CONSULTING SERVICES PROCUREMENT AND SELECTION AUGUST 2013 PRESENTATION

CONSULTING SERVICES AN OVERVIEW & EVALUATION

PROCUREMENT & SELECTION

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What is & Why Procurement ?

The Science/Art of acquiring works, goods and

services in an efficient and effective manner, at the

best possible cost, in the right quantity and quality,

at the right time, in the right place and for the

benefit or use of a government, entity,

corporation or individual via a contract

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CONSULTING SERVICES OBJECTIVE

To Obtain a High-Quality Consulting Services. Allow

for that most effective, efficient & economic use of

resources.

OVERVIEW

Consultancy Services usually means services of a professional nature provided by consultants.

A consultant uses their professional skills and experience to do, designs, provide technical advice, undertake studies, manage projects, etc.

Consulting services may encompass a wide rage of disciplines and usually a combination of disciplines and skills are required to deliver a service

OVERVIEW- TYPES OF SERVICES

PROJECT SERVICES

Preparation Implementation Advisory

Sector Studies Tender Documents Capacity Building

Master Plans Procurement Services Information Technology

Feasibility Studies Construction Supervision Change Management

Design Studies Project Management

Specialist Studies training

OVERVIEW- Service Requirements

High Standard and Quality

Impartial, independent from any affiliation

that could lead to a conflict of interest

Be proposed, awarded, administered, &

executed to the highest ethical standards

CONFLICTS OF INTEREST

Category #1: Conflicting Activities

Downstream procurement of Goods, Works & Services (not including Services related to professional Assignment).

For example a consultant specifying equipment or designing works in such a way to create a competitive advantage to them or affiliates.

Category #2: Conflicting Assignments

Conflicting assignments by nature, in which the consultant could bias their advice to be consistent to the findings of another assignment. For example a consultant carry our an environmental audit of a project they designed.

CONFLICTS OF INTEREST Category #3: Conflicting Relationships

Consultants (including their personnel and sub-consultants) who have a business or family relationship with a member of the Procuring Entitys staff who are directly or indirectly involved in any part of: (i) the preparation of the TOR for the contract, (ii) the selection process for such a contract, or (iii) supervision of such a contract, may not be awarded a contract, unless the conflict stemming from this relationship has been resolved in the appropriate manner.

Category #4: Conflicting Clients

Consultants working simultaneously for two or more clients whose interest are in conflict. For example a Consultant working as the Quantity Surveyor for the Client and a Contractor.

SELECTION PROCESS: OVERVIEW

I. Consultants are selected based on a competitive process

II. Selection is subject to an evaluation & comparison of technical and financial proposals or in some cases only a technical proposals and qualification information

METHOD OF SELECTION

Quality & Cost Based Selection (QCBS)*

Least Cost Selection (LCS)*

Selection Based on Consultants Qualifications (CQS)

Quality Based Selection (QBS)

Selection under a Fixed Budget (FBS)

Single Source Selection (SSS)

MAIN FEATURES OF QCBS

Both quality & cost aspects taken into account

Allows to determine the right weight to be given to quality vs. cost:

T - 80%

F - 20%

N = T x N(tech) + F x N(fin)

Rejection of technical proposal if N(tech) < min. technical score required

QCBS suitable for:

the type of service required is common and not too complex;

the scope of work can be precisely defined & TOR clear & well specified;

Staff time & other inputs can be estimated with reasonable precision;

the risk of undesired downstream impacts is quantifiable and manageable;

capacity-building program easy to estimate in duration and staff time

OTHER METHODS OF SELECTION

Least Cost Selection (LCS)

Standard / routine assignment

Well-established practices / standards

Rejection of technical proposals scored < min. technical score required

Award to the firm with the least cost & a technical score > min. technical score required


Quality Based Selection (QBS)

complex

High downstream impact

Assignments can be carried out in multiple ways (non comparable)

