Business Opportunities Seminar Consulting Services United States (August 2014)

1. Business Opportunities Seminar Consulting Services United States (August 2014) Presented By: Amr J. Qari Senior Procurement Specialist Asian Development Bank

2. Agenda • Types of ADB-Financed Consultants And Consulting Assignments • Winning ADB-Financed Consulting Contracts • Learning From An Irish Success Story • Avoiding Common Mistakes • ADB’s Consultant Recruitment Procedures • Q&A

3. Types of ADB-Financed Consultants and Consulting Assignments

4. Types of Consultants Consulting entities Consulting firms Universities NGOs Research institutes Others – UN Organizations Individuals Sourced through a firm Independent Consultants

5. International Consultants Extensive international experience International best practices National Consultants ADB’s mandate to promote local expertise Have to be nationals of the beneficiary country Local expertise is available Experience with international organizations or firms Types of Consultants

6. Technical Assistance Consulting Assignments PPTA (Project preparation) CDTA (Advisory TA) RETA (Regional TA) Loan Project Consulting Assignments Project implementation supervision/support Capacity building Monitoring & Evaluation Staff Consulting Assignments Project preparation Evaluation Others Others ABD engages consultants for ‘in-house’ projects, (e.g. Information Systems and Technology Project, building services, etc.), internal training, auditing, institutional/organizational reviews etc. Types of Consulting Assignments

7. 1. Country Partnership Strategy 1 2. Concept 2 6 6. Evaluation 5 3 3. Preparation 4 5. Implementation 4. Loan Negotiation & Board Approval Consulting Opportunities Across ADB Project Cycle Staff Consultants Individual Consultants Individual Consultants Consulting Firm Consulting Firm

8. Winning ADB-Financed Consulting Contracts

9. Why pursue ADB-Financed Consulting Contracts? • Significant expenditure on consulting services (approximately $500M in 2013) • Gateway to new opportunities in fast growing emerging economies across multiple sectors • Availability of funds is assured • Risks related to transparency, fairness and integrity of recruitment activities mitigated through ADB oversight • Support a worthy development mission

10. 8-Step Plan to Win ADB-Financed Consulting Contracts • Collect relevant business intelligence • Build your brand name • Express interest • Know the country of the assignment and project site • Offer partnership to firms likely to be shortlisted • Prepare a responsive and strong technical proposal • Prepare a responsive and competitive financial proposal • Do good work

11. Step 1: Collect relevant business intelligence • Study Country Partnership Strategy (CPS) and Country Operations Business Plans (COBP) • Obtain information from procurement plans (and project documents) • Check ADB website for opportunities in the Consulting Services Recruitment Notices (CSRN) section

12. Step 1: Collect relevant business intelligence http://www.adb.org Click on “countries” Click on “Strategy”

13. Step 1: Collect relevant business intelligence

14. Step 1: Collect relevant business intelligence

15. Step 1: Collect relevant business intelligence Navigate from adb.org to the Consulting Services Portal

16. Step 1: Collect relevant business intelligence Search Procurement Plans by Country/Year

17. Step 1: Collect relevant business intelligence Also search Procurement Plans by Sector/Projects

18. Step 1: Collect relevant business intelligence Also search Procurement Plans by Sector/Projects

19. Step 1: Collect relevant business intelligence Excerpt from Procurement Plan

20. Step 1: Collect relevant business intelligence Search Recruitment Notices

21. Step 1: Collect relevant business intelligence

22. Step 1: Collect relevant business intelligence Customized E-mail Alert Sign-up Form

23. Step 2: Build your brand name • Visit ADB Headquarters/Resident missions • Visit departments responsible for projects • Brown-bag seminars • Business Opportunities Fairs • Visit government executing agencies • Register in ADB Consultant Management System (CMS)

24. Step 2: Build your brand name

25. Step 3: Express Interest • Check opportunities on ADB website • Submit Expression of Interest on time

26. Step 3: Express Interest • Considerations • Capacity to compete • Capacity to deliver • Go it alone or associate/joint venture • Criteria • Eligibility – pass/fail • Management competence – (%) • Technical experience – (%) • Geographical experience – (%)

27. Step 4: Know the country of the assignment and project site • Get to know the EA • Obtain first hand information • Field assessment • Identify local partner(s) • Estimate the local costs

28. Step 5: Offer partnership to firms likely to be shortlisted

29. Step 5: Offer partnership to firms likely to be shortlisted • Network with potential partners online and offline ADB LinkedIn Networking Site Business Opportunities Fair in Manila

30. Step 6: Prepare a responsive and strong technical proposal Technical proposal usually carries 80% of the weight under QCBS and 100% under QBS and FBS Key Success Factors: • Understand client requirements (ADB, government) • Study the TOR • Select the best personnel • Personnel carry > 50% of the weight in technical score • Team Leader normally carries the heaviest weight • Visit the project site • Follow the instructions in the RFP • Understand the evaluation criteria • Clarify your understanding

31. Technical Proposal Evaluation Criteria Step 6: Prepare a responsive and strong technical proposal Weight

32. Step 6: Prepare a responsive and strong technical proposal Factor for evaluating Experience of the Firm Experience in similar projects Experience of the Firm 100-200 Experience in the region Other factor

