WORLD BANK

SELECTION
OF
CONSULTANT

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 SELECTION OF
CONSULTANT
BASIC PRINCIPLES

High quality services

Economy and efficiency
Fair selection process
Encourage role of national consultants
Transparency
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 SELECTION OF CONSULTANT
MAIN 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
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 SELECTION OF CONSULTANT
CONFLICT 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 consultants earlier consulting services) for
the same project
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 SELECTION OF CONSULTANT
FRAUD 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 firms
accounts and records of the contract
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 SELECTION OF CONSULTANT
ASSOCIATION 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.

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 SELECTION OF CONSULTANT
BANK GUIDELINES

Public notification of large assignments

Restricted competition
Use of request for proposals (RFP)
Different selection methods applicable
as specified in Loan Agreement

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 SELECTION OF CONSULTANT
SELECTION 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
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 SELECTION OF CONSULTANT
SELECTION STEPS
Advertisement
Preparation of shortlist
Request for proposal
Submission and opening of proposals
Evaluation
Technical

Financial

Negotiations and award

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 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
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 SELECTION METHODS

QUALITY AND COST BASED

SELECTION
(QCBS)

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 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

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 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 Banks no-objection of short list no changes permitted without
Banks concurrence
Preparation and issuance of request for proposal (RFP)
Use Banks standard RFP comprising of 1) LOI; 2) information to
consultant (ITC); 3) TOR; And 4) draft contract
After Banks no-objection any changes require Banks concurrence
RFP should indicate estimated staff months and not budget
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 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 Banks no-objection to open
price proposal obtained
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 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 Banks 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
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 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 Banks
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
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 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
Banks prior review and clearance required for RFP, technical
evaluation before financial opening, final selection before
negotiation and draft contract before signing
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 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
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 SELECTION OF CONSULTANT

Individual Consultant
Use when
No teams required

No backup support required

Experience and qualifications paramount

Selection
Qualifications

Interviews

Conflict of interest
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 EVALUATION OF CONSULTANT
EXAMPLE - 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)

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 TECHNICAL EVALUATION
SUMMARY EVALUATION SHEET
(EXAMPLE)
FIRM I FIRM II FIRM III
ITEM WT POINTS RATING POINTS RATING POINTS
RATING a b* aXb c* aXc d* aXd
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

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 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

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 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 23
 SAMPLE BREAKDOWN OF
MONTHLY RATES*
(Based on audited statements)
NAME POSI- BASIC SOCIAL OVER- SUB- FEE ALLOW- TOTAL MULTI-
TION SALARY CHARGES HEAD TOTAL ANCE FEE PLIER
**
----- ---------- 2000 1500 2000 5500 1000 1000 7500 3.75
----- ---------- 3000 1500 2000 6500 1000 --- 7500 2.50

* IN LOCAL OR FOREIGN CURRENCY UNITS

** MULTIPLIER = TOTAL FEE/BASIC SALARY

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 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

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 SAMPLE SOCIAL COSTS*
PERCENTAGE OF SALARY
VACATIONS (15 DAYS) 6.6
SICK LEAVE (10 DAYS) 4.4
MATERNITY LEAVE 3.0
SOCIAL SECURITY 20.0
PENSION PLAN 15.0
INSURANCE
MEDICAL 4.3
ACCIDENT 2.0
LIFE 2.9

TOTAL 58.2

* NOT INCLUDED
NON-BILLABLE TIME
THIRTEENTH MONTH 26
 SELECTION OF
CONSULTANT
TYPES OF CONTRACTS
Lump sum
Time-based
Retainer and/or contingency fee
Percentage
Indefinite delivery
Individual

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 SELECTION OF
CONSULTANT
IMPORTANT CONTRACT PROVISIONS
Currency
Payment provisions
Bid and performance securities
Borrowers contributions
Conflict of interest
Price adjustment
Professional liability

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 SELECTION OF
CONSULTANT
IMPORTANT CONTRACT PROVISIONS

Staff substitution
Applicable law
Dispute resolution

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 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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