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WORLD BANK

Implementation Support Workshop

February 06-10, 2012

Ankara

WORLD BANK

Procurement Cycle and

Planning

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PROCUREMENT CYCLE

AND

PLANNING

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PROCUREMENT CYCLE

GENERAL

PROCUREMENT

NOTICE

CONTRACT

PERFORMANCE

AD FOR PRE-

QUALIFICATION

OR BIDDING

CONTRACT

AWARD

POST-

QUALIFICATION

PREQUALIFICATION

BID OPENING

ISSUE OF

BIDDING

DOCUMENTS

BID EVAL.

SELECTION

PRE-BID

CONFERENCE

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FLOW CHART OF PROCUREMENT PROCESS

NORMALLY

AGREES DURING

APPRAISAL

Financing

Agency

DEFINE GOODS, WORKS, AND

SERVICES PACKAGE

CONTRACTS, MODE OF

PROCUREMENT

Project Authority Bidder/Contractor

OTHER MODES OF

PROCUREMENT

COMPETITIVE BIDDING

PREQUALIFY

BIDDERS

NO YES

PREPARE BID DOCS PREPARE

PREQUAL. DOCS.

REVIEWS

REVIEWS

ADVERTISE

BIDDING DOCS.

ADVERTISE

ISSUE PREQUAL.

DOCUMENTS

TAKES OUT

DOCUMENTS

PREPARE

BIDDING DOCS REVIEWS

REVIEWS

EVALUATE SELECT

QUALIFIED BIDDERS SUBMITS INFORM.

TAKES OUT BID DOCS. ISSUE BID DOCUMENTS

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FLOW CHART OF PROCUREMENT PROCESS Financing

Agency Project Authority Bidder/Contractor

RECEIVES CLARIFICATION

REQUESTS

PREBID

MEETING

ATTENDS

MEETINGS OR

REQUESTS

ISSUES

CLARIFICATION

RECEIVES

CLARIFICATION

RECEIVES BIDS

& EVALUATES

MAKES AWARD

FORMALIZES,

SIGNS CONTR.

SUBMITS BID

ACKNOWLEDGES

AWARD

SIGNS CONTRACT

ISSUES NOTICE

TO PROCEED

STARTS WORK

RECEIVES COPY

OF CONTRACT

REVIEWS

REVIEWS

REVIEWS

REVIEWS

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What? (Contract packages)

How much?($)

How? (Strategy)

Who? (Organization)

When? (Scheduling & Monitoring)

Formally Agreed Procurement Plan for

first 18 months by Negotiations.

To be published on Bank’s website both original and updates

Close monitoring required. Quarterly PMRs.

If no Bank approval is given for procurement plan there can be no Bank clearance of the procurement package

PROCUREMENT PLANNING

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An adequate PP:

Limits scope of non-compliance with agreed

procedures (misprocurement) and corruption

improves transparency and predictability

Rational basis for cash flow requirements

provides a good basis for monitoring.

PROCUREMENT STRATEGY & PLANNING

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Inadequate PP leads to: delays

in appropriate packaging

cost increases

improvisation of actions including incorrect short cuts in the procurement process

Procurement takes a long time and one must plan!!

Lead time Administrative

Mobilization

Manufacture

Delivery / Construction

PROCUREMENT PLANNING

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PROCUREMENT PLANNING DECIDE STRATEGY

SEPARATE CONTRACTS FOR EACH COMPONENT

OR

SINGLE RESPONSIBILITY FOR GROUPS OF CONTRACTS

OR

TURNKEY FOR ENTIRE PROJECT

CONSIDERATIONS

TECHNICAL INTERFACE

SOURCES OF SUPPLY

COORDINATION CAPABILITY

TIME

PACKAGE

SIMILAR ITEMS

TRANSPORTATION

GOODS vs WORKS vs SERVICES

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CHOICE OF PROCEDURE ICB

NCB

LIB

SHOPPING

SINGLE SOURCE

CONSULTANT PROCEDURES (QCBS, QBS, LCS, FB, CQ, ETC.)

SCHEDULING ASSESS: LEAD TIME

• ADMINISTRATIVE REQUIREMENTS AND PROCESS

• CONTRACT PERFORMANCE

• REVIEW PROCESS

DETERMINE CRITICAL PATH

• DEVELOP SCHEDULE FOR EACH CONTRACT

ASSESS STAFF RESOURCES

MONITOR PERIODICALLY

PROCUREMENT PLANNING

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LARGE WATER PUMPS (PRODUCTION MODEL)

LEAD TIME

DELIVERY

TIME INSTALLATION ADM. TIME

– ADVERTISE

– PREP. BID DOCs

– BANK NO OBJ.

– ISSUE B.D.

– EVALUATE BIDS

– BANK NO OBJ.

– SIGN CONTRACT

– ISSUE L/C

– RECEIVE PERFORM.

SECURITY

RECEIVE L/C

PACKAGE

ARRANGE

SHIPPING

INSURANCE

DELIVER TO

PORT

ARRIVE AT

PORT

• UNLOAD SHIP

• CLEAR CUSTOMS

• LOAD TRUCK

• DELIVER SITE

• UNLOAD & STORE

(Protect)

• INSTALL

• TEST

• ACCEPTANCE

WARRANTY PERIOD (12-18 MONTHS)

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PLANNING: SAMPLE PLAN FOR AIRPORT

CONTRACTS:

1. RUNWAYS ICB CONSTRUCTION

2. TERMINAL BUILDING ICB CONSTRUCTION

3. RADAR AND TELECOM MANUFACTURING

EQUIPMENT ICB AND INSTALLATION

4. SUPPORT EQUIPMENT DELIVERY &

ICB/NCB INSTALLATION

5. ACCESS ROADS NCB CONSTRUCTION

PARKING LOT