Award to the firm with the highest technical score

Cost is not a factor of selection

Negotiations of technical & financial proposals


Selection based on Consultants Qualification (CQS)

Small assignment or emergency situations declared by the Borrower and recognized by the Bank

Need for issuing a RFP and competitive proposals not justified

Request Expression of interest on relevant experience & competence

Select the most qualified firm for the assignment

Cost is not a factor of selection

Firm will prepare & submit technical & financial proposals

Evaluate technical & financial proposals

Negotiate the contract & award


Single Source Selection (SSS)

Natural continuation of previous work

Emergency

Very small assignment

only one firm has experience of exceptional worth

Make sure SSS is well justified & proven

Make sure price is reasonable

Make sure contract is well balanced


QBS QCBS CQS SFB LCS

Quality

Cost COST

QUALITY

EXPRESSION OF INTEREST

[SHORT LISTING]

All Interested

Bidders Invited

All Interested

Bidders Invited

Few Proposals from

Shortlist

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[SHORT LISTING] Why Shortlist Consultants ?

Time Consuming &

Expensive to evaluate all

proposals from all

consultants

Proposals Intellectual in

Nature

Minimum of # of

proposals from qualified

consultants to the RFP

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[SHORT LISTING] Advertisement/Vendor Data Base

Concise

Request only the necessary information

Brief description of TOR

Receipt EOI

Review

Firm Capability

General Qualifications

Specific Experience

Potential COI

Shortlist

Issue RFP

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REQUEST FOR PROPOSAL EVALUATIO


Prepared by Procurement

Officer

REQUEST FOR PROPOSALS [RFP] Section 1: Letter of Invitation

Section 3: Technical Proposal

Standard Forms

Section 2: Instructions to

Consultants (ITC) & Bid Data

Sheet

Section 6: Standard Form of

Contract & Special

Conditions of Contract

Section 5: Terms of Reference

Section 4: Financial Proposal

Standard Forms

REQUEST FOR PROPOSALS [RFP]

Letter of Invitation (LOI)

States the Intention of the Employer to

enter into a contract for a given

assignment.

Invites the shortlisted consultants that to

submit a proposal for the assignment

State method of selection

List short listed firms


Instruction to Consultants (ITC)

The ITC contains all information and

instructions that it required to prepare a

responsive proposal

Type of technical proposal to be submitted

Evaluation process

Evaluation criteria/sub-criteria

ITC should not be modified

ITC conditions modified through the Data

Sheet


Bid Data Sheet

The Bid Data Sheet forms part of the ITC

Contains specific information relating to

the assignment

Relates to specific clauses in the ITC

Validity Period [60-90] days

Format of the Technical Proposal (STP or FTP)

Proposal Submission Date, Time and Place

Evaluation Criteria, Sub-Criteria and Points

STANDARD FORMS

Technical Proposal

1. Form Tech1: Technical proposal submission form

2. Form Tech 2 (FTP) : Consultants organization and experience

3. Form Tech 3 (FTP) : Comments and suggestions on TOR

4. Form Tech 4 : Description of approach, methodology, and work-plan

5. Form Tech 5 : Work schedule and planning for deliverables

6. Form Tech 6: Team Composition, assignment, and Key Experts Time inputs; and C.V Forms


Form Tech1: Technical proposal submission

form

Formal declaration must be signed by

authorized signatory

Statements in proposal are true

Proposal shall remain valid and binding

No conflict of interest

Meet eligibility requirements abide by fraud and

corruption policies


Form Tech 4 : Description of approach,

methodology, and work-plan

Detailed of approach, methodology, and

work-plan for the assignment in responding

to the TOR

Technical Approach and Methodology

Work Plan

Organization and Staffing

REQUEST FOR PROPOSALS [RFP] Technical Approach, Methodology & Team Composition

Explain understanding of the assignment as outlined in the TOR

Describe the technical approach to respond to TOR

Layout the Methodology to compliment the approach

Detail the Outputs

Describe the team structure

Do Not Cut & Paste or repeat the TOR


Work Plan & Staffing

Outline plan for implementation of tasks and activities.

