Para 9.6 — CONSULT_MANUAL

2. In the first case, the advisers can be selected under any of the methods described in Chapter 4 (that is, whichever is considered most suitable, depending on the scope of work of the assignment). In the second case, QCBS shall be adopted, whereby the RfP specifies technical evaluation criteria similar to those relevant to standard Consultancy assignments. The financial proposal would include two distinct forms of remuneration:

a) a lump-sum retainer fee to reimburse the consultant for services made available; and b) A success fee, which is either fixed or preferably expressed as a percentage of the value of the privatization transaction.

3. Depending on the type of activity mentioned above and the circumstances of the Procuring Entity, the RfP specifies the relative weights assigned in the financial evaluation to the retainer and to the success fee, respectively. In some cases, the Procuring Entity offers a fixed retainer fee, and the consultant must compete only on the success fee as a percentage of the value of the privatization transaction. For QCBS (notably for large contracts), cost may be given a weight higher than recommended for standard assignments (such as 30 (thirty) percent), or the selection may be based on LCS selection. The RfP shall specify clearly how proposals will be presented and how they will be compared. Success fees are most appropriate when it is relatively easy to measure results in meeting the Procuring Entity’s objective (successful sale of assets) and when the success is at least partly related to the efforts of the consultant involved. Therefore, success fees are more likely to be adopted at the transaction stage, because by that time the Procuring Entity’s objective is to maximize revenue.

1. Quality audits of federal or state expenditures, are an important accountability mechanism for ensuring financial integrity. Therefore, public organisations have a vital fiduciary responsibility to ensure that their audit is of the highest quality.

2. Auditors typically carry out auditing tasks under well-defined ToR and professional standards. The ToR should consider applicable statutory, Government, organisational requirements and applicable auditing and accounting standards. Scope of Audit should cover the jurisdiction, Type of audit, contract period and any additional services. The Technical

9.6 Financial Advisors 1. Procuring Entities may hire financial institutions to implement two main types of assignment: a) in the preparation of studies and financial Consultancy; or b) As advisers on financial restructuring, Mergers and Acquisitions (M&A), or demerger etc.

Manual for Procurement of Consultancy Services, Second Edition, 2025 qualifications should be based on licensing requirement, general and similar experience, quality certifications, quality and adequacy of staffing, financial capability, auditing approach and scheduling of the auditor. Auditors’ independence and lack of conflict of interest is also an important requirement. A presentation or interview also may be part of the RfP process. A pre-proposal conference may also be considered.

3. Since in recent time quality of audit has been a matter of concern, selection of auditors may preferably be done as a consultancy service on QCBS basis with emphasis on weightage of quality.