«GUIDELINES FOR THE SELECTION AND ENGAGEMENT OF CONSULTANTS BY RECIPIENTS OF CDB FINANCING October 2011 These guidelines apply to CDB-financed ...»
CARIBBEAN DEVELOPMENT BANK
GUIDELINES FOR THE
SELECTION AND ENGAGEMENT
BY RECIPIENTS OF CDB FINANCING
These guidelines apply to CDB-financed projects approved after
October 1, 2011
Copyright @ 2011
Caribbean Development Bank
P.O. Box 408
Wildey, St. Michael
First Printing, October 2011 All rights reserved (ii)
1.4 General Considerations
1.7 Applicability of Guidelines
1.9 Conflict of Interest
1.10 Unfair Competitive Advantage
1.14 Advance Contracting and Retroactive Financing
1.15 Associations between Consultants
1.16 Bank Review, Assistance, and Monitoring
1.20 Reference to CDB
1.21 Training or Transfer of Knowledge
1.23 Fraud and Corruption
1.25 Procurement Plan
II. Quality- and Cost-Based Selection (QCBS)
2.1 The Selection Process
2.3 Terms of Reference (TOR)
2.4 Cost Estimate (Budget)
2.6 Short List of Consultants
2.9 Preparation and Issuance of the Request for Proposals (RFP)................ 12
2.10 Letter of Invitation (LOI)
2.11 Instructions to Consultants and Data Sheet (ITC)
2.13 Receipt and Opening of Proposals
2.14 Clarification or Alteration of Proposals
2.15 Evaluation of Proposals: Consideration of Quality and Cost................ 14
2.16 Evaluation of the Quality
2.23 Opening of Financial Proposals and Evaluation of Cost
2.26 Combined Quality and Cost Evaluation
2.27 Negotiations and Award of Contract
2.31 Publication of the Award of Contract
2.32 Debriefing by the Recipient
2.33 Rejection of All Proposals, and Reinvitation
III. Other Methods of Selection
3.2 Quality-Based Selection (QBS)
3.5 Selection under a Fixed Budget (FBS)
3.6 Least-Cost Selection (LCS)
3.7 Selection Based on the Consultants’ Qualifications (CQS)
3.8 Single-Source Selection (SSS)
3.12 Use of Country Systems
3.13 Selection of Consultants in financings to Financial Intermediary Institutions ……………………………………………………………………………...23
3.14 Selection of Consultants under financings Guaranteed by CDB........... 23
3.15 Selection of Particular Types of Consultants
IV. Types of Contracts and Important Provisions
4.1 Types of Contracts
4.5 Important Provisions
V. Selection of Individual Consultants
Appendix 1: Review by CDB of the Selection of Consultants and Publication of Awards of Contracts
1. Scheduling the Selection Process
2. Prior Review
5. Post Review
6. Change from Post Review to Prior Review
7. Publication of Awards of Contracts
8. Due Diligence concerning Bank's Sanctions Policies and Procedures Appendix 2: Instructions to Consultants and Data Sheet (ITC) Appendix 3: Guidance to Consultants
2. Responsibility for the Selection of Consultants
3. Bank’s Role
5. Information on Consultant Services
6. Consultants’ Role
10. Action by CDB
14. Debriefing by CDB
1.1 The purpose of these Guidelines is to define the policies and procedures of the Caribbean Development Bank (CDB) for selecting, engaging, and monitoring consultants required for projects that are financed in whole or in part by grants or loans from CDB, or funds administered by CDB and executed by the Recipient to the extent that the agreement providing for such trust funds or grants do not conflict with these Guidelines.
1.2 The Financing Agreement governs the legal relationships between the Recipient and CDB and these Guidelines apply to the selection and engagement of consultants for the project as provided in the Financing Agreement. The rights and obligations of the Recipient1 and the consultant are governed by the specific Request for Proposals (RFP)2 issued by the Recipient and by the contract signed by the Contracting Agency with the consultant, and not by these Guidelines or the Financing Agreement. No party other than the parties to the Financing Agreement shall derive any rights therefrom or have any claim to proceeds of the Financing.
1.3 For the purpose of these Guidelines, the term consultants includes a wide variety of private and public entities, including consulting firms, engineering firms, construction managers, management firms, procurement agents, inspection agents, auditors, United Nations (UN) agencies and other multinational organizations, investment and merchant banks, universities, research institutions, government agencies, nongovernmental organizations (NGOs), and individuals3. Recipients use these entities as consultants to help in a wide range of activities, such as policy advice; institutional reforms; management; engineering services; construction supervision; financial services; procurement services; social and environmental studies; and identification, preparation, and implementation of projects to complement Recipients’ capabilities in these areas.
1.4 The Recipient is responsible for preparing and implementing the project, and therefore for selecting the consultant, and awarding and subsequently administering the contract. CDB, for its part, is required by its policies to ensure that the proceeds of any financing are used only for the purposes for which the Financing was granted, with due attention to considerations of economy and efficiency and it has established detailed procedures for this purpose. While the specific rules and procedures to be followed for engaging consultants depend on the circumstances of the particular case, five main considerations
guide CDB’s policy on the selection process:
(a) the need for high-quality services;
(b) the need for economy and efficiency;
In some cases, the Recipient acts only as an intermediary, and the project is carried out by another agency or entity. References in these Guidelines to the Recipient include such agencies and entities, as well as Sub-Recipients under “onlending arrangements.” See Appendix 2.
