)

GOVERNMENTOFANDHRAPRADESH
ROADS AND BUILDINGS DEPARTMENT

REQUEST FOR PROPOSALS

A s.tudy on Experience from Implementation of OPRC Contracts and to

Develop Recommendation for Future Contracting Approach and its
Management
(Quality and Cost Based Selecti~n [QCBS] -Lump.Sum)

Office of the Chief Engineer (R&B) CRN, PPP &

Managing Director,A.P. Road Development Corporation

D. No. 10-1-1195, 5th Floor, R&B Office Complex,

Mahaveer Marg, A.C.Guards, Hyderabad- 500 004, India

RFP - OPRC - As issued to Bidders.doc

21

Instructions to Consultants
DATA SHEET

Paragraph
Reference

1.1

Name of the Client: Roads & Buildings Department (RBD) I A.P. Road
Development Corporation (APRDC), Government of
Andhra Pradesh (GoAP)
Method of selection: Q:uality and Cost Based Sel~tion [QCBS]

. 1.2

Financial Proposal to be submitted together with Technical Proposal:

Yes
Name of the assignment is:
A study on Experience from Implementation of OPRC Contracts
and to Develop Recommendation for Future Contracting Approach
and its Management
,____~

1.3

A pre-proposal conference will be held: Yes

Date and Time:
2-t3.:!015 at 11.00..--'ll'\1
Venue : Office of the Chief Engineer (R&B) CRN; PPP & Managing
Director, A.P. Road Development Corporation, D. N9 .JO-t.:.
1195, 5th Floor, R&B Office Complex, Mahaveer Marg,
A.C.Guards, Hyderabad - 500 004, India
The Client's representative is: Sri G. JAGANNADHA RAO
Address:

Chief Engineer (R&B) CRN, PPP & Managing Director,

A.P. Road Development Corporation, D. No. 10-1-1195,
5th Floor, R&B Office Complex, Mahaveer Marg,
A.C.Guards, Hyderabad- 500 004, India

Telephone: +91-40-23300462 Facsimile: +91-40-23301196

E-mail: mdaprdc.hyd@gmail.com

'-

1.4 -

The Client will provide the following inputs and facilities:

Required information available with the Department will be provided.

1.12

Proposals must remain valid for 90 days after the last date of submission.

QCBS-LS [May 2004]

Section 3. ~fechnical Proposal- Standard Forms

22

2.1

Clarifications may be requested not later than 15 days before the submission
date.
The address for requesting clarifications is:
Address:

Chief Engineer (R&B) CRN, PPP & Managing Director,

A.P. Road Development Corporation, D. No. 10-1-1195,
5th Floor, R&B Office Complex, Mahaveer Marg,
A.C.Guards, Hyderabad- 500 004, India

Telephone: +91-40-23300462 Facsimile: +91-40-23301196

E-mail: mdaprdc.hyd@gmail.com
3.1

Proposals shall be submitted in the following language:- English

3.3 (a)

Shortlisted Consultants may associate with other shortlisted Consultants: No

3.3 (b)

The estimated number of professional staff-months required for the

assignment is: 10 Man-months

3.4

The format of the Technical Proposal to be submitted is: Full Technical

proposal

3.4 (g)

Training is a specific component of this assignment: No

3.7

Amounts payable by the Client to the Consultant under the contract to be

subject to local taxation: Yes.
Consultants (Foreign and Domestic) are responsible for payment of all taxes
as applicable in India. Consultants are requested to consult Tax consultants
for details.
The Client will however reimburse the following indirect taxes I
duties.
a.
b.

Duties on imported equipment brought by foreign

consultants to India to provide the required services and
Consultancy service tax payable on the contract value by
both foreign and domestic consultants.

Section 3. Technical Proposal- Standard Fonns

23

.
The above only are to be shown separately in their financial proposal.

3.8

Consultant to state local cost in the national currency: Yes ...:t._

4.3

Consultant must submit the original and 3 copies of the Technical Proposal,
and the original of the Financial Proposal.

