staff instructions borrower ......consulting services provided under adb’s loan projects, grant...

STAFF INSTRUCTIONS

BORROWER ADMINISTERED CONSULTING SERVICES

GLOSSARY ADB Administered Consulting Services

Consulting services financed by ADB’s administrative budget, capital budget, TA grant or other grant projects funded from special funds or trust funds, for which ADB selects and engages the consultants. ADB may also hire consultants funded by advance payment from prospective clients in its non-sovereign operations or following Public Private Partnership transaction advisory services mandate and similar arrangements.

ADB financing Includes financing by loans, grants, technical assistance (TA) grants, or funds from external sources which ADB administers, ADB’s administrative budget, and the special capital budget.

Biodata technical proposal (BTP)

Basic type of technical proposal. Includes workplan and personnel schedule, CVs of proposed experts. It is the default type of proposal for Direct Contracting and CQS selections.

Borrower

Includes agencies or entities that act for the Borrower to carry out the project. It also includes recipients of grants for projects, under which the EA administers consulting services.

Borrower-Administered Consulting Services

Consulting services provided under ADB’s loan projects, grant projects or Delegated Technical Assistance projects, for which the Borrower selects and engages the consultants (used interchangeably with Consulting services that executing agencies (EAs) administer).

Conflict of Interest Any situation in which a party has interests that could improperly influence that party’s performance of official duties or responsibilities, contractual obligations, or compliance with applicable laws and regulations.

Consultant An individual or Consulting Firm that provides consulting services. Consulting Firm Any private or public entity with the capacity to provide consulting services.

Such entities include international and national consulting firms, engineering firms, construction firms, management firms, procurement agents, inspection agents, auditors, United Nations (UN) agencies and other multilateral organizations, universities, research institutions, government agencies, civil society organizations (CSO) and nongovernmental organizations (NGOs), when such entities provide consulting services.

Consultant Selection Committee (CSC)

Convened to decide on consulting services matters, including evaluation of EOIs for high-value individual consulting selection1 and, technical evaluation of proposals received from consulting firms in response to the RFP.

Consultant Management System (CMS)

Electronic procurement system used by ADB and its Borrowers to recruit consultants. For Borrowers the functionality is currently limited to posting CSRNs.

Consultant Recruitment Activity Monitoring (CRAM)

A system used to monitor the activities and time taken for consultant recruitment.

Consulting Services Recruitment Notice (CSRN)

Automated procurement notice published on ADB’s Consultant Management System. See also REOI.

Consulting services that executing agencies (EAs) administer

Consulting services provided under ADB’s loan projects, grant projects or delegated TA projects, for which the EA selects and engages the consultants. (used interchangeably with Borrower-Administered Consulting Services).

1 Defined as exceeding $200,000

Delegated Technical Assistance

Technical Assistance (TA) projects in which ADB delegates responsibility to the EA for implementation, including responsibility to select and manage consultants, and to sign and administer contracts (including payments)

Executing Agency (EA)

Identified in a financing agreement or TA agreement, and responsible for the carrying out of a loan, grant or a TA grant-funded project. The term EA may be extended to include an implementing agency that the EA designates to implement the project and recruit consultants.

Expression of Interest (EOI)

Submitted by Consultants in response to the publication of Request for EOI (REOI) through Consulting Services Recruitment Notice (CSRN).

Full technical proposal (FTP)

Technical proposal used for complex, high value assignments. Includes: Description of approach, methodology, workplan and personnel schedule, team composition, task assignments and CV summary, consultant’s organization and experience, comments and suggestions on the TOR, comments on the counterpart support and facilities, CVs of proposed key experts.

International Consultant

Consultant with international experience beyond that of the country in which the assignment is to be performed.

National Consultant Consultant performing assignment in his/ her own country. The expert’s role does not require international experience.

OAI Office of Anticorruption and Integrity. PASS Accreditation qualification for Project Units in the review of EA consultant

selections under ADB’s Procurement Accreditation Skills Scheme (PASS). Project Unit The ADB project division, regional office or resident mission that supervises a

project. REOI Request for Expression of Interest. Used interchangeably with CSRN. Request for Proposal (RFP)

The RFP is issued to shortlisted consulting entities. The RFP shall include Terms of Reference, Evaluation criteria, Eligibility Criteria, Instructions to Consultants, Data Sheet, Standard forms for Submitting Technical and Financial Proposals, standard form of contract. ADB issues RFPs electronically using Consultant Management System.

Simplified Technical Proposal (STP)

Technical proposal used for majority of consulting assignments requiring services of the consulting team. The STP shall include: Description of approach, methodology, workplan and personnel schedule, team composition, task assignments and CV summary, CVs of proposed key experts.

Terms of Reference (TOR)

Describes the purpose, objectives, scope of work, detailed tasks or specified outputs; and reporting requirements which the consultant is expected to meet to complete the assignment for the benefit of the EA.

User Unit The EA’s project implementation unit for using consulting services.

TABLE OF CONTENTS

I. ADB’S PROCUREMENT FRAMEWORK ....................................................................... 1

A. Introduction ............................................................................................................... 1 B. Scope ....................................................................................................................... 1 C. Structure ................................................................................................................... 2

II. DEFINITIONS, PRINCIPLES AND RESPONSIBILITIES ............................................... 2

A. Principles .................................................................................................................. 2 B. Anticorruption Policy ................................................................................................. 3 C. Conflict of Interest ..................................................................................................... 5 D. Avoiding Unfair Competitive Advantage .................................................................... 5 E. Responsibilities ......................................................................................................... 6 F. Types of Consultants ................................................................................................ 7 G. Using National Consultants from Developing Member Countries (DMCs) ................. 8 H. Eligibility ................................................................................................................... 8

III. PREPARING FOR CONSULTANT RECRUITMENT .....................................................12

A. Procurement Plan ....................................................................................................12 B. Terms of Reference (TOR) ......................................................................................12 C. Cost Estimate ..........................................................................................................13 D. Selection Method .....................................................................................................14 E. Change in Selection Method ....................................................................................14 F. Types of Technical Proposals ..................................................................................14 G. Changing the Type of Technical Proposal ...............................................................16 H. Determining International or National Expertise .......................................................16 I. Recruitment Mode (International or National Competitive Selection) .......................16 J. Consulting Services Provided by United Nations and Other International

Organizations ..........................................................................................................16

IV. GENERAL PROCEDURE FOR SELECTING AND ENGAGING CONSULTANTS .......17

A. General Procedures .................................................................................................17 B. Selection Methods ...................................................................................................24 C. Contract Types ........................................................................................................31 D. Confidentiality and Absence of Undue Influence in the Selection Process ...............32

V. CONSULTANT RECRUITMENT BY THE EXECUTING AGENCY ...............................33

A. Responsibilities of the EA, ADB’s Project Unit, and ADB’s Procurement Staff .........33 B. Advance Contracting ...............................................................................................34 C. Advertising (Consulting Services Recruitment Notice) .............................................34 D. Consultant’s Expression of Interest ..........................................................................35 E. Recruiting Consulting Firms – Prior and Post Review (Sampling) ............................35 F. Prior Review ............................................................................................................35 G. Post Review (Sampling)...........................................................................................40 H. Recruiting Individual Consultants – Prior and Post Review (Sampling) ....................42 I. Requesting ADB Assistance in Selecting the Consultant .........................................44 J. Monitoring the Consultant Recruitment Process ......................................................44 K. Consulting Contract Management ............................................................................46 L. Complaints ..............................................................................................................47

M. Debriefing ................................................................................................................48

APPENDIXES ...........................................................................................................................49

Appendix 1: List of Guidance Notes ...............................................................................49 Appendix 2: Simplified Flow Chart of the Key Steps for Recruiting Consulting Firms by

the EA with an ADB Prior Review Arrangement .......................................................50 Appendix 3: Simplified Flow Chart of the Key Steps for Recruiting Individual Consultants

by the EA with an ADB Prior Review Arrangement ..................................................52

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I. ADB’S PROCUREMENT FRAMEWORK A. Introduction

1. The new ADB procurement framework consists of the ADB Procurement Policy (the Policy), the Procurement Regulations for ADB Borrowers (the Regulations), the Staff Instructions (SI), and associated guidance notes (GN)1.

(i) ADB Procurement Policy: Approved by ADB Board of Directors, the Policy

specifies ADB’s six core procurement principles and various considerations relevant to their implementation in ADB financed operations.

(ii) The Regulations: Approved by ADB Management, the Regulations provide

choices for Borrowers to allow them to determine the most appropriate procurement method, specify the rules that must be followed and set out ADB’s procurement due diligence function.

(iii) The Staff Instructions: Approved by the Procurement, Portfolio and Financial

Management Department (PPFD) these Staff Instructions define the roles and responsibilities of ADB staff in implementing the Policy and Regulations, including the procurement decision authorities and service standards. They also set out the procurement procedures and practices to be applied by ADB Borrowers.

(iv) The Guidance Notes: Approved by PPFD provide more details to ADB Borrowers to give best practice advice and assist them in implementing various procurement methods and modalities.

B. Scope

2. These SI establish procedures for the Borrower-Administered selection, contracting, and contract management of consulting firms and individual consultants financed in whole or in part by way of an investment loan from ADB, ADB-financed grant, or funds administered by ADB. The SI may be referred to by staff to understand the procurement–related work flow within ADB’s project cycle and related roles and responsibilities of ADB staff to ensure that procurement is carried out in accordance with ADB policies and procedures. These SI do not apply to procurement activities under alternative procurement arrangements (APA) 2 . The Project Administration Instructions continue to apply to procurement and recruitment of consulting services under the ADB Procurement Guidelines (2015, as amended from time to time) and ADB Consulting Guidelines (2013, as amended from time to time). 3. These SI are effective for projects or Delegated Technical Assistance with concept papers approved after 1 July 2017, the date on which the Policy and Regulations came into force. ADB and the Borrower may agree to use these SI for projects or Delegated Technical Assistance with concept papers approved before 1 July 2017, otherwise the Guidelines on Use of Consultants by ADB and Its Borrowers (2013) and PAI 2.01 to 2.07 shall be applicable. 1 A list of guidance notes is in Appendix 1. 2 If the use of APA has been permitted under a particular project, a trust-and-verify procurement oversight approach

will be applied, whereby ADB may rely on oversight mechanisms of the borrower or those agreed in the applicable financing or other agreements. However, regardless of procurement arrangement, ADB’s Anticorruption Policy (1998, as amended to date) and ADB’s Integrity Principles and Guidelines (2015, as amended from time to time), will apply in all cases.

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4. These SI do not apply to:

(i) the procurement of goods, works and non-consulting services3, (ii) the procurement of ADB Administered Consulting Services4, (iii) results-based or policy-based loans5.

C. Structure

5. The SI consists of:

(i) Definitions, Principles and Responsibilities (ii) Preparing for Consultant Recruitment (iii) General Procedure for Selecting and Engaging Consultants (iv) Consulting Recruitment by the Executing Agency

II. DEFINITIONS, PRINCIPLES AND RESPONSIBILITIES

A. Principles 6. ADB’s Procurement Policy sets out six core principles, which are:

i. Economy 7. The principle of economy means considering factors such as price, quality, and any nonprice attributes, as appropriate, without adversely affecting the viability of the project.

ii. Efficiency 8. The principle of efficiency ensures that procurement processes are proportional to the value and risks of the required outcome and underlying project activities, considering implementation capacity, time constraints, and cost-effectiveness.

iii. Fairness 9. The principle of fairness means:

(i) equal opportunity for and treatment of eligible bidders; (ii) equitable distribution of rights and obligations between borrowers and bidders; and (iii) credible mechanisms for addressing procurement-related complaints and

providing recourse. 10. ADB encourages open competition as the preferred procurement approach, whenever possible, to maximize fairness of the opportunity to bid.

3 Refer to the Staff Instructions – Procurement of Goods, Works and Nonconsulting Services. 4 Refer to Staff Instruction on ADB Administered Consulting Services. 5 For procurement under results-based loans refer to [reference to follow] and for procurement under policy-based

loans refer to OM Section D4/BP.

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iv. Transparency 11. The principle of transparency means ensuring, through appropriate documentation and review of activities in the procurement process, that:

(i) relevant procurement information is made publicly available to interested parties, in a consistent and timely manner, through readily accessible and widely available sources at no (or reasonable) cost;

(ii) appropriate reporting of procurement activity; and (iii) use of confidentiality provisions in contracts only where justified.

v. Quality

12. This principle requires that the procurement arrangements are structured to procure inputs and deliver outputs of appropriate standard in a timely and effective manner to achieve the project outcomes and development objectives, taking into account the context, risk, value, and complexity of procurement.

vi. Value for Money 13. This principle enables the borrower to obtain optimal benefits through effective, efficient, and economic use of resources by applying, as appropriate, the Core Procurement Principles and related considerations, which may include life-cycle costs and socioeconomic and environmental development objectives of the borrower. Price alone may not sufficiently represent value for money. 14. Such principles are best served through a competitive process among qualified shortlisted consultants, usually with a selection that is based on the quality and cost of services. 15. ADB permits its Borrowers to recruit consultants promptly and effectively by:

(i) providing a range of fit-for-purpose recruitment options; (ii) permitting timely engagement (particularly in emergency situations); (iii) harmonizing procedures with those of the other major multilateral development

banks; and (iv) monitoring the recruitment process only where necessary, and permitting post-

review (sampling), where appropriate.

B. Anticorruption Policy 16. ADB’s Anticorruption Policy (1998, as amended to date) and ADB’s Integrity Principles and Guidelines (2015, as amended from time to time) require that Borrowers, as well as consultants under ADB-financed contracts, observe the highest standard of ethics during the selection process and in execution of such contracts. In pursuance of this policy, in the context of these SI, ADB defines, for the purposes of this provision, the terms set forth below as follows:

(i) “corrupt practice” means the offering, giving, receiving, or soliciting, directly or indirectly, anything of value to influence improperly the actions of another party;

(ii) “fraudulent practice” means any act or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an obligation;

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(iii) “coercive practice” means impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to influence improperly the actions of a party;

(iv) “collusive practice” means an arrangement between two or more parties designed to achieve an improper purpose, including influencing improperly the actions of another party;

(v) “obstructive practice” means (a) deliberately destroying, falsifying, altering or concealing of evidence material to an ADB investigation; (b) making false statements to investigators in order to materially impede an ADB investigation; (c) failing to comply with requests to provide information, documents or records in connection with an Office of Anticorruption and Integrity (OAI) investigation; (d) threatening, harassing, or intimidating any party to prevent it from disclosing its knowledge of matters relevant to the investigation or from pursuing the investigation; or (e) materially impeding ADB’s contractual rights of audit or access to information;

(vi) “integrity violation” is any act which violates ADB’s Anticorruption Policy (1998, as amended to date), including (i) to (v) above and the following: abuse, conflict of interest, violation of ADB sanctions, retaliation against whistleblowers or witnesses, and other violations of ADB’s Anticorruption Policy, including failure to adhere to the highest ethical standard.

