1 transparent procurement procedures & prequalification of consultants by syed adil gilani vice...

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Transparent Procurement Procedures & Prequalification

of Consultants

By

Syed Adil GilaniSyed Adil GilaniVice Chairman & CEOVice Chairman & CEO

Transparency International PakistanTransparency International Pakistan

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Address of Quaid-i-Azam Mohammad Ali Jinnah to the Constituent Assembly of Pakistan on his election as President of the Constituent Assembly of Pakistan (11th August 1947)

“One of the biggest curses from which India is suffering…is bribery and corruption. That really is a poison. We must put that down with an iron hand and I hope that you will take adequate measures as soon as it is possible for this Assembly to do so.” In 2004, Pakistan with Transparency International CPI scores of 1.9, India with 2.9 and Bangladesh with 1.2 out of 10 are ranked in the lowest 50 countries amongst 141 countries.

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What Procurement Means

Procurement is the engineering term for all purchases, supplies, tendering of construction works, turnkey projects and consultancy services.

PPRA definition of Contractor as contained in Public Procurement Rules 2004 clarifies this in more appropriate manner;

“contractor” means a person, consultant, firm, company or an organization who undertakes to supply goods, services or works;

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Public Procurement Rules, 2004 (PPR)PPR have eliminated all discretions in procurement process,

The Vital Rules which have incorporated checks and balances in discretion free Procurement System are;

Standardization of Procurement Process and tender documents, aadvertise all prequalification or tenders over Rs 40 thousand on Procuring Agency website as well as on PPRA website and in at least one English & one Urdu National Daily Newspaper, Min 15 days,

Provide Prequalification & Tender Documents to bidders which shall include all relevant information, including the detailed evaluation criteria, Bid award method, Signing of Integrity Pact, Rights of bidders for complain on evaluation report prior to award, Standard Conditions of Contract, Specifications which shall allow the widest possible competition and shall not favour any single contractor or supplier nor put others at a disadvantage, elimination of culture of Gallop/Short Tender etc

Announcement of the results of bid evaluation in the form of a report giving justification for acceptance or rejection of bids at least ten days prior to the award of procurement contract, and no negotiations with the bidder having submitted the lowest evaluated bid or with any other bidder

Finalizing of the Evaluation Report after examining all complaints,

Award of all Contracts to Consultants, Contractors & Suppliers only to the responsive lowest evaluated bidder.

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LOWEST BIDDER MAY NOT BE “THE RESPONSIVE LOWEST EVALUATED BIDDER”

The general perception that when the tender is opened the Bid which is the lowest at the time of Tender Opening is the Lowest Bid and shall be awarded the Tender.

This perception is not correct.

After Tender Opening preliminary checks are required to determine the responsiveness of all Bids.

A bid is non-responsive and not to be considered on any of the following grounds ;

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1. It is received after the time and date fixed for its receipt, 2. Bidder refuses to Sign the Integrity Pact.3. It is submitted through fax, telex, telegram or e-mail.4. It is not accompanied with valid Bid Security.5. It is unsigned.6. Its validity of tender is less than specified.7. It is submitted for incomplete Scope of Work.8. It indicates completion date later than specified.9. It indicates that prices quoted are not firm during currency of the contract

except those prices where escalation/adjustments are permitted in the Conditions of Contracts.10. It indicates that material to be supplied does not meet the eligibility requirements.11. It indicates that Bid Prices do not include the amount of taxes & duties.12. If Bidder refuses to accept the arithmetic corrections.13. It is materially and substantially different from the Conditions/ Specifications of Bidding Documents.10. It provides Sub-contracting, contrary to conditions specified in the

Bidding 11. Documents. It fails to comply Mile-Stones/critical dates specified

in Bidding Documents.12.The bidder is not valid license holder of the PEC.

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Quote from National Anti Quote from National Anti Corruption Report Corruption Report

“ “Procurement was of huge Procurement was of huge concern to stakeholders, concern to stakeholders, who highlighted the who highlighted the following weaknesses as following weaknesses as being particularly vital in being particularly vital in allowing procurement to allowing procurement to be the breeding ground be the breeding ground for corruption. “for corruption. “

Pakistan has Pakistan has no coherent no coherent single law setting standards single law setting standards and no effective legal and no effective legal protection against collusion protection against collusion and corruption in the award of and corruption in the award of government contracts. Instead, government contracts. Instead, there is an there is an accretion of accretion of complex laws, rules, complex laws, rules, regulations, codes and regulations, codes and manuals manuals which create a web which create a web of lengthy and cumbersome of lengthy and cumbersome practices and customs. (Unlike practices and customs. (Unlike other developing countries, other developing countries, donors’ procurement rules do donors’ procurement rules do not prevail over local rules, not prevail over local rules, although the Ministry of although the Ministry of Finance has tried to enforce Finance has tried to enforce this.) this.)

