| Section II. Instructions to BiddersNotes on the Instructions to Bidders This section of the bidding documents should provide the information necessary for bidders to prepare responsive bids, in accordance with the requirements of the Employer. It should also give information on bid submission, opening and evaluation, and on the award of Contract. Matters governing the performance of the Contractor, payments under the Contract, or matters affecting the risks, rights, and obligations of the parties under the Contract are not normally included in this Section, but rather under Section IV, Conditions of Contract, and/or Section V, Contract Data. If duplication of a subject is inevitable in the different sections of the documents, care must be exercised to avoid contradiction between clauses dealing with the same matter. These Instructions to Bidders will not be part of the Contract and will cease to have effect once the Contract is signed. Table of Clauses A. General 1. Scope of Bid 2. Source of Funds 3. Eligible Bidders 4. Qualification of the Bidder 5. One Bid per Bidder 6. Cost of Bidding 7. Site Visit B. Bidding Documents 8. Content of Bidding Documents 9. Clarification of Bidding Documents 10. Amendment of Bidding Documents C. Preparation of Bids 11. Language of Bid 12. Documents Comprising the Bid 13. Bid Prices 14. Currencies of Bid and Payment 15. Bid Validity 16. Bid Security 17. Alternative Proposals by Bidders 18. Format and Signing of Bid | D. Submission of Bids 19. Sealing and Marking of Bids 20. Deadline for Sub-mission of Bids 21. Late Bids 22. Modification and Withdrawal of Bids E. Bid Opening and Evaluation 23. Bid Opening 24. Process to Be Confidential 25. Clarification of Bids 26. Examination of Bids and Determination of Responsiveness 27. Correction of Errors 28. Currency for Bid Evaluation 29. Evaluation and Comparison of Bids 30. Preference for Domestic Bidders F. Award of Contract 31. Award Criteria 32. Employer's Right to Accept any Bid and to Reject any or all Bids 33. Notification of Award and Signing of Agreement 34. Performance Security 35. Advance Payment and Security 36. Adjudicator
37. Corrupt or Fraudulent Practices G. Bidding Data |
A. General | | 1. Scope of Bid | 1.1 The Employer7 as defined in the Contract Data, invites bids for the construction of Works, as described in the Contract Data. The name and identification number of the Contract is provided in the Contract Data. 1.2 The successful Bidder will be expected to complete the Works by the Intended Completion Date specified in the Contract Data. | | 2. Source of Funds | 2.1 The Borrower, as defined in the Bidding Data, intends to apply part of the funds of a loan from the World Bank, as defined in the Bidding Data, towards the cost of the Project, as defined in the Bidding Data, to cover eligible payments under the Contract for the Works. Payments by the World Bank will be made only at the request of the Borrower and upon approval by the World Bank in accordance with the Loan Agreement, and will be subject in all respects to the terms and conditions of that Agreement. Except as the World Bank may specifically otherwise agree, no party other than the Borrower shall derive any rights from the Loan Agreement or have any rights to the loan proceeds. 2.2 The loan agreement prohibits a withdrawal from the loan account for the purpose of any payment to persons or entities, or for any import of goods, if such payment or import, to the knowledge of the Bank, is prohibited by a decision of the United Nations Security Council, taken under Chapter VII of the Charter of the United Nations. | | 3. Eligible Bidders | 3.1 This Invitation for Bids is open to all bidders from eligible countries as defined in the Procurement Guidelines. Any materials, equipment, and services to be used in the performance of the Contract shall have their origin in eligible source countries. 3.2 All bidders shall provide in Section 3, Forms of Bid and Qualification Information, a statement that the Bidder (including all members of a joint venture and subcontractors) is not associated, nor has been associated in the past, directly or indirectly, with the consultant or any other entity that has prepared the design, specifications, and other documents for the Project or being proposed as Project Manager for the Contract. A firm that has been engaged by the Borrower to provide consulting services for the preparation or supervision of the Works, and any of its affiliates, shall not be eligible to bid. 3.3 Government-owned enterprises in the Employer's country may only participate if they are legally and financially autonomous, operate under commercial law, and are not a dependent agency of the Employer. 3.4 Bidders shall not be under a declaration of ineligibility for corrupt and fraudulent practices issued by the Bank in accordance with sub-clause 37.1. | | 4. Qualification of the Bidder | 4.1 All bidders shall provide in Section 3, Forms of Bid and Qualification Information, a preliminary description of the proposed work method and schedule, including drawings and charts, as necessary. 4.2 In the event that prequalification of potential bidders has been undertaken, only bids from prequalified bidders will be considered for award of Contract. These qualified bidders should submit with their bids any information updating their original prequalification applications or, alternatively, confirm in their bids that the originally-submitted prequalification information remains essentially correct as of the date of bid submission. The update or confirmation should be provided in Section 3. 