Main Amendments to SBD May 2005 Edition

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Preface

Standard Bidding Documents

Supply and Installation
of Plant and Equipment

The World Bank

May 2005

1

Main Amendments to SBD May 2005 Edition

The following are the main changes that have been made to the March 2003 edition of these Bidding Documents. These changes were incorporated to accomodate the features of the May 2004 Guidelines: Procurement under IBRD Loans and IDA Credits and few other changes. They are:

1.The advertising requirement has been modified (Section I, Invitation for bids).

2.The eligibility of bidders and goods has been expanded. Bidders from and goods manufactured in any country (other than those banned by a UN Security Council Decision or officially boycotted by the Employer’s Country) are eligible. The conflict of interestclauses, (ITB Clause 2.1, 2.2 and 3.2) are clarified.

3.The Employer has the option to use the national language, or the language widely used commercially, in the Employer’s Country; in addition to the international language to prepare bidding documents, bids, and to sign contracts. The ruling language and language for communication is to be defined in the contract.

4.The option to bid with “Diviation” removed [ITB 9.3 (f) Attachment 6 (single stage) & 9.3 (d) Attachment 4 (two stage)].

5.The word “consortium” removed.

6.Minimum criteria to qualify listed in the BDS; [ITB 9.3 (c) (single stage)].

7.The phrase modified to read “opened in public” [ITB Clause 20.1 (single stage) & 14.1 and 31.1 (two stage)].

8.Section IV, General Condition of Contract (GCC), Clause 14.2 on Taxes and Duties: Clarification that the Employer is responsible for (i) all local sales taxes (and /or VAT) for all plant and equipment; and for (ii) Import Taxes and Custom Duties on equipment under CIP terms.

9.GCC Clause 40, The Contractor is not responsible delays caused at customs attributable to the Employer added.

10.Special Conditions of Contract (SCC) Clause 6.2.3. Place of arbitration shall not be in the Employer’s or Contractors country added.

11.A Bid Securing Declaration has been introduced to be used in lieu of a Bid Security, whenever appropriate.

12.Electronic bidding is allowed, subject to agreement with the Bank on the electronic procedures to be used. The documents refer to the possibility to issue bidding documents, submission of bids and opening of bids electronically.

13.The Employer is required to publish detailed information on the procurement process in UNDB on-line and in DG Market after receiving the Bank’s no objection to the recommendation of the contract award.

14.The clause on Fraud and Corruption has been expanded to include “collusive”and “coercive” practices; and reinforces the sanctions that the Bank is prepared to take in cases of Fraud and Corruption.

15.Clarification that the commercial evaluation is on total price including plant and equipment supplied from within and from outside rather than comparion between CIP vs. EXW prices, and application of domestic preference is removed.

16.Clarification that the local transportation price includes local taxes and some editorial improvement for clarity.

17.Appendix 1, Terms and Procedures of Payment: The portion of the price to be paid to the Contractor on delivery will be according to the definition of Delivery defined under Incoterms which is delivery to the carrier.

18.Appendix 8 Functional Guarantees: Clarification that the figures offered by contractor represent 100%.

19.September 2005: Export Restriction Clause added to General Conditions of Contract (GCC 44)

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Preface

Preface

These “Standard Bidding Documents for the Supply and Installation of Plant and Equipment” have been prepared for use in contracts financed by the International Bank for Reconstruction and Development (IBRD) or the International Development Association (IDA) (interchangeably known as “The World Bank” or “the Bank”) involving the supply, installation and commissioning of specially engineered plant and equipment, such as turbines, generators, boilers, switchyards, pumping stations, telecommunications, process and treatment plants, and the like for power, water, sewerage, telecommunication and similar projects. Normally, this set of documents should be used when (i) the value of the plant and equipment portion represents the major part of the estimated contract value, or (ii) the nature and complexity of the plant and equipment is such that the facilities cannot safely be taken over by the Employer without elaborate testing, precommissioning, commissioning and acceptance procedures being followed. If the user has questions regarding which SBD should be used in a particular case, the appropriate Bank’s Regional Procurement Advisor or the Procurement Policy and Services Group, Operational Core Services Network, should be consulted.

These documents include both a Single Stage (Option A) and an alternative Two Stage (Option B) bidding procedure to be chosen by Borrowers as appropriate to each circumstance. The choice of the Two Stage bidding procedure shall be subject to the Bank’s advance approval on a case-to-case basis, depending on the complexity of the contract and the particular circumstances surrounding its procurement and implementation. The Bidding Procedures Flowcharts (one for Single Stage bidding and one for Two Stage bidding) show how the bidding documents are intended to be used both during the bidding process and during the formulation of the eventual contract documents.

