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Procurement of Consultancy Services Other Services

17 May 2021| Posted by Marsh | In Other Services

Depending upon the nature of the projects, the amount spent on Consulting assignment varies from 2% to 10%; which is a significant sum. Apart from the amount spent, consultants, plays an important role in the successful and timely completion of any project.

The term “consultants” represents a wide variety of private and public entities, including consulting firms, engineering firms, Construction Managers, management firms, Procurement Agents, inspection service providers, auditors, United Nations (UN) agencies and other multinational organizations, investment and merchant banks, universities, research institutions, government agencies, nongovernmental organizations (NGOs), and individuals.

For any organization, which is going for procurement of consultancy services, below 4 considerations should be kept in mind:

  • Quality of Services provided by the consulting firm
  • Services should be hired economically and efficiently
  • Equal opportunity to all eligible consultants
  • transparency in the selection process

For selection/hiring of consultants, various methods can be adopted. But the most commonly used method is: Quality and Cost Based Selection (QCBS). There are other methods, which are used for procurement of consultancy services are:

  • Quality-Based Selection (QBS)
  • Selection under a Fixed Budget (FBS)
  • Least-Cost Selection (LCS)
  • Selection Based on the Consultants’ Qualifications (CQS)
  • Single-Source Selection (SSS)

Though, for Procurement of Consultancy Services the organization can choose any method, but when the project is financed by any funding agency or the development bank like: The World Bank, ADB etc; then the borrower compulsorily follow the guideline issued by the respective bank/financier. The most systematically issued guideline for Procurement of Consultancy Services are developed by the World Bank.

One important aspect, which any organization should keep in mind while hiring the consultancy services is to avoid conflict of interest.

Conflict of Interest:

It is expected from the consultants that they provide professional and impartial services to their client and hold the client’s interests on top priority, without any consideration for
future work. While providing their services, they should make sure that they avoid they avoid conflict of interest with other assignments and their own corporate interests.

Similarly, it is the responsibility of the organization which is going for Procurement of Consultancy Services, is to make sure that the conflict of interest is avoiding in best possible manner. Below 4 conditions describes in details the possible situation which can lead to conflict of interest:


(1) Conflict between consulting activities and procurement of goods, works, or non-consulting services:

A firm which is supplying goods or services should not be hired for providing consultancy services. Conversely a firm selected for providing consulting services should not be allowed to provide goods and services. This provision is not application in a situation where the purchaser is assigning the contract on turnkey basis or on design and build basis.

(2) Conflict among consulting assignments:
Hiring of same consultant should be avoided for two different assignments which can lead to conflicting situation. For example ​consultants assisting a client in the privatization of public assets shall neither purchase, nor advise purchasers of, such assets. Similarly, consultants hired to prepare Terms of Reference (TOR) for an assignment shall not be hired for the assignment in question.

3. Relationship with staff:
Consultants having close relationship with the staff of hiring firm, should not be hired for any assignment.

(4) Single Proposal
A consultant should submit only one proposal. This does not, however, preclude a consulting firm to participate as a sub-consultant, or an individual to participate as a team member, in more than one proposal when circumstances justify and if permitted by the RFP.

 

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