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Quote from National Anti Corruption Report -Quote from National Anti Corruption Report -

Manipulation of the procurement processManipulation of the procurement process

The rules and regulationsThe rules and regulations are are manipulated to deter manipulated to deter competition, thwart objectivity competition, thwart objectivity and transparency and give and transparency and give officials wide and officials wide and unsupervised latitude in unsupervised latitude in applying or ignoring the tangle applying or ignoring the tangle of rules. The ground for of rules. The ground for corruption is laid at every corruption is laid at every stage of the procurement stage of the procurement process, as seen in the box process, as seen in the box below below

Overall:Overall: head of Procuring head of Procuring Agency certifies that Agency certifies that procurement process is urgent, procurement process is urgent, thereby avoiding requirement thereby avoiding requirement for competitive bidding; for competitive bidding; projects/contracts split to avoid projects/contracts split to avoid competitive bidding competitive bidding requirements above a certain requirements above a certain cost ceiling; officials take cost ceiling; officials take advantage of the year-end advantage of the year-end (May-June) period, when (May-June) period, when departments are trying to departments are trying to spend their budget allocations, spend their budget allocations, to rush through procurements to rush through procurements which then escape proper which then escape proper procedures and monitoring; procedures and monitoring;

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Manipulation of the procurement processManipulation of the procurement process Technical FeasibilityTechnical Feasibility: :

improper feasibility studies improper feasibility studies may be undertaken to may be undertaken to overvalue projects, to the overvalue projects, to the benefit of officials; studies benefit of officials; studies may also be undertaken by may also be undertaken by consultants with links to consultants with links to contractors; contractors;

Tender DocumentsTender Documents: :

project specifications are project specifications are prepared to favour prepared to favour particular contractors; particular contractors;

Registration/pre-qualification and Registration/pre-qualification and Invitations for bids:Invitations for bids: process is process is kept bureaucratic (e.g. numerous kept bureaucratic (e.g. numerous unnecessary conditions to fulfill) and unnecessary conditions to fulfill) and lengthy to deter competition; lengthy to deter competition; advertisements in low circulation advertisements in low circulation publications; published tender publications; published tender notices are followed by a number of notices are followed by a number of short addenda, which if missed by short addenda, which if missed by bidders in their tenders would lead bidders in their tenders would lead to their disqualification; short notice to their disqualification; short notice for submission of bids whilst for submission of bids whilst favoured bidder had prior notice and favoured bidder had prior notice and time to prepare; officials will create time to prepare; officials will create their own fictitious companies to bid their own fictitious companies to bid and approve them through this and approve them through this stage of the process; stage of the process;

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Manipulation of the procurement processManipulation of the procurement process

Preparation of bidsPreparation of bids: : collusion between collusion between competitors will lead to competitors will lead to inflated pricing; inflated pricing; ‘pooling’, whereby one ‘pooling’, whereby one bidder "buys" his bidder "buys" his competitors’ bids, competitors’ bids, changing their values, changing their values, submitting the lowest submitting the lowest bid far in excess of the bid far in excess of the market price; multiple market price; multiple bids by contractor bids by contractor operating under operating under different names; different names;

Bid EvaluationBid Evaluation: financial : financial envelopes are often opened envelopes are often opened before technical; unrealistic before technical; unrealistic and outdated Schedules of and outdated Schedules of Rates are used to defeat good Rates are used to defeat good bids by "outsiders"; delays are bids by "outsiders"; delays are created to generate kickbacks created to generate kickbacks

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Manipulation of the procurement processManipulation of the procurement process Negotiations:Negotiations: no rules exist no rules exist

for the negotiation period, but for the negotiation period, but is often the period when is often the period when collusion and coercion occur. collusion and coercion occur. Prices may be renegotiated Prices may be renegotiated and adjusted after contracts and adjusted after contracts have been let. have been let.

This manipulation of often This manipulation of often

quite acceptable rules only quite acceptable rules only allows corruption because of allows corruption because of the inherent the inherent lack of lack of transparency and public transparency and public participation participation in the in the procurement process. Without procurement process. Without this, any set of procurement this, any set of procurement laws and rules can be laws and rules can be manipulated for self-manipulated for self-enrichment. enrichment.

The public are usually denied the The public are usually denied the opportunity to be informed of, monitor or opportunity to be informed of, monitor or participate in, aspects of the participate in, aspects of the procurement or development affecting procurement or development affecting their community and country. There is their community and country. There is no other mechanism by which the public no other mechanism by which the public may be satisfied about the integrity of may be satisfied about the integrity of the process. the process.

The blame does not lie entirely with the The blame does not lie entirely with the government side of course. There are government side of course. There are builder’s mafias, collusion between builder’s mafias, collusion between bidders and widespread bidders and widespread bribery by bribery by national companies. national companies. However, in terms However, in terms of grand corruption, of grand corruption, multinationals, multinationals, and and therefore their therefore their governments governments must share must share the blame, as many tend to view the blame, as many tend to view corruption as a Pakistani trait, which corruption as a Pakistani trait, which they are content to accept, by the use of they are content to accept, by the use of "agents." "agents."

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Use of Procurement ManualUse of Procurement Manual

This Manual is intended to This Manual is intended to provide necessary provide necessary clarifications and clarifications and assistance in the assistance in the procurement process in procurement process in Pakistan Steel with Pakistan Steel with essential in-built Checks essential in-built Checks and Balances to ensure the and Balances to ensure the desired transparency in all desired transparency in all its procurement.its procurement.

The Manual does not contain any The Manual does not contain any new rules of procurement, but is new rules of procurement, but is compiled from existing World Bank / compiled from existing World Bank / PEC procedures combined with the PEC procedures combined with the recommendations of the NACS recommendations of the NACS 2002 policy and Public Procurement 2002 policy and Public Procurement Rules, 2004 . However it explains in Rules, 2004 . However it explains in more detail how specific aspects of more detail how specific aspects of procurement should be handled to procurement should be handled to be consistent with the Guidelines. It be consistent with the Guidelines. It is a source of “how-to” information is a source of “how-to” information about the tasks and elements that about the tasks and elements that comprise the procurement process. comprise the procurement process.

