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WORLD BANK

WORLD BANK. SELECTION OF CONSULTANT. SELECTION OF CONSULTANT. BASIC PRINCIPLES High quality services Economy and efficiency Fair selection process Encourage role of national consultants Transparency. SELECTION OF CONSULTANT MAIN FEATURES. Eligibility

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WORLD BANK

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  1. WORLD BANK SELECTION OF CONSULTANT

  2. SELECTION OF CONSULTANT BASIC PRINCIPLES • High quality services • Economy and efficiency • Fair selection process • Encourage role of national consultants • Transparency

  3. SELECTION OF CONSULTANTMAIN FEATURES • Eligibility • Firms or any affiliates engaged as a consultant should disqualify from subsequently providing goods or works except in turn-key contracts • Government owned enterprises in the borrower country are eligible only if they are legally autonomous and operate under commercial law • Dependent agencies including institutions and universities of borrowers or sub-borrowers and their employees are not allowed to participate • Government employees cannot be financed under Bank projects

  4. SELECTION OF CONSULTANTCONFLICT OF INTEREST • Suppliers of goods and contractors for civil works and any of their affiliates excluded from providing consulting services for the same project (except for turn-key contracts) • Consultants providing services for preparation or implementation of a project, and any of their affiliates, are disqualified from subsequently providing goods or works or services related to initial assignment (other than a continuation of the consultant’s earlier consulting services) for the same project

  5. SELECTION OF CONSULTANTFRAUD AND CORRUPTION • Corrupt and fraudulent practices are unacceptable • Sanctions by bank: • Will reject proposal for award • Cancel the portion of the loan • Declare firm ineligible for a limited period of time or indefinitely • Bank reserves the right to audit firm’s accounts and records of the contract

  6. SELECTION OF CONSULTANTASSOCIATION BETWEEN FIRMS Firms may associate with each other to complement areas of expertise in form of joint venture or sub-contracting. In joint venture, all members are jointly and severally liable for the entire scope.

  7. SELECTION OF CONSULTANTBANK GUIDELINES • Public notification of large assignments • Restricted competition • Use of request for proposals (RFP) • Different selection methods applicable as specified in Loan Agreement

  8. SELECTION OF CONSULTANTSELECTION CRITERIA • Basis of selection • Competition among short-listed firms • Selection Method (quality and cost are factors) • Relative weights (quality & cost-total 100 points) • Use cost factor judiciously depending on nature of assignment • Quality usually 80-90 out of 100 points • Cost usually 10-20 but not more than 30 out of 100 points • Break-down of quality points • Consultants specific experience 5-10 points • Methodology 20-50 points • Key personnel 30-60 points 100 • Transfer of knowledge 0-10 points points • Participation by nationals 0-10 points • Minimum technical score to qualify--70 to 80 points

  9. SELECTION OF CONSULTANTSELECTION STEPS • Advertisement • Preparation of shortlist • Request for proposal • Submission and opening of proposals • Evaluation • Technical • Financial • Negotiations and award

  10. SELECTION METHODS • Quality and cost based selection (QCBS) • Quality based selection (QBS) • Fixed budget (FB) • Consultant qualifications, firms (CQ) – Yes Aggregate US$ 0.3 M • Least cost (LC) - Yes • Single source (SS) • Individual consultants (IC) – Yes Aggregate US$ 0.3 M

  11. SELECTION METHODS QUALITY AND COST BASED SELECTION (QCBS)

  12. SELECTION OF CONSULTANT QCBS STEPS • Prepare TOR • Prepare cost estimate • Advertising: • GPN in UNDB for all contracts by short-list procedure (required) • For contracts estimated more than $200,000 in addition to GPN • Specific advertising for expression of interest in UNDB (required) • Advertising in an international newspaper or technical magazine (optional) • Copy of notice should be sent to those who expressed interest in response to GPN (required) • Contact embassies, professional organizations or firms listed in DACON (optional) • Time allowed to respond - not less than 30 days • Use Bank standard form(s) of advertising

  13. SELECTION OF CONSULTANT QCBS STEPS • Short list • First consideration to those who expressed interest to SPN • Number -- 3 to 6 firms with wide geographic spread • Nationality (country in which registered/ incorporated) not more than 2 firms from one country • At least one firm from developing country (if qualified) • After Bank’s no-objection of short list no changes permitted without Bank’s concurrence • Preparation and issuance of request for proposal (RFP) • Use Bank’s standard RFP comprising of 1) LOI; 2) information to consultant (ITC); 3) TOR; And 4) draft contract • After Bank’s no-objection any changes require Bank’s concurrence • RFP should indicate estimated staff months and not budget

  14. SELECTION OF CONSULTANT QCBS STEPS • Receipt of proposals • Time allowed to submit proposals -- 4 to 12 weeks depending on assignment -- generally 6 weeks • Clarifications requested by firms should be provided during pre-proposal stage and sent to all those short listed • Deadline for submission strictly observed • Late proposals are to be returned unopened • Two envelope procedure used -- technical and price proposals in separate sealed envelopes • Only technical proposals are opened first by evaluation committee immediately after the submission time • Price envelopes remain sealed and deposited in an independent place until technical evaluation is completed and Bank’sno-objection to open price proposal obtained

  15. SELECTION OF CONSULTANT QCBS STEPS • Evaluation of proposals -- technical • Evaluation committee -- 3-5 specialists in the sector acceptable to the Bank • Each member evaluates independently • Follow criteria and sub-criteria specified only in the RFP • Determine responsiveness to TOR • Determine combined score of all evaluators • Seek Bank’s no-objection (use standard evaluation report format) • Notify those who failed to score the minimum marks that their price proposals will be returned unopened after selection is completed • Notify those who pass about date and time of opening of financial proposals (allow 2 weeks) • Public opening of financial proposals • Read allowed names, technical scores, and prices • Prepare minutes of public opening and send copy to Bank

