Question 1:

1. Consulting management
Is the service provided to business, public and other undertakings by an independent and
qualified person or persons in identifying and investigating problems concerned with
policy, strategy, organization, effectiveness, procedures and methods, recommending
appropriate action and helping to implement those recommendations.
For example, consulting in EIA for a new project
Insures: Delay on service delivery
To address this, you need to agree on TOR with regards to time duration and a contractor to
have a work program

2. Management a consultancy project

A project management consultancy provides expert project management advice to external
businesses. A company may hire a project management consultancy if it lacks project
management expertise. Or if it wants project management advice from an external, impartial
party.

The main objective of managing a consultancy project is to satisfy the needs of the client
since the consultant is hired for this purpose. Thus, the consultancy project must be
managed to achieve the above objective, but at the same time must be managed as a
business in order to achieve good results in commercial and financial terms. The consultant
also needs to manage the client expectations and deliver high quality services. So, the first
steps in managing a consultant project is to establish the scope of the project i.e. reaching an
agreement with the client on what the consultant is expected to provide to meet customer
expectations, the plan of the assignment, methodologies to be used, deliverables and cost
involved. Deliverables can be in a form of an actual product e.g., a completed software
package or a report or plan for future actions. At this point the consultant will have to
establish the actual number of resources required to complete the deliverables. Based on
estimates of resource requirements and the rates charged, the consultant may arrive at the
fee to charge the client. All this information can be accommodated in the consultant’s
inception report, outlining the nature of the problem to be addressed by restating the issue to
be addressed, methodology, work plan, qualification and staff involved, key milestones,
cost, payment plan, payment plan and deliverables.

The consultant also needs to manage resources for the project effectively. These are the
human, finance and time. After agreeing the scope of the project, the consultant engages the
key staff and other personnel to perform the assignment. This involves collection of primary
and secondary data from various sources and using different methods and reviewing
literatures pertaining to the assignment. At this juncture, the consultant must establish a
good and harmonious working relationship with client staff. This will enable the consultant
to get the information needed for the assignment but also to get views of the client to the
proposed solutions to the problem.

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 The consultant needs to manage the time allocated for the assignment so that you don’t lose
track. This may entail working longer hours than you would if working for the company in
order to meet the deadline. It is also important to manage your cash flows for the project.
The consultant needs to establish the billing schedule, so that invoices are raised according
to the agreed payment plan.

Other aspect t be considered in project management is good communication between the

client and the consultant by ensuring there is a smooth flow of information. Finally
managing the consultant project need a good supervision.

3. Management consulting
Is an advisory service contracted for and provided to organizations by specially trained and
qualified persons who assist in an objective and independent manner, the client organization
to identify management problems, analyze such problems, recommend such solutions to
these problems, and help when requested, in the implementation of solutions”.
.
4. Consultancy proposal
A consulting proposal is a document sent to a potential client that acts as a sales pitch. It
outlines how the consultant would handle a specific project. A consulting proposal is also a
marketing document that shows why the consultant's experience and skills make him or her
the best fit for the job.

A proposal is the first guide for any assignment or project. It elucidates what has to be done
to achieve or exceed the client’s expectations. To achieve this goal a proposal has to clearly
show how to carry out the assignment by detailing the steps involved at each stage of the
assignment to completion. A winning proposal is the one, which addresses the problem and
offers solution at the most economical way. This chapter dwells on how a proposal has to be
written and what should be included in the proposal.

5. IT consultancy
IT consultants' revenues come predominantly from design and planning based consulting
with a mixture of IT and business consulting. This is different from a systems integerator in
that you do not normally take title to product. Their value comes from their ability to
integrate and support technologies as well as determining product and brands.
6. CE consulting
Is an independent, professional engineer who performs well-detailed engineering services
for clients on agreed sum of money. He must be registered to practice as a professional
engineer in the state or country where he resides

7. RFP
Under normal practice, only those consultants who have been pre-qualified are invited by
the client to give their proposals
After the client has prepared the Terms of Reference for the particular assignment or
project, the next step is to prepare letter of Invitation commonly known as Request for

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 Proposal (RFP) and give the same to pre-qualified consultants so as to have their offer
(Proposal) on the assignment.
The Request for Proposal (RFP) includes
i. This letter of Invitation: Request for Proposal
ii. Information to consultants
iii. Technical Proposal- Standard Form
iv. Financial Proposal- Standard Form
v. Terms of Reference
vi. Standard Form of Contract

