Updating the World Bank’s Bidder Complaints Process To Meet International Best Practices

This article notes that, although the World Bank overhauled its procurement framework a decade ago, its bidder complaints process – an integral part of that framework – has not been updated to meet international best practices. The current process for bidder complaints affords relatively little transparency and accountability, and has been criticized (including by the U.S. Government Accountability Office) for failing to provide disappointed bidders an effective means of challenging failures in a procurement process. Reforming the Bank’s complaints process could be done by aligning it with international best practices, using (among other things) the benchmarks suggested by the Methodology for Assessment of Procurement Systems (MAPS), which was developed with the support of the World Bank and the Organisation for Economic Co-Operation and Development (OECD) and which is regularly relied upon by the Bank. The complaints processes established by two other multilateral development banks, the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB), also offer important benchmarks for reform. By updating its bid complaints process to meet international best practices, the World Bank could better ensure robust competition in the procurements it funds, bring to light more procurement failures for correction, and reinforce international confidence in the Bank’s important work.

The article concludes by noting that the Bank’s 2015–2016 reform of its procurement framework and bid complaints processes marked a critical step in improving the Bank’s overall procurement procedures. The reform signaled a clear shift in the Bank’s approach to funded procurement. But the reform of the Bank’s procurement framework was only the first step—additional steps, including improvements to the Bank’s complaints process, will be needed to make the Bank’s procurement framework as strong as possible. To align the Bank’s bid complaints process with international best practices, the article notes that the Bank may wish to consider the following reforms:

  • Independent Review: Allow a vendor independent review (by appeal or otherwise) before an independent body (perhaps within the Bank itself, as the EIB and EBRD do) or a court – not just review by the purchasing agency, which may have serious conflicts of interest when asked to review its own actions.
  • Access to the Administrative Record: Afford vendors access to the administrative record, to allow a fair assessment of the claimed agency errors.
  • Set Deadlines: Apply fixed timelines for decision to avoid unnecessary delay, both to the project and to the parties involved.
  • Transparent Process: Afford transparency in the Bank’s review of the complaints process, to ensure the confidence of the complaining party – and the public – in the process.
  • Publish Decisions: Ensure that decisions on bidder complaints are made in writing upon reasoned grounds and an available record, and made publicly, to reinforce public confidence in the Bank’s (and the borrowers’) decisions, and to provide guidance for future procurements.

These reforms could help make the Bank’s complaints process more reliable and so encourage competition in Bank-financed projects, improve procurement outcomes and reinforce public confidence in procurement done with World Bank financing.

This article was published in the Swedish Procurement Law Journal, Upphandlingsrättslig Tidskrift, edited by Andrea Sundstrand at Stockholm University.

Citation: Christopher Yukins & Eli Whitney Debevoise II, Updating the World Bank’s Bidder Complaints Process To Meet International Best Practices, UrT 2026 p. 49, available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7642798.

ABA Committees To Hold Joint Meeting on Developments in International Debarment – February 13, 2020 – Call in

Jessica Tillipman, GWU Law School – Co-chair, ABA SIL Anti-Corruption Committee

On February 13, 2020, at 12:00 noon ET, the American Bar Association (ABA) Section of International Law (SIL) Anti-Corruption Committee will join with the ABA Public Contract Law Section (PCLS) Suspension and Debarment Committee, for an informal lunchtime session on developments in international debarment. The session will be moderated by Assistant Dean Jessica Tillipman, George Washington University Law School, Washington DC.

Christopher Yukins, George Washington University Law School (who co-teaches courses on anti-corruption with Dean Tillipman), will discuss emerging international models for debarment, and the impact that new electronic marketplaces may have on debarment globally.  With regard to the U.S. experience, he has drafted a book chapter with John Pachter and Jessica Tillipman, for a forthcoming book on compliance by Cambridge University Press.  Professor Yukins has also co-written a piece with Professor Michal Kania (U. Silesia – Katowice), comparing debarment in the United States and the European Union.

Pascal Friton, BLOMSTEIN, Berlin

Pascal Friton, a partner in the BLOMSTEIN firm, Berlin, will discuss how the European Union’s member states are addressing exclusion and debarment, drawing on a piece he presented at the Thomson Reuters Government Contracts Year in Review in February 2019.  He also will be speaking on the afternoon of Tuesday, February 18, 2020 at this year’s Year in Review conference.

