Procurement Staff Instructions

1 Procurement Staff Instructions These Staff Instructions (SI) cover procedures to be followed by Staff in undertaking Procurement of goods, works, and services under ADB-administered and Borrower-administered projects based on the ADB Procurement Policy: Goods, Works, Nonconsulting and Consulting Services (2017, as amended from time to time), and are applicable to loan and technical assistance projects with concept papers approved after 1 July 2017. Procedures for Procurement of goods, works, and services under ADB-administered and Borrower-administered projects based on the ADB Guidelines on the Use of Consultants (2013, as amended from time to time) and Procurement Guidelines (2015, as amended from time to time) are covered by respective the Project Administration Instructions . Questions may be directed to Procurement , Portfolio and Financial Management Department. Abbreviations for ADB departments, offices, divisions, and units are used without definition.

2 Ii CONTENTS PAGE GLOSSARY v PART I. Staff INSTRUCTION ON ADB-ADMINISTERED Procurement OF GOODS, WORKS, NONCONSULTING, AND CONSULTING SERVICES 1 SECTION A. Procurement OF GOODS, WORKS, AND NONCONSULTING SERVICES 1 and Definitions1 and Responsibilities2 Requirements2 of Procurement3 Analysis3 Modalities4 Modalities7 Award9 Appendixes10 Matrix for Procurement of Goods,Works, and Nonconsulting Services Under ADB-Administered Technical Assistance11 Evaluation of Quotation12 SECTION B. Procurement OF CONSULTING SERVICES 13 Responsibilities13 of Consultant Recruitment13 Stage 1. Planning and Design14 Stage 2. Advertisement15 Stage 3. Shortlisting16 Stage 4. Evaluation19 Stage 5. Negotiations and Contract Signing21 Stage 6. Post Contract Activities24 Appendixes 29 Clearances30 and Responsibilities During ConsultantRecruitment 37 of Reference39 Persons Engagement43 iii of Free Consulting Services44 Estimates46 Methods48 of Technical Proposals52 of Contract53 Consultant Selection Matrix (International)55 Consultant Selection Matrix (National)62 Selection Committee71 14-1.

3 Template of Notice of Contract Closure in Case of No Dispute 73 14-2. Template of Notice of Contract Closure in Case of Dispute 74 14-3. Certificate of Turnover (Disposal of TA Equipment/Vehicles) 75 Variations76 Consultant Committee: Performance Evaluation78 PART II. Staff INSTRUCTION ON BORROWER-ADMINISTERED Procurement OF GOODS, WORKS, NONCONSULTING, AND CONSULTING SERVICES 79 SECTION A. Procurement OF GOODS, WORKS, AND NONCONSULTING SERVICES 79 Responsibilities79 of Procurement80 Authorities81 Appendixes92 Responsibilities of ADB Staff to SupportBorrower-Administered Procurement of Goods, Works,and Nonconsulting Services93 Committee Workflow for Prior ReviewContracts $50m or more98 Submission Workflow for Prior ReviewContracts between $20m to $50m100 Submission Workflow for Prior ReviewContracts less than $20m102 for the Procurement Committee104 for Transferring a Project from theProcurement Guidelines to the 2017 ProcurementFramework108 Procurement Procedures109 iv Government Procurement Tasks and Rolesin the Procurement Cycle111 SECTION B.

4 Procurement OF CONSULTING SERVICES 113 and EA Responsibilities113 of Consultant Recruitment114 and Design114 Procedure115 of Technical Proposals115 Mode116 Services Provided by United Nations andOther International Organizations 116 Procedures116 Individual Consultants119 Firms119 Consultants: ADB Prior and Post Review(Sampling) 122 Modalities124 Contract Activities and Consultant ContractManagement 124 and Complaints125 Appendixes 127 and Approving Authorities128 of Reference133 of Consultants and Expertise137 Estimate139 Methods144 of Technical Proposals151 Evaluation and Evaluation Criteria Weights153 Review of Consulting Firm Recruitment155 Review (Sampling) Firms and Individuals161 Review - Individuals162 Types164 Recruitment Activity Monitoring167 PART III. Staff INSTRUCTION ON Procurement -RELATED COMPLAINTS 169 Complaints Tracking System169 v Responsibilities170 Appendix. Simple Procurement -Related Complaints Handling Flow178 vi 1 Defined as exceeding $200,000.

