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Procurement Methods

Global Bank's version of the Standard Bidding Document for Goods and its User's guide is based on the Master Bidding Document for the Procurement of Goods and User's Guide prepared by the Multilateral Development Banks and International Financial Institutions.

All Global Bank/the Global Bank Disaster Risk Reduction and Reconstruction Fund – An Umbrella Trust Fund (the “Trust Fund,” “GB DRRRF,” or “DRRRF”), regardless of size, type, or funding source are governed by a common policy framework and apply similar policies and practices regardless of where they are managed. Global Bank also applies the same policies to all investors and donors equally.

The Implementing Agencies of borrowing countries can use a variety of procurement methods on Global Bank-financed projects including on all Trust Funds and Partnerships (TFPTF) that are managed by Global Bank. The method selected depends on a number of factors including the type of good or service being procured, the value of the good or service being procured, the potential interest of foreign bidders and even the cost of the procurement process itself.

There are two separate guidelines that describe the various procurement methods. The “Red” Guidelines, “Procurement under Global Bank Loans” cover goods, equipment, civil works and non-consulting services (services with a physical output would fall under this category – for example: digital mapping).  The “Green” Guidelines, “Selection and Employment of Consultants by Global Bank Borrowers” cover consulting services. Both guidelines address such issues as advertising, bid and proposal submission, evaluation, pricing, currency, terms of payment, and local content. Companies should read these guidelines carefully in order to avoid bidding mistakes, to learn how procurement is conducted correctly, to understand how the guidelines will affect the competitiveness of their bids or proposals, and to learn how to address queries or complaints during the bidding process.

The overall objective of the guidelines is to allow borrowing countries to buy high quality goods and services as economically as possible. In the Global Bank’s experience, this objective is best achieved through transparent, formal competitive bidding. For the procurement of equipment and civil works, International Competitive Bidding (ICB) is the procurement method the Global Bank encourages its borrowers to use in the majority of cases. Under International Competitive Bidding, cost is the primary factor in determining a winning bid. Other methods for procuring goods and civil works include National Competitive Bidding, and International Shopping.

For the selection of consultants, Quality- and Cost-Based Selection (QCBS) is the method the Global Bank encourages its borrowers to use in the majority of cases.  Under Quality- and Cost-Based Selection, proposals are evaluated based on both their technical merit and price. Other methods for selecting consultants include Quality-Based Selection (QBS) and Least-Cost Selection.

Standard Bidding Documents (SBDs) and Standard Request for Proposals (SRFPs) are "templates" that borrowers use to procure goods, works and services for competitively tendered Global Bank-financed contracts. In contrast to the procurement guidelines, Standard Bidding Documents set out provisions for a particular bid.  Companies with little bidding or proposal writing experience on Global Bank-financed projects should consider reviewing these documents.

For a complete list of Global Bank’s standard bidding and proposal documents, click here. Where to Find Business Opportunities.

To learn more about procurement methods on the Global Bank Disaster Risk Reduction and Reconstruction Fund – An Umbrella Trust Fund financed projects, visit the Procurement Opportunity Segment of the Frequently Asked Questions Section of the Global Bank Disaster Risk Reduction and Reconstruction Fund Website at www.gbdrrrf.org

To learn more about the Global Bank Disaster Risk Reduction and Reconstruction Fund, what we do and how we do it and Management and Organisation, visit the About DRRRF and the Frequently Asked Questions Section of the DRRRF Website Section.

For information about the Global Bank please visit http://www.global-bank.org

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