Detail content and duration of respective tasks and assignments

Must be consistent with proposed approach and methodology

Show assigned tasks of key experts

Address TOR requirements

Must be feasible


Form Tech 5: Work Schedule and Planning

for Deliverables

Bar Chart duration of main activity

(Deliverable)

List deliverables and breakdown activities

Must be consistent with Financial Proposal


Form Tech 6: Team Composition,

assignment, and Key Experts Time inputs; and

C.V Forms

Show Key and Non-Key experts

Position, Service to be provided

Show deliverable

Total Time Input (Hours)

Will be used to support Financial

Evaluation

REQUEST FOR PROPOSALS [RFP] Form Tech 6: C.V Forms

Important will be used to evaluate Key Personnel

Must Indicate position and title

State Education/Training

Details of relevant employment and experience

Professional membership

Contact Information

Certified and Signed by expert and authorized consultant

STANDARD FORMS

Financial Proposal

1. FIN-1: Financial Proposal Submission Form

2. FIN-2: Summary of Costs

3. FIN-3: Breakdown of Remuneration, including Appendix A Financial Negotiations - Breakdown of Remuneration Rates in the case of QBS method

4. FIN-4: Reimbursable expenses


FIN-1:Financial Proposal Submission

Form

Formal Financial Proposal must be signed

by authorized signatory

State Total Price and currency

Proposal shall remain valid and binding


FIN-2:Summary of Costs

Cost for Proposal

Re-numeration for Service

Reimbursable Expenses

Total Must Equal Fin-Form 1


FIN-3:Breakdown of Remuneration

Show detailed breakdown of re-numeration.

Key and non key experts re-numeration rate

and time input

Total cost for each key and non-key experts

Must be consistent with Tech-Form 6

Used only for demonstration purposes for

Lump Sum Contracts

Should not form the basis for payment in

Lump Sum Contracts


FIN-4: Reimbursable expenses

Show detailed breakdown of reimbursable

expenses

Used only for demonstration purposes for

Lump Sum Contracts

Basis for tax calculation [if needed]

Should not form the basis for payment in

Lump Sum Contracts


OVERVIEW IN PREPARING

PROPOSALS

1. Two to Four weeks for submission

I. Depends on nature/complexity

II. FTP or STP

2. Seek Clarification in writing

3. Carefully follow ITC/Data Sheet


OVERVIEW: IN PREPARING

PROPOSALS

4. Prepare proposal using the Standard

forms provided

Allow all required information to be provided

Clear, Concise

Readily comparable manner

Easy to understand

Easy to evaluate proposals in accordance with

established criteria


Terms of Reference

Key Document in the RFP

Explains Objective of the :

Assignment

Scope of Work

Activities

Task to be performed

Roles and Responsibilities

Expected Results and Deliverables

Comprehensive, Clear and Understandable

DEVELOPING TERMS OF

REFERENCE Characteristics

Ws rule:

Why?

What?

Who?

Where?

When?

Compatible with available budget!

Not to be too detailed & inflexible so that consultant may propose their own methodology & staff!

Clearly define client / consultants responsibilities

Outline

Project Background

Objectives of Assignment

Scope of Work

Deliverables; Reports

Period of Performance

Data/Information available

Other available resources of Client

Institutional & Organization arrangements


Conditions of Contract

Rules of Engagement

General Conditions of Contract

Cannot be modified

Special Conditions of the Contract

May be modified before issuing the RFP

Types of Contract depends on assignment

Lump Sum Contract

Time Based Contract

MAIN TYPES OF CONTRACTS Assignment

Simple

Scope Clear and Well Defined

Accurate staff Inputs & Estimates

Method of Selection

QCBS

LCS

FBS/CQS

Which Type of

Contract ?

