Procurement Specifications Goods

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ProcurementSpecifications Goods

• How they affect Procurement

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BIDDING DOCUMENTSTECHNICAL SPECIFICATIONSGENERAL

• Sufficiently specific to elicit responsive bids
• Enable participation by any qualified bidder,
  without technical prejudice
• Display technical criteria for evaluation of bids

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TECHNICAL SPECIFICATIONSGOODS

• Physical/chemical properties
• Performance requirements
• Reference to Design drawings
• Locally applicable standard and regulations

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TECHNICAL SPECIFICATIONSWORKS

• Reference to Working Drawings
• Bill of quantities
• Industry standards
• Locally applicable codes

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Some relevant clauses of the Guidelines

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• 2.16 Bidding documents shall be so worded as to
  permit and encourage international competition
  and shall set forth clearly and precisely the
  work to be carried out, the location of the work,
  the goods to be supplied, the place of delivery
  or installation, the schedule for delivery or
  completion, minimum performance requirements, and
  the warranty and maintenance requirements, as
  well as any other pertinent terms and conditions.
  In addition, the bidding documents, where
  appropriate, shall define the tests, standards,
  and methods that will be employed to judge the
  conformity of equipment as delivered, or works as
  performed, with the specifications. Drawings
  shall be consistent with the text of the
  specifications, and an order of precedence
  between the two shall be specified.

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• 2.17 The bidding documents shall specify any
  factors, in addition to price, which will be
  taken into account in evaluating bids, and how
  such factors will be quantified or otherwise
  evaluated. If bids based on alternative designs,
  materials, completion schedules, payment terms,
  etc., are permitted, conditions for their
  acceptability and the method of their evaluation
  shall be expressly stated.

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• 2.19 Standards and technical specifications
  quoted in bidding documents shall promote the
  broadest possible competition, while assuring the
  critical performance or other requirements for
  the goods and/or works under procurement. As far
  as possible, the Borrower shall specify
  internationally accepted standards such as those
  issued by the International Standards
  Organization with which the equipment or
  materials or workmanship shall comply. Where such
  international standards are unavailable or are
  inappropriate, national standards may be
  specified.

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• In all cases, the bidding documents shall state
  that equipment, material, or workmanship meeting
  other standards, which promise at least
  substantial equivalence, will also be accepted.

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• Use of Brand Names
• 2.20 Specifications shall be based on relevant
  characteristics and/or performance requirements.
  References to brand names, catalog numbers, or
  similar classifications shall be avoided. If it
  is necessary to quote a brand name or catalog
  number of a particular manufacturer to clarify an
  otherwise incomplete specification, the words or
  equivalent shall be added after such reference.
  The specification shall permit the acceptance of
  offers for goods which have similar
  characteristics and which provide performance at
  least substantially equivalent to those specified.

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• 2.48 The Borrower shall ascertain whether the
  bids (a) meet the eligibility requirements
  specified in paragraph 1.6, 1.7 and 1.8 of these
  Guidelines, (b) have been properly signed, (c)
  are accompanied by the required securities or
  required declaration signed as specified in
  paragraph 2.14 of the Guidelines, (d) are
  substantially responsive to the bidding
  documents, and (v) are otherwise generally in
  order. If a bid is not substantially responsive,
  that is, it contains material deviations from or
  reservations to the terms, conditions, and
  specifications in the bidding documents, it shall
  not be considered further. The bidder shall not
  be permitted to correct or withdraw material
  deviations or reservations once bids have been
  opened.
• Evaluation and Comparison of Bids
• 2.49 The purpose of bid evaluation is to
  determine the cost to the Borrower of each bid in
  a manner that permits a comparison on the basis
  of their evaluated cost. Subject to paragraph
  2.58, the bid with the lowest evaluated cost,43
  but not necessarily the lowest submitted price,
  shall be selected for award.

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Some relevant Material from the SBDs

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• The TS constitute the benchmarks against which
  the Purchaser will verify the technical
  responsiveness of bids and subsequently evaluate
  the bids. Therefore, well-defined TS will
  facilitate preparation of responsive bids by
  bidders, as well as examination, evaluation, and
  comparison of the bids by the Purchaser.

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• The TS shall require that all goods and materials
  to be incorporated in the goods be new, unused,
  and of the most recent or current models, and
  that they incorporate all recent improvements in
  design and materials, unless provided for
  otherwise in the contract.
• The TS shall make use of best practices. Samples
  of specifications from successful similar
  procurements in the same country or sector may
  provide a sound basis for drafting the TS.

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• The Bank encourages the use of metric units.
• Standardizing technical specifications may be
  advantageous, depending on the complexity of the
  goods and the repetitiveness of the type of
  procurement. Technical Specifications should be
  broad enough to avoid restrictions on
  workmanship, materials, and equipment commonly
  used in manufacturing similar kinds of goods.

