GUIDELINESSELECTION

AND

EMPLOYMENT

OF

CONSULTANTS

BY

WORLD BANK

BORROWERS

May 2004

ConsGuide.qxd 5/7/04 3:32 PM Page 1

May 2004

GUIDELINESSELECTION

AND

EMPLOYMENT

OF

CONSULTANTS

BY

WORLD BANK

BORROWERS

Copyright © 2004The International Bank for Reconstructionand Development / THE WORLD BANK1818 H Street, N.W.Washington D.C. 20433, U.S.A.

First Printing April 2004All rights reservedISBN 0-8213-5828-6

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I. Introduction ........................................1

1.1 Purpose ......................................................11.4 General Considerations ..........................21.7 Applicability of Guidelines ....................31.9 Conflict of Interest ....................................41.10 Unfair Competitive Advantage ..............61.11 Eligibility....................................................61.12 Advance Contracting and

Retroactive Financing ..............................71.13 Associations between Consultants ........81.14 Bank Review, Assistance,

and Monitoring ........................................81.17 Misprocurement........................................91.18 References to the Bank ............................101.19 Training or Transfer of Knowledge........111.20 Language....................................................111.22 Fraud and Corruption..............................121.24 Procurement Plan ....................................14II. Quality- and Cost-Based

Selection (QCBS)..................................15

2.1 The Selection Process ..............................152.3 Terms of Reference (TOR) ......................152.4 Cost Estimate (Budget) ............................162.5 Advertising ................................................162.6 Short List of Consultants ........................172.9 Preparation and Issuance of

the Request for Proposals (RFP) ............192.10 Letter of Invitation (LOI) ........................192.11 Instructions to Consultants (ITC) ..........202.12 Contract......................................................202.13 Receipt of Proposals ................................212.14 Evaluation of Proposals: Consideration

of Quality and Cost ..................................222.15 Evaluation of the Quality ........................222.20 Evaluation of Cost ....................................242.23 Combined Quality

and Cost Evaluation ................................262.24 Negotiations and Award of Contract ....262.28 Publication of the Award of Contract....282.29 Debriefing ..................................................28

2.30 Rejection of All Proposals, and Reinvitation........................................29

2.31 Confidentiality ..........................................29III. Other Methods of Selection................30

3.1 General ......................................................303.2 Quality-Based Selection (QBS)................303.5 Selection under a Fixed Budget (FBS) ..313.6 Least-Cost Selection (LCS) ......................323.7 Selection Based on the Consultants’

Qualifications (CQS) ................................323.9 Single-Source Selection (SSS) ..................333.14 Commercial Practices ..............................343.15 Selection of Particular Types

of Consultants ..........................................35IV. Types of Contracts and Important

Provisions ............................................38

4.1 Types of Contracts ....................................384.6 Important Provisions ..............................40V. Selection of Individual Consultants ....43

Appendix 1: Review by the Bank of theSelection of Consultants ....................45

1. Scheduling the Selection Process ..........452. Prior Review ............................................455. Post Review ..............................................48

Appendix 2: Instructions to Consultants (ITC) ................................50

Appendix 3: Guidance to Consultants 53

1. Purpose ......................................................532. Responsibility for Selection

of Consultants ..........................................533. Bank’s Role ................................................545. Information on Consultant Services ......547. Consultants’ Role......................................5510. Confidentiality ..........................................5611. Action by the Bank ..................................5715. Debriefing ..................................................58

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Acronyms

CQS Selection Based on Consultants’Qualifications

FBS Selection under a Fixed BudgetIBRD International Bank for Reconstruction

and Development (World Bank)IDA International Development AgencyITC Instructions to ConsultantsLCS Least-Cost SelectionLOI Letter of InvitationMOS Monthly Operational SummaryNGO Nongovernment OrganizationPAD Project Appraisal DocumentPAs Procurement AgentsPID Project Information DocumentQBS Quality-Based SelectionQCBS Quality- and Cost-Based SelectionRFP Request for ProposalSSS Single-Source SelectionSWAps Sector-Wide ApproachesTOR Terms of ReferenceUN United NationsUNDB United Nations Development

Business

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I. INTRODUCTIONPurpose1.1 The purpose of these Guidelines is todefine the Bank’s policies and procedures forselecting, contracting, and monitoringconsultants required for projects that arefinanced in whole or in part by loans from theInternational Bank for Reconstruction andDevelopment (IBRD), credits or grants from theInternational Development Association (IDA),1or grants from the Bank or trust funds2

administered by the Bank and executed by thebeneficiary.

1.2 The Loan Agreement governs the legalrelationships between the Borrower and theBank, and the Guidelines apply to the selectionand employment of consultants for the projectas provided in the Agreement. The rights andobligations of the Borrower3 and the consultantare governed by the specific Request forProposals (RFP)4 issued by the Borrower andby the contract signed by the Borrower with theconsultant, and not by these Guidelines or theLoan Agreement. No party other than theparties to the Loan Agreement shall derive anyrights therefrom or have any claim to loanproceeds.

1.3 For the purpose of these Guidelines, theterm consultants includes a wide variety of

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1 Requirements of IBRD and IDA are identical. References inthese Guidelines to the Bank include both IBRD and IDA,and references to “loans” include IBRD loans, as well as IDAcredits and grants and project preparation advances (PPAs).References to “Loan Agreement” include Development CreditAgreement, Development Financing Agreement andDevelopment Grant Agreement, and Project Agreement.References to “Borrower” include the recipient of an IDAGrant.2 To the extent that the agreement providing for the trustfund or the grant does not conflict with these provisions, inwhich case such agreement will prevail.3 In some cases, the Borrower acts only as an intermediary,and the project is carried out by another agency or entity.References in these Guidelines to the Borrower include suchagencies and entities, as well as Sub-Borrowers under“onlending arrangements.”4 See Appendix 2.

private and public entities, including consultingfirms, engineering firms, constructionmanagers, management firms, procurementagents, inspection agents, auditors, UnitedNations (UN) agencies and other multinationalorganizations, investment and merchant banks,universities, research institutions, governmentagencies, nongovernmental organizations(NGOs), and individuals.5 Bank Borrowers usethese organizations as consultants to help in awide range of activities—such as policy advice;institutional reforms; management; engineeringservices; construction supervision; financialservices; procurement services; social andenvironmental studies; and identification,preparation, and implementation of projects tocomplement Borrowers’ capabilities in theseareas.

General Considerations1.4 The Borrower is responsible forpreparing and implementing the project, andtherefore for selecting the consultant, andawarding and subsequently administering thecontract. While the specific rules andprocedures to be followed for employingconsultants depend on the circumstances of theparticular case, five main considerations guidethe Bank’s policy on the selection process:

(a) the need for high-quality services,

(b) the need for economy and efficiency,

(c) the need to give all qualifiedconsultants an opportunity to competein providing the services financed bythe Bank,

(d) the Bank’s interest in encouraging thedevelopment and use of nationalconsultants in its developing membercountries, and

(e) the need for transparency in theselection process.

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5 See paras. 3.15-3.20 for particular types of consultants.Individual consultants are covered in Section V.

1.5 The Bank considers that, in the majorityof cases, these considerations can best beaddressed through competition amongqualified short-listed firms in which theselection is based on the quality of the proposaland, where appropriate, on the cost of theservices to be provided. Sections II and III ofthese Guidelines describe the different methodsof selection of consultants accepted by the Bankand the circumstances in which they areappropriate. Since Quality- and Cost-BasedSelection (QCBS) is the most commonlyrecommended method, Section II of theseGuidelines describes in detail the proceduresfor QCBS. However, QCBS is not the mostappropriate method of selection for all cases,therefore, Section III describes other methods ofselection and the circumstances in which theyare more appropriate.

1.6 The particular methods that may befollowed for the selection of consultants undera given project are provided for in the LoanAgreement. The specific contracts to befinanced under the project, and their method ofselection, consistent with the provisions of theLoan Agreement, shall be specified in theProcurement Plan as indicated in paragraph1.24 of these Guidelines.

Applicability of Guidelines1.7 The consulting services to which theseGuidelines apply are of an intellectual andadvisory nature. These Guidelines do not applyto other types of services in which the physicalaspects of the activity predominate (forexample, construction of works, manufacture ofgoods, operation and maintenance of facilitiesor plant, surveys, exploratory drilling, aerialphotography, satellite imagery, and servicescontracted on the basis of performance ofmeasurable physical output).6

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6 These latter services are bid and contracted on the basis ofperformance of measurable physical outputs and procuredin accordance with the Guidelines: Procurement under IBRDLoans and IDA Credits, referred to herein as the ProcurementGuidelines.

1.8 The procedures outlined in theseGuidelines apply to all contracts for consultingservices financed in whole or in part from Bankloans or grants or trust funds7 implemented bythe beneficiary. In procuring consulting servicesnot financed from such sources, the Borrowermay adopt other procedures. In such cases, theBank shall satisfy itself that (a) the proceduresto be used will result in the selection ofconsultants who have the necessaryprofessional qualifications, (b) the selectedconsultant will carry out the assignment inaccordance with the agreed schedule, and (c)the scope of the services is consistent with theneeds of the project.

Conflict of Interest1.9 Bank policy requires that consultantsprovide professional, objective, and impartialadvice and at all times hold the client’s interestsparamount, without any consideration forfuture work, and that in providing advice theyavoid conflicts with other assignments andtheir own corporate interests. Consultants shallnot be hired for any assignment that would bein conflict with their prior or currentobligations to other clients, or that may placethem in a position of being unable to carry outthe assignment in the best interest of theBorrower. Without limitation on the generalityof the forgoing, consultants shall not be hiredunder the circumstances set forth below:

(a) Conflict between consulting activitiesand procurement of goods, works orservices (other than consulting servicescovered by these Guidelines8): A firmthat has been engaged by the Borrowerto provide goods, works, or services(other than consulting services coveredby these Guidelines) for a project, andeach of its affiliates, shall bedisqualified from providing consulting

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7 To the extent that the Trust Fund Agreement does notconflict with these provisions, in which case the Agreementwill prevail.8 See paragraph 1.7 of these Guidelines.

services related to those goods, worksor services. Conversely, a firm hired toprovide consulting services for thepreparation or implementation of aproject, and each of its affiliates, shallbe disqualified from subsequentlyproviding goods, works or services(other than consulting services coveredby these Guidelines) resulting from ordirectly related to the firm’s consultingservices for such preparation orimplementation.

