Procurement of Consultancy Services

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Transcript Procurement of Consultancy Services

Procurement of Consultancy Services

Differences between

PROCUREMENT OF GOODS & WORKS

product based

open competition (advertise)

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price is major factor detailed specifications (bid documents) single envelope procedure negotiations rare invitation for bids (IFB) bid and performance securities

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SELECTION OF CONSULTING SERVICES knowledge based

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expression of interest followed by selective competition (short list) price is one of the factors general work program (term of reference) two envelope procedure negotiation usual request for proposals (RFP) no securities recommended

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Selection Methods available

• • • • • • Quality and cost based selection Quality based selection Fixed Budget selection Least Cost Selection 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 ToR is well specified and clear Inputs and costs for staff time, etc could be clearly estimated

Primary Criteria

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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

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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 QCBS QBS LCS FBS CQS SSS Criteria to disclose Basis for award

Quality and Cost balance None Technical and Financial Highest combined score Highest available quality at any cost Budgetary constraints Competence at lowest cost None Technical only Technical passmark Quality within a financial limit Skills, knowledge and experience None Low value only Continuity/speed/ unique skill, knowledge or experience Low value or exceptional circumstances Available budget Skills, knowledge and experience N/A Highest technical score Lowest price meeting technical threshold Highest technical score within budget Best qualified Negotiation