8. Internal consultant
IC is any individual/group which serves internal clients in an advisory capacity, including:
Bringing a specialized management consulting expertise to improve the performance of the
company/organization
Working within the corporate structure to resolve business issues and implement solutions
in organizational effectiveness/development, strategic planning or process improvement
Serving as a change agent, coach, educator or facilitator within your company
Supporting internal clients in a shared service type organization, such as Human Resources,
Training & Development, Information Technology, Finance, Quality Management, Health,
Safety & Environmental Services, Competitive/Business Intelligence and Planning, etc.

9. Infographics
Infographics refers as Information graphics and is a collection of images, charts and
minimal text that gives easy to understand overview of a topic. Infographics are great for
making complex information easy to digest. They can be helpful anytime you want to:
i. Provide a quick overview of a topic
ii. Explain a complex process
iii. Display research findings or survey data
iv. Summarize a long blog post or report
v. Compare and contrast multiple options
vi. Raise awareness about an issue or cause

10. Data analytics

Data Analysis is the process of systematically applying statistical logical techniques to
describe and illustrate, condense and recap, and evaluate data. An essential component of
ensuring data integrity is the accurate and appropriate analysis of research findings

The process of data analysis uses analytical and logical reasoning to gain information from
the data. The main purpose of data analysis is to find meaning in data so that the derived
knowledge can be used to make informed decisions.
There are different types of dada analysis which includes; Text, Statistical, Diagnostic,
Predictive, Prescriptive Analysis. Data Analysis consists of Data Requirement Gathering,
Data Collection, Data Cleaning, Data Analysis, Data Interpretation, Data Visualization.

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11. Meta-analysis
Is a quantitative statistical analysis of several separate but similar experiments or studies in
order to test the pooled data for statistical significance. A meta-analysis is basically a study
about studies. It is used to get an integrated result. In other words, a researcher reviews
previously published studies on a topic, then analyzes the various results to find general
trends across the studies. It can be used in psychology, general medical practice, or detailed
studies of particular diseases, conditions, and treatments

12. Town planning consulting.

13. Marketing of consultancy services
Marketing is the process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods, services, organizations, and events to create and maintain
relationships that will satisfy individual and organizational/company objectives. Marketing
is how you define your product, promote your product, distribute your product, and to
maintain a relationship with your customers. In short, Marketing is everything you do to
find or keep a client. (Biech, 2003). Marketing is the set of activities used to:
i. get your potential customer's attention
ii. motivate them to buy or use your service
iii. get them to actually buy/use the service
iv. get them to buy/use again and again

Consultancy service is act or performance that one party can offer to another is essentially
intangible and does not result in the ownership of anything. It is production may or may not
be tied to a physical product
In consulting business marketing is done mainly through networking, as well as through
other methods such as public relations and publicity, advertising and sales promotion.

Consulting is built in relation and networking is the cornerstone of the business promotional
efforts mainly because potential customers manage the risk of choosing new services by
asking others for recommendations and referrals.

In consulting, marketing is often thought of as a distant function, a set of activities, tools or

techniques, which cost time and money and which many consultants would prefer to avoid.
It involves identifies client’s needs, reveals the client’s mentality, defines the best way in
which the consultant can be useful and puts the whole consulting process in motion. The
service of marketing in consultancy service does not stop when a sale is made. The
consultant continues to market after the contract has been signed, while the project is being
executed, and even after the project has been completed.

14. Internet-aided consultancy project

Internet consultancy is a process of providing consultancy services by the use of internet,
this is a result of advanced technology in which IT professionals are critical to the day to
day running of any successful organization. For a successful internet consultancy services,
the provider (consultant) should have background in areas involving online activities that is

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 a working knowledge of IT (software and hardware), marketing background (internet
marketing), and web design knowledge. Internet aid consultancy includes e-marketing, e-
learning, video conferencing and tele medicine.

15. Repeat consulting business

In consulting business, the primary objective should is to secure repeat business.

