Standard Bidding Documents s5

ix

PROCUREMENT

OF GOODS

NCB-SBD

HARMONIZED BIDDING DOCUMENTS

DECEMBER 2015

Abbreviations

ADB…………. Asian Development Bank

BDF………….. Bidding Forms

BDS………….. Bid Data Sheet

COF…………. Contract Forms

DCS…………. Delivery and Completion Schedule

ELC………….. Eligible Countries

ELI…………… Eligibility Form

EQC…………. Evaluation and Qualification Criteria

EQU…………. Equipment Form

ERQ…………. Employer’s Requirements

EXP…………. Experienced Form

FIN………….. Financial Data Form

GCC………… General Conditions of Contract

ICB…………. International Competitive Bidding

ICC…………. International Chamber of Commerce

IFB…………. Invitation for Bids

Incoterms…… International Commercial Terms

ITB…………. Instructions to Bidders

JV…………… Joint Venture

LGRS……….. List of Goods and Related Services

LIT………….. Pending Litigation Form

NCB………… National Competitive Bidding

PCC………… Particular Conditions of Contract

PER………… Personnel Form

SBD………… Standard Bidding Document

SCC………… Special Conditions of contract

SS…………… Schedule of Supply

TS…………... Technical Specifications

WB…………. World Bank

Introduction

The Harmonized Bidding Documents for the Procurement of Goods-Small Contracts (Harmonized NCB-SBD Goods) has been prepared jointly by the World Bank (WB), Asian Development Bank (ADB) and the Ministry of Finance (MoF) of the Lao PDR for use in smaller contracts through National Competitive Bidding (NCB). It is based on the Master Document for Procurement of Goods, prepared by the Multilateral Development Banks and international Financing Institution. It reflects the structure and the provisions of the Master Document, except where specific considerations within the WB, ADB and the MoF have required a change.

The Harmonized NCB-SBD Goods- follows a post-qualification procedure that requires Bidders to submit the information pertaining to their qualification together with theirs bids. In this event, it will be necessary to ensure that a Bidder’s risk of having its bid rejected on grounds of qualification is remote if due diligence is exercised by the Bidder during bid preparation. For that purpose, fail-pass qualification criteria needs to be specified by the Purchaser in both the Invitation for Bids as well as the Bidding Document in order to enable Bidders to make an informed decision whether to pursue a specific contract and, if so, either as a single entity or in joint venture. Post-qualification criteria, requirements and relevant forms for submission are covered in Section III (Evaluation and Qualification Criteria) and Section IV (Bidding Forms).

This User’s Guide has been prepared to:

(a) simplify the Purchaser’s preparation of a specific bidding document (BD) for Procurement of Goods and Related Services;

(b) reduce the Bidders’ bidding time and effort;

(c ) facilitate and simplify the Purchaser’s evaluation and comparison of bids and Contract award; and

(d) minimize the time of the financing institutions which is required for the prior review of the HBD.

The provisions in Section I, Instructions to Bidders and Section VIII, General Conditions of Contract, must be used with their text unchanged. Any data and provisions that these sections require for a specific procurement and contract shall be included respectively in Section II, Bid Data Sheet and Section IX, Special Conditions of Contract.

This User’s Guide includes an initial section on how to prepare the Invitation for bids (IFB). The Purchaser should note that the Invitation for Bid (IFB) is neither a part of the Bidding Document nor a Contract Document.

The Bidding Process

The National Competitive Bidding (NCB) process includes six main phases :

·  Advertisement and notification,

·  Preparation and Issuing of the Bidding Document,

·  Bid Preparation and Submission,

·  Bid Opening,

·  Bid Evaluation and

·  Contract Award

Advertisement and Notification

The Invitation for Bids (IFB) shall be advertised in the local newspapers of general circulation (in English and Lao language). A copy of the Invitation for Bids shall be submitted to WB, ADB or MOF for approval and for publication in the WB-ADB or MoF website, as appropriate.

Preparation and Issuing a Bidding Document

The Purchaser and Bidder should keep in mind that:

(a) The Purchaser is responsible for preparing and issuing the Bidding Document (BD).

(b) The Bidding Document shall be prepared by the Purchaser on the basis of this Harmonized bidding document NCB-SBD-Goods, as this is a mandatory requirement for contracts to be financed by WB, ADB and the MoF.

