Slide 6 Speaker Notes Section 21 of the PPA 2007 stipulates that each year a Procurement Planning Committee consist of the following shall be established: The Accounting Officer or his representative who shall chair the committee A Representative each of : The procurement unit of the procuring entity who shall be secretary The unit directly in requirement of the procurement The financial unit of the procuring entity The planning, research and statistics unit of the procuring entity Technical personnel of the procuring entity with expertise in subject matter for each particular procurement and The legal unit of the procuring entity Public Procurement Monitoring: A Facilitators' Manual 52
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Slide 6
Speaker Notes
Section 21 of the PPA 2007 stipulates that each year a Procurement Planning
Committee consist of the following shall be established:
The Accounting Officer or his representative who shall chair the committee
A Representative each of :
The procurement unit of the procuring entity who shall be secretary
The unit directly in requirement of the procurement
The financial unit of the procuring entity
The planning, research and statistics unit of the procuring entity
Technical personnel of the procuring entity with expertise in subject matter for
each particular procurement and
The legal unit of the procuring entity
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Slide 7
Speaker Notes
Procurement Planning Steps
Establish the project objective & choose a basic strategy for achieving the
objective
Determine what goods, works and services are to be procured
Break the project down into sub units or steps
Determine the performance standards for each sub unit - Determine agency
capacity to implement procurement- institutional, staffing, competence,
training (Make or Buy)
Decide how much time is required to complete each sub unit.
Slide 8
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Slide 7
Speaker Notes
Specific Procurement Notice (better known as Advertisement)
? A Specific Procurement Notice for each of the major procurement packages in
the procurement plan should also be issued either as a public Invitation for
Prequalification, or in the absence of pre-qualification, as an Invitation for
Tenders.
? It is recommended in practice that the invitation also be incorporated in the front
of the prequalification or tender documents as appropriate. SPNs should
provide adequate notification of specific contract opportunities or Invitation for
Tenders (IFT) by a procuring entity regardless of what procurement method is
used. The SPN should be issued in the following way:
- as an advertisement in at least two national dailies and the Procurement
Journal;
- by an announcement in the Government Official Gazette.
?
?
?
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Slide 8
Speaker Notes
Specific Procurement Notice (continued):
? A Specific Procurement Notice contains information concerning :
- the name of the procuring entity in full;
- the name or nature of the contract;
- items to be procured using specifications used in the industry;
- contact information for obtaining tendering documents name, office
address and room number;
- cost of the tendering documents (not more than cost of recovery of
printing and documentation);
- place date and time deadline for tender delivery;
- required tender security amount and form;
- the place, date and time of tender opening, and,
- the minimum qualifications that bidders must meet.
? An invitation for prequalification includes similar information including the
place and deadline for submission of the application to pre-qualify.
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Slide 9
Speaker Notes
Request for EOI (for Services)
A Request for Expression of Interest (EOI) should also be published in at least
two national dailies, any procurement websites or Federal Tenders Journal
(now circulated throughout Nigeria) or other electronic media.
Interested consultants should be requested to provide the minimum
information required to make a judgment on the firm's suitability for being
short-listed. Sufficient time (not less than 14 days) shall be provided for
responses before preparation of the short list.
Slide 10
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Speaker NotesPrequalification of Bidders:
Prequalification is common for large works, civil works, turnkey plants, Build
Operate & Transfer, some special goods and complex information technology
systems.
However, prequalification is not generally needed for vehicles, PC supply and
ordinary goods.
Where a procuring entity has made a decision with respect to the minimum
qualifications of suppliers, contractors or service providers by requesting
interested persons to submit applications to pre-qualify, it shall set out precise
criteria upon which it seeks to give consideration to the applications and in
reaching a decision as to which supplier, contractor or service provider qualifies,
shall apply only the criteria set out in the prequalification documents and no
more..
