Appendix 3 guidance to bidders
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This document provides guidance to potential bidders on the Asian Development Bank's procurement process. It outlines that the borrower is solely responsible for procurement, while ADB ensures the process follows agreed procedures. ADB reviews documents and can declare misprocurement if procedures aren't followed. Bidders should carefully review bidding documents for clarity and raise any issues with the borrower. The evaluation process is confidential until contract award is published. Bidders can communicate issues to ADB, but ADB will typically refer them to the borrower for response before the bid submission deadline and only examine communications after bid opening in major procurements.
Appendix 3 guidance to bidders
- 1. Guidance to Bidders Asian Development Bank Procurement Guidelines
- 2. Asian Development Bank Procurement GuidelinesPurpose
- 3. Purpose Para 1. This appendix provides guidance to potential bidders wishing to participate in ADB-financed procurement.
- 4. Asian Development Bank Procurement GuidelinesResponsibility for Procurement
- 5. Responsibility for Procurement Para 2. The responsibility for the implementation of the project, and therefore for the payment of goods, works, and services under the project, rests solely with the borrower. ADB, for its part, is required by its Charter to ensure that funds are paid from ADB financing only as expenditures are incurred. Disbursements are made only at the borrower’s request.Supporting evidence that the funds are used in accordance with the financing agreement and/or the procurement plan shall be submitted with the borrower’s withdrawal application.
- 6. Responsibility for Procurement Para 2. Payment may be made to reimburse the borrower for payment(s) already made from its own resources, directly to a third party (usually to a supplier or contractor), orto a commercial bank for expenditures against a Commitment Letter covering a commercial bank’s letter of credit.As emphasized in paragraph 1.2 of the Guidelines, the borrower is legally responsible for the procurement. It invites, receives, and evaluates bids, and awards the contract. The contract is between the borrower and the supplier or contractor. ADB is not a party to the contract.
- 7. Asian Development Bank Procurement GuidelinesADB’s Role
- 8. ADB’s Role Para 3. As stated in paragraph 1.11 of the Guidelines, ADB reviews the procurement procedures, documents, bid evaluations, award recommendations, and the contract to ensure that the process is carried out in accordance with agreed procedures, as required in the financing agreement. In the case of major contracts, the documents are reviewed by ADB prior to their issue, as described in Appendix 1. Also, if, at any time in the procurement process (even after the award of contract), ADB concludes that the agreed procedures were not followed in any material respect, ADB may declare misprocurement, as described in paragraph 1.12.
- 9. ADB’s Role Para 3. However, if a borrower has awarded a contract after obtaining ADB’s “no objection,” ADB will declare misprocurement only if the “no objection” was issued on the basis of incomplete, inaccurate, or misleading information furnished by the borrower.Furthermore, if ADB determines that corrupt or fraudulent practices were engaged in by representatives of the borrower or of the bidder, ADB may impose the applicable sanctions set forth in paragraph 1.14 of the Guidelines.
- 10. ADB’s Role Para 4. ADB has published Standard Bidding Documents (SBDs) for various types of procurement. As stated in paragraph 2.12 of the Guidelines, it is mandatory for the borrower to use these documents, with minimum changes to address country- and project-specific issues. The prequalification and bidding documents are finalized and issued by the borrower.
- 11. Asian Development Bank Procurement GuidelinesInformation on Bidding
- 12. Information on Bidding Para 5. Information on bidding opportunities under ICB may be obtained from the general procurement notice and the specific procurement notices as described in paragraphs 2.7 and 2.8 of the Guidelines. General guidance on participation, as well as advance information on business opportunities in upcoming projects, may be obtained from the ADB website.
- 13. Asian Development Bank Procurement GuidelinesBidder’s Role
- 14. Bidder’s Role Para 6Once a bidder receives the prequalification or bidding document, the bidder should study the documents carefully to decide if it can meet the technical, commercial, and contractual conditions, and if so, proceed to prepare its bid. The bidder should then critically review the documents to see if there is any ambiguity, omission, or internal contradiction, or any feature of specifications or other conditions which are unclear or appear discriminatory or restrictive; if so, it should seek clarification from the borrower, in writing, within the time period specified in the bidding documents for seeking clarifications.
