selection of contractor - pq and post q

8/20/2019 Selection of Contractor - PQ and Post Q

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Selection of Contractor –Selection of Contractor –Prequalication and postPrequalication and post

qualicationqualication

Prepared and Presented by:

Prof. Khem Dallakoti


2/13

Pre-qualicationPre-qualication

ADB’s Procurement Guidelines require prequalicationfor large or complex wors contracts! or in an" ot#ercircumstances in w#ic# t#e #ig# costs of preparingdetailed $ids could discourage competition! suc# ascustom-designed equipment! industrial plant!

speciali%ed ser&ices! some complex information andtec#nolog" contracts and contracts to $e let underturne"! design and $uild! or management contracting'

Prequalication is followed $" a closed competiti&e$idding procedure in w#ic# onl" t#ose rms meeting

specied prequalication criteria are in&ited to su$mita $id' Prequalication s#ould not $e used for limitingcompetition to a predetermined num$er of potential

$idders' All applicants meeting t#e specied criteria

s#all $e allowed to $id'


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Requirement forRequirement for

prequalicationprequalication (#e successful execution of contracts for large $uildings! ci&il engineering! suppl" and

installation! turne"! and design-and-$uild pro)ects requires t#at contracts are awardedonl" to rms! or om$inations of rms! t#at are suita$l" experienced in t#e t"pe of worand construction tec#nolog" in&ol&ed! t#at are nanciall" and manageriall" sound! andt#at can pro&ide all t#e equipment required in a timel" manner' (#e assessment $" animplementing agenc" of t#e suita$ilit" of rms to carr" out a particular contract prior tobeing invited to submit a bid is a process called prequalication.

Prequalication is followed $" a closed competiti&e $idding procedure in w#ic# onl" t#ose

rms meeting specied prequalication criteria are in&ited to su$mit a $id' Prequalications#ould not $e used for limiting competition to a predetermined num$er of potential$idders' All applicants meeting t#e specied criteria s#all $e allowed to $id'


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Benets ofBenets of

PrequalicationPrequalication t#e process ena$les prospecti&e $idders! w#o ma" $e insu*cientl" qualied on t#eir own!

to a&oid t#e expense of $idding! or to form a )oint &enture t#at ma" gi&e a $etter c#anceof success+

wit# prequalication! well qualied rms will price t#eir $ids wit# t#e nowledge t#at t#e"are competing against ot#er qualied $idders meeting realistic minimum competencecriteria! and wit# t#e assurance t#at inadequatel" qualied competitors will $e excludedfrom su$mitting unrealisticall" low $ids! leading contractors are encouraged to $id+

prequalication ena$les ,xecuting Agencies to assess t#e interest from qualied rms

generated $" t#e contract and! in t#e e&ent t#at onl" a limited num$er of applications arerecei&ed! to mae an" necessar" ad)ustments in t#e procurement process+

it #elps to expose potential conicts of interest of an applicant wit# ot#er parties in&ol&edin t#is prequalication process+

it reduces t#e amount of wor and time in&ol&ed $" ,xecuting Agencies in e&aluating $idsfrom unqualied contractors+

it encourages local rms to form )oint &entures wit# ot#er local or international rms!

t#ere$" $eneting from t#eir resources and experience+ . /ntroduction 0ser’s GuidePrequalication of Bidders ADB Standard Prequalication Document

it ena$les t#e ,xecuting Agencies to assess t#e lieli#ood of contractors’ eligi$ilit" for

domestic $idder price preference in $orrowing countries w#ere t#is is applica$le+ and

it reduces signicantl"! if not eliminates! pro$lems of re)ection associated wit# low-priced$ids su$mitted $" $idders of dou$tful capa$ilit"'


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Disadvantages ofDisadvantages of

PrequalicationPrequalication sc#eduling! for example! undertaing t#e prequalication process

w#ile $id documents are $eing prepared+

1 t#e ,xecuting Agencies are required to re&iew all prequalicationapplications w#ereas under postqualication t#e re&iew of t#equalications can $e reduced to t#e lowest e&aluated $idder onl"+and

1 collusion and t#e possi$ilit" of price-rigging is easier among alimited num$er of identied $idders! particularl" if t#e" are of t#esame nationalit"


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The PrequalicationThe Prequalication