Prequalification mandatory for goods contract over N100m while for works
contract over N300m
Slide 11
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Speaker Notes
Prequalification of Bidders:
The prequalification documents shall include:
- instructions to prepare and submit prequalification applications;
- a summary of the main terms and conditions required for the procurement
contract to be entered into as a result of the procurement proceedings;
- any documentary evidence or other information that must be submitted by
suppliers, contractors or service providers to demonstrate their qualifications
e.g. list of equipment, personnel, financial capability;
Slide 12
Speaker Notes
Prequalification of Bidders
- the manner and place for the submission of applications to pre-qualify and
the deadline for the submission, expressed as a specific date and time which
allows sufficient time for suppliers, contractors or service providers to prepare
and submit their applications, taking into account the reasonable needs of the
procuring entity (say about 2 weeks); and,
- any other requirement that may be established by the procuring entity in
conformity with this Act and procurement regulations relating to the
preparation and submission of applications to pre-qualify and to the
prequalification proceedings.
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Slide 13
Speaker Notes
Prequalification of Bidders
- The procurement entity shall respond to any request by a supplier, contractor
or service provider for clarification of the prequalification documents if the
request is made at least ten days before the deadline for the submission of
applications to pre-qualify. The response by the procuring entity shall in any
event within a period of at most seven working days (transparency)
- The response to any request shall, without identifying the source of the
request, be communicated to other suppliers or contractors or service
providers provided with the prequalification documents by the procuring
entity (for fairness and equity).
- A procuring entity shall promptly notify each supplier, contractor or service
provider which submitted an application to pre-qualify of whether or not it
has been pre-qualified and shall make available to any member of the general
public upon request, the names of the suppliers, contractors or service providers
who have been pre-qualified (transparency).
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Slide 14
Speaker Notes
Prequalification of Bidders
? The procuring entity shall upon request communicate to suppliers,
contractors or service providers who have not been pre-qualified, the grounds
for disqualification but the procuring entity is not required to specify the
evidence or give the reasons for its findings.
? The procuring entity may require a supplier, contractor or service provider
who has been pre-qualified to demonstrate its qualifications again in
accordance with the same criteria used to pre-qualify the supplier, contractor or
service provider.
? The procuring entity shall disqualify any supplier, contractor or service
provider who fails to demonstrate its qualification again if requested to do so.
The procuring entity shall promptly notify each supplier, contractor or service
provider requested to demonstrate its qualifications again.
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Slide 15
Speaker Notes
Invitation to Bid Section 25 of the PPA2007:
• Invitations to bid may be either by way of NCB or ICB and the Bureau shall from
time to time set the monetary thresholds for which procurements shall fall under
either system.
• Every invitation to an Open Competitive Bid shall:
- In the case of goods and works under ICB, will be advertised in at least
two national newspapers, the relevant internationally recognized
newspapers, any official websites of the procuring entity and the Bureau
as well as the procurement journal not less than six weeks before the
deadline for submission of the bids for the goods and works;
- In the case of goods and works valued under NCB, the invitation for bids
shall be advertised on the notice board of the procuring entity, any official
websites of the procuring entity, at least two national newspapers and in
the procurement journal not less than six weeks before the deadline for
submission of the bids for the goods and works.
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Slide 16
Speaker NotesInvitation to Bid
Every advert of an invitation to an Open Competitive Bid shall include :- The name and address of the procuring entity ;- The nature, quantity, category and place of delivery of goods to be procured
or the nature, category, and location of the works;- A statement that submissions must be made only in the English;- The deadline for delivering or performing the procurement;- Information about the requirements to be met by contractors;- A statement of the application of domestic preferences if any;- The instructions for obtaining the documents containing the specifications
of the essential provisions of the procurement;- The place and deadline for the submission of the bids;- The place, date and time for the opening of the bids.If the procuring entity had previously conducted pre-qualifiers for the procurement in question, the tender documents shall be issued only to those suppliers and contractors who had pre-qualified.
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Slide 19
Speaker Notes
Rejection of Bids
A procuring entity may:
- Reject all bids at any time prior to the acceptance of a bid, without
incurring any liability to the bidders,
- Cancel the procurement proceedings in the public in teres t , wi thout
incurring any liability to the bidders.
Bidding documents should carry a provision for the rejection of all bids
received.
However, rejection of all bids shall be done only under exceptional
circumstances and can be justified when there is lack of effective competition; or
no substantially responsive bid received; inadequate competition; all bid prices
were unreasonably high and substantially above the Procuring Entity's budget
provision; bidding documents found to be defective; or the requirements of the
Procuring Entity has changed.
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Slide 20
Speaker Notes
Bid Validity and Modification and Withdrawal of Bids
The period of validity for a bid shall be the period specified in the tender
documents.
