Q.1 List and explain in brief the methods of selection of consultants.

6.5 Methods of Selection of Consultants

The methods of selection have been designed to achieve the objectives of quality, efficiency, and
economy, fairness and transparency in selection process and to encourage competition.

6.5.1 Quality and Cost based Selection (QCBS):

(a) Features: QCBS is a method based on the quality of the proposals and the cost of the
services provided. It is the most commonly used method of selection for most of the types of
services.
Under QCBS the technical and financial proposals are submitted simultaneously in separate
sealed envelopes (Two-cover system). Proposals received after the deadline is rejected.
Evaluation of the proposals is done in two stages-Quality and cost. The envelopes containing the
technical proposals are opened by a committee of officials of the Client immediately after the
closing time for submission. The financial proposals envelopes remain sealed. The evaluation of
the technical proposals is done as per criteria set out in the RFP. Technical scores of the technical
proposals are notified publicly. The financial envelopes of those consultants who score more
than the stipulated minimum qualifying score are opened in the presence of the consultants or
their representatives wishing to attend. The financial proposals are then evaluated and the
technical and financial scores are then combined according to the weights indicated in the RFP.
The consultant obtaining the highest combined score is selected for award. He is then invited for
negotiations. Because price is a factor of selection, the staff rates and other unit rates are not to
be negotiated.
(b) Where appropriate: This method of selection is appropriate when:
The type of services required is common and not too complex;
The scope of the work of the assignment can be defined with precision and the TOR is clear and
well specified;
We (Client who hires the consultant) as well as the consultant can estimate with reasonable
precision the staff time, the assignment duration and the other inputs and costs required of the
consultants;

The risks of downstream impacts are quantifiable and manageable;

The capacity building aspect of the assignment can be estimated with regard to duration and staff
time effort;
•To ensure receipt of responsive proposals, the RFP under QCBS shall indicate the level of key
staff inputs (in staff time) estimated by us (theClient) to carry out the assignment or the estimated
cost of the services, but not both. However the consultants shall be free to determine their own
estimates of staff time to carry out the assignment and to offer the corresponding cost in their
proposals.
(c) Type of assignments for which this method of selection is adopted: QCBS is adopted for
the following assignments:
· Feasibility studies and designs where in the assignment is simple and well defined;
· Preparation of bidding documents and detailed designs;
· Supervision of the construction of works and installation of equipment;
· Technical, financial or administrative services of a noncomplex nature;
· Procurement and inspection services;
QCBS may not be appropriate for complex or specialized assignments in which the scope of the
assignment is not well defined and staff time are difficult to estimate. Since cost is a factor in
selection under QCBS consultants may propose conventional approaches and tested
methodologies to keep the costs low. This may ultimately affect the quality of the assignment
especially if the downstream impacts are complex, large or unknown.