(b) Conflict among consulting assignments:Neither consultants (including theirpersonnel and sub-consultants) nor anyof their affiliates shall be hired for anyassignment that, by its nature, may bein conflict with another assignment ofthe consultants. As an example,consultants hired to prepareengineering design for an infrastructureproject shall not be engaged to preparean independent environmentalassessment for the same project, andconsultants assisting a client in theprivatization of public assets shallneither purchase, nor advise purchasersof, such assets. Similarly, consultantshired to prepare Terms of Reference(TOR) for an assignment shall not behired for the assignment in question.

(c) Relationship with Borrower’s staff:Consultants (including their personneland sub-consultants) that have abusiness or family relationship with amember of the Borrower’s staff (or ofthe project implementing agency’s staff,or of a beneficiary of the loan) who aredirectly or indirectly involved in anypart of: (i) the preparation of the TORof the contract, (ii) the selection processfor such contract, or (iii) supervision ofsuch contract may not be awarded acontract, unless the conflict stemmingfrom this relationship has been resolvedin a manner acceptable to the Bank

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throughout the selection process andthe execution of the contract.

Unfair Competitive Advantage1.10 Fairness and transparency in theselection process require that consultants ortheir affiliates competing for a specificassignment do not derive a competitiveadvantage from having provided consultingservices related to the assignment in question.To that end, the Borrower shall make availableto all the short-listed consultants together withthe request for proposals all information thatwould in that respect give a consultant acompetitive advantage.

Eligibility1.11 To foster competition the Bank permitsfirms and individuals from all countries to offerconsulting services for Bank-financed projects.Any conditions for participation shall belimited to those that are essential to ensure thefirm’s capability to fulfill the contract inquestion.9 However,

(a) Consultants may be excluded if (i) as amatter of law or official regulations, theBorrower’s country prohibitscommercial relations with theconsultant’s country, provided that theBank is satisfied that such exclusiondoes not preclude effective competitionfor the procurement of the consultingservices required, or (ii) by an act ofcompliance with a decision of theUnited Nations Security Council takenunder Chapter VII of the Charter of theUnited Nations, the Borrower’s countryprohibits any payments to any country,person, or entity. Where the Borrower'scountry prohibits payments to aparticular firm or for particular goodsby such an act of compliance, that firmmay be excluded.

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9 The Bank permits firms and individuals from Taiwan,China, to offer consulting services for Bank-financedprojects.

(b) Government-owned enterprises orinstitutions in the Borrower’s countrymay participate only if they canestablish that they (i) are legally andfinancially autonomous, (ii) operateunder commercial law, and (iii) are notdependent agencies of the Borrower orSub-Borrower.

(c) As an exception to (b), when theservices of government-owneduniversities or research centers in theBorrower’s country are of unique andexceptional nature, and theirparticipation is critical to projectimplementation, the Bank may agree onthe hiring of those institutions on acase-by-case basis. On the same basis,university professors or scientists fromresearch institutes can be contractedindividually under Bank financing.

(d) Government officials and civil servantsmay only be hired under consultingcontracts, either as individuals or asmembers of a team of a consulting firm,if they (i) are on leave of absencewithout pay; (ii) are not being hired bythe agency they were working forimmediately before going on leave; and(iii) their employment would not createa conflict of interest (see paragraph 1.9).

(e) A firm declared ineligible by the Bankin accordance with subparagraph (d) ofparagraph 1.22 of these Guidelinesshall be ineligible to be awarded aBank-financed contract during suchperiod of time as the Bank shalldetermine.

Advance Contracting and RetroactiveFinancing1.12 In certain circumstances, such as toaccelerate project implementation, the Borrowermay, with the Bank’s approval, wish to proceedwith the selection of consultants before therelated Loan Agreement is signed. This process

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is referred to as advance contracting. In suchcases, the selection procedures, includingadvertisement, shall be in accordance withthese Guidelines, and the Bank shall review theprocess used by the Borrower. A Borrowerundertakes such advance contracting at its ownrisk, and any “no objection” issued by the Bankwith regard to the procedures, documentation,or proposal for award does not commit theBank to make a loan for the project in question.If the contract is signed, reimbursement by theBank of any payments made by the Borrowerunder the contract prior to loan signing isreferred to as retroactive financing and is onlypermitted within the limits specified in theLoan Agreement.

Associations between Consultants1.13 Consultants may associate with eachother in the form of a joint venture or of a sub-consultancy agreement to complement theirrespective areas of expertise, strengthen thetechnical responsiveness of their proposals andmake available bigger pools of experts, providebetter approaches and methodologies, and, insome cases, to offer lower prices. Such anassociation may be for the long term(independent of any particular assignment) orfor a specific assignment. If the Borroweremploys an association in the form of a jointventure, the association should appoint one ofthe firms to represent the association; allmembers of the joint venture shall sign thecontract and shall be jointly and severally liablefor the entire assignment. Once the short list isfinalized, and Requests for Proposals (RFP) areissued, any association in the form of jointventure or sub-consultancy among short-listedfirms shall be permissible only with theapproval of the Borrower. Borrowers shall notrequire consultants to form associations withany specific firm or group of firms, but mayencourage association with qualified nationalfirms.

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Bank Review, Assistance, and Monitoring1.14 The Bank reviews the Borrower’s hiringof consultants to satisfy itself that the selectionprocess is carried out in accordance with theprovisions of these Guidelines. The reviewprocedures are described in Appendix 1.

1.15 Under special circumstances, and inresponse to a written request from theBorrower, the Bank may furnish to theBorrower short lists10 or long lists11 of firmsthat it expects to be capable of undertaking theassignment. The provision of the list does notrepresent an endorsement of the consultants.The Borrower may delete any name or addother names as it wishes; however, the finalshort list shall be submitted to the Bank for itsapproval before the Borrower issues the RFP.

1.16 The borrower is responsible forsupervising the consultants’ performance andensuring that they carry out the assignment inaccordance with the contract. Withoutassuming the responsibilities of the Borrower orthe consultants, Bank staff shall monitor thework as necessary to satisfy themselves that itis being carried out according to appropriatestandards and is based on acceptable data. Asappropriate, the Bank may take part indiscussions between the Borrower andconsultants and, if necessary, may help theBorrower in addressing issues related to theassignment. If a significant portion of projectpreparation work is being carried out in theconsultants’ home offices, Bank staff may, withthe Borrower’s agreement, visit these offices toreview the consultants’ work.

Misprocurement1.17 The Bank does not finance expendituresfor consulting services if the consultants havenot been selected or the services have not been

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10 Short List: see paragraph 2.6, 2.7 and 2.8.11 Long List: a preliminary list of potential firms from whichthe short list will be established.

contracted in accordance with the agreedprovisions of the Loan Agreement and theProcurement Plan12 approved by the Bank. Insuch cases, the Bank will declaremisprocurement, and it is the Bank’s policy tocancel that portion of the loan allocated to theservices that have been misprocured. The Bankmay, in addition, exercise other remediesprovided for under the Loan Agreement. Evenonce the contract is awarded after obtaining a“no objection” from the Bank, the Bank maystill declare misprocurement if it concludes thatthe “no objection” was issued on the basis ofincomplete, inaccurate, or misleadinginformation furnished by the Borrower or thatthe terms and conditions of the contract hadbeen modified without Bank’s approval.

References to the Bank1.18 The Borrower shall use the followinglanguage13 when referring to the Bank in theRFP and contract documents:

“[Name of the Borrower] has received [or,‘has applied for’] a [loan] from the[International Bank for Reconstructionand Development] (the Bank) in anamount equivalent to US$___, towardthe cost of [name of project], and intendsto apply a portion of the proceeds ofthis [loan] to eligible payments underthis Contract. Payments by the Bankwill be made only at the request of[name of Borrower or designate] and uponapproval by the Bank, and will besubject, in all respects, to the terms andconditions of the [Loan] Agreement.The [Loan] Agreement prohibits awithdrawal from the [Loan] Accountfor the purpose of any payment topersons or entities, or for any import ofgoods, if such payment or import, tothe knowledge of the Bank, isprohibited by a decision of the United

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12 See paragraph 1.24.13 To be suitably modified in the case of a credit from IDA ora grant or a trust fund.

Nations Security Council taken underChapter VII of the Charter of theUnited Nations. No party other than[name of Borrower] shall derive anyrights from the [Loan] Agreement orhave any claim to the proceeds of the[Loan].”

Training or Transfer of Knowledge1.19 If the assignment includes an importantcomponent for training or transfer ofknowledge to Borrower staff or nationalconsultants, the TOR shall indicate theobjectives, nature, scope, and goals of thetraining program, including details on trainersand trainees, skills to be transferred, timeframe, and monitoring and evaluationarrangements. The cost for the trainingprogram shall be included in the consultant’scontract and in the budget for the assignment.

Language1.20 The RFP and the proposals shall beprepared in one of the three followinglanguages, selected by the Borrower: English,French, or Spanish. The contract signed withthe winning consultant shall be written in thelanguage so selected for the RFP, and thislanguage shall be the one that governs thecontractual relations between the Borrower andthe selected consultant.

1.21 In addition to being prepared inEnglish, French, of Spanish, as indicated inparagraph 1.20 of these Guidelines, the RFPmay, at the Borrower’s option, also be preparedin the national language of the Borrower’scountry (or the language used nation-wide inthe borrower’s country for commercialtransactions).14 If the RFP and biddingdocuments are prepared in two languages,consultants shall be permitted to submit theirproposals in either of these two languages. Insuch case, the contract signed with the selectedconsultant shall be written in the language in

1114 The Bank shall be satisfied with the language to be used.

which its proposal was submitted, in whichcase this language shall be the one that governsthe contractual relations between the Borrowerand the winning consultant. If the contract issigned in a language other than English,French, or Spanish, and the contract is subjectto Bank’s prior review, the Borrower shallprovide the Bank with a translation of thecontract in the internationally used language inwhich the RFP was prepared. Consultants shallnot be required nor permitted to sign contractsin two languages.

Fraud and Corruption1.22 It is the Bank’s policy to require thatBorrowers (including beneficiaries of Bankloans), as well as consultants under Bank-financed contracts, observe the higheststandard of ethics during the selection andexecution of such contracts. In pursuance ofthis policy, the Bank:

(a) defines, for the purposes of thisprovision, the terms set forth below asfollows:

(i) “corrupt practice” means theoffering, giving, receiving, orsoliciting of, directly orindirectly, any thing of value toinfluence the action of a publicofficial15 in the selectionprocess or in contractexecution;

(ii) “fraudulent practice” means amisrepresentation or omissionof facts in order to influence aselection process or theexecution of a contract;

(iii) “collusive practices” means ascheme or arrangementbetween two or moreconsultants, with or without

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15 Includes World Bank staff and employees of otherorganizations taking or reviewing procurement decisions.

the knowledge of the Borrower,designed to establish prices atartificial, noncompetitive levels;

(iv) “coercive practices” meansharming or threatening toharm, directly or indirectly,persons or their property toinfluence their participation ina procurement process, or affectthe execution of a contract.