(a)The use of SBDs prepared by the Bank is mandatory for all contracts financed by the Bank.

(b)The documents have been prepared as standard documents, which can be used in their published form without the need for the Borrower to amend or add text to the standard sections of the document. All information and data particular to each individual contract and required by bidders in order to prepare responsive bids must be provided by the Employer, prior to issuing the Bidding Documents, in the Bid Data Sheet (Section III), the Special Conditions of Contract (Section V), the Technical Specifications and Drawings (Section VI), and the Appendixes to the Form of Contract Agreement (in Section VII). Unless specifically agreed with the Bank, the Special Conditions of Contract shall not materially alter the provisions of the General Conditions of Contract.

(c)The role of “the Engineer,” as found, for example, in the Conditions of Contract for Electrical and Mechanical Works produced by the International Federation of Consulting Engineers (FIDIC), is not included in these Bidding Documents. In its place, and fulfilling the same duties, there are two new parties named the “Project Manager” and the “Adjudicator.”

The Project Manager is appointed by the Employer. Its role is to supervise and manage the Contract on behalf of the Employer with the intention of achieving the Employer’s objectives for the completed Contract. When appointing the Project Manager, the Employer may either select a reputable firm of Consulting Engineers experienced in the particular field, or the Employer may appoint one of its own staff as Project Manager, if the Bank is satisfied that it has suitable in-house expertise.

The name of the Adjudicator proposed by the Employer is to be given in the Bid Data Sheet, and the bidders have the right to accept or propose an alternate in their bids. The documents foresee the nomination of an Adjudicator whose role is to review and decide upon any matters of potential dispute between the parties where the parties, with or without the help of the Project Manager, have been unable to settle the matter amicably. The costs of the Adjudicator are shared equally by both parties. Arbitration is resorted to only if the parties fail to settle the dispute through the Adjudicator.

(d)The General Conditions of Contract are based on the Model Form of International Contract for Process Plant Construction published by the Engineering Advancement Association of Japan (ENAA), and the Bank gratefully acknowledges the permission of ENAA to make use of and amend the Model Form for inclusion in these Standard Bidding Documents. These General Conditions meet the Bank’s requirements, and they shall be used without amendment unless specifically agreed with the Bank.

The ENAA conditions were drafted primarily with turnkey contracts in mind where the Contractor is responsible for each activity required for completion of the facilities, e.g., design, manufacture, delivery, installation, testing, commissioning, training, etc. However, these conditions have been adapted by the Bank for use for single responsibility contracts where some activities, such as parts of the preliminary design or site preparation works, are done by others.

(e)The time allowed for preparing and submitting bids should not be too short and should allow adequate time for bidders to properly study the Invitation, visit the site and prepare complete and responsive bids.

The Bank welcomes any feedback or experiences from the use of these Bidding Documents, from bidders and from others as well.

Procurement Policy and Services Group

Operational Core Services Network

The World Bank

1818 H Street, N.W.

Washington, D.C.20433

U.S.A.

