New IsDB Project Procurement Framework

The Set of Guidance Notes Supplementing the Guidelines

&
Standard Procurement Documents (SPD)
2019
 1. Introduction

The Guidelines for Procurement Guidelines for Procurement of Consultant

of Goods and Works Services

Complemented by new GUIDANCE NOTES on IMPORTANT TOPICS:

• Guidance Notes Provide Recommendations ONLY

• In Case of Contradiction between Guidelines & Guidance Notes, GUIDELINES Prevail.

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1. Introduction : Guidance Notes

1. Procurement Plan / Strategy

Document

2. Procurement Related Complaints

Handling

3. Prior and Post Review

Guidance
4. Advanced Contracting and Notes
Retroactive Financing Page-1

5. Procurement in Fragile and Conflict

Affected States

6. Hands-On Expanded
Implementation Support

7. E-Procurement

Guidance Notes

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1. Introduction : Guidance Notes

8. Selection Of Consultants
1. Procurement Plan / Strategy
Document
9. New Procurement Approaches
10.2.Joint Ventures and
Procurement Other
Related Types Of Association
Complaints
Handling
11. Eligibility
12.3.Conflicts
Prior andof Post Review
Interests and Unfair Competitive Advantage
Guidance
13.4.Gender
Advanced ContractingSocial
Consideration, and and Sustainable Public Procurement Page-2 Notes
Retroactive Financing
14. Abnormally Low Tenders-ALT
15.5.Non-Compliance
Procurement in Fragile and Conflict
Affected States
16. Alternative Procurement Arrangements
6. Hands-On Expanded
17. PPP and Other Private Sector Methods
Implementation Support
18. Risk Based Procurement
7. E-Procurement
19. Expedited processes for LLF Projects
Guidance Notes

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 Key Guidance Notes

2. Procurement
1. Procurement Plan
Related 3. Prior and
/ Strategy
Complaints
Document Post Review
Handling

5. Procurement in
4. Advanced Fragile and 6. Hands-On
Contracting and
Retroactive Financing Conflict Affected Implementation
States Support

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Key Guidance Notes: Procurement Strategy
Contents (of Guidance Note)

Section 4 -
Section 2 - Assessment of
Section 3 - Section 5 -
Section 1 - Procurement Operating and
Project Stakeholder
Introduction Planning & Beneficiary
Overview Analysis
Strategy Capacity

Section 9 -
Section 6 - Section 8 -
Section 7 - Procurement
Procurement Market
Procurement Options and
Risk Research and
Objectives Recommendati
Assessment Analysis
ons
Annex I - Example Procurement Plan
Annex II - Procurement Options and Recommendations Template
Annex III - Project Overview Template
Annex IV - Procurement Strategy Template

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 Key Guidance Notes: Procurement Related Complaints Handling
Contents (of Guidance Note)

Section 2 - Section 3 - Section 4 -

Section 1 - Section 5 -
Roles and Complaint Standstill
Introduction Timelines
Responsibilities Process Period

Section 6 -
Contract-
Related
Complaints

Annex I – Complaint Template

Annex II – Acknowledgment of Procurement-Related Complaint Template

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 Key Guidance Notes: Prior and Post Review
Contents (of Guidance Note)

Section 2. Prior Section 4.

Section 3. Prior
and Post Related topics
and Post
Section 1 - Review for and
Review for
Introduction Goods, Works clarifications on
Consultancy
and Related Prior and Post
Services
Services Review

Annex I. IsDB Member Countries

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 Key Guidance Notes: : Advanced Contracting and Retroactive Financing
Contents (of Guidance Note)

Section 2 – Section 3 -
Section 1 -
Advanced Retroactive
Introduction
Contracting Financing
 Background  Background
 Circumstances  Purpose
of Use  Uses of Retroactive Financing
 Safeguards  Limitations of Retroactive
Financing
 Control Measures
 Exceptions

Annex I. IsDB Member Countries

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 Key Guidance Notes: : Procurement in Fragile and Conflict Affected States
Contents (of Guidance Note)

