19 September 2010

Draft Guidance Note

For use with the Standard Request for Proposals – Consultants (Firms)

INTRODUCTION

This Guidance Note is intended to be used with the Standard Request for Proposals –
Consultants (Firms) (SRFP -- F), issued by the NPTA in [September, 2009] for use in bidding
proceedings for procurement of consultancy services (from firms). For the purposes of
understanding the notion of “consultancy services” in order to determine whether this SRFP
applies, procuring entities should refer the definition of the term “consulting services” in sec.
2(d) of the Procurement Act, 2003 (hereinafter, “the Act”). This SRFP -- SC is intended to be
used with the request-for-proposals method pursuant to the Act (sec. 44 – 51), when proposals
are solicited from consultancy firms rather than from individual consultants. The general
principles applicable to the content of the request for proposals are set forth in the Act (art. 45).

This SRFP -- F is intended for procurement of consultancy contracts larger than the small
consultancy assignments for which the SRFP — Small Assignments (SBD—SG) may be more
appropriate. Procuring entities should be aware that the NPTA may issue guidance as to limits
on the use of this SRFP -- F based on the estimated value of the contract being procured, and
according to which the SFRP — SA should be used.

The SFRP -- F is a standard document and should not be modified. Procuring entities should
only fill in the information specific to a particular procurement in the blank spaces indicated in
the document.

How standard request for proposals documents work

It is important to understand from the outset how the information provided in the request for
proposals document package is arranged when standard request for proposals documents
(SFRP’s) are being used. As described below, some parts of the SFRP documentation are
always the same (i.e., always contain the same standard text), while certain other parts of the
SBD’s contain slots where information particular to each procurement should be indicated and
provided. The Letter of Invitation is standard, which means that the LoI document does not
change from one proceeding to the next; the LoI always remains the same. Certain specific
aspects of the ITC that do need to be filled in with information specific to each procurement
proceeding are entered in blank spaces in the LoI. Along the same lines, the General Conditions
of Contract (GCC) contain basic contract conditions that remain the same from one procurement
transaction to the next, while specific aspects that potentially do change from one case to the
next are stipulated in the Special Conditions of Contract (SCC). With respect to contract
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conditions, it should be noted that this SRFP contains contractual clauses for use in lump-sum
priced contracts.

A. PURPOSE OF REQUEST FOR PROPOSALS DOCUMENTS

The purposes of the request for proposals documents include:

(a) To provide the procuring entity with the template for the notice seeking expressions of
interest in being included in the shortlist of consultants participating in the request for
proposals proceeding;

(b) To provide shortlisted consultants with the description of the services being procured so
as to enable them to submit responsive and competitive proposals;

(c) To inform shortlisted consultants of the rules and procedures applicable to the request for
proposals process, including the requirements applicable to the submission of proposals, ,
and the criteria and procedures to be used in evaluating and ranking proposals for the
purposes of determining the winner;

(d) To inform shortlisted consultants of the applicable contract conditions .

It should be noted that the preparation of the bidding documents may be subject to approval
under the applicable rules and procedures.

The procuring entity should be aware that, in line with the rule in the Act (sec. 48(1)), it must
respond to requests received “within a reasonable time” prior to the deadline for submission of
proposals.

NOTICE SEEKING EXPRESSIONS OF INTEREST

Please note that The Act (sec. 44(1)) refers to the solicitation of proposals from consultants that
the procuring entity includes in a shortlist. That shortlist is to be established on the basis of
expressions of interest from consultants in response to a published notice seeking expressions of
interest.

SECTION 1. LETTER OF INVITATION

The Letter of Invitation (LOI) document as set forth in the SFRP -- F package is the invitation
document used by the procuring entity to solicit proposals from the participating consultants
(firms) for the consulting services being procured.

The LOI performs a function analogous to that of the Instructions to Bidders in tendering
proceedings for the procurement of goods, works or non-consultative services. The LOI
provides the information shortlisted consultants require in order to understand how to prepare
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and submit proposals responsive to the requirements of the procurement entity. As noted above,
the core ITC documents is standard, i.e., it is unchanged from one procurement proceeding to the
next. Information supplementing or specifying the general information in the ITC so as to
provide information specific to each respective procurement proceeding is provided in the Data
Sheet (DS).

Highlighted below are its key aspects and purposes, and considerations that the procuring entity
may need to take into account in filling in the LOI form in actual proceedings. If consultants are
being charged a fee for the RFP documents, the amount of the fee should be stated in the LOI.
The fee, if any, should reflect only the cost of printing and distributing the RFP package.

Identifier

Various types of identification information should be inserted into the LOI. That should include
the identification of the procuring entity, the name and coordinates of the responsible official,
and the date and number of the invitation and and the procurement proceeding number.

Each LOI should be assigned a unique identification number, which should correspond to the
identification number of the procurement proceeding to which the LOI corresponds. That
number should also be filled in.

Para. 1

The name of the procuring entity should be inserted here, along with a brief description of the
scope of the assignment.

Para. 2

Here the procuring entity should state the purpose of the assignment.

