Selection methods of consulting services

1. Quality Cost Based Selection (QCBS)
The procuring entity shall select the quality and cost based selection method as the preferred method to be used in evaluating proposals. The selection procedure shall be stated in the request for proposal. This implies that the proposal is judged on its quality and pricing (quality-price oriented)

This method uses a competitive process in the selection of the successful firm or consultant. The request for proposal shall request submission of both technical and financial proposal at the same time but in separate envelopes. Technical bids are evaluated without accessing the financial bids to determine quality. Only bids which have attained the minimum technical score shall proceed to the opening of the financial bid. The bidder obtaining the highest the highest combined score based on the formulae provided in the request for proposal document shall be recommended for the award of the contract. The evaluation criteria in the request for proposal may include the following:

  • Specific experience
  • Methodology proposed including key deliverables
  • Key personnel
  • Participation of nationals

2. Quality Based Selection (QBS)
This method focuses on putting emphasis and selecting the highest quality proposed. Technical bid is evaluated against the set criteria on a merit point system to determine the best technical bid without accessing the financial bid. The quality of a bid shall be the primary factor to be considered. The best technical bid shall take priority in the first instance.

The procedure for quality based selection method of a technical bid shall be consulted in 3 stages:

  • Preliminary Evaluation.
  • Technical Evaluation.
  • Financial Evaluation.

Preliminary Evaluation
It shall be done following the opening of a technical bid to determine whether the bidder has qualified on the basis of having passed or failed for the selection of the bid and for the terms of the bidding document. Failure to qualify or non-responsiveness shall eliminate a bid from further evaluation.

Technical Evaluation.
It shall be conducted by an evaluation committee which shall prepare a technical evaluation report of the technical bids received as follows:

  1. Substantiate the results of the evaluation.
  2. Describe the relevant strengths and weaknesses of the bids.
  3. Indicate which bid is recommended to proceed to the financial evaluation.

Financial Evaluation.
It is conducted:

  1. For the bidder who submitted the best evaluated technical bid being invited to submit a financial bid where only technical bids were submitted.
  2. Of the financial bid of the bidder who submitted the best evaluated technical bid, both technical and financial bid were submitted under the dual envelope method. The financial bid shall be negotiated by the procurement entity according to the regulations.
  3. Fixed budget Selection Method (FBS)
    It indicates the available budget in the tender document. The consultants are requested to provide their best possible technical and financial proposals in separate envelopes within the budget. This method is appropriate only when the assignment is simple and can be precisely defined and when the budget is fixed. The bidder with the evaluated technical bid of the highest quality which is within the stated budget shall be recommended for the award of the contract.

The schedule of requirements or the terms of reference prepared by the procurement entity shall contain all the necessary detail to portray the sufficiency of the budget for the performance by a bidder of the expected tasks as shall be contained in the contract.
The procedure for the fixed budget selection evaluation method of technical and financial bid shall be conducted in 3 stages:

Preliminary Examination
This shall be conducted to determine:

  • Whether the bidder has qualified in the basis of having passed/failed the selection of the bid.
  • The responsiveness of bids to the terms of the bidding documents. A bid that fails to qualify or is found to be non-responsive to the terms of the bidding document shall be rejected.
  • Technical Evaluation
    It shall be concluded to:
  1. To evaluate each technical bid against the technical evaluation criteria.
  2. Following the same method of evaluation as that for the quality and cost based selection.

An evaluation committee shall prepare a technical evaluation report of the technical bids received which shall:

  1. Substantiate the results of the evaluation.
  2. Describe the relative strength and weakness of the bid.
  3. Indicate which bid is recommended to proceed in the financial evaluation.
  4. Act as a pre cursor for the commencement of the financial evaluation.

