FM – L2 – Q133 – Procuring Consultants

(a) Explain the following methods of procuring consultants:

(i) Quality and Cost Based Selection (QCBS)

(ii) Quality Based Selection (QBS)

(iii) Selection Under Fixed Budget (SFB)

(iv) Least Cost Selection (LCS)

(b) A government has some unserviceable vehicles that it intends to dispose of immediately upon the directive of the Auditor General.

Required:

Discuss the procedures involved in disposal of the vehicles under the Public Procurement Law 2005, as amended.

(a) The methods of procuring consultancy include:
(i) Quality and Cost-Based Selection (QCBS)
Quality and Cost-Based Selection (QCBS) is the standard method of selection for most consultant services and uses a merit-point score system. The technical capabilities and experience of the consultants and personnel, and the quality of the proposal submitted in response to the Terms of Reference, will receive the major percentage of the total points to be awarded. Only firms/consultants whose technical proposals achieved a minimum technical score will have their financial proposal considered. The general practice in Zamaria is that the best compromise between technical quality and cost of the services is often achieved by allocating 80% of the total points to the technical features of the proposal and 20% to the financial score.

(ii) Quality-Based Selection (QBS)
Quality-Based Selection (QBS) may be suitable for complex, difficult to define, or highly specialized assignments, where the best expertise available is required without consideration of the price. In this case, only technical proposals are evaluated, with the winning tenderer being invited for detailed negotiations to agree the price of the services and the contract.

(iii) Selection under a Fixed Budget (FBS)
Fixed Budget Selection (FBS) may be used when the assignment is simple, can be clearly defined, and there is only a strictly limited budget available for the services. Consultants are invited to submit their best technical proposal within the fixed budget price, and award of contract is made to the highest scoring technical proposal. FBS is appropriate when the assignment is simple and can be precisely defined and the budget is fixed. Any financial proposals that exceed the indicated budget should be rejected.

(iv) Least-Cost Selection (LCS)
This method is more appropriate to selection of consultants for assignments of a standard or routine nature (audits, engineering design of noncomplex works, etc.) where well-established practices and professional standards exist, and when the contract value is small. A minimum qualifying score for the required quality is established and stated in the RFP.

(b) According to the Public Procurement Law 2005, as amended, the head of a procurement entity shall convene a Board of Survey comprising representatives of departments with unserviceable, obsolete, or surplus stores, plant, and equipment which shall report on the items and, subject to a technical report on them, recommend the best method of disposal after the officer in charge has completed a Board of Survey form.

The Board of Survey’s recommendations shall be approved by the head of the procurement entity, and the items shall be disposed of as approved. Where items become unserviceable for reasons other than fair wear and tear, such as through accident or expiry, a set procedure established by the Board for handling losses shall be followed before the items are disposed of.

The Board of Survey shall be undertaken by a team of at least three persons, comprising the following:

  • A representative from the procurement entity’s administration/finance department.
  • The storekeeper or stockholder.
  • A senior officer from any public or private institution with special knowledge of the items to be surveyed shall be invited to act as a Technical Person to the committee.

The reason for any item becoming surplus, obsolete, and unserviceable shall be explained, and recommendations submitted on the mode of disposal. The report of the survey shall be submitted to the Head of Procurement Entity. Upon receipt of the report of the survey, the Head of Entity shall instruct the Stores department to dispose of or supervise the disposal of the equipment or supplies in accordance with the recommendation of the survey team. The Board of Survey’s recommendations shall be approved by the Head of Procurement Entity, and the items shall be disposed of as approved.

Disposal of unserviceable vehicles shall be carried out by:

  • Transfer to government departments or other public entities, with or without financial adjustment. This is applicable where an asset can be usefully deployed by another procurement entity.
  • Sale by public tender to the highest tenderer, subject to a reserve price. This should be conducted where the estimated value of the asset, or group of assets packaged together, is of sufficient value to justify the cost of conducting a public tender.
  • Sale by public auction, subject to a reserve price. Disposal by public auction shall be conducted for items that have an estimated value of less than ZMC 50 million and also when sufficient items can be assembled for disposal to justify the costs of conducting the auction process.
  • Destruction, dumping, or burying as appropriate. This should be used where the asset has no residual value and cannot be converted into any other forms which subsequently give it value. To ensure that the destruction, dumping, or burying is properly executed, it is recommended that a committee of at least three persons supervise the process.