  16. SELECTION OF CONSULTANT QCBS STEPS • Evaluation of proposals --Financial • Committee evaluates financial proposals as per formula specified in RFP • Arithmetical correction • Currency conversion to single currency • Cost comparison will include all reimbursables but exclude local taxes • Evaluation of proposals -- combined score • Seek no objection from Bank (use standard evaluation report format) • Negotiations and contract award to the highest ranked firm after Bank’s no-objection • Unit rates not subject to negotiations • No major changes in TOR is permitted • Staff substitution not permitted within proposal validity unless critical to meet objective or undue delays • Proposal may be disqualified if key staff were offered without confirming their availability • Draft of negotiated contract must be cleared with Bank before signing

  17. SELECTION OF CONSULTANT LEAST COST SELECTION • RFP Indicates estimated staff months • Two envelope procedure is adopted • Proposal receipt, opening, and technical evaluation as per QCBS • Opening of financial proposals above a minimum technical score • Award to the lowest evaluated price proposal • Bank’s prior review and clearance required for RFP, technical evaluation before financial opening, final selection before negotiation and draft contract before signing

  18. SELECTION OF CONSULTANT CONSULTANT QUALIFICATION • For very small value (<$100,000) for which preparation and evaluation of competitive proposals may not be justified • Prepare TOR • Solicit expressions of interest • Prepare short list • Select firm most qualified • Selected firm to submit combined technical and financial proposals • Negotiate contract • Bank review as per loan/credit agreement

  19. SELECTION OF CONSULTANT Individual Consultant • Use when • No teams required • No backup support required • Experience and qualifications paramount • Selection • Qualifications • Interviews • Conflict of interest

  20. EVALUATION OF CONSULTANTEXAMPLE - TECHNICAL EVALUATION CRITERIA (100 points) • Specific experience (10 points) • Methodology (30 points) • Key professional staff (50 points) • Transfer of Knowledge (10 points) • Local participation (0 points)

  21. TECHNICAL EVALUATIONSUMMARY EVALUATION SHEET (EXAMPLE) FIRM I FIRM II FIRM IIIITEMWT POINTS RATING POINTS RATING POINTS RATING ab* a Xb c* a X c d* a X d 1. EXPERIENCE 0.10 80 8 90 9 75 7.5 2. METHODOLOGY 0.30 70 21 75 22.5 90 27 3. KEY STAFF TEAM LEADER 0.20 75 15 70 14 80 16 ECONOMIST 0.10 60 6 65 6.5 60 6 ENGINEER 0.10 80 8 70 7 80 8 FINANCIAL ANLST. 0.05 70 3.5 60 3 60 3 MANAGEMENT EXP. 0.05 60 3 70 3.5 80 4 4. SKILLS TRANSFER 0.10 50 5 60 6 70 7 TOTAL 1 69.5 71.5 78.5 * OUT OF 100

  22. FINAL EVALUATION (EXAMPLE) FIRM TECHNICAL X90% PRICE PRICE X10% TOTAL EVAL. (A) (US$M) POINTS* (B) SCORE POINTS (A+B) A 92 82.80 .90 77.78 7.80 90.58 B 90 81.00 .80 87.50 8.75 89.75 IF .70 (10.00) (91.00) C 85 76.50 .73 95.89 9.59 86.09 D 78 70.20 .70 100.00 10.00 80.20 * LPX100/FP WHERE FP = FIRM PRICE AND LP = LOWEST PRICE

  23. NEGOTIATIONS • Sequence • Technical negotiations • Methodology and staffing • Final TOR • Staffing schedule • Client inputs • Consultant outputs • Activity schedule • Skills transfer • Financial negotiations • Staff month rates (price not an evaluation factor) • Reimbursable costs (foreign & local) • Surveys, equipment • Payment schedules • Transportation • Housing and offices

  24. SAMPLE BREAKDOWN OF MONTHLY RATES* (Based on audited statements)

  25. SAMPLE OVERHEAD(BUSINESS COSTS OF FIRM) PERCENTAGE OF SALARY • OFFICE RENT/AMORTIZATION 16 • OFFICE UTILITIES 8 • ADMINISTRATIVE SALARIES * 16 • NON-BILLABLE SALARIES * 15 • PRINTING & REPRODUCTION 4 • COMPUTER COSTS 8 • TRANSPORT 6 TOTAL • DONATIONS 1 128 • BUSINESS DEVELOPMENT 17 • DEPRECIATION 7 • AUDITING 2 • INSURANCE 7 • COMMUNICATIONS 12 • INTEREST 3 • TAXES 2 • PERSONNEL DEVELOPMENT 4 *Includes social charges

  26. SAMPLE SOCIAL COSTS*

  27. SELECTION OF CONSULTANT TYPES OF CONTRACTS • Lump sum • Time-based • Retainer and/or contingency fee • Percentage • Indefinite delivery • Individual

  28. SELECTION OF CONSULTANT IMPORTANT CONTRACT PROVISIONS • Currency • Payment provisions • Bid and performance securities • Borrower’s contributions • Conflict of interest • Price adjustment • Professional liability

  29. SELECTION OF CONSULTANT IMPORTANT CONTRACT PROVISIONS • Staff substitution • Applicable law • Dispute resolution

  30. SELECTION OF CONSULTANT COMMON PROCUREMENT ISSUES • Short list • Selection procedure (QCBS, QBS, fixed budget, least cost, qualification, single source, etc) • Use of appropriate form of contract • Conflict of interest • Sole source justification • Selection under trust funds and continuation • Repeated extensions (sole source) • Services solicited without contract signature • Hiring of individuals by PIU and their eligibility

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