A procuring entity may request suppliers or contractors to extend the period of
validity for an additional specified period of time.
A supplier or contractor may refuse the request and the effectiveness of its bid
will terminate upon the expiry of the un-extended period of effectiveness.
A supplier or contractor may modify or withdraw its bid prior to the deadline
for the submission of bids. The modification or notice of withdrawal is effective
if it is received by the procurement entity before the deadline for the submission
of tenders.
Slide 21
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Speaker Notes
Bid opening: Commencement of Procurement Implementation
? All bids shall be submitted before or by the deadline or date specified in the
tender documents or any extension of the deadline for submission and the
procuring entity shall :
- Permit attendees to examine the envelopes in which the bids have been
submitted to check that they have not been tampered with;
- cause all the bids to be opened, in the presence of the bidders or their
representatives and any interested member of the public;
- ensure that the bid opening takes place immediately following the
deadline stipulated bids or any extension thereof;
- ensure that a register is taken of the names and addresses of all those
present and the organizations they represent which is recorded by the
Secretary of the tenders board;
Slide 22
Speaker Notes
Bid Opening (Continued):
- call-over to the hearing of all present, the name and address of each
bidder, the total amount of each bid, the bid currency and ensure that
these details, including the discounts offered, completion period,
submission of bid security, if applicable, are recorded by the Secretary of
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the Tenders Board or his delegate in the minutes of the bid opening and
counter-signed by the representatives of the contractors and the
Procuring Agency. Best practice also stipulates that a copy of the Bid Open
sheet shall be made available immediately to the contractors;
- Ensure that competing contractors counter-sign the mutually agreed
critical pages and the summary of each others Bills of the Tender to
prevent substitution of tenders.
Slide 23
Speaker NotesNo Comments
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5.0 Module IV: Prequalification of Contractors
5.1 Module Objectives
5.1.1 Rationale
The prequalification process is of advantage to contractors and procuring entity alike.
The assurance that competitors which lack the necessary qualifications will be
excluded from bidding thus encourages leading contractors to bid. The well-qualified
firms may also price their bids more competitively with the knowledge that they will
only be competing with other qualified bidders meeting realistic minimum
competence criteria.
Prequalification enables the procuring entity:
(a) to assess the interest generated by the project among qualified firms, and to
make any necessary adjustments in the procurement process in the event that
only a limited number of applications are received;
(b) to reduce the amount of work and time involved in evaluating bids from
unqualified contractors; and
(c) to reduce significantly, if not eliminate, problems associated with low prices
submitted by bidders of doubtful capability.
5.1.2 Objective
The objective of this module is to guide participants to review the provisions of the
Public Procurement Act 2007 as it affects the Pre-Qualification of Bidders for Goods,
Works and Consultancy Services; also to discuss practical work place challenges
confronting procurement officers and observations of BPP reviewing officers; and to
identify and recommend best practice to guarantee a transparent and ethical
contractor pre-qualification process that complies with the Law..
5.2 Module Programme
The module programme covers the following an introduction into prequalification,
what the Act says about prequalification, issues and challenges of prequalification
5.3 Module Reading
5.3.1 Essential reading
1) Public Procurement Act 2007
Procurement Procedures Manual for Public Procurement in Nigeria issued by the BPP
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5.4 Module Content
Slide 1
Speaker Notes
The presenter starts by introducing prequalification as the process relating to the
selection of competent contractors, prior to the issue of the invitations to bid.
Prequalification of contractors is recommended for large or complex works and,
exceptionally, for custom designed equipment and specialized services.
Prequalification is also desirable in other circumstances, for example, in sector projects
with a programmatic approach, and when a large number of contracts are let on a
“slice and package” basis.
Participants are to note that the qualification of a contractor is a separate process from
the bid evaluation procedure, which concentrates on the price and merits of the bid
itself.
Slide 2
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Speaker NotesThe speaker introduces the workshop objectives as folows
To review the provisions of the Public Procurement Act 2007 as it affects the Pre-
Qualification of Bidders for Goods, Works and Consultancy Services.
To discuss practical work place challenges confronting procurement officers
and observations of BPP reviewing officers.
To identify and recommend Best practice to guarantee a transparent and ethical
Contractor pre-qualification process that complies with the Law..
