PROCUREMENT AUDIT REPORT · PROCUREMENT AUDIT REPORT 11- Sub projects Individual Consultant for...

PROCUREMENT AUDIT REPORT

11- Sub projects

Individual Consultant for Technical and Procurement Audit and

Usability Assessment of MDP3-W1 Sub-projects (by End of Cycle I)

Assignment # 4.3.3 (West Bank)

SUBMITTED BY:

Al Jawhari Consulting Engineers

Eng. Abdelhakeem Al Jawhari

DECEMBER 2019

TABLE OF CONTENTS

1. Background: ...................................................................................................................................... 6

2. MDP3 components: .......................................................................................................................... 6

3. Background on the assignment: ....................................................................................................... 8

4. Objective and scope of the assignment: ........................................................................................... 9

5. Findings: .......................................................................................................................................... 11

6. Methodology of Procurement Audit............................................................................................... 12

6.1 Identifying the list of Projects .................................................................................................... 12

6.2 Approach and Process ................................................................................................................ 13

6.2.1 Desk review and data collection .......................................................................................... 14

6.2.2 Further and preparation action ........................................................................................... 14

6.2.3 Field visits and key informant interviews (KIIs) ................................................................... 14

6.2.4 Key informant interviews KIIs with MDLF team .................................................................. 15

6.2.5 Key informant interviews KIIs with contractors and LTCs ................................................... 15

7. Summary Sheets: ............................................................................................................................ 16

7.1 Summary Sheet -1:

(Al Eizariyya Municipality Project: Purchasing Excavator) .................................................................. 17


(Aqqaba Municipality Project: Construction of Multipurpose playground) ....................................... 20


(Ash Shoyoukh Municipality Project: Rehabilitation of Internal Roads) ............................................ 23


(Azzun Municipality Project: Rehabilitation of Internal Roads) ......................................................... 27


(Beit Jala Municipality Project: Enlarging the Municipality Building and Establishing a Customer

Service Center) .................................................................................................................................... 30


(Beit Sahur Municipality Project: Rehabilitation of Internal Roads)................................................... 33


(Beit Ummar Municipality Project: Rehabilitation of Internal Roads) ................................................ 36

Procurement Audit Report Page 3 of 47


(Kafr Rai’e Municipality Project: Supply of Hydraulic Platform Utility Vehicle) ................................. 39


(Silwad Municipality Project: Rehabilitation of Internal Roads) ......................................................... 42


(Consulting services project (1):Municipal Ranking Update – End of MDP3 – Cycle1) ...................... 45


(Consulting services project (2): Rollout of O&M Software - West Bank & Gaza (16Municipalities in

the WB & 8 in Gaza)) ........................................................................................................................... 46

8. Annexes: .......................................................................................................................................... 47


LIST OF ABBREVIATIONS:

AFD Agence Francaise pour Development

BD Bidding Documents

BEC Bid Evaluation Committee

BG Bank Guarantee

BOC Bid Opening Committee

BoQ Bill of quantities

BOS Bid Opening Sheet

CQS Selection based on consultant Qualifications

EMP Environmental Management Plan

ESMP Environment and Social Management Plan

EOI Expression of Interest

EU European Union

FP Funding Partner

GIA Grant Implementation Agreement

GIZ German Technical Cooperation

IDA International Development Association

IFB Invitation for Bid

KfW Kreditanstalt für Wiederaufbau (German Bank for Development)

KIIs Key Informant Interviews

KPIs Key Performance Indicators

LCS Least-Cost Selection

LG Local Government

LGUs Local Government Units

LTCs Local technical consultants

MDLF Municipal development and lending fund

MDP Municipal Development Program

MoLG Ministry of Local Government

NCB National Competitive Bidding

NOA Notification of Award

NUCs Notice of Unsafe Condition


O&M Operation and maintenance

PCU Palestinian Contractors’ Union

PE Procurement Entity

PEC Proposal Evaluation Committee

PLO The Palestine Liberation Organization

PNA Palestinian National Authority

POC Proposal Opening Committee

QBS Quality- Based Selection

QCBS Quality & Cost Based Selection

RFP Request for Proposal

RFQ Request for Quotation

SDC Swiss Agency for Development and Cooperation

SDIP Strategic Development and Investment plan

SSS Direct Selection-Single-Source Selection

TIN Tax identification No.

ToR Terms of Reference

VAT Value Added Tax

VNG International Cooperation Agency of the Association of Netherlands Municipalities

VO Variation Order

WB World Bank


1. Background:

The Palestine Liberation Organization (PLO), for the benefit of the Palestinian National Authority

(PNA), has received an initial financing of 130 Million Euros from the World Bank (WB)-International

Development Association (IDA), Federal Republic of Germany through KfW, Denmark, SDC, VNG, GIZ

and AFD and EU towards the cost of the 3rd phase of the Municipal Development Program (MDP3).

The MDP 3 is aligned with the Palestinian Authority’s (PA) long-term strategy to consolidate and

strengthen service delivery in the Local Government (LG) sector towards financially sustainable Local

Government Units (LGUs), as specified in the Ministry of Local Government (MoLG)’s Sector Strategy

2017-2022.

MDP 3 is at the center of a series of interlocking interventions by the multi donors in collaboration

with the central government to strengthen the institutional development, accountability and

financial sustainability of local governance and service delivery in Palestine.

The MDP3 will consolidate and scale up past gains under MDP1 and MDP2 in municipal performance

and accountability enhancement and will start enabling the environment at the central level and

municipal partnerships with the private sector to improve the efficiency and sustainability of

municipal services.

2. MDP3 components:

Component 1: Municipal performance and Service Delivery. MDP 3 is the third municipal

development project to support and incentivize improvements in the development of municipal

management capacity. Previous MDPs financed municipal infrastructure and service delivery

through the provision of basic block and performance-based grants, and provided demand-driven

capacity development support for municipalities. This approach was very innovative at design

and has shown to be highly effective. MDP 3 builds on this overall approach while focusing more

on improving financial sustainability and accountability in municipal service provision. Like MDP

1 and MDP 2, municipal performance will be measured through Key Performance Indicators

(KPIs), yet these have been substantially revised to reflect a greater focus on the sustainability of

municipal services. Performance measurements will encompass three main areas for reform: i)

Financial Performance and Sustainability, ii) Institutional Performance, and iii) Transparency,

Accountability and Participation.


Component 2: Capacity Development. This component of the project would continue to

strengthen municipal capacity in the project’s three performance areas: (i) financial sustainability,

ii) institutional performance and iii) transparency, accountability and participation. In addition,

specific attention will be paid to higher order needs of municipalities that will enable them to

improve their financial sustainability and credit worthiness, strengthening other core municipal

functions as well as strengthen their social accountability to their citizens and stakeholders.

Municipal capacity development activities will continue to be identified by municipalities and

MDLF to enable municipalities to achieve results and improve their performance. The

performance measuring system will be applied to identify relevant capacity building activities to

the municipality, which will be delivered to improve capacity and sustain results achieved.

