Section 1.    Instructions to Bidders

Section 1.   Instructions to Bidders

                                                                                                                                     A.        General

1.         Scope of Bid

1.1          The Procuring Entity indicated in the Bid Data Sheet (BDS), invites bids for the provision of the Services specified in Section 6, Terms of Reference to commence on the date indicated in the BDS.

1.2 The Instructions to Bidders (ITB) should be read in conjunction with the BDS. The subject and procurement reference number are provided in the BDS.

1.3          Throughout this Bidding Document:

(a)     The term “in writing” means communicated in written form with proof of receipt and shall include the methods of communication specified in the BDS;

(b)     If the context so requires, singular means plural and vice versa; and

(c)     “Day” means calendar day.

2.         Source of Funds

2.1          The Procuring Entity has an approved budget towards the cost of the procurement and intends to use these funds to place a contract for the Services for which this Bidding Document is issued.

2.2          Payments will be made directly by the Procuring Entity and will be subject in all respects to the terms and conditions of the resulting contract placed by the Procuring Entity.

3.         Corrupt Practices

3.1          The Government of the Federal Democratic Republic of Ethiopia (hereinafter called “the Government”) requires that Procuring Entities, as well as Bidders and Suppliers under government-financed contracts, observe the highest standard of ethics during the procurement and execution of such contracts. In pursuance of this policy, the Government:

(a)     Defines, for the purposes of this provision, the terms set forth below as follows:

(i)      "Corrupt practice" means the offering, giving, receiving or soliciting, directly or indirectly, of anything of value to influence the action of a public official in the procurement process or in contract execution;

(ii)     "Fraudulent practice" means a misrepresentation or omission of facts in order to influence a procurement process or the execution of a contract;

(iii)     “Collusive practices” means a scheme or arrangement between two or more Bidders, with or without the knowledge of the Procuring Entity, designed to establish prices at artificial, noncompetitive levels; and

(iv)    “Coercive practices” means harming or threatening to harm, directly or indirectly, persons or their property to influence their participation in a procurement process, or affect the execution of a contract.

(b)     Will reject a recommendation for award if it determines that the Bidder recommended for award has, directly or through an agent, engaged in corrupt, fraudulent, collusive or coercive practices in competing for the Contract in question;

(c)     Will debar a Bidder from participation in public procurement for a specified period of time if it at any time determines that the firm has engaged in corrupt, fraudulent, collusive or coercive practices in competing for, or in executing, a contract.

3.2          Furthermore, Bidders shall be aware of the provision stated in Clauses 2.2 and 14.1(e) of the General Conditions of Contract.

3.3 Any Bidder may seek administrative review, in accordance with Section 51 of the Public Procurement Proclamation, of an act or omission by a Procuring Entity, which it considers to be in breach of the Proclamation. Any application for review must be submitted in writing to the head of the Procuring Entity, within five working days from the date the Bidder knew, or should have known, of the circumstances giving rise to the complaint. If the head of the Procuring Entity does not issue a decision within fifteen days, or the Bidder is not satisfied with the decision, the Bidder may submit a complaint to the Public Procurement Agency.

4.         Eligible Bidders

4.1          A Bidder shall:

(a)      Have the legal capacity to enter into a contract;

(b)       Not be insolvent, in receivership, bankrupt or being wound up, not have had their business activities suspended and not be the subject of legal proceedings for any of the foregoing; and

(c)       Have fulfilled their obligations to pay taxes according to the laws of the Federal Democratic Republic of Ethiopia.

4.2          Unless otherwise specified in the BDS, in order to demonstrate compliance with the criteria in ITB Sub-Clause 4.1, a Bidder shall submit with its Bid:

(a)      In the case of Ethiopian Bidders only, its certificate of registration from the mandated public body specified in the BDS demonstrating its registered supplier status; and

(b)       Appropriate documentary evidence demonstrating its compliance, which shall include:

(i)            Its trading licence or equivalent;

(ii)    Its tax clearance certificate and VAT registration, and

iii)   Any relevant professional practice certificates.

4.3          A bidder shall be required to obtain a certificate of registration from the mandated public body referred to in ITB Sub-Clause 4.2, demonstrating registered supplier status, as a condition of contract award.

