Procurement General 1. Procurement for the project would be carried out in accordance with the World Bank’s “Guidelines: Procurement of Goods, Works, and Non-Consulting Services under IBRD Loans and IDA Credits & Grants” dated January 2011 (revised July 2014); and “Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits & Grants by World Bank Borrowers” dated January 2011 (revised 2014); and the provisions stipulated in the Loan Agreement. The World Bank Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credit and Grants dated October 15, 2006 and revised on January 2011, would also apply. Procurement arrangements and capacity assessment 2. The RGA, under the MCTI, would be the main implementing agency. This agency has already implemented the RECRP. A PIU would be established, which would report directly to the Director General of RGA. The PIU would be responsible for all procurement procedures under the project, supported from at least one full-time procurement officer for all procurement. The PIU Director and technical staff have some experience in World Bank procurement, but this is rather limited. A procurement officer experienced in WB procurement would be hired for the needs of the project, and would work in close coordination with the PIU team. The PIU would be supported also by a procurement assistant, as needed. In addition, technical staff from relevant departments within RGA which might be called on sitting in evaluation committee would be trained on their specific role and general principles of Bank procurement rules. 3. A detailed Project Operational Manual (POM) has been prepared based on previous versions used for RECRP and it was reviewed by the Bank. It would be further revised before the project starts. The manual includes procurement methods to be used in the project along with their step–by-step explanation as well as the standard and sample documents to be used for each method, and service standards, responsibilities and accountability of PIU staff and management for carrying out the activities. The procurement staff and all potential members of tender (or bid evaluation) committees would attend the project launch workshop that would be organized by the Bank staff following the signing of the loan agreement. Further, the Bank team would help the project coordinator identify suitable training courses for the PIU existing team. 4. Risk Mitigation: The following measures were agreed to mitigate the risks and maintain the implementing team’s capacity. Table 2: Summary Risk Assessment Risk Mitigation • Limited procurement capacity of • RGA will hire a PIU procurement expert with experience the PIU and insufficient in World Bank financed projects/international knowledge of Bank’s procurement procurement. Selection of the procurement expert is a and consultant guidelines may condition of effectiveness. delay selection/bidding process and contract management Risk Mitigation • Unsatisfactory quality of technical • Preparation of draft technical specifications /terms of designs/ToRs may lead to delays reference before project effectiveness, at least for the in contract implementation and to contracts for which the selection process is to take place in contract amendments the first 12 months of the project implementation; • Close involvement of Bank technical expert in the review of the TOR/ TS and designs; • Bank prior review of critical packages/ assignments. • PIU might be initially • Recruitment of key staff after loan signing so that ToRs, overwhelmed with the number of technical specifications and bidding documents can be the consultants and/or size of prepared early on. contracts to procure and • Strengthening PIU's procurement, technical and contract implement administration capacity via workshops. • The packages in the procurement plan will be sequenced and phased to allow sufficient time for bidding, evaluation and Bank review. • The public officials/technical • Technical staff from relevant departments within RGA will staff, who will be involved in be previously trained on their specific role and general project procurement through principles of Bank procurement rules; tender committees, may not be • Operations Manual will set out the service standards, familiar with the applicable responsibilities and accountability of PIU staff, technical procurement procedures, and may staff management for carrying out the activities. slow down the procurement Furthermore, the Bank team will help the project process coordinator identify suitable training courses for the PIU team; • The order for appointment of evaluation committees shall specify the timeframe by which the evaluation committee should complete evaluation and recommendation of award; • Insufficient technical capacity • Adequate consulting services and technical assistance, within the supervision or other training, knowledge exchange would be provided under the departments on RGA may