Civil society Procurement Monitor. Civil Society Organization Engaged through through competitive...
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Transcript of Civil society Procurement Monitor. Civil Society Organization Engaged through through competitive...
Civil Society Organization
• Engaged through through competitive bidding to undertake performance monitoring, evaluation, and audit of procurement and contract implementation
Procurement Guiding Principles(Article 6)
• Transparency• Equal opportunity to compete• Economy and efficiency• Responsibility
These same principles can inform the monitoring framework of civil society groups evaluating public procurement.
These same principles can inform the monitoring framework of civil society groups evaluating public procurement.
CSO Monitoring Framework
TransparencyTransparency
Fair competition
Fair competition
Economy/ EfficiencyEconomy/ Efficiency
AccountabilityAccountability
Questions to ask when monitoring
Tips and notes for monitoring
Questions to ask when monitoring
Tips and notes for monitoring
Evaluation Committee: Composition(Art. 47)
TransparencyTransparency
Fair competition
Fair competition
Economy/ EfficiencyEconomy/ Efficiency
AccountabilityAccountability
Who are the members of the committee?
Are the members specialized in procurement or the item to be
procured?
Are there conflict of interest relations?
Is there an NGO member? Who?
Has any of the members had a record of civil servant duty violations in the
past year?
Are majority of the members procurement specialists?
Who are the members of the committee?
Are the members specialized in procurement or the item to be
procured?
Are there conflict of interest relations?
Is there an NGO member? Who?
Has any of the members had a record of civil servant duty violations in the
past year?
Are majority of the members procurement specialists?
Family relations
Contractual relations with tenderer in the past 3
years
Evaluation Committee: Code of ethics and conduct
TransparencyTransparency
Fair competition
Fair competition
Economy/ EfficiencyEconomy/ Efficiency
AccountabilityAccountability
Ensure fair competition
Promote state interests
Should not accept bribes and other illegal proposals
Should inform supervisor of potential conflict of interest
Should inform supervisor immediately if tenderer attempted to
influence procurement results
Ensure fair competition
Promote state interests
Should not accept bribes and other illegal proposals
Should inform supervisor of potential conflict of interest
Should inform supervisor immediately if tenderer attempted to
influence procurement results
Do the committee members adhere to the
following?
Three Types of Procurement Procedures
1. Open procurement procedure2. Exceptional procurement procedure3. Selection of a contractor of consulting services
Selection of procurement procedure is based on cost estimate of goods, works, or services or GWS (Art. 8.4)
CABINET SETS THRESHOLDS
UPPER CEILING of cost estimates for…
LOWER CEILING of cost estimates for…
CABINET SETS THRESHOLDS
UPPER CEILING of cost estimates for…
LOWER CEILING of cost estimates for…
Threshold Values and Procurement Method (Art. 8)
TransparencyTransparency
Fair competition
Fair competition
Economy/ EfficiencyEconomy/ Efficiency
AccountabilityAccountability
Goods, works or services (GWS)
under Comparison Method
Goods, works or services (GWS)
under Comparison Method
GWS under Direct procurement
GWS under Direct procurement
Consulting services under least-cost
method
Consulting services under least-cost
method
GWS that require state administrative body authorization for budget issues
GWS that require state administrative body authorization for budget issues
GWIS whose Invitation to tender is posted in
nationwide newspapers and other
mass media
GWIS whose Invitation to tender is posted in
nationwide newspapers and other
mass media
CABINET SETS THRESHOLDS
UPPER CEILING of cost estimates for…
If cost estimates > upper ceiling set for comparison
method, OPEN PROCUREMENT
PROCEDURE and following 3 methods should be used
CABINET SETS THRESHOLDS
UPPER CEILING of cost estimates for…
If cost estimates > upper ceiling set for comparison
method, OPEN PROCUREMENT
PROCEDURE and following 3 methods should be used
Threshold Values and Procurement Method (Art. 8)
TransparencyTransparency
Fair competition
Fair competition
Economy/ EfficiencyEconomy/ Efficiency
AccountabilityAccountability
Goods, works or services (GWS)
under Comparison Method
GWS under Direct procurement
GWS under Direct procurement
Consulting services under least-cost
method
Consulting services under least-cost
method
Community participation method,
where cost estimation is below
20mn MNT
Community participation method,
where cost estimation is below
20mn MNT
Creating Packages of Goods, Works, and Services
General Rule:Splitting of GWS into packages is prohibited
Splitting of goods, works, and services into several packages
Transparency
Fair competition
Fair competition
Economy/ EfficiencyEconomy/ Efficiency
AccountabilityAccountability
Did splitting result in greater competition?