4.4 A Bidder may be a private, public or government-owned legal entity, subject to ITB Sub-Clause 4.8, or any combination of them with a formal intent to enter into an agreement or under an existing agreement in the form of a Joint Venture (JV), consortium, or association. In the case of a JV, consortium, or association:

(a)      All parties to the JV, consortium or association shall be jointly and severally liable; and

(b)      A JV, consortium or association shall nominate a Representative who shall have the authority to conduct all businesses for and on behalf of any and all the parties of the JV, consortium or association during the bidding process and, in the event the JV, consortium or association is awarded the Contract, during contract execution.

4.5          A Bidder, and all parties constituting the Bidder, shall have the nationality of an eligible country, in accordance with Section 5, Eligible Countries. A Bidder shall be deemed to have the nationality of a country if the Bidder is a citizen or is constituted, incorporated, or registered and operates in conformity with the provisions of the laws of that country. This criterion shall also apply to the determination of the nationality of proposed subcontractors and staff employed for any part of the Contract. All related goods purchased under the contract shall have their origin in an eligible country.

4.6          A Bidder shall not have a conflict of interest. All Bidders found to have a conflict of interest shall be disqualified. A Bidder may be considered to have a conflict of interest with one or more parties in this bidding process, if they:

(a)     Are or have been association in the past, directly or indirectly, with a firm or any of its affiliates which have been engaged by the Procuring Entity to provide consulting services for the preparation of the Terms of Reference, and any other documents to be used for the procurement of the services to be purchased under this Bidding Document;

(b)     Have a relationship with each other, directly or through common third parties, that puts them in a position to have access to information about or influence on the bid of another Bidder, or influence the decisions of the Procuring Entity regarding this bidding process; or

(c)     Submit more than one bid in this bidding process. However, this does not limit the participation of subcontractors in more than one bid, or as Bidders and subcontractors simultaneously.

4.7          A Bidder that has been excluded from participating in public procurement in accordance with ITB Sub-Clause 3.1(c), at the date of the deadline for bid submission or thereafter, shall be disqualified.

4.8          Government-owned enterprises in the Federal Democratic Republic of Ethiopia shall be eligible only if they can establish that they are legally and financially autonomous and operate under commercial law and that they are not a dependent agency of the Procuring Entity.

4.9          Bidders shall provide such evidence of their continued eligibility satisfactory to the Procuring Entity, as the Procuring Entity shall reasonably request.

5.         Qualification of the Bidder

5.1          The qualifications of the lowest evaluated Bidder will be assessed as part of a post-qualification in accordance with ITB Clause 33.

5.2          In the event that pre-qualification of potential Bidders has been undertaken, only bids from pre-qualified Bidders will be considered for award of Contract. These qualified Bidders should submit with their bids any information updating their original pre-qualification applications or, alternatively, confirm in their bids that the originally submitted pre-qualification information remains essentially correct as of the date of bid submission. The update or confirmation should be provided in the Qualification Form in Section 4, Bidding Forms.

                                                                                                                     B.        Bidding Document

6.         Contents of Bidding Document

6.1          The Bidding Document consists of Parts 1, 2, and 3, which include all the Sections indicated below, and should be read in conjunction with any addenda issued in accordance with ITB Clause 8.

PART 1 Bidding Procedures

·       Section 1. Instructions to Bidders

·       Section 2. Bid Data Sheet

·       Section 3. Evaluation and Qualification Criteria

·       Section 4. Bidding Forms

·       Section 5. Eligible Countries

PART 2 Schedule of Requirements

·       Section 6. Terms of Reference

PART 3 Contract

·       Section 7. General Conditions of Contract (GCC)

·       Section 8. Special Conditions of Contract (SCC)

·       Section 9. Contract Forms

6.2          Any Invitation to Bid or Invitation to Pre-qualify issued by the Procuring Entity is not part of the Bidding Document.

6.3 The Procuring Entity is not responsible for the completeness of the Bidding Documents and their addenda, if they were not obtained directly from the Procuring Entity.

6.4 The Bidder is expected to examine all instructions, forms, terms, and requirements in the Bidding Document. Failure to furnish all information or documentation required by the Bidding Document may result in the rejection of the bid.