4.3 If the Employer has not undertaken prequalification of potential bidders, all bidders shall include the following information and documents with their bids in Section 2, unless otherwise stated in the Bidding Data: (a) copies of original documents defining the constitution or legal status, place of registration, and principal place of business; written power of attorney of the signatory of the Bid to commit the Bidder; (b) total monetary value of construction work performed for each of the last five years; (c) experience in works of a similar nature and size for each of the last five years, and details of work under way or contractually committed; and clients who may be contacted for further information on those contracts; (d) major items of construction equipment proposed to carry out the Contract; (e) qualifications and experience of key site management and technical personnel proposed for the Contract; (f) reports on the financial standing of the Bidder, such as profit and loss statements and auditor's reports for the past five years; (g) evidence of adequacy of working capital for this Contract (access to line(s) of credit and availability of other financial resources); (h) authority to seek references from the Bidder's bankers; (i) information regarding any litigation, current or during the last five years, in which the Bidder is involved, the parties concerned, and disputed amount; and (j) proposals for subcontracting components of the Works amounting to more than 10 percent of the Contract Price. 4.4 Bids submitted by a joint venture of two or more firms as partners shall comply with the following requirements, unless otherwise stated in the Bidding Data: (a) the Bid shall include all the information listed in Sub-Clause 4.3 above for each joint venture partner; (b) the Bid shall be signed so as to be legally binding on all partners; (c) all partners shall be jointly and severally liable for the execution of the Contract in accordance with the Contract terms; (d) one of the partners will be nominated as being in charge, authorized to incur liabilities, and receive instructions for and on behalf of any and all partners of the joint venture; and (e) the execution of the entire Contract, including payment, shall be done exclusively with the partner in charge. 4.5 To qualify for award of the Contract, bidders shall meet the following minimum qualifying criteria: (a) annual volume of construction work of at least the amount specified in the Bidding Data;8 (b) experience as prime contractor in the construction of at least two works of a nature and complexity equivalent to the Works over the last 10 years (to comply with this requirement, works cited should be at least 70 percent complete); (c) proposals for the timely acquisition (own, lease, hire, etc.) of the essential equipment listed in the Bidding Data; (d) a Contract Manager with five years' experience in works of an equivalent nature and volume, including no less than three years as Manager; and (e) liquid assets and/or credit facilities, net of other contractual commitments and exclusive of any advance payments which may be made under the Contract, of no less than the amount specified in the Bidding Data.9 A consistent history of ligitigation or arbitration awards against the Applicant or any partner of a Joint Venture may result in disqualification. 4.6 The figures for each of the partners of a joint venture shall be added together to determine the Bidder's compliance with the minimum qualifying criteria of Sub-Clause 4.5(a) and (e); however, for a joint venture to qualify, each of its partners must meet at least 25 percent of minimum criteria 4.5(a), (b), and (e) for an individual Bidder, and the partner in charge at least 40 percent of those minimum criteria. Failure to comply with this requirement will result in rejection of the joint venture's Bid. Subcontractors' experience and resources will not be taken into account in determining the Bidder's compliance with the qualifying criteria, unless otherwise stated in the Bidding Data. 4.7 Domestic bidders and joint ventures of domestic bidders applying for eligibility for a 7ᅡᄑ-percent margin of preference in bid evaluation shall supply all information to satisfy the criteria for eligibility as described in Clause 30 of these Instructions to Bidders.10 | | 5. One Bid per Bidder | 5.1 Each Bidder shall submit only one Bid, either individually or as a partner in a joint venture. A Bidder who submits or participates in more than one Bid (other than as a subcontractor or in cases of alternatives that have been permitted or requested) will cause all the proposals with the Bidder's participation to be disqualified. | | 6. Cost of Bidding | 6.1 The Bidder shall bear all costs associated with the preparation and submission of his Bid, and the Employer will in no case be responsible or liable for those costs. | | 7. Site Visit | 7.1 The Bidder, at the Bidder's own responsibility and risk, is encouraged to visit and examine the Site of Works and its surroundings and obtain all information that may be necessary for preparing the Bid and entering into a contract for construction of the Works. The costs of visiting the Site shall be at the Bidder's own expense. | B. Bidding Documents | | 8. Content of Bidding Documents | 8.1 The set of bidding documents comprises the documents listed in the table below and addenda issued in accordance with Clause 10: Section II Instructions to Bidders Section III Forms of Bid and Qualification Information Section IV Conditions of Contract Section V Contract Data Section VI Specifications Section VII Drawings Section VIII Bill of Quantities11 Section IX Forms of Securities 8.2 Three copies of Sections III, V, and VIII are supplied to the prospective Bidder. The number of copies to be completed and returned with the Bid is specified in the Bidding Data. | | 9. Clarification of Bidding Documents | 9.1 A prospective Bidder requiring any clarification of the bidding documents may notify the Employer in writing or by cable ("cable" includes telex and facsimile) at the Employer's address indicated in the invitation to bid. The Employer will respond to any request for clarification received earlier than 2812 days prior to the deadline for submission of bids. Copies of the Employer's response will be forwarded to all purchasers of the bidding documents, including a description of the inquiry, but without identifying its source. | | 10. Amendment of Bidding Documents | 10.1 Before the deadline for submission of bids, the Employer may modify the bidding documents by issuing addenda. 10.2 Any addendum thus issued shall be part of the bidding documents and shall be communicated in writing or by cable to all purchasers of the bidding documents.13 Prospective bidders shall acknowledge receipt of each addendum by cable to the Employer. 