Presentation is loading. Please wait.

Presentation is loading. Please wait.

Procurement of Consultancy Services. 2 Differences between.

Similar presentations

Presentation on theme: "Procurement of Consultancy Services. 2 Differences between."— Presentation transcript:

1 Procurement of Consultancy Services

2 2 Differences between

3 Selection Methods available Quality and cost based selection Quality based selection Fixed Budget selection Least Cost Selection Selection based on Consultants’ Qualifications Single Source Selection

4 What to include in the RFP? References, contact points and contract arrangements Description and specification of services required Instructions to Bidders (ITB) and Bid Data Laws, Rules or Regulations under which Procurement is undertaken Selection criteria and the methodology of evaluation Budget for FBS Estimated budget or estimated no. of key staff or inputs (NOT BOTH) for other methods Any qualification criteria Terms and types of contract

5 Evaluation Criteria Specific to each individual procurement activity Some criteria are common to all procurement, such as: – technical competence / expertise; – experience / track record; – cost; – quality / specification; – compliance with requirements of the bid.

6 QCBS Most widely used or ‘default’ method When compromise between quality and cost required When scope of the assignment could be precisely defined and ToR is well specified and clear Inputs and costs for staff time, etc could be clearly estimated

7 Primary Criteria Relevant experience for the assignment; Quality of the methodology proposed; Minimum expected qualifications and experience of the key staff proposed; Subject to the nature of the assignment, it may also include provisions for training/capacity building of local staff; Transfer of knowledge may be the main objective of some assignments; in such cases, it should be given a higher weight to reflect its importance.

8 Apportioning Weightage Depending on the requirements, assign weightage for each criteria and sub-criteria Technical and Financial weightage to be decided. All these to be declared in the RFP

9 Quality Based Selection - QBS Appropriate when complex or highly specialised assignments Innovation and best practices in the field required Long term impact – feasibility studies, design of dams, etc Different ways of execution – policy, etc Normally not used for project-funded procurement

10 Some aspects of QBS In RFP, estimated budget is not disclosed Either only technical proposals are invited or tech. and financial proposals separately Only highest ranked technical proposal – open the financial proposals Detailed financial proposal Negotiation

11 Fixed Budget Selection - FBS Used when the assignment is simple Tasks could be clearly defined Absolutely limited budget or no flexibility available in resources

12 Some aspects of FBS The RFP must indicate the available budget and request the consultants to provide their best technical and financial proposals in separate sealed envelopes, within the stated budget. Terms of Reference have to be carefully prepared to ensure that the budget and TOR are consistent and realistic Technical proposals will be evaluated and bidders who pass the minimum technical score will be invited to a public opening of their financial envelopes. Bidders whose technical proposals fail to meet the minimum technical score will have their financial envelopes returned unopened. Any financial proposals that exceed the indicated budget shall be rejected. The Consultant who has submitted the highest ranked technical proposal within the budget will be selected for award of contract.

13 Least Cost Selection - LCS Appropriate to use for small value services of a routine nature such as audits, simple engineering design or supervision where well-established practices and professional standards exist. Technical proposals are examined to ensure minimum qualification scoring Lowest price among qualified Has disadvantages If funds available, adopt QCBS

14 Selection based on Consultants’ Qualifications (CQS) This method may be appropriate for very small assignments where the need for a full bid process with submission and evaluation of detailed competitive proposals is not justified. There is no formalised technical or financial scoring announced and expressions of interest and information on the consultants’ experience and competence relevant to the assignment are requested through an advertisement. Some criteria to be established so as to ensure that the evaluation is as subjective as possible.

15 Some aspects - CQS basic data to establish the legal status and general experience of the consultant any specific skills, knowledge or experience required for the assignment; minimum expected qualifications and experience of the key staff proposed. Points should be allocated - main difference is that they are for internal use only. Most appropriate consultant will be asked to submit a combined technical and financial proposal.

16 Single Source Selection - SSS lacks the benefit of competition in regard to quality and cost is not transparent in selection, and may encourage unacceptable practices. Single source selection should only be used in exceptional circumstances and only with the express agreement of IFAD.

17 In summary Selection methodUse when looking for….Restrictions for useCriteria to discloseBasis for award QCBSQuality and Cost balanceNoneTechnical and FinancialHighest combined score QBS Highest available quality at any cost Budgetary constraintsTechnical onlyHighest technical score LCS Competence at lowest cost NoneTechnical passmark Lowest price meeting technical threshold FBS Quality within a financial limit NoneAvailable budget Highest technical score within budget CQS Skills, knowledge and experience Low value only Skills, knowledge and experience Best qualified SSS Continuity/speed/ unique skill, knowledge or experience Low value or exceptional circumstances N/ANegotiation

Download ppt "Procurement of Consultancy Services. 2 Differences between."

Similar presentations

Ads by Google