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Use of Procurement ManualUse of Procurement Manual Chapter I Chapter I

The Procurement Manual describes the review of The Procurement Manual describes the review of policy and institutional aspects of transparent public policy and institutional aspects of transparent public procurement that have a broad applicability, about procurement that have a broad applicability, about which questions are most frequently asked. which questions are most frequently asked. Subsequent chapters deal with specific procurement Subsequent chapters deal with specific procurement topics, taking them generally in the chronological order topics, taking them generally in the chronological order in which they occur, from the initial analysis of a in which they occur, from the initial analysis of a procurement systems and capacity, through the procurement systems and capacity, through the procurement planning stages and into project procurement planning stages and into project implementation and contract administration. implementation and contract administration.

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The Four considerations that guide The Four considerations that guide the rules for Procurement are: the rules for Procurement are:

a) Ensuring economy and efficiency in project procurement.

b) Giving eligible, responsive and technically Qualified bidders a fair opportunity to compete on a level playing field, c) Encouraging the development of Domestic Producers Constructors and Engineering Services Providers

d) Providing for Transparency in the Procurement Process.

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Tendering Process Tendering Process

Organize Project Organize Project Management / Management / Implementation Implementation TeamsTeams

Prepare Prepare Prequalification Prequalification Documents (In case Documents (In case the Pre-qualification the Pre-qualification is being undertaken)is being undertaken)

Revise and Clear Revise and Clear Prequalification Prequalification Document (if Document (if necessary)necessary)

Obtain ApprovalObtain Approval Advertise Advertise

Prequalification Prequalification DocumentsDocuments

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Prepare Prepare Applications Applications (Suppliers)(Suppliers)

Manage Application Manage Application ProcessProcess

Draft Bidding Draft Bidding DocumentsDocuments

Obtain Approval of Obtain Approval of Bid DocumentsBid Documents

Evaluate and Select Evaluate and Select Pre-qualified FirmsPre-qualified Firms

Obtain approvalObtain approval

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Prepare Prepare Applications Applications (Suppliers)(Suppliers)

Distribute List of Distribute List of Pre-qualified Firms Pre-qualified Firms to All Applicants to All Applicants and Issue Bidding and Issue Bidding DocumentsDocuments

Opening of BidsOpening of Bids

Evaluate and Select Evaluate and Select Lowest Responsive Lowest Responsive Evaluated BidEvaluated Bid

Evaluation Report Evaluation Report Declaration to bidders Declaration to bidders for inviting Objections for inviting Objections within 15 days.within 15 days.

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Re Examine Evaluation Report Re Examine Evaluation Report and Objections.and Objections.

Revise and Finalize Evaluation Revise and Finalize Evaluation Report and Submit the Report and Submit the Recommendation to Award the Recommendation to Award the Bid to the Lowest Responsive Bid to the Lowest Responsive Bidder to Authority for Bidder to Authority for Approval, and Award the Bid to Approval, and Award the Bid to the Lowest Responsive Bidderthe Lowest Responsive Bidder

Public access and transparency.- As soon as a contract has been awarded the procuring agency shall make all documents related to the evaluation of the bid and award of contract public:

Provided that where the disclosure of any information related to the award of a contract is of proprietary nature or where the procuring agency is convinced that such disclosure shall be against the public interest, it can withhold only such information from public disclosure subject to the prior approval of the Authority.

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PREQUALIFICATION PREQUALIFICATION of Consultantsof Consultants

Because it is too time Because it is too time consuming to invite consuming to invite and evaluate proposals and evaluate proposals from all consultants from all consultants who want to compete, who want to compete, Selection is based on Selection is based on limited competition limited competition among qualified firms among qualified firms who have the required who have the required experience and are experience and are capable of delivering capable of delivering the required services the required services and desired level of and desired level of quality. quality.

From the consultants’ From the consultants’ point of view, the use of point of view, the use of a shortlist reduces the a shortlist reduces the number of proposals to number of proposals to be prepared, raises be prepared, raises proposal quality, and proposal quality, and increases the chances increases the chances of the consultant of the consultant winning the winning the competition. For the competition. For the PIA, it is an effective PIA, it is an effective way of attracting the way of attracting the best candidates for the best candidates for the assignment.assignment.

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Procedures for hiring Procedures for hiring consultants provide consultants provide that, first, consultant that, first, consultant opportunities are opportunities are advertised. Then, on the advertised. Then, on the basis of those basis of those consultants who consultants who submitted expressions submitted expressions of interest in response of interest in response to the advertisement to the advertisement the Procuring Agency the Procuring Agency prepares a shortlist of prepares a shortlist of consultants who will be consultants who will be invited to present their invited to present their proposals.proposals.

Integrity Pact.Integrity Pact.

High value and high High value and high profile procurements in profile procurements in particular, above Rupees particular, above Rupees Ten Million for Ten Million for procurement of Services, procurement of Services, Goods and Works are to Goods and Works are to be based on Integrity be based on Integrity Pacts. The Standard Pacts. The Standard prescribed “Integrity Pact” prescribed “Integrity Pact” is given in the Manual.is given in the Manual.