cause project Component D, as needed; contract supervision delays related • Intensive and close supervision by Bank technical team and to implementation and poor procurement accredited staff in particular; quality of goods, works and services. • Insufficient knowledge of the • PIU staff, and especially the Procurement Expert would latest Procurement and attend procurement training organized by the Bank Consultants Guidelines (January • The Bank’s Procurement Specialist assigned to the project 2011) has provided the PIU with a full set of the relevant, most recent procurement documents, including but not limited to standard and sample bidding documents, proposal formats, evaluation report documents, etc. The Procurement Plan 5. The Borrower, at appraisal, finalized the procurement plan for project implementation, prepared during preparation phase, which provides the basis for procurement methods. It includes the Bank review requirements and thresholds. The procurement plan would be reviewed and agreed between the Borrower and the Bank during negotiations. It would be available as a separate project document at the office of the PIU, and on the Bank's external website. The Procurement Plan would be updated in agreement with the Bank as required to reflect the actual project implementation needs. Procurement of Goods, Works and Non-Consulting Services 6. The following methods may be used for procurement of goods, works and non-consulting services as agreed in the procurement plan: International Competitive Bidding (ICB), National Competitive Bidding (NCB), Shopping (S), and Direct Contracting (DC). Procurement of Works 7. Works procured under this project would include construction and rehabilitation of buildings and putting up concrete markers on part of or all the territory of the country, for the leveling grid stabilization. Procurement will be done using the Bank’s Standard Bidding Documents (SBD) for all ICB and NCB packages. Prequalification would not be used at all, regardless of the size of civil works contracts. Minor works, as relevant, could use Invitation to Quote (ITQ) for Works acceptable to the Bank for contracts less than or equal to EUR 85,000. Procurement of Goods and Non-Consulting Services 8. Goods and non-consulting services to be procured would include IT systems, furniture, IT equipment (hardware and software), purchase of vehicles for motorized levelling, measurements for the REC, gravity meter equipment, measurement of altitude differences and grid stabilization, data acquisition and improvement. Procurement for all ICB procedures would be done using the Bank’s SBDs. Smaller value contracts, as needed, would be procured using harmonized NCB documents for Goods or shopping using ITQ (June 2011), depending on the cost estimate for the package. The standard documents for supply and installation of information systems would be used for the procurement of the software development phases and roll out. Software maintenance for the control center will be procured through direct contracting considering the equipment already in use works with particular software (provided only by one supplier) and any new software would require changes of the whole equipment which is not feasible and costly. Selection of Consultants 9. Consultant services will include preparation of quality assurance system and data manual, data verification and analysis and modeling, preparation of corporate and business planning, individual consultants for entering of backlog data, map conversion and utility map conversion, capacity building, awareness raising and knowledge transfer, updating the ICT strategy. Multiple individual consultants/technical staff will be hired under the project for the entry of data. A sample contract for hiring of these individuals will be cleared by the Bank and used during the project. 10. The following methods may be used for the selection of consultants: Quality and Cost- Based Selection (QCBS), Quality-Based Selection (QBS), Least-Cost Selection (LCS), Fixed Budget Selection (FBS), Selection based on Consultants Qualifications (CQS), Individual Consultant Selection (IC), and Single Source Selection (SSS). The World Bank's Standard Request for Proposals will be used. All Terms of Reference, irrespective of prior/post review status, are subject to Bank’s review and no objection. Training and Training Plan 11. The institutions providing standard training, conducting seminars and organization of study tours would be selected on the basis of analysis of the most suitable program of training offered by the institutions, availability of services, the period of training and the reasonableness of cost. However, consultants hired to deliver training under the Project would be selected in accordance to the selection methods as stipulated in the Consultant Guidelines applicable to the project. An annual training plan would be prepared and agreed with the Bank. It would include information on the title of training, institution that would provide it, and timeline, cost, number, position and names of relevant people to be trained. The training plan would be updated in agreement with the Bank through the duration of the Project at least annually or as required to reflect the actual project implementation needs. Operating Costs 12. The activities to be financed by the project (as defined in the Loan Agreement) would be procured using the implementing agency’s administrative procedures, which were reviewed and found acceptable to the Bank. Post-review Percentages and Frequency. 