Section 2 - Section 3 –
Procurement in Procurement in
Section 1 -
Fragile, Conflict- Fragile,
Introduction
Affected States Conflict-
(Overview) Affected States
 Project Design and Procurement Planning
 Procurement Preparedness
 Situational Response
 Application of IsDB Regulations and Procedures
Annex I. IsDB Member Countries
during Emergencies
Annex II. Summary of Measures
for Fragile, Conflict-Affected and  Operational Context and Market Conditions
Emergency Situations  Organizational and Institutional Support
 Use of Procurement Agents
 Flexible Arrangements for Procurement
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Key Guidance Notes: Hands-On Expanded Implementation Support
Contents (of Guidance Note)

 Bid opening
Section 2.  Bid Evaluation
Applicability for  Debriefing Bidders and addressing complaints
Section 1 - HEIS at Different  Debriefing
Introduction stages of  Addressing complaints
Procurement
 Contract Negotiations and Technical Discussions
Process
 Contract Management/Implementation
 Project Preparation: Design of an
 Risk Management
effective implementation support plan
 Determination of Application
 Project Implementation
 Termination of HEIS
 Preparation of Procurement
Documents  Determination of Application for HEIS,
Termination of HEIS and Roles of Different
 Bidding Process
Parties in HEIS is given in the Attachment
 Pre-Bid meeting

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 SPD Standard Procurement
Document
01 Introduction
Use of SBDs , Revision Process and Purpose

02 Common Key Changes

New Award Criteria, Abnormally Low Bid/Proposal,
Unbalanced or Front Loaded Bids, Notification of
Intention to Award (NIA), Procurement-related
complaints, Environmental, Social, Health & Safety and
Business Day

03 Some Key SPDs

Standard Bidding Document for Procurement of Plant
Design, Supply, and Installation, Major Works, Small
Works, Standard Request for Proposals (SRFP) for
Selection of Consultants and Standard Shopping
Documents for Procurement of Works and Goods

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Introduction (1/4)
Sample Standard
NEW SUITE OF STANDARD PROCUREMENT DOCUMENTS ( SPDs)

REOI Shopping Documents for Procurement of

Works and Goods
PS & PP Templates
Pre-qualification Document
GPN Standard RFP Selection of Consultants
SPN RFP Financial Auditing
Evaluation
SBD for St Evaluation Report Consultants
Procurement of Plant St Evaluation Report Goods and Works
Procurement of Goods
Users’ Guides
SBD Works - Major Works
User's Guide For PQD for Proc of Works
SBD Works Smaller
Contracts User’s Guide for SBD Major Works

SPD - January 2019

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Introduction (2/4)

Beneficiaries are mandated to use the Bank’s

Standard Bidding Documents(SBD) when
available as per Procurement Guidelines –
Para 2.27 Where no relevant
standard bidding The Bidding
documents have Document and
Use of SBDs guarantees better quality of been issued, the its content shall
Beneficiary’s documents Beneficiary shall not contradict
use other the provisions of
internationally IDB
recognized bidding Procurement
SBDs serve as training tools for Bank staff as documents and Guidelines
well as Beneficiaries, promoting best practice conditions of
contract and
contract forms
acceptable to IDB

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Introduction (3/4)
Use of SBDs facilitates
1) Preparation of procurement
documents by Beneficiary,
2) Review by the Bank
3) Bid preparation by
candidates
 Promotes competition for
Bank-financed contracts
 Promotes good governance
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Purpose
 Instruct bidders on procedure
for submission of bids
 Describe goods or works to be
produced
 Inform the bidders of criteria
for evaluation
 Define conditions of contract
Introduction (4/4)

Revision Process
 SPDs developed from existing SBDs and modified
to reflect the New Guidelines
• Mandatory for
international  Maintained existing category classifications:
Use of New SPDs

competitive  Goods
procurements  Works
where the Project  Consulting services
is approved after Maintained structure of SBD documents:
31st March 2019;
 Instruction to Bidders (ITB)
 Bid Data Sheet (BDS)
• May be used for  Employer’s Requirements
national  Conditions of Contract
competitive
procurements;

• Also mandatory for

new procurements
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for projects
Common Key Changes (1/8)
The following Key Changes are common to many of the new SPDs

1
Abnormally Low Bid/Proposal
2 New award criteria

3
Notification of Intention to Award,
Standstill Period + debrief
4 Unbalanced or Front Loaded Bids

5
6
Environmental, Social, Procurement-related complaints
Health & Safety

7 Business Day

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Common Key Changes (2/8)
New Award Criteria Contract is awarded to the Bidder offering the Most Value for Money.

