The New AMS 15.01 for the Selection and Use of Consultants by IFC

Policy Harmonization The new operational consulting policy harmonizes the policies for the selection and use of operational consultants by all members of the World Bank Group. The policy takes effect with the implementation of the new eConsultant2 system

Policy Objective The objective of the policy is to promote fairness, transparency, and competition while achieving efficiency and economy in the selection and use of consultants by the Bank Group The new policy streamlines and speeds up the selection process and will result in the best consultants being selected

What the Policy Covers Selection of STC’s for operational work Selection of consulting firms for operational work The Corporate Procurement Policies and Procedures Manual (AMS 15.10) continues to cover administrative consulting and the purchase of goods and services

Operational vs. Administrative “Operational Consulting” refers to consulting services in connection with the Bank’s projects and those contracts funded by Trust Funds Administrative goods and services are for the benefit of the WBG and its staff and include construction and renovation, printing, translations, IT goods and services (including web design), security services, driver services, cleaning services, etc.

Roles and Responsibilities of Task Managers Obtaining budget authority Compliance with all applicable policies Compliance with the terms of TF agreements Ensuring the consultants do not have a real or perceived conflict of interest Ensuring the short listed firms meet the Bank Group’s vendor eligibility criteria

Roles and Responsibilities of Task Managers (cont) Ensuring that the Anti-Money laundering / Combating the Financing of Terrorists process has been completed Drafts the TOR Drafts and advertises the EOI Prepares the Short List Drafts and issues the RFP to the short list Manages the evaluation committee Obtains the required clearances and approvals

Roles and Responsibilities of Task Managers (cont) Ensuring that the services and deliverables are in accordance with the contract terms Ensuring that no work or travel begins before the contract has been signed or the appointment letter issued Performs contract administration on firm contracts Maintaining records in accordance with the Records Retention policies

Roles and Responsibilities of Approvers Approvers are typically Sector Managers or Sector Directors Approvers are responsible for ensuring that applicable policies have been complied with prior to approving the selection

Roles and Responsibilities of Procurement Specialists PS’ are responsible for providing clearances and guidance throughout the procurement cycle GSDPR is the designated PS for IFC and for Bank Network VPU’s Acredited PS’ and PAS’ are the PS for Regional VPUs

Roles and Responsibilities of Transaction Processors Transaction Processors (TPs) are responsible for collecting all of the required documentation and approvals TPs create CONS POs that are less than $50,000 (GSDPR issues contracts over $50,000) TPs create and submit SAP requisitions (with required documentation and approvals attached) to GSDPR TPs process payments per the contract terms after obtaining TM’s approval

Roles and Responsibilities of GSDPR GSDPR is responsible for issuing consulting contracts above $50,000 and contract modifications GSDPR assists TMs in their contract administration duties For some business units, GSDPR is the designated PS

Selection Methods The selection methods in the new policy have been simplified for firm selections The number of selection methods have been reduced from seven to three for firm selections: Full competitive selection; simplified competitive selection and single source selection For individuals, the selection methods remain the same: comparative selection or single source selection

Full competitive selection – for firm selections estimated to cost over $250,000 Advertised EOI (14 calendar days) Adequate competition with three or more qualified firms PS clearance and Approver approval of short list PS clearance of draft RFP Evaluation committee of at least three WBG staff Contract award is cleared by PS and approved by Approver

Simplified competitive selection – for firm selections estimated to cost $250,000 or less Advertised EOI only for contracts over $50,000 for contracts under $250,000, advertise EOI for 7 calendar days Adequate competition with two or more qualified firms No clearance or approval of short list Evaluation committee of at least two WBG staff Contract award is not cleared Contract award is approved by Approver

Comparison of Competitive Selections Firm Selection $250,000 and under Firm Selection over $250,000 EOI advertised for 7 calendar days (over $50,000) Invite two or more qualified firms No clearance of short list Evaluation committee of at least 2 WBG staff EOI advertised for 14 calendar days Invite three or more qualified firms Short list cleared by Approver and PS RFP cleared by PS Evaluation committee of at least 3 WBG staff

Comparison of Competitive Selections Firm Selection $250,000 and under Firm Selection over $250,000 Contract award is not cleared Contract award is approved by Approver Contract award is cleared by PS Contract award is approved by Approver

Sourcing Strategy TTL’s should develop their sourcing strategy prior to commencing a selection process Contract payment should be determined (lump sum vs. time and material) If appropriate, the TTL should discuss with GSDPR whether a framework agreement is the best approach for their requirement

