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General Operational Policies*


CONTRACTING OF CONSULTING SERVICES

GENERAL POLICY

The Bank and its borrowers/beneficiaries select consulting firms and professional consultants exclusively on the basis of their Competence and Suitability for providing the services required.

Consulting services will be selected and engaged following Transparent procedures without price-based competitive bidding.

Contracts for consulting services will be negotiated at Fair and Reasonable Prices for the types of services and technical qualifications required.

BASIC GUIDELINES

Individual consultants and consulting firms will be Selected through a competition, with the use of objective analyses to evaluate the relative merits of interested parties. Consideration will be given to the terms of reference for the work to be performed, the professional qualifications of candidates or technical capacity of firms, evaluations of work previously performed for the Bank, and capacity to carry out the work in a timely and satisfactory manner.

For the selection of consulting firms on the basis of technical proposals, from three to six firms must be considered in order to establish a broad basis for comparison.

In exceptional circumstances, selection of consulting services through open competition based strictly on the merits of the technical proposals may be waived, where the comparative technical advantage of a given firm or specialized agency can be justified, in accordance with previously-determined criteria.

The Terms of Reference for consulting services should be clear and detailed, carefully stipulating the consulting activities involved, to facilitate their monitoring and supervision and allow for an objective evaluation of performance and results.

Only firms and professional consultants who are nationals or bona fide permanent residents of a member country of the Bank are Eligible for contracts financed by Bank funds.

All individual consultants hired by the Bank must sign a Certificate of Eligibility that will form part of the contract.

Only firms that are nationals of Bank member countries will be engaged, unless the Board of Executive Directors has decided otherwise with respect to a program in general or a specific agreement involving funds that the Bank administers.

Negotiation of a service contract begins with the individual or firm that ranked first in order of merit. Should an agreement not be reached, negotiations will be held with the second-placed individual or firm, and thus successively until a satisfactory agreement is reached.

Evaluation of the services provided forms an integral part of the process of hiring and administering consulting services.

Disputes between the Bank and an individual consultant regarding alleged nonperformance of a contract will be settled by arbitration, as stipulated in the respected service contract.

Protests lodged by a consulting firm or specialized agency will be examined and recommendations will be submitted to the competent authorities at Headquarters for a final decision.

Contracts with individual consultants, consulting firms, and specialized agencies may be Extended in exceptional cases, subject to specific conditions such as the requirement that the work to be performed be consistent with the objectives of the operation, funds are available, the services currently being provided are satisfactory, and the like.

No extensions will be allowed for Lump Sum contracts.

FEES

Fees for services will reflect the complexity of the work, the degree of responsibility, professional experience, and the academic qualifications required.

In determining the fees for individual local consultants, account will be taken of local market conditions, the salary history of the consultant, and the Bank's professional salary range in the country.

Local consultants will be paid only in local currency.

RESPONSIBILITY OF THE BORROWER OR BENEFICIARY

For consulting services funded from a Bank loan or a line of credit under the Project Preparation Facility, the borrower or the beneficiary of the operation will be responsible for selecting and hiring consultants, subject to stipulations agreed upon in advance with the Bank.

Under exceptional circumstances and upon the Written Request of the borrower or beneficiary, the Bank may directly select and contract the necessary consulting services.

The loan contract or agreement between the Bank and the borrower or beneficiary will include the terms of reference for the consulting services needed for the operation, which will be used as the basis for negotiating the service contract.

When the selection of consulting services is based on the submission of technical proposals, the Bank will approve in advance the list of firms or consortia invited to submit proposals.

Prior to signature of the consulting contract, a statement of nonobjection to the individual consultant or approval of the selected firm must be obtained from the Bank.

INTERNATIONAL COMPETITIVE BIDDING

This procedure will be used in contracting consulting services costing more than a threshold defined by the Board of Executive Directors.

The public Notice must include a description of the services required and comply with the rules on publicity set out in OP-502.

CONTRACTING FOR CONSULTING SERVICES FOR PROJECTS IN EMERGENCY SITUATION

In order to hire consulting services for projects declared under emergency, in amounts above the threshold for international competitive selection in the borrowing country, the Bank may authorize the Executing Agency to use the simplified international competitive selection procedures described in Section GS-601 of the Procurement Manual.

NORMS

The specific guidelines on the selection, contracting, and administration of consulting services and associated responsibilities are set out in the Procurement of Goods and Services Manual.

___________________________________________

Prevailing Prevailing Reference Documents:
Working Group on Consulting Services Report, August 1990
GP-92-15 Annex A, December 1998

* The operational policies of the Inter-American Development Bank are intended to provide operational guidance to staff in assisting the Bank's borrowing member countries. Over the course of the Bank's more than 40 years of operations, the approach to developing operational policies has taken various forms, ranging from the preparation of detailed guidelines to broad statements of principle and intent. Many policies have not been updated since they were originally issued, and a few reflect emphases and approaches of earlier years which have been superseded by specific mandates of the Bank's Governors, the most recent being the Eighth Replenishment mandates of 1994.

In accordance with the Bank's information disclosure policy, the Bank is making all of its operational policies available to the public through the Public Information Center. Users please note that the Bank's operational policies are under a process of continuous review. This review process includes preparation of best practice papers summarizing experience at the Bank and other similar institutions, and sector strategy papers.

 
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