Are packages created rationally?
Did the procuring entity indicate the existence of
packages in the invitation to tender and tender documents?
Did the procurement procedure minimize the total
cost of all contracts?
Did splitting result in greater competition?
Are packages created rationally?
Did the procuring entity indicate the existence of
packages in the invitation to tender and tender documents?
Did the procurement procedure minimize the total
cost of all contracts?
According to type and
similarity of purpose, and geographical
locations
For packages, in determine procurement method to use…
• Total cost of all packages as determinant (Art. 8.7)
• Opt for procurement method where total cost of all contracts are signed at its minimum
Preferences allowed by law
TransparencyTransparency
Fair competition
Fair competition
Economy/ EfficiencyEconomy/ Efficiency
AccountabilityAccountability
• Tenderers that supply goods of Mongolian origin• Bodies tendering to execute at least 50% of works
independently– Mongolian citizens or legal entity– Foreign legal entity registered in Mongolia and with 50%
equity owned by Mongolian citizen or legal entity
• Tenderer with largest use of locally produced goods, materials and services
• Tenderer that employs largest share of local labor• Tenderer with 90% of employees Mongolian
• Tendering price shall be discounted:– 10% for goods of Mongolian origin– 7.5% for works
Is there bias against FOREIGN TENDERERS? Did the procuring entity exclude foreign tenderers for works costing more the MNT 10 million and goods and services costing
more than MNT 100 millon?
Is there bias against FOREIGN TENDERERS? Did the procuring entity exclude foreign tenderers for works costing more the MNT 10 million and goods and services costing
more than MNT 100 millon?
Bidding Process(Pre-contracting)
1. Procurement planning
2. Preparation of bid documents
3. Public announcement of invitations for tendering
4. Clarification of Bidding document and Pre-bid meeting
5. Submission of tenders
6. Opening of tenders
7. Review of tenders
8. Evaluation of tenders
9. Authorization to enter into a contract
Prequalification
TransparencyTransparency
Fair competition
Fair competition
Economy/ EfficiencyEconomy/ Efficiency
AccountabilityAccountability
What were the Cabinet procedures for pre-qualification?
Did the procuring entity make the announcement in a nationwide newspaper and other mass media
What were the Cabinet procedures for pre-qualification?
Did the procuring entity make the announcement in a nationwide newspaper and other mass media
Take note of the prequalification criteria – does it allow for greater competition or limits competition?
Are the requirements reasonable and appropriate?
Take note of the prequalification criteria – does it allow for greater competition or limits competition?
Are the requirements reasonable and appropriate?
Disqualified tenderers• Insolvent and under receivership• Not fulfilling tax payments and obligations• Operations of legal entity with whole or
partial state ownership• Bad track record (violation of contractual
obligations) for the past 3 years• With conflict of interest (design and
contract execution)• Submitted false information• Court decided that the tenderer
committed a corruption crime in past 3 years
Verify reasons for
disqualifying tenderers
Verify reasons for
disqualifying tenderers
Disqualification/ Blacklist
TransparencyTransparency
Fair competition
Fair competition
Economy/ EfficiencyEconomy/ Efficiency
AccountabilityAccountability
Did the state administrative body disclose publicly bodies whose rights to tender
were restricted?
Did the state administrative body disclose publicly bodies whose rights to tender
were restricted?
