Approved Procurement Methods

GOODS, WORKS & NON-CONSULTING SERVICES

June 2021
 Content

1. Selection methods
2. Market approaches
3. How to choose methods and approaches
4. Thresholds

SLIDE 2
 APPROVED SELECTION METHODS

CLASSIFICATIONS
The Approved Procurement Methods uses three main classifications. These
are:
 Selection/Procurement Methods
e.g.: RFB / RFP / RFQ/Direct etc.
 Selection Arrangements
e.g.: PPP / CDD / UN Agencies / Commodities etc.
 Market Approach Options
e.g.: Open / Limited / Direct / National / International etc.
SLIDE 3
 SELECTION METHODS

1 Direct Approach and negotiate with only one qualified firm. Price must be
reasonable and consistent with market.

2 RFQ Competitive method of seeking quotations for readily available,

off-the-shelf GWNcS. There is no SPD for RFQ***.

3 RFB Competitive method used when Borrower specifies requirements

and wishes to maintain a higher degree of control in delivery.

Competitive method used when Borrower specifies

4 RFP functional/performance needs and market proposes solutions.
Rated criteria are normally used.
SLIDE 4
SELECTION METHODS

SLIDE 5
 MARKET APPROACH OPTIONS

1 DIRECT APPROACH
Approach and negotiate with only one qualified firm.
Allowed in certain circumstances.
Opportunity is openly advertised. All eligible firms have
2 OPEN COMPETITION equal opportunity to participate. This is the Bank’s
preferred option.
Competition is limited to those firms that are invited to
LIMITED COMPETITION participate. No open advertisement. Allowed in certain
3
circumstances.

NOTE: All of these options may be used when approaching national or international markets.
SLIDE 6
 DIRECT SELECTION
General rule
Direct selection may be appropriate if there is only one suitable firm, or there is justification to
use a preferred firm.
Regulatory tests
1. Existing contract that may be extended
2. Re-engage firm that has completed contract within last 12 months
3. Low value, low risk procurement with justification
4. Exceptional circumstances e.g. Emergency Situation
5. Standardization of goods needs to be compatible
6. Proprietary equipment
7. Essential to achieve required performance or functional guarantee
8. Provided by SOE, university, research center and of an unique and exceptional nature
9. UN Agency SLIDE 7
 DIRECT SELECTION (cont)

Check
 Prices are reasonable and consistent with market
 Requirement not split into small procurements to avoid competitive
process
Examples
 Spare parts, Proprietary software, Small quantities of office supplies or
consumables, etc.

SLIDE 8
 Prior Review, Procurement Approaches, Methods and Thresholds
Short List of National
Consultants
Prior Review
Category (US$ Open Open DC/
International National RFQ** SS Engineering and
millions) Consulting Construction
Services Supervision

Works ≥10.00 ≥7.0 <7.00 ≤0.20 ** n.a. n.a.

Goods, IT, ≥2.0 ≥1.00 <1.00 ≤0.10 ** n.a. n.a.

and non-
consulting
services
Consultants ≥1.0 n.a. n.a. n.a. ** 0.2 0.3
(Firms)
Individual ≥0.30 n.a. n.a. n.a. ** n.a. n.a.
Consultants
SLIDE 9
 CHOICE OF COMPETITION

When to use LIMITED When to use OPEN

 where there are genuinely only a  this is the Bank’s preferred
small number of suppliers in the approach
market and they can be identified
 open is the default choice for
 there will be no disadvantage to competition
any other supplier/s
 where the advantages of open
competition are outweighed by
admin or financial burden.

SLIDE 10
 DECISION TREE
RFQ Key characteristics PART TWO

Characteristics
Some or all of the following characteristics apply:
Examples
 low to medium value (Bank Guidance thresholds)  furniture
 requirements are simple and easy to specify, or off-the-shelf  laptops, computers
standard product or service  catering services
 there is a ready market with many suppliers  office maintenance
 transport services
 procurement decision is based on technically conforming lowest
 Small industrial
quotation materials
 Hand tools
 Small works contract
SLIDE 11
Procurement Arrangement at Federal, Region and City Level

• Federal Level
• The federal PCU is responsible for the consolidation and procurement of
strategic goods and services for Federal IAs, Regions and Cities (E.g. Vehicles
and Motor Cycles)
• Region Level
• Responsible for the procurement of Capital Items such as IT, Furniture and
Office Equipment on behalf of the Implementing Cities
• City Level
• Responsible for the procurement of semi-skilled labour for the Public Works,
Construction Materials, Safety Materials, Hand tools, and Agricultural Inputs.
QUESTIONS