6.5.2 Quality Based Selection (QBS):

(a) Features: QBS is based on the evaluation of the proposal quality without any initial
consideration of cost. As in the case of QCBS, the technical and financial proposals are received
in two separate envelopes. The technical proposals are evaluated. The financial proposal of that
consultant who has scored the highest technical score (which should of course be more than the
stipulated minimum score) shall be opened for evaluation of financial proposals. Because the
OR of the assignments under QBS are generally more complex and less defined than under
QCBS, contract negotiations with the winning consultant may be lengthy and complicated, we
may need the assistance of a Technical advisor.
(b) Where appropriate:
QBS is appropriate when:
· The downstream impact of the assignment can be so large that the quality of the services is of
overriding importance for the success of the project as a whole;
· The scope of the work, the duration of the assignment, and the TOR require a degree of
flexibility because of the novelty or complexity of the assignment, the need to select among
innovative solutions, or the particular physical, environmental, social or political circumstances
of the assignment;
· The assignment itself can be carried out in substantially different ways such that cost proposals
may not be easily or necessarily comparable;
· The introduction of cost as a factor of selection makes competition unfair;
· The need exists for an extensive and complex capacity building program;
The RFP under QBS shall also indicate the level of key staff inputs (in staff time) estimated by
the Client to carry out the assignment or the estimated cost of the services, but not both.
However the consultants shall be free to determine their own estimates of staff time to carry out
the assignment and to offer the corresponding cost in their proposals. The staff time indicated by
the consultants or the cost may differ considerably from our (Client’s) estimates, depending on
the particular methodology adopted by the consultant. The proposals should not be rejected on
this account.
(c) Type of assignments where this method of selection is adopted:
QBS shall be adopted for assignments such as the following:
· Complex sector and multidisciplinary studies of a complex nature;
· Important and far reaching strategy studies;
· Complex master plans, pre-feasibility and feasibility studies, or design of large and complex
projects;
· Assignments in which consultant organizations with different cost structures (for example
traditional consultants, nongovernmental organizations (NGOs) are required to compete;
· In situations of strong uncertainty or risk for the project;
· Design contests in which consultants present a plan or design based on concept or criteria
provided by the Client examples being:
- Railway Stations, Ports, Airport Terminals,
- Public buildings such as hospitals, theatres, concert halls, university campuses, arts and sports
centers, exposition and fair complexes, Malls, Multiplexes and government buildings;
- Rehabilitation of large, obsolete, or abandoned structures and areas to create multipurpose
centers for public use;
6.5.3 Selection under a Fixed Budget (FBS):
(a) Features: In this method, the available budget is disclosed in the RFP to the invited
consultants. The budget indicated in the RFP should be reasonable, compatible with the TOR and
the consultants should be able to perform within the budget. Under the FBS, the consultants to
whom the RFP is issued are requested to submit their technical and financial proposals in
separate envelopes. Technical proposals are evaluated first using the same procedures as for
QCBS and QBS and the financial proposals of those consultants who score more than the
minimum are opened in public.
Because Lump sum form of contract (this will be described in paragraph 6.9.2 later) no
corrections shall be made to the financial proposals. Activities and items described in the
technical proposals but not priced or quantified differently in the financial proposal from the
technical proposal shall be assumed to be included in the prices of other activities or items. That
means the financial proposals will not be altered. We discard the proposals that exceed the
indicated budget and select the consultant who has submitted the highest ranked proposal within
the budget.

(b) Where appropriate: FBS is appropriate only when:

The budget cannot be exceeded;
The objective and the TOR including the scope of work are very precisely defined;
The time and the staff month effort required from the consultants can be assessed with precision;
Capacity building is limited to a simple transfer of knowledge, that can be very easily estimated;

(c) Negotiations: Because the budget is fixed, the consultant’s TOR cannot be changed
substantially and technical negotiations cover only minor aspects. Financial negotiations will not
include discussions of remuneration rates and of other unit rates, but only of minor
rearrangement of activities and staff for compatibility with the work plan and clarification of tax
liability.

(d) Type of assignments for which this method of selection is adopted:

FBS is likely to result in better quality proposals than under QCBS, because it is easier for
consultants to maximize quality under a fixed budget than under simultaneous quality and cost
competition. FBS also requires a shorter time than QBS for negotiations. FBS is convenient for
consultants because the pre-established budget allows them to determine in advance whether
they are interested in competing for the proposed assignment and to develop the best proposal
consistent with budget. More so than with QBS and QCBS, FBS requires the TOR to be
consistent with the established budget and to contain a well specified scope of work for
consultants to present clear and responsive proposals. The main risk of using the FBS is under
budgeting the TOR and in doing so, discourage good consultants from participating and then
receiving poor performances from the awarded consultant.

6.5.4 Least Cost Selection (LCS):

(a) Features: Under LCS a minimum qualifying mark for quality is fixed and indicated in the
RFP. Shirt listed consultants are requested to submit their proposals (technical and financial) in
two separate envelopes. Of the consultants who have scored more than the minimum technical
score, the consultant with the lowest price is selected. LCS shall not normally used as a substitute
for QCBS. Because quality is to be ensured, we should set a mark that is higher than usual (for
example 75 or 80 percent) to ensure quality and avoid the risk of selecting low cost proposals of
poor or marginally acceptable quality.

b) Where appropriate: The LCS method is appropriate only for small assignments of a standard
or routine nature wherein the intellectual component is minor, well established practices and
standards exist.

