Procedure for the procurement of consulting service - DOH

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MANUAL PROCEDURES FOR THE PROCUREMENT OF CONSULTING SERVICES 5. INDEFINITE DELIVERY CONTRACT (PRICE AGREEMENT) These contracts are used when Procuring Entities need to have “on call” specialized services to provide advice on a particular activity, the extent and timing of which cannot be defined in advance. These are commonly used to retain “advisers” for implementation of complex projects (for example, dam panel), expert adjudicators for dispute resolution panels, institutional reforms, procurement advice, technical troubleshooting, and so forth, normally for a period of a year or more. The Procuring Entity and the firm agree on the unit rates to be paid for the experts, and payments are made on the basis of the time actually used. INCENTIVE BONUS Can a Procuring Entity give incentive bonuses to consultants? No incentive bonus, in whatever form or for whatever purpose, shall be allowed 4 ( Section 42.4 of the revised IRR). LIQUIDATED DAMAGES What happens when the consultant fails to satisfactorily complete the services required under the contract? When the consultant fails to satisfactorily complete the services required under the contract within the specified period, inclusive of duly granted time extensions, if any, the consultant shall be liable for damages for the delay. Consequently, it will have to pay the Procuring Entity liquidated damages in an amount equal to one-tenth (1/10) of one percent (1%) of the cost of unperformed portion for every day of delay (Section 68 of the revised IRR). In no case shall the sum of liquidated damages reach ten percent (10%) of the contract amount. If it does, the contract shall automatically be rescinded by the Procuring Entity, without prejudice to other courses of action and remedies open to it. The Procuring Entity may also take over the contract or award the same to a qualified consultant through negotiation. In addition to the liquidated damages, the erring consultant‟s performance security shall also be forfeited. In case the delay in the completion of the services exceeds ten percent (10%) of the specified contract time plus any time extension duly granted to the consultant, the Procuring Entity may rescind the contract. It then forfeits the consultant‟s performance security and takes over the prosecution of the contract or awards the same to a qualified consultant through negotiated procurement. 4 For FAPS, any allowable incentive bonus would be provided in the standard bidding documents for the project. However, an incentive bonus is generally allowed only when it would be of benefit to the Procuring Entity. The option to grant incentive bonus is given by the IFIs to the Procuring Entity. 118
DOH CUSTOMIZED PROCUREMENT MANUAL VOLUME 4 2010 SUBCONTRACTING Is subcontracting allowed for the procurement of consulting services? Unless otherwise specified in the bidding documents, the Consultant may subcontract portions of the Consulting Services to an extent as may be approved by the Procuring Entity and stated in the bidding documents. However, the discretion of whether or not to allow subcontracting arrangements is within the determination of the procuring entity. The procuring entity also has the authority to specify the portions of Consulting Services and the maximum percentage allowed being subcontracted. Only a maximum of twenty percent (20%) of the Consulting Services may be subcontracted. Subcontracting of any portion shall not relieve the Bidder from any liability or obligation that may arise from the contract for this Project. The Supplier will be responsible for the acts, defaults, and negligence of any subcontractor, its agents, servants or workmen as fully as if these were the Supplier‟s own acts, defaults, or negligence, or those of its agents, servants or workmen. Subcontractors must comply with the eligibility criteria and the documentary requirements specified in the bidding documents. In the event that any subcontractor is found by the Procuring Entity to be ineligible, the subcontracting of such portion of the Goods shall be disallowed. The Bidder may identify the subcontractor to whom a portion of the Goods will be subcontracted at any stage of the bidding process or during contract implementation. If the Bidder opts to disclose the name of the subcontractor during bid submission, the Bidder shall include the required documents as part of the technical component of its bid. Subcontractors disclosed and identified during the bidding may be changed during the implementation of this Contract, subject to compliance with the required qualifications and the approval of the Procuring Entity. 119
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