Tenderer’s proofs
• Court ruling and/or official document issued by the competent public administrative authority
• Certificate and/or other equivalent documents issued by competent authorities
Single or Two-stage Open Tendering
TransparencyTransparency
Fair competition
Fair competition
Economy/ EfficiencyEconomy/ Efficiency
AccountabilityAccountability
The default mode is single-stage open tendering. If the procuring entity
adopted two-stage open tendering, verify if there is presence/absence of conditions justifying use of two-stage
tendering.
The default mode is single-stage open tendering. If the procuring entity
adopted two-stage open tendering, verify if there is presence/absence of conditions justifying use of two-stage
tendering.– Scope of work is large; Cost estimates
are high; Contract includes goods, works, and services; Technically unequal proposals likely to be submitted; Several technical and equally acceptable solutions can satisfy requirements of procuring entity
– Unable to establish technical specifications in advance
Two-stage Open Tendering
TransparencyTransparency
Fair competition
Fair competition
Economy/ EfficiencyEconomy/ Efficiency
AccountabilityAccountability
Did the procuring entity indicate in invitation to tender and tendering documents use of two-stage open
tendering?
Did the procuring entity indicate in invitation to tender and tendering documents use of two-stage open
tendering?
Two-stage open tendering
• Tenderers invited to submit technical proposals– Technical proposals are assessed by procuring entity– Technical specifications are revised and clarified by
procuring entity => standard technical specifications
• Tenderers invited to submit financial proposals based on revised and clarified technical proposals– Procuring entity to evaluate
Two-stage Open Tendering
TransparencyTransparency
Fair competition
Fair competition
Economy/ EfficiencyEconomy/ Efficiency
AccountabilityAccountability
Are the revised standard technical specifications fair or is there bias for a
specific tenderer?
Are the revised standard technical specifications fair or is there bias for a
specific tenderer?
Tender Documents
TransparencyTransparency
Fair competition
Fair competition
Economy/ EfficiencyEconomy/ Efficiency
AccountabilityAccountability
Where foreign tenderers are allowed to participate, are the tender documents presented in a language widely used in
international trade?
Is the cost of tender documents prohibitive?*
Are the tender documents made available to all interested parties without unreasonable
delay? Are the documents available the day before the publication of invitation to
tender?
Where foreign tenderers are allowed to participate, are the tender documents presented in a language widely used in
international trade?
Is the cost of tender documents prohibitive?*
Are the tender documents made available to all interested parties without unreasonable
delay? Are the documents available the day before the publication of invitation to
tender?
Tender Documents
TransparencyTransparency
Fair competition
Fair competition
Economy/ EfficiencyEconomy/ Efficiency
AccountabilityAccountability
Is the invitation to tender posted in a nationwide newspaper and other mass
media?
Does it contain complete information?
Is the invitation to tender posted in a nationwide newspaper and other mass
media?
Does it contain complete information?
– Identity of procuring entity– Brief summary of the works, goods or
services to be procured– Address where tender documents and other
information can be obtained and submitted– Cost of tender documents
– Special requirements to tender selection– Deadline for tender submission
– Time of commencing the tendering– Participation of foreign tenderers allowed
or not– Granting of a margin of preference
Clarification on tender documents
TransparencyTransparency
Fair competition
Fair competition
Economy/ EfficiencyEconomy/ Efficiency
AccountabilityAccountability
Did the changes (clarification/ additional information) give undue advantage to any one
tenderer?
Did these changes affect the ability of other tenderers to respond to the tender
opportunity?
Did the changes (clarification/ additional information) give undue advantage to any one
tenderer?
Did these changes affect the ability of other tenderers to respond to the tender
opportunity?
Clarification of Bidding document and Pre-bid meeting
TransparencyTransparency
Fair competition
Fair competition
Economy/ EfficiencyEconomy/ Efficiency
AccountabilityAccountability
Did the procuring entity respond to the bidders clarification?
Was there amendment to the Bidding document in accordance with the potential clarification by
bidders?
Did procuring entity conduct pre-bid meeting and respond to the bidders clarification during
the meeting?
Did the procuring entity respond to the bidders clarification?
Was there amendment to the Bidding document in accordance with the potential clarification by
bidders?