This is the Bidder that meets the Qualification Criteria and whose Bid has been determined to be:
Substantially responsive to the Bidding document Lowest evaluated cost
Time schedule may be taken into account in evaluation. Delay may be monetized and added to the
cost. No credit for earlier completion
Life cycle costs may be taken into account in contracts for “ Goods (equipment)” and “ Design,
Supply & Installation (Plant)”

The following may be monetized in evaluation of bids for “ Goods (equipment)”

Availability in the Purchaser’s Country of spare parts and after sales services for equipment
offered in the bid

Deviations in payment schedule Performance and productivity of the equipment

Cost of major replacements

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 Common Key Changes (2/8)

a methodology to evaluate all of the costs over the life cycle

Life-cycle costing (LCC) of works, supplies or services.

Conventional approach : can be described as a financial assessment of the

following types of internal costs (cost categories):
investment costs, which include purchase price and, where applicable, other associated
costs, such as installation, commissioning, and initial training of users;

operating costs, which include consumption of energy, consumables and/or other resources
needed for the use of the product;

maintenance costs, which may include any service charges in this respect and spare parts
that have to be periodically replaced;

Cost of major replacements, and end-of-life costs, such as decommissioning and disposal

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Common Key Changes (3/8)
Abnormally Low Bid/Proposal
ALB/P occurs
Where the price, in combination with other elements, appears unreasonably low, to the extent that it
raises material concerns as to the bidder’s/proposer’s capability to perform the contract for that
price.
The 5 stages in managing an ALB/P

Identify Justify Decide

Clarify Verify
Beneficiary Bidder/proposer Beneficiary analyzes Beneficiary
Beneficiary prepares a the justification to decides
seeks
identifies a justification of verify if it provides whether to
clarification
potential the price. reasonable accept or reject
from the
ALB/P explanation and the
bidder/proposer
validation of the price bid/proposal

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Common Key Changes (4/8)
Unbalanced or Front Loaded Bids
Where the prices for items to be executed at the beginning of the project have been increased and prices for
items at the end of the project have been decreased without altering the total cost. The intention is to increase
the Contractor’s cash flow at the beginning of the project.

 Beneficiary may require the Bidder to provide written clarifications.

 Clarifications may include detailed price analyses to demonstrate the consistency of the Bid
prices
 After evaluation of the detailed price analyses presented by the Bidder, the Employer may as
appropriate:
 Accept the Bid; or
 Require that the total amount of the Performance Security be increased at the expense
of the Bidder to a level not exceeding 20% of the Contract Price; or

 Reject the Bid.

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Common Key Changes (5/8)
Notification of Intention to Award (NIA) + Standstill period
Once Beneficiary decides who to award contract to it
1 must inform other bidders/proposers

Send NIA to each bidder/proposer that submitted bid/proposal (but

2 not to those who have previously been told they were not successful)

3 Sending NIA starts the standstill period

NIA must include

4  Details of the successful bidder +  Instructions on how to request a
the contract price debriefing
 Names of all other bidders and their prices  Date Standstill Period will end
 Statement why recipient was not successful

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 NEW
Standstill Period Timeline PROVISION

The Standstill Period commences on the day following The Standstill Period expires at midnight
the transmission of the Notice of Intention to Award to on the tenth day (unless extended)
all Bidders/Proposers