Assignment

Scope Clear and Well Defined

Accurate staff Inputs & Estimates

Method of Selection

QCBS

QBS

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MAIN TYPES OF CONTRACTS

Scope of Work Selection

Method

Type of Contract

Master Plans QBS Time Based

Studies or Designs of Complex

Projects QBS Time Based

Pre-Feasibility Studies QBS Time Based

Simple planning Studies QCBS Lump Sum

Environmental Studies QCBS Lump Sum

Formulation of infrastructure

Projects QCBS/LC Lump Sum

Construction Supervision QCBS/LC Time Based

Standard Routine Assignments LC Lump Sum

EVALUATION OF PROPOSALS EVALUATION


EVALUATION EC is appointed before

submission of

proposals

EC meets to agree on rating

system to be used. Confirms

all members fully understand

the evaluation process and

methods.

Technical & Financial

Proposals are received

Technical Proposals are

opened and Financials put in

safe keeping

Each member of the EC

individually evaluates the

Technical proposals

EC meets to discuss &

consolidates the evaluation

Technical Report is prepared

for review and approval

Qualified consultants are

invited to the Financial

opening [notified in writing]

EC completes evaluation of

the Financial Proposals.

Determine highest combined

score and recommend the

award of a contract

Approval for

the award of

Contract

Approval for

the award of

Contract

Negotiation,

Preparation

of Contract

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SETTING EVALUATION CRITERIA

Types of Technical Proposals Full Technical [FTP]

Most Detailed

No limit to length of

Technical Proposal

Description of Consultants

Organization

Comments on TOR

Technical Approach &

Methodology

Professional staff & C.Vs

Staff inputs

Knowledge transfer

component

Simplified Technical [STP]

Less detailed

Technical proposal limit to 10

pages

Comments on TOR [optional]

Technical Approach &

Methodology

Professional staff & C.Vs

Staff inputs


FTP

Specific experience of the

consultant relevant to the

assignment

Adequacy of the proposed

methodology, work-plan in

responding to the TOR Technical approach & methodology

Work-plan

Organization & Staffing

Key professional staff

qualifications & competence General Qualifications

Adequacy for the assignment

Experience in region & language*

Transfer of knowledge & capacity

building programme

Participation of national

consultants

STP

Adequacy of the proposed

methodology, work-plan in

responding to the TOR Technical approach &

methodology [optional]

Work-plan [optional]

Key professional staff

qualifications & competence General Qualifications


Experience in region & language*

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SETTING EVALUATION

CRITERIA Points Distribution [FTP]

Evaluation Criteria Points Specific Experience of the consultants 0-10

Adequacy of the proposed methodology, work-plan

in responding to the TOR

20-50

Key professional staff qualifications & competence 30-60

Transfer of knowledge & capacity building

programme

0-10*

Participation of national consultants 0-10

Total 100

SETTING EVALUATION

CRITERIA Points Distribution [STP]

Evaluation Criteria Points Adequacy of the proposed methodology, work-plan

in responding to the TOR

20-40

Key professional staff qualifications & competence 60-80

Total 100

No Sub-criteria for Adequacy of the proposed methodology, work-plan in

responding to the TOR required. Evaluated as a whole

SETTING EVALUATION

CRITERIA Points Distribution

Points allocated to criteria & adopted sub-criteria must be shown in ITC (Bid Data Sheet) in the RFP

Sub-criteria & their weighting often determine the outcome of the evaluation

Sub-criteria must be derived from aspects that are critical for the success of the assignment

Accurate the numerical points allocated to the criteria & sub-criteria;

Reliable evaluation & best selection

Points allocated to each sub-criteria should vary according to it relative importance (not less than 3 points/sub-criteria)


Methodology & Work-plan

Key Staff

Early Stages (Design & Feasibility Studies)

Points Distribution


Key Staff

Methodology & Work-plan

Final Stages (Construction Supervision)

Points Distribution


Cost is a Factor $

Technical Proposal

Relative Weighting Technical &

Financial Proposals

Financial Proposal

80 %

10 % 90 %

20 %

50 % 50 %

Normal

High Technical

Procurement & Inspection Agents


Maximum of 10 points because shortlisting was

carried done bases on capabilities

Little difference between shortlisted consultants

Needed when very specific aspect of qualification

is needed

Points are allocated depended on how important

is the specific aspect of qualification

No fewer than 5 points to be allocated

Specific Experience [FTP only]


Technical Approach & Methodology Approach: An approach is the overall style or idea/strategy that

one adopts to overcome a problem.

