FRAMEWORK FOR QUALITY-FEE SELECTION METHOD (QFM) SYSTEM 1.0 OBJECTIVE OF QFM SYSTEM

The Quality-Fee selection Method (QFM) system was developed to replace the previous public sector consultancy procurement system which was used during the CPGCorp moratorium for projects below $20M. The previous system involved placing firms in segregated panels and allocating jobs to them after balloting to obtain the order of allocation. Fees were fixed according to a pre-determined scale.

2.0 KEY PRINCIPLES

a) The Quality-Fee selection Method (QFM) is a competitive selection method that takes into consideration both the quality criteria submitted by the firms and their fee proposals. It is primarily quality-based with a higher weightage given for quality.

b) The QFM will also operate in as transparent a manner as possible.

Besides the overall quality:fee weightages, the weightages of the various quality criteria sought for will be made known at tender stage. Quality scoring will be carried out before fee proposals are opened.

c) The QFM will also be carried out in an efficient manner to reduce costly

efforts in tender pre-qualifications, tendering itself and tender evaluation. 3.0 MAIN FEATURES OF QFM

a) Weighting for QFM

− Quality : 60% - 80% - Fee : 40% - 20% correspondingly - Q/F weighting: 60/40 to 80/20

b) Two-envelope system

− Quality proposals will be opened and evaluated first with quality scores computed before the envelopes for the fee proposals are opened and the fee scores computed.

c) Quality criteria for quality proposals

- Firm’s standing eg track records, performance of firms - Relevant expertise and experience of the proposed project team for

the project

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- Approach for the project based on the firm’s understanding of the client’s requirements in the form of written proposals (limited to 2 A4 sheets) and/or concept design proposals

d) Concept design proposals

- Q/F weighting will be 80/20 - Agencies shall compensate firms should concept design proposals be

requested

e) Measure to reduce fee diving − To discourage firms from quoting excessively low fees, the maximum

score for fees will be pegged at 20% below the average fees quoted by the tendering firms.

4.0 CENTRAL PANEL SYSTEM FOR SHORTLISTING

To improve tendering efficiency, a central panel system will be launched on 1 Apr 04 to tie in with the end of the CPGCorp moratorium. The main features of the central panel system are as follows:

a) It will be centralised and categorised according to their respective disciplines and different project values as follows:

Architectural, C&S, M&E and QS firmsPanel 1 : above $30M - $65M Panel 2 : above $10M - $30M Panel 3 : above $3M - $10M Panel 4 : $0 - $3M

PM firms

Panel 1 : above $10M Panel 2 : $0 - $10M

The entry criteria for the panel are given in Appendix 1.

b) Listing will be open to firms at any time

- Subject to renewal annually to ensure minimum qualifying criteria are still met

c) Firms will select which panel they wish to be listed on - Limited to one choice and subjected to meeting the qualifying criteria

for that panel d) Firms listed on a particular panel are eligible for projects of value within

that panel and the next lower panel only:

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Architectural, C&S, M&E and QS firms − For projects within project cost range of $30M - $65M, only firms from

Panel 1 can tender. − For projects within project cost range of $10M - $30M, only firms from

Panel 1 & Panel 2 can tender. − For projects within project cost range of $3M - $10M, only firms from

Panel 2 & Panel 3 can tender. − For projects within project cost range of $0 - $3M, only firms from Panel 3

& Panel 4 can tender. PM firms− For projects of project cost above $10M, only firms from Panel 1 can

tender. − For projects within project cost range of $0 - $10M, only firms from Panel

1 & Panel 2 can tender.

5.0 PROCUREMENT STEPS a) Expression of interest

Projects below $65M Depending on the type of services sought for and the size of the particular project, the procuring agencies will invite expression of interest from all eligible firms in the relevant panels. Projects above $65M Open tender will be called in which firms from all panels from the specific disciplines of consultancy services sought for may participate, provided they meet the eligibility criteria specified by the procuring agency.

b) Shortlisting methods

Architectural, C&S, M&E and QS firms (i) Projects up to $30M

- 1-stage QFM procurement process will be adopted. - 5 firms will be balloted from interested firms in eligible categories.

(ii) Projects above $30M - $65M

- Either 1-stage QFM or 2-stage QFM will be adopted. - For 1-stage QFM, same balloting process applies.

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- For 2-stage QFM, Stage 1 involves shortlisting 5 firms from the pool of interested firms based on agencies’ particular requirements.

(iii) Projects above $65M

- Open 2-stage QFM will be adopted i.e. firms from all the panels in the particular disciplines sought for can express interest for the project, provided they meet the eligibility criteria specified by the procuring agency.

- Stage 1 involves shortlisting 5 firms from the pool of interested firms based on agencies’ particular requirements.

