Procurement Guidelines
The main objective of procurement is to obtain the best quality products and services possible,
at the best price, and in accordance with donor policies. Procurements must be conducted and
managed in a transparent way. The procurement procedures presented in this manual are not
applicable for utilities such as gas and heating, nor for salaries of employees and
communication expenses (phone, fax and internet).
Key Principles
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Transparency, correctness, and fraud prevention – the funds are used in an honest,
transparent way and with responsibility;
Equal opportunities – all suppliers should be treated equally and all suppliers should get
the same information;
Economy and efficiency (correct price) - goods and services are procured at a
reasonable price;
Effectiveness – goods and services will lead to realization of project objectives;
The ability of the suppliers of goods and services should be documented in such a way as
to ensure delivery.
Through good procurement management, we assure that:
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The necessary resources for the development of a project are procured with attention to
economy and efficiency (best price, best quality, and timely supply of the necessary
quantity of goods);
The funds allocated to goods and services are used strictly for the objectives and
activities for the project;
It is ensured that there will be equal opportunities for all suppliers.
The EHNR must meet the key principles of procurement management and the highest ethical
standards in the procurement process such as transparency, fairness, prevent fraud and
corruption and conspiracy practices, coercive and obstructive as defined in:
1. Guidelines on Procurement under IBRD Loans and IDA Credits May 2004 Revised October
1, 2006 ce poate fi acesat de pe:
http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/PROCUREMENT/0,,content
MDK:20060840~menuPK:93977~pagePK:84269~piPK:60001558~theSitePK:84266~i
sCURL:Y,00.html;
2. Guidelines on selection and employment of consultants by world bank borrowers May 2004
Revised October 1, 2006 ce poate fi acesat de pe:
http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/PROCUREMENT/0,,content
MDK:20060656~menuPK:93977~pagePK:84269~piPK:60001558~theSitePK:84266~i
sCURL:Y,00.html.
Each product, work, or service, within one project may be considered a procurement article, for
which you can make a procurement process. Taking into consideration the high number within
each project, in practice this work would be inefficient, increase procurement costs, and would
not fit in the time established for the project implementation. On the other side, it is evident
that the interest of the suppliers increases with increasing contract value. That is why the
articles are grouped into procurement packages, consisting of similar articles from the
technical point of view and which engage the same of type of suppliers.
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Furthermore, in order to attract small as well as big companies and for facilitating the
participation of many suppliers, in order to ensure price competitiveness, the articles from one
package may be split into lots, taking into consideration the nature of the articles, the technical
characteristics, as well as the specifics of the market and the suppliers.
Within the project, the following categories of procurement will be done:
 Goods;
 Works;
 Services (physical and intellectual consultancy).
A. “Goods” means materials, products, equipment, articles used short or long term;
B. “Works” means all the operations made for realization, renovation, transformation of fixed
objects (e.g. renovation of existing building);
C. “Services” means first of all, providing consultancy services by the expert with experience in
particular domains and with the professional qualifications. Based on the nature and
complexity of services, consultancy services are conducted by a firm or by an individual
consultant. Also, in this category, are included services other than consultancy, which can be
quantified. E.g. organizing of events, seminars, training. The selection of companies for
services other than consultancies will be done following the procedures for goods and
works, but adopted for non-consultancy services.
The methods for procurement represent the activities made for attributing and concluding a
contract through which to procure goods, works, or services.
The EHNR uses methods and procedures of the World Bank. The WB procedures are in
compliance with the transparency, competitiveness, quality, and efficiency requirement of all
donors of project grants implemented by PAS.
GOODS AND WORKS
Goods and works are purchased in accordance with the following guidelines:
1. Guidelines on Procurement under IBRD Loans and IDA Credits May 2004 Revised October
1, 2006:
http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/PROCUREMENT/0,,content
MDK:20060840~menuPK:93977~pagePK:84269~piPK:60001558~theSitePK:84266~i
sCURL:Y,00.html;
2. Procurement Manual July 2001:
http://siteresources.worldbank.org/PROCUREMENT/Resources/pm7-3-01.pdf.
Depending on the specifics of a purchase, the following procurement methods are used:
International Competitive Bidding (ICB)
This method is used for large purchases (usually estimated contract value exceeds USD
200,000) and foreign bidders are expected to be interested. ICB involves open tender (bidding)
placed on internationally recognised sites (such as UNDB, dgMarket) and local media, in
English.
Specific steps of this method of procurement are as follows:
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Preparation of bidding documents including Technical Specifications and Specification
of works;
Placement of the notice on the organization of the bidding on internationally recognized
sites (such as UNDB, dgMarket), on the EHNR's web page and local media;
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Sale of bidding documents to the interested eligible bidders;
Reasonable period of time to prepare bids is at least 45 days, depending on packet size.
