Steven Gillard

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Business Briefing to Slovak and Czech Consultants

• Steven Gillard
• Principal Advisor
• Consultancy Services Unit
• September 2007
• Bratislava and Prague

2
The Presentation

• The Importance of Consultants in EBRD Projects
• Consulting Opportunities at EBRD
• How EBRD Selects Consultants
• Dos and Donts in Competing for Assignments
• eSelection of Consultants

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The Importance of Consultants in EBRD Projects
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The Project Delivery Strategy (PDS)

• The role of the consultant must be considered in
  the framework within which the capital investment
  of an operation is to be delivered

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Factors and Influences
EXTERNAL FACTORS

• EBRDs PPR
• Ethics Corruption
• Local regulations

• Market conditions
• Local commercial practices
• Industry Practices

PROJECT
INTERNAL FACTORS

• Objectives
• Requirements

• Characteristics
• In-house capability

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• Consulting Opportunities at EBRD

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Value and Number of Contracts by Application in
2006
Value of Contracts
Excludes BAS/TAM Excludes OGC outside
counsel incl. Commercial, Property,
Privatisation
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Consulting Opportunities at EBRD

• Assist the Banks Client with
• Project Preparation eg. feasibility studies,
  design, environmental impact assessment
• Project Implementation
• capacity building, institutional development, eg.
  project implementation units
• project supervision Independent Engineer very
  clearly defined contractual role

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Consulting Opportunities at EBRD...contd

• Assist the Bank with
• due diligence
• project monitoring, lenders technical supervisor

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Technical Co-operation

• Focus on
• SME, financial institutions,
• Infrastructure including Municipal and
  Environmental Infrastructure, Transport
• Energy Efficiency, Climate Change
• Support institution building and training - e.g.
  Turnaround Management Programme (TAM), Business
  Advisory Services (BAS), Legal Transition
  Programme (LTP)

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MEI Standard Consultancy Assignments and Types of
Specialists Required

• Financial Audit
• (auditors)
• Feasibility Study
• (sector engineers, environmental, financial,
  legal experts)
• Environmental Impact Assessment
• (environmental experts)
• Financial and Operational Performance Improvement
  Programme (FOPIP)
• (financial, management information system,
  corporate restructuring experts)
• Legal Due Diligence
• (legal experts)

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MEI Standard Consultancy Assignments and Types of
Specialists Required ( contd)

• Financial Due Diligence
• (financial experts)
• Corporate Development Programme
• (financial, legal, management information system
  and IT, business planning experts)
• Project Implementation Unit Procurement
  Assistance
• (procurement experts)
• Creditworthiness Enhancement Programme
• (financial, legal, sector regulation experts)
• Public Service Contract
• (legal, corporate, financial experts)

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Funding Sources Available to Consultants

• Loan Proceeds
• Bank Budget
• Technical Co-operation Funds from
• EU
• Tied Donor Funds
• Untied Donor funds (e.g. Japan, UK, Multi Donor
• Fund for Early Transition Countries, Western
  Balkans Fund)

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Financing of Consultancy Assignments
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Open (untied) vs Targetted (tied) Selection

• Selection Processes governed by Banks
  Procurement Policies and Rules
• Open Selection No eligibility / nationality
  restrictions in selection processes
• Targetted Selection Restricted selection to
  eligible consultants and/or experts - as per the
  donors requirements, e.g. nationals of donors
  country
• Targetted Competition can be carried out amongst
  several nationalities
• Portion may be available for local consultants

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How EBRD Selects Consultants
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Procurement Policies and Rules

• Accessible at www.ebrd.com/about/policies/procure/
  index.htm
• Require economy, efficiency, transparency
  fairness
• Detailed rules for public sector operations
• - Open tendering the norm for goods and works
• Private sector operations
• - Normal commercial practices acceptable to the
  Bank
• Consultant Services
• - Quality paramount

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Procedures for Consultant Selection

• 3 selection procedures set out in PPR
• below EUR 50,000 - Direct Selection
• EUR 50,000 to EUR 200,000 - Selection from
  Shortlist
• EUR 200,000 and over Evaluation of Proposals

