Para 7.4.3 - QCBS Selection | KartavyaDesk
Original Rule Text
7.4.4. QCBS Selection 1. Please refer to para 4.3.2 for the conditions permitted, for the use of QCBS selection in procurement of NC Services. That para also details competent authority and grounds for declaring a procurement as Quality Oriented Procurement (QOP), for use of QCBS method. That para also covers the role of STC (or Technical Committee in case of NC Services) for fixing parameters of the QCBS selection. 2. Evaluation of QCBS Bids: For evaluation, a suitable committee shall be constituted. However, members of the STC shall not be involved. a) Joint Ventures: Joint Ventures may be avoided in general in Non-consultancy services and particularly in QCBS system in NC Services. (Please refer to para 4.3.2 above) b) Since MII order is applicable ‘where the bid is evaluated on price alone’ – MII purchase preference would not be applicable where evaluation is based inter-alia on non-price criteria, e.g., QCBS or FBS in Services and Works. c) Weightages: As mentioned in para 4.3.2, the proposed weightages for quality and cost shall be specified in the Tender. Under QCBS selection, the technical proposals will be allotted weightage of not more than 30% (Thirty per cent) while the financial proposals will be allotted weightages of 70% (Seventy per cent) or more as declared in the Tender. d) Qualifying Benchmark: As mentioned in para 4.3.2, in QCBS selection, minimum qualifying marks (normally 70-80 (seventy – eighty) out of maximum 100 (hundred) marks) as qualifying benchmark for quality of the technical proposal shall be prescribed and indicated in the Tender Document along with a scheme for allotting marks for various technical criteria/ attributes. Bids scoring less than the minimum threshold shall not be considered for further evaluation. Since the weightage of the cost element adopted in NC services is as high as 70 (seventy) percent, financial considerations would dominate the selection, though to a lower extent as compared to LCS (Least Cost Selection – L1 basis). In such cases, it is essential to ensure that the minimum
What This Means
Para 7.4.3 of the Manual for Procurement of Non-Consultancy Services outlines the process for using Quality and Cost Based Selection (QCBS). QCBS is a method where both the quality of the proposal and the cost are considered when choosing a vendor. This rule explains how to evaluate bids received under the QCBS method, including setting weightages for quality and cost, and establishing a minimum qualifying score for the technical proposal. It emphasizes that while cost is a significant factor (usually 70% or more), the quality aspect must still meet a minimum threshold to ensure the selected vendor is competent.
This rule applies when a government department decides to procure non-consultancy services using the QCBS method. It affects the procurement committee responsible for evaluating bids, as well as potential vendors who are submitting proposals. The rule aims to balance cost-effectiveness with ensuring a certain level of quality in the delivered service. It also clarifies that Make in India (MII) preference is not applicable under QCBS since the bid is not evaluated on price alone.
Essentially, Para 7.4.3 ensures that when the government uses QCBS, it's not just about finding the cheapest option. It's about finding a vendor who offers good value for money, meaning they have a strong technical proposal and a competitive price. The rule provides guidelines to make sure the evaluation process is fair and transparent, and that the selected vendor is capable of delivering the required services to a satisfactory standard.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •QCBS is used when both quality and cost are important factors in selecting a vendor for non-consultancy services.
- •Technical proposals are allotted a weightage of not more than 30%, while financial proposals are allotted 70% or more.
- •A minimum qualifying score (typically 70-80%) must be set for the technical proposal, and bids below this threshold are rejected.
- •Make in India (MII) purchase preference is not applicable under QCBS.
- •Members of the STC (or Technical Committee) should not be involved in the evaluation committee for QCBS bids.
Practical Example
The Ministry of Agriculture wants to procure a service for maintaining its IT infrastructure using QCBS. They specify in the tender document that the technical proposal will have a weightage of 30% and the financial proposal 70%. They also set a minimum qualifying score of 75 out of 100 for the technical proposal. Three companies, 'Tech Solutions,' 'InfraServe,' and 'Global IT,' submit bids. 'Tech Solutions' scores 80 on the technical evaluation, 'InfraServe' scores 70, and 'Global IT' scores 65.
Because 'Global IT' scored below the minimum qualifying score of 75, their bid is rejected. The procurement committee then evaluates the financial proposals of 'Tech Solutions' and 'InfraServe,' combining the technical and financial scores based on the pre-defined weightages to determine the winning bid. Even if 'InfraServe' had a slightly lower financial bid, 'Tech Solutions' could still win if their higher technical score sufficiently compensated for the price difference, ensuring the Ministry gets a vendor with a strong technical foundation.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is the main purpose of using QCBS?▼
How are the weightages for technical and financial proposals determined in QCBS?▼
What happens if a bidder's technical proposal doesn't meet the minimum qualifying score?▼
Does Make in India (MII) preference apply under QCBS?▼
Who should be part of the evaluation committee for QCBS bids?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Test Your Knowledge
Question 1 of 3
According to Para 7.4.3 of the Manual for Procurement of Non-Consultancy Services, what is the maximum weightage that can be assigned to the technical proposal in QCBS selection?
Related Rules
Need help understanding this rule?
Ask Niti — your AI assistant for Non-Consultancy Manual and other government rules