PSO Support to GEF CIRDA Procurement Activities

1. PSO Support to GEF CIRDA Procurement Activities PSOUNDP Copenhagen Mettelena Herring Joaquin Albiach GEF CIRDA Workshop Addis 2015

2. Scope of Presentation • UNDP PSO – GEF LOU • Establishing Multiple LTAs for Met. Equipment and Services • Access to and Utilization of the LTAs (SOPs) • Brief Overview of Additional Procurement Support outside scope of LOU

3. PSO-GEF LOU Scope: Based on outcome of in-country procurement needs assessments PSO assists in determining: Opportunities for consolidating and standardizing equipment needsand opportunities for leveraging supply markets on the basis of consolidated needs Suitable procurement strategies to meet the identified equipment and service needs Feasibility of developing comprehensive a supply mechanism such as LTAs, equipment and/or services framework agreements Conduct procurement processes leading to development of suitable procurement tools, systems, mechanisms and contracts that will ensure timely delivery of equipment to National Institutions fulfilling the identified requirements. Maintain, manage, upgrade and revamp (when necessary) the resulting procurement tools, systems and mechanisms to ensure a reliable on-going supply chain mechanism to cater for additional requirements as the programme incorporates new beneficiary countries.

4. LTAs: Benefits Simplified business process leading to reduced transaction cost Competitive Prices Consistency in quality Standardization of requirements Reduced delivery lead time

5. Establishment of 2 Long Term Agreements: RFP processwasinitiated in Feb: development of technicalspecs by CIRDA Technical Advisors Ex-anteReview and CPO approvalreceivedmid-June RFP 600187 published June 19th Closing date July 21st 7 Proposalsreceived 2 Proposalspassed min. technical score 490/700: ADCON LTA with WFP also open to UNDP

6. Both LTAs: • Valid for 3 years with possible extension subject to ACP approval • Current Conditions Network (CCN)– A network of AWS’s reporting real-time current surface weather conditions to the NMHS; • Severe Weather Nowcasting Network – A network of ground-based lightning detection sensors (LDS) locating cloud-to-ground and in-cloud lightning flashes, as well as data processing systems, and operational services; • Weather Forecasting Solution – A software solution or data service that can receive data from the CCN and the LDS Network; • Weather and Climate Data Display System – A web browser-based weather and climate observed data and forecast visualization tool that can receive information from the Current Conditions, Severe Weather Nowcasting, and Weather Forecasting Solutions.

7. (Both LTAs cont’d): • EWS Design and Implementation incl a Project Plan and full implementation, installation and training • EWS Operation and Maintenance Services: proposer has to ensure full operation of all systems – this includes any SLAs necessary with 3rd party infrastructure providers, maintenance services and a no-cost warranty on all parts for a min. of one year.

8. Proposal 2: All-in-one AWS: that has 5 sensors in one with fewer moving parts and less installation and maintenance requirements Data Collection Transmission Unit: Lightweight integrated system with storage, quality control and transmission capabilities Early Warning System: a cloud-based system that reduces the need for on-board processing Lighting Detection: Antenna is lightweight and can be mounted on towers

9. Proposal 1: All-in-one AWS: with 4 sensors and additional sensors offered so a more traditional system with a few more moving parts Data Collection and Transmission Unit: modular system that has storage and transmission capabilities but no quality control capability Early Warning System: a cloud-based system that reduces the need for on-board processing Lightning Detection: Antenna is fairly bigger and has some line of sight limitations (also concerns with the exposed copper rings).

10. ADCON: Special permission received from WFP to utilize their ADCON LTA, centrally managed by PSO. LTA valid until Sept. 2017. Standard Agro-Met Stations and Synoptic Met Stations: suggested configurations plus additional sensors Hardware & components such as Data Loggers, Base Stations, poles and guy wires Services: assessments of existing infrastructure; installation and training as well as managing and maintaining weather stations. Volume discounts

12. Access to and Utilization of the LTAs (SOPs): LTA Secondary Bidding: The process of soliciting bids, quotes or proposals from a group of vendors who already hold LTAs for the same type of goods or services.  Considering that the conclusion of the LTA is already based on a thorough screening and competitive process, a secondary competition is a much more simplified procedure that focuses only on the financial offer (if goods are already firmly defined in the LTA); delivery time and/or may include technical offers (if the LTA was based on broadly defined or generic terms).   

