of Requirements
The requirements need to be fully identified with detailed technical
6.7.1.
The Terms of Reference (TOR) for Consultancy Services
The TOR must define clearly the objectives and scope of the assignment and
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where applicable, the required inputs in terms of man days, months
or years;
List any services and surveys necessary to carry out the assignment;
6.8.
Quality
This is simply defined as what is fit for the purpose. Procurement must aim
for review and approval. The Secretary to the tender committee will maintain
a record of the minutes of the tender committee meeting approving the
specifications.
DRAFT
Work in pairs and answer the 3 questions found in Activity Sheet 5. You can
record your answers below:
1. Can you fill in these dimensions?
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1.1
1.11
1,12
1.13
1.14
1.15
1.16
1.17
Description of works
Spec.
QTY
sqm
22x12
264
M3
74*0.4*0.5
14.8
M3
74*0.4*0.05
1.48
M3
74*0.4*0.8
23.68
M3
74*0.4*0.15
4.44
M3
20*10*0.2
40
M3
20*10*0.075
15
Substructure work
Allow for clearing the site from any debris, trees, roots
etc, filling hollows and levelling.
SUB-TOTAL A
2.1
Uni
Cos
Unit
2.11
M3
5*9*0.075
2.12
M3
240*0.4
96
2.13
M2
5*3
15
2.14
M3
(2.1*2+35*0.4*0.15)*2
4.2
2.15
M3
0.16*4*0.2*0.2*4
0.64
2.16
M3
0.45*0.03*1.2*6
0.1
74
SUB-TOTAL B
3.1
3.37
Roof work
3.11
M2
6.5*11
3.12
LM
5.8+5.8+20+14
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3.13
4.11
4.12
4.13
4.14
5.1
7*9
63
SUB-TOTAL C
4.1
M2
M2
255*2
510
M2
510+63
573
M2
47*0.1+44
50
M2
47*0.1+45
50
SUB-TOTAL D
5.11
Pcs
5.12
Pcs
5.13
Pcs
SUB-TOTAL E
6.1
6.11
LS
6.12
LS
6.13
LS
SUB-TOTAL F
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Signature;_________________________________________________________________Date;___/____/2009
Checked by: MOI Eng. ______________________________________________________________________
Signature:_________________________________________________________________Date;___/____/2009
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7. SESSION 3:
7.2.
Session Objectives
By the end of the session participants will be able to:
7.3.
Introduction
This session presents to participants the process of tendering in local government.
7.4.
Tendering
WHAT
IS
TENDERING?
Tendering is one of the methods for procurement whereby potential
suppliers are invited to make a formal offer to supply goods, to
provide services, or carry out works, which on acceptance shall be
the basis of the subsequent contract. Tendering may be used in
procuring works such as the construction of health centres in
districts or provision of services, for example collection of taxes on
behalf of district.
7.5.
Need for tendering and its application
Procurement officers are required to prepare a tendering package and advertise it in
order to ensure transparency in the procurement process and to guarantee
receiving the best value for money spent. The Heads of department compile lists of
their (user departments) requirements every year, with clear specifications of the
nature of goods, services or works needed and then submit them to procurement
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unit for incorporation in the procurement plan and within the annual budgetary
provisions.
7.6.
Tendering Procedures
Tendering process may be divided into five main stages:
Preparation Stage: The activities involved during this phase includes the
identification of type and nature of procurement, assessment of market
conditions
and
choice
of
procurement
procedure,
specifying
the
7.7.
Preparation Stage
A district intending to procure goods, works or services using tendering method
should commence the process by preparing:
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Tender documents and tender notice should be issued only after they have been
approved by the Council Tender Committee. Procurement Unit should submit the
draft of the tender documents and tender notice to the Tender Committee for
approval before issuing and publication respectively. Tender documents or tender
notice issued or published by the district without the approval of the tender
committee shall not be considered as sufficient and adequate to satisfy the
governing local government procurement guidelines.
7.7.1.
Bid Documents
Tender documents are media
through
which
local
government
Instructions to tenderers;
Special conditions;
General information
Bid form;
Contract form;
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Tender Documents should be worded in such a way that it they permit and
encourage competition and theyit should clearly and precisely provide all
information necessary for potential bidders to prepare a tender/bid.
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Table: Summary of Bidding Documents
Form
What is it for?
Form A.1
For advertising tenders through an open competitive
Invitation to Bid
process.
Form B.1
Instructions to
Bidders
Form B.3
Appendix to Form
of Tender
Form B.4
Qualification
Information
Form B.5
Proposed
programme of
works
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Form C.2
Conditions of
Particular
Application
Form C.3
Statement of
Works
Note that a similar summary of these forms is located at the end of your
the Request for Proposals. Specification of the evaluation criteria and number
of points to be awarded to each criterion is critical to achieving a satisfactory
result in the selection of consultants. Both technical and financial point
scores are assessed initially out of 100 points for the purpose of clarity.
During final evaluation, the scores are combined by applying the weighting
percentage stated in the RFP for technical and financial scores.
7.7.2.1. Technical Evaluation Criteria
The criteria specified in the RFP should include:
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The marks for each criterion are aggregated to give the total technical score.
The following table shows the normal range of points to be specified for each
criterion, which may be adjusted for specific circumstances. The proposed
points must be declared in the RFP.
Figure 1 - Indicative Weighting of Evaluation Criteria (Consultant
Services)
Criteria
Specific relevant experience
Response to the TOR and
Proposed
Key personnel
Training
Participation by nationals
Total
Methodology
Weight
0 to 10 points
20 to 50 points
30 to 60 points
0 to 10 points
0 to 10 points
100 points
The criteria may be divided into sub-criteria to assist the objectivity of the
evaluation. For example, sub-criteria under methodology might be innovation
and level of detail. It is usual to use sub-criteria for key staff to evaluate their
qualifications, technical experience and language capabilities. The number of
sub-criteria should be kept to the essential minimum and must be fully
detailed within the RFP.
Firms Specific Experience
The points given to experience can be relatively low if this criterion has
DRAFT
RFP must specify the formula for award of points to each bid price. Normally
the lowest priced bid receives 100 points and the other bids receive points
based on dividing their prices by the lowest priced bid and multiplying by
100. The standard procedures for correcting arithmetic and other errors in
bid prices will apply to adjust the bid price before the points are awarded to
each bid.
