naip- procurementmanual

[For official use only]

Indian Council of Agricultural Research Ministry of Agriculture

(Government of India) New Delhi

Reference Handbook

Procedures & Guidelines For

Procurement of Goods/Equipment, Works and Consulting Services

under

National Agricultural Innovation Project Funded by World Bank

[Credit No. 4161-IN & 4162-IN]

Project Implementation Unit (PIU), NAIP,

5th Floor, Krishi Anusandhan Bhawan – II (KAB-II), Pusa Campus, New Delhi – 110 012

Chapter – II : Procurement provisions in the Project Agreement

TABLE OF CONTENTS Chapter Description Page

I General introduction 1-3

II Procurement provisions in the Project Agreement

Procurement and Consultants’ Services

Section I : General 4

Section II : Particular Methods of Procurement of Goods, Works and Services (other than Consultants’ Services)

4-5

Section III : Particular methods of procurement of Consultants’ Services

5-6

Section IV : Review by the Association of Procurement Decisions 6

III Applicable Procurement Guidelines

1. Procurement Plan 7

2. Procurement Guidelines 7-8

3. Transparency In Public Procurement 8-9

4. Settlement Of Disputes, Reconciliation And Arbitration 9-10

5. Fraud And Corruption 11

6. Warranty 11

7. Uploading Of Data On Website 11

IV Method of Procurement – Salient features

A, Procurement of Goods & Works 1. International Competitive Bidding (ICB) 13-14 2. Other Methods of Procurement 14-17 2.1 National Competitive Bidding (NCB) 2.2 Shopping 2.3 Direct Contracting 2.4 Force Account 3. Misprocurement 17 4. Important aspects for consideration in Procurement of Costly

Equipments 17-19

4.1 Specifications 4.2 Warranty: 4.3 Qualification Criteria

4.4 Training 4.5 On-site Service 4.6 Consumer Certificates 4.7 Bid Evaluation Committees 4.8 Indian Laws 4.9 Successful Bidder


Chapter Description Page 4.10 Payment Schedule

A. B. Procurement of Consulting Services 19-22

1. Methods for selection of Consultants 1.1 Quality and Cost based Selection (QCBS) 1.2 Other methods of procurement 1.2.1 Quality Based Selection (QBS) 1.2.2 Selection under a Fixed Budget System (FBS) : 1.2.3 Least Cost Selection (LCS) 1.2.4 Selection based on the Consultant’s Qualification (CQS) 1.2.5 Single Source Selection (SSS) 1.2.6 Selection of Individual Consultants (SIC) 2. Salient features for Procurement of Consultants 22-24 2.1 General Considerations 2.2 Preparation of the Terms of Reference of the Consultant 2.3 Cost Estimates or Budget 2.4 Advertising (Seeking Expression of Interest) for Short-listing 2.5 Short listing of Consultants 2.6 Other Considerations 2.7 Lump Sum Contracts 2.8 Time-based Contracts 3. Misprocurement 25

V Detailed Procurement Procedures and Formats for International Competitive Bidding (ICB)

26-39

VI Detailed Procurement Procedures and Formats for National Competitive Bidding (NCB)

40-56

VII Detailed Procurement Procedures and Formats for Shopping

57-58

VIII Detailed Procurement Procedures and Formats for Direct Contracting

59-60

IX Detailed Procurement Procedures and Formats for Force Account

61

X Procurement procedures and formats for Selection of Consultants

1. Main Considerations In Selection Of Consultants 2. Eligibility 3. Association Between Consultants 4. Selection Of Consultant 5. Method For Selection Of Consultant 5.1 Quality And Cost-Based Selection (Qcbs) 5.1.1 Terms of Reference (TOR) 5.1.2 Cost Estimate (Budget) 5.1.3 Advertising 5.1.4 Short List of Consultants 5.1.5 Preparation and Issuance of the Request for Proposals

(RFP) 5.1.6 Letter of Invitation (LOI)

62 62 62-63 63 63-71


Chapter Description Page 5.1.7 Information to Consultants (ITC) 5.1.8 Contract 5.1.9 Receipt of Proposals 5.1.10 Evaluation of Proposals: Consideration of Quality and Cost 5.1.10.1 Evaluation of the Quality 5.1.10.2 Evaluation of Cost 5.1.10.3 Combined Quality and Cost Evaluation 5.1.11 Rejection of All Proposals, and re –invitation 5.1.12 Negotiations and Award of Contract 5.1.13 Publication Of The Award Of Contract 5.1.14 Confidentiality 5.2 Other Methods of Selection 5.2.1 Quality Based Selection (QBS) 5.2.2 Selection under a Fixed Budget 5.2.3 Least-Cost Selection 5.2.4 Selection Based on Consultants’ Qualifications 5.2.5 Single-Source Selection 5.2.6 Selection of Individual Consultants 6. Types of Contracts 6.1 Lump Sum (Firm Fixed Price) Contract 6.2 Time-Based Contract 7. Important Provisions

71-75 75-76 76-77

XI Review Procedures and documents to be submitted to Bank

78-80

XII Introduction to Incoterms – 2000 81-90

XIII Provisions of exemption from Customs and Excise tariff relevant to World Bank funded

91

Annexures

1 Bid Evaluation Standard Forms for Chapter V 92-126

2 Standard Form under Chapter VI 127-160

3 Formats under Chapter VII 161-176

4 Evaluation report Forms for Chapter X 177-201

5 Prior and Post Review checklists form Chapter-XI 202-221

6 Formats referred under Chapter XIII 222-227

7 World Bank’s procurement Guidelines

7.1 For Goods/Works

7.2 For Consultancy


ABBREVIATIONS AND ACRONYMS

Abbreviations Acronyms

IDA International Development Association

NAIP National Agricultural Innovation Project

ICB International Competitive Bidding

NCB National Competitive Bidding

TTL Task Team Leader

PS Procurement Specialist

PAS Procurement Accredited Staff

IBRD International Bank for Reconstruction and Development

QCBS Quality and Cost Based Selection

QBS Quality Based Selection

FBS Selection under Fixed Budget

SIC Selection of Individual Consultant

LCS Least Cost Selection

CQS Selection Based on Consultants’ Qualification

SSS Single Source Selection

DGS&D Directorate General of Supplies & Disposal

PIP Project Implementation Plan

IFB Invitation for Bids

UNDB United Nations Development Business

REOI Request for Expression of Interest

RFP Request for Proposal

TOR Terms of Reference

LOI Letter of Invitation


Abbreviations Acronyms

ITC Instructions to Consultants

CGL Consultancy Guidelines

ITB Instructions to Bidder

GCC General Conditions of Contract

SCC Special Conditions of Contract

BDS Bid Data Sheet

SBD Standard Bidding Document

BG Bank Guarantee


CHAPTER I

General Introduction International Development Association (IDA) has provided financing of US$ 200 millions for the implementation of National Agricultural Innovation Project [NAIP, Project ID – P092735, IDA Credit No. 4161-IN & 4162-IN]. The objective of the Project is to contribute to the sustainable transformation of the India’s agricultural sector from primarily food self-sufficiency to one in which a market orientation is equally important for poverty alleviation and income generation, and to accelerate the collaborative development and application of agricultural innovations between public research organizations, farmers, the private sector and other stakeholders. Sound public procurement is vital for ensuring success of a project through promoting good governance and better fiscal management with economy and efficiency. Under the World Bank financed Projects, the Procurement procedures of the World Bank are required to be followed. This is essential to make the expenditure eligible for reimbursement. The introduction to procurement policies is as under :- 1. The Articles of Agreement require the Bank to ensure that the proceeds of

Loan/ Credit are used for the purposes intended with due attention to economy and efficiency and without regard to political or other non-economic influences or considerations.

2. Accordingly, Bank has developed Guidelines for procurement of Goods, Works and Consultancy, which represent:

Accumulated experience of the Bank/ IDA; and • •

• • •

Good public procurement practices on a global scale. 3. Impartial administration of procurement among all eligible bidders is essential

to maintain Bank's ability to raise financial resources from its member countries and in the capital markets.

4. Procurement is an important aspect of Bank's operations. It is a critical element in project implementation and unless it is carried out efficiently and promptly, the full benefits of the Project cannot be realized. Bank loans/ credits are normally disbursed as expenditures are incurred. Since delays in procurement, delays disbursements, every effort should be made to ensure prompt handling of procurement.

5. Good procurement practices alone cannot ensure that the Bank assisted Projects will achieve their developmental goals, but these will definitely enhance the developmental effectiveness. However, poor procurement practices virtually guarantee that these development goals will not be fully achieved.

6. The responsibility for the execution of the Project and therefore for the award and administration of the contracts under the Project rests with the Borrower.

7. Role of procurement is critical for: Ensuring satisfactory implementation; Ensuring speedy transfer of resources by way of disbursement; Achieving economy and efficiency; and


Ensuring success of the Project. •

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8. While in practice, the specific procurement rules and procedures to be followed in the implementation of a project depend on the circumstances of the particular case, following four considerations generally guide the Bank's requirements:

The need for economy and efficiency in the implementation of the project including the procurement of the goods and works involved; Bank's interest as a co-operative institution in giving all eligible bidders from developed and developing countries an opportunity to compete in providing goods, works and services financed by the Bank; Bank's interest as a development institution in encouraging the development of domestic contracting and manufacturing industries in the borrower’s country; and The importance of transparency in the procurement process.

The Bank has found that, in most cases, the above needs and interests can be best realized through International Competitive Bidding (ICB), properly administered and with suitable allowance for preferences for domestically manufactured goods and, where appropriate, for domestic contractors for works under prescribed conditions.

9. Thrust of Bank's current procurement policy are: Strong focus on the development function and on increased borrower accountability; Emphasis on upfront project work, stressing better procurement planning and client capacity analysis to ensure good quality at entry; and An integral approach to supervision of procurement that strengthens post review of contracts and sets prior review thresholds on the basis of borrower's procurement capacity and past performance.

10. Features of Bank's Model procurement documents are: Sharing of risks between the parties to the contract; Incorporation of suitable qualification criteria; Incorporation of precise and fair evaluation criteria; Incorporation of non-discriminatory/ broad technical specifications; Ensuring transparency by public bid opening; pre-disclosure of qualification and evaluation criteria; and absence of negotiations; Award to the lowest evaluated responsive bidder; and Incorporation of a suitable dispute resolution mechanism and market oriented payment terms.

11. Methods of Procurement:

Method of Procurement that a Borrower chooses to use for a particular project depends on -

1. the nature and size of the project 2. it's procurement content 3. urgency


Commonly used methods are- 1. International Competitive Bidding (ICB) 2. National Competitive Bidding (NCB) 3. Limited International Bidding (LIB) 4. Shopping (International & National) 5. Direct Contracting 6. Force Account

Bank considers ICB as the most preferred method of procurement with an optional element of domestic preference. Other methods of procurement may be adopted where considered appropriate with the approval of :-

Task Team Leader (TTL) Procurement Specialist (PS) Procurement Accredited Staff (PAS)

12. Salient features of the Bank’s policies and procedures for selection,

contracting and monitoring of consultants for projects financed by loan from IBRD or credits/ grants from IDA are :- Need for high quality services Need for economy and efficiency Opportunity to all qualified consultants Transparency in the selection process

Whereas Quality and Cost-Based Selection (QCBS) is the most commonly recommended method, other methods such as Quality Based Selection (QBS), selection under a Fixed Budget (FBS), least cost Selection (LCS), selection based on Consultants Qualifications (CQS) and Single Source Selection (SSS) may be adopted depending upon the size of the assignment, continuation of the previous work, urgency of selection and where the number of qualified firms for the particular assignment is limited.


CHAPTER II Procurement provisions in the Project Agreement

Procurement provisions in the Project Agreement Schedule 2 “Procurement and consultant’s services” annexed to Project Agreement (National Agricultural Innovation Project) stipulate the procurement procedures. These are reproduced below :-

Procurement and Consultants’ Services Section I : General

A. All goods, works and services (other than consultants’ services) shall be procured in accordance with the provisions of Section I of the “Guidelines : Procurement under IBRD Loans and IDA Credits” dated May 2004 (the Procurement Guidelines), and with the provisions of this Schedule.

B. All consultants’ services shall be procured in accordance with Section I

and IV of the “Guidelines : Selection and Employment of Consultants by World Bank Borrowers” dated May 2004 (the Consultant Guidelines), and with the provisions of this Schedule.

C. The capitalized terms used below in this Schedule to describe

particular procurement methods or methods of review by the Association of particular contracts, have the meanings ascribed to them in the Procurement Guidelines, or Consultant Guidelines, as the case may be.

Section II : Particular Methods of Procurement of Goods, Works and

Services (other than Consultants’ Services)

B. International Competitive Bidding : Except as otherwise provided in Part B of this Section, goods estimated to the cost US $ 1 million and above shall be procured under contracts awarded in accordance with the provisions of Section II of the Guidelines and paragraph 5 of Appendix 1 thereto. Domestic Preference will be available in accordance with the provisions of the Guidelines.

C. Other Procurement Procedures

1. National Competitive bidding : Goods and works estimated to

cost more than US$ 50,000 equivalent per contract, may be procured under contracts awarded in accordance with the provisions of paragraphs 3.3 and 3.4 of the Guidelines.


2. Shopping : Goods and works estimated to cost less than US$ 50,000 equivalent per contract may be procured under contracts awarded on the basis of shopping procedures in accordance with the provision of paragraph 3.5 of the Guidelines. Contracts for vehicles costing less than US$ 100,000, however, may be purchased on the basis of shopping procedures. Rate contracts of Director General Supplies & Disposal (DGS&D) are acceptable as substitute to shopping procedures.

3. Direct Contracting : Goods which are proprietary in nature and

estimated to cost less than US$ 10,000 equivalent per contract may all be procured in accordance with the provision of paragraphs 3.6 and 3.7 of the Guidelines. Petty items estimated to cost less than US$ 100 equivalent per contract also may be procured in accordance with the provisions of paragraph 3.7 of the Guidelines.

4. Force Accounts : Works which meet the requirements of

paragraph 3.8 of the Guidelines, and are estimated to cost less than US$ 30,000 equivalent per contract, may be carried out by force account in accordance with the provisions of the said paragraph of the Guidelines provided, however, that works under the Project estimated to cost US$ 10,000 or more proposed under force account procedures will require prior approval from the Association.

5. Consortia Participation in Procurement : Goods and works

required for Subprojects shall be procured in accordance with procedures acceptable to the Association, and specified in the PIP.

Section III : Particular methods of procurement of Consultants’ Services

A. Quality and Cost-based Selection : Except as otherwise provided in Part B of this Section, consultants’ services shall be procured under contracts awarded on the basis of Quality and Cost Based Selection. For purposes of paragraph 2.7 of the Consultant Guidelines, the short list of consultants for services estimated to cost less than US$ 500,000 equivalent per contract may comprise entirely national consultants.

B. Other Procedures

1. Selection under a Fixed Budget : Services for assignments which

the Association agrees meet the requirements of paragraph 3.5 of the Consultant Guidelines may be procured under contracts awarded on the basis of a Fixed Budget in accordance with the provisions of paragraphs 3.1 and 3.5 of the Consultant Guidelines.

2. Least-cost Selection : Services for assignments which the

Association agrees meet the requirements of paragraph 3.6 of the Consultant Guidelines may be procured under contracts awarded on the basis of Least-cost Selection in accordance with the provisions of paragraphs 3.1 and 3.6 of the Consultant Guidelines.


3. Selection Based on Consultants’ Qualifications : Services

estimated to cost less than US$ 200,000 equivalent per contract may be procured under contracts awarded in accordance with the provisions of paragraphs 3.1, 3.7 and 3.8 of the Consultant Guidelines.

4. Single Source Selection : Services for tasks in circumstances

which meet the requirements of paragraph 3.10 of the Consultant Guidelines for Single Source Selection, may, with the Association’s prior agreement, be procured in accordance with the provisions of paragraphs 3.9 through 3.13 of the Consultant Guidelines.

5. Individual Consultants : Services for assignments that meet the

requirements set forth in the first sentence of paragraph 5.1 of the Consultant Guidelines may be procured under contracts awarded to individual consultant in accordance with the provisions of paragraph 5.2 through 5.3 of the Consultant Guidelines. Under the circumstances described in paragraph 5.4 of the Consultant Guidelines, such contracts may be awarded to individual consultants on a sole-source basis.

Section IV : Review by the Association of Procurement Decisions

The Procurement Plan shall set forth those contracts, which shall be subject to the Association’s Prior Review. The prior review thresholds in the procurement plan are as under :- US$ 1 million and above for goods and equipments, US$ 200,000 equivalent and above for works and US$ 200,000 for consultancies involving firms. US$ 50,000 equivalent or more for individual consultants and firms on

Single Source Selection Basis Works to cost US$ 10,000 or more (limiting to US$ 30,000) procured

under Force Account procedures All other contracts shall be subject to Post Review by the Association.

Chapter – III : Applicable procurement Guidelines

CHAPTER III

Applicable Procurement Guidelines 1. PROCUREMENT PLAN

Procurement Plan is the guiding light of a project and is a document that indicates as to What, How and When various activities of procurement is to happen. Prior to the issuance of any invitations to pre-qualify for bidding or to bid for contracts the proposed procurement plan for the project shall be furnished to the Bank for their review and approval in accordance with the provisions of paragraph 1 of appendix 1 of the guidelines.

Procurement Plan gives the details of the procurement of goods ,equipments, civil works and consultancy services for the first 18 months of the project that have to be prior reviewed by the Bank and is updated periodically with Bank`s approval and covers next 18 months of the project implementation. A procurement schedule in the prescribed (format enclosed) indicating details of each package should be compiled and forwarded to the Bank for review and clearance before initiating action .

The Borrower shall promptly inform the Bank of any delay or other changes in the scheduling of Procurement process, which could significantly affect the timely and successful implementation of the project contracts, and agree with the Bank on corrective measures.

2. PROCUREMENT GUIDELINES

A. General of section-I, Schedule 2, annex to the Project Agreement (NAIP) specifies that all goods, works and services (other than consultants’ services) shall be procured in accordance with the provisions of Section I of the “Guidelines Procurement under IBRD Loans and IDA Credits” dated May 2004 (the Procurement Guidelines, enclosed as Annexure 7.1), and with the provisions of this Schedule.

B. General of section-I, Schedule 2, annex to the Project Agreement

(NAIP) specifies that all consultants’ services shall be procured in accordance with Sections I and IV of the “Guidelines : Selection and Employment of Consultants by World Bank Borrowers” dated May 2004 (the Consultant Guidelines, enclosed as Annexure 7.2), and with the provisions of this Schedule.

NOTE :

1. The Development Credit Agreement and Project Agreement govern the legal relationship between the Borrower and the Bank and the Guidelines are made applicable to procurement of goods, works and consultant’s services for the project as provided in the Project Agreement.

2. The rights and obligations of the Borrower and the provider of goods, works and consultant’s services for the project are governed by the bidding documents,


Request for Proposals and by the contracts signed by the Borrower with the provider of goods, works and services and not by these Guidelines or the Development Credit Agreement and Project Agreement.

3. TRANSPARENCY IN PUBLIC PROCUREMENT 3.1 The total value of public procurement in India is over Rs. 400,000 crore

(US$ 100 Billions) i.e. over 25% of the G.D.P. of the country. Public Procurement function have been growing both in terms of size of activity as well as value. With such increase in the activity of public procurement functions, the expectations of the participating industry and the users are also growing. One of the major expectation from the Industry has been to provide better access to information and improved transparency in Public Procurement process which in turn need to demonstrate greater transparency and enhanced level of trust between the buying and supplying agencies.

3.2 The Right to Information Act (RTI) has come into force in India since

October 2005. The Act gives to the Public, legal rights to get information about the utilization of public funds, progress reports of ongoing projects, state circulars, contracts, etc. The new law, places India among 55 countries in the World to have such legislations.

3.3 The Karnataka Govt., have taken lead to enact transparency in Public

procurement Act 1999 which has come into force with effect from 4th October, 2000. The Tamilnadu Govt. have also followed and enacted such a legislation in the State. Some of the other State Govts also have initiated efforts to enact laws and bring Public procurement in the ambit of legal environments. The Act is intended to streamline procedure in Public Procurement and also ensure accountability in Public Procurement.

3.4 Success of a project is dependent on good governance, better fiscal

management with efficiency and economy and sound procurement policies and procedures which are transparent. Procurement Procedures based on World Bank guidelines are required to be followed in world Bank’s financial projects. This is essential for reimbursement of expenditures on the Projects.

3.5 Following considerations generally guide the Bank’s requirements :-

• The need for economy and efficiency in the implementation of

the project. • Bank’s interest as a cooperation institute in giving all eligible

bidders from developed and developing countries an opportunity to compete.

• Bank’s interest as a development institute in encouraging the development of domestic industry.

• The importance of TRANSPARENCY in the procurement procedures.


3.6 In World Bank funded projects, transparency is one of the important aspect. So, in order to ensure transparency in the Procurement procedure, the World Bank has issued guidelines for procurement of Goods, Works, Services and Consultants. World Bank has also standardized the Bidding Documents for such purchases and also the formats for offering Bids against various types of procurement such as ICB, NCB, Shopping, etc.

3.7 Some of the requisites to be followed in the procurement activities to

ensure transparency in contracts as suggested by World Bank are as under :-

i) Equal opportunities to all eligible bidders ii) Wide Publicity of Procurement Notices including in UNDB (on-line). iii) Pre-disclosure of qualification and evaluation criteria iv) To avoid restricted participation, Specification of requirements to be

broad and performance based, and not branded or specific to a particular bidder.

v) Redressal of clarifications of the Bidders vi) Public opening of Bids vii) Notify the proceeding of bid opening/technical score of proposal to

all the participants. viii) Absence of negotiation except in exceptional circumstances ix) Publication of details of contract awarded in UNDB x) Provision of debriefing

4. SETTLEMENT OF DISPUTES,RECONCILIATION AND ARBITRATION

4.1 The provisions for settlement of disputes or differences of any kind ,between the purchaser and the supplier are given in the Guidelines for Procurement, General Conditions of Contract and the Special Conditions of contract of the Standard Bidding Documents issued by the World Bank..

4.2 Various provisions are:

> Resolving disputes or differences amicably by mutual consultations > In case of failure to resolve within 30 days, a notice will be given by

either party indicating its intention to commence arbitration. > Arbitration proceedings shall be initiated as per provisions in the

special conditions of contract. > In the case of contracts with foreign supplier:

1. International Commercial Arbitration. 2. UNCITRAL Arbitration rules. 3. Rules of Conciliation and Arbitration of the ICC. 4. Rules of London Court of international Arbitration. 5. Rules of Arbitration Institute of the Stockholm chamber of

commerce. > Reference to the above provision of rules to be given in the GCC and

SCC.


> In the case of Contracts with supplier of the Purchaser country, the dispute to be referred to adjudication or Arbitration in accordance with the Laws of the purchasers country.

> The World Bank should not be named as Arbitrator. > In case of the contract with an Indian supplier the Arbitration and

Reconciliation Act 1996 will be applicable. > Important features of the act are:

The parties are free to determine the number of arbitrators provided that such number shall not been an even number.

A person of any nationality may be an arbitrator. Unless otherwise agreed by the parties.

In case of disagreement on a procedure for appointing Arbitrators, each party shall appoint one Arbitrator and the two appointed Arbitrators shall appoint the third Arbitrator who shall act as the presiding Arbitrator.

If the appointing procedures as explained does not work and party fail to appoint Arbitrators, the appointment shall be made, upon request of a party, by the Chief Justice of India or any person or institution designated by him.

In the case of appointment of sole or third Arbitrator in an International Commercial Arbitration, the Chief Justice of India or institution designated by him may appoint an arbitrator of a Nationality other than the nationalities of the parties.

The Arbitral tribunal is not bound by the code of Civil Procedure 1908 or the Indian Evidence Act 1872; the parties are given freedom on the procedures to be followed by the arbitral tribunal in conducting it’s proceedings.

The parties shall be treated with equality and each party shall be given a full opportunity to present his case.

The decision of the arbitral tribunal shall be made by a majority of all its members.

The arbitral tribunal shall specify :- i) The party entitled to costs ii) The party who shall pay the costs iii) The amount of costs or method of determining that

amount iv) The manner in which costs shall be paid

4.3 Challenge of Award

> An arbitral award may be seta side by the court only if :- A part was under some incapacity The part making the application was not given proper notice of

the appointment of an arbitrator or of the arbitral proceedings or was otherwise unable to present his case

The arbitral award deals with a dispute not falling within the terms of reference of arbitration

The arbitral award is in conflict with the public policy of India.


5. FRAUD AND CORRUPTION 5.1 Under Chapter “1. Introduction” of the World Bank guidelines on

Procurement of Goods, Works and Services stress upon maintaining highest standards of ethics during procurement and execution of contracts.

5.2 Unethical methods ,such as Corrupt .collusive, coercive and fraudulent

practices adopted by Borrowers, Bidders, Suppliers, Contractors or even consultants in awarding or execution of the contracts may result in rejection of the proposal and cancellation of the related portion of the loan.

In addition ,the Bank may Sanction /declare the firm ineligible either indefinitely or for a particular period.

5.3 Bidding documents may as well be modified to take an undertaking of the

Bidder to observe in Bidding /execution of contract, Country`s Laws against fraud and corruption.

6. WARRANTY 6.1 Warranty and AMC for the duration and life of the equipment are

desirable. We have to be careful in deciding the period for which they are to be provided.

6.2 Laboratory equipments with short life may require shorter warranty period

and AMC. Providing a very long warranty with AMC may add to cost without being fruitfully utilized as the length of commitment does have an effect on price.

6.3 For procurement of costly equipments a warranty with AMC coverage of

around 5 years (2+3years or 3+2years respectively) may be preferred to begin with.

6.4 Warranty period of 24/27 months should be provided only if an accepted

industry standard for the equipment being procured is available. Otherwise, this may result in reduced competition and increased cost.

6.5 Bank Guarantee Coverage for AMC should invariably be obtained. 7. UPLOADING OF DATA ON WEBSITE 7.1 A Website (http://www.icar.org.in/naipdir/index.htm) of NAIP has been

launched and is being updated periodically. All information on the Introduction of the Project, guidelines on the various activities of the project including it`s funding arrangements are available on the net.

7.2 In line with World Bank guidelines to give maximum publicity to the

Tenders and related procurement activities, all General Procurement notices, Expression of Interest (EOI) notices, Bid Documents, Contract award notices will be uploaded on the website .

http://www.icar.org.in/naipdir/index.htm


PROCURMENT SCHEDULE FOR EQUIPMENT AND MATERIALS PROJECT:NATIONAL AGRICULTURAL INNOVATION PROJECT (NAIP)

COUNTRY:INDIA

BORROWER: Government of India Implementation Department: Indian Council of Agricultural Research, (ICAR), Ministry of Agriculture,

20 20 20DESCRIPTION OF ITEMS

AND QUANTITY

METHOD OF PROCUREMENT

ESTIMATED COST in

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APPRAISAL REVISED ACTUAL APPRAISAL REVISED ACTUAL

PREQUALIFICATION ACTIONS PROCUREMENT ACTION METHOD OF PROCUREMENT

A - INITIATE PREPARATION OF PREQUALIFICATION DOCUMENTSAND EVALUATION CRITERIA

1. INITIATE PREPARATIONS

OF SPECIFICATIONS AND BID DOCUMENTS

9. INITIAL DELEVERY AT SITE

ICB - INTERNATIONAL COMPETITIVE BIDDING

B - TRANSMIT DOCUMENTS AND CRITERIA TO IDA

2.TRANSMITSPECIFICATIONS AND BID DOCUMENTS TO IDA

10. INTERIMDELIVERY AT SITE

LCB - LOCAL COMPETITIVE BIDDING

C - IDA CLEARANCE OF DOCUEMTNS AND CRITERIA

3. IDA CLEARANCE OF SPECIFICATIONS AND BID DOCUMENTS

11. FINALDELIVERY AT SITE

PS - PRUDENT SHOPPING

D - ISSUE PREQUALIFICATION NOTICE

4. ISSUE INVITATION TO BID

NEG - NEGOTIATION

E - RECEIPT OF CONTRACTOR PREQUALIFICATION DATA

5. OPEN BIDS

F - TRANSMIT EVALUATION REPORTAND RECOMMENDATIONS TO IDA

6. TRANSMIT EVALUATION REPORT AND AWARD RECOMMENDATIONS TO IDA

G - IDA CLEARANCE OF RECOMMENDATIONS

7. IDA CLEARANCE OF RECOMMENDATIONS

8. AWARD CONTRACT

Chapter – IV : Methods of Procurement – Salient Features

CHAPTER IV

METHODS OF PROCUREMENT – SALIENT FEATURES A. Procurement of Goods & Works 4. International Competitive Bidding (ICB)

ICB is the preferred method of procurement, Provisions of Section II of the Guidelines and paragraph 5 of Appendix 1 thereto shall apply. The objective of ICB as described in the Guidelines is to provide all eligible prospective bidders with timely and adequate notification of a Borrower’s requirements and an equal opportunity to bid for the required goods. Provisions of paragraphs 2.55 of the Guidelines and Appendix 2 thereto for domestic preference shall apply to goods manufactured in the territory of the Borrower. To be adopted where : (a) Goods and equipments packages are estimated to cost US$ 1

million and above. (b) Irrespective of value, where supplies need import and entail

payment in foreign currency; (c) Generally for all contracts in which foreign firms can be expected to

participate. Requirement : Publication of General Procurement Notice, followed by specific

Invitation for Bids (IFB) in United Nations Development Business online (UNDB online) and in the Development Gateway’s dgMarket. Bank will arrange for its publication. The General Procurement Notice shall be updated annually for all outstanding procurement;

Transmission of IFB to embassies and trade representatives of countries of likely suppliers/ contractors of the equipment and materials required and also to those who have expressed interest in response to the General Procurement Notice;

Publication of IFB in at least one national newspaper having wide circulation in all regions of country;

Publication of IFB in the departmental website Use of Bank’s standard bidding document; Sale of bidding document to start only after publication of IFB in

UNDB and national newspaper(s); Bidding period 45 to 90 days from date of start of sale of bidding

documents. Steps : Notification/Advertising; issue of Bidding Document;


submission of Bids; public opening of bids; evaluation; selection of lowest evaluated responsive bid – based on post

qualification ; Contract Award; and Contract performance

5. Other Methods of Procurement

To be adopted where : Where ICB would not be most economic and efficient method of

procurement and where other methods are deemed more appropriate; and/ or

As provided in the Legal Agreement

2.9 National Competitive Bidding (NCB) Provisions of paragraphs 3.3 and 3.4 of the Guidelines shall apply for NCB contracts. National Competitive Bidding is a competitive bidding advertised nationally for procuring goods/ works, which by their nature or scope are unlikely to attract foreign competition. Currency specified shall be Indian Rupees for bidding as well as payment. However, foreign bidders are not to be precluded from participation, if they wish to bid, but they are also to be paid only in Indian Rupees. Domestic preference will not be applicable. To be adopted where The contract values are more than US$ 50,000 equivalent for Goods/

Works per contract; Works are scattered geographically or spread over time; Works are labour intensive; The goods and works are available at prices below international

market; or Foreign firms are not likely to be interested; and Advantages of ICB are clearly outweighed by the administrative and

financial burden involved. Requirement Publication of IFB in newspapers having wide circulation in the

country; Publication of IFB in the departmental website Use of Bank’s standard bidding documents; Sale of bidding documents to start only after publication of IFB in

newspapers Bidding period 30 to 90 days from date of start of sale of bidding

documents; Bid amount and payment in local currency; and If foreign firms wish to participate, they shall be allowed to do so.


The agreed procedure for National Competitive Bidding (NCB) as annex to Project Appraisal Document is as under :- (i) Only the model bidding documents for NCB agreed with the

GOI Task Force (and as amended for time to time), shall be used for bidding;

(ii) Invitations to bid shall be advertised in at least one widely circulated national daily newspaper, at least 30 days prior to the deadline for the submission of bids;

(iii) No special preference will be accorded to any bidder either for price or for other terms and conditions when competing with foreign bidders, state-owned enterprises, small-scale enterprises or enterprises from any given State;

(iv) Except with the prior concurrence of the Association, there shall be no negotiation of price with the bidders, not even with the lowest evaluated bidder;

(v) Extension of bid validity shall not be allowed without the prior concurrence of the Association (i) for the first request for extension, if it is longer than eight weeks; and (ii) for all subsequent requests for extension irrespective of the period (such concurrence will be considered by Association only in cases of Force Majeure and circumstances beyond the control of the Purchaser/ Employer);

(vi) Re-bidding shall not be carried out without the prior concurrence of the Association. The system of rejecting bids outside a pre-determined margin or “bracket” of prices shall not be used in the project;

(vii) Rate contracts entered into by Directorate General of Supplies & Disposal, will not be acceptable as a substitute for NCB procedures. Such contracts will be acceptable however, for procurement under National Shopping procedures;

(viii) Two or three envelope systems will not be used. Steps Same as in ICB

2.10 Shopping

Provisions of paragraphs 3.5 of the Guidelines shall apply for procurement under Shopping; Shopping is a procurement method based on comparing price quotations obtained from several suppliers, usually at least three, to assure competitive prices. It is an appropriate method for procuring readily available off-the-shelf goods or standard specification commodities that are small in value and are ordinarily available from more than one source in India at competitive prices and urgent minor civil works. Requests for quotations shall indicate the description and quantity of the goods as well as desired delivery time and place. Quotations may be submitted by telex or facsimile. The evaluation of quotations shall follow sound public or private sector practices of the


Purchaser. The terms of the accepted offer shall be incorporated in the purchase order. In this Project procurement under Shopping procedures includes (a) Goods and works estimated to cost less than US$ 50,000

equivalent per contract, and (b) Vehicles estimated to cost the equivalent of upto US$ 100,000

per contract. Steps Issue of requests for quotations; Evaluation of quotations by preparation of comparative statement; Selection of the lowest responsive offer; and Issue of purchase order.

Note : Rate contracts of Directorate General Supplies & Disposal (DGS&D) are acceptable as a substitute to shopping procedures. DGS&D rate contracts are available on their website http://dgsnd.gov.in

2.11 Direct Contracting Provisions under paragraph 3.6 of the Guidelines shall apply for procurement under Direct Contracting. Direct contracting without competition (single source) may be an appropriate method under the following circumstances :- Extension of existing contracts for Works or Goods awarded with

procedures acceptable to the Bank, justifiable on economic grounds; Standardization of equipment or spare parts to be compatible with

existing equipment; Proprietary equipment obtainable only from one source; Process design requires the purchase of critical items from a

particular supplier as a condition of a performance guarantee, and In exceptional urgent cases such as in response to natural disasters

In the Project, procurement under Direct Contract includes Goods which are proprietary in nature and estimated to cost less

than US$ 10,000 equivalent per contract may be procured in accordance with the provisions of paragraph 3.6 and 3.7 of guidelines. Petty items estimated to cost less than US$ 100 equivalent per contract also may be procured in accordance with the provisions of paragraph 3.7 of the guidelines.

Steps Invite quotation proposal; and Issue purchase order

http://dgsnd.gov.in/


2.12 Force Account Provision under paragraphs 3.8 of the Guidelines shall apply for procurement under Force Account. Force Account is otherwise known as “Direct Labour”, “Departmental Forces” or “Direct Work”. Force Account in construction by the use of borrower’s own personnel and equipment, may be the only practical method for constructing some kinds of works. The use of force account may be justified where; Quantities of work involved cannot be defined in advance; Works are small and scattered or in remote locations for which

qualified construction firms are unlikely to bid at reasonable prices; Work is required to be carried out without disrupting ongoing

operations; Risks of unavoidable work interruption are better borne by the

borrower than by a contractor; and There are emergencies needing prompt attention.

In this Project procurement of small works under force account includes Works estimated to cost less than US$ 30,000 equivalent per contract may be carried by force account in accordance with the provisions of paragraph 3.8. The works under the project estimated to cost US$ 10,000 or more proposed under force account procedures would require prior approval from the Association.

6. Misprocurement (Refer paragraph 1.12 of Guidelines)

The items of Goods & Works not procured in accordance with the agreed provision in loan agreement between borrower and the Bank & as further elaborated in the procurement plan, mayl be declared by Bank, as misprocurement. The Bank does not finance such expenditure and may cancel that portion of the loan allocated to the goods and works that have been misprocured.

4. Important aspects for consideration in Procurement of Costly

Equipments For procurement of costly equipments, the following points may be kept in view:

4.1 Specifications: The specifications of the required goods/ equipment

should be clearly stated without any ambiguity, so that the prospective bidders can send meaningful bids. In order to attract sufficient number of bids, the specifications should be broad-based to the extent feasible. A technical committee may be constituted to review and finalize the specifications. Finalization of specifications should also be preferably based on a market survey of available models and their specifications.