16. Terms of reference

Terms of reference (TOR) is an initial statement of the work to be done by a Consultant
There are three approaches used in the preparation of initial terms of reference according to
different categories of clients;
Preparation of Initial Terms of Reference

1) Terms of reference prepared by the Client

The client takes trouble to do own problem identification and diagnosis before
talking to any consultant, and when ready, calls for proposals from consultants.

2) Terms of reference prepared by client using consultant

The client engages a consultant to carry out preliminary problem diagnosis and uses
the findings of this consultant to draft the terms of reference that he or she uses for
initiating a formal selection procedure to designate a consultant who will execute the
assignment.

3) Terms of reference prepared by a consultant

A third category of clients, does not use any formal terms of reference in preparing
an assignment and choosing consultant, but assigns the definition of the work to the
consulting contract.
Why TOR; The reason behind these different practices is;

1) If Terms of Reference (TOR) are used, it reflects that

a) The client’s policy requires much analytical and planning work before
considering using a consultant; often this will be the case of assignments dealing
with relatively narrow and well- defined technical issues.
b) The client (usually in the public sector) is obliged by existing regulations to
draft formal terms of reference, and obtain their approval, as an initial step in a
formal consultant selection procedure.
2) If Terms of Reference are not used it reflects that;
a) The client (usually in the private sector) prefers to select a consultant
thoroughly, do preliminary problem diagnosis and define the scope of the
assignment jointly with him or her. The client then confirms the choice on the basis
of a proposal (offer) received from the consultants, without using the intermediate
stage of drafting terms of reference.

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 Structure of TOR
Basically, the preliminary Terms of Reference to be issued to consultants as an initial
document for proposal consists of;

i. Problem description
ii. Objectives and expected results of the assignment (what is to be achieved, final
product)
iii. Background and supporting information (on client organization, other related
projects and consultancies, past efforts to solve problems etc)
iv. Budget estimates or resource limit
v. Time table (starting and completion dates, key stages and control dates)
vi. Interim and final reporting (dates, from to whom, etc)
vii. Inputs to be provided by the client (further information and documentation, staff
time, secretarial support, transport etc)
viii. Exclusions from the assignment (what will not be its object)
ix. Constraints and other factors likely to affect the project
x. Profile and competencies of eligible consultants
xi. Contact persons and addresses.

17. Development of future dynamic and prosperous consultants

Bodies like ERB, CRB, ACET, NCC, etc, have many obligations in ensuring that the future
engineering profession are developed and practice ethically and morally the consultancy
services for the benefit of both stakeholders such as clients, engineers themselves who
participate and those who are not participating as a result of screening and fair competition
of tenders, and users of the products/services as a result of engineers’ work.

18. EC projects
Engineering consulting firms provide engineering services and expertise to companies in
need of a specialized skill-set. Generally, the consulting service company has experienced
engineers able to provide short-term technical advice for a fee. Consulting professionals
work with clients to define solutions to problems or to help determine and recommend the
best course of action for a given initiative. Engineering consulting services can save time,
effort, and money for companies that do not have the knowledge or expertise for handling a
specific task.

19. EOI
In this step, procuring entities invite consultants to show interests on the prospective
project/assignment. This is normally put in adverts in national or international newspapers
of wide circulation, depending on the method intended to be used in the acquisition process.
The interested consultants will respond to this by submitting relevant information according
to the requirements of the advert to express their interest. Their documents will be evaluated
according to set criteria, and those perceived to meet the requirements, that is to say, they
possess the required capabilities and experience to provide the specific service will be short-
listed.

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 20. Inception report
The inception report is a report that ensuring mutual understanding of the consultant's plan
of action and timeline for conducting the evaluation
An inception report, is a consultancy report which sets out the consultant’s approach to a
project. Included in the approach is the articulation of the overall requirements of the
project related to the proposed methodology, program of the works and staffing
requirements. Generally, the inception report is the blueprint for the life of the project.
Central to the report are the objectives of the project together with the activities that are
planned in order to meet those objectives.
Normally Inception Reports are prepared after the first team member has initiated work on
the project or after the initial phase of the project work. Inception Reports show the
following; -
Executive summary.
This gives brief details of the following
• Date the consultant signs the contract,
• General mobilization of the staff, resources
• Specifies when the project is to be commenced.
21. Desk review
Desk research is another name for secondary research, which involves the summary,
collation and synthesis of existing research. It is contrast to primary data in that; primary
data involves the generation of data, whereas secondary research uses primary research
sources as a source of data analysis.