(b) will reject a proposal for award if itdetermines that the consultantrecommended for award has, directlyor through an agent, engaged incorrupt, fraudulent, collusive, orcoercive practices in competing for thecontract in question;

(c) will cancel the portion of the Loanallocated to a contract if it determinesat any time that representatives of theBorrower or of a beneficiary of theLoan were engaged in corrupt,fraudulent, collusive, or coercivepractices during the selection process orthe execution of that contract, withoutthe Borrower having taken timely andappropriate action satisfactory to theBank to remedy the situation;

(d) will sanction a consultant, includingdeclaring ineligible, either indefinitelyor for a stated period of time, to beawarded a Bank-financed contract if itat any time determines that theconsultant has, directly or through anagent, engaged in corrupt, fraudulent,collusive, or coercive practices incompeting for, or in executing, a Bank-financed contract; and

(e) will have the right to require that, incontracts financed by a Bank loan, aprovision be included requiringconsultants to permit the Bank toinspect their accounts and records andother documents relating to the

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submission of proposals and contractperformance and to have them auditedby auditors appointed by the Bank.

1.23 With the specific agreement of theBank, a Borrower may introduce, into the RFPfor large contracts financed by the Bank, arequirement that the consultant include in theproposal an undertaking of the consultant toobserve, in competing for and executing acontract, the country’s laws against fraud andcorruption (including bribery), as listed in theRFP.16 The Bank will accept the introduction ofsuch a requirement at the request of theBorrowing country, provided the arrangementsgoverning such undertaking are satisfactory tothe Bank.

Procurement Plan1.24 As part of the preparation of theproject, the Borrower shall prepare and, beforeLoan negotiations, furnish to the Bank for itsapproval, a Procurement Plan17 acceptable tothe Bank setting forth: (a) the particularcontracts for consulting services required tocarry out the project during an initial period ofat least 18 months; (b) the proposed methodsfor selection of consultants services; and (c) therelated Bank review procedures.18 TheBorrower shall update the Procurement Planannually or as needed throughout the durationof the project. The Borrower shall implementthe Procurement Plan in the manner in which ithas been approved by the Bank.

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16 As an example, such an undertaking might read asfollows: “We undertake that, in competing for (and, if theaward is made to us, in executing) the above contract, wewill observe the laws against fraud and corruption in forcein the country of the Client, as such laws have been listed bythe Client in the RFP for this contract.”17 If the Project includes the procurement of goods, works,and non-consulting services, the Procurement Plan shouldalso include the methods for procurement of goods, works,and non-consultig services in accordance with theGuidelines: Procurement under IBRD Loans and IDA Credits.The Bank will disclose the initial Procurement Plan to thepublic after the related loan has been approved; additionalupdates will be disclosed after the Bank has approved them.18 See Appendix 1.

II. QUALITY- AND COST-BASEDSELECTION (QCBS)

The Selection Process2.1 QCBS uses a competitive processamong short-listed firms that takes into accountthe quality of the proposal and the cost of theservices in the selection of the successful firm.Cost as a factor of selection shall be usedjudiciously. The relative weight to be given tothe quality and cost shall be determined foreach case depending on the nature of theassignment.

2.2 The selection process shall include thefollowing steps:

(a) preparation of the TOR;

(b) preparation of cost estimate and thebudget;

(c) advertising;

(d) preparation of the short list ofconsultants;

(e) preparation and issuance of the RFP[which should include: the Letter ofInvitation (LOI); Instructions toConsultants (ITC); the TOR and theproposed draft contract];

(f) receipt of proposals;

(g) evaluation of technical proposals:consideration of quality;

(h) public opening of financial proposals;

(i) evaluation of financial proposal;

(j) final evaluation of quality and cost; and

(k) negotiations and award of the contractto the selected firm.

Terms of Reference (TOR)2.3 The Borrower shall be responsible forpreparing the TOR for the assignment. TORshall be prepared by a person(s) or a firm

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specialized in the area of the assignment. Thescope of the services described in the TOR shallbe compatible with the available budget. TORshall define clearly the objectives, goals, andscope of the assignment and providebackground information (including a list ofexisting relevant studies and basic data) tofacilitate the consultants’ preparation of theirproposals. If transfer of knowledge or trainingis an objective, it should be specifically outlinedalong with details of number of staff to betrained, and so forth, to enable consultants toestimate the required resources. TOR shall listthe services and surveys necessary to carry outthe assignment and the expected outputs (forexample, reports, data, maps, surveys).However, TOR should not be too detailed andinflexible, so that competing consultants maypropose their own methodology and staffing.Firms shall be encouraged to comment on theTOR in their proposals. The Borrower’s andconsultants’ respective responsibilities shouldbe clearly defined in the TOR.

Cost Estimate (Budget)2.4 Preparation of a well-thought-throughcost estimate is essential if realistic budgetaryresources are to be earmarked. The costestimate shall be based on the Borrower’sassessment of the resources needed to carry outthe assignment: staff time, logistical support,and physical inputs (for example, vehicles,laboratory equipment). Costs shall be dividedinto two broad categories: (a) fee orremuneration (according to the type of contractused) and (b) reimbursables, and furtherdivided into foreign and local costs. The cost ofstaff time shall be estimated on a realistic basisfor foreign and national personnel.

Advertising2.5 For all projects the Borrower is requiredto prepare and submit to the Bank a draftGeneral Procurement Notice. The Bank willarrange for its publication in UN DevelopmentBusiness online (UNDB online) and in the

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Development Gateway’s dgMarket.19 To obtainexpressions of interest, the Borrower shallinclude a list of expected consultingassignments in the General ProcurementNotice,20 and shall advertise a request forexpressions of interest for each contract forconsulting firms in the national gazette or anational newspaper or in an electronic portal offree access. In addition, contracts expected tocost more than US$ 200,000 shall be advertisedin UNDB online and in dgMarket. Borrowersmay also advertise requests for expressions ofinterest in an international newspaper or atechnical magazine. The information requestedshall be the minimum required to make ajudgment on the firm’s suitability and not be socomplex as to discourage consultants fromexpressing interest. Not less than 14 days fromdate of posting on UNDB online shall beprovided for responses, before preparation ofthe short list.

Short List of Consultants2.6 The Borrower is responsible forpreparation of the short list. The Borrower shallgive first consideration to those firmsexpressing interest that possess the relevantqualifications. Short lists shall comprise sixfirms with a wide geographic spread, with nomore than two firms from any one country andat least one firm from a developing country,unless qualified firms from developingcountries are not identified. The Bank mayagree to short lists comprising a smallernumber of firms in special circumstances, for

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19 UNDB is a publication of the United Nations.Subscription information is available from: DevelopmentBusiness, United Nations, GCPO Box 5850, New York, NY10163-5850, USA (Website: www.devbusiness.com; e-mail: dbsubscribe@un.org); Development Gateway Marketis an electronic portal of Development Gateway Foundation,1889 F Street NW, Washington, DC 20006, USA (Website:www.dgmarket.com).20 The General Procurement Notice is prepared by theBorrower and submitted to the Bank, which will arrange forits publication in United Nations Development Business(UNDB online) and in Development Gateway Market(dgMarket).

example, when only a few qualified firms haveexpressed interest for the specific assignment orwhen the size of the contract does not justifywider competition. For the purpose ofestablishing the short list, the nationality of afirm is that of the country in which it isregistered or incorporated and in the case ofJoint Venture, the nationality of the firmappointed to represent the Joint Venture. TheBank may agree with the Borrower to expandor reduce a short list; however, once the Bankhas issued a “no objection” to a short list, theBorrower shall not add or delete names withoutthe Bank’s approval. Firms that expressedinterest, as well as any other firm thatspecifically so requests, shall be provided thefinal short list of firms.

2.7 The short list may comprise entirelynational consultants (firms registered orincorporated in the country), if the assignmentis below the ceiling (or ceilings) established inthe Procurement Plan approved by the Bank,21

a sufficient number of qualified firms isavailable for having a short list of firms withcompetitive costs, and when competitionincluding foreign consultants is prima facie notjustified or foreign consultants have notexpressed interest. These same amounts will beused in Bank lending operations supportingSector Wide Approaches (SWAps)22 (in whichgovernment and/or donor funds are pooled) asthe threshold below which short lists will becomposed entirely of national firms selectedunder procedures agreed with the Bank.However, if foreign firms express interest, theyshall be considered.

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21 Dollar ceilings shall be determined in each case, takinginto account the nature of the project, the capacity ofnational consultants, and the complexity of the assignments.The ceiling (or ceilings) shall not in any case exceed theamount defined in the Country Procurement AssessmentReport (CPAR) for the Country of the Borrower. The dollarceilings for each borrowing country will be posted in theBank’s website.22 SWAps represent an approach by development agenciesto support country-led programs whose scale is greater thana single project. It typically encompasses an entire sector orlarge portions of one.

2.8 The short list should preferablycomprise consultants of the same category,similar capacity, and business objectives.Consequently, the short list should normally becomposed of firms of similar experience or ofnot-for-profit organizations (NGOs,Universities, UN Agencies, etc.) acting in thesame field of expertise. If mixing is used, theselection should be made using Quality-BasedSelection (QBS) or Selection Based on theConsultants’ Qualifications (CQS) (for smallassignments).23 The short list shall not includeIndividual Consultants.

Preparation and Issuance of the Requestfor Proposals (RFP)2.9 The RFP shall include (a) a Letter ofInvitation, (b) Information to Consultants, (c)the TOR, and (d) the proposed contract.Borrowers shall use the applicable standardRFPs issued by the Bank with minimal changes,acceptable to the Bank, as necessary to addressproject-specific conditions. Any such changesshall be introduced only through the RFP datasheet. Borrowers shall list all the documentsincluded in the RFP. The Borrower may use anelectronic system to distribute the RFP,provided that the Bank is satisfied with theadequacy of such system. If the RFP isdistributed electronically, the electronic systemshall be secure to avoid modifications to theRFP and shall not restrict the access of short-listed consultants to the RFP.

Letter of Invitation (LOI)2.10 The LOI shall state the intention of theBorrower to enter into a contract for theprovision of consulting services, the source offunds, the details of the client and the date,time, and address for submission of proposals.

