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HomeProcurement/Supply Chain ManagementThe World Bank Procurement Methods for Goods and Non- Consulting Services

The World Bank Procurement Methods for Goods and Non- Consulting Services

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Approved procurement methods for goods and non- consulting services for the World Bank financed projects, are given in the Procurement Regulation for IPF Borrowers which was published on July 2016 and revised in November 2017 and August 2018. As per the procurement regulations, there are four approved selection methods and nine selection arrangements for procurement of goods and non- consulting services, which are as follows:

Approved Selection Methods

Request for Proposals (RFP)

A RFP is a competitive method for solicitation of proposals. It is used in the case where due to complexity of goods, services or works to be procured, the procurement organizations need proposers to come forward with customized solutions. In this way the requirement of the client can be addressed in a better manner. The RFP is normally a multi- stage process. The proposal is evaluated in different stages and evaluation criteria along with the method of rating the proposal is established at the very beginning.

Request for Bids (RFB)

This is a competitive method for evaluation of bids. This method is used when the buyer is able to describe the detailed specifications of the goods, works or services required. This is normally a single stage process and the qualifying criteria (minimum requirements are normally evaluated on the pass/ fail basis) is used for selection of bids. Rated type evaluation criteria are normally not used with RFB.

Request for Quotations (RFQ)

This is a simple method for comparing price quotations from different firms. This is more efficient as compared to the complex methods such as RFB or RFQ and is mostly used for the procurement of limited quantities of readily available off- the- shelf goods or non- consulting services.

Direct Selection

Direct selection method is suitable when there is only one suitable firm available or there is a justification for selecting a particular firm. In this method only one firm is approached and negotiated.

Direct selection method is normally used in the following circumstances:

(a) an existing contract, including a contract not originally financed by the Bank, for Goods, Works, or Non-Consulting Services, awarded in accordance with procedures acceptable to the Bank, may be extended for additional Goods, Works, or Non consulting Services of a similar nature, if:

(i) it is properly justified;

(ii) no advantage could be obtained through competition; and

(iii) the prices on the extended contract are reasonable;

(b) there is a justifiable requirement to re-engage a firm that has previously completed a contract, within the last 12 months, with the Borrower to perform a similar type of contract. The justification shall show that: i. the firm performed satisfactorily in the previous contract; ii. no advantage may be obtained by competition; and iii. the prices for the direct contracting are reasonable;

(c) the procurement is of both very low value and low risk, as agreed in the Procurement Plan;

(d) the case is exceptional, for example, in response to Emergency Situations;

(e) standardization of Goods that need to be compatible with existing Goods may justify additional purchases from the original firm, if the advantages and disadvantages of another brand or source of equipment have been considered on grounds acceptable to the Bank;

(f) the required equipment is proprietary and obtainable from only one source;

(g) the procurement of certain Goods from a particular firm is essential to achieve the required performance or functional guarantee of an equipment, Plant, or facility;

(h) the Goods, Works, or Non-consulting Services provided in the Borrower’s country by an SOE, university, research center or institution of the Borrower’s country are of a unique and exceptional nature; or

(i) direct selection of UN Agencies.

Conclusion

The choice of selection method depends upon the requirement of the buyer. The procurement organization should analyze the type of goods or services to be procured and then only decide which selection method is best suitable in a particular case.

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Rajesh Pant
Rajesh Panthttps://managemententhusiast.com
My name is Rajesh Pant. I am M. Tech. (Civil Engineering) and M. B. A. (Infrastructure Management). I have gained knowledge of contract management, procurement & project management while I handled various infrastructure projects as Executive Engineer/ Procurement & Contract Management Expert in Govt. Sector. I also have exposure of handling projects financed by multi-lateral organizations like the World Bank Projects. During my MBA studies I developed interest in management concepts.
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