Staff Instructions – Borrower-Administered Consulting Services

58 Pages·2017·0.43 MB·English

by  Asian Development Bank

STAFF INSTRUCTIONS

BORROWER ADMINISTERED CONSULTING SERVICES
GLOSSARY
ADB Administered Consulting services financed by ADB’s administrative budget, capital budget,
Consulting Services TA grant or other grant projects funded from special funds or trust funds, for
which ADB selects and engages the consultants. ADB may also hire
consultants funded by advance payment from prospective clients in its non-
sovereign operations or following Public Private Partnership transaction
advisory services mandate and similar arrangements.
ADB financing Includes financing by loans, grants, technical assistance (TA) grants, or funds
from external sources which ADB administers, ADB’s administrative budget,
and the special capital budget.
Biodata technical Basic type of technical proposal. Includes workplan and personnel schedule,
proposal (BTP) CVs of proposed experts. It is the default type of proposal for Direct Contracting
and CQS selections.
Borrower Includes agencies or entities that act for the Borrower to carry out the project.
It also includes recipients of grants for projects, under which the EA
administers consulting services.
Borrower-Administered Consulting services provided under ADB’s loan projects, grant projects or
Consulting Services Delegated Technical Assistance projects, for which the Borrower selects and
engages the consultants (used interchangeably with Consulting services that
executing agencies (EAs) administer).
Conflict of Interest Any situation in which a party has interests that could improperly influence that
party’s performance of official duties or responsibilities, contractual obligations,
or compliance with applicable laws and regulations.
Consultant An individual or Consulting Firm that provides consulting services.
Consulting Firm Any private or public entity with the capacity to provide consulting services.
Such entities include international and national consulting firms, engineering
firms, construction firms, management firms, procurement agents, inspection
agents, auditors, United Nations (UN) agencies and other multilateral
organizations, universities, research institutions, government agencies, civil
society organizations (CSO) and nongovernmental organizations (NGOs),
when such entities provide consulting services.
Consultant Selection Convened to decide on consulting services matters, including evaluation of
Committee (CSC) EOIs for high-value individual consulting selection1 and, technical evaluation
of proposals received from consulting firms in response to the RFP.
Consultant Electronic procurement system used by ADB and its Borrowers to recruit
Management System consultants. For Borrowers the functionality is currently limited to posting
(CMS) CSRNs.
Consultant A system used to monitor the activities and time taken for consultant
Recruitment Activity recruitment.
Monitoring (CRAM)
Consulting Services Automated procurement notice published on ADB’s Consultant Management
Recruitment Notice System. See also REOI.
(CSRN)
Consulting services Consulting services provided under ADB’s loan projects, grant projects or
that executing delegated TA projects, for which the EA selects and engages the consultants.
agencies (EAs) (used interchangeably with Borrower-Administered Consulting Services).
administer