10.3 To give prospective bidders reasonable time in which to take an addendum into account in preparing their bids, the Employer shall extend, as necessary, the deadline for submission of bids, in accordance with Sub-Clause 20.2 below. | C. Preparation of Bids | | 11. Language of Bid | 11.1 All documents relating to the Bid shall be in the language specified in the Contract Data.14 | | 12. Documents Comprising the Bid | 12.1 The Bid submitted by the Bidder shall comprise the following: (a) The Bid (in the format indicated in Section 2); (b) Bid Security; (c) priced Bill of Quantities; (d) Qualification Information Form and Documents; (e) Alternative offers where invited; and any other materials required to be completed and submitted by bidders, as specified in the Bidding Data. | | 13. Bid Prices | 13.1 The Contract shall be for the whole Works, as described in Sub-Clause 1.1, based on the priced Bill of Quantities15 submitted by the Bidder. 13.2 The Bidder shall fill in rates and prices for all items of the Works described in the Bill of Quantities.16 Items for which no rate or price is entered by the Bidder will not be paid for by the Employer when executed and shall be deemed covered by the other rates and prices in the Bill of Quantities. 13.3 All duties, taxes, and other levies payable by the Contractor under the Contract, or for any other cause, as of the date 28 days prior to the deadline for submission of bids, shall be included in the rates, prices, and total Bid price submitted by the Bidder.17 13.4 The rates and prices18 quoted by the Bidder shall be subject to adjustment during the performance of the Contract if provided for in the Bidding and Contract Data and the provisions of Clause 47 of the Conditions of Contract. The Bidder shall submit with the Bid all the information required under the Contract Data and Clause 47 of the Conditions of Contract. | | 14. Currencies of Bid and Payment | 14.1 The unit rates and prices19 shall be quoted by the Bidder entirely in the currency of the Employer's country as specified in the Contract Data. Foreign currency requirements shall be indicated as a percentage of the Bid price (excluding provisional sums 20) and shall be payable at the option of the Bidder in up to three foreign currencies of any member country. 14.2 The rates of exchange to be used by the Bidder in arriving at the local currency equivalent and the percentage(s) mentioned in para. 14.1 above shall be the selling rates for similar transactions established by the authority specified in the Contract Data prevailing on the date 28 days prior to the latest deadline for submission of bids. These exchange rates shall apply for all payments so that no exchange risk will be borne by the Bidder. If the Bidder uses other rates of exchange, the provisions of Clause 28.1 shall apply. In any case, payments will be computed using the rates quoted in the Bid. 14.3 Bidders shall indicate details of their expected foreign currency requirements in the Bid. 14.4 Bidders may be required by the Employer to clarify their foreign currency requirements and to substantiate that the amounts included in the rates and prices21 and in the Contract Data are reasonable and responsive to Sub-Clause 14.1. | | 15. Bid Validity | 15.1 Bids shall remain valid for the period22 specified in the Bidding Data. 15.2 In exceptional circumstances, the Employer may request that the bidders extend the period of validity for a specified additional period. The request and the bidders' responses shall be made in writing or by cable. A Bidder may refuse the request without forfeiting the Bid Security. A Bidder agreeing to the request will not be required or permitted to otherwise modify the Bid, but will be required to extend the validity of Bid Security for the period of the extension, and in compliance with Clause 16 in all respects. 15.3 In the case of contracts in which the Contract Price is fixed (not subject to price adjustment), if the period of bid validity is extended beyond 60 days, the amounts payable in local and foreign currency to the Bidder selected for award, shall be increased by applying to both the local and the foreign currency component of the payments, respectively, the factors23 specified in the Bidding Data or in the request for extension, for the period of delay beyond 60 days after the expiry of the initial bid validity, up to the notification of award. Bid evaluation will be based on the Bid prices without taking the above correction into consideration. | | 16. Bid Security | 16.1 The Bidder shall furnish, as part of the Bid, a Bid Security in local currency or in a freely convertible currency, in the amount specified in the Bidding Data.24 16.2 The Bid Security shall, at the Bidder's option, be in the form of either a certified check, letter of credit, bank guarantee from a banking institution, or a bond issued by an insurance or bonding institution from a reputable institution selected by the Bidder and located in any eligible country. The format of the Bid Security should be in accordance with the form of Bid Security included in Section 8 or another form acceptable to the Employer. Bid Security shall be valid for 28 days beyond the validity of the Bid. 16.3 Any bid not accompanied by an acceptable Bid Security shall be rejected by the Employer. The Bid Security of a joint venture must define as "bidder" all joint venture partners and list them in the following manner: a joint venture consisting of "______," "______," and "______". 16.4 The Bid Security of unsuccessful bidders will be returned within 28 days of the end of the Bid validity period specified in Sub-Clause 15.1. 16.5 The Bid Security of the successful Bidder will be discharged when the Bidder has signed the Agreement and furnished the required Performance Security. 16.6 The Bid Security may be forfeited (a) if the Bidder withdraws the Bid after Bid opening during the period of Bid validity; (b) if the Bidder does not accept the correction of the Bid price, pursuant to Clause 27; or (c) in the case of a successful Bidder, if the Bidder fails within the specified time limit to (i) sign the Agreement; or (ii) furnish the required Performance Security. | | 17. Alternative Proposals by Bidders | 17.1 Bidders shall submit offers that comply with the requirements of the bidding documents, including the basic technical design as indicated in the drawings and specifications. Alternatives will not be considered, unless specifically allowed in the Bidding Data. If so allowed, Sub-Clause 17.2 shall govern. 