- Vendor Eligibility
- General Standards
- Suspension of Vendors Prior to Responsibility Determination
- Responsibility Determinations of Vendors
- Notice of Decision on Responsibility
1. Vendor Eligibility
1.1 The following prescribes policies, standards, and procedures for determining whether a vendor is excluded, either permanently or for a specified period of time, from receiving future contract awards from the Bank Group based on a finding by the Director of the Bank Group’s General Services Department (GSD) that the vendor is non-responsible.
1.2 Only vendors found to be responsible or conditionally responsible are eligible to be awarded Bank Group contracts and to bid on Bank Group solicitations. Pursuant to the Bank Group’s Corporate Procurement Policies and Procedures, Responsibility Determinations are made by the responsible Procurement Officer prior to approving a vendor application and prior to contract award.
1.3 Nothing in these policies, standards, and procedures, and nothing shared, exchanged, transmitted, or otherwise produced during proceedings, will be considered to alter, abrogate, or waive the privileges and immunities set forth in provisions of national law and international conventions, and in the governing documents of IBRD, IFC, IDA, ICSID, and MIGA.
2.1 The following definitions apply:
(a) Administrative Agreement. Means an agreement between the Bank Group and a vendor prescribing conditions and obligations the vendor must meet to be considered conditionally responsible.
(b) Affiliate. An entity is an affiliate of another entity if:
(i) Either entity controls or has the power to control the other; or
(ii) A third party controls or has the power to control both entities. Indications of control include, but are not limited to, interlocking management or ownership, identity of interests among family members, shared facilities and equipment, common use of employees, or a business entity organized following the suspension or determination of non-responsibility of a vendor that has the same or similar management, ownership, or principal employees as the vendor that was suspended or deemed non-responsible, including business entities organized as a result of a merger, acquisition or reorganization.
(c) Collusive practice. Means an arrangement between two or more parties designed to achieve an improper purpose, including to influence improperly the actions of another party.
(d) Coercive practice. Means impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to influence improperly the actions of a party.
(e) Conviction. Means a conviction of a criminal offense by any court of competent jurisdiction, whether entered upon a verdict or a plea, and includes a conviction entered upon a plea of no contest.
(f) Conditional Responsibility Determination. Means a decision by the Director of GSD allowing a vendor to be eligible to receive Bank Group contract awards and to bid on Bank Group solicitations, provided that conditions and obligations prescribed by the Bank Group in an administrative agreement are met.
(g) Corrupt practice. Means the offering, giving, receiving or soliciting, directly or indirectly, of anything of value to influence improperly the actions of another party.
(h) Fraudulent practice. Means any act or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to mislead a party to obtain a financial or other benefit or to avoid an obligation.
(i) Non-responsibility Determination. Means a decision by the Director of GSD to exclude a vendor from eligibility to receive Bank Group contract awards and to bid on Bank Group solicitations for a specified or indefinite period of time.
(j) Obstructive practice. Means:
(i) deliberately destroying, falsifying, altering or concealing evidence material to the investigation or making false statements to investigators in order to materially impede a Bank investigation into allegations of a corrupt, fraudulent, coercive or collusive practice; and/or threatening, harassing or intimidating any party to prevent it from disclosing its knowledge of matters relevant to the investigation or from pursuing the investigation; or
(ii) acts intended to materially impede the exercise of the Bank’s inspection and audit rights provided under its contract with a Bank Group vendor.
(k) Responsibility Determination. Means a decision by the Bank Group that a vendor is eligible to receive Bank Group contract awards and to bid on Bank Group solicitations.
(l) Suspension. Means an action taken by the Bank Group to temporarily exclude a vendor from Bank Group procurement pending a determination whether the vendor is responsible.
(m) Vendor. Means any legal entity, including its affiliates, that directly or indirectly (for example, through an affiliate, prime contractor, or subcontractor) submits offers for or reasonably may be expected to submit offers for a Bank Group contract or is awarded a Bank Group contract.
3. General Standards
3.1 To be deemed a responsible vendor with whom the Bank Group will conduct business, a vendor:
(a) Must have adequate financial resources to perform the contract (or the ability to obtain those resources);
(b) Must be able to comply with the required or proposed delivery or performance schedule, taking into consideration all existing commercial and other business commitments;
(c) Must have a satisfactory performance record;
(d) Must have the necessary organization, experience, accounting, and operational controls, appropriate insurance and technical skills (including, as appropriate, such elements as production control procedures, property control systems, quality assurance measures, and safety programs applicable to materials to be produced or services to be performed by the vendor);
(e) Must have the necessary technical experience, equipment, and facilities;
(f) Must not have committed any act or offense indicating a lack of integrity or honesty that seriously and directly affects the present responsibility of a vendor, including fraudulent, corrupt, collusive, coercive, or obstructive practices as defined above;
(g) Must not have been suspended or debarred, or otherwise identified as ineligible for contracting with the Bank Group in connection with the vendor’s involvement in operational work;
(h) Must not have been identified on any Anti-Money Laundering/Combating the Financing of Terrorists sanctions lists monitored by the Bank Group, including but not limited to the United Nations 1267 sanctions list, the United States Executive Order 13224 sanctions list, and the United Kingdom terrorist sanctions list;
(i) Must not have violated the terms of a Bank Group contract in a manner so serious in nature as to justify a determination of non-responsibility, such as:
(i) willful failure to perform in accordance with the terms of one or more Bank Group contracts, and/or
(ii) a history of failure to perform, or unsatisfactory performance on, one or more Bank Group contracts;
(j) Must not have refused to cooperate with any Bank Group review, audit, or investigation, and/or;
(k) Must not have undertaken any other action that in the sole discretion of the Bank Group is so serious or compelling in nature that it (i) affects the present responsibility of the vendor, including but not limited to attempting to influence a Bank Group procurement decision, or (ii) could result in harm to the Bank Group’s reputation or image.