(c) Type of assignments for which method of selection is adopted:

The LCS method of selection is adopted for the following assignments:
Standard accounting or simple audits;
Engineering designs or supervision of simple projects;
Repetitive operations, maintenance work and routine inspections;
Simple surveys;
6.5.5 Selection Based on Consultant’s Qualifications (CQS):

(a) Features: Under CQS, we first request expression of interest (EOI) and qualification
information relating to the experience and competence of the consultants relevant to the
assignment. We then evaluate the information, establish a shortlist and then select the
firm with the best qualifications and references among those who confirm to be willing to
submit a proposal if selected. The RFP is then sent to the selected consultant and asked to
submit technical and financial proposals and then invited to negotiate the contract if the
technical proposal proves acceptable.
(b) Where appropriate: CQS method is appropriate for assignments for which the cost of a
fully fledged selection procedure would not be justified. CQS method can substantially
reduce the process cost for us as well as the consultants and the time required to hire a
consultant as well. This method is particularly suitable when the past qualifications and
experience of the consultant are crucial to the choice while the technical proposal itself is
not likely to reveal much additional or decisive information on the suitability of the
consultant for the proposed assignment.
(c) Type of assignments for which this method is adopted:
CQS is usually adopted for the following assignments:
Evaluation studies at critical decision points in the project implementation such as review
of alternative solutions with large downstream effects;
 Executive assessments of strategies and programs;
 High level, short term, expert advice;
 Participation in project review panels;

6.5.6 Single Source Selection (SSS):

(a) Features: Under this method, we request the already identified consultant to prepare
technical and financial proposals which are then negotiated.
 (b) Where appropriate: Because there is no competition, we should use this method, only
when it offers obvious advantages over a competitive method, as in the following cases:
The assignment represents a natural or direct continuation of a previous one awarded
competitively and the performance of the consultant has been good or excellent;
 The consultant’s prompt availability is essential (for example in emergency
operations following a natural disaster, a financial crisis etc.);
 The contract value is very small;
 Only one consulting organization has the qualifications or experience required to
carry out the assignment;

(c) (c) Type of assignment for which this method of selection is adopted: Good or
excellent performance in the first assignment has to be a precondition for contract
continuation. In such cases, we should weigh the importance of continuing with the same
technical approach, the experience acquired and the continued professional liability of the
incumbent consultant against the benefits of competition, such as fresh technical
approaches and competitive remuneration rates. In these cases we have to consider and
account for the time and cost of a competitive round, because it may weigh considerably
on our decision. SSS should not normally be adopted when the downstream assignment is
substantially larger in value than the initial one.

Q.2 Describe six channels that can be used for communication, giving the salient
advantages/disadvantages of each and the situation each is best suited for.

Different channels (media) of communication are available today. The bellow table presents the
advantages and disadvantages of using the various channels available.

Medium Advantages Disadvantages Best used for

Face-to-face 1. Promotes trust 1. Expensive 1. Recruiting
meeting 2. Content & level of 2. Time consuming 2. Team building
formality can be adjusted 3. Brainstorming
during the meeting 4. Developing new
3. Disagreements can be business
negotiated 5. Confidential and
sensitive personal issues
Phone Call 1. Requires immediate 1. Interrupts workflow 1. Social interaction
response 2. Can extend for checking 2. Quick fact checking
2. opportunity to restate a long time
or clarify if the listener 3. No record
does not understand 4. Hard to judge
the emotional
component

Video 1. Can be used for a 1. Substantial organization 1. Meetings required to

conference ‘milestone’ interaction to arrange a video be conducted periodically
e.g. finalizing an conference (especially when participants are
 important drawing to be across time zones) geographically dispersed
issued for construction 2. Limited possibility of a
2. Relatively inexpensive breakthrough if
compared to face-to face participants have not
meeting previously met face-to-
face
e-mail 1. Easy and quick Impersonal and lacks Normal communication
especially across time emotional issues and between co-workers
zones hence liable for
2. Easily copied to several misinterpretation
people simultaneously
3. Can be saved and
printed
4. recipient can access the
message at any time
Memo   Quasi-formal Routine
Letter 1. Permits time for 1. One-sided 1. Statement of terms &
analysis of proposals 2. Response may be conditions of a business
2. Can be the basis of a delayed deal
formal contract 3. It takes time to prepare 2. Formal instructions
3. Can be formal or a good letter 3. Formal warnings
informal as per the 4. Documenting items
intended message to be agreed in face -to-face
conveyed meetings

Q.3. Explain International competitive Bidding, its requirements and steps followed for ICB

International Competitive Bidding (ICB)

In ICB, we (as Employer or Purchaser) invite open bids for works and goods (through wide
advertisement in electronic as well as print media) from Contractors and Suppliers across the
globe, which are eligible to perform the contract. That is why it is also called Global Competitive
Bidding.