Transmit Award the contract on

Notifications of  Standstill Period (10 Business Days)  or after 11th day
Intention to Award
1 1 1 1
BUSINESS
1 2 3 4 5 6 7 8 9
DAYS
BIDDER/PROPOSER TO
0 1 2 3
REQUEST DEBRIEF
WITHIN
3 BUSINESS DAYS
BORROWER TO PROVIDE DEBRIEF WITHIN
5 BUSINESS DAYS OF RECEIPT OF TIMELY
REQUEST
A COMPLAINT MAY BE SUBMITTED ANYTIME DURING STANDSTILL PERIOD
 SPD new
NEW
FEATURE Extended Standstill Period PROVISION
S
 Bidder/Proposer submits request for a debrief
 Borrower unable to provide debrief within 5 Business Days
 Standstill Period extended to 5 Business Days after the debrief takes place

EXAMPLE
EXTENDED Standstill
 ORIGINAL Standstill Period (10 Business Days) 
Period
1 1 1 1 1 1
BUSINES
1 2 3 4 5 6 7 8 9
S DAYS
0 1 2 3 4 5
BIDDER
REQUESTS
DEBRIEF
DATE OF LATE
DEADLINE FOR BORROWER TO PROVIDE DEBRIEF BY THE
DEBRIEF BORROWER
EXTENDED STANDSTILL PERIOD ENDS

24
 SPD new
NEW
FEATURE Late Request for Debrief PROVISION
S
 If Bidder/Proposer submits a late request for a debrief
 Borrower to provide debrief as soon as possible
 and normally no later than 15 Business Days after publication of the Contract Award
Notice
EXAMPLE
 Standstill Period (10 Business Days)  Standstill Period is NOT extended
BUSINESS 1 2 3 4 5 6 7 8 9 10 11 - - - - - - - - 26
DAYS
DEADLINE TO
REQUEST A DEBRIEF

LATE REQUEST FOR PUBLICATION OF CONTRACT

DEBRIEF RECEIVED AWARD NOTICE

BORROWER TO PROVIDE DEBRIEF NO LATER THAN 15 DAYS AFTER CONTRACT AWARD

NOTICE

25
Common Key Changes (6/8)
Procurement-related complaints
Procedure for Procurement-related Complaints is detailed in Annex C of the Procurement
Guidelines. New Provisions have been added in the ITB & BDS.

A Procurement-related Complaint may challenge :

The terms of the Bidding document

The beneficiary’s decision to award the contract

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Common Key Changes (7/8)
Environmental, Social, Health & Safety
New Optional ESHS Requirements have been added in the SPDs

Contractor required to
submit
Code of Conduct (ESHS) that applies to his personnel, to ensure
compliance with ESHS Obligations

Management Strategy & Implementation Plans to manage : traffic; water

resources; ..etc...

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Common Key Changes (8/8)
Business Day

In SPDs a ‘day’ is a calendar day, unless

it is specified as a ‘Business Day’
Contract conditions continue to be
based on calendar days
A Business day is any day that is an official
working day of the Beneficiary - it excludes
the Beneficiary’s official public holidays
Examples of when Business Days apply:
 The calculation of the Standstill
Period
Business Day is clearer for the market
 The period within which
bidders/proposers may request a
debrief;
 Time allowed for submission of
procurement-related complaints

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 Some Key SPDs (1/6)

Standard Bidding Document for Procurement of Plant Design, Supply, and Installation

 Shall be used by Beneficiaries for procuring of Plant Design, Supply, and Installation contracts
 Under International Competitive Bidding among Member Countries (ICB/MC) or
 Open International Competitive Bidding (ICB)
 Either following a Prequalification process, or without Prequalification.

Use in contracts involving the design, supply, installation and commissioning of specially engineered
plant and equipment, such as:

Turbines, generators, boilers, Switchyards, pumping stations,

telecommunications, process and treatment plants, power, water,
sewerage, similar projects

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 Some Key SPDs (1/6)

Standard Bidding Document for Procurement of Plant Design, Supply, and Installation

Should be used when Can be used for

The value of the plant and equipment portion Single Stage Bidding- technical & financial
represents the major part of the estimated co proposals submitted together
ntract value,
Two Stage Bidding- technical proposals sub
Or
mitted in 1st Stage & Modified Technical pro
The nature and complexity of the plant and
posals
equipment requires elaborate testing,
commissioning and acceptance procedures + financial proposals in 2nd Stage.