4.5

The Proposal submission address is:

Address:

Chief Engineer (R&B) CRN, PPP & Managing Director,

A.P. Road Development Corporation, D. No. 10-1-1195,
5th Floor, R&B Office Complex, Mahaveer Marg,
A.C.Guards, Hyderabad- 500 004, India

Telephone: +91-40-23300462 Facsimile: +91-40-23301196

Email: mdaprdc.hyd@gmail.com
Proposals must be submitted no later than the following date and time:
10.4.2015 15.00 Hrs 1ST

RFP - OPRC - As issued to Bidders.doc

Section 3. Technical Proposal- Standard Fonns

24

5.2 (a)

Criteria, sub-criteria, and point system for the evaluation of Full Technical
Proposals are:
(i)

(ii)

Specific experience of the Consultants relevant to the assignment:

(a) Global experience in similar nature projects
2.0
{10 projects- full points)
(b) Experience on projects in the Region, including India
2.0
(5 projects -full points)
(c) Perfonnance and capability
1.0
Total points for the criterion (i):

5 Points

Adequacy of the proposed methodology and work plan

in responding to the Terms of Reference:
a) Technical approach and methodology
b) Work plan
c) Organization and staffing

15.0
5.0
5.0
Total points for criterion (ii):

25 Points

(iii) Key professional staff qualifications and competence for the assignment:
a)
b)
c)

Road maintenance Engineer cum Team Leader

25.00
Contract Management Specialist
20.00
Finance & Costing Expert
15.00
Total points for criterion (iii):

60 Points

The number of points to be assigned to each of the above positions or disciplines shall
be detennined considering the following three sub-criteria and relevant percentage
weights:
1)

General qualifications
(a) Education:
Ph.D. - 10
Masters Degree -5
Bachelors Degree and Others - 3
Experience:
No. of years of proven experience
Points will be prorated
(c) Position Held:
No ofyrs in current position held

30%
10

(b)

2)

15
5

Adequacy for the assignment

60%

(a) Experience in Highway Projects in Maintenance

3 projects on Highway Projects in financing 30
(b) Experience in other Sectors in Maintenance
3 projects on financing in sectors
10
other than Highways
(c) Experience in similar position:
5 projects 'in relevant field of expertise
20

3) Experience in region and language

10%

25-

Section 3. Technical Proposal- Standard Fonns

..

(a) Experience in the Region

(b) Exposure to th~ Language in Region

10%
5%

Total weight:

100%

(iv) Suitability of the transfer of knowledge (training) program:

Relevance of training program
b) Training approach and methodology
c) Qualifications of experts and trainers
Total points for criterion (iv):

2 Points
2 Points
I Point
5 Points

(v)

Participation by nationals among proposed key staff

Nationals 50% of the staff and above
Less than 50% of the staff
Total points for the criterion (v):

5 Points
3 Points

Total points for the five criteria:

5 Points

100 Points

The minimum technical score required to pass is: 75 Points

The single currency for price conversions is: Indian Rupees

5.6

The source of official" selling rates is: State Bank oflndia [SBI] B.C. Selling
rate of Exchange ..
The date of exchange rates is: 14 days prior to the last date for submission of
proposals indicated in Clause 4.5 of Data Sheet.
The formula for determining the financial scores is the following:

5.7

[Insert either the following formula]

Sf= 100 x Fm I F, in _which Sf is the financial score, Fm is the lowest price
and F the price ofthe proposal under consideration.
The weights given to the Technical and Financial Proposals are:
T= 0.75; and
P=0.25

-I

Expected da~ and address for contract negotiations:

6.1

Date: 25.4.2015
Chief Engineer (R&B) CRN, PPP & Managing J;>jrector,
Address:
A.P. Road Development Corporation, D. No. 10-1-1195,
5th Floor, 'R&B Office Complex, Mahaveer Marg,
A. C. Guards, Hyderabad- 500 004, India