7.7.2.4. Weighting of Technical and Financial Scores
The relative weightings for technical and financial scores must be stated in
the RFP. This is usually set at 80% for the technical score and 20% for the
financial score. In this case the technical score will be multiplied by 80% and
the financial score by 20% to give the total score for each bid.
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7.7.3.
Tender Notice
Invitations to tender should be made only through written invitations. The
The
The
The
The
The
The
The
The
The
The
7.8.
7.8.1.
Tender Notice
Advertisement of tender is important because it gives prospective bidders
publication of the tender notice. All potential suppliers and contractors who
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respond to the tender notice in accordance to the procedures and
requirements specified in the invitation to tender should be provided with the
tender documents. In the case where the district has pre-qualified the
suppliers or contractors, it should provide all those who have been prequalified with a set of tender documents at a price, if any, charged for the
documents.
7.8.3.
Clarifications
In tendering method, it is common for suppliers, contractors and service
7.8.4.
Tender Period
Tender period is the period between the dates of first publication of the
tender notice or the date of posting the invitation to tender and the closing
date for the submission of tenders. A local government must allow at least
30 days for preparation and submission of tenders from the date of first
publication of the tender notice. In case of international competitive
tendering, at least 45 days from the date of first publication of tender notice
should be given. Tender period should be mentioned in the tender notice and
once it has been set and advertised, it cannot be changed except in
exceptional circumstances. Any extension of the tender period should be
done reasonably in advance of closing date and promptly communicated to
all who requested for the tender documents.
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7.8.5.
Extension of bid closing date
The closing date for submission of bids may be extended at the discretion of
the tender committee for any practical or justifiable reason. Such reasons
would include: modification to the bidding documents after issue, requiring
additional research or effort by bidders to submit a responsive bid; request
for a time extension by two or more bidders; and unforeseen administrative
issues which force a postponement of the proposed bid opening.
Following approval by the tender committee of an extension of time, the
Procurement Officer should notify all bidders in writing of the revised date for
submission of bids and place copies of all correspondence in the relevant
procurement file.
7.9.
Cancellation of Bidding Process
A bidding process may be cancelled at any time before the deadline for
receipt of bids with the approval of the tender committee. Justifications for
cancellation:
When the bidding process in cancelled prior to bid opening, the district
should:
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7.10.
Response Management Stage
The response management stage deals with the management of the
received bids. Other activities falling under this stage include custody of the
bids received, opening of the tenders, evaluation of the tenders and
recommendation to tender committee.
7.10.1.
Submission and Receipt of Bids
The place and time for submission of bids should be stated in the invitation
to tender. Bidders are required to submit their bids within the time, place and
the in the form and manner specified in the invitation to tender. Only those
bids received within specified time should be considered. Bids received after
submission deadline should not be accepted and should be returned
unopened. Tenders should be submitted in a plain and sealed envelope
clearly marked Tender for. The place of receipt of tenders
should be clearly mentioned such as District Building, Room 4 and placed in
tender box marked Tender for
7.10.2.
Custody of Tenders
All received tenders must be placed in a locked tender box or in a secure
office space until the tender opening time. The tenders received should each
be given a registration number, time and date of delivery should be recorded
on each envelope.
The Secretary to Tender Committee is responsible for keeping the keys to the
tender box or boxes and for holding securely those envelopes which cannot
be placed in a locked tender box. The tender box should be locked at the
time of invitation of bids, and to remain locked until the closing date of
invitation to tender. The tender box should have only one opening, wide
enough to take in the envelopes containing bids and it should be closed at
the time stated in the advertisement.
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7.10.3.
Opening of Tenders
Tender opening has to be done at a specified time and place. The date for
opening of tenders and the last date for submission of tenders should be the
same. Tender opening should take place as soon as possible after the
deadline for receipt of tenders has passed. All tender bids received before
the deadline should be opened publicly in the presence of bidders or their
representatives. The names of all present at the opening should be recorded.
At the opening of tender, the following information should be read aloud:
Bidders name
A brief description of the goods, works and/or services offered if the bid
is for more than one lot;
After reading out the above details, the bid should be passed on to a
nominated representative of the bidders who shall also read out the same
details. Any obvious failure to provide a responsive bid shall be reported to
the meeting and recorded in the minutes. These bids shall be rejected.
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The chairperson and two members of the bid opening committee will initial
the original of each bid and all attachments thereto including any samples
provided by the bidder. Any corrections to prices or obvious errors and
omissions should be circled in red ink and also initialed.
The Secretary of the Bid Opening Committee will record the details read out
of each bid in the record of bid/proposal opening ensuring that amounts are
recorded in words as well as figures, and record all corrections and errors or
omissions which are noted during the bid opening in the minutes of the
meeting. When all the bids have been opened and read out, the Secretary of
the bid opening committee must show the meeting that the bid box is empty.
Minutes of the bid opening shall be prepared by the Procurement Unit, signed
by the chairperson of the committee and made available to any bidder
involved in the bid who requests a copy in writing.
In summary:
1. Tender opening takes place as soon as possible after the deadline for receipt of
tenders has passed. It is the responsibility of the Procurement Officer to organise
the room for the tender opening.
2. A Bid Opening Committee is established for the specific purpose of the bid
opening procedure.
3. All tender bids received before the deadline should be opened publicly in the
presence of bidders or their representatives.
4. The Procurement Officer is responsible for the following preparations:
Arrange placement of the tender box in a prominent place and ensure that all
reception office staff and staff responsible for the receipt of post are fully aware
of the bid and their responsibilities for bids received.
Ensure that the tender box is kept locked until the bid opening and that neither
the bidders nor staff have an opportunity to tamper with the box.
Close and seal the tender box immediately following the deadline for submission
of bids and transport the tender box to the room where the bid opening will take
place.
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5. The bidders and representatives must sit separately from the Bid Opening
Committee and the names of all bidders and representatives present must be
recorded.
6. The Procurement Unit is responsible for the smooth running of the bid opening,
including the following:
Bring in the unopened tender box and/or all bids and samples received which
have been removed from the tender box or could not be accommodated in the
tender box.
Open the tender box, check that the writing on each envelope or sample inside
confirms that it is for the correct bid and complies with the wording and sealing
required in the bidding documents.
Stack all envelopes in clear view of the bidders ready for opening. Samples
supplied by bidders shall be stacked separately after checking that the bidders
name is clearly identified on each sample provided.