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Preface

Table of Contents

OPTION A: SINGLE STAGE BIDDING...... 51H51H52H

Section I. Invitation for Bids...... 52H52H53H

Notes on the Invitation for Bids...... 53H53H54H

Section II. Instructions to Bidders...... 54H54H55H

Notes on the Instructions to Bidders...... 55H55H56H

Table of Clauses...... 56H56H57H

Section III. Bid Data Sheet...... 57H57H58H

Notes on the Bid Data Sheet...... 58H58H59H

OPTION B: TWO STAGE BIDDING...... 59H59H60H

Section I. Invitation for Bids...... 60H60H61H

Notes on the Invitation for Bids...... 61H61H62H

Section II. Instructions to Bidders...... 62H62H63H

Notes on the Instructions to Bidders...... 63H63H64H

Table of Clauses...... 64H64H65H

Section III. Bid Data Sheet...... 65H65H66H

Notes on the Bid Data Sheet...... 66H66H67H

Section IV. General Conditions of Contract...... 67H67H68H

Notes on the General Conditions of Contract...... 68H68H69H

Table of Clauses...... 69H69H70H

Section V. Special Conditions of Contract...... 70H70H71H

Notes on the Special Conditions of Contract...... 71H71H72H

Section VI. Technical Specifications and Drawings...... 72H72H73H

Notes on Preparing the Technical Specifications and Drawings...... 73H73H74H

Section VII. Sample Forms and Procedures...... 74H74H75H

Notes on the Sample Forms and Procedures...... 75H75H76H

1. Bid Forms and Price Schedules...... 76H76H77H

2. Form of Bid Security (Bank Guarantee)...... 77H77H78H

3. Form of Bid Security (Bid Bond)...... 78H78H79H

4. Bid-Securing Declaration...... 79H79H80H

5. Form of Contract Agreement...... 80H80H81H

6. Performance Security Forms...... 81H81H82H

7. Bank Guarantee Form for Advance Payment...... 82H82H83H

8. Form of Completion Certificate...... 83H83H84H

9. Form of Operational Acceptance Certificate...... 84H84H85H

10. Change Order Procedures...... 85H85H86H

Section VIII. Eligible Countries...... 86H86H87H

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Preface

Acronyms

BDSBid Data Sheet

CIFCost, Insurance and Freight

CIPCarriage and Insurance Paid to (named place of destination)

CPMCritical Path Method

DDPDelivered Duty Paid (named place of destination)

EDIElectronic Data Interchange

ENAAEngineering Advancement Association of Japan

EXWEx factory, ex works or ex warehouse

FCAFree Carrier

FIDICFédération Internationale des Ingénieurs Conseils (International Federation of Consulting Engineers)

FOBFree on Board

GCCGeneral Conditions of Contract

IBRDInternational Bank for Reconstruction and Development

ICCInternational Chamber of Commerce

IDAInternational Development Association

IFBInvitation for Bids

ITBInstructions to Bidders

SBDStandard Bidding Document

SCCSpecial Conditions of Contract

TSTechnical Specifications and Drawings

UNCITRALUnited Nations Commission on International Trade Law

SectionI. Invitation for Bids1

OPTION A: SINGLE STAGE BIDDING

SectionI. Invitation for Bids1

Single Stage Bidding Procedure Flowchart

I. Bidding Documents
Issued by Employer
Invitation for Bids
Instructions to Bidders
Bid Data Sheet
General Conditions of Contract
Special Conditions of Contract / Technical Specifications and Drawings
Sample Forms and Procedures
Eligibility for the Provision of Goods, Works and Services

II. The Bid
Submitted by Bidder
Cover Letter
Bid Form
Price Schedules
Attachments:
1.Bid Security
2.Power of Attorney / 3. Bidder’s Eligibility (Joint Venture, if any)
4.Eligibility of Facilities
5.Subcontractors proposed by Bidder (if any)
6.(Deleted)
7.Alternative Bids (if any)
Technical Specifications and Drawings from the Bidder (if called for)

III. Contract Documents
Issued by Employer & Submitted by Bidder
Notification of Award
Bid Form
Price Schedules
General Conditions of Contract
Special Conditions of Contract
Contract Agreement and Appendices
1.Terms and Procedures of Payment
2.Price Adjustment (if applicable)
3. Insurance Requirement / 4.Time Schedule
5.List of Subcontractors
6.Scope of Works and Supply by Employer
7.List of Documents for Approval/Review
8.Functional Guarantees
Forms and Procedures
Technical Specifications & Drawings
Any other documents agreed as forming a part of the Contract

SectionI. Invitation for Bids1

SectionI. Invitation for Bids

Notes on the Invitation for Bids

The Invitation for Bids (IFB) (see para. 2.8 of the World Bank Guidelines: Procurement under IBRD Loans and IDA Credits, May 2004, shall be issued as:
(a)an advertisement in at least one newspaper of general circulation in the Borrower’s country ( or in the official gazette or in an electronic portal with free access)
(b)an advertisement in Development Business online and in DG Market.
Advertising inquiries about the U.N. Development Business publication can be directed as shown below:
Development Business, 1818 H Street, N.W., Washington, D.C. 20433 U.S.A.; Telephone: 1-202-458-2397; Facsimile: 1-202-522-3316; Internet: .
The IFB provides information that enables potential bidders to decide whether to participate. Apart from the essential items listed in the Standard Bidding Documents (SBDs), the IFB should also indicate any important bid evaluation criteria or qualification requirement (for example, a requirement for a minimum level of experience in manufacturing and installing a similar type of plant and equipment for which the IFB is issued).
The IFB should be incorporated into the bidding documents. The information contained in the IFB must conform to the bidding documents and in particular to the relevant information in the Bid Data Sheets.

SAMPLE FORMAT FOR INVITATION FOR BIDS

[Name of Country]

[Name of Project]

BRIEF DESCRIPTION OF GOODS [WORKS]

Loan [Credit] No.