3.2 The Bank Group may also consider a vendor to be non-responsible if it, or its owners, officers or key personnel have been suspended, debarred, or otherwise identified as ineligible for contracting or employment by the Bank Group, or any Bank Group member government or other international organization.
3.3 Should it come to the attention of the Bank Group that a vendor may no longer be a responsible vendor with whom the Bank Group will conduct business, the Director of GSD may make a determination whether a vendor is responsible, conditionally responsible, or non-responsible.
4. Suspension of Vendors Prior to Responsibility Determination
4.1 The Director of GSD may suspend a vendor pending a final Responsibility Determination, whenever the Director determines that there is a reasonable likelihood that further investigation will lead to a finding of non-responsibility.
4.2 When a vendor and any specifically named affiliates are suspended, they shall be advised in writing by the Director of GSD:
(a) that they have been suspended;
(b) of the cause(s) relied upon and reasons for imposing suspension;
(c) of the effect of the suspension;
(d) that the suspension is for a temporary period pending the completion of proceedings that may ensue;
(e) that within the time period specified in the notice, the vendor may submit either in writing or through oral presentation, information showing that the vendor is responsible, including any additional specific information that raises a genuine dispute over the material facts, as well as any evidence of remedial measures taken or proposed by the vendor, or mitigating factors, and
(f) that suspension may lead to a determination of non-responsibility or conditional responsibility.
4.3 A vendor suspended pending a Responsibility Determination (a) is not eligible to receive Bank Group contract awards and/or to bid on Bank Group solicitations; (b) is excluded from conducting new business with the Bank Group as agents or representatives of other vendors; and (c) is precluded from having discussions with the Bank Group concerning the award of new contracts. A suspension applies to all affiliates of the vendor, unless the suspension decision is limited by its terms to specific divisions, organizational elements, or commodities.
5. Responsibility Determinations of Vendors
5.1 The Director of GSD will make the determination whether a vendor is responsible, conditionally responsible, or non-responsible based on all relevant information reasonably available, including any information submitted by the vendor to the Bank Group. This determination is final and without appeal.
5.2 Vendors found to be responsible are eligible to bid on Bank Group solicitations and receive Bank Group contract awards, subject to the vendors continuing to satisfy the requirements necessary to be considered responsible.
5.3 Vendors found to be conditionally responsible are required to meet the conditions and obligations prescribed by the Director of GSD in an administrative agreement prior to being eligible to receive Bank Group contract awards or to bid on Bank Group solicitations.
5.4 Vendors found to be non-responsible are, for a period of time determined by the Director of GSD,(a) ineligible to receive Bank Group contract awards or to bid on Bank Group solicitations, (b) excluded from conducting business with the Bank Group as agents or representatives of other vendors, and (c) precluded from having discussions with the Bank Group concerning the awarding of contracts. A Non-responsibility Determination applies to all affiliates of the vendor, unless the decision provides otherwise.
5.5 In any action in which the determination of non-responsibility is not based upon a conviction, the Non-responsibility Determination must be established on the basis of evidence that it is more likely than not that the vendor is not a responsible vendor. “More likely than not” means that upon consideration of all the relevant evidence, a preponderance of the evidence supports a finding that the vendor is not a responsible vendor.
6. Notice of Decision on Responsibility
6.1 Notice to the vendor of a Responsibility Determination will:
(a) Refer to the notice of suspension, if applicable;
(b) Indicate whether the vendor has been determined to be responsible, conditionally responsible, or non-responsible;
(c) In the case of a Non-responsibility Determination, specify the reason(s) for non-responsibility and the period of non-responsibility, including effective dates, and identify all affiliates, if any, of the vendor also deemed non-responsible;
(d) In the case of conditional responsibility, specify the reason(s) for the Conditional Responsibility Determination and include an administrative agreement as an attachment to the notice indicating the conditions and obligations with which the vendor is required to comply prior to being eligible to receive Bank Group contracts and to bid on Bank Group solicitations.
6.2 Ineligibility of a vendor due to non-responsibility shall be for a period commensurate with the seriousness of the cause(s).
(a) The Director of GSD may extend the ineligibility period for an additional period, if he/she determines that an extension is necessary to protect the Bank Group’s interests.
(b) The Director of GSD may, upon a vendor’s written request, reduce or eliminate the period or extent of ineligibility for reasons such as:
(i) newly discovered material information;
(ii) reversal of the conviction upon which the Non-responsibility Determination was based;
(iii) bona fide change in ownership or management;
(iv) measures taken by the vendor to become responsible; or
(v) other reasons the Director of GSD deems appropriate.
6.3 A copy of all notices of Non-responsibility Determinations will be sent to the Bank Group’s responsible Managing Director.
6.4 The Bank will post publicly the names of non-responsible vendors with the basis in the policy for that determination.
6.5 This policy can be amended with the approval of a Managing Director.