Any bids not received by the deadline for the opening of bids must be rejected
and returned unopened to the bidder. Bidders are not permitted to amend their
bid in any way during the bid opening or to submit any additional documents
during the process.
Check for any withdrawals or modifications and match with the original bid
before proceeding. Withdrawn bids shall not be opened once the authenticity of
the withdrawal notice has been confirmed.
7. The Chairman will open the meeting and outline the procedures to be used for
the bid opening.
8. The Chairman of the Bid Opening Committee is also responsible for opening the
bids. Bids are opened one by one. When a bid is opened, some important
information is read out, see the bullet point list above.
9. The important bid information is also read out by a bidders representative. This
is to ensure that all required bid information has been included in the bid. Each bid
is initialed by the Bid Opening Committee members.
10. When all bids have been opened and read out, the Secretary of the Bid Opening
Committee must show the meeting that the box is empty.
11. The Procurement Unit will prepare the minutes of the Bid Opening meeting,
which are signed and made available to any bidder involved in the bid.
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7.10.4.
Cancellation of Bids after Bid Opening
Bids and RFQs may be cancelled by recommendation of the head of
Only one bid was presented or after rejection of all other bids only one
bid remains for consideration;
The tender committee confirms that the lowest priced bid is higher
than the budgetary provision.
Prior to cancellation of bids and RFQs the Procurement Officer shall obtain
approval of the head of department responsible and the tender committee
for cancellation of the bid/RFQ and then notify all bidders that the bid/RFQ
process has been cancelled. The Procurement Officer should then decide
whether the procurement is to be cancelled completely, or to proceed later,
and by what method. If the procurement is to proceed, the Procurement
Officer shall re-submit all documents to the Originating Officer for
preparation
of
revised
specifications,
or
prepare
bidding
documents
be confirmed in the signed bid form submitted by each bidder. Any bid which
is valid for a shorter period shall be rejected by the procuring entity as being
substantially non-responsive. If circumstances occur in which award cannot
be made within the original bid validity period, extensions in writing should
be requested from bidders, in accordance with the bidding documents. The
evaluation and award of contract should be completed within the period set
for the validity of bids. The date for expiry of bid validity must be monitored
and attention drawn to this deadline not less than two weeks before the
expiry date.
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If, due to unforeseen circumstances, the work cannot be completed within
the set period, the Procurement Unit may contact bidders to seek their
agreement to an extension of the bid validity. Bidders who refuse this
request may withdraw from the bid without incurring any penalty.
When an extension of bid validity period is requested, bidders shall not
normally be requested or be permitted to change the quoted price or other
conditions of their bid. However, the bidding documents may provide for an
appropriate price adjustment mechanism when requests for second or
subsequent extensions are made, to reflect changes in the cost of inputs for
the contract over the period of extension.
The Procurement Unit shall:
Maintain a diary reminder of all bid validity dates and advise the
responsible officer not less than two weeks before the expiry date so
that appropriate action can be taken in time.
DRAFT
original bid validity period, the bid shall not be considered further. Only
bidders who respond confirming their unconditional acceptance may be
considered for further evaluation and award of contract.
7.10.6.
Tender Evaluation
Tenders that have been opened will be evaluated against the same criteria
that have been established before the tenders are opened and which have
been indicated in the tender documents. Tender evaluation process is
discussed in more details in Session Four.
There are 2 activities for this session.
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3. Groups 1-6 will act as bidders for a tender for a contract on the Sandy District
Primary School Classroom Rehabilitation project. Group 7 will act as the
Procurement Unit and Bid Opening Committee.
4. Your group needs to carry out the instructions given below, depending on
whether you are a bidder or a Procurement Unit. Your trainer will guide you
through this process.
5. Once the process below has been followed, everyone should be able to determine
which company has the lowest bid. For the purposes of the activity, the lowest
bidding company will be awarded the tender.
6. The information about bids received should be recorded by all participants in
Activity Sheet 6 Bid Opening, at the end of this Participant Book.
Note that Activity Sheet 7 Bid Opening can also be found in your set of
Somaliland District Bid Opening and Evaluation Documents, which we will look at
more closely in the next session.
Bidder Groups
1. Your trainer will give you an
envelope, which contains your
bid price. Read your bid and note
the details.
Procurement Unit
1. Ensure that all bidders are sitting away
from the Bid Opening Committee
DRAFT
6. The Chairman will read out the company
name and bid price and this is recorded on
the whiteboard by the Procurement Unit.
7. Members of the Bid Opening Committee
must initial each bid.
8. When all bids have been opened, the
Chairman should show everyone that the
tender box is empty.
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8. SESSION 4:
8.2.
Session Objectives
By the end of the session, the participants will be able to:
8.3.
Introduction
This session presents to the participants the process of evaluation of bids
recommendation of the preferred bidder/supplier by the evaluation committee.
As with the Bidding Documents we saw in the previous session, there are a
number of documents that you need to use for Bid Evaluation. These are
outlined in the table below.
Please refer to your set of Somaliland District Bid Opening and Evaluation
Documents and familiarise yourself with the following documents:
Table: Summary of Bid Opening and Evaluation Documents
Form
What is it for?
Form D.1 Bid
This is used during the bid opening process and
Opening
includes:
1. Received Bids lists all bids received along with the
bid amounts.
2. Attendance Register for Tender Committee, MOI, JLPG
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representatives present.
3. Attendance Register for Bidder representatives
present.
Form E.1 Bid
Evaluation
8.4.
Tender Evaluation Committee/Team
The responsibility of evaluating bids and quotations and ranking them in
order of pricing and quality rests with the Tender Evaluation Committee/Team
in the district. The committee comprises of not less than three and not more
than five members one of whom must be an expert on the subject matter for
which evaluation is to be done. The evaluation team members are appointed
by the Executive Secretary based on their technical skills and competences.
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The evaluation team must assess all tenders received on the basis of the
evaluation criteria set out in the tender document. Upon completion of the
evaluation process, the Evaluation Committee submits its evaluation report
and assessment scores to Tender Committee.
8.5.
Evaluation of Tenders
Evaluation of tenders is done by an Evaluation Team. It is done in three sequential
stages:
A preliminary examination;
A technical evaluation;
Fully priced
DRAFT
Have the legal capacity to enter into a contract; (this criterion included
in Form E.1)
In this activity you will practise filling in the details on Form E.1 Bid
Evaluation, 1. Eligibility for a fictional project, Construction of Primary School
Staff Quarters in Friendly Village.
