Procurement of services ppt
- 1. PROCUREMENT OF SERVICES A power point presentation on procurement of services by: • Joshep Rana Sangpang • Kamal Singh • Navaneet Chaudary • Nilhari Khatiwada • Paribesh Timsina
- 2. PROCUREMENT OF SERVICES Contents • Introduction • Method of Selection of Consultant • Selection Procedure • Request of Proposal • Proposal Scoring Criteria • Award of Contract
- 3. INTRODUCTION The term “procurement” refers to the process of acquiring goods, service and civil works. The process spans the whole cycle from identification of needs through the end of a services contract or the useful life of an asset. Services Procurement is the process for requisitioning people-based services at an enterprise-level with an agreed-upon scope and deliverables. In short, it is the strategic outsourcing of labour to an individual or organization for a specific purpose.
- 4. WHY IS PROCUREMENT OF SERVICE NEEDED? • Lack of manpower; • Lack of availability of time; • Lack of experts in particular field; • If donor agency prerequisites the expert consultant (for public entity);
- 5. METHOD OF HIRING OF CONSULTANT • Direct Hiring: Up to five lakhs (<Rs 5,00,000) by chief executive officer; • Request for competitive bidding: • Request for proposal (RFP): Up to twenty lakhs (<Rs 20,00,000) by chief executive officer; • Expression of Interest (EOI) : If consulting cost exceeds twenty lakhs (>= Rs 20,00,000); ( For NCB giving at least 30days notice and for ICB –at least 45days, Request for EOI shall be published in national newspaper and also in website of PPMO with the complete details of : Office name and address, nature of work, date and place, instructions, scoring criteria and weightage, place, date and time for submission, legality, etc.)
- 6. METHOD OF SELECTION OF PROPOSAL • Least cost Based Selection (LCBS) : lowest responsive bidder is selected among the bidders, for works of simple nature or similar nature, • Fixed budget Selection (FBS): a proposal with cost above such a budget ceiling shall be rejected, and the proposal of the proponent that obtains the highest marks in the technical proposal and is within such a budget ceiling shall be selected. when the assignment is simple, task specific and budget is fixed, • Quality Based Selection: The nature of the consultancy service to be procured is exceptionally complex or such service is likely to significantly impact the national economy or future projects, the selection of proposals may be made exclusively on the basis of the quality method; • Quality and Cost Based Selection (QCBS): the technical and financial proposals shall be evaluated in a combined form and the proposal of the proponent who obtains the highest score is selected.
- 7. PROCEDURES OF SELECTION OF CONSULTANT • Preparation of Term of Reference (ToR); • Preparation of detail estimate; • Notice for Expression of Interest (EOI); • Short listing the consultants; • Request for proposal (RFP); • Receipt of proposal; • Evaluation of proposal: • Technical proposal evaluation ( a week prior notice is given to proponent or their representative) • Financial proposal evaluation • Award, Negotiations and agreement of the contract to the selected consultant; *Proposal received after deadline is returned unopened to respective proponent *Notice of selection shall be given to selected proponent and short listed proponents within 7 days.
- 8. TERM OF REFERENCE (TOR) • Shall be prepared by a person or a firm specialized in the area of the assignment (Client) • The scope of the services described in the TOR shall be compatible with the available budget. • TOR shall define clearly the objectives, goals, and scope of the assignment ToR shall include: • Introduction and background of the Project • Objective of the service required • Scope of the Service • Qualification Required • Time for completion of the services • Information to consultant (ITC) • Client’s obligation to the Consultant • Deliverables • Selection Method • Types of Contract
- 9. REQUEST FOR PROPOSAL AND PROPOSALS RFPs shall be sent to consultants on the shortlist. The public entity shall invite proposals from the intent expressing proponents giving the time of at least fifteen days ( cost < 20 lakhs) and at least 30 days ( for cost >=20 Lakhs). The RFP includes: • letter of invitation; • instructions to consultants, including a data sheet and evaluation criteria; • technical proposal standard forms; • financial proposal standard forms; • TOR; • standard form of contract.