Collin Swan, World Bank

Collin Swan, of the World Bank’s Office of Suspension & Debarment, will discuss his office’s debarment survey and the office’s ongoing research into other debarment systems (beyond the United States and the World Bank).  See his FCPA Blog post on the survey.

Additional resources

Grace Sullivan, GWU Law

Grace Sullivan, a third-year student at the George Washington University Law School, recently won first prize in the Public Contract Law Journal annual writing contest for her note (which was also accepted for publication in the Journal). Her note analyzes three case studies of foreign contractors debarred by the U.S. government: Chinese telecommunications giants ZTE and Huawei, and Russian cybersecurity firm Kaspersky.  Ms. Sullivan will be presenting on her note at the March 2020 ABA PCLS Federal Procurement Institute in Annapolis, MD.

Dial-in Information:

If you are calling from the US, here are your instructions:

US Dial-in Number (local toll): (515) 606-5440

Access Code: 509353

If you are calling from outside the US, here are your instructions:

International local-toll dial-in numbers:  https://www.freeconferencecall.com/wall/sil_anticorruption/

Link to connect to call via computer: join.freeconferencecall.com/sil_anticorruption

“Modern Ghana” Posting on the World Bank’s New Procurement Framework — Now Effective

New World Bank Procurement Framework Promotes Strengthened National Procurement Systems

By World Bank
Flexible approach will help countries make the best use of public spending

The World Bank’s new Procurement Framework becomes effective tomorrow, July 1, 2016. Aimed at helping countries make the best use of their public spending, the new Framework will enhance the strategic role of procurement in development effectiveness.

“The new Procurement Framework reflects the views, knowledge, and expertise of a wide range of stakeholders from across the globe. The Bank can now offer a more modern and nimble procurement system to help promote sustainable development,” said Hart Schafer, World Bank Vice President for Operations Policy and Country Services .

The new Procurement Framework will allow the World Bank to better respond to the needs of client countries, while preserving robust procurement standards throughout Bank-supported projects. It provides an expanded range of procurement tools to enable a better fit for varying country contexts and client needs.

“With this modernization of the procurement system, the Bank looks forward to working together with its partner countries to strengthen efficiency in public spending and to strengthen procurement systems around the world. This will help assure that public resources are being well used, and countries can better deliver critical services such as education, health, and infrastructure” says Deborah Wetzel, Senior Director of the Governance Global Practice .

The World Bank’s Board of Executive Directors initially approved this new policy framework in July 2015. It governs procurement in Bank-financed projects in 172 countries worth about USD 56 billion. This new Framework is a result of an extensive review and three-year consultation process involving over 5,000 people in 100 countries including partner countries, CSOs, and private sector.

“Reflecting the latest thinking in procurement, including greater use of technology, the new Framework emphasizes greater choice and flexibility, quality, and accountability while enabling greater adaptation to country contexts,” said Robert Hunja, Director, Governance Global Practice .

The new Framework enables the Bank to work more closely with country partners in improving their own procurement systems. Furthermore, under this framework, clients can use the procurement arrangements of other multilateral development partners or of national agencies in some circumstances.

The new Framework will introduce an ICT based tracking and monitoring tool Systematic Tracking of Exchanges in Procurement (STEP) to make procurement processes speedier, while promoting transparency and accountability. The Bank will also step up its approach to resolving procurement related complaints.

http://www.modernghana.com/news/703203/new-world-bank-procurement-framework-promotes-strengthened-n.html?

 

Public Procurement Law Review Publishes Reviews of Multilateral Development Banks’ Procurement Reforms

The PuPPLR Coverblic Procurement Law Review, led by Professor Sue Arrowsmith at the University of Nottingham, has published a very interesting set of essays on procurement developments at the MDBs.  For U.S. lawyers, these are available on Westlaw.

1. All change at the World Bank? The new procurement framework

Public Procurement Law Review 2016 P.P.L.R. 2016, 4, 121-150 Peter Trepte

2. An update on procurement reforms at the African Development Bank

Public Procurement Law Review 2016 P.P.L.R. 2016, 4, 151-163 Vinay Sharma

3. The Inter-American Development Bank: reform to build up and increase the use of national procurement systems in Latin America and the Caribbean

Public Procurement Law Review 2016 P.P.L.R. 2016, 4, 164-171 Adriana Salazar

4. The procurement policies and rules and the procurement activities of the European Bank for Reconstruction and Development (EBRD)

Public Procurement Law Review 2016 P.P.L.R. 2016, 4, 172-178 Jan Jackholt