Bidders in IDB-funded projects have both rights and responsibilities for participation, and it is important for U.S. firms to understand these when bidding. Two documents are essential for U.S. firms interested in IDB opportunities: Policies for the Selection and Contracting of Consultants and Policies for the Procurement of Works and Goods Financed by the IDB. These sources outline the rules and procedures that borrowing agencies are required to use when procuring goods and services and can be obtained on the IDB web site at http://www.iadb.org/procurement.

When firms know the rules, they understand that they are responsible for alerting the borrowing country to problems with the specifications or bidding procedures, informing the IDB and contacting the U.S. Executive Director’s Office with concerns about the bid packages. U.S. firms are encouraged to report any discrepancies they find when reviewing loan and bidding documents.

The IDB has published a set of standardized bidding documents that are available online. Although not yet required for all IDB-funded projects, these standard documents can help a U.S. company prepare for the requirements of a bid. All of the procurement-related documents are available on the IDB web site at http://www.iadb.org/procurement.

These guidelines are used in all procurements over the designated thresholds, which generally are $200,000 for consulting services, $300,000 for goods, and $5,000,000 for civil works, but vary by project and country.

A very good way to learn about procurement policies and procedures at the IDB is through its yearly procurement workshops held in Washington, D.C. Information on these workshops can be found on the IDB web site at www.iadb.org/events.

Tenders are announced in local publications and the United Nation Development Business publication, described earlier.

Summary Advice to Prospective Bidders:

Procurement is a complicated subject well beyond the scope this document. However, firms that follow these tips are the most successful:

• Meet and develop relations with borrowers long before tenders are announced
• Obtain critical information through networking
• Use local representation
• Learn the procurement rules
• Train local representatives on IDB procurement rules
• Identify problems with specifications immediately and alert borrowers, the IDB and the U.S. Executive Director’s Office
• Follow bidding documents to the letter
• Comply fully with all requirements
• Protest when necessary
• Be a reliable supplier

Small Contracts:

Procedures for procurement under small contracts may vary greatly from the IDB guidelines. In some cases the borrowing country’s government procurement laws will be used as long as they are not in contradiction of the IDB rules. Usually, this requires the publication of a request for proposal (RFP) in a local newspaper. For these small procurements, especially for consulting contracts, networking is even more important as there may not be any public announcements to respond to. It is important to talk to stakeholders to determine their procurement needs, express interest in being a supplier, and ask about procurement plans and timelines. Although information on small contracts may be more difficult to find, sometimes it is easier to access these opportunities, due to less competition and fewer procurement rules.