17. The Borrower and/or ADB staff, as the case may be, must refer allegations of corrupt, fraudulent, coercive, collusive or obstructive practices, or integrity violations, to the Office of Anticorruption and Integrity (OAI) on a confidential basis. 18. ADB will

(i) require the Borrower to reject a proposal for an award if ADB determines that the consultant recommended for the award has directly, or through an agent, committed an integrity violation in competing for the contract in question;

(ii) cancel the portion of the financing allocated to a contract if ADB determines at any

time that representatives of the Borrower committed an integrity violation during the consultant selection process or the execution of that contract, without the Borrower having taken timely and appropriate action satisfactory to ADB to remedy the situation;

(iii) sanction a firm or individual, at any time, in accordance with ADB’s Anticorruption

Policy (1998, as amended to date) and ADB’s Integrity Principles and Guidelines (2015, as amended from time to time), including declaring ineligible, either indefinitely or for a stated period of time, such consulting firm, individual, or successor from participation in ADB-financed, ADB-administered or ADB-supported activities or to benefit from an ADB-financed, ADB-administered or ADB-supported contract, financially or otherwise, if ADB at any time determines that the firm or individual has, directly or through an agent, committed in an integrity violation; and

(iv) have the right to require that, in consultant selection documentation and in

contracts financed by ADB, a provision be included requiring consultants to permit ADB or its representative to inspect their accounts and records and other

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documents relating to consultant selection and to the performance of the contract and to have them audited by auditors appointed by ADB.

C. Conflict of Interest

19. The Policy sets out ADB’s policy on conflict of interest in ADB-financed procurement. ADB considers a conflict of interest to be a situation in which a party has interests that could improperly influence that party’s performance of official duties or responsibilities, contractual obligations, or compliance with applicable laws and regulation. A conflict of interest may not, in all cases, in and of itself, constitute a violation of ADB’s Anticorruption Policy (1998, as amended to date) and ADB’s Integrity Principles and Guidelines (2015, as amended from time to time), if appropriately addressed or mitigated. 20. Consulting firms and individual consultants are required to disclose all conflicts of interest during the bid submission. The ADB must take appropriate actions to manage such conflicts of interest and may reject a proposal for award if it determines that a conflict of interest has brought into question the integrity of any procurement process. It will always be considered to be a conflict of interest if a consultant has prepared TOR for a downstream assignment for which it is considered. 21. Former ADB staff who were previously primarily involved in processing and/or supervising a TA, loan and/or grant project must not be hired to implement assignments under those projects.

22. It is a requirement that all those who are involved in the procurement process for an ADB-financed contract, including consulting firms and individual consultants (i) do not have a conflict of interest with regard to the procurement concerned and are required to remain professional, objective, and impartial; and (ii) are required to always hold the interest of the Borrowers paramount, without any consideration of future work, and to avoid conflicts with other assignments and their own corporate and personal interests. 23. Cases of potential conflict of interest must be identified as soon as possible, preferably at pre-shortlisting stage, and the potential for the conflict of interest should be resolved or adequately mitigated. If it cannot be established that there is no conflict of interest or cannot be adequately mitigated, the consultant shall be excluded from consideration for the assignment. In case of doubt, Project Units shall make a full disclosure of the nature, circumstances and material facts to OAI as soon as possible as it becomes aware of the situation. 24. If EA staff are members of a consultant selection committee (CSC), then they must disclose any potential conflict to the other members of the committee and to ADB. If ADB decides that a perceived, actual or potential conflict of interest exists, then the staff concerned must be excluded from the entire consultant selection process. If the EA staff is a member of a CSC, then the CSC must also decide by a majority vote on whether or not a conflict of interest actually exists, and record such determination in the minutes of the meeting.

D. Avoiding Unfair Competitive Advantage 25. The Regulations, para 1.22, sets out ADB’s policy on unfair competitive advantage. Fairness and transparency in the procurement process require that consulting firms or individual consultants competing for a specific assignment do not derive an unfair competitive advantage from having provided consulting services related to the assignment in question. To that end, the EA shall, at the time of issuance of the RFP, make available to all the shortlisted consultants the

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information that would in that respect give a consulting firm or an individual consultant a competitive advantage. A consultant that is determined by the EA to have an unfair competitive advantage may be excluded from competing for the provision of the related services. To avoid such exclusion, if either the EA or the consultant itself determines that a potential or actual unfair competitive advantage exists, the consultant concerned must, or may be required to, make all information, data, and reports available to the EA for disclosure to other shortlisted consultants.

E. Responsibilities

i. EA Responsibilities for Loan or Grant-Financed Projects 26. The EA authorizes, selects, engages, and supervises consultants in accordance with these SI for a loan or grant-financed consulting assignments. The EA is also primarily responsible for handling complaints and providing feedback to unsuccessful shortlisted consultants. The EA is ultimately responsible for ensuring that the procurement is carried out in accordance with ADB’s core procurement principles and rules. 27. The RRP indicates that the EA will administer the consulting services. However, under special circumstances, such as when an EA lacks capacity, the EA may request assistance from ADB in selecting the consultants, provided that the EA negotiates and signs the consulting service contract and provided further that the relevant directors of PPFD and the Project Unit agree to provide such assistance.

ii. EA and ADB Responsibilities for Recruiting Consultants for Delegated TAs 28. To increase the EA's ownership of TA projects and to improve sustainability of project benefits, ADB may, through a Memorandum of Understanding with the recipient government, delegate responsibility to the EA for the recruitment and supervision of TA consultants. The recommendation to delegate follows an assessment of the EA’s capacity to recruit and manage consultants, and is indicated in the TA report or TA concept paper, whenever a full TA report is not required, for approval by the department head, the vice-president, the President or the Board, as appropriate. The project officer assesses the EA capacity during a fact-finding mission. PPFD may assist the project officer in undertaking the EA procurement capacity assessment. When delegation occurs the EA selects and signs the contract with the consultant, and assumes primary responsibility for supervising the consultant. Part V of this SI sets out the procedures for recruiting consultants under Delegated Technical Assistance.

iii. Responsibilities of Procurement, Portfolio and Financial Management Department (PPFD)

29. PPFD is responsible for ensuring that ADB staff comply with ADB's requirements by monitoring the recruitment process for consulting services that are administered by the EA. It reviews documents and advises staff when required. PPFD responds to consultants' and EAs’ queries regarding the selection process. PPFD also may review the Borrower’s activity through key stages of the evaluation process and, when prior review is applicable, approve up to three submissions detailed in Part V of this SI. 30. PPFD, supported by the Office of Information Systems and Technology (OIST), manages the CMS. PPFD answers internal and external inquiries on CMS business processes.

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iv. Responsibilities of Project Units 31. With PPFD support, Project Units ensure that EA staff comply with ADB policies and procedures, including this SI, for consulting services that EAs administer.

v. Responsibilities of Controller’s Department (CTL) 32. CTL verifies and processes ADB payments to consultants under ADB contracts.

vi. Responsibilities of Office of Information Systems and Technology (OIST) 33. OIST provides information technology (IT) support on the CMS and helps internal and external users resolve IT issues related to CMS and other activities involving recruiting IT consultants.

vii. Responsibilities of Office of the General Counsel (OGC) 34. OGC advises on legal issues arising from recruiting consultants, administering contracts and related activities.

viii. Responsibilities of Office of Cofinancing Operations (OCO)

35. OCO advises staff on issues related to cofinancing that arise during the implementation of cofinanced projects, and coordinates with staff and cofinanciers.

ix. Responsibilities of Consultant Selection Committee (CSC) 36. The CSC normally comprises 3-7 members appointed by the EA. A CSC is convened to decide on consulting services matters, when required by Part V of this SI. A CSC is normally convened to conduct technical evaluation of consulting entities proposals. A CSC may also be convened for technical evaluation of individual consultant selection for large contracts and for financial evaluations, where appropriate.

F. Types of Consultants 37. Consulting firms are usually used for complex assignments that require multiple-expertise-teamwork. Consulting firms may also be preferred for engagements that span over a long period and when the risk of loss of continuity is high. 38. Individual consultants are more suitable for assignments that can be carried out independently. Individual consultants may be engaged directly or through a firm. In some cases, individual consultants are more appropriate because of needed flexibility in urgency of mobilization, geographic dispersion, and/or timing of deployment. 39. Consultation with PPFD is required before several individual consultants may be contracted separately under one project, particularly whenever the assignments are interdependent on inputs by these consultants. In such a case, a consulting firm should normally be engaged through a competitive selection process to provide these individuals as a team.

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G. Using National Consultants from Developing Member Countries (DMCs) 40. ADB encourages using qualified consultants from DMCs. 41. ADB considers a consulting firm as a national firm of a Borrower’s country if it is legally incorporated or organized as a legal entity under the laws of that country. Similarly, an individual consultant qualifies as a “national consultant” if he/she is a citizen of the DMC concerned. 42. Nationals of a DMC who possess the appropriate international experience may be considered for assignments that require international expertise, whether in the national's own country or in other DMCs. The international experience that is required for a particular assignment will be defined and described in the pertinent TOR.

H. Eligibility 43. The Regulations, paras 1.14 to 1.18 set out the following eligibility requirements:

“1.14 Except in any case in which the Board of Directors determines otherwise, (i) loans or grants from Special Funds resources can be used only for procurement of goods, works, and services produced in, and supplied from, developed member countries that have contributed to such resources, or from developing member countries; and (ii) loans or grants from ADB’s ordinary capital resources or ADB-administered funds can be used only for procurement of goods, works, and services produced in, and supplied from, member countries. 1.15 To foster competition, ADB permits bidders from all eligible countries to offer goods, works, and services for ADB-financed projects. Any conditions for participation shall be limited to those that are essential to ensure the bidder’s capability to fulfill the contract in question. 1.16 In connection with any contract to be financed in whole or in part by ADB, and subject to para. 1.18, ADB does not permit a borrower to deny the participation of a bidder for reasons unrelated to its capability and resources to successfully perform the contract, nor does it permit a borrower to disqualify any bidder for such reasons. Consequently, borrowers should carry out due diligence on the technical and financial qualifications of bidders to be assured of their capabilities in relation to the specific contract. 1.17 Qualification requirements must be nonrestrictive and therefore be limited to those criteria which are designed to demonstrate that a bidder or group of bidders possesses the necessary professional and technical qualifications and competence, financial resources, equipment and other physical facilities, managerial capability, relevant general and specific experience, business reputation, and capacity to perform the contract. Bidders may be requested to provide evidence of qualification and experience, including past performance, and they shall submit the documents and information specified in the bidding documents along with their bids. 1.18 As exceptions to the foregoing:

(a) Bidders may be excluded if, by an act of compliance with a decision of the

United Nations Security Council taken under Chapter VII of the Charter of the United Nations, the borrower’s country prohibits any import of goods

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from, or payments to, a particular country, person, or entity in respect of goods or services originating in that country. Where the borrower’s country prohibits payments to a particular firm or for particular goods by such an act of compliance, that firm may be excluded.

(b) Government-owned enterprises in the borrower’s country may participate

as a bidder only if specifically agreed by ADB.

(c) Without limitation to (b) above, when the services of government owned universities or research centers in the borrower’s country are of unique and exceptional nature, and their participation is critical to project implementation, ADB may agree on the hiring of those institutions on a case-by-case basis. On the same basis, staff from universities or research centers can be contracted individually under ADB financing.

(d) Government officials and civil servants in the borrower’s country may only

be hired under consulting contracts, either as individuals or as members of a team of a consulting firm, if they

(i) are not being hired by the agency they were working for

immediately before going on leave, and (ii) their employment would not create a conflict of interest.

(e) A firm or individual sanctioned or temporarily suspended by ADB in

accordance with ADB’s Anticorruption Guidelines shall be ineligible to participate in or to be awarded an ADB-financed or ADB-administered contract or to benefit from an ADB-financed or ADB-administered contract, financially or otherwise, during the period of time determined by ADB.”

44. The rules on eligibility for consultants will also be construed in accordance with paras 45 to 57, below.

i. Country and Sanctions 45. ADB permits bidders from all eligible countries. The definition of eligibility varies depending on the financing source(s) for the specific loan or grant. There are three categories of eligibility:

(i) full ADB member country eligibility: for loans or grants funded by ADB’s ordinary capital resources or other ADB-administered funds;

(ii) restricted ADB member country eligibility: for loans or grants funded by Special Funds, whereby only the ADB developed member countries that have contributed to such resources are eligible, as well as all ADB developing member countries; and

(iii) eligibility beyond ADB member countries: only in cases where universal procurement applies.

46. Section 5 of the User’s Guide to Selection of Consulting Services for Borrowers contains the precise eligibility wording to be used in RFP packages and CSRNs, depending on the funding source and other considerations.

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47. Borrowers are otherwise not permitted to deny the participation of a bidder, or to disqualify the bidder, for reasons unrelated to those that are essential to ensure a bidder’s capability and resources to successfully perform the relevant contract. 48. Consulting firms must be legally incorporated or organized as legal entities under the laws of the eligible country6 and individual consultants (whether engaged independently or through firms) must hold a valid passport or a valid government identification card issued to nationals of the relevant eligible country. 49. A consulting firm or individual consultant sanctioned or suspended by ADB in accordance with ADB’s Anticorruption Policy (1998, as amended to date) and Integrity Principles and Guidelines (2015, as amended from time to time) is ineligible to participate in or be awarded a contract that is financed, administered, or supported by ADB. Likewise, the firm or individual consultant must not be under any ADB-issued suspensions resulting from unsatisfactory performance.

ii. Sanctioning by Member Countries

50. Staff may encounter the issue of national blacklisting during or after longlisting by an EA. Staff should ensure that any member country's own debarment procedures do not prevent EAs from treating prospective eligible consultants for ADB-financed contracts from all member countries fairly and in accordance with ADB procurement procedures. This applies equally to official national blacklisting as well as "unofficial" or informal blacklisting. Member countries sometimes establish national blacklisting procedures, often for fraud or corruption as the country may define them, but also for other reasons such as breaches of contract or poor performance. While ADB will support specific anticorruption efforts of member countries, national blacklisting generally will be considered for ADB-financed contracts only when the blacklisted companies and/or individuals are the same nationality as the EA. There may be limited circumstances in which national blacklisting may otherwise be accepted by ADB. If staff become aware of a national blacklist they should:

• determine the basis for it; • advise OAI, PPFD and regional department (RDs); and • ensure the blacklist is not considered in any ADB-financed contracting or

procurement decisions, including prequalification unless endorsed by PPFD and OAI.

51. If staff learn that an EA determined that fraud or corruption occurred in ADB-financed procurement, ADB should accept that determination as long as staff are satisfied there was a sound basis for the decision and that the EA followed the ADB Procurement Regulations and the requirements of the relevant procurement plan and financing agreement. The disqualification may, however, apply only to the specific procurement. In those cases, staff should consult with OAI. Staff should also note that EAs may report an integrity violation occurred in ADB-financed procurement directly to OAI, without informing the concerned project officer. 52. The above discussion refers to blacklisting for fraud and corruption. For sanctioning that relates to poor performance on a particular contract, the poor performance may be taken into account in determining the contractor’s qualifications (pre or post). In such cases, the project

6 Experts employed or engaged by an eligible consulting firm will be considered eligible regardless of their nationality.

