Methods of Consultancy Selection and Provisions Relating to Consultancy Service Procurement under the Public Procurement Act, 2063 and Regulation, 2064

1. Methods of Consultancy Selection (4 marks)

Section 40 of the Public Procurement Act, 2063 and Rules 75–86 of the Public Procurement Regulation, 2064 provide the following methods for selecting consultants:

(a) Open Competitive Bidding (Rule 75) This is the default and primary method. The Public Entity publishes a notice of Request for Expression of Interest (EOI) in a national daily newspaper and on its website, inviting interested national and international consultants to submit proposals. EOIs are evaluated against pre-determined criteria and a shortlist of qualified consultants (normally 3 to 6) is prepared. A Request for Proposal (RFP) is then issued to the shortlisted consultants. Proposals are evaluated in two stages — technical and financial — and the contract is awarded to the highest-scoring responsive proposal.

(b) Limited Competitive Bidding (Rule 76) Where the number of qualified consultants is limited, or where the nature of the service is such that only a few consultants are available, the Public Entity may invite proposals from a limited number of consultants (normally not less than three) by giving them equal opportunity. Prior approval of the competent authority is required.

(c) Direct Negotiation / Single-Source Selection (Rule 77) A consultant may be selected by direct negotiation in exceptional circumstances, such as:

• The service is of a highly specialised nature and only one consultant is available;
• Emergency situations where prompt action is required;
• Continuation of an ongoing assignment where the same consultant is required for reasons of continuity, compatibility or proprietary knowledge;
• Where the estimated cost is below the threshold prescribed for direct procurement.

(d) Selection from a Panel / Roster (Rule 78) For small or routine assignments, the Public Entity may maintain a roster or panel of qualified consultants and select a consultant from it on a rotational or random basis.

(e) Individual Consultant Selection (Rule 79) Where the assignment is small, or where a team is not required, an individual consultant may be selected on the basis of qualifications and experience, following a comparison of at least three candidates.

2. Provisions Relating to Consultancy Service Procurement (6 marks)

(a) Preparation of Terms of Reference (TOR) (Rule 75) Before inviting proposals, the Public Entity must prepare a clear TOR specifying the objectives, scope of work, deliverables, duration, qualification and experience required of the consultant, and the evaluation criteria. The TOR must be approved by the competent authority.

(b) Expression of Interest and Shortlisting (Rule 75) A notice of EOI is published in a national daily and on the website of the Public Entity, giving at least 15 days for submission. EOIs are evaluated against the pre-determined criteria, and a shortlist of normally 3 to 6 qualified consultants is prepared. Only shortlisted consultants are issued the RFP.

(c) Request for Proposal (RFP) (Rule 75) The RFP must contain the TOR, instructions to consultants, evaluation criteria and weightage, the form of contract, and the deadline for submission. The RFP must be issued to all shortlisted consultants simultaneously and on equal terms.

(d) Two-Stage Evaluation (Rule 80) Proposals are evaluated in two stages:

• Technical Evaluation: The technical proposal is evaluated first, based on the consultant's experience, qualification of key personnel, methodology, work plan and past performance. The minimum qualifying technical score is normally 70 out of 100.
• Financial Evaluation: Only the financial proposals of consultants who secure the minimum technical score are opened and evaluated. The financial proposal of the highest-ranked technically qualified consultant is considered first.

(e) Award of Contract (Rule 81) The contract is awarded to the consultant whose proposal is determined to be the most responsive and who obtains the highest combined score, based on the weightage prescribed in the RFP (normally 70:30 or 80:20 for technical and financial respectively). Negotiation is held only with the highest-ranked consultant, and if negotiation fails, the next ranked consultant may be invited.

(f) Form of Contract (Rule 82) The contract must be in writing and must include the scope of work, deliverables, time schedule, payment terms, penalty for delay, and provisions for termination. The contract must be signed by the authorised representative of the Public Entity and the consultant.

(g) Payment Provisions (Rule 83) Payment to the consultant is made as per the payment schedule specified in the contract, normally linked to the submission and acceptance of deliverables. Advance payment, if any, must be backed by a bank guarantee of an equivalent amount.

(h) Performance Security (Rule 84) The selected consultant must furnish a performance security of 5 to 10 percent of the contract amount, valid until the completion of the assignment, to ensure the faithful performance of the contract.

(i) Monitoring and Evaluation (Rule 85) The Public Entity must monitor the progress of the consultancy service against the agreed work plan and evaluate the performance of the consultant. The evaluation report must be kept on record and may be considered in future selections.

(j) Termination of Contract (Rule 86) The contract may be terminated by the Public Entity for reasons such as breach of contract, unsatisfactory performance, insolvency of the consultant, or in the public interest, following the procedure prescribed in the contract and the Regulation.

(k) Records and Transparency All records relating to the procurement of consultancy services — EOI, shortlist, RFP, evaluation reports, negotiation minutes and contract — must be maintained and made available for audit and review, ensuring transparency and accountability in the procurement process.