Methodology: Methodology refers to procedures that have been

tested time and again and proven to help overcome problems.

Highlight understanding of the objectives of the assignment

Highlight understanding of the issues & their importance

Clearly state the approach to address them

Clearly outline the methodologies proposed and show

compatibility with the approach

Methodology & Work Plan


Work-Plan Outline the main activities of the assignment their

content and duration, milestones and phasing.

Show deliverables and most important outputs.

Must be highly consistent with technical approach &

methodology.

Effectively translating understanding of TOR into a

work-plan.

Methodology & Work Plan


Organization & Staffing Outline proposed structure & composition of the

team

List the main activities involved and the key

experts responsible.

List the proposed technical & support staff

Approach / Methodology & Work Plan


Approach / Methodology & Work Plan

Approach & Methodology

Work-Plan


Key Professional Staff

Management responsibilities

Key Qualifications & Experience

Points are allocated in order of importance to

accomplish the task

Should only include key personnel

Team Leader is key to success of assignment

Team Leader must be allocated the most

points.

In small teams the team leader be allocated up

to 50 % of the points allocated

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Key Professionals Points

Project Manager 25

Civil/Structural Engineer 15

Architect 10

Quantity Surveyor 10

Total 60

Point Allocation to

Key Professional Staff

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Point Allocation to Key Professional Staff

Points allocated based on information on C.V

Three sub-criteria General Qualifications/Experience


Experience in language & region *

General Qualifications/Experience General experience and years in professional work

Level of education, positions held etc.

Adequacy for the assignment Education, training & experience in specific field,

subject or sector directly relevant to the

assignment. This is most critical factor and should

be given the most weight.

Experience in Language & Region May not be applicable

Knowledge of local conditions, culture,

systems, government organizations etc

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Point Allocation to Key Professional Staff

Sub-Criteria Range of

%age

General Qualifications 20-30

Adequacy for the assignment 50-60

Experience in language & region 10-20

Total 100

http://www.google.com.jm/url?sa=i&rct=j&q=consultant+team&source=images&cd=&cad=rja&docid=TEMo8T72SmcRIM&tbnid=seKVtClwW5hXvM:&ved=0CAUQjRw&url=http://www.releasebox.com/services/QA/consulting.html&ei=yh4UUdONDsyayQGLlAE&bvm=bv.42080656,d.dmQ&psig=AFQjCNGnMexV28iWDWDGMCMJQ-HWGAw2tA&ust=1360359480201560http://www.google.com.jm/url?sa=i&rct=j&q=multiple+arrows&source=images&cd=&docid=XwKZDPn9DG8ynM&tbnid=d4y2DuXTHc04nM:&ved=0CAUQjRw&url=http://www.123rf.com/photo_7947088_arrows-going-upwards.html&ei=TyEUUabDK-SMyAHL7YCwCg&bvm=bv.42080656,d.dmQ&psig=AFQjCNHboL37t3lSfnLC6_PYI9BgteIq1w&ust=1360360112935056


Sub-criteria

Position Points General

Qualifications

(30%)

Adequacy for the

assignment

(60%)

Experience in

language & region

(10%)