13. Contracts not subject to Bank’s prior review would be subject to post review by the Bank’s procurement specialist assigned to the project. Post review of contracts will be carried out once per year. At a minimum, one out of five contracts will be randomly selected for post review. Physical inspection will be conducted for at least 10 percent of the contracts. General Procurement Notice 14. The GPN for the Project will be published in the UN Development Business after loan negotiations. Estim ated gory Re viewb y Type - Co st (EUR) Selection Bank Prio r Cate EUR 1 = Me thod / Po st Procurement Plan $1.21555 A. Valuation, Property Taxation and Public Real Estate Land Management I. Investment cost International Valuation Consultant and assesment of the municipalities specialist CS 123,400 IC Prior Entering of back log data and extraction of rental data for residential sample CS 287,936 IC (multiple) Prior Preparation of quality assurance system and data manual CS 8,228 IC Post Rental collection for sample of commercial properties CS 49,360 IC Post Consultancy for data verification and analisys & modeling (1) CS 65,814 IC Post Consultancy for data verification and analisys & modeling (1) - local staff CS 24,680 IC Post Consultancy for data verification and analisys & modeling (2) CS 65,814 IC Post Consultancy for data verification and analisys & modeling (2) - local staff CS 24,680 IC Post Data collection for the building register TS 3,948,830 ICB Prior Consultancy for system implementation in at least 5 municipalities CS 1,645,345 QCBS Prior International Tax Collection Consultant CS 123,400 IC Prior Training for Municipal Office S taff TR 205,668 N/ A Prior Total investment cost 6,573,155 Total cost for Component A 6,573,155 B. E-governance for enabling access to real estate information B1. Integrated Real Estate Cadastre and Registration System Development I. Investment cost Upgrade of existing IT systems and small modifications (s canning of incomming documents, import of CS 43,600 IC Prior Software Prototyping or pilot TS 164,535 CQS Prior Software Development Phase I and roll out (front and back office, alphanumeric and graphic and WEB services for external users, e-signature, digitalisation of incoming docs and integration with digital archive, TS 1,472,584 ICB Prior disaster recovery), incl. licenses Software Development Phase II and roll out (Address Register, Register of S patial Units, Mass TS 534,737 ICB Prior Valuation module, Price Index Module, Fiscal Building Register module) Software Development Phase III - integration with key Government registers, e-commerce, TS 148,080 NCB Prior additional e-services External quality assurance advisor would be hired to support the RGA project manager CS 164,535 CQS Prior Hardware S upply - phase I (emergency) G 164,535 NCB Post Hardware S upply, communication and other equipment and standard licenses (for Data Centers G 3,948,830 ICB Prior and local offices) -phase II LAN/ WAN improvments W 57,587 SH Post Supervision of data center extension CS 16,453 CQS Post Data Center extenssion W 172,761 NCB Prior Active network equipment (firewall, CISCO) G 361,976 ICB Prior Total investment cost 7,250,213 B2. Support to the National Spatial Data Infrastructure. (NSDI) I. Investment cost National Geoportal Upgrade and Implementation - software developemnt TS 205,668 ICB Prior National Business Model, Capacity Building, Awareness, Data Harmonisation with INSPIRETS, QCBS 699,272 QCBS Prior study visits, conference Total investment cost 904,940 B3. Sustainability of the Information Technology department I. Investment cost Technical Assistance to develop and implement sustainable model for IT Sector operation, ICT CS 123,400 IC Prior Total investment cost 123,400 B4. C entral Analogue and Digital Archives and Establishment of BDRC I. Investment cost CS 41,134 CQS Post Detailed Design for Archive building and Disaster Recovery Center + Technical control of the design Supervision of works for Archive building and Disaster Recovery Center CS 41,134 CQS Post Data entering/ scanning specialists (scanning, indexing, quality control, verification) CS 1,974,415 QCBS Prior Construction works for Archive building and Disaster Recovery Center W 1,974,415 ICB Prior Archive shelves for the new building G 765,086 