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23 Dollar thresholds defining “small” shall be determined ineach case, taking into account the nature and complexity ofthe assignment, but shall not exceed US$200,000.

Instructions to Consultants (ITC)2.11 The ITC shall contain all necessaryinformation that would help consultantsprepare responsive proposals, and shall bringas much transparency as possible to theselection procedure by providing informationon the evaluation process and by indicating theevaluation criteria and factors and theirrespective weights and the minimum passingquality score. The ITC shall indicate an estimateof the level of key staff inputs (in staff time)required of the consultants or the total budget,but not both. Consultants, however, shall befree to prepare their own estimates of staff timeto carry out the assignment and to offer thecorresponding cost in their proposals. The ITCshall specify the proposal validity period,which should be adequate for the evaluation ofproposals, decision on award, Bank review, andfinalization of contract negotiations. A detailedlist of the information that should be includedin the ITC is provided in Appendix 2.

Contract2.12 Section IV of these Guidelines brieflydiscusses the most common types of contracts.Borrowers shall use the appropriate StandardForm of Contract issued by the Bank withminimum changes, acceptable to the Bank, asnecessary to address specific country andproject issues. Any such changes shall beintroduced only through Contract Data Sheetsor through Special Conditions of Contract andnot by introducing changes in the wording ofthe General Conditions of Contract included inthe Bank’s Standard Form. These forms ofcontract cover the majority of consultingservices. When these forms are not appropriate(for example, for preshipment inspection,procurement services, training of students inuniversities, advertising activities inprivatization, or twinning) Borrowers shall useother contract forms acceptable to the Bank.

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Receipt of Proposals2.13 The Borrower shall allow enough timefor the consultants to prepare their proposals.The time allowed shall depend on theassignment, but normally shall not be less thanfour weeks or more than three months (forexample, for assignments requiringestablishment of a sophisticated methodology,preparation of a multidisciplinary master plan).During this interval, the firms may requestclarifications about the information provided inthe RFP. The Borrower shall provide theseclarifications in writing and copy them to allfirms on the short list (who intend to submitproposals). If necessary, the Borrower shallextend the deadline for submission ofproposals. The technical and financial proposalsshall be submitted at the same time. Noamendments to the technical or financialproposal shall be accepted after the deadline. Tosafeguard the integrity of the process, thetechnical and financial proposals shall besubmitted in separate sealed envelopes. Thetechnical envelopes shall be openedimmediately by a committee of officials drawnfrom the relevant departments (technical,finance, legal, as appropriate), after the closingtime for submission of proposals. The financialproposals shall remain sealed and shall bedeposited with a reputable public auditor orindependent authority until they are openedpublicly. Any proposal received after theclosing time for submission of proposals shallbe returned unopened. Borrowers may useelectronic systems permitting consultants tosubmit proposals by electronic means, providedthe Bank is satisfied with the adequacy of thesystem, including, inter alia, that the system issecure, maintains the confidentiality andauthenticity of proposals submitted, uses anelectronic signature system or equivalent tokeep consultants bound to their proposals, andonly allows proposals to be opened with duesimultaneous electronic authorization of theconsultant and the Borrower. In this case,consultants shall continue to have the option tosubmit their proposals in hard copy.

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Evaluation of Proposals: Consideration ofQuality and Cost2.14 The evaluation of the proposals shall becarried out in two stages: first the quality, andthen the cost. Evaluators of technical proposalsshall not have access to the financial proposalsuntil the technical evaluation, including anyBank reviews and no objection, is concluded.Financial proposals shall be opened onlythereafter. The evaluation shall be carried out infull conformity with the provisions of the RFP.

Evaluation of the Quality2.15 The Borrower shall evaluate eachtechnical proposal (using an evaluationcommittee of three or more specialists in thesector), taking into account several criteria: (a)the consultant’s relevant experience for theassignment, (b) the quality of the methodologyproposed, (c) the qualifications of the key staffproposed, (d) transfer of knowledge, if requiredin the TOR, and (e) the extent of participationby nationals among key staff in theperformance of the assignment. Each criterionshall be marked on a scale of 1 to 100. Then themarks shall be weighted to become scores. Thefollowing weights are indicative. The actualpercentage figures to be used shall fit thespecific assignment and shall be within theranges indicated below, except with theapproval of the Bank. The proposed weightsshall be disclosed in the RFP.

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Consultant’s specific experience: 0 to 10 points

Methodology: 20 to 50 points

Key personnel: 30 to 60 points

Transfer of knowledge:24 0 to 10 points

Participation by nationals:25 0 to 10 points

Total: 100 points

2.16 The Borrower shall normally dividethese criteria into subcriteria. For example,subcriteria under methodology might beinnovation and level of detail. However, thenumber of subcriteria should be kept to theessential. The Bank recommends against the useof exceedingly detailed lists of subcriteria thatmay render the evaluation a mechanicalexercise more than a professional assessment ofthe proposals. The weight given to experiencecan be relatively modest, since this criterion hasalready been taken into account when short-listing the consultant. More weight shall begiven to the methodology in the case of morecomplex assignments (for example,multidisciplinary feasibility or managementstudies).

2.17 Evaluation of only the key personnel isrecommended. Since key personnel ultimatelydetermine the quality of performance, moreweight shall be assigned to this criterion if theproposed assignment is complex. The Borrowershall review the qualifications and experienceof proposed key personnel in their curriculavitae, which must be accurate, complete, andsigned by an authorized official of theconsulting firm and the individual proposed.

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24 Transfer of knowledge may be the main objective of someassignments; in such cases, it shall be indicated in the TORand, only with Bank prior approval may be given a higherweight to reflect its importance.25 As reflected by nationals among key staff presented byforeign and national firms.

The individuals shall be rated in the followingthree subcriteria, as relevant to the task:

(a) general qualifications: generaleducation and training, length ofexperience, positions held, time withthe consulting firm as staff, experiencein developing countries, and so forth;

(b) adequacy for the assignment:education, training, and experience inthe specific sector, field, subject, and soforth, relevant to the particularassignment; and

(c) experience in the region: knowledge ofthe local language, culture,administrative system, governmentorganization, and so forth.

2.18 Borrowers shall evaluate each proposalon the basis of its responsiveness to the TOR. Aproposal shall be considered unsuitable andshall be rejected at this stage if it does notrespond to important aspects of the TOR or itfails to achieve a minimum technical scorespecified in the RFP.

2.19 At the end of the process, the Borrowershall prepare a Technical Evaluation Report ofthe “quality” of the proposals and, in the caseof contracts subject to prior review, submit it tothe Bank for its review and “no objection”. Thereport shall substantiate the results of theevaluation and describe the relative strengthsand weaknesses of the proposals. All recordsrelating to the evaluation, such as individualmark sheets, shall be retained until completionof the project and its audit.

Evaluation of Cost2.20 After the evaluation of quality iscompleted and the Bank has issued its noobjection, the Borrower shall inform theconsultants who have submitted proposals, thetechnical points assigned to each consultantand shall notify those consultants whoseproposals did not meet the minimumqualifying mark or were considered

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nonresponsive to the RFP and TOR that theirfinancial proposals will be returned unopenedafter the signature of the contract. TheBorrower shall simultaneously notify theconsultants that have secured the minimumqualifying mark, the date, time, and place setfor opening the financial proposals. Theopening date shall be defined allowingsufficient time for consultants to makearrangements to attend the opening of thefinancial proposals. The financial proposalsshall be opened publicly in the presence ofrepresentatives of the consultants who chooseto attend (in person or online). The name of theconsultant, the technical points, and theproposed prices shall be read aloud (and postedonline when electronic submission of proposalsis used) and recorded when the financialproposals are opened, and a copy of this recordshall be promptly sent to the Bank. TheBorrower shall also prepare the minutes of thepublic opening and a copy of this record shallbe promptly sent to the Bank and to allconsultants who submitted proposals.

2.21 The Borrower shall then review thefinancial proposals. If there are any arithmeticalerrors, they shall be corrected. For the purposeof comparing proposals, the costs shall beconverted to a single currency selected by theBorrower (local currency or fully convertibleforeign currency) as stated in the RFP. TheBorrower shall make this conversion by usingthe selling (exchange) rates for those currenciesquoted by an official source (such as the CentralBank) or by a commercial bank or by aninternationally circulated newspaper for similartransactions. The RFP shall specify the source ofthe exchange rate to be used and the date ofthat exchange rate, provided that the date shallnot be earlier than four weeks prior to thedeadline for submission of proposals, nor laterthan the original date of expiration of theperiod of validity of the proposal.

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2.22 For the purpose of evaluation, “cost”shall exclude local identifiable indirect taxes26

on the contract and income tax payable to thecountry of the Borrower on the remuneration ofservices rendered in the country of theBorrower by non-resident staff of theconsultant. The cost shall include allconsultant’s remuneration and other expensessuch as travel, translation, report printing, orsecretarial expenses. The proposal with thelowest cost may be given a financial score of100 and other proposals given financial scoresthat are inversely proportional to their prices.Alternatively, a directly proportional or othermethodology may be used in allocating themarks for the cost. The methodology to be usedshall be described in the RFP.

Combined Quality and Cost Evaluation2.23 The total score shall be obtained byweighting the quality and cost scores andadding them. The weight for the “cost” shall bechosen, taking into account the complexity ofthe assignment and the relative importance ofquality. Except for the type of services specifiedin Section III, the weight for cost shall normallybe 20 points out of a total score of 100. Theproposed weightings for quality and cost shallbe specified in the RFP. The firm obtaining thehighest total score shall be invited fornegotiations.

Negotiations and Award of Contract2.24 Negotiations shall include discussionsof the TOR, the methodology, staffing,Borrower’s inputs, and special conditions of thecontract. These discussions shall notsubstantially alter the original TOR or the termsof the contract, lest the quality of the finalproduct, its cost, and the relevance of the initialevaluation be affected. Major reductions inwork inputs should not be made solely to meetthe budget. The final TOR and the agreedmethodology shall be incorporated in

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26 All indirect taxes levied on the contract invoices, atNational, State (or Provincial) and Municipal levels.

“Description of Services,” which shall form partof the contract.

2.25 The selected firm should not beallowed to substitute key staff, unless bothparties agree that undue delay in the selectionprocess makes such substitution unavoidable orthat such changes are critical to meet theobjectives of the assignment.27 If this is not thecase and if it is established that key staff wereincluded in the proposal without confirmingtheir availability, the firm may be disqualifiedand the process continued with the next rankedfirm. The key staff proposed for substitutionshall have qualifications equal to or better thanthe key staff initially proposed.

