WORKSHOP ON PROCUREMENT

NATIONAL AGRICULTURE HIGHER EDUCATION

PROJECT

July 16,2020
(virtual)

Official
 This project was approved by Bank Board on August 3, 2017 with
closing date of November 30, 2022. The Project is being
implemented by 61 agencies (universities) in several states.

The Project Agreement require that the PMU engage a

Procurement consultant to carry out procurement review .The
selection process has been initiated and we expect ICAR will have
a consultant onboard within next couple of months .

In FY19, over 427 contracts were awarded ( as per STEP

NAHEP
DATA)and to ensure compliance the Bank team sampled 12%
contracts for PPR .

A number of non -compliances have been identified in the PPR.

All the IA must note that these possible noncompliance can lead
to declaration of mis procurement.

Official
  Number of Procurement plans in STEP :61

STEP  Completed : $ 10 Million

STATUS July  Signed : $9.6 Million
15, 2020  Pending for Initiation : $16.70 Million
 Under Implementation: $8.00 Million

Official
  – “Procurement Guidelines” means the
“Guidelines: Procurement of Goods, Works
and Non-consulting Services under IBRD
Loans and IDA Credits and Grants by World
Bank Borrowers” dated January 2011
NAHEP (revised July 2014).

Applicable Guidelines  -Consultant Guidelines” means the

of The World Bank “Guidelines: Selection and Employment of
Consultants under IBRD Loans and IDA
Credits and Grants by World Bank
Borrowers” dated January 2011 (revised July
2014).

Official
 Category Prior Review threshold in US$
Works
10,000,000
Prior Review Goods
2,000,000
Thresholds Consulting firms
1,000,000
Individual consultants
300,000

Official
 PROCUREMENT PRINCIPLE :
 Need for economy and efficiency in the execution of the project.(Encourage open competition).
 All eligible bidders to get equal opportunity to compete.
 Make the procurement process transparent.

BANK GUIDELINE REQUIRES THAT HIGHEST STANDARD OF ETHICS ARE OBSERVED DURING THE
PROCUREMENT AND EXECUTION .

CONSIDERATIONS F&C DEFINITIONS:

THAT GUIDE  “CORRUPT PRACTICE” – OFFERING, GIVING, RECEIVING, SOLICITING ANYTHING OF VALUE
TO INFLUENCE A PUBLIC OFFICIAL IN THE PROCUREMENT PROCESS OR CONTRACT
PROCUREMENT IN EXECUTION.

BANK FINANCED  “FRAUDULENT PRACTICE” – MISREPRESENTATION OR OMISSION OF FACTS IN ORDER TO

INFLUENCE A PROCUREMENT PROCESS OR CONTRACT EXECUTION.

PROJECTS  “COLLUSIVE PRACTICE” – ARRANGEMENT BETWEEN BIDDERS IN ORDER TO ESTABLISH

BID PRICES AT ARTIFICIAL NON-COMPETITIVE LEVELS.

 “COERCIVE PRACTICE” – HARMING OR THREATENING TO HARM PERSONS TO INFLUENCE

THEIR PARTICIPATION IN A PROCUREMENT PROCESS OR AFFECT THE EXECUTION OF A
CONTRACT
 ‘OBSTRUCTIVE PRACTICE ‘-DELIBERATELY DESTROYING FALSIFYING ALTERING OR
CONCEALING OF EVIDENCEMATERIAL TO THE INVESTIGATION OR MAKING FALSE
STATEMEMT TO INVESTIGATORS TO MATERIALLY IMPEDE BANK INVESTIGATION INTO
CORRUPT,FRAUDULENT,COERCIVE,COLLUSIVE PRACTICE

6
Official
 TYPES OF PROCUREMENT

PROCUREMEN “CONSULTANT SERVICES” INCLUDE SERVICES OF AN INTELLECTUAL AND

T OF ADVISORY NATURE (SUCH AS POLICY ADVISE, INSTITUTIONAL REFORMS
CONSULTANT ADVICE, SOCIAL AND ENVIRONMENTAL STUDIES, TECHNICAL ASSISTANCE–
ENGINEERING SERVICES AND CONSTRUCTION SUPERVISION, FINANCIAL
SERVICES SERVICES

PROCUREMEN “GOODS” INCLUDE: COMMODITIES, RAW MATERIAL, MACHINERY, EQUIPMENT

T OF GOODS AND INDUSTRIAL PLANT.