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You will work in pairs and your trainer will guide you in this activity.
The aim of the activity is to use the information provided in Activity Sheet 8
Eligibility to Bid Form to fill in the table and determine whether the bid
submitted by Akber Constructions is eligible and therefore able to have a
Technical Evaluation.
You will need to refer to Activity Sheet 8 at the end of your Participant
Book.
8.5.2.
Technical evaluation
Technical evaluation should be conducted to assess the technical compliance
of bids to the statement of requirements. Only bids that have passed the
preliminary examination and are considered to be substantially responsive to
the bidding documents will be considered for further evaluation. Any bids
which do not reach the minimum standard or score required points should be
rejected and not evaluated further.
In undertaking technical evaluation of bids, the evaluation committee should:
of
specifications;
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samples
which
do
not
correspond
to
the
DRAFT
phasing of contract start-up, delivery, installation or construction
does not conform to the required critical dates or progress
markers;
sub-contracting in a substantially different amount or manner
than that specified.
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8.5.3.
Financial evaluation
Financial evaluation should only be conducted on bids that are eligible and
Determine whether the financial bids are complete and cost any
missing items, adding them to the original bid price. Where items
missing in some bids are present in others, the highest price quoted by
the other bidders is added to the incomplete bids for evaluation
purposes. Under works contracts, missing prices for occasional work
items are normally assumed to be included in prices for closely related
items elsewhere.
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The selected source and date for currency exchange rates must
be as specified in the bidding documents. The selected date
should not be later than the original date for closing of bids.
The source of exchange rates will normally be the selling rate
quoted by the Central Bank on the selected date.
Obtain written evidence of the conversion rates to be used
confirming the required date and source.
Apply the appropriate conversion rate to each corrected bid price
to arrive at the evaluation price in the common currency.
Provisional Sums: If the bids contain provisional sums set for contingencies
or for nominated subcontractors, since these sums are the same for all bids,
they should be deducted from the prices read out at the bid opening to allow
a proper comparison of the competitive elements of bid prices.
Modifications and Discounts: Discounts offered in accordance with the
bidding document that are conditional on the simultaneous award of other
contracts or lots in the bidding documents (cross-discounts) shall not be
evaluated until the completion of all other evaluation steps. Non-conditional
discounts should be included at this stage.
8.6.
Selection of suppliers
Bid evaluations should be consistent with the objectives set for each
purchase. However, for most purchases, the purchase price is only one of the
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several considerations when selecting a supplier. Meeting user requirements,
quality and service are a critical and usually more important aspect.
Among the elements to be considered when selecting a supplier are the
following:
Customer service;
Past performance;
Supplier innovation;
Risk management;
Selection/evaluation
criteria
should
be
clearly
stated
in
the
tender
documents.
8.7.
For least-cost selection, the corrected bid prices, adjusted for omissions,
deviations and specified evaluation factors, and converted to a common
currency are ranked to determine the lowest evaluated responsive bid. For
merit point systems [including the Quality and Cost Based Selection (QCBS)
method for consultant services], the combined technical and financial scores
are calculated to determine the lowest evaluated responsive bid. In either
case the ranking of bidders is still subject to:
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8.8.
Financial capability;
Litigation record; or
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If the lowest evaluated responsive bidder fails post-qualification, his bid
should be rejected, and the next ranked bidder should then be subject to
post-qualification examination. If successful, this bidder should receive the
award. If not, the process continues for the other bidders. The rejection of a
bid for reasons of qualification requires substantial justification, which should
be clearly documented in the text of, or in attachments to, the evaluation
report. A history of poor performance may be considered a justification for
failing post-qualification if the bidder is unable to demonstrate that steps
have been taken to resolve previous problems.
8.9.
Evaluation report and recommendation
The evaluation committee will, at the end of the evaluation process, prepare
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8.10.
Tender Committee Approval of Recommendation for
Contract Award
After evaluation by evaluation committee, the report is submitted to the
The
The
8.10.1.
tender
report
and
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Ensure that all discussions and decisions of the committee are reported
in the minutes of the meeting.
8.11.
Rejection of All Bids
If the Evaluation Committee recommends the rejection of all bids, the tender
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This role play activity is designed to illustrate the roles of the Tender Committee and
the Evaluation Committee and the decision making process on recommendation of
tenders.
Your trainer will guide you in the conduct of this activity.
It will be helpful for you to refer to the following information in your Participant Book
in order to conduct the activity:
3.8 Roles and Responsibilities
10.3 Tender Evaluation Committee
10.9.1 Action by the Tender Committee
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You will also need to refer to Activity Sheet 9 Bosaso District Role
Play at the end of your Participant Book.
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9. SESSION 5:
NEGOTIATION
9.2.
Session Objectives
By the end of the session the participants will be able to:
Define negotiation;
9.3.
Introduction
This session explains to the participants the importance of negotiation, when
it should be applied, and how it fits into the procurement of service providers
especially the consultants.
9.4.
Definition
WHAT IS NEGOTIATION?
Negotiation is a process whereby two or more parties, initially with
differing views attempt to reach an agreement on a common
objective by selective use of different methods of persuasion.
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9.5.
When to negotiate
Negotiations with the lowest
evaluated
responsive
bidder
may
be
undertaken:
Mobilization arrangements;
DRAFT
9.5.1.
Issues for negotiations consultancy services
In the procurement of the consultancy services, negotiations for award of
Terms of reference
Methodology;
Staffing
9.5.2.
Issues for negotiations goods and works
In the procurement of goods and works, negotiation will be on areas relating
to the following:
Minor
alteration
to
the
technical
details
of
the
statement
of
requirements;
Payment arrangements
Methodology or staffing
9.6.
The two
The Negotiators
parties to the
negotiation
are
the
district
and
the
9.7.1.
DRAFT
of the procurement. The proposed negotiation team should possess relevant
mix of skills and experience, including:
9.7.3.
Pre-negotiation
This is a strategy formulation stage. It involves looking at your own
hand, make purposeful talk and find out about them as people, check their
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authority to negotiate, be warm but firm, agree on the agenda, expected
outcomes and time scales.
Do not: Be demanding, put down any conditions, refer to contracts with
other suppliers, make them feel uneasy, start substantive discussions before
agreeing on the agenda.