Date, time and place where the bids will be publicly opened shall be indicated as well;
Provision to the bidding participants of clarifications/explications on the bidding
documents;
Receiving / public opening of bids, preparation of minutes on opening of bids;
Evaluation and comparison of bids (offers);
Preparation of an Evaluation Report;
Notification of a winner;
Completion and signing of the contract with the selected bidder;
Notification of unsuccessful bidders;
Receipt of goods / works, signed documents confirming the reception;
Keep the documentation.
For this method of procurement the latest versions of standard bidding documents elaborated
by the World Bank should be used, which can be accessed from:
http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/PROCUREMENT/0,,contentMDK:2
0062006~menuPK:84284~pagePK:84269~piPK:60001558~theSitePK:84266,00.html.
National Competitive Bidding
National Competitive Bidding (NCB) is the competitive bidding procedure normally used for
public procurement in the country (usually estimated contract value exceeds USD 100,000).
NCB may be the most appropriate method of procurement where foreign bidders are not
expected to be interested because:
(a) the contract values are small,
(b) works are scattered geographically or spread over time,
(c) works are labour intensive, or
(d) goods or works are available locally at prices below the international market.
Note: if foreign bidders are interested, they should be allowed to participate under the same
conditions as national bidders
Specific steps of this method of procurement are as follows:
 Preparation of bidding documents including Technical Specifications and plan of works
etc.;
 Placement of the notice on the organization of the bidding on the EHRN's web page and
local media;
 Reasonable period of time to prepare bids is at least 30 days, depending on packet size.
Date, time and place where the bids will be publicly opened shall be indicated as well;
 Provision to the bidding participants of clarifications/explications on the bidding
documents;
 Receiving / opening of bids, preparation of minutes on opening of bids;
 Evaluation and comparison of bids (offers);
 Preparation of an Evaluation Report;
 Notification of a winner;
 Completion and signing of the contract with the selected bidder;
 Notification of unsuccessful bidders;
 Receipt of goods / works, signed documents confirming the reception;
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Keeping of all documents and their filing/archiving.
For this method of procurement the latest versions of standard bidding documents elaborated
by the World Bank will be used which can be adjusted for NCB.
Shopping
Shopping is a procurement method based on comparing price quotations obtained from several
suppliers (in the case of goods) or from several contractors (in the case of civil works), with a
minimum of three, to assure competitive prices. It is an appropriate method for procuring
readily available off-the-shelf goods or standard specification commodities of small value, or
simple civil works of small value (usually estimated contract value does not exceed USD
100,000).
This method is divided into 2 sub-methods:
1. Shopping above $10,000
The procedure involves obtaining bids from at least three (3) suppliers / contractors, then a
supplier / contractor will be selected whose offer complies with the technical specifications/
specifications of works and who has the lowest total evaluated price. It is necessary for
suppliers to submit a bid according to the indications in the Request for Proposals. It is possible
that not all suppliers invited to participate in the bidding respond to this invitation. In case
there are not a minimum of three, the buyer has to begin the process again.
Specific steps of this method of procurement are as follows:
 Establish an evaluation committee, at least three members;
 Determine type of goods, quality, and delivery terms/technical specifications;
 Prepare request for offer;
 Advertise RFP on the webpage and/or in one of the newspapers with national
circulation or transfer the documentation to selected eligible suppliers;
 Collect offers – they need to have 7 days;
 Evaluation and preparation of evaluation report;
 Negotiating and signing the contract whose offer is the lowest total evaluated price;
 Publish the results on the web page;
 Procure;
 Keep the documentation.
2. Shopping up to $10,000
The method involves collecting of market information on goods / works to be purchased (price,
quality, availability), comparing them and selecting suppliers (for goods) or contractors (if
works). The buyer receives offers by mail, email or fax (minimum 3 offers that meet the
technical specifications).
Specific steps of this method of procurement are as follows:
 Establish an evaluation committee, at least three members;
 Determine type of goods, quality, and delivery terms;
 Verify the availability of goods works on the market and set a list of suppliers (at least 3);
 Obtain at least three bids from suppliers / contractors (bids may be requested by mail or
fax);
 Compare prices. Evaluation of bids;
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Preparation of an Evaluation Report;
Proceed with the procurement of goods from the supplier / certification of satisfactory
completion of works;
Keep documentation.
In this method of procurement, for standardization of procurement documents, Sub-recipients
will use models of procurement documents elaborated by PAS Centre.
Direct Contracting (DC)
Direct contracting is contracting without competition (single source) and may be an
appropriate method under the following circumstances:
(a) An existing contract for goods or works may be extended for additional goods or works
of a similar nature. (The additional agreement must not exceed the original contract);
(b) Standardization of equipment or spare parts, to be compatible with existing equipment,
may justify additional purchases from the original Supplier;
(c) The required equipment is proprietary and obtainable only from one source;
(d) In exceptional cases, such as in response to natural disasters;
(e) In cases when the sole and total procurement of goods purchased does not exceed USD
1,000.