33. Step 6: Prepare a responsive and strong technical proposal Factors for evaluating Approach & Methodology Understanding of Objectives Approach & Methodology 200- 400 Methodology Work Program Person month requirement Innovativeness Counterpart Support Presentation

34. Step 6: Prepare a responsive and strong technical proposal Factors for evaluating Personnel Personnel (700) General Qualification 10-25% Project Experience 60-70% Country Experience 10-15% Team Leader /Expert A 300 Expert B 200 Expert C 100 Expert D 100

35. Step 7: Prepare a competitive financial proposal Financial Proposal usually carries 20% of the weight under QCBS Salary Remuneration Social Charge Overhead Fee (profit mark up) Competitive Component Travel Out-of-pocket Expenses Communication Provisional sums Per diem Contingency Office support Reports Reproduction Other

36. ADB conducts Performance Evaluation Review (PER) for every consulting assignment and a poor performance record can affect consultants’ future opportunities with ADB Drivers of strong performance: Good team leader Relationships with EA Relationships between International & National consultants Managing replacements Step 8: Do good work

37. Learning From An Irish Success Story

38. An Irish Success Story The Challenge: • Irish companies unknown to ADB because Ireland became an ADB member country in 2006 • From 2007 to 2009, IrishCo (not its real name)submits many EOIs remotely but does not get shortlisted • IrishCo attributes failure to lack of: (i) track record in ADB financed assignments, (ii) strong commitment to winning ADB financed assignments and (iii) strong partnerships.

39. An Irish Success Story The Solution: • In 2009, IrishCo’s top management makes a strategic commitment to winning ADB financed assignments • Frequent travel to ADB HQ in Manila • Focus initially is exclusively on small assignments • Shorter and simpler recruitment process • Recruiters are more willing to take risks with new firms due to smaller budget • Opportunity to build valuable project references • Opportunity to build brand recognition • Gain familiarity with ADB processes and personnel • By end of 2009, IrishCo wins three small contracts ($37K, $60K, $175K)

40. Loan Implementation/ Grants PPTAs Project Scale Individual Contracts Time An Irish Success Story The Solution: • Equipped with project references and a network of relationships, IrishCo targets larger assignments and wins two contracts worth $580K and $660K in 2011 IrishCo’s Business Development Approach

41. Avoiding Common Mistakes

42. Failure to disclose conflict of interest Firm or any of its associates not organized in an ADB member country Wrong type of technical proposal is submitted Technical Proposal includes costs (QCBS) Proposal was not delivered in time to meet deadline Employees from executing agencies included in consultant’s proposal (caution for government employees in general) Avoiding Common Mistakes

43. CV Missing CV Nationality not stated Certification not properly accomplished Discrepancy between person-months in the RFP and proposed person-months Discrepancy between type of experts in the RFP and those proposed Proposal makes radical changes to the TORs (Note: Comments on the Terms of Reference) Proposed price exceeds maximum stipulated in request for proposals Avoiding Common Mistakes

44. ADB’s Consultant Recruitment Procedures

45. ADB Consulting Guidelines All consultants financed by ADB are engaged in accordance with the Guidelines on the Use of Consultants by Asian Development Bank and Its Borrowers

46. High quality services Economy and efficiency Opportunity for all qualified consultants to compete Encourage use of national consultants Transparency Increase focus on anticorruption and ethics ADB Consulting Guidelines – Principles

47. ADB Consulting Guidelines – Principles Upon finding corrupt, fraudulent, collusive or coercive practices, ADB will: • Reject a proposal to award contract if it determines that consultant recommended for award has engaged in a prohibited practice • Cancel the corresponding portion of a loan if it determines that representatives of Borrower have engaged in prohibited practices during consultant selection process or execution of contract • Declare a firm or individual ineligible either indefinitely or for a stated period of time • Inspect accounts and records related to consultant selection process or performance of contract and have them audited by auditors appointed by ADB

48. ADB Consulting Guidelines – Principles Corrupt Practice the offering, giving, receiving, or soliciting, directly or indirectly, anything of value to influence improperly the actions of another party (e.g. bribery, kickbacks, extortion, bid manipulation) Fraudulent Practice action or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an obligation (e.g., false bid security/bank guarantees, work certificates, financial statements) Collusive Practice an arrangement between two or more parties designed to achieve an improper purpose, including influencing improperly the actions of another party (e.g. leaking of bid information, rigged specifications) Coercive Practice impairing or harming, or threatening to impair or harm, directly or indirectly, any party or its property to influence improperly the actions of a party

49. Anticorruption Issues: Payments in cash or in kind to influence decisions Submission of false CVs Misrepresentation of academic qualifications Misrepresentation of firm’s qualifications ADB Consulting Guidelines – Principles

50. Technical Assistance and Staff Consultancy ADB (Project departments with Central Operations Services Office) selects and engages Consultants Consultant selection Committee for assignments > $600,000 Loans, Grants and Delegated Technical Assistance Executing Agencies (client Government Departments) select and engage Consultants ADB reviews all steps of the process (RFP, Evaluation reports, Award recommendations, contract) ADB System for Consulting Services: Who selects consultants?