1 Defined as exceeding $200,000
Delegated Technical Technical Assistance (TA) projects in which ADB delegates responsibility to
Assistance the EA for implementation, including responsibility to select and manage
consultants, and to sign and administer contracts (including payments)
Executing Agency Identified in a financing agreement or TA agreement, and responsible for the
(EA) carrying out of a loan, grant or a TA grant-funded project. The term EA may be
extended to include an implementing agency that the EA designates to
implement the project and recruit consultants.
Expression of Interest Submitted by Consultants in response to the publication of Request for EOI
(EOI) (REOI) through Consulting Services Recruitment Notice (CSRN).
Full technical proposal Technical proposal used for complex, high value assignments.
(FTP) Includes: Description of approach, methodology, workplan and personnel
schedule, team composition, task assignments and CV summary, consultant’s
organization and experience, comments and suggestions on the TOR,
comments on the counterpart support and facilities, CVs of proposed key
experts.
International Consultant with international experience beyond that of the country in which
Consultant the assignment is to be performed.
National Consultant Consultant performing assignment in his/ her own country. The expert’s role
does not require international experience.
OAI Office of Anticorruption and Integrity.
PASS Accreditation qualification for Project Units in the review of EA consultant
selections under ADB’s Procurement Accreditation Skills Scheme (PASS).
Project Unit The ADB project division, regional office or resident mission that supervises a
project.
REOI Request for Expression of Interest. Used interchangeably with CSRN.
Request for Proposal The RFP is issued to shortlisted consulting entities. The RFP shall include
(RFP) Terms of Reference, Evaluation criteria, Eligibility Criteria, Instructions to
Consultants, Data Sheet, Standard forms for Submitting Technical and
Financial Proposals, standard form of contract. ADB issues RFPs
electronically using Consultant Management System.
Simplified Technical Technical proposal used for majority of consulting assignments requiring
Proposal (STP) services of the consulting team. The STP shall include: Description of
approach, methodology, workplan and personnel schedule, team composition,
task assignments and CV summary, CVs of proposed key experts.
Terms of Reference Describes the purpose, objectives, scope of work, detailed tasks or specified
(TOR) outputs; and reporting requirements which the consultant is expected to meet
to complete the assignment for the benefit of the EA.
User Unit The EA’s project implementation unit for using consulting services.
TABLE OF CONTENTS
I. ADB’S PROCUREMENT FRAMEWORK ....................................................................... 1
A. Introduction ............................................................................................................... 1
B. Scope ....................................................................................................................... 1
C. Structure ................................................................................................................... 2
II. DEFINITIONS, PRINCIPLES AND RESPONSIBILITIES ............................................... 2
A. Principles .................................................................................................................. 2
B. Anticorruption Policy ................................................................................................. 3
C. Conflict of Interest ..................................................................................................... 5
D. Avoiding Unfair Competitive Advantage .................................................................... 5
E. Responsibilities ......................................................................................................... 6
F. Types of Consultants ................................................................................................ 7
G. Using National Consultants from Developing Member Countries (DMCs) ................. 8
H. Eligibility ................................................................................................................... 8
III. PREPARING FOR CONSULTANT RECRUITMENT .....................................................12
A. Procurement Plan ....................................................................................................12
B. Terms of Reference (TOR) ......................................................................................12
C. Cost Estimate ..........................................................................................................13
D. Selection Method .....................................................................................................14
E. Change in Selection Method ....................................................................................14
F. Types of Technical Proposals ..................................................................................14
G. Changing the Type of Technical Proposal ...............................................................16
H. Determining International or National Expertise .......................................................16
I. Recruitment Mode (International or National Competitive Selection) .......................16
J. Consulting Services Provided by United Nations and Other International
Organizations ..........................................................................................................16
IV. GENERAL PROCEDURE FOR SELECTING AND ENGAGING CONSULTANTS .......17
A. General Procedures .................................................................................................17
B. Selection Methods ...................................................................................................24
C. Contract Types ........................................................................................................31
D. Confidentiality and Absence of Undue Influence in the Selection Process ...............32
V. CONSULTANT RECRUITMENT BY THE EXECUTING AGENCY ...............................33
A. Responsibilities of the EA, ADB’s Project Unit, and ADB’s Procurement Staff .........33
B. Advance Contracting ...............................................................................................34
C. Advertising (Consulting Services Recruitment Notice) .............................................34
D. Consultant’s Expression of Interest ..........................................................................35
E. Recruiting Consulting Firms – Prior and Post Review (Sampling) ............................35
F. Prior Review ............................................................................................................35
G. Post Review (Sampling)...........................................................................................40
H. Recruiting Individual Consultants – Prior and Post Review (Sampling) ....................42
I. Requesting ADB Assistance in Selecting the Consultant .........................................44
J. Monitoring the Consultant Recruitment Process ......................................................44
K. Consulting Contract Management ............................................................................46
L. Complaints ..............................................................................................................47
M. Debriefing ................................................................................................................48
APPENDIXES ...........................................................................................................................49
Appendix 1: List of Guidance Notes ...............................................................................49
Appendix 2: Simplified Flow Chart of the Key Steps for Recruiting Consulting Firms by
the EA with an ADB Prior Review Arrangement .......................................................50
Appendix 3: Simplified Flow Chart of the Key Steps for Recruiting Individual Consultants
by the EA with an ADB Prior Review Arrangement ..................................................52

1

I. ADB’S PROCUREMENT FRAMEWORK

A. Introduction

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

(i) ADB Procurement Policy: Approved by ADB Board of Directors, the Policy
specifies ADB’s six core procurement principles and various considerations
relevant to their implementation in ADB financed operations.

(ii) The Regulations: Approved by ADB Management, the Regulations provide
choices for Borrowers to allow them to determine the most appropriate
procurement method, specify the rules that must be followed and set out ADB’s
procurement due diligence function.

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

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

B. Scope

2. These SI establish procedures for the Borrower-Administered selection, contracting, and
contract management of consulting firms and individual consultants financed in whole or in part
by way of an investment loan from ADB, ADB-financed grant, or funds administered by ADB. The
SI may be referred to by staff to understand the procurement–related work flow within ADB’s
project cycle and related roles and responsibilities of ADB staff to ensure that procurement is
carried out in accordance with ADB policies and procedures. These SI do not apply to
procurement activities under alternative procurement arrangements (APA) 2. The Project
Administration Instructions continue to apply to procurement and recruitment of consulting
services under the ADB Procurement Guidelines (2015, as amended from time to time) and ADB
Consulting Guidelines (2013, as amended from time to time).

