MANUAL FOR CONDUCTING VERY SMALL-VALUE PROCUREMENT
UNDER WORLD BANK/IDA SMALL GRANTS, LOANS AND CREDITS
III. VERY SMALL-VALUE PROCUREMENT UNDER WORLD BANK
LOANS AND CREDITS
The procurement methods listed below are used in the
projects financed by the by IBRD or IDA The thresholds for their use are given in the
procurement schedule of loan/credit agreements. The procurement officer must check the
procurement schedule to determine, based on the thresholds to be obtained from the
loan/credit agreement, the applicable procurement method. Beneficiaries of competitive
grants will apply one or more of these procurement methods for contracts estimated to cost
US$10,000 or more. This figure may vary from grant to grant.
III.1 National Shopping (NS). This method is used
for off-the-shelf items of goods or standard specification commodities available from
several sources of supply within the country.
Steps to be followed
Prepare technical specifications;
Prepare list of suppliers broad enough to generate good competition but to yield at
least three quotations, as required. Such a list may be prepared based on the past
experience, consultation with chambers of commerce, Internet, or direct market research;
Prepare Invitation to Quote (ITQ) using sample in Attachment 4;
Send the ITQ to the suppliers;
Make sure that the requirement of obtaining a minimum of three quotations has been
fulfilled;
Receive quotations by a deadline, open them and evaluate them;
Prepare an evaluation report using Attachment 5 and make recommendation for award of
contract;
Submit evaluation report to the official authorized to approve the contract award
recommendation;
Finalize the draft Purchase Order (included in the ITQ) and, along with the Conditions
of Supply, send to the selected supplier;
Keep the process confidential until the contract has been awarded;`
Receive and inspect goods and make payments as per the purchase order; and
Keep all documents on file.
III.2 International Shopping (IS). This method is
used for readily available off-the-shelf goods or standard specification commodities based
on comparison of prices obtained from a minimum of three suppliers in two different
countries.
Steps to be followed
Prepare technical specifications;
Prepare list of suppliers broad enough to generate good competition but to yield at
least three quotations, as required, from at least two different countries;
Prepare Invitation to Quote (ITQ) using sample at Attachment 6;
Send the ITQ to the suppliers on the list;
Make sure that the requirement of obtaining a minimum of three quotations has been
fulfilled;
Receive quotations by a deadline, open them and evaluate them;
Prepare an evaluation report using Attachment 7 and make recommendation for award of
contract;
Submit evaluation report to the official authorized to approve the contract award
recommendation;
Keep the process confidential until contract has been awarded;
Submit evaluation report to the official authorized to approve the contract award
recommendation;
Finalize the draft Purchase Order at Attachment 5, including Terms and Conditions of
Supply and send to the selected supplier;
Receive and inspect goods and make payments as per the purchase order; and
Keep all documents on file.
III.3 Minor Works (MW)
Steps to be followed
Prepare technical specifications, drawings, etc.;
Prepare list of qualified contractors;
Prepare Invitation to Quote (ITQ) using sample at Attachment 8;
Send the ITQ to the contractors on the list;
Make sure that the requirement of obtaining a minimum of three quotations has been
fulfilled;
Receive quotations by a deadline, open them and evaluate them;
Prepare an evaluation report using Attachment 9 and make recommendation for award of
contract;
Submit evaluation report to the official authorized to approve the contract award
recommendation;
Prepare the contract at Attachment 8 and have it signed by the contractor;
Keep the process confidential until contract has been awarded;
Help the contractor start up works;
Obtain invoices, receipts for payments, etc.; and
Keep all documents on file.
III.4 Selection of a Firm Based on Consultant’s Qualification (CQ).
Steps to be followed
Prepare terms of reference;
Request expressions of interest and qualification information on the consultants’
experience and competence relevant to the assignment, preferably through advertisement;
Establish a shortlist;
Select the firm with the best qualifications and references;
Prepare Request for Proposal using sample at Attachment 10;
Send the Request for Proposal to the selected firm to submit technical and financial
proposals for the assignment, in accordance with the terms of reference;
Review the proposals and prepare for negotiations;
Negotiate the contract (See Attachment 12 for Standard Forms of Contract) with the firm
and prepare minutes of negotiation as per the attachment;
Sign the contract;
Keep the process confidential until contract signature; and
Keep all documents on file.
III.5 Selection of Individual Experts.
Steps to be followed
Prepare terms of reference;
Seek expression of interest from individual consultants preferably through
advertisement;
Evaluate the expressions of interest and prepare a shortlist of a minimum of three
consultants based on their qualification and experience;
Send the terms of reference to the short listed individual consultants, along with the
request for CVs at Attachment 11;
Establish a small evaluation committee comprising two or three members;
Receive the CVs and evaluate them;
Prepare evaluation report using the form in Attachment 12;
If subject to Bank’s prior review, submit the evaluation report to the Bank;
After Bank’s agreement, negotiate contract (See Attachment 12 for Standard Forms of
Contract) with the selected consultant via email or on the phone;
Sign the contract; and
Keep the process confidential until contract is awarded.
III.6 Direct Contracting for Goods. The direct
contracting procedure can be used in the following cases: (a) an existing contract for
goods or works awarded in accordance with procedures acceptable to the Bank may be
extended for additional goods or works of a similar nature. The Bank shall be satisfied in
such cases that no advantage could be obtained by further competition and that the prices
on the extended contract are reasonable; and (b) the required equipment is proprietary and
obtainable only from one source.
Steps to be followed
Prepare estimated cost of the goods or works to be procured directly from a single
course;
Prepare justification for direct contracting;
Submit the estimated cost and the justification for direct contracting to the Bank;
If Bank accepts justification, proceed with the purchase by preparing technical
specifications and contract conditions;
Send contract conditions to the supplier;
Make sure that the prices being charged are at least the same as the supplier charges to
its other customers; and
Sign the contract.
III.7 Hiring of Government Agencies, Universities and
Research Institutes. In their own country of origin, government agencies are eligible
to participate in Bank-financed consulting assignments only if they can establish that
they: (a) are legally and financially autonomous, and (b) operate under commercial law. In
case of small grants, this requirement applies only when the private sector is involved in
competition. Also, in case of small grants, the project implementation agency should be
consulted concerning the hiring of government agencies.
The same principles apply to universities and research
institutes in the Borrower’s country. Government-owned universities or research
institutes that do not meet criteria (a) and (b) above, may be hired either directly or as
sub-consultants only when the services required are of a uniqu4e and exceptional nature
and no suitable alternatives are available. Their engagement should be agreed upon between
the Borrower and the Bank during project preparation and indicated in the project
appraisal document and in the loan/grant agreement, and a full justification given. Need
may arise to hire consultants from such institutions during the implementation of a
project in which case the Bank should be approached.
III.8 Hiring of Government Officials. Government
officials and civil servants cannot be hired under consulting contracts financed under
Bank loans, credits, trust funds and grants, since the principle of transparency would be
compromised and the opportunity for abuse heightened. This applies regardless of their
being on leave, with or without pay, or on secondment.
University professors or scientists from research
institutes can be contracted individually under Bank financing provided that they have
full time employment contracts with their institution, and have regularly exercised their
function for a year or more before they are contracted under Bank funding.