4.2 Warranty: Warranty and Annual Maintenance Contract (AMC) for the duration of the life of the equipment are desirable but we have to be careful in deciding the period for which they are to be provided. Laboratory equipment may get obsolete with time and there is a need to replace them. Providing a very long warranty with AMC coverage may therefore add to the cost without being fruitfully utilized as the length of commitment does have an effect on price. A Warranty with AMC coverage of around 5 years (2+3 years or 3+2 years, respectively) may be preferred to begin with. The AMC can be extended beyond this period if the equipment remains serviceable and is to be continued. The World Bank suggests that the Warranty period of 24/27 months should be provided, only if it is an accepted industry standard for the equipment being procured. Otherwise, this may result in reduced competition and increased cost. The period should therefore, be stipulated after ascertaining the normal industry standards. Bank Guarantee (BG) coverage for AMC should invariably be obtained so that the supplier or his agent has continued interest in maintaining the equipment.

4.3 Qualification Criteria: It may be desirable to buy a standard model

befitting the laid down specifications rather than equipment tailor-made for the purpose. This is likely to give more trouble-free service, as such equipment has stood the test of time. In the qualification criteria therefore, we may include that the bidder or his principal should have been manufacturing and supplying the particular equipment for say six months or one year prior to bid opening. Qualification criteria like years of experience and extent of sales in the past have a bearing on quality as also on competitiveness. It is better to base them on a market survey. In case an Indian agent is to provide substantial incidental services it may be desirable to prescribe qualification criteria for the agent, in addition to the qualification criteria for the manufacturer/ supplier.

4.4 Training: Training for use of critical equipment is necessary and should

form part of the incidental services. However, free training at the manufacturers’ end if located in a foreign country, will add to the cost and should be asked for only when it is considered essential. Otherwise non-utilization of this provision will only mean payment of a hidden cost, remaining unused. Further the break-up of the cost of training must be obtained at the time of bidding itself. Also, the nature and scope of training should be clearly defined in the bid documents.

4.5 On-site Service: Unless onsite service is provided for both warranty and

AMC, there may be problems, wherein the bidder may agree to provide replacement of parts but the work involved with documentation, import, customs clearance, insurance, etc. for replacement of parts may fall on the purchaser.

4.6 Consumer Certificates: Bidders are usually required to furnish

certificates from their client/ consignee for satisfactory performance of the equipment supplied. If complete details are not given by the bidder, the purchaser is not able to verify. It is desirable to ask the bidder to provide


the names of contact persons and their telephone numbers with a confirmation that the bidder has no objection to the purchaser verifying with the users.

4.7 Bid Evaluation Committees: It is better to constitute standing bid

evaluation committees for major items of purchase, to avoid delays in approvals for constituting such committees each time. The Committee normally comprises of three members, i.e. one each from finance, user and technical wings.

4.8 Indian Laws: The Bidding Document should indicate that the relevant

contract would be interpreted as per Indian Laws. 4.9 Successful Bidder: Names and addresses of the successful bidders

should be mentioned on the notice board of the Department/ Organization or in the Bulletin and the Website.

4.10 Payment Schedule: The payment schedule should generally be: (i) ten

percent as advance, (ii) seventy percent on shipment (in case of imported items), or proof of delivery in case of indigenous supply; and (iii) twenty percent on final acceptance.

B. Procurement of Consulting Services 1. Methods for selection of Consultants 1.1 Quality and Cost based Selection (QCBS)

QCBS uses a competitive process for selection among short listed firms. Provision of Section-II of the Guidelines : Selection and Employment of Consultant’s by World Bank Borrowers – May 2004 describes in detail the procedures for QCBS. To be adopted where :- (a) Selection process takes into account the quality of the proposal and

the cost of services in the selection of the successful firm. Requirement :- Publication of General Procurement Notice followed by specific

Request for Expression of Interest (REOI) in United Nations Development Business online (UNDB online) and in the Development Gateway’s dgMarket. Bank will arrange for its’ publication. The General Procurement Notice shall be updated annually for all outstanding procurement;

Transmission of Request for Expression of Interest (REOI) to embassies and trade representatives of countries of likely consulting firms and also to those who have expressed interest in response to the General Procurement Notice;


Publication of REOI in at least one national newspaper having wide circulation in all regions of country;

Publication of REOI in the departmental website Use of the Bank’s standard Request for Proposal (RFP);

Steps The Selection process shall include the following steps :- (a) Preparation of TOR (b) Preparation of cost estimate and the budget; (c) Advertising; (d) Preparation of the short list of consultants; (e) Preparation and issuance of the RFP [which should include the

Letter of Invitation (LOI); Instructions to Consultants (ITC); the TOR and the proposed draft contract];

(f) Receipt of proposals; (g) Evaluation of technical proposals; consideration of quality; (h) Public opening of financial proposals; (i) Evaluation of financial proposal; (j) Final evaluation of quality and cost; and (k) Negotiations and award of contract to the selected firm.

1.2 Other methods of procurement 1.2.1 Quality Based Selection (QBS)

Provisions of paragraph 3.1 to 3.4 of the Guidelines shall apply. To be adopted where:- QBS is appropriate for the following type of assignments :-

(a) Complex or highly specialised assignments for which it is difficult to define precise TOR.

(b) Assignments that have a high downstream impact (c) Assignments that can be carried out in substantially different

ways. Steps (i) All the relevant provisions of Section – II (QCBS) shall apply

whenever competition is used. Advertisement for Expression of Interest is not required when single source selection is used.

1.2.7 Selection under a Fixed Budget System (FBS) :

Provisions of paragraph 3.5 of the Guidelines shall apply Where to be adopted This method is appropriate only when the assignment is simple and can be precisely defined and when the budget is fixed.


Steps (i) All the relevant provisions of Section – II (QCBS) shall apply

whenever competition is used. Advertisement for Expression of Interest is not required when single source selection is used.

1.2.8 Least Cost Selection (LCS)

Provision of paragraph 3.6 of the guidelines shall apply. To be adopted where : This method is only appropriate for selecting consultants for assignments for a standard or routine nature. Steps

(i) All the relevant provisions of Section – II (QCBS) shall apply whenever competition is used. Advertisement for Expression of Interest is not required when single source selection is used.

1.2.9 Selection based on the Consultant’s Qualification (CQS)

Provision of paragraph 3.7 & 3.8 of the guidelines shall apply. To be adopted where : This method may be used for small assignments for which the need for preparing and evaluating competitive proposals is not justified. Steps Same as in QCBS except that the short listed firm with the most appropriate qualifications and references shall be asked to submit a combined technical and financial proposal and shall then be invited to negotiate the contract.

1.2.10 Single Source Selection (SSS)

Provision of paragraph 3.9 to 3.13 of the guidelines shall apply. To be adopted where : Single Source Selection of consultants does not provide the benefits of competition in regard to quality and cost, lacks transparency in selection, and could encourage unacceptable practices. Therefore, Single Source Selection shall be used only in exception cases. Single Source Selection may be appropriate only, if it presents a clear advantage over competition :-

(a) for tasks that represent a natural continuation of previous work carried out by the firm.

(b) in emergency (c) for small assignments (d) when only one firm is qualified or has experience of exceptional

worth for the assignment.


1.2.11 Selection of Individual Consultants (SIC)

Provisions of paragraph 5.1 to 5.4 of the guidelines shall apply. To be adopted where :

(a) the experience and qualification of the individual are the paramount requirement.

(b) teams of personnel are not required (c) no additional outside (home office) professional support is required.

Steps

• Individual consultants are selected on the basis of their qualifications for the assignment

• Advertisement is not required • Consultants do not need to submit proposals • Consultants shall be selected through comparison of qualifications

of at least three candidates among those who have expressed interest in the assignment or have been approached directly by the Borrower.

• Individual consultants may be selected on a sole source basis with due justification in exceptional cases such as

(a) continuation of previous work that the consultat had carried out and for which the consultant was selected competitively

(b) total expected duration less than six months (c) emergency situations resulting from natural disasters (d) when the individual is the only consultant qualified for the

assignment. 2. Salient features for Procurement of Consultants 2.1 General Considerations

• The need for high quality services;

• The need for economy and efficiency;

• The need to give qualified consultants from all eligible countries an opportunity to compete in providing the services financed by the Bank;

• The Bank’s interest in encouraging the development and use of national consultants in its developing member countries; and

• The importance of transparency in the selection process.

Steps for Hiring Consultants • Preparation of the Terms of Reference (ToR);

• Preparation of the cost estimate and the budget;

• Advertising;

• Preparation of the shortlist of consultants;


• Preparation and issue of the Requests for Proposal (RFP); Letter of Invitation (LoI); Instructions to Consultants (ITC); and Proposed Contract; Receipt of Proposals; Evaluation of Technical Proposals: Consideration of quality; Evaluation of Financial Proposals; Final Evaluation of Quality and Cost; and Negotiations and Award of Contract to the Selected Firm.

2.3 Preparation of the Terms of Reference of the Consultant

It should include the following points: • A precise statement of objectives; • An outline of the tasks to be carried out; • A schedule for completion of tasks; • The support/ inputs provided by the client; • The final outputs that will be required of the Consultant; • Composition of Review Committee (not more than three members) to

monitor the Consultant’s works and procedures; • Mid-term review and Progress Reports required from Consultant; • Review of the final draft report; • List of key positions whose CV (1 to 6, exceptionally 8 and

experience would be evaluated. 2.3 Cost Estimates or Budget

The cost estimates or budget should be based on the client’s assessment of the resources needed to carry out the assignment: staff time, logistic support, and physical inputs (for example, vehicles and laboratory equipment). Costs shall be divided into two broad categories; (a) fee or remuneration, and (b) reimbursable and further divided into foreign and local costs.

2.4 Advertising (Seeking Expression of Interest) for Short-listing

The advertisement is mandatory for all consultancies valued at US$ 200,000 equivalent and above in the following magazines/ bulletins/ newspaper: • UNDB online; • National Newspapers;

2.13 Short listing of Consultants

Borrowers are responsible for preparation of the shortlist and shall give first consideration to those firms expressing interest, which possess the


relevant qualifications. The shortlists shall comprise six firms with a wide geographic spread, with no more than two firms from any one country and at least one firm from a developing country, unless qualified firms from developing countries are not identifiable. The shortlist can comprise entirely national consultants if the value of assignment is less than equivalent of US $ 500, 000. However, if foreign firms have expressed interest, they shall not be excluded from consideration (in these cases payment can be in the country’s currency).

2.14 Other Considerations

Government-owned enterprises in the Borrower’s country may participate only if they can establish that they: • Are legally and financially autonomous, and

• Operate under prevalent commercial law. No dependent agency of the Borrower or Sub-borrower of the project shall be permitted to submit or participate in a proposal for the provision of consulting services under the project.

2.15 Lump Sum Contracts

Lump Sum contracts are used for assignments in which the content and the duration of the work are clearly defined. Payment is made upon delivery of outputs. The main advantage of this type of contract is that it is easy to administer. Lump Sum contracts are widely used for : a) Feasibility studies. b) Environmental studies. c) Detailed design of a standard structure.

2.16 Time-based Contracts

Time-based contracts are used for assignments in which it is difficult to define the scope and the duration of the work to be performed. Payment is based on an hourly, daily or monthly rate, plus reimbursable expenses using actual expenses or agreed-upon unit prices. This type of contracts provide for a maximum total payable amount that includes a contingency for unforeseen work and duration, price adjustments, etc. Time-based contracts are widely used for : • Preparation of data. • Complex studies. • Supervision of construction. • Training assignments. • Advisory services.


3. Misprocurement The Consulting Services not procured/ contracted in accordance with the agreed provisions of Loan Agreement and approved procurement plan, shall be declared by the Bank, as misprocurement. The Bank does not finance such expenditure and may cancel that portion of the loan allocated to the goods and works that have been misprocured.

Chapter – V : Detailed Procurement Procedures and Formats of International Competitive Bidding (ICB)

Chapter V

Detailed Procurement Procedures and formats 1 Of International Competitive Bidding (ICB)

1. International Competitive Bidding (ICB) procedures prescribed in the Bank

Guidelines have the purpose of affording all eligible prospective bidding adequate notification of borrower’s requirements and of providing all such bidders an equal opportunity to bid on the necessary goods and works. Provisions of section II of the Guidelines and paragraph 5 of Appendix I there to shall apply

. 2. This Project does not envisage any ICB contracts for Civil works. 3. Eligibility Requirements: (Refer paragraphs 1.6, 1.7 and 1.8 of

Guidelines)

“1.6 To foster competition the Bank permits firms and individuals from all eligible countries to offer goods, works, and services for Bank-financed projects. Any conditions for participation shall be limited to those that are essential to ensure the firm’s capability to fulfill the contract in question.

1.7 In connection with any contract to be financed in whole or in part

from a Bank loan, the Bank does not permit a Borrower to deny pre- or post-qualification to a firm for reasons unrelated to its capability and resources to successfully perform the contract; nor does it permit a Borrower to disqualify any bidder for such reasons. Consequently, Borrowers should carry out due diligence on the technical and financial qualifications of bidders to be assured of their capabilities in relation to the specific contract.

1.8 As exceptions to the foregoing

(d) Firms of a country or goods manufactured in a country may

be excluded if, (i) as a matter of law or official regulation, the Borrower’s country prohibits commercial relations with that country, provided that the Bank is satisfied that such exclusion does not preclude effective competition for the supply of goods or works required, or (ii) by an act of compliance with a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations, the Borrower’s country prohibits any import of goods from, or payments to, a particular goods by such an act of compliance, that firm may be excluded.

1 Bid Evaluation Standard forms enclosed as Annexure 1.


(e) A firm which has been engaged by the Borrower to provide

consulting services for the preparation or implementation of a project, and any of its affiliates, shall be disqualified from subsequently providing goods, works, or services resulting from or directly related to the firm’s consulting services for such preparation or implementation. This provision does not apply to the various firms (consultants, contractors, or suppliers) which together are performing the contractor’s obligations under a turnkey or design and build contract.

(f) Government-owned enterprises in the Borrower’s country

may participate only if they can establish that they (i) are legally and financially autonomous, (ii) operate under commercial law, and (iii) are not dependent agencies of the Borrower or Sub-Borrower.

(g) A firm declared ineligible by the Bank in accordance with

subparagraph (d) of paragraph 1.14 of these Guidelines shall be ineligible to be awarded a Bank-financed contract during the period of time determined by the Bank.”

4. Joint Ventures: (Refer paragraph 1.10 of Guidelines)

Any firm may bid independently or in joint venture confirming joint and several liability, either with domestic firms, and/or with foreign firms, but the Bank does not accept conditions of bidding which require mandatory joint ventures or other forms of mandatory association between firms.

5. Notification and Advertising: (Refer paragraphs 2.7 and 2.8 of

Guidelines)

Timely notification of bidding opportunities is essential in competitive bidding. For projects that include ICB the Borrower is required to prepare and submit to the Bank a draft General Procurement Notice. The Bank will arrange for its publication in UN Development Business online (UNDB online) and in the Development Gateway’s dg Market).

The Notice shall

contain information concerning the Borrower (or prospective Borrower), amount and purpose of the loan, scope of procurement under ICB, and the name, telephone (or fax)number, and address of the Borrower’s agency responsible for procurement and the address of the Website where specific procurement notices will be posted. If known, the scheduled date for availability of pre-qualification or bidding documents should be indicated. The related pre-qualification or bidding documents, as the case may be, shall not be released to the public earlier than the date of publication of the General Procurement Notice.

Invitations to pre-qualify or to bid, as the case may be, shall be advertised as Specific Procurement Notices in at least one news paper of national circulation in the Borrower’s country.


SPNs/IFBs shall also be transmitted to those who have expressed interest in bidding in response to the GPN. The publication of other SPN/IFB is also strongly encouraged to transmit such invitations to embassies and trade representatives of countries of likely Suppliers and Contractors. Bidding period: Notification shall be given in sufficient time to enable prospective bidders to obtain prequalification or bidding documents and prepare and submit their responses. Sale of the documents should start only after publication of SPN in UNDB and national newspapers. The time allowed for the preparation and submission of bids shall be determined with due consideration of the particular circumstances of the Project and the magnitude and complexity of the contract. Generally, not less than 45 days from the date of publication of the invitation for Bid in UNDB and national newspaper or the date of making available the documents for sale, which ever is later, shall be allowed.

6. Bidding Documents: (Refer [paragraph 2.11 to 2.43 of Guidelines)

(a) General: The bidding documents shall furnish all information

necessary for prospective bidder to prepare a bid for the goods to be provided. While the detail and complexity of these documents may vary with the size and nature of the proposed bid package and contract, they generally include: • Invitation to bid • Instructions to bidders; • Form of bid; • Conditions of Contracts, both general and special; • Specifications and drawings; • List of good or bill of quantities; • Delivery time or schedule of completion; • Price schedule; • Bid Security Form; • Contract From; • Performance security form; • Advance security Form etc. Bidding documents under Instructions to Bidders should clearly give the basis for bid evaluation and specify the: • Methods of evaluation, where bids are invited for a number

of items if equipment (whether evaluation would be for all the equipment together or for each equipment separately);

• Relevant factors in addition to price which will be taken into account and how such factors will be quantified or to otherwise evaluated for the purpose of determining the lowest evaluated bid;

• Conditions of acceptability and method of evaluation; if bids based on alternative completion schedules, payment terms are permitted


The sale/issue price of the bidding documents should be reasonable and reflect only the cost of their printing and delivery to prospective bidders, and shall not be so high as to discourage qualified bidders.

(b) Standard Bidding Documents (SBDs) issued by the Bank:

should be used with minimum changes, acceptable to the Bank as necessary to address country-and project specific issues. Government of India in consultation with the Bank has finalized and issued India specific Standard Bidding Documents for Goods, and Supply, Erect and Installation contracts. Project specific changes shall be introduced only through bid contract data sheets or through special conditions of contact and not by introducing changes in the standard wording of the Instructions to the Bidders, General Conditions of Contract of the SBDs. New Delhi office (NDO) of the Bank has formulated additional SBDs suitable for specific procurements. Thus the bidding documents available for use in NDO of Bank are: (a) ICB bidding document for supply of goods and equipment; (b) ICB bidding document for supply and installation of plant and

equipment; (c) ICB document for procurement of equipment with

supervision of installation; (d) ICB document for procurement of computers; (e) ICB document for procurement of vehicles; (f) Pre-qualification (Procurement of works including Major

Equipment and Industrial Installation).

For procurement of other specialized equipment, appropriate modifications are to be made in the Standard Bidding Document. Where no relevant standard bidding documents have been issued, the Borrower shall use other internationally recognized standard conditions of contract and contract forms acceptable to the Bank.

Guidance on critical components of the bidding document is given in Paragraphs 2.13 to 2.43 of the Guidelines. Some of these points with reference to goods procurement are highlighted hereunder:

(c) Validity of Bids and Bid Security (Refer paragraph 2.13 and

2.14 of Guidelines)

Bidders shall be required to submit bids valid for a period specified in the bidding documents which shall be sufficient to enable the Borrower to complete the comparison and evaluation of bids, review the recommendation of award with the Bank (if required in the Procurement Plan), and obtain all the necessary approvals so that the contract can be awarded within that period.

(i) Expect for supply and installation contracts, bid validity

period of 90 days should be specified in the bidding


document period may reduced to 60 or 45 days in the case of procurement of computers where there is reduction in the rates over a period of time;

(ii) the requirement of bid security should be reviewed on a case

basis. For small value purchases and in specific cases where bid security is not considered essential (for e.g. vehicles it could be dispensed with. Bid security may be required to afford the Borrower reasonable protection against irresponsible bids, but it shall not be set so high as to discourage bidders. It should be in the range of 2 to5 percent of the estimated cost of item put to tender. The amount of bid security should be computed based on the estimated cost and specified to the nearest thousands of Rupees;

(iii) bid security shall be denominated in the currency of the bid

or another freely convertible currency (US Dollars ) or Indian Rupees;

(iv) bid security could be in any form acceptable to the Purchaser

but Bank Guarantee should be one of the acceptable forms. Forms acceptable should be specific in the bidding document; Conditional Bank Guarantee are not acceptable. Phrases such as “unless a suit is filed against us “or a case is filed against us” may render the BG conditional.

(v) bid security should be valid for 45 days beyond the bid

validity period; (vi) no exemption of bid security should be permitted to any

bidder or class of bidders; and (vii) any bid not secured in accordance with the requirements of

the bidding documents shall be rejected as non-responsive. (viii) Bid security shall be released to unsuccessful bidders once

the contract has been signed with the winning bidder.

(d) Clarity of Bidding Documents (Refer paragraph 2.16, 2.17 and 2.18 of Guideline)

(i) Bidding documents in the case of goods shall specify what

inspection and tests the purchaser requires, where and who will conduct the tests. The purchaser shall notify the suppliers in writing the identify of the inspection agency retained along with the supply order;

(ii) `Bidding documents should generally avoid submission of

samples along with the bid by bidders as this requirement


discourages competition and increase the bid prices. Alternately bidders should be requested to confirm that their product meets with the required specifications and in support attach appropriate test certificates from recognized testing laboratories;

(iii) All prospective bidders shall be provided the same

information, and shall be assured of equal opportunities to obtain additional information on a timely basis;

(iii) The bidding documents shall specify any factors, in addition

to price, which will be taken into account in evaluating bids, and how such factors will be qualified or otherwise evaluated.

(iv) For complex supply contracts, pre-bid meeting should be

provided and should be convened early in the bidding process but should allow sufficient time for bidders to study the bidding documents and prepare questions. The meeting should be scheduled at about the middle of bidding time. The purpose of the meeting will be to clarify issues and to answer questions on any matter that may be raised at this stage. Minimum post qualification criteria to be met (if a pre-qualification procedure was not used prior to bidding), as well as the important provisions of the biding document, schedule of requirements, special conditions of contract and the special features of the specifications should be explained to the prospective bidders. Minutes of the meeting, indicating the responses given in the meeting (including an explanation of the query but without identifying the source of the inquiry) should be furnished expeditiously to all those attending the meeting (and subsequently to all purchasers of the bidding documents) after getting the same cleared with the Bank. Any modification of the bidding documents which may become necessary as a result of the prebid meeting shall be made exclusively through issue of a corrigendum (after getting the same cleared with the Bank) and not through the minutes of the prebid meting. Any additional information, clarification, correction of errors, or modification of bidding document shall be sent to each recipient of the original bidding document in sufficient time before the deadline for receipt of bids to enable bidders to take appropriate actions. If necessary, the deadline shall be extended.


(e) Price Adjustment: (Refer paragraphs 2.24 and 2.25 of the

Guidelines)

(i) Price adjustment clause should invariably be provided when the stipulated period of completion of supply of goods is more than 18 months.

(ii) Where the stipulated period of competition of supply of goods is less than 18 months, normally prices quoted by the bidder shall be fixed during the bidder’s performance of the contract and not subject to variation on any account. In such cases a bid submitted with an adjustable price quotation shall be treated as non-responsive and rejected.

(iii) Where however stipulated period of completion of supply of goods is more than 18 months, price adjustment clause should be provided. In that case a bid submitted with a fixed price quotation will not be rejected, but the price adjustment would be treated as zero.

(f) Currency of Bid: (refer paragraph 2.28, 2.29 and 2.30 of

Guidelines)

Bidding document shall state the currency or currencies in which bidders are to state their prices. The bidder shall quote the prices in any specified currency. Further, a bidder wishes to pay in a combination of amounts in different currencies may quote its price accordingly, but use not more than three foreign currencies.

(g) Currency Conversion for Bid Comparison: (Refer paragraph

2.31 of Guidelines) The Bid price is the sum of all payments in various currencies required by the bidder. For the purpose of comparing prices, bid prices in various currencies shall be converted to Indian Rupees at the B.C. selling (exchange) rates for similar transactions published by any Scheduled Bank in India as per procedure stipulated in the bidding document. The reference date shall not be earlier than four weeks prior to the deadline for the receipt of bids, not later than the original date for the expiry of the period of bid validity. Generally bid opening date is the date taken for exchange rate for currency conversion.

(h) Currency of Payment: (Refer paragraph 2.32 and 2.33 of

Guidelines)

(i) Payment of the contract price shall be made in the currency or currencies in which the bid price is expressed in the bid of the successful bidder; and

(ii) when the bid price is required to be stated in the local currency but the bidder has requested payment in foreign currencies expressed as a percentage of the bid price, the


exchange rates to be used for purpose of payments shall be those specified by the bidder in the bid, so as to ensure that the value of the foreign currency portions of the bid is maintained without any loss or gain.

(i) Performance Security: (Refer paragraph 2.39 and 2.40 of

Guidelines) 1. The need for performance security depends on the market

conditions and commercial practice for the particular kind of goods.

2. Performance security should be obtained for the prescribed amount (generally 5% of the contract price) and in an acceptable form in the currency of the contract in accordance with the conditions of contract. It should remain valid as stipulated in the bidding document such security in an appropriate amount shall also cover warranty obligation.

3. Failure of the successful bidder to sign the contract or furnish performance security within the specified period shall constitute sufficient grounds for the annulment of the award and forfeiture of the bid security in which event the purchaser may make the award to the next lowest evaluated bidder or call for new bids.

(j) Liquidated Damages: (Refer paragraph 2.41 of Guidelines)

Liquidated damages not exceeding 0.5% per week of the value of the delayed goods and services subject to a maximum of 10% of the contract value are normally to be specified for delays in completion of supply of goods. Once the maximum limit is reached, the purchaser may consider for termination of the contract pursuant to provisions of the contract.

7. Sale of Bidding Documents, Receipt and Opening of Bids: (Refer

paragraphs 2.44 and 2.45)

(a) Bidding documents should be made available for sale, to all those who intended to participate in the bidding, for a minimum period 6 weeks. It should range from 6 to 12 weeks depending on the value and nature of contract.

(b) Bidders should be permitted to deposit their bids on any day during the bidding period. Receipt of bids should not be restricted to few days or last day only. Bidders should be permitted to send their bids either by post or hand or in person on any day during the bidding period.


(c) Last date of receipt of bids and opening of bids should be next day,

following the close of the sale of bidding documents. If the day happens to be holiday, the last date for receipt and opening of bids shall be the next working day. The time of bid opening should be the same as for the deadline for receipt of bids or promptly thereafter (15 to 30minutes later to allow sufficient time to take the bids to the venue announced for public bid opening). All bids received should be opened in the presence of bidders’ representatives who choose to attend and shall sign a register evidencing their attendance.

(d) The bidders’ names, bid modifications or withdrawals, bid prices, discounts, and the presence or absence or absence of the requisite bid security and such other details as considered appropriate by the purchaser shall be announced during the opening of bids in the meeting and recorded and a copy of this record shall be promptly sent to the bank and all bidders who submitted bids intime. No bid shall be rejected at the bid opening. Bid received after the time stipulated as well as those not opened and read out at bid opening shall not be considered.

8. Evaluation of Bids: (Refer paragraphs 2.48 to 2.54 of Guidelines)

(a) Before proceeding for evaluation, it should be ascertained whether the bids: • Have been properly signed; • Are accompanied with the required securities; • Are substantially responsive to the requirements of the bidding

documents; • requires any clarifications and/or substantiation to determine

responsiveness; and • Are otherwise generally in order.

If a bid is not substantially responsive, that is, it contains material deviations from or reservations to the terms, conditions and specifications in the bidding documents, it should not be considered further. The bidder must not be permitted to correct or withdraw material deviations or reservations once bids have been opened.

(b) The purchaser may waive any minor informality or nonconformity or

irregularity in a bid, which does not constitute a material deviation, provided such waiver does not prejudice or affect the relative ranking of any bidder. In those cases for the purpose of evaluation, adjustments should be made for the costs to the purchaser of any quantifiable non-material deviations or reservations. The evaluation will exclude and not take into account any allowance for price adjustment during the period of execution of the contract.


(c) A substantially responsive bid is one which confirms to all the terms

and conditions of bidding document without material deviation. The determination of bid’ responsiveness is to be based on the contents of the bid itself without recourse to extrinsic evidence. Deviations from or objections or reservations to critical provisions such as those concerning Bid Security under ITB Clause, Applicable Law, and Taxes and duties under GCC Clauses will deem to be a material deviation. In addition, Deemed Export Benefit under ITB Clause, Performance Security, Warranty, Force Majeure under GCC Clauses are also to be treated as critical provisions for the above purpose.-(Clause references are of SBD Goods).

(d) Bidder should not be requested or permitted to alter their bid after

the deadline for receipt of bids. The purchaser shall ask bidders for clarification needed to evaluate the bids but shall not ask or permit bidders to change the substance or price of their bids after the bid opening. Requests for clarifications and the bidders’ responses shall be made in writing.

(e) No preferential treatment should be given to any bidder or class of

bidders either for price or for conditions unless specifically cleared with the Bank.

(f) Any procedure under which bids above or below a pre-determined

assessment of bid values are automatically disqualified is not acceptable.

(g) The evaluation of a bid will exclude and not take into account:

• In case of goods manufactured in India or goods of foreign origin already located in India., sales and other similar taxes which will be payable on the goods if contract is awarded to the bidder;

• in case of goods of foreign origin offered from aboard, custom duties and other similar import taxes which will be payable on the goods if the contract is awarded to the bidder; and

• any allowance for price adjustment during the period of execution of the contract if provided in the bid.

(h) The comparison shall be EXW price of the goods offered from

within India, such price to include all costs as well as duties and taxes paid or payable on components and raw material incorporated or to be incorporated in the goods, and the CIF or CIP price of the goods offered from outside India.

(i) Evaluation of the bids should take into account, in addition to the

bid price and the price of incidental services, the following factors in a manner and to extent specified in the bidding documents: • Costs of inland transportation, insurance and other costs

within India incidental to delivery of the goods to their final destination:


• delivery schedule offered in the bid; • cost of components, mandatory spare parts and service; • the availability in India of spare parts and after sales service

of the equipment offered; • Projected operating and maintenance costs during life of the

equipment; • Performance and productivity of the equipment offered; and • Other specific criteria indicated in the Bidding Data.

(j) Bids should be loaded appropriately as per bidding documents for

any deviations from the specified requirements. (k) Bonus or additional credits for bid evaluation should not be given for

offered features that exceed the required standards or specifications i.e. additional horse power or capacity unless there is a specific provision for this in the bidding document.

(l) Bids often omit a particular component or options or accessories or

an minor attachment (i.e. tool kit or spare wheel in a vehicle). If a item offered for supply is otherwise functional and if the omissions are minor and these parts can be procured separately, the bid may be loaded for parts not included in the scope of supply and evaluated. In other cases the bids should be treated as non-responsive.

(m) Bidders offering goods from within India must ascertain themselves

availability of deemed export benefits, which they have considered in their offer and purchaser will not compensate the bidder in case of failure to receive such benefits for any reason, whatsoever. Any such duties & taxes additionally payable during the performance of the contract will be to the bidder account and no separate claims on this behalf shall be entertained by the purchaser. Where the bidder has quoted taking into account the Deemed export benefits, he must provide all information required for issue of Project Authority Certificate in terms of the Import Export Policy along with his bid. This certificate will be issued on this basis only and no subsequent change will be permitted. Where the purchaser issues such certificate, Excise Duty will not be reimbursed separately.

Such a provision should be made in the bidding documents and bids of bidder who do not accept this provision should be declared non-responsive and rejected.

(n) All substantially responsive bids should be evaluated in detail as

per procedure stipulated in the bidding documents. (o) Discounts if any offered along with the bid itself or before the last

date and time for the receipt of bids shall be taken into account for evaluation. Discounts if any offered after the last date and time for the receipt of bids shall not be taken into account for evaluation.


However if the bidder who has offered the discount after the last date and time for receipt of bids happens to be the lowest evaluated bid (without the discount being taken into consideration), the discount could be availed of at the time of award of contract and placement of supply order.

(p) Domestic Preference

Preference for Domestically Manufactured Goods

1. Bidding documents shall clearly indicate preference to be granted to domestic manufactured goods and the information required to establish the eligibility of a bid for such preference. The nationality of the manufacturer or Supplier is not a condition for such eligibility. The methods and stages set forth hereunder shall be followed in the evaluation and comparison of bids.

2. For comparison, responsive bids shall be classified in one of

the following three groups:

(a) Group A : Bids exclusively offering goods manufactured in the country of the Borrower if the bidder establishes to the satisfaction of the Borrower and the Bank that (i) labor, raw material, and components from within the country of the Borrower will account for 30 percent or more of the EXW price of the product offered, and (ii) the production facility in which those goods will be manufactured or assembled has been engaged in manufacturing/assembling such goods at least since the time of bid submission.

(b) Group B : all other bids offering goods manufactured in the country of the Borrower.

(c) Group C : bids offering goods manufactured abroad that have been already imported or that will be directly imported.

3. The price quoted for goods in bids of Groups A and B shall

include all duties and taxes paid or payable on the basic materials or components purchased in the domestic market or imported, but shall exclude the sales and similar taxes on the finished product. The price quoted for goods in bids of Group C shall be on CIP (place of destination), which is exclusive of customs duties and other import taxes already paid or to be paid.

4. In the first step, all evaluated bids in each group shall be

compared to determine the lowest bid in each group. Such lowest evaluated bids shall be compared with each other and if, as a result of this comparison, a bid from Group A or


Group B is the lowest, it shall be selected for the award.

5. If as a result of the comparison under paragraph four above,

the lowest evaluated bid is a bid from Group C, the lowest evaluated bid from Group C shall be further compared with the lowest evaluated bid from Group A after adding to the evaluated price of goods offered in the bid from Group C, for the purpose of this further comparison only, an amount equal to 15 percent of the CIP bid price. The lowest evaluated bid determined from this last comparison shall be selected.

9. Single Bids:

Where only one bid is received, efforts should be made to ascertain the reason. If it is determined that publicity was not adequate, bid specification or any of terms were restrictive or unclear, bid should be cancelled and invited afresh after amending the specifications/terms.

If however, it is determined that bid specifications are not restrictive and the prices quoted are reasonable and bid is technically and commercially responsive, the single bid should be considered for award.

10. Post qualification of Bidders: (Refer paragraph 2.58 of Guidelines)

If bidders have not been pre-qualified, the Purchaser shall determine whether the bidder whose bid has been determined to offer the lowest evaluated cost meets the minimum qualification criteria set out in the bidding document in the same name and style. If the selected bidder does not meet them, the bid shall be rejected. In such an event, the Purchaser shall make a similar determination for the next lowest evaluated bidder, the process continued if necessary.

11. Rejection of all Bids: (Refer paragraphs 2.61 to 2.64 of Guidelines) Regardless of value, if all bids are proposed to be rejected and bid are to

re-invited, the Bank’s should be consulted before such action. Bank does not favour negotiations even with the lowest evaluated responsive bidder.

12 Extension of validity of Bids: (Refer paragraph 2.57 of Guidelines)

Purchaser shall complete evaluation of bids and award of contract within the initial period of bid validity so that extensions are not necessary. An extension of bid validity, if justified by exceptional circumstances, shall be requested in writing from all bidders before the expiration date. The extension for the minimum period required to complete the evaluation, obtain the necessary approvals, and award the contract. In the case of fixed price contracts, requests for second and subsequent extension will be permissible only if the request for extension provides for an appropriate adjustment mechanism of the quoted price to reflect changes in the cost of


inputs for the contract over the period of extension. Whenever an extension of bid validity period is requested, bidders shall not be requested or be permitted to change the quoted (base) price or other conditions of their bid. Bidders shall have the right to refuse to grant such an extension. If the bidding documents require a bid security, bidders may exercise their right to refuse to grant such an extension without forfeiting their bid security, but those who are willing to extend the validity of their bid shall be required to provide a suitable extension of bid security. Borrower should seek the Bank’s prior approval for the first request for extension, if it is longer than four weeks, and for all subsequent requests for extensions, irrespective of the period.

13 Award of Contract: (Refer paragraph 2.59 of Guidelines)

(i) The purchaser shall award the contract, within the period of validity of bids, to the bidder whose bid has been determined to be substantially responsive to the bidding documents and who has offered the lowest evaluated bid price provided further that the bidder is determined to perform the contract satisfactorily and meets the specified qualification criteria.

(ii) A bidder shall not be required, as a condition of award, to undertake responsibilities for work not stipulated in the bidding documents or otherwise or modify the bid as originally submitted.

14 Publication of the Award of contract : (Refer paragraph 2.60 of

Guidelines)

Within two weeks of receiving the Bank’s “no objection” to the recommendation of contract award, the Borrower shall publish in UNDB online and in dg Market the results identifying the bid and lot numbers and the following information: (a) name of each bidder who submitted a bid; (b) bid prices as read out at bid opening; (c) name and evaluated prices of each bid that was evaluated; (d) name of bidders whose bids were rejected and the reasons for their rejection; and (e) name of the winning bidder, and the price it offered, as well as the duration and summary scope of the contract awarded. Any unsuccessful bidder, after Notification of Award, may request borrower for explanation of grounds for not qualifying it’s bid.

