Procurement of Consulting Services

1
Procurement of Consulting Services

• ( based on the World Bank methodology)
• Ionesii Laurentiu, Moldova TB/AIDS Project

2
Purpose of the presentation

• Outline the importance of procurement of
  Consulting Services
• Briefly describe the main procurement methods
• Share the experience on procurement of CS in
  Moldova

3
Definition and Importance of CS

• CS are the services where the immaterial and
  intellectual value prevails over the material
  component ( Ex. Research studies/ Printing
  services). It is not CS the services that
  include a measurable physical output drilling,
  cartography, field investigation, satellite
  research.
• Importance of CS increases for the projects
  oriented to Prevention Activities and Capacity
  building.Ex. Selection of Sub-Recipients,
  Procurement of Quality Assurance, ME studies, PR
  campaigns, Procurement of Software

4
Challenges

• Must be of the highest standard of Quality and
  efficiency
• Be unbiased, delivered by independent
  consultants. (Conflict of interest)
• Be proposed, awarded, and executed in accordance
  with the ethical principles of CS. (Corruption
  and Fraudulent practices)

5
General classification of procurement of CS

• Procurement of Individual Consultantsused for
  the procurement of International consultants,
  local staff Used for small and non complex
  assignments where a team of Consultants is not
  required
• Procurement of Consulting Firms

6
Main procurement methods for the procurement of
firms

• Quality Cost Based Selection QCBS
• Quality based selection QBS
• Selection under a Fixed Budget SFB
• Least Cost Selection
• Selection Based on Consultant Qualification
• Single Source Selection - SSS

7
QCBS

• The default method for the procurement of CS
• It is based on a reasonable trade out between
  QCost
• It is used when TOR can be very clearly defined,
  It is possible to estimate the input of staff and
  other reimbursable
• Usually used for QA, ME, Feasibility studies,
  supervision of construction works, capacity
  building investments, PR campaigns
• Main steps Prapare TOR, prepare cost estimation,
  advertise to obtain EOI, Shortlist, Issue RFP,
  Technical evaluation, Financial evaluation,
  Combine FT, Negotiate the contract

8
SBCQ

• Used for very small assignments were organization
  of a full procedure is not justified.
• It consist of TOR preparation, Request for
  Qualification information ( background,
  experience, staff, technical experience)
  evaluation (financial and technical offer
  required only for the highest ranked company),
  contract negotiation
• Diminishes the cost of participation in tender
  and enchases competition, perfect method for
  procurements of NGO.

9
SFB

• It is based on disclosing the budget to the
  consultants and selection of the consultant with
  the highest score within the estimated budget.
  Having the financial constraint the bidders will
  adjust methodology and quality to the available
  budget
• It is used when the budget is fixed TORs are
  precisely defined

10
LCS

• Consist in setting a minimum quality mark and
  selection of the lowest financial proposal from
  the companies that are above the minimal
  financial score
• It is used for small and standard assignments
  were well established practices exist - Account
  and audit services- Supervision of simple works
  contracts- Inspections. Ex QA or inspection for
  the procurement of ARVs

11
Type of contracts

• Lump sum. Where the payments are conditioned by
  milestones or certain deliverables
• Time based contracts. Where it is easier to
  measure the inputs, and the deliverables are not
  known very precise

12
Individual consultants

• Prepare the TORs
• Advertise to obtain CVs
• Prepare the score cards based on the criteria
  from the TOR
• Assign scores ( Interview is not compulsory)
• Make the evaluation report
• Negotiate the contract