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administration unit should assess the sanctioning in terms of qualification only and need not involve OAI. PPFD should be consulted as necessary. 53. If a sanctioning or blacklisting system is disclosed early during processing, staff may include it in the scope for the EA’s capacity assessment or in the review of the local laws, rules, and regulations. A system that is objective, fair, and transparent, preferably using third party experts to assess technical issues, should be acceptable. If a national sanctioning system is found to be acceptable, the sanctioning by the system can be included as a qualification criterion for longlisting. For inclusion of a qualification criterion based on a national blacklisting system will be considered on a case-by-case basis and requires endorsement by PPFD.

iii. Eligibility Requirements for All Consultants 54. A consulting firm is from an ADB member country if it meets any of the following requirements:

(i) Corporations or companies must be incorporated in an ADB member country. (ii) Partnerships that are not incorporated and have individual members must be duly

registered in an ADB member country. (iii) Universities, institutions, public sector organizations, and civil society

organizations that are not incorporated must provide proof that they are duly established and legally capacitated to enter into binding and enforceable contracts with ADB (by charter, statute, etc.).

55. An individual consultant is from an ADB member country if they are a citizen of an ADB member country.

iv. Government Organizations and Civil Servants 56. The following restrictions on government organizations and employees apply to all assignments:

(i) Government-owned enterprises, institutions and organizations may work as consultants in their own countries only if they can establish that they are legally and financially autonomous; operate under commercial law; and are not dependent agencies of the Borrower, EA or IA. However, ADB may sometimes approve a government-owned university or research center, or one of its staff, to participate in an assignment when the services to be provided by such entity or staff are exceptional or unique, and the participation of such entity or staff is critical to the assignment. PPFD has the authority to interpret this requirement and approve specific cases when sufficient justifications are provided by the EA.

(ii) Civil servants (public sector employees working for a government department or agency) may only be hired under consulting contracts, either as individuals or as team members of a consulting firm, if: (i) they are on leave of absence without pay and are duly authorized to work under an ADB consulting contract, (ii) they are not being hired by the agency they were working for immediately before going on leave, and (iii) their employment would not create a conflict of interest. A letter from the candidate’s agency may be required to certify that these requirements are met.

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v. Consultants Currently Engaged by ADB or EA 57. A consultant who is currently engaged by ADB or by the EA for an ADB-financed TA, project or contract on a full-time basis is understood to be committed for a continuous assignment, whereby a home office work week consists of 5 working days and a field work week consists of 5 or 6 working days, as the case may be, in accordance with the terms and provisions of the contract. A consultant who is currently engaged on a full-time basis for an ADB-financed assignment must not work as a consultant, resource person or service provider for another ADB-financed TA, project or contract, and for any other employer or project. A consultant who is currently engaged on an intermittent basis for an ADB-financed assignment is allowed to work on another intermittent assignment, provided that PPFD receives clearance from the relevant user unit that there would be no overlapping in working days between the assignments in question. III. PREPARING FOR CONSULTANT RECRUITMENT 58. This section details the key considerations for the EA in preparing for consultant recruitment.

A. Procurement Plan 59. To recruit consultants through a fair, efficient and transparent process, the EA details the consultant recruitment requirements in the procurement plan. Procurement plans should be publicly accessible at ADB's website. 60. Essential elements in the consultant recruitment section of the procurement plan include: (i) cost estimates for the consulting assignment, (ii) consultant selection method, (iii) type of proposal to be used (if a proposal is required), (iv) eligibility criteria for the assignment (indicating if the assignment will be international or national or combined), and (v) the recruitment mode (international or national competitive selection). The terms of reference (TOR) determine these elements and are, therefore, prepared first before finalizing the procurement plan.

B. Terms of Reference (TOR) 61. After identifying the need for consulting services, the EA prepares the TOR, sometimes with the assistance of an expert or a team of specialists. The scope of the services specified in the TOR should take into account budgetary and time constraints. The TOR defines the assignment objectives, scope, outputs of the services, and provides background information (including a list of studies and basic data, if available) to assist the consultants in preparing their proposals. If transfer of knowledge or training is included in the scope of work, then the TOR should indicate the level of effort required, the estimated number of trainees, the length of the training program, and other related requirements (such as the need for customized training materials) to enable consultants to estimate the required resources. The TOR should also list the services and surveys for the assignment, if needed, and the expected outputs (for example, reports, data, maps and surveys). The TOR should be sufficiently flexible to allow consultants to propose their own methodology and work program, particularly when the assignment is complex. The TOR should define the EA's counterpart support responsibilities, materials, data and reports that can be made available to the consultants (when applicable).

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62. A typical TOR includes

(i) assignment objectives; (ii) project background; (iii) scope of services; (iv) expertise required (including any requirement for international and/or national

expertise); (v) total inputs required (by person months or working days); (vi) detailed tasks/activities; (vii) output requirements (deliverables, milestones, etc.); (viii) counterpart support by the EA (when applicable); and (ix) other indications (such as assignment locations, responsibility level, and sector

classification among other things). 63. For assignments requiring team work among multiple experts, the TOR defines each team member’s role, responsibility and expected amount of inputs. This type of TOR is input-based and the contract form is normally time-based. 64. The TOR may also focus on measurable results rather than on the contribution of each individual to allow the invited firms flexibility in preparing proposals for the assignment and in determining the optimal team composition. This type of TOR is output-based and contract form is normally lump-sum. However, even for output-based TORs, it is important to identify key experts for the assignment.

C. Cost Estimate 65. When preparing the TOR, the EA also prepares cost estimates for the assignment. Cost estimates normally include the following items:

(i) Remuneration. This is the compensation for consultants' inputs (for a time-based contract) or outputs (for a lumpsum contract). To prepare the cost estimates, remuneration may be calculated using person-months as the basic unit. However, in the contract, remuneration may be indicated using working days (for individual consulting assignments) or person months (for consulting assignments with firms involving team of experts), or may be expressed as a lump sum, depending on the type of assignment.

(ii) Per Diem. This covers accommodation costs and daily subsistence allowances required for consultants to work in locations where they do not hold permanent residence or office. To prepare the cost estimate, the EA may assume that the consultants will need per diem, although the actual need for per diem will be determined when the consultant has been selected.

(iii) Travel. This includes the cost of round trip travel by air (economy or business class). To prepare the cost estimate, the EA may assume that travel will originate from the most remote place of an ADB member country to the assignment location if the actual travel route cannot be determined before the recruitment of the consultant.

(iv) Transportation. This covers local transportation costs for activities the TOR requires.

(v) Communication. This covers communication costs for activities the TOR requires. (vi) Report (and possibly translation). This covers the cost of printing, translation and

distribution of the reports the TOR requires.

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(vii) Administrative and/or Research Assistant. Not all consultant assignments need this cost item. The TOR should justify the use of an administrative or research assistant.

(viii) Translation/interpretation, when required. (ix) Other costs the TOR justifies. (x) Provisional Sum (normally used in engagement of firms). This may cover the cost

of workshops, seminars, conferences, surveys, and equipment. For equipment, the cost estimate includes a list of the equipment to be purchased.

(xi) Contingency (usually 5-10% of the total cost estimate)7. 66. EAs and the Project Unit may seek PPFD’s guidance when preparing the cost estimate for any consulting assignment.

D. Selection Method 67. The EA may choose one of the selection methods for a consulting assignment detailed in Part IV of this SI.

E. Change in Selection Method 68. A change in selection method may be justified after a loan has been approved. Change to QCBS from another selection method does not require approval. The procedures to effect a change in selection method that requires an approval are described below. The requirement for an approval also applies to changes in the quality-cost ratio for the QCBS selection method and to the introduction of new selection methods. 69. When an EA proposes changing the consultant selection method after ADB has approved the project, it submits a proposal and justification for ADB's approval. The Project Unit prepares a recommendation in consultation with PPFD and submits it for approval. 70. The Project Unit updates the Procurement Plan (which is posted on ADB’s website) to reflect any approved changes in selection method.

F. Types of Technical Proposals 71. Depending on the TOR and the cost estimates, the EA may use one of the three types of technical proposals listed below to select consulting firms. The Project Unit, after consulting PPFD, may propose any type of technical proposal provided it is fully justified.

i. Full Technical Proposals (FTP)

72. FTP is the default type of proposal for an assignment with a complex TOR. 73. The shortlisted firms are normally given 45 days to prepare FTPs. When recruiting through an e-procurement system the FTP preparation period may be reduced to a minimum of 35 days. 74. The following information needs to be provided as part of the FTP:

7 May be higher for contracts exceeding 18 months in duration

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(i) description of the approach, methodology, and work plan for performing the assignment;

(ii) team composition, task assignments, and CV summary; (iii) work schedule; (iv) personnel schedule; (v) CV of proposed experts; (vi) consultant's organization and experience; (vii) comments or suggestions on the TOR; and (viii) comments on EA counterpart staff and facilities. ii. Simplified Technical Proposals (STP)

75. STP is the default type of proposal for an assignment with a well-defined TOR. 76. The shortlisted firms are normally given 35 days to prepare STPs. When recruiting through an e-procurement system the STP preparation period may be reduced to a minimum of 25 days. 77. The following information needs to be provided as part of the STP:

(i) description of the approach, methodology and work plan for performing the assignment;

(ii) team composition, task assignments, and CV summary; (iii) work schedule; (iv) personnel schedule; and (v) CV of proposed experts.

78. STPs are shorter than FTPs because they do not include information on the firms’ previous experiences. Therefore, before shortlisting, when using STP, the EA should carefully examine the firms' and their partners' or associates' experiences, as the case may be.

iii. Biodata Technical Proposals (BTP) 79. BTP may be used for assignments with well-defined, position-based TORs. 80. The shortlisted firms are normally given 21 days to prepare BTPs. When recruiting through an e-procurement system the BTP preparation may be reduced to a minimum of 15 days. 81. The following information needs to be provided as part of the BTP:

(i) team composition, task assignments, and CV summary; (ii) work schedule; (iii) personnel schedule; and (iv) CVs of proposed experts.

82. Because BTPs do not include the firms’ previous experiences, the EA should carefully examine the firms' experiences during shortlisting.

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G. Changing the Type of Technical Proposal 83. A change in the type of technical proposal may be justified after a loan has been approved. The EA does not need approval to change the proposal type from BTP to STP or FTP, or to change proposal type from STP to FTP. However, the EA should consult PPFD and obtain the Project Unit director's approval to change the proposal type from FTP to either STP or BTP, or to change the proposal type from STP to BTP. The EA then updates the consultant section of the procurement plan.

H. Determining International or National Expertise 84. The determination of international or national expertise should be based on the needs of the assignment and requirements specified in the TOR. During finalization of the consultant section of the procurement plan, the EA may consult PPFD to determine the appropriate combination of international and national expertise by considering the nature of the assignment, the national consulting market (the availability of the expertise required by the TOR in the project country), and other relevant factors. The Project Unit helps the EA prepare the consultant section of the procurement plan ensuring that the availability and qualifications of national consultants are discussed with the EA. The Project Unit shall also check the relevant data and information available in CMS. When the Project Unit and the EA agree that national consultants have the capacity to handle some consulting assignments, and such agreement is supported by sufficient information and justifications, the Project Unit may then assist the EA in defining which assignments and positions are appropriate for international and national consultants. Changing an international position from a national position in the TOR or vice versa after the procurement plan is approved would require the Project Unit director’s approval in consultation with PPFD.

I. Recruitment Mode (International or National Competitive Selection) 85. International competitive selection is the standard mode for recruiting consultants. However, when sufficient qualified national firms are available to provide the services with competitive costs as required by the TOR, and when competition, including foreign consultants, is generally unjustified, the recruitment may be done through competition among local firms (registered in the project country). International firms must nonetheless be permitted to apply and to be equally considered for any role advertised as national. 86. For loan projects, national shortlisting may be permitted if the assignment is defined as national in the procurement plan. Such determination is made by the Project Unit in consultation with PPFD when assisting the EA to prepare the consultant section of the procurement plan before loan negotiations, taking into account the nature of the project, the capacity of national consultants, and the complexity of the assignment. When ADB provides local cost financing under a loan/grant, the Borrower/recipient may use these funds to finance part or all of the assignments identified for national consultants. In assisting the EA with the consultant section of the procurement plan, the Project Unit may also help the EA prepare the budget for international and national consultants.

J. Consulting Services Provided by United Nations and Other International Organizations

87. The UN and other similar specialized agencies may be hired as consultants where they are qualified to provide technical assistance and advice in their areas of expertise. However, they shall not receive any preferential treatment in a competitive selection process, except that borrowers may accept the privileges and immunities granted to UN agencies and their staff under

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existing international conventions, and may agree with UN agencies on special payment arrangements as required by their agency’s charter, provided these are acceptable to ADB. To neutralize the privileges of UN agencies, including other advantages such as tax exemption and facilities, and special payment provisions, the QBS method is used. UN agencies may be hired on a Direct Contracting (also referred to as Single Source Selection / SSS) basis if the criteria outlined in Part IV of this SI are fulfilled. IV. GENERAL PROCEDURE FOR SELECTING AND ENGAGING CONSULTANTS

A. General Procedures 88. The following requirements are essential for all consultant selection processes, unless otherwise specified:

i. Advertising (Consulting Services Recruitment Notice – CSRN)

89. To ensure transparency in selecting consultants under the procurement policy, ADB requires the EA to advertise all consulting services assignments that ADB finances, except under certain conditions when this requirement may be waived as specified in Part V of this SI. A consulting services recruitment notice (CSRN) is posted in the “Business Opportunities” section of ADB’s website. The CSRN includes information on the terms of reference (TOR), cost estimate, selection method, and time frame for recruitment, as defined in the consultant section of the procurement plan. It should clearly set out the criteria to be applied to select the shortlist. The EA may decide to limit the number of bidders appearing on the shortlist, and the objective criteria for doing so shall be set out in the CSRN. The CSRN allows time for consultants to submit an expression of interest (EOI) and is usually posted on ADB’s website for 30 days (or a minimum of 15 days when using CMS) for receiving EOIs from the firms, and for a minimum of 7 days for recruiting individual consultants.

ii. Expression of Interest (EOI)

90. Depending on the services, consultants submit an EOI as an individual or an entity. An entity can be an individual, a single consulting firm, lead consulting firm with sub-consultants, or a joint venture.

a) EOI by Individuals

91. When expressing interest as an individual, consultants offer up-to-date information on how their qualifications and experiences conform to the TOR requirements.

b) EOI by Firms/Joint Ventures/Associations

92. When expressing interest as an entity, the firm highlights its most recent projects and geographical experiences relevant to the TOR, as well as its management capacity. If a consultant is submitting an EOI as a joint venture (JV), the EOI will be submitted by the lead firm or lead partner, and should clearly identify each joint venture partner. Except for recruitment using consultants' qualification selection (CQS), CVs are not required when an entity submits an EOI. 93. A JV is an association of more than one firm that may or may not have a distinct legal personality from that of its members. When expressing interest, the JV must nominate and

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authorize one firm as the lead firm, which will be the sole representative that will interact directly with the EA. 94. If a JV is selected by the EA to perform the consulting services, the lead firm shall represent the JV in signing a contract and shall have the authority to conduct all business for and on behalf of any and all the members of the JV, provided that each and every member of the JV shall be jointly and severally liable for the performance of the contract.

iii. Recruiting Individual Consultants

95. The EA recruits individual consultants based on how closely their qualifications and experience conform to the TOR requirements and the consultant’s availability. 96. Individual consultants are typically recruited when:

(i) collective responsibility is not a requirement; (ii) additional outside (home office) professional support is not required; and (iii) individual experience and qualifications are the main requirements.

97. When coordination, administration, or fixing the collective responsibility of a number of individual consultants may become difficult, employing a firm is preferable.