22. Engineering contact management

Engineering Contract Management is the process of managing engineering contracts,
deliverables, deadlines, contract terms and conditions while ensuring customer satisfaction.
Public and private organizations know that purchasing does not end when the contract is
awarded. Effective post-award of Engineering Contract Management is essential.

Question 2: How do you assess the state of the engineering consultancy sector in Tanzania?
a. Its scope
b. Sub-sectors that are doing well and not do so well
c. Major challenges and driving forces
d. Key considerations by existing and prospective consultants to succeed in it.
e. Discuss the unique nature and prospects of success in the following areas of
consultancy: procurement; IT; CE; ME; EE; Town Planning; highway engineering;
Mining; mineral processing; economic analysis; environmental engineering; and water
Engineering.
Answer
Engineering is a practice of performing engineering as a Consulting Engineer. It assists in
development of both public and private companies. This development can be in variety of ways
including process management, idea organization, product design, fabrication branding and
marketing.
a. The scope of Engineering consultancy in Tanzania;

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 My assessment concerning the scope is in two ways;
i. The coverage in consulting services where we can observe that the number of
consulting companies registered under ERB are 238 where 178 of them are Local
and 60 are foreign companies. This is a very small number compared to the
industry’s demand. However, the specific disciplines is very heterogeneous as the
total local consulting forms in Civil Engineering are 158 out of 178 and Foreign
Civil Engineering consultants are 55 out of 60. Therefore, scope is low and requires
impression and capacitation of young Engineers to become Consultants.
ii. Scope in Execution of the Consultancy services; in this case most of consulting
firms enter into agreement for Design, and supervision of the project. Their scope
may be based on the Clients budget even if the project needs more consulting
service.

b. Sub-sectors that are doing well and not do so well

There are sectors that doing well in Consulting which are Civil Engineering, Electrical,
Mechanical and Architectural. Some areas where we observe weaknesses are Cost
Consulting, Project Management and Mining. Locally, the consulting is more of the
practicing fields than the less practicing ones. While this holds for most construction
projects, then the Mining industry has been dominated by foreign consultants due to high
investment capital.
c. Major challenges and driving forces

In participating to the Engineering Consultancy in Tanzania, there has been challenges as

follows;
i. Changing client behaviour: Clients/developers not appraising Consultancy
services at the required extend
ii. Profitability: Projects stacking due to Budgets and financing arrangements hence
coverage reviews
iii. Project complexity: With unplanned changes often required late in a project, this
can affect a business line. The evolution of mobile technology has enabled
stakeholders to gain instant access to project information on the go.
iv. Cyber security: Consulting firms handle a large volume of confidential client
information, ranging from strategic information to commercial and personal data
this information can be very damaging if it falls into the wrong hands.
The driving forces towards entering Engineering consulting are;
i. Market pool: The need of consultancy services in the industry
ii. Technology: change of technology requires learning and training of the Engineering
social world
iii. Opportunities: Employment and practice of engineering activities in the Country.
d. Key considerations by existing and prospective consultants to succeed in it.
Key consideration is;
i. Empowering local Consultants by introducing a Project sharing ratio for the foreign
consultants

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 ii. Encouraging Clients and developers to employ Different Consultants for their
different Projects.
iii. ERB & AQRB to specifically prepare training on knowledge gap towards
dominating the consultancy.
iv. Clients / Developers should consider the consultancy as closed circuit to ensure that
a project Design ends at intended scope of work to make new people lean the
Consulting process and the Clients be satisfied with the services.

e. The unique nature and prospects of success in the following areas of consultancy:

i. Procurement;
This consultancy service will be unique when available because most Procuring
entities own a department in which all procurements are managed within. This has
minimized consulting services in this category except in trainings and special cases
only. However, this discipline of consultancy will be highly in need in future
because most procurements are planned and can be managed online hence requires a
lot of skills to manage.

