03. CDB SLDF Common Errors & Best Practices.pptx
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The document presents common errors and best practices in the procurement bidding process, highlighting key considerations at various stages including bid preparation and evaluation. It emphasizes the importance of compliance with bidding requirements, timeliness, accuracy, and integrity to avoid rejected bids. Case studies and specific examples illustrate the pitfalls faced by bidders and the criteria necessary for successful bid submissions.
03. CDB SLDF Common Errors & Best Practices.pptx
- 1. Christine P. Mohammed & Brandon Antoine PRESENTATION PROCUREMENT FAIR Common Errors and Best Practices during the Bidding Process - with Case Studies Operations Officer (Procurement), St. Lucia Development Fund Caribbean Development Bank
- 2. • Key Principles to Inform Effective Bidding • Considerations for Bid Preparation Stage • Considerations for Bid Opening Stage • Substantial Responsiveness and Material Deviations • Commons Errors Found at Preliminary Examination Stage • Major Deviations found during Detailed Evaluation Stage Resulting in Bid Rejection • Qualification Requirements for the Recommended Bidder • Case Studies PROCUREMENT FAIR | SAINT LUCIA | SEPTEMBER 4 & 5, 2024 TABLE OF CONTENTS
- 3. Key Principles to Inform Effective Bidding PRESENTATION TITLE & DATE PROCUREMENT FAIR | SAINT LUCIA | SEPTEMBER 4 & 5, 2024 Timeliness Accuracy Quality Integrity
- 4. PRESENTATION TITLE & DATE PROCUREMENT FAIR | SAINT LUCIA | SEPTEMBER 4 & 5, 2024 Shortcomings Not obtaining bidding documents directly from the Procuring Entity Failing to read and seek clarification on Bid Requirements Not Attending Site Visits / Pre-Bid Meetings Missing Signatures, Poor Labelling, Presentation & Layout Sanctioned/committing Prohibited Practices, including misrepresentation & Conflict of Interest Late Bid Submissions Consequence s Unsure document is complete, correct and might miss updates like links to virtual pre- bid meetings Requirements not clarified/errors corrected to allow the Bidder to prepare the optimum bid Missed opportunity to see site conditions or ask questions Rejected Bids, difficulty in reading out bids or evaluating Disqualification, Debarment & Discredit to Reputation Rejected Bids Best Practices Request bidding document only from the Procuring Entity Ask for clarification in writing by stipulated time Assign a representative to attend Site Visits & Meetings and take notes Accurate Labelling & Use of templates when provided Taking time to understand Integrity requirements in the bidding document Submit on time Considerations for Bid Preparation
- 5. PRESENTATION TITLE & DATE PROCUREMENT FAIR | SAINT LUCIA | SEPTEMBER 4 & 5, 2024 Shortcomings Unsealed / Unlabelled envelope If submitting electronically, not providing passwords in a timely manner Omission of signatures and Form of Bid, Bid Security / Bid Securing Declaration Raising questions, concerns and commercial information Consequence s Bid submission unidentified and rejected Unable to open bids securely and timely Bid Rejected Information that should not be disclosed at a public forum might compromise the process Best Practices Ensure packages are sealed and correctly labelled Ensure passwords are provided within the stipulated period Sign and submit Letter of Bid, Bid Security / Bid Securing Declaration using template provided by Procuring Entity Follow the procedures set out in the bid document Considerations for Bid Opening Stage
- 6. Substantial Responsiveness and Material Deviations PRESENTATION TITLE & DATE PROCUREMENT FAIR | SAINT LUCIA | SEPTEMBER 4 & 5, 2024 ITB. 29: “A substantially responsive Bid is one that meets the requirements of the Bidding Document without material deviation, reservation, or omission. A material deviation, reservation, or omission is one that: (a) if accepted, would: (i) affect in any substantial way the scope, quality, or performance of the Works’ Requirements as specified in Section VII; or (ii) limit in any substantial way, inconsistent with the Bidding Document, the Employer’s rights or the Bidder’s obligations under the proposed Contract; or (b) if rectified, would unfairly affect the competitive position of other Bidders presenting substantially responsive Bids.”
