TA-7844 MON: Road Sector Capacity Development

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The project Name is:

Road Sector Capacity Development Technical Assistance Project

The Project is funded by the Asian Development Bank

It has a team of 11 Consultants attached to it, 6 National and 5 International

It commenced in February 2012 and will be completed by November 2013

What is the Project

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Article 1. Purpose of the Law

The purpose of the Law is to govern matters of planning, organizing, overseeing, and settling disputes pertaining to public procurement of – goods, – works, and – services

with state and local funds and of holding responsible the violators of the law.

PUBLIC PROCUREMENT LAW OF MONGOLIAGENERAL PROVISIONS

"Consulting Services"

"Consulting services" mean expert services provided by the consultant/contractor based on specialized expertise and skills:– as to prepare and implement a project, – conduct training, – provide technical assistance, – conduct a research and analysis, – work out a design, and supervise the

contract execution

PROCUREMENT OF CONSULTING SERVICES

Selecting Consultants 35.1. An individual and/or legal entity may

provide consulting services. 35.2. If a given consulting service involves the

application of multi-disciplinary expertise and specialized personnel, services of a legal entity shall be used.

35.3. If a given consulting service is best provided by an individual with necessary qualification and expertise, those services shall be used.

General Procedure of Selecting Consultants

36.1. The procuring entity shall prepare the terms of reference ("TOR") that define the objectives, expected outcome and other relevant information relating to the service in request.

36.2. TOR along with their amendments shall form an integral part of the contract to be made with a consultant.

36.3. The procuring entity shall make cost estimations of the service in request.

36.4. After preparing the TOR and making cost estimations, the procuring entity shall publish an invitation to submit proposals to be listed as potential consultants through daily and other mass media.

Types of Consulting Services

Preparation Services Implementation Services

Advisory Services

Sector studies Tender documents Strategy and policy

Master plans Procurement assistance Regulation

Feasibility studies Construction supervision

Institutional reform

Design studies Project management Capacity building

Specialist studies Integrated solutions Management and leadership

Training Information technology

Consulting Organizations

The most common arrangements under which consultants engaged in projects are legally organized are:

individual professional practices, general partnerships, limited-liability companies, for-profit corporations, state-owned enterprises, and foundations and nonprofit organizations

Main Considerations in the Selection of Consultants

Selection of consultants is guided by the following principles:

– High quality of services– Efficiency and economy– Competition among qualified consultants from all– eligible countries– Participation of national consultants– Transparency

Preparation and Issuance of the Request for Proposals (RFPs)

Use the standard RFP. The RFP includes:

 letter of invitation; instructions to consultants, including a data

sheet and evaluation criteria; technical proposal standard forms; financial proposal standard forms; TOR; standard form of contract

Recruitment of Consulting Firm - General selection methods

a. Quality- and Cost-Based Selection (QCBS)

QCBS is based on the quality of the technical proposal and the cost of the services to be provided.

b. Quality-Based Selection (QBS)

Quality-based selection (QBS) is a method based on evaluating only the quality of the technical proposals and the subsequent negotiation of the financial proposal and the contract with the consultant who submitted the highest ranked technical proposal.

c. Fixed Budget Selection (FBS)

Fixed budget selection (FBS) is appropriate only when (i) the TOR are precisely defined, (ii) the time and personnel inputs can be accurately assessed, and (iii) the budget is fixed and cannot be exceeded.

d. Least-Cost Selection (LCS)

Least-cost selection is only appropriate for selecting consultants for very small assignments,20 of a standard or routine nature (audits, engineering design/supervision of simple projects, and simple surveys) where well-established practices and standards exist.

e. Consultants’ Qualifications Selection (CQS)

This method may be used for small assignments21 where (i) highly specialized expertise is required for the assignment and recruitment of consulting firms that provide depth of expertise in specific areas is contemplated;(ii) recruitment time is critical and the assignment is, typically, short-term; (iii) few consultants are qualified; and (iv) the preparation and evaluation of competitive proposals is not justified.

f. Single-Source Selection (SSS)

Single-Source Selection (SSS) of consultants does not provide the benefits of competition in regard to quality and cost, lacks transparency in selection, and could encourage unacceptable practices. Therefore, SSS shall be used only in exceptional cases.

Web Sites

www.adb.org www.worldbank.org www.ebrd.org www.fidic www.e-procurement.mn

Thank you