PRACTICAL ISSUES IN PREPARING PUBLIC TENDERS CONSULTANTS PERSPECTIVE

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• PRACTICAL ISSUES IN PREPARING PUBLIC TENDERS -
  CONSULTANTS PERSPECTIVE
• A PAPER DELIVERED
• BY SAM AFEMIKHE
• DURING THE WORKSHOP
• ON WORLD BANK PROCUREMENT PROCEDURES
• ORGANISED BY NESG IN COLLABORATION WITH
• NEPC, MAN AND THE WORLD BANK
• 28 SEPTEMBER 2006

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• ROADMAP.
• Introduction
• Rules and Procedures for employment of
  Consultants
• First things first
• Tendering methods for selection of Consultants
• The Selection (Tender) Process
• Practical issues on Tender Responsiveness
• - Advertising (EOI)
• - Request for Proposals (RFP)
• - Evaluation
• - Negotiation and award of contract
• Key issue Tender Responsiveness

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• Introduction
• Selection and Employment of Consultants by
  World Bank Borrowers set out in guidelines
  issued May 2004.
• Consultants are entities that Borrowers use to
  help in wide range of activities such as policy
  advice, institutional reforms, management,
  engineering services, construction
  supervision, financial and procurement services,
  environmental studies etc. they complement
  Borrowers capabilities in the identification,
  preparation and implementation of projects.
• Consultants are private and public entities
  including engineering firms construction firms,
  procurement and inspection agents, auditors,
  multinational organisations, investment
  and merchant banks, research institutions
  government agencies, non-governmental
  organisations (NGOs), and individuals.

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• Rules and Procedures for Employment of
  Consultants Guided by five main considerations.
• the need for high quality services
• the need for economy and efficiency
• equal opportunity to all qualified consultants
  to compete
• banks interest in encouraging the development
  and use of national consultants in its
  developing member countries
• the need for transparency in selection.
• Above consideration better addressed by
  competition among
• qualified short listed firms based on
• - quality of the proposal and
• - cost of the services to be provided (where
  appropriate).

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• First things first
• Eligibility
• In fostering competition WB permits firms and
  individuals from ALL countries to offer
  consultancy services
• Conditions limited to those essential to
  ensure the firms capability to fulfil
  contract.
• Prohibitions (if any) limited to
• - legal/regulatory prohibitions of country
• - government enterprises except they can prove
  that they are legally and financially
  autonomous and operate under commercial law.
• - government officials and civil servants
  except they are on leave of absence and have
  no conflict of interest.

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• First things first (Contd.)
• Conflict of Interest
• Consultants are expected to provide
  professional, objective and impartial advice
  and hold client interest paramount.
• Eliminate conflict of interest with prior or
  current obligations to clients particularly
  on
• - Conflict between consulting activities and
  procurement of good works and services
• - Conflict among consulting assignments
• - Relationship with client staff including
  their personnel and subcontractors.

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• First things first (Contd.)
• Associations between Consultants
• Consultants may associate with each other in the
  form of JV or sub consultancy to
• - complement their expertise
• - strengthen technical RESPONSIVENESS
• - create a bigger pool of expertise
• - provide better approaches and methodologies
• - In some cases offer lower prices.

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• First thing first (Contd)
• Fraud and Corruption
• Borrowers as well as consultants to observe the
  highest standard of ethics during
• selection and execution of contracts.
  Therefore avoid
• Corrupt practice
• Offering, giving, receiving or soliciting
  directly or indirectly anything of
• value to influence selection.
• Fraudulent practice
• Misrepresentation or omission of facts to
  influence selection.
• Collusive practice
• Scheme of arrangement between two or more
  consultants to influence
• selection

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• Tendering Methods for Selection of Consultant.
• Main Method
• Quality and Cost Based Selection (QCBS)
• Other Methods
• Quality Based Selection
• Fixed Budget Selection
• Least Cost Selection
• Consultant Qualification
• Single Source Selection

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• Quality and Cost Based Selection (QCBS)
• QCBS is a Competitive selection process among
  short listed firms. It takes into account the
  quality of the proposal and as well as the cost
  of the services in the selection of the
  successful firm.
• The selection process is usually two stage viz
• ? Technical Proposal
• ? Financial Proposal
• Relative weight given to Quality and Cost depends
  on nature of assignment

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• OTHER METHODS
• Quality Based Selection
• ? More consideration to quality than cost.
• - used for complex and highly specialised
  assignment for which the TOR and input from
  consultants will be difficult to define
  precisely.
• - Assignment with high downstream impact
  requiring the best experts
• ? Assignments that can be carried out in
  substantially different ways such that
  proposals are not comparable.
• ? Fixed Budget Selection
• - Appropriate only when the assignment is
  simple and can be precisely defined and
  budget is fixed.
• - RFP indicate budget and request consultants
  to provide their best technical and financial
  proposal.

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• OTHER METHODS (Contd.)
• ? Least Cost Selection
• - Appropriate for assignment of routine nature
  such as Audits, engineering design etc where
  well established standards exist. Under this
  method, minimum qualifying mark for the
  quality is established.
• - proposals above the minimum qualifying mark
  will compete on cost.
• ? Consultant Qualification
• Appropriate for small assignments for which the
  need for preparing and evaluating competitive
  proposal will not be justified

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• OTHER METHODS (Contd)
• ? Single Source
• Not Competitive
• Only appropriate in exceptional situation
  such as
• - Tasks that represent continuation of
  previous work carried out by the firm
• - Emergency situations (Natural disaster)
• - Very small assignment
• - Only one firm is qualified or has
  exceptional experience for the assignment

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• TENDER RESPONSIVENESS
• - Qualification
• - Cost
• Efficient and effective RESPONSE to the
  Consultant Selection (Tender) Process is of
  utmost importance .