(c ) The Purchaser shall prepare the Bidding Document using the published version of Harmonized NCB-SBD-Goods without suppressing or adding text to the sections of the document that must be used without modification, which are Section I (Instructions to Bidders) and Section VIII (General Conditions of Contract). All information and data particular to each individual bidding process must be provided by the Employer in the following sections of the Bidding Document:

·  Section II - Bid Data Sheet

·  Section III - Evaluation and Qualification Criteria

·  Section IV - Bidding Forms

·  Section V - Eligible countries

·  Section VI - Policy on Corrupt and Fraudulent Practices

·  Section VII -Works Requirements

·  Section IX -Particular Conditions of Contract

·  Section X -Contract Forms

(d) The following directions should be observed by the Purchaser when finalizing the Bidding Document:

·  In the preparation of the Bidding Document, the Purchaser should refer to this User’s Guide to Procurement of Goods- Small Contracts as it contain guidance and instruction for the Employer.

·  Specific details, such as name of the Purchaser, address for bid submissions, qualification requirements, etc..should be provided in the spaces indicated by italicized notes inside the bracket.

·  The “italicized notes”, containing guidance and instructions for the Purchaser, except those applying to forms to be filled out by Bidders or instructions to Bidders, should be deleted from the actual Bidding Document.

·  Where alternative Clauses or text are shown, the Purchaser shall select the most appropriate for the particular works and discard the alternative Clauses or text which is not used.

(e) The Purchaser shall allow Bidders sufficient time (generally, not less than six weeks from the date of the invitation to bid or the date of availability of bidding documents) to study the Bidding Document, prepare complete and responsive Bids, and submit their Bids.

Bid Preparation and Submission

The Bidder is solely responsible for the preparation and submission of its Bid. During this stage, the Purchaser shall:

(a) Promptly respond to requests for clarifications from Bidders and amend the Bidding Documents as needed.

(b) Amend the Bidding Document only with prior approval of WB, ADB and MOF as appropriate

Bid Opening

The Purchaser is responsible for the bid Opening, which is a critical event in the bidding process. The Employer shall appoint experienced staff to conduct the bid Opening, as inappropriate procedures at Bid Opening are usually irreversible and may require cancellation of the bidding process with consequent delays and waste of resources.

Best Bid-Opening Practices to Observe

The Purchaser, in observance of best practices, shall:

(a) Conduct the Bid Opening strictly following the procedures as specified in the Instructions to Bidders (ITB) for all Bids received not later than the date and time of the bid submission deadline. The term “Bid Opening” can be misleading because a Bid for which a Bid Withdrawal or Bid Substitution notice was received on time shall not be opened, but returned unopened to the Bidder. The sequence in which Bids are handled, opened, and recorded is crucial.

(b) Ensure that all Bids that were received on time are accounted for, before starting the bid Opening, as Bids that are not opened and read out at Bid Opening shall not be considered further.

(c ) Not reject any Bid at Bid Opening, except for late bids received after the date and time of the bid submission deadline. Technically, late bids should not reach the bid Opening, but in certain cases a Bidder may attempt to submit its bid at the Bid Opening place after the deadline.

(d) Examine the Bids at Bid Opening in accordance with the provisions of the Instructions to Bidders. The Purchaser shall, however, verify at Bid Opening the validity of the documentation such as Power of Attorney or other acceptable equivalent document as specified in the Instructions to Bidders confirming the validity of a bid modification, bid withdrawal, or bid substitution, because a withdrawn or substituted Bid shall not be opened and in consequence not read out and, therefore, not be considered by the Purchaser. Similarly, a bid modification shall be opened, read out, and recorded to modify a Bid that was received on time.

Bid Evaluation and Contract Award

The Purchaser is responsible for bid evaluation and contract award. The employer shall appoint experienced staff to conduct the evaluation of the bids. Mistakes committed at bid evaluation may later prompt complaints from Bidders, requiring reevaluation of the Bids, with consequent delays and waste of resources.

The Purchaser, in observance of best practices, shall:

(a) Maintain the bid evaluation process strictly confidential.

(b) Reject any attempts or pressures to distort the outcome of the evaluation, including fraud and corruption.

(c ) Strictly apply only and all of the evaluation and qualification criteria specified in the Bidding Document.

Invitation for Bids

The Invitation for Bids (IFB) provides information that enables potential Bidders to decide whether to participate. Apart from the essential items listed in the Harmonized Bidding Document, the Invitation for bids should also indicate any important bid evaluation criteria, such as the qualification requirements, or a requirement for a minimum level of experience in manufacturing or supplying a similar type of goods for which the IFB is issued.

The Invitation fro Bids is not a part of the Bidding Document and therefore it shall not be included in the Bidding Document.

Following NCB procedures, the invitation for Bids shall be advertised in the WB, ADB or MoF Websites, as well as in a newspaper of general circulation in the borrower’s country ( at least one English language newspaper if available). A copy of the Invitation for Bids in Lao or English shall be submitted to WB, ADB or MoF for approval and for publication in their respective website (as appropriate), in accordance with the Procurement Guidelines.