Did procuring entity conduct pre-bid meeting and respond to the bidders clarification during
the meeting?
Deadline for submission
TransparencyTransparency
Fair competition
Fair competition
Economy/ EfficiencyEconomy/ Efficiency
AccountabilityAccountability
Did the procuring entity set the deadline for submission at least 30 days or more from
publication of invitation to tender?
Are the tenderers given sufficient and equal time to prepare their tenders?
Did the procuring entity set the deadline for submission at least 30 days or more from
publication of invitation to tender?
Are the tenderers given sufficient and equal time to prepare their tenders?
Submission and opening of tenders
TransparencyTransparency
Fair competition
Fair competition
Economy/ EfficiencyEconomy/ Efficiency
AccountabilityAccountability Is there strict compliance with the deadline?*Is there strict compliance with the deadline?*
Take note of announced details of tenders opened (tenderer’s name, tendering price,
alternative tendering price, discounts offered, tender security, modifications,
withdrawals, etc.)*
Are the Notes of the procuring entity made available to any interested party?
Take note of announced details of tenders opened (tenderer’s name, tendering price,
alternative tendering price, discounts offered, tender security, modifications,
withdrawals, etc.)*
Are the Notes of the procuring entity made available to any interested party?
*Details of tenders not announced (ex: tendering price) shall not be considered in tender evaluation.
Review of tenders
TransparencyTransparency
Fair competition
Fair competition
Economy/ EfficiencyEconomy/ Efficiency
ResponsibilityResponsibility
Check on whether the tenderers are qualified (see bases for disqualification)Check on whether the tenderers are qualified (see bases for disqualification)
Review of technical qualificationsEducation and professional
qualifications of management, supervision, and execution employeeWorks carried out in last 5 years
Tenderer’s instruments and technical facilities, list of plants and
equipmentQuality control measures (if sub-
contracting)Quality certificates issued by
competent authority
Review of tenders
TransparencyTransparency
Fair competition
Fair competition
Economy/ EfficiencyEconomy/ Efficiency
ResponsibilityResponsibility
Check on whether the tenderers are qualified (see bases for disqualification)Check on whether the tenderers are qualified (see bases for disqualification)
Review of Financial Qualifications Statements by correspondent
bank Audited financial statements
Table of consulting staff, remuneration and other cost
estimations Reports on annual sales up to last
5 years
Review of tenders
TransparencyTransparency
Fair competition
Fair competition
Economy/ EfficiencyEconomy/ Efficiency
ResponsibilityResponsibility
Has there been negative influence on scope, quality and performance of goods, works or
services?
Are the contract terms inconsistent with the law?
Has there been unfair influence on competition of other responsive tenders?
Has there been negative influence on scope, quality and performance of goods, works or
services?
Are the contract terms inconsistent with the law?
Has there been unfair influence on competition of other responsive tenders?
This is done only for the purpose of comparing tenders and shall not be a justification for changing tender price.
This is done only for the purpose of comparing tenders and shall not be a justification for changing tender price.
Evaluation of tenders
TransparencyTransparency
Fair competition
Fair competition
Economy/ Efficiency
ResponsibilityResponsibility
IS THE KEY CRITERION THE TENDERING PRICE?
Are there other factors considered? What were these?
IS THE KEY CRITERION THE TENDERING PRICE?
Are there other factors considered? What were these?
– Time of completion of works and services and/or delivery of goods
– Current expenses or cost and efficiency estimations
– After-sales service and technical assistance
– Commitment to supply spare parts– Quality and and technical merits of
works, goods and services– Other criteria consistent with law
Evaluation of tenders
• Tenders shall be arranged from lowest to highest– Tender price adjusted according to margin of
preference discounts– Lowest price = BEST EVALUATED TENDER
• In case of foreign currency, currency to be converted at Mongolbank rate effective on day of tender announcement
Authorization to enter into a contract
TransparencyTransparency
Fair competition
Fair competition
Economy/ EfficiencyEconomy/ Efficiency
ResponsibilityResponsibility
Did the procuring entity authorize the tenderer with the BEST EVALUATED TENDER
to enter into contract?
