Winning Contracts Under ADB Financed Projects

Lisbon

(July 9, 2015)

Presented by: Amr J. Qari

AGENDA

ADB at a Glance

Portugal’s Role in ADB Operations

ADB’s Consulting Opportunities

ADB’s Goods and Works Opportunities

ADB’s Procurement and Consultant

Recruitment Policy Framework

ADB at a Glance

Overview

Regional Multilateral Development Bank

Established in 1966

Partnership of 67 countries

42 client countries

Headquarters in Manila with 29 resident missions

and 3 representative offices (Tokyo, Frankfurt,

and Washington, DC)

3000+ employees from 61 member countries

ADB’s Vision: An Asia and Pacific Region Free of Poverty

Governance ADB Board of Directors

Australia; Azerbaijan; Cambodia; Hong Kong,

China; Kiribati; Fed. States of Micronesia; Georgia; Nauru; Palau; Solomon

Islands; Tuvalu

Kazakstan; Maldives; Marshall Islands;

Mongolia; Pakistan; Philippines; Timor-Leste

Republic of Korea; Papua New Guinea; Sri Lanka;

Taipei,China; Uzbekistan; Vanuatu; Viet Nam

People’s Republic of China

Canada; Denmark; Finland; Ireland;

Netherlands; Norway; Sweden

Belgium; France; Italy; Portugal; Spain;

Switzerland

Austria; Germany; Luxembourg; Turkey;

United Kingdom

Armenia; Cook Islands;

Fiji; Indonesia; Kyrgyz

Republic; New Zealand;

Samoa; Tonga; Armenia

Brunei-Darussalam

Malaysia; Myanmar;

Nepal; Singapore;

Thailand

Afghanistan; Bangladesh; Bhutan; India; Lao PDR; Tajikistan; Turkmenistan Japan

United States

Partners

Governments

Private sector

Nongovernment organizations

Development agencies

Community-based organizations

Foundations

Almost all ADB projects rely on consultants and contractors

Strategic Agendas

Inclusive Social Development

Environmental Sustainability

Regional Cooperation for poverty reduction

Five Core Specializations

Infrastructure

Environment including climate change

Regional Cooperation and integration

Financial sector development

Education

Other: Health, Agriculture, Disaster Assistance

Strategy 2020*

* http://www.adb.org/documents/strategy-2020-working-asia-and-pacific-free-poverty

Size of Operations ($ million)

Uncontracted Loan and Grant Funds By

Sector

Uncontracted Loan and Grant Funds by

Country

Largest Borrowers

Portugal’s Role in ADB Operations

Portugal’s Representation in ADB

ADB Governor for Portugal The Honorable Manuel Rodrigues, Secretary of State for Finance, Ministry of Finance ADB Director for Portugal Mr. Maurizio Ghirga

Portugal’s Share of Contracts under Loan,

Grant and Technical Assistance Projects

For more information, visit: http://www.adb.org/publications/portugal-fact-sheet

ADB Consulting Opportunities

Why pursue ADB-Financed Consulting Contracts?

Significant expenditure on consulting services (approximately $555M contracted in 2014)

Gateway to new opportunities in fast growing emerging

economies across multiple sectors Availability of funds is assured Risks related to transparency, fairness and integrity of

recruitment activities mitigated through ADB oversight Support a worthy development mission

Types of Consultants

Consulting entities

Consulting firms

Universities

NGOs

Research institutes

Others – UN Organizations

Individuals

Sourced through a firm

Independent Consultants

Technical Assistance Consulting Assignments PPTA (Project preparation) CDTA (Advisory TA) RETA (Regional TA)

Loan Project Consulting Assignments Project implementation supervision/support Capacity building Monitoring & Evaluation

Staff Consulting Assignments

Project preparation Evaluation Others

Others ABD engages consultants for ‘in-house’ projects, (e.g.

Information Systems and Technology Project, building services, etc.), internal training, auditing, institutional/organizational reviews etc.