SERVICES
Services are purchased in accordance with the following guidelines:
1. Guidelines on selection and employment of consultants by world bank borrowers May 2004
Revised October 1, 2006 :
http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/PROCUREMENT/0,,content
MDK:20060656~menuPK:93977~pagePK:84269~piPK:60001558~theSitePK:84266~i
sCURL:Y,00.html;
2. Consulting Services Manual A Comprehensive Guide to Selection of Consultants:
http://siteresources.worldbank.org/PROCUREMENT/Resources/csm-final-ev3.pdf.
Depending on the specifics of a purchase the following procurement methods are used:
Least-Cost Selection (LCS)
This method is only appropriate for selecting consultants for assignments of a standard or
routine nature (audits, engineering design of noncomplex works, and so forth) where wellestablished practices and standards exist. Under this method, a “minimum” qualifying mark for
the “quality” is established. Under this method, the minimum qualifying mark shall be
established, understanding that all proposals above the minimum compete only on “cost.”
Specific steps of this method of procurement are as follows:
 Establishment of Evaluation Committee, composed of at least three members, but not
more than five members;
 Preparation and sending Request for Proposals to the shortlisted firms (establish of a
shortlist if is necessary, shortlist must comprise three to six firms to submit technical
and financial proposal;
 Collection offers from the bidders (technical and financial bid will be presented in two
separate envelopes);
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Opening and evaluation of technical bids (bidder who has accumulated the minimum
qualification becomes eligible for financial evaluation);
Preparation of technical evaluation report;
Public opening of financial bid;
Preparation of Final Evaluation Report;
Negotiation of the contract (in case if in the course of negotiations with the selected
company an agreement for contract conclusion is not reached, then technical and
financial proposal will be requested from the company ranked the next place);
Contracts signing;
Notification of consultants;
Payment based on documents and reports accepted and after invoice receipt;
Keep the documentation.
For this method of procurement the latest version of the standard documents of Requests for
Proposals elaborated by the World Bank will be used to purchase that can be accessed from:
http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/PROCUREMENT/0,,contentMDK:2
0062006~menuPK:84284~pagePK:84269~piPK:60001558~theSitePK:84266,00.html.
Consultant’s qualification (CQ):
Consultant's Qualification (CQ) - this method applies in cases where a beneficiary seeks for
contracting a company which can provide comprehensive/complex consulting services that
cannot be fulfilled by one person.
Specific steps of this method of procurement are as follows:
 Establishment of Evaluation Committee, composed of at least three members, but not
more than five members;
 Determination of TOR (which include general information about the project; objective of
the consulting services; description of the activities; duration, qualifications, reporting
etc);
 Advertise on the webpage and/or in one of the newspapers with national circulation of
the Application of Intent to Participate;
 Receipt of Letters of Intent (and other required documents) submitted within the
deadline specified in the Application of Intent to Participate;
 Evaluation the qualification of the firms in terms of the TOR and select firm with the
highest qualifications;
 Prepare and send Request for Proposals to the selected firm to present technical and
financial proposal, in accordance with the TOR;
 Review the proposal and contract negotiation (in case if in the course of negotiations
with the selected company an agreement for contract conclusion is not reached, then
technical and financial proposal will be requested from the company ranked on the next
place);
 Contract signing;
 Notification of consultants;
 Payment based on documents and reports accepted and after invoice receipt;
 Keep the documentation.
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Individual Consultants (IC)
This method is used when consulting services may be performed by one person. This method is
suitable for selection of any expert, consultant, assistant, instructor, whose experience and
qualifications are sufficient. Consultants will be selected by comparing the qualifications of at
least three candidates among those who have expressed interest in providing services.
Candidate whose evaluation result is the highest will be invited to the negotiation and contract
signing. If in the course of negotiations with the selected company an agreement for contract
conclusion is not reached, then negotiations with this individual consultant will be canceled
and negotiations will be proposed to the candidate ranked on next place).
Specific steps of this method of procurement are as follows:
 Preparation of TOR ( which include general information about the project, the objective
of the consultancy, description of activities and responsibilities of the Consultant, the
duration of services, qualifications required, reporting);
 Advertise on the webpage and/or in one of the newspapers with national circulation; of
the Application of Intent to Participate;
 Receipt of Letters of Intent (and CVs) submitted within the deadlines specified in the
Application of Intent to Participate;
 Basing on the Letters of Intent (and CVs) received, select at least three candidates;
 Evaluate selected Consultants’ Qualifications and selection of the consultant with the
highest qualifications;
 Negotiation and signing contract;
 Keep the documentation.
Single-Source Selection (SSS)
Single-source selection - this method is not competitive and supposes contracting without the
selection process.
Single-source selection may be appropriate only if it presents a clear advantage over
competition:
(a) for tasks that represent a natural continuation of previous work carried out by the
Consultant who has been selected basing on bidding procedure;
(b) if the service period not exceed six months and the contract value does not exceed USD
1,000;
(c) in emergency cases, such as natural disasters;
(d) There is only one consultant in that area, and receiving offers from elsewhere will
increase the cost or it is patented/trademark services;
(e) Consultant is assigned by the Ministry or by the CCM, or by the CCM working groups;
(f) these services are available from a single source because of the patent.
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