“Community Participation in Procurement.” This provision of the Bank’s Procurement Guidelines has been specifically designed to address procurement in Community beneficiary involved projects. It stipulates that procedures, specifications and contract packaging shall be “suitably adapted” to reflect the conditions and capacity of the community, provided they are “efficient and acceptable to the Bank.” This provision allows flexibility in defining acceptable procedures at the community level. As a general rule, procurement should be designed to:
Be simple enough as to be understood and implemented by local staff and the community;
Be sufficiently transparent to permit real competition among suppliers and to facilitate control in the selection of contractors and use of funds;
Use simple, standardized documentation; and
Balance risk versus control/management with efficiency considerations.
The methods of procurement available under community procurement are as follows:
Shopping/DGS&D Rate Contract price based on unit cost database- This method is used for equipment and machinery when there is a need to adopt certain minimum standards of specification, technology or a repeat order. To facilitate consistent standards and comparable price ranges, the contract price agreed upon should be based on established estimates by PCU/PIU as shown in a Unit Cost Database (UCD). These databases will be maintained by the PCU/PIU after carrying out a Floating of Enquiry (FOE). The UCDs should be kept updated and valid and can be useful for communities in the preparation of proposals and in assessing whether a specific supplier is offering a “fair” price.
Shopping /Force Account: Under a community force account, the community implements the subproject using its own resources (skilled and unskilled labour, materials, equipment), and may subcontract part of the subproject. This approach offers several advantages. It is community driven and cost effective (inputs can be provided by the community at below-market costs), and it injects funds into the community (e.g., through the payment of wages and materials).