1. NEA interaction shrawan 2061
Procurement of Consulting Services
June 02, 2017
By:
Ashok Kumar Jha

2. A Journey of Thousand Miles begin With a Single Step : Procurement

3. Consult, Consultant and Consulting Services
To consult is to give or get help or advice
A consultant (from Latin: consultare "to deliberate") is a professional who provides expert advice in a particular area such as security (electronic or physical), management, education, accountancy, law, human resources, marketing (and public relations), finance, engineering, science or any of many other specialized ...
The legal definition of consulting services is simply the provisioning of services by an independent contractor by means of consultations. Over time, “consulting” ...

5. Consult, Consultant and Consulting Services
PPA, 2063/ 2 ( e) : The Consulting Services are meant by study, research, survey, design, drawing, supervision, Training, auditing, development of software or any types of intellectual or professional services.
WB/ADB : A wide variety of private and public entities including international and national consulting firms, engineering firms ,

6. When could consultants be hired?
Consultants may be hired if: Ref : PPA 2063 , 29 (1)
The services they would be providing is beyond the capability of the Procuring Entity to undertake, either because it does not have the expertise or it could not devote enough time to the work due to numerous other assignments; and Or
As per Financing Agreement with The Development Partners; subject to use of foreign sources .

7. Guiding Principles of Selection of Consultants
Need for high quality Services
Need for Economy and Efficiency
Need to give equal opportunities to all eligible/qualified consultants to complete in providing the services
Encouraging the development and use of national consultants in case of International Consulting/ Consultants to be procured
Need for transparency in the selection process

8. Methods of Selection of Consultants
Principally ( Ref Act 8 (1) (Kh)
Through Competitive Proposals from the respective consultants/consulting firms
Direct Negotiation
No piecemeal procurement to limit the competition : Ref Act 8(2)

9. Scope of Consultants Private and Public entities
Consulting and Engineering Firms
Management Firms
Procurement Agents
Inspection Service Providers
Auditors
UN Agencies
Investment and Merchant Banks
Universities and research instituitions
Government Agencies
NGOs
Individuals

10. Procurement Guidelines Used
Guidelines : SELECTION AND EMPLOYMENT
OF CONSULTANTS
UNDER IBRD LOANS AND IDA CREDITS & GRANTS
BY WORLD BANK BORROWERS
January ,2011
Guidelines on The Use of Consultants by Asian Development Bank and Its Borrowers
March, 2013
Public Procurement Act 2063, & Public Procurement Rules ,2064 ( Inclusive of Amendment 2073)

11. Consultant’s Procurement Cycle
Identification of Services
Preparation of Procurement Plan
Completion or Termination of Contract
Short listing
Preparation and Approval of Designs, Cost Estimates, PQ and Bid Documents
Contract Implementation Start
Issuing EOI/RfP Documents
Award of Contract
Pre-Proposal Conference
Contract Negotiations
RFP Evaluation
RFP Submission Technical /Financial Opening

12. Basic Requirement for Selection of Consultants
Procurement Plan required to
Identify the types of services required
establish the mode of procurement
know the type of Consultant ( Individual, firm, National, International )
determine the ABC
Approved Budget for Contract (ABC)

13. Methods of Selection of Consultants
QCBS: Quality Cost Based Selection
QBS: Quality Based Selection
FBBS: Fix Budget Based Selection
LCBS: Least Cost Based Selection
CQBS: Consultant Qualification Based Selection
SSS: Single Source Selction
Individual Consultants 13

14. Quality Cost Based Selection (QCBS)
A competitive process among short-listed firms
Takes into account the quality of the proposal and the cost of the services
Cost as a factor of selection is used as judiciously
Weight to the quality and cost depends upon the nature of the assignment 14

15. Quality Based Selection (QBS)
Appropriate for complex or highly specialized assignments
Difficult to define precise TOR and required input from the consultants: examples: country economic or sector studies, multi sector feasibility studies, design of hazardous Waste remediation plant, Urban plan, financial sector reforms competitive process among short-listed firms
Submission of TP with or without FP ( Two envelop System)
RFP either provides estimated budget or time inputs of key experts
Highest ranked Consultants will be asked to submit the FP if not submitted
Financial Negotiation include the negotiations of all consultant’s remuneration and others. 15