98. Individual consultant recruitment does not require submission of proposals. Recruiting individual consultants requires advertising in CSRN. 99. The EA normally shortlists three or more candidates based on the EOIs received. Shortlisted candidates are ranked by their experiences and qualifications. All shortlisted candidates must meet the eligibility criteria set out in Part II of this SI. Only experts that submitted EOIs shall be shortlisted, unless an extended advertisement did not generate any qualified EOIs. In this case a shortlist may be created by the EA. These shortlisted candidates will be informed of their inclusion in the shortlist and requested to submit an EOI. If a shortlisted consultant does not submit an EOI, then his/her CV shall not be considered. 100. The EA requests the first ranked candidate to confirm availability and to provide other information that may be required as in Part V of this SI. 101. Upon receiving a confirmation of availability from the consultant, the EA completes any specific procedures outlined in Part V of this SI, for clearances and approvals, and then offers a contract to the consultant. The EA, in consultation with the Project Unit, should also establish that the consultant has no concurrent assignments which could prevent it from providing the necessary levels of input for the assignment. 102. For recruiting individual consultants, the EA normally determines the remuneration rates based on market rates, while other expenses are based on the TOR. The Project Unit, and PPFD may assist the EA in determining these rates. 103. Upon receiving the consultant's acceptance of the offer, the EA will issue a notice-to-proceed to the consultant for mobilization.

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iv. Recruiting Firms a) Long List and Shortlist

104. To obtain high quality consulting services, the EA examines all EOIs from the consultants responding to the CSRN. The EA lists all eligible firms (longlist) that submitted EOIs. Although no mandatory minimum number is required, to ensure adequacy in competition, the longlist normally contains not less than 10 firms. The EA may consider re-advertising if the EOIs received are insufficient to draw the shortlist. 105. From the longlist, the EA then selects the shortlist, using the following criteria and conditions:

(i) The shortlisted firms meet the eligibility criteria in Part II of this SI. (ii) The shortlisted firms meet the technical competence, as determined by the EA. (iii) Shortlists normally comprise six firms; however PPFD will agree to shortlists

comprising a smaller number of firms if appropriate in the context of the assignment, for example, when only a few qualified firms have expressed interest in the specific assignment or when the size of the contract does not justify wider competition8.

(iv) The shortlisted firms meet the requirements for country/regional experience/s, considering any preference that has been expressly indicated by the EA.

(v) For national recruitments (see Part III of this SI) the shortlist may comprise entirely national firms (registered in the project country). However, if foreign firms express interest, they should be considered.

106. Except under CQS, ranking is not required or encouraged when shortlisting firms 9 . Shortlisting for CQS is discussed below in the CQS section. 107. The experiences and qualifications of all firms participating in a joint venture are assessed during shortlisting and, if circumstances so justify, the experience and qualifications of the lead firm or managing joint venture partner may be assigned more weight than those of other partners. 108. Changes in the joint venture arrangement among shortlisted firms are normally not allowed after the shortlist is finalized, unless otherwise stated in the RFP Data Sheet for a specific assignment, under certain conditions. Specific requirements on these restrictions are given in the Request for Proposal (RFP).

b) Preparing the Technical Proposal Evaluation Criteria

109. The EA prepares the technical proposal evaluation criteria for selecting consulting firms. At about the same time that the long list and shortlist are prepared, but before preparing the RFP, the EA prepares the technical proposal evaluation criteria based on the type of technical proposal identified in the consultant section of the procurement plan. The standard templates for the detailed evaluation criteria are in the standard RFP (accessible from www.adb.org10). Suggested evaluation weight ranges for each proposal type follow (although note that these ranges may be

8 The absolute minimum of shortlisted firms is two 9 Ranking for selection methods other than for CQS may prejudice the evaluation of proposals to be received 10 https://www.adb.org/site/business-opportunities/operational-procurement/consulting/documents#loans

http://www.adb.org/

https://www.adb.org/site/business-opportunities/operational-procurement/consulting/documents#loans

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varied, for instance where high level technology is required – refer to the Guidance note on High Level Technology):

(a) Full technical proposal (FTP)11:

§ Firm’s qualifications and experience 100–200 points § Approach and methodology 200–400 points § Personnel biodata 500–700 points

Total 1,000 points (b) Simplified technical proposal (STP):

§ Approach and methodology 300 points § Personnel biodata 700 points

Total 1,000 points (c) Biodata technical proposal (BTP):

§ Work plan and personnel schedule 100 points § Personnel biodata 900 points

Total 1,000 points

110. Include the summary evaluation sheet reflecting the above weights in the RFP. 111. Also include the personnel evaluation sheet in the RFP (accessible from http://www.adb.org). The personnel evaluation sheet should incorporate the weights suggested below for core/ key experts and pass/ fail for other experts.

(i) Qualification and general experiences 10% to 20% (ii) Project-related experience 60% to 80% (iii) Overseas/country experience 12 or experience

with international organizations13 10% to 20% 112. The EA also prepares a set of narrative evaluation criteria (NEC) for evaluation. The NEC should be consistent with the evaluation sheets and should not include restrictive requirements. The NEC should also be consistent with the TOR. If the EA opts to give more weight to full-time employees of the consulting firm, this has to be clearly indicated in the NEC and personnel evaluation sheet (PES) in the RFP. The NEC will be used internally to guide the evaluators. The EA may include the NEC in the RFP.

c) Preparing the Request for Proposal (RFP) 113. For engaging firms, after the shortlist and the evaluation criteria are completed, the EA prepares the RFP and submits the draft RFP with the shortlist, the TOR, and the evaluation criteria for approval by ADB (Submission 1) if necessary in accordance with Part V of these SI. The standard RFP template is available at www.adb.org. It is important to note that when there is a difference between the contents of the RFP for a specific assignment and the contents of the SI,

11 Provides most flexibility in moving technical evaluation points between categories 12 For international experts 13 For national experts

http://www.adb.org/site/business-opportunities/operational-procurement/consulting/documents

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and if the RFP is already issued to the consultants, the RFP shall prevail, unless an amendment to the RFP is deemed necessary. Ensuring accuracy, consistency and clarity in the RFP is essential for a smooth and transparent selection process. 114. Apart from the standard instructions, the RFP contains the:

(i) shortlisted firms’ names (including associated firms, joint venture partners when applicable);

(ii) selection method and type of technical proposal for the selection; (iii) TOR and any information that the EA decides the shortlisted firms need, with the

full background and assignment requirements; (iv) Information that might mitigate an unfair competitive advantage to one of the

shortlisted firms (if applicable); (v) evaluation criteria for the technical proposals; (vi) budget for the assignment; and (vii) specific information and data, required in the RFP datasheet.

d) Clarifying and Amending the RFP

115. After the RFP is issued to the shortlisted firms, the firms may request clarification on the RFP or TOR by writing to the EA within the time the RFP specifies. The EA answers the questions promptly to give shortlisted firms adequate lead-time before the deadline to incorporate the responses into their proposals. The answers are distributed with the original questions (with any appropriate revisions and without identifying the source of the question) to all shortlisted firms. An exception may arise when the question or response relates to a sensitive matter that cannot be disclosed to a third party, or when circulating a response to a question may violate the questioner’s privacy; provided that the response shall not favor the firm for selection. 116. The EA may amend the RFP, providing a notice to all shortlisted firms. When the answers and amendments are provided at a pre-proposal conference, these should be reflected in the minutes and distributed to all shortlisted firms. 117. The EA records all clarifications and/or amendments issued, and informs all the proposal evaluators of such clarifications and/or amendments.

e) Acquiring and Rejecting Proposals

118. Shortlisted firms submit proposals to the address in the RFP by the deadline. The proposals should be formatted, packaged, and sealed in accordance with the RFP requirements. Proposals received after the specified deadline and proposals providing price information in the same envelope as the technical proposal are rejected under RFP requirements, except when the recruitment uses CQS or Direct Contracting methods. Under special circumstances, such as force majeure or documented malfunctioning of electronic procurement systems, PPFD directors may decide whether a late proposal can be accepted, but such decision should be made only if it will not affect the fairness, transparency, and integrity of the selection process.

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f) Evaluating Technical Proposals 119. The EA designates evaluators who form a Consultant Selection Committee (CSC) to evaluate technical proposals as in Part V of this SI. 120. Evaluators first independently assess whether the technical proposals comply with RFP submission requirements, and then evaluate each proposal. 121. Five basic tools used during technical evaluation include the

(i) TOR; (ii) narrative evaluation criteria; (iii) personnel evaluation sheet; (iv) summary evaluation sheet; and (v) scoring guide.

122. The evaluators evaluate each proposal for its responsiveness to the TOR. Based on the narrative evaluation criteria, evaluators start by rating the personnel (“core/ key experts” only) of each proposal, using the personnel evaluation sheet, and then by transferring the resulting scores (rating multiplied by the corresponding weight) from the personnel evaluation sheet to the summary evaluation sheet. If a firm fails to include in its proposal one of the core/ key experts identified in the TOR, this may give grounds for rejection of the proposal. Other factors, such as approach and methodology, are then evaluated based on the narrative evaluation criteria, and the ratings are entered in the summary evaluation sheet. All the resulting scores corresponding to each criterion are then added on the summary sheet for a total score. 123. To ensure consistency in evaluation, evaluators shall use the scoring guide indicated in the summary and detailed evaluation sheets to determine the ratings for each criterion. 124. The evaluation should be conducted by a CSC. The CSC meets to:

(i) confirm absence of actual or potential conflict of interest; (ii) confirm that the proposals comply with the RFP requirements; (iii) discuss each member’s independent evaluation; (iv) reach a consensus on a set of scores for each proposal that represents the

committee’s collective view; (v) complete a final ranking of the proposals; and (vi) finalize narrative comments on each proposal to supplement the evaluation forms.

These highlight any omission or deficiency, and each proposal's strengths and weaknesses, compared against the given evaluation criteria.

125. The minimum technical score is specified in the RFP, which is 750 out of 1,000 points. After scoring is completed and any necessary approvals are obtained from ADB (see Part V of this SI on Submission 2), the EA promptly advises any firm whose technical proposal has scored less than 750 points that such firm has been unsuccessful. When Quality-and Cost-Based-Selection (QCBS), or Least-Cost-Selection (LCS) or Fixed-Budget-Selection (FBS) is used, the EA returns the firm's financial proposal unopened at the end of the selection.

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g) Requesting and Evaluating Financial Proposals 126. The procedure for requesting and evaluating financial proposals varies depending on the selection method (see below).

h) Determining the Final Ranking of Proposals

127. The procedure for deciding the final ranking depends on the selection method (see below).

i) Negotiating Contracts

128. The EA invites the firm to contract negotiations. The procedure depends on the selection method (see paragraphs below). The following apply to all contract negotiations with firms.

j) Preparing to Negotiate

129. In the letter inviting the selected firm to contract negotiations, the EA requires the selected firm to meet the following requirements as preconditions:

(i) Reconfirming/Replacing of Personnel – Before contract negotiations, the consultant confirms the availability of all team members nominated in its technical proposal. Replacing personnel may be considered when (i) the EA decides to start the field services significantly later than the RFP date, or (ii) the proposed team member becomes unavailable due to reasons beyond the firm's control (for example illness, death or family difficulties). The replacement team member must have equal or better qualifications and experience than the originally nominated team member. The EA may request the replacement of personnel when the firm obtains the highest overall ranking, but a particular expert has received a low score, is ineligible or was rated poorly for a previous consulting assignment. Under QCBS, FBS and LCS, the remuneration charged for the replacement expert should remain the same as that proposed for the original expert. Team members confirmed at contract negotiations can only be changed after the acceptance of the inception report by the EA (unless due to reasons beyond the firm’s control).

(ii) Identifying Issues – Before contract negotiation, the consultant receives a list of

any issue/s identified during evaluation requiring clarification or correction. (iii) Documentation – The firm invited to negotiate submits to the EA a letter of

authority identifying the firm's representative who shall be authorized to negotiate and sign the contract, as well as a copy of the firm's legal certificate of incorporation or establishment.

k) Contract Negotiation Agenda

130. The contract negotiation may be conducted face-to-face for large (typically above $600,000) and complex contracts, or through telecommunications or electronic communications for smaller and simple contracts. The agenda includes

(i) submitting written authorization for the consultant to negotiate and sign a contract with the EA;

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(ii) reviewing documentation submitted, including the financial proposals, review of project matters such as, scope of work/TOR, work plan and personnel schedule, consultant's personnel, counterpart staff and facilities, and/or equipment;

(iii) reviewing the financial terms and conditions; (iv) reviewing the consultant's contract; (v) explaining the post-assignment questionnaire; and (vi) discussing contract administration and monthly progress reports.

l) Cancelling Contract Negotiation

131. If the selected firm cannot agree with the EA on technical, financial, or other matters, or fails to meet the requirement for mobilizing personnel, the EA may terminate the negotiation with the firm and negotiate with the next-ranked firm. This occurs after obtaining approval following the procedure in Part V of this SI.

m) Contract Award

132. If the negotiation succeeds, the selected firm signs the contract with the EA and mobilizes its personnel as contracted. The EA notifies the other firms that submitted proposals about the contract award.

B. Selection Methods 133. Value for money is normally based on the best combination of quality and price appropriate to the service in question. This is achieved through competition amongst shortlisted firms in which selection is based on the quality of the proposal and, where appropriate, on the cost of the services to be provided. The major selection methods outlined below are read with the general procedures discussed in paras 104 to 132 of the SI. Approval processes are detailed in Part V of this SI. Appendix 1 to the GN on Consulting Services Administered by ADB Borrowers outlines the considerations to be taken into account when choosing the selection method.

i. Quality and Cost-Based Selection (QCBS)

134. QCBS uses a competitive process among shortlisted firms that evaluates proposals on the basis of the quality of the proposal and cost of the services. 135. QCBS is the most appropriate selection method when the TOR requires team work and contains specific requirements with respect to team composition, detailed tasks and reporting. For QCBS to be effective, TORs should be of high quality and specific. QCBS is the preferred method for selecting consultants for ADB financed projects. 136. Normally under QCBS, technical proposals are assigned a weight of 80%, while financial or cost proposals are assigned 20%. The weight for “cost” shall be chosen taking into account the complexity of the assignment and the relative importance of quality. 137. The EA may also opt for one of three alternative weightings:

(i) For complex assignments and/or where greater priority for quality is needed, or when the impact of the consultant’s assignment will be major, the technical proposal may be weighted at 90%, and the financial proposal at 10%. This alternative weighting is encouraged for project preparatory, advisory and

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supervision assignments where there is an impact on the delivery and success of downstream or related ADB operations.

(ii) For assignments of relatively low levels of complexity and with minimum downstream impact, the technical proposal may be weighted at 70%, and the financial proposal at 30%.

(iii) For audit, procurement agent and inspection agents, the technical proposal may be weighted at 50%, and the financial proposal at 50%.

138. If the EA opts for the QCBS method, this should be indicated in the Procurement Plan for the consulting service, along with the distribution of weights to be assigned to the technical and financial proposals. For example, if the technical proposal is assigned a weight of 80%, and the financial proposal 20%, then the selection method in the consultant section of the procurement plan is identified as "QCBS (80:20)".

139. Under QCBS, the EA follows 16 steps:

(i) Refer to the consultant section of the Procurement Plan and obtain any required

approval. (ii) Advertise the assignment and receive EOIs. (iii) Prepare the long list, shortlist, evaluation criteria and RFP, and obtain any required

approval (iv) Send the RFPs to shortlisted firms and invite their technical and financial proposals

in separate sealed envelopes, following the RFP submission requirements and deadlines. The EA may clarify or amend the RFP and TOR.