Component 3: Municipal Partnership Projects. This component will provide technical assistance

and project financing to municipalities to: a) engage more effectively with the private sector, and

b) work across administrative boundaries to develop joint and/or innovative investments for

municipal service delivery and local economic development. The Bank will finance only the

technical assistance portion under Sub-component A.

- Sub-Component A: Private Sector Partnership Support.: In order to better leverage

private sector engagement, this component will support municipalities to identify,

develop, and structure opportunities for private sector participation in municipal service

delivery and local economic development on a demand-driven basis.

- Sub-Component B: This sub-component will finance top-up payments complementary to

the grant allocations under component 1 to incentivize municipal joint and/or innovative

investments based on municipal demands to leverage economies of scale for municipal

investments and facilitate financially sustainable municipal investments.

Component 4: Project Implementation Support and Management. This component will finance

goods and consultant services for monitoring and evaluation, outreach and communication and

local technical consultants for the engineering supervision of Component 1 and the MDLF

management fee.


3. Background on the assignment:

This assignment is located in the context of measuring one on the key indicators of MDP3, namely,

“Percentage of investments financed under MDP3 in adequate technical state and used as

intended”

The (MDLF), as the delegated implementation agency, is using part of the (KFW) Fund under

component 4, particularly the M&E sub-component, to conduct the technical and procurement audit

of a sample of MDP3-Cycle 01 -component 1 sub-projects in the West Bank by hiring an individual

consultant:

The Technical Audit will assess a representative sample of infrastructure sub-projects

implemented in MDP3-cycle01 - focusing on the following areas:

- The technical quality and structural soundness, and the compliance of implemented sub-

projects with technical specifications.

- The compliance with safeguard measures in the Environmental Management Plan (EMP) for

MDP.

- The effectiveness of the implementation from institutional, social, technical, and operational

dimensions.

- The broad areas under the technical audit including: sub-project selection, technical

soundness, appraisal, appropriateness and sustainability construction management,

construction quality, physical status and functionality of the sub-projects; environmental

consideration, capacity building activities, O&M management; monitoring mechanism.

The procurement audit, will assess a representative sample of subprojects financed by the KFW

focusing on the following areas:

- The procurement quality and the compliance of implemented sub-projects with MDLF

procurement guidelines & procedures as stated in the MDLF procurement manual.

- The approaches and processes during the procurement & contacts Management.

- The effectiveness of the procurement process from institutional, planning, technical, and

operational dimensions.

- The broad areas under the procurement audit includes: procurement planning, procurement

Methods, tendering process, evaluation & awarding process and contracts Management

process.


4. Objective and scope of the assignment:

The objective of the assignment is to review and assess the processes and the manner, in which the

sub-projects have been implemented, norms, specifications construction quality, physical and

financial status, functionality, usability, operation and maintenance of the subprojects. To meet the

objective of the assignment, the scope of work includes the following:

A) Technical Audit for a representative sample of sub-projects under MDP3-Cycle 01 – regardless

from which the sub-projects are financed:

- To assess the appropriateness of technical options (including the design, drawings, and

specification).

- To assess the quality and soundness of design and technical specifications and compliance with

Palestinian or international standards.

- To assess the quality control (technical soundness of construction) aspects and procedures

adopted throughout the implementation.

- To check whether the selected sub-projects were constructed as per design, drawings, and

specification and contract requirements

- To assess whether the physical progress is in line with the financial progress.

- To assess the effectiveness of the procurement process adopted by the municipality.

- To assess the operation and maintenance arrangements, monitoring and evaluation and the

sustainability of the implemented sub-projects.

- To assess the compliance with social and environmental safeguard measures according to the

Environmental Management Plan (ESMP) for MDP3. For instance, the technical audit shall assess

the impact on persons with disability, for example if the road projects have facilitated their

accessibility (in case it is already not considered).

- To Identify the problems/challenges faced by each stakeholder in fulfilling their roles in the

implementation of the sub-projects, particularly “Municipality, contractor, MDLF, LTCs,

Beneficiaries……etc”.

- As part of the sub-projects feasibility, the consultant has to assess the cost efficiency and the

value of money, by comparing the estimated and final benefits of the project (before vs after the

implementation).

- To assess the infrastructure sub-projects implemented by municipalities under MDP3 Cycle 01

in terms of (functionality, usability and utilization, intended outcomes, unintended results if

any).

- Based on the findings and observations made in the field, the consultant is requested to

recommend ways and lessons learnt for future improvements.


B) Procurement audit for a representative sample of subprojects financed by the KFW under

MDP3-Cycle 01.

- To assess the compliance of implemented sub-projects with the MDLF’s procurement manual.

Incase compliance is neither satisfactory nor sufficient; the report should indicate appropriately

the reason/s for the non-compliance, and their impact on the procurement outcome.

- To assess the effectiveness of the procurement process adopted by the municipality in

accordance to MDLF procurement Manual.

- To assess the soundness of the tender evaluation reports.

- To assess the effectiveness of the contract management process adopted by the municipality.

- To assess whether selected sub-projects were implemented according to contract concerning

time, volume and design.

- To assess whether the materials procured using MDP3 Funds were properly recorded in the

accounts of municipalities and/or MDLF.

- To assess whether the Materials procured using the MDP3 Funds were properly delivered and

installed on site.

- To assess the maintenance/keeping of procurement records for each project by the MDLF and

municipalities.

- To Identify the problems/challenges faced by each stakeholder in fulfilling their roles in

procurement & Contract Management process of the sub-projects, particularly “Municipality,

contractor, MDLF, LTCs, Beneficiaries……etc”.


5. Findings:

Finding 1:

Generally, all projects were implemented in compliance with MDLF procurement manual and tender documents. However, the auditor noticed a minor comment regarding the selection of procurement method for one project. (Review the minor comment by checking Summary sheet No. 8)

Finding 2:

The tender evaluation report was sound and efficient. However, the auditor noticed a minor comment regarding the post qualification requirements for a bidder in one project. (Review the minor comment by checking Summary sheet No.5).

Finding 3:

The contract management process adopted by all municipalities was satisfactory covering administrative, financial, managerial and technical tasks. However, the auditor noticed a minor comment regarding dealing with handover process in one project. (Review the minor comment by checking Summary sheet No.3).

Finding 4:

The maintenance and keeping process (Filing) for both the MDLF and the Municipalities was well organized covering the whole project life cycle.


6. Methodology of Procurement Audit

The auditor adopted the following methodology:

6.1 Identifying the list of Projects

A representative sample of eleven sub-projects funded by KFW was selected for procurement audit.

The selected sub-projects covered several categories including works, goods and consultancy

services. The sample selection was based on the geographical areas, projects eligible sectors, projects

size, municipality’s size , project status and cover at least 15.8% of total allocation for MDPIIICI \W1 -

West Bank funded by KFW. The selection methodology is illustrated as follows:

The selection methodology of sub-projects sample:

Geographical distribution Sub-project categories Type of intervention

At least one project shall be selected from each Cluster in west bank.

The sub projects shall be selected to cover several categories.

New development project, rehabilitation project, others.

