15.2 Methods of Selection

The following methods may be used to select consultants depending upon the implementing agency and the nature of work.

15.2.1 Direct Award
For small assignments, as defined by FAR and donor guidelines, a direct award may be made to a consultant or individual expert.

15.2.2 Cost Based Selection (CBS)
For small to medium assignments, consultants may be selected on the basis of cost, provided the invited consultants meet minimum technical requirements. CBS is suitable for assignments in which the scope of work and methodology are routine and well defined, the capabilities of the consultants are well known, and cost is the major criterion for selection.

CBS requires that the implementing agency prepares clear concise Terms of Reference (TOR) for the consulting work. Quotations are then requested on the basis of these TOR from at least three reputable consultants selected from the implementing agency’s register of domestic consultants, supported by a technical and financial proposal.

15.2.3 Quality and Cost Based Selection (QCBS)
For medium to large assignments, consultants may be selected on the basis of quality and cost. QCBS is suitable for a wide range of field investigation, design and construction supervision services where the technical approach, quality and experience of personnel, and the resulting cost proposed by the consultant may differ significantly. The implementing agency seeks a combination of technical quality and cost most appropriate for the needs of the project.

QCBS requires separate technical and financial proposals from at least three reputable consultants either selected from the implementing agency’s register of domestic consultants or through a shortlisting process.

15.2.4 Quality Based Selection (QBS)
Consultants may be selected on the basis of the technical quality of their proposals without comparing costs in special situations:

• Highly specialised assignments where the TOR cannot be defined precisely e.g. economic or sector studies, multi-sectoral studies, financial sector reforms.
• High downstream impacts justifying selecting the best experts e.g. feasibility and structural engineering design of major infrastructure, policy studies of national significance, management studies of large HMG/N agencies.
• Assignments which could be carried out in substantially different ways e.g. management restructuring.

The decision to proceed with QBS shall be made by the secretary of the concerned ministry. QBS requires separate technical and financial proposals from at least three reputable consultants either selected from the implementing agency’s register of domestic consultants or through a shortlisting process.

15.2.5 Other Considerations
The FAR permits the implementing agency to negotiate directly for consulting services with any institution after receiving a financial and technical proposal with more than 50% HMG/N ownership, irrespective of the cost of services, provided the institution is qualified in the field of the assignment.

The FAR requires that a foreign consultant be shortlisted only if he submits a certificate of agreement to work jointly with a domestic consultant. This requirement may not apply in the case of donor-assisted projects.

In cases where domestic and foreign consultants are invited, the cost proposals of domestic consultants are given a cost preference of 10% without penalty when compared to the cost of foreign consultants.

Figure 15.1 provides an outline of the major steps in these consultancy award processes.