Rated Criteria: Promoting Value in World Bank Procurement
Since 2016, the World Bank’s Procurement Framework has encouraged the use of Rated Criteria -or non-price factors- to evaluate quality, sustainability, and innovative aspects of bids in decision making. This has enabled borrowers to adopt a more strategic approach to procurement, including the use of evaluation criteria that prioritizes fit-for-purpose solutions rather than the lowest evaluated price.
Effective September 1, 2023, the World Bank will require the use of Rated Criteria as the default approach for most international procurements.
There are several reasons behind this decision. Above all, using Rated Criteria more widely will increase borrowers’ flexibility to procure works, goods, and non-consulting services best suited to their specific situation, and provide a more suitable approach.It will also increase willingness of the best suppliers to bid and participate in Bank-financed projects - with the knowledge that their added value will be part of the evaluation, thereby increasing options, global competition, and likelihood for effective market solutions.
Additional advantages of using Rated Criteria in international procurement include:
- A greater use of this approach will further contribute to successful contract outcomes and effective risk management, including managing of environmental and social issues, supply chain disruption, cybersecurity, and global health emergencies.
- It will also contribute to combating bid rigging and reducing the risk of collusion in procurement processes.
- Combined with price and life cycle cost formulas, Rated Criteria provides a truer assessment of value that focuses on quality, sustainability, and other key criteria.
New international procurements advertised on or after September 1, 2023 using a Bank Standard Procurement Document must use Rated Criteria. However, application of Rated Criteria will not be mandatory for:
- Off the shelf goods and educational materials
- Other exception cleared by the CPO on a fit-for-purpose basis
For more details, please visit the official website of the World Bank.