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CPAR - Annex B
Annex B - Questionnaire on Public Procurement System

 

Section A - Legal Framework

  GENERAL FEATURES

1. Identify predominant legal system (i.e. Common/Civil Law; Socialist; other)

2. Identify form of government (i.e. federal or centralized)

3.      Does the Constitution (if there is one) contain any provision directly bearing on public sector procurement? (If so, describe)

4.      Is the country a signatory (or planning to become one) to the Agreement on Government Procurement of the World Trade Organization?

5.      Does the basic contract law contain any provision directly bearing on public sector procurement? (If so, describe)

6.      Is there a separate body of law which regulates public sector procurement, or is it governed by regulations issued under an organic finance act?

7.      Is the system clear, comprehensive and consistent? Does it cover all essential aspects with no unduly complicated, unnecessary, conflicting or outdated regulations? Are rules found in various distinct sources or within a well coordinated legal framework?

8.      Is the hierarchy of the sources of procurement rules well established?

9.      What is the scope of coverage for the procurement legal framework? Does it cover sub-national government? Does it include coverage of all government procurement including security and military procurement?

10.  Are there separate procurement rules established for parastatals? Describe.

11.  Is the procurement function decentralized? If so, describe basic structure, name the main decentralized procuring entities and indicate their role, rights, and responsibilities.

12.  Is there an entity(ies) with oversight responsibilities for procurement functions throughout public administration (e.g., with primary regulatory powers, responsible for harmonization of rules and monitoring of compliance)? If so, identify and describe responsibilities and structure.

13.  Is there a Central Tender Board or a similar institution? What are its duties and responsibilities?

14.  Does the system allow/facilitate the introduction of new and innovative techniques and contracting practices without compromising basic principles?

15.  Are there rules/procedures regarding bidder suspension and debarment?

16.  Is the country a member of regional trade/customs agreements? (If so, specify)

17. Are there primary/secondary boycotts? (Specify)

18. Are there provisions regarding preferences for particular categories of suppliers of goods, works and services? (Specify)

19. Are there arbitration rules applicable to procurement contracts? Are they consistent with international rules such as those embodied in the UNCITRAL Model Law on Arbitration? (Highlight major differences)

20. Are there laws or regulations governing policies and procedures for awarding concessions/contracts for private sector provision/operation of power, water or other infrastructure facilities? (BOO, BOT, etc.) Do any general conditions of contract apply as a matter of law or regulation?

BASIS OF TRANSPARENCY

1.      Is there a legal or regulatory requirement for public disclosure of procurement legal texts?

2.      Are there mandatory requirements for maintaining written records of procurement? To what extent are they available to the general public?

3.      Are requirements for advertisement of contracting opportunities adequate? Does the country have a national gazette (or other similar publication) published in a timely fashion? Is it easily available to the general public?

4.      Are requirements regarding public bid opening, if any, appropriate?

5.      Are negotiations after bid opening or award selection allowed? Do the rules on negotiated procurement, if any, provide the basis for a fair and transparent process?

6.      Are conditions for use of various procurement methods clearly established? Is there an explicit requirement that open competitive bidding is the preferred or default method?

7.      Is there a requirement for public notice of contract awards?

8.      Are there clear and appropriate requirements for bid and contract securities?

9.      Are qualification requirements for bidders, if any, fair and appropriate for the purpose of the contract?

10.  Do requirements for bid examination and evaluation provide the basis for a rational and fair process?

12.  Are summaries of information about public procurement published (e.g. number of bids received, number of contracts awarded, names of successful bidders)? If so, describe scope and frequency.

13. Does government hold regular meetings with the business community to discuss public procurement issues?

14. Is there a conflict of interest policy in effect? (If so, describe its essential features).

15. Are there laws on bribery of government officials and are they enforced? Do government bidding documents and contracts contain anti-bribery and anti-corruption conditions?

  BASIS OF ACCOUNTABILITY

1.      Are government employees expected to follow a published code of ethics? If so, describe its basic features.

2.      Is there an accessible and secure process for bidders to report bribes by others and solicitation/extortion of bribes by government officials?

3.      Do bidders have adequate access to administrative or judicial review/appeal?

4.      Are there measures/initiatives to curb/control corruption, e.g. anti-corruption statutes and/or bodies, whistle-blower statutes, comprehensive reforms of the civil service/judiciary, regional initiatives, provisions in the criminal law, anti-bribery provisions, etc.? (If so, describe)

Section B - Trade/Customs Practices

1.      Are foreign firms engaged in trade with the country required to use a local agent?

2.      Is there evidence of any trade malpractice affecting public sector procurement?

3.      Is inspection conducted according to generally established procedures? Are there indications that the inspection is not effective?