Chapter – VI : Detailed Procurement Procedures and Formats - National Competitive Bidding (NCB)

CHAPTER VI

Detailed Procurement Procedures and formats2 National Competitive Bidding (NCB)

1. National Competitive Bidding (NCB) is the competitive bidding

procedure normally used for public procurement in the country of the Borrower, and may be the most efficient and economical way of procuring goods or works which, by their nature or scope are unlikely to attract foreign competition. Provisions of Section III, Para 3.3 and 3.4 of the Guidelines shall apply.

2. Eligibility Requirements: (Refer paragraphs 1.6, 1.7 and 1.8 of

Guidelines)

Same as in ICB procedure.

4. Joint Ventures: (Refer paragraph 1.10 of Guidelines)

Same as in ICB procedure 5. Notification and Advertising: (Refer paragraph 2.7 and 2.8 Guidelines) Notification of General Procurement Notice (GPN): Publication of a

General Procurement Notice is not required for NCB.

Notification of Specific Procurement Notice (SPN) or Invitation for Bid (IFB): SPN/IFB shall be advertised in at least one national newspaper and in the official website having wide coverage in all the parts of the country. Bidding period: Notification shall be given in sufficient time to enable prospective bidders to obtain bidding documents and prepare and submit their responses. Sale of the documents should start only after publication of SPN/IFB in national newspapers. The time allowed for the preparation and submission of bids shall be determined with due consideration of the particular circumstances of the project and magnitude and complexity of the contract. Generally, not less than 30 days from the date of publication of the invitation for the Bid in national newspaper or the date of making available the documents for sale, which ever is later shall be allowed.

6. Bidding Documents: (Refer paragraphs 2.11 to 2.43 of Guidelines)

(a) General: The Bidding documents shall furnish all information to prepare a bid for the goods or works to be provided. While the detail and complexity of these documents may vary with the size and nature of the proposed bid package and contract, they generally include:

2 Standard forms enclosed as Annexure – 2.


• Invitation to bid • Instructions to bidders • Form of bid • Conditions of Contract, both general and special • Specifications and drawings • List of goods or bill of quantities • Delivery time or schedule of completion • Price schedule • Bid security form • Contract form • Performance security form • Advance security form etc.

Bidding documents under Instructions to Bidders should clearly give the basis for bid evaluation and specify the:

• methods of evaluation, when bids are invited for a number of

items of equipment (whether evaluation would be for all the equipment together or for each equipment separately);

• relevant factors in addition to price which will be taken into account and how such factors will be qualified or otherwise evaluated for the purpose of determining the lowest evaluated bid;

• conditions of acceptability and method of evaluation, if bids based on alternative completion schedules, payment terms are permitted; and

Notwithstanding registration requirements of the state; bids should be invited from all eligible bidders as defined under paras 1.6 to 1.8 of Guidelines. Foreign firms should not be precluded from completing. Explicit post qualifications criteria for physical outturn and financial turnover should be clearly set out in case of civil works (sample attached –Annexure - 2).

The sale/issue price of the bidding documents should be reasonable and reflect only the cost of their printing and delivery to prospective bidders shall not be high as to discourage qualified bidders.

(b) Model Bidding documents (MBDs) issued by the Bank should

be used with minimum changes, acceptable to the Bank as necessary to address project specific issues. Government of India in consultation with the Bank has finalized and issued India specific issues. Government of India in consultation with the Bank has finalized and issued India specific Model Bidding Documents for Works, and Goods, contracts; Project specific changes shall be introduced only through bid for contract data sheets or through special conditions of contract and not introducing changes in the standard wordings of the instructions to the Bidders, General


Conditions of Contract of the MBDs. New Delhi office of the Bank has formulated the additional MBDs suitable for specific procurements. Thus the bidding documents available for use in NDO of Bank are:

(a) NCB bidding document for supply of Goods and equipment. (b) NCB bidding document for Civil Works costing less than the

equivalent of US$100,000; (c) NCB bidding document for Civil Works costing more than

equivalent of US$100,000; (d) Prequalification (Procurement of Works); (e) NCB bidding document for supply of computers; and (f) NCB bidding document for supply of vehicles. For procurement of other specialized equipment, appropriate modifications are to be made in the Model Bidding Document for Goods. Guidance on critical components of the bidding documents is given in Paragraphs 2.13 to 2.43 of the Guidelines. Some of these points with reference to goods and works procurement are highlighted hereunder:

(c) Validity of Bids and Bid Security (Refer paragraphs 2.13 and

2.14 of Guidelines);

(i) Bid validity period of 90 days should be specified in the bidding documents. It may be reduced to 60 or 45 days in case of procurement of computers where there is high fluctuation in the rates;

(ii) The requirement of bid security in respect of goods should

be reviewed on a case by case basis. For small value purchases and in specific cases where bid security is not considered essential (for e.g. vehicles) it could be dispensed with. Bid security may be required to afford the Borrower reasonable protection against irresponsible bids, but it shall not be set so high as to discourage bidders. It should be in the range of 2 to 5 percent of the estimated cost of item put to tender. Bid security should normally be about 2% of the cost of civil work put to tender, but could range between 1%for large contracts and 3% for small contracts. The amount of bid security should be computed based on estimated cost and specified to the nearest thousands of rupees; it should be fixed amount and not specified as a percentage.

(iii) Bid security could be in any forms acceptable to the

purchaser but Bank Guarantee should be one of the acceptable forms. Forms acceptable should be specified in


the bidding document; Conditional Bank Guarantees are not acceptable. Phrases such as “unless a suit is filed against us” or “a case is filed against us” may render the BG conditional.

(iv) Bid security should be valid for 45 days beyond the bid

validity period;

(v) No exemption of bid security should be permitted to any bidder or class of bidders; and

(vi) Any bid not secured in accordance with the requirements of

the bidding documents shall be rejected as non-responsive.

(d) Clarity of Bidding Documents (Refer paragraphs 2.16 to 2.18 of Guidelines)

(i) Bidding documents in the case of goods shall specify

what inspection and tests the purchaser requires, where and who will conduct the tests.

(ii) Bidding documents should generally avoid submission of

samples along with the bid by bidders as this requirements discourages competition and increases the bid prices. Alternately bidders should be requested to confirm that their product meets with the required specifications and in support attach appropriate test certificates from recognized testing laboratories;

(iii) All prospective bidder shall be provided the same information and shall be assured of equal opportunities to obtain additional information on a timely basis;

(iv) For large contracts, pre-bid meeting should be provided and should be convened early in the bidding process, but should allow sufficient time for bidders to study the bidding documents and prepare questions. The meeting should be scheduled at about the middle of bidding time. The purpose of the meeting will be to clarify issues and to answer questions on any matter that may be raised at this stage. Minimum post qualification criteria to be met (if a pre-qualification procedure was not used prior or bidding), as well as the important provisions of the bidding document, schedule of requirements, special conditions of contract and the special features of the specifications should be explained to the prospective bidders. Minutes of the meeting, indicating the responses given in the meeting (including an explanation of the query but without identifying the source of the enquiry) should be furnished


expeditiously to all those attending the meeting (and subsequently to all purchasers of the biding documents). Suggested format for preparation of the minutes of pre-bid meeting is attached. (Annexure - 2) Any modification of the bidding documents, which may become necessary as a result of the pre-bid meeting shall be made exclusively through issue of a corrigendum and not through the minutes of the pre-bid meeting. Any additional information, clarification, correction of errors, or modification of bidding document shall be sent to each recipient of the original bidding documents in sufficient time before the dead line for receipt of bids to enable bidders to take appropriate actions. If necessary, the deadline shall be extended.

(e) Price Adjustment: (Refer paragraphs 2.24 and 2.25 of the

Guidelines)

(i) Price adjustment clause should invariably be provided when the stipulated period of completion of works or supply of goods is more than 18 months.

(ii) Where the stipulated period of completion works or supply of

goods is less than 18 months normally prices quoted by the bidder shall be fixed during the bidder’s performance of the contract and not subjected to variation on any account. In such cases a bid submitted with an adjustable price quotation shall be treated as non-responsive and rejected.

(iii) Where, however, stipulated period of completion of supply of

goods is more than 18 months, price adjustment clause should be provided. In that case a bid submitted with a fixed price quotation will not be rejected, but price adjustment would be treated as zero.

(f) Currency of Bid and Currency of payment: (Refer paragraphs

2.29. 2.30, 2.32 and 2.33 of Guidelines)

The currency of the bid and currency of payment should be India Rupees with no obligations to convert to any other currency.

(g) Supply of materials by Department :

Contractors of civil works should be made responsible, as far as possible for all materials (including cement and steel) and equipment without having to rely on departmental supplies. With the exception of explosives if a Borrower insist on supply of certain construction materials, Bank will consider this a reserved procurement and the estimated cost of the materials thus supplied


will be excluded from the total project costs to determine the amount Bank will finance.

(h) Schedule of Quantities:

Detailed design, engineering, all investigations (including soil investigations) and land acquisition for the work should be completed before invitation of bids. Based on these, Bill of quantities and specifications should be properly prepared and checked. Schedule of quantities for each slice and package should be incorporated separately in bidding document. For goods and equipment minimum functional specifications to ensure procurement of proper equipment should be finalized before invitation of bid.

Bill of quantities should have a separate schedule for those general items, which are not covered in analysis of rates adopted for estimation.

(i) Performance Security: (Refer paragraphs 2.39 and 2.40 of

Guidelines)

1. The need for performance security depends on the market conditions and commercial practice for the particular kind of goods.

2. Performance security should be obtained for the prescribed

amount and in an acceptable from in the currency of the contract in accordance with the conditions of contract. It should remain valid as stipulated in the bidding document. Additional security should be taken to cover the risks of unbalanced bids in case of civil works.

3. Failure of the successful bidder to sign the contract or furnish

performance security with in the specified period shall constitute sufficient grounds for the annulment of the award and forfeiture of the bid security in which event the employer/purchaser may make the award to the next lowest evaluated bidder or call for new bids.

(j) Liquidated damages: (Refer paragraph 2.41 of Guidelines)

Liquidated damages not exceeding 0.5% per week (for goods) and 0.05% per day (civil works) of the value of the delayed goods, services or works subject to a maximum of 10% of the contract value are normally to be specified for delays in completion of works or supply of goods. Once the maximum limit is reached, the purchaser may consider for termination of the contract pursuant to provisions in the contract.


(k) Mobilization Advances:

Provision of mobilization advance for the labour and equipment should be incorporated in all civil works contracts. However the Bank will have no objection if this provision is deleted in case of civil works estimated to cost less than US$100,000 equivalent.

(l) Schedule of Rates:

Schedule of rates, which forms the basis for preparation of civil works estimates, should be updated regularly taking into account realistic data based on construction methodology to be used, specifications to be followed, current market rates for materials and labour and reasonable contractor’s profit.

7. Sale of Bidding Documents, Receipts and Opening of Bids: (Refer

paragraphs 2.44 and 2.45)

(a) Bidding documents should be made available for sale, to all those who intended to participate in the bidding, for minimum period of 30 days. It should range from 30 to 90 days depending on the value and nature of contract;

(b) Bidders should be permitted to deposit their bids on any day during

the bidding period. Receipt of bids should not be restricted to few days or last day only. Bidders should be permitted to send their bids either by post or hand over in person on any day during the bidding period.

(c) Last date of receipt of bids and opening of bids should be the next

day, following the close of sale of bidding documents. If that day happens to be a holiday, the last date for receipt and opening of bids shall be the next d\working day. The time of bid opening should be the same as for the deadline for receipt of bids or promptly thereafter (15 to 30 minutes later to allow sufficient time to take the bids to venue announced for public bid opening). All bids received should be opened in the presence of bidder’s representatives who choose to attend and shall sign a register evidencing their attendance.

(d) The bidder’s names, bid modifications or withdrawals, bid prices,

discounts, and the presence or absence of the requisite bid security and such other details as considered appropriate by the Purchaser shall be announced during the opening of bids in the meeting. The minutes of bid opening shall be prepared. Suggested format for preparation of the minutes of bid opening is attached. (Annexure - 2) No bid shall be rejected at the bid opening except for late bids, which shall be returned unopened to the Bidder.


(e) Bids and modification that are not opened and read out at the bids

opening shall not be considered further for evaluation, irrespective of the circumstances. Withdrawn bids should be returned unopened to the bidders.

(f) Two or three envelope system is un-acceptable.

8. Evaluation of Bids: (Refer paragraphs 2.48 to 2.54 of Guidelines)

(a) Before proceeding for evaluation, should be ascertained whether the bids: • Meet the eligibility requirements specified in paragraph 1.6 to

1.8 of Guidelines; • have been properly signed; • are accompanied by the required securities; • are substantially responsive to the requirements of the bidding

documents; • require any clarification and/or substantiation to determine

responsiveness; and • are otherwise generally in order.

If a bid is not substantially responsive, that is, it contains material deviations from or reservations to the terms, conditions and specifications in the bidding documents, it should not be considered further. The bidder must not be permitted to correct or withdraw material deviations or reservations once bids have been opened.

(b) The Employer/Purchaser may waive any minor informality or

nonconformity or irregularity in a bid, which does not constitute a material deviation, provided such waiver does not prejudice or affect the relative ranking of any bidder. In those cases for the purpose of evaluation, adjustments should be made for the costs to the Purchaser of any quantifiable non-material deviations or reservations. The evaluation will exclude and not take into account any allowance for price adjustment during the period of execution of the contract.

(c) A substantially responsive bid is one which conforms to all the

terms and conditions and specifications of the bidding document without material deviations or reservations. The determination of a bid's responsiveness is to be based on the contents of the bid itself without recourse to extrinsic evidence. In respect of goods deviations from or objections or reservations to critical provisions such as those concerning Bid Security under ITB Clause, Applicable Law, and Taxes and Duties under GCC Clauses will be deemed to be material deviations in addition, Deemed Export Benefits under ITB Clause, Performance Security, Warranty, Force Majeure under GCC Clauses are also to be treated as critical provisions for the above purpose.-[Clause references are of SBD


Goods]. In respect of works, a material deviation of reservation is one (i) which affects in any substantial way, the scope, quality or performance of the works; (ii) which limits in any substantial way, inconsistent with the bidding documents, the Employer's rights or the bidder's obligations under the contract; or (iii) whose rectification would affect unfairly the competitive position of other bidders presenting substantially responsive bids.

(d) Bidders should not be requested or permitted to alter their bid after

the deadline for receipt of bids. The Employer/Purchaser shall ask bidders for clarifications needed to evaluate the bids but shall not ask or permit bidders to change the substance or price of their bids after the bid opening. Requests for clarification and the bidders' responses shall be made in writing.

(e) No preferential treatment should be given to any bidder or class of

bidders either for price or for conditions unless specifically cleared with the Bank.

(f) Any procedure under which bids above or below a pre-determined

assessment of bid values are automatically disqualified, is not acceptable.

(g) In case of civil works all substantially responsive bids should be

evaluated in detail as per procedure stipulated in the bidding documents. The evaluation will exclude and not take into account any allowance for price adjustment during the period of execution of the contract. Suggested format for preparation of the bid evaluation report for civil works is attached (Annexure - 2).

(h) In case of Goods comparison of bids shall be ex-factory/ ex-

warehouse/ off-the-shelf price of good, such price to include all costs as well as duties and taxes paid or payable on components and raw materials incorporated in the goods.

(i) Evaluation of bids shall include Excise duty but shall exclude and

not take into account sales and other similar taxes which will be payable on the goods.

(j) Evaluation of the bids should take into account, in addition to the

bid price and the price of incidental services, the following factors in a manner and to the extent specified in the bidding documents:

• Cost of inland transportation, insurance and other costs within

India incidental to delivery of the goods to their final destination; • delivery schedule offered in the bid; • cost of components, mandatory spare parts and service; • the availability in India of spare parts and after sales service for

the equipment offered; .


• projected operating and maintenance costs during life of the

equipment; . • performance and productivity of the equipment offered; and • other specific criteria indicated in Bidding Data Sheet.

(k) Bids should be loaded appropriately as per bidding documents for

any deviations with reference to the requirements;

(l) Bonus or additional credits for bid evaluation should not be given for offered features that exceed the required standards or specifications i.e. additional horse power or capacity unless there is a specific provision for this in the bidding document;

(m) Bids often omit a particular component or options or accessories or

a minor attachment (i.e. tool kit or spare wheel in a vehicle). If the item offered for supply is otherwise functional and if the omissions are minor and these parts can be procured separately, the bid may be loaded for parts not included in the scope of supply and evaluated. In other cases the bids should be treated as non-responsive;

(n) All substantially responsive bids should be evaluated in detail as

per procedure stipulated in the bidding documents.

(o) Discounts if any offered along with the bid itself or offered before the last date and time for the; receipt of the bids shall be taken into account for evaluation. Discounts if any offered after the last date and time for receipt of the bids shall not be taken into account for evaluation. However, the bidder who has offered the discount after the last date and time for receipt of bids happens to .; be the lowest evaluated bid (without the discount being taken into consideration), the discount could be availed of at the time of award of contract and placement of supply order.

9. Post-qualification of Bidders: (Refer paragraph 2.58 of Guidelines)

If bidders have not been pre-qualified, the Employer/Purchaser shall determine whether the bidder whose bid has been determined to offer the lowest evaluated cost meets the minimum qualification criteria set out in the bidding document in the same name and style. If the selected bidder does not meet them, the bid shall be rejected. In such an event, the Employer/Purchaser shall make a similar determination for the next lowest evaluated bidder; the process continued if necessary. Suggested format for the preparation of the bid evaluation report for goods is attached (Annexure 2).


10. Single Bids:

Where only one bid is received, efforts should be made to ascertain the reasons. if it is determined that publicity was not adequate, bid specifications or any of terms were restrictive or unclear, the bid should be cancelled and invited afresh after amending the specifications/terms. If however, it is determined that bid specifications/conditions are not restrictive or unclear, that publicity was adequate; and the prices quoted are reasonable and bid is technically and commercially responsive, the single bid should be considered for award.

11. Rejection of all Bids (Refer paragraphs 2.61 to 2.63 of Guidelines)

Regardless of value, if all bids are proposed to be rejected and bids are to be reinvited, the Bank should be consulted before such action. Suggested format for seeking Bank's clearance is attached. (Annexure 2) Bank does not favour negotiations even with the lowest evaluated bidder.

In the case of civil works, the system of rejecting bids outside a pre-determined margin or "bracket" of prices should not be used without prior clearance with the Bank. Rejection of bids due to submission of collusive (unreasonably high) prices will attract provisions of para 1.15 of Guidelines. In such cases bidders must be requested to furnish breakdown of unit rates in terms of Clause 25.1 of ITB (NCB Works) providing justification for higher bid prices. If the justification, after review, is determined rational, contract should be awarded to the lowest evaluated responsive bidder. If not, these bidders must be declared as ineligible from bidding in the re-bid for that contract as specified in Clause 4.8 of ITB (NCB works).

12. Extension of validity of Bids (Refer paragraph 2.57 of Guidelines)

Employer/Purchaser shall complete evaluation of bids and award of contract within the initial period of bid validity so that extensions are not necessary. An extension of bid validity, if justified by exceptional circumstances, shall be requested in writing from all bidders before the expiration date. The extension shall be for the minimum period required completing the evaluation, obtaining the necessary approvals, and awarding the contract. In the case of fixed price contracts, requests for second and subsequent extensions will be permissible only if the request for extension provides for an appropriate adjustment mechanism of the quoted price to reflect changes in the cost of inputs for the contract over the period of extension. Such an increase in the bid price shall not be taken into account in the bid evaluation. Whenever an extension of bid validity period is requested, bidders shall not be requested or be permitted to change the quoted (base) price or other conditions of their bid. Bidders shall have the right to refuse' to grant such an extension without forfeiting their bid security, but those who are willing to extend the validity of their


bid shall be required to provide a suitable extension of bid security. If there is undue delay in awarding the contract, Bank may consider declaring the same as misprocurement.

Extension of bid validity shall not be allowed without the prior concurrence of the Bank (i) for the first request for extension if it is longer than eight weeks; and (ii) for all subsequent requests for extension irrespective of the period (such concurrence will be considered by Bank only in cases of Force Majeure and circumstances beyond the control of the Purchaser / Employer);

13. Award of Contract: (Refer paragraph 2.59 of Guidelines)

(i) The Employer/Purchaser shall award the contract, within the period of validity of bids, to the bidder whose bid has been determined to be substantially responsive to the bidding documents and who has offered the lowest evaluated bid price provided further that the bidder is determined to perform the contract satisfactorily and meets the specified qualification criteria.

(ii) A bidder shall not be required, as a condition of award, to undertake

responsibilities for work not stipulated in the bidding documents or otherwise to modify the bid as originally submitted.

14. Procurement of Items borne on DGS&D Rate Contracts:

Rate contracts entered into by DGS&D are not acceptable as substitute for NCB procedures. Such contracts will however, be acceptable for procurement under national shopping procedures. (Rate contracts of State Governments, Super Bazar, Janatha Bazar are not acceptable even under national shopping, but they can be considered as one quotation).

NCB conditions of contract, for procurement of goods covered by the DGS&D rate contracts beyond the threshold for national shopping should be as close to the terms and conditions of rate contracts as possible, particularly with reference to specifications, delivery, inspection, warranty, bid and performance security, cost of bidding document, payment terms, liquidated damages, procedure for settlement of disputes etc., so that rate contract suppliers can confirm their rate contract price and give discounts if any, without having to take exception to the provisions of the bidding document.


Important Points To Be Noted in the World Bank-Financed Contracts

1. Principal criteria followed in the World Bank procurement procedures are

transparency, economy and efficiency, opportunity to all eligible bidders from all countries, and encouraging development of domestic contracting and manufacturing industries.

2. Bank approved model bidding documents for procurement of Works and

Equipment (ICB/NCB) should be used fixing appropriate qualification & evaluation criteria and ensuring filling of all blanks.

3. Detailed design and engineering, including soil investigation, acquisition of

land for works and preparation of technical specification for equipment, to be completed before invitations of bids.

4. Bank will normally not finance additional floors in existing buildings.

However as an exception, where the initial design of a building contemplated additional floors, which were not built due to budgetary constraints and the ITL is fully satisfied of the design, then only the World Bank will agree for financing those additional floors under the credit/loan.

5. Schedule of rates (based on which estimates are prepared) should be

updated regularly taking into account realistic data based on the construction methodology to be used, current market prices for materials and labour, and reasonable contractor’s profit.

6. Bill of Quantities should have a separate schedule for those general items,

which are not covered in analysis of rates adopted for estimation.

7. (a) Bid Security:

A fixed amount usually 2 to 5% for Goods and 1 to 3% for works [For small value purchases and in some specific cases, where bid security is considered not essential, for example in vehicles it could be dispensed with] [a system of self declaration by bidders under which a winning bidder who does not sign the contract becomes ineligible for bidding for a specified period is provided in the new Guidelines as acceptable alternative].

(b) Performance Security:

Works Goods

5% of contract price 5 to 10% of contract price

(c) Retention Money: Works Goods

5% of contract price NIL (50% to be retained till completion of the whole of the works and 50%


to be retained till the end of defects liability period)

(Bank guarantees submitted by bidders/contractors/suppliers should be unconditional and be in the specified formats. Bid and performance securities of Joint Ventures should be in the name of all partners in the Joint Ventures submitting the bid).

8. Samples

Bidding documents should generally avoid submission of samples along with bids by bidders as this requirement discourages competition and increases the bid prices. Alternatively bidders should be requested to confirm that their product meets with the required specifications and in support attach appropriate test certificates from recognized testing laboratories.

9. No filtration in the sale of bidding document. It should be sold and made

available by mail as well, to all whosoever pays the required fee and requests for it.

10. Where Bidders are not pre-qualified, minimum post-qualification criteria

should be clearly specified in the bidding document and enforced. 11. Contractors should be made responsible to provide all materials including

Cement and Steel etc. 12. Minimum bidding period for NCB- 30 days and ICB- 45 days (from the date

of Publication of IFB in press /UNDB or the date the documents are made ready for sale, whichever is later).

13. Bidding documents should be made available for sale till a day prior to the

last date of receipt of bids. The time for the public bid opening should be the same for the deadline for receipt of bids or promptly thereafter (to allow only sufficient time to take the bids to the place announced for public bid opening).

Bidders could submit their bids either by post or in person on any day during the bidding period. Bids should be received only at one place and should be kept in safe custody till the stipulated time of opening.

14. Publicity of Bid Notices

NCB UNDB online and dgMarket publication

--

Copies to bidders who have expressed interest in response to the General Procurement Notice

Copies to bidders who have expressed interest

Publicity in the national press having Publicity in the national press


a wide circulation in all regions of the country

having a wide circulation in the country

For large, specialized or important contracts, publicity in well known technical magazines, newspapers and trade publications of wide international circulation

--

15. No preference to any bidders or class of bidders, either for price or for

other items and conditions. 16. Two or three envelope system is un-acceptable. 17. All bids received should be opened and read out at the time of bid

opening, which should be immediately after the deadline for submission of bids. No bids should be rejected at bid opening except for late bids, which should be returned unopened to the Bidder. Minutes of Bid opening must be prepared and one copy forwarded to the World Bank through the Project Implementation Unit, National Agricultural Innovation Project (NAIP) for information.

18. No negotiations. 19. Evaluation of bids should be made strictly in terms of the provisions and

criteria disclosed in the bidding document. 20. Single bids should also be considered for award if it is determined that

publicity was adequate, bid specifications/conditions were not restrictive or unclear and bid prices are considered reasonable.

21. Award should be in favour of the lowest evaluated responsive bidder, who

is determined to be qualified to perform the contract satisfactorily.

22. Evaluation and award decision of bids including the World Bank review should be completed within the initial period of bid validity. An extension of bid validity, if justified by exceptional circumstances shall be requested in writing from all bidders (of valid bids only) before the expiration date. The extension shall be for the minimum period required to complete evaluation, obtaining necessary approvals and award of contract. In the case of fixed price contracts the bid validity period may be extended a second time only if the bidding documents or the request for extension shall provide for appropriate adjustment of the bid price to reflect changes in the cost of inputs for the contract over the period of extension. Such an increase in the bid price shall not be taken into account in the bid evaluation. In the case of prior review contracts, the Bank’s prior approval will be required for (1) a first extension of the validity period if the period of extension exceeds eight (8) weeks; and any subsequent extension of the bid validity period.

If there is an undue delay in awarding the contract. The Bank may consider declaring the same as mis-procurement.


23. For works valued Rupees ten million and above the construction

method(s)/ Program and quality control details submitted by the bidders in response to Clause 4.3 (k) of ITB (W2) should be examined for acceptability before finalizing the award recommendations; this should be attached to the contract agreement for facilitating monitoring during implementation.

24. The system of rejecting bids outside a predetermined margin or bracket of

prices will not be used. Rejection of all bids, irrespective of value, should be referred to the World Bank through PIU, NAIP for review and issue of no objection [Rejection is permitted only if the lowest bid is much higher than available budget resources.] Format for seeking no objection of Bank provided separately.

25. Rejection of bids due to submission of collusive (unreasonably high) prices

will attract provisions of Para 1.15 of Procurement Guidelines. In such cases bidders must be requested to furnish breakdown of unit rates in terms of clause 25.1 of ITB (NCB works) providing justification for higher bid prices. If this justification, after review, is determined rational, the contract should be awarded to the lowest evaluated responsive bidder. If not, these bidders must be declared as ineligible in the rebid for that contract as specified in clause 4.8 of ITB (NCB works).

26. In the case of civil works splitting in award of contracts shall not be carried

out. When two or more bidders quote the same lowest price, an investigation should be made to determine any evidence of collusion, following which:

i) if collusion is determined, the parties involved should be disqualified

and the award should then be made to the next lowest evaluated and qualified bidder; and

ii) if no evidence of collusion can be confirmed, then fresh bids should be invited after receiving the concurrence of the World Bank through PIU-NAIP.

27. Under ICB/NCB bids should not be invited on the basis of bidders quoting

a percentage premium or discount over the estimated cost of the Employer.

28. During execution of contracts, all material modification or waiver of the

terms and conditions of contract or material extension of stipulated time or change order which would increase the contract cost by over 15% should be reported to the World Bank.

29. Repeat order system is not permissible. 30. In all contracts for works (civil as well as supply/erection), the

adjudicator/technical expert or Dispute Review Board should be in position constituted immediately on signing of the Contract Agreement.


31. Results of award should be published in Development Business and

Gateway for ICB/LIB and Direct Contracting. 32. Review of Contracts by the World Bank

Prior Review: It consists of review of: • Procurement plan • Invitation for bid; • Bidding documents; • Minutes of the pre-bid conference; • Bid evaluation report (suggested format included in the detailed

Guidelines); and • Final contract(s) with checklists (format of checklist included in the

detailed Guidelines)

Thresholds limit for prior review by Bank are as under:

1. For Works – US $ 200,000 and above. 2. For Goods and Equipment - US $ 1 million and above in each case 3. Force account : >US$ 10,000 and ≤ US$ 30,000.

Post Review: Review of final concluded Contract(s) with checklist and supporting documents for all other cases.

Chapter – VII : Detailed Procurement Procedures and Formats- Shopping

CHAPTER VII

Detailed Procurement Procedures and formats3 –Shopping

Provisions of paragraphs 3.5 of the Guidelines shall apply for procurement under Shopping. 1. Shopping is a procurement method based on comparing price quotations

obtained from several Suppliers, usually at least three, to assure competitive prices. It is an appropriate method for procuring readily available off-the-shelf goods or standard specification commodities that are small in value and are ordinarily available from more than one source in India at competitive prices. Requests for quotations could be either from a list of recognized and proven Suppliers or by advertisement in a local newspaper. The requests should indicate the description and quantity of the goods, brief specifications as well as desired delivery, time and place. Method of evaluation, for each item separately or for a group of items should be specified. Bid security is not stipulated. Suggested format for invitation of quotations is attached (Annexure 3).

2. Quotations shall be opened after the stipulated time and date of

submission of the quotations. Comparative statement is prepared. The evaluation of the quotations shall follow sound public or private sector practices of the Purchaser. Evaluation should be done as per stipulations in the letter of invitation of quotations. Award should be made to the lowest bidder whose bid is considered substantially responsive.

3. The terms of the accepted offer shall be incorporated in a purchase order.

Suggested format of Supply order is attached. (Annexure 3). 4. Rate contracts entered into by DGS&D are acceptable as a substitute

for national shopping. In such cases direct order can be placed (by all Direct Demanding officers) on the Manufacturer on the DGS&D Format as per the stipulated terms and conditions. In case the Purchaser is not a Direct Demanding officer and the value of procurement is small, direct order could be placed on the Agent/Dealer at the current DGS&D rates, after suitable verification.

5. Rate contracts of state governments, Janatha Bazar, Super Bazar are

not acceptable as a substitute for national shopping procedures, but they can be considered as one quotation.

Note: Most of the state governments/central agencies have stipulation that the

field implementing agencies should procure material either from State Industries Corporations or Super Bazar. Such a stipulation is not acceptable to the Bank. This is already agreed with the Borrower. Project Implementation Unit should seek necessary exemption from

3 Formats enclosed as Annexure 3.

Chapter – VII : Detailed Procurement Procedures and Formats- Shopping

competent authorities at the initial stage of the project itself and convey the same to the implementing agencies. Procurement made contrary to agreed procedures would not be eligible for financing under the credit and amount claimed and disbursed for such procurement would be adjusted from future applications.

1. Quantity ordered should not vary more than that indicated in the invitation of quotations. In case of additional demand, fresh quotations should be invited. Repeat orders are not acceptable.

2. The procedure for procurement of works through shopping is also similar to procurement of goods by obtaining price quotations, from atleast three established contractors for that work.

Chapter – VIII : Detailed Procurement Procedures and Formats – Direct Contracting (DC)

CHAPTER VIII

Detailed Procurement Procedures and formats Direct Contracting (DC)

_______________________________________________________________ Provisions under paragraph 3.6 and 3.7 of the Guidelines shall apply for procurement under Direct Contracting: 1. In respect of books and periodicals, direct order could be placed with the

publisher at the published rate list. Discounts as given by the publisher himself (for example in book Exhibitions) could be availed of. However if it is intended to procure the books or periodicals through an agent or dealer, quotations as per national shopping procedures should be invited requesting for the competitive discounts which the agents would offer on the published rate list of books and periodicals, prepare comparative statement and place order with the lowest offer.

2. Designing, preparation of extension and publicity material (for example

poster design, preparation of publicity material, slogans, street shows, demonstration etc. are works of art and are not amendable to competition. Hence such contracts should be awarded on direct contracting after obtaining an offer from the selected artist. However printing of the extension and publicity material in required quantities and making copies of the posters etc. are simple works and should be procured through national shopping procedures after obtaining quotations or through N CB procedures depending on the estimated value of the contract.

3. Procurement of software from the developer himself or from an authorized

reseller will come under the category of Direct Contracting. However if it is intended to procure the original and Authorized Version of software through an agent or dealer, national shopping procedures or NCB procedures depending on the estimated value of the contract, should be followed. Bank strongly recommends procurement of software from the developer or authorized reseller to avoid possible piracy.

4. Procurement of an item of equipment of a particular brand is erroneously

treated as proprietary equipment. This is not correct. Proprietary equipment is one, which is obtainable from one source only. It is very difficult to certify such procurement. Hence it would be advisable to procure such equipment through national shopping by specifying the minimum functional specifications. However spares for equipment already available with the purchaser (if such spares are not available in the market at competitive prices and further the procurement of such spares from the market would bring down the efficiency of the equipment) could be procured on direct contracting basis.

5. Topographical maps and aerial photography maps from Survey of India

could be procured on a direct contracting basis.

Chapter – VIII : Detailed Procurement Procedures and Formats – Direct Contracting (DC)

6. Satellite imageries are presently prepared and sold only by National Institute of Remote Agency and ISRO. Such imageries could be procured on direct contracting basis.

7. Rainfall and climatological data could be procured on direct contracting

basis from India meteorological Department. Such similar data could also be procured directly from the custodians of such data.

8. Proper record of the direct contracting procurement should be kept and the

stipulated ceilings in the Legal Agreement adhered to.

Chapter –IX :Detailed Procurement procedures and formats – Force Account(FA)

CHAPTER IX

Detailed Procurement Procedures and formats Force Account (FA)

Provisions under paragraphs 3.8 of the Guidelines and paragraph 4, Part B, Section II of Schedule 2 of the Project Agreement shall apply: 1. Procurement of small works:

Works estimated to cost less than $30,000 equivalent per contract might be procured either: (i) Under lumpsum, fixed-price contracts awarded on the basis of

quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to complete the contract successfully; A suggested format

(ii) The works under the project estimated to cost US$ 10,000 or more

proposed under force account procedures will require prior approval from the World Bank.

Chapter – X : Procurement procedures and formats for Selection of Consultants

Chapter – X

Procurement procedures and formats4 for Selection of Consultants

1. MAIN CONSIDERATIONS IN SELECTION OF CONSULTANTS

Bank policy on the selection of consultants is guided by the following principles: high quality of services; economy and efficiency; competition among qualified consultants from all eligible countries; participation of national consultants; and transparency.

2. ELIGIBILITY

Eligibility is a generic term defining the authorization to compete for a

Bank-funded project. Only consultants who are registered or incorporated in Bank member countries, and individuals who are nationals of such countries, are eligible to compete for Bank-financed consulting contracts. Consultants from Bank member countries may still be excluded from participating in Bank-financed projects in the following circumstances (see para. 1.11 (a) of the Consultant Guidelines): The Borrower’s country’s laws prohibit commercial relations with

the consultant’s country, and the Bank is satisfied that the exclusion does not preclude effective competition.

The Borrower’s country has adopted a decision of the U.N. Security Council imposing economic sanctions against the consultant’s country.

The Bank has declared the consultant ineligible to participate in Bank-financed projects because of fraudulent or corrupt practices on the part of the consultant.

3. ASSOCIATION BETWEEN CONSULTANTS

Consultants may associate with each other in the form of a joint venture or of a sub-consultancy agreement to complement their respective areas of expertise, strengthen the technical responsiveness of their proposals and make available bigger pools of experts, provide better approaches and methodologies, and, in some cases, to offer lower prices. Such an association may be for the long term (independent of any particular assignment) or for a specific assignment. If the Borrower employs an association in the form of a joint venture, the association should appoint one of the firms to represent the association; all members of the joint

4 Evaluation report forms enclosed as Annexure 4.


venture shall sign the contract and shall be jointly and severally liable for the entire assignment. Once the short list is finalized, and Requests for Proposals (RFP) are issued, any association in the form of joint venture or sub-consultancy among short-listed firms shall be permissible only with the approval of the Borrower. Borrowers shall not require consultants to form associations with any specific firm or group of firms, but may encourage association with qualified national firms.

4. SELECTION OF CONSULTANT The method of selection of consultant would normally be Quality and Cost Based Selection (QCBS), which has been described in detail in this chapter.

