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Monitoring and tender procedures for infrastructure projects

Federal Department of Foreign Affairs FDFA Swiss Agency for Development and Cooperation SDC Federal Department of Economic Affairs, Education and Research EAER State Secretariat for Economic Affairs SECO. Monitoring and tender procedures for infrastructure projects. Baltic Retreat 2013.

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Monitoring and tender procedures for infrastructure projects

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  1. Federal Department of Foreign Affairs FDFASwiss Agency for Development and Cooperation SDCFederal Department of Economic Affairs, Education and Research EAER State Secretariat for Economic Affairs SECO Monitoring and tender procedures for infrastructure projects Baltic Retreat 2013

  2. Analysingtenderdocuments Tender documents have to be “Fit for purpose”, i.e. the documents have to be in compliance with the following basic principles for Public Procurement: • Transparency; • Equal and fair treatment of all tenderers; • Strengthening of competition; • Cost effective use of public resources.

  3. Analysingtenderdocuments Main questions (basis for ToRs to the backstopper): • General structure and completeness of the tender documents • Technical specifications • Qualification criteria • Evaluation criteria • Fairness and competitiveness • Realistic implementation plan • Tender and performance guarantees

  4. Analysingtenderdocuments Minimum time requirement ≠ optimal time requirement Provision of at least 40 working days to submit offers in order to allow bidders to… • study tender documentation (including translation especially in the case of foreigner/international bidders) and ask clarification questions • organisea short field visit • estimate the required staff input • arrange cooperation agreements with sub-contractors/partners • arrange bank guarantees, certificates, official documents • assess potential risks to come up with a reliable cost estimate

  5. Analysingtenderdocuments Price shouldNOTbe the onlycriteria Quality, life cycle costs, guarantee, sustainability…  Most economicoffer Examples of qualitative criteria: 1) Time of delivery 2) Expertise of the project managers / key experts: personal references in similar projects (comparable size and construction costs) 3) Technical and professional capacity of the company: Number of reference objects (comparable size and construction costs) 4) Guaranteed operation/maintenance costs over x-years 5) Guarantees (years) on equipment and materials 6) Quality management: certifications (ISO 9001)

  6. PublicationoftenderdocumentsForm for all tenders above 500’000 (PA art. 5) to be submitted to Switzerland at least 5 days before publication

  7. Analysingconfirmationsofcompliancewithprocurementrules Elements to beincluded (best practice Estonia): 1) Type of public procurementprocedure 2) Date of publication & deadline for submission of offers 3) Number of bids and name of bidders 4) Numberofdisqualifiedcompaniesandreasonsfordisqualifications 5) Evaluation criteria 6) Amount of contract

  8. Analysingconfirmationsofcompliancewithprocurementrules • Precautionarychecks in case therewasonly one offer: • Is the offeredprice (for all sub-categories) realistic? Within budget? Reference prices? • Are all technicalspecificationsfulfilled?Did the company offer the full service required in the specifications? • Didanyspecificationlimitcompetition? • Sufficient time given to submitoffers?

  9. Analysingconfirmationsofcompliancewithprocurementrules • Precautionarychecks in case the offeredpriceisabnormallylow: • Has it been ensured that all technical specifications will be respected? • Have all costs for equipment purchasing and delivery as well as costs for installation works been taken into account? • Is there a reserve for additonal claims in case of «unforseeable» costs?

  10. Coordinationof NCU/SCO sitevisits Switzerland would like to visit some of the infrastructure projects with experts. • Mutual information on planning of site visits, procurements, steering committee meetings • Joint visits • Exchange of results of monitoring visits (monitoring reports)

  11. Thanksforyourattention!Questions / Discussion

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