WORLD BANK

CONSULTANT GUIDELINES

Seminar on Procurement of Goods, Works

and Consultancy Contracts financed from
World Bank Loans and IDA Credits,
February 27 - March 3, 2006, Zagreb,
Croatia.
CONSULTANT GUIDELINES

• Five sections

I. Introduction
II. Quality and Cost Based Selection
(QCBS)
III. Other methods of selection
IV. Types of contracts and important
provisions
V. Selection of individual consultants

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 CONSULTANT GUIDELINES

• Three Appendixes

Appendix 1: Review by the Bank of the selection

of consultants
Appendix 2: Instructions to consultants
Appendix 3: Guidance to Consultants

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 GOODS AND WORKS vs
CONSULTANTS
GOODS AND WORKS
• Product based
• Open competition
• Price is major criterion
• Public opening
CONSULTANTS
• Knowledge based
• Shortlists
• Price plays minor role
• Non-public opening of
technical proposals
• Public opening of financial
proposals
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 GOODS AND WORKS vs
CONSULTANTS

GOODS AND WORKS CONSULTANTS

• Detailed specifications • Terms of Reference
(General work program)
• Single stage procedure • Two-stage procedure
(normally)
• Negotiations only • Negotiations normally
exceptionally

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 I. INTRODUCTION

• 1.1 – 1.3 Purpose

• These guidelines define the policies and procedures for
selecting, contracting and monitoring consultants
required for projects that are financed in whole or in part
by loans financed by the Bank, including credits and
grants from the International Development Association
(IDA).
• Relations between Government and consultants are not
directly governed by Guidelines, but by the specific
Request for Proposal (RFP) and signed contracts.
• Relations between the Government and the Bank are
governed by the Loan Agreement.

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 I. INTRODUCTION

• Defines the term consultants which includes a

wide variety of private and public entities,
including consulting firms, engineering firms,
construction managers, management firms,
procurement agents, inspection agents, auditors,
UN agencies and other multinational
organizations, investment and merchant banks,
universities, research institutions, government
agencies, nongovernmental organizations
(NGOs), and individuals

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 I. INTRODUCTION

• 1.4 – 1.6 General Considerations

• 5 main considerations guide the Bank’s policy on the selection

process.
(a) the need of high quality services;
(b) the need for economy and efficiency;
(c) the need to give all qualified consultants an opportunity
to compete in providing services financed by the Bank;
(d) the Bank’s interest in encouraging the development and
use of national consultants in the borrowing country; and
(e) the importance of transparency in the selection process.
• QCBS is the “most commonly recommended” method.

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 I. INTRODUCTION

• 1.7 Applicability of Guidelines

• Applies to all contracts for goods and works

financed in whole or in part from the Bank loans.

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 I. INTRODUCTION

• 1.9 Conflict of interest

(a) Conflict between consulting activities and

procurement of goods;
(b) Conflict among consulting assignments;
(c) Relationship with Borrower’s staff;

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 I. INTRODUCTION

• 1.11 Eligibility
Consultants from all countries are eligible
Consultants may be excluded and not eligible:
(a) If as a matter of law or official regulations,
the Borrower’s country prohibits commercial
relations with the consultant’s country, provided
that the Bank is satisfied that such exclusion does
not preclude effective competition; or by an act of
compliance with decision of the UN Security
Council, Borrower’s country prohibits any
payments to any country, person, or entity.
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 I. INTRODUCTION

(b) Government-owned enterprises or institutions in the

Borrower’s country, unless they can establish that they
are legally and financially autonomous, operate under
the commercial law and are not dependent agencies of
the Borrower;
(c) Exception to the above, if the services of a
government owned-university or a research institute in
the Borrower’s country are of unique and exceptional
nature, and their participation is critical to project
implementation, the Bank may agree on the hiring of
such institutions on a case-by-case basis. Same applies
to university professors or research scientists.

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 I. INTRODUCTION

(d) Hiring of Government officials and civil

servants as individuals or as members of a team
of a consulting firm, ONLY IF:

 they are on leave of absence without pay;

 are not being hired by the agency where working
immediately before going on leave;
 their employment would not create a conflict of
interest.

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 I. INTRODUCTION

(e) a firm declared ineligible by the Bank (debarred).

1.13 Associations between Consultants – All

partners shall be jointly and severally liable for the
contract implementation.

1.17. Misprocurement

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 I. INTRODUCTION

1.19 Training and transfer of knowledge

If training and transfer of knowledge is an important

component of the assignment, the TOR shall
indicate the objective, nature, scope and goals of
the training program, including details on trainers
and trainees, skills to be transferred, time frame,
monitoring and evaluation arrangements

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1.20 Language

1.22 Fraud and Corruption

1.24 Procurement plan – during implementation

should be expanded to include key steps.

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 Quality and Cost Based Selection
(QCBS)

The most commonly recommended method

• Prepare TOR
• Advertise for Expressions of Interest (EOI)
(mandatory for all appointments of firms)
• Preparation of shortlist (6 firms) – My comprise
only national consultants for assignment under a
threshold indicated in the Procurement Plan
• Prepare Request for Proposal (RFP)(Bank
standard)

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 Quality and Cost Based Selection
(QCBS)

• Submission and opening of technical proposals

• Technical evaluation and Evaluation Report
• Public opening of Financial Proposals
• Evaluation of financial proposals
• Final Evaluation Report
• Negotiations and Contract

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 Quality and Cost Based Selection
(QCBS)

• Prepare TOR
– Background
– Objective
– Scope of Services
– Reports and Deliverables (Output)
– Clients Input
– Institutional arrangements and reporting

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 Quality and Cost Based Selection
(QCBS)

• Prepare cost estimate Generally divided in two

broad categories:

(a) fee or remuneration (according to the type of

contract)
(b) reimbursables (incl. (travel and transport,
per diem/subsistence, incidentals) and further
divided into foreign and local costs, if
applicable.