9.7.4.2. Proposal stage
Normally the entity asks the supplier to make their proposals first because
this way they expose their best target. You should remember to link different
variables, build on the ideas and proposals being offered, ask questions to
clarify any points that are not clear, take abundant notes, and propose a
recess to discuss options when necessary.
Try not to reject a proposal instantly, make a counter proposal immediately,
or use-irritating phrases like: We need a fair and reasonable offer.
9.7.4.3. Bargaining stage
The basic rules of bargaining are: Always try to attach conditions to
concessions; try to give way on variables which may be of little value to you;
focus on all the variables involved; try to make numerous small concessions
rather than a major one.
9.7.4.4. Agreement stage
At this stage, clearly summarise and state clearly what has been agreed
upon. This is not the end but the beginning of a working relationship.
9.7.5.
Post-negotiation:
This involves preparing and formalizing the agreement, monitoring and
DRAFT
proceed
with
contract
award
to
the
recommended
bidder,
Where the negotiation team recommends rejection of the bidder, it may also,
where appropriate, recommend inviting the next ranked bidder for negotiations
in the case of competitive methods of procurement or a new bidder to submit a
tender in the case of direct procurement. The tender committee may:
This role play activity is designed to illustrate the negotiation process between a
District Tender Committee and a potential supplier.
Your trainer will guide you in the conduct of this activity.
It will be helpful for you to refer to the following information in your Participant Book
in order to conduct the activity:
11.6.2 Characteristics of a good negotiator
11.6.3 Pre-negotiation
11.6.4 The actual negotiation
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You will also need to refer to Activity Sheet 10 Baran District Role
Play at the end of your Participant Book.
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Suggest moving this session to become the first session in Unit 3: Contract
Management
10.
SESSION 6:
10.2.
Session Objectives
By the end of the session, the participants will be able to:
10.3.
Introduction
This session presents to the participants the importance of signing a contract
after awarding a tender, the buyers and sellers obligations in the contract.
10.4.
Definition of a contract
A contract is a formal legal agreement, usually written, between different
parties. The procurement contract enters into force when the contract is
signed by the supplier, contractor or service provider and by the Local
Government.
10.5.
Suppliers/Providers Obligations
Suppliers /providers obligations may include but not limited to:
Deliver the goods, service or works in the way, at the time, and in the
location that has been specified by the parties.
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10.6.
Local Governments Obligations
Local government may include but not limited to:
Accept the goods or services provided they meet the contract terms
10.7.
Preparation of Contracts
A contract document for submission to the successful bidder for signature is
The options that are available, (if all goes wrong), to protect the local
government/district so that the negative impact on the business is as
low as possible;
10.7.2.
Problems that may be encountered in purchasing and
supplying contracts
Numerous difficulties may arise in purchasing and supply contracts. Some of
these are:
Change of ownership/management;
Change of circumstances;
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Currency fluctuations ;
Delays in performance;
Dominance;
Lack of specificity.
10.8.
Tender Committee Approval of Contract
The Tender Committee will review the contract document with particular regard
to compliance with any modifications requested by the Committee in issuing its
approval to the evaluation report. The committee will:
Ensure that all discussions and decisions of the committee are reported
in the minutes of the meeting.
10.9.
Types of Contracts
There are various types of contracts and these are normally specified by a
Lump sum contracts: These are contracts of fixed amount whereby the
price covers the whole of the works, supplies and services, being the
subject of the contract;
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Proposals and included as a draft with all contract terms and conditions in
the RFP.
10.10.1.
Lump Sum (Fixed Price) Contracts
Lump sum contracts are used mainly for assignments in which the following
Lump sum contracts are widely used for simple planning and feasibility
studies, environmental studies, detailed design of standard or common
structures, preparation of data processing systems, etc. Payments are linked
to defined outputs (deliverables), such as reports, drawings, bills of
quantities, bidding documents, and software programs. Lump sum contracts
are simple to administer because payments are due on attainment of clearly
specified outputs.
10.10.2.
Time-Based Contract
This type of contract is widely used for complex studies, supervision of
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the services are related to activities by others for which the completion
period may vary.
The rates for staff remuneration include salary, social costs, overhead, fee
(or profit), and, where appropriate, special allowances. This type of contract
must include a maximum amount of total payments (the contract ceiling) to
be made to the consultants. The contract ceiling usually includes a
contingency allowance for unforeseen work and duration, and provision for
price adjustments, where appropriate.
Time-based contracts need to be closely monitored and administered by the
District to ensure that the assignment is progressing satisfactorily, and
payments claimed by the consultants are appropriate.
10.10.3.
Retainer and/or Contingency (Success) Fee Contract
Retainer and contingency fee contracts are frequently used when consultants
DRAFT
Contracts are negotiated on the basis of market standards for the services
and/or estimated staff-month costs for the services, or competitively bid. In
the case of architectural or engineering services, percentage contracts lack
any incentive for economic design or performance. The use of a percentage
contract format for architectural services is only recommended if based on a
fixed target cost and covers precisely defined services.
10.10.5.
Indefinite Delivery Contract (Price Agreement).
These contracts are used when there is a need for on call specialised
services to provide advice or services, the extent and timing of which cannot
be defined in advance. These are commonly used to retain advisers for
implementation
of
complex
projects
expert
adjudicators
for
dispute
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well as placed on notice boards at the district headquarters and other public
places. Also, the procurement officer should notify the MOILG and the Auditor
General of contract awards and copies of signed contracts should be availed
to these institutions.
Please refer to Forms C.1, C.2 and C.3, in your set of Somaliland District
Bidding Documents.
11.
11.2.
Local Purchase Orders
In case of very low value and low risk items, once the supplier has been
selected, the Procurement Officer raises the Local Purchase Order (LPO). A
Local Purchase Order which is sent to the supplier is suitable for accepting
offers where the requirement is straightforward. Any special conditions
agreed upon should be referred to on the purchase order. In cases where the
purchase is complex, a specially drafted contract should be put in place and
should be signed by the officers authorized to sign contracts on behalf of the
district.
distributed as follows:
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Local Purchase Orders are raised in the names of the supplier based on the
tender award by the Tender Committee and they should indicate the date,
time and place of delivery of the goods. In all cases, the Tender Committee
minutes is quoted as reference to source of authority.
Note that these forms are also provided in your Somaliland District
..