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Value of contracts per selection method in 2006
Value million
Number of contracts (excludes BAS/TAM, loan
funded and outside counsel)
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Direct Selection

• Less than EUR 50,000
• The Executing Agency selects without competitive
  selection
• Bank may negotiate on budget, team composition
  and contractual terms

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Selection from Shortlist

• Between EUR 50,000 and EUR 200,000
• Usually begins with a notice calling for
  expressions of interest (not obligatory) on the
  Banks Website. This would contain
• background, funding source, eligibility
  restrictions (if any), contracting entity,
  budget, submission requirements and deadlines
• Consultants submit Expressions of Interest and a
  Long List of qualified and competent firms is
  decided upon by the shortlisting committee

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Selection from Shortlist (cont)

• Shortlist (3 to 6 qualified firms)
• normally no more than 2 consultants from the same
  country
• normally requires at least one qualified
  consultant from one of the Banks Countries of
  Operation

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Selection from Shortlist (cont)

• The Shortlisting Committee creates a shortlist of
  firms who are ranked according to technical
  merit.
• The top ranked firm is sent the Terms of
  Reference and invited to submit a proposal and
  budget.
• Bank may negotiate on budget, team composition
  and contractual terms. If negotiations fail,
  second ranked firm is contacted.
• When negotiations are successful, contract
  awarded.

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Evaluation of Proposals

• EUR 200,000 and over.
• As per Selection from Shortlist until the
  shortlist is created.
• Shortlisted firms sent the Request for Proposal
  (RFP) package which includes a data sheet
  outlining all key information, Terms of
  Reference, detailed information on the evaluation
  criteria and a format for the financial proposal.

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Evaluation of Proposals (cont)

• Consultant Selection
• Quality Based Selection (QBS)
• Most important criteria technical qualification /
  relevant experience
• Price as a factor for Evaluation of Proposals
• Quality Cost Based Selection (QCBS)
• 2 Envelope System. The norms are
• Technical proposals weight of 80 and only when
  technical thresholds are met
• Financial proposal weight 20 (similar to the
  EU)

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Evaluation of Proposals (cont)

• When the proposals are received, the evaluation
  committee scores the technical proposals.
• When the technical scoring is complete the
  financial proposals are opened.
• The technical and financial scores are calculated
  according to the pre-agreed formula.
• Negotiations begin with the top-ranked firm. If
  negotiations fail, second ranked firm is
  contacted.
• When negotiations are successful, contract
  awarded.

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Overview of Selection Methods
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Selection methods for Bank and TC funded
contracts in 2006
of Total Contract Value
TC funded contracts (excl. BAS/TAM)
42.81m
Bank funded contracts (excl. outside counsel)
27.22 m
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Dos and Don'ts in Competing for Assignments
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http//www.ebrd.com/oppor/procure/index.htm

• EBRDs new projects
• Project Pipeline and executing agencies
• Projects approved
• Lists the latest public and private sector
  projects approved by the EBRD
• Contract awards
• Major contracts that were awarded in operations
  financed by the EBRD
• Procurement notices

(These pages are regularly updated)
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Strategy for getting contracts

• Is your product or service needed?
• Be focussed and selective - comparative advantage
• Monitor Procurement Opportunities

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Strategy for getting contracts (cont)

• Contact executing agency
• Learn from experience
• Explore subcontracting opportunities joint
  venture opportunities
• Look at the Selection Process Guidelines
  http//www.ebrd.com/oppor/tc/consult.htm

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Writing Proposals

• Objective is to be awarded the contract, not to
  carry out the assignment in the technical
  proposal
• Follow instructions carefully
• - Eligibility Restrictions
• - Deadlines
• - Within Budget?
• - Types of experts required
• - Page limits

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Writing Proposals

• Be clear, write short sentences
• Be focused
• Respond as per information requested and the
  Terms of Reference
• Familiarise yourself with eSelection

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eSelectionElectronic Selection of Consultants
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Benefits of eSelection for Consultants (1)

• A Webbased application allowing consultants
  access from anywhere with an internet connection
• Consultants can create and maintain their own
  profiles and information (eg. upload CVs or
  company profile)
• Consultants can subscribe for automatic
  electronic notification of new opportunities by
  sector and area of expertise

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Benefits of eSelection for Consultants (2)

• Allows the Electronic expressions of interest and
  submission of proposals (including financial
  proposals) by consultants.
• Creates an online workspace where the Consultant
  can search for opportunities.
• Consultant can view the status of, and manage
  participation in, their selection processes.