Lump sum vs. Time and Materials Contracts Lump sum contracts: Shift responsibility to the firm to complete the work for the stated amount The lump sum amount can include travel expenses, but does not need to Recourse includes withholding payment for deliverables that do not meet contract requirements

Lump sum vs. Time and Materials Contracts Time and Material contracts: Require the TTL to manage the firm’s work The TTL assumes the risk of completing the work within the stated contract amount and ensuring quality Recourse is to request firm to provide appropriately qualified consultants

Framework Agreements Framework agreements provide for an indefinite quantity of services within a general scope of work during a fixed time period at predetermined rates Typically multiple contracts are awarded to qualified firms Consulting firms are normally engaged on a project by project basis Where appropriate, framework agreements with consulting firms may be appropriate

Framework Agreements (cont.) Task Orders referencing the framework agreement are issued when requirements are defined Task Orders are normally awarded after a short form competition between the firms that were awarded the framework agreements TTLs should contact GSDPR to determine if a framework agreement is appropriate

Developing the Terms of Reference (TOR) and Budget Estimate The TTL is responsible for preparing the TOR for the work to be performed The TTL prepares the cost estimate and ensures that it is consistent with the scope of the consultant services The TTL is responsible for obtaining budget approval and confirming the availability of sufficient funding Where budget approval exceeds available funding, the TTL should contact GSDPR for guidance

TOR The TOR should include: Clear description of the work to be performed List of deliverables and due dates Project schedule including meetings and presentations A description of how the performance of the firm will be evaluated Do not include contract terms in your TOR (e.g. payment schedule)

Cost Estimate The cost estimate should include: An estimated level of effort (e.g. categories of consultants, number of consultants, number of hours / days expected to complete the work) Average or expected hourly / daily rate for consultants Estimated cost for expenses (travel, per diem, other related expenses, etc.)

Advertising Expression of Interest (EOI) For competitive selections of consulting firms estimated to cost $50,000 or more, the selection process includes an advertised EOI using the standard template For contracts $250,000 and below the advertisement is posted for 7 calendar days For contracts above $250,000, the advertisement is posted for 14 calendar days EOIs are advertised on the Bank Group’s website, in UNDB and on the Development Gateway web page TMs may also advertise locally in the country of the beneficiary

Vendor Registration Firms interested in bidding on Bank Group solicitations do not need to be registered vendors prior to submitting proposals However, firms interesting in bidding on Bank Group solicitations must be eligible to become a Bank Group vendor and must become a registered vendor before a contract can be issued A best practice is to have firms submitting proposals to submit a vendor application which the TM reviews as part of the evaluation Information about vendor eligibility is available on GSDPR’s Vendor Kiosk

Eligibility of firms associated with Current and Former WBG Staff Firms where current and former WBG staff (including STCs) and their immediate family have an ownership interest or a controlling management interest may be required to wait 12 months before they are eligible to become WBG vendors Questions regarding this policy should be directed to GSDPR

Developing the Short List The TTL prepares a short list of qualified firms based on the evaluation of the EOI responses Select the most qualified firms based on the firms’ qualifications and experience in relation to the stated project objectives The short list may contain additional qualified firms that did not respond to the EOI For contracts over $250,000, the Approver approves the short list and the PS clears the short list

RFP Drafting and Issuance The TTl is responsible for preparing the RFP in eConsultant2 The TTL releases the RFP in eConsultant2 to the short listed firms The TTL responds to all questions submitted by Short Listed Firms regarding the RFP

RFPs The RFP will include: The evaluation criteria Instructions to Offerors regarding the solicitation process, due dates, submission instructions, contact information etc. The TOR The contract matrix The qualification matrix

Evaluation Committee The TTL is responsible for setting up an Evaluation Committee of Bank Group staff who are technically competent in the specializations to be evaluated and familiar with the consultant selection methods Individuals who are not Bank Group staff can be advisors to the Evaluation Committee The Evaluation Committee evaluates the technical proposals received following the selection criteria stated in the RFP The Evaluation Committee’s scores are recorded in eConsultant2 and their scores are averaged

Example of Technical Evaluation Criteria Firm Qualifications and experience, including reference checks Proposed Methodology and approach Proposed team, including proposed level of effort

Single Source Selection of Firms Where it can be demonstrated that it presents a clear advantage over competition or where the contract value is under $50,000 Where there is only one firm that can do the work (“sole source”) Contracts $50,000 and below – approval from Approver only Contracts over $50,000 – approval from Approver and clearance from PS