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 Quality and Cost Based Selection
(QCBS)

• Advertising:
– GPN in UNDB and Development Gateway
(required) - online
– Request for Expressions of Interest published
in local newspaper (plus UNDB if over
$200,000) (required)
– Use Bank standard form(s) of advertising
– time allowed to respond - not less than 14 days

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 Quality and Cost Based Selection
(QCBS)

• Preparation and issuance of Request for Proposal

(RFP)
– Use Bank’s standard RFP comprising of 1) LOI;
2) information to consultant (ITC); 3) TOR; and
4) draft contract
– All documents are prepared in English
– All sections must be completed as far as
possible, including draft contract.
– RFP may indicate estimated staff months or
budget (but not both)
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 Quality and Cost Based Selection
(QCBS)

• Preparation of RFP
• ITC data sheet must be completed with
Evaluation Criteria
– relative weights (quality & cost-total 100 points)
• use cost factor judiciously depending on
nature of assignment
• quality usually 80 out of 100 points
• cost usually 20 out of 100 points

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 Quality and Cost Based Selection
(QCBS)

• Preparation of RFP
– break-down of quality points (100 points)
• consultants specific
experience 5-10 points
• methodology 20-50 points
• key personnel 30-60 points
• transfer of knowledge 0-10 points
• participation by nationals 0-10 points
– minimum technical score to qualify--70 to 80
points (select a number) 24
 Quality and Cost Based Selection
(QCBS)

• Preparation of RFP
– The RFP includes samples of contracts that may be
included. WB sample contract form must be used
• Types of contracts
– Lump Sum
– Time-based
– Retainer and/or contingency fee
– Percentage
– Indefinite delivery

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 Quality Based Selection (QBS) (par.
3.2 through 3.4)

As for QCBS except

• specify minimum technical score required to
qualify
• shortlisted firms to submit technical proposals
only or request technical & price proposals as per
QCBS and open the financial proposal of only the
highest ranked after technical evaluation report no
objected
• request highest ranked firm based on technical
evaluation to submit the financial proposal

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 Fixed Budget Selection (FBS) (par.
3.5)

As for QCBS except

• RFP indicates budget and not estimated staff time
• open financial proposals of firms that qualified in
technical evaluation
• review that each financial proposal contains all
cost elements stated in technical proposal; if not
make appropriate adjustments
• any proposals that exceed the budget are
rejected
• firm scoring the highest technical points is
selected for negotiation
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 Least Cost Selection (LCS) (par.3.6)

As for QCBS except:

• opening of financial proposals above a
minimum technical score
• Final Evaluation Report will recommend
award to the lowest price proposal

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 Consultants’ Qualifications (CQ) (par
3.7. and 3.8.)
For contracts less than $200,000
• prepare TOR
• solicit expressions of interest (EOI as for QCBS)
• prepare short list
• Prepare simple evaluation report and select firm
most qualified
• selected firm requested to submit combined
technical and financial proposals
• negotiate contract
• Contract as per Bank sample for small contracts
• Bank review as per procurement plan

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 Single Source Selection (SSS) (par.
3.9 though 3.13)

Only in exceptional cases for tasks representing:

- natural continuation of previous work same staff
at same terms and conditions if previously by
competition
- emergency situation
- for very small assignments
– only one firm qualified and experienced
• Bank’s prior no-objection required for TOR,
selection and draft contract before signing

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 Other selection methods

• Commercial Practices (par. 3.14)

• Selection of Particular Types of Consultants
- UN Agencies as consultants (par. 3.15)
- Nongovernmental Organizations (NGO) (par. 3.16)
- Procurement Agents (par. 3.17)
- Inspection Agents (par. 3.18)
- Banks (par. 3.19)
- Auditors (par. 3.20)
- Service Delivery Contracts (par. 3.21)

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 Selection of Individual Consultants

• Individual consultants are considered

1.Teams of personnel are not required
2.No additional professional support is
required
3.Experience and qualifications of the
individual are most important
• If hiring and coordination of a number of
individuals will be difficult, hire a firm

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 Selection of Individual Consultants

• Preparing TOR together with evaluation criteria

and scoring system
• Qualifications for the assignment
1.Academic background
2.Experience
3.Knowledge of the local conditions -
language, culture, administrative system,
government organization

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 Sole Source Selection

• Only as an exception e.g.

– Continuation of previous task (previous

selection should be competitive)
– Assignment with total expected duration of less
than six months
– The individual is the only qualified consultant
– Emergency situations resulted from natural
disasters

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 TYPES OF CONTRACTS

• Lump Sum Contract – used when content and the

duration of services and the required output of the
consultants are clearly defined.
• Time Based Contract – appropriate when it is
difficult to define the scope and length of services
• Retainer/Contingency Contract – used when
consultants (banks or financial firms) are
preparing companies for sales or mergers of firms
(in privatization operations)

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 TYPES OF CONTRACTS

• Percentage Contracts – commonly used for

architectural activities, procurement and
inspection agents.
• Indefinite Delivery Contracts – used when “on
call” specialized services or advise on a particular
activity is needed, the extent and timing of which
cannot be defined in advance.

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