Preparing EOI and RFP Expression of Interest EOI

Preparing EOI and RFP

Expression of Interest (EOI) n EOI for short listing firms is requested for Consulting services estimated more than million NRs (as per PPR) 2 n International EOI for more than 100 million NRs n Advertisement(PPA Sub-clause 30 and PPR sub-clause 70) l least 15 days notice in National news paper l On website of concerned ministry or PPMO 2

Expression of Interest (EOI) n Advertising for Expression of Interest (EOI) a) General, Procurement Notice to be prepared and published in UNDB online and Development Gateway’s dg Market b) Advertise in national gazette , national newspaper, websites c) for contracts expected to cost more than $200, 000 shall be advertised in UNDB online and dg Market n EOI Notice only or EOI document to be prepared and issued 3

EOI Notice/Document n Notice should include: • Name & address of client; • Project details & Fund source • Qualification of Applicant for EOI • Applicant firm’s details e. g organization, personnel, lead partner in case of JV • Similar experience of last 7 years for firms and 4 years for individual, • CV of Key personnel to be involved in the assignment (not required in ADB, IDA except CQS method. • Estimated duration of the assignment

EOI Notice/Document n Notice should include: • Information that only short listed consultant will be eligible for submission of proposal • Documents to be submitted by the applicant, • EOI preparation procedure, place& date of submission, • contact address of the public entity

Short-listing § Short list shall compromise 3 - 6 firms(PPA) § Should be based on predetermined qualification, experience and capability criteria. Criteria should not be changed after EOI applications are received. § In case International EOI shortlist should cover firms from different countries, background and one national firm. 6

Short-listing n In donor funded projects shortlist should have wide geographic coverage , no more than two firms from one country, and at least one firm from developing countries unless qualified firm not identified, § The Short list for firm’s shall not include individual consultant renowned firms who have not submitted EOI can be included in the shortlist § If 3 firms are not shortlisted, call for re- invitation of EOI applications 7

Short-listing § Information regarding the shortlist decision should be given to all the EOI applicants § In case of International EOI , preference should be given to firms applying in JV with national firms § In case of evaluation criteria for capacity , the turnover requirement should be limited to 150% of the assignment estimate. § If any EOI applicant seeks information regarding the reason for not being in the shortlist then the information should be given within 5 days. Final EOI Document (1). doc

Short-listing Selection Criteria[Out of 100%]Score a) ADB Standard EOI Format i. Eligibility Requirement (Pass/Fail) ii. Management Competence (10 -20) • qualifications and relevant experience of the lead firm’s director or manager assuming Project responsibility • Benefit of association or joint venture 9

Short-listing Selection Criteria ii) Management Competence contd. – Management coordination of joint venture – Quality assurance – Dealing with staff and quality performance and complaints iii) Technical Competence (60% - 80 %) iv) Geographical Competence (10%-20%) eoiconsulting-firms-20131114. doc

Request for Proposal (RFP) The RFP is issued to all shortlisted firms & it includes: § Letter of Invitation § Instructions to Consultants § Data Sheet § Technical Proposal- standard Forms § Financial Proposal- Standard Forms § Terms of Reference (TOR) § Standard Forms of Contract 11

RFP Letter of Invitation § § § § Project Details Source of Fund List of short-listed firms Selection method client details; date time and address for submission Request for confirmation of receipt of LOI and intention to submit proposal 12

RFP Instructions to Consultants n Introduction n Fraud and Corruption n Conflict of interest n Proposal Validity n Clarification & amendment of RFP doc. n Preparation of proposal (Technical &Financial) n Submission, receipt and opening of proposal n Evaluation of proposals (Technical &Financial), n Negotiations and award of contract

RFP Instructions to Consultants § Data Sheet gives information on: Data Sheet. docx • • • client details ; method of selection; pre-proposal conference; language; permitted associations; Key staff information; payment currency; copies of proposal; evaluation criteria; submission & opening of proposal; evaluation weight age for TP and FP proposals; formula for financial score Address for negotiation & Expected date of start