Slide 3
Speaker Notes
The speaker presents the BPP's ubiquitous nine steps of procurement process which
is a step by step sequence of procurement activities:
Efficient procurement Plan driven by Needs Assessment
Appropriation
Advertisements
Transparent Pre Qualification
Bid Submission
Bid Opening
Bid Evaluation Technical & Financial
Tender Board/FEC Approval
Contract Award/Execution.
Public Procurement Monitoring: A Facilitators' Manual
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Slide 4
Speaker Notes
The speaker explains the provisions of PPA 2007 Part IV Sect.16 (6)
All bidders in addition to requirements contained in any solicitation documents
shall:
Possess the necessary :
professional and technical qualifications to carry out particular procurements;
Financial capability;
Equipment and other relevant infrastructure;
Shall have adequate personnel to perform the obligations of the procurement
contracts;
Possess the legal capacity to enter into the procurement contract
Not be in receivership, the subject of any form of insolvency or bankruptcy
proceedings or the subject of any form of winding up petition or proceedings.
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Slide 5
Speaker Notes
The speaker continues to explain provisions of PPA 2007 Part IV Sect.16 (6)
All bidders in addition to requirements contained in any solicitation documents
shall:
o Have fulfilled all its obligations to pay taxes, pensions and social security
contributions
o Not have any director who has been convicted in any country for any criminal
offence relating to fraud or financial impropriety or criminal misrepresentation
or falsification of facts relating to any matter
o Accompany every bid with an affidavit disclosing whether or not any officer of
the relevant committees of the procurement entity or Bureau is a former or
present director, shareholder or has any pecuniary interest in the bidder and
confirm that all information presented in its bid are true and correct in all
particulars.
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Slide 6
Speaker Notes
The speaker explains the provisions of PPA 2007 Part IV Sect.16 (7) and (8)
Part IV Sect 16(7)
The procuring entity may require a bidder to provide documentary evidence or other
information it considers necessary as proof that the bidder is qualified in accordance
with the Act and the solicitation documents and for this purpose any such
requirements shall apply equally to all bidders
Sect 16(8)
Whenever it is established by a procuring entity or the Bureau that any or a
combination of the situations set out exist, a bidder may have its bid or tender excluded
from any particular procurement proceeding (these situations include promise of gift
or bribe, failure to perform on a contract within last three years, receivership,
insolvency crime, etc)
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Slide 7
Speaker Notes
The speaker explains the provisions of PPA 2007 Part IV Sect.16 (9) and (15)
Part IV Sect 16 (9)
In such cases the procuring entity shall inform the Bureau and the person referred to in
sub sect 8 a-g in writing that the bid or tender in question has been excluded and the
grounds for the exclusion and to keep a record of same in the file pertaining to the
procurement proceeding in question
Sect 16 (15)
The criteria stipulated as the basis upon which suppliers or contractors would be
evaluated shall not be changed in the course of any procurement proceeding.
Slide 8
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Speaker Notes
The speaker explains the provisions of PPA 2007 Part IV Sect.16 (19), (21) and (22)
Sect 16(19) - Pursuant to subsection (17) of this section, the Bureau may either direct
that all the procurement proceedings be entirely cancelled or that the procuring entity
conduct a re-tender
Sect16 (21) - The accounting officer of a procuring entity and any officer to whom
responsibility is delegated are responsible and accountable for any actions taken or
omitted to be taken either in compliance with or in contravention of the Act
Sect16(22) - The accounting officer of a procuring entity has the responsibility to ensure
that the provisions of the Act and regulations laid down by the Bureau are complied
with.
Slide 10
Speaker Notes
The speaker explains the provisions of PPA 2007 Part V Sect.23 (1)
Where a procuring Entity has made a decision with respect to the minimum
qualifications of suppliers, contractors or service providers by requesting interested
persons to submit applications to pre qualify, it shall set out precise criteria upon
which it seeks to give consideration to the applications and in reaching a decision as to
which supplier, contractor or service provider qualifies, shall apply only the criteria
set out in the prequalification documents and no more.
In simple terms, the PE is to set out the criteria for prequalification before invitation
and only those criteria and no more can be used to evaluate and pre-qualify
contractors
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Slide 11
Speaker NotesThe speaker explains the provisions of PPA 2007 Part V Sect.23 (2)
Procuring entities shall supply a set of prequalification documents to each
supplier, contractor or consultant that request them and the price that a procuring
entity may charge for the prequalification documents. shall reflect only the cost of
printing and provision to suppliers or contractors and consultants.
