Corporate Procurement

Purchasing of goods, works and services

1. Introduction

Purchasing of goods, works or services by the Bank (excluding consulting services and staff employment) is set out in the Bank’s Rules for Internal Purchasing. The objective is to purchase goods, works or services fit for the requestor’s stated purpose in a manner that balances the Bank’s requirements for efficiency, economy, transparency, fairness and accountability.

 

Purchasing contracts are awarded as a result of competition or direct selection.


2. Competitive contracting and circumstances

The methods for tendering depend on the estimated cost of each purchase, as follows:

  • Over €200,000 - International Competitive Tendering (ICT)

Tenders are normally invited through international competitive tendering procedures and conducted in a fair, open and transparent manner consistent with such comparable procedures the Bank requires of its public sector borrowers when using Bank funds. Tenders are publicized on the Bank’s website; and, if the cost is reasonable, in periodicals published in the Bank’s member states. Other methods of tendering may be used in special circumstances. Such circumstances and all relevant details of the purchase are reported to the Bank’s Board of Directors.

  • Between €50,000 and €200,000 - Limited Competitive Tendering

Tenders are normally invited through simplified competitive tendering procedures consistent with ICT that are open to businesses from any country - with a notice published on the Bank’s website. However, where practicable, a restricted list comprising a minimum of five qualified vendors may be invited to tender when the purchase satisfies at least one of the following reasons: the required goods, works, or services are highly specialized and complex or are urgently needed; there is only a limited number of vendors for the goods, works, or services required; other circumstances limit the number of vendors that are able to meet the requirements.

  • Under €50,000 - Shopping

Wherever practicable, written quotations are invited or valid published prices obtained from a minimum of three qualified vendors. Where the estimated cost of single or annual cumulative purchases in a good, work, or service category is not more than €10,000, purchasing is normally through Vendor Lists, comprised of competitively selected qualified vendors.

 

General principles of competitive contracting

When International Competitive Tendering or Limited Competitive Tendering is used, all tenders are evaluated and compared only on the basis of the evaluation criteria set out in the tender documents. The tender evaluation process up to the award of the contract is, and remains, confidential. Contracts are awarded, within the period of tender validity to the tenderer whose tender has been determined to be substantially responsive; who has submitted the lowest evaluated tender in terms of the specific evaluation criteria set forth in the tender documentation; and who has been determined to be fully capable of undertaking the contract. When quotations are requested, awards are made to the vendor who has been determined to be qualified; whose quotation meets the specified minimum requirements; and who represents the best value for money. No business submitting a tender or quotation is allowed or asked to change its offer, nor required to accept new conditions during evaluation or as a condition of award. The terms and conditions of the contract shall not materially differ from those on which tenders/quotations were invited.


3. Direct contracting and circumstances

Direct contracting for goods, works or services is only applied where the selection of the vendor is fully justified and the purchase satisfies at least one of the following reasons: for standardization of equipment, spare parts and supplies which renders further competition impractical; to purchase items from a particular supplier as a condition of guarantee of performance; where the required goods, works, or services are proprietary and obtainable only from one source; by taking advantage of a special discount arrangement that offers lower prices than otherwise available; as a matter of urgency; or the cost of the purchase is not more than €1,000.

4. Allocation of duties

The Administrative Services Department has the functional authority and responsibility for the Bank’s internal purchasing, carrying out all operations related to the purchase of goods, works or services for the Bank. This centralization of the purchasing operations leads to operational efficiency; corporate understanding of the marketplace and the development of skilled capability; consistent dealings with vendors; economies of scale and the potential for standardization.

 

For control purposes, the Bank has also established a Purchasing Review Committee, which performs a prior review of every contract award estimated to cost more than €50,000; approves vendor lists; and carries out quality and process reviews of awarded contracts.