International Competitive Bidding

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International Competitive Bidding
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• International Competitive Bidding

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What is ICB

• International Competitive Bidding
• Tenders for products and services to be delivered
  outside EU
• Some "Humanitarian" (emergency aid vs.
  development aid)
• Some "Public"
• Some even "Private"
• Many different products and services

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Goods and services in ICB

• Nutrition
• Housing
• Urban development
• Rural development
• Private sector development
• Energy
• Financial services
• Agriculture, fishing and forestry
• Construction
• Infrastructure
• Information and communication technologies

• Vehicles
• Chemicals
• Irrigation
• Environment
• Humanitarian aid
• Reconstruction
• Oil and gas
• Water and sanitation
• Transportation
• Health
• Heavy machinery

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Business potential in numbers

• Humanitarian aid At least SEK 400 billion
  annually made up by
• EU's external aid programmes
• UN organisations
• World Bank lending
• Regional Development Banks
• National aid organisations
• Non-governmental organisations
• Public tenders in developing countries N/A

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The procurers

• World Bank - Financing tenders
• Regional Development Banks - Financing tenders
• EU - Financing tenders
• National aid organisations
• UN organisations
• Non-governmental organisations
• Other organisations and institutions
• Public authorities and institutions in developing
  countries

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• The World Bank

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The World Bank

• 40,000 contracts each year
• EURO 15-20 billion lending per year

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The World Bank Group
International Bank for Reconstruction and
Development
International Development Association
IBRD Established 1945
International Finance Corporation
IDA Established 1960
Multilateral Investment Guarantee Agency
IFC Established 1956
MIGA Established 1988
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World Bank Lending by Theme

Economic Management 3
Urban Development 8
Environmental Natural Resource Management 11
Trade Integration 5
Social Protection Risk Management 11
Financial Private Sector Development 17
Social Development, Gender Inclusion 6
Rural Development 13
Human Development 13
Rule of Law 1
Public Sector Governance 12
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World Bank Lending by Sector
Agriculture, Fishing Forestry 9
Water, Sanitation Flood Protection 10
Education 9
Transportation 14
Energy Mining 8
Finance 8
Law Justice Public Administration 25
Health Other Social Services 10
Industry Trade 7
Information Communication 1
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World Bank Lending by Region
Africa 3.9 billion 17
South Asia 5 billion 22
East Asia and Pacific 2.9 billion 13
Middle East and North Africa 1.3 billion 6
Latin America and the Caribbean 5.2 billion 24
Europe and Central Asia 4.1 billion 18
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Project Identification
Resident Missions
Borrowers Proposals
Previous Projects
Bank Economic Sector Work
Other Agencies
CAS
Country Assistance Strategy
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The World Bank
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The World Bank Loan Approvals

• USD 250 million for HIV/AIDS projects in India
• The World Bank has recently approved a loan of
  USD 250 million for the Third National HIV/AIDS
  Control Project. It is expected that the project
  will include international tenders for goods and
  services related to prevention, care and
  treatment of people living with HIV and AIDS in
  India.
• USD 190 million for Water Tank Management
  Projects
• The World Bank has recently approved a loan of
  USD 190 million for the Andhra Pradesh
  Community-Based Tank Management Project. It is
  expected that the project will include
  international tenders for goods and services
  related to improving the performance of about
  3000 tank systems with a command area of about
  250,000 hectares and improving on-farm water
  management and efficiency.

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Evaluation criteria for goods and works

• Based on measurable criteria
• Open competition
• Bid open one stage
• Price is the main criterion
• Detailed technical specifications
• Bids are opened in public
• Negotiations are exceptional

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Selection Criteria for Consulting Services

• Based in knowledge
• Limited to short list
• Two stages
• Quality is the main criterion
• Terms of reference (overall work program)
• Only financial proposal is open to the public
• Negotiations are usual

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Key success factors

• Follow the projects of interest from loan
  approval
• Lobby local ministries and possibly World Bank
  officials especially on new technology
• Prepare an offer that cannot be rejected / is in
  full compliance with tender requirements
• Have the right quality
• Have the right prices
• Have good local representation that will keep up
  a constructive dialogue with the responsible
  ministry
• Be careful with unethical business conduct

