National Shopping

National Shopping is the domestic-only variant of the shopping method authorised under MDB-financed projects, where the implementing agency solicits written price quotations from suppliers based within the borrowing country to fill low-value procurement needs quickly and economically.

What is National Shopping?

National Shopping follows the same simplified mechanics as shopping: written quotations from at least three suppliers, award to the lowest technically acceptable price, and no formal bidding documents or bid security required. The critical boundary is nationality: all invited suppliers must be registered and operating in the borrowing country. This makes National Shopping distinct from international-shopping, which must draw at least two suppliers from different countries.

MDB guidelines permit National Shopping when the goods or minor works are available from domestic sources at competitive prices and when importing them would be impractical or unnecessary. It is typically used for very small contracts, often below $50,000 to $100,000, within the project's procurement-plan. Because the pool is confined to domestic firms, National Shopping also functions as a de facto domestic-preference mechanism for the smallest contract categories.

Why National Shopping matters for bidders

For domestic suppliers in MDB borrowing countries, National Shopping represents a consistent stream of small, fast-moving contracts with very low bid preparation costs. The informal nature of quotation solicitation means personal relationships with implementing agencies, project management units, and government buyers are often decisive. Keeping your business registered, maintaining current pricing lists, and being responsive to short-notice quotation requests are the practical disciplines that win these contracts.

FAQ

Can a foreign firm win a National Shopping contract?

No. National Shopping is restricted to suppliers registered and operating in the borrowing country. Foreign firms need to compete through ICB, NCB, or International Shopping.

Does National Shopping appear in published notices?

Individual National Shopping contracts are not typically published as procurement notices. They may appear in the project's procurement plan on the MDB portal, but quotation requests go directly to selected suppliers.

What happens if fewer than three domestic quotations are available?

If the implementing agency cannot source three responsive quotations from domestic suppliers, it should document the effort and may need to switch to International Shopping or seek MDB guidance before proceeding.