The 11 projects are distributed

over all clusters.

• Jenin and Tubas

• Nablus and Salfit

• Tulkarm and Qalqilia

• Ramallah &Albeireh

• Jerusalem and Jericho

• Hebron and Bethlehem

The selected sample represents the

following sub-project categories:

• 7 Works – (5 Roads and 2 public

facilities).

• 2 Goods (Supply projects)

• 2 Consulting services

• Majority – Rehabilitation

projects.

• Minor – New development

projects.

• Minor – Others.

Sub-project Status Procurement & Selection methods Allocation budget.

Completed and ongoing projects.

The selected sub- projects shall cover the different procurement & selection methods.

The selected sub-projects shall vary in allocation values from small to large size projects.

The selected sample covers both

completed and ongoing projects

where the majority of selected

projects are completed.

• 9 Completed projects

• 2 Ongoing projects

The selected sample covers the

following procurement and selection

methods:

Procurement methods:

• NCB

• RFQ-Shopping

Selection methods:

• CQS

• SSS

The selected sample covers

projects of different allocations as

follows:

• 2 projects < 50,000 Euros

• 1 project (50,000 – 100,000

Euro)

• 6 projects (100,000 Euro-

200,000).

• 2 projects > 200,000 Euro.


As for the sectors, seven sub-projects were works (roads and public facilities), two were Goods, and

two were consultancy services as described in the table below.

Table.1: List of projects selected for procurement audit

No. Procuring

entity Title of the Selected sub-

project Governorate

Project Category

Proc. /Selection Method

Gross Allocation

Euro Status Type of audit

1. Al

Eizariyya Purchasing excavator Jerusalem Goods RFQ 75,908 Completed Procurement

2. Aqqaba Construction of

multipurpose play ground Tubas Works RFQ 107,295 Completed

Technical &

Procurement

3. Ash

Shoyukh

Rehabilitation of Internal

Roads Hebron Works NCB 142,662 Completed

Technical &

Procurement

4. Azzun Rehabilitation of Internal

Roads Qalqilia Works RFQ 147,650 Completed Procurement

5. Beit Jala

Enlarging the municipality

building and establishing

a customer service center

Bethlehem Works NCB 227,136 Ongoing Procurement

6. Beit Sahur Rehabilitation of Internal

Roads Bethlehem Works NCB 190,826 Completed

Technical &

Procurement

7. Beit

Ummar

Rehabilitation of Internal

Roads Hebron Works NCB 235,122 Completed Procurement

8. Kufor Ra'ie Supply of Hydraulic

Platform Utility Vehicle Jenin Goods NCB 78,000 Completed Procurement

9. Silwad Rehabilitation of Internal

Roads

Ramallah &

Albireh Works RFQ 112,192 Completed Procurement

10. MDLF Municipal Ranking update

– End of MDP3- Cycle 1 -

Consulting

services CQS 35,000 Completed Procurement

11. MDLF

Rollout of O&M software

– West Bank & Gaza (16

Municipalities in the WB

and 8in Gaza)

- Consulting

services SSS 139,200 Ongoing Procurement

Total Gross Allocation for selected sub-projects (Euro) 1,490,991

Grand Total Allocation for MDPIIICI \W1 - West Bank funded by KFW (Euro) 9,393,090

Percentage of sample projects allocation per MDPIIICI \W1 - West Bank projects funded by KFW 15.8%

6.2 Approach and Process

In order to accomplish the procurement audit for the selected projects, the auditor conducted the

following:


6.2.1 Desk review and data collection

o For files and documents submitted by MDLF including MDP3, MDLF Operation Manual,

Appraisal and Approval of sub-projects for implementation, M&E, Progress and Completion

reports of the sub-projects, List of all sub projects within this phase, MDLF procurement

Manual and other supporting documents.

o As part of the data collection, the

consultant, conducted a thorough Desk

Review for all documents and files of the

municipalities and MDLF for the 9 projects

covering works and goods. Additionally,

the files of MDLF for the two consultancy

assignments were checked as well.

6.2.2 Further and preparation action

o The Auditor prepared groups of questions for the Key Informant Interviews (KIIs) which

included questions covering the procurement for the municipalities and MDLF for all

projects under procurement audit.

o The Auditor prepared procurement compliance sheets for the 9 projects which were as

much comprehensive as possible. Also separated compliance sheets were prepared for the

two consultancy assignments.

6.2.3 Field visits and key informant interviews (KIIs)

o The auditor conducted field visits to all 9

sites of the projects to make sure the

projects are there, fully functional and

constructed according to the scope.

o Documentation through photos covering all

9 projects.

o The project files of the municipalities were

checked paying more attention to the procurement related documents. Copies were taken

for certain documents in the files for documentation and evidence purposes.

o KIIs were conducted with all nine municipalities.


6.2.4 Key informant interviews KIIs with MDLF team

o The auditor also conducted interviews with

the MDLF team who were following the

project implementation, namely the

procurement, engineering and finance.

o More clear idea was obtained about many

issues covering the procurement

guidelines, the technical administration of

the projects and the financial aspects

connected to how the projects were managed.

o The level of coordination, key issues and the level of success and lessons learned for future

projects.

6.2.5 Key informant interviews KIIs with contractors and LTCs

o In coordination with MDLF team, a

selection of a couple of contractors and

LTCs to be interviewed was done. The KIIs

were conducted at MDLF offices. More

clear ideas were obtained about many

issues covering the challenges faced, and

the relations between different

stakeholders.


7. Summary Sheets:



(Al Eizariyya Municipality Project: Purchasing Excavator)

1. PROJECT OVERVIEW:

Project Name: Purchasing Excavator

Project Number: MDPIIIC1-0123003-02 Project status: Completed

Procurement for: Goods Procurement Method:

Shopping

Estimate value:

70,000 Euro

Original contract value:

75,908 Euro

Project final value:

69,835.36 Euro

Project original duration: 120 -150 days Delay: 28 days

Contractor: Palestinian Tractor and Equipment Co.

LTC: Arabtech Jardaneh.

2. RESULTS AND FINDINGS SUMMARY:

I. Compliance with procurement guidelines

II. Procurement efficiency

III. Soundness of tender evaluation report

The implementation project was in compliance with the MDLF’s procurement manual and the tender documents except the minor comment on: The bid validity: The time specified and requested was only 45 days. As per procurement guidelines, the bid validity should be from 60 to 120 days. However, then the municipality requested to extend the bid validity period to become 90 days before the bid validity expiration date.

The effectiveness of the procurement process adopted by the municipality was in accordance to MDLF procurement Manual.

The tender evaluation report was sound, followed the MDLF requirements and the lowest evaluated responsive bidder was awarded.

IV. Contract management V. Implementation of project according to contract

VI. Maintenance and keeping of procurement records

The contract management process adopted by the municipality was effective in line with the agreed conditions covering delivery, payments, quality control, and completion and liquidated damages.

The selected project was implemented following the tender documents, but there was a delay which was dealt Properly by the municipality.

The maintenance/keeping of procurement records were well organized by both MDLF and Municipality.