3. These SI are effective for projects or Delegated Technical Assistance with concept papers
approved after 1 July 2017, the date on which the Policy and Regulations came into force. ADB
and the Borrower may agree to use these SI for projects or Delegated Technical Assistance with
concept papers approved before 1 July 2017, otherwise the Guidelines on Use of Consultants by
ADB and Its Borrowers (2013) and PAI 2.01 to 2.07 shall be applicable.

1 A list of guidance notes is in Appendix 1.
2 If the use of APA has been permitted under a particular project, a trust-and-verify procurement oversight approach
will be applied, whereby ADB may rely on oversight mechanisms of the borrower or those agreed in the applicable
financing or other agreements. However, regardless of procurement arrangement, ADB’s Anticorruption Policy
(1998, as amended to date) and ADB’s Integrity Principles and Guidelines (2015, as amended from time to time),
will apply in all cases.
2

4. These SI do not apply to:

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

C. Structure

5. The SI consists of:

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

II. DEFINITIONS, PRINCIPLES AND RESPONSIBILITIES

A. Principles

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

i. Economy

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

ii. Efficiency

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

iii. Fairness

9. The principle of fairness means:

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

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

3 Refer to the Staff Instructions – Procurement of Goods, Works and Nonconsulting Services.
4 Refer to Staff Instruction on ADB Administered Consulting Services.
5 For procurement under results-based loans refer to [reference to follow] and for procurement under policy-based
loans refer to OM Section D4/BP.
3

iv. Transparency

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

(i) relevant procurement information is made publicly available to interested parties,
in a consistent and timely manner, through readily accessible and widely available
sources at no (or reasonable) cost;
(ii) appropriate reporting of procurement activity; and
(iii) use of confidentiality provisions in contracts only where justified.

v. Quality

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

vi. Value for Money

13. This principle enables the borrower to obtain optimal benefits through effective, efficient,
and economic use of resources by applying, as appropriate, the Core Procurement Principles and
related considerations, which may include life-cycle costs and socioeconomic and environmental
development objectives of the borrower. Price alone may not sufficiently represent value for
money.

14. Such principles are best served through a competitive process among qualified shortlisted
consultants, usually with a selection that is based on the quality and cost of services.

15. ADB permits its Borrowers to recruit consultants promptly and effectively by:

(i) providing a range of fit-for-purpose recruitment options;
(ii) permitting timely engagement (particularly in emergency situations);
(iii) harmonizing procedures with those of the other major multilateral development
banks; and
(iv) monitoring the recruitment process only where necessary, and permitting post-
review (sampling), where appropriate.

B. Anticorruption Policy

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

(i) “corrupt practice” means the offering, giving, receiving, or soliciting, directly or
indirectly, anything of value to influence improperly the actions of another party;
(ii) “fraudulent practice” means any act or omission, including a misrepresentation,
that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a
financial or other benefit or to avoid an obligation;
4

(iii) “coercive practice” means impairing or harming, or threatening to impair or harm,
directly or indirectly, any party or the property of the party to influence improperly
the actions of a party;
(iv) “collusive practice” means an arrangement between two or more parties designed
to achieve an improper purpose, including influencing improperly the actions of
another party;
(v) “obstructive practice” means (a) deliberately destroying, falsifying, altering or
concealing of evidence material to an ADB investigation; (b) making false
statements to investigators in order to materially impede an ADB investigation; (c)
failing to comply with requests to provide information, documents or records in
connection with an Office of Anticorruption and Integrity (OAI) investigation; (d)
threatening, harassing, or intimidating any party to prevent it from disclosing its
knowledge of matters relevant to the investigation or from pursuing the
investigation; or (e) materially impeding ADB’s contractual rights of audit or access
to information;
(vi) “integrity violation” is any act which violates ADB’s Anticorruption Policy (1998, as
amended to date), including (i) to (v) above and the following: abuse, conflict of
interest, violation of ADB sanctions, retaliation against whistleblowers or witnesses,
and other violations of ADB’s Anticorruption Policy, including failure to adhere to
the highest ethical standard.

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

18. ADB will

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

(ii) cancel the portion of the financing allocated to a contract if ADB determines at any
time that representatives of the Borrower committed an integrity violation during
the consultant selection process or the execution of that contract, without the
Borrower having taken timely and appropriate action satisfactory to ADB to remedy
the situation;

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

(iv) have the right to require that, in consultant selection documentation and in
contracts financed by ADB, a provision be included requiring consultants to permit
ADB or its representative to inspect their accounts and records and other