Bafo (Best & Final Offer)

BAFO
(Best & Final Offer)

INTRODUCTION
In international competitive procurement, subject to prior review, the Bank
may agree to the Borrowers use of BAFO. BAFO is an option under which the
Borrower invites Bidders/Proposers that have submitted Substantially
Responsive Bids/Proposals to submit their BAFO. BAFO may be appropriate
when the procurement process would benefit from Bidders/Proposers having a
final opportunity to improve their Bids/Proposals, including by reducing prices,
clarifying or modifying their Bid/Proposal, or providing additional information.
In particular, BAFO should be used where:
• All Bids/Proposals submitted do not sufficiently address the procurement
requirements;
• Each such Bid/Proposal is in some respect otherwise unclear or deficient;
and
• All Bid/Proposal costs are too high and/or not within the project budget
estimate
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The decision to use BAFO shall be reflected in the PPSD analysis and
development of the Procurement Plan. When the use of BAFO has been agreed
by the Borrower and the Bank, the Borrower shall inform prospective
Bidders/Proposers of this in the respective RFB/RFP document2. At a
minimum, the information shall state that: a) BAFO will be used; b)
Bidders/Proposers are not obliged to submit a BAFO; and c) There will be no
Negotiation following BAFO. The use of BAFO does not apply to Consulting
Services. BAFO can only be used once in a procurement process and cannot be
used in conjunction with Negotiation, each are mutually exclusive.
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BAFO Process & Requirements
Upon completion of the technical and financial evaluation, the Borrower shall
issue to all Bidders/Proposers that have submitted Substantially Responsive
Bids/Proposals a request for their BAFOs. All Bidders/Proposers that are
substantially responsive shall be provided with an opportunity to submit a
BAFO. The request shall include:
a) Notice that evaluations are concluded;
b) Notice that they have an option to submit a BAFO;

c) A deadline for submission of a BAFO that allows a reasonable opportunity
for submission of written BAFO; and
d) Notice that if any BAFO is submitted, it must be received by the date and
time specified.
Requesting a BAFO
Requests for BAFO’s must be in writing. The letter requesting BAFO’s should
contain the following:
a) Specific notice that discussions have been concluded;
b) Notice that this is the opportunity for the Bidders/Proposers to submit a
BAFO;
c) A definite, deadline for submission date and time that allows a reasonable
opportunity for the preparation and submission of the BAFO; and
d) Notice that the final offer must be received at the place designated by the
time and date set in the request and is subject to any provisions dealing with
late submissions, modifications and withdrawals of Proposals set forth in the
solicitation.
The Borrower is responsible for reviewing Bids/Proposals prior to any request
for BAFOs. Significant aspects of these reviews should include ensuring
regulatory compliance, the inclusion of current mandatory provisions/clauses,
and that the terms and conditions are clear, concise, and not subject to
interpretation. With the exception of pricing issues, all major discussion points
on the technical Proposal should be clarified prior to requesting BAFOs from all
Bidders/Proposers who are substantially responsive.
Once clarifications have been sought and BAFOs have been received,
discussions shall not be reopened.
Submission of a BAFO
In submitting a BAFO, a Bidder/Proposer is free to make such technical or
price/cost changes to its earlier Bid/Proposal as it believes will best enhance its
competitive position. However, the Bidder/Proposer is not allowed to reduce
the minimum technical requirements as this would make their Bid/Proposal
non-responsive. Therefore, it should be made clear to Bidders/Proposers,
through the written notification, that they are being asked to submit their
BAFO written revision to their Bid/Proposal and not just to confirm or
reconfirm prior offers. If the Bidder/Proposer chooses to submit a revised
BAFO, the written response must be submitted by the date and time specified
if it is to be considered by the Borrower. If no revised BAFO is received, then

the Borrower should presume that the Bidder/Proposer is happy with their
original Bid/Proposal.
Opening of a BAFO
The opening of a BAFO for a Bid/Proposal will not take place in public, but in
the presence of a Probity Assurance Provider acceptable to the Bank, and this
information must be included in the Probity Assurance Provider’s probity
report.
Evaluation of a BAFO
Upon receipt of the BAFO(s) within the given time frame, the Borrower should
evaluate each Bid/Proposal. Once evaluated the Borrower should be able to
recommend award to a Bidder/Proposer in accordance with the terms and
conditions of the procurement documents and once no objection is received
from the Bank. If the BAFO fails to correct deficiencies/weaknesses which were
pointed out in written or oral discussions, the prior evaluation stands.

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0290022018/original/ProcurementGui
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BAFO

(Best & Final Offer)

In international competitive procurement, subject to prior review, the Bank

Borrower invites Bidders/Proposers that have submitted Substantially

Responsive Bids/Proposals to submit their BAFO. BAFO may be appropriate

when the procurement process would benefit from Bidders/Proposers having a

final opportunity to improve their Bids/Proposals, including by reducing prices,

clarifying or modifying their Bid/Proposal, or providing additional information.

In particular, BAFO should be used where:

• All Bids/Proposals submitted do not sufficiently address the procurement

• Each such Bid/Proposal is in some respect otherwise unclear or deficient;

Bidders/Proposers of this in the respective RFB/RFP document2. At a

minimum, the information shall state that: a) BAFO will be used; b)

Bidders/Proposers are not obliged to submit a BAFO; and c) There will be no

used in conjunction with Negotiation, each are mutually exclusive.

BAFO Process & Requirements

issue to all Bidders/Proposers that have submitted Substantially Responsive

Bids/Proposals a request for their BAFOs. All Bidders/Proposers that are

substantially responsive shall be provided with an opportunity to submit a

BAFO. The request shall include:

a) Notice that evaluations are concluded;

b) Notice that they have an option to submit a BAFO;

for submission of written BAFO; and

contain the following:

a) Specific notice that discussions have been concluded;

b) Notice that this is the opportunity for the Bidders/Proposers to submit a

opportunity for the preparation and submission of the BAFO; and

late submissions, modifications and withdrawals of Proposals set forth in the

for BAFOs. Significant aspects of these reviews should include ensuring

regulatory compliance, the inclusion of current mandatory provisions/clauses,

Bidders/Proposers who are substantially responsive.

discussions shall not be reopened.

In submitting a BAFO, a Bidder/Proposer is free to make such technical or

competitive position. However, the Bidder/Proposer is not allowed to reduce

the minimum technical requirements as this would make their Bid/Proposal

non-responsive. Therefore, it should be made clear to Bidders/Proposers,

BAFO written revision to their Bid/Proposal and not just to confirm or

reconfirm prior offers. If the Bidder/Proposer chooses to submit a revised

if it is to be considered by the Borrower. If no revised BAFO is received, then

information must be included in the Probity Assurance Provider’s probity

evaluate each Bid/Proposal. Once evaluated the Borrower should be able to

recommend award to a Bidder/Proposer in accordance with the terms and

conditions of the procurement documents and once no objection is received

pointed out in written or oral discussions, the prior evaluation stands.

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