under Output- and Performance- based R oad …

1 S AMPLE bidding DOCUMENTS P r ocur ement of W or k s and Ser v i ces u nder O utput- and P er for mance- based R oad C ontr acts and Sample Specifications The World Bank Washington, October 2006 ii November 2009 Revision This version 2 incorporates the Fraud and Corruption clauses of the Procurement Guidelines and are reflected in ITB (Corrupt Practices), ITB (Eligible Bidders), GC (Contractor s Responsiblities), and GC (Termination). October 2006 revision This revision dated October 2006 incorporates the following changes: Section I - Instructions to Bidders para. : "..requirement of works and completion times" was replaced by ".

2 Requirments of Section VI, Specifications" para. : "Section VI, Works Requirements" was replaced by "Section VI, Specifications". Section III: Evaluation and Qualification Criteria (Following Prequalification): under para. , missing "CCC" and "FIN-1", were added. (Without Prequalification): Missing tables containing qualification and evaluation criteria, were added. Section VI Specifications The following paragraph, located towards the end of this section, was removed: It is nevertheless important to remember again that this sample bidding document should not be used for roads or road networks in very poor condition which require a substantial and costly upgrading and/or rehabilitation before they can be maintained.

3 It is suggested that whenever the initial upgrading and/or rehabilitation or improvement works are estimated to cost more than 45 percent of the total contract amount, this sample bidding document should not be used." iii Important Notice to Users of this document These Sample bidding Documents for Procurement of Works and Services under Output- and Performance- based Road Contracts (OPRC) have been issued by the World Bank on a trial basis to provide its clients with an alternative to the traditional methods of procuring road reconstruction, rehabilitation and maintenance. The documents are a further development of the earlier Sample bidding Documents for Procurement of Performance- based Management and Maintenance of Roads (PMMR) which were issued by the Bank in February 2002.

4 As their predecessor, these documents are focused to fit the specific nature of Performance- based Management and Maintenance of Roads (PMMR), but they are also suitable for the procurement of works and services under longer-term Design-Build-Operate-Maintain (DBOM) contracts for roads. The contract herein included differs substantially from traditional contracts for civil works. The basic difference is that under the output - and Performance- based Road Contract, most of the payments to be made to the contractor are not based on quantities of works measured by unit prices for works inputs, but on measured outputs reflecting the target conditions of the roads under contract (in other words: what the roads are supposed to look like ), expressed through Service Levels.

5 These Service Levels are defined in the contract. Another major difference is that the Contractor is fully responsible for the design of the works which are necessary to reach the required Service Levels, and the durability and performance of the roads over a longer period. The present documents are designed to allow for much flexibility in their use, according to the specific needs of the road network under contract (called the Road or Roads in the documents). An important focus of the contract is on Management and Maintenance Services, including physical works on the Roads under contract which are needed to maintain the agreed Service Levels over time, but also all activities related to the management and evaluation of the road network under contract.

6 The contract also allows for the execution of (i) Rehabilitation Works to be carried out in order to bring the Roads up to pre-defined standards; (ii) Improvement Works aiming at adding new characteristics to the Roads in response to new traffic, safety or other considerations; and (iii) Emergency Works comprising of activities needed to reinstate the Roads after damage resulting from unforeseen natural phenomena with imponderable consequences. It should be noted that the OPRC is not designed for the contractor to simply build a road and then move on to other things. It is meant to establish a longer-term Public-Private Partnership (PPP) between the contractor and the Government, in which both parties have long-term committments.

7 The contractor s focus will not simply be on road construction, but on the Integral Management of the Road Asset over a period which should reflect the expected lifetime of the asset. In this sense, the contractor must be a firm or a business venture which has the technical, managerial and financial capacity to fulfill the contract in all its aspects. Further explanations on the nature and character of output - and Performance- based Road Contracts are made on the following pages. iv v Foreword 1. The present sample bidding document has a general structure which is similar to the World Bank s Standard bidding document (SBD) for Works (May 2005), which are based on the July 2004 version of the Master bidding Documents for Procurement of Works and User s Guide, prepared by the Multilateral Development Banks and International Financing Institutions.

8 Given the specific characteristics of output - and Performance- based Contracting for Roads, modifications were however made in most sections of the document including the use of several aspects found in the World Bank s Standard bidding Documents for Supply and Installation of Plant and Equipment. In particular, the Conditions of Contract have been written in order to take into account the specific nature of the services to be provided by the Contractor, which go much beyond the mere execution of pre-defined physical works and to include the output basis in the contract. The contract covers an array of activities needed to achieve and maintain a certain Service Level for road users, including many activities related to the Management and Maintenance (including periodic evaluation) of the road network under contract.

9 It includes carrying out Rehabilitation Works to bring the Road up to pre-defined standards, Improvement Works specified by the Employer aiming at adding new characteristics to the Roads in response to new traffic, safety or other conditions and Emergency Works needed to reinstate the Roads after damage has occurred as a result of natural phenomena with imponderable consequences (such as strong storms, flooding and earthquakes) under the conditions defined in the contract. A separate document has also been prepared and is presented as an Annex, providing Sample Specifications for OPCR, these are mostly geared towards the Management and Maintenance of a variety of road types and will facilitate the preparation of actual and specific Specifications which must be part of the final bidding documents.

10 2. This preface summarizes the concept of output - and Performance- based Road Contracts (OPRC). For legal purposes the text of the main body of this document is binding and takes precedence over this preface. 3. output - and Performance- based contracting for Roads is designed to increase the efficiency and effectiveness of road asset management and maintenance. It should ensure that the physical condition of the roads under contract is adequate for the need of road users, over the entire period of the contract which is normally several years. This type of contract significantly expands the role of the private sector, from the simple execution of works to the management and conservation of road assets.