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Consultants may associate with each other. Such an Consultants may associate with each other. Such an association may be for the long term (independent of association may be for the long term (independent of any particular assignment) or for a specific any particular assignment) or for a specific assignment. The “association” may take the form of assignment. The “association” may take the form of a joint venture or of a sub-consultancy. In case if the a joint venture or of a sub-consultancy. In case if the an association is in the form of a joint venture, the an association is in the form of a joint venture, the association should appoint one of the firms to association should appoint one of the firms to represent the association. All members of the joint represent the association. All members of the joint venture shall sign the contract and shall be jointly venture shall sign the contract and shall be jointly and severally liable for the entire assignment. Any and severally liable for the entire assignment. Any association in the form of joint venture or sub-association in the form of joint venture or sub-consultancy among short-listed firms shall be consultancy among short-listed firms shall be permissible only with the approval of Procuring permissible only with the approval of Procuring AgencyAgency

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Allocation of Sub Criteria.Allocation of Sub Criteria.

Sub-criteria and their weighting determine the outcome Sub-criteria and their weighting determine the outcome of the evaluation, they should be chosen considering the of the evaluation, they should be chosen considering the aspects that are critical to the success of the aspects that are critical to the success of the assignment. Evaluation criteria and sub-criteria, assignment. Evaluation criteria and sub-criteria, associated points, and the rating associated points, and the rating

system form an arithmetic model to assess the technical system form an arithmetic model to assess the technical merit of the proposals. The more reliable the model, the merit of the proposals. The more reliable the model, the more accurate the evaluation and the greater the more accurate the evaluation and the greater the possibility that Procuring Agency will select the possibility that Procuring Agency will select the proposal of the consultants who are best suited for the proposal of the consultants who are best suited for the assignment. All sub-criteria points shall be included in assignment. All sub-criteria points shall be included in the prequalification documents for information of the the prequalification documents for information of the applicants.applicants.

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Fair CompetitionFair Competition.. Sub Clause 6.3 of the PEC Standard Guideline Sub Clause 6.3 of the PEC Standard Guideline

restricting the number of qualified firms, is deleted, restricting the number of qualified firms, is deleted, to enable all qualified firms to have fair opportunity to enable all qualified firms to have fair opportunity to participate in the competition.to participate in the competition.

This has therefore to be ensured that the This has therefore to be ensured that the Prequalification should not be used to limit Prequalification should not be used to limit competition to a predetermined number of potential competition to a predetermined number of potential bidders. All applicants who have the qualifications to bidders. All applicants who have the qualifications to perform the proposed contract should be pre-perform the proposed contract should be pre-qualified and bidding documents made available to qualified and bidding documents made available to all those who stands pre-qualified. No upper limit all those who stands pre-qualified. No upper limit therefore should be imposed on the number of pre-therefore should be imposed on the number of pre-qualified potential bidders.qualified potential bidders.

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Copy of the PEC Standard Guidelines for Evaluation Copy of the PEC Standard Guidelines for Evaluation of Proposals for Procurement of Engineering of Proposals for Procurement of Engineering Services issued on May, 2002 by Pakistan Services issued on May, 2002 by Pakistan Engineering Council Islamabad and amended by TI-Engineering Council Islamabad and amended by TI-Pakistan in June 2005 is attached as Annexure IV.Pakistan in June 2005 is attached as Annexure IV.

The Use of the Standard Guidelines For Evaluation of The Use of the Standard Guidelines For Evaluation of Proposals for Procurement of Engineering Services Proposals for Procurement of Engineering Services issued on May, 2002 by Pakistan Engineering issued on May, 2002 by Pakistan Engineering Council Islamabad along with the with modifications Council Islamabad along with the with modifications as prescribed by the Public Procurement Rules, as prescribed by the Public Procurement Rules, 2004.2004.

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All consultancy contracts except single source All consultancy contracts except single source selection of engineering experts if falls under the selection of engineering experts if falls under the preview of direct contracting, or negotiated preview of direct contracting, or negotiated tendering under the Public Procurement Rules 2004, tendering under the Public Procurement Rules 2004, should be processed on the two envelope system, should be processed on the two envelope system, evaluated on the basis of technical competence with evaluated on the basis of technical competence with minimum passing marks of 75% .minimum passing marks of 75% .

The Use of the Standard Guidelines For Evaluation of The Use of the Standard Guidelines For Evaluation of

Proposals for Procurement of Engineering Services Proposals for Procurement of Engineering Services issued on May, 2002 by Pakistan Engineering issued on May, 2002 by Pakistan Engineering Council Islamabad along with the with modifications Council Islamabad along with the with modifications as prescribed by the Public Procurement Rules, as prescribed by the Public Procurement Rules, 2004.2004.

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EVALUATION OF EVALUATION OF APPLICATIONSAPPLICATIONS

Evaluation of the ExperienceEvaluation of the Experience

Similarly the general experience should also be considered after certain limitation in numbers because after certain number, more projects may not add much to differentiate between the competitors. Weightage of general experience shall be 30%. A maximum of 10 to 20 projects should be enough number to fetch full hundred percent points. A sample is proposed as follows:-

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Evaluation of the Specific ExperienceEvaluation of the Specific Experience

No. of Projects For Max. 5 Projects For Max. 3 Projects

1st Project 50 Percent 70 Percent2nd Project 75 Percent 90 Percent3rd Project 85 Percent 100 Percent4th Project 95 Percent -5th Project 100 Percent

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Evaluation of the General ExperienceEvaluation of the General Experience Where Maximum Number of Where Maximum Number of Projects is fixed as 20 Project is fixed as 10