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How to access eSelection
http//www.ebrd.com/oppor/procure/opps/index.htm
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Login Page
Register here
Sends email with link to reset password
Click here to view procurement notices
Send a query or request assistance
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Registration (1)

• Select Individual Account only if you are an
  individual expert looking for assignments for
  yourself (NB Form requires expert details)
• Individuals cannot apply for assignments
  requiring Firms (Corporate Services)
• Select Corporate Services (Firms) Account if you
  are looking for assignments on behalf of your
  firm / organisation
• For Corporate Services accounts, consider using a
  general e-mail account (e.g. info_at_company.com),
  to avoid complications when staff members change.

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Registration Corporate Services (Firms)
Select account type
Enter your details as a representative of the
firm /organisation
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Managing Your Account (1)

• It is Consultants obligation to maintain their
  information and monitor the site.
• Bank is not changing its practices in how
  Consultants are selected

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Summary Page
Current Project Status
Submission Deadlines
List of Active Projects
Tasks to be completed
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Subscription
Subscribe to Industry Sectors here
Subscription criteria set here
Subscribe to Sectors of Expertise here
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Using eSelection to express interest and manage
the drafting and submission of a proposal
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Expressing Interest (1)
Basic project information
Click to view procurement notice as available in
eSelection
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Expressing Interest (2)
Guidance information displayed here
Access screen to upload documents
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Expressing Interest (3)
Click button and browse to upload documents
Submit Expression of Interest by clicking this
button
Add Associated Firms
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Accessing Request for Proposal (1)
Access screen with Request for Proposal documents
to confirm participation.
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Confirming Intention to Participate
Confirm participation by clicking here.
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Accessing Request for Proposal (2)
Access page to submit Requests for
Clarifications, upload submit Proposals.
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Drafting Proposals (1)
Section 1 Request for Proposals package
documents.
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Drafting Proposals (2) Request for
Clarifications
Section 2 Requests for Clarifications based on
Request for Proposal package documents.
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Proposals Uploading Submission
Section 3 Click button and browse to upload
Technical Financial proposal documents.
Submit Proposal by clicking this button
Enter Total Proposal Price by clicking here
Add Key Expert names for evaluation by clicking
here
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Managing Selection Team (1)
Add Selection Team Members here. This enables
colleagues or project team members from
associated firms to use eSelection as a workspace
for project submissions.
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Managing Selection Team (2)
Add Selection Team Members by clicking here.
Various levels of access can be granted.
To change the primary contact for a project 1.
Add as a team member 2. Highlight name click
on this button.
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How to contact us

• Project enquiries (existing EBRD projects only)
  Tel [phone] / fax [phone]
  7380
• Business Development and project proposals
  
  Tel [phone] / fax 44
  (0)20 7338 7380
• General enquiriesTel 44 (0)20 7338 6372 / fax
  44 (0)20 7338 6690
• Procurement opportunities via web site
  www.ebrd.com
• PublicationsTel 44 (0)20 7338 7553 / fax 44
  (0)20 7338 6102
• Consultancy Services UnitTel 44 (0)20 7338
  7834 / fax[phone]/
  gillards_at_ebrd.com

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eSelection Contacts

• Tom Gale Tel [phone] / fax 44
  (0)20 7338 7451
• Tom Husband
  Tel [phone]
  6173 / fax [phone]
• Contact us
• Technical assistance is available via
  eselection_at_ebrd.com

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• Questions?