2.26 Financial negotiations shall includeclarification of the consultants’ tax liability inthe Borrower’s country (if any) and how thistax liability has been or would be reflected inthe contract. As Lump-Sum Contracts paymentsare based on delivery of outputs (or products),the offered price shall include all costs (stafftime, overhead, travel, hotel, etc.).Consequently, if the selection method for aLump-sum contract included price as acomponent, this price shall not be negotiated.In the case of Time-based Contracts, payment isbased on inputs (staff time and reimbursables)and the offered price shall include staff ratesand an estimation of the amount ofreimbursables. When the selection methodincludes price as a component, negotiations ofstaff rates should not take place, except inspecial circumstances, like for example, staffrates offered are much higher than typicallycharged rates by consultants for similarcontracts. Consequently, the prohibition ofnegotiation does not preclude the right of theclient to ask for clarifications, and, if fee arevery high, to ask for change of fees, after dueconsultation with the Bank. Reimbursables areto be paid on actual expenses incurred at costupon presentation of receipts and therefore arenot subject to negotiations. However, if the

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27 Defining realistic proposal validity periods in the RFP andcarrying out an efficient evaluation minimizes this risk.

client wants to define ceilings for unit prices ofcertain reimbursables (like travel or hotel rates),they should indicate the maximum levels ofthose rates in the RFP or define a per diem inthe RFP.

2.27 If the negotiations fail to result in anacceptable contract, the Borrower shallterminate the negotiations and invite the nextranked firm for negotiations. The Borrowershall consult with the Bank prior to taking thisstep. The consultant shall be informed of thereasons for termination of the negotiations.Once negotiations are commenced with thenext ranked firm, the Borrower shall not reopenthe earlier negotiations. After negotiations aresuccessfully completed and the Bank has issuedits no objection28 to the initialed negotiatedcontract, the Borrower shall promptly notifyother firms on the short list that they wereunsuccessful.

Publication of the Award of Contract2.28 After the award of contract, theborrower shall publish in UNDB online and indgMarket the following information: (a) thenames of all consultants who submittedproposals; (b) the technical points assigned toeach consultant; (c) the evaluated prices of eachconsultant; (d) the final point ranking of theconsultants; (e) the name of the winningconsultant and the price, duration, andsummary scope of the contract. The sameinformation shall be sent to all consultants whohave submitted proposals.

Debriefing2.29 In the publication of contract awardreferred to in paragraph 2.28 the Borrower shallspecify that any consultant who wishes toascertain the grounds on which its proposalwas not selected, should request an explanationfrom the Borrower. The Borrower shallpromptly provide the explanation as to whysuch proposal was not selected, either in

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28 For Contracts subject to the Bank’s prior review.

writing and/or in a debriefing meeting, at theoption of the consultant. The requestingconsultant shall bear all the costs of attendingsuch a debriefing.

Rejection of All Proposals, andReinvitation2.30 The Borrower will be justified inrejecting all proposals only if all proposals arenonresponsive because they present majordeficiencies in complying with the TOR or ifthey involve costs substantially higher than theoriginal estimate. In the latter case, thefeasibility of increasing the budget, or scalingdown the scope of services with the firmshould be investigated in consultation with theBank. Before all the proposals are rejected andnew proposals are invited, the Borrower shallnotify the Bank, indicating the reasons forrejection of all proposals, and shall obtain theBank’s “no objection” before proceeding withthe rejection and the new process. The newprocess may include revising the RFP(including the short list) and the budget. Theserevisions shall be agreed upon with the Bank.

Confidentiality2.31 Information relating to evaluation ofproposals and recommendations concerningawards shall not be disclosed to the consultantswho submitted the proposals or to otherpersons not officially concerned with theprocess, until the publication of the award ofcontract, except as provided in paragraph 2.20and 2.27.

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III. OTHER METHODS OF SELECTION

General3.1 This section describes the selectionmethods other than QCBS, and thecircumstances under which they are acceptable.All the relevant29 provisions of Section II(QCBS) shall apply whenever competition isused.

Quality-Based Selection (QBS)3.2 QBS is appropriate for the followingtypes of assignments:

(a) complex or highly specializedassignments for which it is difficult todefine precise TOR and the requiredinput from the consultants, and forwhich the client expects the consultantsto demonstrate innovation in theirproposals (for example, countryeconomic or sector studies,multisectoral feasibility studies, designof a hazardous waste remediation plantor of an urban master plan, financialsector reforms);

(b) assignments that have a highdownstream impact and in which theobjective is to have the best experts (forexample, feasibility and structuralengineering design of such majorinfrastructure as large dams, policystudies of national significance,management studies of largegovernment agencies); and

(c) assignments that can be carried out insubstantially different ways, such thatproposals will not be comparable (forexample, management advice, andsector and policy studies in which the

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29 All provisions of Section II shall be applied with themodifications and suppressions required by the method forselecting consultants used in the specific case.Advertisement for expression of interest is not requiredwhen single-source selection is used.

value of the services depends on thequality of the analysis).

3.3 In QBS, the RFP may requestsubmission of a technical proposal only(without the financial proposal), or requestsubmission of both technical and financialproposals at the same time, but in separateenvelopes (two-envelope system). The RFPshall provide either the estimated budget or theestimated number of key staff time, specifyingthat this information is given as an indicationonly and that consultants shall be free topropose their own estimates.

3.4 If technical proposals alone wereinvited, after evaluating the technical proposalsusing the same methodology as in QCBS, theBorrower shall ask the consultant with thehighest ranked technical proposal to submit adetailed financial proposal. The Borrower andthe consultant shall then negotiate the financialproposal30 and the contract. All other aspects ofthe selection process shall be identical to thoseof QCBS, including the publication of theAward of Contract as described in paragraph2.28 except that only the price of the winningfirm is published. If consultants were requestedto provide financial proposals initially togetherwith the technical proposals, safeguards shallbe built in as in QCBS to ensure that the priceproposal of only the selected firm is openedand the rest returned unopened, after thenegotiations are successfully concluded.

Selection under a Fixed Budget (FBS)3.5 This method is appropriate only whenthe assignment is simple and can be preciselydefined and when the budget is fixed. The RFPshall indicate the available budget and requestthe consultants to provide their best technicaland financial proposals in separate envelopes,within the budget. TOR should be particularlywell prepared to make sure that the budget issufficient for the consultants to perform theexpected tasks. Evaluation of all technical

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30 Financial negotiations under QBS includes negotiations ofall consultant’s remuneration and other expenses.

proposals shall be carried out first as in theQCBS method. Then the price proposals shallbe opened in public and prices shall be read outaloud. Proposals that exceed the indicatedbudget shall be rejected. The Consultant whohas submitted the highest ranked technicalproposal among the rest shall be selected andinvited to negotiate a contract. The publicationof the Award of Contract shall be as describedin paragraph 2.28.

Least-Cost Selection (LCS)3.6 This method is only appropriate forselecting consultants for assignments of astandard or routine nature (audits, engineeringdesign of noncomplex works, and so forth)where well-established practices and standardsexist. Under this method, a “minimum”qualifying mark for the “quality” is established.Proposals, to be submitted in two envelopes,are invited from a short list. Technical proposalsare opened first and evaluated. Those securingless than the minimum qualifying mark31 arerejected, and the financial proposals of the restare opened in public. The firm with the lowestprice shall then be selected and the publicationof the Award of Contract shall be as describedin paragraph 2.28. Under this method, theminimum qualifying mark shall be established,understanding that all proposals above theminimum compete only on “cost.” Theminimum qualifying mark shall be stated in theRFP.

Selection Based on the Consultants’Qualifications (CQS)3.7 This method may be used for small32

assignments for which the need for preparingand evaluating competitive proposals is notjustified. In such cases, the Borrower shall

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31 This method shall not be used as a substitute for QCBSand shall be used only for the specific cases of very standardand routine technical nature where the intellectualcomponent is minor. For this method the minimumqualifying mark shall be 70 points or higher.32 Dollar thresholds defining “small” shall be determined ineach case, taking into account the nature and complexity ofthe assignment, but shall not exceed US$200,000.

prepare the TOR, request expressions of interestand information on the consultants’ experienceand competence relevant to the assignment,establish a short list, and select the firm withthe most appropriate qualifications andreferences. The selected firm shall be asked tosubmit a combined technical-financial proposaland then be invited to negotiate the contract.

3.8 The Borrower shall publish in UNDBonline and in dgMarket the name of theconsultant to which the contract was awarded,and the price, duration, and scope of thecontract. This publication may be donequarterly and in the format of a summarizedtable covering the previous period.

Single-Source Selection (SSS)3.9 Single-source selection of consultantsdoes not provide the benefits of competition inregard to quality and cost, lacks transparency inselection, and could encourage unacceptablepractices. Therefore, single-source selectionshall be used only in exceptional cases. Thejustification for single-source selection shall beexamined in the context of the overall interestsof the client and the project, and the Bank’sresponsibility to ensure economy and efficiencyand provide equal opportunity to all qualifiedconsultants.

3.10 Single-source selection may beappropriate only if it presents a clear advantageover competition: (a) for tasks that represent anatural continuation of previous work carriedout by the firm (see next paragraph), (b) inemergency cases, such as in response todisasters and for consulting services requiredduring the period of time immediatelyfollowing the emergency, (c) for very small33

assignments, or (d) when only one firm isqualified or has experience of exceptionalworth for the assignment.

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33 Dollar thresholds defining “very small” shall bedetermined in each case, taking into account the nature andcomplexity of the assignment, but shall not exceedUS$100,000.

3.11 When continuity for downstream workis essential, the initial RFP shall outline thisprospect, and, if practical, the factors used forthe selection of the consultant shall take thelikelihood of continuation into account.Continuity in the technical approach,experience acquired, and continuedprofessional liability of the same consultantmay make continuation with the initialconsultant preferable to a new competitionsubject to satisfactory performance in the initialassignment. For such downstream assignments,the Borrower shall ask the initially selectedconsultant to prepare technical and financialproposals on the basis of TOR furnished by theBorrower, which shall then be negotiated.

3.12 If the initial assignment was notawarded on a competitive basis or wasawarded under tied financing or if thedownstream assignment is substantially largerin value, a competitive process acceptable to theBank shall normally be followed in which theconsultant carrying out the initial work is notexcluded from consideration if it expressesinterest. The Bank will consider exceptions tothis rule only under special circumstances andonly when a new competitive process is notpracticable.

3.13 The Borrower shall publish in UNDBonline and in dgMarket the name of theconsultant to which the contract was awardedand the price, duration, and scope of thecontract. This publication may be donequarterly and in the format of a summarizedtable covering the previous period.

