Selection of Consultancy Services Selection of Consultancy Services

Methods Defined under the World Bank Guidelines

by Arif Hassan

Methods of Procurement – Methods of Procurement – Consultancy Services Consultancy Services

Quality and Cost Based Selection (QCBS) Least Cost Selection (LCS) Selection Based on Consultant’s

Qualifications (SBCQ) Single Source Selection (SSS) Fixed Budget Selection (FBS) Quality Based Selection (QBS) Individual Consultants 

Quality and Cost based Selection Quality and Cost based Selection (QCBS) (QCBS)

Notification and advertising

Short-listing (inform the Bank)

Preparation of RFP (Bank Approval)

Issuance of RFP to short listed firms

Submission of proposals

Opening of Technical Proposals

Quality and Cost based Selection Quality and Cost based Selection (QCBS) (QCBS)

Technical Evaluation (Bank Approval)

Opening of Financial proposals & Evaluation

Selection of best firm

Limited negotiation

Signing of Contract (Bank approval of draft)

Publication of Award

Quality cum cost based selection Quality cum cost based selection (QCBS) (QCBS)

Combining Evaluation

Weightge of Technical Proposal 60%-90% (generally 80%)

Minimum passing score 60%-70%

Technical and Financial scores are combined according to the weightage

Least Cost Selection (LCS)Least Cost Selection (LCS)For standard routine assignments.

- Shortlist firms

- Invite separate Tech & Fin proposals

- Evaluate Technical proposals as pass or fail

- Open Financial proposals of firms passing at technical stage

- Award contract to the firm quoting least cost.

Selection Based on Consultants’ Selection Based on Consultants’ Qualifications Qualifications

For assignments < $ 200,000

expressions of interest are invited

best firm is selected

Technical proposal is invited from the best firm OR Combined technical and financial proposal is invited from the best firm

Contract is negotiated.

Single Source Selection Single Source Selection

Assignments < $ 100,000

Emergency Procurement

Propriety concerns

Contract is negotiated with the best firm

Fixed Budget Selection Fixed Budget Selection Simple Assignment and very well defined TOR

Invite expressions of interest

Prepare shortlist

Evaluate Technical proposals

Open financial proposals

Reject all proposals quoting above budget

Invite the firm giving highest scoring technical proposal for signing the contract

Quality Based Selection Quality Based Selection

Large complex assignments, with downstream impact

invite expressions of interest

prepare shortlist

issue RFP to shortlisted firms

evaluate technical proposals

negotiate a contract with the firm giving the best technical proposal

Example of an Evaluation Criteria

Experience 70Years of establishment experience in regionexperience in sector experience in similar works

Personnel 30

Short-listing Short-listing (Publication of Expression of Interest)(Publication of Expression of Interest)

Information to Consultants - general information - staff-month requirement- evaluation criteria

Standard forms of Technical and Financial Proposals

Terms of Reference

Standard Forms of Contract

Preparation of RFPPreparation of RFP

- Experience 0-10

- Methodology 20-50

- Personnel 30-60

- Training and Skills Transfer 0- 10

- National Participation 0-10

Total 100

Minimum Passing Score is given

Technical Proposal Evaluation CriteriaTechnical Proposal Evaluation Criteria

- A precise statement of objectives;

- An out line of the tasks to be carried out;

- A schedule for completion of tasks;

- Phasing of Assignments

- Training and Skills Transfer

- Support/ inputs provided by the client;

- Outputs required of the Consultant;

Terms of ReferenceTerms of Reference

- scores based on the information given in

the proposal.

- Judgment in interpretation of information

- understanding, innovation, clarity,

responsiveness, value addition, flexibility,

total quality management.

- follow the given criteria

Technical EvaluationTechnical Evaluation

- arithmetic check

- all services costed

- tax exclusive evaluation

- taxes included in recommended cost

- least cost is taken as 100, all other costs are

wieghted accordingly

Financial EvaluationFinancial Evaluation

- short listed firms fails in experience

- a wide range of scores from various

evaluators

- Report contradicts with scores

- CVs not signed

- Proposed personnel not available

- Status of firms’ association not clear

- taxes not given clearly

Generic ProblemsGeneric Problems

- Scope of work

- Methodology

- Work Plan and Activity Schedule

- Staffing

- Special Conditions of Contract

- Staff rates, reimbursable expenses and total contract price (only for QBS, CQS, SSS)

NegotiationsNegotiations

- take precedence over RFP, proposal and negotiations

- Consultants methodology may be attached to the contract

- outcome of negotiations should be incorporated in the contract

ContractsContracts

- Time based (Large)

- Time based (Small)

- Lumpsum (Large)

- Lumpsum (Small)

Types of ContractsTypes of Contracts

Least Cost Selection (LCS)Least Cost Selection (LCS)A Debate A Debate

- least cost incurred to the procuring agency

- no consideration for good technical offers

- lesser authority of the evaluating committee

Least Cost Selection (LCS)Least Cost Selection (LCS)Word of Caution Word of Caution

- very cautious shortlisting

- very detailed terms of reference

- clear evaluation criteria

- technically aware evaluation committee

- cognizance to fail any firm not adequately responsive to the methodology