PROCUREMEN “WORKS” INCLUDE SERVICES WHICH ARE BID AND CONTRACTED ON THE
T OF WORKS BASIS OF PERFORMANCE OF A MEASURABLE PHYSICAL OUTPUT (SUCH AS
CONSTRUCTION OF WORKS, MANUFACTURE OF GOODS, OPERATION AND
MAINTENANCE OF FACILITIES OR PLANTS, DRILLING, MAPPING A.S.O.)

Official
 Prior Agreed Procurement Plan to be the basis for any
procurement under the project.

FACTORS :

What? (Contract packages)

What Price ?($)

PROCUREME
NT
How? (Strategy)
PLANNING-
TAKE THE
FIRST STEP Who? (Organization)

When? (Scheduling & Monitoring)

Official
 PROCUREMENT CYCLE-Goods &Works
9

Steps to follow

Contract Prepare Bidding

performance document

Advertising in
National press
Contract award

Issue Bidding
Documents
Bid evaluation and
selection
Pre Bid conference (if
required)

Bids Received

BID OPENING

Official
 Consultant Selection Cycle
10

General
Procurement
Contract Notice
Adv. for
Performance EOI with
TOR

Contract Short-listing
Award

Financial
Issue of RFP
Evaluation
Documents

Tech. Tech. Proposal Pre-proposal

Evaluation Opening Conference

Official
 THE BANK DOES NOT FINANCE
EXPENDITURE FOR CONSULTANT
SERVICES, GOODS AND WORKS
WHICH HAVE NOT BEEN PROCURED
IN ACCORDANCE WITH AGREED
PROCEDURES IN THE LOAN
MISPROCUREM AGREEMENT
ENT
IN CASE OF MISPROCUREMENT, IT
IS THE BANK POLICY TO CANCEL
THAT PORTION OF THE LOAN
ALLOCATED TO SERVICES, GOODS
OR WORKS THAT HAVE BEEN
MISPROCURED

Official
 Goods & WORKS
Some Aspects ICB NCB SHOPPING DIRECT CONTRACTING
12

ADVERTISE UNDB/National and National NA NA

international Newspaper and
Newspapers FREELY
ACCESSIBLE
ICB website
BIDDING PERIOD Appx 45 days from Minimum 30 days 7-14 days NA
date of availability
of document

MINIMUM 1 1 3 1
BIDDERS

Bidding SBD of WB Country specific Model RFQ Same as

Document as agreed with ICB/NCB/Shopping
Government

Threshold  $3 million for < $3 million for < $100,000 As per the provision of the
goods Goods regulations
> $40 million for <$40 million for
Official works works
 Procurement system risk
 Organization/Staffing: Organization of the procurement unit and allocation of
functions; quality and adequacy of procurement staff.
 Controls/Manuals: complaints handling, existence of dispute resolution systems,
internal procedural manuals and instructions, oversight and auditing practices, and code
of professional behavior and ethics.
 Record-keeping: Availability, quality, security, and completeness of procurement
records and files.
Procurement process risk
 Procurement Planning: adherence to the Procurement Plan, including any /updates.

RISK &  Publications: adhere to advertising and contract award publication requirements for
applicable contracts.

Required  Bidding: adhere to requirements for bidding documents, including RFPs, LOIs, shortlists,
terms of reference, invoices, and other applicable documents.
 Evaluation: adhere to bid evaluation requirements/criteria, including draft contracts,
SYSTEMS 
technical and financial evaluation reports, and any bid amendments.
Awards: adhere to contract award requirements, including complaints handling,
amendments, variation orders, and extensions
 Implementation: adhere to contract implementation criteria, including results of
physical inspections.
Contract Administration risk
 Payments: adhere to contract payment schedules, including timeliness of payments to
contractors.
 Compliance: adhere to all contractual provisions; adherence to all related anticorruption
practices.
 Disputes: promptness and equity in resolving contractual disputes

Official
 SOME PPR OBSERVATIONS

Supply Order and payment detail not available in the system.