Commercial Practices3.14 In the case of loans onlent by a financialintermediary to private sector enterprises orautonomous commercial enterprises in thepublic sector, the Sub-Borrower may followwell-established private sector or commercialpractices that have been determined by theBank to be acceptable to it. Consideration shallalso be given to the use of competitiveprocedures outlined earlier, particularly forlarge assignments.

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Selection of Particular Types ofConsultants3.15 Selection of UN Agencies as Consultants.UN agencies may be hired as the consultants,where they are qualified to provide technicalassistance and advice in their area of expertise.However, they shall not receive any preferentialtreatment in a competitive selection process,except that Borrowers may accept the privilegesand immunities granted to UN agencies andtheir staff under existing internationalconventions and may agree with UN agencieson special payment arrangements requiredaccording to the agency’s charter, providedthese are acceptable to the Bank. To neutralizethe privileges of UN Agencies, as well as otheradvantages such as tax exemption and facilities,and special payment provisions, the QBSmethod shall be used. UN agencies may behired on a single-source selection basis if thecriteria outlined in paragraph 3.10 of theseGuidelines are fulfilled.

3.16 Use of Nongovernmental Organizations(NGOs). NGOs are voluntary nonprofitorganizations that may be uniquely qualified toassist in the preparation, management, andimplementation of projects, essentially becauseof their involvement and knowledge of localissues, community needs, and/or participatoryapproaches. NGOs may be included in theshort list if they express interest and providedthat the Borrower and the Bank are satisfiedwith their qualifications. Borrowers shouldpreferably not include consulting firms in theshort list for services for which NGOs are betterqualified. For assignments that emphasizeparticipation and considerable local knowledge,the short list may comprise entirely NGOs. Ifso, the QCBS procedure shall be followed, andthe evaluation criteria shall reflect the uniquequalifications of NGOs, such as voluntarism,nonprofit status, local knowledge, scale ofoperation, and reputation. Borrowers mayselect the NGO on a single-source basis,provided the criteria outlined in paragraph 3.10of these Guidelines are fulfilled.

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3.17 Procurement Agents (PAs). When aBorrower lacks the necessary organization,resources, or experience, it may be efficient andeffective for it to employ, as its agent, a firmthat specializes in handling procurement. WhenPAs are specifically used as “agents” handlingthe procurement of specific items and generallyworking from their own offices, they areusually paid a percentage of the value of theprocurements handled, or a combination ofsuch a percentage and a fixed fee. In such casesPAs shall be selected using QCBS procedureswith cost being given a weight up to 50 percent.However, when PAs provide only advisoryservices for procurement or act as “agents” fora whole project in a specific office for suchproject they are usually paid on a time basis,and in such cases, they shall be selectedfollowing the appropriate procedures for otherconsulting assignments using QCBS proceduresand time-based contract, specified in theseGuidelines. The agent shall follow all theprocurement procedures outlined in the LoanAgreement and in the Procurement Planapproved by the Bank on behalf of theBorrower, including use of Bank StandardRequest for Proposals, review procedures, anddocumentation

3.18 Inspection Agents. Borrowers may wishto employ inspection agencies to inspect andcertify goods prior to shipment or on arrival inthe Borrower country. The inspection by suchagencies usually covers the quality andquantity of the goods concerned andreasonableness of price. Inspection agenciesshall be selected using QCBS procedures givingcost a weight up to 50 percent and using acontract format with payments based on apercentage of the value of goods inspected andcertified.

3.19 Banks. Investment and commercialbanks, financial firms, and fund managers hiredby Borrowers for the sale of assets, issuance offinancial instruments, and other corporatefinancial transactions, notably in the context ofprivatization operations, shall be selected under

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QCBS. The RFP shall specify selection criteriarelevant to the activity—for example,experience in similar assignments or network ofpotential purchasers—and the cost of theservices. In addition to the conventionalremuneration (called a “retainer fee”), thecompensation includes a “success fee”; this feecan be fixed, but is usually expressed as apercentage of the value of the assets or otherfinancial instruments to be sold. The RFP shallindicate that the cost evaluation will take intoaccount the success fee, either in combinationwith the retainer fee or alone. If alone, astandard retainer fee shall be prescribed for allshort-listed consultants and indicated in theRFP, and the financial scores shall be based onthe success fee. For the combined evaluation(notably for large contracts), cost may beaccorded a weight higher than recommended inparagraph 2.23 or the selection may be basedon cost alone among those who secure aminimum passing mark for the quality of theproposal. The RFP shall specify clearly howproposals will be presented and how they willbe compared.

3.20 Auditors. Auditors typically carry outauditing tasks under well-defined TOR andprofessional standards. They shall be selectedaccording to QCBS, with cost as a substantialselection factor (40-50 points) or by the “Least-Cost Selection” outlined in paragraph 3.6. Forvery small34 assignments CQS may be used.

3.21 “Service Delivery Contractors.” Projectsin the social sectors in particular may involvehiring of large numbers of individuals whodeliver services on a contract basis (forexample, social workers, such as nurses andparamedics). The job descriptions, minimumqualifications, terms of employment, selectionprocedures, and the extent of Bank review ofthese procedures and documents shall bedescribed in the project documentation and thecontract shall be included in the ProcurementPlan approved by the Bank.

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34 See footnote 33.

IV. TYPES OF CONTRACTS ANDIMPORTANT PROVISIONS

Types of Contracts4.1 Lump Sum Contract.35 Lump sumcontracts are used mainly for assignments inwhich the content and the duration of theservices and the required output of theconsultants are clearly defined. They are widelyused for simple planning and feasibilitystudies, environmental studies, detailed designof standard or common structures, preparationof data processing systems, and so forth.Payments are linked to outputs (deliverables),such as reports, drawings, bills of quantities,bidding documents, and software programs.Lump sum contracts are easy to administerbecause payments are due on clearly specifiedoutputs.

4.2 Time-Based Contract.36 This type ofcontract is appropriate when it is difficult todefine the scope and the length of services,either because the services are related toactivities by others for which the completionperiod may vary, or because the input of theconsultants required to attain the objectives ofthe assignment is difficult to assess. This type ofcontract is widely used for complex studies,supervision of construction, advisory services,and most training assignments. Payments arebased on agreed hourly, daily, weekly, ormonthly rates for staff (who are normallynamed in the contract) and on reimbursableitems using actual expenses and/or agreed unitprices. The rates for staff include salary, socialcosts, overhead, fee (or profit), and, whereappropriate, special allowances. This type ofcontract shall include a maximum amount oftotal payments to be made to the consultants.This ceiling amount should include acontingency allowance for unforeseen work

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35 Standard form of Contract for Consultants’ Services (LumpSum Remuneration).36 Standard form of Contract for Consultants’ Services(Complex Time-Based Assignments). These documents areavailable on the Bank’s website athttp://www.worldbank.org/procure.

and duration, and provision for priceadjustments, where appropriate. Time-basedcontracts need to be closely monitored andadministered by the client to ensure that theassignment is progressing satisfactorily andthat payments claimed by the consultants areappropriate.

4.3 Retainer and/or Contingency (Success) FeeContract. Retainer and contingency fee contractsare widely used when consultants (banks orfinancial firms) are preparing companies forsales or mergers of firms, notably inprivatization operations. The remuneration ofthe consultant includes a retainer and a successfee, the latter being normally expressed as apercentage of the sale price of the assets.

4.4 Percentage Contract. These contracts arecommonly used for architectural services. Theymay be also used for procurement andinspection agents. Percentage contracts directlyrelate the fees paid to the consultant to theestimated or actual project construction cost, orthe cost of the goods procured or inspected.The contracts are negotiated on the basis ofmarket norms for the services and/or estimatedstaff-month costs for the services, orcompetitively bid. It should be borne in mindthat in the case of architectural or engineeringservices, percentage contracts implicitly lackincentive for economic design and are hencediscouraged. Therefore, the use of such acontract for architectural services isrecommended only if it is based on a fixedtarget cost and covers precisely defined services(for example, not works supervision).

4.5 Indefinite Delivery Contract (PriceAgreement). These contracts are used whenBorrowers need to have “on call” specializedservices to provide advice on a particularactivity, the extent and timing of which cannotbe defined in advance. These are commonlyused to retain “advisers” for implementation ofcomplex projects (for example, dam panel),expert adjudicators for dispute resolutionpanels, institutional reforms, procurementadvice, technical troubleshooting, and so forth,

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normally for a period of a year or more. TheBorrower and the firm agree on the unit rates tobe paid for the experts, and payments are madeon the basis of the time actually used.

Important Provisions4.6 Currency. RFPs shall clearly state thatfirms may express the price for their services, inany fully convertible currency. If theconsultants wish to express the price as a sumof amounts in different foreign currencies, theymay do so, provided the proposal includes nomore than three foreign currencies. TheBorrower may require consultants to state theportion of the price representing costs in thecurrency of the Borrower’s country. Paymentunder the contract shall be made in thecurrency or currencies in which the price isexpressed in the proposal.

4.7 Price Adjustment. To adjust theremuneration for foreign and/or local inflation,a price adjustment provision shall be includedin the contract if its duration is expected toexceed 18 months. Contracts of shorter durationmay include a provision for price adjustmentwhen local or foreign inflation is expected to behigh and unpredictable.

4.8 Payment Provisions. Payment provisions,including amounts to be paid, schedule ofpayments, and payment procedures, shall beagreed upon during negotiations. Paymentsmay be made at regular intervals (as undertime-based contracts) or for agreed outputs (asunder lump sum contracts). Payments foradvances (for example, for mobilization costs)exceeding 10 percent of the contract amountshould normally be backed by advancepayment securities.

4.9 Payments shall be made promptly inaccordance with the contract provisions. To thatend,

(a) consultants can be paid directly by theBank at the request of the Borrower orexceptionally through a Letter ofCredit;

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(b) only disputed amounts shall bewithheld, with the remainder of theinvoice paid in accordance with thecontract; and

(c) the contract shall provide for thepayment of financing charges ifpayment is delayed due to the client’sfault beyond the time allowed in thecontract; the rate of charges shall bespecified in the contract.

4.10 Bid and Performance Securities. Bid andperformance securities are not recommendedfor consultants’ services. Their enforcement isoften subject to judgment calls, they can beeasily abused, and they tend to increase thecosts to the consulting industry without evidentbenefits, which are eventually passed on to theBorrower.

