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OF CONSULTANCY SERVICES
A paper prepared by Eng. Peter Maina Wakori for presentation at the Project
Management Seminar Organized by the Institution of Engineers of Kenya
Project Identification is part of the planning process. I have therefore decided to present
to you the principal steps in planning in order to see where project identification falls.
1. Problem definition
2. Solution generation
3. Solution analysis
4. Evaluation and choice
5. Implementation
Problem Definition
objectives
constraints
inputs and outputs
value functions Implementation
decision criteria
Solution Generation
Solution Analysis
Recommended strategy or
Evaluation and Choice projects
Planning therefore is a continuous process involving an interaction of the
government, other stakeholders and the community being served.
A. GOAL:
Goal is an end to which a plan trends. It is an ideal expressed in abstract terms
that is sought after continuously, and not an end state that can be reached.
Goals are set of statements that attempt to convey to the planner an image of ideal
systems and in this way provide him with overall direction. Thus planning means
a pursuit of a carefully defined set of goals
The overriding goals of a society are contained in its national objectives: the
constitution, national policy and national development plans. Traditionally they
include at least freedom, social justice, progress and national unity. These are
ranked in order of importance in different societies according to the desires of
their respective members as filtered through the political systems.
B. OBJECTIVE
An objective may be conceived as a lower order goal which at least conceptually
is capable of being measured.
For instance: a typical community goal might be “to ensure that job opportunities,
housing etc are available to all socio-economic groups in the community.
One of the objectives of the urban transport system that should be fulfilled to
permit this goal to be pursued would be “to maximize and equalize the
accessibility to urban activities by public transport from all residential areas.
C. STANDARD
A standard is of lower order again than an objective and represents a condition
that is capable of both measurement and attainment.
For instance: if the objective of the transport system is to maximize and equalize
the accessibility to urban activities, one standard would be to permit the principle
activity centers to be reached form each other by public transport services with
travel times not greater than 30 minutes.
The distinction between goals, objectives and standards must be made, not only
order to overcome semantic difficulties but also to provide information for each of
the hierarchies of planning.
The different levels of plan are: -
Such a plan is for a 30-40 year period with at least one intermediate plan of
20years. One would prepare indicative forecasts of major concentrations of
land use, population, employment, etc on the basis of broad understanding of
existing conditions.
Such a plan is for a 20year period with at least one intermediate horizon of 5
years. It requires neighborhood to be divided into homogeneous zones on the
basis of population and comprehensive forecasts made of zonal parameters
including population, employment, etc.
The first step of any problem –solving process is to develop a clear understanding
of the problem to the solved. Most of the urban transport discussions have tended
to cloud the real issue which is the identification of the urban transport problem in
its broadest sense. There is a fundamental difference between:
- Refining an existing solution to a problem is an effort to eliminate some of its
real weakness; and
- Starting with a fundamental and comprehensive problem statement and
synthesizing a superior’s solution in a systematic fashion.
An important principle here is that the more general you understand a
problem, the more the number of possible solutions.
One Canadian gentleman by the name of Lithrick made the following
observations in a study of urban problems in Canada.
The aim of the problem definition step is to define the interface between the
system and its environment and to identify the rule or criterion which may be used
by the planner to identify the optimum system, programme or project.
The pertinent features of a problem definition may be developed in a concise and unified
form through the use of the following concepts:
• Project objectives
• Project constraints
• Project inputs
• Project outputs
• Value functions
• Decision criteria
Constraints
We have already seen how we establish objectives. Let us now look at the constraints.
The constraints on a project are defined as those characteristics of the environment
(financial, economic, social, political etc) that limit the extent of a feasible solution.
An example of a constraint is the financial constraint on both the capital and operating
expenditures associated with transport systems or projects. Transport investments must
compete with investments in other public sectors such as education, water supply and
waste disposal. The financial resources required of the projects often exceed the available
investment resources of a region or country.
Perhaps some of the most severe constraints on the planning of urban transport systems
are those of political nature. For example, it may be necessary to subsidise public
transport services out of general property taxation revenues in order to make these
services financially viable. The subsidy may be necessary in order to provide non-car
owners with an acceptable level of transport service. The government may not accept the
principle of direct subsidization. The planner may therefore be forced to look into an
alternative means of accomplishing the same end which is compatible with political
preferences.
Inputs
The inputs to a project may be described as those characteristics of the environment that a
project must transform into outputs in the light of the project objectives. The inputs to an
urban transport project are the demands for the movements of persons and goods between
activity areas.