17.2 If so allowed in the Bidding Data, bidders wishing to offer technical alternatives to the requirements of the bidding documents must also submit a Bid that complies with the requirements of the bidding documents, including the basic technical design as indicated in the drawings and specifications. In addition to submitting the basic Bid, the Bidder shall provide all information necessary for a complete evaluation of the alternative by the Employer, including design calculations, technical specifications, breakdown of prices, proposed construction methods and other relevant details. Only the technical alternatives, if any, of the lowest evaluated Bidder conforming to the basic technical requirements shall be considered by the Employer. | | 18. Format and Signing of Bid | 18.1 The Bidder shall prepare one original of the documents comprising the Bid as described in Clause 12 of these Instructions to Bidders, bound with the volume containing the Form of Bid, and clearly marked "ORIGINAL." In addition, the Bidder shall submit copies of the Bid, in the number specified in the Bidding Data, and clearly marked as "COPIES." In the event of discrepancy between them, the original shall prevail. 18.2 The original and all copies of the Bid shall be typed or written in indelible ink and shall be signed by a person or persons duly authorized to sign on behalf of the Bidder, pursuant to Sub-Clauses 4.3(a) or 4.4(b), as the case may be. All pages of the Bid where entries or amendments have been made shall be initialled by the person or persons signing the Bid. 18.3 The Bid shall contain no alterations or additions, except those to comply with instructions issued by the Employer, or as necessary to correct errors made by the Bidder, in which case such corrections shall be initialled by the person or persons signing the Bid. 18.4 The Bidder shall furnish information as described in the Form of Bid on commissions or gratuities, if any, paid or to be paid to agents relating to this Bid, and to contract execution if the Bidder is awarded the contract. |
D. Submission of Bids | | 19. Sealing and Marking of Bids | 19.1 The Bidder shall seal the original and all copies of the Bid in two inner envelopes and one outer envelope, duly marking the inner envelopes as "ORIGINAL" and "COPIES". 19.2 The inner and outer envelopes shall (a) be addressed to the Employer at the address25 provided in the Bidding Data; (b) bear the name and identification number of the Contract as defined in the Bidding and Contract Data; and (c) provide a warning not to open before the specified time and date for Bid opening as defined in the Bidding Data. 19.3 In addition to the identification required in Sub-Clause 19.2, the inner envelopes shall indicate the name and address of the Bidder to enable the Bid to be returned unopened in case it is declared late, pursuant to Clause 21. 19.4 If the outer envelope is not sealed and marked as above, the Employer will assume no responsibility for the misplacement or premature opening of the Bid. | | 20. Deadline for Sub-mission of Bids | 20.1 Bids shall be delivered to the Employer at the address specified above no later than the time and date specified in the Bidding Data. 20.2 The Employer may extend the deadline for submission of bids by issuing an amendment in accordance with Clause 10, in which case all rights and obligations of the Employer and the bidders previously subject to the original deadline will then be subject to the new deadline. | | 21. Late Bids | 21.1 Any Bid received by the Employer after the deadline prescribed in Clause 20 will be returned unopened to the Bidder. | | 22. Modification and Withdrawal of Bids | 22.1 Bidders may modify or withdraw their bids by giving notice in writing before the deadline prescribed in Clause 20. 22.2 Each Bidder's modification or withdrawal notice shall be prepared, sealed, marked, and delivered in accordance with Clauses 18 and 19, with the outer and inner envelopes additionally marked "MODIFICATION" or "WITHDRAWAL," as appropriate. 22.3 No Bid may be modified after the deadline for submission of Bids. 22.4 Withdrawal of a Bid between the deadline for submission of bids and the expiration of the period of Bid validity specified in the Bidding Data or as extended pursuant to Sub-Clause 15.2 may result in the forfeiture of the Bid Security pursuant to Clause 16. 22.5 Bidders may only offer discounts to, or otherwise modify the prices of their bids by submitting Bid modifications in accordance with this clause, or included in the original Bid submission. | E. Bid Opening and Evaluation | | 23. Bid Opening | 23.1 The Employer will open the bids, including modifications made pursuant to Clause 22, in the presence of the bidders' representatives who choose to attend at the time and in the place specified in the Bidding Data. 23.2 Envelopes marked "WITHDRAWAL" shall be opened and read out first. Bids for which an acceptable notice of withdrawal has been submitted pursuant to Clause 22 shall not be opened. 23.3 The bidders' names, the Bid prices, the total amount of each Bid and of any alternative Bid (if alternatives have been requested or permitted), any discounts, Bid modifications and withdrawals, the presence or absence of Bid Security, and such other details as the Employer may consider appropriate, will be announced by the Employer at the opening. 23.4 The Employer will prepare minutes of the Bid opening, including the information disclosed to those present in accordance with Sub-Clause 23.3.26 | | 24. Process to Be Confidential | 24.1 Information relating to the examination, clarification, evaluation, and comparison of bids and recommendations for the award of a contract shall not be disclosed to bidders or any other persons not officially concerned with such process until the award to the successful Bidder has been announced. Any effort by a Bidder to influence the Employer's processing of bids or award decisions may result in the rejection of his Bid. | | 25. Clarification of Bids | 25.1 From the time of bid opening to the time of contract award, if any bidder wishes to contact the Employer on any matter related to the bid, it should do so in writing. 