4.11 Borrower’s Contribution. The Borrowermay assign members of its own professionalstaff to the assignment in different capacities.The contract between the Borrower and theconsultant shall give the details governing suchstaff, known as counterpart staff, as well asfacilities that shall be provided by the Borrower,such as housing, office space, secretarialsupport, utilities, materials, and vehicles. Thecontract shall indicate measures the consultantcan take if any of the items cannot be providedor have to be withdrawn during theassignment, and the compensation theconsultant will receive in such a case.

4.12 Conflict of Interest. The consultant shallnot receive any remuneration in connectionwith the assignment except as provided in thecontract. The consultant and its affiliates shallnot engage in consulting or other activities thatconflict with the interest of the client under thecontract. The contract shall include provisionslimiting future engagement of the consultantfor other services resulting from or directlyrelated to the firm’s consulting services inaccordance with the requirements ofparagraphs 1.9 and 1.10 of the Guidelines.

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4.13 Professional Liability. The consultant isexpected to carry out its assignment with duediligence and in accordance with prevailingstandards of the profession. As the consultant’sliability to the Borrower will be governed bythe applicable law, the contract need not dealwith this matter unless the parties wish to limitthis liability. If they do so, they should ensurethat (a) there must be no such limitation in caseof the consultant’s gross negligence or willfulmisconduct; (b) the consultant’s liability to theBorrower may in no case be limited to less thana multiplier of the total value of the contract tobe indicated in the RFP and in the specialconditions of the contract (the amount of suchlimitation will depend on each specific case);37

and (c) any such limitation may deal only withthe consultant’s liability toward the client andnot with the consultant’s liability toward thirdparties.

4.14 Staff Substitution. During anassignment, if substitution is necessary (forexample, because of ill health or because a staffmember proves to be unsuitable), theconsultant shall propose other staff of at leastthe same level of qualifications for approval bythe Borrower.

4.15 Applicable Law and Settlement of Disputes.The contract shall include provisions dealingwith the applicable law and the forum for thesettlement of disputes. Consultants’ contractsshall always include a clause for settlement ofdisputes. International commercial arbitrationmay have practical advantages over othermethods for the settlement of disputes.Borrowers are, therefore, encouraged to providefor this type of arbitration. The Bank shall notbe named an arbitrator or be asked to name anarbitrator.38

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37 The Borrower is encouraged to secure insurance forpotential risks above these limits.38 It is understood, however, that officials of theInternational Centre for Settlement of Investment Disputes(ICSID) shall remain free to name arbitrators in theircapacity as ICSID officials.

V. SELECTION OF INDIVIDUALCONSULTANTS

5.1 Individual consultants are employed onassignments for which (a) teams of personnelare not required, (b) no additional outside(home office) professional support is required,and (c) the experience and qualifications of theindividual are the paramount requirement.When coordination, administration, orcollective responsibility may become difficultbecause of the number of individuals, it wouldbe advisable to employ a firm.

5.2 Individual consultants are selected onthe basis of their qualifications for theassignment. Advertisement is not required39

and consultants do not need to submitproposals. Consultants shall be selectedthrough comparison of qualifications of at leastthree candidates among those who haveexpressed interest in the assignment or havebeen approached directly by the Borrower.Individuals considered for comparison ofqualifications shall meet the minimum relevantqualifications and those selected to beemployed by the Borrower shall be the bestqualified and shall be fully capable of carryingout the assignment. Capability is judged on thebasis of academic background, experience, and,as appropriate, knowledge of the localconditions, such as local language, culture,administrative system, and governmentorganization.

5.3 From time to time, permanent staff orassociates of a consulting firm may be availableas individual consultants. In such cases, theconflict of interest provisions described in theseGuidelines shall apply to the parent firm.

5.4 Individual consultants may be selectedon a sole-source basis with due justification inexceptional cases such as: (a) tasks that are acontinuation of previous work that theconsultant has carried out and for which the

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39 However, in some cases Borrowers may consider theadvantage of advertising at their option.

consultant was selected competitively; (b)assignments with total expected duration ofless than six months; (c) emergency situationsresulting from natural disasters; and (d) whenthe individual is the only consultant qualifiedfor the assignment.

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APPENDIX 1: REVIEW BY THE BANKOF THE SELECTION OF

CONSULTANTSScheduling the Selection Process1. The Bank shall review the selectionprocess for the hiring of consultants proposedby the Borrower in the Procurement Plan toensure compliance with the Loan Agreementand these Guidelines. The Procurement Planshall cover an initial period of at least 18months. The Borrower shall update theProcurement Plan on an annual basis or asneeded always covering the next 18 monthsperiod of project implementation. Any revisionsproposed to the Procurement Plan shall befurnished to the Bank for its prior approval.

Prior Review 2. With respect to all contracts that aresubject to the Bank’s prior review:

(a) Before inviting proposals, the Borrowershall furnish to the Bank for its reviewand “no objection” the proposed costestimate and RFP (including the shortlist). The Borrower shall make suchmodifications to the short list and thedocuments as the Bank reasonablyrequests. Any further modification shallrequire the Bank’s “no objection” beforethe RFP is issued to the short-listedconsultants.40

(b) After the technical proposals have beenevaluated, the Borrower shall furnish tothe Bank, in sufficient time for itsreview, a technical evaluation report(prepared, if the Bank shall so request,by experts acceptable to the Bank) and

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40 In the case of contracts to be awarded under para 3.12where a new competitive process is not practicable, theBorrower shall not initiate negotiations without firstfurnishing to the Bank for its consideration the requiredjustification and receiving the Bank’s “no objection,” andshall otherwise follow the requirements of this paragraph 2in all relevant respects.

a copy of the proposals, if requested bythe Bank. If the Bank determines thatthe technical evaluation is inconsistentwith the provisions of the RFP, it shallpromptly inform the Borrower andstate the reasons for its determination;otherwise, the Bank shall issue a “noobjection” to the technical evaluation.The Borrower shall also request theBank’s “no objection” if the evaluationreport recommends rejection of allproposals.

(c) The Borrower may proceed with theopening of the financial proposals onlyafter receiving the Bank’s “noobjection” to the technical evaluation.When price is a factor in the selectionof the consultant, the Borrower maythen proceed with the financialevaluation in accordance with theprovisions of the RFP. The Borrowershall furnish to the Bank, for itsinformation, the final evaluation reportalong with its recommendation of thewinning firm. The Borrower shallnotify the firm that received the highesttotal score in the final evaluation of itsintention to award the contract to thefirm and shall invite the firm fornegotiations.

(d) If the Borrower receives complaintsfrom consultants, a copy of thecomplaint and a copy of the Borrower’sresponse shall be sent to the Bank forinformation.

(e) If as result of analysis of a complaintthe Borrower changes its contractaward recommendation, the reasons forsuch decision and a revised evaluationreport shall be submitted to the Bankfor no objection. The Borrower shallprovide a republication of the contractaward in the format of paragraph 2.28of these Guidelines.

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(f) After negotiations are completed, theBorrower shall furnish to the Bank, insufficient time for its review, a copy ofthe initialed negotiated contract. If thenegotiated contract resulted insubstitution of key staff or any changesin the TOR and original proposedcontract, the Borrower shall highlightthe changes and provide an explanationof why these changes are appropriateand necessary.

(g) If the Bank determines that the finalevaluation report, recommendation foraward, and/or negotiated contract areinconsistent with the provisions of theRFP, it shall promptly inform theBorrower and state the reasons for itsdetermination. Otherwise, the Bankshall provide its final “no objection” tothe contract award. The Borrower shallconfirm the award of the contract onlyafter receiving the “no objection” fromthe Bank.

(h) Following contract signature, theBorrower shall furnish to the Bank acopy of the final contract beforesubmitting the first application fordisbursement under the contract.

(i) The description and amount of thecontract, together with the name andaddress of the firm, shall be subject topublic disclosure by the Bank upon theBorrower’s receipt of the signed copyof the contract.

3. Modifications of the Signed Contract.In the case of contracts subject to prior reveiw,before granting a substantial extension of thestipulated time for performance of a contract,agreeing to any substantial modification of thescope of the services, substituting key staff,waiving the conditions of a contract, or makingany changes in the contract that would inaggregate increase the original amount of thecontract by more than 15 percent, the Borrowershall seek the Bank’s “no objection” to the

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proposed extension, modification, substitution,waiver, or change. If the Bank determines thatthe proposal would be inconsistent with theprovisions of the Loan Agreement and/orProcurement Plan, it shall promptly inform theBorrower and state the reasons for itsdetermination. A copy of all amendments to thecontract shall be furnished to the Bank.

4. Translations. If a contract is subject toprior review and is written in the nationallanguage (or the language used nation-wide inthe borrower’s country for commercialtransactions), a certified translation of theevaluation reports and the initialed negotiateddraft contract in the internationally usedlanguage specified in the RFP (English, French,or Spanish) shall be furnished to the Bank forfacilitating the review. Such certified translationshall also be furnished to the Bank for anysubsequent modifications of such contracts.

Post Review 5. The Borrower shall retain alldocumentation with respect to each contractnot governed by paragraph two during projectimplementation and up to two years after theclosing date of the Loan Agreement. Thisdocumentation would include, but not belimited to, the signed original of the contract,the analysis of the respective proposals, andrecommendations for award, for examinationby the Bank or by its consultants, except thatfor contracts awarded on the basis of single-source selection, it shall include the record ofjustification, the qualifications and experienceof the consultants, and the signed original ofthe contract. The Borrower shall also furnishsuch documentation to the Bank upon request.The Bank shall, if it determines that the contractwas not awarded in accordance with the agreedprocedures, as reflected in the Loan Agreementand further elaborated in the Procurement Planapproved by the Bank or the contract itself is

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not consistent with such procedures, promptlyinform the Borrower that paragraph 1.17 of theGuidelines shall apply and state the reasons forsuch determination.

