AfDB New Procurement Policy: Training Program for the Bank s Procurement Staff

Transcription

1 11 AfDB New Procurement Policy: Training Program for the Bank s Procurement Staff Competitive Negotiations and Competitive Dialogue (overview based on OPM)

2 Dialogue 2 Involve simultaneous negotiation (dialogue) with more than one bidder Culminate with submission of interested bidders best and final offer Provided in UNCITRAL model law in procurement Included in EU rules Used by governments & private sector The purpose is to obtain innovative solutions through interaction and debate between Purchaser and bidders in situations where the EA cannot describe fully its requirements in advance

3 Dialogue cont. 3 Preferred approach Conduct simultaneous negotiations with several prequalified bidders Negotiations or dialogue stage take place early in the process, well before final evaluation Appropriate in case of Clear objectives Appropriate planning Detailed and well defined award criteria

4 Dialogue cont. 4 Fundamental is Respect of confidentiality and equal and fair treatment of all bidders during the dialogue phase.

5 Dialogue How does it work? 5 A competitive process is used to solicit proposals (also called 1 st stage bids)in response to broad output specifications, preferably after a prequalification process EA (the Purchaser) then negotiates (or dialogues) directly with qualified bidders whose bids are responsive Negotiations focus on the details of technical requirements and contract conditions

6 Dialogue How does it work? cont. 6 Negotiations are conducted simultaneously with several bidders to enhance the competitive aspects of the bids Combination of elements of competitive bidding is allowed to promote transparency

7 Dialogue How does it work? cont. 7 These methods are fit for purpose when technical requirements are difficult to describe adequately or cannot be fully defined in advance Intended for use in complex procurement processes, particularly when Pricing is difficult Funding might not be available before award

8 Dialogue How does it work? cont. 8 Main advantage Favour innovative solutions, beyond the results a traditional two stage bidding method can produce Suited to contracts in which: Imaginative approaches and innovative solutions are welcome Bidders may therefore submit quite different proposals A negotiation stage during the bidding process facilitates the adoption of precise provisions (technical, commercial, legal) that cannot be negotiated after bid evaluation

9 Dialogue Concerns 9 Limited experience in these methods, methods relatively new Not widely used so far, often misused in situations where other methods are more appropriate The negotiation/dialogue phase is complex and not linear involving: Review of options Assessment of optimal solutions Definition of indicative solutions and associated prices Definition of final requirements

10 Dialogue Advantages 10 Bidders creativity Better tailoring of solutions to fulfil borrower s needs in terms of Timing Design Performance Security Contract provisions

11 Dialogue Advantages cont. 11 Avoid the risk of unrealistic proposals like it happens under price based competitive bidding Allow screening of qualified potential bidding and coming to terms with a preferred one in a progressive manner