WORLD BANK CONSULTANT GUIDELINES Seminar on Procurement of Goods, Works and Consultancy Contracts financed from World Bank Loans and IDA Credits, February.

WORLD BANK

CONSULTANT GUIDELINES

Seminar on Procurement of Goods, Works and Consultancy Contracts financed from

World Bank Loans and IDA Credits, February 27 - March 3, 2006, Zagreb,

Croatia.

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CONSULTANT GUIDELINES

• Five sections

I. Introduction

II. Quality and Cost Based Selection (QCBS)

III. Other methods of selection

IV. Types of contracts and important provisions

V. Selection of individual consultants

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CONSULTANT GUIDELINES

• Three Appendixes

Appendix 1: Review by the Bank of the selection of consultants

Appendix 2: Instructions to consultants

Appendix 3: Guidance to Consultants

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GOODS AND WORKS vs CONSULTANTS

GOODS AND WORKS

• Product based• Open competition• Price is major criterion• Public opening

CONSULTANTS

• Knowledge based• Shortlists• Price plays minor role• Non-public opening of

technical proposals• Public opening of financial

proposals

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GOODS AND WORKS vs CONSULTANTS

GOODS AND WORKS• Detailed specifications

• Single stage procedure (normally)

• Negotiations only exceptionally

CONSULTANTS • Terms of Reference

(General work program)• Two-stage procedure

• Negotiations normally

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I. INTRODUCTION

• 1.1 – 1.3 Purpose• These guidelines define the policies and procedures for

selecting, contracting and monitoring consultants required for projects that are financed in whole or in part by loans financed by the Bank, including credits and grants from the International Development Association (IDA).

• Relations between Government and consultants are not directly governed by Guidelines, but by the specific Request for Proposal (RFP) and signed contracts.

• Relations between the Government and the Bank are governed by the Loan Agreement.

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I. INTRODUCTION

• Defines the term consultants which includes a wide variety of private and public entities, including consulting firms, engineering firms, construction managers, management firms, procurement agents, inspection agents, auditors, UN agencies and other multinational organizations, investment and merchant banks, universities, research institutions, government agencies, nongovernmental organizations (NGOs), and individuals

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I. INTRODUCTION

• 1.4 – 1.6 General Considerations

• 5 main considerations guide the Bank’s policy on the selection process. (a) the need of high quality services;

(b) the need for economy and efficiency;

(c) the need to give all qualified consultants an opportunity to compete in providing services financed by the Bank;

(d) the Bank’s interest in encouraging the development and use of national consultants in the borrowing country; and

(e) the importance of transparency in the selection process.

• QCBS is the “most commonly recommended” method.

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I. INTRODUCTION

• 1.7 Applicability of Guidelines

• Applies to all contracts for goods and works financed in whole or in part from the Bank loans.

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I. INTRODUCTION

• 1.9 Conflict of interest

(a) Conflict between consulting activities and procurement of goods;

(b) Conflict among consulting assignments;

(c) Relationship with Borrower’s staff;

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I. INTRODUCTION

• 1.11 EligibilityConsultants from all countries are eligibleConsultants may be excluded and not eligible:(a) If as a matter of law or official regulations,

the Borrower’s country prohibits commercial relations with the consultant’s country, provided that the Bank is satisfied that such exclusion does not preclude effective competition; or by an act of compliance with decision of the UN Security Council, Borrower’s country prohibits any payments to any country, person, or entity.

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I. INTRODUCTION

(b) Government-owned enterprises or institutions in the Borrower’s country, unless they can establish that they are legally and financially autonomous, operate under the commercial law and are not dependent agencies of the Borrower;

(c) Exception to the above, if the services of a government owned-university or a research institute in the Borrower’s country are of unique and exceptional nature, and their participation is critical to project implementation, the Bank may agree on the hiring of such institutions on a case-by-case basis. Same applies to university professors or research scientists.

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I. INTRODUCTION

(d) Hiring of Government officials and civil servants as individuals or as members of a team of a consulting firm, ONLY IF:

they are on leave of absence without pay;are not being hired by the agency where working

immediately before going on leave; their employment would not create a conflict of

interest.

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I. INTRODUCTION

(e) a firm declared ineligible by the Bank (debarred).

1.13 Associations between Consultants – All partners shall be jointly and severally liable for the contract implementation.

1.17. Misprocurement

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I. INTRODUCTION

1.19 Training and transfer of knowledge

If training and transfer of knowledge is an important component of the assignment, the TOR shall indicate the objective, nature, scope and goals of the training program, including details on trainers and trainees, skills to be transferred, time frame, monitoring and evaluation arrangements

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1.20 Language

1.22 Fraud and Corruption

1.24 Procurement plan – during implementation should be expanded to include key steps.

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Quality and Cost Based Selection (QCBS)

The most commonly recommended method

• Prepare TOR

• Advertise for Expressions of Interest (EOI) (mandatory for all appointments of firms)

• Preparation of shortlist (6 firms) – My comprise only national consultants for assignment under a threshold indicated in the Procurement Plan

• Prepare Request for Proposal (RFP)(Bank standard)

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Quality and Cost Based Selection (QCBS)

• Submission and opening of technical proposals

• Technical evaluation and Evaluation Report

• Public opening of Financial Proposals

• Evaluation of financial proposals

• Final Evaluation Report

• Negotiations and Contract

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Quality and Cost Based Selection (QCBS)

• Prepare TOR

– Background

– Objective

– Scope of Services

– Reports and Deliverables (Output)

– Clients Input

– Institutional arrangements and reporting

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Quality and Cost Based Selection (QCBS)

• Prepare cost estimate Generally divided in two broad categories:

(a) fee or remuneration (according to the type of contract)

(b) reimbursables (incl. (travel and transport, per diem/subsistence, incidentals) and

further divided into foreign and local costs, if applicable.