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• The selection (Tender) Process.
• Preparation of the TOR
• Preparation of cost estimate and the budget
• Advertising (EOI)
• Preparation of the short list of consultants
• Preparation and issuance of the RFP (which should
  include the Letter of Invitation (LOI)
  Instructions to Consultants (ITC) the Terms of
  Reference (TOR) and the proposed draft contract)
• Receipt of proposals
• Evaluation of technical proposals consideration
  of quality
• Public opening of financial proposal
• Evaluation of financial proposal
• Final evaluation of quality and cost and
• Negotiations and award of the of the contract to
  the selected firm.
• A tender has to be RESPONSIVE to stand a chance!!

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• Practical issues on Tender RESPONSIVENESS
• Response to Advertising (EOI)
• How can Consultants find them?
• National gazette or national newspaper
• International newspaper or Technical magazine
• UN Development Business Online (UNDB)
• Development Gateways dg Market
• Is there clarity in prequalification
  requirements Adequately Respond
• - Workscope
• - Profile of firm
• - CV of key staff
• - Evidence of competence
• - Experience/track record
• - List of similar assignments undertaken
• - Proof of Alliances, Partnership etc.
• Time set by WB for response NOT LESS than 14
  days. Firms in the real sense never have more
  than 7 days. What to do!
• Shortlist about six firm of geographic spread
• - Notify firms that expressed interest !!
• Powerful learning process if complied with

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• Request for Proposals (RFP)
• Include
• - Letter if Invitation (LOI)
• - Information to Consultants (ITC)
• - Terms of Reference (TOR)
• - Proposed Contract
• Secure Electronic distribution works!!
• Carefully study and properly address the LOI,
  ITC and TOR
• - Key to preparing RESPONSIVE proposal
• - Brings Transparency as it sets out evaluation
  criteria, and weights
• - Estimate of key staff, budget and suggest
  consultant to prepare theirs
• - Specify proposal validity period
• Extensively review and understand the Contract
  terms and conditions
• - General Conditions of Contract
• - Specific Conditions of Contract (or Contract
  Data Sheets)
• Submission
• - 4 12 weeks (averagely 6 weeks). This is OK
• - Clarifications can be sought response in
  writing circulated to all
• - Technical Financial submitted at the same
  time in separate sealed envelopes. No
  amendments acceptable thereafter.

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• Evaluation
• Two stages both conforming with provision of
  RFP
• - Quality and
• - Cost.
• Evaluation of Quality
• Use Evaluation Committee of three or more
  specialists
• Evaluation Criteria
• - relevant experience
• - quality of methodology
• - qualification of key staff
• - transfer of knowledge (if required in TOR)
• - Extent of participation by nationals among
  key staff.
• Each criteria marked on scale of 1 100
  then weighted to become scores.
• Evaluation of key personnel critical
• - Review qualification and experience as set
  out in CV (CV must be accurate, complete and
  signed by authorised official of firm) and
  individual proposed.

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• Evaluation
• Evaluation of Quality (Contd.)
• Evaluation of key personnel Rating
• a) general qualifications general education
  and training length of experience positions
  held, time with the consulting firm as staff,
  experience in developing countries, and so forth
• b) adequacy for the assignment education,
  training, and experience in the specific
  sector, field, subject, and so forth,
  relevant to the particular assignment and
• c) experience in the region knowledge of the
  local language culture, administrative
  system, government organisation, and so
  forth.
• Proposal that does not RESPOND to important
  aspects of the TOR is rejected as unsuitable at
  this stage
• Technical Evaluation Report prepared
• - Contracts subject to prior Approval submit
  to Bank for review to obtain no objection.

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• Evaluation of Cost
• After evaluation of quality and receipt of
  Banks no objection
• - Inform consultants of minimum marks or non
  responsive to RFP and TOR financial proposal
  returned unopened.
• - Notify those who secured minimum qualifying
  marks
• - Define financial proposal opening date
• - Financial proposal opened publicly in presence
  of consultant representative
• - Minutes prepared and sent to Bank.
• - Review financial proposals, correct errors,
  convert to single currency.
• - cost to include
• Consultants remuneration
• Other expenses such as travel, reporting,
  secretarial expenses etc.
• - Proposal with the LOWEST COST is given a
  financial score of 100 and others inversely
  proportional

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• Negotiation and Award of contract
• Combine Quality and Cost Evaluation
• - weight them as appropriate cost being around
  20 points on average
• - weighting shall be specified in RFP
• Highest score firm invited for negotiations
• - Discuss TOR, methodology, staffing, special
  condition of contract
• - Major reduction in work input should not be
  made solely to meet the budget
• - modifications to TOR incorporated in
  Description of Services
• If negotiation fail to result in an acceptable
  contract, negotiations shall be terminated and
  next ranked firm invited for negotiation
• Publication of the Award of Contract
• - UNDB online and dg market
• Names of consultants submitted proposals
• Technical points
• Evaluated price
• Final points ranks of consultants
• Name of the wining consultant, the price,
  duration and scope of work.

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• Path Finder
• UNDB is a publication of the United Nations
• Subscription information is available from
• Development Business, United Nations GCPO Box
  5850, New York, NY 10163-5850, USA (Website
  www.devbusiness.com email dbsubscribe_at_un.org)
• Development Gateway Market is an electronic
  portal of Development Gateway Foundation, 1889 F
  Street NW, Washington, DC 20006, USA (Website
  www.dgmarket.com)

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• CONCLUSION
• ALWAYS REMEMBER
• THE KEY TO SUCCESS
• IS
• - TENDER RESPONSIVENESS
• THANK YOU