25.2 To assist in the examination, evaluation, and comparison of bids, the Employer may, at the Employer's discretion, ask any Bidder for clarification of the Bidder's Bid, including breakdowns of unit rates.27 The request for clarification and the response shall be in writing or by cable, telex, or facsimile, but no change in the price or substance of the Bid shall be sought, offered, or permitted except as required to confirm the correction of arithmetic errors discovered by the Employer in the evaluation of the bids in accordance with Clause 27. 25.3 Any effort by the Bidder to influence the Employer in the Employer's bid evaluation, bid comparison or contract award decisions may result in the rejection of the Bidders' bid. | | 26. Examination of Bids and Determination of Responsiveness | 26.1 Prior to the detailed evaluation of bids, the Employer will determine whether each Bid (a) meets the eligibility criteria defined in Clause 3; (b) has been properly signed; (c) is accompanied by the required securities; and (d) is substantially responsive to the requirements of the bidding documents. 26.2 A substantially responsive Bid is one which conforms to all the terms, conditions, and specifications of the bidding documents, without material deviation or reservation. A material deviation or reservation is one (a) which affects in any substantial way the scope, quality, or performance of the Works; (b) which limits in any substantial way, inconsistent with the bidding documents, the Employer's rights or the Bidder's obligations under the Contract; or (c) whose rectification would affect unfairly the competitive position of other bidders presenting substantially responsive bids. 26.3 If a Bid is not substantially responsive, it will be rejected by the Employer, and may not subsequently be made responsive by correction or withdrawal of the nonconforming deviation or reservation. | | 27. Correction of Errors | 27.1 Bids determined to be substantially responsive will be checked by the Employer for any arithmetic errors. Errors will be corrected by the Employer as follows:28 (a) where there is a discrepancy between the amounts in figures and in words, the amount in words will govern; and (b) where there is a discrepancy between the unit rate and the line item total resulting from multiplying the unit rate by the quantity, the unit rate as quoted will govern, unless in the opinion of the Employer there is an obviously gross misplacement of the decimal point in the unit rate, in which case the line item total as quoted will govern, and the unit rate will be corrected. 27.2 The amount stated in the Bid will be adjusted by the Employer in accordance with the above procedure for the correction of errors and, with the concurrence of the Bidder, shall be considered as binding upon the Bidder. If the Bidder does not accept the corrected amount, the Bid will be rejected, and the Bid Security may be forfeited in accordance with Sub-Clause 16.6(b). | | 28. Currency for Bid Evaluation | 28.1 Bids will be evaluated as quoted in the currency of the Employer's country as defined in the Contract Data in accordance with Sub-Clause 14.1, unless a Bidder has used different exchange rates than those prescribed in Sub-Clause 14.2, in which case the Bid will be first converted into the amounts payable in different currencies using the rates quoted in the Bid and then reconverted to the Employer's currency using the exchange rates prescribed in Sub-Clause 14.2. | | 29. Evaluation and Comparison of Bids | 29.1 The Employer will evaluate and compare only the bids determined to be substantially responsive in accordance with Clause 26. 29.2 In evaluating the bids, the Employer will determine for each Bid the evaluated Bid price by adjusting the Bid price as follows: (a) making any correction for errors pursuant to Clause 27; (b) excluding provisional sums and the provision, if any, for contingencies in the Bill of Quantities29, but including Daywork30, where priced competitively; (c) making an appropriate adjustment for any other acceptable variations, deviations, or alternative offers submitted in accordance with Clause 17; and (d) making appropriate adjustments to reflect discounts or other price modifications offered in accordance with Sub-Clause 22.5. 29.3 The Employer reserves the right to accept or reject any variation, deviation, or alternative offer. Variations, deviations, and alternative offers and other factors which are in excess of the requirements of the bidding documents or otherwise result in unsolicited benefits for the Employer will not be taken into account in Bid evaluation. 29.4 The estimated effect of any price adjustment conditions under Clause 47 of the Conditions of Contract, during the period of implementation of the Contract, will not be taken into account in Bid evaluation. 29.531 | | 30. Preference for Domestic Bidders | 30.1 If so indicated in the Bidding Data, domestic contractors may receive a margin of preference in Bid evaluation, for which this clause shall apply.32 30.2 Domestic bidders shall provide all evidence necessary to prove that they meet the following criteria to be eligible for a 7ᅡᄑ-percent margin of preference in the comparison of their bids with those of bidders who do not qualify for the preference. They should (a) be registered within the country of the Employer; (b) have majority ownership by nationals of the country of the Employer; (c) not subcontract more than 10 percent of the Contract Price, excluding provisional sums, to foreign contractors. 30.3 Joint ventures of domestic firms may be eligible for the margin of preference provided that: (a) the individual partners satisfy the criteria of eligibility of Sub-Clause 30.2 (a) and (b); (b) the joint venture shall be registered in the country of the Employer; (c) the joint venture shall not subcontract more than 10 percent of the Contract Price, excluding provisional sums, to foreign firms; and
