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Supply and Installation- B Section I. Invitation for Bids

Section I. Invitation for Bids, Option B
Notes on the Invitation for Bids

The Invitation for Bids (IFB) (see para. 2.8 of the World Bank Guidelines: Procurement under IBRD Loans and IDA Credits, January 1995, revised January and August 1996 and September 1997), shall be issued as

    (a) an advertisement in at least one newspaper of general circulation in the Borrower's country and in the official gazette, if any

    (b) an advertisement in Development Business and/or well-known technical magazines (mandatory if specified in the Loan or Credit Agreement)Advertising inquiries about the U.N. Development Business publication can be directed as shown below:

    Development Business, 1818 H Street, N.W., Washington, D.C. 20433 U.S.A.; Telephone: 1-202-458-2397; Facsimile: 1-202-522-3316; Internet:

    (c) a letter addressed to interested bidders who, following the publication of the General Procurement Notice, have expressed interest in bidding for the installation of the plant and equipment for which the invitation is issued

    (d) optionally, a circular to consular or diplomatic representatives of countries with potential bidders.

The IFB provides information that enables potential bidders to decide whether to participate. Apart from the essential items listed in the Standard Bidding Documents (SBDs), the IFB should also indicate any important bid evaluation criteria (for example, the application of a margin of preference in bid evaluation) or qualification requirement (for example, a requirement for a minimum level of experience in manufacturing and installing a similar type of plant and equipment for which the IFB is issued).

The IFB should be incorporated into the bidding documents. The information contained in the IFB must conform to the bidding documents and in particular to the relevant information in the Bid Data Sheets.

A sample letter of invitation for second stage bids is also included. The letter is sent only to firms determined by the Employer, following the first stage bid evaluation, to be qualified and responsive in order to participate in the second stage bidding process.



[Name of Country]

[Name of Project]


Loan [Credit] No.

1. This invitation for bids follows the general procurement notice for this project that appeared in Development Business, issue no. [insert number] of [insert date]. 1

2. The [insert name of borrower] [has received/has applied for/intends to apply for] a [loan/credit] from the [International Bank for Reconstruction and Development/International Development Association] toward the cost of [insert name of project], and it intends to apply part of the proceeds of this [loan/credit] to payments under the contract for [insert name/no. of contract]. 2

3. The [insert name of implementing agency] now invites sealed bids from eligible bidders for [insert description of goods or works to be procured]. 3,4

4. Bidding will be conducted through the international competitive bidding procedures specified in the World Bank's Guidelines: Procurement under IBRD Loans and IDA Credits, and is open to all bidders from eligible source countries as defined in the guidelines. 5

5. Interested eligible bidders may obtain further information from [insert name of agency] and inspect the bidding documents at the address given below [state address at end of document] from [insert office hours]. 6

6. A complete set of bidding documents in [insert name of language] may be purchased by interested bidders on the submission of a written application to the address below [state address at the end of document] and upon payment of a nonrefundable fee7 [insert amount in local currency] or in [insert amount in specified convertible currency]. The method of payment will be [insert method of payment].8 The document will be sent by [insert delivery procedure].9

7. A Two Stage Bidding Procedure will be adopted and will proceed as follows:

    (a) The first stage bid will consist of a technical bid only, without any reference to prices, and a list of any deviations to the technical and commercial conditions set forth in the bidding documents or any alternative technical solutions a Bidder wishes to offer, and a justification therefor, always provided that such deviations or alternative solutions do not change the basic objectives of the project. Following evaluation by the Employer of the first stage bids, the Employer will invite each Bidder who meets the minimum acceptable qualification criteria and who has submitted a technically responsive first stage bid to a clarification meeting, during which the Bidder's bid will be reviewed and all required amendments, additions, deletions and other adjustments will be noted and recorded in a Memorandum. Only those bidders submitting a technically responsive and acceptable first stage bid will be invited to submit a second stage bid.

    (b) The second stage bid will consist of (i) an updated technical bid incorporating all changes required by the Employer as recorded in the Memorandum to the clarification meeting or as necessary to reflect any amendment to the bidding documents issued subsequent to submission of the first stage bid, and (ii) the commercial bid.

8. Bids must be delivered to the address below [state address at the end of document] at or before [insert time and date]. All second stage bids must be accompanied by a bid security of [insert amount in local currency or minimum percentage of bid price] or an equivalent amount in a freely convertible currency.10 Late bids will be rejected. First stage bids will be opened in the presence of the bidders' representatives who choose to attend at the address below [state address at end of document] at [insert time and date].11 Second stage bids will be opened in the presence of the bidders' representatives who choose to attend at the time and date and at the address given in the letter of invitation to submit second stage bids.
    [Insert name of office].
    [Insert name of officer].
    [Insert postal address] and/or [Insert street address].
    [Insert telephone number, indicate country and city code].
    [Insert facsimile or cable number].


