CONTENTS Preface Office Memorandum 1 Selection of Consultants: Best Practices 1.Context 5 2.What is the objective of these Guidelines? 5 3.What are the financial rules governing the selection of consultants'? 6 4.What is the difference between procurement of goods/services and consultants? 6 5.Why hire consultants? 6 6.Does the expertise and experience of the consultants matter? 6 7.What are the roles and responsibilities of consultants and the Project Authority? 7 8.What is the roles of individual experts in a consultancy assignment? 7 9.Is it possible to hire a general consultant for handling all aspects? 7 10.Can the same firm provide legal, financial and technical advice? 8 11.What is the role of different (legal, financial, etc) consultants? 8 12.When should lead consultants be engaged? 10 13.What are the advantages and disadvantages of lead consultants? 10 14.On what considerations should lead consultants be appointed? 10 15.What should be the procedure for selection of consultants? 10 16.What is the 'two-envelope system' of bidding? 11 17.What should be the evaluation criteria'? 11 18.What should be the weightage for technical and finaneial bids? 12 19.What is the purpose of the technical bid? 12 20.What does the financial bid contain? 12 21.How should the technical proposal be evaluated? 12 22.What if less than two applicants are pre-qualified? 13 23.Should all applicants securing more than 70 per cent marks be shortlisted? 14 24.Should all financial bids be opened'.' 14 25.How should financial evaluation be carried out? 14 26.How should the final ranking of proposals be done? 14 27.Whether the time input of each key personnel should be specified? 14 28.Whether applicants should be allowed to form a consortium? 14 29.What are the various forms of contracts for consultancy? 15 30.Which form of contract is preferable for PPP related consultants? 16 31.Is success fee an appropriate form for PPP related advisers? 16 32.Can consultants be selected purely on the basis of financial offers? 16 33.Can consultants be appointed on nomination basis'? 17 34.Should procurement of consultancy services be through advertisement? 17 35.What information should be given to enable applicants to bid? 17 36. What is the role and relevance of TOR? 18 37. Who should evaluate the technical bids? 18 38. Is the Consultancy Evaluation Committee required in all cases? 18 39. What are the international best practices for selection of consultants? IS 40. What is conflict of interest? 19 41. What are the obligations of consultants? 20 42. What are the liabilities of consultants? 21 43. Are the consultants required to take out any insurance? 21 44. Are pre-bid meetings necessary? 22 45. Should the offers be checked for responsiveness? 22 46. What are the conditions of eligibility? 22 47. Why should the draft contract agreement be given at the bidding stage? 22 48. Why is negotiation with the lowest applicant firm required? 23 49. How can transparency be ensured in the evaluation process? 23 50. What are the circumstances under which individual consultants can be appointed? 23 51. Can individual consultants be appointed on direct nomination basis? 23 52. How should the payment structure for the consultants be established? 24 53. What is the role of the Project Authority after the appointment of consultants?24 54. Does the appointment of consultants assist in capacity building? 24 55. Will documents prepared by the consultants be their property? 24 56. Are any model documents available in India for selection of consultants? 24 Annex-I Guidance Note on Conflict of Interest , 25