Delay in contract completion by 3 weeks for which no amendment issued.

RFQ does not have provision for splitting of contract while the contract has been awarded to two bidders for the two items.

Delay in supply.

The item approved in PP and actual procured are different.

The Quotation request is undated. No last date for submission mentioned.

Comparison based on model /Brand which is not an acceptable method as per Bank norms.

The dates of quotation request and the roadmap dates do not match as the activity had been updated in the system after the same was carried out
(contract /Work order issued) prior to the plan being cleared by the Bank.

There is huge variation in estimated price and most of the bids that have been received for which no reason is amplified in the comparative
statement to establish that the lowest bidder meets the technical requirement and the reason for such large variations.

While the completion period was three months, the contractor has been able to complete the same not before 8 months for which no extension /
amendments has been carried out.

No Work Order/Contract Agreement available in STEP

There is no contract issued to the individual except for the draft Negotiated Contract. The value of contract captured in the system mention Rs 1 lac
without specifying the unit or period of contract which should be the complete period. No amendments issued

Official
 SOME PPR OBSERVATION

From the document uploaded in STEP, AU has mentioned value which is inconsistent with the contract value
( with GST/without GST)

Supply order is issued beyond the quotation validity period

No communication to the supplier on contract termination available in STEP.Not clear if any payment has been made against this contract. The relevant
documents not available in STEP

Delay in supply of materials for which there is no amendment or extension carried out. ( EgEM)

Two contracts awarded while this should have been awarded on single responsibility basis

While the chosen method is Single Stage- Single Envelope, the evaluation is based on two envelope.

BER does not have the complete information of the tender value.
RFQ was for larger number while the actual contract was awarded for lower numbers for which no prior indication was made in RFQ. (FQ and the final
contract needs to be aligned. At the time of RFQ is 25 Nos. while contract is for only 10 nos)

There is a contract Agreement which has been drawn on the letter head of SUPPLIER

There appears to be a complaint which is not properly captured in the system which needs to be updated .

Quotation received from an agent while the SO is placed on a foreign supplier. (No authorization document is in STEP)

Against requirement of 3 Quotation only one quotation received

There is no contract issued to the individual except for the draft Negotiated Contract. The value of contract captured in the system mention Rs 1 lac without
specifying the unit or period of contract which should be the complete period. No amendments issued

The PP approved is for a lumpsum consultancy the contract signed is a time-Based consultancy.

Official
  Incorporating wrong methods /estimates/specs can lead to avoidable delays and
transactions . Prior to arriving at method and estimate in STEP do a market
survey.
 The process as mentioned in STEP to be adhered to and documents to be promptly
uploaded at each stage.
 The contract value and value updated in STEP should be consistent .Do not skip
steps in STEP .

Procuremen 


Minimum three quotations are required for RFQ method of procurement.

RFQ needs to carry complete information in regard to date of submission; required

t compliance
specification, quantity, quantity variation, if contracting will be based on
individual items or all evaluated together only, payment terms, delivery period,
guarantee warrant requirements etc .

& Review –
 Do not proceed with award before the last date of submission as mentioned in
RFQ.
 Comparative should be based on the invited RFQ.

Way 


For RFB procurement use standard BER format and duly upload it in STEP.

No change in specification and terms can be made at the contract award stage.

Forward-I
The RFQ and contract to be consistent.
 All Contract should be awarded within the bid validity period.
 Civil work contracts to be awarded on single responsibility basis.
 Contract terms, contract amount and contract period are important aspects which
need to be captured in the contract .
 Cannot change method after the contract is signed.
 Payments to be made as per contract terms

Official
  No retendering if responsive bids have been received. For
retendering provide appropriate justification (refer to the
guideline) and upload in STEP.
 All complaints need to be updated in STEP and upon
resolution should be closed with all documentation fully
uploaded else PMU should review the complaints and
Procuremen 
escalate it, as appropriate.
If the contract is likely to be delayed then issue EOT before

t compliance contract expiry with justification in files. Upload the

addendum with justification note in STEP

& Review –
If item in the RFQ is to be evaluated separately then same
to be stated in RFQ upfront.
 If there are delays in supplies (even if procured thru eGem)
Way then either issue an amendment or terminate the contract
(record the justification in both instances ).