Project Manager 25 30% of 25 = 7.5 60% of 25 = 15 10% of 25 = 2.5

Civil/Structural Engineer 15 30% of 15 = 4.5 60% of 15 = 9 10% of 15 = 1.5

Architect 10 30% of 10 = 3.0 60% of 10 = 6 10% of 10 = 1

Quantity Surveyor 10 30% 0f 10 =3.0 60% of 10 = 6 10% of 10 = 1

Total 60 18 36 6

Distribution of Points between Team Leader and other Key

professionals

http://www.google.com.jm/url?sa=i&rct=j&q=consultant+team&source=images&cd=&cad=rja&docid=TEMo8T72SmcRIM&tbnid=seKVtClwW5hXvM:&ved=0CAUQjRw&url=http://www.releasebox.com/services/QA/consulting.html&ei=yh4UUdONDsyayQGLlAE&bvm=bv.42080656,d.dmQ&psig=AFQjCNGnMexV28iWDWDGMCMJQ-HWGAw2tA&ust=1360359480201560http://www.google.com.jm/url?sa=i&rct=j&q=consultant+team&source=images&cd=&cad=rja&docid=TEMo8T72SmcRIM&tbnid=seKVtClwW5hXvM:&ved=0CAUQjRw&url=http://www.releasebox.com/services/QA/consulting.html&ei=yh4UUdONDsyayQGLlAE&bvm=bv.42080656,d.dmQ&psig=AFQjCNGnMexV28iWDWDGMCMJQ-HWGAw2tA&ust=1360359480201560

EVALUATION

Consultants technical proposals are intellectual

products; their evaluation must be based on the

professional judgment of competent and impartial

evaluators.

The judgment must be technically sound and objective,

strictly complying with the evaluation criteria.


EVALUATION

Evaluation Committee [EC]

1. EC is a committee of experts

Appointed to evaluate the Technical & Financial proposals

Minimum of Three (3) evaluators

2. EC uses the established evaluation criteria from the RFP

3. EC cannot modify the evaluation criteria

4. EC cannot modify or amend TOR

5. Must asses proposal based on TOR


EVALUATION

Have no Conflict of Interest

Understand the rating & scoring system

Have been provided with evaluation

worksheets

Agree on how to evaluate the proposals

Qualified

Full understanding of TOR

Have same understanding of TOR

Have same understanding of scoring system

Characteristics


EVALUATION

Technical Proposals for

consulting services are

intellectual products.

Evaluation must be based

on the individual

professional judgment of

competent evaluators.

Professional judgment

must be complimented by;

Transparency

Fairness

Consistency

Evaluation should not be

reduced to a purely

arithmetic exercise.

Judgment should not be

exercised in an unreasonable

or arbitrary manner

Evaluators must not

manipulate the awarding of

points.

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EVALUATION


PRACTICAL TWO STEP

APPROACH Step 1

Determine the level of responsiveness for each criteria & sub-criteria.

Level of responsiveness is estimated on a predefined percentage scale

Poor

Satisfactory

Good

Very Good

Step 2

Each percentage rating is multiplied by the maximum number of points for each criteria & sub-criteria


PRACTICAL TWO STEP

APPROACH Characteristics of the Rating Scale

1. Divided into discrete grades

Poor

Satisfactory

Good

Very Good

2. EC must establish what constitutes the

definition of each grade


PRACTICAL TWO STEP

APPROACH Advantage of Rating Scale Method

Provides EC with shared definition of grade,

making evaluation easier and comparable

Reduces the risk of scoring inconsistency &

discretion

Binds EC members to justify his/her evaluation

based on a common definition of the grades

Discourages intentional biases

Adds transparency & fairness to the process


PRACTICAL TWO STEP

APPROACH IMPORTANT POINTS !