The selection process should be fair and transparent and normally all requests calling for Expression of Interest should be advertised in at least one National Newspaper. Simultaneously, the copy of advertisement and other relevant details essential for bidders to submit ‘ Expression of Interest’ may be posted on the departmental website, reference of that should be available in the advertisement in the newspaper. For contracts estimated to cost more than US$ 500,000, a copy of request for Expression of Interest (EOI) shall be advertised in UNDB online and dg/Market shall also be sent to local offices of various High Commissions/Embassies in India. The low value contracts where cost of advertising out weighs the benefits likely to accrue due to open competition can be through a pre-determined shortlist of consultants.

5. METHOD FOR SELECTION OF CONSULTANT

5.1 Quality And Cost-Based Selection (Qcbs) [Refer Section Ii Of Guide Lines] The Selection Process: {refer paragraph 2.1 and 2.2 of Guidelines)

QCBS uses a competitive process among short-listed firms arrived at against response to request for “Expression of Interest”. This Selection process takes into account the quality of the proposal and the cost of the services in the selection of the successful firm. Cost as a factor of selection shall be used judiciously. The relative weight to be given to the quality and cost shall be determined for each case depending on the nature of the assignment

The selection process shall include the following steps: (a) preparation of Terms of Reference (TOR); (b) preparation of cost estimate and the budget; (c) advertising; (d) preparation of the short list of consultants; (e) preparation and issuance of the Request for Proposals (RFP);

(i) Letter of Invitation (LOI); (ii) Information to consultants (ITC);


(iii) TOR and proposed draft contract; (f) receipt of proposals; (g) evaluation of technical proposals: consideration of quality; (h) public opening of financial proposals; (i) evaluation of financial proposal; (j) final evaluation of quality and cost; and (k) negotiations, and award of the contract to the selected firm.

5.1.1 Terms of Reference (TOR) {refer paragraph 2.3 of Guidelines)

The Employer shall be responsible for preparing the TOR for the assignment. TOR shall be prepared by person(s) or a firm specialized in the area of the assignment. The scope of the services described in the TOR shall be compatible with the available budget. TOR shall define clearly the objectives, goals, and scope of the assignment and provide background information (including a list of existing relevant studies and basic data) to facilitate the consultants’ preparation of their proposals. If transfer of knowledge or training is an objective, it should be specifically outlined along with details of number of staff to be trained, and so forth, to enable consultants to estimate the required resources. TOR shall list the services and surveys necessary to carry out the assignment and the expected outputs (for example, reports, data, maps, surveys). However, TOR should not be too detailed and inflexible, so that competing consultants may propose their own methodology and staffing. Firms shall be encouraged to comment on the TOR in their proposals. The Employer’s and consultants’ respective responsibilities should be clearly defined in the TOR.

5.1.2 Cost Estimate (Budget) {refer paragraph 2.4 of Guidelines)

Preparation of a well-thought-through cost estimate is essential if realistic budgetary resources are to be earmarked. The cost estimate shall be based on the Employer’s assessment of the resources needed to carry out the assignment: staff time, logistical support, and physical inputs (for example, vehicles, laboratory equipment). Costs shall be divided into two broad categories: (a) fee or remuneration (according to the type of contract used) and (b) reimbursable, and further divided into foreign and local costs. The cost of staff time shall be estimated on a realistic basis for foreign and national personnel as applicable in respective cases.

5.1.3 Advertising {refer paragraph 2.5 of Guidelines)

For all projects the Borrower is required to prepare and submit to the Bank a draft General Procurement Notice. The Bank will arrange for its publication in US Development Business only (UNDB online) and in the Development Gateway’s dgMarket. To obtain expressions of interest, the Borrower shall include a list of expected consulting assignments in the General Procurement Notice, and shall advertise a request for expressions of interest for each contract for consulting firms in the


national gazette or a national newspaper or in an electronic portal of free access. In addition, contracts expected to cost more than US$ 200,000 shall be advertised in UNDB online and in dgMarket. The information requested shall be the minimum required to make a judgement on the firm’s suitability and not be so complex as to discourage consultants from expressing interest. Not less than 14 days from the date of posting on UNDB online shall be provided for responses.

5.1.4 Short List of Consultants (refer paragraph 2.6 to 2.8 of Guidelines)

The Borrower is responsible for preparation of the short list. The Borrower shall give first consideration to these firms expressing interest that possess the relevant qualifications. Short lists shall comprise six firms with a wide geographic spread, with no more than two firms from any one country and atleast one firm from a developing country unless qualified firms from developing countries are not identified. The Bank may agree to shortlist comprising a smaller number of firms in special circumstances, for example, when only a few qualified firms have expressed interest for the specific assignment or when the size of the contract does not justify wider competition. For the purpose of establishing the short list, the nationality of a firm is that of the country in which it is registered or incorporated and in the case of Joint Venture, the nationality of the firm appointed to represent the Joint Venture. The Bank may agree with the Borrower to expand or reduce a short list, however, once the Bank has issued a “no objection” to a short list, the Borrower shall not add or delete names without the Bank’s approval.

The short list may comprise entirely national consultants (firms registered or incorporated in the country), if the assignment is below US$ 500,000. However, if foreign firms express interest. They shall be considered.

5.1.5 Preparation and Issuance of the Request for Proposals (RFP) {refer paragraph 2.9 of Guidelines)

The RFP shall include (a) a Letter of Invitation, (b) Information to Consultants, (c) the TOR, and (d) the proposed draft contract. Employer shall use the applicable standard RFPs issued by the Bank with minimal changes acceptable to the Bank as necessary to address project-specific issues. Any such changes shall be introduced only through the RFP data sheet. Employer shall list all the documents included in the RFP. The Employer may use an electronic system to distribute the RFP. If the RFP is distributed electronically, the electronic system shall be secure to avoid modifications to the RFP and shall not restrict the access of short listed consultants to the RFP.

5.1.6 Letter of Invitation (LOI) {refer paragraph 2.10 of Guidelines)

The LOI shall state the intention of the Employer to enter into a contract for the provision of consulting services, the details of the client and the


date, time, and address for submission of proposals.

5.1.7 Information to Consultants (ITC) {refer paragraph 2.11 of Guidelines)

The ITC shall contain all necessary information that would help consultants prepare responsive proposals, and shall bring as much transparency as possible to the selection procedure by providing information on the evaluation process and by indicating the evaluation criteria and factors and their respective weights and the minimum passing quality score. The ITC shall not indicate the budget (since cost is a selection criterion), but shall indicate the expected input of key professionals (staff time). Consultants, however, shall be free to prepare their own estimates of staff time necessary to carry out the assignment. The ITC shall specify the proposal validity period (normally 60- 90 days).

5.1.8 Contract {refer paragraph 2.12 of Guidelines)

The Employers shall use the appropriate Standard Form of Contract with minimum changes, as necessary to address any specific project issues. Any such changes shall be introduced only through Contract Data Sheets or through Special Conditions of Contract and not by introducing changes in the wording of the General Conditions of Contract included in the Standard Form. When these forms are not appropriate for the services being contracted, Employer shall use other contract forms, acceptable to the Bank, depending on the requirement of the project.

5.1.9 Receipt of Proposals {refer paragraph 2.13 of Guidelines)

The Employer should allow enough time for the consultants to prepare their proposals. The time allowed shall depend on the assignment, but normally shall not be less than four weeks and more than three months. During this interval, the firms may request clarifications about the information provided in the RFP. The Employer shall provide these clarifications in writing and copy them to all firms on the short list (who intend to submit proposals). If necessary, the Employer shall extend the deadline for submission of proposals. The technical and financial proposals shall be submitted at the same time. No amendments to the technical or financial proposal shall be accepted after the deadline. To safeguard the integrity of the process, the technical and financial proposals shall be submitted in separate sealed envelopes. The technical envelopes shall be opened publicly immediately after closing of receipt of technical bids by a committee of officials drawn from the relevant departments (technical, finance, personnel etc., as considered appropriate), after the closing time for submission of proposals. The financial proposals shall remain sealed and shall be kept in safe custody until they are opened publicly. Any proposal received after the closing time for submission of proposals shall be returned unopened. In all


cases of large value or complex assignments, pre-bid conference may be prescribed in the RFP. The time, which normally should be after 15 to 30 days of issue of RFP, should be specified in the RFP itself. During this meeting, the scope of assignment, responsibilities of either parties and other details should be clearly explained to the prospective consultant so that there is no ambiguity later on at the time of submission of technical/financial bids. Where some significant changes are made in the terms/scope of RFP as a result of pre bid meeting or otherwise considered necessary by the Employer, a formal Corrigendum to RFP may be issued, to all shortlisted consultants. In such cases, it should be ensured that after issue of Corrigendum, reasonable time (not less than 15 days) is available to the consultants to prepare/submit their proposal. If required, the time for preparation & submission of proposal may be extended, suitably.

5.1.10 Evaluation of Proposals: Consideration of Quality and Cost {refer paragraph 2.14 of Guidelines)

The evaluation of the proposals shall be carried out in two stages: first the quality, and then the cost. Evaluators of technical proposals shall not have access to the financial proposals until the technical evaluation, including any Bank reviews and no objections, is concluded. Financial proposals shall be opened only thereafter. The evaluation shall be carried out in full conformity with the provisions of the RFP.

5.1.10.1 Evaluation of the Quality {refer paragraph 2.15 to 2.19 of Guidelines)

The Employer shall evaluate each technical proposal (using an evaluation committee of three or more specialists in the sector), taking into account several criteria: (a) the consultant’s relevant experience for the assignment, (b) the quality of the methodology proposed, (c) the qualifications of the key staff proposed, (d) transfer of knowledge, and (e) the extent of participation by Nationals among key staff in the

performance of the assignment. Each criterion shall be allotted marks so as to make total maximum technical score as 100. The criteria and weightage to each criteria or sub-criteria would depend on the requirements of each case and may be fixed objectively.

The Employer shall normally divide these criteria into subcriteria. For

example, subcriteria under methodology might be innovation and level of detail. However, the number of subcriteria should be kept to the minimum that is considered essential. The weight given to experience can be relatively modest, since this criterion has already been taken into account when short-listing the consultant. More weight shall be given to the methodology in the case of more complex assignments (for


example, multidisciplinary feasibility or management studies).

Evaluation of only the key personnel is recommended. Since key personnel ultimately determine the quality of performance, more weight shall be assigned to this criterion if the proposed assignment is complex. The Employer shall review the qualifications and experience of proposed key personnel in their curricula vitae, which must be accurate, complete, and signed by an authorized official of the consultant and the individual proposed. When the assignment depends critically on the performance of key staff, such as a Project Manager in a large team of specified individuals, it may be desirable to conduct interviews. The individuals shall be rated in the following three sub criteria, as relevant to the task: (a) general qualifications: General education and training, length of

experience, positions held etc. (b) adequacy for the assignment: education, training, and

experience in the specific sector, field, subject, and so forth, relevant to the particular assignment; and

(c) experience in the region: knowledge of the local language, culture, administrative system, government organization, and so forth.

Employer shall evaluate each proposal on the basis of its

responsiveness to the TOR. A proposal shall be considered unsuitable and shall be rejected at this stage if it does not respond to important aspects of the TOR or it fails to achieve a minimum technical score specified in the RFP.

At the end of the process, the Employer shall prepare a technical evaluation report of the “quality” of the proposals and in case of contracts subject to prior review, submit it to the Bank for its review and “No objections”. The report shall substantiate the results of the evaluation and describe the relative strengths and weaknesses of the proposals. All records relating to the evaluation, such as individual mark sheets, shall be retained until completion of the project and its audit.

5.1.10.2 Evaluation of Cost {refer paragraph 2.20 to 2.22 of Guidelines)

After the evaluation of quality is completed, and the Bank has issued its no objection (if this is prior-review case) the Employer shall inform the consultants who have submitted proposals the technical points assigned to each consultant shall notify those consultants whose proposals did not meet the minimum qualifying mark or were considered non-responsive to the RFP and/or TOR, indicating that their financial proposals will be returned unopened after completing the selection process. The Employer shall simultaneously notify the consultants that have secured the minimum qualifying mark, and indicate the date and time set for opening the financial proposals. In such a case, the opening date shall not be sooner than two weeks after the notification date. The financial proposals shall be opened publicly in the presence of


representatives of the technically qualified consultants who choose to attend. The name of the consultant, the quality scores, and the proposed prices shall be read aloud and recorded when the financial proposals are opened, The Employer shall prepare the minutes of the public opening and copy of this record shall be sent to all consultants who submitted proposals.

The Employer shall then review the financial proposals. If there are any arithmetical errors, they shall be corrected. For the purpose of comparing proposals, the costs shall be converted to a single currency preferably Indian Rupees., as stated in the RFP. The Employer shall make this conversion by using the BC selling exchange rates for those currencies as per exchange rate quoted by an official source e.g. State Bank of India. The RFP shall specify the source of the exchange rate to be used and the date of exchange rate, provided that the date shall not be earlier than four weeks prior to the deadline for submission of proposals, nor later than the original date of expiration of the period of validity of the proposal.

For the purpose of evaluation, “cost” shall exclude Local identifiable indirect taxes on the contract and income tax payable on the remuneration of services rendered by non-resident staff of the Consultant. The cost shall include all consultant’s remuneration and other reimbursable expenses, such as travel, translation, report printing, or secretarial expenses. The proposal with the lowest cost may be given a financial score of 100 and other proposals given financial scores that are inversely proportional to their prices. Alternatively, other methodology as considered appropriate might be used in allocating the marks for the cost. The methodology should however be described in the RFP.

5.1.10.3 Combined Quality and Cost Evaluation (refer paragraph 2.23 of Guidelines)

The total score shall be obtained by weighing the quality and cost scores and adding them. As an illustration, in a case where technical score weightage is 80% and cost weightage is 20%, a firm scoring 80% marks in technical score and 70% marks in financial score, the total weighted score would be 80x0.8+70x0.2=78%. The weight for the “cost” shall be chosen, taking into account the complexity of the assignment and the relative importance of quality. The proposed weightages for quality and cost shall be specified in the RFP. The firm obtaining the highest total weighted score shall be invited for negotiations.

5.1.11 Rejection of All Proposals, and re –invitation (refer paragraph 2.30 of Guidelines)

The Borrower shall be justified in rejecting all proposals only if all proposals are non-responsive because they present major deficiencies in complying with the TOR or if they involve costs substantially higher


than the original estimate. In the latter case, the feasibility of increasing the budget, or scaling down the scope of services with the firm should be investigated in consultation with the Bank. Before all the proposals are rejected and new proposals are invited, the Borrower shall notify the Bank, indicating the reasons for rejection of all proposals, and shall obtain the Bank’s “no objection” before proceeding with the rejection and the new process. The new process may include revising the RFP (including the short list) and the budget. These revisions shall be agreed upon with the Bank.

5.1.12 Negotiations and Award of Contract (refer paragraph 2.24 to 2.27 of Guidelines)

Negotiations shall include discussions of the TOR, the methodology, staffing, Employer inputs, and special conditions of the contract. These discussions shall not substantially alter the original TOR or the terms of the contract, lest the quality of the final product, its cost, and the relevance of the initial evaluation be affected. Major reductions in work inputs should not be made solely to meet the budget. The final TOR and the agreed methodology shall be incorporated in “Description of Services,” which shall form part of the contract.

The selected firm should not be allowed to substitute key staff, unless both parties agree that undue delay in the selection process makes such substitution unavoidable or that such changes are critical to meet the objectives of the assignment. If this is not the case and if it is established that key staff were offered in the proposal without confirming their availability, the firm may be disqualified and the process continued with the next ranked firm. The key staff proposed for substitution shall have qualifications equal to or better than the key staff initially proposed.

Financial negotiations shall include clarification of the consultants’ tax liability in India (if any) and how this tax liability has been or would be reflected in the contract. As Lumb-Sum Contracts payments are based on delivery of outputs (or products), the offered price shall include all costs (staff time, overhead, travel, hotel, etc.). Consequently, if the selection method for a Lump-sum contract included price as a component, this price shall not be negotiated. In the case of Time-based Contracts, payment is based on inputs (staff time and reimbursables) and the offered price shall include staff rates and an estimation of the amount of reimbursables. When the selection method includes price as a component, negotiations of staff rates should not take place, except in special circumstances, like for example, staff rates offered are much higher than typically charges rates by consultants for similar contract. Consequently, the prohibition of negotiation does not preclude the right of the client to ask for clarifications, and, if fee are very high, to ask for change of fees, after due consultation with the Bank. Reimbursables are to be paid on actual expenses incurred at cost upon presentation of receipts and therefore are not subject to


negotiations. However, if the client was to define ceilings for unit prices of certain reimbursables (like travel or hotel rates), they should indicate the maximum levels of those rates in the RFP or define as per diem in the RFP.

If the negotiations fail to result in an acceptable contract, the Barrower shall terminate the negotiations and invite the next ranked firm for negotiations. The borrower shall consult with the Bank prior to taking this step. The consultant shall be informed of the reasons for terminations of negotiations. Once the negotiations commenced with the next ranked firm, the borrower shall not re-open the earlier negotiations. After the negotiations are successfully completed and the bank has issued ‘No Objection’ to the initialed negotiated contract, the Borrower shall promptly notify other firms on the short list that they were unsuccessful.

5.1.13 PUBLICATION OF THE AWARD OF CONTRACT (Refer paragraph 2.28 of Guidelines)

After the award of contract, the borrower shall publish in UNDB online and in dgMarket the following information :-

a) the names of all consultants who submitted proposals; b) the technical points assigned to each consultant; c) the evaluated price of each consultant; d) the final point ranking of the consultants; e) the name of the winning consultant and the price, duration, and

summary scope of the contract. The same information shall be sent to all consultants who have submitted proposals.

Any consultant whose proposal was not selected, may request the Borrower for explanation of grounds for not qualifying his proposals.

5.1.14 Confidentiality (Refer paragraph 2.31 of Guidelines)

Information relating to evaluation of proposals and recommendations concerning awards shall not be disclosed to the consultants who submitted the proposals or to other persons not officially concerned with the process, until the award of contract is notified to the successful firm, except as provided in paragraph 2.20 and 2.27.

5.2 Other Methods of Selection

General

This section describes the selection methods other than QCBS and the circumstances under which they are acceptable. All other relevant provisions of Section II (QCBS) shall apply whenever competition is used


5.2.1 Quality Based Selection (QBS) (refer paragraph 3.2 to 3.4 of

Guidelines)

QBS is appropriate for the following types of assignments :-

(c) complex or highly specialised assignments for which it is difficult to define precise TOR and the required input from the consultants, and for which the client expects the consultants to demonstrate innovation in their proposals (for example, country economic or sector studies, multisectoral feasibility studies, design of a hazardous waste remediation plant or of an urban master plan, financial sector reforms).

(d) Assignments that have a high downstream impact and in which

the objective is to have the best experts (for example, feasibility and structural engineering design of such major infrastructure as large dams, policy studies of national significance, management studies of large government agencies); and

(e) Assignments that can be carred out in substantially different

ways, such that proposals will not be comparable (for example, management advice, and sector and policy studies in which the value of the services depends on the quality of the analysis).

In QBS, the RFP may request submission of a technical proposal only

(without the financial proposal), or request submission of both technical and financial proposals at the same time, but in separate envelopes (two-envelope system). The RFP shall provide either the estimated budget or the estimated number of key staff time, specifying that this information is given as an indication only and that consultants shall be free to propose their own estimates.

If technical proposals alone were invited, after evaluating the technical proposals using the same methodology as in QCBS, the Borrower shall ask the consultant with the highest ranked technical proposal to submit a detailed financial proposal. The Borrower and the consultant shall then negotiate the financial proposal and the contract. All other aspects of the selection process shall be identical to those of QCBS, including the publication of the Award of Contract as described in paragraph 2.28 except that only the price of the winning firm is published. If consultants were requested to provide financial proposals initially together with the technical proposal, safeguards shall be built in as in QCBS to ensure that the price proposal of only the selected firm is opened and the rest returned unopened after the negotiations are successfully concluded.


5.2.2 Selection under a Fixed Budget (FBS) (refer paragraph 3.5 of

Guidelines)

This method is appropriate only when the assignment is simple and can be precisely defined and when the budget is fixed. The RFP shall indicate the available budget and request the consultants to provide their best technical and financial proposals in separate envelopes, within the budget. TOR should be particularly well prepared to make sure that the budget is sufficient for the consultants to perform the expected tasks. Evaluation of all technical proposals shall be carried out first as in the QCBS method. Then the price proposals shall be opened in public and prices shall be read out aloud. Proposals that exceed the indicated budget shall be rejected. The Consultant who has submitted the highest ranked technical proposal among the rest shall be selected and invited to negotiate a contract. The publication of the Award of contract shall be as described in paragraph 2.28.

5.2.3 Least-Cost Selection (LCS) (refer paragraph 3.6 of Guidelines)

This method is only appropriate for selecting consultants for assignments of a standard or routine nature (audits, engineering design of non-complex works, and so forth) where well-established practices and standards exist. Under this method, a “minimum” qualifying mark for the “quality” is established. Proposals, to be submitted in two envelopes, are invited from a short list. Technical proposals are opened first and evaluated. Those securing less than the minimum qualifying mark are rejected, and the financial proposals of the rest are opened in public. The firm with the lowest prices shall then be selected and the publication of the Award of contract shall be as described in paragraph 2.28. Under this method, the minimum qualifying mark shall be established understanding that all proposals above the minimum compete only on “cost”. The minimum qualifying mark shall be stated in the RFP.

5.2.4 Selection Based on Consultants’ Qualifications (CQS) (refer paragraph 3.7 and 3.8 of Guidelines)

This method may be used for very small assignments for which the need for preparing and evaluating competitive proposals is not justified. In such cases, the Employer shall prepare the TOR, request expressions of interest and information on the consultants’ experience and competence relevant to the assignment, establish a short list, and select the firm with the most appropriate qualifications and references. The selected firm shall be asked to submit a combined technical-financial proposal and then be invited to negotiate the contract. In case negotiations fail with this firm, the next best-qualified firm may be asked to submit proposal and invited to negotiate the contract.

The Borrower shall publish in UNDB online and in dgMarket the name of


the consultant to which the contract was awarded and the price, duration, and scope of the contract. This publication may be done quarterly and in the format of a summarized table covering the previous period.

5.2.5 Single-Source Selection (refer paragraph 3.9 to 3.13 of Guidelines)

Single-source selection of consultants does not provide the benefits of competition in regard to quality and cost, lacks transparency in selection, and could encourage unacceptable practices. Therefore, single-source selection shall be used only in exceptional cases. The justification for single-source selection shall be examined in the context of the overall interests of the client and the project, and the Bank’s responsibility to ensure economy and efficiency and provide equal opportunity to all qualified consultants.

Single-source selection may be appropriate only if it presents a clear advantage over competition: (a) for tasks that represent a natural continuation of previous work carried out by the firm (see next paragraph), (b) where a rapid selection is essential (for example, in an emergency operation), (c) for very small assignments, or (d) when only one firm is qualified or has experience of exceptional worth for the assignment.

When continuity for downstream work is essential, the initial RFP shall outline this prospect, and, if practical, the factors used for the selection of the consultant should take the likelihood of continuation into account. Continuity in the technical approach, experience acquired, and continued professional liability of the same consultant may make continuation with the initial consultant preferable to a new competition subject to satisfactory performance in the initial assignment. For such downstream assignments, the Employer shall ask the initially selected consultant to prepare technical and financial proposals on the basis of TOR furnished by the Employer, which shall then be negotiated.

If the initial assignment was not awarded on a competitive basis or was awarded under tied financing or reserved procurement or if the downstream assignment is substantially larger in value, a competitive process shall normally be followed in which the consultant carrying out the initial work is not excluded from consideration if it expresses interest. The Bank will considered exceptions to the rule only under special circumstances and only when a new competitive process is not practicable.

The Borrower shall publish in UNDB on-line and in dgMarket the name of the consultant to which the contract was awarded and the price, duration, and scope of the contract. This publication may be done quarterly and in the format of a summarized table covered the previous period.


5.2.6 Selection of Individual Consultants (refer paragraph 5.1 to 5.4 of Guidelines)

Individual consultants are normally employed on assignments for which (a) teams of personnel are not required, (b) no additional outside (home office) professional support is required, and (c) the experience and qualifications of the individual are the paramount requirement. When coordination, administration, or collective responsibility may become difficult because of the number of individuals, it would be advisable to employ a firm.

Individual consultants are selected on the basis of their qualifications for the assignment. They shall be selected through comparison of qualifications of at least three candidates among those who have expressed interest in the assignment or have been approached directly by the Employer. Individuals employed by Employers shall meet all relevant qualifications and shall be fully capable of carrying out the assignment. Capability is judged on the basis of academic background, experience, and, as appropriate, knowledge of the local conditions, such as local language, culture, administrative system, and government organization.

From time to time, permanent staff or associates of a consulting firm may be available as individual consultants. In such cases, the conflict of interest provisions described in these Guidelines shall apply to the parent firm.

Individual consultants may be selected on a sole-source basis with due justification in exceptional cases such as: (a) tasks that are a continuation of previous work that the consultant has carried out and for which the consultant was selected competitively; (b) assignments lasting less than six months; (c) emergency situations resulting from natural disasters; and (d) when the individual is the only consultant qualified for the assignment.

6. Types of Contracts

6.1 Lump Sum (Firm Fixed Price) Contract : Lump sum contracts are

used mainly for assignments in which the content and the duration of the services and the required output of the consultants are clearly defined. They are widely used for simple planning and feasibility studies, environmental studies, detailed design of standard or common structures, preparation of data processing systems, and so forth. Payments are linked to outputs (deliverables), such as reports, drawings, bills of quantities, bidding documents, and software programs. Lump sum contracts are easy to administer because payments are due on clearly specified outputs.

6.2 Time-Based Contract : This type of contract is appropriate when it is difficult to define the scope and the length of services, either because


the services are related to activities by others for which the completion period may vary, or because the input of the consultants required to attain the objectives of the assignment is difficult to assess. This type of contract is widely used for complex studies, supervision of construction, advisory services, and most training assignments. Payments are based on agreed hourly, daily, weekly, or monthly rates for staff (who are normally named in the contract) and on reimbursable items using actual expenses and/or agreed unit prices. The rates for staff include salary, social costs, overhead, fee (or profit), and, where appropriate special allowances. This type of contract shall include a maximum amount of total payments to be made to the consultants. This ceiling amount should include 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 Employer to ensure that the assignment is progressing satisfactorily and that payments claimed by the consultants are appropriate.

7.

7.1

Important Provisions Currency. RFPs shall clearly state that firms may express the price for their services, in the currency specified in RFP. If RFP allows proposals in more than one currencies, the date & the exchange date for converting all the bid prices to Indian Rs. shall be indicated in RFP.

7.2 Price Adjustment. To adjust the remuneration for foreign and/or local inflation, a price adjustment provision may be included if its duration is expected to exceed 18 months. Exceptionally, contracts of shorter duration may include a provision for price adjustment only in exceptional cases when local or foreign inflation is expected to be high and unpredictable.

7.3 Payment Provisions. Payment provisions, including amounts to be paid, schedule of payments, and payment procedures, shall be agreed upon during negotiations. Payments may be made at regular intervals (as under time-based contracts) or for agreed outputs (as under lump sum contracts). Payments for advances if any should normally be backed by advance payment securities.

7.4 Payments shall be made promptly in accordance with the contract provisions.

7.5 Bid and Performance Securities. Bid and performance securities may be dispensed with for consultants’ services. Their enforcement is often subject to judgment calls, they can be easily abused, and they tend to increase the costs to the consulting industry without evident benefits. However, in cases where Employer feels that such securities are required he would not be barred from doing so.

7.6 Conflict of Interest. The consultant shall not receive any remuneration in connection with the assignment except as provided in the contract. The


consultant and its affiliates shall not engage in consulting or other activities that conflict with the interest of the client under the contract and shall be excluded from downstream supply of goods or construction of works or purchase of any asset or provision of any other service related to the assignment other than a continuation of the “Services” under the ongoing contract.

7.8 Professional Liability. The consultant is expected to carry out its assignment with due diligence and in accordance with prevailing standards of the profession. As the consultant’s liability to the Employer will be governed by the applicable law, the contract need not deal with this matter unless the parties wish to limit this liability. If they do so, they should ensure that (a) there must be no such limitation in case of the consultant’s gross negligence or willful misconduct; (b) the consultant’s liability to the Employer may in no case be limited to less than the total payments expected to be made under the consultant’s contract, or the proceeds the consultant is entitled to receive under its insurance, whichever is higher; and (c) any such limitation may deal only with the consultant’s liability toward the client and not with the consultant’s liability toward third parties.

7.9 Staff Substitution. During an assignment, if substitution is necessary (for example, because of ill health or because a staff member proves to be unsuitable), the consultant shall propose other staff of at least the same level of qualifications for approval by the Employer.

7.10 Applicable Law and Settlement of Disputes. The contract shall include provisions dealing with the applicable law, which should be the law applicable in India and the forum for the settlement of disputes.

Chapter – XI : Review procedures and documents to be submitted to Bank

CHAPTER XI

Review5 procedures and documents to be submitted to Bank

__________________________________________________________

A. Review procedures :

Appendix 1 of the Guidelines and Section IV of Schedule 2 annexed to the Project Agreement details the review procedure by the Bank procurement decision. 1. Scheduling of Procurement: (Refer paragraph 1 of Appendix 1 of

Guidelines and Section IV of Schedule 2 of Project Agreement) (a) Prior to the issuance of any invitations to pre qualify proposal for

bidding short list or to bid for contracts, the proposed procurement plan for the project shall be furnished to the Bank for their review and approval in accordance with the provisions of paragraph 1 of Appendix to the Guidelines.

(b) The size and scope of the individual packages will depend on the magnitude, nature and location of the project in the case of Civil works and quantity/ number and nature in case of goods, keeping in view that works and goods are to be procured economically and efficiently consistent with quality.

(c) The Bank shall review the procurement arrangements proposed by the borrower, including contract packaging, applicable procedures, and scheduling of the procurement process, for its conformity with Guidelines and proposed implementation program and disbursement schedule.

(d) Procurement of all goods, works and consultancy service shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank. The Borrower shall promptly inform the Bank of any delay, or other changes in the scheduling of the procurement process, which could significantly affect the timely and successful implementation the project contracts, and agree with the Bank on corrective measures.

2. Prior Review by the Bank :-- (Refer paragraph 2 of Appendix 1 of

Guidelines and Section IV of Schedule 2 of Project Agreement)

• Prior review is required in the following cases: Any contract for goods estimated to cost the equivalent of $ 1

million or more; Any contract of works estimated to cost US$ 200,000 or more. Any works contract procured under Force Account estimated to

cost more than US$ 10,000 US$ 200,000 for Consultancies involving firms. US$ 50,000 equivalent or more for Individual Consultants.

5 Prior & Post review checklist enclosed as Annexure 5.


• Prior review, in respect of procurement of Goods & Works, consists

review by the Bank of the following for issue of no-objection. Invitation for bid (IFB) Draft bidding documents consisting of Instructions to Bidders

including the basis of bid evaluation and contract award; the conditions of contract; specifications for civil works, supply of goods, or installation of equipment, etc., as the case may be, together with a description of the advertising procedures to be followed for the bidding.

Draft minutes of the pre-bid conference along with draft corrigendum if any;

Bid evaluation report in the suggested format and recommendations for award.

First request for extension for bid validity, if it is longer than four weeks (say 28 days) and for all subsequent requests for extension, irrespective of the period;

In case of procurement through NCB, First request for extension for bid validity, if it is longer than eight weeks and for all subsequently request for extension, irrespective of the period.

One conformed copy of the contract along with the Prior Award Review Checklists (as per Annexure - 5) prior to the delivery to the Bank of the first application for withdrawal of funds from the Credit in respect of such contract for clearance and assignment of the World Bank Registration (WBR) number.

Modifications such as granting a material extension of the stipulated time for performance of a contract, including issuing any change order or orders( except in cases of extreme urgency) which would in the aggregate increase the original amount of the contract by more than 15% of the original price. Format for seeking Bank’s clearance is attached. (Annexure - 5)

• Prior Review, in respect of hiring of consultant, would be at every stage as follows for issue of ‘No objection’.:- Terms of Reference; Short-listing; RFP documents containing Letter of Invitation, Information to

Consultants and Conditions of Contracts; Evaluation report of the technical proposals; Report after financial/combined evaluation (with a copy of the

winning proposal the information only); Negotiated draft contract; and Final Contract Following contract signature, furnish to the Bank a copy of the final

contract before submitting the first application for disbursement under the contract.

In the case of contracts subject to prior review, before granting a substantial extension of the stipulated time for performance of a contract, agreeing to any substantial modification of the scope of the services, substituting key staff, waiving the conditions of a contract, or making any changes in the contract that would in


aggregate increase the original amount of the contract by more than 15 percent.

3. Post Review :

With respect to each contract which is not a Prior Review contract and excluding contracts on account of which withdrawals form the loan are to be made on the basis of Statesman of Expenditure, the Borrower shall furnish to be Bank, promptly after its signing and prior delivery to the Bank of the first application for withdrawal of funds for the loan account in respect of such contract, one conformed copy of such contract together with the Post Award Review Checklists (Formats attached as Annexure - 5) duly completed and accompanied with the enclosures stipulated in the checklist, for clearance of the bank and assignment of WBR.

4. Procurement Documentation to be furnished to the Bank : In addition to the documentation required to be submitted in respect of Prior Review and Post Review contracts as described above, the following procurement documentation is required to be forwarded to the Bank by the Project Implementation/Co-Ordination Unit at least on a quarterly basis in the formats as described hereunder. Copies of the Agreements and other related documents of these contracts are not be forwarded to the Bank. These documents shall be retained by the Borrower for subsequent examination by independent auditors and Bank supervision mission : (a) Information in respect of contracts on account of which withdrawals

from the loan are to be made on the basis of Statement of Expenditure in Form-I;

(b) Information on the value of works executed on force Account in Form I-B; (Format attached in Annexure - 5)

(c) Information on the value of procurement made under national shopping in form I-C, (Format attached in Annexure - 5)

Chapter – XII : Incoterms 2000

Chapter – XII

Incoterms 2000

Introduction

The International Chamber of Commerce (ICC) in Paris developed INCOTERMS (INternational COmmercial TERMS), a set of uniform rules for the interpretation of international commercial terms defining the costs, risks, and obligations of buyers and sellers in international transactions. First published in 1936, these rules have been periodically revised to account for changing modes of transport and document delivery. The current version is Incoterms 2000. Use of Incoterms

Incoterms are not implied into contracts for the sale of goods. The contract should expressly refer to the rules of interpretation as defined in the latest revision of Incoterms, for example, Incoterms 2000 and arbitrators will look at: 1) the sales contract, 2) who has possession of the goods, and 3) what payment, if any, has been made.

Organization of Incoterms

Incoterms are grouped into four categories:

1. The "E" term (EXW)-The only term where the seller/exporter makes the goods available at his or her own premises to the buyer/importer.

2. The "F" terms (FCA, FAS and FOB)-Terms where the seller/exporter is responsible to deliver the goods to a carrier named by the buyer.

3. The "C" terms (CFR, CIF, CPT and CIP)-Terms where the seller/exporter/manufacturer is responsible for contracting and paying for carriage of the goods, but not responsible for additional costs or risk of loss or damage to the goods once they have been shipped. C terms evidence "shipment" (as opposed to "arrival") contracts.

4. The "D" terms (DAF, DES, DEQ, DDU and DDP)-Terms where the seller/exporter/manufacturer is responsible for all costs and risks associated with bringing the goods to the place of destination. D terms evidence "arrival" contracts.


The following table sets out these categories.

Incoterms 2000

Group E Departure EXW Ex Works

(...named place)

FCA Free Carrier(...named place)

FAS Free Alongside Ship(...named port of shipment)

Group F MainCarriage Unpaid

FOB Free On Board(...named port of shipment)

CFR Cost and Freight(...named port of destination)

CIF Cost, Insurance and Freight(...named port of destination)

CPT Carriage Paid To(...named port of destination)

Group C MainCarriage Paid

CIP Carriage and Insurance Paid To(...named port of destination)

DAF Delivered at Frontier(a named place)

DES Delivered Ex Ship(...named port of destination)

DEQ Delivered Ex Quay(...named port of destination)

DDU Delivered Duty Unpaid(...named port of destination)

Group D Arrival

DDP Delivered Duty Paid(...named port of destination)

Mode of Transport

Not all Incoterms are appropriate for all modes of transport. Some terms were designed with sea vessels in mind while others were designed to be applicable to all modes. The following table sets out which terms are appropriate for each mode of transport.


Incoterms 2000

EXW Ex Works (...named place)

FCA Free Carrier (...named place)

CPT Carriage Paid To (...named port of destination)

CIP Carriage and Insurance Paid To (...named port of destination)

DAF Delivered at Frontier (...named place)

DDU Delivered Duty Unpaid

All modes of transport including multimodal

DDP Delivered Duty Paid

FAS Free Alongside Ship (...named port of shipment)

FOB Free On Board (...named port of shipment)

CFR Cost and Freight (...named port of destination)

CIF Cost, Insurance and Freight (...named port of destination)

DES Delivered Ex Ship (...named port of destination)

Sea and inland waterway transport

DEQ Delivered Ex Quay (...named port of destination)

Helpful Definitions

Pre-carriage-The initial transport of goods from the seller's premises to the main port of shipment. Usually by truck, rail or on inland waterways.