ii. IT;
Consultancy services in Information Technology is based on the application of ICT
knowledge and skills on assisting/advising different businesses to meet their
business objectives on the matter of ICT, such services are system security, system
implementation and other ICT support.
iii. CE;
Consultancy services in Civil engineering deals with design of structures, Highway
material, Geometric, water resource and geotechnical engineering.
- Structural Engineering, deals with framed structures i.e multistore building
that may be reinforced concrete structures, steel or composite, underground
tunnel etc).
- Highway material and Geometric Engineering, deals with design of
pavements layers (i.e. subgrades, subbases, base coarse and wearing coarse) road
- Alignment, vertical and horizontal curves).
- Water resource Engineering, deals with water systems such as pumping
stations, storage facilities and distribution lines
- Geotechnical Engineering, deals with determining the soil profile with their
properties such as strength as well as their bearing capacity).
iv. ME;
Consultancy services in mechanical engineering field requires an understanding of
core areas including mechanics, dynamics, thermodynamics, materials
science, structural analysis, and electricity.

v. EE

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 Consultancy service in electrical engineering consultant with conducting analysis on
the design of an electrical system in a commercial or residential building and
suggest solutions or possible improvements.
vi. Town Planning;
Consultancy services that seeks to control the development of cities through local
regulations and direct interventions, to fulfill a number of objectives, such as
mobility, quality of life and sustainability.
vii. mining;
Consultancy services that Examine maps, deposits, drilling locations, or mines to
determine the location, size, accessibility, contents, value, and potential profitability
of mineral, oil, and gas deposits.
viii. mineral processing;
Consultancy service deals with assisting the project assessment of mine plant
development, focusing on technical and environment aspects.
ix. economic analysis;
Consultancy services that provide techniques of economic analysis to help
businesses, regulators and policy makers evaluate and implement strategic decisions.
They will also provide particular kinds of consultancy expertise, such as competition
policy, regulation, or market analysis.
x. environmental engineering
Consultancy services that provide advice to companies and other organizations on a
wide range of environmental issues such as green manufacturing, hazardous-waste
remediation (disposal and clean-up), environmental disasters, sustainability
initiatives, compliance, renewable energy, and water, air, and soil quality.

Question 3. NDC has advertised an opportunity to undertake a techno-economic assessment

of a project to establish 100% paper-based bottles for packaging all soft drinks in the
country. BICO - UDSM is interest to apply.
a. What do you understand by a techno-economic assessment?
b. Discuss how to do such an assessment properly and comprehensively
c. Is techno-economic one of the promising areas of consultancy in Tanzania?
d. Please assist BICO to prepare brief (2/3) pages EOI, Technical Proposal and Financial
Proposal.
e. Using a concrete Discuss how the follow aspects of economic assessment of project are
done:
i. Value added generated
ii. Foreign exchange effect
iii. Employment creation
iv. Social opportunity cost
v. Externalities
vi. Backward and forward linkages
vii Cost-benefit analysis and ration

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a) Techno-economic assessment or Techno-economic analysis (abbreviated TEA) is
a methodology framework to analyze the technical and economic performance of
a process, product or service.
TEA normally combines process modeling, engineering design and economic evaluation
Examples of applications of TEA include the evaluation of the economic feasibility of a
specific project, a forecast on the likelihood of the deployment of a technology at certain scale, or a
comparison of the economic merit of different technological options that provide the same service.
a) Techno-economic analysis is a research agenda that examine technology development and
research project in terms of costs, benefits, risks, uncertainties, and timeframes in order to
assess and evaluate economic consequences of a new hopeful technology. It makes a part of
wider economic thought called techno-economic paradigm.
b) The proper and compressively assessment of 100% paper-based bottles for packaging
all soft drinks in Country by the following methodology
Introduction:
The intention of this guideline is to enable engineers in research and technical development to
work on techno-economic assessments in a consistent and transparent way.
Techno-economic assessment TEA in principle is a cost-benefit comparison using different
methods. These assessments are used for tasks such as:
• Evaluate the economic feasibility of a specific project

• Investigate cash flows (e.g. financing problems) over the lifetime

• Evaluate the likelihood of different technology scales and applications.

• Compare the economic quality of different technology applications providing the same
Service
The assessment should base on;
– Whether the technology utilizes local raw materials?
– Whether the technology utilizes local man power?
– Whether the services and goods to be produced will cater to the basic
needs?
– Whether the technology protects the ecological balance?
– Whether the technology harmonious with social and cultural conditions?