16. Fixed Budget Selection(FBS)
Appropriate for simple assignments
Budget is fixed
Easy to define TOR and required input from the consultants: examples
Submission of TP with FP ( Two envelop System)
RFP provides available budget
FP exceeding Budget rejected.
Highest ranked Consultants will be asked to negotiate 16

17. Least Cost Selection(LCS)
Appropriate for assignments of routine nature such as audits, engineering design where established practices and standards exist
Minimum qualifying mark for quality is established Budget is fixed
Submission of TP with FP ( Two envelop System) from short list
TP with less than qualifying marks rejected
FP with the lowest price selected and 17

18. Consultant Qualification Selection(CQS)
Appropriate for smaller assignments or emergency situation
Highly specialized expertise is required
“ Boutique “ consulting firm that provides depth of expertise in specific area
One Firm is selected from short-list.
Asked to submit the TP and FP 18

19. Single Source Selection(SSS)
Prevents the benefit completion in quality and cost
Exceptionally used for
Natural continuation of previous work
Emergency works
Very small assignments
Only one firm or individual is qualified. 19

20. Individual Consultant
No need of Advertisement
But advantageous if advertisement is done
Comparison of Three Best CVs
Selected on the basis of relevant experience, qualification and capability to carry out the assignment
Negotiation .

21. Experience Sharing

22. Selection Process under QCBS
Steps:
Preparation Of ToR
Preparation of Cost Estimate and Short Listing Criteria
Advertising for EoI
Preparation of Short List of the Consultants
Preparation and Issuance Of RFP which includes LOI, ITC, Data Sheet, TOR, Proposed Draft Contract Agreement Document
Receipt of Proposals
Evaluation of Technical Proposal
Public Opening of Financial Proposal
Evaluation of Financial Proposal
Combined Evaluation Of TP and FP
Negotiation and Award of Contract to the selected firm

23. TOR Preparation Basic Elements of TOR: Rules 69
Introduction of the Project
Background of the Services
Objective of the Services : If transfer of knowledge and training are objectives ; should be specifically stated
Scope of the Services
Client’s Input to the consultant
Qualification Required
Time for completion of the services
Client’s obligation to the Consultant
Deliverables
Selection Method
Types of Contract

24. Cost Estimate How do you compute the cost of consultancy?
The cost of consultancy shall be computed on the basis of cost to the consultant of actual services to be rendered by the consultant plus a reasonable level of management fee. The amount of management fee depends on the complexity and magnitude of the project, and other direct expenses associated to the undertakings. The cost of consultancy shall consist of the following and shall be presented in the agreement in like manner:
1. Remuneration Costs
These are the remuneration to be paid to the consultant’s staff/personnel who are directly engaged in the consulting services as per agreed manning schedule. It covers the basic rates of the staff multiplied by a billing factor of the consulting firm.
a. Basic Rates
The basic rates represent the salaries actually being received by the professional staff from the consulting firms as certified by the consultant with
a sworn statement to be submitted to the Procuring Entity. The basic rates of all individual members of the staff shall be clearly indicated in the contract. In determining the basic rates, the following may be considered as bases:
i. Salary history;
ii. Industry rates; and
iii. Two hundred percent (200%) of the equivalent rate in the Procuring Entity as the floor.

25. Cost Estimate b. Billing Factor or Multiplier
The billing factor or multiplier shall be derived from the following to be supported by audited financial statements prepared by an independent auditing/accounting firm/entity and certified by the consulting firm with a sworn statement:
i. Overhead Cost These are incidental and general administrative and managementexpenses of the firm other than those directly related to the project, and are expressed in percent of the total of the basic salaries of all the personnel of the firm.
ii. Social Charges
These are cost items for the welfare and benefit of the consultant’s staff in accordance with the policies of the consultant and of the government. Their totality expressed as a percentage of the basic rates of the consultant’s personnel, these cost items may include any or a combination of the following, based on audited and sworn statement to be submitted by the consultant to the Procuring Entity:
• Bonuses;
• Vacation/sick leave and paid public holidays;
• Medical Care;
• Pension plan – retirement and/or terminal pay;• Company insurance; and • Other benefits as required by law.