Main carriage-The primary transport of goods, generally for the longest part of the journey and generally from one country to


another. Usually by sea vessel or by airplane, but can be by truck or rail as well.

On-carriage-Transport from the port of arrival in the country of destination to the buyer's premises. Usually by truck, rail or on inland waterways.

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Notes on Incoterms

1. Underlying Contract—Incoterms were designed to be used within the context of a written contract for the sale of goods. Incoterms, therefore, refer to the contract of sale, rather than the contract of carriage of the goods. Buyers and sellers should specify that their contract be governed by Incoterms 2000.

2. EXW and FCA—If you buy Ex Works or Free Carrier you will need to arrange for the contract of carriage. Also, since the shipper will not receive a bill of lading, using a letter of credit requiring a bill of lading will not be possible.

3. EDI: Electronic Data Interchange—It is increasingly common for sellers to prepare and transmit documents electronically. Incoterms provides for EDI so long as buyers and sellers agree on their use in the sales contract.

4. Insurable Interest—Note that in many cases either the buyer or the seller is not obligated to provide insurance. In a number of cases neither party is obligated to provide insurance. However, both the seller and buyer should be aware that they may have insurable interest in the goods and prudence dictates purchase of insurance coverage.

5. Customs of the Port or Trade—Incoterms are an attempt to standardize trade terms for all nations and all trades. However, different ports and different trades have their own customs and practices. It is best if specific customs and practices are specified in the sales contract.

6. Precise Point of Delivery—In some cases it may not be possible for the buyer to name the precise point of delivery at contract. However, if the buyer does not do so in a timely manner, it may give the seller the option to make delivery within a range of places that is within the terms of the contract. For example, the original terms of sale may state CFR Port of Rotterdam. The Port of Rotterdam is huge and the buyer may find that a particular point within the port is best and should so state in the sales contract and in the trade term. Also, since the buyer becomes liable for the goods once they arrive, he or she may be responsible for unloading, storage and other charges once the goods have been made available at the place

http://www.geo-logistics.com/WTR_Customs/incoterms.asp


named.

7. Export and Import Customs Clearance—It is usually desirable that export customs formalities be handled by the seller and import customs formalities be handled by the buyer. However, some trade terms require that the buyer handle export formalities and others require that the seller handle import formalities. In each case the buyer and seller will have to assume risk from export and import restrictions and prohibitions. In some cases foreign exporters may not be able to obtain import licenses in the country of import. This should be researched before accepting final terms.

8. Added Wording—It is possible, and in many cases desirable, that the seller and buyer agree to additional wording to an Incoterm. For example, if the seller agrees to DDP terms, agreeing to pay for customs formalities and import duties, but not for VAT (Value Added Taxes) the term “DDP VAT Unpaid” may be used.

9. Packing—It is the responsibility of the seller to provide packaging unless the goods shipped are customarily shipped in bulk (usually commodities such as oil or grain). In most situations it is best if the buyer and seller agree in the sales contract on the type and extent of packing required. However, it may not be possible to know beforehand the type or duration of transport. As a result, it is the responsibility of the seller to provide for safe and appropriate packaging, but only to the extent that the buyer has made the circumstances of the transport known to the seller beforehand. If the seller is responsible for packing goods in an ocean or air freight container it is also his responsibility to pack the container properly to withstand shipment.

10. Inspection—These are several issues related to inspections: a) the seller is responsible for costs of inspection to make certain the quantity and quality of the shipment is in conformity with the sales contract, b) pre-shipment inspections as required by the export authority are the responsibility of the party responsible for export formalities, c) import inspections as required by the import authority are the responsibility of the party responsible for import formalities, and d) third-party inspections for independent verification of quality and quantity (if required) are generally the responsibility of the buyer. The buyer may require such an inspection and inspection document as a condition of payment.

11. Passing of Risks and Costs—The general rule is that risks and costs pass from the seller to the buyer once the buyer has delivered the goods to the point and place named in the trade term.


Sl. No.

Incoterm Buyers/Seller obligations Mode of Transport

1 EXW, Ex Works (...named place)

In Ex Works, the seller/exporter/ manufacturer merely makes the goods available to the buyer at the seller's "named place" of business. This trade term places the greatest responsibility on the buyer and minimum obligations on the seller. The seller does not clear the goods for export and does not load the goods onto a truck or other transport vehicle at the named place of departure.

The parties to the transaction, however, may stipulate that the seller be responsible for the costs and risks of loading the goods onto a transport vehicle. Such a stipulation must be made within the contract of sale.

If the buyer cannot handle export formalities the Ex Works term should not be used. In such a case Free Carrier (FCA) is recommended.


2 FCA, Free Carrier (...named place)

In Free Carrier, the seller/exporter/manufacturer clears the goods for export and then delivers them to the carrier specified by the buyer at the named place. but does not bear risk or costs once the goods have been handed over.


3 FAS, Free Alongside Ship (...named port of shipment)

In Free Alongside Ship, the seller/exporter/manufacturer clears the goods for export and then places them alongside the vessel at the "named port of shipment” The parties to the transaction, however, may stipulate in their contract of sale that the buyer will clear the goods for export.

Used only for ocean or inland waterway transport

4 FOB, Free On Board (...named port of shipment)

In Free On Board, the seller/exporter/manufacturer clears the goods for export and is responsible for the costs and risks of delivering the goods past the ship's rail at the named port of shipment.

Used only for ocean or inland waterway transport.

5 CFR,Cost and Freight (...named port

In Cost and Freight, the seller/exporter/manufacturer clears the goods for export and is responsible for d li i th d t th hi '

Used only for ocean or inland waterway t t


of destination)

delivering the goods past the ship's rail at the port of shipment (not destination).

The seller is also responsible for paying for the costs associated with transport of the goods to the named port of destination. However, once the goods pass the ship's rail at the port of shipment, the buyer assumes responsibility for risk of loss or damage as well as any additional transport costs.

transport.

6 CIF,Cost, Insurance and Freight (...named port of destination)

In Cost, Insurance and Freight, the seller/exporter/manufacturer clears the goods for export and is responsible for delivering the goods past the ship's rail at the port of shipment (not destination).

The seller is responsible for paying for the costs associated with transport of the goods to the named port of destination. However, once the goods pass the ship's rail at the port of shipment, the buyer assumes responsibility for risk of loss or damage as well as any additional transport costs.

The seller is also responsible for procuring and paying for marine insurance in the buyer's name for the shipment

seller is responsible for contracting and paying for carriage and insurance of the goods, but not responsible for additional costs or risk of loss or damage to the goods once they have been shipped.

Seller is responsible for Contract and pay costs of carriage by sea or inland waterway and insurance for 110 percent of the value of the contract to the named port of destination. The insurance policy must allow the buyer to make claim directly from the insurer. Deliver the insurance document to the buyer.

Used only for ocean or inland waterway transport.

7 CPT Carriage Paid To (...named port

In Carriage Paid To, the seller/exporter/manufacturer clears the goods for export, delivers them to the

i d i ibl f i

All modes of transport including

lt d l


of destination carrier, and is responsible for paying for carriage to the named port of destination. However, once the seller delivers the goods to the carrier, the buyer becomes responsible for all additional costs.

The seller is not responsible for procuring and paying for insurance cover

multomodal

8 CIP Carriage and Insurance Paid To (...named port of destination)

In Carriage and Insurance Paid To, the seller/exporter clears the goods for export, delivers them to the carrier, and is responsible for paying for carriage and insurance to the named port of destination. However, once the goods are delivered to the carrier, the buyer is responsible for all additional costs.

the seller is responsible for contracting and paying for carriage and insurance of the goods, but not responsible for additional costs or risk of loss or damage to the goods once they have been shipped

All Modes of transport including multimodal

9 DAF Delivered At Frontier (...named place)

In Delivered At Frontier, the seller/exporter/manufacturer clears the goods for export and is responsible for making them available to the buyer at the named point and place at the frontier, not unloaded, and not cleared for import.

In the DAF term, naming the precise point, place, and time of availability at the frontier is very important as the buyer must make arrangements to unload and secure the goods in a timely manner.

Frontier can mean any frontier including the frontier of export. The DAF term is valid for any mode of shipment, so long as the final shipment to the named place at the frontier is by land.

The seller is not responsible for procuring and paying for insurance cover.

Used for all modes of transport so long as the final shipment to the named place at the frontier is by land

10 DES, Delivered Ex Ship

In Delivered Ex Ship, the seller/ exporter/manufacturer clears the

Used only for ocean or inland


(...named port of destination)

goods for export and is responsible for making them available to the buyer on board the ship at the named port of destination, not cleared for import.

The seller is thus responsible for all costs of getting the goods to the named port of destination prior to unloading.

The DES term is used only for shipments of goods by ocean or inland waterway or by multimodal transport where the final delivery is made on a vessel at the named port of destination.

waterways transport

11 Delivered Ex Quay (...named port of destination)

In Delivered Ex Quay, the seller/exporter/manufacturer clears the goods for export and is responsible for making them available to the buyer on the quay (warf) at the named port of destination, not cleared for import. The buyer, therefore, assumes all responsibilities for import clearance, duties, and other costs upon import as well as transport to the final destination. This is new for Incoterms 2000.

The DES term is used only for shipments of goods arriving at the port of destination by ocean or by inland waterway.

Used only for ocean or inland waterways transport

12 DDU Delivered Duty Unpaid (...named place of destination)

In Delivered Duty Unpaid, the seller/exporter/manufacturer clears the goods for export and is responsible for making them available to the buyer at the named place of destination, not cleared for import.

The seller, therefore, assumes all responsibilities for delivering the goods to the named place of destination, but the buyer assumes all responsibility for import clearance, duties, administrative costs, and any other costs upon import as well as transport to the final destination.

The DDU term can be used for any mode of transport. However, if the seller and buyer desire that delivery should take place on board a sea vessel or on a quay (wharf), the DES


or DEQ terms are recommended.

13 DDP Delivered Duty Paid (...named place of destination)

In Delivered Duty Paid, the seller/exporter/manufacturer clears the goods for export and is responsible for making them available to the buyer at the named place of destination, cleared for import, but not unloaded from the transport vehicle.

The seller, therefore, assumes all responsibilities for delivering the goods to the named place of destination, including all responsibility for import clearance, duties, and other costs payable upon import.

The DDP term can be used for any mode of transport.

All forms of payment are used in DDP transactions.

The DDP term is used when the named place of destination (point of delivery) is other than the seaport or airport.

Chapter – XIII : Provisions of exemption from Customs and Excise tariff relevant to World Bank funded Project

CHAPTER – XIII

Provisions of exemption from Customs and Excise tariff relevant to World Bank funded 6

The Custom & Excise tariff provides for exemption on Goods procured for the World Bank funded project. The relevant notifications are attached for ready reference as Attachment XIII/1. For availing such exemptions, the latest provisions may be referred to the Custom Tariff of India and Central Excise Tariff.

6 Exemption from Customs and Excise tariff enclosed as Annexure- 6.

Annexure 1 to Chapter – V

Annexure - 1

Annexure –1 to Chapter – V

Table of Contents

How to Use These Forms .................................................................................99

Section I. Bid Evaluation Standard Forms ...................................................100 Standard Cover ......................................................................................100 Letter of Transmittal ...............................................................................101 Table 1. Identification ............................................................................102 Table 2. Bidding Process.......................................................................103 Table 3. Bid Submission and Opening ..................................................104 Table 4. Bid Prices (as Read Out).........................................................105 Table 5. Preliminary Examination..........................................................106 Table 6. Corrections and Unconditional Discounts................................107 Table 7. Exchange Rates ......................................................................108 Table 8. Currency Conversion (Multiple Currencies).............................109 Table 9. Currency Conversion (Single Currency) ..................................110 Table 10. Additions, Adjustments, and Priced Deviations .....................111 Table 11. Domestic Preference for Goods ............................................112 Table 12. Domestic Preference for Works.............................................113 Table 13. Proposed Contract Award .....................................................114

Annex I. Evaluation Guide .............................................................................115

Annex II. Bid Opening Checklist ...................................................................127

Annex III. Example of Preliminary Examination ..........................................128

Annex IV. Bid Evaluation Summary Checklist.............................................129

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How to Use These Forms 1. The evaluation forms and guide contained in this document provide step-

by-step procedures for the evaluation of bids solicited through ICB. In all instances, the bidding and evaluation procedures described in the Instructions to Bidders (ITB) of the actual bidding document used should be followed.

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Section I. Bid Evaluation Standard Forms

D. Standard Cover

Bid Evaluation Report and

Recommendation for Award of Contract

Name of Project: National Agricultural Innovation Project IBRD Loan or IDA Credit No.: 4161-IN/4162-IN Contract Name: Identification Number: Date of Submission:

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E. Letter of Transmittal If the contract is subject to prior review, the bid evaluation report should be attached with a Letter of Transmittal from the Borrower ministry, department, or agency responsible for communications with the Bank. The letter should highlight conclusions and offer any additional information that would help to expedite review by the Bank. In addition, any unresolved or potentially contentious issues should be highlighted. The letter should be sent to the Chief of the Sector Operations Division or the Country Operations Division responsible for the loan, unless another Bank official has been designated by the Bank for such correspondence. Note: When subject to post review, the evaluation report and the signed contract

should be submitted to the Bank before sending (or with) the pertinent Application for Withdrawal, Special Commitment, replenishment of the Special Account, or, in case of a Statement of Expenditures, retained for storage for eventual retrieval. (See Guidelines, Appendix 1, and the Loan Agreement.)

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Table 1. Identification 1.1 Name of Borrower 1.2 Loan/Credit number 1.3 Date of effectiveness 1.4 Closing date

(a) original (b) revised

1.5 Name of project 1.6 Purchaser (or Employer)

(a) name (b) address

1.7 Contract number (identification) 1.8 Contract description 1.9 Cost estimate1 1.10 Method of procurement (check

one) ICB LIB Other

1.11 Prior review required2 Yes No 1.12 Domestic preference allowed Yes No 1.13 Fixed price contract Yes No 1.14 Cofinancing, if any:

(a) agency name (b) percent financed by agency

1 Cite source and date if other than Staff Appraisal Report. 2 If response is “no,” items 2.2(b), 2.4(b), and 2.6(b) in Table 2 may be left blank, unless the Bank’s prior review was specifically requested.

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Table 2. Bidding Process 2.1 General Procurement Notice

(a) first issue date (b) latest update

2.2 Prequalification, if required (a) number of firms prequalified (b) date of Bank’s no-objection

2.3 Specific procurement notice (a) name of national newspaper(b) issue date (c) name of international

publication (d) issue date (e) number of firms notified

2.4 Standard Bidding Document (a) title, publication date (b) date of Bank’s no-objection (c) date of issue to bidders

2.5 Number of firms issued documents

2.6 Amendments to documents, if any (a) list all issue dates (b) date(s) of Bank’s no-

objection

1. 2. 3. 1. 2. 3.

2.7 Date of pre-bid conference, if any 2.8 Date minutes of conference sent

to bidders and Bank

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Table 3. Bid Submission and Opening 3.1 Bid submission deadline (a) original date, time (b) extensions, if any

3.2 Bid opening date, time 3.3 Record of bid opening, date sent

to Bank

3.4 Number of bids submitted 3.5 Bid validity period (days or

weeks) (a) originally specified (b) extensions, if any (c) date of Bank’s no-objection, if

required1

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Table 4. Bid Prices (as Read Out)

Bidder Identification Read-out Bid Price(s)1 Modifications orName City/State or Province Country Currency(ies

) Amount(s) or

% Comments2

(a) (b) (c) (d) (e) (f)

etc.

1 For single currency option (see Annex I, para. 6(d)(ii)), secondary currencies are expressed in column e as a percentage of the total bid price. 2 Describe any modifications to the read-out bid, such as discounts offered, withdrawals, and alternative bids. Note

also the absence of any required bid security or other critical items. Refer also to Annex I, para. 2 herein.

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Table 5. Preliminary Examination

Bidder Verification Eligibility Bid Security Completeness of Bid

Substantial Responsiveness

Acceptance for Detailed

Examination (a) (b) (c) (d) (e) (f) (g)

etc.

Note: For explanations of headings, see Annex I, para. 5 herein. Additional columns may be needed, such as for responsiveness to technical conditions. See example in Annex IV.

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Table 6. Corrections and Unconditional Discounts

Bidder Read-out Bid Price(s) Corrections Corrected Bid

Price(s) Unconditional

Discounts2 Corrected/Discounted

Bid Price(s) Currency(ies

) Amount(s) Computationa

l Errors1 Provisiona

l Sums Percen

t Amount(s)

(a) (b) (c) (d) (e) (f) = (c) + (d) -(e)

(g) (h) (i) = (f) – (h)

etc.

Note: Only bids accepted for preliminary examination (Table 5, column g) should be included in this and subsequent tables. Columns a, b, and c are from Table 4 (columns a, d, and e, respectively). 1 Corrections in column d may be positive or negative. 2 If the discount is offered as a percent, column h is normally the product of the amounts in columns f and g. Refer to para.

6(c). If the discount is provided as an amount, it is entered directly in column h. A price increase is a negative discount.

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Table 7. Exchange Rates Currency Used for Bid Evaluation: Effective Date of Exchange Rate: Authority or Publication Specified for Exchange Rate: Note: Attach copy of exchange rates provided by specified authority or publication.

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Table 8. Currency Conversion (Multiple Currencies) Specify Evaluation Currency:

Bidder Currency(ies) of

Bid Corrected/Discounte

d Applicable Evaluation Currency

Bid Price(s) ExchangeRate(s)

Bid Price(s) 1

Total Bid Price2

(a) (b) (c) (d) (e) = (c) x (d) (f)

etc.

Note: This table is to be used for SBDG and Option B of SBDLW. Columns a, b and c are from Table 6, columns a, b and i. 1 Column d is from Table 7. 2 Column f is the sum of bid prices in column e for each bidder.

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Table 9. Currency Conversion (Single Currency)

Specify Evaluation Currency: Bidder Corrected/Discount

ed Payment Composition1 Exchange Amounts

in Exchange Evaluation

Currency Bid Price

(in specified currency)

Currency of

Payment

Percent of Total

Bid

Amount in Evaluation Currency

Rate Used by Bidder1

Currency of

Payment

Rate for Evaluation

2

Bid Prices Total3

(a) (b) (c) (d) (e) = (b) x (d)

(f) (g) = (e) x (f)

(h) (i) = (g) x (h)

(j)

etc.

Note: This table is used for SBDSW and Option A of SBDLW. Columns a and b are from Table 6, columns a and i. 1 Columns c, d, and f are provided in the SBDLW Appendix to Bid and in the (Form of) Contractor’s Bid in the SBDSW. 2 Column h is from Table 7. 3 Column j is the sum of bid prices in column i for each bidder.

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Table 10. Additions, Adjustments, and Priced Deviations Specify Evaluation Currency:

Bidder Corrected/Discounted

Bid Price Additions

1 2 Adjustments2 Priced Deviations2 Total Price

(a) (b) (c) (d) (e) (f) = (b) + (c) + (d) + (e)

etc.

1 Column b is from either Table 8, column f or Table 9, column j. 2 Each insertion in columns c, d, or e should be footnoted and explained in adequate detail, accompanied by calculations. Refer to

paras. 6(e), 6(f), and 6(g) respectively of Annex I

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Table 11. Domestic Preference for Goods Specify Evaluation Currency:

Bidder Domestic

Preference Group1

Total Price2

Exclusions for

Preference3

Revised Total

Domestic Preferenc

e (%)4

Preference Price5

Total Comparison

Price (a) (b) (c) (d) (e) = (c) – (d) (f) (g) (h) = (c) + (g)

etc.

1 Column b refers to Groups A, B, or C, as indicated by bidder, subject to verification by Borrower. 2 Column c is from Table 10, column f. If the lowest total price is from a Group A or Group B bidder, it is the lowest evaluated

bidder, and the remainder of the table need not be filled out. Columns d through h need to be filled out only for Group C bids. 3 Column d is the sum of costs in columns d and e from Table 10 plus other costs incurred within the Borrower’s country.

Footnotes should be provided to explain the significant components of column d. 4 Column g will be 15 percent of CIP Bid price. 5 Column h for Group A bidders is zero. Group B bids at this stage should no longer be compared. For Group C bidders, column h

is the product of columns e and g.

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Table 12. Domestic Preference for Works

Specify Evaluation Currency:

Bidder DomesticPreference

Group1

Total Price2

Exclusions for Preference3

Revised Total Preference4

Total Comparison Price

(a) (b) (c) (d) (e) = (c) – (d) (f) (g) = (c) + (f)

etc.

1 Column b refers to Group A (eligible domestic bidders) or Group B (others) as indicated by bidder, subject to verification by Borrower.

2 Column c is from Table 10, column f. If the lowest priced bid is from a Group A bidder, it is the lowest evaluated bidder, and the remainder of the table need not be filled out.

3 Column d is the sum of costs in columns d and e from Table 10. An attachment should be provided to explain the significant components of column d. Columns d and e may be left blank for Group A bidders.

4 Column f for Group A bidders is zero. For Group B bidders, column f is 7.5 percent of column e.

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Table 13. Proposed Contract Award 1. Lowest evaluated responsive

bidder (proposed for contract award). (a) name (b) address

2. If bid submitted by agent, list actual supplier. (a) name (b) address

3. If bid from joint venture, list all partners, nationalities, and estimated shares of contract.

4. Principle country(ies) of origin of goods/materials.

5. Estimated date (month, year) of contract signing.

6. Estimated delivery to project site/completion period.

Currency(ies) Amount(s) or % 7. Bid Price(s) (Read-out)1 8. Corrections for Errors2 9. Discounts3 10. Other Adjustments4 11. Proposed Award5 12. Disbursement Category6

1 From Table 6, columns b and c. 2 From Table 6, column d. 3 From Table 6, column h. Include any cross-discounts. See Annex I, para. 7(b). 4 All adjustments should be explained in detail. 5 Sum of the prices in Items 7–10. For single currency bids, express secondary

currency amounts as percentages. 6 From the Loan Agreement.

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Annex I. Evaluation Guide

1. Identification, Bidding Process, and Bid Submission

Tables 1, 2, and 3 provide for the filing of basic information on the procurement process. This information is necessary to monitor compliance with the Loan Agreement, and particularly paras. 2.7 and 2.8 on advertising and notification of the Guidelines.

2. Bid Opening7 All bidders or their representatives are invited to attend the bid opening, where bids are read out and recorded, along with a list of attendees. The record is prepared for prompt transmittal to the Bank. Copies should be sent to all bidders. Bid opening procedures are described in the ITB. To assist in carrying out the opening and preparing of the record, a checklist is provided in Annex II. The checklist should preferably be filled out for each bid during the actual reading out at the meeting. The reading should be from the original version of each bid, and the actual amounts and other key details read out should be circled for later verification. If bids are expressed in a single currency, other currency needs expressed as a percentage should be recorded. It may also be desirable to read out exchange rates used by bidders (see para. 6(d)(ii) in this Annex). Any envelopes containing substitutions, modifications, or withdrawals must be subject to the same level of scrutiny, including the reading out of critical details, such as price changes. Failure to read out such information and include it in the written record may result in denial of its inclusion in bid evaluation. If a bid has been withdrawn by cable, it should nonetheless be read out and should not be returned to the bidder until the authenticity of the withdrawal notice has been confirmed.

As stated in the ITBs, no bids should be rejected at the bid opening except those received after the deadline for receipt of bids. Such bids shall be returned unopened to the bidder. A summary of the read-out bid prices should be provided in Table 4.

3. Bid Validity The duration of the validity of each bid should be the one specified in the ITB and should be confirmed in the signed (form of) bid. If exceptional circumstances occur in which award cannot be made within the validity period, extensions in writing should be requested of bidders, in accordance with the ITB (also Guidelines, para. 2.56). Extensions to the validity of bid security

8

7 See Guidelines, para. 2.45. The record should be sent promptly to the Bank after bid opening and

therefore does not usually accompany the bid evaluation report.

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should also be requested of bidders, if necessary.8 Note that for fixed price contracts subject to prior review, a no-objection by the Bank is necessary for extensions longer than four (4) weeks and for any subsequent extensions (Guidelines, Appendix 1, para. 2(d)).9 Note any extensions in Table 3.

4. Principles of Evaluation

After the public opening of bids, information relating to the examination, clarification, and evaluation of bids shall not be disclosed to bidders or other persons not officially concerned with this process until the successful bidder is notified of the award of contract (Guidelines, para. 2.46). The Bank recommends appointment by the Borrower of an evaluation committee, consisting of a minimum of three qualified members who should work in a secure office where all bidding documents can be kept. There may be a considerable advantage if the same members participated in the preparation of the bidding documents. On occasion, the Borrower may request clarifications of bidders concerning ambiguities or inconsistencies in the bid. As required in the ITBs, such requests shall be in writing, and no change in the price or scope of the originally offered goods, works, or services shall be sought or accepted, except for the correction of arithmetic error. The responses from bidders shall also be in writing. (Refer also to Guidelines, Appendix 4, para. 10.) No circumstances shall justify meetings or conversations between the Borrower (or its consultants) and bidders during the bid evaluation process.10

Bidders frequently attempt to contact the Borrower during bid evaluation, directly or indirectly, to query progress of evaluation, to offer unsolicited clarifications, or to provide criticisms of their competition. Receipt of such information should be acknowledged as to receipt only.11 Borrowers must evaluate bids on the basis of the information provided in the respective bids. However, additional information provided may be useful in improving the accuracy, speed, or fairness of the evaluation. Nonetheless, no changes in the bid price or substance are allowed.

5. Preliminary

Examination of Bids

The evaluation process should begin immediately after bid opening. The purpose of preliminary examination is to identify and reject bids that are incomplete, invalid, or substantially non-

8 Particular care must be taken in cases where the deadline for submission (or for opening) of bids can be

extended, as the duration of bid security is frequently provided in terms of an expiration date. In contrast, bid validity is specified in terms of an interval after the deadline for receipt or the date of bid opening.

9 Revised to eight (8) weeks, in the first (January 1996) reprint of the 1995 edition of Guidelines. 10 See Guidelines, para. 2.6 for an explanation of two-stage bidding. If used, evaluation of the second-stage

bidding follows the procedures in this Annex I. Evaluation Guide. 11 On occasion, bidders approach the Bank with information. Bank policy is to acknowledge the

correspondence and pass it on to the Borrower for its consideration (Guidelines, Appendix 4, paras. 11–14).

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responsive to the bidding documents and therefore are not to be considered further. The following checks should be applied: (a) Verification: Attention should be directed toward

deficiencies that, if accepted, would provide unfair advantages to the bidder. Sound judgment must be used: for example, simple omissions or mistakes arguably occasioned by human error should not be grounds for rejection of the bid. Rarely is a bid perfect in all respects. However, the validity of the bid itself, for example, its signatures, must not be in question. If the bidder is a jointventure, the joint venture agreement must be submitted; if the bidder is an agent, an authorization from the supplier or manufacturer must be provided in addition to any documentation required of the supplier or manufacturer itself. All copies of the bid should be compared with the original and corrected accordingly, if necessary. Thereafter, the original should be kept in a safe location, and only copies should be used in evaluation.

(b) Eligibility: The eligibility of the bidder must be checked as per the provision of the bidding document.

(c) Bid Security: The bidding document may require submission of a bid security. If so, the bid security must conform to the requirements of the ITB, and it must accompany the bid. If the bid security is issued as a bank guarantee, it must be consistent with the wording of the bid security form provided in the bidding document. Submission of a copy of the security or submission of a counter guarantee naming the Borrower’s bank instead of the Borrower is unacceptable. Furthermore, securities for an amount smaller or for a period shorter than the one specified in the ITB are not acceptable. The security for a bid submitted by a joint venture should be in the name of all of the partners of the joint venture.

(d) Completeness of Bid: Unless the bidding documents have

specifically allowed partial bids—permitting bidders to quote for only select items or for only partial quantities of a particular item—bids not offering all of the required items should ordinarily be considered non-responsive. However, under works contracts, missing prices for occasional work items are considered to be included in prices for closely related items elsewhere. If any erasures, interlineations, additions, or other changes have been made, they should be initialled by the bidder. They may be acceptable if they are corrective, editorial, or explanatory. If they are not, they should be treated as deviations and should be analyzed as per para. 5(e) below. Missing pages in the original copy of

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the bid may be cause for rejection of the bid, as may contradictions in model numbers or other designations of critical supply items.

(e) Substantial Responsiveness: Major deviations to the commercial requirements and technical specifications are a basis for the rejection of bids. As a general rule, major deviations are those that, if accepted, would not fulfil the purposes for which the bid is requested, or would prevent a fair comparison with bids that are properly compliant with the bidding documents. Examples of major deviations include:

(i) Stipulating price adjustment when fixed price bids

were called for (ii) Failing to respond to specifications by offering

instead a different design or product that does not offer substantial equivalence in critical performance parameters or in other requirements

(iii) Phasing of contract start-up, delivery, installation, or

construction not conforming to required critical dates or progress markers

(iv) Subcontracting in a substantially different amount or

manner than that permitted (v) Refusing to bear important responsibilities and

liabilities allocated in the bidding documents, such as performance guarantees and insurance coverage

(vi) Taking exception to critical provisions such as

applicable law, taxes and duties, and dispute resolution procedures

(vii) Those deviations that are specified in the ITB as

requiring rejection of the bid (such as, in the case of works, participating in the submission of another’s bid other than as a subcontractor).

Bids that offer deviations may be considered substantially responsive—at least as to the issue of fairness—if the deviations can be assigned a monetary value that would be added as a penalty during the detailed evaluation process and if such deviations would be acceptable in the eventual contract.

The results of preliminary examination should be

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presented in Table 5. If the bid fails preliminary acceptance, the reasons must be clearly explained in footnotes or in an attachment, as necessary. An example is shown in Annex IV. Borrowers may find it useful to include additional tables for itemization of responsiveness to a list of technical or commercial specifications. These should be attached to Table 5.

6. Detailed

Examination of Bids

Only those bids surviving preliminary examination need to be examined in this phase. (a) Corrections for Errors: The methodology for correction of

computational errors is described in the ITB. The read-out bid prices and their corrections should be noted in Table 6, column d. The corrections are considered binding on the bidder. Unusual or large corrections that could affect the comparative ranking of bids should be explained in footnotes.

(b) Corrections for Provisional Sums: Bids may contain

provisional sums set by the Borrower for contingencies or for nominated subcontractors, etc. As these sums are the same for all bids, they should be subtracted from the read-out prices in Table 6, column e to allow for a proper comparison of bids in subsequent steps. However, those provisional sums set aside for Daywork,12 where priced competitively, should not be included in the deductions.

(c) Modifications and Discounts: In accordance with the ITB,

bidders are allowed to submit, prior to bid opening, modifications to their original bid. The impact of modifications should be fully reflected in the examination and evaluation of the bids. These modifications may include either increases or discounts to the bid amounts that reflect last-minute business decisions. Accordingly, the original bid prices should be modified at this point in the evaluation. Discounts offered in accordance with the ITB that are conditional on the simultaneous award of other contracts or lots of the contract package (cross-discounts) shall not be incorporated until the completion of all other evaluation steps. The effect of unconditional discounts (or alternatively, increases) should be shown as in Table 6 (columns g and h). Any discount expressed in percent must be applied to the appropriate base specified in the bid (i.e., check to see if it applies to any provisional sums).

(d) Evaluation Currency: The remaining bids as corrected for

computational errors and as adjusted for discounts should

12 Refers to unforeseen work. For details, see SBDLW, Section B, or SBDSW, Section 7.

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be converted to a common evaluation currency, as described in the ITB. The exchange rates to be used in the calculations are to be listed in Table 7. If multiple exchange rates exist for a particular currency (for commercial, government transactions, etc.), indicate which applies, with reasons for the choice. Where exchange rates for a particular currency are not available from the specified authority or publication, identify the secondary source, as well as any necessary conversion calculations. There are two different currency options for bidding/payment, each requiring a different conversion methodology:

(i) The SBDG and Option B of SBDLW use the multiple

currency option, in which the bid price is expressed in a number of currencies. For this procurement, use Table 8.

(ii) The SBDSW and Option A of SBDLW use the single

currency option, in which the bid price is expressed entirely in a specific currency, usually in the Borrower’s currency, with other foreign currency requirements stated as percentages of the bid price, together with the exchange rates used by the bidder to determine the percentages. For SBDLW single currency bids, sections of the Works may require payment in different currencies and proportions. In such instances, the impact of any corrections found will require a lengthier analysis for each bid, based on the submitted Appendix to Bid. Table 9 is to be used for these calculations.

(e) Additions: Omissions to the bid should be compensated for

by adding the estimated costs for remedying the deficiency. Where items missing in some bids are present in others, an average of quoted prices could be used to compare competitors’ bids. Alternatively, external sources, such as published price lists, freight tariff schedules, etc., may be appropriate. The cost determined should be expressed in the evaluation currency and shown in Table 10, column c.

(f) Adjustments: The ITB specifies which, if any, performance

or service factors will be taken into account in the bid evaluation (see, for example, para. 26 of SBDG). The methodology used in evaluation of these factors should be precisely described in the bid evaluation report and should be fully consistent with the ITB provisions. Bonuses or additional credits that reduce the evaluated bid price will not be given in the bid evaluation for features that exceed the

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requirements stated in the bidding documents, unless specifically provided for in the ITB.13 The value of adjustments will be expressed in terms of cost, for all works and most goods contracts, and should be shown in Table 10, columned and expressed in the evaluation currency.14

(g) Priced Deviations: As discussed under para. 5(e), bids with minor deviations may be considered substantially responsive if their further consideration assigns a monetary cost or penalty to the bid for the purpose of bid comparison:

(i) Requests for deviations that are expressed by the

bidder in vague terms, such as “we would like an increase in the amount of mobilization advance” or “we wish to discuss changes in the completion schedule” should ordinarily be ignored in bid evaluation. However, a categorical statement by the bidders taking exception to a requirement in the bidding documents should be treated as a deviation.

(ii) If a bid requires a faster payment stream than

specified in the bidding documents, the penalty is based on the prospective benefit to the bidder. This situation assumes use of a discounted cash flow using the prevailing commercial interest rates for the currencies of the bid, unless the ITB foresees the eventuality and specifies a rate.

(iii) If a bid provides for a delivery or completion that is beyond

the date specified in the bidding documents but that is nonetheless technically acceptable to the Borrower, the time advantage given should be assessed a penalty specified in the ITB or, if one is not provided, based on the rate of liquidated damages specified in the bidding documents.

The deviations should be priced in the evaluation currency in Table 10, column e.

7. Determination

of Award In the comparison of bids for works and for most goods, the corrected and discounted bid prices, together with adjustments for omissions, deviations, and specified evaluation factors, have been noted in Table 10. The bidder with the lowest total is the lowest evaluated cost bidder at this stage, subject to: • Application of domestic preference, if any is allowed;

13 Similarly, a bid offering a choice of different product models is evaluated on the basis of the lowest price

offered by the bidder from among the models meeting the requirements of the bidding document. 14 The Bank on occasion may allow the use of the Merit Point System for the purchase of goods. If so, the

adjustments will be expressed in points. Refer to ITB (para. 26.5) of the SBDG and to the Bank directly for details on bid evaluation using the point system.

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• Application of any discounts, contingent on the simultaneous award of multiple contracts or lots; and

• Post-qualification evaluation, or, if prequalification has occurred, confirmation of prequalification information.

(a) Domestic Preference:

Preference for Domestically Manufactured Goods 3. Bidding documents shall clearly indicate preference

to be granted to domestic manufactured goods and the information required to establish the eligibility of a bid for such preference. The nationality of the manufacturer or Supplier is not a condition for such eligibility. The methods and stages set forth hereunder shall be followed in the evaluation and comparison of bids.

4. For comparison, responsive bids shall be classified

in one of the following three groups:

(a) Group A : Bids exclusively offering goods manufactured in the country of the Borrower if the bidder establishes to the satisfaction of the Borrower and the Bank that (i) labor, raw material, and components from within the country of the Borrower will account for 30 percent or more of the EXW price of the product offered, and (ii) the production facility in which those goods will be manufactured or assembled has been engaged in manufacturing/assembling such goods at least since the time of bid submission.

(b) Group B : all other bids offering goods manufactured in the country of the Borrower.

(c) Group C : bids offering goods manufactured abroad that have been already imported or that will be directly imported.

5. The price quoted for goods in bids of Groups A and

B shall include all duties and taxes paid or payable on the basic materials or components purchased in the domestic market or imported, but shall exclude the sales and similar taxes on the finished product. The price quoted for goods in bids of Group C shall be on CIP (place of destination), which is exclusive of customs duties and other import taxes already paid or to be paid.

6. In the first step, all evaluated bids in each group

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shall be compared to determine the lowest bid in each group. Such lowest evaluated bids shall be compared with each other and if, as a result of this comparison, a bid from Group A or Group B is the lowest, it shall be selected for the award.