Did the other losing tenderers get notification in writing?
Was the contract signed after 5 days from notification?
Did the procuring entity authorize the tenderer with the BEST EVALUATED TENDER
to enter into contract?
Did the other losing tenderers get notification in writing?
Was the contract signed after 5 days from notification?
Authorization to enter into a contract
• The procuring entity may extend tender validity period if it becomes impossible to sign contract due to reasons not dependent on the procuring entity.– Extension shall be justified in writing
Rejecting all tenders• All tenders are not responsive• Determination of unfair competition
– Court or competent authority determines that the tendering price was negotiated
– Conditions of tendering were not provided accurately to tenderers
– Competitors were put under pressure• Tendering prices of all responsive tenders exceeded
procuring entity’s cost estimate by more than 5%• Negotiation with tenderer whose tendering price
exceeded cost estimates failed– Negotiation is done to bring down tendering price to exceed cost
estimates by less than 5%
If procuring entity rejected all tenders…
• It shall examine the reasons that resulted in failure, make relevant amendments to content of tender documents, and conduct open tendering
• If reason for failure is all responsive tenders exceeded cost estimates by more than 5% and negotiation failed, relevant modifications will be made in tender documents, and conduct limited tendering
• Reoccurrence of rejection of all tenders after amendments and conduct of open tendering/ limited tendering (30.4.3) , procuring entity shall proceed to conduct direct contracting
Limited Tendering
TransparencyTransparency
Fair competition
Fair competition
Economy/ EfficiencyEconomy/ Efficiency
ResponsibilityResponsibility
Are there limited tenderers capable of executing goods, works, services requiring high qualification, expertise, equipment,
technology?
Was there a rejection of all tenders because responsive tenders exceeded cost estimates by more than 5% and negotiations to bring down tender price to less than 5% in excess
of cost estimate have failed?
Are there limited tenderers capable of executing goods, works, services requiring high qualification, expertise, equipment,
technology?
Was there a rejection of all tenders because responsive tenders exceeded cost estimates by more than 5% and negotiations to bring down tender price to less than 5% in excess
of cost estimate have failed?
Procedure
• Simultaneous invitation to tender is sent to bodies with capacity to execute contract
• Tender documents shall be provided to interested tenderers without unreasonable delay
• Tender submission deadline is set to 15 or more days from delivery of invitation to tender
When is comparison method allowed?
• If the cost estimate of goods, works, services does not exceed the threshold values
Take note of possible splitting of cost estimates to circumvent open tendering method and for availment of comparison method.
Take note of possible splitting of cost estimates to circumvent open tendering method and for availment of comparison method.
Procedure
• Procuring entity invites 3 or more bodies that satisfy the technical specifications and other conditions and requirements to submit price proposals
• Procuring entity to authorize qualified tenderer with lowest price to enter into contract
• Submission of price proposal shall be done in not less than 5 working days from the day the invitation was delivered
Direct contracting
TransparencyTransparency
Fair competition
Fair competition
Economy/ EfficiencyEconomy/ Efficiency
ResponsibilityResponsibility
• Second failure of open tendering and failure to compare
• Procured item is protected by copyright laws
• Additional supplies (replacement, repair, replenishment) do not exceed
20% of value of initial contract and change in supplier will result in cost-
inefficiencies and other technical difficulties
• Additional works do not exceed 15% of initial contract
• Emergency cases due to unforeseeable and force majeur circumstances
• Second failure of open tendering and failure to compare
• Procured item is protected by copyright laws
• Additional supplies (replacement, repair, replenishment) do not exceed
20% of value of initial contract and change in supplier will result in cost-
inefficiencies and other technical difficulties
• Additional works do not exceed 15% of initial contract
• Emergency cases due to unforeseeable and force majeur circumstances
Are these conditions present?
