2. Introduction Procurement of Consultant Services (based on PPA 2004 and Best Practices) Presented by: NM Lema Macrh, 2013

3. Definitions “procurement" means buying, purchasing, renting, leasing or otherwise acquiring any goods or works or services by a procuring entity and includes all functions that pertain to the obtaining of any goods or works or services including description of requirements, selection and invitation of tenderers and preparation and award of contracts; “procurement" means buying, purchasing, renting, leasing or otherwise acquiring any goods or works or services by a procuring entity and includes all functions that pertain to the obtaining of any goods or works or services including description of requirements, selection and invitation of tenderers and preparation and award of contracts; Services include: Consultant and Non-consultant Services; Services include: Consultant and Non-consultant Services; We shall confine this training to procurement of Consultant Services Only We shall confine this training to procurement of Consultant Services Only

4. Definition “Consultant” means a company, corporation, organization, partnership or individual person registered or capable of being registered by the relevant professional regulatory body engaged in or able to be engaged in the business of providing services in architecture, economics, engineering, surveying, accountancy, auditing, taxation law, management or any field of professional activity including technical assistance, and who is according to the context, a potential party of the party to a contract with a client. “Consultant” means a company, corporation, organization, partnership or individual person registered or capable of being registered by the relevant professional regulatory body engaged in or able to be engaged in the business of providing services in architecture, economics, engineering, surveying, accountancy, auditing, taxation law, management or any field of professional activity including technical assistance, and who is according to the context, a potential party of the party to a contract with a client.

5. A professional A professional is a person engaged in one of the learned professions; A professional is a person engaged in one of the learned professions; For example, a professional engineer in Tanzania is one registered with Engineers Registration Board as such. For example, a professional engineer in Tanzania is one registered with Engineers Registration Board as such. Lawyer…. Lawyer…. Accountants… Accountants… Teachers….. Teachers…..

6. Basic Principles The need to obtain the best value for money in terms of price, quality and delivery having regards to set criteria; The need to obtain the best value for money in terms of price, quality and delivery having regards to set criteria; Equality of opportunity to all prospective consultants; and Equality of opportunity to all prospective consultants; and Fairness of treatment of all parties. Fairness of treatment of all parties. Public procuring entities required by Law to ensure honesty, fairness and openness when dealing with bidders. Public procuring entities required by Law to ensure honesty, fairness and openness when dealing with bidders.

7. General Principles – Equality of Opportunity Ensure widest possible participation of bidders Ensure widest possible participation of bidders Publication of tenders in local newspapers of wide circulation and other important information media.Publication of tenders in local newspapers of wide circulation and other important information media. Neutral specificationsNeutral specifications Specifying selection criteria in Tender documents and ensure selected tender conforms to the selection criteriaSpecifying selection criteria in Tender documents and ensure selected tender conforms to the selection criteria

8. Need for Employment of Consultants No expertise to provide the service internally within the respective organisation No expertise to provide the service internally within the respective organisation Low capacity even if expertise is available Low capacity even if expertise is available To derive benefit from expertise from outside the Client ’ s organisation (through increased value for money To derive benefit from expertise from outside the Client ’ s organisation (through increased value for money donor conditionalities donor conditionalities

9. Need for a Consultant? Specific long term benefits – build specific internal capacity through training; Specific long term benefits – build specific internal capacity through training; Capacity building of strategic nature – build capacity for use to generate funds Capacity building of strategic nature – build capacity for use to generate funds IF JUSTIFIED THEN THERE IS NEED FOR ENGAGING A CONSULTANT IF JUSTIFIED THEN THERE IS NEED FOR ENGAGING A CONSULTANT

10. What should a consultant do- Terms of Reference (TOR) Definition of Terms of Reference: Definition of Terms of Reference: “ task description for delivery of the project's services e.g. for a consultancy; the set of guidelines prepared by the organisation contracting out the work which establish the aspirations and logistics ”

11. Preparation of Terms of Reference The Client shall be fully responsible for preparing the TOR for the assignment so that the scope of the services described in the TOR shall be compatible with the available budget. The Client shall be fully responsible for preparing the TOR for the assignment so that the scope of the services described in the TOR shall be compatible with the available budget. For any consultancy services to be procured by the Client, the TOR shall be prepared to inform consultants of the intended scope of work when they are invited to submit proposals and to define the consultant ’ s services in the contract to be negotiated after selection. For any consultancy services to be procured by the Client, the TOR shall be prepared to inform consultants of the intended scope of work when they are invited to submit proposals and to define the consultant ’ s services in the contract to be negotiated after selection.

