Slice and Package

Slice and Package is a procurement planning technique where the buyer determines how to divide, group, and size contract packages for a multi-component project to optimise value for money and competitive participation across the full programme.

What is Slice and Package?

A complex development project, such as a national road rehabilitation programme or a multi-city water supply scheme, involves many works and supply components that could be bundled into one large contract or split into many small ones. Slice and Package is the deliberate analysis and decision about where to draw those lines.

"Slicing" refers to dividing works by geography, phase, or type so that smaller or specialised contractors can participate. "Packaging" refers to combining related items, such as civil works, mechanical equipment, and installation services, into one contract to reduce transaction costs and improve constructability. The World Bank's procurement framework and most other MDB guidelines require that the procurement-plan justify the chosen packaging strategy and that it be designed to maximise competition. Packaging too broadly excludes smaller firms and can reduce competition; packaging too narrowly fragments contracts, increases management burden, and may attract less capable contractors.

The outcome of the Slice and Package analysis is a set of contract packages, each tendered under the appropriate method, whether icb, ncb, or lot-based-bidding, and each sized to suit the expected bidder market.

Why Slice and Package matters for bidders

The packaging decision, made months or years before a tender is published, determines whether your firm is in scope to compete. A package that combines design, supply, installation, and maintenance into one contract may exclude pure equipment suppliers. Conversely, a narrow slice covering only one district may suit a local contractor but be too small for an international firm. Engaging with project task teams during project preparation, before the procurement plan is finalised, is the most effective way to ensure the packaging is structured in a way that suits your firm's profile and capacity.

FAQ

Who decides the Slice and Package structure?

The implementing agency proposes it in the project procurement plan, and the MDB reviews and approves the approach as part of its procurement oversight. For high-risk projects, the MDB may require prior review of the packaging strategy.

Can the packaging be changed after the procurement plan is approved?

Yes, but changes require updating and re-approving the procurement plan. Significant restructuring of packages after bidding has begun is unusual and may require cancellation and re-tender.

Is Slice and Package the same as Lot-Based Bidding?

They are related but distinct. Lot-Based Bidding is a bidding mechanism within a single tender. Slice and Package is the upstream planning decision about how to structure the entire programme into separate tenders in the first place.