RFP Standard Forms § Technical Proposal 1. Technical proposal Submission Form 2. Consultant’s Organization and Experience 3. Comments /Suggestions on TOR , Counterpart Staff & Facilities provided by the Client 4. Approach , methodology , and Work Plan 5. Team Composition/Task Assignment/Summary CV information 6. Curriculum Vitae format 7. Personnel Schedule 8. Work Schedule

RFP Standard Forms § Financial Proposal 1. Financial proposal Submission Form 2. Summary of Costs 3. Breakdown of Remuneration 4. Breakdown of Reimbursable Expenses 5. Miscellaneous Expenses

RFP Evaluation Criteria n Purpose of Evaluation Criteria • Fixes measures for evaluation proposal • Reference to Committee members for evaluation of proposals so should not be ambiguous. • Should facilitate ease in evaluation • Ensures fixed selection criteria that will not be influenced by the proposals received • Ensures short listed consultants that the evaluation process is fair. 17

RFP Evaluation Criteria (PPR 71) § Marking Weightage for evaluation of proposals a) Technical Proposal : 80 b) Financial Proposal : 20 § Mark Distribution Technical proposal ( 100) a) Firm’s Specific Experience : 0 to 25 % b) Methodology : 20 to 35% c) Key Personnel : 30 to 60% d) Transfer of knowledge : 0 to 10% e) Participation by nationals : 0 to 10% (Not applicable for National Bidding) Sub criteria's to be kept to the essential only , generally three. 18

RFP Evaluation Criteria (PPR 71) n Mark Distribution Technical proposal ( 100) a) Firm’s Specific Experience : 0 to 25 % b) Methodology : 20 to 35% c) Key Personnel : 30 to 60% d) Transfer of knowledge : 0 to 10% e) Participation by nationals : 0 to 10% (Not applicable for National Bidding) Sub criteria's to be kept to the essential only , generally three. § Pass mark should be mentioned § RFP document should mention that the Key Personnel involved in the firm’s work in hand 19

RFP Standard Forms of Contract § Lump Sum Contracts § Time Based Contracts § Performance Based Fee Paying Contracts Agreement based on the condition that the consultant shall provide his services agreed in the contract when called for as required § Percentage Contracts - inspection of goods, architect's services, supervision or monitoring service § Indefinite Delivery Contracts - when specific work load unknown but services are required 20

Lump Sum Contracts § Used for assignments in which the scope, service period and required output are precisely specified § Contract price is fixed for the contract period normally with no price or physical contingencies. § Fixed sum payments are made in accordance with agreed schedule on delivery of agreed outputs. § A lump sum contract transfers cost risk to the consultant. However, it can increase risk of quality to the Client due to the fixed fee and incentive to the consultant to reduce input to maximize the profit. 21

Lump Sum Contracts § The main advantage of this type of contract is that it is easy to administer. § Lump Sum contracts are often used for simple and clearly defined assignments such as: ü Feasibility Studies ; ü Environment Studies; ü Detailed design of a standard structures ; ü Preparation of Bid documents, preparation of data base and surveys 22

Time Based Contracts § Used when period of consultancy services cannot be precisely predicted as construction supervision, management of large professional organizations or design of complex structures § This type of contract provides budget ceiling specified in the Contract and could include provisions for price and physical contingencies, etc. § The amounts are based on schedules which give details on inputs (staff, and other costs) 23

Time Based Contracts • Payment is based upon an hourly, daily or monthly rate, plus reimbursable expenses using actual expenses or as per agreed–upon unit prices. • The duration and quantity of services may depend on variables beyond the control of the consultants or the services are related to activities to be performed by third party e. g. Construction Supervision • Time based contracts transfer cost risk to the Client and so requires close supervision of the consultants 24

Contract n General Contents: Form of Contract General Conditions of Contract Special Conditions of Contract Appendices i. iii. iv. • • Description of Services; Reporting Requirement Personnel Schedule Cost Estimates in Foreign Currency/ Local Currency Services , Equipment to be provided by the Client Form of Advance Payment Bank Guarantee Dispute Notification Form Agreed minutes of negotiation 25 TP Methodology ?