Requirements for ICB

(a) Advertisement: we (as Employer or Purchaser) have to publish the Invitation for
Prequalification of works/Invitation for Bids (IFB) in widely seen websites such as
United Nations development Business online (UNDB online), and in the Development
Gateway’s dgMarket to attract the attention of the foreign contractors and suppliers,. The
Invitation for prequalification/ IFB shall contain details regarding the scope of the ICB,
the address and telephone numbers of the officer from whom details could be got (or
the/pre-qualification/bidding documents are available), the website where the detailed
Invitation for pre-qualification/IFB and pre-qualification/bidding documents are
available, the last date and time, the place for submission of the pre-qualification
applications/bids. To ensure further wide publicity, we could also send copy of the
Invitation for pre-qualification/IFB to the Embassies and Trade representatives of the
countries from where we can expect participation in the bid. All the countries have their
 Embassies and Trade representatives in New Delhi. We should also publish the Invitation
for prequalification/ IFB in national news paper(s) having wide circulation in metros and
principal cities of India and also in the region where the procurement is being made. We
should also publish the Invitation for pre-qualification/IFB in appropriate Trade Journals
published in the country. These actions will ensure adequate publicity and we could
expect better competition and thus economic and efficient procurement.

(b) Pre-qualification document (for works): The pre-qualification document shall include
sufficient details regarding eligibility, method of submission of pre-qualification
documents, details of documents/ information to be furnished, qualification criteria to be
satisfied, evaluation methodology, preparation of the list of pre-qualified applicants and
notification of the list of approved pre-qualified bidders.

(c) Period for submission of pre-qualification documents: The pre-qualification

submission period, that is the period from the date of publication of the Invitation for pre-
qualification in the press or the date of making available the document for sale
(whichever is later) shall be sufficiently large, depending on the size and complexity of
the proposed contract to enable the prospective applicants to obtain the pre-qualification
document, study the field conditions, collect field data, compile the qualification and
other required information and then submit prequalification applications. A period
between 45 to 60 days depending on the size and complexity of contracts is considered
reasonable.

(d) Bidding document (for works and goods): The bidding document shall include
sufficient details regarding eligibility, method of submission of bids, bid security (amount
and currency) to be furnished, period for submission of bids, qualification criteria to be
satisfied, evaluation methodology, securities to be submitted, award of contract etc. It
shall also include internationally accepted Conditions of Contract, such as those
developed by Federation Internationale Des Ingenieurs-Conseils (FIDIC) and Institution
of Engineers, U.K.

(e) Bidding period (for works): The bidding period, that is the period from the date of issue
of the bid document to pre-qualified bidders to the last date stipulated for the submission
of the prequalification document, shall be sufficiently large, depending on the size and
complexity of the proposed contract to enable the prospective bidders to obtain the
bidding document, study the field conditions, collect field data, work out reasonable rates
and then submit meaningful bids. A period between 45 to 60 days or even more in case of
large and complex contracts is considered reasonable.

(f) Bidding period (for goods): The bidding period, that is the period from the date of
publication of the IFB in the press or from the date of making available the document for
sale (whichever is later) to the last date for submission of bids, shall be sufficiently large,
depending on the size and complexity of the proposed contract to enable the prospective
bidder to obtain the bidding document, study the same, work out the reasonable rates and
then submit meaningful bids. A period between 45 to 60 days is considered reasonable.
Steps for ICB

(a) Works with pre-qualification:

We, as the Employer, have to take the following essential steps:
 Notification and advertising for submission of pre-qualification applications;
 Issue/sale of pre-qualification documents to prospective bidders;
 Submission of pre-qualification applications by the prospective bidders;
 Opening of pre-qualification applications;
 Evaluation of pre-qualification applications;
 Preparation of the list of pre-qualified bidders;
 Issue the bidding document to the pre-qualified bidders;
 Submission of bids by pre-qualified bidders;
 Evaluation of the bids;
 Selection of lowest evaluated responsive bid;
 Contract award and signing of the contract with the Contractor;
 Contract performance by the Contractor;

(b) Works and goods without pre-qualification (post-qualification):

We, as the Employer/ Purchaser, have to take following essential steps:
 Notification and advertising;
 Issue/sale of the bidding document to the prospective bidders;
 Submission of bids by prospective bidders;
 Evaluation of the bids;
 Selection of lowest evaluated responsive bid based on post-qualification;
 Contract award and signing of Agreement with the Contractor/ Supplier[6];
 Contract performance by Contractor/Supplier;