- 15. Bidder’s Role Para 7The criteria and methodology for selection of the successful bidder are outlined in the bidding documents, generally under Instructions to Bidders and Specifications. If these are not clear, clarification should be similarly sought from the borrower.
- 16. Bidder’s Role Para 8In this connection it should be emphasized that the specific bidding documents issued by the borrower govern each procurement, as stated in paragraph 1.1 of the Guidelines. If a bidder feels that any of the provisions in the documents are inconsistent with the Guidelines, it should also raise this with the borrower.
- 17. Bidder’s Role Para 9It is the responsibility of the bidder to raise any issue of ambiguity, contradiction, omission, etc., prior to the submission of its bid, to assure submission of a fully responsive and compliant bid, including all the supporting documents requested in the bidding documents. Noncompliance with critical (technical and commercial) requirements will result in rejection of the bid. If a bidder wishes to propose deviations to a noncritical requirement, or propose an alternative solution, the bidder should quote the price for the fully compliant bid and then separately indicate the adjustment in price that can be offered if the deviation is accepted. Alternative solutions should be offered only when authorized in the bidding documents. Once bids are received and publicly opened, bidders will not be required or permitted to change the price or substance of a bid.
- 18. Asian Development Bank Procurement GuidelinesConfidentiality
- 19. ConfidentialityPara 10As stated in paragraph 2.47 of the Guidelines, the process of bid evaluation shall be confidential until the publication of contract award. This is essential to enable the borrower and ADB reviewers to avoid either the reality or perception of improper interference. If at this stage a bidder wishes to bring additional information to the notice of the borrower, ADB, or both, it should do so in writing.
- 20. Asian Development Bank Procurement GuidelinesAction by ADB
- 21. Action by ADB Para 11Bidders are free to send copies of their communications on issues and questions with the borrower to ADB or to write to ADB directly, when borrowers do not respond promptly, or the communication is a complaint against the borrower. All such communications should be addressed to the project officer for the project, with a copy to the Principal Director, Central Operations Services Office.
- 22. Action by ADB Para 12References received by ADB from potential bidders, prior to the closing date for submission of the bids, will, if appropriate, be referred to the borrower with ADB’s comments and advice, for action or response.
- 23. Action by ADB Para 13Communication received from bidders after the opening of the bids, will be handled as follows. In the case of contracts not subject to prior review by ADB, the communication will be sent to the borrower for due consideration and appropriate action, if any, and these will be reviewed during subsequent supervision of the project by ADB staff. In the cases of contracts subject to the prior review process, the communication will be examined by ADB, in consultation with the borrower. If additional data is required to complete this process, these will be obtained from the borrower.
- 24. Action by ADB Para 13If additional information or clarification is required from the bidder, ADB will ask the borrower to obtain it and comment or incorporate it, as appropriate, in the evaluation report. ADB’s review will not be completed until the communication is fully examined and considered.
- 25. Action by ADB Para 14Except for acknowledgment, ADB will not normally enter into discussion or correspondence with any bidder during the evaluation and review process of the procurement, until award of the contract is published. Notwithstanding paragraph 14(a) above, ADB may enter into discussion where it deems necessary to conduct investigations, audit, evaluation or other assessments of the procurement process.
- 26. Asian Development Bank Procurement GuidelinesDebriefing
- 27. DebriefingPara 15As stated in paragraph 2.65, if, after notification of award, a bidder wishes to ascertain the grounds on which its bid was not selected, it should address its request to the borrower. If the bidder is not satisfied with the explanation given and wishes to seek a meeting with ADB, it may do so by writing the Principal Director, Central Operations Services Office, who will arrange a meeting at the appropriate level and with the relevant staff. In this discussion, only the bidder’s bid can be discussed and not the bids of competitors.