Challenges faced by stakeholders:

Challenges mainly connected to put the specifications for the excavator and the time. Both were overcome


3. PROCUREMENT PROCESS OVERVIEW:

Bidding

Question Answer Comments

Number of RFQs Sent Out 4

Number of Quotations Received 3

Was there an advert in addition to the short list? (y/n)

Yes - Procurement Notice was advertised in Al Quds

newspaper on 15-July-2018 and 16-July-2018

Number of Amendments to the Request for Quotation

0

Date of Invitation for Quotations 15-July-18

Quotation submission deadline (date and time)

29-July-18 12:00 pm

Quotation prices: - EUR 72,900, Tower Mechanical Equipment Co. IVECO - EUR 75,908, Palestinian Tractor and Equipment

Company. - EUR 79,800, As Salam investment Group.

Number of Quotation Submission Deadline Extensions

0

Quotation Submission Deadline Extensions (in days)

0

Bid Validity Period (in days) 45

Number of Bid Validity Period Extensions

1 The municipality sent a request for bid validity extension to the contractor on 9-Sep-2018 before the bid validity expiration date.

Bid Validity Extension Period (in days) 45 The bid validity period was 90 days after the extension of 45 days.

Bid Evaluation and Award


Quotation opening Date 29-July-18 Dated on 29-July-18 and signed by the BOC.

Tender Evaluation Report on file (y/n) yes Signed by the BEC.

Est. Contract Amount from EUR 70,000 Awarded Contract varied from Estimate by +4.1%

Lowest Evaluated Quotation Amount

EUR 72,900

Second Lowest Evaluated Quotation Amount

EUR 75,908

Awarded Contract Amount EUR 72,900 EUR 72,900 from MDPIII project through MDLF.

Performance Security on file (y/n) Yes

- Performance Security with value of EUR 7,195 issued by Cairo Amman Bank on 25-Sep-18 and valid till 24-Mar-19.

- Performance security was extended to be valid till 24-May-2019.


Contract


Contract Date 4-Oct-18

Actual Contract/Purchase Order Start Date

7-Oct-18

Completion Period/Delivery Period as per Awarded Contract (in days)

120-150 Days

Completion Period/Delivery period Extension or Delay (y/n)

Yes -The excavator was supplied on 4/4/2019 with unjustified delay of 28 days.

Initial handover date (Comp. in Contract 7-Mar-19)

07-May-19

Advance Payment Amount EUR 0

Percentage of Works Completed/Goods delivered

100%

Payment requests on file Yes

Contract Amount Paid as of Date of PPR

EUR 69,835.36 MDLF Share (EUR 69,835.36): EUR 69,835.36: 1st and final payment.

(Optional) Liquidated Damages Deducted from Payments (y/n)

Yes Liquidated damages were applied for delay of 28 days and the deduction amount from payments was 6072.64 EUR.

Contract Terminated (y/n) No



(Aqqaba Municipality Project: Construction of Multipurpose playground)


Project Name: Construction of Multipurpose playground


Procurement for: Works Procurement Method: Shopping

Estimate value:

136,312 Euro


107,295 Euro


103,015.8 Euro

Project original duration: 120 days Extension / Delay: 88 days

Contractor: Bustami & Jom’a

LTC: Universal Group for Engineering and Consulting





The implementation of the project was in compliance with the MDLF’s procurement manual and the tender documents for the whole project life cycle.


The tender evaluation report was sound and followed the MDLF Requirements.



The contract management process adopted by the municipality was effective in line with the agreed conditions covering delivery, payments, completion and liquidated damages.

Generally, the selected project was implemented following the design and specification, but there was a big delay that the municipality should dealt with better.


Challenges and problems faced by stakeholders.

The problems and challenges were mainly connected to dealing with the delays and performance of the contractor by municipality. Also the contractor was not able to deliver on times.



Bidding





Yes - Procurement Notice was advertised in Al Quds

newspaper on 27-Nov-2018 and 28-Nov-2018.


0

Date of Invitation for Quotations 1-Dec-18


10-Dec-18 11:00am

Quotation prices: - EUR 107,295 , Bustami & Jom’aa Company for

Contracting. - EUR 119,771 , Quality & Control for contracting. - EUR 129,104 , Ala’a Al Dein office for Contracting. - EUR 133,190 , RCC for General Contracting Co. - EUR 136,915 , Berlis Contracting Co. - EUR 137,790 , Al Tamayoz Contracting Company. - EUR 146,360 , Al Khair Company for Contracting. - EUR 148,520 , Al Beit Al Ateeq for contracting

&general contracts. - EUR 149,466 , Perfect Company for Contracting.


0


0

Bid Validity Period (in days) 120 120 days from quotation opening date.


0

Bid Validity Extension Period 0



Quotation opening Date 10-Dec-18 Dated on 10-Dec-18 and signed by the BOC.


Estimate Contract Amount EUR 136,312

Awarded Contract varied from Estimate by -21% and the BOC noticed unbalanced prices in couple of items and increased the value of performance security to become 15% of the contract value as per bidding documents.


EUR 107,295


EUR 119,11

Awarded Contract Amount EUR 107,295 EUR 107,295 from MDPIII project through MDLF.


- Performance Security with value of EUR 16,100 issued by Bank of Palestine on 4-Feb-19 and valid from 10-Feb-2019 till 9-Aug-19.

- The Performance security was extended till 9-Nov-2019.


Contract


Contract / Purchase Order Start Date as per Awarded Contract

10-Feb-19


17-Feb-19


120 Days


Yes There was a long delay of 88 days, and the liquidated damages were applied for 12 days.

Completion date (Comp. in Contract 16-June-19)

12-Sep-19

Initial handover date 09-Oct-19



100%

Payment Requests on file (y/n) Yes

Contract Amount Paid EUR 103,015.8

MDLF Share (EUR 103,015.8): EUR 32,917.95: 1st payment (MDLF) EUR 16,759.8: 2nd payment (MDLF) EUR 24,124.5: 3rd payment (MDLF) EUR 29,213.55: 4th and final payment (MDLF)

(Optional) Liquidated Damages Deducted from Payments (y/n)

Yes Liquidated damages were applied for unjustified delays of 12 days.




(Ash Shoyoukh Municipality Project: Rehabilitation of Internal Roads)


Project Name: Rehabilitation of Internal Roads


Procurement for: Works Procurement Method: NCB

Estimate value:

213,400 Euro.


246,600 Euro.


246,600 Euro


Contractor: A’mal Development and Reconstruction Company

LTC: Arab Engineers






The effectiveness of the procurement process adopted by the municipality was in accordance to MDLF procurement Manual

The tender evaluation report was sound, followed the MDLF Requirements and the lowest evaluated responsive bidder was awarded.



The contract management process adopted by the municipality was effective except minor comment about dealing with delay and contractor performance.

The selected project was implemented following the design and specification, but there was a long delay.

The maintenance/keeping of procurement records were well organized by both MDLF and Municipality but giving privilege to MDLF files.