Numbers of Proposed Number of Projects Proposed Criteria Projects Criteria

Min: 3 20% Min: 2 25%4-5 40% 3-5 60%6-7 60% 6-7 85%8-10 70% 8-9 95%11-13 80% 10 100%14-16 90%17-20 100%

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Other FactorsOther Factors There are some other factors which do have a There are some other factors which do have a

bearing on the overall proficiency of a firm in bearing on the overall proficiency of a firm in meeting its obligations later during the currency of meeting its obligations later during the currency of the contract. For example, when training of Client’s the contract. For example, when training of Client’s staff is a requirement on the project, the firms staff is a requirement on the project, the firms having previous experience and resources could be having previous experience and resources could be better placed to perform that part of the better placed to perform that part of the assignment. Similarly experienced home office assignment. Similarly experienced home office professional staff as well as availability of professional staff as well as availability of equipment/software and facilities are useful for equipment/software and facilities are useful for timely handling of critical issues and in time timely handling of critical issues and in time availability of equipment/facilities respectively. availability of equipment/facilities respectively. These and such other factors which differentiate These and such other factors which differentiate between otherwise excellent firms should be between otherwise excellent firms should be considered as weighted qualificationsconsidered as weighted qualifications

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Evaluation of Quality of StaffEvaluation of Quality of Staff For the sake of assigning weightage to judge capability of For the sake of assigning weightage to judge capability of

the firm on the basis of expertise of its staff, the following the firm on the basis of expertise of its staff, the following steps may be adopted:-steps may be adopted:-

i) List the type of essential expertise required for the i) List the type of essential expertise required for the project.project.

ii) The number of discipline- types included in the list ii) The number of discipline- types included in the list should be the most important ones and be limited to a should be the most important ones and be limited to a maximum of 5.maximum of 5.

iii) Assess the relative importance of each expertise viz-a-iii) Assess the relative importance of each expertise viz-a-viz the requirements of the project.viz the requirements of the project.

iv) Assign number of credit points to each expertise/the iv) Assign number of credit points to each expertise/the staff member nominated for that expertise. staff member nominated for that expertise.

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2 Nominated experts should be evaluated on the basis of the 2 Nominated experts should be evaluated on the basis of the following three items of qualification as demonstrated in their following three items of qualification as demonstrated in their C.Vs:-C.Vs:-

i) Academic Qualification 20-30 Percenti) Academic Qualification 20-30 Percentii) Professional Experience 60-70 Percentii) Professional Experience 60-70 Percent Specific 80%Specific 80% General 20%General 20%iii) Experience of working environment 10 Percentiii) Experience of working environment 10 Percent Nationally 60%Nationally 60% Internationally 20%Internationally 20% Specific Area within the Country 20%Specific Area within the Country 20% Which is based on:Which is based on:D Specific Province 60%D Specific Province 60%D Regional Language 40%D Regional Language 40%

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1.1. Evaluation of applications should preferably be carried out Evaluation of applications should preferably be carried out individually by the committee members on forms jointly individually by the committee members on forms jointly developed by the committee and using the pre-developed by the committee and using the pre-determined weightage award sub-criteria. Sample Forms determined weightage award sub-criteria. Sample Forms for evaluation of experience and staff are placed at Annex-for evaluation of experience and staff are placed at Annex-C, Forms C-1 and C-2 for the committee’s reference and C, Forms C-1 and C-2 for the committee’s reference and guidance. After finalization of the evaluation, each member guidance. After finalization of the evaluation, each member should compile the grading list containing a Summary of should compile the grading list containing a Summary of points and the Annex-C, Forms C-1 and C-2 a copy of points and the Annex-C, Forms C-1 and C-2 a copy of which be submitted to the Convener of the Committee which be submitted to the Convener of the Committee before a formal meeting is convened by him.before a formal meeting is convened by him.

2.2. Note: Evaluation criteria and sub-criteria on which the Note: Evaluation criteria and sub-criteria on which the evaluation will be conducted shall be included in the evaluation will be conducted shall be included in the prequalification documents.prequalification documents.

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FINALIZATION OF SHORT-LISTFINALIZATION OF SHORT-LIST

1 The selection committee should hold a meeting to 1 The selection committee should hold a meeting to review the evaluation/grading carried out by the review the evaluation/grading carried out by the individual committee members. The basic aim is to individual committee members. The basic aim is to review the capabilities of consultants securing above review the capabilities of consultants securing above qualifying marks in the individual grading on each list. qualifying marks in the individual grading on each list. Since the members have evaluated the firms on the Since the members have evaluated the firms on the basis of an agreed criteria hence it has considerable basis of an agreed criteria hence it has considerable advantage of organized discussion and consideration of advantage of organized discussion and consideration of those firms only which are not unanimous choice. The those firms only which are not unanimous choice. The discussion will yield a more balanced grading of firms and discussion will yield a more balanced grading of firms and finalization of the short-list. Additionally, discussions finalization of the short-list. Additionally, discussions in this meeting shall reduce the likelihood of in this meeting shall reduce the likelihood of unsupported personal bias.unsupported personal bias.

All the applicants scoring qualifying marks shall be All the applicants scoring qualifying marks shall be shortlist.shortlist.

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The PEC Bye Laws under “General Regulations” The PEC Bye Laws under “General Regulations” require that the status of the Partners, Directors, require that the status of the Partners, Directors, Owners for the sake of conflict of interest must Owners for the sake of conflict of interest must also be verified before its inclusion in the short-also be verified before its inclusion in the short-list.list.