(d) satisfy any other criteria specified for the purpose of domestic preference eligibility, as specified in the Bidding Data.33 30.4 The following procedure will be used to apply the margin of preference: (a) Responsive bids will be classified into the following groups: (i) Group A: bids offered by domestic bidders and joint ventures meeting the respective criteria of Sub-Clauses 30.2 and 30.3 above; and (ii) Group B: all other bids. (b) For the purpose of further evaluation and comparison of bids only, an amount equal to 7ᅡᄑ percent of the evaluated Bid prices determined in accordance with Clause 29.2(a), (b), and (d), will be added to all bids classified in Group B. | F. Award of Contract | | 31. Award Criteria | 31.1 Subject to Clause 32, the Employer will award the Contract to the Bidder whose Bid has been determined to be substantially responsive to the bidding documents and who has offered the lowest evaluated Bid price, provided that such Bidder has been determined to be (a) eligible in accordance with the provisions of Clause 3, and (b) qualified in accordance with the provisions of Clause 4. | | 32. Employer's Right to Accept any Bid and to Reject any or all Bids | 32.1 Notwithstanding Clause 31, the Employer reserves the right to accept or reject any Bid, and to cancel the bidding process and reject all bids, at any time prior to the award of Contract, without thereby incurring any liability to the affected Bidder or bidders or any obligation to inform the affected Bidder or bidders of the grounds for the Employer's action.34 | | 33. Notification of Award and Signing of Agreement | 33.1 The Bidder whose Bid has been accepted will be notified of the award by the Employer prior to expiration of the Bid validity period by cable, telex, or facsimile confirmed by registered letter. This letter (hereinafter and in the Conditions of Contract called the "Letter of Acceptance") will state the sum that the Employer will pay the Contractor in consideration of the execution, completion, and maintenance of the Works by the Contractor as prescribed by the Contract (hereinafter and in the Contract called the "Contract Price"). 33.2 The notification of award will constitute the formation of the Contract, subject to the Bidder furnishing the Performance Security in accordance with Clause 34 and signing the Agreement in accordance with Sub-Clause 33.3. 33.3 The Agreement will incorporate all agreements between the Employer and the successful Bidder. It will be signed by the Employer and sent to the successful Bidder, within 28 days following the notification of award along with the Letter of Acceptance. Within 21 days of receipt, the successful Bidder will sign the Agreement and deliver it to the Employer. 33.4 Upon the furnishing by the successful Bidder of the Performance Security, the Employer will promptly notify the other bidders that their bids have been unsuccessful. | | 34. Performance Security | 34.1 Within 21 days after receipt of the Letter of Acceptance, the successful Bidder shall deliver to the Employer a Performance Security in the amount stipulated in the Contract Data and in the form (Bank Guarantee35 and/or Bond36 ) stipulated in the Bidding Data, denominated in the type and proportions of currencies in the Letter of Acceptance and in Accordance with the Conditions of Contract. 34.2 If the Performance Security is provided by the successful Bidder in the form of a Bank Guarantee, it shall be issued either (a) at the Bidder's option, by a bank located in the country of the Employer or a foreign bank through a correspondent bank located in the country of the Employer, or (b) with the agreement of the Employer directly by a foreign bank acceptable to the Employer. 34.3 If the Performance Security is to be provided by the successful Bidder in the form of a Bond, it shall be issued by a surety which the Bidder has determined to be acceptable to the Employer. 34.4 Failure of the successful Bidder to comply with the requirements of Sub-Clause 34.1 shall constitute sufficient grounds for cancellation of the award and forfeiture of the Bid Security. | | 35. Advance Payment and Security | 35.1 The Employer will provide an Advance Payment on the Contract Price as stipulated in the Conditions of Contract, subject to a maximum amount,37 as stated in the Bidding Data. | | 36. Adjudicator | 36.1 The Employer proposes the person named in the Bidding Data to be appointed as Adjudicator under the Contract, at an hourly fee specified in the Bidding Data, plus reimbursable expenses. If the Bidder disagrees with this proposal, the Bidder should so state in the Bid. If, in the Letter of Acceptance, the Employer has not agreed on the appointment of the Adjudicator, the Adjudicator shall be appointed by the Appointing Authority designated in the Contract Data at the request of either party. | | 37. Corrupt or Fraudulent Practices | 37.1 The Bank requires that Borrowers (including beneficiaries of Bank loans), as well as Bidders/Suppliers/Contractors under Bank-financed contracts, observe the highest standard of ethics during the procurement and execution of such contracts. In pursuance of this policy, the Bank: (a) defines, for the purposes of this provision, the terms set forth below as follows: (i) "corrupt practice" means the offering, giving, receiving or soliciting of any thing of value to influence the action of a public official in the procurement process or in contract execution; and (ii) "fraudulent practice" means a misrepresentation of facts in order to influence a procurement process or the execution of a contract to the detriment of the Borrower, and includes collusive practice among Bidders (prior to or after bid submission) designed to establish bid prices at artificial non-competitive levels and to deprive the Borrower of the benefits of free and open competition;
(b) will reject a proposal for award if it determines that the Bidder recommended for award has engaged in corrupt or fraudulent practices in competing for the contract in question; (c) will declare a firm ineligible, either indefinitely or for a stated period of time, to be awarded a Bank-financed contract if it at any time determines that the firm has engaged in corrupt or fraudulent practices in competing for, or in executing, a Bank-financed contract.