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APPENDIX 2: INSTRUCTIONS TOCONSULTANTS (ITC)

1. The Borrower shall use the standardRFPs issued by the Bank, which include theITC, covering the majority of assignments. Ifunder exceptional circumstances, the Borrowerneeds to amend the standard ITC, it shall do sothrough the technical data sheet and not byamending the main text. The ITC shall includeadequate information on the following aspectsof the assignment:

(a) a very brief description of theassignment;

(b) standard formats for the technical andfinancial proposals;

(c) the names and contact information ofofficials to whom clarifications shall beaddressed and with whom theconsultants’ representative shall meet,if necessary;

(d) details of the selection procedure to befollowed, including (i) a description ofthe two-stage process, if appropriate;and (ii) a listing of the technicalevaluation criteria and weights given toeach criterion; (iii) the details of thefinancial evaluation; (iv) the relativeweights for quality and cost in the caseof QCBS; (v) the minimum pass scorefor quality; and (vi) the details on thepublic opening of financial proposals;

(e) an estimate of the level of key staffinputs (in staff-months) required of theconsultants or the total budget, but notboth;

(f) indication of minimum experience,academic achievement, and so forth,expected of key staff;

(g) details and status of any externalfinancing;

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(h) information on negotiations; andfinancial and other information thatshall be required of the selected firmduring negotiation of the contract;

(i) the deadline for submission ofproposals;

(j) currency(ies) in which the costs ofservices shall be expressed, compared,and paid;

(k) reference to any laws of the Borrower’scountry that may be particularlyrelevant to the proposed consultants’contract;

(l) a statement that the firm and any of itsaffiliates shall be disqualified fromproviding downstream goods, works,or services under the project if, in theBank’s judgment, such activitiesconstitute a conflict of interest with theservices provided under theassignment;

(m) the method in which the proposal shallbe submitted, including therequirement that the technicalproposals and price proposals be sealedand submitted separately in a mannerthat shall ensure that the technicalevaluation is not influenced by price;

(n) a request that the invited firm (i)acknowledges receipt of the RFP and(ii) informs the Borrower whether ornot it will be submitting a proposal;

(o) the short list of consultants beinginvited to submit proposals andwhether or not associations betweenshort-listed consultants are acceptable;

(p) the period for which the consultants’proposals shall be held valid andduring which the consultants shallundertake to maintain, without change,the proposed key staff, and shall holdto both the rates and total price

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proposed; in case of extension of theproposal validity period, the right ofthe consultants not to maintain theirproposal;

(q) the anticipated date on which theselected consultant shall be expected tocommence the assignment;

(r) a statement indicating (i) whether ornot the consultants’ contract andpersonnel shall be tax-free or not; if not,(ii) what the likely tax burden will be orwhere this information can be obtainedin a timely basis and a statementrequiring that the consultant shallinclude in its financial proposal aseparate amount clearly identified, tocover taxes;

(s) if not included in the TOR or in thedraft contract, details of the services,facilities, equipment, and staff to beprovided by the Borrower;

(t) phasing of the assignment, ifappropriate; and likelihood of follow-up assignments;

(u) the procedure to handle clarificationsabout the information given in the RFP;and

(v) any conditions for subcontracting partof the assignment.

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APPENDIX 3: GUIDANCE TOCONSULTANTS

Purpose1. This appendix provides guidance toconsultants wishing to provide consulting andprofessional services financed by the Bank ortrust funds.

Responsibility for Selection ofConsultants2. The responsibility for theimplementation of the project, and therefore forthe payment of consulting services under theproject, rests solely with the Borrower. TheBank, for its part, is required by its Articles ofAgreement to ensure that funds are paid from aBank loan only as expenditures are incurred.Disbursements of the proceeds of a loan or agrant are made only at the Borrower’srequest.41 Supporting evidence that the fundsare used in accordance with the LoanAgreement and/or Procurement Plan (or theTrust Fund Agreement) shall be submitted withthe Borrower’s withdrawal application.Payment may be made (a) to reimburse theBorrower for payment(s) already made from itsown resources, (b) directly to a third party (tothe consultant), or (c) to a commercial bank forexpenditures against a World Bank SpecialCommitment covering a commercial bank’sletter of credit (a procedure that is exceptionalin the case of consultants). As emphasized inparagraph 1.4 of these Guidelines, the Borroweris responsible for the selection and employmentof consultants. It invites, receives, and evaluatesproposals and awards the contract. The contractis between the Borrower and the Consultant.The Bank is not a party to the contract.

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41 A complete description of the Bank’s disbursementprocedures is provided in the Disbursement Handbook(available on the Bank’s website athttp://www.worldbank.org/projects.

Bank’s Role3. As stated in these Guidelines(Appendix 1) the Bank reviews the RFP, theevaluation of proposals, awardrecommendations, and contract to ensure thatthe process is carried out in accordance withagreed procedures, as required in the LoanAgreement and further elaborated in theProcurement Plan. For all contracts subject toBank’s prior review, the Bank reviews thedocuments before they are issued, as describedin Appendix 1. Also, if at any time in theselection process (even after the award ofcontract) the Bank concludes that the agreedprocedures were not followed in anysubstantial respect, the Bank may declaremisprocurement, as described in paragraph1.17. However, if a Borrower has awarded acontract after obtaining the Bank’s “noobjection,” the Bank will declaremisprocurement only if the “no objection” wasissued on the basis of incomplete, inaccurate, ormisleading information furnished by theBorrower. Furthermore, if the Bank determinesthat corrupt or fraudulent practices wereengaged in by representatives of the Borroweror of the consultant, the Bank may impose theapplicable sanctions set forth in paragraph 1.22of the Guidelines.

4. The Bank publishes standard RFPs andcontracts for different types of consultingservices. As stated in paragraphs 2.9 and 2.12 ofthese Guidelines, it is mandatory for theBorrower to use these documents, withminimum changes acceptable to the Bank toaddress project-specific issues. The Borrowerfinalizes and issues these documents as part ofthe RFP.

Information on Consultant Services5. Information on consultant services,including a brief description of the nature ofservices, timing, estimated cost, staff-month,and so forth, will be, in the first instance,included in the Project Information Document(PID), which describes projects under

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preparation. At the same time, similarinformation will also be included in thedescription of each project in the MonthlyOperational Summary (MOS). Such informationwill be continuously updated. Each projectrequires the publication of a GeneralProcurement Notice in the United NationsDevelopment Business (UNDB online)42 anddgMarket , which will include a more detaileddescription of the required services, the clientagency, and the budgeted cost. In the case oflarge-value contracts,43 this will be followed bya specific notice seeking “expression of interest”in UNDB online and in dgMarket. The ProjectAppraisal Document (PAD) will provide yetmore detailed information.

6. The Project Information Document(PID) and the Monthly Operational Summary(MOS) are available on the Internet and fromthe Infoshop44 in the Bank. The PAD isavailable after the loan is approved. UNDB anddgMarket are available through onlinesubscription.

Consultants’ Role7. When consultants receive the RFP, andif they can meet the requirements of the TORand the commercial and contractual conditions,they should make the arrangements necessaryto prepare a responsive proposal (for example,visiting the country of the assignment, seekingassociations, collecting documentation, settingup the preparation team). If the consultantsfind in the RFP documents—especially in the

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42 UNDB is a publication of the United Nations.Subscription information is available from: DevelopmentBusiness, United Nations, GCPO Box 5850, New York, NY10163-5850, USA (Website: www.devbusiness.com; e-mail:dbsubscribe@un.org).dgMarket (www.dgmarket.com) is aservice of the Development Gateway Foundation, 1889 FStreet NW, Washington, DC 20006.43 Contracts expected to cost more than US$200,000equivalent.44 The Infoshop address is also the World Bank address:1818 H Street, N.W., Washington, D.C., 20433, USA TheProject Database is available at:http://www4.worldbank.org/sprojects/.

selection procedure and evaluation criteria—any ambiguity, omission or internalcontradiction, or any feature that is unclear orthat appears discriminatory or restrictive, theyshould seek clarification from the Borrower, inwriting, within the period specified in the RFPfor seeking clarifications.

8. In this connection, it should beemphasized that the specific RFP issued by theBorrower governs each selection, as stated inparagraph 1.2 of these Guidelines. Ifconsultants feel that any of the provisions in theRFP are inconsistent with the Guidelines, theyshould also raise this issue with the Borrower.

9. Consultants should ensure that theysubmit a fully responsive proposal including allthe supporting documents requested in theRFP. It is essential to ensure accuracy in thecurricula vitae of key staff submitted with theproposals. The curricula vitae shall be signed bythe consultants and the individuals and dated.Noncompliance with important requirementswill result in rejection of the proposal. Oncetechnical proposals are received and opened,consultants shall not be required nor permittedto change the substance, the key staff, and soforth. Similarly, once financial proposals arereceived, consultants shall not be required orpermitted to change the quoted fee and soforth, except at the time of negotiations carriedout in accordance with the provisions of theRFP. If an extension of validity of proposals wasthe reason that key staff were not available for acompany, a change of key staff with equivalentor better qualification might be possible.

Confidentiality10. As stated in paragraph 2.31, the processof proposal evaluation shall be confidentialuntil the publication of contract award, exceptfor the disclosure of the technical points asindicated in paragraphs 2.20 and 2.27.Confidentiality enables the Borrower and theBank’s reviewers to avoid either the reality orperception of improper interference. If, during

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the evaluation process, consultants wish tobring additional information to the notice of theBorrower, the Bank, or both, they should do soin writing.

Action by the Bank11. If consultants wish to raise issues orquestions about the selection process, they maysend the Bank copies of their communicationswith the Borrower, or they may write to theBank directly when the Borrower does notrespond promptly or when the communicationis a complaint against the Borrower. All suchcommunications should be addressed to theTask Team Leader for the project, with a copy tothe Country Director for the borrowing countryand to the Regional Procurement Adviser.Names of the Task Team Leaders are availablein the PAD.

12. References received by the Bank fromshort-listed consultants prior to the closing datefor submission of the proposal shall be, ifappropriate, referred to the Borrower with theBank’s comments and advice, for action orresponse.

13. Communications that the Bank receivesfrom consultants after the opening of thetechnical proposals shall be handled as follows.In the case of contracts not subject to priorreview by the Bank, any communication shallbe sent to the Borrower for due considerationand appropriate action. The Borrower’sresponse shall be reviewed during subsequentsupervision of the project by the Bank staff. Inthe case of contracts subject to prior review, theBank shall examine the communication, inconsultation with the Borrower, and if it needsadditional information, shall request it from theBorrower. If additional information orclarification is required from the consultant, theBank shall ask the Borrower to obtain it andcomment on or incorporate it, as appropriate, inthe evaluation report. The Bank’s review willnot be completed until the communication isfully examined and considered.

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14. Besides acknowledging receipt ofcommunications, the Bank shall not enter intodiscussion or correspondence with anyconsultant during the selection and reviewprocess, until award of the contract is notified.

Debriefing15. If after contract award, a consultantwishes to ascertain the grounds on which itsproposal was not selected, it should address itsrequest to the Borrower as indicated inparagraph 2.29. If the consultant is not satisfiedwith the explanation given and wishes to seek ameeting with the Bank, it may address theRegional Procurement Adviser for theborrowing country, who will arrange a meetingat the appropriate level and with the relevantstaff. In this discussion, only the consultant’sproposal can be discussed and not theproposals of competitors.

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