PM firms Balloting may be used to shortlist 5 firms from the interested pool of firms, if necessary.

c) Tendering procedures

Broad guidelines for 1-stage QFM − Shortlisted firms will either submit bids on an individual basis (by

discipline) or be asked to form multi-disciplinary teams to submit proposals − Firms will submit quality proposals and fee proposals at the same time in

separate envelopes − Quality submission requirements such as firm’s standing, relevant

expertise and experience, written proposal (limit to 2A4 sheets) − No concept design proposals will be required Broad guidelines for 2-stage QFM 1st stage of 2-stage QFM (Shortlisting phase)− 5 firms or teams could be shortlisted based on quality proposals

submitted such as firms standing, relevant expertise and experience and brief written proposal

− No fee proposals and no concept design proposals are required at this stage

2nd stage of 2-stage QFM− Shortlisted teams will submit, in separate envelopes, fee proposals and

detailed quality proposals such as concept design (limit to 2 A1 size drawings) and supporting written document.

6.0 FUTURE DIRECTION

The QFM will be revised and finalised as experience is gained from the implementation. It will move towards a fully open QFM system where all eligible firms are allowed to participate, within a timeframe of three years.

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Appendix 1

LISTING CRITERIA FOR PUBLIC SECTOR PANELS OF CONSULTANTS ARCHITECTURAL CONSULTANCY FIRMS

(i) Common Criteria

Firm must be registered with the respective professional body i.e. BOA

(ii) Specific Criteria Criteria for PANEL AR04 ($0 - $3M): (a) 1 registered professional with the respective professional body supported by 1

professional with recognised professional qualifications1

Criteria for PANEL AR03 (above $3M - $10M): (a) 1 registered professional with the respective professional body supported by 1

professional with recognised professional qualifications1 (b) Completed a project above $1.5M in the past 5 years (c) At least one technical or professional staff has attended either the Buildable

Design Appraisal System (BDAS) / Integrated Buildable Design Appraisal System (i-BDAS) / Code of Practice on Buildable Design course conducted by BCA2

Criteria for PANEL AR02 (above $10M - $30M): (a) 2 registered professionals with the respective professional body (b) Completed a project above $5M in the past 5 years (c) ISO 9001:2000 certification (d) At least one technical or professional staff has attended either the Buildable

Design Appraisal System (BDAS) / Integrated Buildable Design Appraisal System (i-BDAS) / Code of Practice on Buildable Design course conducted by BCA2

Criteria for PANEL AR01 (above $30M - $65M): (a) 3 registered professionals with the respective professional body (b) Completed a project above $15M in the past 5 years (c) Must have professional indemnity insurance (PII) of at least $0.5M (d) ISO 9001:2000 certification (e) At least one technical or professional staff has attended either the Buildable

Design Appraisal System (BDAS) / Integrated Buildable Design Appraisal System (i-BDAS) / Code of Practice on Buildable Design course conducted by BCA2

Criteria for Projects above $65M: Agencies to determine depending on particular requirements for project

1 Refers to a relevant recognised degree in Architecture List of recognised degrees in Architecture could be obtained from BOA 2 For firms that do not satisfy this requirement, they have to declare and ensure that at least one of its technical

or professional staff will attend the “Code of Practice on Buildable Design” course conducted by BCA within a period of 6 months upon approval of its listing application. Firms are required to submit the Certificate of Attendance to the PSPC counter together with Form Part 4(i) upon successful completion of the course.

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Appendix 1

CIVIL & STRUCTURAL ENGINEERING CONSULTANCY FIRMS

(i) Common CriteriaFirm must be registered with the respective professional body i.e. PEB

(ii) Specific Criteria Criteria for PANEL CS04 ($0 - $3M): (a) 1 registered professional with the respective professional body supported by 1

professional with recognised professional qualifications3

Criteria for PANEL CS03 (above $3M - $10M): (a) 1 registered professional with the respective professional body supported by 1

professional with recognised professional qualifications3 (b) Completed a project above $1.5M in the past 5 years (c) At least one technical or professional staff has attended either the Buildable

Design Appraisal System (BDAS) / Integrated Buildable Design Appraisal System (i-BDAS) / Code of Practice on Buildable Design course conducted by BCA4

Criteria for PANEL CS02 (above $10M - $30M): (a) 2 registered professionals with the respective professional body (b) Completed a project above $5M in the past 5 years (c) ISO 9001:2000 certification (d) At least one technical or professional staff has attended either the Buildable

Design Appraisal System (BDAS) / Integrated Buildable Design Appraisal System (i-BDAS) / Code of Practice on Buildable Design course conducted by BCA4

Criteria for PANEL CS01 (above $30M - $65M): (a) 3 registered professionals with the respective professional body (b) Completed a project above $15M in the past 5 years (c) Must have professional indemnity insurance (PII) of at least $0.5M (d) ISO 9001:2000 certification (e) At least one technical or professional staff has attended either the Buildable