37.2 Furthermore, Bidders shall be aware of the provision stated in sub-clause 23.2 and sub-clause 59.2 of the General Conditions of Contract." | G. Bidding Data This section should be filled out by the Employer before issuance of the bidding documents. | | (2.1) | The Borrower is [name of Borrower and statement of relationship with the Employer, if different from the Borrower].38 | | (2.1) | The "World Bank" means [insert "International Bank for Reconstruction and Development (IBRD)" or "International Development Association (IDA)," as appropriate], and loan refers to an [insert "IBRD loan" or "IDA credit," as appropriate] which, as of the date of issue of the bidding documents [insert "has been solicited" or "has been approved," as appropriate] by the World Bank. | | (2.1) | The Project is [name and summary description of the Project financed by the World Bank loan]. The loan/credit number is [insert number if available]. | | (4.3)39 | The information required from bidders in Sub-Clause 4.3 is modified as follows: [list any additions or deletions to list in Sub-Clause 4.4; otherwise list "none"]. | | (4.4) | The qualification data required from bidders in Sub-Clause 4.4 are modified as follows: [list any additions or deletions to list in Sub-Clause 4.4; otherwise list "none"]. | | (4.5) | The qualification criteria in Sub-Clause 4.5 are modified as follows: [list any additions or deletions to list in Sub-Clause 4.5; otherwise list "none"]. | | (4.5a) | The minimum required annual volume of construction work for the successful Bidder in any of the last five years shall be [insert figure in international trading currency, specified in Bidding Data]. | | (4.5c) | The essential equipment to be made available for the Contract by the successful Bidder shall be [insert equipment list]. | | (4.5e)40 | The minimum amount of liquid assets and/or credit facilities net of other contractual commitments of the successful Bidder shall be [insert figure in international trading currency specified in Bidding Data]. | (8.2) (18.1) | The number of copies of the Bid to be completed and returned shall be [insert number, usually two: more if essential]. | | (13.4) | The Contract [specify "is" or "is not"] subject to price adjustment41 in accordance with Clause 47 of the Conditions of Contract. | | (14.1) | (14.1) | | (15.1) | The period of Bid validity shall be [insert number] days after the deadline for Bid submission specified in the Bidding Data. | | (15.3) | The adjustment of Bid price in accordance with Clause 15.3 shall be calculated on the basis of an annual increase for foreign costs of [insert] percent and an annual increase for local costs of [insert] percent. | | (16.1) | The amount of Bid Security shall be [insert amount in local currency, as provided in the Invitation to Bid] or an equivalent amount in a freely-convertible currency. | | (17.0) | Alternative proposals to the requirements of the bidding documents [insert "will" or "will not," as appropriate] be permitted with respect to [describe the alternatives to be permitted, or delete, as appropriate]. | | (19.2) | The Employer's address for the purpose of Bid submission is [insert the receiving address provided in the Invitation for Bids]. | | (20.1) | The deadline for submission of bids shall be [insert time and date; the date should be the same and the time, in no event, earlier than that given in the Invitation for Bids, unless subsequently amended pursuant to Sub-Clause 20.2]. The date of the exchange rate is [insert date 28 days before Bid opening]. The authority for establishing the rates of exchange shall be [name, usually of the central bank in the Employer's country]. | | (30.0) | Domestic contractors [insert "may" or "will not," as appropriate] receive a margin of preference in Bid evaluation. | | (34.0) | The Standard Form of Performance Security acceptable to the Employer shall be [insert "Bank Guarantee" and/or "Performance Bond"]. | | (35.0) | The Advance Payment shall be limited to [insert] percent of the Contract Price. | | (36.1) | The Adjudicator proposed by the Employer is [insert name and address]. The hourly fee for this proposed Adjudicator shall be [insert amount and currency]. The biographical data of the proposed Adjudicator is as follows: [provide relevant information, such as education, experience, age, nationality, and present position; attach additional pages as necessary]. | | Download G. Bidding Data |
Footnotes 7. See also definitions of capitalized terms in Section IV, Conditions of Contract ("the Contract"). 8. This amount is usually not less than 2.5 times the estimated annual cash flow for the Contract. 9. Usually the equivalent of the estimated payments flow over 4-6 months at the average (straight line distribution) construction rate. The actual period of reference will depend on the speed with which the Employer will pay the Contractor's monthly certificates. 10. Delete Sub-Clause 4.7 where not applicable (see Clause 30). 11. In lump sum contracts, delete "Bill of Quantities" and replace with "Activity Schedule". 12. It may be necessary to extend the deadline for submission of bids if the Employer's response results in substantial changes to the Bidding Documents. See Clause 10 below. 