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2. Has the correct person from the District signed the contract? Y/N (If no,
explain the error)
(Note: you may need to refer to the table of roles and responsibilities given
in 3.8 Roles and Responsibilities, in order to answer this question)
..
..
3. Are the progress payments correctly calculated? Y/N (If no, explain the
error)
..
..
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This is the last module Unit in this course. It deals with the day-to-day
management issues required to make contract performance a success.
Contracts have to be supervised and monitored to ensure that the
supplier/contractor performs according to the contract and that the
contractual obligations are met. Ineffective supervision and monitoring of
contracts may lead to serious losses to the local government.
12.2.
2.10.
Duration
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13. SESSION 1:
CONTRACT MANAGEMENT
Suggestion: there is a lot of content to be covered in this session. Perhaps for future
versions of this training we could divide it up into 2 or 3 separate sessions, for
example, 1. Contract Administration and Supervision, 2. Reporting and Payments.
13.2.
Session Objectives
13.3.
Introduction
Contract effectiveness;
Contractual disputes;
Delays in performance;
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Acceptance of deliverables;
Contract closure.
13.4.
Contract Effectiveness
The procurement contract enters into force when the contract is signed by the
supplier, service provider or contractor and by the district. Where the bidding
documents stipulate that the procurement or disposal contract is subject to
approval by a higher authority or a financing agency, the procurement contract
shall not enter into force before the approval is given.
13.5.
Monitor the delivery schedules of all purchases to ensure that they are
dispatched, delivered or collected on time.
Initiate and supervise any process for claims against the supplier.
The inspection and receiving committee will co-ordinate the receipt and
inspection of goods and prepare acceptance report.
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13.5.1.
Examine and analyse the goods for conformity with the contract
specifications and/or the samples provided.
Reject all goods that are damaged or do not conform with the required
specifications or samples.
For simple payments against invoices, the Procurement Officer will certify the
invoice submitted by the supplier for payment. The Procurement Officer has to
ensure that any advance payments already made and any contractual penalties
incurred by the supplier have been taken into consideration in arriving at the
amount payable to the supplier. The Procurement Officer should check the
invoice to ensure that it is fully supported i.e. the following have been attached:
The procurement unit will then forward the documents to accounts for
preparation of payment voucher. When the payment voucher is ready, the
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Procurement Officer will use the details to update the contracts register with
details of payments. On expiry of any guarantee period the Procurement Officer
shall release the retention balance to the supplier.
13.6.
Contract Supervision
Discuss technical matters with the contractor and ensure that the
contractor understands the technical design and specification;
Inspect the works and advise the contractor and district management
if there is any deviation from the technical design and specification;
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Prepare progress reports. These reports are needed when the contract
submits a claim for payment, for monitoring implementation progress
and when problems arise during implementation;
If any part of work is not done to the satisfaction of the Technical Supervisor,
he may instruct the contractor to rectify the shortcomings.
13.6.3.
DRAFT
13.6.4.
Claims by contractor
Claims by Contractors for additional work or costs which are not covered
under the terms of the existing contract and total contract value, must be
referred to the tender committee for approval. Claims for extension of time,
with or without additional costs, or for additional payment to the contractor
must be resolved quickly, subject to the approval of the tender committee.
13.7.
Unit as
appropriate.
For consultancy services, the contract will usually nominate a Project
Manager to coordinate supervision and administration. The contract may
specify payments on the basis of inputs (time), deliverables, retainers, unit
rates or commission fees, and administrative and supervision activities must
therefore be based on the specific terms of each contract.
The Procurement Unit (or Project Manager) will:
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Payment for service contracts will be made according to the specific terms of
each contract against invoiced claims by the service provider. The
Procurement Unit (or Project Manager) will ensure that:
any retention sum specified in the contract is deducted from the value
of the invoice before payment.
13.7.2.
Timing of Payments
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the payment terms and penalties specified in the contract are known
to all managers and staff involved in the processing of payments;
all invoices and certificates which are not in dispute are paid within the
agreed payment period.
13.8.
Contract Performance
The contract may impose certain conditions on the district which, if not
complied with, may affect the supplier or contractors performance including:
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The Procurement Officer/Project Manager must ensure that all such
obligations of the district are planned and performed without undue delay.
13.8.3.
Delays in Performance
The district will immediately assess the situation, and may at its
discretion extend the supplier or contractor's time for performance,
with or without liquidated damages as specified in the contract.
If the time for performance is extended, both parties shall ratify such
extension by a formal addendum to the contract subject to approval by
the tender committee.
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Update the procurement file and contract register to reflect any delays
in the suppliers performance.
Resolution of Disputes
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The parties to the contract normally have the right to terminate the contract,
but to protect the district, advice of the Legal Officer and the MOILG should
always be sought if the district is considering such action. For donor funded
procurements, donor no objection must be sought before any action to
terminate a contract is initiated. Contracts should not normally be
terminated
without
examining
all
possible
alternatives,
unless
the
Contract Amendment
identify and agree with the supplier or contractor the specific clauses
in the contract which need to be changed, and the new values or terms
and conditions which are to apply;
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13.9.
Procurement Reporting
Sources of Information
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Reports of the Auditor General and the Internal Auditor of the district;
The basis of the monitoring system is the Quarterly Report. On receipt of the
report from a district, the MOILG will:
Check that any new procurement processes commenced are within the
procurement plan for the district;
Inspect or call for the procurement file where serious breaches of the
guidelines or Code of Ethics are suspected.
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identify the scale and values of common user items that may benefit
from the introduction of framework contracts;
on
routine
basis,
and
make
or
introduce
Compile all findings and action into the annual report of the MOILG.
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13.10.4.
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5. The contractor presents his side of the story, followed by the Project
Manager.
6. The Executive Secretary makes a decision on who is correct in the
scenario.
! Note: it may be helpful to refer to Form C.2 Conditions of Particular
Application in your set of Somaliland District Bidding Documents to assist
with resolving the dispute.
7. The decision should then be presented to the whole group along with
reasons why.
What did you think of the decision of the Executive Secretary? Why?
Do you think both parties were happy with the outcome of the dispute
resolution? Why/Why not?
What alternative responses could the Executive Secretary have chosen
for this situation?