Para. 3

Here the procuring entity provides to participating consultants a list of the main documents in the
RFP on the basis of which consultants will prepare their proposals.

Para. 4

The first paragraph makes it clear that technical and financial proposals should be submitted in
separate parts (envelops). That facilitates the particular manner of evaluation of proposals in the
context of consultancy services (separate evaluation of technical and financial proposals, with
the technical proposals of all consultants evaluated before any consultant’s financial proiposal
envelop is opened.

Here the procuring entity should fill in the information about the place and deadline for
submission of proposals.

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Para. 5

A bid securing declaration must be signed by each consultant submitting a proposal according to
this provision. Nevertheless, procuring entities should note that mere inability successfully to
negotiate a contract with the winning consultant is not grounds for imposition of sanctions
pursuant to the bid securing declaration.

Para. 6

This provision in the LOI requires bidders to submit certificates of compliance with GRA and
NIS obligations.

Para. 7

This provision refers to the application of a “least cost” selection method for procurement of
consultancy services, according to which the lowest priced proposals is accepted from among
those proposals that attain the minimum required threshold technical scoire in order to be
considered for contract award (as specified in Annex A). The criteria to be applied in
determining whether technical proposals attain the required threshold technical score are to be
specified in Appendix 2 (Supplementary Information for Consultants). The Act (art. 46(c) refers
to such a selection method. The Act (sec. 46(a) and (b)) also refers to the selection methods
widely referred to in practice as “quality and cost based selection” (QCBS) and the the fixed
budget selection, as well as the selection method known in practice as “quality-based selection”
(QBS) (sec. 47 of the Act).

Para. 8

In the first paragraph, there are blank slots into which the procuring entity must fill in
information about the expected date of commencement of negotiations with the first ranked
consultant, and the expected commencement date for the assignment.

The second paragraph describes the process of negotiation. As to the permissible scope of
negotiation of financial aspects in finalizing the contract with the selected consultant, the basic
principle is that elements of the financial proposal that were a factor in the comparison and
ranking of consultants should not be the subject of the negotiations.

Another basic principle applicable to the negotiations in finalizing the contract with the selected
consultant is that the procuring entity should be able to rely on the availability of the key
personnel in the successful consultant’s technical proposal. The provision also mentions the
possibility that a consultant may be disqualified if those persons are not in fact available. Lastly,
it states the key rule that if the procuring entity is to consider accepting a replacement, that
replacement must have equivalent or better qualifications and experience than the person that
would be replaced.

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Para. 9

There is a blank space here into which the name of the procuring entity must be entered.

Para. 10

This is an important provision in the LOI because it seeks to raise awareness of and promote the
formation of joint ventures involving local partners from Guyana. The procuring entity should
be aware that such associations of bidders may take place purely on a national basis, as well as
between foreign and domestic parties. (See also sec. 10 of the Supplementary Information for
Consultants appendix).

The procuring entity should be aware that the evaluation of the qualifications of joint ventures or
other types of associations or groupings of firms to submit a proposals presents certain specific
considerations (e.g., distinguishing between those qualification requirements that must be met by
each individual member of the joint venture and which may be met onn a cumulative basis by
combining the values for the individual members of the joint venture).

Para. 11

This provision contains a blank space into which the procuring entity should enter its estimate of
the number of man months need to carry out the assignment.

Para. 12

The LOI establishes a required proposal validity period; that should be understood as the period
of time during which the key personnel offered in a consultant’s proposal should be available to
be awarded the assignment as the proposed team.

Para. 13

This provision encourages consultants to visit the site when that is relevant to obtaining better
familiarity with the assignment which contributes to more effective proposals that better meet the
needs of the procuring entity. The procuring entity must facilitate access to the site visits for
consultants participating in the procurement proceeding and who may wish to make site visits.

Para. 14

Here the procuring entity must fill in the expected date of commencement of the assignment (see
also sec. 8, first para. in this LOI).

Para. 15

This states the basic conflict of interest rule applicable in procurement of consultancy services,
that affiliated companies may not bid for procurement contracts related to or following on from
the project to which the consultancy assignment relates. Guarding against conflicts of interest is
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particularly important in the context of consulting services, in view of the overarching principle,
enunciated in para. 2.1, that consultants must at all times provide professional, objective and
impartial advice and at all times hold the procuring entity’s interests paramount. Conflict of
interest issues are not addressed in the Act, neither are they addressed in the Regulations. Even
if such issues were addressed there, it would be important to include a statement of conflict of
interest rules those rules in the LOI to ensure that both the procuring entity and the participating
consultants are well aware of them.

See also sec. 3 (evaluation of proposals) of the Supplementary Information for Consultants, for
additional provisions on conflicts of interest.

Para. 16

The purpose of this provision is to clarify the tax liability and withholding procedures for
payment to domestic and to foreign consultants.

Para. 17

Here the LOI requests consultants to confirm receipt of the LOI and indicate to the procuring
entity whether or not they intend to submit a proposal.

Appendix 1 Terms of Reference

This is a particularly critical component of the request for proposals document package because
it is here that the procuring entity provides the participating consultants with the information that
they require to prepare responsive proposals.