Challenges and problems faced by stakeholders:

Problems and challenges connected mainly to dealing with the delays and performance of the contractor by the municipality. As for the contractor, he was not able to start the work when he was handed over the site due to work in infrastructure within the site and bad weather conditions.



Bidding


Was the bid advertised in accordance with the loan agreement?

Yes - The bid was advertised in Al Quds and Al

Ayyam newspapers on 4-OCt-2018.

Was prequalification used? No

Was single stage-one envelope used or single stage-two envelopes?

Single Stage One envelope

Number of Bidding Documents Sold 3

Number of Bids Received 2

Bid prices: - EUR 246,600, A’amal Development &

Reconstructing Company. - EUR 251,340, Samrqand Organization for

Contracting.

Date of Invitation for Bids 4-Oct-18

Bid submission deadline (date and time) 4-Nov-18 @12:00 pm

Number of Bid Submission Deadline Extensions

0

Bid Submission Deadline Extensions (days) 0

Bid Validity Period (in days) 90 Days 90 days from bid opening date


0

Bid Validity Extension Period (in days) 0

Evaluation and Award


Record of Public Bid Opening on file and initialed (y/n)

Yes Dated on 4-Nov-18 and signed by the bid opening committee (BOC).

Bid opening Date 24-Nov-18 @12:00 pm

Bid Evaluation Report on file (y/n) Yes Signed by the bid evaluation Committee (BEC)

Bid Security / Bid Declaration on file (y/n) Yes The participated bidders submitted bid securities for amount of Euro 5,000.

The Notification of Intension to Award (NOA) to all Bidders. (y/n)

Yes

The procuring entity notified all the bidders participated that the bid will be awarded to A’amal Development & Reconstruction Co. for offering the lowest evaluated responsive bid.

Number of complaints received during the standstill period.

0

MDLF was informed through a letter from Ash Shoyoukh Municipality dated on 13-Dec-2018 that no complaints have been received during the 10 business days standstill period.

Contract Signing Date 5-Jan-19 MDLF’s no objection on the awarding decision dated on 13-Dec-2018.

Cost Estimate Amount EUR 213,400 Awarded Contract varied from Estimate by +13.4%.

Lowest Evaluated Bid Amount EUR 246,600

Second Lowest Evaluated Bid Amount

EUR 251,340

Awarded Contract Amount EUR 246,600 The Project Share (MDPIII): EUR 142,662 LGU Share: EUR 103,938

Were all other required RFB Conditions respected?

Yes

Performance Security on file (y/n) Yes - Performance security for a value of EUR

24,660 dated on 31-Dec-2018, issued by


Bank of Palestine, and valid from 1-Jan-2019 till 30-June-2019.

- Performance security was extended on 19-June-2019 to be valid till 31-Oct-2019.

Contract


Contract Date 5-Jan-19

Actual Contract Start Date 26-Jan-19 The municipality sent Notice to Proceed for the contractor on 23-Jan-19 informing him that he should start works on 26-Jan-19.

Completion Period/ Delivery Period as per Awarded Contract (in days)

120 days


Yes The completion period was extended for 55 days.

Number of Completion Period/Delivery Period Extensions

1

The contractor submitted a time extension request for 60 days through a letter dated on 24-Apr-19. However, the municipality rejected the request for extension on 2-May-2019. Then, the contractor submitted another time extension request through a letter dated on 20-May-2019 to extend the project till 20-July-2019. The reasons behind the extension were the delay occurred due to the municipality works in site, bad weather conditions and Ramadan days. The municipality approved to extend the project on 2-July-2019 till 20-July-2019. Comment: There was contradiction from municipality concerning dealing with delays and penalties. First refuses to give extension given the delays are not justified and the contractor is responsible. Eventually all delays were justified and the contractor was not penalized.

Duration of Completion Period / Delivery Period Extensions (in days)

55

Completion Date (Comp. in Contract: 26-May-19)

20-July-19

Comment: The contractor submitted a request for inspection and handover on 20/7/2019, the municipality visited the site on 6/8/2019 and reported the percentage of completion is 95%. Then, the inspection took place on 4/9/2019. However, the project was considered completed on 20/7/2019.

Initial handover Date 4-Sep-19

Initial handover committee included: - Mayor - 2 MDLF representatives - 2 Municipality Engineers - 2 LTC Engineers.


Bank Guarantee secured against Advance Payment (if applicable)?

NA


Percentage of Works Completed / Goods Delivered to Date

100%

Payment requests on file (y/n) Yes

Contract Amount Paid EUR 246,600

MDLF Share :EUR 142,662 LGU Share : EUR 103,938 EUR 40,000: 1st payment (LGU) EUR 58,576.5: 2nd payment (MDLF) EUR 30,000: 3rd payment (LGU) EUR 33,938: 4th payment (LGU) EUR 84,085.5: 5th and final payment.(MDLF)

Liquidated Damages Deducted from Payments (y/n)

No

Defects Liability Period Completion Date 4-Sep-20 The contractor provided a maintenance security valid from 5-Sep-19 until 4-Sep-20.




(Azzun Municipality Project: Rehabilitation of Internal Roads)


Project Name: Rehabilitation Of Internal Roads

Project Number: MDPIIIC1-0623048 Project status: Completed


Estimate value:

156,680 Euro


170,935.8 Euro


170,932.53Euro


Contractor: Brothers Contracting Company








The tender evaluation report was sound and followed the MDLF Requirements and the lowest evaluated responsive bidder was awarded.



The contract management process adopted by the municipality was effective in line with the agreed conditions covering delivery, payments, quality control and completion.

The project was implemented according to design and scope except for not being able to construct the culvert due to changes in the site.



Challenges and problems mainly connected to municipality who was not able to construct the culvert for storm water drainage and to replace by other solution later from own resources in addition to the delays.



Bidding




Was there an advert in addition to the short list ? (Y/n)

Yes Procurement Notice advertised in Al Ayyam newspaper on 9-Oct-2018 and 10-Oct-2018..


0

Date of Invitation for Quotations 9-Oct-18


23-Oct-18 12:00 pm

Quotations prices after deductions: - EUR 170,935.825 , Brothers contracting company - EUR 174,000 , Al Bara’ company for contracting. - EUR 175,980 , Al Murad contracting company. - EUR 188,120 , Ala’a Al Dein Cont. - EUR 194,853.36 , Al Eswed Company - EUR 212,030 , AL-Saleh Company for Building &

Constructions - EUR 249,758 , Sava contracting company


0


0

Bid Validity Period (in days) 60 60 days from bid opening date.

Number of Bid Validity Period Extensions 0

Bid Validity Extension Period ( days) 0



Quotation opening Date 23-Oct-18 Dated on 23-Oct-18 and signed by the BOC.


Cost Estimate Amount EUR 156,680 Awarded Contract varied from Estimate by + 8.4% .


EUR 170,935.825 EUR 147,650 from MDPIII project through MDLF. EUR 23,285.82 from LGU.


EUR 188,120

Awarded Contract Amount EUR 170,935.825

Performance Security on file (y/n) Yes Performance Security with value of EUR 17,500 issued by Al Quds Bank on 11-Nov-18 and valid till 12-May-19.


