#3. Agree clearly defined responsibilities for sector specialists/technical experts,
Task team leaders and procurement staff in contract management. Implement defined responsibilities.
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It is not clear whether or to what extent support (during the contract management phase) should be provided by Bank procurement staff, Bank task team leaders (TTLs), technical experts, or national institutions that can provide support, whether hands on (project implementation agencies) or through oversight functions (such as a national audit office). In Bangladesh, for example, procurement staff felt that more engagement with contract management represents an oversight and advisory function for national execution, rather than a transfer of responsibility to the Bank. Among Bank staff, there is a need to review and resolve limitations in the present incentive structure, experience, and turnover of TTLs. The role and extent of the Bank's procurement function will need to be considered relative to the roles of other agents in the country.
The role of procurement staff has sometimes taken the place of sector technical specialists, a role that they cannot be expected to cover. There is also ambiguity regarding the role of the TTL. Clarification of these respective obligations per project would ensure that procurement, specifically, would receive adequate resources.
WB: Partially Agree #3. The Bank's procurement policy does not currently include a role for Procurement in contract management. BP 11:0 states that the sector (Task Team Leader) is responsible for reviewing or arranging for a technical expert to review the technical aspects of the projects and their related contracts. The role of the Procurement Specialist is currently limited to procurement reviews. However, it is agreed that the Procurement Specialist role needs to be more clearly defined. A comprehensive review of Bank roles and responsibilities in contract management will be undertaken. This will inform procurement development activities within the proposed new framework for Procurement in World Bank Investment Project Finance. This review will also involve consideration of both the operational and legal aspects of Bank involvement, as well as the opportunities that may be present to support greater development effectiveness in projects.
Action 3: Management to undertake a review of the Bankâs role in contract management that includes the roles of TTLs, sector specialists as well as procurement staff develop revised procurement competencies if needed, including role descriptions for a new procurement operating framework, that may include clearly defined responsibilities in contract management, to the extent that the study above deems this necessary. Develop revised guidelines for TTLs and sector staff to expand their participation as necessary.
Indicator: Roles defined and job descriptions produced for procurement. Guidance prepared for TTLs.
Baseline: Roles on contract management not clear currently for the sector / TTL, for procurement staff, or for client staff.
Target: Bankâs roles in contract management and procurement roles defined. Procurement job descriptions produced and TTL /Sector roles clarified.
Timeline: By FY15
Unchanged from 2016. All actions identified in the Action Plan have been completed.
This recommendation required that a review of Bank's role in contract management be done and roles for sector/TTL, for Procurement staff and for client staff be defined and job descriptions be produced, with guidance for TTLs. The new Procurement Framework has enhanced the role for procurement in contract management.
The Bank Directive: Procurement in IPF and Other Operational Procurement Matters (URL: https://spappscsec.worldbank.org/sites/ppf3/PPFDocuments/Forms/DispPage…) states the roles and responsibilities among OPCS, GGP (PIO Director) and Task teams (headed by TTL, and including procurement accredited staff).
On contract management, the Bank has taken a gradual approach in enhancing the emphasis of contract management in largest and most risky contracts. Following interventions have been done:
First intervention is in Bank Directives which states in Paragraph E.5 that Task teams (headed by TTLs, and including procurement-accredited staff) are responsible and accountable for project-level procurement support and procurement monitoring activities, including the following functions, including "(e) monitoring contract management, including by carrying out physical inspections, and monitoring contractual disputes"
Second intervention is in the Procurement Regulations for IPF Borrowers (URL: https://policies.worldbank.org/sites/ppf3/PPFDocuments/Forms/DispPage.a…) where Annex I Paragraphs 3.6 and 3.7 refers to contract management in order to achieve value for money.
Third intervention is again in the above-mentioned Regulations Annex XI (Contract Management) which is a detailed annex on the topic in question.
IEG is happy to note the progress and views action on this recommendation as complete.