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Quality and Cost Based Selection (QCBS)

• Advertising:

– GPN in UNDB and Development Gateway (required) - online

– Request for Expressions of Interest published in local newspaper (plus UNDB if over $200,000) (required)

– Use Bank standard form(s) of advertising

– time allowed to respond - not less than 14 days

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Quality and Cost Based Selection (QCBS)

• Preparation and issuance of Request for Proposal (RFP)

– Use Bank’s standard RFP comprising of 1) LOI; 2) information to consultant (ITC); 3) TOR; and 4) draft contract

– All documents are prepared in English

– All sections must be completed as far as possible, including draft contract.

– RFP may indicate estimated staff months or budget (but not both)

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Quality and Cost Based Selection (QCBS)

• Preparation of RFP

• ITC data sheet must be completed with Evaluation Criteria

– relative weights (quality & cost-total 100 points)

• use cost factor judiciously depending on nature of assignment

• quality usually 80 out of 100 points

• cost usually 20 out of 100 points

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Quality and Cost Based Selection (QCBS)

• Preparation of RFP– break-down of quality points (100 points)

• consultants specific

experience 5-10 points• methodology 20-50 points• key personnel 30-60 points• transfer of knowledge 0-10 points• participation by nationals 0-10 points

– minimum technical score to qualify--70 to 80 points (select a number)

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Quality and Cost Based Selection (QCBS)

• Preparation of RFP– The RFP includes samples of contracts that may be

included. WB sample contract form must be used

• Types of contracts

– Lump Sum

– Time-based

– Retainer and/or contingency fee

– Percentage

– Indefinite delivery

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Quality Based Selection (QBS) (par. 3.2 through 3.4)

As for QCBS except• specify minimum technical score required to

qualify• shortlisted firms to submit technical proposals

only or request technical & price proposals as per QCBS and open the financial proposal of only the highest ranked after technical evaluation report no objected

• request highest ranked firm based on technical evaluation to submit the financial proposal

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Fixed Budget Selection (FBS) (par. 3.5)

As for QCBS except• RFP indicates budget and not estimated staff time• open financial proposals of firms that qualified in

technical evaluation• review that each financial proposal contains all

cost elements stated in technical proposal; if not make appropriate adjustments

• any proposals that exceed the budget are rejected• firm scoring the highest technical points is selected

for negotiation

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Least Cost Selection (LCS) (par.3.6)

As for QCBS except:

• opening of financial proposals above a minimum technical score

• Final Evaluation Report will recommend award to the lowest price proposal

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Consultants’ Qualifications (CQ) (par 3.7. and 3.8.)

For contracts less than $200,000• prepare TOR• solicit expressions of interest (EOI as for QCBS)• prepare short list• Prepare simple evaluation report and select firm

most qualified• selected firm requested to submit combined

technical and financial proposals• negotiate contract• Contract as per Bank sample for small contracts• Bank review as per procurement plan

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Single Source Selection (SSS) (par. 3.9 though 3.13)

Only in exceptional cases for tasks representing:

- natural continuation of previous work same staff at same terms and conditions if previously by competition

- emergency situation

- for very small assignments

– only one firm qualified and experienced

• Bank’s prior no-objection required for TOR, selection and draft contract before signing

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Other selection methods

• Commercial Practices (par. 3.14)• Selection of Particular Types of Consultants

- UN Agencies as consultants (par. 3.15)

- Nongovernmental Organizations (NGO) (par. 3.16)

- Procurement Agents (par. 3.17)

- Inspection Agents (par. 3.18)

- Banks (par. 3.19)

- Auditors (par. 3.20)

- Service Delivery Contracts (par. 3.21)

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Selection of Individual Consultants

• Individual consultants are considered

1.Teams of personnel are not required

2.No additional professional support is required

3.Experience and qualifications of the individual are most important

• If hiring and coordination of a number of individuals will be difficult, hire a firm

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Selection of Individual Consultants

• Preparing TOR together with evaluation criteria and scoring system

• Qualifications for the assignment

1.Academic background

2.Experience

3.Knowledge of the local conditions - language, culture, administrative system, government organization

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Sole Source Selection

• Only as an exception e.g.

– Continuation of previous task (previous selection should be competitive)

– Assignment with total expected duration of less than six months

– The individual is the only qualified consultant

– Emergency situations resulted from natural disasters

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TYPES OF CONTRACTS

• Lump Sum Contract – used when content and the duration of services and the required output of the consultants are clearly defined.

• Time Based Contract – appropriate when it is difficult to define the scope and length of services

• Retainer/Contingency Contract – used when consultants (banks or financial firms) are preparing companies for sales or mergers of firms (in privatization operations)

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TYPES OF CONTRACTS

• Percentage Contracts – commonly used for architectural activities, procurement and inspection agents.

• Indefinite Delivery Contracts – used when “on call” specialized services or advise on a particular activity is needed, the extent and timing of which cannot be defined in advance.