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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 ...
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 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 ,-------------
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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 . 5
 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
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 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) 7
 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 8
 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)
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Consultant’s Procurement
Cycle
Identification of
Preparation of
Services Procurement Plan

Completion or
Termination of
Contract Short listing

Preparation and
Contract
Implementation
Approval of
Start Designs, Cost Issuing EOI/RfP
Estimates, PQ Documents
Award of Contract and Bid
Documents
Pre-Proposal
Contract Conference
Negotiations

RFP Evaluation
RFP Submission
Technical /Financial
Opening 10
 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) 11
 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
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 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 13
 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.
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 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
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 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
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 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 17
 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.
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 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 .
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Experience Sharing

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 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 21
 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
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 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. 23
 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. 24
2. Reimbursable Costs Cost Estimate
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. 25
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.
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 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 - 100 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,
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government, in general, and the Procuring Entity, in particular,
 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 28
 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 29
• Negotiation with Top Ranked Consultant and Award of Contract
 Selection Process of Consultants Under QCBS
Steps 2: Evaluation
• ToR Preparation
• Cost Estimate and Short listing criteria preparation and approval
• EoI Notice Publication in National Daily News Paper (15-30 days) > for
more than 300,000 US$ EOI should be published in UNDB online
• Short listing of Consultants ( maximum 6 Nos .)
• Issuance of RFP : LOI, ITC, Data Sheet, CV of the Human Resources,
Qualification Criteria, GOC, SSC, Technical Proposal , Financial
Proposal, Form of contract
• RFP submission ( Minimum 30 days)

• 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
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 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

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 Combined Evaluation
• Technical Proposal
P1 : 90 * 0.8 = 72
P2: 85 * 0.8 = 68
P3: 80 * 0.8 = 64
• Financial Proposal
P1 : 450,000 P2 : 430,000 P3: 420,000
P1 : 420/450*20= 18.66 P2 :
420/450*20=19.53
P3: 420/420*20=20 32
 Total Combined Evaluation

• TP +FP
• P1 : 72+18.66= 90.66 –
Winner Consultant
• P2 : 68+19.53= 87.53
• P3 : 64+20= 84
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 Types of Contracts
• Lump-Sum Contracts
• Time Base Contracts
• Retainer and / or Contingency Contract
• Percentage Contract
• Indefinite Delivery Contract

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Selection of Particular Types of
Consultant
• Selection of UN agencies
• NGOs
• Procurement Agents and Construction
Managers
• Inspection Services
• Banks
• Auditors
• Service Delivery Contractors
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 Important Provisions
Currency
Price Adjustment
Professional Liability
Conflict of Interest
Substitution of Experts

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THIS WAS A TASTER

NOW THE MAIN COURSE