26. Cost Estimate
2. Reimbursable Costs
These include all other expenses associated with the execution of the services. These costs may be classified into:
Per Diems
International /Domestic Travel
Domestic Transportation
Communication Expenses
Cost of office/engineering supplies and cost of preparing/reproduction drawings and other documents to be submitted;
Cost of field office either through rental or construction;
Equipment rental and purchases whenever justifiable;
Acquisition of software licenses; and
Cost of other items deemed necessary for the project as certified bythe agency concerned.

27. The measure of a success is not whether you have a tough problem to deal with but whether it is the same problem you had last year.

28. Short list Eligible Consultants
Legal Reference: Act 30 (1), (2) (3) and Rules 70 (1) & (2) in relation to the requirements for the procurement of consulting services.>Nrs. 2mill mill: NCB ; >Nrs.100million : ICB
What is short listing? The process of short listing determines the most qualified consultants from those that submitted eligibility documents to undertake the project.
Why is there is a need to short list? If all eligible bidders are invited to submit proposals, the chance of a consultant being awarded the contract diminishes greatly. Considering the substantial costs incurred in preparing a proposal, this discourages a consultant from participating in the bid. A short list of, say, 6-8 nos greatly increases the chances of a consultant and thus encourages it to put in more time and effort in preparing a good proposal. In the end, government, in general, and the Procuring Entity, in particular, receive better proposals to choose from.

29. Selection Process of Consultants Under QCBS
Steps 1 :Short-Listing :Notice for Expression of Interest EOI through National Daily News Paper :Contents : PPR , 2064 /Rules 70 (3)
Name and Address of Public Entity: For correspondence and submission of EoI
General Description of Project/ Services
Sources of Funding for intended Services
Qualification of the firm/individual in terms of general and similar experience , organizational management capacity showing firm’s turn over , logistics , human resources required
Profile of the works of similar nature in last 7 years ( but for individual 4 years)
Input ( PM / PD) of key personnel for the services
Tentative service completion time
Documents required to substantiate the Firm’s Qualification
Last date and time of submission of EoI(16th day of Ist date of Publication of EOI )
If EOI is from the JV of firms
Description of Firm
In case of JV name, address description of all the JV indicating the lead /main partner
stance

30. Selection Process of Consultants Under QCBS
Steps 2: Evaluation of EoIs with reference to Evaluation Criteria approved before receiving EOIs
Major Evaluation Criteria: Rules 70 (5) (12)
Qualification
Experience
Organizational/ Managerial Capacity (Turn Over): Not > 1.50 times the Cost estimate of Services
Selection of the Three top ranked EoIs : Rules 70 (8)
WB Guideline (IPF,2016) : 5-8 Nos. ADB Guidelines: 6 Nos.
Issuance of RFP : LOI, ITC, Data Sheet, CV of the Human Resources, Qualification Criteria, GCC, SSC, Technical Proposal , Financial Proposal, Form of contract
RFP submission ( Minimum 15 days for NRs. 2 million and 30 days for > 2 million ) : Rules 71 (1)
Technical Proposal Opening and Evaluation
Financial Proposal Evaluation
Combined Evaluation ( 80 % TP and 20 % FP)
Selection of the Top Ranked Consultant
Negotiation with Top Ranked Consultant and Award of Contract
stance

31. Qualification Criteria: Rules 71 (6)
Consultant’s specific Experience : 25% of total
Methodology : 20-35%
Key experts 30-60%
Transfer of Knowledge: 0-10%
Participation by National Experts: 0-10
Minimum Pass Marks should be Stated
stance

32. Combined Evaluation Technical Proposal P1 : 90 * 0.8 = 72
Financial Proposal
P1 : 450, P2 : 430,000 P3: 420,000
P1 : 420/450*20= P2 : 420/450*20=19.53
P3: 420/420*20=20

33. Total Combined Evaluation
TP +FP
P1 : = – Winner Consultant
P2 : = 87.53
P3 : 64+20= 84

34. Types of Contracts Lump-Sum Contracts Time Base Contracts
Retainer and / or Contingency Contract
Percentage Contract
Indefinite Delivery Contract 34

35. Selection of Particular Types of Consultant
Selection of UN agencies
NGOs
Procurement Agents and Construction Managers
Inspection Services
Banks
Auditors
Service Delivery Contractors 35

36. Important Provisions Currency Price Adjustment Professional Liability
Conflict of Interest
Substitution of Experts

37. THIS WAS A TASTER
NOW THE MAIN COURSE
THANK YOU
For
Your Kind Patience