Defining Grades is critical to success

Requires knowledge of the;

TOR, main technical issues, & qualification of key

staff

More thought which leads to better

evaluation

No agreed pre-defined grades may lead to

more subjective scoring


PRACTICAL TWO STEP

APPROACH Recommended Grades & Percentages

Grade (Level of Responsiveness ) Percentage Rating

Poor 40

Satisfactory 70

Good 90

Very Good 100


PRACTICAL TWO STEP

APPROACH Recommended Grades & Percentages

Lowest Grade is 40% because; Zero rating is not realistic (it would imply that the

consultant has not responded at all to the TOR)

A zero rating in say poor methodology cannot be compensated by high scores in all the other criteria (this would lead to an otherwise attractive proposal)

If a proposal appears to be unacceptable it does not deserve to be rated even as poor, it may be considered as non-responsive!


PRACTICAL TWO STEP

APPROACH

Evaluation Criteria Points

Adequacy of proposed methodology & work-plan 30

Key professional staff qualification and competence 70

Total 100


PRACTICAL TWO STEP

APPROACH: Methodology & Work-

Plan

Factors to Consider

Understanding of the objective*:

Extent to which the Technical Approach &

Work address objectives of the TOR

Completeness & Responsiveness*:

Responds completely to the requirements of

the TOR

Clarity of the proposal *: Clear,

Coherent, logical and well defined


PRACTICAL TWO STEP

APPROACH: Methodology & Work-

Plan

Factors to Consider

Timeliness of Outputs*: Is the proposed

schedule logical, realistic, conform to the

requirements of the TOR

Creativity & Innovation*: Suggestion of

new approaches to solve problems


PRACTICAL TWO STEP

APPROACH: Key Professional staff

qualification & competence

Factors to Consider

Sub-Criteria:

General Qualification: 30%

Adequacy for the assignment: 60%

Experience in language and region: 10%

Total: 100%


PRACTICAL TWO STEP



General Qualification [30%]

Good[90%]: Proposed expert has more than

15 years overall experience in field. Substantial

experience in consulting on similar assignments,

recognized for achievements in field.

Very Good [100%]: Proposed expert has

more than 20 years of specialized experience in

the field. Recognized by pairs as a top expert in

the field. Leader, on cutting edge in field.


PRACTICAL TWO STEP



General Qualification [30%]

Poor [40%]: Proposed expert has never or

occasionally worked in a similar position

required for the assignment. Expert is at a

relatively junior level.

Satisfactory [70%]: The experience of

the proposed expert fits the assigned

position. Expert has held at least one (1)

similar positions over the past 10 years


OPENING OF THE FINANCIAL

PROPOSALS [QCBS, LCS]

Technical Report is prepared

for review and approval

Qualified consultants are

invited to the Financial

opening [notified in writing]

EC completes evaluation of

the Financial Proposals.

Determine highest combined

score and recommend the

award of a contract

Approval for

the award of

Contract

Approval for

the award of

Contract

Negotiation,

Preparation

of Contract

We are here


FINACIAL EVALUATION

FINACIAL FORMS

FIN-1: Financial proposal submission form

Formal proposal signed by authorized personnel indicating

total cost of Service. Indicate name, address etc. of firm

FIN-2: Summary of Costs Form showing total remuneration for professional fees and

reimbursable. Total cost of the financial proposal should match FIN-1.

Tax expenses

Respective currencies if applicable

FINACIAL EVALUATION

FINACIAL FORMS

FIN-3: Breakdown of remuneration

Detail key experts & non-key experts showing; experts, position, person-rate of remuneration, time input & total remuneration [rate X time]

FIN-4: Breakdown of Reimbursable expenses

Note: The Financial proposal shall be prepared using the Standard Forms [FIN1-FIN 4] provided.

FINACIAL EVALUATION

1. Review the financials proposals to check

for arithmetic errors.

Do arithmetic check of sum of Remuneration &

Reimbursable .

2. Review financial proposal for

inconsistencies between the Financial

Proposal & Technical Proposal

Ensure substantial correlation between Technical

& Financial Proposal


FINACIAL EVALUATION

2. Review financial proposal for inconsistencies between the Financial Proposal & Technical Proposal

Significant discrepancies could lead to non-responsiveness for Lump Sum Contracts & major arithmetic corrections for time based contracts.