ProcessProcessAdvertisement and NoticationPreparing and Issuing aPrequalication Document

Preparation and ubmission ofApplications

!pening and "valuation of

Applications#pdating and $onrmation ofBidder%s &ualications


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Advertisement andAdvertisement and

NoticationNotication (#e /n&itation for Prequalication 2/3P4 s#all $e ad&ertised in ADB’s

5ADB Business 6pportunities7 as well as in a newspaper of generalcirculation in t#e $orrower’s countr" 2at least one ,nglis#-languagenewspaper if a&aila$le4'

A cop" of t#e /3P s#all $e su$mitted to ADB for appro&al and forpu$lication in t#e 5ADB Business 6pportunities7 in accordance wit#

t#e pro&isions of t#e 8oan Agreement and t#e Guidelines forProcurement under ADB 8oans'

3or large or speciali%ed contracts! ADB ma" additionall" require t#att#e /3P $e ad&ertised in well-nown tec#nical maga%ines or tradepu$lications! or in newspapers of wide international circulation! insu*cient time to ena$le prospecti&e Bidders to prepare and su$mit

Applications'


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Preparing and Issuing aPreparing and Issuing a

PrequalicationPrequalication

DocumentDocument (#e ,mplo"er is responsi$le for preparing and issuing t#e Prequalication

Document'

(#e ,mplo"er s#all use ADB’s Standard Procurement Document for t#ePrequalication of Bidders! as t#is is a mandator" requirement for contracts

to $e nanced $" ADB'

(#e ,mplo"er s#all prepare t#e Prequalication Document using t#e

pu$lis#ed &ersion of t#e SPD wit#out suppressing or adding text to ection

I. Instructions to Applicants 'ITA(. All information and data particularto eac# indi&idual prequalication process must $e pro&ided $" t#e ,mplo"erin t#e following sections of t#e Prequalication Document9

◦ ection II. Application Data heet

◦ ection III. &ualication $riteria

◦ ection I). Application *orms

◦ ection ). "ligible $ountries

◦ ection )I. cope of $ontract.

(#e ,mplo"er s#all allow Applicants a minimum period of :. da"s to

◦ – stud" t#e Prequalication Document+

◦ – prepare complete and responsi&e Applications! and

◦ – su$mit t#eir Applications'


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Preparation andPreparation and

ubmission ofubmission of

ApplicationsApplications (#e Applicant is solel" responsi$le for t#e preparation andsu$mission of its Application' During t#is stage! t#e,mplo"er s#all

promptl" respond to requests for clarications fromApplicants and amend! as needed! t#e Prequalication

Document! amend t#e Prequalication Document onl" wit# t#e prior

appro&al of ADB'


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!pening and "valuation!pening and "valuation

of Applicationsof Applications (#e ,mplo"er is responsi$le for t#e opening and e&aluation of applications!

w#ic# is a critical e&ent in t#e prequalication process' (#e ,mplo"er s#allappoint experienced sta; to conduct t#e e&aluation of applications'


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#pdating and#pdating and

$onrmation of Bidder%s$onrmation of Bidder%s

&ualications&ualications/nformation pertaining to a $idder’s eligi$ilit"! pending litigation! and

nancial situation s#all $e updated during $idding' Additionalqualif"ing requirements not examined during prequalication suc#as

current contract commitments+

cas# ow capacit"+

equipment to $e allocated for t#e particular contract+ and

personnel to $e elded for t#e particular contract!

s#all form part of t#e $idding document and will $e assessed during$id e&aluation'


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Post qualicationPost qualication

3or t#e procurement of simple and unsop#isticatedwors contracts t#e ,mplo"er ma" appl" post-qualication $" requiring $idders to su$mit t#einformation pertaining to t#eir qualication toget#erwit# t#eir $ids' /n t#is e&ent! it will $e necessar" to

ensure t#at a $idder’s ris of #a&ing its $id re)ectedon grounds of qualication is remote if due diligenceis exercised $" t#e $idder during $id preparation'

3or t#at purpose! clear-cut! fail-pass qualicationcriteria need to $e specied $" t#e ,xecuting Agenc"

in $ot# t#e /n&itation for Bids as well as t#e BiddingDocument in order to ena$le $idders to mae aninformed decision w#et#er to pursue a speciccontract and! if so! eit#er as a single entit" or in )oint&enture'


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