7.         Clarification of Bidding Document

7.1          A prospective Bidder requiring any clarification of the Bidding Document shall contact the Procuring Entity in writing at the Procuring Entity’s address indicated in the BDS. The Procuring Entity will respond in writing to any request for clarification, provided that such request is received no later than ten (10) days prior to the deadline for bid submission. The Procuring Entity shall forward copies of its response to all Bidders who have acquired the Bidding Document directly from it, including a description of the inquiry but without identifying its source. Should the Procuring Entity deem it necessary to amend the Bidding Document as a result of a clarification, it shall do so following the procedure under ITB    Clause 8.

8.         Amendment of Bidding Document

8.1          At any time prior to the deadline for submission of bids, the Procuring Entity may amend the Bidding Document by issuing addenda.

8.2 Any addendum issued shall be part of the Bidding Document and shall be communicated in writing to all who have obtained the Bidding Document directly from the Procuring Entity.

8.3 To give prospective Bidders reasonable time in which to take an addendum into account in preparing their bids, the Procuring Entity may, at its discretion, extend the deadline for the submission of bids, pursuant to ITB Clause 22.2.

                                                                                                                   C.        Preparation of Bids

9.         Cost of Bidding

9.1          The Bidder shall bear all costs associated with the preparation and submission of its bid, including any visits to the Procuring Entity, and the Procuring Entity shall not be responsible or liable for those costs, regardless of the conduct or outcome of the bidding process.

10.     Language of Bid

10.1       The bid, as well as all correspondence and documents relating to the bid exchanged by the Bidder and the Procuring Entity, shall be written in English. Supporting documents and printed literature that are part of the bid may be in another language provided they are accompanied by an accurate translation of the relevant passages into English, in which case, for purposes of interpretation of the bid, such translation shall govern.

11.     Preparation of Bids

11.1       Bidders are required to prepare and submit a single bid containing both technical and financial information.

11.2                                                                                                                                                                                                                 A pre-bid meeting will be held where indicated in the BDS. Attendance at the pre-bid meeting is optional.

12.     Documents Comprising the Bid

12.1       The bid shall comprise the following:

(a)     The Bid Submission Sheet, in accordance with ITB Clause 13;

(b)     A Bid Security, in accordance with ITB Clause 19;

(c)     Written confirmation authorising the signatory of the bid to commit the Bidder, in accordance with ITB Sub-Clause 20.2;

(d)     Documentary evidence in accordance with ITB Clause 16 establishing the Bidder’s eligibility to bid;

(e)     Documentary evidence in accordance with ITB Clause 17 establishing the Bidder’s qualifications to perform the contract if its bid is accepted; and

(f)      Any other document(s) required in the BDS.

13.     Bid Submission Sheet and Price Schedule

13.1       The Bidder shall submit the Bid Submission Sheet using the form provided in Section 4, Bidding Forms. This form must be completed without any alterations to its format, and no substitutes shall be accepted. All blank spaces shall be filled in with the information requested.

13.2       The Bidder shall submit the Price Schedule for Services, using the format provided in Section 4, Bidding Forms.

14.     Bid Prices and Discounts

14.1       The price to be quoted in the Bid Submission Sheet shall be the total price of the bid, excluding any discounts offered.

14.2       The Bidder shall quote any unconditional and conditional discounts and the methodology for their application separately in the Bid Submission Sheet.

14.3       Prices quoted by the Bidder shall be fixed during the Bidder’s performance of the Contract and not subject to variation on any account, unless otherwise specified in the Special Conditions of Contract. A bid submitted with an adjustable price quotation shall be treated as non responsive and shall be rejected, pursuant to ITB Clause 30.

15.     Currencies of Bid

15.1       Prices shall be quoted in Ethiopian Birr.

16.     Documents Establishing the Eligibility of the Bidder

16.1       To establish their eligibility in accordance with ITB Clause 4, Bidders shall complete the eligibility declarations in the Bid Submission Sheet, included in Section 4, Bidding Forms and submit the documents required by ITB Clause 4.2.

17.     Documents Establishing the Qualifications of the Bidder

17.1       To establish its qualifications to perform the Contract, the Bidder shall complete and submit:

(a)     The Qualification Form provided in Section 4, Bidding Forms; and

(b)     The information and documents stated in Section 3, Evaluation and Qualification Criteria.