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• Regional Development Banks

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Regional Development Banks

• Inter-American Development Bank
• African Development Bank
• Asian Development Bank
• European Bank for Reconstruction and Development

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• EU

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EU

• Various external aid programmes
• EuropeAid is the European equivalent of SIDA
• Every year more than SEK 60 billion is spent on
  projects in many different countries
• EU finances projects, procurement is
  decentralised
• Main sectors
• Access to clean and safe water
• Rural development and food security
• Health
• Education
• Trade and private sector development
• Human rights and good governance
• Security, justice and regional cooperation

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How to bid for EU tenders

• Very elaborate tender documents
• Offers must be detailed and in complete
  compliance with tender documents
• Requirements for country of origin
• Requirements for currency of offer
• Requirements for period of validity
• Requirements for contents of tenders
• Terms of payment
• Tender guarantee
• Performance guarantee
• Tender opening
• Technical evaluation vs. financial evaluation

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Advantages of WB, dev. Banks and EU

• Strong and reliable organisations
• Transparent and harmonised guidelines
• Easy access to the relevant information
• Danish and Swedish technology and know-how
• Large projects gt High growth potential

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• The UN System

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The United Nations System

• 43 different organisations
• Local offices

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Total procurement by UN agencies

• The 10 UN agencies with highest procurement
  levels
• World Food Programme USD 2,180 million
• United Nations Procurement Services USD 1,555
  million
• Unicef USD 1,135 million
• UNDP USD 1,027 million
• UNOPS USD 719 million
• UNFPA USD 253 million
• PAHO USD 206 million
• UNDP/IAPSO USD 193 million
• WHO USD 150 million
• UNRWA USD 115 million

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10 major countries of supplies to the UN
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UNICEF

• Procurement Services located in Copenhagen,
  Denmark
• Annual procurement volume Approx. USD 1,135
  million
• Main commodities purchased
• Vaccines/biologicals
• Education supplies
• Medical supplies and equipment
• IT and office equipment
• Water and sanitation
• Nutrition
• Printing
• Pharmaceuticals
• Transport
• Bednets and household technologies

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UNICEF - Main Supplier Countries
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UNICEF - Countries of Delivery
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World Food Programme

• Procurement service located in Rome, Italy
• Annual procurement volume USD 2,180 million
• Main commodities purchased
• Food
• Transport
• Warehousing and logistics
• Vehicles
• IT equipment
• Office services
• Communication equipment
• Utilities and rental
• Office supplies and furniture
• Training and conferences

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United Nations Procurement Services

• Procurement division located in New York, USA
• Annual procurement volume USD 1,555 million
• Main commodities purchased
• Air transportation services
• Chemical and petroleum products
• Motor vehicles/parts and transportation equipment
• Telecommunications equipment and services
• Freight forwarding and delivery services
• EDP equipment and maintenance services
• Food rations / catering services
• Architecture, engineering and construction
  related services
• Building management and maintenance
• Travel and related services

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United Nations Development Programme

• Procurement division located in New York, USA
• Annual procurement volume USD 1,027 million
• Main commodities purchased
• Information and communication technolgies
• Electrical equipment
• Public administration
• Education, training and social services
• Cooling and heating equipment
• Agriculture
• Laboratory equipment
• Motor vehicles
• Printing services
• Transportation
• Medical equipment and supplies

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UNOPS

• Procurement division located in Copenhagen,
  Denmark
• Annual procurement volume USD 719 million
• Main commodities purchased
• Construction, engineering and architectural
  services
• Motor vehicles and other transport equipment
• Office and IT equipment
• Mine action services
• Iron, steel and metal products
• Natural resources development, environmental
  management
• Paper products and stationary
• General management services
• Communication equipment
• Transport services
• Machinery

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UNFPA

• Procurement division located in Copenhagen,
  Denmark
• Annual procurement volume USD 253 million
• Main commodities purchased
• Audio/visual equipment
• Pharmaceuticals
• Publication/printing
• Vehicles
• Medical equipment
• Office equipment and EDP
• Contraceptives

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Pan-American Health Organisation