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Activity Sheets
Activity Sheet 1 Procurement Principles Scenarios
Activity Sheet 2 Taking your ethical temperature
Activity Sheet 3 Procurement Plan
Activity
Sheet
Checklist
for
List
of
Approved
Suppliers/Contractors
Activity Sheet 5 Invitation to Bid
Activity Sheet 6 Technical Specifications
Activity Sheet 7 Bid Opening
Activity Sheet 8 Eligibility to Bid Form
Activity Sheet 9 Bosaso District Role Play
Activity Sheet 10 Baran District Role Play
Activity Sheet 11 Sandy Desert District Contract
3. SESSION 2:
3.1.
Session Objectives
3.2.
WHAT IS ETHICS?
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Most people tend to define ethics as being primarily concerned
with issues such as bribes and confidentiality. However, ethics is
concerned with values which is a general term relating to those
things which people regard as good, bad, right, desirable or
justifiable.
In summary, ethics is concerned with the moral principles and
values which govern our beliefs, actions and decisions.
Ethical principles require all those involved in procurement to perform their duties
with integrity.
WHAT
IS
INTEGRITY?
The quality of being honest and having strong moral principles.
Not corrupt or biased.
The purpose of ethics in LGA procurements is to ensure that decisions are neither
tainted nor appear to be tainted by any question of conflict of interest. Procurement
should be based on objective criteria.
3.3.
Employees dealing with procurement and members of the tender committee of the
district are required to be honest in all their dealing with suppliers, contractors and
members of public and must conduct procurement proceedings in such a manner
that district is respected and trusted as a client or customer. In order to ensure
transparency and therefore accountability, a district should maintain adequate
written records of all procurement proceedings. Such records should be open to
inspection by members of the public at such time and under such arrangements as
may be sanctioned by the Executive Secretary.
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3.4.
Procurement Ethics
Public Officers are required to sign a Code of Ethical Conduct. In addition, all
suppliers, contractors or consultants are required to sign a declaration of
compliance with those Codes of Conduct. The main ethical principles are:
Honesty
among
district
staff,
tender
committee
members
and
To enhance the ethical conduct and transparency of staff and tender committee
members and employees of the district should not be suppliers/contractors of
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Discussing
or
accepting
future
employment
with
bidder
or
prospective bidder;
Requesting
any
other
public
servant
or
government
official
3.6.
Corruption
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Promotes nepotism;
Penalise all those found guilty, blacklisting errant suppliers, and to sanction
staff and tender committee members by disciplinary action.
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Activity Sheet 1 Procurement Principles Scenarios
Scenario 1
Success District advertised a tender nationally to build a water harvesting system.
There was a lot of interest from contractors, because it was a big project worth a lot
of money. The Mayor asked the Senior Works Officer to provide one particular
contractor with information about the estimated price for the contract, to help him
prepare his bid. The Mayor said that this contractor was based in the district, so he
deserved to get more help than contractors from other districts. The Senior Works
Officer said that this was unfair and that all contractors should receive the same
information about a contract.
Questions:
1. Who is correct the Mayor or the Senior Works Officer? Why?
2. Which procurement principle do you think this scenario relates to? Why?
Scenario 2
A tendering process was being initiated for a construction project. The Executive
Secretary suggested using the National Competitive Bidding process, to get as
much competition as possible and therefore a better price for the contract.
However, the Senior Works Officer said that the National Competitive Bidding
process created too much work for him, so it was easier to initiate a direct
contracting process.
Questions:
1. Who is correct The Executive Secretary or the Senior Works Officer? Why?
2. Which procurement principle do you think this scenario relates to? Why?
Scenario 3
A district put out a tender for the supply of some school furniture. One supplier
(Lucky Sky Enterprises) submitted a bid which was lower than the estimated price
and the materials were very good quality. Another supplier (Blue Sea Contractors)
submitted a bid which was higher and the materials were not as good quality. The
Tender Evaluation Committee was divided about who should be awarded the tender.
Some members said that Lucky Sky was the best value for money for the district.
But other members said that Blue Sea were influential people in the district, so it
would be better to award the contract to them.
Questions:
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1. Who should get the contract Lucky Sky or Blue Sea? Why?
2. Which procurement principle do you think this scenario relates to? Why?
Scenario 4
A Restricted Bidding process was conducted in Sandy District for rehabilitation
work on a school. The Tender Evaluation Committee had already conducted this
tendering processes many times already, so the members decided to make a
recommendation without recording the process in its Tender Evaluation Report.
When asked about this, the committee members said that because everybody
knows the tendering process so well, there was no need to write down everything
that happened. The Executive Secretary told the Tender Evaluation Committee that
everything relating to the procurement process must be recorded so that the
District Council can clearly show the rest of the community that procurement
decisions are made in an honest and open way.
Questions:
1. Who is correct The Tender Evaluation Committee or the Executive Secretary?
Why?
2. Which procurement principle do you think this scenario relates to? Why?
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Activity Sheet 2 Taking your ethical temperature
For each statement, mark with an X where you feel your views are on the
continuum.
Strongly
Strongly
Disagree
Agree
1. The only way to get things done
is to bend the rules from time to
time.
Strongly
Disagree
Strongly
Agree
Strongly
3. It is very hard to make a decent
Disagree
living without accepting gifts and
favours on the side.
Strongly
Agree
Strongly
Agree
Strongly
Disagree
Strongly
Agree
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Strongly
Disagree
Strongly
Agree
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. Financial Year
Pre-Qualification
Description /
Code
Tende
r No.
Basic Data
Est.
Proc.
Amount
Metho
Sshs.
d2
Document
Invitation
Evaluation
Prep
arati
on
Date
of
invit
ation
Submissi
on of
report
Approv
by
Tender
Comm
Closi
ng
Date
Bidding
Bid Doc
Prepared
Approv
by
Tender
Comm
Tender
Committ
Approval
Adver
t
Bid
Open
Evaluation
report
Submission
Tender
committ
appr/
contract
award
Date of
contract
sign.
Contract
amount
Sshs
Delivery/
Impleme
ntation
Plan
vs.
Act.
Plan
Actual
Plan
Actual
Plan
Actual
Plan
Actual
Plan
Actual
Procurement method could be any of the following; national competitive tendering, international competitive tendering,, selective
tendering,, competitive quotation, single source, direct procurement, minor value, and force accounts.
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Activity
Sheet
Checklist
for
List
of
Approved
Suppliers/Contractors
Checklist
YES
NO
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Item
N0.
1.1
1.11
Description of works
Allow for clearing the site from any debris, trees, roots etc, filling
hollows and leveling, of an area 22m x 18m.
