Procurement of Works and Consultants
Single Contract or More Contracts
It may be single contract for all works or whole work is broken in suitable and similar packages with separate contract for each package. In case of single contract monitoring becomes easy. Nature of works may vary widely such as WTP and reduction of NRW. Moreover there are specialized agencies for WTP, NRW reduction and they may like to bid for the work in which they specialize and not work for unified single contract. The time of completion for different nature of works varies widely. Some items of work are suitable for item rate contract and some are suitable for design build and operate type contracts. As per the available contractors and their skills and financial capacity package cost and type should be decided such that adequate competition is ensured and monopoly does not happen.Type of Contract
Separate contracts should be done for supply of items and separate contract for works. Also depending on estimated cost of the work/supply different format of bid document can be used. Bilateral funding agencies follow international bidding procedures for estimated bid values say more than 1 m $ supply of goods and 10 million $ for works. The threshold values adopted differ for different agencies. National Competitive Bidding is followed for less estimated costs.
Single Envelop - Two Envelop
In case of single envelop technical and financial bids are opened at same time. In two envelop system technical and financial bids are submitted by bidder in two separate envelops and technical bids are opened first and then evaluated and then financial bids are opened of those firms whose technical bid is compliant.
Item Rate or Design Build Opertate or Lump Sum Contracts
For simple contracts in which designs and quantities of various items are known precisely then item rate procurement process is followed. Alternatively when design options are available and client is not in a position to decide best option and also when detail designs and quantities are not known then Design Build Operate/ Lump Sum/ Turnkey Contracts are invited. Operation and Maintenance: It may be desirable to invite bids for water treatment plant, raw water pump house, clear water pump house, supply and installation of water meters etc such that the scope of work also includes operation and maintenance of the facility created under the contract for at least 5 years. This ensures better quality of civil works and equipments.
Procurement for Reduction of NRW
Reduction of NRW is a specialized nature work and involves sustained effort for long time. Also scope of work is not known precisely. As such it can be done in phases, first phase can be of marking existing pipe network on map - validating network and identification of works required to be done including developing DMAs, second phase can be for implementation of identified works and third phase can be for say 5 or more years for reduction in NRW with yearly targets.Procurement for Reservoirs
Lump sum contract such that design is responsibility of contractor is generally accepted mode of procurement. In case of contractors design one gets economical costs.
Procurement for WTP and Pump Houses
These are suitable for design build on turnkey basis with lump sum bid. The scope should include operation and maintenance for say at least 5 years.
Procurement for Pipeline Works
These can be contracted as item rate contracts. Earlier trend was to supply pipes by Client. However it may be desirable that contractor brings all material and does the work.
Procurement for Domestic and Bulk Meters
These can be contracted as supply and installation with repairs. It may also include meter reading bill preparation and distribution.
Standard Bid Documents
Standard bid documents should be prepared and got approved from competent authority for different type of works so that repetition of effort is avoided. Multilateral Development Banks are using FIDIC conditions of contract for construction for building and engineering works- harmonized edition March 2006. Standard bid documents suitable for different types of works followed by ADB are available on www.adb.org/opportunities/businessopportunities/.
Procurement Plan
Procurement Plan should be prepared fixing dates for bid document preparation, its approval, bid invitation, bid opening, technical bid evaluation, approval of technical bid evaluation, opening of price proposal, evaluation of price proposal, approval of price proposal, issue letter of acceptance, contract agreement, Project completion.
Procurement of Consultant
Terms of reference are prepared giving scope of work and then firms are asked to submit expression of interest (EOI) in standard format. EOIs are evaluated on the basis of criteria established before calling EOIs. Evaluation criteria consider management competency, technical competency & geographical competency and on the basis of it 3 to 6 firms are shortlisted. The short listed firms are asked to submit bid in a standard format called Request for Proposal (RFP). The RFP proposals are invited as full technical proposal or Short technical proposal or Bio data proposal depending on cost and complexity of consultancy. Selection method may be Quality Cost Based Selection (QCBS) or Quality Based Selection (QBS) or Fixed Budget Selection (FBS) or Least Cost selection (LCS) or Single Source Selection (SSS) or Consultant Qualification Selection (CQS). RFPs are evaluated as per the established evaluation criteria which is based on experience of firm of similar works and same region experience (10-20% weightage), Methodology, work program, personnel schedule (20-40% weightage), personnel (60-70% weightage). The standard format for EOI and RFP are available on www.adb.org.