Procurement Documents

Procurement Guidelines

 

ADB's Procurement Guidelines require that borrowers must use the appropriate standard procurement documents issued by ADB for International Competitive Bidding.

ADB's standard procurement documents for the prequalification of bidders, for the procurement of goods, and for the procurement of works (large contracts) are based on Master Procurement Documents prepared jointly by multilateral development banks and other public international financing institutions.

The documents reflect the structure and the provisions of the Master Procurement Documents except where ADB-specific considerations have required a change. An important feature of these harmonized standard documents is that they can be used with minimum changes, as they do not contain explanations, footnotes or examples. They are each supported by a User's Guide which contains detailed explanations and recommendations.

Where no relevant standard documents have been issued by ADB, the borrower shall use other internationally recognized bidding documents acceptable to ADB, and conforming to the extent possible to ADB's standard procurement documents.

Content Two

Prequalification

The Standard Procurement Document for Prequalification of Bidders (SPQD) has been prepared to facilitate prequalification of Bidders for large and complex civil works contracts, and contracts for technically complex plant. This is to ensure that only firms with appropriate experience, a proven track record, and necessary annual turnover, which are free of any major pending litigation, if applicable, will be invited to submit bids. Download and read the User's Guide: Standard Procurement Document for Prequalification of Bidders before working with the SPQD.

Standard Procurement Document for Prequalification of Bidders

Prequalification

A Standard Bidding Document (SBD) for the procurements of goods is available for each of four bidding procedures supported by ADB. The Purchaser may select one to best suit the nature of the particular procurement. Download and read the User's Guide: Procurement of Goods before working with any of the four bidding documents for goods.

  1. Single-Stage: One-Envelope bidding document
    The Single-Stage: One-Envelope bidding procedure is the main bidding procedure used for most of the procurement financed by ADB.
  2. Single-Stage:Two-Envelope bidding document
    The Single-Stage:Two-Envelope bidding procedure allows bids to be evaluated on purely technical, and administrative grounds without reference to price.
  3. Two-Stage:Two-Envelope bidding documents
    The Two-Stage:Two-Envelope bidding procedure should be used for procurement where alternative technical proposals are possible, such as certain types of machinery or equipment or manufacturing plant.
  4. Two-Stage bidding document
    The Two-Stage bidding procedure may be adopted in large and complex contracts where technically unequal proposals are likely to be encountered or where the Purchaser is aware of its options in the market but, for a given set of performance requirements, there are two or more equally acceptable technical solutions available to the Purchaser.

Works - Large Contracts

Two standard bidding documents (SBDs) for the procurement of works are available. The SBDs make use of the Conditions of Contract for Construction for Building and Engineering Works Designed by the Employer, Multilateral Development Bank Harmonized Edition 2010 (FIDIC MDB - June 2010), prepared by the Fédération Internationale des Ingénieurs-Conseil, or FIDIC.

Download and read the User's Guide: Procurement of Works before downloading and working with any of the three bidding documents for works.

  1. SBD Works following prequalification: This SBD is to be used when the bidding is preceded by a prequalification exercise. Prequalification shall be applied for all large and complex works contracts.
  2. SBD Works without prequalification: This SBD is to be used when the bidding is not preceded by a prequalification exercise and postqualification is applied. Postqualification may be used for the procurement of simple and unsophisticated works contracts.
  3. SBD Works (Single-Stage: Two-Envelopes): This SBD requires Bidders to submit two sealed envelopes simultaneously, one containing the Technical Proposal and the other the Price Proposal, enclosed together in an outer single envelope. This procedure allows the Employer to evaluate the Technical Proposals without reference to price. Bids of Bidders who do not conform to the specified requirements may be rejected as deficient bids.

Works - Small Contracts

Two SBDs are available for the procurement of small works contracts through international competitive bidding (ICB) as well as national competitive bidding (NCB). Download and read the User's Guide: Procurement of Works—Small Contracts.

These SBDs can be used for both small admeasurement (unit rate) as well as lump sum contracts. The documents adopt a postqualification procedure that requires bidders to submit the information pertaining to their qualification together with their technical bids. These SBDs include a model form of conditions of contract which has been developed on the basis of considerable international experience in the drafting and management of contracts, bearing in mind a trend in the construction industry towards a simpler, more straightforward language.

  1. SBD Works (Small Contracts) Single-Stage: One-Envelope
  2. SBD Works (Small Contracts) Single-Stage: Two-Envelope

Plant - Design, Supply and Installation

Standard bidding documents for plant (SBD Plant) must be used for the procurement of plant through international competitive bidding when

  • the contract involves the design, supply, installation and commissioning of specially engineered plant and equipment, such as turbines, generators, boilers, switchyards, pumping stations, telecommunication systems, process and treatment plants, and similar projects, and
  • the value of the plant and equipment represents the major part of the estimated contract value, and
  • the nature and complexity of the plant and equipment is such that the facilities cannot safely be taken over by the Employer without comprehensive testing, precommissioning, commissioning and acceptance procedures being followed.

The SBD Plant anticipates that the contractor is responsible for each activity required for completion of the facilities, e.g., design, manufacture, delivery, installation, testing, commissioning, training, etc. However, these conditions may be adapted for single responsibility contracts where some activities, such as parts of the preliminary design or site preparation works, are done by others.

Read and download the User's Guide: Procurement of Plant--Design, Supply, and Installation

  1. SBD Plant using a Single-Stage Bidding Procedure
  2. SBD Plant using a Two-Stage Bidding Procedure
  3. SBD Plant using a Single-Stage: Two-Envelope Bidding Procedure
  4. SBD Plant using a Two-Stage: Two-Envelope Bidding Procedure

Shopping for goods

Shopping is a simplified procedure, used for low-value, readily available off-the-shelf goods. When considering Shopping, ADB should be satisfied that there are a sufficient number of local and/or foreign suppliers (a minimum of three) that can meet the requirements of the procurement and ensure a satisfactory level of price competition. The threshold for Shopping is currently set at $100,000.

Download and read the sample shopping document for goods.

Shopping for works

Shopping is a simplified procedure, used for simple civil works of low value. When considering Shopping, ADB should be satisfied that there are a sufficient number of local contractors (a minimum of three) that can meet the requirements of the procurement and ensure a satisfactory level of price competition. The threshold for Shopping is currently set at $100,000.

Download and read the sample shopping document for works.

Guidance on shopping method

Download and read the guidance on shopping method of procurement.

Guide on Bid Evaluation

Given the difficulties inherent in the evaluation process and in the preparation of complete, accurate and concise bid evaluation reports, the guide has been written to provide borrowers, executing agencies, and their Consultants with guidance on bid evaluation procedures and on the format of the report to be submitted to ADB.