1.14
1.15
1.13
1.16
1.17
Spec.
QTY
sqm
396
M3
15.4
M3
77x0.4x0.05
1.54
M3
77x0.4x0.6
18.48
M3
77*0.4*0.15
4.62
M3
7x8.8x0.5+22x0.15x19.2
56.14
M3
88x19.2x0.075
12.67
12.67
Substructure work
1,12
Unit
SUB-TOTAL A
2.1
2.11
M3
8.8x19.2x0.075
2.12
40cm thick rubble stone walling in cement & sand mortar 1;4 mix
M3
65x0.4x2
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SUB-TOTAL B
52
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3.1
3.11
Roof work
Roof with timber trusses covered with N0. 28 GCI sheets with two
coats anti- rust paint
M2
5x1.5
7.5
SUB-TOTAL C
5.1
M2
65x2x2
260
M2
8.8x19.2x0.04
6.75
SUB-TOTAL D
5.11
Supply and fix doors (2.0m x 1.0 m) complete with frame, hinges &
locks and to include two coats of gloss paint.
Pcs
5.12
Supply and fix windows (1.2m x 1.0m) complete with burglar bars,
hinges, locks and to include two coats of paint.
..
SUB-TOTAL E
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Drawing Garbage Collection Point
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Reference:_........................................................................................................[Contract Name]
The District Council of ..has received funding from the United Nations
Joint Programme for Local Governance and Decentralised Service Delivery, and would like to
apply part of the funds for
.
The District Council of .therefore advertises for bids from eligible and
suitably qualified companies to provide the following services:
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Activity Sheet 7 Bid Opening
Received Bids
Name of District: .
Date: .././2009
Rehabilitation Project
Venue:..
NAME OF THE BIDDER
ALLOCATED
NUMBER
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Activity Sheet 8 Bid Eligibility Form
FOR INTERNAL USE BY TENDER COMMITTEE)
Bidder Allocated Number:..
Contract Number:.
The Evaluation is based on evaluation of
(1) Eligibility to bid
(2) Technical evaluation
(3) Financial evaluation
1. Eligibility
Responsiveness
No
CRITERIA
DOCUMENT
YES/NO
Receipt
from
District Council
Bid signed
Signed Bid
PASS/FAIL
of
in
to
of
NOTE. Only bidders who are deemed to be eligible to bid should be considered for the
Technical Evaluation.
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Information about the bid for Construction of Primary School Staff Quarters
in Friendly Village
This project involves the construction of a 2 bedroom staff quarters for the primary
school in Friendly Village. The contract number for this project is S/L / 12 / 01 / 24 /
11 / 006
One of the bidders for this project is Akber Construction, who was allocated a
Bidder number of 8. The owner of the company is Mr Mohamed Reliable,
who obtained the bidding documents from the Sandy Desert District Council
office and paid USD 10 for these documents. He has attached his receipt to
the bid to show that he obtained the documents properly.
Akber Construction is a well-known company with a good reputation. It has a
certificate of registration and the registration number was provided in the
bid, as part of the Qualification Information. The bid was signed by Mr
Reliable and it contained a priced Bill of Quantities, a signed Form of Tender
and a completed Appendix to Form of Tender.
Akber Construction is not subject to suspension by any government
authority, either now or in the past 10 years in which it has been operating.
Question: According to this information given above, is Akber
Constructions eligible to bid and therefore able to have a Technical
Evaluation?
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Activity Sheet 9 Bosaso District Role Play
ROLE PLAY:
BOSASO DISTRICT
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Activity Sheet 10 Baran District Role Play
After a long discussion, the Tender Committee decided that it will call in
representatives of Baran Designers and Outfitters for negotiation on the
above issues.
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Activity Sheet 11 Sandy Desert District Contract
Form C1
Agreement
This shows
the contract
is in
Somaliland.
Contract No:
S/L / 12 / 01 / 24 / 11 / 006
This shows the year and
the project number for
that year.
Sector - Circle The Correct Sector 1. Health 2. Education 3. Water and Sanitation 4.
Infrastructure (Roads, Bridges, Culverts). 5. Livestock 6. Agriculture 7. Environment
THIS AGREEMENT made this
19th
.. Day of . . . . . March. . . . . . . ..
2010...
(hereinafter called "the Works") and has prepared Drawings, Specifications and Bill of
Quantities showing and describing the works to be done. These Drawings, Specifications and
Bill of Quantities have been signed by and on behalf of the Employer and the Contractor,
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OFFER:
The Contractor has offered a bid for the services for the amount of US Dollars
NOW THEREFORE, IT IS AGREED as follows:1. The Employer agrees to pay the Contractor the sum of US $......$50,000........... (in
figures) ....................
(in words) (hereinafter called "the Contract Sum") or such other sum as shall become payable to
the Contractor in consideration of work performed at the given rates and at the time and manner
stated in the Conditions of Contract.
2. The following documents shall form part of this Agreement: This Form of Agreement;
The Letter of Acceptance;
Contractors Bid
Addenda to Bidding Documents;
Statement of Works
The Drawings;
Conditions of Contract:
Conditions of Particular Application, Part II,
General Conditions of Contract, Part I;
The Priced Bill of Quantities;
Qualification Information.
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All the above documents are hereinafter referred to as "the Contract". They shall be taken as
complementary and mutually explanatory of each other, however in the case of conflict or
inconsistency they shall take precedence in the order set out above.
...........
Countmoney.................................
Signature of Employer's Witness
Name: ...
Trustworthy..................................
...
Signed on behalf of Employer
Name:.... Mr Ibrahim
Mr
Countmoney.........................
Designation:..Procurement
Officer, Sandy Desert
District .......
Trustworthy....
Designation:... Executive
Secretary, Sandy Desert
District........................
.............Busyman.................................
...........
Reliable................................
Name: ...
Mr Busyman........................
Designation:..Foreman,
Constructions .......
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Akber
Mohamed
Reliable....
Designation:... Contractor, Akber
Constructions........................
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.................
DRAFT
Not sure what information needs to go in this table below pls complete if possible
JPLG
OSR/Fiscal Transfer
Others
Payment Schedule:
The payment schedule is as follows:
First payment of US $.....20,000............... which is equivalent to 40% of the total contract
value due within 2 weeks of;
Certificate of Payment
Certificate of Payment
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