PWD Part II, Procedural Directives, Volume A, 15.2

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.

PPA -2007, Chapter 4, clause 31

31. Soliciting Proposals:

(1) After a short list has been prepared pursuant to Section 30, the Public Entity shall request for proposals from intending proponents, by giving a period of at least thirty days, sending the documents relating to proposal, as prescribed to the intending proponents who are short listed.

(2) The documents relating to proposal under in Sub-section (1) shall contain the following matters:-

• The name and address of the Public Entity,
  
• The nature of the services to be procured, the time and place when and where the services are to be provided, the terms of reference of the services, the task to be completed and expected outputs,
  
• Instructions to proponent to prepare proposal,
  
• Matters that the technical and the financial proposals have to be sealed in separate envelopes, each of which has to clearly indicate the type of proposal outside it and that both envelopes have then to be sealed in a separate envelope and that the required services have to be mentioned thereon,
  
• Technical and financial evaluation weightage,
  
• The criteria and weightage marks for the evaluation and comparison of proposal,
  
• Conditions of the procurement contract,
  
• The place, date and time for the submission of proposals,
  
• Method for the selection of proposals,
  
• Statement that proposals shall not be processed in the event of conflict of interest and information relating to legal action if fraud or corruption is committed,
  
• Provision that a proponent may make an application for review, against any error or decision made by the Public Entity in carrying out proposal proceedings, and
  
• Other matters as prescribed.
  

(3) In setting forth in the documents relating to proposals under Subsection (1), the criteria for the evaluation of proposal pursuant to clause (f) of
Sub-section (2), any or all of the following criteria shall be set forth as required for the evaluation of technical proposal:-

• Experience of consultants in the task to be performed by consultants,
  
• The quality of proposed methodology for the performance of task by the consultants,
  
• The qualification of the proposed key human resource,
  
• Provision of knowledge and technology transfer,
  
• In the case of international level proposals, the details of key Nepalese human resource proposed for the performance of task.
  

(4) In setting forth in the documents relating to proposals under Sub-section (1), the method for the selection of proposal pursuant to
clause (i) of Sub-section (2), there shall be set forth which of the following methods shall be used for the selection of proposals:-

• Quality and cost method,
  
• Quality method,
  
• Fixed Budget method, or
  
• Least cost method.
  

(5) Notwithstanding anything contained in Sub-section (4), where the nature of the consultancy services to be procured is exceptionally complex or such services are likely to have considerable impact on future projects or national economy, the selection of proposals may be made exclusively on the basis of the quality method, as prescribed.

PPR 2007, Chapter 3 clause 19

19. Procurement to be Made from Those Who have Obtained Permanent Account Number and Value Added Tax Certificate:

(1) A Public Entity shall have to procure only from the individual, firm organization or company who have obtained Permanent Account Number and Value Added Tax registration certificate from the Inland Revenue Office.

(2) Notwithstanding anything contained in Sub-rule (1), procurement may be made also from an individual, firm, organization or company who has not obtained a Value Added Tax Certificate in the following conditions:-

• In procuring goods or having a construction works carried out of an amount valuing less than five thousand Rupees,
  
• In procuring goods on which value added tax is not applicable,
  

Standard Contract Documents (For further information refer Appendix: Contract Agreement GTS 01)

Standard Form of Contract Value Between 0.15 Million To 30.00 Million

Standard form of Contract Value More Than 30.00 million