4.      Do preshipment/post-shipment inspection, if any, unduly increase the procurement lead time?

5.      Is counter-trade used? Barter agreements? For what percentage of the country's total trade?

6.      Are the ICC’s INCOTERMS generally understood and commonly used in the Country? Are other trade terms used?

7.      Are licensing and customs procedures generally transparent and efficient?

8.      Are “facilitation” payments normally necessary to clear goods through customs, obtain work permits for expatriate labor, process monthly payment certificates/invoices?

9.      Are staff familiar with shipping and other trade documents? With documentary credits?

Section C - Financial/Budgetary Framework

1.      Are banks capable of issuing Letters of Credit?

2.      Are banks generally creditworthy?

3.      Can bid, performance and advance payment securities be obtained easily? What formats are permitted? Bank guarantees? Bonds? Other? Provide details on cost, if available.

4.      Are the requirements for issuance of bid, performance, and other securities to suppliers/contractors reasonable?

5.      Do suppliers/contractors have reasonable access to credit?

6.      Do implementing agencies obtain budgetary authorizations for contract payments falling due beyond the current financial year?

7.      Are major projects or programs clearly identified in government budget estimates?

8.      What procedures are followed to ensure the procuring entity obtains budget authorization prior to inviting bids?

9.      Do procuring entities reliably receive the monies authorized? Or is the budget subject to revision during the year by a restrictive cash release system?

Section D - Public Sector Procurement of Goods/Works

GENERAL RISK ASSESSMENT

1.      Is staff working in public sector procurement area held in high regard?

2.      Are pay levels for staff working on procurement comparable to that for other public and private sector technical specialists?
3.      Does a code of ethics exist that staff working in procurement are expected to follow?
4.      Are the authorities relating to procurement clearly delegated to the entities carrying out the process? Are the applicable procedures clearly defined?
5.      Are procurement decisions overridden by higher governmental agencies? If so, by whom? To what degree is the procurement decision-making process independent and based on transparent criteria?
6.      Does the highest level of government encourage/support/enforce compliance with existing procurement regulations? Are violations investigated and procurement/other responsible officials held accountable?

7.      Are there indications suggesting price-fixing in open bidding?

  ORGANIZATION

1.      Is appropriate information on procurement adequately disseminated (i.e. procurement staff are aware of updated rules and thresholds, and other issues relevant to their assigned responsibilities)?

2.      Are the procurement and supply management functions clearly distinguished?

3.      Is contracting authority reasonably delegated (i.e. there are no unnecessary levels of approvals or cumbersome procedures)?

4.      Are the thresholds for contracting authorities regularly updated?

5.      Do procuring entities have internal quality and control mechanisms? Are they regularly audited?

6.      Are procurement staff experienced in international procurement?

7.      Do adequate formal and on-the-job training programs exist for entry- and higher-level staff that contribute to proper professional career development? Does knowledge of procurement lead to career advancement?

8.      Are there additional training resources in the country that are currently utilized or that could be utilized to complement Government/donor-administered programs (e.g. universities and private institutions)?

9.      Did previous training programs (if any) lead to an obvious improvement in the quality/productivity of procurement work?

10.  Do procurement staff have adequate project/contract management capabilities?

11.  Are procurement agents used? Under what circumstances? How are they selected? Describe normal basis for compensation and contract duration
12.  Is procurement monitoring and administration computerized? How adequately do procurement entities track the key steps in the procurement process and collect appropriate project-related cost and schedule information?

PROCUREMENT PLANNING

1.      Are project implementation units adequately staffed with trained procurement, planning, scheduling, expediting and cost estimating personnel?
2.      Is overall planning for complex goods, works and other contracts done in sufficient detail to produce realistic project definition, achievable completion schedules, and accurate cost estimates?
3.      Is the early technical and financial planning well coordinated so that projects are fully funded when work needs to begin, based on accurate cost estimates?
4.      Are appropriate methodologies used to plan multiple inter-related procurement activities on large projects (e.g. the critical path method)?

5. Are project components appropriately packaged for procurement purposes?

6. Are completion schedules generally met for goods, works and consultant services contracts? If not, what is the major cause for slippage? Is sufficient time generally allowed for external reviews/clearances?

7. Do procurement units regularly conduct market surveys to update their knowledge of prevailing prices for goods and works?
8. Are procedures and methodologies for planning procurement of recurrent items (i.e. inventory control, forecasting of future requirements, classification, coding, accounting/financial management, spare parts management, and delivery systems) adequate?