I
I

Expected date for commencement of consulting services

1.6.2015 at Hyderabad

7.2

RFP OPRC - As issued to Bidders.doc

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44

Section 5. Terms of Reference

Output and Performance-based Road Contracts (OPRC):
Experience to-date and Lessons for Future
1.0
Background
1.
Andhra Pradesh Road Sector Project (APRSP) is being implemented by the
Government of Andhra Pradesh (GoAP) through its Roads & Buildings Department (RBD) I
AP Road Development Corporation (APRDC), with a loan procured by the Government of
India from the International Bank for Reconstruction & Development.
~

2.
As part of this project, services over nearly 4300 km of roads under the S~ate's Core
Road Network are being improved through Long-term Performance-based Maintenance
Contracts, which are also known as
Table 1
Output and Performance-based Road
Phase
No. of
Est. Cost
Total
Contracts (OPRC). These contrJlCts
Contract
Length in in Rs. Cr.
are awarded in four lots/pha~es at
Packages
Km
215
7
1288
different times, as indicated in Table Phase I
Phase
IIA
10
1601
379
I (further details are placed in
4
590
113
Annexure I). Where, the remainder of Phase liB
Phase
IIC
5
823
186
the state road network, under the
Total
26
4301
892
aegis of the RBD, continues to be
maintained through traditional annual maintenance practices.
3.
The OPRC contracts are different from the traditional maintenance contracts, in four
notable ways. To begin with, in terms of planning, the objective of the OPRC contracts was
to provide comprehensive maintenance of selected roads over a 5-year period and. thus
includes undertaking Ordinary Maintenance, Initial Rectification Works, Periodic
Maintenance Works, Minor Improvement Works and Emergency Works. Second, from a
procurement perspective, the OPRC contracts are usually encompass longer stretches and
higher outlays. Third, in terms of incentives, the payments under OPRC contracts are mostly
aligned with the achieved pre-specified standards of performance. In line with this, while
Ordinary Maintenance is paid for on a monthly, lump-sum basis, the Minor Improvement
Works are paid for on the basis of actual quantities of work completed. Initial Rectification
and Periodic Maintenance, on the other hand, are paid either on lump-sum basis in case of
contracts in earlier phases or on per-km rates in case of contracts under Phases liB and .IIC.
Lastly, from an implementation and monitoring perspective, although OPRC contracts too
are administered by the respective field units of RBD, such administering encompasses
measurement and recording of various road service performance indicators and also an

Section S- Terms of Reference

additional layer of review by third-party monitoring consultants. Since January 2012, the
OPRC contracts under APRSP are being examined a Third-Party Monitoring Consultant
engaged by APRDC, with the objective of monitoring as well as facilitating seeding and ,
exchange of various best practices.
4.
GoAP/APRDC now seeks to review the experience of implementation of OPRC
contracts and draw lessons, by engaging a consulting ~- un.det;.~!ae..~~is ~- .~ -SP.
2.0
OBJECTIVES and TERMS of REFERENCE
5.
This study aims to review the experience of implementation of OPRC contracts and
draw lessons to improve the overall approach to providing.better maintenance of state road
network. Towards this end, specifically, the consultants are expected to do the following:
6.
Undertake a comprehensive assessment of how OPRC contracting structure has
performed with regard to addressing the following key issues that it had set out to achieve,
on its own and vis-a-vis traditional item-rate annual maintenance contracts, viz:,

Service Improvements: Betterment of roads in terms of overall riding quality through

routine and periodic maintenance, particularly from the perspective of road user and:
his/her level of satisfaction with regard to all key aspects of road infrastructure .including
pavements, shoulders,. drains, CD structures, roadsafety ap_inmenan.ces - signs, markings
and painting, shrub clearance, etc.

Cost Effectiveness: Value for Money in comparison to the conventional departmental

maintenance. efforts- by providing due weightage to (a) improved levels of road service
and road user satisfaction; and (b) savings as well as avoided costs due to timely planning
and interventions.

Sustainability: Providing assured and sustained funding for maintenance through

contractual commitments for 5 years or longer duration; .