- 7. PRESENTATION TITLE & DATE PROCUREMENT FAIR | SAINT LUCIA | SEPTEMBER 4 & 5, 2024 • All pages of Bid where entries have been made, shall be signed or initialed by the person authorised to sign the Bid • Particularly important that Letter of Bid signed • Authorisation for the signatory to sign the bid shall form part of the bid • In case of Joint Venture (JV), a copy of JV Agreement or intent to form a Joint Venture not be included Verification • Not conforming to eligibility in accordance with ITB 4.1 to ITB 4.11 and Section V Eligible Countries Eligibility • Unsigned or omission of Bid Security / Declaration in accordance with ITB 19.1 • Format, validity and currency inconsistent with bidding requirements Bid Security / Bid Securing Declaration • Incomplete Bidding Forms under Section IV of the Bidding document Completeness of Bids • Bids that fail Verification, Eligibility, Bid Security, or Completeness of Bids should not be examined further, and not subjected to detailed evaluation Substantial Responsiveness Commons Errors Found at Preliminary Examination Stage
- 8. Material Deviations found during Detailed Evaluation Stage Resulting in Bid Rejection PRESENTATION TITLE & DATE PROCUREMENT FAIR | SAINT LUCIA | SEPTEMBER 4 & 5, 2024 • failure to respond to essential Requirements Technical • requesting that a price adjustment clause be included in the contract, where the Bidding documents require that Bids shall be submitted based on fixed prices • Submitting Abnormally Low Bids Financial • Attempting to subcontract in a substantially different manner or amount than is permitted by the Bidding documents • refusal to accept the purchaser’s country as the law applicable to the contract • refusal to comply with critical provisions in response of such items as taxes and duties or dispute resolution procedures • refusal to bear important contractual responsibilities or liabilities as allocated to the contractor by the Bidding documents, such as insurance coverage Contractual
- 9. Qualification Requirements for the Recommended Bidder PRESENTATION TITLE & DATE PROCUREMENT FAIR | SAINT LUCIA | SEPTEMBER 4 & 5, 2024 • Average Annual Turnover: Evidence of a certain value calculated as total certified payments received from contracts in progress or completed within a last required number of years. • Financial Resources: Evidence of Minimum liquid assets of a required value. Financial Capability • General Experience: Evidence of contracts in the role of contractor, sub-contractor or management contractor for at least a required number of years prior to the Bid submission deadline with activity in for a required period in each year. • Specific Experience: Participated as a contractor, management contractor or subcontractor in at least a given number of similar contracts of at least a similar contract value in size over a last required number of years. Contractor’s Experience • Personnel: CV’s must meet/exceed required experience and academic qualifications for each key role. Key Personnel
- 10. CASE STUDIES PRESENTATION TITLE & DATE PROCUREMENT FAIR | SAINT LUCIA | SEPTEMBER 4 & 5, 2024 • Not: - Seeking Clarification - Attending Site Visits / Pre-bid Meetings - Conducting Market Research • Late Submissions • Omission Of Required Documents • Bid Security/ Bid Securing Declaration Omissions And Modifications • Poor Quality Of Content, Presentation & Layout • Misrepresentation Of Firm / Capability • Financial Issues
- 11. NOT: - SEEKING CLARIFICATION - ATTENDING SITE VISITS / PRE-BID MEETINGS - CONDUCTING MARKET RESEARCH PRESENTATION TITLE & DATE • Opportunities to request clarifications but must be requested, in writing, within the stipulated time frame. • Attention must be paid to procurement notices & deadlines. • Lack of understanding of the scope of work/contractual requirements results in inappropriate technical solutions and inaccurately costed bids • Lack of understanding of the building material required and the availability of the materials from the local supply chain PROCUREMENT FAIR | SAINT LUCIA | SEPTEMBER 4 & 5, 2024