Outrageously large tender fees are not permitted tender fees should be as much as
to cover administrative/printing cost of providing the tender documents to
bidders
Slide 12
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Speaker NotesThe speaker explains the provisions of PPA 2007 Part V Sect.23 (3)
The pre qualification document shall include:
Instructions to prepare and submit prequalification application
A summary of the main terms and conditions required for the procurement
contract to be entered into as a result of the procurement proceedings
Any documentary evidence or other information that must be submitted by
suppliers, contractors or consultants to demonstrate their qualifications
The manner and place for the submission of applications to prequalify and
the deadline for submission, expressed as a specific date and time which
allows sufficient time for suppliers, contractors or consultants to prepare and
submit their applications, taking into account the reasonable need of the
procuring entity
Any other requirement that may be established by the procuring entity in
conformity with this Act and procurement regulations relating to the
preparation and submission of applications to prequalify and to the
prequalification proceedings
Slide 13
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Speaker NotesThe speaker explains the provisions of PPA 2007 Part V Sect.23 (4)
The procurement entity shall respond to any request by a supplier, contractor or
consultant for clarification of the prequalification documents if the request is
made at least ten days before the deadline for the submission of applications
to pre-qualify
Slide 14
Speaker NotesThe speaker explains the provisions of PPA 2007 Part V Sect.23 (5) and (6)
Sect.23(5)
The response by the procuring entity shall be given within a reasonable time and in
any event within a period of at most seven working days so as to enable the supplier,
contractor or consultant to make a timely submission of its application to pre qualify.
Sect.23(6)
The response to any request that might reasonably be expected to be of interest to
other supplier, contractor or consultant shall, without identifying the source of the
request, be communicated to other suppliers or contractors or consultants provided
with the prequalification documents by the procuring entity..
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Slide 15
Speaker NotesThe speaker explains the provisions of PPA 2007 Part V Sect.23 (7) and (8)
Sect.23(7)
A procuring entity shall promptly notify each supplier, contractor or consultant which
submitted an application to pre-qualify of whether or not it has been pre-qualified and
shall make available to any member of the general public upon request, the names of
the suppliers, contractors or consultants who have been pre-qualified.
Sect.23(8)
Suppliers, contractors or service providers who have been pre-qualified may
participate further in the procurement proceedings.
Slide 16
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Speaker NotesThe speaker explains the provisions of PPA 2007 Part V Sect.23 (9) and (10)
Sect. 23(9)
The procuring entity shall upon request communicate to suppliers, contractors
or service providers who have not been pre-qualified, the grounds for
disqualification but the procuring entity is not required to specify the evidence
or give the reasons for its findings.
Sect. 23(10)
The procuring entity may require a supplier, contractor or service provider who
has been pre-qualified to demonstrate its qualifications again in accordance with
the same criteria used to pre-qualify the supplier, contractor or consultant (i.e.
POST QUALIFICATION)
Slide 17
Speaker Notes
The speaker explains the provisions of PPA 2007 Part V Sect.23 (11) and (12)
Sect.23(11)
The procuring entity shall promptly notify each supplier, contractor or service
provider requested to demonstrate its qualifications again whether or not the
supplier, contractor or consultant has done so to the satisfaction of the procuring
entity.
Sect.23(12)
The procuring entity shall disqualify any supplier, contractor or service provider who fails to demonstrate its qualification again if requested to do so.
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Slide 18
Speaker NotesThe speaker explains the provisions of PPA 2007 Part VIII Sect.44
In the case of consultancy services, pre-qualification is done trough the Express of
Interest procedure as summarised in Section 44 of the Act.
Slide 19
Speaker NotesThe BPP in line with its mandate has issued the following threshold for
prequalification (The speaker will show a copy of BPP's Approved Revised Threshold
for Service-Wide Application and refer to the appropriate table) :
Only Projects in excess of N300m for Works and N100m for Goods & Services qualify
for Pre-Qualification.
In other words MDAs can go straight to invite technical and financial bids to be
submitted at the same time in two separate envelopes clearly marked.
Technical Bids will be opened first and only technically qualified bidders will have their financial bids opened at a later date.
Public Procurement Monitoring: A Facilitators' Manual