The influence of taxation is not discussed in the guideline. As a simple rule taxes should be
included in cost and benefit assessment, if they are not refundable (e.g. transport fuel taxes).
Value added tax (VAT) usually is refunded (except for private use) and so should not be included
in TEA
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1. Cost assessment
For TEA cost are separated in investment related cost and in operation related cost, means that
Investment outlays and operations cost
Investment related cost
Technical cost of the Paper bottles in relation to present technology of existing
bottle, the following will be assessing. The choice of technology (Technical Assessment) is
influenced by:
• Principal inputs Proximity to Raw material and Man power availability
• Proximity to markets
• Capacity (plant) or size of the project
• Investment outlays and operations cost
• The use by other units
• Latest development
• Easy of adoption
• Facility location and site selection
• Public utilities (Infrastructure development)
• Government policies
• Environmental aspects and Safety
• Procurement (e.g. of plants and Machinery)
Investment related cost comprise:
• Initial investment including planning and consulting cost
• Administration and insurance cost (annual)
• Cost for plant (annual).
Investment related costs are independent of operation and operation intensity. They will arise
also from not operating plants.
1.1.1 Investment including planning and consulting cost
The investment is the cost to the investor for project development, financing, the construction,
and for getting the plant into regular operation (commissioning, operation permits and test
operation phase). Also, the cost for establishing the infrastructure for the project (area purchase,
traffic areas, building, electrical connection to grid etc.) is included, if paid as initial investment.
Cost for planning and consulting is a significant share (~5%) of the investment, even if a mature
and well-known technology is used. If the technology is new and unknown, the cost for
planning and consulting could be higher (up to 20 %) especially if the plant size is small (as
usually in demonstration and pilot plants)
.1.2 Administration and insurance cost
Cost for administration and insurance of the plant is an annual cost. Usually it is assessed as a
share of the investment sum and depending on the size and the complexity assumed to be 1 to
2 % of the investment.

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 1.1.3 Periodical cost for infrastructure, location, building.
Cost for infrastructure, location, building etc. are hugely variable, depending on the specific
situation of the project to be assessed. The comprises all costs that are not investment and are to
be paid on a periodical basis.
1.2 Operation related cost
Operation related cost comprise
• Fuel cost
• Labour cost
• Maintenance cost
1.3 General remarks on cost assessment
The first is the difficulty to produce realistic data for the cost components. The biggest obstacle
is the assessment of the investment cost, but in principle it concerns all cost components.
The second problem in cost assessment is taking into account contingencies (not expected cost).
Especially assessing new technologies as a broad tendency cost are underestimated in TEA, even
if the cost assessment is done very carefully and based on reliable data.
2. Benefit assessment
• Cost – Benefit analysis and Cost-Effective analysis
Both CBA and CEA examine the costs of producing net outcomes
CBA really only makes sense when applied to assessing the net value of achieving social
outcomes. In other words, CBA measures the full (social) costs of the full (social) benefits
resulting from an intervention
CEA measures the financial cost of producing a specific net outcome
In the case of bioenergy plants TEA, the benefit will be the earnings from selling the product(s)
produced. In some cases, also the selling of carbon credits or emission certificates could be an
additional benefit.
3. Risk assessment.
Risk assessment is methodically not incorporated in TEA. But risk have to be considered before
doing a TEA, otherwise the results produced would be probably without any relevance. Risk
analysis is dealing with several criteria (examples):
 Financial risk
 Environmental risk
 Technical risk
 Social risk.
 Net present value (discounted
4. TEA method.
Several TEA methods are discussed in this section:
• Static cost benefit assessment
• Annuity method
• Net cash flow table
(c) Is techno-economic one of the promising areas of consultancy in Tanzania?
Yes, the importance of a feasibility study is based on organizational desire to “get it right” before
committing resources, time, or budget. A feasibility study might uncover new ideas that could
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completely change a project’s scope. It’s best to make these determinations in advance, rather than
to jump in and to learn that the project won’t work. Conducting a feasibility study is always
beneficial to the project as it gives you and other stakeholders a clear picture of the proposed
project. Below are some key benefits of conducting a feasibility study:

 Improves project teams’ focus

 Identifies new opportunities
 Provides valuable information for a “go/no-go” decision
 Narrows the business alternatives
 Identifies a valid reason to undertake the project
 Enhances the success rate by evaluating multiple parameters
 Aids decision-making on the project
 Identifies reasons not to proceed.

d) EOI, Technical Proposal and Financial.