DOCUMENT PREPARATION

1.      Do standard documents exist for goods, works and other types of contract? List. Are other international contract formats used? If so, identify.
2.      Are these documents, if any, readily adaptable to specific contract situations (i.e. by modifications made through a Bid Data Sheet, Special Conditions of Contract or similar)?
3.      Are there separate documents for international and national competitive bidding not financed by the Bank?
4.      Do Instructions to Bidders (ITBs) contain all information necessary to prepare responsive bids and clearly understand evaluation criteria and their method of application?
5.      Do they contain other necessary information, such as eligibility requirements, basis of bid, language and currency of bids, common currency for purposes of evaluation, source and date of the exchange rate, etc.? Are sample forms and other appropriate sections of the documents provided?
6.      Are bidders required to provide bid security in an appropriate amount as a condition of responsiveness of their bid?
7.      Is pre- or post-qualification provided for?
8.      Are qualification criteria appropriate and clearly described?
9.      Are conditions of contract equitable? Do they provide adequate coverage for most important commercial and legal issues (for the method of procurement, size, nature and type of contract used) and provide adequate protection to the Government, without putting undue risk on bidders?
10.  Are standard purchase orders used for shopping?

PREQUALIFICATION

1.      Is prequalification carried out when appropriate? What types of contracts is it used for? Works? Goods? Other?

2.      Is the prequalification process fair and transparent? Are decisions made promptly? Are foreign firms allowed to apply?

3.      Are standard prequalification documents used? Do they clearly and completely describe all the prerequisites for submitting responsive applications for prequalification? Is financial information routinely requested and critically evaluated to assess an applicant’s financial capacity to perform?

4.      Do procuring entities verify prior to contract award if a successful bidder continues to meet prequalification requirements?

5.      Are suppliers required to have a local agent in order to qualify to bid for goods or services?

6.      Do procuring entities maintain updated lists of qualified suppliers and contractors and updated market information on commonly procured goods, including spares and consumables? Is supplier and contractor performance routinely evaluated and are any standing lists of prequalified suppliers and contractors updated and modified based on this information. Can newcomers readily apply and be qualified?
7.   Is the procedure for registration of domestic contractors fair, providing timely access to the bidding process to all potentially qualified bidders? Are bidders should be allowed to register by mail and, if the conditions in the country allow, through the internet?

8. Is registration permanently opened to bidders for registration or update, is there a deadline imposed in relation to a specific bidding process? Is the time taken for registration reasonable?

ADVERTISEMENT

1.      Are contracts to be awarded by competitive bidding publicly advertised?

2.      Is sufficient time allowed to obtain documents and prepare bids?

3.      Do the requirements specify use of publications or websites that are readily available to the public and are known to the private sector as sources of information on public procurement opportunities?

COMMUNICATIONS BETWEEN

BIDDERS AND THE PROCURING AGENCY

1.      Are requests for clarifications answered promptly and completely in a written form?

2.      Are clarifications, minutes of the pre-bid conference, if any, and modifications of the documents promptly communicated to all prospective bidders?

3.      Are bidders afforded sufficient time to revise their bids following a modification of the documents?

4.      Do procuring entities maintain accurate records of all communications with the bidders (before and after the deadline for submission)?

RECEIPT OF BIDS AND OPENING

1.      Are bids received prior to the deadline securely stored?

2.      Are public bid openings conducted?

3.      If so, are they conducted at a specified place closely following the deadline for submission?

4.      What information is read out at the opening ceremony? Are minutes kept?

5.    Do bid opening procedures differ for goods, works or other types of contracts? If so, how?

BID EXAMINATION AND EVALUATION

1.      Are evaluations conducted by qualified evaluating committees?

2.      Are evaluating committees appointed ad hoc for each evaluation?

3.      Is responsiveness determined on the basis of the documentary requirements described in the documents and according to established practice?

4.      Are bid evaluations carried out thoroughly and on the basis of the criteria specified in the documents?

5.      Is the successful bidder’s qualification to perform the contract determined solely on the basis of the criteria stated in the documents? (See above) If not, what other criteria are considered?

6.      Are evaluations normally completed within the original bid validity period?

7.      Are bid evaluation reports prepared containing all essential information (i.e. a clear and complete description of the evaluation process, including the reasons for rejecting any bid as non-responsive, how the stated evaluation criteria were applied, and how the successful bidder’s qualifications were verified)?

8.      Describe any significant differences between goods and works procurement relating to the above.

CONTRACT AWARD AND EFFECTIVENESS

1.      Are contracts required to be awarded to the lowest evaluated responsive bidder who has been determined to be qualified to perform the contract satisfactorily?

