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For an effective procurement process

5 rules for procurement plan; 2 key details; 2 types of reviews; 2 Procurement categories; 11 procurement stages

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5 rules for procurement plan (PPM)

  1. Use the most suitable standard structure
  2. Ensure consistency of procurement plan with AWPB
  3. Ensure compliance of procurement methods with purchasing actions, grant or loan agreements
  4. Plan (upstream and downstream) reviews
  5. Plan realistic estimates.

2 key details

  1. The procurement plan (PPM) should provide an eighteen (18) month visibility.
  2. The PPM should be updated at least once a year and whenever an event jeopardizes the realistic estimate deadlines.

2 types of reviews: upstream reviews and downstream reviews

  1. For upstream reviews, comply with the PPM instructions;
  2. For downstream reviews, have an archiving plan; archiving and storing projects based on archiving plan.

2 requirements: effectiveness and efficiency

  1. Effectiveness: complete the project
  2. Efficiency: complete the project in compliance with all contract commitments (quality, cost, timeline).

2 Procurement categories: works, goods, equipment, non intellectual service provision, and selection of consultants

- Works, goods, equipment and non intellectual service provision: 6 methods

  1. International competitive bidding (AOIO)
  2. Limited international competitive bidding (AOIR)
  3. Local competitive bidding (AON)
  4. International shopping (CFEI)
  5. Local shopping (CFEN)
  6. Direct contracting

- Selection of Consultants: 8 methods

  1. Quality and cost based selection
  2. Technical quality based selection
  3. Consultants’ skill based selection
  4. Least cost selection
  5. Selection based on fixed budget
  6. Selection based on consultants qualifications
  7. Selection of individual consultants

8. Selection of sole source

11 procurement stages (Selection of consultants)

  1. Development of terms of reference (TOR)
  2. Call for expression of interest
  3. Preparation of the short list
  4. Invitation and handing of proposal application
  5. Reception and opening of technical bids
  6. Evaluation of technical proposals and preparation of technical bid evaluation report
  7. Opening of financial bids
  8. Evaluation of financial bids and preparation of technical and financial bid consolidated report
  9. Notification
  10. Contract negotiation
  11. Signing of contract

8 procurement stages (Acquisition of works, assets, and non intellectual services)

  1. Preparation of bid documents
  2. Publication of call for tender: notice of call for tender
  3. Handing of bid documents to applicants
  4. Reception and processing of bids
  5. Preparation of bid processing report
  6. Procurement commission
  7. Notification
  8. Signing of contract

3 Key tools

  1. Manual of Procedures
  2. Start up workshop
  3. PPM/AWPB

Paralleling the 2 categories of purchasing

Selection of consultantsPurchasing of assets, works, and non intellectual services
Preparation of TORs Preparation of specifications or technical requirements
Call for expression of interest Notice of call for tenders
Short list (selective consultation) Open consultation through the media
Invitation and handing of proposal applications Bid documents
Evaluation of technical proposals and preparation of technical bid evaluation report Opening and evaluation of financial bids and preparation of technical and financial bid consolidated report Processing of technical and financial Bids and preparation of evaluation report
Negotiation of contract Notification of fixed price contract
Time contract Unit price contract

3 types of stakeholders

1 June 2010

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