18.     Period of Validity of Bids

18.1       Bids shall remain valid for the period specified in the BDS after the date of the bid submission deadline prescribed by the Procuring Entity. A bid valid for a shorter period shall be rejected by the Procuring Entity as non-compliant.

18.2       In exceptional circumstances, prior to the expiration of the bid validity period, the Procuring Entity may request Bidders to extend the period of validity of their bids. The request and the responses shall be made in writing. If a Bid Security is requested in accordance with ITB Clause 19, it shall also be extended for a corresponding period. A Bidder may refuse the request without forfeiting its Bid Security. A Bidder granting the request shall not be required or permitted to modify its bid.

19.     Bid Security

19.1       Unless otherwise specified in the BDS, the Bidder shall furnish as part of its bid, a Bid Security in original form and in the amount and currency specified in the BDS.

19.2       The Bid Security shall:

(a)     At the Bidder’s option, be in the form of cash, a certified cheque or payable order, bank draft, letter of credit, or an unconditional bank guarantee. Securities issued by foreign banks or financial institutions shall be counter-guaranteed by an Ethiopian bank;

(b)     Be substantially in accordance with the form of bid security included in Section 4, Bidding Forms, or other form acceptable to the Procuring Entity;

(c)     Be payable promptly upon written demand by the Procuring Entity in the case that any of the conditions listed in ITB Clause 19.5 are invoked; and

(d)     Remain valid for a period of 28 days beyond the original validity period of bids, or beyond any period of extension subsequently requested under ITB Clause 22.2;

19.3       If a bid security is required, any bid not accompanied by a substantially responsive Bid Security, shall be rejected by the Procuring Entity as non-responsive.

19.4       The Bid Security of unsuccessful Bidders shall be returned as promptly as possible once the successful Bidder has signed the Contract and provided any required Contract Security.

19.5       The Bid Security may be forfeited:

(a)     If a Bidder withdraws its bid during the period of bid validity specified by the Bidder on the Bid Submission Sheet, except as provided in ITB Sub-Clause 18.2; or

(b)     If the successful Bidder fails to:

(i)               Sign the Contract in accordance with ITB Clause 37;

(ii)       Furnish any Contract Security required in accordance with ITB Clause 38; or

(iii)      Accept the correction of its bid price pursuant to ITB Sub-Clause 29.4.

20.     Format and Signing of Bid

20.1       The Bidder shall prepare one original of each of the documents comprising the bid as described in ITB Clause 12 and clearly marked “ORIGINAL”. In addition, the Bidder shall submit copies of the bid, in the number specified in the BDS and clearly mark each of them “COPY”. In the event of any discrepancy between the original and the copies, the original shall prevail.

20.2       The original and all copies of the bid shall be typed or written in indelible ink and shall be signed by a person duly authorised to sign on behalf of the Bidder. This authorisation shall consist of a written confirmation as specified in the BDS and shall be attached to the bid. The name and position held by each person signing the authorisation must be typed or printed below the signature. All pages of the bid, except for unamended printed literature, shall be signed or initialed by the person signing the bid.

20.3       Any interlineations, erasures, or overwriting shall be valid only if they are signed or initialed by the person signing the bid.

                                                                                              D.        Submission and Opening of Bids

21.     Sealing and Marking of Bids

21.1       The Bidder shall enclose the original and each copy of the bid, in separate sealed envelopes, duly marking the envelopes as “ORIGINAL” and “COPY.” These envelopes containing the original and the copies shall then be enclosed in one single plain envelope securely sealed in such a manner that opening and resealing cannot be achieved undetected.

21.2       The inner and outer envelopes shall:

(a)     Bear the name and address of the Bidder;

(b)     Be addressed to the Procuring Entity in accordance with ITB Sub-Clause 22.1;

(c)     Bear the Procurement Reference number of this bidding process; and

(d)     Bear a warning not to open before the time and date for bid opening.

21.3       If all envelopes are not sealed and marked as required, the Procuring Entity will assume no responsibility for the misplacement or premature opening of the bid.

22.     Deadline for Submission of Bids

22.1       Bids must be received by the Procuring Entity at the address and no later than the date and time indicated in the BDS.