For this purpose, the applicants should be For this purpose, the applicants should be required to provide this information in specific required to provide this information in specific terms and any misrepresentation should be terms and any misrepresentation should be made a ground for rejection. Firms may also be made a ground for rejection. Firms may also be forewarned that in case of their selection, any forewarned that in case of their selection, any such links, if detected during the currency of such links, if detected during the currency of their contract, would be reported to the PEC for their contract, would be reported to the PEC for cancellation of their registration/licence leading cancellation of their registration/licence leading to their blacklisting.to their blacklisting.

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Evaluation of Proposals Evaluation of Proposals of Consultantsof Consultants

STANDARD GUIDELINES FORSTANDARD GUIDELINES FOR

EVALUATION OF PROPOSALS FOREVALUATION OF PROPOSALS FOR

PROCUREMENT OF ENGINEERING SERVICESPROCUREMENT OF ENGINEERING SERVICES

May 2002May 2002

PAKISTAN ENGINEERING COUNCIL ISLAMABADPAKISTAN ENGINEERING COUNCIL ISLAMABAD

Transparency International Pakistan has incorporated the Transparency International Pakistan has incorporated the procedures prescribed in the Pakistan Steel Procurement procedures prescribed in the Pakistan Steel Procurement Manual and is in conformity with the Public Procurement Manual and is in conformity with the Public Procurement Rules 2004 and National Anticorruption Strategy NACS Rules 2004 and National Anticorruption Strategy NACS 2002. Authority means PPRA and Procuring Agency 2002. Authority means PPRA and Procuring Agency means Pakistan Steelmeans Pakistan Steel

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Letter of InvitationLetter of Invitation(LOI)(LOI)

1.1. INTRODUCTIONINTRODUCTION2.2. DOCUMENTSDOCUMENTS3.3. PREPARATION OF PROPOSALPREPARATION OF PROPOSAL Technical ProposalTechnical Proposal Financial ProposalFinancial Proposal4. SUBMISSION OF PROPOSALS4. SUBMISSION OF PROPOSALS 5. PROPOSAL EVALUATION5. PROPOSAL EVALUATION 6. NEGOTIATION6. NEGOTIATION7. Award7. Award8. Sample Form of Contract8. Sample Form of Contract

INFORMATION TO CONSULTANT INFORMATION TO CONSULTANT Section ISection I Information for Consultants Information for Consultants Section II Section II Data SheetData Sheet Section III Section III Technical Proposal Standard FormsTechnical Proposal Standard Forms Section IV Section IV Financial Proposal Submission FormsFinancial Proposal Submission Forms Section V Section V Terms of ReferenceTerms of Reference

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Letter of InvitationLetter of Invitation(LOI)(LOI)

DEFINING SCOPE OF SERVICES AND DRAFTING DEFINING SCOPE OF SERVICES AND DRAFTING THE TERMS OF REFERENCE (TOR)THE TERMS OF REFERENCE (TOR)

OUTLINE OF THE TOROUTLINE OF THE TOR AA. BACKGROUND. BACKGROUND

B.B. OBJECTIVESOBJECTIVES

C.C. SCOPE OF SERVICESSCOPE OF SERVICES

D.D. EXPERTISE REQUIREMENTEXPERTISE REQUIREMENT

E.E. TRAINING AND SKILLS TRANSFERTRAINING AND SKILLS TRANSFER

F.F. INSTITUTIONAL ARRANGEMENTSINSTITUTIONAL ARRANGEMENTS

G.G. REPORTING/APPROVAL OF REPORTSREPORTING/APPROVAL OF REPORTS

H.H. CLIENT PROVIDED DATA, SERVICES, PERSONNEL AND CLIENT PROVIDED DATA, SERVICES, PERSONNEL AND FACILITIESFACILITIES

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Evaluation CriteriaEvaluation Criteria

Selection of consulting firms require the (short-Selection of consulting firms require the (short-listed) firms to prepare and submit technical listed) firms to prepare and submit technical proposals on a competitive basis as out-lined in the proposals on a competitive basis as out-lined in the sample Letter of Invitation provided in the Section-sample Letter of Invitation provided in the Section-4 of this document. The technical proposals received 4 of this document. The technical proposals received have to be evaluated in accordance with the criteria have to be evaluated in accordance with the criteria approved by the approving authority and listed in the approved by the approving authority and listed in the LOILOI

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There are three factors which should be There are three factors which should be considered for assigning weightage to the technical considered for assigning weightage to the technical proposal and the price quoted by the firms for overall proposal and the price quoted by the firms for overall ranking, which are:-ranking, which are:-

Technical complexity of the assignment.Technical complexity of the assignment. Impact of the assignment on future implementation Impact of the assignment on future implementation

process.process. Comparability of proposals vis-à-vis the respective Comparability of proposals vis-à-vis the respective

output.output.

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There are three Methods suitable for Services in There are three Methods suitable for Services in PP Rules.PP Rules.