See paras. 3.15 -3.21 for particular types of consultants. Individual consultants are covered in Section V.
1.5 CDB considers that, in the majority of cases, these considerations can best be addressed through competition among qualified short-listed firms in which the selection is based on the quality of the proposal and, where appropriate, on the cost of the services to be provided. Sections II and III of these Guidelines describe the different methods of selection of consultants accepted by CDB and the circumstances in which they are appropriate. Since Quality- and Cost-Based Selection (QCBS) is the most commonly recommended method, Section II of these Guidelines describes in detail the procedures for QCBS. However, QCBS is not the most appropriate method of selection for all cases, therefore, Section III describes other methods of selection and the circumstances in which they are more appropriate.
1.6 The particular methods that may be followed for the selection of consultants under a given project are provided for in the Financing Agreement. The specific contracts to be financed under the project, and their method of selection, consistent with the provisions of the Financing Agreement, shall be specified in the Procurement Plan as indicated in paragraph 1.25 of these Guidelines.
Applicability of Guidelines
1.7 The consulting services to which these Guidelines apply are of an intellectual and advisory nature.
These Guidelines do not apply to other types of services in which the physical aspects of the activity predominate (for example, construction of works, manufacture of goods, operation and maintenance of facilities or plant, surveys, exploratory drilling, aerial photography, satellite imagery, and services contracted on the basis of performance of measurable physical output)4.
1.8 The principles, rules and procedures outlined in these Guidelines apply to all contracts for consulting services financed in whole or in part from the proceeds of CDB financing5. The provisions described under this Section I apply to all other sections of these Guidelines. In procuring consulting services not financed with the proceeds of CDB financing, but included in the project scope of the Financing Agreement, the Recipient may adopt other rules and procedures. In such cases, CDB shall satisfy itself that: (a) the procedures to be used will fulfil the Recipient’s obligations to cause the project to be carried out diligently and efficiently and will result in the selection of eligible consultants who have the necessary qualifications; (b) the selected consultant will carry out the assignment in accordance with the agreed schedule, and (c) the scope of the services is consistent with the needs of the project.
These latter services are bid and contracted on the basis of performance of measurable physical outputs and procured in accordance with the current CDB “Guidelines for Procurement” referred to herein as the Procurement Guidelines.
This includes the selection of consultants by a procurement agent employed by the Recipient under paragraph 3.17 of these guidelines.
CDB may agree to the use of the public procurement system of the Recipient country for the selection of consultants (including individuals) under para. 3.12 of these Guidelines. In such cases, the Loan Agreement between the Recipient and CDB will describe the applicable selection procedures of the Recipient, and the full application of Section I and any other parts of these Guidelines as may be deemed relevant by CDB.
Conflict of Interest
1.9 CDB policy requires that consultants provide professional, objective, and impartial advice and at all times hold the client’s interests paramount, without any consideration for future work, and that in providing advice they avoid conflicts with other assignments and their own corporate interests.
Consultants shall not be hired for any assignment that would be in conflict with their prior or current obligations to other clients, or that may place them in a position of being unable to carry out the assignment in the best interest of the Recipient. Without limitation on the generality of the foregoing,
consultants shall not be hired under the circumstances set forth below:
(a) Conflict between consulting activities and procurement of goods, works or services (other than consulting services covered by these Guidelines6): An entity that has been engaged by the Recipient to provide goods, works, or services (other than consulting services covered by these Guidelines) for a project, and each of its affiliates, shall be disqualified from providing consulting services related to those goods, works or services.
Conversely, an entity hired to provide consulting services for the preparation or implementation of a project, and each of its affiliates, shall be disqualified from subsequently providing goods, works or services (other than consulting services covered by these Guidelines) resulting from or directly related to its consulting services for such preparation or implementation. This provision does not apply to the various entities (consultants, contractors, or suppliers) which together are performing the contractor’s obligations under a turnkey or design and build contract.
(b) Conflict among consulting assignments: Neither consultants (including their personnel and sub-consultants), nor any of their affiliates, shall be hired for any assignment that, by its nature, may be in conflict with another assignment of the consultants. As an example, consultants assisting a client in the privatization of public assets shall neither purchase, nor advise purchasers of, such assets. Similarly, consultants hired to prepare Terms of Reference (TOR) for an assignment shall not be hired for the assignment in question.
Relationship with Recipient’s staff: Consultants (including their personnel, and subc) consultants) that have a close business or family relationship with a member of the Recipient’s staff (or of the project implementing agency’s staff, or of a recipient of a part of the CDB financing) who are directly or indirectly involved in any part of: (i) the preparation of the TOR for the assignment, (ii) the selection process for the contract, or (iii) supervision of such contract may not be awarded a contract, unless the conflict stemming from this relationship has been resolved in a manner acceptable to CDB throughout the selection process and the execution of the contract.
(d) A consultant shall submit only one proposal, either individually or as a joint venture partner in another proposal. If a consultant, including a partner of a joint venture, submits or participates in more than one proposal, all such proposals shall be disqualified.
This does not, however, preclude a consulting firm to participate as a sub-consultant, or an individual to participate as a team member, in more than one proposal when circumstances justify and if permitted by the RFP.
See paragraph 1.7 of these Guidelines.
Unfair Competitive Advantage