Procurement of Consultancy Services Differences between 2 Selection

Procurement of Consultancy Services

Differences between 2

Selection Methods available • • • Quality and cost based selection Quality based selection Fixed Budget selection Least Cost Selection based on Consultants’ Qualifications Single Source Selection

What to include in the RFP? • • • References, contact points and contract arrangements Description and specification of services required Instructions to Bidders (ITB) and Bid Data Laws, Rules or Regulations under which Procurement is undertaken Selection criteria and the methodology of evaluation Budget for FBS Estimated budget or estimated no. of key staff or inputs (NOT BOTH) for other methods Any qualification criteria Terms and types of contract

Evaluation Criteria • Specific to each individual procurement activity • Some criteria are common to all procurement, such as: – technical competence / expertise; – experience / track record; – cost; – quality / specification; – compliance with requirements of the bid.

QCBS • Most widely used or ‘default’ method • When compromise between quality and cost required • When scope of the assignment could be precisely defined and To. R is well specified and clear • Inputs and costs for staff time, etc could be clearly estimated

Primary Criteria • Relevant experience for the assignment; • Quality of the methodology proposed; • Minimum expected qualifications and experience of the key staff proposed; • Subject to the nature of the assignment, it may also include provisions for training/capacity building of local staff; • Transfer of knowledge may be the main objective of some assignments; in such cases, it should be given a higher weight to reflect its importance.

Apportioning Weightage • Depending on the requirements, assign weightage for each criteria and sub-criteria • Technical and Financial weightage to be decided. • All these to be declared in the RFP

Quality Based Selection - QBS • Appropriate when complex or highly specialised assignments • Innovation and best practices in the field required • Long term impact – feasibility studies, design of dams, etc • Different ways of execution – policy, etc • Normally not used for project-funded procurement

Some aspects of QBS • In RFP, estimated budget is not disclosed • Either only technical proposals are invited or tech. and financial proposals separately • Only highest ranked technical proposal – open the financial proposals • Detailed financial proposal • Negotiation

Fixed Budget Selection - FBS • Used when the assignment is simple • Tasks could be clearly defined • Absolutely limited budget or no flexibility available in resources

Some aspects of FBS • The RFP must indicate the available budget and request the consultants to provide their best technical and financial proposals in separate sealed envelopes, within the stated budget. • Terms of Reference have to be carefully prepared to ensure that the budget and TOR are consistent and realistic • Technical proposals will be evaluated and bidders who pass the minimum technical score will be invited to a public opening of their financial envelopes. • Bidders whose technical proposals fail to meet the minimum technical score will have their financial envelopes returned unopened. • Any financial proposals that exceed the indicated budget shall be rejected. • The Consultant who has submitted the highest ranked technical proposal within the budget will be selected for award of contract.

Least Cost Selection - LCS • Appropriate to use for small value services of a routine nature such as audits, simple engineering design or supervision where well-established practices and professional standards exist. • Technical proposals are examined to ensure minimum qualification scoring • Lowest price among qualified • Has disadvantages • If funds available, adopt QCBS

Selection based on Consultants’ Qualifications (CQS) • This method may be appropriate for very small assignments where the need for a full bid process with submission and evaluation of detailed competitive proposals is not justified. • There is no formalised technical or financial scoring announced and expressions of interest and information on the consultants’ experience and competence relevant to the assignment are requested through an advertisement. • Some criteria to be established so as to ensure that the evaluation is as subjective as possible.

Some aspects - CQS • basic data to establish the legal status and general experience of the consultant • any specific skills, knowledge or experience required for the assignment; • minimum expected qualifications and experience of the key staff proposed. • Points should be allocated - main difference is that they are for internal use only. • Most appropriate consultant will be asked to submit a combined technical and financial proposal.

Single Source Selection - SSS • lacks the benefit of competition in regard to quality and cost • is not transparent in selection, and may encourage unacceptable practices. • Single source selection should only be used in exceptional circumstances and only with the express agreement of IFAD.

In summary Selection method Use when looking for…. Restrictions for use Criteria to disclose Basis for award QCBS Quality and Cost balance None Technical and Financial Highest combined score QBS Highest available quality at any cost Budgetary constraints Technical only Highest technical score LCS Competence at lowest cost None Technical passmark Lowest price meeting technical threshold FBS Quality within a financial limit None Available budget Highest technical score within budget CQS Skills, knowledge and experience Low value only Skills, knowledge and experience Best qualified SSS Continuity/speed/ unique skill, knowledge or experience Low value or exceptional circumstances N/A Negotiation