Procurement of Consulting

Services
ANJAY KUMAR MISHRA

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 Consulting Services
 “Consultant” means any entity or
person that may provide or provides
the Services to the Client under the
Contract.
 Intellectual and professional activities
based on skill, expertise knowledge and
experience to provide professional advice
and technical assistance such as planning,
design and implementation of projects
etc.
 Which does not have physical output.
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Usefulness of Consulting Services
Provides access to latest technology and
expertise of particular competence as and
when required without hiring permanent
staff,
Provides flexibility to organizations to adapt
to changing conditions with less people
employed,
Time bound results as per agreement.
Provides independent knowledge to the
benefit of the PE,
Avoids conflict of interest,
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Usefulness of Consultancy Services.

 Provides transfer of knowledge,

skill and technology to the
executing agency
 Provides quality and cost
effectiveness
 Frees PE from day to day
functions of project
implementation
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 Conditions for Obtaining Consulting Services
 Consulting Services can be obtained in the following
conditions:
 If the work cannot be performed by the available
manpower in the PE

 PE may engage consultants over defined periods of

time to complement its in-house capabilities.
 need of specialized professional and independent
advice or
 when the permanent hiring of professional staff is
not justified,

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Differences Between Goods/Works and
Consulting Services
Consulting Services Goods and Works
Two stage Generally Single Stage
Emphasis on competence/ Emphasis on Price
capacity qualification
Knowledge Based Product Based
Short list Open competition
Terms of Reference Technical Specifications
Request for proposal Invitation for bid
Method based Negotiations Generally no negotiation
No Securities? Bid & Performance Securities

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 Preparation for Procurement Proceedings
1. Identify procurement requirements (From Units,
Sections or Divisions -Type, quality, quantity,
time, estimated price, budget source)
2. Collect market information about procurement
contract in practice to resolve various technical
matters and ascertain the availability of
consultants of the type required (Solve Technical
Details, Consultant availability)
3. Study procurement proceedings of consultancy
service of similar nature that was procured in
the previous year of the procuring entity (The
experience of other public entity of hiring
consultants can also be useful)
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 Preparation for Procurement Proceedings

4. Ascertain the details, quantity and scope of

procurement ( Terms of Reference (ToR))
5. Divide the procurement into a more
convenient group or including into package
(Based on ToR, Individual or Firms,
Similarity and Nature of Service etc.)
6. Prepare Cost Estimate
7. Prepare the procurement plan (Master or
Annual Procurement Plan, if necessary)
8. Identify financial source and amount of
procurement (Budget, Program and
Accounting Code) 8
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Preparation for Procurement Proceedings
9. Select procurement/selection method
/agreements: (Direct or RFP Method and
Selection Methods, Contract Agreements)
10. Prepare Procurement Document including EOI
evaluation criteria and RFP evaluation criteria,
11. Conduct Procurement Proceedings: Solicitation,
Submission, Opening, Examination and
Evaluation, Evaluation Reports, Selection and
letter of Intent, Review (entity chief or Review
Committee, if any), Negotiation, Invitation for
Contract Agreement and Award of Contract)
12. Contract Implementation and follow up
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 Preparation of
Terms Of Reference

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 Consideration in ToR
 Should be adequate and clear for the
understanding of the assignment and
subsequently its correct execution.
 Should explain the details necessary to carry
out the assignment
 The objective & scope of work should be
realistic and consistent with the available
budget and program
 TOR should take into account the
organization, technical expertise and the
institutional strength of the Client

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 Terms of Reference
 (1) Background :
 Introduction of the Procuring entity and objective
detail,
 project history, location and rational of the
assignment
 need of consultant, issues to be resolved ,
 source of fund
 The legal aspects of the entity, etc
 (2) Objective of the Assignment :
for Development program; feasibility studies; design
of project; preparation of bidding documents;
supervision of works; institutional strengthening etc

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 (3) Scope of the Service :
 Main activities and their expected results,
 Desired level of details (level of design,
accuracy composition of cost estimates
etc,),
 Main issues to be addressed
 Alternatives to be considered,
 surveys and investigations,
 Change of scope in phased assignments
etc.