Types of Consulting Assignments

1

1. Country Partnership Strategy

6. Evaluation 6 2

2. Concept

4

4. Loan Negotiation & Board Approval

5

5. Implementation

3 3. Preparation

Staff Consultants

Individual Consultants

Consulting Firm

Individual Consultants

Consulting Firm

Consulting Opportunities Across ADB Project Cycle

7-Step Plan to Win ADB-Financed Consulting Contracts

1. Collect relevant business intelligence

2. Build your brand name

3. Express interest

4. Know the country of the assignment and project site

5. Offer partnership to firms likely to be shortlisted

6. Prepare a responsive and strong technical proposal

7. Do good work

Step 1: Collect relevant business intelligence

Study Country Partnership Strategy (CPS) and Country Operations Business Plans (COBP)

Obtain information from procurement plans (and project documents)

Check ADB website for opportunities in the Consulting Services Recruitment Notices (CSRN) section

http://www.adb.org Click on “countries”

Click on “Strategy”

Step 1: Collect relevant business intelligence

Step 1: Collect relevant business intelligence

Step 1: Collect relevant business intelligence

Step 1: Collect relevant business intelligence

Navigate from adb.org to the Consulting Services Portal

Search Procurement Plans by: Country Year Sector

Step 1: Collect relevant business intelligence

http://www.adb.org/projects/documents/search/type/project_document/subtype/procurement-plans-1200

Step 1: Collect relevant business intelligence

Excerpt from Procurement Plan

Step 1: Collect relevant business intelligence

Search Recruitment Notices

Step 1: Collect relevant business intelligence

Visit ADB Headquarters/Resident missions

Visit departments responsible for projects

Brown-bag seminars

Business Opportunities Fairs

Visit government executing agencies

Register in ADB Consultant Management System (CMS)

Step 2: Build your brand name

Step 2: Build your brand name

Check opportunities on ADB website

Submit Expression of Interest on time

Step 3: Express Interest

Step 3: Express Interest

Considerations Capacity to compete Capacity to deliver Go it alone or associate/joint venture

Criteria Eligibility – pass/fail Management competence – (%) Technical experience – (%) Geographical experience – (%)

Get to know the EA

Obtain first hand information

Field assessment

Identify local partner(s)

Estimate the local costs

Step 4: Know the country of the assignment and project site

Step 5: Offer partnership to firms likely to be shortlisted

Network with potential partners online and offline

Step 5: Offer partnership to firms likely to be shortlisted

Business Opportunities Fair in Manila

ADB LinkedIn Networking Site

Step 6: Prepare a responsive and strong technical proposal

Technical proposal usually carries 80% of the weight under QCBS and 100% under QBS and FBS

Key Success Factors:

Understand client requirements (ADB, government)

Study the TOR

Select the best personnel

Personnel carry > 50% of the weight in technical score

Team Leader normally carries the heaviest weight

Visit the project site

Follow the instructions in the RFP

Understand the evaluation criteria

Clarify your understanding

ADB conducts Performance Evaluation Review (PER) for every consulting assignment and a poor performance record can affect consultants’ future opportunities with ADB

Drivers of strong performance:

Good team leader

Relationships with EA

Relationships between International & National consultants

Managing replacements

Step 7: Do good work

Learning from an Irish Success Story

Irish companies unknown to ADB because Ireland became an ADB member country in 2006

From 2007 to 2009, IrishCo (not its real name) submits many EOIs remotely but does not get shortlisted

IrishCo attributes failure to lack of: (i) track record in ADB financed assignments, (ii) strong commitment to winning ADB financed assignments and (iii) strong partnerships.

The Challenge:

An Irish Success Story

In 2009, IrishCo’s top management makes a strategic commitment to winning ADB financed assignments

Frequent travel to ADB HQ in Manila

Focus initially is exclusively on small assignments Shorter and simpler recruitment process

Recruiters are more willing to take risks with new firms due to smaller budget

Opportunity to build valuable project references

Opportunity to build brand recognition

Gain familiarity with ADB processes and personnel

By end of 2009, IrishCo wins three small contracts ($37K, $60K, $175K)

The Solution:

Learning from an Irish Success Story

Individual Contracts

PPTAs

Loan Implementation/ Grants

Project Scale

Time

Equipped with project references and a network of relationships, IrishCo targets larger assignments and wins two contracts worth $580K and $660K in 2011

The Solution:

IrishCo’s Business Development Approach

Learning from an Irish Success Story

Failure to disclose conflict of interest

Firm or any of its associates not organized in an ADB member country

Wrong type of technical proposal is submitted

Technical Proposal includes costs (QCBS)

Proposal was not delivered in time to meet deadline

Employees from executing agencies included in consultant’s proposal (caution for government employees in general)

Avoiding Common Mistakes

CV Missing CV

Nationality not stated

Certification not properly accomplished

Discrepancy between person-months in the RFP and proposed person-months

Discrepancy between type of experts in the RFP and those proposed

Proposal makes radical changes to the TORs (Note: Comments on the Terms of Reference)

Proposed price exceeds maximum stipulated in request for proposals

Avoiding Common Mistakes

ADB Procurement Opportunities

Significant expenditure on goods and works (approximately $8.2Bn contracted in 2014) Gateway to new opportunities in fast growing emerging

economies across multiple sectors Availability of funds is assured

Internationally accepted procurement procedures

Risks related to transparency, fairness and integrity of

procurement activities mitigated through ADB oversight Support a worthy development mission

Why pursue ADB financed goods and

works contracts?