Financial Evaluation
Financial bids shall be opened publicly and the following shall be publicly read out:

  1. Name of the bidder.
  2. Technical score.
  3. Bid price.

A financial evaluation shall be conducted and any bid that exceeds budget shall be rejected. The bidder submitting the highest ranked technical bids of the bids submitted within the budget shall be recommended for the award of the contract negotiations, conducted
according to the regulation. The evaluation committee shall prepare an evaluation report for submission to the accounting officer through the head of procurement function and shall be accompanied by professional opinion.

4. Least Cost Selection
Procuring entity may use this method to identify the lowest priced bid which meets all the commercial and technical requirements.
It is preferred for assignment of a standard or routine nature where well established practices and standards exist. It requires the use of separate sealed envelopes for submission of technical and financial bids.

The procedure for the least cost selection method evaluation of technical and financial bid shall be conducted in 3 stages (they are the same as Fixed Budget Selection and Quality Based Selection):

  1. Preliminary
  2. Technical
  3. Financial

In summary, procedure for least cost solution include:

  1. Submission of technical and financial aspect.
  2. Analysis of technical and financial aspect.
  3. Dropping those who don’t meet technical and financial criteria.
  4. Awarding the contract to the most cost effective.

5. Single Source Selection
This is where the contract is negotiated with a single consultancy. It is not a preferred technique because of its uncompetitive nature.
The services are from a single source. It is only applicable if it presents a clear advantage over competitors. Single source selection can be adopted in the following circumstances:

  • Where there is evidence that particular supplier has exclusive has exclusive rights in respect to the consultancy services and no reasonable alternative or substitute exists.
  • For tasks represents a natural continuation of previous services carried out by the firm.
  • In exceptional cases such as but not limited to; Response to a natural disaster and declaration of national emergency disaster
    The justification of single source selection in the context of the overall interest of the procuring entity shall be issued by the accounting officer in writing.

6. Consultants Qualification selection (CQS)
This is a procurement process established and further developed as a process for public entities to use for the selection of architectural and engineering services for public construction projects. It is a competitive contract procurement process whereby constructing firms submit qualifications to a procuring entity who evaluates and selects the most qualified firm and then negotiates the project scope of work, schedule and consultants fee.

Under CQS, the cost of the work is not considered when making the initial selection for the best or most appropriate provider of the professional services required. Fees for the services will be negotiated however, following selection and before contracting.
Consultation qualification selection method shall be used for small assignments of which the need for preparing and evaluating competitive bids is not justified. Under this method, a procuring entity shall exercise the following for soliciting bidders:

  • Follow a 2 stage process.
  • Prepare the terms for reference.
  • Request bidders to supply expression of interest and their information concerning their experience and competence relevant to their experiment.
  • Establish a shortlist.
    Procedure for the qualification, selection and evaluation method shall be conducted in 2 stages, these are:

Stage One – This shall involve the following:
Procuring entity will evaluate expression of intent together with any supporting information e.g. evidence of previously completed contract, availability of required manpower and equipment etc. Procuring entity will select a bidder with the most appropriate qualification and references to whom the contract is to be awarded. The evaluation committee shall prepare the technical evaluation report of the expressions of interest received and submit to the accounting officer for his/her approval through the head of the procurement function which shall be accompanied by a professional opinion. The procurement entity shall not proceed to the stage 2 of the evaluation procedure obtaining approval of the accounting officer.

The procurement entity shall request the successful bidder to negotiate the terms of the contract for the provision of the services.

Stage Two (Negotiations with successful tenderer)
1. The accounting officer of a procurement entity may delegate negotiations to the evaluation committee appointed for the subject procurement.
2. Negotiations will take place only after the accounting officer approves the successful proposal and has notified the successful; and unsuccessful bidders.
3. Entering into a contract will be subject to successful negotiation.
4. The evaluation committee conducting negotiation shall prepare a report negotiation and submit to the head of the procurement function for onward submission to the accounting officer.

The negotiation report shall be accompanied by a professional opinion by the head of the procurement for forwarding to the accounting officer for decision making and approval. The report and professional opinion shall form part of the progress for procurement proceedings.

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