Single Stage – Two Envelope ProcedureSingle Stage – Two Envelope Procedure Two stage bidding ProcedureTwo stage bidding Procedure Two stage - Two envelope bidding ProcedureTwo stage - Two envelope bidding Procedure

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The number of points to be given under each of the evaluation The number of points to be given under each of the evaluation criteria are:criteria are: Points Points

i)i) Experience of the Consulting firm related to the assignment Experience of the Consulting firm related to the assignment [20][20]

ii)ii) Adequacy of the proposed work plan and methodology in responding toAdequacy of the proposed work plan and methodology in responding to

Terms of Reference Terms of Reference [40] [40]

iii)iii) Qualifications and competence of the key staff for the Assignment Qualifications and competence of the key staff for the Assignment [35] [35]

iv)iv) Suitability of the transfer of knowledge (training) Suitability of the transfer of knowledge (training) [05][05]

Total Points:Total Points:[100][100]

4343


A Master Plan Consultancy Project is taken as ExampleA Master Plan Consultancy Project is taken as Example

The number of points to be given under each of the evaluation The number of points to be given under each of the evaluation criteria are:criteria are: Points Points

i)i) Experience of the Consulting firm related to the assignment Experience of the Consulting firm related to the assignment [25][25]

ii)ii) Adequacy of the proposed work plan and methodology in responding toAdequacy of the proposed work plan and methodology in responding to

Terms of Reference Terms of Reference [40] [40]

iii)iii) Qualifications and competence of the key staff for the Assignment Qualifications and competence of the key staff for the Assignment [35] [35]

Total Points:Total Points:[100][100]

The minimum aggregate technical score required to pass is The minimum aggregate technical score required to pass is 75 75 pointspoints..

4444


1.1. Project Related Experience 25 PointsProject Related Experience 25 Points Foreign FirmsForeign Firms a) Master Planning and Development a) Master Planning and Development (Maximum 08 points) (Maximum 08 points)

(Minimum 05 points)(Minimum 05 points) Satisfactory completion of two master plans of sizeable projects Satisfactory completion of two master plans of sizeable projects

with industrial and port related activities will score 5 points. Each with industrial and port related activities will score 5 points. Each additional project will score one additional point.additional project will score one additional point.

b) Financial analysis and evaluation of Public/Private Sector b) Financial analysis and evaluation of Public/Private Sector partnership projects .partnership projects . (Maximum 11 points) (Minimum 6 points)(Maximum 11 points) (Minimum 6 points)

Satisfactory completion of two major private sector investment Satisfactory completion of two major private sector investment projects with financial analyses, evaluation, and award(negotiations projects with financial analyses, evaluation, and award(negotiations and contract documentation) project will score 5 points. Each and contract documentation) project will score 5 points. Each additional project will score one additional point.additional project will score one additional point.

(A Sizable Project is of minimum 6 months duration and minimum 30 (A Sizable Project is of minimum 6 months duration and minimum 30 man-months effort)man-months effort)

4545


1.1. Project Related Experience 20 PointsProject Related Experience 20 Points Local FirmsLocal Firms a) Master Planning and Development a) Master Planning and Development (Maximum 08 points) (Maximum 08 points)

(Minimum 05 points)(Minimum 05 points) Satisfactory completion of two master plans of sizeable projects Satisfactory completion of two master plans of sizeable projects

with industrial and port related activities will score 5 points. Each with industrial and port related activities will score 5 points. Each additional project will score one additional point.additional project will score one additional point.

b) Financial analysis and evaluation of Public/Private Sector b) Financial analysis and evaluation of Public/Private Sector

partnership projects .partnership projects . (Maximum 06 points) (Minimum 04 points)(Maximum 06 points) (Minimum 04 points)

Satisfactory completion of two major private sector investment Satisfactory completion of two major private sector investment projects with financial analyses, evaluation, and award(negotiations projects with financial analyses, evaluation, and award(negotiations and contract documentation) project will score 3 points. Each and contract documentation) project will score 3 points. Each additional project will score one additional point.additional project will score one additional point.

(A Sizable Project is of minimum 6 months duration and minimum 30 (A Sizable Project is of minimum 6 months duration and minimum 30 man-months effort)man-months effort)

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2.2. Adequacy of Proposed Work PlanAdequacy of Proposed Work Plan

i.i. Addressing the TORAddressing the TOR Max. 15 marks (Min. 6 marks) Max. 15 marks (Min. 6 marks)

ii.ii. Proposed Methodology, Tasks Details Max. 20 marks (Min. 9 marks)Proposed Methodology, Tasks Details Max. 20 marks (Min. 9 marks)

and Workable Programme of Assignmentand Workable Programme of Assignment

iii.iii. Innovation in approachInnovation in approach Max. 5 marks (Min. 3 marks) Max. 5 marks (Min. 3 marks)

4747


Note on Awarding PointsNote on Awarding Points.. In case a proposal appears to be unacceptable under this In case a proposal appears to be unacceptable under this

criterion, i.e., it doesn’t deserve to be rated “poor”, it may be criterion, i.e., it doesn’t deserve to be rated “poor”, it may be considered non responsive.considered non responsive.

Grade.Grade. Percentage MarksPercentage Marks

Poor Poor 50 %50 % Satisfactory Satisfactory 70%70% Good Good 90%90% Very GoodVery Good 100%100%

4848

Evaluation CriteriaEvaluation Criteria 33 Key Personnel Key Personnel Max 35 PointsMax 35 PointsNote: The Experts Required for the Project and Man Months indicated in Note: The Experts Required for the Project and Man Months indicated in

RFP are Mandatory and can not be Reduced. Applicants are allowed RFP are Mandatory and can not be Reduced. Applicants are allowed to increase as per their Proposed Bidto increase as per their Proposed Bid

Foreign Firms Foreign Firms (Max. 20, Min. 12) (Max. 20, Min. 12) ( master/charter or equivalent and minimum 10 years/two sizeable projects experience in ( master/charter or equivalent and minimum 10 years/two sizeable projects experience in

their respective fields), nominated for the projecttheir respective fields), nominated for the project

1 Team Leader 10 Points1 Team Leader 10 PointsExperience of 2 Projects as Team Leader 5 PointsExperience of 2 Projects as Team Leader 5 Points

Experience on similar nature Project 1 point /project Max 5 PointsExperience on similar nature Project 1 point /project Max 5 Points

Each Expert will score 2 points , Each Expert will score 2 points , 2 economist2 economist 3 legal expert3 legal expert 4 financial expert4 financial expert 5 maritime5 maritime

Above personnel additional experience of each project will score one additional point.Above personnel additional experience of each project will score one additional point.