Contract


Contract Date 12-Nov-18


25-Nov-18 Notice to proceed sent by the municipality to contractor to inform him that he should start works on 25-Nov-2018.


90 Days


Yes There was justified delay for 64 days.

Completion date (Comp. in Contract 23-Feb-19)

28-Apr-19

Initial handover date 15-May-19



100%


Contract Amount Paid EUR 170,932.53 MDLF Share (EUR 147,650) LGU Share (EUR 23,282.53)


No




(Beit Jala Municipality Project: Enlarging the Municipality Building and Establishing a Customer Service Center)


Project Name: Enlarging the Municipality Building and Establishing a Customer Service Center

Project Number: MDPIIIC1-1022083-01 Project status: Ongoing


Estimate value:

473,955 Euro.


451,681 Euro.


N/A (Project is still ongoing)

Project original duration: 300 days Extension / Delay: about 50 days

Contractor: Riyad Abu Sada Office for Contracting

LTC: Arab Engineers







The tender evaluation report was sound and followed the MDLF requirements, the lowest evaluated responsive bidder was awarded.

Comment: However the BEC disqualify a bidder because he didn’t submit a classification certificate event it was not required. However that had no major effect on awarding contract because he was not the lowest bidder. More attention should be paid through evaluation process.



The contract management process adopted by the municipality was effective in line with the agreed conditions covering delivery, payments, quality control.

The selected project was implemented following the design and specification, but there is a delay (ongoing project).



Problems and challenges are mainly connected to very low response from the contractor in relation with the environmental and safety issues. There is a delay by the contractor which may affect the municipality plans in operation the building extension.


3. PROCUREMENT PROCESS OVERVIEW

Bidding



Yes - The bid was advertised in Al Quds and Al Ayyam

newspapers on 13-Oct-2018.



Single Stage One

envelope



Evaluated Bid prices: - EUR 451,681, Riyad Abu Sa’da Office for

General Contracting. - EUR 463,00,JV of Brothers Engineers for

Contracting and George Khoury. - EUR 490,851, Abu Al-Teen for General

Contracting. - EUR 105,965, Construction &

Electromechanical Engineering Bureau Co. - EUR 505,040 , Ancient Pharaohs Company. - EUR 582,350, Al-Yamak Undertaking Trading

and Investment Co. - EUR 624,533.5, United Contractors Company. - EUR 632,959, A’amal Development and

Reconstruction Company.

Date of Invitation for Bids 13-Oct-18

Bid submission deadline (date and time) 13-Nov-18 @12:00 pm


0


Bid Validity Period (in days) 90 Days 90 days from bid opening date.


0





Yes Dated on 13-Nov-2018 and signed by the bid opening committee (BOC).

Bid opening Date 13-Nov-18 @12:00 pm



The Notification of Intension to Award (NOA) Transmission Date

17-Jan-19

The procuring entity notified all the bidders participated that the bid will be awarded to Riyad Abu Sa’da Office for General Contracting for offering the lowest evaluated responsive bid.

The Notification of Intension to Award transmitted to all Bidders. (y/n)

Yes


0

Contract Signing Date 25-Feb-19 MDLF’s no objection on the awarding decision was received on 6-Feb-2019.


Cost Estimate Amount EUR 473,955 Awarded Contract varied from Estimate by -4.9%.



EUR 490,851

Awarded Contract Amount EUR 451,681 The Project Share (MDPIII): EUR 227,136. LGU Share: EUR 224,545.


Yes


- Performance security for a value of EUR 45,200 dated on 19-Feb-2019, issued by Bank of Palestine, and valid from 20-Feb-2019 till 19-Feb-2020.

Contract


Contract Date 25-Feb-19

Actual Contract Start Date 4-Mar-19 The municipality sent Notice to Proceed for the contractor on 26-Feb-19 informing him that he should start works on 4-Mar-19.


300 days

Number of Completion Period/Delivery Period Extensions

0 On the (date of visit: 23-Oct-2019)

Duration of Completion Period / Delivery Period Extensions (in days)

0

Completion Date (Comp. in Contract: 29-Dec-19)

NA Ongoing project.

Initial handover Date NA Ongoing project.

Actual Substantial Completion Date NA Ongoing project.



NA


40% On the date of visit (23-Oct-2019) the percentage of completion was 40%.


Contract Amount Paid EUR NA Payments until the date of visit: EUR 57,882.68:1st payment (MDLF) EUR 44,942.85: 2nd payment (MDLF).


No

Defects Liability Period Completion Date NA Ongoing project.




(Beit Sahur Municipality Project: Rehabilitation of Internal Roads)





Estimate value:

190,817.7 Euro


163,599 Euro.


200,115.52 Euro


Contractor: A’mal Development and Reconstruction Company

LTC: Arab Engineers







The tender evaluation report was sound and followed the MDLF requirements, the lowest evaluated responsive bidder was awarded.



The contract management process adopted by the municipality was effective according the agreed conditions covering delivery, payments, quality control, and completion except for dealing with the infrastructure documentation and timely action especially connected to the electricity cables, water connections and no coordination with the relevant authorities.

The scope is increased with a change in the design of the existing infrastructure but following the procedure adopted for VOs within the procurement guidelines including approval from MDLF.

There were long delays in the project which exceeded the original time given to the project.



Problems and challenges, they were mainly connected to very long delays and the action connected to infrastructure and bad weather conditions.



Bidding



Yes

- The bid was advertised in Al Quds and Al Hayat newspapers on 7-June-2018.

- No objection from the MDLF received on 6-June-2018.






Evaluated Bid prices: - EUR 169,169, A’amal Development and

Reconstruction company - EUR 188,449.5, Al Diese General Contracting

Co. - EUR 209,780 , Ahmad Ibraheem Salem Jubran

For Contracting

Date of Invitation for Bids 7-June-18

Bid submission deadline (date and time) 4-July-18 @11:00 am


0

Bid Submission Deadline Extensions (days)

0

Bid Validity Period (in days) 120 Days 120 Days from bid opening date.


0





Yes Dated on 4-July-18 and signed by the bid opening committee (BOC).

Bid opening Date 4-July-18 @11:00 am



The Notification of Intension to Award (NOA) transmitted to Bidders. (y/n)

Yes

The procuring entity notified all participated bidders that the bid will be awarded to A’amal Development & Reconstruction Co. for offering the lowest evaluated responsive bid.


0

Contract Signing Date 9-Aug-18

-MDLF’s no objection on the awarding decision dated on 6-Aug-2018. -Contract award was completed before the bid validity expiration date (5-Oct-2018).

Cost Estimate Amount EUR 190,817.7 Awarded Contract varied from Estimate by -16.6%.

Lowest Evaluated Bid Amount EUR 169,169 Second Lowest Evaluated Bid Amount

EUR 188,499.5

Awarded Contract Amount EUR 163,599 The Project Share (MDPIII): EUR 163,599

Contract Amount with Variation Order

EUR 190,819 The Project Share (MDPIII): EUR 190,819



Yes


- Performance security for a value of EUR 16,916.9 dated on 8-Aug-2019, issued by Bank of Palestine, and valid till 8-Feb-2019.

