Generic Documents for the Design, Build, Operate Contract for a Solid Waste Facility
Dec 13, 2015
Agenda
1. Overview
2. Review of Documents– Pre-Qualification Documents– Bidding Documents– DBO Contract
Overview
Procurement Documents
• Pre-Qualification Documents
• Bidding Documents– Annex A
• Bid Form• Bidder’s Price Form and Price Schedules• Bid Security Form• Performance Security Form• Bank Guarantee Form – Advance Payment• Format of Curriculum Vitae• Form for Clarification Questions
– Annex B: Draft Contract
Overview
Contract Documents
• Form of Contract• General Conditions to the Contract• Appendices to the General Conditions:
1. Special Conditions of Contract2. Terms and Procedures of Payment 3. Technical Specifications consisting of,
Appendix “3A” – Design-Build Services Appendix “3B” – Operations Services Appendix “3C” – Technical Standards
Overview
Contract Documents (continued)
4. Site Appendix 5. Service Area Appendix6. Liquidated Damages Appendix7. Operator’s Expertise Appendix8. Operator’s Bid
Pre-Qualification Documents
Sources
• SDB Works – Prequalification
• as amended for management contracts, leases etc.
• similar changes as those made in management contracts, leases etc.
• GITA and PITA approach used
Pre-Qualification Documents
Key Issues
• evaluation of applications based on solid waste facility design, build and operations experience, financial position, personnel capabilities and litigation history
• subcontractors experience may be considered
Pre-Qualification Documents
Pre-Qualification Criteria
• Applicants must demonstrate general experience designing, building, operating and maintaining a solid waste facility
– for a certain length of time– with a minimum average annual turnover
• Applicants must demonstrate experience in a certain number and type of solid waste disposal projects or assignments
Pre-Qualification Documents
Pre-Qualification Criteria (continued)
• Applicants must demonstrate financial strength requirements
– adequate cash flow for the contract– adequate cash flow for works in progress and
future contract commitments
• Applicants must provide information with respect to – management structure– candidates for key positions
Pre-Qualification Documents
Pre-Qualification Criteria (continued)
• Applicants must provide information about legal matters, including:
– litigation or arbitration in the past 5 years– labour relations issues– criminal or environmental prosecutions
Bidding Documents
Key Issues - Bids
• Bidders submit Technical Section consisting of – Design-Build Workplan – Operations Workplan– Staffing Plan
• Bidders submit Financial Section consisting of Price Schedules
• Technical and Financial Sections submitted in same envelope
Bidding Documents
Key Issues - Bid Evaluation
• preliminary examination of bids
• technical aspects of each Bid evaluated with respect to the following factors:
– the Design-Build Workplan– the Operations Workplan– the Staffing Plan
• price evaluation to ensure substantial responsiveness
Bidding Documents
Key Issues - Award
• award is to the Bidder whose Bid has been determined to be substantially responsive and has the lowest evaluated Bid Price
Design, Build, Operate Contract
Sources
• FIDIC
• existing standard World Bank bidding documents
• existing management and operating contracts
Design, Build, Operate Contract
General Conditions – Key Issues
• Contract Term, Timing and Completion
• Obligations of the Operator and the Owner (quality, governing law, site access etc.)
• Contract Price and Payment (incentives, liquidated damages, securities,
taxes and duties)
• Intellectual Property (copyright in design-build)
Design, Build, Operate Contract
General Conditions - Key Issues
• Contract Administration and Supervision (Design-Build supervision, Operations
supervision, Engineer’s duties etc.)
• Representatives, Staff and Subcontracting (Owner’s rep, Operator’s rep,
personnel, existing staff)
• Liability and Risk Distribution (defects, limitation of liability,
indemnification, insurance, force majeure etc.)
Design, Build, Operate Contract
General Conditions - Key Issues
• Change in Contract Elements (change to Design-Build Services,
change order processes)
• Suspension and Termination (rules with respect to both suspension of
work and termination of the Contract)
Design, Build, Operate Contract
Key Appendices – Technical Specifications
• Design-Build Appendix (setting out services to be provided in
the Design- Build period)
• Operations Services Appendix (outlining all operations responsibilities)
• Technical Standards Appendix (outlining all technical standards -most
are project specific)
• Operation of existing facilities, if any
Design, Build, Operate Contract
Key Appendices - Contract Price Adjustment
• to be drafted on a project-by-project basis
• long term provisions for the adjustment of price for Operations Services over time
Design, Build, Operate Contract
Key Appendices – Incentive Compensation
• to be drafted on a project-by-project basis
• intended to be used to encourage operations achievements
Design, Build, Operate Contract
Key Appendices – Existing Staff
• to be drafted on a project-by-project basis
• intended to be used to deal with circumstances where there are existing staff
• this will be dependent on the local law
Design, Build, Operate Contract
Key Appendices – Liquidated Damages
• sets out the failures of the Operator to meet the Technical Standards that will give rise to Liquidated Damages
• establishes the amounts of Liquidated Damages that will apply
Design, Build, Operate Contract
Key Appendices – Operator’s Expertise
• Operator must have all expertise required to carry out the Services
• describes the areas of expertise the Operator must have