There are two dimensions of travel demand that are of interest: spatial patterns of
travel demand that exist through out a region and the times throughout the day at
which the dominant spatial pattern of travel occur. These must be estimated.
Outputs
The outputs of a project are those characteristics of the project that influence its
environment directly and that are a function of the inputs and the project properties. The
magnitude of project outputs determine the degree to the project objectives are fulfilled.
Value Functions
This is a procedure for mapping the magnitude of an output into the units of value in
which the objectives are measured. For example:
A stated objective may be to increase safety with the objective being measured in
shillings. The problem is to formulate a value function that assigns shilling values to
changes in this output. We need to develop a method of converting the decrease in
accidents into monetary value.
Decision Criteria
A decision criterion is a rule that instructs the project planner how the individual
measures of value associated with the project outputs and the financial resources required
for the construction and operation of the project should be manipulated in order to arrive
at a single index of value for the project in order to allow the optimal project to be
identified.
For projects whose objectives are measurable in monetary value, the decision criteria is
straightforward: select a project with the maximum difference between the net present
value of benefits and costs.
SOLUTION GENERATION
The second phase of the planning process is solution generation. The aim of this phase
is to generate an array of solutions that satisfy the previously established objectives to a
greater or lesser degree and which do not violate the constraints.
• Expressways: provide for high volume and relatively fast movement to and
from major activity concentrations that depend regional-wide support.
Traffic movement on such facilities are grade separated without direct land
access and movements between different road facilities are achieved by
interchanges.
• Arterials: provide for the movement of trips between freeways and collectors
where ease of traffic movement is emphasized and little or no direct access to
land is provided, intersections between arterials and with collectors are
usually at grade and signalized.
• Collectors: provide for the movement of trips between arterials and locals
and provide direct access to land.
One would therefore develop an array of road solutions depending on the objectives and
constraints.
SOLUTION ANALYSIS
This is the third phase of the planning process and its objective is to predict the probable
operating state of each of the alternative solutions that have been generated given the
social, economic, political and other aspects.
The planner must predict the magnitudes of the output variables given the input
magnitudes and the project properties. In transportation the input magnitudes and
behaviour of alternative projects are estimated normally through a four phase process
involving:
This is the fourth phase of the planning process. The aim is to identify the alternative
project that satisfies the objectives to the greatest extent. The data required for this phase
include:
• The output variable magnitudes predicted in the solution analysis step
• The value functions
• The decision making criteria.
I notice that my next presentation covers Feasibility Study, Economic Evaluation and
Preliminary Design. Feasibility Study and Economic Evaluation are part of the fourth
phase in the planning process: Evaluation and Choice.
Engineers are free to offer consultancy services to any organization: private or public. So
when I received the invitation to present this paper, particularly in the area of
procurement of consultancy services, I got a little confused. Do I discuss public or private
procurement of consultancy services? Well since I have never been involved in the
procurement of services for private entities, I took the easier option. I will therefore
attempt to present the process of procurement of consultancy services by public entities.
Accordingly, public entities should prepare Request for Proposals (RFP) that clearly and
precisely define the qualifications, capability, experience and facilities required to
provide the services being procured. In addition evidence of legal capacity to enter into a
contract should be demanded as well as a declaration that the consultant has not been
involved in corrupt and fraudulent practices in the past and will not be involved in such
practices in the procurement being sought.
However natural persons, companies or firms, joint ventures or groupings of companies,
cooperative societies and other legal persons shall not participate in a procuring process
administered by public entity if:
In this regard the Request for Proposal for consultancy services should have a declaration
that the consultants are not in any of the above categories. The consultants will be
expected to sign this declaration.
fix price;
have that other person to refrain from submitting a proposal or
withdraw or change the proposal.
Procurement entity will reject a proposal for award if they determine that:
According to clause 76 of the Public Procurement and Disposal Act, a procuring entity
may use a request for proposals for a procurement if:
As a first step towards the use of the Request for Proposals, the procuring entity shall
prepare a notice inviting interested persons to submit expressions of interest.
Letter of invitation (LOI) that shall state the intention of the procurement
entity to enter into a contract for the provision of consultancy services, the
source of funds, a brief description of the services to be procured, the
qualifications necessary to be invited to submit proposals, name and
address of the procuring entity and the date, time and address for
submission of Expressions of Interest will be submitted. The LOI be
advertised as per regulations.
Information to Consultants (ITC) that shall contain all necessary
information that would help consultants to prepare responsive proposals.