13. Access to and Utilization of the LTAs (SOPs): Secondary Bidding Process: • UNDP will provide LTA-holders with the basic set of requirements received from National Counterparts (via UNDP Country Offices) • Vendors will review requirements and initiate the potential project. • Dialogue to validate and clarify requirements. • Vendors will provide initial design and offer in consideration of the ceiling price established in the LTA. • UNDP will evaluate and validate offers and identify the most technically sound, least expensive offer. • UNDP will award the Purchase Order to the vendor.

14. Business Process:

15. All relevant info and docs can be found in the GEF CIRDA Procurement Module: https://intranet.undp.org/unit/bom/pso/SitePages/The%20Express%20Procurement%20and%20LTA%20Resource%20Center.aspx

16. Distribution of responsibilities (I) • Development of technical specifications /requirements / ToRs -> CO/Project. • Review of technical specifications/requirements/ToRs developed by the CO/Project (from a procurement point of view) -> PSO. • Conduct market research and sourcing activities to ensure supplier awareness (market trends, RFI, EoI.) -> PSO and CO/Project. • Development of solicitation documents and tender dossier (evaluation criteria, include the tech specs in the tender document, commercial requirements etc) -> PSO. • Issue tender, manage the solicitation process (advertisement, clarifications etc) -> PSO. • Provide assistance with technical questions during the solicitation process -> CO/Project and PSO.

17. Distribution of responsibilities (II) • Receive offers/conduct bid opening -> PSO. • Conduct preliminary examination -> PSO. • Conduct technical evaluation (evaluation based on tech requirements, price difference) -> CO/Project and PSO. • Conduct financial evaluation -> PSO. • Submit case to Contract Review Committee -> PSO. • Provide Clarifications to Contract Review Committee –> CO/Project and PSO. • Issue Purchase Order (ATLAS) -> PSO. • Manage the contract with the Country Office. (Ensuring the contract is executed as agreed) -> PSO and CO/Project.

18. Advantages and disadvantages • Time (1-2 weeks VS. 2 months) -> Using LTAs • Customization. (Specific requirement not covered in the LTA. IT equipment, water level sensor, some additional sensors etc.) - > Outsourcing to PSO.

19. LessonsLearned • Lessons Learned (I): Malawi. ITB - Meteorological Equipment • Lessons Learned (II): ITB - Hydrological Equipment • Lessons Learned (III): Pakistan. ITB - Automatic weather stations and hydrological equipment (water level sensors).

20. LessonsLearned (I): Malawi – Meteorological Equipment During Technical Evaluation the technical offer from SIAP+Micros was, in principle, rejected. Deviation: Software is based on Windows 95, 98, NT, 2000 XP and 2003 server. These operating systems are old and not supported on new PCs.

21. LessonsLearned (I): Malawi – Meteorological Equipment Minor or Major deviation ? • The type of software was not specified in the ITB. • Technical Evaluation based on technical specifications. • Risk of vendor protest. Minor deviation

22. LessonsLearned (I): Malawi – Meteorological Equipment Lesson learned: The need for developing very clear and detailed specifications that convey the exact requirements

23. LessonsLearned (II): Malawi – Hydrological Equipment • Price difference between the first (SEBA) and second (AGMIN) lowest priced offer. • The price difference comes from different material of the Hydro gauge plates offered by the bidders.

24. LessonsLearned (II): Malawi – HydrologicalEquipment • The price difference for the Hydro Gauge Plates between AGMIN and SEBA was approximately 53%, more than double. (Unit price: $271 vs $126. Total price: $246,519 vs $528,450). • This was, mainly, because the Hydro gauge plates offered by AGMIN were made of anodized aluminium with anticorrosion treatment while the hydro gauge plates offered by SEBA are enamelled sheet steel

25. LessonsLearned (II): Malawi – Hydrological Equipment The type of plate material was not specified in the ITB Lesson learned: The need for developing a more detailed specifications to allow bidders to submit comparable offers

26. LessonsLearned (III): Pakistan. Automatic weather ITB document didn’t specify the warranty conditions/requirements. Committee Review: The procurement unit should have specified in a clearer manner what were the warranty conditions expected by UNDP in the ITB (from a technical and commercial point of view)

27. Mettelena.herring@undp.orgJoaquin.albiach@undp.orgThank you!