An “Expression of Interest” (EOI) is a demonstration of the readiness of a

candidate (firm, organization or individual) to participate in the execution of a
project or study. It provides an opportunity for the candidate to demonstrate
interest in a project and therefore a desire to be considered for inclusion in the
short-list of consultants eligible for the selection process. The EOI facilitates,
and is one of the sources of information, for preparation of the final short-list
that will be invited to submit proposals for consultancy services for a
particular Bank-financed project.

An EOI should contain the following:

 A summary of similar projects undertaken as a lead partner;

 A summary of projects undertaken in the project country and in
similar Countries;
 Client name, year in which the project was carried out (company
profile/experience
 Experience of key personnel; and
 Any other information that may be relevant in support of the EOI
like Submission letter.

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e) Using a concrete example, discuss how the following aspects of economic assessment of the
project are done
 Value added generated: is the enhancement that a company gives its products or
services before offering them to customers. For example, offering a year of free
technical support on a new computer would be a value-added feature, or
individuals can add value to the services they perform such as bringing advanced
skills into the workforce.
 Foreign exchange effect: are gains or losses on foreign investments due to
changes in the relative value of assets denominated in the foreign currency. For
example, Japanese yen’s gyration from 2008 to mid-2013.
 Employment creation: interventions include direct short and long-term job
creation programmers, interventions that foster self-employment and macro-level
policies. For example, the government may lower taxes to reduce to make hiring
less expensive, or the government may hire workers itself.
 Social opportunity cost: This takes account of any externalities, as well as direct
costs to the producers, it is contrasted with private opportunity cost, which takes
account only of direct opportunity costs to the producers, disregarding any
externalities.
 Externalities: is a cost or benefit caused by a producer that is financially
incurred or received by that producer. For example, air pollution from motor
vehicles is an example of negative externalities
 Forward and Backward linkages: A forward linkage is created when investment
in a particular project encourages investment in subsequent stages of production.
Backward linkage is created when a project encourages investment in facilities
that enable the project to succeed. For example, backward linkages can be food,
security, cloth, capital machinery and equipment, examples of forward linkages
are once a food processing industry is established, it results in increasing the
demand of raw materials provided by the agriculture sector.
 Cost benefit analysis and rations: Cost benefit analysis is the process used to
measure the benefits of a decision minus the costs associated with that decision.
Rations is the fixed amount of the commodity officially allowed to each person
during a time of shortage.

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d. Please assist BICO to prepare brief (2/3) pages EOI, Technical Proposal and Financial
Proposal.
We hereby confirm that BICO-UDSM intends to participate as a full partner in the
implementation of the above-mentioned task.
As this task aims to contribute to in making decisions based on the technical feasibility, financial
viability, risks association and actions required for risks mitigation of the project. Further details of
our intention are provided in the annex.
Introduction:
The intention of this guideline is to enable engineers in research and technical development to
work on techno-economic assessments in a consistent and transparent way.
Techno-economic assessment TEA in principle is a cost-benefit comparison using different
methods. These assessments are used for tasks such as:
• Evaluate the economic feasibility of a specific project

• Investigate cash flows (e.g. financing problems) over the lifetime

• Evaluate the likelihood of different technology scales and applications.

• Compare the economic quality of different technology applications providing the same
Service
The assessment should base on;
– Whether the technology utilizes local raw materials?
– Whether the technology utilizes local man power?
– Whether the services and goods to be produced will cater to the basic
needs?
– Whether the technology protects the ecological balance?
– Whether the technology harmonious with social and cultural conditions?