Forward-II 

Timely amendment to be issued
If the items need to be changed then update STEP before
proceeding with the activity.
 Use generic specification. Wherever unavoidable please add
‘or equivalent’
 Backdated document not to be uploaded unless agreed with
Bank

Official
 eGem in Lieu of RFQ

eGem only for RFQ method i.e upto $100,000.

Not to be used for procurement above $100,000 (RFB)

up to INR 50,000 in catalog mode (viz. any available item could be selected by IA
without further competition), provided selected Item/Supplier meeting the requisite
quality, specification and delivery period.

up to INR 3 Million from the Supplier having lowest price amongst at least three
Suppliers meeting the requisite quality, specification and delivery period. The tools for
online bidding and online reverse auction available on GeM may be used by the
Purchaser.
up to INR equivalent of US$ 100,000 from the Supplier having lowest price and
meeting the requisite quality, specification and delivery period after mandatorily
obtaining bids from at least three Suppliers, using online bidding or reverse auction
tool provided on GeM.”

Official
 PREPARE Good Estimates
 Cost & time overruns can be arrested simply by making good estimates.
 Estimates should be proposed after proper ground survey and market rates.
 variations during execution reflects poor quality of estimation.
VERIFY Documents
 Due diligence in checking Documents such as completion certificates for past
experience, Bank Guarantees etc should be done independently to ensure
authenticity.
EXAMINE Quality

REMEMBER  Some times forged records of testing are created. This results in execution of sub-
standard quality of works, which adversely affects the performance and life of the
projects besides undue benefit to the contractor. Third part inspection gives an
unbiased confirmation on the quality .
KEEP Records
 Records authenticate quality and quantity audits conducted by field staff and
regulate mandatory requirements. These become handy for fixing accountability
also.
 Thus record generation, safe custody and authenticity of records need attention
and verification by Sr Officers.

Official
  PMU and IA to propose actions to minimize these occurrences.
 PMU and each AU must prepare a kit of most critical document which includes but not
limited to – Applicable Guidelines ,Project Procurement manual, Model Bid document, Formats for
evaluation ,contract format and PPR format and upload on website for easy access.
 Each IA shall have designated procurement person who have received training at ASCI
Hyderabad or held by PMU to carry out procurement. The names of officers to be shared with the
PMU and Frequent change in the procurement personnel to be avoided as it is an impediment in
smooth functionality. Should that be necessitated then ensure proper handover is done.
 PMU shall prepare an annual calendar of Regular clinics and workshops and
disseminate to all AU’s and ensure that each university has more than one official who

ACTION TO
is trained and familiar with Bank procurement requirements . to disseminate the
procurement guidance and findings and get commitment from implementing agencies and PMU
on actions that will be taken to mitigate these issues.

BE TAKEN :
 An independent consultant to be onboarded without further delay for conducting regular
procurement review and sharing the report ever six months
 PMU to proactively disseminate regularly norms which are commonly applicable for all AU’s ,
Provide an update in regard to FAQ, specific observations, guidance ,training material from
time to time .
 All complaints to be closely monitored by PMU and ensure that they are duly addressed and

WAY 
closed in an amicable manner .
Bank standard/Model documents as agreed with Bank shall be used consistently across

FORWARD
board. All agencies need to ensure compliance to the agreed procedures and processes
 All IA must ensure that all the documents are uploaded in STEP in a timely manner .
 Regular internal Quality assurance by the AU’s and PMU by reviewing if the documents are
uploaded in STEP and if the procurement process are being correctly and consistently followed .
 Ensure procurement MIS is developed and information is updated on real time basis .
 Action to be initiated for large number of activities cleared in STEP. This will require
proactive review and engagement by PMU.
 Action plan should be updated by PMU and agreed with Bank in addition to the PPR report
response.

Official
 THANK YOU

Official