The NPF enhances the role for procurement in contract management. For example, the Procurement Regulations for IPF Borrowers requires Bank borrowers to "determine the appropriate contract type and contract terms taking into account the nature, risk, and complexity of the activity, fit-for-purpose considerations, optimal allocation of risk and liabilities, and the roles and responsibilities of the contracting parties," and to "develop a Contract Management Plan with key performance indicators and milestone events." Monitoring the performance and progress of contracts and reporting are other important features of the Procurement Regulations (see paragraphs 3.6 and 3.7, Annex I, and Annex XI of the Regulations). Guidance on contract management is forthcoming.
Additionally, the Procurement Regulations define the Bank's role in monitoring contract implementation. Paragraph 7.1 (j) of Annex II of the Regulations defines the Bank's procurement monitoring function as including review of contract management plans (including key performance indicators, or KPIs) and ongoing reports of progress based on KPI.
To enable enhanced tracking of large and risky contracts, the Procurement Procedure assigns the Operations Procurement Review Committee (OPRC) a procurement clearance/decision function on progress reports on contract KPIs and/or contract management updated progress reports for such contracts. Team leaders will therefore submit the KPIs and progress reports for review by OPRC.
Finally, the Procurement Directive defines internal roles within the Bank in monitoring contract management, including contract disputes, and assigns responsibilities for this function between Global Practices and GGP (working as task teams) (see paragraph 5.e, Section III.E of the Procurement Directive). To that end, through Annex IV of the Procurement Procedure on Accreditation, contract management has been defined as one of the critical competencies for procurement staff. Staff are now required to demonstrate appropriate expertise, skills, and application in contract management as one of the prerequisites for procurement accreditation.
IEG notes that the new Procurement Framework clarifys and increases Bank attention to support contract management:
â¢Under the NPF Borrowers will continue being responsible for carrying out procurement activities financed by the Bank in accordance with the applicable procurement regulations. This includes, among other activities, managing contracts. (See Section III.A.3.3 and 3.4 of the Procurement Regulations for Borrowers) while, the Bank monitor borrowerâs compliances of its obligations as set out in the loan agreement with the Bank. This includes implementation support towards achievement of the Projectâs development objectives. See Section III.C.1 of the Procurement Directive and paragraph 21 of the OP10.00
â¢Provisions related to how borrowers shall carry out contract management are in the Borrower Regulations, specifically in Annex XI.
â¢With regard to the Bank, ADM are under review, in the Procurement Procedure shared in the Board Package, specifically at Annex 1.2.(g), TLs are responsible for monitoring contract management issues, ensuring key Performance Indicators are met (with the support of Bank procurement staff) and conducting physical inspections. General TTLâs responsibilities are already regulated under the OP10.00, however, both, the Procurement Directive and Procedure define specific procurement related responsibilities between the GGP (procurement staff) and the GPs (TLs).
â¢Guidance notes will be developed in the upcoming months.
IEG is pleased to note the progress on this issue. IEG further awaits: (i) the Guidance notes on the division of responsibilities between the GGP and the GP TTLs and any revised ADM (ii) information on changes in the way contract related communication will be treated within the Bank, and (iii) evidence of enhanced tracking of contract management of the largest and most risky contracts.
As demanded by most stakeholders during the consultation of the World Bank Procurement reform, the new Procurement Framework proposes changes in the way the Bank could get involved in contract management. In particular, the new Procurement Framework proposed that the Bank dedicates more of its procurement resources to support ongoing contract management, particularly for the most significant procurements. Other contracts may be identified for increased contract management support, if justified. Moreover, depending on the procurement method selected, key performance indicators will be set that include regular review by Bank procurement staff. For procurements subject to OPRC review, progress will be reported periodically to the OPRC, enabling continued monitoring of the most significant contracts in the portfolio. In addition, the new Procurement Framework proposes significant changes in the way contract related communications could be treated by the Bank.
Finally, as part of internal regulations the Directive and Procedure of the new Procurement Framework has set clear lines of accountability among all Bank staff involved in a procurement processes. IAD has agreed to provide a technical assistance to review these lines of accountability.
Management is awaiting approval by the Board of the new Procurement Framework (includes expanded contract management) and once agreed the ADM (including roles and responsibilities) will be finalized and issued by Management.