The ITC shall bring as much transparency as possible to the selection
procedure by providing the following information:
The essential components of the conditions of tender and the conditions of contract
are as follows:
1. Two envelop procedure: the bid for services and the price
quotations are to be sent separately, in two sealed
envelopes and submitted in a manner that shall ensure that
the technical evaluation is not influenced by price. Standard
formats for the technical and financial proposals to be
included.
2. The language of the bid and information on the site visit at
expense and risk of the applicant.
3. Enquiries only permitted in writing or other acceptable
means and deadline for their submission. Answers will be
sent to all applicants.
4. The period for which the consultant’s proposals shall be
held valid and during which the consultants shall undertake
to maintain, without change, the proposed key staff and
shall hold to both the rates and total price proposed; in case
of extension of the proposal validity period, the right of the
consultants not to maintain their proposal.
5. Deadline for submission of proposals.
6. A statement on whether joint ventures or other associations
between short-listed consultants are acceptable to
procurement entity.
7. Contents of the bid for services including critical analysis
of the TOR, concept and methods, organization and
logistics, timetable and staffing schedule, composition of
project team including backstopping personnel, explanation
of the task of each member of the team, account of
envisaged back-up services from home office, services to
be performed by sub-contractors, declaration of associated
firms and statement of other services provided by the
procurement entity executing the project such as office
premises, transport, equipment, etc.
8. Contents of the price quotation including structure of the
price quotation in a prescribed form where appropriate,
currency to be used, fees shown separately according to
expert personnel months, foreign allowance, and
accommodation costs in place of service, transport costs
between the home country and the country of service, local
transport costs, office costs in the country of service,
acquisitions, drawing up reports and other costs reasons for
which must be given.
9. Payment conditions including currency; lump sum or based
on work performed, fixed prices/escalating prices as
appropriate, arrangement for the payment of customs and
excise duties and other taxes; whether consultant is exempt
from these, method of payment; advance payment bond ,
retention bond, criteria for disbursement of intermediate/
final payments.\
.
Terms of Reference (TOR) that set out the specific requirements
relating to the consultancy being procured. The specific
requirements must be clear and give a correct and complete
description of what is being procured and shall include the
technical requirements with respect to the services and anything
else required under the regulations to be set out in the TOR. The
technical requirements shall, where appropriate relate to
performance and be based on national and international standards.
The procedures and criteria to be used to evaluate and compare the
proposals including the procedures and criteria for evaluating the
technical proposals which shall include a determination of whether
the proposal is responsive, the procedures and criteria for
evaluating the financial proposals and any other additional method
of evaluation and the procedures and criteria for that additional
method. These may be included in the TOR.
A statement to the effect that the firm or its affiliates who will
enter into a contract resulting from a procurement by this RFP
shall be disqualified from providing downstream goods, works or
services under the project, if in the judgment of the procuring
entity, such activities constitute a conflict of interest with the
services under the assignment.
Information on negotiations; and financial and other information
that shall be required of the selected firm during negotiation of the
contract.
Anything else required under the PPD Act or the regulations set
out in RFP.
The firm obtaining the highest total score shall be invited for negotiations. Negotiations
shall include discussions of the TOR, the methodology, staffing inputs of the procuring
entity and special conditions of the contract. These discussions shall:
not substantially alter the original TOR or the terms of the contract lest the quality
of the final product, the cost and relevance of the initial evaluations be affected.
The final TOR and the general methodology shall form part of the contract.
not allow the selected consultant to substitute key staff, unless both parties agree
that undue delay in the selection process made such substitution unavoidable. In
such a case, the key staff proposed for substitution shall have qualifications equal
to or better than the key staff initially proposed.
include clarification of the consultant’s tax liability in Kenya, and how this tax
liability has been or would be reflected in the contract.
not include proposed unit rates for staff-months since these will have already been
factored in the cost of the proposal.
The procuring entity will be justified to reject all proposals and invite new proposals only
if:
1. all proposals are non-responsive and unsuitable either because the they present
major deficiencies in complying with the TOR, or because they involve costs
substantially higher than the original estimate. In the latter case, the feasibility of
increasing the budget, or scaling down the scope of services should be
investigated in consultation with the development partner, if any.
2. development partner, if any has been notified of the proposed rejection of all
proposals with an indication of the reasons for rejecting them.
3. development partner, if any has given a ‘No Objection’ to reject all proposals and
to commence a new process. The new process may include revising the RFP
including the shortlist and the budget with the agreement of the development
partner, if any.