7. If as a result of the comparison under paragraph four

above, the lowest evaluated bid is a bid from Group C, the lowest evaluated bid from Group C shall be further compared with the lowest evaluated bid from Group A after adding to the evaluated price of goods offered in the bid from Group C, for the purpose of this further comparison only, an amount equal to 15 percent of the CIP bid price. The lowest evaluated bid determined from this last comparison shall be selected.

(b) Cross-Discounts: These are conditional discounts offered in

the event that more than one contract or lot will be awarded to the same bidder. Bid evaluation in such cases can be quite complicated, particularly for goods contracts where domestic preference may apply. The sizes of cross-discounts offered by each bidder may vary with the potential number of contracts awarded. The ITB may also limit the number or total value of awards to a bidder on the basis of its financial and technical capacity.15 Thus, a bidder offering the lowest evaluated bid on a particular contract may be denied award because of such a restriction. The Borrower shall select the optimum combination of awards on the basis of least overall cost of the total contract package, consistent with the qualification criteria. (Refer to Guidelines, para. 2.4.) Presentations of the calculations should be made on an attachment to the report, which should include the bid evaluation(s) for the other contracts, if they have been evaluated separately.

(c) Qualification: If prequalification was conducted, the bidder whose bid is the lowest evaluated should receive the award, unless the bidder’s qualifications have since materially deteriorated or the bidder has since received additional work that over stresses its capacity. The Borrower should satisfy itself fully on both accounts.

Where prequalification has not occurred, the prospective awardee should be subjected to post-qualification, the procedures for which are described in the ITB.16 If the lowest evaluated bidder fails post-qualification, its bid

15 This restriction may originate with prequalification. 16 The Annex in the Bank’s Standard Prequalification Document is useful for postqualification evaluations.

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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. (Refer to Guidelines, para. 2.57.) The rejection of a bid for reasons of qualification requires substantial justification, which should be clearly documented in attachments to the report. A history of poor performance may be considered a substantial justification.

(d) Alternative Bids: The ITB may request or allow the Borrower to accept alternative bids under the stipulation that only the alternative submitted by the lowest evaluated bidder and conforming to the bidding documents will be considered.

(i) For works, the ITBs may allow alternative technical solutions and/or alternative times for completion.

(ii) For goods, the ITB may allow for submission of an

alternative payment schedule. The same ITB (paras. 11.2(b)(ii) or (iii)) may also require bidders to submit, in addition to any CIF or CIP bids, similar bids less transport or insurance, such as FCA or CFR.17 The Borrower, if it is willing to accept the alternative bid offered by the lowest evaluated bidder, should provide justification for doing so.18

Calculations for the evaluation of alternatives should beprovided in an attachment to the report.

(e) Proposed Award: The amount of the proposed award shall

be the bid price as submitted by the winning bidder and adjusted as described in the ITB for corrections, any discounts (including cross-discounts), and acceptance by the Borrower of alternative offers from the lowest evaluated bidder. Adjustments to the final price and scope of the contract to correct for acceptable omissions and quantity variations in the bid may be negotiated with the lowest evaluated bidder.19 Prior concurrence of the Bank with the proposed award is required before such negotiations may be entered into (Guidelines, para. 2.62). Table 13 should be filled out to establish the actual amount of the contract award.

17 INCOTERMS 1990. 18 If the contract is signed without insurance coverage, the Borrower must provide the Bank with evidence

of alternative insurance payable in a freely usable currency to replace or repair such goods (Guidelines, para. 2.27, and General Conditions of the Loan or Credit Agreement).

19 Note that SBDG—ITB para. 31 allows the Purchaser (Borrower) the right to unilaterally vary quantities within set limits at the time of award.

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If (a) none of the bids are found to be responsive, (b) bids are unreasonably high in price compared with earlier estimates, or (c) none of the bidders are qualified, the Borrower may consider rejection of all bids (prior Bank concurrence is required) (Guidelines, paras. 2.59–2.62).

(f) Report Submission

(i) Prior Review: In accordance with the loan agreement, the Borrower must submit the completed bid evaluation report containing the required summary to the Bank as soon as possible after bid opening, preferably no later than three (3) weeks prior to the expiration of the bid validity period. The report should include the appropriate items listed in Annex V.

(ii) Post Review: For contracts not subject to prior

review, the Borrower may award the contract upon completion of bid evaluation (Guidelines, Appendix 1, para. 4). As stated therein, subsequent submission of the bid evaluation report to the Bank is required prior to delivery of a withdrawal application, or if a Special Account is used, prior to its first replenishment application. These provisions do not apply if Statements of Expenditures are used, whereby the evaluation and other documents are kept by the Borrower, subject to future review by the Bank.

(g) Review by the Bank: Upon receipt by the Bank, all contracts subject to prior review will be reviewed. Borrowers may be requested to provide additional information and justification for the recommendations. The Bank will not contact bidders. However, it may request the Borrower to do so for necessary clarifications. When the Bank is satisfied with the evaluation of bids and recommendations of award, a “no-objection” written communication will be issued by the Bank official designated for such correspondence.

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For contracts subject to post review, any doubts about the justification for award should be raised with the Bank prior to award signing. Borrowers should ensure that all correspondence received from bidders concerning evaluation has been taken into account. The Bank does not finance contracts that have not been procured in accordance with the loan agreement.20

(h) Award of Contract: Bid securities of unsuccessful bidders

should be returned promptly after award has been made. However, if contract effectiveness is contingent on the receipt of a performance security or other condition, the Borrower may consider seeking an appropriate extension of time for the bid validity and the accompanying bid security of the next two lowest bidders.

As mentioned in the Preface, upon confirmation by the Borrower that the award has been made, the Bank is authorized to publish a description of the contract, the name and nationality of the contract awardee, and the contract price. Any further information on the bids or on their evaluation, including the bid evaluation report, is held in confidence by the Bank. Unsuccessful bidders are allowed under the Guidelines (Appendix 4, para. 15) to seek a debriefing with the Borrower, and, additionally, with the Bank. In anticipation of this and/or any post reviews by the Bank, the Borrower should ensure that bidding documents and evaluations are securely stored.

20 If funds from the loan have already been disbursed, the Bank may seek reimbursement. Refer to

Guidelines para. 1.13 and Appendix 4, para. 3.

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Annex II. Bid Opening Checklist (To be filled out for each bid as it is read out)

Contract Reference: Bid Opening Date: Time: Name of Bidder: (a) Is outer envelope of bid sealed? (b) Is bid form completed and signed? (c) Expiration date of bid: (d) Is documentary authority for signing enclosed? (e) Amount of bid security (if required): (state currency) (f) Describe any “Substitution,” “Withdrawal,” or “Modification” submitted (g) Describe any alternative bid made: (h) Describe any discounts or modifications offered: (i) Additional comments:21 (j) Name of bidder or representative present: (k) Total bid price: (list currencies and amounts or percentages)22 Signature of responsible official: Date:

21 Read out and record model numbers of equipment. 22 If bid is for a package of contracts, the price for each lot or item should be read out.

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Annex III. Preliminary Examination

Bidder Verification Eligibility Bid Security Completene

ss of Bid Substantial

Responsiveness

Acceptance for Detailed

Examination Bidder A Yes Yes1 Yes Yes Yes YesBidder B No2 Yes Yes Yes Yes3 NoBidder C Yes4 Yes Yes Yes Yes YesBidder D Yes Yes No5 No6 Yes NoBidder E Yes No7 No8 Yes Yes NoBidder F Yes Yes Yes Yes Yes Yes Bidder G Yes Yes Yes Yes Yes Yes Bidder H Yes Yes Yes Yes Yes9 Yes 1 Bidder is partly owned (25 percent) by government (of Borrower). It operates under commercial law and is financially and managerially independent of government. 2 Joint venture agreement missing. 3 Requires 25 percent mobilization advance; bid document states maximum of 15 percent. Deviation is minor and can be quantified. 4 Bidder prequalified as local agent; bid is joint obligation with parent company. Bid deemed acceptable because increase in financial backing results. 5 Bid security not in freely convertible currency. 6 Does not include cost for required disposal of hazardous wastes found at the site. 7 Source of plant from non-eligible country. 8 Required validity period of security not met (8 weeks instead of 12 weeks). 9 Contains several initialed changes substituting ISO standards in the specifications with DIN standards. This is acceptable to the Engineer-in-Charge.

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Annex iV. Bid Evaluation Summary Checklist

1. Attach bid opening record, if not previously submitted (refer to footnote 1,

Annex I). 2. Explain any inconsistencies between prices and modifications to prices

read out at bid opening (and written into the record) and presented in Table 4.

3. Provide details on eliminating any bids during preliminary examination

(Table 5). Copy select pages from bids, as desirable, to show examples of objectionable features.

4. If provisional sums in Table 6 vary among bidders, explain. Explain any

substantial corrections for computational errors that may affect the ranking of bidders.

5. Provide a copy of the rates requested for Table 7 and used in Tables 8 or

9. 6. The additions, adjustments, and priced deviations in Table 10 require

detailed explanations where they may affect the ranking of bidders. 7. Eligibility for domestic preference as indicated in Tables 11 or 12 must be

verified if the ranking of bids is affected. Provide details in an attachment. Exclusions to the calculations for preference should be explained if similarly significant.

8. Explain any cross-discount (para. 7(b)) not read out and recorded at bid

opening. In addition, attach copies of any evaluation reports for the other related contracts awarded to the same bidder.

9. Provide detailed reasons for refusing to award a contract to a party other

than the lowest evaluated bidder (para. 7(c)). 10. If an alternative bid is accepted, provide a detailed explanation of the

reasons for its acceptance, addressing issues of timeliness, performance, and cost implications (para. 7(d)).

11. An attachment to Table 13 should explain adjustments to the price

provided on line 10. Explain any changes to scope of bid and contract conditions.

12. Provide evidence of alternative insurance (see footnote 17, Annex I). 13. Attach copies of any correspondence from bidders that raise objections to

the bidding and evaluation process, together with detailed responses. 14. Attach copies of any letters to bidders requesting clarifications. Provide

copies of responses.

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15. Submit bid evaluation with separate evaluation report from consultant, if

one was commissioned. 16. Ensure that the bid evaluation report is double-checked, paginated, and

complete, and includes a Letter of Transmittal. The Bank will only review reports that are sent to it by the proper authorities.

17. Send by courier or by other swift means.

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Annexure 2 to Chapter – VI

Annexure - 2

Annexure 2 to Chapter - VI

Table of Contents FORMATS 1. Criteria for pre or post qualification (for India conditions) 36 2. Minutes of Pre-Bid Meeting 3. Minutes of Bid Opening – (NCB) 4. Record of Bid Opening – (NCB) 5. Bid Evaluation Report for Civil Work – (NCB) 6. Assessment of Offers 7. Comparative Statements of responsive offers 8. Bid Evaluation Report for Goods & equipment– (NCB) 9. Assessment of Bids 10. Brief Details of Assumptions made in Evaluation 11. Comparative Statement of responsive offers 12. Details of Recommended Offer 1 13. Section VII – A : Qualification Requirements 14. Proforma for Performance Statement 15. Seeking Bank’s clearance for Rejection of Bids & re-invitation

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CRITERIA FOR PRE OR POST QUALIFICATION (For Indian conditions)

1. CIVIL WORKS: A. The applicant/bidder in his/its name must be a well established civil

engineering contractor with three years experience and capability in construction of …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… ……………………………………………………………………………………

B. To be qualified for award of the Contract, bidders shall provide evidence

satisfactory to the Employer of their capability and adequacy of resources to carry out the Contract effectively. Bids shall include the following information:

(i) copies of original documents defining the constitution or legal

status, place of registration and principal place of business, written power of attorney of the signatory of the bid to commit the bidder;

(ii) total annual turnover expressed as total volume of construction work performed in each of the last five years;

(iii) performance as prime contractor on works of a similar nature and volume over the last five years and details of other works in hand and contractual commitment; clients who may be contacted for further information on these contracts;

(iv) major items for construction equipment proposed for carrying out the Contract.

(v) the qualifications and experience of key site management and technical personnel proposed for administration and execution of the Contract, both on and off site;

(vi) proposals for subcontracting elements of the Works amounting to more than 10 percent of the Bid Price for each element;

(vii) reports on the financial standing of the bidder/applicant including profit and loss statements, balance sheets and auditor's reports for the past five years, and an estimated financial projection for the next two years;

(viii) evidence of access to lines of credit, and availability of other financial resources;

(ix) authority to seek references from the bidder's bankers; (x) information regarding any current litigation in which the bidder is

involved, the parties concerned, and disputed amount; (xi) a statement establishing that the bidder/applicant (including all

members of a joint venture) and his subcontractors are not associated, nor have been associated in the past, directly or indirectly, with the consultant or any other entity having prepared the design, specifications, and other bidding documents for the project or being proposed as Engineer for the Contract; and

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(xii) a general description on the approach to the construction methods, technologies proposed, type and schedule of equipment proposed to be used, etc. for ensuing completion of the work within the desired timeframe (for pre-qualification only).

Or (xiii) the proposed methodology of construction, backed with their

construction equipment planning and deployment, duty supported with broad calculations and quality control procedures proposed to be adopted, justifying their capability of achieving the completion of work as per milestones specified within the stipulated period of completion (for post-qualification only).

C. To qualify for award of the Contract, each bidder or applicant in its/their

name should have in the last five years:

(i) achieved a minimum annual financial turnover (in all classes of civil works construction only) at least of value Rs. , M in anyone year (two and a half times the estimated annual cash flow in the contract);

(ii) satisfactorily completed (not less than 90% of contract value) as a

prime contractor, civil works of similar nature (………………) of value not less than Rs. M (50%of proposed contract) during the last five years is not more than one contract;

(iii) The contractor or his identified sub-contractor should possess

required valid electrical license for executing the building electrification works and should have executed similar electrical works totalling R………………………………….** . in any one year.

(iv) The contractor or his identified sub-contractor should possess

required valid license for executing the water supply/sanitary engineering works and should have executed similar water supply! sanitary engineering works totalling Rupees ** in anyone year. ** at least 50% of the estimated value executed in anyone year the following quantities of work:

(v) cement concrete work of not less than cum in any year (50% of the

expected peak rate of construction); each work in both excavation and embankment (combined quantities) of not less than cum in anyone year (80% of the expected peak rate of construction); (specify additional criteria as required) (For domestic bidders, turnover as well as cost of completed works of previous years shall be given weightage at the rate of 10% per year based on the rupee value to bring them to price level).

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D. Each applicant should further demonstrate;

(i) availability (either owned or leased or by procurement against mobilization advances) of key and critical equipment for this work as detailed below (list the details of minimum critical equipment required);

(ii) availability for this work of a project manager with no less than five

years experience in construction of similar civil engineering works and other key personnel with adequate experience at required; and

(iii) that they have access in financial resources sufficient in a contract

cash flow for three months at the peak construction period, namely, Rs. M (credit lines or letter of credit or solvency certificate from banks, etc.)

E. To qualify for a package of contracts, the bidder must demonstrate having experience and resources sufficient to meet the aggregate of the qualifying criteria for the individual contracts included in the IFB, which make up the package in question.

F Sub-contractors' experience and resources shall not be taken into account

in determining the bidder's compliance with the qualifying criteria except to the extent stated in para D (iii) and (iv) above.

G. Bidders who meet the minimum qualification criteria will be qualified only if

their available bid capacity is more than the total estimated cost of the works, for which he has offered his bid. The available bid capacity will be calculated as under:

A = Maximum value of Civil Engineering works executed in anyone year during the last five years (updated to the current price level) which will take into account the completed as well as works in progress;

B = Value at current price level of the existing commitments and on-going works to be completed during the next years (period of completion of works for which bids are invited); and

C = Number of years prescribed for completion of the works for which the bids are invited.

Note: The statements showing the value of existing commitments and on-going works as well as the stipulated period of completion remaining for each of the works listed should be countersigned by the Engineer- in-charge, not below the rank of Executive Engineer. In the case of a joint Venture, reference A and B would be determined based on details pertaining to such partners who propose to undertake physical execution of works and in proportion to their participation in the joint Venture.

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H. Even though the applicants meet the above criteria, they are subject to be disqualified if they have: made misleading or false representations in the form, statements and

attachments submitted in proof of the qualification requirements; and/or

record of poor performance such as abandoning the work, not

properly completing the contract, inordinate delays in completion, litigation history, or financial failures etc.

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MINUTES OF PRE-BID MEETING

National Agricultural Innovation Project

Loan No./Credit No. : 4161-IN and 4162-IN 1. Package Number : 2. Description of Item/work : 3. Estimated cost : 4. Date of Issue of IFB : 5. Mode of Procurement : 6. Deadline for submission of bids : Date : Time: 7. Prebid meeting Date. : Time. Venue:

In pursuance of paragraph ………of the IFB No. ……………… dated, the prebid was held on ……………………………. At………………………. In the office of ………………Under the chairmanship of Mr…………………………. (name and designation)

The following officials of the Purchaser/Employer and prospective bidders or their representatives attended the meeting:

Representing the Purchaser/Employer Sl.No.Name Designation 1. 2. 3. 4. 5. 6.

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Representing the prospective bidders S1.No. Name Designation Representing 1 2. 3.

S1.No. Query/Issue* Reference to BD Response

3.

4. 5.

6.

The issues raised by the various prospective bidders and the responses

given thereof are briefly recorded here under:

Technical Aspects 1 2.

3.

4. Commercial aspects: 1 2.

4.

Signature of the Chairman *Do not mention the name of the bidder who made the query

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MINUTES OF BID OPENING-(NCB)


1. Package Number : 2. Item of Goods/works description :

Signature of Bid opening officer……………………

Loan No./Credit No. : 4161-IN and 4162-IN

Basic Data Sheet

3. Estimated Cost : 4. Date of Issue of IFB : 5. (a) Deadline for submission of bids : Date:……….Time: ……..hours (b) Bid opening time and date : Date:…… …….Time: ……..hours 6. Number of bids received : 7. Bid validity expires on: 8. Any other data:

Name of Bid opening officer……………………

Designation of Bid opening officer…………………

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RECORD OF BID OPENING-(NCB)

National Agricultural Innovation Project Loan No./Credit No. : 4161-IN and 4162-IN

Package Number ………………….. Description of Item of goods, equipment/work: ……………………………… ………………………………….…………………………………………………………... 1. The following bids were received by closing date and time i.e……………. hours on ………….(date) were publicly opened in the presence of the bidders' representatives listed below at ………………..hours on ……………..(date) Sl.No Name of the

Bidder Bid Security Amount

Validity of Bid Security

Form of Bid Security

Bid Amount

Discount offered if any

1. 2. 3. 4. 5. 6. 2.The following representatives of bidders are present during the bid opening:

Sl.No Name of representative Signature Name of the Bidder

Name of Manufacturer if different from Bidder

1. 2. 3. 4. 5. 6.

3. Complaints/objections raised if any:

Signature, name and designation of Bid opening officer:

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SUGGESTED FORMAT OF BID EVALUATION REPORT FOR CIVIL WORKS-(NCB)

o Outline brief description of works covered by invitation.

o Variations from the approved document, if any. -Specifications and drawings (approval).

Furnish the following details and discuss: Bid invitation advertisement in national press, names of news papers

and dates of publication Dates the bidding document was available for sale.

Prebid conference, minutes of meeting and resulting amendments, if any.

Date and time of public bid opening, attendance, highlights of the bid opening meeting, etc. (Enclose copies of Bid Invitation, Prebid minutes, minutes of bid opening -Annexures II, III& IV).

4. Bid response:

State number of offers received and the nationality. Furnish details of offers received:

(i) In time (ii) Late

_________________

Furnish table of bid prices as read but at the bid opening meeting and as converted (in increasing order of bid value):

Sl No. Name of bidder Nationality Bid price as read out Remarks

1. Scope of contract and approximate cost:

o Furnisr. estimated cost at the time of appraisal and the actual cost for the proposed contract.

2. Bidding document:

o Approval by World Bank/Govt.

o Implementation schedule and stipulated time for completion. o Important bidding conditions, such as, price adjustment, if any, etc.

.1 (Enclose copy of bidding document with amendments if any, if not sent earlier, Annexure I).

3. Bid invitation process:

Number of bidders who purchased the bidding documents and their nationality.

Total

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5. Clarifications obtained, if any.

6. Preliminary examination of bids: Discuss preliminary examination for arithmetical errors,

completeness, legal validity, bid validity, bid security and substantial responsiveness to commercial and technical aspects of bidding documents.

Furnish details of all bids in Annexure -V.

Sl No. Name of bidder Bid price Brief reasons for rejection

7. Evaluation of substantially responsive bidders:

State evaluation criteria and methodology cross referencing to bid documents.

Discuss conditions if any and loading of bid prices.

Rank Bidder Bid price

1. 2.

(Furnish details as in Annexure VI) Discussion of offers:

• Determination of lowest evaluated responsive bid. . • Comments on unbalanced item bids, if any.

8. Post-qualification/Verification for pre-qualified bidders:

Furnish actual qualification of selected bidder and determine whether the selected lowest evaluated .responsive bidder is qualified to satisfactorily perform the contract.

Discuss the proposed construction methodology of the selected bidder and comment on its acceptability.

9. Recommendations:

Furnish important features of bid recommended for award such as : o Advances o Price adjustments, if any o Performance security

List the bids rejected as non-responsive.

Prepare evaluation table showing the rankings as unders:

3.

State criteria if any outlined in the bid document.

If the determination is negative, bid of the lowest bidder will have to be rejected and the next lowest evaluated bid considered to make a similar determination of bidder's capability to perform satisfactorily.

o Additional security proposed for unbalanced bids, if any o Bid validity

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o Stipulated period of completion o Other important terms and conditions

10. Value of contract proposed for approval: (Enclose checklist duly filled)

Encl: Signature of Evaluating Officer

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ASSESSMENT OF OFFERS

Name of bidder : Bid price :

Credentials :. Commercial assessment :

Capacity-cum-capability assessment :

(Post qualification/Pre qualification) :

Decision on responsiveness with reasons :

{Repeat for all bidders)

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COMPARATIVE STATEMENTS OF RESPONSIVE OFFERS

Sl. No. Item of Schedule Quantity Unit Estimate Bidder 1 Bidder 1

_____________________________________________________________________________

_________ _________ _______ Rate Value Rate Value Rate Value _____________________________________________________________________________

____________________________________________________________________________ Grand Total : ____________________________________________________________________________

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SUGGESTED FORMAT OF BID EVALUATION REPORT FOR GOODS & EQUIPMENT (NCB)

1. Scope of contract and approximate cost: -Outline brief description of Goods and service covered by the invitation. -Furnish estimated cost at the time of appraisal and the actual cost for the

proposed contract. 2. Bidding document:

Briefly discuss and indicate: -Details of approval by world Bank/Govt. -Variations of the approved document, if any -Specifications (approval reference, if any) -Requirement of accessories/space, if any -Delivery requirements

(a) delivery schedule (b) payments schedule (c) performance and productivity (d) operating and maintenance costs

[Enclose copy of bidding document and amendments if any, if not sent earlier (Annexure I)]

3. Bid invitation process: Furnish the following details:

-Date of publication of general procurement notice

-Number of firms who purchased the bidding documents and their nationality -Date of closing and extensions, if any -Pre-bid conference, minutes of meeting and resulting amendments, if any -Date and time of public bid opening, attendance, highlights of the bid opening meeting [Enclose copies of Prebid minutes (Annexure II) and minutes of bid opening (Annexure III)]

4. Bid response:

-Same number of offers received and the nationality -Furnish details of offers received:

(ii) Late Total

-Furnish Table of bid prices as read out at bid opening: ____________________________________________________________________________ SI.No. Name of bidder Nationality Bid price as read out Remarks ___________________________________________________________________________

____________________________________________________________________________

-Important bidding conditions such as: -price adjustment -loading for

-Bid invitation advertisement in national News papers and dates of publication -Period in which the bidding documents were made available for sale

(i) In time

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5. Clarifications obtained, if any 6. Preliminary examinations of bids:

-Discuss preliminary examination for arithmetical errors, completeness, legal validity, bid validity, bid security and substantial responsiveness to commercial and technical aspects of bidding document -List arithmetical errors and corrected bid prices -Furnish details of all bids in Annexure IV

_____________________________________________________________________________

SI.No. Name of bidder Bid price Brief Reasons _____________________________________________________________________________ 7. Evaluation of substantially responsive bidder:

-State evaluation criteria, methodology cross referencing to bid documents, assumptions, if any, made .in evaluation (Annexure V). -Discuss briefly offers and adjustment, if any, for:

-Commercial aspects: • omissions • .inland transportation. • delivlery • deviation in payment schedule • spare parts • operation and maintenance • performance and productivity etc.

-Technical criteria: • efficiency • productivity . • training etc.

-Prepare evaluation table showing all adjustments and ranking as under:

Manufacturer/Agent destination price

1 2 3 (Details in Annexure VI) -Brief discussion of offers

8. Post qualification:

-State criteria, if any, outlined in the bid document.

-List the bids rejected as non-responsive.

Rank Name of bidder/ Evaluated FOR

-Determination of the lowest evaluated responsive bidder

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-Discuss actual qualification of selected bidder to demonstrate whether the selected lowest evaluated responsive bidder is qualified to satisfactorily perform the contract. (If the determination is negative, lowest bid will have to be rejected and the next lowest evaluated bid considered for a similar determination of bidder's capability to perform satisfactorily).

(Details in Annexure VII)

9. Recommendations:

• .Bidders name • Model, quantity and total bid price for:

-basic machine -list of tools -list of special accessories -list of 2 years maintenance spares.

• Source of origin .Payment terms

• Delivery • Inspection • Insurance • Freight • Performance security • Specifications • Other important terms and conditions

(Enclose contract information sheet of selected bidder, Annexure VIII)

Signature of Evaluating Officer

Signature of Competent Authority

-Furnish important features of recommended bid such as:

• Agency commission.

-Date of expiry of validity of the selected bid

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NCB

ASSESSMENT OF BIDS

S. No.

Manufacturer/Agent Model offered Bid price Credentials

Commercial assessment Technical assessment

Decision on responsiveness with reasons

(repeat for each bid serially)

Name of bidder

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NCB

BRIEF DETAILS OF ASSUMPTIONS MADE IN EVALUATION

(a)

(b)

(c)

(d)

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NCB

COMPARATIVE STATEMENT OF RESPONSIVE OFFERS

Price

_____________________________________

Items Bidder's Name Bidder's Name Bidder's Name

(i) Exfactory price (ii) Excise duty, if any (iii) Packing & forwarding charges (iv) Inland freight

(v) Insurance (vi) Other charges, if any (vii) Total unit cost as quoted (viii) No. to be supplied

(x) Delivery period offered (xi) Delivery period loading (xii) Payment terms loading (xiii) Other loading

(xiv) Total evaluated price with loading (xv) Ranking

Cost per unit (in Rs.)

(ix) Total cost as quoted

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NCB

Name of Bidder:…………………………………………….. Sl; No. Name of Item Specification or Unit Qty. Rate Value Part No. ____________________________________________________________________________ 1. Basic item

2. List of Tools 3. List of special

accessories & spares

maintenance

DETAILS OF RECOMMENDED OFFER 1

4. List of spares for 2-year

_____________________________________

Total cost without duties and taxes

_____________________________________ 5. Duties and taxes ………………… ………………… Total Cost: ____________________________________________________________________________

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SECTION VII A QUALIFICATION REQUIREMENTS

3. Bidders shall invariably furnish documentary evidence (Client's certificate)

in support of the satisfactory operation of the equipment as specified above.

4. The Bidder shall furnish data to support that he has the financial and

production capacity to perform the contract and complete the supplies within the stipulated delivery period.

1. The bidder or the manufacturer whose product is offered by the bidder must have manufactured and supplied satisfactorily similar equipment of the type specified in each schedule of the Schedule of Requirements to the extent of at least 25% of the quantity indicated against each schedule under "See VI -Scheduled of Requirements" in anyone of the last five calendar years and should be in use satisfactorily with no adverse report for atleast two years on the date of bid opening.

2. `The bidder should, furnish the information on past supplies and

satisfactory performance in the proforma given under Section-VIII, Form 7.

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7. PROFORMA FOR PERFORMANCE STATEMENT (for a period of last five years)

IFB No……………… Date of opening …………………Time ……….Hours……………

Order Placed Order No. Description Value of Date of comple- Remarks Has the By (full address and Date and quantity Order -tion of delivery indicating equipment Of Purchaser) of ordered As per Actual reasons for been satisfy

if any -functioning? (Attach a certificate

from the Purchaser /Consignee) 1 2 3 4 5 6 7 ____________________________________________________________________________________

________________________________________________________________________ Signature and seal of the Bidder

…………………………………..

…………………………………..

Name of Firm …………………………………………………………….

equipment contract late delivery, actorily

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FORMAT FOR SEEKING BANK'S CLEARANCE FOR REJECTION OF BIDS AND REINVITATION

1. Credit Number : 4161-IN and 4162-IN

2. Name of the Project : National Agricultural Innovation Project 3. Name of the sub-project : 4. Package No. : 5. Description of Works :

7. Publication of lFB : 8. Date the documents were :

made available for sale :

9. Date of Bid Opening :

10. Number of Bids received : 11 . Bids rejected as non-responsive :

6. Estimated Cost :

Sl.No. Name of Bidder Bid Price

(Rs.) Brief reasons for rejection

12. List of substantially responsive : bids showing ranking 13. List of bids which meet the specified : minimum qualification criteria 14. If the bids are being proposed for : rejection due to higher rates, furnish the following information (a) Did you update the estimates for the : current market rates for labour

materials (cement/steel, etc.) and actual : and

leads of materials?

(b) If yes, indicate the update cost along : ` with break-up for each factor considered

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(c) Did you identify the item or items which :

contributed to the major variation over the updated estimates?

determination on them? 15. Are there any other reason for rejection/ :

to ensure better competition and receive

17. GENERAL

(d) Did you seek clarification including :

breakdown of unit rates for the items so identified? If yes, what are the reasons indicated by the bidder and what is your

reinvitation? If so, state in brief 16. RECOMMENDATION FOR REJECTION/ : REINVITATION OF BIDS

(a) In your view what are the reasons : for high bid prices? (Please list) (b) What measures you propose to take :

competitive bid prices in such reinvitation? (c) Do you propose any revision in the scope :

of work/change of specification/size of bid package for such reinvitation. If yes, please list your proposal along with reasons.

(Any other relevant information in support : of your recommendation)

Signature :…………………………

Name :…………………….

Designation :………………………...

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Annexure 3 to Chapter – VII

Annexure 3


TABLE OF CONTENTS

FORMATS (a) Procurement of Goods & Equipment

1. Invitation for quotations for Supply of Goods & Equipment under National Shopping Procedures (where evaluation of all items is done together)

2. Format of Quotation 3. Invitation for Quotations for supply of Goods & Equipment

under National Shopping Procedures (where evaluation of each items carried separately)

Supply Order 4.

(b) Procurement of Civil Works under National Shopping Procedures Civil Work

5. Invitation for quotations for Construction of Civil Works Instruction to Bidders Qualification Information

Letter of Acceptance-cum-Notice to proceed with the work Draft agreement form for construction through National Shopping

Bill of Quantities Format of Certificate

6. 7. 8. Quotation 9. 10.

11. 12.

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INVITATlON FOR QUOTATlONS FOR SUPPLY OF GOODS AND EQUIPMENT

UNDER NATlONAL SHOPPING PROCEDURES

M/s

………………………………………………………… …………………………………………………………

Sub: Invitation of quotation for supply of ………………………………………………

OFFICE OF ……………………………………………………………………………… ………………………………………………………………………………………

To:

…………………………………………………………

Dear Sirs,

….………………………………………………………………………………… 1. Sealed competitive quotations are invited by the undersigned for the

following items of goods/equipment.

Brief Quantity

…………………………………………………………

SL.No Brief description of

goods/ equipment

SpecificationsDelivery Period

Place of delivery

1 2 3 4 5

6

*Where ISI certification marked goods are available in market, procurement should generally be limited to goods with those or equivalent marking only.

2. Government of India has received a Credit from World Bank in various

currencies equivalent to US$ …………………..towards the cost of National Agricultural Innovation Project and intents to apply part of the proceeds of this credit to eligible payments under the contract for which this invitation for quotation is issued.

3. `Quoted Price:

(a) The bidder shall quote for items in the format of quotation attached; @ Note: Format to be used when evaluation is to be done for all the items put together.

(b) All duties, taxes and other levies payable by the bidder (other than Sales tax on the finished goods) shall be included in the item rate. Sales tax if any should be quoted separately.

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(c) The rates quoted for each item shall be fixed for the duration of the

contract and shall not be subject to adjustment.

(d) Rates or partial quantity of an item is not acceptable.

(e) Corrections if any shall be made by crossing out, initialling, dating and rewriting.

(f) Telex or Facsimile quotations are not acceptable. 4. Each bidder must submit only one quotation. 5. Validity of quotations:

The quotation shall remain valid for a period not less than 45 days after the deadline fixed for submission of quotations.

6. Evaluation of quotations:

The Purchaser will evaluate and compare the quotations determined to be substantially responsive i.e., which are properly signed, and conform to the terms and conditions and specifications in the following manner. (a) The evaluation will be done excluding the sales tax. If the bidder

has included the sales tax in his quotation for the item rate, it will treated as through it is exclusive of the sales tax and no down loading of sales tax will be made;

(b) The evaluation would be done for all the items put together. The items for which no rates have been quoted would be treated as zero and the total amount would be computed accordingly. The bidder who has quoted for partial quantity of anyone or more item(s) would be treated as non- responsive. Purchaser will award the contract to the responsive bidder whose total cost for all the items put together is the lowest.

7. Award of contract:

(a) The Purchaser will award the contract to the bidder whose quotation has been determined to be substantially responsive and who has offered the lowest price as per para 6(b) above.

(b) The Purchaser reserves the right at the time of contract award to increase or decrease the quantities of items indicated in para 2 above by 25% without any change in the unit price or any other terms and conditions.

(c) The Purchaser prior to the expiration of the quotation validity period will notify the bidder whose quotation is accepted of the award of contract. The terms of the accepted offer shall be incorporated in the Purchase order.

(d) Normal commercial warranty/guarantee shall be applicable to the supplied goods;

(e) Payment shall be made immediately after the delivery of the goods and their acceptance.

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(f) Notwithstanding the above, the Purchaser reserves the right to accept or reject any quotations and to cancel the bidding process and reject all quotations at any time prior to the award of the contract.

8. Last date and time of receipt of quotations:

You are requested to submit the sealed quotations superscribed on the envelope as "Quotations for the supply of ……………………Due on …………………..” latest by ……………hours on…………… (date).

We look forward to receiving your quotations and thank you for your interest in this project.

Yours Sincerely, (Purchaser) Name …….. Address…… Telephone No……… . Fax No……..

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FORMAT OF QUOTATION

Sl.No Brief

description of goods/ equipment

Brief Specifications

Quantity Unit Unit Rate

(Rs.) in Figures

Unit Rate (Rs.) in Words

Total Amount in Figures

Total Amount in Words

1 2 3 4 5 6

Gross total Cost: Rs…………………………………… (in figures) Rs ……………………………………………………………………….. (in words) We agree to supply the above goods in accordance with the technical specifications for a total contract price of Rs ……………(in figures) (Rs …………………………………. (in words) within the period specified in the Invitation for Quotations. We also confirm that the normal commercial warranty/guarantee …………………………..of months shall apply to the offered goods.

(Bidder)

Name : ……………………………………………

Signature : ……………………………………………

Date : ……………………………………………

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OFFICE OF ……………………………………………………………………………… ……………………………………………………………………………………………… INVITATlON FOR QUOTATlONS FOR SUPPLY OF GOODS AND EQUIPMENT

UNDER NATlONAL SHOPPING PROCEDURES To:

M/s ………………………………………………………… ………………………………………………………… ………………………………………………………… ………………………………………………………… Dear Sirs, Sub: Invitation of quotation for supply of ………………………………… …………………………………………………………………………………… 1. Sealed competitive quotations are invited by the undersigned for the

following items of goods/equipment.

SL.No Brief description of goods/ equipment

Brief Quantity Specifications

Delivery Period

Place of delivery

1 2 3 4 5 6

*Where ISI certification marked goods are available in market, procurement should generally be limited to goods with those or equivalent marking only.

3. `Quoted Price:

2. Government of India has received a Credit from World Bank in various currencies equivalent to US$ ……….towards the cost of National Agricultural Innovation Project and intents to apply part of the proceeds of this credit to eligible payments under the contract for which this invitation for quotation is issued.

(a) The bidder shall quote for items in the format of quotation attached; @ Note: Format to be used when evaluation is to be done for each item separately.

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(b) All duties, taxes and other levies payable by the bidder (other than Sales tax on the finished goods) shall be included in the item rate. Sales tax if any should be quoted separately.