Country Strategy and Business Plans Early notices General Procurement Notice Procurement Plan

Specific Procurement notices Invitation for Prequalification Invitation for Bids

Hop-on Opportunities Prequalified Contractors Contracts Awarded

Identifying Opportunities for

Goods and Works

adb.org Business Opportunities Portal

Early Notices: Procurement Plans

Specific Procurement Notices

Hop-on Opportunities

Bidding Dos

Carefully review qualification and evaluation criteria

Failure to satisfy qualification criteria results in high bid rejection rate

No conditionalities Do not add any conditions. Conditionalities or

qualifications will lead to rejection

Get official clarification If any provisions of the bidding document are unclear

or unacceptable, submit an official inquiry in writing to the EA before the bid closing date or such date as may be specified.

Be on time Submit bid within the stipulated deadline. Late bids

will not be accepted.

During bid opening ensure All relevant prices are read out All discounts are read out Presence and amount of bid security is read out No envelope remains unopened All the above is recorded correctly The record is signed by all bidders present and

by the buyer

Be Aware of Possible Extension There may be a request to extend the bid validity

and bid security periods by several months, as in certain cases the evaluation of bids requires more time than originally expected.

Bidding Dos

Make final check of bid

Amount, validity and text of Bid Security Signatures and power of attorney Joint venture agreement enclosed References enclosed Discounts in covering letter or

appropriate place as specified in the bidding document Marking of envelopes as appropriate

Bidding Dos

No Bid Security

Insufficient Amount of Bid Security

Lack of Supporting Documents

Incomplete Bids

Expiration and Extension of Bid Validity

Partial Quantities

Absence of test reports if required

Bids not signed

Conflict of interest

Bidding Don’ts

Geographies to Consider for New Business Development

Solomon Islands

Papua New Guinea

Timor-Leste and other Pacific States

Afghanistan

Cambodia

Pakistan

ADB Procurement and Consultant Recruitment Policy Framework

Key Policy Documents

Overarching Principles

• Economy and Efficiency

• Transparency

• Fairness

• Promotion of Domestic Industries

• Source of Goods & Services (Eligibility)

Downloadable at: http://www.adb.org/site/business-opportunities/operational-procurement/goods-services/documents

Downloadable at: http://www.adb.org/documents/guidelines-use-consultants-asian-development-bank-and-its-borrowers

Key Eligibility Restrictions

Compliance with UN Security Council decision

Conflict of interest (i.e., party has interests that could

improperly influence that party’s performance of official

duties or responsibilities, contractual obligations, or

compliance with law)

Government-owned enterprises in the borrower’s

country may participate if they can establish that they (i)

are legally and financially autonomous, (ii) operate

under commercial law and (iii) are not dependent

agencies of the borrower or sub-borrower

Declaration of ineligibility by ADB

Debriefing: Unsuccessful bidders/consultants may request debriefing from EA. If they are not satisfied with the explanation given, they may contact ADB directly. Complaints: Bidders/consultants may file complaint directly with ADB and may copy ADB on correspondence with EA.

Debriefing and Complaints

Prohibited Practices

Corrupt Practice the offering, giving, receiving, or soliciting, directly or indirectly, anything of value to influence improperly the actions of another party (e.g. bribery, kickbacks, extortion, bid manipulation)

Fraudulent Practice action or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an obligation (e.g., false bid security/bank guarantees, work certificates, financial statements)

Collusive Practice an arrangement between two or more parties designed to achieve an improper purpose, including influencing improperly the actions of another party (e.g. leaking of bid information, rigged specifications)

Coercive Practice impairing or harming, or threatening to impair or harm, directly or indirectly, any party or its property to influence improperly the actions of a party

Upon finding corrupt, fraudulent, collusive or coercive

practices, ADB will:

Declare a firm or individual ineligible either indefinitely or for a stated period of time

Reject a proposal to award contract

Cancel the corresponding portion of a loan

Prohibited Practices

How to Report Integrity Violations

http://www.adb.org/site/integrity/how-to-report-fraud