(v) Receive proposals and securely store the financial proposals, which remain unopened, until the public opening.

(vi) Open and evaluate the technical proposals using the RFP evaluation criteria and scoring system and then obtain any required approval for the technical evaluation results.

(vii) Notify all firms whose technical proposals failed to obtain the minimum qualifying score (750 points) about such failure, and invite those firms whose technical proposals obtained a score of at least 750 to the public opening of financial proposals.

(viii) Conduct the public opening of financial proposals. At the opening, the EA reads aloud the qualified firms' technical scores, opens their financial proposals, and reads aloud the total prices. The EA gives attendees details of the applicable currency exchange rate, which will be used to compute US dollar equivalents when evaluating financial proposals. The source and date for determining the exchange rate are in the RFP. The EA also indicates the likely schedule for contract negotiation and commencement of services. The EA keeps all other information in the financial proposals confidential. After the opening, the EA sends a letter informing all the firms that submitted proposals of the technical scores of all shortlisted firms and total prices for each qualified firm, whether or not they attended the public opening.

(ix) Evaluate the financial proposals and verify the price of each using the procedure in the RFP. The EA

• checks if the commercial terms in the proposal comply with the RFP requirements;

• corrects any mathematical error and ensures the proposal includes all the service costs, fairly estimated;

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• ensures the provisional sums and contingency amount are clearly and separately identified in the proposal, and such amounts are consistent with those specified in the data sheet;

• ensures the proposal identifies or excludes tax elements as in the RFP; • converts any non-U.S. dollar denominated prices to United States dollars

using the source for the exchange rates in the RFP; • checks that the gross evaluated financial proposal (GEFP) (which relates

to the proposal as corrected for errors, but including provisional sums and contingency) is within the assigned budget. If the GEFP exceeds the budget, the EA staff decides whether the financial proposal is responsive based on the RFP instructions for the assignment; and

• calculates the financial score for each financial proposal. Calculations are only for variable (or competitive) cost items such as remuneration and out-of-pocket expenditures. Fixed (or non-competitive) cost items such as provisional sums and contingencies are excluded. They are subtracted from the GEFP, resulting in a net evaluated financial proposal (NEFP). The EA then gives the lowest NEFP a financial score of 1,000. To calculate the other proposals’ financial scores, the EA divides the lowest NEFP by the NEFP being considered and multiplies the result by 1,000.

(x) Calculate the final score for each firm by adding the agreed technical score weighting to the agreed financial score weighting.

(xi) Rank the firms by their final scores, prepare an evaluation report, and obtain any required approval.

(xii) Invite the first ranked firm to contract negotiation. During the negotiation, the EA may only make minor changes in the TOR, the consultant’s inputs, and the quantities of expenses. The EA cannot change the consultant’s rates for remuneration and expenses.

(xiii) If the negotiation succeeds, award the contract; otherwise obtain the required approval for inviting the next ranked firm to negotiate and repeat the process from step (xii).

(xiv) Issue a notice-to-proceed to the contracted firm for mobilizing the team. (xv) Return the unopened financial proposals to consultants whose technical proposals

scored less than 750 points. (xvi) Notify all competing/participating firms of the contract award and, if so requested,

verbally debrief, either face-to-face or through telecommunication shortlisted firms by appointment. The debriefing is limited to the evaluation of the proposal submitted by the firm that requested debriefing.

ii. Quality-Based Selection (QBS)

140. QBS is a selection method based on the evaluation of the quality of the technical proposals, and the subsequent negotiation of the financial proposal and the contract with the consultant that submits the highest ranked technical proposal. 141. QBS is the appropriate selection method for

(i) complex or highly specialized assignments for which it is difficult to precisely define

the scope of work in the TOR and the required consulting inputs, and for which the EA expects the consultants to submit innovative proposals (for example, country

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economic or sector studies, multisectoral feasibility studies, design of a hazardous waste remediation plant or of an urban master plan, or financial sector reforms);

(ii) assignments with high downstream impact (for example, feasibility and structural engineering design of major infrastructures such as large dams, policy studies of national significance, and management studies of large government agencies); or

(iii) assignments that can be carried out very differently, making it difficult to evaluate proposals (for example, management advice, and sector and policy analysis).

142. For QBS, the EA follows 11 steps:

(i) Refer to the consultant section of the Procurement Plan and obtain any required

approval. (ii) Advertise the assignment and receive EOIs. (iii) Prepare the long list, shortlist, evaluation criteria and RFP, and obtain any required

approval. (iv) Send the RFPs to the shortlisted firms and invite their technical proposals,

following the RFP submission requirements and deadline. The EA may clarify or amend the RFP and TOR.

(v) Receive and evaluate the technical proposals using the RFP evaluation criteria and scoring system, rank the firms by technical scores, and obtain any required approval.

(vi) Invite the first ranked firm to submit a financial proposal. (vii) Review the financial proposal to check if it complies with the RFP requirement and

identify any major issues for contract negotiation. (viii) Invite the first ranked firm to contract negotiation. Before or during negotiation, the

EA may request the firm to substantiate the remuneration rates and expenses, especially if they are higher than the market rates or the EA’s cost estimates. ADB may audit the firm's supporting documents.

(ix) If the negotiation is successful, award the contract; otherwise, obtain the required approval for inviting the next ranked firm to negotiate, and repeat the process from step (vi).

(x) Issue a notice-to-proceed to the contracted firm for mobilizing the team. (xi) Notify all competing/participating firms of the contract award and, if so requested,


iii. Fixed-Budget Selection (FBS)

143. FBS is a selection method that evaluates the quality of technical proposals, provided that the costs of service are within a specified budget. 144. FBS is the appropriate selection method when:

(i) the TOR is precisely defined with no changes expected during implementation; (ii) the time and personnel inputs can be assessed accurately; and (iii) the budget is fixed and cannot be exceeded.

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145. For FBS, the EA follows 15 steps: (i) Refer to the consultant section of the Procurement Plan and obtain any required

approval. (ii) Advertise the assignment and receive EOIs. (iii) Prepare the long list, shortlist, evaluation criteria, and RFP, and obtain any

required approval. (iv) Send the RFP to the shortlisted firms and invite their technical and financial

proposals in separate sealed envelopes, following the RFP submission requirements and deadline. The RFP indicates the budget ceiling for the assignment and the firms submit their best technical proposal, whose cost should be within the budget ceiling. The EA may clarify or amend the RFP and TOR.

(v) Receive proposals and securely store the financial proposals, which remain unopened until the public opening.

(vi) Open and evaluate the technical proposals using the RFP evaluation criteria and scoring system, and obtain any required approval on the technical evaluation results.

(vii) Notify all firms whose technical proposals failed to obtain the minimum qualifying score (750 points) about such failure, and invite firms whose technical proposals obtained a score of at least 750 to the public opening.

(viii) Conduct the public opening of financial proposals using the same procedure for public opening for QCBS.

(ix) Evaluate the financial proposal of the firm that received the highest score for its technical proposal and verify the price of the financial evaluation using the same methodology for QCBS, except that no calculation of the financial score is required. If the evaluated price exceeds the budget, the firm will be disqualified and the financial evaluation will continue with the proposal that has the second highest technical score and so on, until a firm is selected.

(x) Prepare an evaluation report recommending the selected firm and obtain any required approval.

(xi) Invite the selected firm to contract negotiations. During the negotiations, the EA may only make minor changes in the TOR, the consultant’s inputs, and the quantities of expenses. The EA cannot change the consultant’s remuneration and expenses. A lump sum contract may be considered.

(xii) If the negotiation succeeds, award the contract; otherwise, obtain the required approval for inviting the next ranked firm to negotiate, and repeat the process from step (xi).

(xiii) Issue a notice-to-proceed to the contracted firm for mobilizing the team. (xiv) Return the unopened financial proposals to consultants whose technical proposals

scored less than 750 points. (xv) Notify all competing/participating firms of the contract award and, if so requested,


iv. Least-Cost Selection (LCS)

146. LCS is a selection method that initially determines if the technical proposals of the shortlisted firms are technically qualified, followed by the selection of the firm proposing the lowest price.

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147. LCS is the most appropriate selection method for standard assignments of a value normally less than $100,000 (for example, audits, engineering design/supervision of simple projects and simple surveys), where well-established practices and standards exist.

148. For LCS, the EA follows 15 steps:

(i) Refer to the consultant section of the Procurement Plan and obtain any required approval.

(ii) Advertise the assignment and receive EOIs. (iii) Prepare the long list, shortlist, evaluation criteria, and RFP, and obtain the required

approval. (iv) Send the RFP to shortlisted firms and invite their technical and financial proposals

in separate sealed envelopes following the RFP submission requirements and deadline. The EA may clarify or amend the RFP and TOR.

(v) Receive proposals and securely store the financial proposals, which remain unopened until the public opening.

(vi) Open and evaluate the technical proposals using the RFP evaluation criteria and scoring system, and obtain any required approval for the technical evaluation results.

(vii) Notify all firms whose technical proposals failed to obtain the minimum qualifying score (750 points) about such failure, and invite firms whose technical proposals received a score of at least 750 to the public opening.

(viii) Conduct the public opening of financial proposals, following the same procedure used for the public opening under QCBS.

(ix) Evaluate the financial proposals and verify the price of each, following the same procedure used for financial evaluation under QCBS.

(x) Prepare an evaluation report to recommend selecting the firm with the responsive technical proposal and the lowest price and obtain any required approval.

(xi) Invite the selected firm to contract negotiation. During the negotiation, the EA may only make minor changes to the TOR, the consultant’s inputs, and the quantities of expenses. The EA cannot change the consultant’s remuneration and expenses. Lump sum contract may be considered.

(xii) If the negotiation succeeds, award the contract; otherwise, obtain the required approval for inviting the next ranked firm to negotiate, and repeat the process from step (xi).

(xiii) Issue the notice-to-proceed to the contracted firm for mobilizing the team. (xiv) Return the unopened financial proposals to consultants whose technical proposals

scored less than 750 points. (xv) Notify all competing/participating firms of the contract award and, if so requested,


v. Consultants’ Qualifications Selection (CQS)

149. CQS is a selection method based on consulting firms' qualifications, reflected in the Expressions of Interest (EOIs) submitted by firms in response to the EA's advertisement.

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150. CQS may be used normally for assignments of less than $200,000 when:

(i) highly specialized expertise is required, such as from “boutique” consulting firms with depth of expertise in specific areas;

(ii) recruitment time is critical and the assignment is short-term; (iii) few consultants are qualified; and (iv) preparing and evaluating competitive proposals is unjustified.

151. CQS simplifies the selection of a consulting firm by requesting amplified and detailed EOIs in a standard template, and by inviting the best-qualified consultant based on the EOIs to submit a combined technical and financial proposal. The firm will be engaged if the proposal meets the requirements and if the negotiation succeeds. 152. CQS quickly selects a consulting firm based on the firm's qualifications. For CQS, the EA follows 10 steps:

(i) Refer to the consultant section of the Procurement Plan and obtain any required approval.

(ii) Prepare an invitation for EOIs. The invitation contains (i) specific requirements for EOIs (such as, project experiences, regional/country experiences, and key personnel available for the assignment); (ii) specific EOI format; (iii) criteria for assessing EOIs; and (iv) deadline for submitting EOIs.

(iii) Advertise the invitation with the TOR and request submission of amplified EOIs. (iv) Whenever possible, establish a shortlist of at least three firms by ranking the EOIs

based on the evaluation criteria and obtain any required approval. (v) Send the RFP to the first ranked firm and request a technical and a financial

proposal. (vi) Receive proposals. (vii) Open and evaluate the technical proposal using the RFP evaluation criteria and

scoring system. If the technical proposal is unacceptable, repeat step (v) by inviting the next ranked firm to submit a technical and a financial proposal. If the technical proposal is acceptable, review the financial proposal submitted by the firm and obtain any required approval for selecting the firm.

(viii) Invite the selected firm to contract negotiation, through telecommunications or electronic communications. Before or during negotiation, the EA may request the firm to substantiate the remuneration rates and expenses if they are higher than the market rates or the EA's cost estimates. ADB may audit the firm's supporting documents.

(ix) If the negotiation succeeds, award the contract; otherwise, the EA may repeat the process from step (v) by inviting the next ranked firm to submit a technical and a financial proposal.

(x) Issue the notice-to-proceed to the contracted firm for mobilizing the team. vi. Direct Contracting (also referred to as Single-Source Selection SSS)

153. The selection of consultants under Direct Contracting does not capitalize on the main benefits of competition, particularly with respect to quality and cost. Direct Contracting lacks transparency and may increase the risk of unacceptable recruitment practices. Therefore, justification for Direct Contracting is closely scrutinized to ensure adherence to principles of economy, efficiency, and equal opportunity for all qualified consultants.

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154. Direct Contracting is appropriate

(i) for tasks that represent a natural continuation of previous work performed by the firm;

(ii) in emergencies, such as responding to disasters and for consulting services required immediately following the emergency;

(iii) usually for small assignments ($100,000 or less, if a firm is engaged); or (iv) when only one firm or individual is qualified, available, or has exceptional

experience for the assignment. 155. When an EA proposes to use Direct Contracting to select a firm for an assignment, it should, via the Project Unit, provide adequate justification, to PPFD, together with the identification of the firm, in the concept paper (CP), TA report or the Report and Recommendation of the President (RRP), as the case may be, for Management/Board approval. 156. When an EA proposes to use Direct Contracting to select an individual consultant for an assignment it should, via the Project Unit, provide adequate justification to PPFD, and submit a recommendation for Direct Contracting to the relevant PPFD director for approval. 157. After approval, the EA asks the consultant to submit a technical proposal and a financial proposal at the same time. The EA reviews the technical proposal to ensure it is adequate, and negotiates a contract with the firm. The threshold for the CSC may be waived by the relevant PPFD director.

C. Contract Types 158. The following paragraphs discuss the standard ADB contract forms. The EA uses the standard ADB contract form with minimum changes, acceptable to ADB, for specific country and project issues. When using ADB’s standard contract forms, changes may be made to the special contract conditions but not to the general contract conditions, unless cleared by the Office of the General Counsel (OGC). 159. Selecting the contract form depends on (i) the type of assignment, (ii) whether the scope and output are definable, and (iii) the distribution of risks between the parties.

i. Time-Based Contract

160. ADB and its Borrowers commonly use this contract form when they anticipate that the scope or length of service may be adjusted during contract implementation. This may occur because the service involves activities of third parties that may vary the completion date. This type of contract is widely used for complex studies, supervision of construction, advisory services. Payments are for agreed daily or monthly rates for the consultant (normally named in the contract) and for reimbursable items using actual expenses and agreed unit prices. This contract includes a maximum amount of total payments to the consultants. This ceiling amount includes a contingency for unforeseen work and duration, and price adjustments. The EA monitors the contract to ensure the assignment progresses satisfactorily and consultants’ payments are made as in the contract.