- Performance security was extended on 6-Jan-2019 to be valid till 8-May-2019 and the value was increased to become EUR 19,200 due to increase in the contract value.

Contract


Contract Date 9-Aug-18

Actual Contract Start Date 15-Aug-18


120 days


Yes

Project duration was extended for 45 days as per variation order #1 because new additional activities were added to the project (Rehabilitation of two internal roads around the project area extending directly from minor Isteeh Road) Moreover, there was justified delay for 81 days due to municipality works in site and bad weather conditions.

Completion Date (Comp. in Contract: 14-Dec-18)

16-Apr-2019 The completion date was extended to become 28-Jan-2019 due to variation order.

Initial handover Date 2-May-19 The initial hand over was conducted on 2-May-19 with attendance of Municipality, MDLF, LTC and contractor representatives.



NA


100%

Payment requests on file (y/n) Yes

Contract Amount Paid EUR 200,115.52

MDLF Share : EUR 190,818.96 LGU Share: EUR 9,296.56 EUR 32,904:1st payment. (MDLF) EUR 52140.38 : 2nd payment. (MDLF) EUR 42,911.78 : 3rd payment. (MDLF) EUR 62,862.8 : 4th payment. (MDLF) EUR 9,296.56 : 5th and final payment. (LGU) This payment was for additional works.


NO

Defects Liability Period Completion Date 7-May-20 The contractor provided a maintenance security issued by Bank of Palestine with a value of EUR 9,550 valid from 8-May-19 until 7-May-20.




(Beit Ummar Municipality Project: Rehabilitation of Internal Roads)





Estimate value:

282,655 Euro


260.695.5 Euro


260.695.5 Euro


Contractor: Arab Engineers

LTC: Al Hizam al Zahabi for Contracting Company







The tender evaluation report was sound, followed the MDLF Requirements and the lowest evaluated responsive bidder was awarded (the actual with the lowest price who meets all the post qualification required), given that the lowest contractor was disqualified because he did not submit all required for post qualification.



The contract management process adopted by the municipality was effective in line with the agreed conditions covering delivery, payments, quality control, and completion.

The Project was implemented following contract:

Time Volume Design.



No major challenges.



Bidding



Yes

- The bid was advertised in Al Hayat and Al Ayyam newspapers on 5-Sep-2018.

- No objection from the MDLF received on 4-Sep-2018.






Evaluated bid prices: - EUR 248,431, Khoyout El Shams Company. - EUR 260,695.5, Al Hezam Al Dahabi for

Contracting. - EUR 296,475, Al Rimah for Construction and

General Contracts. - EUR 325850, A’amal Development and

Reconstruction Company.

Date of Invitation for Bids 5-Sep-18

Bid submission deadline (date and time) 4-Oct-18 @12:00 pm


0

Bid Submission Deadline Extensions (days)

0

Bid Validity Period (in days) 90 Days Valid till 2-Jan-2019


0





Yes Dated on 4-Oct-18 and signed by the bid opening committee (BOC).

Bid opening Date 4-Oct-18 @12:00 pm




26-Nov-18

The procuring entity notified all participated bidders that the bid will be awarded to Al Hezam Al Dahabi for Contracting Company for offering the lowest evaluated responsive bid.


Yes


0

Contract Signing Date 20-Dec-18 Before the Bid validity expiration date (2-Jan-19).



One bidder has offered the lowest price but he was not awarded because of not providing all required for post qualification requirements (experience certificates).


EUR 260695.5


Awarded Contract Amount EUR 260695.5

Al Hizam Al Dahabi for Contracting Company was awarded as the lowest evaluated responsive bidder who met all required qualifications. MDLF Share: EUR 235,122 LGU Share: EUR 25,573.5


Yes


- Performance security for a value of EUR 26,070 dated on 17-Dec-2018, issued by Bank of Palestine, and valid till 18-Apr-2019.

- Performance security was extended on 20-Dec-2018 to be valid till 18-May-2019 and extended again on 15-May-2019 to be valid till 18-July-2019.

Contract


Contract Date 20-Dec-18

Actual Contract Start Date 29-Dec-18 The municipality sent to the contractor Notice to proceed in order to inform him that he could start works on 29-Dec-2018.


120 days


Yes There was justified delay for 14 days because of citizens’ complaints.

Completion Date (Comp. in Contract: 28-April-19)

9-May-2019

Initial handover Date 13-June-19



NA


100%

Payment Requests on file (Y/N) Yes

Contract Amount Paid EUR 260.695.5

MDLF Share: (EUR 235,122) LGU Share: (EUR 25,573.50) EUR 65,033.1: 1st payment. (MDLF) EUR 120,116.25: 2nd and final payment (MDLF). EUR 25,573.50 : 3rd payment (LGU) EUR 49,972.65: 4th and final (MDLF).


NO

Defects Liability Period Completion Date

17-June-20 The contractor submitted maintenance security issued by Bank of Palestine with a value of EUR 13,035 and valid from 17-June-19 till 17-June-20.




(Kafr Rai’e Municipality Project: Supply of Hydraulic Platform Utility Vehicle)


Project Name: Supply of Hydraulic Platform Utility vehicle

Project Number: MDPIIIC1- 0223019-01 Project status: Completed

Procurement for: Goods Procurement Method: NCB

Estimate value:

80,000 Euro


78,000 Euro


78,000 Euro

Project original duration: 180 days Extension / Delay: No delay or extension.

Contractor: Tower Mechanical Equipment Co. (TOMECO)






Comment:

The implementation project was in compliance with the MDLF’s procurement manual except that the municipality chose the method for tendering not according the thresholds limitations (NCB instead of Shopping) in order to increase the number of bidders as much as possible because the limited number of qualified suppliers in the local market.


The tender evaluation report was sound and followed the MDLF Requirements and the lowest evaluated bidder was awarded.



The contract management process adopted by the municipality was effective in line with the agreed conditions covering delivery, payments, quality control, and completion.

The selected project was implemented following: The design and specification Scope Time.



As for the problems and challenges, there was a challenge and difficulty in preparation of the specifications with limited experience that required consultations and technical support and the limited number of qualified companies in the local market.



Bidding



Yes - It was advertised in Al Hayat and Al Ayyam

newspapers on 26-June-2018.





Number of Bids Received 1 Evaluated bid price: - EUR 78,000, Tower Mechanical Equipment

Company.

Date of Invitation for Bids 26-June-18

Bid submission deadline (date and time) 25-July-18 @11:00 am


0


Bid Validity Period (in days) 90 Days 90 Days from bid opening date.


0





Yes Dated on 25-July-18 and signed by the bid opening committee (BOC).

Bid opening Date 25-July-18




23-Sep-2018 There was only one bidder. Notification of award – Letter of acceptance was sent to the contractor and dated on 23-Sep-2018.


NA There was only one bidder.