Monitoring and Evaluation: (a) Generating data on the road inventory and condition on
a regular basis; and (b) its analysis and use for future planning and contracting.

Scope for improv{!ment in OPRC in all key areas including planning, procurement,
documentation, contract management, payments and monitoring.

7.
Such a comprehensive assessment shall be based inter alia on the following list of
sub-tasks/activities, viz.,

mplil:zg;d[lpllecti o.n a~d -4-!l

C.~Yl1~~~lyz_e ~levant data from a
s .. ~Ie- se~of g.;. 10 packages (coveritlg at least an aggregate length of 2,000 km) from
tpr~ major modes ofmaintenance-contracts; viz., (i) OPRC-Phase I; (ii) OPRC-Phase
11 (with revised bidding documetitS); and {iii) traditional, item-rate annual
maintenance contracts. Such data should cover key areas of focus of comparison, that .
is, procurement (no. and sire of packages, average number of bidders, timeframe),

RFP - OPRC - As issued to Bidders.doc

{~~

.r , ~
46

planning (requirement vs. budget allocation), technical/implementation aspects (use

of different types of technology, equipment and materials), costs (estimate vs. bids vs.
actual), all major parameters of performance covering all aspects of road
infrastructure/service, road user satisfaction and quality of data on road inventory and
condition that is available and analyzed/used for future decisions. Towards this end,
for the data on OPRC-type packages, the consultant may mainly rely on the data
available under the existing contracts, Road User Satisfaction Surveys, APRDC,
Road Asset Management System (RAMS) and reports of the Third-Monitoring
consultants. For the data on traditional annual maintenance contracts, the consultant
may rely on the data available through RBD sources and, if necessary, undertake a
limited data collection exercise especially to ascertain/verify performance related to
road infrastructure/services and road user satisfaction. For instance, cross-sectional
sample analyses of the road conditions -or site visits to validate RAMS data - would
need to be carried out to check whether there is a difference in the levels of
maintenance between the OPRC roads and those under traditional item-rate contracts.
The consultants shall be required to finalize the sample set of packages/contracts and
roads, data requirements and the framework for analysis, in consultation with
RDC/RBD;

Consultations: Within the aforementioned sample set of package~ for OPRC-type

contracting, conduct interviews and interactive consultation sessions with the. key
representatives/officers of GoAP (including Finance Department), R.i3D, APRDC,
contractors and consultants for the Third-Party Monitoring and Road User
Satisfaction Surveys, and document the experience, challenges faced and suggestions
for improvement, if any, w.r.t., planning, procurement, contract documents,
implementation and monitoring.

Bidding Documents Review and Analysis: (i) Review key provisions/changes in the
procurement documents used for OPRC contracts (original and revised versions); (ii)
Analyze whether and how such provisions/changes have impacted the costs and
performance outcomes under respective sets of contracts; and (iii) Recommend
changes to future OPRC documents.

Review of Implementation and Monitoring Arrangements: Review the existing

arrangements for the management, reporting and monitoring of OPRC contracts and
recommend changes for improvement, if any. While doing so, particular attention
may be paid to (i) collecting data on more general/common forms of lapses in the
performance of Contractors or issues leading to disputes; (ii) examining the paucity or
ineffectiveness of the clauses in the contract documents to address such lapses/issues;
(iii) review the contract management systems that were adopted; and (iv) suggesting

;;.:

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47 .

Section 5- Terms of Reference

any remedial action I changes in the contract clauses and systems for their
monitoring.

Analyze critically the clauses pertaining to environmental and safety aspects and
suggest improvements, if required. Also, assess the efficacy of implementation and
any changes required towards ensuring better compliance to these.

In case the Consultant proposes to add/modify the aforementioned list of sub-.

tasks/activities, they need to justify how such changes would be more effective for achieving
the study objectives, explicitly as part of the approach and methodology section in their
proposal.