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ii. Performance-Based Contract 161. A performance-based contract may be used for assignments for which a set of performance indicators can measure the consultant output. Consultant payments may vary based on consultant performance. Bonuses for timely or excellent delivery and penalties for delayed delivery and less than satisfactory quality may be used when the performance standards can be clearly and quantitatively defined. Contract milestones need to be specified with performance indicators for effective monitoring. The milestones and indicators to verify their achievement are agreed with the consultant and/or borrower during contract negotiations.

iii. Framework Agreements 162. Framework agreements are used when a number of similar consultancy assignments are envisaged. A framework agreement is competitively procured and agreement is reached with a number of empaneled firms on key contractual terms and conditions in advance of the need for any services. When services are required one of the empaneled firms is selected and a type of contract known as a call-off is issued which draws upon the terms agreed in the framework agreement. Refer to the Guidance Note Framework Agreements for Consulting Services.

iv. Lump Sum Contract

163. Lump sum contracts are for straightforward assignments with clearly defined scope of work, service duration, and consultant outputs. This includes simple studies, design of standard or common structures, and preparation of data processing systems. Prices include all costs and normally cannot be changed during contract implementation. Payments under the contract are linked to achieving milestones specified in the contract.

D. Confidentiality and Absence of Undue Influence in the Selection Process 164. From the shortlisting date until the EA signs a contract with a consultant, the selection and recruitment process shall remain confidential. The EA only discloses details to staff who are officially involved in the selection process. Any violation of the confidentiality of the selection and recruitment process, or attempt to influence selection may violate ADB’s Anticorruption Policy (1998, as amended to date) and ADB’s Integrity Principles and Guidelines (2015, as amended from time to time). No EA staff may discuss the selection and recruitment with the competing or participating consultants. If, at any time, it is determined that there has been a violation of ADB’s ADB’s Anticorruption Policy (1998, as amended to date) and ADB’s Integrity Principles and Guidelines (2015, as amended from time to time), ADB may reject a proposal for award and take other remedial action, in accordance with paragraph 16 of this SI (on anti-corruption).

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V. CONSULTANT RECRUITMENT BY THE EXECUTING AGENCY

A. Responsibilities of the EA, ADB’s Project Unit, and ADB’s Procurement Staff 165. Part II of this SI defines the general responsibilities of the EA and ADB in recruiting consulting services that the EA administers. Specific responsibilities for EAs, ADB Project Units, and ADB procurement staff follow: 166. The EA

(i) prepares the procurement plan for the entire project under PAI 1.05; related draft terms of reference (TOR); and cost estimates under Part III of this SI.

(ii) undertakes recruitment actions including shortlisting, preparing and issuing requests for proposal (RFP) when applicable; evaluating the proposals when proposals are required; and negotiating and signing the contract with the selected consultants. Part IV of this SI describes the general procedures for these actions and this SI describes specific procedures for EAs. Under certain circumstances, when justified, the EA may request ADB to conduct some recruitment actions on its behalf, in accordance with Part II of this SI.

(iii) supervises and manages the implementation of the consultant contract (see below).

(iv) provides data required for the consultant recruitment activity monitoring (CRAM) schedule and monitors the CRAM process, taking corrective action as necessary to avoid delays.

167. ADB’s Project Unit

(i) assists the EA in preparing the procurement plan, draft TOR, and cost estimates. It then incorporates these in the project administration manual (Section VI. C) for loan and grant projects, or the Concept/TA Paper for Delegated Technical Assistance.

(ii) reviews the shortlist, draft RFP (when applicable), proposal evaluation report (when applicable), EA’s recommendation for contract award, and draft negotiated contract. It seeks approval from PPFD, when required, and notifies the EA of ADB’s decisions or comments on these submissions, in accordance with this SI.

(iii) assists the EA in managing the implementation of the consultant contract and, in consultation with PPFD, reviews and approves the EA’s submissions on issues related to contract implementation (such as contract variations).

(iv) ensures that prospective consultants selected by the EA are not on ADB’s sanctions or suspensions lists.

(v) provides data required for the CRAM schedule and monitors the CRAM process, taking corrective action as necessary to avoid delays.

168. For the purpose of this SI, ADB’s procurement staff comprise the PPFD Loan Consulting Services Unit (LCU), PPFD country procurement specialists, and national procurement officers from ADB resident missions. ADB procurement staff handle and communicate with Project Units and EAs on matters related to consulting services that EAs administer. ADB procurement staff

(i) advise and support Project Units in reviewing EA submissions for the consulting services that EAs administer.

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(ii) comment on EA submissions and review those within the approval threshold of PPFD. If the approval is not granted or is granted with conditions, ADB procurement staff advise specific actions for that Project Unit or EA.

(iii) communicate with the EA (through the Project Unit) on actions the EA needs to take for recruiting consulting services it administers.

(iv) advise the Project Unit during exceptional or emergency cases. (v) assist PPFD staff in charge of capacity building to develop training materials on

consultant recruitment for the accreditation of Project Units in the review of EA consultant selections under ADB’s Procurement Accreditation Skills Scheme (PASS).

(vi) provide data required for the CRAM schedule, monitor the CRAM process, and advise on corrective actions to avoid delays, when necessary.

B. Advance Contracting

169. To shorten the time for consultant recruitment, the EA may use advance contracting as part of the normal procedure if (i) ADB management approves the further processing of the project; (ii) TOR and budget for the assignment are sufficiently clear to permit consultants to submit informed expressions of interest (EOIs) and, if shortlisted, technical and financial proposals; and (iii) PPFD has endorsed the project procurement plan for recruiting the consultants. This means that the EA may draft the RFP, shortlist consultants, and evaluate them, if the recruitment advertisement has been posted and EOIs have been received. However, the EA may not sign a contract with a firm before the financing agreement for the project has been declared effective, unless ADB management has also approved retroactive financing. The Project Unit should advise the EA that advance contracting is part of the normal procedure, and that ADB’s support for advance contracting or retroactive financing does not commit ADB to approve the loan/grant project or to finance the recruitment costs. 170. The EA may start contract negotiations with the selected consultant after ADB’s Board of Directors approves the project and when its financing agreement is about to become effective. If retroactive financing has not been approved for the project, the contract should not be signed until the financing agreement becomes effective.

C. Advertising (Consulting Services Recruitment Notice) 171. The Procurement Regulations for ADB Borrowers (2017) and Part IV of this SI outline the general requirements for posting a consulting services recruitment notice (CSRN). All open competitive bidding (OCB) consulting services assignments financed by ADB where international advertising is suitable or required must be advertised on ADB’s Consultant Management System (CMS) using a CSRN, except in exceptional circumstances with strong justification, where PPFD may waive the requirement. For OCB consulting assignments that are likely to be adequately serviced by expertise available through national consultants (and are unlikely to attract foreign competition), publication may be in the national press, official gazette, or a free and publicly accessible website. Such national OCB selections are typically for low-value assignments. Advertisement in ADB’s CMS using the CSRN is strongly encouraged for any such national consulting assignments. For limited competitive bidding and direct contracting, advertising is not required and the designated firm(s) or individual consultant(s) may be requested to submit EOIs by invitation. 172. The EA prepares the CSRN with support from the Project Unit. The Project Unit decides whether its approval of the draft CSRN is required prior to posting, taking into consideration the

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project’s procurement risk classification and the value and characteristics of the proposed assignment. Project Units may consult with ADB procurement staff for advice on this if necessary. 173. When finalized, the EA, via CMS, posts the CSRN in the Business Opportunities section of ADB’s website on CMS before shortlisting. For this purpose, the EA sends an e-mail to [email protected], with a copy to the concerned Project Unit staff, stating all projects under its administration. Once PPFD receives this, it pre-registers the EA so that an account may be created for the EA for the CSRN posting. The EA’s user ID and password will be emailed to the EA. The usual posting time for each CSRN for firms is not less than 15 calendar days when using an electronic method with electronic submission and collation of all expressions of interest (EOIs), such as ADB’s CMS, or 30 calendar days in other cases. PPFD may endorse a shorter advertising period, normally a minimum of seven calendar days if electronic submission of EOIs is used (e.g., through CMS), taking into consideration the procurement risk and value of the selection. For individual consultants, the normal advertisement period is not less than seven calendar days. In addition to the required CSRN posting for international OCB selections, the EA is allowed to advertise the recruitment in other appropriate and publicly-accessible media if desired, including local newspapers, websites, or international trade publications.

D. Consultant’s Expression of Interest 174. To ensure that expressions of interest (EOIs) contain sufficient and consistent information to allow EAs to decide on the shortlisting, EAs request EOIs using the standard EOI form. The Business Opportunities website has a link to standard EOI forms for loans/grants that firms and individual consultants can download, complete, and send to the EA. The CSRN template also provides the EA address (preferably including an e-mail address), where consultants can write to obtain a standard EOI form. The standard EOI form may be submitted as hard or electronic copy. By requiring submission of a standard EOI form, the EA can evaluate all consultants for shortlisting using uniform documents containing the same type of information. National regulations and the EA may require additional information from national consultants such as company registration and tax reference numbers to be submitted at the EOI stage. This information can be included as an appendix to the standard EOI form. 175. Part IV of this SI explains how consultants should prepare EOIs and how they should be evaluated during shortlisting.

E. Recruiting Consulting Firms – Prior and Post Review (Sampling) 176. The Procurement Regulations for ADB Borrowers (2017) allow for prior and post review (sampling) of consulting services transactions (Appendix 6, paras 7-14). The agreed review arrangement for each package is to be indicated in the procurement plan. ADB’s decision to grant post review (sampling) will be based on an assessment of the executing agency during the country, sector/agency procurement risk assessment, which will normally identify the agency’s capacity to take on greater procurement responsibility. Factors in making the decision should include the value, nature, and distribution of the consulting services, the procurement risk level and the executing agency’s documented track record in the selection and recruitment of consultants.

F. Prior Review 177. Under prior review, documentation is reviewed and approved by ADB before moving on to the next step in the selection process. The EA follows the general procedures in, Parts III and IV of this SI, and the following specific requirements to submit documents for each major step of

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the recruitment process for ADB’s review and approval. The review is conducted in two or three steps, depending on the selection method used. ADB may, following its procurement risk assessment, agree to waive one or more of the submissions for prior review or permit the Borrower to proceed to the next stage of the procurement process whilst ADB reviews the submission, reserving the right to require the Borrower to carry out any necessary remedial action which may be required, if it is satisfied that the EA requires only minimal supervision. Appendix 2 presents a simplified flow chart of the key steps in the process.

i. Preparing Cost Estimates, Shortlist, and RFP – Submission 1 178. The EA establishes a consultant selection committee (CSC) in accordance with Part IV of this SI before initiating the recruitment. Each CSC member signs the standard Statement on Ethical Conduct form, available on ADB’s website. The EA works on the following tasks, with support from the Project Unit when needed:

(i) Preparing a budget and cost estimates for the selection; (ii) Preparing the shortlisting criteria (except for Direct Contracting / SSS); (iii) Generating a long list primarily based on the EOIs received (except for Direct

Contracting), and preparing the shortlisting criteria; (iv) Preparing a shortlist in accordance with the shortlisting criteria and eligibility

requirement in Part II of this SI (except for Direct Contracting); (v) Preparing the narrative technical proposal evaluation criteria or (EOI evaluation

criteria, if the recruitment is based on Consultants’ Qualifications Selection (CQS)); (vi) Preparing an RFP, which includes the data sheet, summary evaluation sheet form,

personnel evaluation sheet form, TOR, and draft contract; and (vii) Ensuring any necessary ADB approvals to use the CQS or Direct Contracting

methods, or use limited competitive bidding. 179. The EA then e-mails the following documents, usually referred to as “Submission 1”, to ADB (through the Project Unit) for approval: (i) cost estimate / budget; (ii) minutes of EA’s CSC meeting(s) including the shortlisting criteria, long list, proposed shortlist (for all selection methods except Direct Contracting), and signed statements on ethical conduct; (iii) narrative technical proposal evaluation criteria; (iv) draft RFP with the data sheet, summary evaluation sheet form, personnel evaluation sheet form, TOR, and draft contract; and (v) a copy of ADB’s approval to use the Direct Contracting or CQS selection methods, or to use limited competitive bidding, if applicable and if not stated in the project’s Report and Recommendation of the President (RRP) or procurement plan. The EA uses ADB’s standard submission form (Submission 1) available on ADB’s website or as provided by the Project Unit. Different versions of the form are available depending on the selection method used. The EA submits the relevant submission form in MS Word format. This also includes a checklist of documents that the EA completes. This submission applies to all selection methods for recruiting firms, with certain exceptions for CQS and Direct Contracting as described above.

ii. ADB's Review of the EA’s Submission 1 180. Upon receipt of the EA’s Submission 1, the Project Unit ensures that the EA has completed all documents required in the submission form. If any document is missing, the Project Unit immediately asks the EA to submit these to ADB. The review process is then determined by the relevant approval authority as per paras 202 to 204 of this SI.

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181. For contracts within the approval authority of the Project Unit, the Project Unit reviews the submission and provides any comments in the comment fields of ADB’s standard submission form. The Project Unit may also directly input corrections in the EA’s submitted documents, provided it explains them in the comment fields. The Project Unit director then unconditionally approves, conditionally approves, or disapproves the submission and sends it to the EA. 182. For contracts requiring PPFD approval, as per paras 202 to 204 of this SI, the Project Unit immediately forwards an electronic copy of the completed submission to the LCU, with a copy to other relevant ADB procurement staff. LCU reviews the submission and provides any comments in the comment fields of ADB’s standard submission form, consulting with other relevant ADB procurement staff as necessary. LCU may also directly input corrections in the EA’s submitted documents, provided it explains them in the comment fields. The Project Unit and the LCU conduct their reviews in parallel, and the Project Unit submits its comments to the LCU for consolidation. Once all comments have been consolidated, the authorized PPFD staff unconditionally approves, conditionally approves, or disapproves the submission and forwards it to the Project Unit who will send it to the EA. 183. In either case, the EA may be requested to revise and resubmit Submission 1 if there are material concerns with its submission. Each version of every submission has to be dated. ADB states in the standard submission form whether it approves a particular submission from the EA. For complex issues, ADB procurement staff or the Project Unit may request PPFD to create an internal ADB CSC to review the documents and resolve any pending issues. 184. The Project Unit provides and updates the data required for the CRAM process alongside its review of Submission 1, and forwards it to the EA for monitoring purposes. ADB procurement staff monitor the CRAM process when necessary and coordinate with the Project Unit to ensure that the review of the EA’s submission is accomplished within the allotted period.

iii. Sending RFP to Consulting Firms 185. After ADB approves Submission 1, the Project Unit authorizes the EA to send official copies of the RFP to the shortlisted consultants with a copy to the Project Unit. The Project Unit requests PPFD, via email to [email protected], to post the shortlist on the ADB website, as described in Submission 1. The EA sends any answers, information, or amendments to all shortlisted consultants simultaneously, with copy to the Project Unit, without disclosing the source of the query. Any proposed amendment to the RFP requires ADB’s prior approval, issued by the Project Unit after consultation with PPFD. 186. To give shortlisted firms reasonable time to address amendments to the RFP in their proposals, the EA may extend the deadline for submitting proposals, subject to ADB's prior approval. Extensions should generally not be granted near to the current deadline and must not be granted with the intention or effect of giving an unfair advantage to a particular shortlisted consultant.

iv. Evaluating Technical Proposals and Preparing Evaluation Report – Submission 2

187. The CSC of the EA forms to evaluate technical proposals received following the procedures in Part IV of this SI. The CSC prepares minutes of its evaluation meeting and a report of its evaluation, describing the strengths and weaknesses of each proposal as well as any below average scorings awarded for each proposal.

mailto:[email protected]