Procedure
• Procuring entity shall negotiate with one or more bodies that satisfy basic technical and financial qualifications. The procuring entity shall enter into contract with body that best satisfies the technical specifications, conditions and requirements
• Contract and statement justifying the application of procedure shall be sent to central administrative authority
Consultants can be…
• Individuals– Individual qualifications and expertise
• Legal entities–Multidisciplinary expertise and specialized
personnel
Procedure
• Procuring entity shall prepare terms of reference (TOR) detailing objectives, expected outcome, and other relevant information
• Procuring entity shall make cost estimations of service– Based on type and level of personnel background,
time required for works at field and office, office supplies and other expenses required for a given service
Consulting Services
TransparencyTransparency
Fair competition
Fair competition
Economy/ EfficiencyEconomy/ Efficiency
ResponsibilityResponsibility
Was there a publication of the invitation to tender in a nationwide newspaper
or other mass media?
Is there a general list of consultants? Where did the names come from?
Was there a publication of the invitation to tender in a nationwide newspaper
or other mass media?
Is there a general list of consultants? Where did the names come from?
– Consultants who responded to the invitation
– National and/or international consultants providing services in
Mongolia– Consultants listed in government
registry– Consultants affiliated with professional associations and
international financial organizations
Procedure• Procuring entity to draw up a shortlist from the general
list of at least three consultants that satisfy the basic technical and financial capacity requirements
• Procuring entity shall provide the Request for Proposal and TOR to shortlisted consultants. The RFP shall contain:– Brief description of assignment and details of financing– TOR– Qualification requirements, evaluation criteria and
methodology– Name of legal entities invited and/or individuals invited– Draft contract– Instructions for submitting proposals– Evaluation method to be used
• Deadline for submission shall not be more than 60 days. For legal entities, more than 30 days. For individuals, more than 7 days
Is the shortlist of consultants based on a clear set of criteria (basic qualifications)?
Is the shortlist of consultants based on a clear set of criteria (basic qualifications)?
Procedure
• Technical and financial proposals are prepared separately and submitted concurrently. They may be in separate sealed envelopes if the RFP requires so.– Technical: professional qualification and expertise.
For legal entities, this includes lead specialist and operating practice
– Financial: price• The financial proposal will be evaluated after the
evaluation of the technical proposal
Evaluation Methods
• Qualification
• Quality• Combined evaluation method• Least-cost method
Individual consultants
Consultingfirms
Qualification evaluation method
• Consultant’s knowledge, expertise, professional level, and other professional skills
Quality evaluation method• Contract requires simultaneous execution of a number of services
requiring comprehensive qualification expertise and technical qualifications
• Proposals are compared on operating practice, work schedule, personnel’s expertise and capabilities, and quality of service
• Technical proposals are assigned scores based on basic technical and financial qualification standards (Articles 14-16). Technical proposals will be ranked according to score
• Highest ranked firm shall have his financial proposal opened first. Procuring entity will negotiate to agree on price and other conditions.– Procuring entity shall not require consultant to reduce proposed price
without justification– If negotiation fails with first ranked, procuring entity will proceed to
open financial proposal of next ranked firm and undertake negotiations with the same
• Consultant may be asked to submit relevant documents, cost estimates and other information and evidence.
Combined evaluation method• For all other consulting services other than individual
consultants and those under quality evaluation method• Procuring entity to indicate minimum score for technical
proposal• Technical proposals will be evaluated and ranked. Those
meeting the minimum score will be notified for the opening of financial proposals. Those who did not meet the minimum score shall receive their financial proposals unopened.
• Financial proposals of those who met the minimum score shall be opened publicly at a date/time set by procuring entity and notified to qualified consultants.– Financial proposals will be scored in manner set in RFP
• Total score of quality and price evaluation = technical proposal score + financial proposal score
Combined evaluation method• Procuring entity will negotiate with highest ranked
firm– What can be negotiated
• # Person-days, # person-months• Time required for field work• Office supplies
– Unit costs cannot be modified– If negotiation fails, procuring entity shall proceed to
negotiate with next-in-rank
Least-cost method
• For consultancy assignments with established practices, the least cost method shall be adopted (Negotiation with firm with lowest priced financial proposal)