3.0

SELECTION MODE, KEY DELIVERABLES, TIMELINES and PAYMENT

l\1ILESTONES

8.
The selection of Consultant for this shall be based on QCBS, as explained in the
Request for Proposal (RfP), with lump-sum payment against acceptance of key deliverables
by APRDC. The assignment shall be completed within 5 months of issue of notice to
commence the.services. The key deliverables expected, along with the respective timelines,
are tabulated belowe
Item

Inception Report detailing consultant's

appreciation of the key issues, finalized
approach and methodology, sampling
strategy, identification of designated
counterparts/resource persons for data
collection, data collection formats, overall
resource and time-pJan
.. '-1
~ons ,,
,c.;~$ions includktg a
~

. . ........

Interim Report - covering a summary of data

collected from secondary and primary
sources, prelin1inary analysis and findings
covering all key elements of the ToR
B.i:.~1 . 11J,.~Vo~hu_p~r
presentation and
diwws.sion of key findings
Final report

Due date
(from start of
. Services)
Draft: 1 month
Final: 1.5 months

Payment
Milestones

Draft: 10%
Final: 5%

'

2 Months
Draft: 3 Months
Final: 3.5 Months

4Months

15%
Draft: 20%
Final:IO%

10%

Draft: 4 Months
Draft:20%
Final: 5 Months
Final:10%
Note: The Consultants shall arrange for a soft-copy and five hard-copies of each key
deliverable/report in their draft as well as final forms.

RFP - OPRC - As issued to Bidders..doc

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48

9.
The Client shall forward their observations, if any, on the Draft Reports within 7 days
of their receipt and the Consultants shall submit the Final Reports duly complying with the
observations communicated, if any.

4.0
10.

TEAM COMPOSITION, QUALIFICATIONS and SKILLS

The Consultant's team shall comprise the following key personnel:

Team Leader (Road maintenance engineer, 1 No.): A Graduate Degree in Civil

Engineering \;Vith 15 or more years of experience in road construction and maintenance,
of which at least 5 years in dealing with (i) long-term and/or performance-based
maintenance contracts of packages covering an average road length of at least 1OOkm; (ii)
road maintenance performance monitoring and evaluation; and (iii) costengineering/value-for-money in the context of road construction projects. (Minimum
expected engagement: 3 person-months, spanning throughout the calendar duration of the
assignment period)

Senior Consultant (Contract Management Expert, 1 No.): A Graduate Degree in Civil

Engineering with I 0 or more years of experience in road construction and maintenance,
of which at least 5 years in dealing with (i) procurement, monitoring and evaluation of
performance-based road maintenance contracts; and (iii) cost-engineering/value-formoney in the context of road maintenance projects. (Minimum expected engagement: 5
person-months, spanning throughout the calendar duration of the assignment period)
")"'.

"#- ' Finance and Costing Expert (1 No.):

.>"
<Jo..r"\. ~
'f
~

A certified Cost Accountant and/or Financial

Analyst or a Post Graduate in Management (with finance/costing specialization), with a
minimum of I 0 year experience, of which at least 5 years in the road sector, with proven
experience in handling management-oriented cost accounting/analysis. (Minimum
expected engagement: 2 person-months, spanning throughout the calendar duration of the
assignment period)

11.
In addition to the above key personnel, which shall be considered for the purposes of
evaluation, the assignment may require the Consultant to intermittently mobilize specialists
with requisite expertise to deal with issues related to various disciplines such as, for example,
Environment, Drainage and Cross Drainage structures. Ac.:ordingly, the Consultants may
include such requirements and related resource plans in their proposal.

5.0 FACILITIES AND SERVICES TO BE PROVIDED BY THE CLIENT

12.
For the purpose of analysis with respect to the scope of this ToR, APRDC shall assist
the Consultants in obtaining data and information that is already available with themselves or
with any other ann of the Government of Andhra Pradesh, as requested by the Consultants
with sufficient prior notice. All the costs associated with the collection of such data shall be

i;

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:
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Section 5- Terms of Referel!ce

49.:

,.;1

borne by the Consultant. APRDC shall not provide any office space or any other logistical
support.

J
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RFP - OPRC - As issued to Bidders.doc