5 GLOSSARY ADB-administered consulting services Consulting services financed by ADB s internal administrative budget, capital budget, technical assistance (TA) grant or other grant projects funded from special funds or trust funds, for which ADB selects and engages the consultants. ADB may also hire consultants funded by advance payment from prospective clients in its nonsovereign operations or following public p rivate partnership transaction advisory services mandate and similar arrangements. ADB financing Includes financing by loans or grants, TA, or funds from external sources which ADB administers, ADB s administrative budget, and the special capital budget. Biodata technical proposal (BTP) Basic type of technical proposal which may be used for assignments with well-defined, position-based terms of reference (TOR). BTPs only consider the biodata of the experts and do not include the firm s organization and experience or a detailed method statement.

6 Borrower Includes agencies or entities that act for the borrower or grant recipient to carry out the project, including any project executing agency (EA) and implementing agency (IA). Borrower-administered consulting services Consulting services provided under projects financed in whole or in part by an ADB investment loan or grant, or by delegated TA, for which the EA selects and engages the consultants. Close relatives of ADB Staff Close relatives are individuals defined in Administrative Order (AO) , Appendix 1. Competitive component Portion of the bid that includes remuneration and out-of-pocket expenses. Conflict of interest Any situation in which a party has interests that could improperly influence that party s performance of official duties or responsibilities, contractual obligations, or compliance with applicable laws and regulations. Consultant An individual or consulting firm that provides consulting services.

7 Consultant Management System (CMS) Electronic Procurement system used by ADB and its borrowers to recruit consultants. For borrowers, the functionality is currently limited to posting consulting services recruitment notices (CSRNs) and collection of expressions of interest (EOIs). Consultant selection committee (CSC) Convened to decide on consulting services matters, including evaluation of EOIs for high-value or complex individual consultant selections1 and for technical evaluation of proposals received from consulting firms in response to a request for proposals (RFP). For contracts valued at or below $750,000, a CSC comprises a two-person committee from the user unit. For contracts valued above $750,000, a CSC comprises a three-person committee chaired by PPFD, and including a project specialist from the user unit and a third independent member requested by PPFD.

8 Vii Consultant recruitment activity monitoring (CRAM) A system used to monitor the activities and time taken for consultant recruitment. Consulting firm Any private or public entity with the capacity to provide consulting services. Such entities include international and national consulting firms, engineering firms, construction firms, management firms, Procurement agents, inspection agents, auditors, UN agencies and other multilateral organizations, universities, research institutions, government-owned institutions or enterprises, civil society organizations (CSOs), and nongovernmental organizations (NGOs), when such entities provide consulting services. Consulting services Assignments that are of an intellectual and advisory nature. Examples include policy and governance studies, advice on institutional reforms, engineering designs, construction supervision, legal advice, audits, Procurement services, social and environmental studies, and the identification, preparation, and implementation of projects.

9 These are distinguished from nonconsulting services, for which the physical aspects of the activity predominate or that are based on recognized standard offerings. Consulting Services Recruitment Notice (CSRN) Automated Procurement notice published on ADB s CMS. Direct contracting The Procurement of an entity without competition. Also referred to as single-source selection. Director, PPFD Refers to either Director, PFP1, or Director, PFP2, based on which of these divisions currently manages Procurement for the concerned user unit. Delegated technical assistance (TA) TA in which ADB delegates responsibility to the EA for implementation, including responsibility to select and manage consultants and to sign and administer contracts (including payments). TA project implementation that is fully or party delegated to the recipient. Executing agency (EA) Identified in the relevant financing agreement or TA letter as the party responsible for the carrying out of a loan, grant, or TA.

10 The term may be extended to include an IA that the EA designates to implement the project and undertake Procurement . Expression of interest (EOI) Submitted by consultants in response to the CSRN. Full technical proposal (FTP) Technical proposal used for assignments with a complex TOR. The monetary value of the assignment is not the only determining factor of complexity. Individual consultant selection (ICS) Method used to select individual consultants, based on their CVs and EOIs. International consultant A consultant who has had exposure to international context and best practice. viii Limited competitive bidding (LCB) LCB occurs when direct invitations to bid are issued to potential bidders without open advertisement. Long-term assignment Assignments where the total initial assignment and any extensions is equal to or more than 12 person months, if the contract defines inputs by person month, or 264 working days, if the contract defines inputs by working day (for calculation, a person month is defined as 22 working days); and assignments through reengagements that bring the total amount of inputs by the same consultant up to or more than the threshold as defined above during any 24-month period.