- 12. LATE SUBMISSIONS PRESENTATION TITLE & DATE General: • Pay attention to closing time • No Flexibility with Accepting Late Bids • Procuring entity determines when it is time to open bids Hardcopies: • Bidder responsible for courier inefficiencies E-Submissions: • File Size • Bidder responsible for corrupt files/files rejected by virus/malware scan • Email Time Stamps of procuring entity – time of receipt PROCUREMENT FAIR | SAINT LUCIA | SEPTEMBER 4 & 5, 2024
- 13. OMISSION OF REQUIRED DOCUMENTS PRESENTATION TITLE & DATE PROCUREMENT FAIR | SAINT LUCIA | SEPTEMBER 4 & 5, 2024 • Letter of Bid - No one owns the bid if not provided and not signed Depending on National requirements: • In case of e-submissions, carefully check datasheet requirements in relation to signing since not all countries accept digitally inserted e-signatures Certificates: • Articles of Incorporation or Documents of Constitution, and documents of registration of the legal entity" and "organizational chart, a list of Board of Directors, and the beneficial ownership Non-Bank Financed / National Requirements: • National Insurance documents (good standing) • Inland Revenue documents (good standing)
- 14. BID SECURITY/ BID SECURING DECLARATION OMISSIONS AND MODIFICATIONS PRESENTATION TITLE & DATE • Submit what is requested by the procuring entity • Making changes to the standard templates in bidding document • Using another template other than the standard templates provided in the bidding document • Name of Bidder in Letter of Bid must match the Bid Security/ Securing Declaration form • Value of the bid security • Validity of the timeline (CDB no objection, cabinet no objection, acceptance). PROCUREMENT FAIR | SAINT LUCIA | SEPTEMBER 4 & 5, 2024
- 15. POOR QUALITY OF CONTENT, PRESENTATION & LAYOUT PRESENTATION TITLE & DATE • When preparing a bid, details should be as accurate and precise as possible to prevent further delaying the bid evaluation process • Common Presentation Shortcomings: - No Labels - Illegible Fonts - Faint Ink - Chaotic Layout - Lack of Table of Contents Page • Lack of project specific information provided in the bidder’s technical proposal (generic copy and paste submissions) PROCUREMENT FAIR | SAINT LUCIA | SEPTEMBER 4 & 5, 2024
- 16. MISREPRESENTATION OF FIRM / CAPABILITY PRESENTATION TITLE & DATE • Bidding while sanctioned by a relevant Multilateral Development Bank / UN Security Council. • Committing any Prohibited Practices or not declaring a Conflict of Interest under the procurement process in question. • Key personnel mispresenting their experience /qualifications or not actually being available/aware CV even being used. • Claiming a larger aspect/responsibility in a project for "experience.“ • Claiming financials from "sister" firms/subsidiaries. PROCUREMENT FAIR | SAINT LUCIA | SEPTEMBER 4 & 5, 2024
- 17. FINANCIAL ISSUES PRESENTATION TITLE & DATE • Contractor not pricing items in the BOQ • Understanding the threshold of an abnormally low bid • Stipulating that pricing is subject to adjustment where bidding document says otherwise • Offering in a currency other than that permitted PROCUREMENT FAIR | SAINT LUCIA | SEPTEMBER 4 & 5, 2024
- 18. For more resources see: CDB: www.caribank.org/work-with- us/procurement Guidance Notes: - Guidance Note: Bid Evaluatio n for Goods, Works and Non- Consulting Services - Guidance Note: Assessment of Abnormally Low Bids for Works Contracts PROCUREMENT FAIR | SAINT LUCIA | SEPTEMBER 4 & 5, 2024
- 19. THANK YOU