- 10. WEIGHTAGE CRITERIA IN QCBS SN Technical Proposal Financial Proposal Total 1. 70%- 90 % of total weightage 30% - 10% of total weightage Combined 100% Proposal scoring criteria ( For technical proposal) SN Description Weightage (%) 1 Proponent's experience of specific work Up to 25% of the total marks 2 Method of performance and responsiveness to the terms of reference Up to 35% of the total marks 3 Qualification and experience of key human resource 30% to 60% of the total marks 4 Transfer of technology or training Up to 10% 5 Participation of domestic human resources (for ICB) Up to 10%
- 11. Proposal scoring criteria (For financial proposal) • 100% score is given to the lowest competitive financial proposal • And for other proposal: % score = 𝑙𝑜𝑤𝑒𝑠𝑡 𝑓𝑖𝑛𝑎𝑛𝑐𝑖𝑎𝑙 𝑝𝑟𝑜𝑝𝑜𝑠𝑎𝑙 𝑟𝑒𝑠𝑝𝑒𝑐𝑡𝑖𝑣𝑒𝑓𝑖𝑛𝑎𝑛𝑐𝑖𝑎𝑙 𝑝𝑟𝑜𝑝𝑜𝑠𝑎𝑙 X 100% Combined score = 70% X Technical score + 30% X Financial score Proponent securing highest score is selected
- 12. Technical Proposal Evaluation • After completion of technical evaluation of all the short listed proponents who secure pass score goes for the opening of financial proposal; • If not passed in technical evaluation, their financial proposal is returned unopened to respective proponent; • 3 member committee is formed and evaluated separately; • Sub committee is formed to evaluate (if needed experts); • Average of the evaluators in taken into account;
- 13. Identify needs Write specification, design (TOR) Choose a procurement method Prepare solicitation documents Evaluate Proposals Award of contract Negotiate the contract Evaluate the procurement Schematic diagram of procedures of selection of consultant
- 14. REJECTION OF PROPOSAL AND CANCELLATION OF PROCUREMENT PROCEEDING The public entity may reject all the proposals or cancel the procurement proceeding in the following circumstance: • If all the received proposals are not substantially responsive to the terms of reference, • If the cost offered by the selected proponent is substantially over the cost estimate and available budget, • If the consultancy service is not required, or • If it is proved that the proponent has submitted the proposal through mutual collusion.
- 15. AUTHORITY TO APPROVE PROPOSAL RELATING TO CONSULTANCY SERVICE: SN Authority Amount ( NRs) Remarks 1 Gazetted third class chief of the office Not exceeding 1 million If the chief of any public entity is not allowed to approve, he or she shall cause it to be approved by one level higher authority. 2 Gazetted second class chief of the office Not exceeding 5 million 3 Gazetted first class chief of the office Not exceeding 30 million 4 Head of the department Exceeding 30 million *the secretary or administrative chief of a constitutional organ or body, Ministry, secretariat and other office of similar nature may approve the proposal of any amount whatsoever for procurement to be made for his or her office;
- 16. NEGOTIATION AND AWARD OF CONTRACT • Negotiations may be held with regard to the expenditures of reimbursable nature ( insurance, tax, and other costs such as travel, food, meetings, etc); • Time limit for negotiation is of 7 days for national proposal and incase of international proposal 15 days; • The contract is to be awarded to the bidder whose bid has been determined to be the lowest evaluated bid and who meets the appropriate standards of capability and financial resources. A bidder shall not be required as a condition of award to undertake responsibilities or work not stipulated in the specifications or to modify the bid.
- 17. • The award of a contract is notified to the successful bidder by a Notice of Award, Letter of Intent, Letter of Acceptance, etc; • If no proponent makes an application within 7 days of the notice being given, then proponent shall be given a notice by giving a period of 15 days to appear to inter enter the contract. • If the proponent appears within the period, the proponent shall enter into the contract and if that proponent fails to appear, the public entity shall hold negotiations with proponent having obtained the next highest score. • The selected proponent shall submit professional liability insurance covering the total price of the contract within 3 days else the contract is terminated and the proponent is blacklisted.
- 18. References • Public Procurement Act-2063 • Public Procurement Regulation -2064 • jica.gov.jp (Procurement of Goods and Services) • Preparation on consulting of services, Ajay Kumar Mull • https://www.slideshare.net/shahrukhakash/procurement-and-purchasing-of-a- product
- 19. Thank you!!