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 4. Specific Job Responsibilities
 List the exact deliverables of the consulting
services, like:
 Prepare the report
 Submit the design and survey results
 carryout the research
 Design model
 Policy Analysis
 supervision
 Procurement services (bid document preparation,
evaluation, training, contracts supervision/
administrtation etc)
 Other specific jobs which match with the objectives
and scope of services
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(5) Previous study and the basic data
• Availability of Previous study and the
basic data concerning the assignment,
 Relevant Publications,
 Research Studies,
 Designs and drawings,
 Reports related with the consulting
service
 Databases, and
 Other relevant Information

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(6) Transfer any knowledge or skill
 TOR should provide the specific details on
requirements of services and ask consultant
to propose their approach and methodology
if Capacity Building & Transfer of knowledge
is specific objective of the services to the
Public Entity, details thereto, and
documentation of the knowledge transfer
 Trainings : Employees levels, Number, type
of trainings (technical, operational,
conceptual etc.)

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 (7) The functions and qualifications of
the key personnel :
 Each positions held by the consultant or its
staffs
 The specific responsibilities of the
consultant staffs such as The team leader,
designer, programmer, Software engineer,
network /database administrator etc
 The estimated time required for the work to
be performed by them individually, the
Person man-months, full or intermittent

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 ToR (Time and Facilities)
(8) Time for completion : Need to mention the
tentative time for the completion of
assignment by the consultant.

(9) Facilities to the Consultant :

 Description of information, reports,
data's and facilities to be provided by
the Client
 Physical facilities that will be made
available by the Client e.g.. Computers,
software, office space, vehicles,internet
service, equipments etc.
 Staffs
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 Terms of Reference..
(10) Reporting requirement: Details of the
report, data, drawing and survey report
etc. to be submitted by the consultant.
 Specify the reporting requirement eg. Inception,
Progress Reports, Interim Project reports ,Draft
Project Report , Final Project Report ,Completion
Report etc,
 and their schedule and frequency where applicable
 format, number of copies, names of recipient of the
reports etc
Reporting requirement should be adequate
to inform the client but should not be
excessive to keep the consultant busy in
unnecessary reporting

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 Terms of Reference..
11. Institutional & Organization
arrangement
 TOR should define the institutional
arrangement for the assignment,
 Indicate the role and responsibilities of
all those involved in the organization,
 Should define the hierarchy and level of
authority of counterpart personnel ,
 Information on the level of experience of
Client’s personnel who will be integrated
in the consultant’s team.

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 Terms of Reference..
12. Selection Method

TOR should define the applicable

selection method:
 Indicate selection method,
 Indicate applicable Rules,
Regulations or Guidelines

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 Terms of Reference

ToR should not include:

 Methodology
 Detail Work Program.

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Cost Estimate of
Consulting Service

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Cost Estimate of Consultancy Service
The TOR is the basis for
preparation of the cost estimate.

Therefore, the accuracy of the

estimate increases with the extent
of service requirement details in
the TOR

Currency of cost estimate

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Cost Estimate of Consultancy Service
 Cost Estimate of consultancy service is a must
 For cost estimate following matters shall be
taken into account:-
(a) The norms prepared by the PE,
(b) ToR of the concerned consultancy service,
(c) Actual cost incurred on the procurement of
the same nature made in the current or
previous years by the concerned Public Entity
or other Public Entity.
 Cost estimate shall be prepared by adjusting
price to the rate of previous years.
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 Cost Estimate: Component of costs

 Cost estimate shall include the following costs:

Remuneration: Key Professional and other
manpower,
Reimbursable Expenses: Travel, residential
for manpower, office expense, necessary
goods, equipment and services expenses,
report translation, printing expense etc
Provisional Sum: For training, seminar and
travel, and equipment
Contingencies (Price and Physical): Price
adjustment and addition in the scope of work 26
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 2. Reimbursable Expenses
Procurement VO/Causes
Procurement/Consultancy
/ConsultancyServices
VO/Causes
Services

 Travel and transportation (international &local)

 Vehicles
 Staff allowance (overseas allowance, per diem,
subsistence allowance)
 Communication : reasonable monthly allocation of
local and international communication
 Office /or rent ,
 Supplies ,equipment
 Insurance
 Survey and investigations
 Report and Printing

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3. Provisional Sums & Contingencies

 Provisional Sum:
 Training, Seminar Workshops etc.
 Equipments / other Procurement needed to
complete the works (Software + Hardware)
 Contingences (Physical and price): Not
more than 20 percent of the cost estimate?
 Provisional Sum & Contingences are not
competitive part.

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 SelectionMethod:
SELECTION METHOD:
(i) Quality and Cost Based Selection Method,
(ii) Quality Based Selection Method,
(iii) Fixed Budget Selection Method,
(iv) Least Cost Selection Method
(v) Single source/Direct contracting

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Request for Expression of
Interest

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Thank You

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