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188. Unless the EA’s procurement plan provides otherwise, the EA then e-mails the following documents, referred to as “Submission 2”, to ADB (through the Project Unit) for approval: (i) the RFP as issued; (ii) copies of all requests for clarification, answers provided, and RFP amendments (if any) with acknowledgements of receipt from shortlisted consultants (not applicable for Direct Contracting or CQS); (iii) copy of the original record of opening of technical proposals (not applicable for Direct Contracting or CQS); (iv) minutes of the EA’s CSC technical evaluation meeting(s) including narrative comments on each technical proposal; (v) filled out summary and personnel evaluation sheets; (vi) copy of the confirmation of withdrawal from any consultant that did not submit a proposal (if relevant) (not applicable for Direct Contracting or CQS); and (vii) notes on the EA’s examination of the firm’s financial proposal – only for CQS and Direct Contracting. The EA uses ADB’s standard submission form (Submission 2) available on ADB’s website or as provided by the Project Unit. Different versions of the form are available depending on the selection method used. The EA submits the relevant submission form in MS Word format. This also includes a checklist of documents that the EA completes. This submission applies to all selection methods for recruiting firms; with the exception that for CQS and Direct Contracting, the technical evaluation documents are submitted together with the financial evaluation documents.

v. ADB's Review of the EA’s Submission 2 189. Subject to paras 202 to 204 of this SI, the procedures and requirements in paras 180 to 186 of this SI apply to reviewing Submission 2. However, for CQS and Direct Contracting, the review of the EA’s technical evaluation documents occurs with the review of the EA’s financial evaluation documents.

vi. Opening and Evaluating the Financial Proposal(s), Ranking the Proposals, and Recommending Contract Award – Submission 3

190. Cost-based selections (quality- and cost-based selection (QCBS), fixed budget selection (FBS), and least-cost selection (LCS)) require public opening of the financial proposals. After ADB approves Submission 2, the Project Unit authorizes the EA to proceed with public opening of financial proposals for QCBS, FBS, and LCS. These are opened and evaluated in accordance with Part IV of this SI. The quality-based selection (QBS) method requires the separate submission of the first-ranked firm’s financial proposal, which is submitted and opened in accordance with Part IV of this SI. CQS and Direct Contracting require that the financial proposal be submitted along with the technical proposal, but it is only reviewed in preparation for contract negotiations. Such proposals are opened and reviewed in accordance with Part IV of this SI. 191. Unless the EA’s procurement plan provides otherwise, the EA then e-mails the following documents, referred to as “Submission 3”, to ADB (through the Project Unit) for approval: (i) the completed MS Excel financial evaluation file, including data entry page, record of opening of financial proposals (Form FEV 1), financial proposals price adjustments (Form FEV 2), and summary evaluation sheet and final ranking (Form FEV 3); and (ii) the minutes of the EA’s CSC financial evaluation meeting(s) including comments and justification for each price adjustment, if any, and narrative summary of evaluation of financial proposals and proposed final ranking. The EA uses ADB’s standard submission form (Submission 3) available on ADB’s website or as provided by the Project Unit. The EA submits the submission form in MS Word format. This submission requirement applies to all selection methods for recruiting firms, except QBS; with the exception that for CQS and Direct Contracting, the technical evaluation documents are submitted

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with the financial evaluation documents. This also includes a checklist of documents that the EA completes.

vii. ADB's Review of the EA’s Submission 3 192. Subject to paras 202 to 204 of this SI, the procedure and requirements in paras 180 to 186 of this SI apply to reviewing Submission 3 for QCBS, FBS, and LCS. QBS selections do not use the Submission 3 form and the EA liaises directly with the Project Unit on any matters related to requesting and examining the financial proposal from the first-ranked firm. Part IV of this SI gives more information on QBS selection procedures. ADB procurement staff may provide advice on this as requested. CQS and Direct Contracting selections also do not use the Submission 3 form. The Submission 2 form for CQS and Direct Contracting selections includes the EA’s financial evaluation documents, as described in paragraph 188 of this SI.

viii. Preparing for and Conducting Contract Negotiations 193. Before contract negotiations, the EA must confirm the eligibility and performance records of each member of the team proposed by the selected firm. As part of the review of Submission 3, ADB will have reviewed the team of experts proposed by the winning entity against ADB’s sanction and suspension list due to integrity violations or poor performance, as well as ADB-required Integrity Due Diligence Checks. 194. After ADB approves Submission 3 (or Submission 2 for QBS, CQS, and Direct Contracting), the Project Unit authorizes the EA to invite the first-ranked consultant to negotiate a contract with the EA, in accordance with Part IV of this SI. 195. At contract negotiations, the selected consultant will identify the authority of its representative to negotiate and sign the contract, provide the entity’s legal certificate of incorporation or establishment, confirm the availability of its proposed personnel, provide clarifications and corrections to its proposal as requested by the EA, and replace personnel when appropriate, in accordance with Part IV of this SI. The EA confirms the support / facilities it will provide to the consultant and their mutual responsibilities, and finalizes the amounts to be used under the contract for provisional sums, if any. When negotiations are conducted face-to-face (in person or by video link), the EA prepares minutes of the important points of agreement. 196. The EA should obtain the prior approval of ADB before agreeing with the consultant on any changes to the General or Specific Conditions of Contract from those approved in the Draft RFP at Submission 1. 197. If the EA and the consultant cannot agree, the EA may terminate the current negotiations with ADB’s prior approval, and start negotiations with the next-ranked consultant, and so on until an agreement is reached. The Project Unit requests PPFD's endorsement each time the EA requests to terminate contract negotiations and to start negotiations with the next-ranked firm.

ix. Finalizing the Contract 198. Once contract negotiations are successfully completed, the EA and the consultant sign the contract and the EA submits a copy of the signed contract to ADB (through the Project Unit). The EA also submits the following information to ADB (through the Project Unit, or directly to: [email protected]) for posting on its website:


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(i) names of the shortlisted consultants that submitted proposals; (ii) scores of the respective technical proposals; (iii) prices in the respective financial proposals (for QCBS and LCS); (iv) overall ranking (for QCBS); (v) name of the consultant selected; and (vi) cost, duration, and summary scope of the contract.

199. After receiving the signed contract, the Project Unit verifies that it is substantially the same as the draft contract it approved in Submission 1. The Project Unit sends copies of the signed contract to PPFD, CTL, and OGC for their files and future record. 200. After completing the selection, the EA debriefs the shortlisted consultants, if so requested by the consultant concerned, regarding how their ranking was determined. The EA is required to address any procurement-related complaint objectively and in a timely manner, with transparency and fairness. Consultants unsatisfied with the debriefing provided by the EA, or whose questions have not been answered by the EA, may contact ADB to request a debriefing or to submit a complaint.

x. Issuing Notice to Proceed 201. Once the conditions for effectiveness listed in the Special Conditions of the Contract are met, the EA then makes the contract effective by sending the consultant a written notice to proceed, copied to ADB (through the Project Unit). Consultants must not start work prior to receiving this notice to proceed.

xi. Approving Authorities for EA Submissions 202. Notwithstanding paras 165 to 168, 160 to 184, 189 and 192, all Project Units shall review and approve Submissions 1, 2, and 3 for all consulting firm contracts valued at $5 million and below, provided the reviewing staff are duly accredited under ADB’s PASS. Project Units also review and approve submissions related to individual consultant selection. The Project Unit director approves the unit’s reviews of all EA submissions. 203. PPFD shall review and approve submissions for consulting firm contracts valued above $5 million. PPFD will also review and approve contracts below $5 million if Project Unit lacks PASS-accredited staff. Requests to waive the CSRN advertisement process also require PPFD approval. PPFD directors or their authorized representatives approve submissions. Part IV of this SI lists PPFD’s approving authorities for CSRN waivers. 204. PPFD regularly assesses Project Unit capacity and performance to update the review thresholds and ascertain the readiness of Project Units to fully review and approve Submissions 1, 2, and 3 under specific circumstances. PPFD periodically reviews thresholds for each Project Unit and compares assessed Project Unit capacity.

G. Post Review (Sampling) 205. Under post review (sampling), ADB does not give prior approval to the EA at the stages outlined in the previous paragraphs. Instead, consulting contracts will be post reviewed by ADB in accordance with the methodology set out in the procurement plan. The Project Unit and/or PPFD shall review the selection documentation of a sample of the contracts awarded by the Borrower to confirm that ADB’s procurement principles were met (following the same approval

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authority thresholds as for prior review in paras 202 to 204 of this SI). The method for selecting contracts for review will be set out in the procurement plan. This approach will generally be applied where numerous contracts of lower value are issued by the executing agency and ADB will base its review on a random sample of contracts. In the event that a small number of larger contracts are to be post reviewed, the ADB may choose as its sample some or all of the contracts. 206. If the post review (sampling) is not completed within six months after receipt of the documents, the EA may assume that ADB has no objection to the award of contract. Post review (sampling) may be conducted as part of the project review missions. The EA will still need to establish a CSC following the same process as for prior review. 207. When using post review (sampling), the EA is still responsible for conducting sanctions checks at shortlisting, technical evaluation, and contract award stages of the selection process. The EA should obtain access to the complete ADB sanctions list, and the ADB Project Unit should assist the EA in obtaining the access. 208. The EA should also provide ADB with sufficient information to ensure that proper ADB required integrity and performance-related due diligence checks are performed. As soon as the EA completes the shortlisting of firms, it should submit to the Project Unit a list of all shortlisted firms (lead firms, sub-consultants, JV partners) to confirm that none are sanctioned by ADB for integrity violations in accordance with the ADB’s Anticorruption Policy (1998, as amended to date) and ADB’s Integrity Principles and Guidelines (2015, as amended from time to time) or suspended on performance grounds by ADB. The Project Unit will conduct the necessary checks and revert to the EA directly before it finalizes the shortlist and issues the RFP. As soon as it completes the evaluation and ranking of proposals, the EA will also submit to the Project Unit the name of the first ranked firm (lead firm as well as all sub-consultants and JV partners) and the list of all experts included in the first ranked firm’s proposal to confirm that none are sanctioned by ADB for integrity violations or suspended on performance grounds by ADB. The Project Unit will conduct the necessary checks and revert to the EA directly before it awards the contract. 209. If the EA fails to conduct the required sanctions checks by itself at the shortlisting, technical evaluation, and contract award stages, or fails to provide sufficient information for the ADB Project Unit to conduct the required integrity and performance-related due diligence before a contract is awarded, and one or more firms or experts are found to be sanctioned or suspended by ADB, ADB will be entitled to take action as appropriate, including declaring noncompliance. 210. When the EA is ready to issue the contract, it follows the procedure outlined in paras 198 to 201. When using post review (sampling), the Project Unit verifies that the signed contract is substantially the same as the draft it reviewed within the RFP. 211. If through post review (sampling), ADB determines that the consulting services were not procured in compliance with the agreed procedures as reflected in the procurement plan and these SI, it will take a proportionate approach to the non-compliance and may take appropriate actions consistent with the terms of the loan agreement or grant. Since noncompliance may mean refunding if amounts have been disbursed, the Project Unit must make sure that EAs submit documents promptly and review them as soon as practicable. Adverse findings related to integrity violations must be reported to OAI, and may lead to a finding of noncompliance. Other serious procedural irregularities or non-compliance with procurement principles may also lead to a finding of noncompliance, while irregularities that are not of a fundamental nature will be relayed to the EA for possible appropriate action under national laws, rules, and regulations.

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212. For any selection where the EA uses RFP documents other than the latest version of the ADB harmonized standard request for proposals available on the ADB website, ADB will conduct full prior review of the selection in question. In the event that the EA does not wish to be subject to post review (sampling), it may instead elect to follow the prior review procedure.

H. Recruiting Individual Consultants – Prior and Post Review (Sampling) 213. The EA follows the general procedures in Part IV of this SI. The EA then follows the specific requirements below for each step of the recruitment process, based on the agreed prior or post review (sampling) arrangement for the individual consultant selection in the procurement plan. The decision to follow post review (sampling) is based on the same criteria as for consultant firm selections. Appendix 3 presents a simplified flow chart of the key steps in the process using prior review arrangements.

i. Prior Review

a) Selecting and Approving the Shortlist 214. The EA prepares a shortlist of at least three qualified candidates, except when proposing to use direct contracting of a single candidate or limited competitive bidding. At the EA’s request, the Project Unit may provide the names and qualifications of suitable candidates from the CMS. The EA may also advertise externally for suitable candidates, in addition to the CSRN posting requirement in Part IV of this SI. 215. The EA ranks the candidates and submits their names and qualifications, with the draft contract, to ADB (through the Project Unit) for approval. An optional “Submission 1” form is available on the ADB website that EAs may use for this purpose. The Project Unit

(i) reviews the EA’s submission documents; (ii) for proposals to undertake direct contracting of a single candidate, considers the

EA’s rationale provided and approves or rejects the proposal based on this rationale, consults with ADB procurement staff, if necessary, after identifying concerns;

(iii) requests comments from CTL, OGC, and/or other departments or offices after identifying concerns;

(iv) approves the EA’s submission or identifies needed revisions, changes, or amendments that the Project Unit considers necessary;

(v) prepares a note to file summarizing the issues raised and the decisions taken; and

(vi) advises the EA of ADB’s decision.

b) Negotiating the Contract 216. After ADB approves the ranked shortlist and the draft contract, the EA negotiates with the first-ranked candidate. If the negotiations fail, the EA obtains the Project Unit’s approval to terminate the current negotiations and start negotiations with the next-ranked candidate, and so on until agreement is reached. 217. Once contract negotiations are successfully completed, the EA and the consultant sign the contract and the EA submits a copy of the signed contract to ADB (through the Project Unit).

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An optional “Submission 2” form is available on the ADB website that EAs may use for this purpose.

c) Finalizing the Contract 218. After receiving the signed contract, the Project Unit verifies that it is substantially the same as the draft contract it approved in Submission 1. The Project Unit sends copies of the signed contract to PPFD, CTL, and OGC for their files and future record.

d) Issuing Notice to Proceed 219. The EA then makes the contract effective by sending the consultant a written notice to proceed, copied to ADB (through the Project Unit). Consultants must not start work prior to receiving this notice to proceed.

ii. Post Review (Sampling) 220. Under post review (sampling), ADB does not give prior approval to the EA at the stages outlined in the previous paragraphs. Instead, consulting contracts will be post reviewed by ADB in accordance with the methodology set out in the procurement plan. A post review (sampling) approach will normally be followed, depending on the level of risk and the nature of the procurement. The Project Unit reviews the selection documentation of a sample of the contracts awarded by the Borrower to confirm that ADB’s procurement principles were met and submits its endorsement. The method for selecting contracts for review will be set out in the procurement plan. This approach will generally be applied where numerous contracts of lower value are issued by the executing agency and ADB will base its review on a random sample of contracts. 221. If the final post review (sampling) is not completed within six months after receipt of the documents, the EA may assume that ADB has no objection to the award of contract. Post review (sampling) may be conducted as part of the project review missions. 222. When using post review (sampling), the EA is still responsible for conducting sanctions checks at shortlisting stage. The EA should obtain access to the complete ADB sanctions list, and the ADB Project Unit should assist the EA in obtaining the access. The EA should also provide ADB with sufficient information to ensure that proper ADB required integrity and performance-related due diligence checks are performed. As soon as the EA completes the shortlisting, it should submit to the Project Unit a list of all shortlisted individuals (and their affiliated firm, if any) to confirm that none are sanctioned by ADB for integrity violations in accordance with the ADB’s Anticorruption Policy (1998, as amended to date) and ADB’s Integrity Principles and Guidelines (2015, as amended from time to time) or suspended on performance grounds by ADB. The Project Unit will conduct the necessary checks and revert to the EA directly before it finalizes the shortlist. 223. If the EA fails to conduct the required sanctions checks by itself at the shortlisting stage, or fails to provide sufficient information for the ADB Project Unit to conduct the required integrity and performance-related due diligence before a contract is awarded, and an expert is found to be sanctioned or suspended by ADB, ADB will be entitled to take action as appropriate, including declaring noncompliance. 224. Once contract negotiations are successfully completed, the EA and the consultant sign the contract and the EA submits a copy of the signed contract to ADB (through the Project Unit).