NCB Post Office furniture for the new Archive building G 41,134 SH Post Expert for preservation of archieved data CS 24,680 IC Post IT equipment (hardware and other equipment) G 493,604 NCB Prior Software upgrade and further development G 106,947 NCB Post Supply of licences G 24,680 SH Post Operational costs (consumables, IT equipment repair services, etc) IOC 164,535 IOC Total investment cost 5,651,764 B5. Improving digital data quality I. Investment cost Pilot Implementation in 3 Local Offices and Quality Assurance CS 123,400 IC Prior Data Quality improvement in all local offices CS 1,234,010 IC (multiple) Prior International and local advisors CS 41,134 IC Post Total investment cost 1,398,544 B6. Software development for the register of the unified procedureas for contruction permits I. Investment cost Local consultants (prepartion of technical specifications for software development) CS 41,134 IC Post Local ICT consultant (4) supporting the system in the Business registry (APR) CS 148,081 IC (multiple) Prior QA & QC(consultatnt) CS 41,134 IC Prior Software upgrade and training TS 345,523 NCB Post Supporting hardware (specified in a technical specification for software development) G 493,604 ICB Prior Total Investment C ost 1,069,476 Total cost for C omponent B 16,398,337 C. Institutional Development of the Republic Geodetic Authority C1. Corporate and Business Planning I. Investment cost Preparation of Corporate and Business Planning CS 164,535 QCBS Prior Total investment cost 164,535 C2. National Reference Infrastructure I. Investment cost Procurement of 16 receivers for replacement of the outdated equipment for local cadastre offices G 431,903 ICB Prior Procurement of Time S tation for the Control Center G 3,291 SH Post Software maintenance for the control center G 189,215 DC Prior IT equipment for the Control Center G 12,340 SH Post Leveling grid stabilization for all Serbia territory W 608,778 NCB Prior Company to measure altitude differences (S outh part of Serbia) TS 411,366 NCB Prior Procurement of vehicles for motorized leveling G 180,988 NCB Post Digital levels and invar barcode staves for motorized leveling G 24,680 SH Post Equipment for leveling (tablet pc, laser distance meter, etc… ) G 16,453 SH Post Gravity meter equipment G 106,947 NCB Post Local technical staff for gravity measurements CS 37,020 IC Post Consultant for gravity data processing quality control (QC) CS 14,808 IC Post Consultant for leveling quality control (QC) CS 20,567 IC Post Operating cost (for measure altitude differences and leveling grid stabilization) IOC 82,267 IOC Total investment cost 2,140,623 C3. Completion of the digital mapping program I. Investment cost Local technical staff for cadastre map conversion* CS/TS 2,632,553 IC/NCB Prior Local technical staff for utility map conversion CS 1,069,475 IC (multiple) Prior Total investment cost 3,702,028 C4. Improving services and removal of backlogs I. Investment cost Local technical staff for handling REC cases (back logs) CS 1,069,475 IC (multiple) Prior Construction works and reconstruction for 2 offices (Sopot and Ruma) W 139,854 NCB Post Total investment cost 1,209,329 C5. Real Estate Cadastre (REC) Improvement I. Investment cost Data acquisition TS 3,292,000 ICB Prior Operating costs for data collection IOC 83,000 IOC Total investment cost 3,375,000 Total cost for Component C 10,591,515 D. Project Management and supporting activities D1. Project Implementation Unit I. Investment cost A. PIU Director CS 129,550 SSS Prior B. PIU Assistant director (With IT background) CS 115,257 IC Prior C. Training specialist (Part time) CS 53,556 IC Prior D. M&Especialist (Part time) CS 53,597 IC Prior E . Procurement specialist CS 107,030 IC Prior F. Procurement assistant CS 99,543 IC Prior G. FM S pecialist CS 107,030 IC Prior H. FM Assistant CS 99,543 IC Prior I. Valuation specialist CS 107,030 IC Prior J. Office manager/ Interpreter/ Comunications CS 99,543 IC Prior K. E nviromental S afeguard specialist/ Civil Engineer (Part time during design and construction CS Prior works) 53,597 IC E . Incremental operating costs 389,715 OC Total investment cost 1,414,991 D2. Monitoring and Evaluation I. Investment cost Costumer & Social survey (year 1,3,5) CS 123,400 CQS Prior Annual Financial Audit CS 82,267 LCS Prior Total investment cost 205,667 D3. Public Awareness I. Investment cost Public Awareness Campaign CS 165,000 CQS Prior Total investment cost 165,000 D4. Training I. Investment cost Training TR 637,435 N/A Prior Total investment cost 637,435 D5. Policies and legal development I. Investment cost Legal drafting & Studies CS 123,400 CQ Post Total investment cost 123,400 Total cost for Component D 2,546,493 Grand Total 36,109,500 Preparation fee (0.25%) 90,500 Total cost 36,200,000 PROCUREMENT METHOD THRESHOLDS PRIOR REVIEW THRESHOLDS ICB: =/>EUR 900,000 (Goods); =/>EUR 4.5M All (Works) NCB: EUR 265,000 =/> EUR 450,000 CQS: