Selection of Service Providers

General principles

As with all JBF procurement, the selection of service providers must be based on the offer that provides the best value.  Where a beneficiary wishes to retain a service provider who has not submitted the lowest cost offer, this selection must be adequately justified.

Service Provider Database

The JBF will establish a database of approved Service Providers through an online registration process; these service providers will be vetted through reference checking and rate checking.  Only service providers that are listed on the database are eligible to provide services under the JBF project. Where an applicant wishes to request a proposal from a service provider that is not yet listed, the service provider should be requested to submit a registration form to the JBF for vetting and approval. The Service provider must be approved prior to award of a JBF funded contract.

The JBF will invite services providers to register through advertisements in appropriate channels. In the case of foreign suppliers the JBF will compile a list of names as quickly as possible during the project life, including names of suppliers proposed by the applicants.

Payment to Grantee or Supplier

Grants will generally be payable to the grantee firm or group of firms, and not directly to the service providers. The aim of this approach is to simulate as far as possible a market transaction whereby the enterprise is accountable for receiving funds and making payment for services and goods from its own financial resources.

Performance Under the Supply Agreement

The JBF and/or anchor firm will assist SMEs in the supply chain group to manage the implementation of the services that they have procured.

1. In the event of delays or lack of progress the JBF will assist the grantee to find solutions to improve delivery within the framework of the service agreement.
2. In the event of disputes between the grantee enterprise and the supplier the terms of the service agreement will be the sole reference document to settle such disputes.
3. Failure to resolve a problem of lack of delivery between the enterprise and its service or goods supplier under the service agreement may result in intervention by the JBF.
4. In the event of clear failure to deliver the service provider may be de-accredited (either temporarily or permanently) and would be ineligible to offer services under the JBF. Before such de-accreditation takes place every effort will be made to resolve the cause of the failure to deliver the agreed services.
5. Arbitration in the event of disputes will be conducted in accordance with clause 22 of the model Grant Agreement between the JBF and the grantee (Annex E).
6. Failure to implement is ultimately the responsibility of the grantee enterprise even where the goods or service provider fails to perform.

Selection of Providers

Support in securing a service supplier, such as an introduction or evaluation of price and quality, will be provided as needed by the JBF.

 In order to facilitate contractual arrangements information on standard rates for certain services will be made available, as required, to grantees. In the case of goods the JBF will provide advice on pricing if required.

A service agreement will be entered into between the grantee and the selected service or goods provider. Each service provided will be carried out on the basis of satisfactory terms of reference and a work plan. For simple transactions, such as if goods or services are supplied in one installment, it may be possible to authorise the transaction using a standard invoice and receipt, without the need for a work plan or terms of reference.

The Agreement will contain a description of the services and goods, and information on cost, timing, number of participants, location and terms of payment of services and goods.  To facilitate verification of delivery the agreement will also include one or more selected performance indicators against which service (and goods) delivery will be assessed. Penalties will be spelled out in the Agreement for failure to abide by its provisions, such as breaches of agreed pricing, failure to provide information or for evidence of non-delivery.

Price of Services and goods

The value of services and goods will be based on current, competitive market prices for the quality provided at the point of installation or use. The procedures governing procurement of goods and services are given in Section 2.2

Firms may request assistance from the JBF to prepare terms of reference for service provision. The JBF will advise, if required, on appropriate service providers from the database.