1. Selection of Consultancy Services
Methods Defined under the World Bank Guidelines
by Arif Hassan

2. Methods of Procurement – Consultancy Services
Quality and Cost Based Selection (QCBS)
Least Cost Selection (LCS)
Selection Based on Consultant’s Qualifications (SBCQ)
Single Source Selection (SSS)
Fixed Budget Selection (FBS)
Quality Based Selection (QBS)
Individual Consultants
QCBS
Uses a competitive process among short listed firms that takes into account he quality of the proposal and the cost of the services.
Steps:
TOR, Cost Estimate, Advertising, Shortlist, RFP (LOI, ITC, Proposed Contract), Tech evaluation, Financial Eval., Final evaluation of quality and cost, negotiation and award.
QBS
Where QCBS is not most appropriate. Bank will satisfy itself that:
-Complex or specialized assignments where difficult to define input from consultants.
- Expectation of innovativeness.eg country economic, or sector studies
-Where there is a downstream impact and it is best to have experts e.g faesibility or structural design wok for say dams.
-Assignments that can be carried out in several ways so that proposals may not be comparable.
Consultants qualifications CQ
Small assignments where evaluating competitive proposals is not justified. Borrower shall prepare TOR, Request EOI, establish shortlist and select the most appropriate firm. The selected firm the will be asked to submit a technical and financial proposal.
Single source
Issues –possibly non transparent, no benefits in terms of quality and cost, and could encourage unacceptable practices
For tasks that represent a natural continuation of a task previously carried out; where rapid selection is necessary e.g. emergencies, small assignments where only one firm is qualoified

3. Quality and Cost based Selection (QCBS)
Notification and advertising
Short-listing (inform the Bank)
Preparation of RFP (Bank Approval)
Issuance of RFP to short listed firms
Submission of proposals
Opening of Technical Proposals

4. Quality and Cost based Selection (QCBS)
Technical Evaluation (Bank Approval)
Opening of Financial proposals & Evaluation
Selection of best firm
Limited negotiation
Signing of Contract (Bank approval of draft)
Publication of Award

5. Quality cum cost based selection (QCBS)
Combining Evaluation
Weightge of Technical Proposal 60%-90% (generally 80%)
Minimum passing score 60%-70%
Technical and Financial scores are combined according to the weightage

6. Least Cost Selection (LCS)
For standard routine assignments.
Shortlist firms
- Invite separate Tech & Fin proposals
Evaluate Technical proposals as pass or fail
Open Financial proposals of firms passing at technical stage
Award contract to the firm quoting least cost.

7. Selection Based on Consultants’ Qualifications
For assignments < $ 200,000
expressions of interest are invited
best firm is selected
Technical proposal is invited from the best firm OR
Combined technical and financial proposal is invited from the best firm
Contract is negotiated.

8. Single Source Selection
Assignments < $ 100,000
Emergency Procurement
Propriety concerns
Contract is negotiated with the best firm

9. Fixed Budget Selection
Simple Assignment and very well defined TOR
Invite expressions of interest
Prepare shortlist
Evaluate Technical proposals
Open financial proposals
Reject all proposals quoting above budget
Invite the firm giving highest scoring technical proposal for signing the contract

10. Quality Based Selection
Large complex assignments, with downstream impact
invite expressions of interest
prepare shortlist
issue RFP to shortlisted firms
evaluate technical proposals
negotiate a contract with the firm giving the best technical proposal

11. Example of an Evaluation Criteria
Short-listing
(Publication of Expression of Interest)
Example of an Evaluation Criteria
Experience 70
Years of establishment
experience in region
experience in sector
experience in similar works
Personnel 30

12. Preparation of RFP - general information - staff-month requirement
Information to Consultants
- general information
- staff-month requirement
- evaluation criteria
Standard forms of Technical and Financial Proposals
Terms of Reference
Standard Forms of Contract

13. Technical Proposal Evaluation Criteria
- Experience
- Methodology
- Personnel
- Training and Skills Transfer 0- 10
- National Participation
Total 100
Minimum Passing Score is given

14. Terms of Reference - An out line of the tasks to be carried out;
- A precise statement of objectives;
- An out line of the tasks to be carried out;
- A schedule for completion of tasks;
Phasing of Assignments
- Training and Skills Transfer
- Support/ inputs provided by the client;
- Outputs required of the Consultant;

15. Technical Evaluation
- scores based on the information given in the proposal.
- Judgment in interpretation of information
- understanding, innovation, clarity, responsiveness, value addition, flexibility, total quality management.
- follow the given criteria

16. Financial Evaluation - arithmetic check - all services costed
- tax exclusive evaluation
- taxes included in recommended cost
- least cost is taken as 100, all other costs are wieghted accordingly

17. Generic Problems - short listed firms fails in experience
- a wide range of scores from various evaluators
- Report contradicts with scores
- CVs not signed
- Proposed personnel not available
- Status of firms’ association not clear
- taxes not given clearly

18. Negotiations - Methodology - Work Plan and Activity Schedule
- Scope of work
- Methodology
- Work Plan and Activity Schedule
- Staffing
- Special Conditions of Contract
- Staff rates, reimbursable expenses and total contract price (only for QBS, CQS, SSS)

19. Contracts - take precedence over RFP, proposal and negotiations
Consultants methodology may be attached to the contract
outcome of negotiations should be incorporated in the contract

20. Types of Contracts - Time based (Large) - Time based (Small)
- Lumpsum (Large)
Lumpsum (Small)

21. Least Cost Selection (LCS) A Debate
least cost incurred to the procuring agency
no consideration for good technical offers
- lesser authority of the evaluating committee

22. Least Cost Selection (LCS) Word of Caution
very cautious shortlisting
very detailed terms of reference
clear evaluation criteria
technically aware evaluation committee
cognizance to fail any firm not adequately responsive to the methodology