(c) The rates quoted for each item shall be fixed for the duration of the contract and shall not be subject to adjustment.

(d) Rates or partial quantity of an item is not acceptable. (e) Corrections if any shall be made by crossing out, initialing, dating

and rewriting. (f) Telex or Facsimile quotations are not acceptable.

4. Each bidder must submit only one quotation. 5. Validity of quotations:

The quotation shall remain valid for a period not less than 45 days after the deadline fIXed for submission of quotations.

6. Evaluation of quotations:

The Purchaser will evaluate and compare the quotations determined to be substantially responsive i.e., which are properly signed, and conform to the terms and conditions and specifications in the following manner. (a) The evaluation will be done excluding the sales tax. If the bidder

has included the sales tax in his quotation for the item rate, it will treated as through it is exclusive of the sales tax and no down loading of sales tax will be made;

(b) The evaluation would be done for each item separately. The items for which no rates have been quoted would be treated as zero and the total amount would be computed accordingly. The bidder who has quoted for partial quantity of anyone or more item(s) would be treated as non- responsive. Purchaser will award the contract to the responsive bidder whose total cost for all the items put together is the lowest.

7. Award of contract:

(a) The Purchaser will award the contract to the bidder whose quotation has been determined to be substantially responsive and who has offered the lowest price as per para 6(b) above.

(b) The Purchaser reserves the right at the time of contract award to increase or decrease the quantities of items indicated in para 2 above by 25% without any change in the unit price or any other terms and conditions.

(c) The Purchaser prior to the expiration of the quotation validity period will notify the bidder whose quotation is accepted of the award of contract. The terms of the accepted offer shall be incorporated in the Purchase order.

(d) Normal commercial warranty/guarantee shall be applicable to the supplied goods;

(e) Payment shall be made immediately after the delivery of the goods and their acceptance.

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(f) Notwithstanding the above, the Purchaser reserves the right to accept or reject any quotations and to cancel the bidding process and reject all quotations at any time prior to the award of the contract.

8. Last date and time of receipt of quotations:

You are requested to submit the sealed quotations superscribed on the envelope as "Quotations for the supply of ……………………Due on …………………..” latest by ……………hours on…………… (date).

We look forward to receiving your quotations and thank you for your interest in this project.

Yours Sincerely,

(Purchaser) Name …….. Address……

Telephone No………

. Fax No……..

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OFFICE OF ……………………………………………………………………………… ……………………………………………………………………………………………

SUPPLY ORDER To:

M/s ………………………………………………………… ………………………………………………………… ………………………………………………………… ………………………………………………………… Dear Sirs, Sub: Supply of ………………………………………………………… …………………………………………………………………………… Ref: Your quotation dated ………………………………………………………… 1. Please refer your quotation of ……………………………(Date) for the

supply of ……………………………and supply the following goods/equipment at the rates specified against each and as per the specifications and terms & conditions specified hereunder:

SL.No Brief

description of goods/

equipment

Specifications Quantity to be

supplied

Unit Rate (Rs.)

Total Price (Rs.)

1 2 3 4 5 6

2. Delivery Period : ……….days from the date of issue of this supply order. 3. Place of delivery …………………………………………………… 4. To whom to be delivered: ………………………………………… 5. Sales tax if any shall be extra as per prevailing and applicable rates. 6. Warranty/Guarantee period shall be……….. days of delivery and acceptance.

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7. Payment shall be made within ………days of delivery; and acceptance of the goods/equipment.

8. Other terms and conditions if any.

(Purchaser) Date:

Place: Name: …………………………….

Signature :………………………….

Designation:……………………….

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PROCUREMENT OF CIVIL WORKS

UNDER NATIONAL SHOPPING PROCEDURES

(For Works valued less than equivalent $50,000 each)

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INVITATION FOR QUOTATIONS FOR CONSTRUCTION OF CIVIL WO'RKS UNDER SHOPPING PROCEDURES

To:

………………………………………………………… …………………………………………………………

…………………………………………………………

…….……………………………………………………………………

1. You are invited to submit your most competitive quotation as a period

below or above the estimate rate for the following works ;- Brief Description

…………………………………………………………

Dear Sirs, Sub: INVITATION FOR QUOTATIONS FOR CONSTRUCTIONS

Approximate value Period of of the Works of Works (Rs.) Completion 2. Government of India has received a credit from the International

Development Association (IDA) in various currencies equivalent to US$.200 millions towards the cost of the National Agricultural Innovation Project intends to apply part of the proceeds of this credit to eligible payments under the contract for which invitation for quotations is issued.

3!. The National Agricultural Innovation Project in…………………… state is being implemented by …………………………………... which is an autonomous society registered under the Societies Registration Act.

4. To assist you in the preparation of your quotation, we are enclosing the

following:

(i) Layout Drawings of the works;

(iii) Detailed Bill of Quantities, with estimated rates and prices; (iv) Technical Specifications;

(vi) Draft Contract Agreement format which will be used for finalizing the agreement for this Contract.

5. You are requested to provide your offer latest by ..…hrs. on …………..

(ii) Structural Details;

(v) Instructions to Bidders (in two sections);

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6. Quotations will be opened in the presence of Bidders or their representatives who choose to attend at ……AM/PM on ……………….in the office of ………………….

7. We look forward to receiving your quotations and thank you for your

interest in this project.

Address :…………………………..

(Employer)

Name :…………………………….

Tel. No.:…………………………… Fax No:…………………………….

_________________ ! Delete if inapplicable

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SECTION –A

1. Scope of Works

The ……………………………………….(Employer) invites quotations for the construction of works as detailed in the table given below:

INSTRUCTION TO BIDDERS

Brief Description Approximate value Period of of the Works of Works (Rs.) Completion

The successful bidder will be expected to complete the works by the intended completion date specified above.

4. Bid Price a) The contract shall be for the whole works as described in the Bill of

quantities, drawings and technical specifications. Corrections, if any, shall be made by crossing out, initialing, dating and rewriting.

b) All duties, taxes and other levies payable by the contractor under the contract shall be included in the total price.

c) The rates quoted by the bidder shall be fixed for the duration of the contract and shall not be subject to adjustment on any account.

2. Qualification of the bidder: The bidder shall provide qualification information which shall include:- (a) Total monetary value of construction works performed for each year

of the last 3 years; (b) income tax clearance certificate from the concerned IT circle; (c) report on his financial standing; and (d) details of any litigation, current or during the last 3 years in which

the bidder is involved, the parties concerned and disputed amount in each case.

3. To qualify for award of the contract the bidder

(a) should have satisfactorily completed as a prime contractor at least one similar work of value not less than Rs.400,000 in the last three years;

(b) . *should possess valid electrical license for executing building electrification works (in the event of the works being sub-contracted, the sub-contractor should have the necessary license);

(c) .*should possess required valid license for executing the water supply/sanitary works (in the event of the works being sub-contracted, the sub-contractor should have necessary license).

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5. Submission of Quotations 5.1 The bidder is advised to visit the site of works at his own expense and

obtain all information that may be necessary for preparing the quotation. 5.2 Each bidder shall submit only one quotation. 5.3 The quotation submitted by the bidder shall comprise the following:- (a) Quotation in the format given in Section B. (b) Signed Bill of Quantities; and (c) Qualification information form given in Section B duly completed. ___________________ "Modify appropriately for the works for which quotations are being invited. 5.4 The bidder shall seal the quotation in an envelope addressed to the

…………………(Purchaser). The envelope will also bear the following identification:- * Quotation for ……………………………..(Name of the Contact)

5.6 Any quotation received by the …………….(Employer) after the deadline for

submission of quotations will be rejected and returned unopened to the bidder.

6. Validity of Quotation

Quotation shall remain valid for a period not less than45 days after the deadline date specified for submission.

7. Opening of Quotations.

Quotations will be opened in the presence of bidders or their representatives who choose to attend on the date and time and at the place specified in the letter of invitation.

8. Information relating to evaluation of quotations and recommendations for

the .award of contract shall not be disclosed to bidders or any other persons not officially concerned with the process until the award to the successful bidder is announced.

9. Evaluation of Quotations

The Employer will evaluate and compare the quotations determined to be substantially responsive i.e. which (a) meet the qualification criteria specified in clause 3 above; (b) are properly signed; and (c) conform to the terms and conditions, specifications and drawings

without material deviations.

* Do not open before …………….(Time and date of quotation opening).

5.5 Quotations must be received in the office of the …………………… (Employer) not later than the time and date given in the letter of invitation. If the specified date is declared; a holiday, quotations shall be received upto the appointed time on the next working day.

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10. Award of contract The Employer will award the contract to the bidder whose quotation has been determined to be substantially responsive and who has offered the lowest evaluated quotation price and who meets the specified qualification criteria.

10.1 Notwithstanding the above, the Employer reserves the right to accept: or

reject any quotations and to cancel the bidding process and reject all quotations at any time prior to .he award of contract.

10.2 The bidder whose bid is accepted will be notified of the award of contract

by the Employer prior to expiration of the quotation validity period.

Within 15 days of receiving letter of acceptance, the successful bidder shall deliver to the…………. (Employer) the performance security (either a bank guarantee or a bank draft in favour of the Employer for an amount equivalent of 3% of the contract price. The Performance Security shall be valid till the expiry of the period of maintenance of the work, specified in clause 12. 1

12. Period of Maintenance

The "Period of Maintenance" for the work is six .months from the date of taking over possession or one full monsoon season whichever occurs later. During the period of maintenance, the contractor will be responsible for rectifying any defects in construction free of cost to the Employer.

13. Purchase of all construction materials including cement and steel as per the specifications (ISI certification marked goods wherever available) shall be the responsibility of the contractor.

11. Performance Security

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SECTION-B 1. Format for Qualification information. 2. Format for Submission of Quotation. 3. Format of Letter of Acceptance.

- 172 -


1.2 Total value of Civil Engineering 20 …….…………….

QUALIFICATION INFORMATION 1. For Individual Bidders 1.1 Principal place of business: …………………………………

Power of attorney of signatory of Quotation. [Attach copy]

construction work performed in the last 20 …….……………. three years (in Rs. Lakhs) 20 …….…………….

1.3 Work performed as prime contractor (in the same name) on works of a

similar nature over the last three years. Project Name

Name of Employer

Description of work

Contract No.

Value of contract

Date of Issue of work order

Stipulated period of completion

Actual date of completion

Remarks explaining reasons for delay and work completed

Place & Date

Value of Contract

Stipulated period of completion

Existing commitments and on-going works: Description of work

Contract No.& Date

(Rs. lakh)

Value of works *remaining to be completed

Anticipated date of completion

(1) (2) (3) (4) (5) (6) (7)

1.4 Proposed subcontracts and firms involved.

Section of the Works

Value of Subcontract Sub-contractor Experience in similar works (name & address)

* * * * * * * * * * * * * * * * *Enclose a certificate from Engineer concerned. 1.5 Evidence of access to financial resources to meet the qualification

requirements: cash in hand, lines of credit, etc. List them below and attach copies of support documents.

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1.6 Name, address, and telephone, telex, and fax numbers of the Bidders' bankers who may provide references if contacted by the Employer.

1.7 Information on litigation history in which the Bidder is involved. Other Employer Cause of Dispute Amount involved Remarks showing Party(ies) present status

- 174 -


QUOTATION

*Description of the Works: To:

Subject: Construction of …………………………………………………………….. Ref.: Letter No…………………………. dated …………from ………………………

We offer to execute the Works described in your letter referred to above in

accordance with the Conditions of Contract enclosed therewith at …………………………….percentage above / below the estimated rates, i.e., for a total Contract Price of -

Rs.** ……………………………………………………………….[in figures]

Yours faithfully,

Authorized Signature : …………………………………Date:……………….

Name & Title of Signatory: …………………………………………………….

Name of Bidder : ……………………………………………………….

Address : ……………………………………………………..

* To be filled in by the Employer before issue of the Letter of Invitation.

Rs. ………………………………………………………………….. [in words]

This quotation and your written acceptance of it shall constitute a binding contract between us.

We understand that you are not bound to accept the lowest or any quotation you receive.

We hereby confirm that this quotation is valid for 45 days as required in Clause 6 of the letter of invitation.

** To be filled in by the Bidder, together with his particulars and date of submission at the bottom of this Form.

Sir,

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PROCEED WITH THE WORK

Dated:

…………………………………………………………

Rupees [amount in words and figures] are hereby accepted by us.

LETTER OF ACCEPTANCE CUM NOTICE TO

(LETTERHEAD OF THE EMPLOYER)

To: ………………………………………[Name and address of the Contractor]

…………………………………………………………

………………………………………………………… …………………………………………………………

Dear Sirs,

This is to notify you that Quotation dated ……………………….for execution of the ………………………………………………………for the contract price of

You are hereby requested to furnish Performance Security for an amount of Rs…………………… (equivalent to 3% of the contract price) within 15 days of the receipt of the letter. The Performance Security in the form of Bank Guarantee or a Bank draft in favour of ………………………(Employer) shall be valid till the expiry of the period of maintenance i.e. upto. ……………………Failure to furnish the Performance Security will entail cancellation of the Award of Contract.

You are also requested to sign the agreement form and proceed with the work not later than …………………………………..under the instructions of the Engineer,…………………………... and ensure its completion within the contract period. With the issuance of this acceptance letter and your furnishing the Performance Security, .contract for the above said work stands concluded.

Yours faithfully,

Authorized Signature

Name and title of Signatory

- 176 -


Draft agreement form for construction through National Shopping

ARTICLES OF AGREEMENT This deed of agreement is made in form of agreement on ………….. day………month…………….200 .between the ………..(Employer) or his authorized representative (hereafter referred to as the first party) and……….(Name of the Contractor, S/o………………resident of………………….(hereinafter referred to as the second party) to execute the work of construction of……………….(hereinafter referred to as works) on the following terms and conditions. 2. Cost of Contract

The total cost of the works (hereinafter referred to as the “total cost”) is Rs.……….as reflected in Annexure-I.

On signing of agreement : __% of the total cost * On reaching plinth level (First stage) : __% of the total cost On reaching lintel level (second stage) : __% of the total cost

Plastering and completion of whole : __% of the total cost (The above has been drafted for construction of school building modify this suitably for other works)

3.2 Payment at each stage will be made by the first party: (a) on the second party submitting an invoice for an equivalent amount; (b) on certification of the invoice (except for the first instalment) by the engineer

nominated by the first party with respect to quality of works in the format in Annexure-2; and

(c) upon proper and justified utilization of at least 50% of the previous instalment and 100% of any prior instalment.

3.1 Payments to the second party for the construction work will be released by the first party in the following manner :-

On reaching roof level (third stage0 : __% of the total cost

4. Notice by Contractor to Engineer

The second party, on the works reaching each stage of construction, issues a notice to the first party or the engineer nominated by the first party, to visit the site for certification of stage completion. Within 15 days of the receipt of such notice, the first party or the engineer nominated by it, will ensure issue of stage completion certificate after due verification.

5. Completion time

The works should be completed in …………………..(months/weeks/days) from the date of this Agreement. In exceptional circumstances, the time period in this clause may be extended in writing by mutual consent of both the parties

6. If any of the compensation events mentioned below would prevent the work being completed by the intended completion date, the first party will decide on the intended completion date being extended by a suitable period: a) The first party does not give access to the site or a part thereof by the agreed period. b) The first party orders a delay or does not issue completed drawings, specifications or

instructions for executive of the work in time. c) Ground conditions are substantially more adverse could reasonably have been

assumed before issue of letter of acceptance and from information provided to second party or from visual inspection of the site.

d) Payments due to the second party are delayed without reason e) Certification for stage completion of the work is delayed unreasonably.

- 177 -


7. Any willful delay on the part of the second party in completing the construction within the stipulated period will render him liable to pay liquidated damages. @Rs. *…………………per day which will be deducted from payments due to him. The first party may cancel the contract and take recourse and take recourse to such other action as deemed appropriate once the total amount of liquidated damages exceeds 2% of the contract amount.

(Note: *The amount of liquidated damages per day should be determined at 0.05% of the contract value of the works and indicated here).

8. Duties and responsibilities of the first Party

8.1 The first party shall be responsible for providing regular and frequent supervision and guidance to the Second for carrying out the works as per qualification. This will include written guidelines and regular site visit of the authorized personnel of the First Party, for checking quality of material and construction to ensure that it is as per the norms.

8.4 The Engineer or such other person as may be authorized by the First Party shall hold meeting once in a month where the Second Party or his representative at site will submit the latest information including progress report and difficulties if any, in the execution of the work. The whole team may jointly inspect the site on a particular day to take stock of activities.

9. Duties and responsibilities of the Second Party

9.1 The Second Party shall :

a) take up the works and arrange for its completion within the time period stipulated in clause 5;

d) abide by the technical suggestions/direction of supervisory personnel including engineers etc. regarding building construction;

g) keep the first party informed about the progress of work;

i) assume full liability towards any insurance against loss of materials/cash, etc. or workman disability compensation claims of the personnel deployed on the works as third party claims.

10. Variations

*To be modified appropriately depending on the nature of the work.

8.2 The First Party shall supply 3 sets of drawings, specifications and guidelines to the Second Party for the proposed works

8.3 Possession of the site will be handed over the Second Party within 10 days of signing of the Agreement.

8.5 The Engineer shall record his observations/instruction at the time of his site visit in a site register maintained by the Second Party. The Second Party will carry out the instruction and promptly rectify any deviation pointed out by the engineer. If the deviations are not rectified, within the time specified in the Engineer’s notice, the first party as well as the engineer nominated by it, may instruct stoppage or suspension of the construction. It shall thereupon be open to the First Party or the engineer to have the deviation rectified at the cost of the Second Party.

b) employ suitable skilled persons to carry out the works c) regularly supervise and monitor the progress of work;

e) be responsible for bringing any discrepancy to the notice of the representative of the first party and seek necessary clarification;

f) ensure that the work is carried out in accordance with specifications, drawings and within the total of the contract amount without any cost escalation;

h) be responsible for all security and watch and ward arrangement at site till handing over the building to the First Party; and

The Second Party in accordance with the approved drawings and specifications shall carry out the works. However, if, on account of site conditions or any other factors, variations are considered necessary, the following procedure shall be followed:

- 178 -


If over the works, any dispute arises between the two parties relating to any aspects of this Agreement, the parties shall first attempt to settle the dispute through mutual and amicable consultation.

In the even of agreement not being reached, the matter will be referred for arbitration by a Sole Arbitrator not below the level of retired Superintending Engineer, PWD to be appointed by the first party. The Arbitration will be conducted in accordance with

A) the Second party shall provide the Engineer with a quotation for carrying out the Variation when requested to do so by the Engineer. The Engineer shall assess the quotation, which shall be given within seven days of the request before the Variation is ordered.

B) If the quotation given by the Second Party is unreasonable, the Engineer may order the Variation and made a change to the Contract Price which shall be based on Engineer’s own forecast of the effects of the variation on the Contractor’s costs.

C) The Second Party shall not be entitled to additional payment for cost, which could have been avoided by giving early warning.

11. Dispute settlement

The Arbitration and Conciliation Act, 1996. The decision of the Arbitrator shall be final and binding on both the parties.

- 179 -


BILL OF QUANTITIES

Sl. No. Description of work

Qty. Unit Estimated cost Amount

In figure (Rs.)

In words

Gross Total Cost: Rs…………….

We agree to execute the works in accordance with the approved drawings and technical specifications at…………………. Percentage above/below the estimated rates, i.e., for a total contract price of Rs………………..(amount in figures) (Rs………………………………………… amount in words.)

- 180 -


FORMAT OF CERTIFICATE

Place :

Certified that the works up to……………………………….level in respect of construction of ………………….at……………… have been executed in accordance with the approved drawing and technical specification. Signature………………………. Name & Designation…………… (Official address)……………….

Date:

Office Seal *modify appropriately depending on the nature of the work.

- 181 -

Annexure 4 to Chapter – X

Annexure 4


TABLE OF CONTENTS

1. The evaluation report includes five sections 2. Consultant Evaluation Report

The evaluation report includes five sections:

Section I. A Short Report Summarizing the Findings of the Technical Evaluation;

Section IV. Financial Evaluation Report—Forms;

Annex I. Individual Evaluations;

The report can be used for all methods of selection described in the Guidelines. Though it mainly addresses Quality- and Cost-Based Selection, each section contains a note indicating the data and forms that are to be provided for the other methods of selection.

Section II. Technical Evaluation Report—Forms; Section III. A Short Report Summarizing the Findings of the Financial

Evaluation;

Section V. Annexes:

Annex II. Information Data Monitoring; Annex III. Minutes of the Public Opening of the Financial

Proposals; Annex IV. Copy of the Request for Proposals; Annex V. Miscellaneous Annexes—Ad Hoc.

The evaluation notice is sent to the Bank after the technical evaluation is completed. It includes only Form IIB and a short explanatory note to flag important aspects of the evaluation. Following the Bank’s no-objection to the evaluation notice, the Borrower prepares Forms IVC and IVD and a short explanatory note to highlight the most important aspects of the financial evaluation.

For complex, specialized assignments, Borrowers may wish to obtain assistance from consultants to evaluate proposals. Such consultants or individual consultants may be financed under the relevant loan, credit, or grant.

- 182 -


CONSULTANT EVALUATION REPORT

Country [INDIA]

Project Name : National Agricultural Innovation Project

Loan/Credit No. : 4161-IN and 4162-IN

Title of Consulting Services [insert: title]

Date of Submission [insert: date]

- 183 -


Contents

Section I. Technical Evaluation Report—Text .............................................1 85

86Form IIA. Technical Evaluation - Basic Data.......................................187

190Form IIC. Individual Evaluations—Comparison...................................191

193

1949596

197

198

199Annex I(i). Individual Evaluations..........................................................200

201Annex II. Information Data Monitoring ................................................202

0320405

Section II. Technical Evaluation Report—Forms .........................................1

Form IIB. Evaluation Summary ...........................................................

Section III. Financial Evaluation Report—Award Recommendation—Text........................................................................................................

Section IV. Financial Evaluation Report—Award Recommendation—Forms .................................................................................................... Form IVA. Financial Evaluation—Basic Data .......................................1 Form IVB. Adjustments—Currency Conversion—Evaluated Prices .....1 Form IVC. QCBS—Combined Technical/Financial Evaluation—

Award Recommendation ..................................................... Form IVD. Fixed-Budget and Least-Cost Selection—Award

Recommendation ........................................................................

Section V. Annexes........................................................................................

Annex I(ii). Individual Evaluations—Key Personnel ...............................

Annex III. Minutes of Public Opening of Financial Proposals ..............2 Annex IV. Request for Proposals ......................................................... Annex V. Miscellaneous Annexes—Ad Hoc .......................................2

- 184 -


Section I. Technical Evaluation Report—Text23 1. Background Include a brief description, context, scope, and objectives of the

services. Use about a quarter of a page.

2. The Selection Process (Prior to Technical Evaluation)

Elaborate on information provided in Form IIA. Describe briefly the selection process, beginning with the advertising (if required), the establishment of the shortlist, expressions of interest, and withdrawals of firms before proposal submissions. Describe major events that may have affected the timing (delays, complaints from consultants, key correspondence with the Bank, Request for Proposals (RFP), extension of proposal submission date, and so on). Use about one-half to one page.

3. Technical Evaluation

Describe briefly the meetings and actions taken by the evaluation committee: formation of a technical evaluation team, outside assistance, evaluation guidelines, justification of subcriteria and associated weightings as indicated in the Standard Request for Proposals; relevant correspondence with the Bank; and compliance of evaluation with RFP.

Present results of the technical evaluation: scores and the award recommendation.

Highlight strengths and weaknesses of each proposal (most important part of the report).

(a) Strengths: Experience in very similar projects in the country; quality of the methodology, proving a clear understanding of the scope of the assignment; strengths of the local partner; and experience of proposed staff in similar assignments.

(b) Weaknesses: Of a particular component of the proposal; of a

lack of experience in the country; of a low level of participation by the local partner; of a lack of practical experience (experience in studies rather than in implementation); of staff experience compared to the firm’s experience; of a key staffer (e.g., the team leader); of a lack of responsiveness; and of disqualifications (conflict of interest).

Comment on individual evaluators’ scores (discrepancies).

Use up to three pages.

Items requiring further negotiations.

23 Section I applies to Quality- and Cost-Based Selection (QCBS), Quality-Based Selection (Quality-Based), Fixed-Budget Selection (Fixed-Budget), and Least-Cost Selection (Least-Cost). Provide appropriate information in the case of Selection Based on Qualifications (Qualifications) and Single-Source Selection (SS).

- 185 -


Section II. Technical Evaluation Report—Forms24

Form IIA. Technical Evaluation—Basic Data

Form IIB. Evaluation Summary—Technical Scores/Ranking

Form IIC. Individual Evaluations—Comparison (Average Scores)

24 Section II applies to Quality- and Cost-Based Selection (QCBS), Quality-Based Selection (Quality-

Based), Fixed-Budget Selection (Fixed-Budget), and Least-Cost Selection (Least-Cost). Supply appropriate data in cases of Selection Based on Qualifications (Qualifications) and Single-Source Selection (Single-Source) in Form IIA.

- 186 -


F. Form IIA. Technical Evaluation - Basic Data

2.1 Name of country Name of Project

2.2 Client:

2.3 Type of assignment (pre-investment,

preparation, or implementation), and brief description of sources

2.4 Method of selection25: QCBS ___ Quality-Based ___

Fixed-Budget ___ Least-Cost ___ Qualifications ___ Single-Source ___

(a) Full prior review US$

2.5 Prior review thresholds:

(b) Simplified prior review (notice)

US$

2.6 Request for expressions of interest26: (a) publication in United Nations

Development Business (UNDB)27

Yes No

Yes No

(a) names/nationality of firms/associations (mark domestic firms and firms that had expressed interest)

1.2.3.4.5.6.

(b) Submission to the Bank for no-objection

(c) Bank’s no-objection

Date Date

Date Date Date

2.9 Amendments and clarifications to the RFP (describe)

2.10 Contract:

Yes ____ Price adjustment: Yes_____ No ______

Price adjustment: Yes_____ No ______

(a) name (b) address, phone, facsimile

(b) publication in national newspaper(s)

(c) number of responses

2.7 Shortlist:

2.8 Request for Proposals:

(a) submission to the Bank for no-objection

(b) Bank’s no-objection (c) issuance to Consultants

(a) Bank Standard Time-Based

(b) Bank Standard Lump Sum

Yes____

(c) other (describe)

25 See Guidelines. 26 Required for large contracts (see Guidelines). 27 Indicate whether expressions of interest advertised in Web or hardcopy edition of UNDP.

- 187 -


2.11 Pre-proposal conference:

(a) minutes issued Yes No

2.12 Proposal submission:

(d) extensions(s)

Yes Date Time Date Time

2.13 Submission of Financial Proposal

Location

2.14 Opening of Technical Proposals by selection committee

Date

2.15 Number of proposals submitted 2.16 Evaluation committee28: Members’ names and titles (normally

three to five)

1.2.3.4.

2.17 Proposal validity period (days):

(a) original expiration date (b) extension(s), if any

Date Time Date Time

29:

(ii)

(ii)

(A) _____________ (B) _____________ (C) _____________

(B) _____________

(ii)

(ii)

Weight Weight

Weight Weight

Weight Weight Weight

Weight Weight Weight Weight Weight Weight Weight

2.19 Technical scores by Consultant

Minimum qualifying score

Yes No

(a) two envelopes (technical and financial proposals)

Yes

(b) one envelope (technical) (c) original submission

(i) individual(s)

(ii) group(s)

Time

5.

2.18 Evaluation Criteria/subcriteria

(a) Consultants’ experience (i)

(b)

(i) methodology

(c) key staff

(A) _____________

(C) _____________

(d) (i)

training (optional)

(e) (i) local input (optional)

28 It is important that evaluators be qualified. 29 Maximum of three subcriteria per criterion.

- 188 -


Consultants’ names

Technical scores

1. 2. 3. 4.

2.20 Evaluation report:

Date

2.21 Evaluation notice: (a) submission to the Bank:

Date

(a) submission to the Bank for no-objection

- 189 -


G. Form IIB. Evaluation Summary Technical Scores/Ranking


[Insert name of Consultant 1]




Criteria

Scores

Scores

Scores

Scores

Experience

Methodology

Proposed staff

Training

Local input

Total scorea Rank

a. Proposals scoring below the minimum qualifying score of [number] points have been rejected.

- 190 -


H. Form IIC. Individual Evaluations—Comparison Consultants’ Names





Criteria Experience

A B

AVa C D

Methodology

Key staff

Total

a. A, B, C, and D = scores given by evaluators; AV = average score, see Annex I(i).

Training

Local input

- 191 -


NOTE:

Please see the Preface.

For contracts above a threshold indicated in the Loan Agreement and requiring the Bank’s no-objection of the technical evaluation report, financial proposals must not be opened before the Borrower has received such no-objection. The technical evaluation (technical scores in particular) cannot be changed following the opening of the financial proposals.

- 192 -


Section III. Financial Evaluation Report—Award Recommendation—Text30 [The text will indicate:

(a) any issues faced during the evaluation, such as difficulty in obtaining the exchange rates to convert the prices into the common currency used for evaluation purposes;

(c) tax-related problems;

(b) adjustments made to the prices of the proposal(s) (mainly to ensure consistency

with the technical proposal) and determination of the evaluated price (does not apply to Quality-Based (Quality-Based), Selection Based on Qualifications (Qualifications), and Single-Source Selection (Single-Source));

(d) award recommendation; and (e) any other important information.

Taxes are not taken into account in the financial evaluation whereas reimbursables are.]

30 Applies to QCBS, Fixed-Budget, and Least-Cost. For Quality-Based, Qualifications, and Single-

Source provide relevant information as indicated.

- 193 -


Section IV. Financial Evaluation Report-Award Recommendation—Forms31

Form IVA. Financial Evaluation—Basic Data

Form IVB. Adjustments—Currency Conversion—Evaluated Prices

Form IVC. QCBS—Combined Technical/Financial Evaluation—Award Recommendation

Form IVD. Fixed-Budget and Least-Cost Selection—Award Recommendation

31 Applies to QCBS, Fixed-Budget, and Least-Cost. For Quality-Based, Qualifications, and Single-

Source, provide relevant information as indicated.

- 194 -


I. Form IVA. Financial Evaluation—Basic Data 4.1 Bank’s no-objection to technical

evaluation report (Quality-Based, Qualifications, Single-Source)

4.2 Public opening of financial proposals

(a) Names and proposal prices (mark Consultants that attended public opening)

Date

1.

4.3 Evaluation committee: members’

names and titles (if not the same as in the technical evaluation - Quality-Based, Qualifications, Single-Source)

4.4 Methodology (formula) for evaluation of

cost (QCBS only; cross as appropriate)

4.5 Submission of final technical/financial

evaluation report to the Bank (Quality-Based, Qualifications, Single-Source)

4.6 QCBS

(a) Technical, financial and final scores (Quality-Based: technical scores only

Consultant’ Technical Financial FinalName scores scores scores

(b) Award recommendation

4.7 Fixed Budget and Least-Cost Consultant’ Technical Proposal EvaluatedName scores prices prices

Date

Time

2.3.4.

Weight inversely proportional to cost Other

Date

(a) Technical scores, proposal and evaluated prices

(b) Award recommendation (c) Fixed-Budget: best technical

proposal within the budget (evaluated price)

(d) Least-Cost: lowest evaluated price proposal above minimum qualifying score

Name

Name

- 195 -


J. Form IVB. Adjustments—Currency Conversion—Evaluated Prices32

a

Adjustments b

Evaluated price(s)

Conversion to currency of

evaluation c

Financial scoresd

Consultants’ Names

Currency

Amounts (1)

(2)

(3) = (1) + (2)

Exchange rate(s)e

(4)

Proposals’ prices (5) = (3)(4)

(6)

Proposals’ prices

e. Value of one currency unit in the common currency used for evaluation purposes, normally the local currency (e.g., US$1 = 30 rupees). Indicate source as per RFP.

a. Comments, if any (e.g., exchange rates); three foreign currencies maximum, plus local currency. b. Arithmetical errors and omissions of items included in the technical proposals. Adjustments may be positive or negative.

nts to the lowest evaluated proposal; other scores to be determined in accordance with provisions of RFP. c. As per RFP. d. 100 poi

32 For Quality-Based, Qualifications, and Single-Source, fill out only up to column 3.

- 196 -


K. Form IVC. QCBS—Combined Technical/Financial Evaluation—Award Recommendation

Combined Evaluation TechnicalEvaluation

Financial Evaluation


Technical

rank

Scores

S(t) T + S(f) F

Rank

Award recommendation To highest combined technical/financial score. Consultant’s name: _____________________________________

a. See Form IIB. b. T = As per RFP. c. See Form IVB. d. F = as per RFP.

Weighted scores

S(f) × F

Financial scores

S(f)

Weighted scores

S(t) × T

Technical scoresa

S(t) c

b d

- 197 -


L. Form IVD. Fixed-Budget and Least-Cost Selection—Award Recommendation33

Fixed-Budget Selection

Least-Cost Selection

Consultants’ names Technical scores Evaluated prices

Award recommendation

a. See Form IIB. b. See Form IVB.

a Technical scores Evaluated prices b

To best technical score with evaluated price within budget. Consultant’s name:

To lowest evaluated price above minimum qualifying score. Consultant’s name:

33 Fill in appropriate part of form.

- 198 -


Section V. Annexes

Form V Annex I(i). Individual Evaluations

Annex II. Information Data Monitoring

34

Annex I. Individual Evaluations

Form V Annex I(ii). Individual Evaluations—Key Personnel

Annex III. Minutes of Public Opening of Financial Proposals

Annex IV. Request for Proposals

Annex V. Miscellaneous Annexes—Ad Hoc

34 Annex I applies to Quality-Based, Fixed-Budget and Least-Cost. For Qualifications and Single-

Source, it is replaced by a review of the strengths and weaknesses of the proposal, which may be amended by one or several evaluators.

- 199 -


M. Annex I (i). Individual Evaluations Consultant’s name: _________________________ Evaluators

Criteria/Sub-Criteria Maximum Scores

1 2 3 4 5 Average Scores

Experience

-

-

- Methodology

-

-

- Key Staff

-

-

-

-

-

-

-

- Total 100

a. If specified in the RFP

-

Transfer of Knowledge (Training ) a

Participation by Nationals a

1. Evaluator’s Name: _____________ Signature: ____________ Date: _________





- 200 -


N. Annex I(ii) Individual Evaluations—Key Personnel Consultant’s Name: ____________________________

Adequacy for the

Assignment

Key Staff Names a Maximum Scores

General Qualifications

Experience in Region

Total Marks

(100)

Scores

Total a. Sometimes evaluations are made by groups instead of individuals. Each group (e.g.

financial group) has a weight. The group score is obtained by the weighted scores of the members of the group. For example, the score of a group of three individuals scoring a, b, and c would be ax + by + cz with x, y, and z representing the respective weights of the members (x + y + z = 1) in this group.

b. Maximum marks as per RFP

( ) b ( ) b ( ) b

Name of Evaluator: _______________ Signature: _________________ Date: ___________

- 201 -


O. Annex II. Information Data Monitoring 5.1 Loan/credit/grant

(a) number

(c) closing date (i) original

(b) date of effectiveness

5.2 General Procurement Notice

(ii) revised

(a) first issue date

(b) latest update

5.3 Request for expressions of interest : 35 (a) publication in United Nations

Development Business (UNDB)Date Name of newspaper(s) and date(s) (b) publication in national local

newspaper(s)

5.4 Did the use of price as a factor of selection change the final ranking?

Yes No

36

5.5 Did the use of “local input” as a factor of selection change the technical ranking?

37 Yes No

35 Required for large contracts (see Guidelines). 36 Compare technical rank with rank in Form IVC. 37 Figure out technical scores with and without “local input” (Form IIB).

- 202 -


P. Annex III. Minutes of Public Opening of Financial Proposals38

MINUTES

[The minutes should indicate the names of the participants in the proposal opening session, the proposal prices, discounts, technical scores, and any details that the Client, at its discretion, may consider appropriate.

All attendees must sign the Minutes.]

38 Annex III applies to QCBS, Fixed-Budget, and Least-Cost.

- 203 -


Q. Annex IV. Request for Proposals39

[A Standard Request for Proposals must be used for World Bank-financed contracts in excess of US$200,000. The Bank also recommends the use of the Standard Request for Proposals document for smaller contracts to simplify its prior review (i.e., when the Borrower cannot issue the document without the Bank’s no-objection). The Standard Request for Proposals is available on the Bank’s Internet site (http://www.worldbank.org/html/opr/procure/conspage.html) and in the Bank InfoShop at the following address:

The World Bank InfoShop

Washington, D.C. 20433, U.S.A.

Rm. J 1-060

1.202.458-5454 [email protected]].

701 18th Street, N.W.

39 Annex IV applies to all selection procedures (The Bank Standard Request for Proposals may be

used for Qualifications and Single-Source, with appropriate modifications).