Appendix 2 Supplementary Information for Consultants

This part of the SRFP—F provides consultants with further information concerning the
preparation and submission of proposals. The various forms to be filled out by each consultant
and included in their respective proposals are introduced here.

The Act (sec. 48(3)) refers to the possibility of the procuring entity convening a pre-bid meeting.
The procuring entity, if it plans to convene a pre-proposals conference, should indicate in the
LOI its intention to do so.

In sec. 1(a)(vi) the name of the procuring entity should be inserted.

In sec. 1(b), second subparagraph, the procuring entity is called upon to specify (vi) the name of
the procuring entity should be inserted. For the purposes of enabling shortlisted consultants to
prepare responsive financial proposals, the reimbursables are to be indicated in the proposals.
Examples of reimbursable expenses are provided in the form. This information is sought not
only in time-based contracts, but also in the case of lump-sum-priced contracts (in particular for
the purposes of pricing possible additional work under the procurement contract.
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In the first sentence of the last subparagraph of sec. 4 (contract negotiation), the name of the
procuring entity is to be inserted (see also sec. 1(a)(vi)). There is a blank space in sec. 5 (review
of reports) into which the procuring entity must insert the names of the members of the review
committee to which the provision refers.

Section 6 (modification of contract) refers to the requirement that modifications must be in

writing. It should be noted by the procuring entity that contract modifications should not be
outside of the basic nature and scope of the procurement contract.

Section 3. Technical Proposal -- Standard Forms

Form NO. F– 1 Technical Proposal Submission Form

This form is analogous to the bid submission form in the procurement of goods, works and non-
consultative services. It states the basic commitment of the consultant to offer the concerned
services, to negotiate on the basis of the proposed staff, and, if a contract is concluded, to
commence the assignment on the date indicated in the DS (para. 21.1). The form is to include a
slot in which the consultant should mention any associated consultants involved in the proposal,

Form F– 2 Major work during last ten years which best illustrates qualifications

On this form, the consultant should provide information on the consultant’s experience during
the past ten year period.

Form F– 3 Format of Curriculum Vitae (CV) for Key Personnel of Consultant

This form presents a standard format to be used by consultants for presenting the curricula vitae
of the key personnel.

Form F– 4 Work Plan Time Schedule

This is a particularly key portion of the technical proposal since it is here that the consultants can
demonstrate their understanding of the TOR and the assignment, and explain the technical
approach and methodology that they intend to use in carrying out the assignment, as well as
laying out the proposed work plan. Here consultants are invited to suggest any modifications or
improvements to the TOR they may have to suggest.

Form F-5 Cost Estimate of Services

This form is to be used by consultants as part of te financial proposals to state the remuneration
rates and totals for the key personnel. The second part of the form concerns information on
reimbursable expenses.

Section 6. Standard Forms of Contract

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Form of Contract

This is the contract form to be signed by the procuring entity and the successful consultant.
Alternative wording is presented, so that the form can be used, with proper adjustment of that
alternative wording depending upon whether the contract pricing is time-based or lump-sum.
Other customizations that have to be done in each case include the names of the parties,
identification of the appendices being used from among those provided.

It should be noted that, if the consultant consists of more than one entity, each of tof those
entities should sign the contract form.

Sample Contract for Consulting Services – Lump Sum Payments

General Conditions of Contract (GCC)

Clause 1

This provision outlines the basic parameters of the obligations being undertaken by the
consultant, with specific references to a number of annexes to the contract. (Annex A, Terms of
Reference, Annex B, Consultant’s Personnel, Annex C, Consultant’s Reporting Obligations).

Clause 2

The procuring entity should fill in the information called for in the blank spaces (date of
commencement and completion date).

Clause 3

In Clause 3.A, the procuring entity should fill in the maximum amount payable;e under the
contract as a lump-sum payment to the consultant. In Clause 3.B , the payment schedule should
be specified. Clause 3.C is a contractual commitment that payment will be made within 30 days
following submission of the invoice.

Clause 4

In Clause 4.A there is a blank space for designating the procuring entity’s Coordinator.

Clause 5

This provision authorizes the porocuring entity to retain 10 percent from each progress payment

Clause 6

This provision establishes a liquidated damages procedure in case of delay by the consultant in
performance of the contract. (See also Clause 10)

Clause 7
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This provision regulates the issuance of advance payments, which are subject to a twenty percent
cap and to the consultant furnishing an advance payment guarantee.

Clause 13

This provision establishes the general rule that the procuring entity owns the studies, reports, etc.
prepared by the consultant for the procuring entity under the contract, and refers to the SCC for
restrictions on future use of the documents. Possible alternative formulations for such
restrictions are presented in the SCC.

Clause 15

This clause requires the consultant to take out any appropriate insurance. It would be prudent for
the procuring entity to make it clear in the Request fro Proposals the type of insurance required
to be put into place.

Clause 17

Normally the contract language to be specified is English

Clause 18

This provision should be used for specifying whether arbitration or litigation are to be used for
settling of contract implementation disputes that may arise and which the parties are not able to
settle amicably.