13. It is therefore important that the Employer maintain a complete and accurate list of recipients of the bidding documents and their addresses. 14. Only English, French, or Spanish should be used in International Competitive Bidding. 15. In lump sum contracts, delete "priced Bill of Quantities" and replace with "priced Activity Schedule". 16. In lump sum contracts, delete "priced Bill of Quantities" and replace with "priced Activity Schedule". 17. In lump sum contracts, delete "described in the Bill of Quantities" and replace with "described in the drawings and specifications and listed in the Activity Schedule". In lump sum contracts, delete "rates, prices, and". 18. In lump sum contracts, delete "rates and prices" and replace with "lump sum price". 19. In lump sum contracts, delete "unit rates and prices" and replace with "lump sum price". 20. Provisional sums are monetary sums specified by the Employer in the Bill of Quantities, to be used at his discretion for nominated subcontractors and other specified purposes. 21. For lump sum contracts, delete "rates and prices" and replace with "Lump Sum". 22. The period is a realistic time, usually not less than 35 days nor more than 105, allowing for bid evaluation, clarifications, and the World Bank's "no objection" (where awards of Contract are subject to prior review). The time should be the same as that specified in the Invitation for Bids. 23. The value of the foreign currency factor should be based on, or comparable to, the expected annual increases in international prices. The value of the local currency factor should be based on the projected inflation in the Employer's country for the period in question. 24. The same as quoted in the Invitation for Bids (IFB). It should not exceed 3 percent of the estimated value of the Works. For reasons of confidentiality, a fixed sum should be specified, in preference to a percentage of the Bid price. 25. The receiving address should be an office that is staffed during normal working hours by personnel authorized to certify time and date of receipt and assure safe-keeping until Bid opening. A post office address is not satisfactory. The address must be the same as the receiving address described in the Invitation for Bids. 26. A copy of the minutes should be sent by the Employer to the World Bank together with the Bid evaluation report. 27. In lump sum contracts, delete "unit rates" and replace with "the prices in the Activity Schedule". 28. In lump sum contracts, delete from "as follows" to the end, and replace with the following: "as follows: where there is a discrepancy between the amounts in figures and in words, the amount in words will govern." 29. In lump sum contracts, delete "Bill of Quantities" and replace with "Activity Schedule". 30. Daywork is work carried out following instructions of the Project Manager and paid for on the basis of time spent by workers, and the use of materials and the Contractor's equipment, at the rates quoted in the Bid. For Daywork to be priced competitively for Bid evaluation purposes, the Employer must list tentative quantities for individual items to be costed against Daywork (e.g., a specific number of tractor driver staff-days, or a specific tonnage of Portland cement), to be multiplied by the bidders' quoted rates and included in the total Bid price. If the Bidding Documents include two or more lots, add Clause 29.5: "In the case of several lots, pursuant to Clause 29.2(d), the Employer will determine the application of discounts so as to minimize the combined cost of all the lots." 31. If the Bidding Documents include two or more lots, add Clause 29.5: "In the case of several lots, pursuant to Clause 29.2(d), the Employer will determine the application of discounts so as to minimize the combined cost of all the lots." 32. This Clause may be used only where the domestic preference is expressly permitted by the Loan Agreement. In all other cases, the whole of Clause 30 and Sub-Clause 4.7 may be omitted, as well as reference to domestic preference in the Bidding Data, the Invitation for Bids, and Qualification Information; in such cases, indicate "Clause 30 not applicable" in the Bidding Data. 33. Employers should not reject bids or annul bidding processes, except as permitted in the Procurement Guidelines. 34. A Bank Guarantee can be conditional or unconditional (on demand) (see forms in Section 8). An amount of 5 to 10 percent of the Contract Price is commonly specified for Performance Bank Guarantees. 35. A Performance Bond is an undertaking by a bonding or insurance company (surety) to complete the construction in the event of default by the Contractor, or to pay the amount of the Bond to the Employer. An amount of 30 percent of the Contract Price is commonly used internationally for this type of security (see form in Section 8). 36. This amount is normally 10 to 30 percent of the Contract Price. The amount should be adequate to minimize the needs of the Contractor to borrow for the Contract. This may be particularly important in terms of foreign currency. 37. The insertions should correspond to the information provided in the Invitation for Bids. 38. Delete if prequalification has been conducted. 39. Delete if prequalification has been conducted. 40. Price adjustment is mandatory when the expected completion time exceeds 18 months. |