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R. Annex V. Miscellaneous Annexes—Ad Hoc

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Annexure 5 to Chapter – XI

Annexure - 5


TABLE OF CONTENTS

1. Procurement checklist for contracts above prior review Threshold for Civil Work

1.1 Prequalification Details 2. Procurement checklist for contracts above prior review Threshold

for Goods and Equipment

FORMATS

2 Format for seeking Bank’s clearance (valued US$ 200,000 and above as amended)

Procurement checklist for post-award review of contract for Civil work

Procurement checklist for post-award review of contract for Goods & Equipment

5. Force Accounts 6. National Shopping

Check list for Prior Review of Consultancy Contract

3.

4.

7.

Check list for Post Review of Consultancy Contract

8.

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PROCUREMENT CHECKLIST FOR CONTRACTS ABOVE PRIOR REVIEW THRESHOLD FOR

CIVIL WORKS 1. Name of the Project : …………………………………………. 2. Procurement Package Number or SAR reference: ………………………………………….

4. Estimated cost of work : ………………………………………….

6. Type of contract : NCB

Attach details as per Annexure-I

the Bank : …………………………………..

10. *when was the bid notice sent : ………………………………….. to representatives of eligible countries …………………………………….

14. Number of bidding documents purchased by

15.

3. Description of works : ………………………………………..

5. Stipulated time of completion : …………………………..(in months)

7. Whether the bidders were prequalified and if, so : Yes/No

8. Date of clearance of bidding document by

9. Date of invitation of price bids : …………………………………..

11. * When the bid notice was published in UNDB? : NOT APPLICABLE [Being NCB].

12. Publicity (National Press – Name of Date of publication: : 1. ……………………………………..

: 2. …………………………………….. : 3. ……………………………………. 13. Dates when the bidding documents were made. : From………….. to ………………

prospective bidders a) Domestic : …………………………………… b) Foreign : ……………………………………. Pre bid conference held on : ……………………………………..

(Schedule it at about 2/3 of bidding time) rd

16. Date of clearance of pre bid conference : ……………………………………. minutes by the bank 17. Last date of receipt and date of opening of bids : ……………………………………..

( both should be the same)

18. Number of bids receive : ………………………………………. a) Domestic : ……………………………………….. b) Foreign : ……………………………………….

19. Date of clearance of award by the Bank : ………………………………………… (No objection cable)

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20. Award amount as cleared by the Bank : Currency Amount 21. Amount of contract* Currency Amount 22. Date of signing of the Contract : ………………………………………. 23. Contract number : ………………………………………. 24. Name and nationality of the contractor : ………………………………………. 25. Whether the contract includes price adjustment clause? : Yes/No 26. Date of start of work : ………………………………………. 27. Stipulated period of completion : ………………………………………. 28. Performance Security : Percentage Deduction Total not

a) amount and currencies in proportion : Initial (%) from bills(%) exceeding(%) to the currencies of payment

b) additional security for unbalanced bids if any: ………… ……….. ……….. c) Defects liability period : …… …………………… months d) Validity as required : ……………………………… months e) Has the successful bidder furnished the performance security in various Currencies in an acceptable form as stipulated in the bid document? Indicate : ……………………………………..

i) Form : ……………………………………. ii) Amount : ……………………………………. iii) Validity : …………………………………….

29. Reasons for delay, if any, in forwarding the conformed copy of the contract. ( Contracts along with the checklist, should be forwarded to the Bank within ten days of signing of Agreement) : ……………………………………… 30. Any other remarks (attach sheet, if necessary) : ………………………………………. 31. Has the letter of appointment to agreed Dispute Review Board members or adjudicator been issued. ……………………………………. Signature :……………….. Name :………………………

Designation :………………. Date : 1. * Clarify reasons for variations, if any, from the value as cleared by the Bank vide Sr. No. 20.

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PREQUALIFICATION DETAILS

1. Date of clearance of pre qualification document : ……………………………..

by the Bank

2. Date of invitation of pre qualification : ……………………………. 3. *When the pre qualification notice was sent

4. *When the pre qualification notice

was published in UNDB? : NOT APPLICATION [being NCB].

5. Publicity : (National press-Name and Date of Publication)

: 1…………………………… : 2……………………………. : 3……………………………..

6. Dates when pre qualification documents were : ………………………………. Made available for sale [NCB – 30 to 60 days] : From………. To……………

7. Last date of receipt of pre qualification application and date of opening : …………………………………

8. Date of pre qualification conference (Schedule it at about 2/3 of the time given to applicants) : ……………………………..

9. Date of clearance of pre qualification conference minutes by the bank? :……………………………….

10. No. of applicants who

a) purchased the pre qualification documents : …………………………….. ---Domestic : …………………………….. ---- Foreign : ……………………………..

b) submitted the pre qualification application : ……………………………. ---- Domestic : ……………………………. ----- Foreign : …………………………….. c) are pre qualified ---- Domestic : ……………………………. ---- Foreign :…………………………….. d) Date of clearance of pre qualification by Bank

Signature…………………..

Designation…………….. Date ………………. * To be filled for ICB contract only

to representatives of eligible countries? : …………………………….

rd

Name……………………

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PROCUREMENT CHECKLIST FOR CONTRACTS ABOVE PRIOR REVIEW THRESHOLD GOODS

AND EQUIPMENT

1. Name of the Project :…………………………………… 2. Procurement Package Number :…………………………………… 3. SAR reference : …………………………………..

15.

4.Description of Goods : …………………………………… 5.Estimated cost of Goods : Rs.…………………………Lakhs 6. Stipulated time of completion : …………………………( in months) 7.Type of Contract : …………………………………. 8. Whether the Bank cleared bidding document ? If yes, Give reference] : …………………………………… 9. Date of invitation of bids : …………………………………… 10.When the bid notice was sent to representatives of member-countries : ………………………………….. 11.When the bid notice was published in UNDB? : …………………………………..

12.Publicity : : 1……………………………….. (national press-name and date : 2 ………………………………. of publication) : 3………………………………….

13. Dates when the bidding documents were made available for sale (ICB-45 to 90 days/ LCB-30 to 90 days : From…………To…………………

14. Number of bidding documents

purchased by prospective bidders ---Domestic : …………………………………… ---Foreign : …………………………………….

Pre bid conference held on (Schedule it at about 2/3 rd

of bidding time) : ………………………………….. 16. Date of clearance of pre bid

conference minutes by the Bank : ……………………………………. 17. Last date of receipt and date of opening

of bids (both should be the same) : …………………………………….. 18. Number of bids received : ……………………………………..

---Domestic : …………………………………….. ---Foreign : ……………………………………..

19. Date of clearance of Award by the Bank : ……………………………………. (No Objection cable)

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20. Award amount as cleared by the Bank : Currency Amount ………… .………….. 21. Amount of contract* : Currency Amount …………. ……………..

23. Contract number : ……………………………… 24. Name and Nationality of the supplier : ……………………………… 25. Whether the contract includes price adjustment clause? : Yes/No

26. Date of start : ……………………………..

27. Stipulated time of completion : …………………………….. 28. Performance security

a) Amount in the currency of contract : ………………………………% b) Warranty period : ………………………………

warranty period : ……………………………… d) Has the successful bidder furnished the : ………………………………

performance security in an acceptable form in the specified currency as stipulated in the bidding document valid as required?

Indicate i) Form : ………………………….. ii) Amount : ………………………….. iii) Validity : …………………………… (Attach a copy of the instrument)

conformed copy of contract (contract, along …………………………….. with the checklist should be forwarded to the …………………………….. Bank within ten days of signing of agreement) ………………………………

30. Any other remarks (attach sheet, if necessary) :……………………………….

22. Date of signing of the agreement : ………………………………

c) Stipulated time of completion plus

29. Reasons for delay, if any, in forwarding the ;……………………………..

Signature……………………. Name……………………….

Date ………………..

Designation………………..

____________________________________________________________________________ *Clarify reasons for variations if any from the value as cleared by the Bank vide S.No. 20.

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Format for seeking Bank’s Clearance for increase in Contract value beyond 15% of the original contract value as well as for granting

extension of the stipulated time for performance of the contract (For all Agreement valued $ 200,000 and above as amended)

Credit/Loan No. : 4161-IN and 4162-IN Name of the project : National Agricultural Innovation Project Sub Project : 1. WBR No. :……………………………………….. 2. Contract No. (Agreement) : ……………………………………….

3. Name of Contractor : ………………………………………. 4. Description of work : ……………………………………….

5. a) Original Contract Value : ……………………………………….

b) Anticipated increased contract value as of date : ……………………………………….

6. Bank’s no objection to the contract : ………………………………………. communicated on

7. A) Completion date as per contract : ………………………………………. b) Completion date as revised now c) Expected date of completion : ……………………………………….

8. Amount of increase in contract value anticipated % w.r.t original contract value : ………………………………………

9. Breakup for the increase in value of : ……………………………………… contract due to : a) Price Adjustment :……………………………………… b) Extra items :……………………………………… c) Variation in Quantities :……………………………………… d) Contract or Claims : ……………………………………..

i) Arbitration :………………………………………. ii) Other reasons :……………………………………….

10. Comments on reasons for the increase : ………………………………………

performance.

Total

in contract value as well as reasons for ……………………………………… Extension of the stipulated time for ………………………………………

(use additional sheet where necessary) Chief Engineer ……………….. Superintending Engineer …………… ……………………………… …………………………………………

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PROCUREMENT CHECKLIST FOR POST-AWARD REVIEW OF CONTRACTS

For Civil Works

1. General : .1.1 Name of project :……………………………. 1.2 Procurement Package Number :……………………………. or SAR Reference

1.3 Description of works :……………………………

1.4 Estimated cost of works :Rs…………………. ………. Lakhs 1.5 Stipulated period of completion : ……………[in months(including Non-working seasons) from the date of award]

1.6 Whether the method of procurement : Yes/No ii) NCB

project Agreement :

2 Bidding Document :

2.1 Whether bidding document used for : Yes/No this work is according to the standard

2.2 If no, list the deviation from standards : 1………………………….

: 2. ……………………….. : 3…………………………

2.3 Whether Packages and slices procedure : Yes/No has been adopted? If so, have you suitably

evaluation bids. 2.4 Whether price adjustment clause provided? : Yes/No (Provide when period of completion is more than 18 months) Ensure that total percentage of labour Percentages

if R in the formula represents net value of work done ……….. ………. ………. 2.5 Whether bill of quantities and specifications : Yes/No properly checked? (Provide schedule of quantity for each slice separately and also one schedule for the combined work, i.e.,

document). 2.6 bid Security :

a)Whether the guidelines have been followed : Yes/No in fixing the Bid Security? If not, give reasons

b)What is the percentage/amount :……………………………. (No exemption should be permitted :……………….%…….Rs…….

adopted is in accordance with the :

model cleared? CWC or Bank’s SBD)

modified the clause for submission and

contractor’s materials and POL equals 100, : Labour Materials POL

for the package group in the bidding

to any class of bidders) Rupees…………………………..

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2.7 Whether any preference on price or other : Yes/No conditions allowed in the bidding document/award for any bidder or class of bidders? If yes, list the preferences. (No preferential treatment should be given to any bidder or class of bidders either for prices or for conditions unless specifically with the Bank and stipulated in the Project Agreement). 2.8 Does the bidding document provide

for advances? If, so give details. : Yes/No What is the interest rate on advances? : ………………………………%

2.9 A) What is the performance security specified : Initial Percentage Total not in bidding document (value M) Deduction exceeding

from bills (%) ………… ……….. ……………..

2.10 Cost of bidding document : Rs………………….. 3.0 BID INVITATION AND ISSUE OF BIDDING DOCUMENTS :

3.1 Whether the bids for this work were rejected previously and are being reinvented

Bank’s prior consultation-ref. para 2.60 or Procurent

(b) Sale period should generally be 30 : from… to…………… to 90 days; if not, specify reason

the bank? When?

5.0 SALE AND RECEIPT OF BIDDING DOCUMENTS:

Bidder? (Give rank lowest, or second lowest or third Lowest, etc. Award should be made to the lowest responsive bidder)

6.2 Give reasons for ignoring lower offers if the

If yes, whether Bank’s clearance was obtained? : Yes/No Give reference (Bids should not be rejected without

Guidelines) Date of invitation of bids :…………………………… 3.3 Publication of NIT. : 1…………………………. (give names of national newspapers and date of : 2…………………………… publication) : 3 …………………………… 3.4 (a) dates when bidding documents were made available for sale;

4.0 PRE BID CONFERENCE 4.1 Date of pre-bid conference :…………………………….

(Schedule it at about 2/3 of bidding time) rd

4.2 Whether pre-bid minutes were cleared with : Yes/No………………..

4.3 any amendment issued after pre-bid conference? : Yes/No……………………………

5.1 Last date of receipt of bids and the date :………………………. of opening of bids.

Both should be the same) 5.2 No. of documents purchased by :………………………..

prospective bidders 5.3 No. of bids received : ……………………….

6.0 Evaluation : 6.1 Has award been made to the lowest responsive : Yes/No

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lowest bidder Is not awarded.

6.3 a) Has the bidder who has been awarded the contract : Yes/No furnished information about his capability and financial response to stipulation made in ITB?

B) Are you satisfied that he has the appropriate :…………………………….. Standards Of capability and financial resources :……………………………..

of information furnished? Comment briefly. :………………………………

c) Does he meet the minimum criteria for qualification, : Yes/No

Minutes of pre-bid conference were circulated to all prospective bidders?

6.5 Is the award to the lowest responsive bidder conditional? : Yes/No (refer Para 2.58 of Procurement Guidelines)

opening of bids? If yes, whether Bank’s clearance : ………………………….

6.7 Whether the award was made within the original : : Yes/No

i) If not, list the reasons for delay :………………………….

a) date of opening :…………………………. b) date of award :…………………………..

ii) If extension of bid validity was sought, : Yes/No

lowest alone?

iii) Was the period of extension exceeded 8 weeks? : Yes/No

7.0Award of Contract:

7.2 Date of award of contract :……………………………… 7.3 Date of signing of contract :…………………………….. 7.2 Contract value as awarded : Rs………………………….

7.4 Date of start of work : ……………………………..

8 PERFORMANE SECURITY : 8.2 Defects liability period : ……………………………months

8.4 Has the successful bidder furnished :Yes/No

form in various currencies,

to execute the work As required on the basis :………………………………

if any, specified in the bidding document? 6.4 Does the recommendation for award confirm that : Yes/No

6.6 Were any negotiations held with the bidders after :…………………………..

was obtained before holding Negotiations and when? :………………………….. If Bank’s clearance was not obtained why? (Bank does not favor any negotiations.)

bid validity?

Was that form all bidders and not from the

iv) If affirmative, was Bank’s clearance obtained ? : Yes/No

v) If Yes, indicate date of clearance. : ……………………………..

7.1 Name of contractor :………………………………….

7.3 number and date : ……………………………..

7.5 Stipulated time of completion of work :………………………………

8.3 Validity as required :…………………………….months

performance security in an acceptable

In accordance with conditions of contract? If so, indicate

a) Amount and currencies in proportion : Rs………………………………… to the currencies of payment

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b) Form :………………………………………

(Performance security should remain

of the instrument.)

iii) Note leading to recommendations for :Yes/No

Contract agreement. (The agreement should be :………………………………..

Days of signing of the agreement with all the enclosures).

12. Has the letter of appointment to Dispute : Yes/No

Designation……………….. Date : ……………………

c) Validity :………………………………………

valid as required – Attach a copy

9 ENCLOSURES: 9.2 Have the following been enclosed?

i) Minutes of pre-bid meeting : Yes/No ii) Complete item rate comparative statement : Yes/No

The award (evaluation report) iv) One conformed copy of agreement : Yes/No

10. Reasons for delay, if any, in forwarding the :………………………………..

Forwarded for post review by the Bank within ten :……………………………….

11. GENERAL (Any other relevant information concerning :……………………………….. the above procurement) :……………………………….

Review Board members/adjudicator been issued?

Signature………………….. Name………………………

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PROCUREMENT

CHECKLIST FOR POST-AWARD REVIEW OF CONTRACTS FOR GOODS AND EQUIPMENT

1. General

Is in accordance with the project agreement 2. BIDDING DOCUMENT 2.1 Whether bidding document used for this work : Yes/No

Is according to the standard model? 2.2 If no, list the deviations from standards : : 1…………………………

2………………………… 3………………………….

2.3 Whether price adjustment clause provided? : Yes/No (Provide when period of completion is more than 18 months)

2.4 Bid Security a) Whether the guidelines have been followed : Yes/No

In filling the Bid Security? If no, give reasons :……………………………… b) What is the percentage/amount?

(No exemption should be permitted to any :………….%………….Rs……. bidder or any class of bidders)

2.5 Whether any preference on price or other conditions : Yes/No Allowed in the bidding document/ award to any Bidder or class of bidders?

(No preferential treatment should be given to any bidder

specifically cleared with the Bank and stipulated in the project agreement)

2.6 Does the bidding document provide for advances? : Yes/No If so, give details. : …………………………….. What is the interest rate on advances? :………………………………

2.7 Specified performance security in the :………………………….. Bidding document Percentage : …………………………..%

2.8 Cost of bidding documents : Rs………………………… 3. BID INVITATION AND ISSUE OF BIDDING DOCUMENTS: 3.1 Whether the bids for this item(s) were previously :Yes/No

Rejected And are being reinvented? If yes, whether Bank’s clearance Was obtained? Give reference (Bids should not be rejected without Bank’s prior consultation-ref. para 2.60 of Procurement Guidelines)

3.2 Date of invitation of bids : …………………………… 3.3 Publication of NIT : 1…………………………..

(give names of national newspapers and : 2…………………………..

1.1 Name of Project :……………………………….. 1.2 Procurement package number or SAR Reference :……………………………….. 1.3 Description of Goods :………………………………… 1.4 Estimated cost of Goods :Rs………………………Lakhs 1.5 Stipulated period of completion :………………………. in months 1.6 Whether the method of procurement adopted : i) Yes/No ii) ICB/LCB

If, yes, list the preferences.

or class of bidders either for price or for conditions unless

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publication) : 3………………………….. 3.4 Dates when bidding documents were made :from………….to…………..

Available for sale (should generally be 30 to 60 days; if not specify reasons?)

4.1 date of pre-bid conference :……………………………

(Schedule it at about 2/3rd of bidding time)

responsive bidder who satisfies the minimum

4. PRE-BID CONFERENCE

4.2 Whether pre-bid minutes were cleared with the :Yes/No Bank? If yes, when?

4.3 Was any amendment issued after pre-bid : Yes/No Conference?

4.4 Whether minutes of pre bid conference and : Yes/No Amendment transmitted to all the prospective Bidders.

5. SALE AND RECEIPT OF BIDDING DOCUMENTS

5.1 Last date of receipt of bids and the date of :……………………………. Opening of bids (both should be the same)

5.2 No. of documents purchased by prospective bidders :……………………………. 5.3 No. of bids received :……………………………. 6.0 EVALUATION: 6.1 Has award been made to the lowest : Yes/No

qualification criteria specified in the bidding document (Give rank lowest, or second lowest or third lowest, etc.) 6.2 Give reasons for ignoring lower offers if the :……………………………

Lowest bidder is not awarded 6.3 Are you satisfied that he has the appropriate :…………………………………

Standards of capability and financial resources to :…………………………………

Execute the supply as required on the basis of :…………………………………. Information furnished? Comment briefly

6.4 Is the award to the lowest responsive bidder :Yes/No Conditional? (Refer Para 2.58 of Procurement Guidelines)

Opening of bids? If yes, was Bank’s clearance Obtained before negotiations and when? (Bank does not favour negotiations)

6.6 Whether the award was made within original : Yes/No

bid validity?

i) If no, list all reasons for delay and give :………………………………. (a) date of opening :………………………………

ii) If extension of bid validity was sought, Was that from all bidders and not from the lowest alone?

iii) Was the period of extension exceeded 8 weeks? : Yes/No iv) If affirmative, was Bank’s clearance obtained? : Yes/No v) If Yes, indicate date of clearance : Yes/No

6.5 Were any negotiations held with the bidders after : Yes/No

(b) date of award :………………………………

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7.0 AWARD OF CONTRACT 7.1 Name of supplier :……………………………….

7.3 Contract value as awarded :Rs……………………………

8.1 Specified warranty period :…………………….. months

8.3 Has the successful bidder furnished : Yes/ No

(Attach copy of instrument)

the above procurement)

Name …………………………….

7.2 Date of award of contract :……………………………….

7.4 Contract number and date :………………………………. 7.5 Date of start :………………………………. 7.6 Stipulated time of completion : ………………………………

8 PERFORMANCE SECURITY

8.2 Validity as required : …………………… months

Performance Security in an acceptable form in specified currency As per conditions of contract as required?

a) Amount in the currency of the contract : …………………………….. b) Form :……………………………..

c) Validity :……………………………..

9.0 ENCLOSURES

i) Minutes of pre-bid meeting : Yes/No ii) Completion item rate comparative statement : Yes/No iii) Note leading to recommendations for the

Award(evaluation report) :Yes/No iv) One conformed copy of agreement : Yes/No

agreement. (The agreement should be forwarded for :………………………………… post review of the Bank within ten days of signing :…………………………………. of the agreement with all the enclosures) 11. GENERAL (Any other relevant information concerning : ……………………………….

If so, indicate.

9.1 Have the following been enclosed?

10. Reasons for delay, if any, in forwarding the contract : ………………………………..

Signature …………………………

Designation………………………. Date …………………….

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FORCE ACCOUNT

Form I-B

Name of Project : Year Credit Loan/No.: Month : Value permissible under national shopping as per Project Agreement : Rs……………..

VALUE OF WORKS EXECUTED ON FORCE ACCOUNT Name of Sub-Project From the beginning of

credit upto the end of previous (Rs.)

During the month under reporting (Rs.)

Total to the end of month under reporting (col 2+3) (Rs.)

(1) (2) (3) (4)

TOTAL FOR PROJECT

Signature:…………………….

Name & designation …………

Date :………….

Note : Item-Wise details should be included in Form IA only.

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NATIONAL SHOPPING

Name of Project : Year :

FORM 1-C

Credit Loan/No. Month:

Value permissible under National Shopping as per Project Agreement : Rs. …………

VALUE OF ITEMS PROCURED UNDER NATIONAL OR INTERNATIONAL SHOPPING Name of Sub-Project From the beginning of

credit upto the end of previous (Rs.)

During the month under reporting (Rs.)

Total to the end of month under reporting (col 2+3) (Rs.)

(1) (2) (3) (4)

_____________________________________________________________________________

Signature:……………………. Name & designation …………

Note : Item-Wise details should be included in form IA only.

FORM : N. SHOPPING IC

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HIRING OF CONSULTANCY SERVICES [T] CHECK LIST FOR PRIOR REVIEW OF CONSULTANCY CONTRACTS (to be enclosed along with final contract)

Preparation Services/

4. Whether the terms of reference have been : Yes/No

consultant firms has been drawn and

should indeed be short and prepared

working experience, from meeting their

Give the names of shortlisted consultants.

6. Whether the draft letter of Invitation with : Yes/No

1. Name of Project :

2. Credit/Loan Number :

3. Type of Consultancy Assignment : Pre-investment Studies/

Implementation Services

reviewed and cleared with the Bank ? If yes, give reference

5. Whether a short list of the consultants/ : Yes/No

cleared with the Bank? (The short list

through clients knowledge of consultant/ consultant firms either from various

representatives or from references from other clients, Bank, etc. Normally this should not be less than three and more than six .)

draft or contract according to the Standard cleared with the Bank?

7. Whether the draft letter of invitation : Yes/No

If not/reasons thereof

along with contract were reviewed and cleared with the Bank? If yes, give reference 8. Date of invitation of proposals : Yes/No 9. Last date of receipt of technical proposals : Yes/No

10. Whether the technical proposals were : Yes/No evaluated and cleared with the Bank? If yes, give reference. 11. What is the result of evaluation . Give list of consultants with ranking

with the best technically ranked firm and draft contract finalized? If yes, When? Give dates. If the contract is not finalized with the best technically ranked firm, whom has the contract finalized? Give reasons.

(45 to 60 days from date of invitation)

12. Whether the negotiations were held : Yes/No

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13. Whether the draft contract negotiated : Yes/No with the selected firm was reviewed and cleared with the Bank. If yes, When? Give date 14. Name of consultant/consultant firm : ............................................ 15. Date of Award of the contract : ............................................. 16. Date of signing of the contract : Currency/ Amount 17. Contract value as awarded : : .................................................

18. Contract number and date : : .................................................

Designation: ......................................

Date: .........................................

19. Stipulated period of completion : ................................................. 20. Enclosure: (one copy of the final contract with Appendix) Signature: .................................... Name: .....................................

NR/DCM/ls Wednesday, February 24, 1999 m:\pdat\sbd\f&ch\forms\t.doc

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HIRING OF CONSULTANCY SERVICES [U] CHECKLIST FOR POST AWARD REVIEW OF CONSULTANCY CONTRACTS

(to be enclosed with final contract)

1. Name of Project : ………………………………………

3. Type of Consultancy Assignment : Pre-investment Studies/Preparation

2. Credit/Loan Number : ………………………………………

Preparation Services/Implementation Services

4. Whether the terms of reference include the following ? [answer each of the following separately] : Yes/No

v) Final outputs required from the consultant : ………………………………………

reviewed and cleared with the Bank ? If yes,

and other items required for the services]

firms has been drawn and cleared with the Bank ?

Normally, this should not be less than three and

i) Concise statement of objectives : ……………………………………… ii) Outline of tasks to be carried out : ……………………………………… iii) Schedule of completion of tasks : ……………………………………… iv) Support/inputs to be provided by employer : ………………………………………

vi) Review procedures : ………………………………………

5. Whether the terms of reference have been : Yes/No

give reference 6. Whether the cost estimate has been prepared and : Yes/No advised to the Bank ? If yes, indicate value, [cost estimate, or budget, should be based on borrower’s perception of the assignment requirements in terms of level and type of personnel, period to be spent in the field and in the home office, physical inputs

7. Whether a shortlist of the consultants/consultant : Yes/No

[The shortlist should indeed by short and prepared through clients knowledge of consultant/ consultant firms either from various working experience, from meeting their representatives or from references from other clients, Bank, etc.

more than six]

contract is according to the Standard cleared with

Give the names of shortlisted consultants 8. Whether the draft letter of invitation with draft : Yes/No

the Bank ?

If not, reasons thereof : ………………………………………

9. Date of invitation of proposals : Yes/No

10. Last date of receipt of technical proposals : Yes/No [30 to 60 days from the date of invitation]

as per criteria set out in the Letter of Invitation ? 11. Whether the technical proposals were evaluated : Yes/No

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12. What is the result of evaluation ? Give the list : Yes/No of consultants with ranking. 13. Whether the negotiations were held with the best : Yes/No technically ranked firm and draft contract with Appendix finalized ? If yes, when ? Give dates.

technically ranked firm, with whom has the

14. Name of consultant/consultant firm : ………………………………………

15. Date of award of the contract : ………………………………………

………………………………………

Date : ………………………………

NR/ls Wednesday, February 24, 1999

If the contract is not finalized with the best

contract finalized ? Give reasons.

16. Date of signing of the contract : ……………………………………… 17. Contract value as awarded : Currency/Amount

18. Contract number and date : ……………………………………… 19. Stipulated period of completion : ……………………………………… 20. Enclosure [a copy of the final contract with Appendices] Signature : ……………………….. Name : ……………………….. Designation ………………………..

m:\pdat\sbd\f&ch\forms\u.doc

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Annexure 6 to Chapter – XIII

Annexure 6


TABLE OF CONTENTS

FORMATS 1. Notification No. : 84/97 dated 11.11.1997 – Custom Duty

for United Nations Projects 2. Project Authority Certificate for exemption from Custom

Duty

3. Form ‘D’ for Central Sales Tax

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Notification No. : 84/97-Cus DATED 11-11-1997 United Nations - Projects

As amended vide Customs Notification No. 85/99 Cus dated 6-7-99, Customs Notification No. 119/99 dated 2-11-99.

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) read with subsection (4) of section 68 of the Finance (No. 2) Act, 1996 (33 of 1996), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts all the goods imported into India for execution of projects financed by the United Nations or an international organisation and approved by the Government of India, from the whole of the duty of customs leviable thereon under first schedule to the Customs Tariff Act, 1975 (51 of 1975), the whole of the additional duty of customs leviable thereon under section 3 of the said Customs Tariff Act and the whole of the special duty of customs leviable under section 68 of the Finance (No.2) Act 1996 (33 of 1996)[Substituted vide Customs Notification No. 85/99 dated 6-7-99]

Provided that the importer, at the time of clearance of the goods, produces before the Assistant Commissioner of Customs or Deputy Commissioner of Customs, as the case may be, having jurisdiction:-

(a) imported by an international organisation listed in the Annexure appended to this notification and intended to be used in a project that has been approved by the Government of India and financed (whether by a loan or a grant) by such an organisation, a certificate from such organisation that the said goods are required for the execution of the said project and that the said project has duly been approved by the Government of India; or

(b) imported for use in project that has been approved by the Government of India and financed (whether by a loan or a grant) by an international organisation listed in the said Annexure, a certificate from an officer not below the rank of Deputy Secretary to the Government of India, in the Ministry of Finance (Department of Economic Affairs) that the said goods are required for the execution of the said project and the said project has duly been approved by the Government of India;

(i) in case the said goods are –

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(ii) in case the said goods are intended to be used in a project financed (whether by a loan or a grant) by the World Bank, the Asian Development Bank or any international organisation, other than those listed in the Annexure, and the project has been approved by the Government of India, a certificate from the executive head of the Project Implementing Authority and countersigned by an officer not below the rank of a Joint Secretary to the Government of India, in the concerned Line Ministry in the Government of India, that the said goods are required for the execution of the said project and that the said project has duly been approved by the Government of India, and

(iii) in case the said goods are intended to be used in a project financed

(whether by a loan or a grant) by the World Bank, the Asian Development Bank or any international organisation, other than those listed in the Annexure, and the said project has been approved by the Government of India for implementation by the Government of a State or a Union Territory a certificate from the executive head of the Project Implementing Authority and countersigned by the Principal Secretary or the Secretary (Finance), as the case may be, in the concerned State Government or the Union Territory, that the said goods are required for the execution of the said project, and that the said project has duly been approved by the Government of India for implementation by the concerned State Government; [Substituted vide Customs Notification dated 2-11-99] [Substituted vide Customs Notification dated 6-7-99]

No. 119/99 No. 85/99

Explanation For the purposes of this notification,-

(a) "international organisation" means an international organisation to which the central Government has declared, in pursuance of section 3 of the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947), that the provisions of the Schedule to the said Act shall apply;

(b) "Line Ministry" means a Ministry in the Government of India, which has been so nominated with respect to a project, by the Government of India, in the Ministry of Finance (Department of Economic Affairs)". [Substituted vide Customs Notification dated 6-7-99]

No. 85/99

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ANNEXURE

(Above Sl. No. 8 has been added vide

1. United Nations Development Progremme, 2. United Nations International Childrens' Fund, 3. Food and Agricultural Organisation, 4. International Labour Organisation, 5. World health Organisation,

7. United Nations World Food Programme.

Cus. Ntf. No. 107/2001, Dt. 12/10/2001.)

(Above Sl. No. 7 has been added vide Cus. Ntf. No. 75/2001, Dt. 06/07/2001.)

[Annexure has been added vide Customs Notification No. 119/99 dated 2-11-99]

6. United Nations Population Fund

8. United Nations Industrial Development Organisation.

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No. : .______________________________ Date: ______________

[COMPLETE ADDRESS OF ISSUING AUTHORITY]

PROJECT AUTHORITY CERTIFICATE. (To be used for Custom Duty Exemption)

I, _________________________(Designation)____________ am duly authorised to issue the Project Authority Certificate. I hereby certify that M/s _______________ have been awarded a contract for supply of goods of value, quantity and description mentioned below for total value of ____________________________ against Form 'D' for Contract No. ___________________________________

(a) Supplies under the Contract No. _____________________________________ is to be made in India to a Project financed by International Development Association (IDA), Credit No. 4161-IN & 4162-IN, which has been notified by the Department of Economic Affairs, Ministry of Finance and the same is under the procedure of International competitive bidding system in accordance with the procedure of the above mentioned Fund/agency, legal agreement of which provides for tender evaluation without including the customs duty and that the import content of the order is [Amount] for manufacturing [Goods name] in India.

2. It is further certified that the contract No. ___________________ in respect

of National Agricultural Innovation Project (NAIP) has been awarded to M/s [supplier’s name] as the Indian main Contractor. The contract does not include name of any sub-contractor.

PARTICULARS OF SUPPLIES TO BE MADE:

No. Description of

item. Quantity in

Nos Value of

goods to be supplied in Rs.

Total

3. It is also certified that no other similar certificate to any other party has been

granted for the same supplies detailed above, under the same contract referred to above.

(Name) National Director


Dept. of Agricultural & Education,

Counter Signed by

[duly sealed with signed]

Indian Council of Agricultural Research,

Ministry of Agriculture, Govt. of India

(Name)

above rank of Govt. of India,]

It is further certified that: -

Sch. Value of

Import content

[Joint Secretary or

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No. : .______________________________ Date: ______________

[COMPLETE ADDRESS OF ISSUING AUTHORITY]

PROJECT AUTHORITY CERTIFICATE.

Contract No. ][Supplier’s Name]

2. The said Project has been financed by the World Bank under Credit No.

4161-IN & 4162-IN and that the project has been duly approved by Government of India.

3. The goods covered by the said contract are exempt from payment of Excise

Duty in terms of Central Excise Notification No. 108/95 Central Excise dated 28.08.95 and No. 7/98- Central Excise dated 02.06.98 of Central Excise and Salt Act, 1944.

(Name) (Name) [Joint Secretary or National Director above rank of Govt. of India,] National Agricultural Innovation Project [duly sealed with signed] Indian Council of Agricultural Research,

Govt. of India

(For the purpose of availing Excise Duty Exemption)

1. This is to certify that the goods consisting of [ ordered by [name

Ordering authority] on behalf of Indian Council of Agricultural Res. (I.C.A.R), Dept. of Agril. Res. & Edu., Ministry of Agriculture, New Delhi vide their Notification of Award No. [ for Rs against Form 'D' on M/s India are required for execution of National Agricultural Innovation Project (NAIP).

Good’s name]

_______ (in words)

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The Central Sales Tax (Registration & Turnover) Rules, 1957

Form of Certificate for making Govt. Purchases

[See Rule 12 (1)] (To be used when making purchases by Government not being a registered dealer)

Name of the issuing Ministry/Department: Indian Council of Agricultural Res., Dept. of Agril. Res. & Edu., Ministry of Agriculture, New Delhi

Name and address of office of issue: I.C.A.R., Govt. of India, National Agricultural Innovation Project, 5th Floor, KAB-II, Pusa, New Delhi – 12

M/s [Supplier’s name and address]

[goods name]

Signature

Seal of the duly Authorised Officer of the Government

DUPLICATE FOIL

The Central Sales Tax

(Registration & Turnover) Rules, 1957


[See Rule 12 (1)]

Name and address of office of issue: I.C.A.R., Govt. of India, National Agricultural Innovation Project, 5 Floor, KAB-II, Pusa, New Delhi – 12

th


[goods name]

Signature Designation: For & on behalf of I.C.A.R., Dept. of Agriculture & Education, Ministry of Agriculture, Govt of India Seal of the duly Authorised Officer of the Government

ORIGINAL FOIL

The Central Sales Tax

(Registration & Turnover) Rules, 1957 FORM D


(To be used when making purchases by Government not being a registered dealer) Central Government/Name of the State Government: Central Government Name of the issuing Ministry/Department: Indian Council of Agricultural Res., Dept. of Agril. Res. & Edu., Ministry of Agriculture, New Delhi


Certified that the goods [goods name] ordered for in our purchase order No.

Quantity _______ purchased from you for Rs_________

Signature

Seal of the duly Authorised

COUTERFOIL

FORM D

To

Certified that the goods

Central Government/Name of the State Government: Central Government

For & on behalf of I.C.A.R., Dept. of Agriculture & Education, Ministry of Agriculture, Govt of India

FORM D

(To be used when making purchases by Government not being a registered dealer)

State Gov

Name of the issuing Ministry/Department: Indian Council of Agricultural Res., Dept. of Agril. Res. & Edu., Ministry of Agriculture, New Delhi

To

[See Rule 12 (1)]

For & on behalf of I.C.A.R., Dept. of Agriculture & Education, Ministry of Agriculture, Govt of India

Officer of the Government

ordered for in our purchase order No. [Contract no. & date] Quantity _______ purchased from you for Rs_________

Designation:

Central Government/Name of the ernment: Central

Government

Certified that the goods

ordered for in our purchase order No. [Contract no. & date] Quantity _______ purchased from you for Rs_________

To

Name and address of office of issue: I.C.A.R., Govt. of India, National Agricultural Innovation Project, 5th Floor, KAB-II, Pusa, New Delhi – 12

[Contract no. & date]

Designation:

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