Lao PDR

Name of Project:

Financing Institution:

[enter here the name and address of the Procuring Entity]

BIDDING DOCUMENT

FOR PROCUREMENT OF

GOODS

[enter here the name of contract]

Invitation for Bid No:

Issued on:

Bid Package No:

Table of Contents

PART 1 – Bidding Procedures 1

Section I. Instructions to Bidders 3

Section II. Bid Data Sheet (BDS) 25

Section III. Evaluation and Qualification Criteria 31

Section IV. Bidding Forms 37

Section V. Eligible Countries 49

Section VI. Corrupt and Fraudulent Practices 51

PART 2 – Supply Requirements 57

Section VII. Schedule of Requirements 59

PART 3 - Contract 67

Section VIII. General Conditions of Contract 69

Section IX. Special Conditions of Contract 93

Section X. Contract Forms 99

21

Section I Instructions to Bidders

PART 1 – Bidding Procedures

Section I. Instructions to Bidders

Table of Clauses

A. General 5

1. Scope of Bid 5

2. Source of Funds 5

3. Corrupt and Fraudulent Practices 6

4. Eligible Bidders 6

5. Eligible Goods and Related Services 8

B. Contents of Bidding Document 8

6. Sections of Bidding Document 8

7. Clarification of Bidding Documents, Site Visit, Pre-Bid Meeting 9

8. Amendment of Bidding Document 9

C. Preparation of Bids 10

9. Cost of Bidding 10

10. Language of Bid 10

11. Documents Comprising the Bid 10

12. Letter of Bid and Price Schedules 11

13. Alternative Bids 11

14. Bid Prices and Discounts 11

15. Currencies of Bid and Payment 12

16. Documents Establishing the Eligibility and Conformity of the Goods

and Related Services 12

17. Documents Establishing the Eligibility and Qualifications of the Bidder 13

18. Period of Validity of Bids 13

19. Bid Security 14

20. Format and Signing of Bid 14

D. Submission and Opening of Bids 14

21. Sealing and Marking of Bids 14

22. Deadline for Submission of Bids 14

23. Late Bids 16

24. Withdrawal, Substitution, and Modification of Bids 16

25. Bid Opening 16

E. Evaluation and Comparison of Bids 17

26. Confidentiality 17

27. Clarification of Bids 18

28. Deviations, Reservations, and Omissions 18

29. Determination of Responsiveness 18

30. Nonconformities, Errors and Omissions 19

31. Correction of Arithmetical Errors 19

32. Evaluation of Bids 19

33. Comparison of Bids 20

34. Qualification of the Bidder 21

35. Purchaser’s Right to Accept Any Bid, and to Reject Any or All Bids 21

F. Award of Contract 21

36. Award Criteria 21

37. Purchaser’s Right to Vary Quantities at Time of Award 21

38. Notification of Award 21

39. Signing of Contract 22

40. Performance Security 22

41. Right to Complain of Bidder 23

Section I. Instructions to Bidders
A. General
1. Scope of Bid / 1.1  In connection with the Invitation for Bids specified in the Bid Data Sheet (BDS), the Purchaser, as specified in the BDS, issues these Bidding Documents for the supply of Goods and Related Services incidental thereto as specified in Section VII, Schedule of Requirements. The name, identification and number of lots (contracts) of this National Competitive Bidding (NCB) procurement are specified in the BDS.
1.2  Throughout these Bidding Documents:

(a)  the term “in writing” means communicated in written form (e.g. by mail, e-mail, fax, telex) with proof of receipt

(b)  if the context so requires, “singular” means “plural” and vice versa; and

(c)  “day” means calendar day.

2. Source of Funds / [If the contract is financed by the World Bank or Asian Development Bank, the following wording of ITB 2.1 and ITB 2.2 should be used]
2.1  The Lao People's Democratic Republic (Lao PDR, hereinafter called “Borrower”) has applied for or received financing (hereinafter called “funds”) from the International Bank for Reconstruction and Development or the International Development Association, or the Asian Development Bank (hereinafter called “the Bank”) in an amount specified in BDS, toward the project named in BDS. The Borrower intends to apply a portion of the funds to eligible payments under the contract for which these Bidding Documents are issued.
2.2  Payment by the Bank will be made only at the request of the Borrower and upon approval by the Bank and will be subject, in all respects, to the terms and conditions of the Loan (or other financing) Agreement. The Loan (or other financing) Agreement prohibits a withdrawal from the Loan (or other financing) account for the purpose of any payment to persons or entities, or for any import of goods, if such payment or import, to the knowledge of the Bank, is prohibited by decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations. No party other than the Borrower shall derive any rights from the Loan (or other financing) Agreement or have any claim to the proceeds of the Loan (or other financing).