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• Standards for equipment, materials, and
  workmanship specified in the Bidding Documents
  shall not be restrictive. Recognized
  international standards should be specified as
  much as possible. Reference to brand names,
  catalogue numbers, or other details that limit
  any materials or items to a specific manufacturer
  should be avoided as far as possible. Where
  unavoidable, such item description should always
  be followed by the words or substantially
  equivalent. When other particular standards or
  codes of practice are referred to in the TS,
  whether from the Borrowers or from other
  eligible countries, a statement should follow
  other authoritative standards that ensure at
  least a substantially equal quality, then the
  standards mentioned in the TS will also be
  acceptable.

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• Reference to brand names and catalogue numbers
  should be avoided as far as possible where
  unavoidable the words or at least equivalent
  shall always follow such references.
• Technical Specifications shall be fully
  descriptive of the requirements in respect of,
  but not limited to, the following
• (a) Standards of materials and workmanship
  required for the production and manufacturing of
  the Goods.
• (b) Detailed tests required (type and number).
• (c) Other additional work and/or Related Services
  required to achieve full delivery/completion.
• (d) Detailed activities to be performed by the
  Supplier, and participation of the Purchaser
  thereon.
• (e) List of detailed functional guarantees
  covered by the Warranty and the specification of
  the liquidated damages to be applied in the event
  that such guarantees are not met.

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• The TS shall specify all essential technical and
  performance characteristics and requirements,
  including guaranteed or acceptable maximum or
  minimum values, as appropriate. Whenever
  necessary, the Purchaser shall include an
  additional ad-hoc bidding form (to be an
  Attachment to the Bid Submission Sheet), where
  the Bidder shall provide detailed information on
  such technical performance characteristics in
  respect to the corresponding acceptable or
  guaranteed values.

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• When the Purchaser requests that the Bidder
  provides in its bid a part or all of the
  Technical Specifications, technical schedules, or
  other technical information, the Purchaser shall
  specify in detail the nature and extent of the
  required information and the manner in which it
  has to be presented by the Bidder in its bid.
• If a summary of the Technical Specifications
  (TS) has to be provided, the Purchaser shall
  insert information in the table below. The Bidder
  shall prepare a similar table to justify
  compliance with the requirements

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• Summary of Technical Specifications. The Goods
  and Related Services shall comply with following
  Technical Specifications and Standards
• Item No - Name of Goods or Related
• Service Technical Specifications and
  Standardsinsert item Noinsert nameinsert TS
  and StandardsIn form of a table.

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Bottom Line

• Specify what you need, not how to get what you
  need.
• Look to increase competition, not reduce it.
• Be as flexible as possible without compromising
  the objective.
• Be clear

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Case 1

• Procurement of 2000 motorcycles for Ministry of
  Health Rural Services, included following
  specific items
• Engine size 100 cc
• Fuel consumption 70 km/liter
• Can you explain what is wrong? Why this would
  lead to numerous complaints.

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Case 2

• Ministry of Health is procuring Laboratory
  analysis equipment and included following
  specification
• The analyzer shall include an integrated
  printer
• Two firms complained that their machines do not
  have integrated printers, but perform better than
  those which do.
• What are your views?

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Case 3

• Ministry of Health of India is procuring 450
  dental chairs. The specification was prepared by
  a European consultant, and is pretty much a
  standard specification in use by many countries.
  The lowest price was 5 times higher than the
  estimate. The MoH wants to re-bid with new specs
  arguing that their dental chair requirements are
  much lower and that the specification was wrong.
• What do you think?

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Case 4

• The local power authority wishes to buy 25,000
  insulators (estimateUS1,700,000) for a major
  transmission line. The country has used only
  ceramic or glass insulators in the past, and the
  specs call for the same. A complaint is sent to
  the Bank by a manufacturer of composite (plastic)
  insulators who is willing to guarantee that their
  product performs equally well at a lower cost.
  What should the Bank do?

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Case 5

• The unit will be designed in accordance with
  Mexican Steel Standard 12345 and Mexican
  Automotive standard 98765.
• Is this acceptable?
• The unit will be designed in accordance with
  Russian electrical Standard No.XXXX.
• Is this acceptable?

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Case 6

• Procurement of Port Crane. Specifications
  include Foe corrosion protection, the structural
  components of the crane shall be constructed
  using steel profiles and designs of no less than
  7 mm in thickness, which will be suitably painted
  as per DIN XXX.
• A Bidder complained his standard design uses
  some components of 5 mm thickness but of
  corrosion resistant steel, thus achieving better
  corrosion resistance.
• What do you think?

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Case 7

• Choose the best of the following clauses
• The PC shall have a Pentium 4 Processor
• The PC shall have a Pentium 4 Processor or
  better.
• The PC will have a processor of capacity not less
  than XXXX

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Case 8

• Choose the best clause
• the Crane boom will have a geometry as described
  in drawing XYZ, with a minimum length of XXX, a
  minimum weight of XXXX, and be able to lift 5
  tons in any position.
• The Crane boom will be able to lift 5 tons
  vertically for 6 meters at a distance of 18
  meters from the wharf wall.