Main Features:
 Beneficiary prepares Performance Specifications, not detailed technical specifications.
 Bidders propose Concept Design at Bidding stage, and the eventual Contractor prepares the
detailed engineering design.
 Contract Price is on Lump Sum Basis.

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Some Key SPDs (2/6) Standard Bidding Document for Procurement of Major Works

To be used for the procurement of admeasurement (unit price or rate) type of works through
International Competitive Bidding among Member Countries (ICB/MC) or Open International
Competitive Bidding.

These Bidding Documents are not suitable for lump sum contracts without substantial changes
to the method of payment and price adjustment, and to the Bill of Quantities, Schedules of
Activities, and so forth

These SBDW are mandatory and required for use in major works contracts (those estimated
to cost more than USD 10 million, including contingency allowance) unless IsDB agrees to
the use of other IsDB Standard Bidding Documents on a case-by-case basis.

Beneficiary prepares Detailed Engineering design, Drawings and Technical Specifications.

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Some Key SPDs (2/6) Standard Bidding Document for Procurement of Major Works

Conditions of Contract Based on the 2010 FIDIC MDB Harmonized Edition ( currently being
upgraded to FIDIC 2017 version)
These SBD are required for use in major works contracts (those estimated to cost more than
USD 10 through International Competitive Bidding among Member Countries (ICB/MC) or Open
International Competitive Bidding, with Post-Qualification.

May be adapted to National Competitive Bidding

May be used in Unit price contracts but require substantial amendments for lump sum contracts

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Some Key SPDs (3/6) Standard Bidding Document for Procurement of Small Works
PART 1 – Bidding Procedures PART 2 – Works Requirements PART 3 – Conditions of Contract
and Contract Forms

Section I. Instructions to Bidders
Section II. Bid Data Sheet
Section III. Evaluation and
Qualification Criteria
Section IV. Bidding Forms
Section V. Eligible Countries
Section VI. IsDB Policy – Corrupt &
Fraudulent Practices
Section VII. Employer Requirements Section VIII. General
Conditions (GC)
Section IX. Particular
Conditions (PC)
Section X. Contract Forms

Section I, V, VI, VIII, X shall not be changed or revised,

Sections II, III, IV , VII, IX shall be customized as per the assignment,

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Some Key SPDs (4/6) Standard Request for Proposals (SRFP) for Selection of Consultants

The SRFP can be used with different selection methods described in “Guidelines for the Procurement of
Consultant Services”, including:

Least-Cost
Selection (“LCS”)

Selection under a
Fixed Budget
(“FBS”)
Quality-Based
Selection (“QBS”),

Quality- and Cost-

Based Selection
(“QCBS”)

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Some Key SPDs (4/6) Standard Request for Proposals (SRFP) for Selection of Consultants

The SRFP is not required for following selections:

 Selection of individual consultants

 In the case of entering into an agreement with a UN agency in a format approved by IsDB.

For Selection Based on Consultant’s Qualifications (“CQS”) or assignments under any selection
method costing less than ID 100,000 equivalent (1 Islamic Dinar, ID = 1 Special Drawing Rights, SDR)
relevant elements of this SRFP may be used and further simplified for the purpose of a particular
assignment

The SRFP includes two standard forms of contract

 Time-based assignments  Lump-sum assignments.

Lump sum contracts are normally used for feasibility study and design assignments

Time based contracts are normally used for supervision of construction

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Some Key SPDs (5/6)
Standard Shopping Document for Procurement of Works

Used for simple local civil works that are low in value
1

2 Specifications; Bills of Quantities/Activity Schedule; drawings

are prepared by the Beneficiary.

3 Simplified Conditions of Contract are part of the document

4
Quotations shall be obtained from at least 3
firms

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 Some Key SPDs (6/6)

Standard Shopping Document for Procurement of Goods

Used for low-value, readily available off-the-shelf goods

Should be a sufficient number of local and/or foreign suppliers (a minimum of three) that
can meet the requirements of the procurement and ensure a satisfactory level of price
competition

Technical Specifications and Quantities are prepared by the

Beneficiary

Simplified Conditions of Contract are part of the document

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Thank you!