2.      Are negotiations conducted with bidders, before or after selection?

3.      Are additional Government approvals required before contracts can be made effective?

4.      Is performance security required in a reasonable amount and in a reasonable format?

5.    Describe any differences between goods and works relating to the above.

CONTRACT ADMINISTRATION

1.      Are there manual or computerized procurement and/or contract monitoring systems?

2.      Are suppliers and contractors generally paid on time? What is the normal time lapse from invoice submission to final payment?

3.      Are there appropriate procedures to monitor delivery of goods and services to verify quantity, quality and timeliness?

4.      Are contract changes or variations handled promptly in accordance with the contract conditions and established practice (i.e. change/variation orders are given and/or confirmed in writing, constructive change orders are avoided, unit rates in the contract are honored but the supplier or contractor is allowed to agree to any new unit rates introduced and the completion schedule for each change or variation, etc.)?

5.      Do procuring entities normally make a good faith attempt to resolve disagreements through informal negotiations?

6.      If this fails, are the resulting disputes handled in accordance with the contract conditions?

7.      Are supplier and contractor claims handled fairly based on a clear recognition of both parties’ obligations under the contract?

8.      Are contract managers/administrators skilled in resolving problems in a timely manner and dealing with unforeseen circumstances arising during the life of the contract? Do they adequately document all actions of contractual import taken by the purchase/employer during implementation?

9.      Are contractual remedies utilized only when appropriate and in accordance with the contract conditions?

10.  Are contracts generally completed on schedule and within the originally approved contract price? Or are cost and time overruns frequent? If so, in which sectors and for which particular kinds of contracts? Are fair final acceptance procedures used and certificates issued in a timely fashion?

11.  Are contracts generally administered in a fair and equitable manner (e.g. the purchaser/employer grants extensions of time when delays are attributable to its untimely action, fair compensation is provided to offset additional costs caused by its mistakes, etc.)

12.  Are under-inspection, over-inspection and/or improper rejection of goods, materials or methods of carrying out the works a common problem?

13.  Are disruptions of the supplier’s or contractor’s orderly performance common?

14.  Can any of the improper contract administrative practices identified above, be attributable to a problem identified in the local procurement environment? Specify

15.  Are procurement evaluations/audits conducted? If so, describe scope, frequency, who carries them out, etc.

RECORD KEEPING

1.      For contracts to be awarded on the basis of competitive bidding, does the procuring entity maintain a complete record of the process? This would include e.g. copies of all public advertisements, prequalification documents (if used), the prequalification evaluation report documenting any decisions not to prequalify certain potential bidders, the bidding documents and any addenda, a record of any pre-bid meetings, the bid opening minutes, the final bid evaluation report (including a detailed record of the reasons used to accept or reject each bid, copies of bids, appeals against procedures or award recommendations, a signed copy of the final contract and any performance and advance payment securities issued, etc.

2.      Are adequate contract administration records maintained? (These would include contractual notices issued by the supplier, contractor, purchaser or employer; a detailed record of all change or variation orders issued affecting the scope, quantities, timing or price of the contract; records of invoices and payments; certificates of inspection, acceptance and completion; records of claims and disputes and their outcome; etc.)

3.      For small contracts or purchase orders for goods procured using shopping procedures, is a database maintained showing the current market price for commonly needed items?

4.      Are periodic reports prepared on overall procurement activities? By and for whom?

 

Section E - Public Sector Selection of Consultants

1.      Are procuring entities capable of carrying out a professional selection process for consultant services? Do they administer consultant contracts effectively?

2.      Is the winning consultant firm normally chosen by comparing competitive proposals submitted by a list of qualified firms? Where do implementing agencies obtain the information necessary to develop lists? Specify what other methods are used and when they are used.

3.      Do requests for proposals clearly describe the selection process and evaluation criteria?

4.      Do the Terms of Reference describe the requirements of the assignment clearly and completely, including background, scope and objectives, deliverables, time frame, anticipated staff-time, and government contributions?

5.      Is selection based only on technical considerations or also on price?

6.      Are technical criteria detailed and appropriate and their relative weights reasonable?

7.      If price is also a selection factor, are technical evaluations completed before opening and consideration of price proposals? Are the relative weights chosen for each factor appropriate?

8.      Are there standard conditions of contract? Are they fair and equitable to the consultant? Do they adequately protect the interests of the client?

9.      What form of compensation is used? Unit rates? Lump sum based on milestones? Other?

10.  Are consultants required to submit proposal, performance and/or advance payment securities?

11.  Is there a conflict of interest policy provision included in the conditions of contract? (If so, describe)

12.  Are evaluations conducted by committees with appropriate expertise?

13.  Are general criteria broken down into appropriate detailed criteria agreed by the evaluating committee before conducting the evaluation?