• Procurement division located in Washington, USA
• Annual procurement volume USD 206 million
• Main commodities purchased
• Vaccines
• Agrochemicals
• Pharmaceuticals
• Freight services
• Syringes and needles
• Computer supplies and equipment
• Laboratory supplies and equipment
• Environmental supplies and equipment
• Medical and dental supplies and equipment

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UNDP/IAPSO

• Procurement division located in Copenhagen,
  Denmark
• Annual procurement volume USD 193 million
• Main commodities purchased
• Automotive products
• Pharmaceuticals
• Technical equipment
• IT equipment
• Freight and transportation

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World Health Organisation

• Procurement division located in Geneva,
  Switzerland
• Annual procurement volume USD 150 million
• Main commodities purchased
• Pharmaceutical products and vaccines
• X-ray, radiological apparatus, appliances and
  consumables
• Computer equipment and office supplies
• Laboratory supplies and equipment
• Medical and surgical equipment
• Transportation equipment
• Insecticides, pesticides etc.
• Miscellaneous drugs
• Electric/electronic intrumentation and equipment
• HIV test kits

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UNRWA

• Procurement division located in Amman, Jordan
• Annual procurement volume USD 115 million
• Main commodities purchased
• Educational and recreational supplies
• Teaching aids
• Audio-visual equipment
• Hand tools
• Medicines and vaccines
• Medical equipment
• Foodstuff
• Blankets
• Clothes
• Building materials

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Practical tips for suppliers

• Establish and keep contact with technical and
  purchasing specialists dealing with your
  products.
• Carefully study bid document, conditions and
  minimum specifications.
• Ensure offer is complete (include datasheets and
  QA-certificates).
• Remember to respond, even if you do not offer.
• Meet deadline for submission of bid (time and
  place!).
• Maintain regular contact and communicate
  professionally
• In case of uncertainty - ask for clarification.
• In addition to request, alternative proposals may
  be provided.
• Submit brochures and catalogues in requested
  language.
• Facilitate work of purchasing officer format
  offer and annexes.
• Attend public bid openings, whenever called (can
  be via representative).
• Take advantage of UN Agencies websites
  procurement sections.

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Bid Evaluation Criteria

• Acceptance of UN payment terms
• Delivery terms delivery time
• Technical requirements
• Recognized international/national quality
  standards
• Supporting documentation
• Proven production capacity financial strength
• Warranty conditions
• Appropriate after-sales service
• Previous contract references
• Price

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Key Success Factors for Suppliers

• Market knowledge (if possible, also knowledge on
  UN structure culture)
• Suitable products / services
• Country knowledge - intercultural skills
• Export experience / references
• Languages (employees, documents)
• Networks after sales services
• Capacities (financial, personnel)
• Competitive prices
• Flexibility w.r.t. off-take
• Reliability
• Persistence, endurance, patience

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• National Aid Organizations

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National Aid Organizations

• DANIDA
• SIDA
• NORAD
• USAID
• DFID
• NZAID
• JICS
• GTZ

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National Aid Organizations

• Large procurement budgets
• National preferences
• Some use procurement agents

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• Non-Governmental Organizations

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Non-Governmental Organizations

• Save the Children
• Oxfam
• Red Cross and Red Crescent Societies
• Church Aid
• World Vision

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Non-Governmental Organizations

• Thousands of international and local
  organizations
• Smaller budgets
• Characterised by less professional procurement
• Focus on emergency aid and short-term development
  projects
• Based on specific themes (e.g. mine clearance)
• Dependent on continuous financing dependent on
  proven results

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Non-Governmental Organizations

• Main selection criteria
• Product of interest
• Minimum 3 years expierence
• Export experience
• Legal status
• Reliability (reputation, experience, references)
• Professional integrity
• Capacity (performance, financial)
• Supplier registration form
• Acceptance of General terms and conditions
• Criteria availability, quality, price, service

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• Cases

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Useful links

• The World Bank www.worldbank.org
• Asian Development Bank www.adb.org
• African Development Bank www.afdb.org
• Inter-American Development Bank www.iadb.org
• Danida www.danida.dk
• USÁID www.usaid.gov
• UN http//www.un.org/english/
• Save the Children http//www.savethechildren.org/
  
• World Vision www.wvi.org