Contract Negotiations The TTL conducts negotiations with the firm that has the combination of the highest technical and financial scores The TTL negotiates the business terms Start and finish dates Team composition Number of missions Payment schedule Price cannot be negotiated when it would alter the outcome of the selection or significantly modify the scope

Contract Negotiations (cont.) As a practice, the Bank Group does not accept changes to its contract terms and conditions Questions from firms about contract terms and conditions should be directed to GSDPR for response TTLs should not discuss contract terms and conditions with firms (refer them to GSDPR)

Mobilization Payments Typically part of the negotiation discussions if not stated up front in the RFP Mobilization payments to firms may only be provided if there is a need Travel requirements Start up expenses that are beyond the normal range Mobilization payments of 10% or less of the total contract value are acceptable provided that the TTL is satisfied that the risk is not significant Mobilization payments exceeding 10% must be cleared by GSDPR

Contract Award and Issuance The TTL obtains the necessary approvals and clearances in eConsultant2 For contracts valued at $50,000 and below, the TTL’s business unit may issue the contract using SAP and the standard contract templates Contract templates are available on GSDPR’s website The TTL’s Director, VP or duly designated official signs the contract for the Bank

Contract Award and Issuance (cont.) For contracts valued above $50,000, the TTL submits a SAP Cons requisition and attaches the approved Selection Memo, the final TOR and the selected firm’s technical and financial proposal The TTL is responsible for supervising the contract to ensure that it is carried out according to the agreed contract and quality standards All consulting firm awards regardless of selection method will be listed on GSDPR’s external web site

Award Decisions Award decisions are posted on the WBG’s external website regardless of selection method Information posted includes: Selection Number Firm Name Title of Selection Contract Value Date of Award

Debriefing Offerors TTL’s may debrief firms that submitted a proposal if the firm requests Debriefs are limited to: Discussion of that firm’s proposal only Feedback on that firm’s proposal in relation to the stated requirements Areas for improvement (if any) for future Debriefs cannot include any information about technical and price evaluation scores, ranking, or information about other Offeror’s proposals

Complaints and Protests by Consulting Firms The Bank Group’s response to all protests, regardless of to whom they are addressed, is always prepared and executed by the Chief, Corporate Procurement AMS 15.01 contains procedures for responding to protests by consulting firms Anyone receiving a written protest is required to promptly forward it to GSDPR

Contract Modifications All requests for contract modifications must be submitted in SAP Typical modifications include: extension to the contract period of performance Changes to the firm’s personnel working on the assignment Minor changes to the scope of work that do not significantly impact the contract price

Contract Modifications (cont.) Contract modifications are not appropriate if: The modification is outside of the scope of the contract Is not a natural continuation of the work The possibility additional work was not anticipated at the time the contract was issued If it would be more appropriate to competitively bid the additional work

Contract Modifications (cont.) Contract modifications that result in a modification in contract value of less than 20% of the original contract value require Approver approval only Contract modifications that result in a modification in contract value of 20% or more of the original contract value require both Approver approval and PS Clearance Note: Contracts that have expired cannot be modified

Contract Administration The TTL is responsible for monitoring the firm’s performance pursuant to the contract terms and conditions TTLs should get GSDPR involved if there are any performance issues to advise on the appropriate strategy for ensuring the firm’s compliance with the contract

Individual Selection Methods Comparative Selection – for appointments where fees are estimated to be more than $50,000 (review 3 CVs and select most qualified individual) Single Source Selection – where it can be demonstrated that it presents a clear advantage over a comparative selection OR for appointments were fees are estimated to be $50,000 or less

Appointment Letter Individual consultants (STCs) hired by the Bank Group for operational purposes are appointed as Bank Group staff according to the administrative procedures set up by the Bank’s Human Resources Department TTLs should consult the HR policies and procedures and the Remuneration Guidelines for STCs Questions regarding appointment letters and HR policies and procedures should be directed to HR

Summary of Changes between AMS 15.01 and 15.00 Firm selection methods have been streamlined from 6 methods to 3 Single source selection of firms permitted if the contract is $50,000 or less Clearances by PS are required for certain selection processes Single Source Firm Contracts over $50,000 All Firm Contract awards over $250,000 No PS clearance is required for Individual Selections

QUESTIONS? Contact GSDPR at: “GSD Procurement” in Lotus Notes (Gprocurement@WorldBank.org) Call the GSDPR Help Desk 202-473-1118