1. Day, month, year; for example, 31 January 1996.

2. [Insert if applicable]. This contract will be jointly financed by [insert name of cofinancing agency]. Bidding will be governed by the World Bank's eligibility rules and procedures.

3. A brief description of the type(s) of goods or works should be provided, including quantities, location of project, and other information necessary to enable potential bidders to decide whether or not to respond to the invitation. Bidding documents may require bidders to have specific experience or capabilities; such restrictions should also be included in this paragraph.

4. [Insert if applicable]. The delivery/construction period is [insert no.of days/months/years or dates].

5. Occasionally, contracts may be financed out of special funds that would further restrict eligibility to a particular group of member countries. When this is the case, it should be mentioned in this paragraph. Also indicate any margin of preference that may be granted as specified in the Loan or Credit Agreement and set forth in the bidding documents.

6. For example, 0900 to 1200 hours.

7. The fee, to defray printing and mailing/shipping costs, should be nominal.

8. For example, cashier's check, direct deposit to specified account no., etc.

9. The delivery procedure is usually airmail for overseas delivery and surface mail or courier for local delivery. If urgency or security dictates, courier services may be required for overseas delivery.

10. The amount of bid security should be stated as a fixed amount or as a minimum percentage of the bid price. Alternatively, if a bid security is not required (often the case in supply contracts), the paragraph should so state.

11. The office for bid opening may not necessarily be the same as that for inspection or issuance of documents or for bid submission. If they differ, each address must appear at the end of paragraph 7 and be numbered; as, for example, (1), (2), (3). The text in the paragraph would then refer to address (1), (2), etc. Only one office and its address may be specified for submission, and it should be near the place where bids will be opened.

Sample Letter of Invitation (Second Stage Bids)

(letterhead of the Employer)

Date: __________________
Loan/Credit No.: __________________
Contract Name: __________________
To: [Name and address of the Bidder]

Dear Ladies and/or Gentlemen,

1. We hereby inform you that you are invited to submit a sealed second stage bid for the execution and completion of the cited contract for which you submitted a first stage bid on [date of submission of first stage bid], which was reviewed during the clarification meeting(s) held on [date(s)] and has been found technically responsive.

2. Your second stage bid should include an updated technical and commercial bid [or accepted alternative bid] based on [attached amendment, if any]1 and on the modifications, if any, listed in the "Changes Required Pursuant to the First Stage Evaluation" Annex to the Memorandum of the clarification meeting(s) held with you on [date(s)].2

3. Second stage bids shall be submitted [time, date and address for second stage bid submission] and will be opened in the presence of the Bidder's representatives who choose to attend at [time, date and address for second stage bid opening].3

4. Second stage bids shall remain valid for [number of days]4 after the date of bid opening prescribed above.

5. All second stage bids must be accompanied by a bid security in an amount of [fixed amount in local currency] or the equivalent of [fixed amount in U.S. dollars] in a freely convertible currency in one of the following forms:

    (a) a bank guarantee or irrevocable letter of credit issued directly by a reputable bank, in the form provided in the bidding documents

    (b) a cashier's or certified check.

6. In the comparison of evaluated bids, the Employer will grant a margin of preference to plant and equipment manufactured in the Employer's country, in accordance with the procedures outlined in the bidding documents.5

7. [If bidders were prequalified, include any update requirement from the information provided for prequalification.]6

8. Please confirm receipt of this letter immediately in writing by cable, fax or telex. If you do not intend to bid, we would appreciate being so notified again in writing at your earliest opportunity.

Yours truly,

Authorized signature: ___________________________

Name and title: _______________________________

Employer: ___________________________________

ENCLOSURE [Amendments, if any, and Memorandum of "Changes Required Pursuant to First Stage Evaluation"]



1. Amendment shall be common to all bidders invited to submit a second stage bid.

2. A copy of the respective Annex may be attached to the letter to the corresponding Bidder.

3. The dates of bid submission and bid opening should be the same, and the time should also be the same or immediately thereafter.

4. The period should be sufficient to permit completion of the second stage bid evaluation, review of the recommended selection by the Bank, obtainment of approvals and notification of award. A realistic period (e.g., sixty [60] days) should be specified in order to avoid the need for extension.

5. This item should be deleted when the margin of preference does not apply.

6. Information to be updated may be specified, such as an updated financial situation, new contractual commitments or current litigation

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