14.  Are all criteria applied consistently, fairly and impartially by the evaluators? Are the individual score sheets kept as part of the procurement record?

15.  Are evaluations conducted individually by each member of the committee and the results averaged?

16.  Are new factors or weights added after the issuance of the request for proposals which are considered during the evaluation?

17.  Are evaluation reports prepared containing essential details of the process, results, and matters to be taken up during contract negotiations?

18.  Are evaluations normally completed within the time originally requested for the validity of proposals?

Section F - Procurement Performance

STATISTICS

1.      What are the approximate annual values of public procurement for goods, works, and consultant services, respectively? If possible, distinguish between procurement for projects and ongoing programs.

2.      What are the approximate percentages of goods, works, and consultant services financed by external donors?

3.      What percentage of public procurement follows competitive bidding procedures? Other methods?

4.      What percentage of competitively bid procurement is donor financed?

GENERAL EXPERIENCE

1.      Are government organizations generally perceived by suppliers/contractors/consultants/the public as fair and efficient in their procurement practices?

2.      Which of the following factors are considered to be problems by persons familiar with public procurement in the country?

 

 

Yes

 

No

Inappropriate or outdated laws and regulations

 

 

Poor compliance with and enforcement of existing laws

 

 

Poor information about procurement needs

 

 

Shortage of experienced professional staff

 

 

Poor training of procurement staff

 

 

Low pay for procurement staff

 

 

Poor procurement training

 

 

Weak procurement planning

 

 

Poor procurement methods and procedures

 

 

Lack of good standard procurement documents

 

 

Poor technical specifications (Goods only? Works?)

 

 

Cumbersome contract approval procedures

 

 

Lack of clear delegation of contracting authority

 

 

Interference by higher level officials

 

 

Inadequate appeals mechanism

 

 

Lack of anti-corruption measures and enforcement

 

 

  EXPERIENCE WITH WORLD BANK-ASSISTED PROJECTS

1.      How many Bank projects have been completed in the country? Are now underway? In which sectors?

2.      Which organizations have been responsible for procurement on these projects?

3.      What thresholds for ICB, IS, NS, and prior review for goods, works, and consultant services are currently in effect for ongoing projects? Are they the same for all projects? How long have they been in effect?

4.      Do project audits/completion reports/supervision reports indicate significant procurement problems? Have any cases of misprocurement occurred? Describe.

5.      Have procurement issues caused serious implementation delays, cost overruns, disbursement delays? Describe.

6.      Does the Bank receive a large number of complaints about procurement procedures, selection decisions in the country?

7.      Are contracts generally awarded within the planned, usual time frame that would be required for similar operations by other experienced and efficient organizations?

8.      Are there serious problems or conflicts between national and/or local practices and World Bank guidelines which should be addressed on an interim basis pending implementation of recommended long-term action plans?

Section G - Private Sector Procurement

1.      Is there a reasonably well-developed private sector which freely trades goods and procures works and other services?

2.      Does the private sector compete actively in opportunities advertised by the government? Is this evidenced by number of bids/proposals received when open competition is sought?

3.      Do private sector companies feel comfortable in exercising their right to complain or seek remedies under the public procurement system (to the extent the system provides for this right)?

4.      What is the performance record of private sector companies on government contracts? (Is there evidence of deliberate underpricing, poor performance on government contracts or excessive price increases after contract award during performance)?

5.      Is there evidence that private sector companies are aware of requirements and have the capacity to submit acceptable bids/proposals (i.e. understand the system)? Are many bids/proposals rejected for procedural reasons?

6.      Has there been any experience with private sector contracts for the provision, operation, maintenance of infrastructure for various public services (BOO/BOT/BOOT/etc.)? Describe.

7.      Do private sector companies have access to commercial loans at a reasonable interest rate?

8.      Are bonds commonly used? Is so, is there a regulatory authority overseeing the activities of bonding companies? Is there a mechanism to suspend companies that have not honored their obligations to pay or execute bonds? Is there a satisfactory track record of calling of bonds?

SECTION H - EMERGING AREAS OF INTEREST

1. Is military expenditure covered by the public procurement systems laws and regulations?  Briefly describe coverage and exceptions.

2. Does the public procurement system and accompanying control environment (including the financial accountability system) control the flow of funds so as to ensure that funds budgeted for valid expenditures are not diverted to finance illicit activities (e.g. money laundering, terrorism)?

3. Does the country have policies aimed at promoting environmentally and socially responsible procurement?  Briefly describe coverage or initiatives that will contribute to such procurement practices.



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