For example the Technical proposal indicates the presence of a clerk of works on site for 100 hours, but the Financial proposal indicates and prices for 25 hours!!


FINACIAL EVALUATION

2. Review Financial proposal for

inconsistencies between the Financial

Proposal & Technical Proposal

Activities & items described in the Technical

Proposal but not priced in the Financial Proposal,

shall be assumed to be included in the prices of

other activities.


FINACIAL EVALUATION

Time Based Form of Contracts

a. Correct any computational or arithmetic errors

b. Adjust the prices if they fail to reflect all inputs

included for the respective items or activities in

the Technical Proposal

c. In the case of discrepancies between the

Technical & Financial proposals in indicating

quantities, the Technical Proposal prevail and the

EC shall correct the quantification in the

Financial Proposal & apply relevant unit price


FINACIAL EVALUATION

Lump Sum Form of Contracts

a. Lump Sum Contracts are deemed to have

included all prices in the Financial Proposal, no

neither arithmetic corrections nor price

adjustments shall be made.

Taxes

a. Taxes should not be considered in the

evaluation


SELECTION FOR AWARD

Least Cost Method

a. The Consultant who attains the minimum required Technical Score [70-75 points]

b. Lowest Price

Quality Cost Based Selection

a. The Consultant attains the minimum required Technical Score [70-75 points]

b. Consultant attaining highest weighted combines score [Technical + Financial]


SELECTION FOR AWARD

Quality Cost Based Selection

Formula for Combined Final Score [Fs]

Fs = 100 x Lowest Price [Fm]/Price of Proposal [F]

Technical Score = Ts

Weights given to Technical [T%] & Financial [P%]

T = 80%, P = 20%

Final Score [S.f] = (Ts x T%) + (Fs x P%)


NEGOTIATONS & AWARD

Objective of Negotiations

Arrive at a mutually satisfactory contract

between Client & Selected Consultant

Parties will discuss the technical proposal

as submitted, agree on the details of the

scope of work, all arrangements, financial

terms, finalize contract conditions

NEGOTIATONS & AWARD

Notification to consultants ranked highest in evaluation

Appointment of Negotiation Team [EC should take part]

Technical matters

Technical approach

Methodology

Work-Plan

Organization & Staffing

Financial matters

Staff Rates [QBS, SSS, CQS]

Reimbursable expenses

Currency

Payment conditions

Negotiations of conditions of Contract

NEGOTIATONS & AWARD Limits of Negotiations

Commence by considering comments & suggestion

from EC

Review/reconcile technical aspects [approach,

methodology, work-plan, staffing] with clients

circumstances/expectations

Technical negotiations may affect quality of services

and impact the technical score

Financial proposal may be negotiated [when price

was not a factor of selection]


Since quality was the main factor in ranking of consultants, care should be taken to not reduce the scope or downgrade staff input to cut price hence reducing the overall quality of the proposals and deliverables. Doing this may affect the ranking of the consultants.

Look out for High Balling strategy. Consultant deliberately propose methodology & key staff well above the requirements in order to secure a high score. Consultant attempts to trim scope or quality if price exceeds the budget: Not Allowed


Financial negotiations is not allowed when price is a

factor in the selection, such as QCBS and LCS .

When QCBS or LCS is employed the negotiation

shall only focus on the technical aspects.

A price increase related to technical improvement

may be negotiated on condition that the proposal

remains the least costly in the case of LCS.

NEGOTIATONS & AWARD Negotiating Contract Conditions

Prior to discussing financial

proposal discuss the clauses in the

draft contract

Review the General & Specific

Clauses to ensure parties

understand contract terms and

conditions to be agreed

General Conditions Cannot be

modified/changed

Special Conditions may be subject

to negotiations

THE END QUESTIONS & DISCUSSIONS

CONSULTING SERVICES PROCUREMENT AND SELECTION AUGUST 2013 PRESENTATION

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