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After receiving the signed contract, the Project Unit files it for potential review through post review (sampling) and sends copies of it to PPFD, CTL, and OGC for their files and future record. 225. If through post review (sampling), ADB determines that the consulting services were not procured in compliance with the agreed procedures as reflected in the procurement plan and these SI, it will take a proportionate approach to the non-compliance and may take appropriate actions consistent with the terms of the loan agreement or grant. Since noncompliance may mean refunding if amounts have been disbursed, the Project Unit must make sure that EAs submit documents promptly and review them as soon as practicable. Adverse findings related to integrity violations must be reported to OAI, and may lead to a finding of noncompliance. Other serious procedural irregularities or non-compliance with procurement principles may also lead to a finding of noncompliance, while irregularities that are not of a fundamental nature will be relayed to the EA for possible appropriate action under national laws, rules, and regulations. 226. In the event that the EA does not wish to be subject to post review (sampling), it may instead elect to follow the prior review procedure.

I. Requesting ADB Assistance in Selecting the Consultant 227. When the Borrower/recipient requests ADB in writing to take responsibility for selecting a consultant, the Project Unit consults PPFD and submits the request to the Project Unit’s head of department for approval. The Borrower/recipient should adequately justify such a request and explain its necessity. ADB’s proposed participation in the recruitment should be set out in the procurement plan and the RRP. If the request is made after the loan/grant is approved, it will be regarded as a change in implementation arrangements and will be dealt with in accordance with PAI 5.02. If approved, PPFD informs ADB’s Board of Directors of the change in implementation arrangements in the quarterly portfolio update. In all such cases, ADB generally takes responsibility only for selecting the consultant, and the EA retains the responsibility for negotiating and signing the contract with the consultant, issuing the notice to proceed, and supervising the consultant’s services.

J. Monitoring the Consultant Recruitment Process 228. The EA, the Project Unit, and ADB procurement staff use CRAM for EA-administered consulting services to monitor the activities in consultant recruitment and to avoid delays. A preliminary CRAM schedule for the recruitment based on the anticipated consultant mobilization timetable is included as an annex to the procurement plan. 229. The CRAM schedule identifies the main activities in the recruitment process, the responsible unit, the expected time required for each activity, and the target dates for completing each activity. The EA, Project Unit, and ADB procurement staff complete each activity and monitor the recruitment process. They use CRAM to identify delays and to act promptly to get the recruitment process back on schedule. 230. The Project Unit and the EA are jointly responsible for preparing the project CRAM schedule, monitoring and updating it promptly after each activity is completed, and taking corrective action to avoid delays as necessary. The Project Unit is responsible for promptly recording these updates and actions within ADB’s CRAM system available on the Procurement Review System for contracts approved by PPFD. Doing so is optional for contracts approved by the Project Unit, where the offline, sample CRAM schedules may be used instead (available on

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the ADB website). ADB procurement staff may monitor CRAM schedules and advise corrective actions as necessary. 231. The Project Unit appoints a staff as CRAM coordinator, who coordinates all CRAM related data inputs and updates with ADB procurement staff and the EA. When a planned activity is not completed on schedule, the Project Unit must explain the delay in the CRAM schedule. Project Unit directors monitor recruitment activities for all the loans/grants under their supervision, and act to overcome delays in recruitment.

i. Creating a CRAM Schedule 232. During the loan/grant fact-finding mission, the Project Unit explains the CRAM schedule and process to the EA. The Project Unit gives the EA the sample CRAM schedules (available on the ADB website) and discusses the consultant recruitment schedule. The Project Unit asks the EA to assign staff who will be responsible for maintaining the CRAM schedule and monitoring recruitment. The Project Unit and EA agree on realistic planned dates for each activity, following as closely as possible the “norms” for each activity that are listed in the sample CRAM schedules. Activities can be added or removed from the schedules as necessary, depending on the arrangement agreed in the project procurement plan (e.g., to remove ADB’s prior review of one of the submissions, if agreed). Planned dates and durations shall be entered into the CRAM schedules prior to the start of the first activity and shall not be changed thereafter. 233. When the EA schedules and advises ADB of the date for the CSRN posting (or the date of the first activity, for Direct Contracting or other selections without advertisement), the Project Unit creates a CRAM schedule for the assignment. The Project Unit enters the following information into the schedule for the package:

(i) package number and name (ii) type of selection (firm or individual consultant) (iii) general description of the package (iv) estimated value in USD (v) whether reviewing staff are PASS-accredited (vi) selection method (QCBS, QBS, FBS, LCS, CQS, Direct Contracting / SSS) (vii) type of ADB review (prior review, post review, post review (sampling)) (viii) assignment type (international or national) (ix) mode of EOI submission (fully electronic or mixed (electronic and paper-based)) (x) planned quarter and year that the advertisement will start (xi) type of technical proposal for firms (biodata, simplified, full) (xii) approving authority (Project Unit or PPFD)

234. After creating the new schedule, the Project Unit needs to modify activities as necessary and enter the planned start date of the first activity and the planned duration of each activity. These initial modifications and planned dates shall not be changed once they are entered and confirmed into the schedule. Note that a CRAM schedule is not required if the package is indicated for possible review by ADB using post review (sampling).

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ii. Accessing the CRAM system 235. Project Unit and ADB procurement staff access and update the CRAM schedule within ADB’s CRAM system. The EA accesses the CRAM schedule through communication with the Project Unit. The Project Unit should export and send the schedule to the EA regularly for their inputs.

iii. Monitoring the Recruitment Activities and Updating the CRAM Schedule 236. The designated staff responsible for CRAM within the Project Unit and EA should communicate and share data regularly on the status of each activity in the schedule. At minimum, the Project Unit sends the EA an updated CRAM schedule alongside each formal communication of ADB’s decision on the EA’s submissions for prior review, or alongside key communications between ADB and the EA for post review. 237. The EA staff monitors the recruitment and reports to the Project Unit the date when each activity is completed and the reason for any delays. The ADB Project Unit staff enter this information into the CRAM schedule. When an activity is completed later than the planned date, the EA and the Project Unit take corrective action to get recruitment back on schedule.

iv. Maintaining CRAM Records 238. When the recruitment process is completed, the Project Unit makes a hard copy of the CRAM and retains it in the project file. 239. PPFD monitors the use of CRAM, maintains the CRAM system and offline sample CRAM schedules, analyzes CRAM data, and proposes recommendations for streamlining the recruitment process. Staff should report any problems with the system or offline CRAM schedules to PPFD.

K. Consulting Contract Management

i. Implementation Responsibilities 240. The EA is responsible for supervising and administering consultant contracts. It is important for the EA to monitor the consultants’ progress and promptly discuss any problems that arise. 241. The ADB Project Unit should advise and assist the EA, as necessary, during the recruitment process and while the consultants are completing their assignments.

ii. Contract Variations 242. Contract variations are written changes to the consultant’s contract on which the EA, consultant and ADB agree. They may change an item in the contract or add a new item. Consultants generally propose most contract variations, but the EA may also propose variations. 243. The EA approves all variations in individual consultants’ contracts, and all variations in contracts with consulting firms, and may consult PPFD on an as-needed basis. OAI endorsement should be sought and obtained prior to approving any contract variation to a sanctioned firm or individual. The Borrower shall seek ADB’s no-objection, from the Director of the User Unit

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department, where any modification would individually or in aggregate increase the original price of the contract by more than 15%.

iii. Terminating a Consultant’s Contract 244. When problems arise during the contract implementation, the Project Unit advises the EA to generally follow the procedures stipulated in the contract. The EA should discuss the problems with the consultant and the EA, with the intention of reaching an agreement on solutions. When the EA identifies a problem with the consultant’s performance, the EA decides what action is appropriate. The EA can follow a three-step procedure to resolve performance problems:

(i) First, the EA discusses the problem with the consultant, describing the areas of the consultant’s performance that it considers unsatisfactory; explaining the performance levels required; and directing the consultant toward ways to improve its performance, for example by replacing experts whose performance is unsatisfactory. The EA documents such discussion. The consultant is requested to formally respond with an action plan to improve performance.

(ii) Second, if the consultant’s performance continues to be unsatisfactory and formal contractual action appears to be necessary, the EA may consider suspending the consultant’s contract. Contracts with consulting firms can be suspended in part or in whole.

(iii) Third, if the consultant has not satisfied the EA that its performance will improve following suspension, the EA may consider terminating the consultant’s contract.

245. If the EA proposes to terminate a consultant’s contract, the EA should submit to the Project Unit for approval

(i) adequate background information and justification for the proposed termination; (ii) a summary of the required adjustments or remedial action; and (iii) a proposal on how the assignment will be completed.

246. The EA discusses the proposal with the consultant. Based on the available information, the Project Unit then discusses with PPFD whether to convene a Special Consultant Selection Committee meeting to decide if termination is warranted. If a Consultant Selection Committee meeting is not convened, the Project Unit decides if termination is warranted, in consultation with PPFD, OGC, and other relevant departments and offices. The Project Unit advises the EA of the decision reached on this matter. The EA then informs the consultant of the decision, in accordance with the provisions in the contract.

L. Complaints 247. Procurement-related complaints with regards to a recruitment process administered by the Borrower should be brought to the attention of the Borrower or to ADB (at [email protected]) or to both. The complaint must provide all relevant information to be addressed objectively and in a timely manner. 248. Any complaint alleging issues relating to an integrity violation must be immediately and confidentially referred to OAI in accordance with ADB’s Anticorruption Policy (1998, as amended to date) and ADB’s Integrity Principles and Guidelines (2015, as amended from time to time).


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249. All outstanding issues identified in a complaint must be resolved in a timely manner so that any challenged bidding process may be corrected, if and as appropriate, and duly implemented and completed in accordance with the terms of the relevant procurement plan. The GN on Bidding-Related Complaints gives further details.

M. Debriefing 250. The Borrower shall respond to any requests for debriefing made by unsuccessful consulting firms that submitted a proposal in response to an RFP. Debriefings must cover only the substance of the requesting bidder’s proposal, and under no circumstance should the detail of other bidders’ proposals or their scoring be discussed. There is no debriefing for consulting firms that were not shortlisted.

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APPENDIXES Appendix 1: List of Guidance Notes

1. Value for Money 2. Procurement Risk Framework 3. Strategic Procurement Planning 4. Procurement Review 5. Alternative Procurement Arrangements 6. Open Competitive Bidding 7. Price Adjustment 8. Abnormally Low Bids 9. Domestic Preference 10. Prequalification 11. Subcontracting 12. Consulting Services Administered by ADB Borrowers 13. Non-consulting Services Administered by ADB Borrowers 14. High Level Technology 15. Quality 16. Bidding-Related Complaints 17. Noncompliance in Procurement 18. Standstill Period 19. State-Owned Enterprises 20. E-Procurement 21. Framework Agreements for Consulting Services 22. Public-Private Partnerships 23. Contract Management 24. Fragile and Conflict-Affected and Emergency Situations

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Appendix 2: Simplified Flow Chart of the Key Steps for Recruiting Consulting Firms by the EA with an ADB Prior Review Arrangement

Executing Agency (EA) Project Unit (PU) PPFDEA and PU prepare Procurement Plan and agree planned durations

for CRAM schedule

(For QCBS, QBS, FBS, LCS, CQS)

Prepares the CSRN Reviews and approves if necessary

Gives advice and support if necessary

Creates selection and enters

planned CRAM data

Requests for ADB website registration for CSRN

posting

Registers the EA

Posts the CSRN (and advertises elsewhere if

desired)

Receiving EOIs and shortlisting

Prepares all documents required for Submission 1

Submits Submission 1 to PU(If >$5 million)

Sends Submission to PPFD; reviews

and sends comments to PPFD; sends

PPFD response to EA

(If <$5 million)Reviews and approves (or

requests revisions)

(If >$5 million) Reviews and receives comments from PU; approves (or

requests revisions); sends response to PU


Updates actual

CRAM data regularly

Upon approval, sends RFP to shortlisted firm(s)

Requests PPFD to post the shortlist on the ADB website Posts the shortlist

Responds to queries, issues addenda if necessary, and receives

proposals


Evaluates technical proposals and prepares all documents required for

Submission 2

Submits Submission 2 to PU



Updates actual

CRAM data regularly


requests revisions)



continued on next page

(If >$5 million) Sends Submission to PPFD; reviews


PPFD response to EA

(For SSS)

51

Executing Agency (EA) Project Unit (PU) PPFD

Upon approval, follows processes below based on selection method

(If QCBS / FBS / LCS)Opens and evaluates financial

proposals

(If QBS / CQS / SSS)

Reviews and, if necessary, negotiates

financial proposal with selected firm

(If QCBS / FBS / LCS)Prepares all documents required for

Submission 3

(If QCBS / FBS / LCS)

Submits Submission

3 to PU

Negotiates contract with selected firm



Updates actual

CRAM data regularly


requests revisions)



(If >$5 million) Sends Submission to PPFD; reviews


PPFD response to EA

Signs contract with selected firm

Sends signed contract and final ranking / award information for

posting on the ADB website

Debriefs unsuccessful

bidders, if requested

Issues written notice to proceed, copied to PU



Updates actual

CRAM data regularly

Posts the informationVerifies the signed contract is substantially the same as the

draft it approved in Submission 1

Sends copy of signed contract to PPFD, OGC,

and CTL


Finalizes and completes

CRAM data sheet

52 Appendix 3: Simplified Flow Chart of the Key Steps for Recruiting Individual Consultants

by the EA with an ADB Prior Review Arrangement

Executing Agency (EA) Project Unit (PU) PPFD

EA and PU prepare Procurement Plan and agree planned durations for CRAM schedule

(For competitive selections)

Prepares the CSRN Reviews and approves if necessary


Creates selection and enters

planned CRAM data

Requests for ADB website registration for CSRN

postingRegisters the EA

Posts the CSRN (and advertises elsewhere if

desired)

Receiving EOIs and shortlisting

Prepares all documents required for Submission 1

Submits Submission 1 to PUReviews and approves (or

requests revisions)


Updates actual

CRAM data regularly

Upon approval, sends the offer to the selected consultant and

negotiates contractGives

advice and support if necessary

Signs contract with the selected consultant

Sends signed contract to PU Verifies the signed contract is substantially the same as the

draft it approved in Submission 1

Issues written notice to proceed, copied to PU

Sends copy of signed contract to PPFD, OGC,

and CTL

Finalizes and completes

CRAM data sheet


Updates actual

CRAM data regularly

(For SSS)

staff instructions borrower ......consulting services provided under adb’s loan projects, grant...

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