1.This invitation for bids follows the general procurement notice for this project that appeared in Development Business, issue no. [insert number] of [insert date]. 1

2.The [insert name of borrower][has received/has applied for/intends to apply for] a [loan/credit] from the [International Bank for Reconstruction and Development/International Development Association] toward the cost of [insert name of project], and it intends to apply part of the proceeds of this [loan/credit] to payments under the contract for [insert name/no. of contract]. 2

3.The [insert name of implementing agency] now invites sealed bids from eligible bidders for [insert description of goods or works to be procured]. 3,4

4.Bidding will be conducted through the international competitive bidding procedures specified in the World Bank’s Guidelines: Procurement under IBRD Loans and IDA Credits, and is open to all bidders from eligible source countries as defined in the guidelines. 5 [Insert qualification requirement and important bid evaluation criteria ]

5.Interested eligible bidders may obtain further information from [insert name of agency] and inspect the bidding documents at the address given below [state address at end of document] from [insert office hours]. 6

6.A complete set of bidding documents in [insert name of language] may be purchased by interested bidders on the submission of a written application to the address below [state address at the end of document] and upon payment of a nonrefundable fee7[insert amount in local currency] or in [insert amount in specified convertible currency]. The method of payment will be [insert method of payment].8 The document will be sent by [insert delivery procedure].9

7.Bids must be delivered to the address below [state address at the end of document] at or before [insert time and date]. If required, all bids must be accompanied by a bid security of [insert amount in local currency or minimum percentage of bid price] or an equivalent amount in a freely convertible currency.10 Late bids will be rejected. Bids will be opened in the presence of the bidders’ representatives who choose to attend at the address below [state address at end of document] at [insert time and date]. 11

[Insert name of office].

[Insert name of officer].

[Insert postal address] and/or [Insert street address].

[Insert telephone number, indicate country and city code].

[Insert facsimile or cable number].

Notes

1. Day, month, year; for example, 31 January 1996.

2.[Insert if applicable]. This contract will be jointly financed by [insert name of cofinancing agency]. Bidding will be governed by the World Bank’s eligibility rules and procedures.

3. A brief description of the type(s) of goods or works should be provided, including quantities, location of project, and other information necessary to enable potential bidders to decide whether or not to respond to the invitation. Bidding documents may require bidders to have specific experience or capabilities; such requirements should also be included in this paragraph.

4. [Insert if applicable]. The delivery/construction period is [insert no.of days/months/years or dates].

5. Occasionally, contracts may be financed out of special funds that would further restrict eligibility to a particular group of member countries. When this is the case, it should be mentioned in this paragraph. Also indicate any margin of preference that may be granted as specified in the Loan or Credit Agreement and set forth in the bidding documents.

6.For example, 0900 to 1200 hours.

7. The fee, to defray printing and mailing/shipping costs, should be nominal.

8. For example, cashier’s check, direct deposit to specified account no., etc.

9. The delivery procedure is usually airmail for overseas delivery and surface mail or courier for local delivery. If urgency or security dictates, courier services may be required for overseas delivery.

10. The amount of bid security should be stated as a fixed amount or as a minimum percentage of the bid price. Alternatively, if a bid security is not required (often the case in supply contracts), the paragraph should so state.

11. The office for bid opening may not necessarily be the same as that for inspection or issuance of documents or for bid submission. If they differ, each address must appear at the end of paragraph 7 and be numbered; as, for example, (1), (2), (3). The text in the paragraph would then refer to address (1), (2), etc. Only one office and its address may be specified for submission, and it should be near the place where bids will be opened.

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Option A. Section II. Instructions to Bidders

Section II. Instructions to Bidders

Notes on the Instructions to Bidders

This section of the bidding documents provides the information necessary for bidders to prepare responsive bids, in accordance with the requirements of the Employer. It also provides information on bid submission, opening and evaluation, and on contract award.
Section II contains provisions that are to be used unchanged. Section III consists of provisions that supplement, amend, or specify in detail information or requirements included in Section II and that are specific to each procurement.
Matters governing the performance of the Contractor, payments under the contract, or matters affecting the risks, rights, and obligations of the parties under the contract are not normally included in this section, but instead under Section IV, General Conditions of Contract, and/or Section V, Special Conditions of Contract. If duplication of a subject is inevitable in the other sections of the document prepared by the Employer, care must be exercised to avoid contradictions between clauses dealing with the same matter.
These Instructions to Bidders will not be part of the contract.

Table of Clauses

A. Introduction...... 87H87H88H10