NA

Contract Signing Date 26-Sep-18




EUR NA

Awarded Contract Amount EUR 78,000 MDLF Share: (EUR 78,000)


Yes

Performance Security on file (y/n) Yes Performance security for a value of EUR 7,800 dated on 26-Dec-2018, issued by Al Quds Bank, and valid till 25-Mar-2019.


Contract


Contract Date 26-Sep-18

Actual Contract Start Date 26-Sep-18


180 days


No No Delays or Extensions.

Completion Date (Comp. in Contract: 26-Mar-19)

26-Feb-19

Initial handover Date 26-Feb-19



NA


100%

Contract Amount Paid EUR 78,000 MDLF Share : EUR 78,000 EUR 78,000:1st and final payment was requested by the contractor on 13-Mar-2019 .


NO

Defects Liability Period Completion 2 years from

handover date As per maintenance contract agreement.




(Silwad Municipality Project: Rehabilitation of Internal Roads)





Estimate value:

126,755 Euro


118,139 Euro


122,378.02 Euro.


Contractor: PMP Company.

LTC: JV of Madar Consulting Engineers & Projective - Project Management & Consultancy







The tender evaluation report was sound , followed the MDLF Requirements and the lowest evaluated responsive bidder was awarded.



The contract management process adopted by the municipality was effective in line with the agreed conditions covering delivery, payments, quality control, completion and liquidated damages.

Generally, the project was implemented according to the design and scope except minor variations and very long delays compared to the original time.



Problems and challenges, they were mainly connected to long delays and municipality work in the site.



Bidding


Number of RFQs Sent Out 5 No objection from MDLF dated on 25-Oct-2018.



No Not Required.


0

Date of Invitation for Quotations 27-Oct-18 & 28-Oct-18


5-Nov-18 12:00 pm

Quotations prices after deductions: - EUR 118,139 , PMP Company. - EUR 134,117.9 , Al Amjad Arabian Co. for

contracting and construction. - EUR 139,061.34 ,Abu Thaher Contracting Company - EUR 141,957 , Brothers Contracting Company


0


0

Bid Validity Period (in days) 60 60 days form quotation opening date.


0

Bid Validity Extension Period ( days) 0

Bid Evaluation and Award Overview


Quotation opening Date 5-Nov-18 Dated on 5-Nov-18 and signed by the BOC.

Tender Evaluation Report on file (y/n)

yes Signed by the BEC.

Cost Estimate EUR 126,755 Awarded Contract varied from Estimate by – 7.3% .


EUR 118,139


EUR 134,117.9

Awarded Contract Amount EUR 118,139 The lowest evaluated responsive bidder was awarded. EUR 112,192 from MDPIII project through MDLF. EUR 5,947 from LGU.

Performance Security on file (y/n) Yes Performance security with value of EUR 12,000 issued by Arab Islamic Bank on 18-Nov-18 and valid till 16-Aug-19.

Contract


Contract Date 21-Nov-18


27-Nov-18


60 Days


Yes The completion period was extended.


Number of Completion Period/Delivery period Extensions

2

Duration of Completion Period/Delivery period Extensions (in days)

56 days - The first extension was from 26-Jan-2019 to 3-Mar- 2019 and approved by municipality on 27-Jan-2019. -The second extension was from 3-Mar-2019 to 23-Mar-2019 and approved by municipality on 2-Mar-2019. The extensions were due to bad weather conditions and municipality works in site.

Completion date (Comp. in Contract 26-Jan-19)

21-Mar-19

Initial handover date 18-April-19 Initial handover committee included 2 Municipality engineers, MDLF representative and LTC engineer.



100%

Contract Amount Paid EUR 122378.02 MDLF Share (EUR 112,192) LGU Share (EUR 10,186.02) EUR 37,286.55: 1st payment (MDLF) EUR 10,186.02: 2nd payment (LGU) EUR 74,905.45: 3rd and final payment (MDLF) The increase in LGU share was due to increase in the asphalt, base coarse and concrete shoulders quantities in certain locations.


Yes EUR 6,089 were deducted from the final payment due to deviations of asphalt thickness and compacting percentage with specification as per contract conditions.

Defects Liability Period Completion Date

28-May-20 It was issued by Arabic Islamic Bank of EUR 7,000 and valid from 29-May-19 till 28-May-20.




(Consulting services project (1):Municipal Ranking Update – End of MDP3 – Cycle1)


Project Name: Municipal Ranking update – End of MDP3- Cycle1

Consultant Name: Agility Management and Financial Consultant

Selection Method: Selection based on consultant qualifications (CQS)

Project status: Completed

Contract Type: Lump Sum

Original Contract value 35,000 Euro including VAT Final contract value:

35,000 Euro including VAT

Project original duration: 3 months Extension: 1 month



The implementation project was in compliance with the MDLF’s procurement manual.


The procurement process adopted by the procurement entity was effective and in accordance to MDLF procurement Manual.

III. Soundness of evaluation report

The evaluation report of expression of interest was sound and followed the MDLF requirements. It included the justification of why the firm was selected in terms of performance expressions and following the evaluation criteria set for the consultancy service putting also the scores of all consultants.

IV. Contract management

The auditor believes that contract management process by MDLF was effective considering the following:

o The PE ensured that there was a proper implementation of the signed contracts following the agreed conditions and ToR.

o The MDLF team followed the consultant’s adherence to the work plan.

o The MDLF monitored the consultant reports and the availability of the key personnel

o The MDLF reviewed the quality of services provided by the consultant.

V. Maintenance and keeping of procurement records

The maintenance/keeping of procurement records were well organized following the sequence and the history of the project implementation with everything in good order.



(Consulting services project (2): Rollout of O&M Software - West Bank & Gaza (16Municipalities in the WB & 8 in Gaza))


Project Name: Rollout of O&M Software - West Bank & Gaza (16Municipalities in the WB & 8 in Gaza)

Consultant Name: Expert Turnkey Solutions

Selection Method: Direct Selection-Single-Source Selection (SSS)

Project status: Ongoing

Contract Type: Lump sum

Original Contract value 139,200 Euro including VAT.

Final contract value: The project is still ongoing, but there is no increase on contract value until now.

Project original duration: 6 months Extension: 128 days



The implementation of project was in compliance with the MDLF’s procurement manual.

II. Procurement efficiency The procurement process adopted by the procurement entity was effective and in accordance to MDLF procurement Manual.

III. Soundness of evaluation report

The evaluation report was sound and the request to award was forwarded to the FP with the justification of the selection covering performance, experience with reference to the previous selection following a competitive bidding both technically and financially. Also presented that the prices will be the same.

IV. Contract management

The auditor believes that contract management process by MDLF was effective considering the following:

o The PE ensured that there was a proper implementation of the signed contracts following the agreed conditions and ToR.

o The MDLF team followed the consultant’s adherence to the work plan.

o The MDLF monitored the consultant reports and the availability of the key personnel.

o The MDLF reviewed the quality of services provided by the consultant.

o The MDLF team shared in the inspection and handover committees nominated for all municipalities

V. Maintenance and keeping of procurement records

The maintenance/keeping of procurement records were well organized following the sequence and the history of the project implementation with everything in good order.


8. Annexes:

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