4949

Evaluation CriteriaEvaluation Criteria 33 Key PersonnelKey Personnel

Local Firm Local Firm (Max. 15, Min. 9)(Max. 15, Min. 9) ( master/charter or equivalent and minimum 10 years/two sizeable projects experience in ( master/charter or equivalent and minimum 10 years/two sizeable projects experience in

their respective fields), nominated for the projecttheir respective fields), nominated for the project

1 Resident Engineer /Dy Team Leader Max 4 Points1 Resident Engineer /Dy Team Leader Max 4 PointsExperience of 2 Projects as Resident Engineer/Dy Team Leader 3 PointsExperience of 2 Projects as Resident Engineer/Dy Team Leader 3 Points

Experience on similar nature Project 1 point /project Max 2 PointsExperience on similar nature Project 1 point /project Max 2 Points

Each Expert will score 2 points each , Max 11 PointsEach Expert will score 2 points each , Max 11 Points 2 Town Planner2 Town Planner 3 Geologist3 Geologist 4 Senior Surveyor4 Senior Surveyor 5 Civil Engineer Roads5 Civil Engineer Roads 6 Structure Engineer6 Structure Engineer

Above personnel additional experience of each project will score one additional point.Above personnel additional experience of each project will score one additional point.

5050


Review by Committee and SelectionReview by Committee and Selection

After the members of the evaluation committee After the members of the evaluation committee have completed their individual evaluations in have completed their individual evaluations in accordance with the evaluation sub-criteria accordance with the evaluation sub-criteria announced in the documents, the convener announced in the documents, the convener should convene the committee meeting. The should convene the committee meeting. The committee would then jointly consider the committee would then jointly consider the individual evaluations and the scores, discuss individual evaluations and the scores, discuss the merits of each view point and choose the the merits of each view point and choose the best proposal after assigning a technical scores best proposal after assigning a technical scores to each of the proposals. It is extremely to each of the proposals. It is extremely important that all proposals are accorded its important that all proposals are accorded its realistic scores.realistic scores.

5151

Review by Committee and SelectionReview by Committee and Selection

The committee may proceed with the review in an organized manner The committee may proceed with the review in an organized manner by adoption of a formal agenda which could include the by adoption of a formal agenda which could include the following items:-following items:-

i) Finalization of technical scores of proposals on the basis of i) Finalization of technical scores of proposals on the basis of arithmetic averages of the scores awarded by each member.arithmetic averages of the scores awarded by each member.

ii) Finalization of comments on the proposals which crossed ii) Finalization of comments on the proposals which crossed the minimum passing score of 75% threshold, as these the minimum passing score of 75% threshold, as these proposals shall only compete on financial proposal.proposals shall only compete on financial proposal.

iii) Elements from all proposals which are considered to be useful iii) Elements from all proposals which are considered to be useful for rendering improvement in the methodology to carry out the for rendering improvement in the methodology to carry out the assignment.assignment.

iv) Finalization of the “Evaluation Report” for submission to iv) Finalization of the “Evaluation Report” for submission to appropriate forum for its approval, and public declaration for 10 appropriate forum for its approval, and public declaration for 10 days, before financial proposals are opened.days, before financial proposals are opened.

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MAINTENANCE OF RECORD AND FREEDOM MAINTENANCE OF RECORD AND FREEDOM OF INFORMATIONOF INFORMATION

46. 46. Record of procurement proceedings.- Record of procurement proceedings.- (1) (1) All procuring agencies shall maintain a record of their All procuring agencies shall maintain a record of their

respective procurement proceedings along with all associated respective procurement proceedings along with all associated documentation for a minimum period of five years.documentation for a minimum period of five years.

(2)(2) Such maintenance of record shall be subject to the Such maintenance of record shall be subject to the regulations framed in this regard from time to time.regulations framed in this regard from time to time.

47.47. Public access and transparency.- As soon as a contract Public access and transparency.- As soon as a contract has been awarded the procuring agency shall make all has been awarded the procuring agency shall make all documents related to the evaluation of the bid and award of documents related to the evaluation of the bid and award of contract public:contract public:

Provided that where the disclosure of any information Provided that where the disclosure of any information related to the award of a contract is of proprietary nature or related to the award of a contract is of proprietary nature or where the procuring agency is convinced that such disclosure where the procuring agency is convinced that such disclosure shall be against the public interest, it can withhold only such shall be against the public interest, it can withhold only such information from public disclosure subject to the prior approval information from public disclosure subject to the prior approval of the Authority.of the Authority.

1 transparent procurement procedures & prequalification of consultants by syed adil gilani vice...

Documents

lowest bidder

award of procurement

public procurement rules

gallopshort tender

results of bid evaluation

bid award method

time of tender opening

evaluation report