Design Appraisal System (BDAS) / Integrated Buildable Design Appraisal System (i-BDAS) / Code of Practice on Buildable Design course conducted by BCA4

Criteria for Projects above $65M:

Agencies to determine depending on particular requirements for project

3 Refers to a relevant recognised degree in Civil/Structural Engineering List of recognised degrees in Civil/Structural Engineering could be obtained from PEB 4 For firms that do not satisfy this requirement, they have to declare and ensure that at least one of its technical

or professional staff will attend the “Code of Practice on Buildable Design” course conducted by BCA within a period of 6 months upon approval of its listing application. Firms are required to submit the Certificate of Attendance to the PSPC counter together with Form Part 4(i) upon successful completion of the course.

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Appendix 1

MECHANCIAL & ELECTRICAL ENGINEERING CONSULTANCY FIRMS

(i) Common CriteriaFirm must be registered with the respective professional body i.e. PEB

(ii) Specific Criteria Criteria for PANEL ME04 ($0 - $3M): (a) 1 registered professional with the respective professional body supported by 1

professional with recognised professional qualifications5

Criteria for PANEL ME03 (above $3M - $10M): (a) 1 registered professional with the respective professional body supported by 1

professional with recognised professional qualifications5 (b) Completed a project above $1.5M in the past 5 years

Criteria for PANEL ME02 (above $10M - $30M): (a) 2 registered professionals with the respective professional body (b) Completed a project above $5M in the past 5 years (c) ISO 9001:2000 certification

Criteria for PANEL ME01 (above $30M - $65M): (a) 3 registered professionals with the respective professional body (b) Completed a project above $15M in the past 5 years (c) Must have professional indemnity insurance (PII) of at least $0.5M (d) ISO 9001:2000 certification

Criteria for Projects above $65M:

Agencies to determine depending on particular requirements for project

5 Refers to a relevant recognised degree in Mechanical/Electrical Engineering List of recognised degrees in Mechanical/Electrical Engineering could be obtained from PEB

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Appendix 1

QUANTITY SURVEYING CONSULTANCY FIRMS

(i) Specific CriteriaCriteria for PANEL QS04 ($0 - $3M): (a) 1 degree holder6 supported by 1 diploma holder7

Criteria for PANEL QS03 (above $3M - $10M): (a) 1 degree holder6, who must have completed a project above $1.5M as a project

QS, supported by 1 diploma holder7 (b) Firm must have completed a project above $1.5M in the past 5 years

Criteria for PANEL QS02 (above $10M - $30M):

(a) 2 degree holders6, 1 of whom must have completed a project above $5M as a project QS

(b) Firm must have completed a project above $5M in the past 5 years (c) ISO 9001:2000 certification

Criteria for PANEL QS01 (above $30M - $65M):

(a) 3 degree holders6, 1 of whom must have completed a project above $15M as a project QS

(b) Firm must have completed a project above $15M in the past 5 years (c) ISO 9001:2000 certification

Criteria for Projects above $65M: Agencies to determine depending on particular requirements for project

6 Degree holder in Architecture, Building, Engineering or equivalent 7 Diploma holder in Architecture, Building, Engineering or equivalent

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Appendix 1

PROJECT MANAGEMENT FIRMS

(i) Specific Criteria Criteria for PANEL PM02 ($0 - $10M):

(a) 2 degree holders6, 1 of whom must have completed a project above $3M as a project PM8 in the past 5 years

Criteria for PANEL PM01 (above $10M): (a) 3 degree holders6, 1 of whom must have completed a project above $50M as a

project PM8 in the past 5 years (b) Firm must have completed at least 3 projects as project manager, each above

$8M in the past 5 years (c) ISO 9001:2000 certification in Project Management

8 Project PM refers to appointment by client /developer to provide solely Project Management services

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Appendix 2

COMPUTATION FOR QUALITY-FEE SCORING (EXAMPLE) Example: Quality-Fee Ratio: 70/30 Total number of shortlisted teams: 5

Teams 1 2 3 4 5 Q(raw) 84 94 91 90 88 Q(wt) 58.8 65.8 63.7 63.0 61.6 F(%) 3.5 4.2 5.0 4.6 4.9 F(wt) 30 25.37 21.31 23.17 21.75

Total QF score(Q(wt)

+ F(wt))

88.8 91.17 85.01 86.17 83.35

Overall position 2 1 4 3 5

(i) To compute weighted quality score

Q(wt) = Q(raw) x 70% (ii) To compute average fee score

Fave = (summation of fees of all qualifying bids) / (no. of qualifying bids) = 4.44 %

(iii) To compute weighted fee score

F(wt) = (0.8Fave / Bidder's fee) x 30 (max 30 points)

Cap maximum score at 20% below average fee, 0.8Fave = 3.55 %

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