12. How do the Consultants know you that need their services? Advertise and request for Expression of Interest. (Are they interested?) Advertise and request for Expression of Interest. (Are they interested?) Ask them to inform you of their eligibilities, capacities and experience for the intended project. Ask them to inform you of their eligibilities, capacities and experience for the intended project. Only those Consultants that are interested will express interests. Only those Consultants that are interested will express interests. Their Expressions of Interest will be evaluated and a shortlist. Their Expressions of Interest will be evaluated and a shortlist.

13. Request for Proposals Short-listed consultants are issued with documents requesting them to submit consultancy proposals – Request for Proposals (RFP); Short-listed consultants are issued with documents requesting them to submit consultancy proposals – Request for Proposals (RFP); RFP contains the ToR, the conditions for submission, the time, place and date for submission, the criteria for evaluation; the format for submission and the proposed agreement when selected; etc. RFP contains the ToR, the conditions for submission, the time, place and date for submission, the criteria for evaluation; the format for submission and the proposed agreement when selected; etc. RFP will then be evaluated as per criteria. RFP will then be evaluated as per criteria.

14. There are several methods that can be used for selecting a consultant based on: There are several methods that can be used for selecting a consultant based on: Technical qualityTechnical quality Combined technical quality and price consideration;Combined technical quality and price consideration; Compatible technical criteria and least cost;Compatible technical criteria and least cost; Fixed budgetFixed budget Consultants qualificationsConsultants qualifications Available Optional Methods for Selecting Consultants

15. Two Envelop Concept Consultants compete mainly on basis of expertise and competence (quality) rather than price. Consultants compete mainly on basis of expertise and competence (quality) rather than price. Proposals for the two are submitted separately – two envelops; Proposals for the two are submitted separately – two envelops; Consultants are first evaluated on the basis of expertise and then cost. Consultants are first evaluated on the basis of expertise and then cost. This is to avoid bias on expertise evaluation if one know that price already. This is to avoid bias on expertise evaluation if one know that price already.

16. Selection based on Technical Quality Two envelops used – technical and financial proposal. Two envelops used – technical and financial proposal. Best technical proposal invited for negotiation on price. Best technical proposal invited for negotiation on price. Negotiations should not alter the quality of intended output. Negotiations should not alter the quality of intended output. Used for highly complex and specialised assignments for which it is difficult to define the precise ToR. Used for highly complex and specialised assignments for which it is difficult to define the precise ToR.

17. Combined technical quality and cost Consultants submit two envelops – technical and financial proposal as per RFP; Consultants submit two envelops – technical and financial proposal as per RFP; Technical proposal evaluated as per criteria; Technical proposal evaluated as per criteria; Financial proposals are then opened for tech. proposals that meet minimum requirements; Financial proposals are then opened for tech. proposals that meet minimum requirements; Lowest cost get highest score; Lowest cost get highest score; Technical and financial scores combined to have aggregated score. Technical and financial scores combined to have aggregated score. Highest scoring consultant awarded the project. Highest scoring consultant awarded the project. Suitable for slightly complicated projects Suitable for slightly complicated projects

18. Compatible technical criteria and least cost; Consultants submit two envelops – technical and financial proposal as per RFP; Consultants submit two envelops – technical and financial proposal as per RFP; Technical proposal evaluated as per criteria; Technical proposal evaluated as per criteria; Financial proposals are then opened for tech. proposals that meet minimum requirements; Financial proposals are then opened for tech. proposals that meet minimum requirements; Lowest cost whose technical proposal is above threshold wins. Lowest cost whose technical proposal is above threshold wins. Suitable for routine kind of consultancy assignment. Suitable for routine kind of consultancy assignment.

19. Fixed budget Request for proposal shall have to indicate the available budget; Request for proposal shall have to indicate the available budget; ToR shall be prepared to ensure that the budget is sufficient; ToR shall be prepared to ensure that the budget is sufficient; Technical proposal shall be opened first and then financial proposal; Technical proposal shall be opened first and then financial proposal; Proposal that exceeds the available budget shall be rejected; Proposal that exceeds the available budget shall be rejected; The Consultant that has the highest ranked technical proposal shall be invited for negotiation; The Consultant that has the highest ranked technical proposal shall be invited for negotiation; Used when the assignment is simple and tasks can be determined precisely and budget is fixed. Used when the assignment is simple and tasks can be determined precisely and budget is fixed.

20. Selection Based on Consultants Qualification ToR to be prepared; ToR to be prepared; Request for Expression of Interest (EOI); Request for Expression of Interest (EOI); Select consultant on the basis of experience and competence relevant to the assignment; Select consultant on the basis of experience and competence relevant to the assignment; Prepare a shortlist; Prepare a shortlist; Select consultant with most appropriate qualifications; Select consultant with most appropriate qualifications; Used for very small assignments Used for very small assignments

21. Assignment No. 1. Preparation of Expressions of Interest Preparation of Expressions of Interest