The influence of taxation is not discussed in the guideline. As a simple rule taxes should be
included in cost and benefit assessment, if they are not refundable (e.g. transport fuel taxes).
Value added tax (VAT) usually is refunded (except for private use) and so should not be included
in TEA
1. Cost assessment
For TEA cost are separated in investment related cost and in operation related cost, means that
Investment outlays and operations cost
Investment related cost
Technical cost of the Paper bottles in relation to present technology of existing
bottle, the following will be assessing. The choice of technology (Technical Assessment) is
influenced by:
• Principal inputs Proximity to Raw material and Man power availability
• Proximity to markets
• Capacity (plant) or size of the project
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 • Investment outlays and operations cost
• The use by other units
• Latest development
• Easy of adoption
• Facility location and site selection
• Public utilities (Infrastructure development)
• Government policies
• Environmental aspects and Safety
• Procurement (e.g. of plants and Machinery)
Investment related cost comprise:
• Initial investment including planning and consulting cost
• Administration and insurance cost (annual)
• Cost for plant (annual).
Investment related costs are independent of operation and operation intensity. They will arise
also from not operating plants.
1.1.1 Investment including planning and consulting cost
The investment is the cost to the investor for project development, financing, the construction,
and for getting the plant into regular operation (commissioning, operation permits and test
operation phase). Also, the cost for establishing the infrastructure for the project (area purchase,
traffic areas, building, electrical connection to grid etc.) is included, if paid as initial investment.
Cost for planning and consulting is a significant share (~5%) of the investment, even if a mature
and well-known technology is used. If the technology is new and unknown, the cost for
planning and consulting could be higher (up to 20 %) especially if the plant size is small (as
usually in demonstration and pilot plants)
.1.2 Administration and insurance cost
Cost for administration and insurance of the plant is an annual cost. Usually it is assessed as a
share of the investment sum and depending on the size and the complexity assumed to be 1 to
2 % of the investment.
1.1.3 Periodical cost for infrastructure, location, building.
Cost for infrastructure, location, building etc. are hugely variable, depending on the specific
situation of the project to be assessed. The comprises all costs that are not investment and are to
be paid on a periodical basis.
1.2 Operation related cost
Operation related cost comprise
• Fuel cost
• Labour cost
• Maintenance cost
1.3 General remarks on cost assessment
The first is the difficulty to produce realistic data for the cost components. The biggest obstacle
is the assessment of the investment cost, but in principle it concerns all cost components.

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The second problem in cost assessment is taking into account contingencies (not expected cost).
Especially assessing new technologies as a broad tendency cost are underestimated in TEA, even
if the cost assessment is done very carefully and based on reliable data.

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2. Benefit assessment
• Cost – Benefit analysis and Cost-Effective analysis
Both CBA and CEA examine the costs of producing net outcomes
CBA really only makes sense when applied to assessing the net value of achieving social
outcomes. In other words, CBA measures the full (social) costs of the full (social) benefits
resulting from an intervention
CEA measures the financial cost of producing a specific net outcome
In the case of bioenergy plants TEA, the benefit will be the earnings from selling the
product(s) produced. In some cases, also the selling of carbon credits or emission certificates
could be an additional benefit.
3. Risk
assessment.
Risk assessment is methodically not incorporated in TEA. But risk have to be considered
before doing a TEA, otherwise the results produced would be probably without any relevance.
Risk analysis is dealing with several criteria (examples):
 Financial risk
 Environmental risk
 Technical risk
 Social risk.
 Net present value (discounted
4. TEA method.
Several TEA methods are discussed in this section:
• Static cost benefit assessment
• Annuity method
• Net cash flow table

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 Question 4
a) What do you understand by an EIA?
Environmental impact assessment (EIA) can be defined as “the systematic examination of
unintended consequences of a development project or program, with the view to reduce or
mitigate negative impacts and maximize on positive ones.
The purpose of EIA is to ensure the protection and conservation of the environment and natural
resources including human health aspects against uncontrolled development. The long-term
objective is to ensure a sustainable economic development that meets present needs without
compromising future generation’s ability to meet their own needs. EIA is an important tool in
the integrating environmental management approach.
Environment impact assessment seeks to: -
i. Ensuring that the developmental options under consideration are environmentally,
socially and economically sound and sustainable.
ii. Ensuring that any possibly adverse environmental consequences are recognized early in
the project cycle and are taken into account in the project design.
iii. Identify ways to improve projects environmentally and minimize or compensate
adverse impacts.

b) Outline the process of undertaking EIA in Tanzania?

The process of undertaking EIA in Tanzania include: -
1) Screening: - to decide whether an EIA is required and focus resources on projects most
likely to have significant impacts, those where impacts are uncertain and those where
environmental management inputs is likely to be required. Official EIA guidelines
usually contain lists or schedules specifying which developments require an EIA
2) Consideration of possible alternatives: should be undertaken before a choice is made.
Some projects can be site specific (e.g. in mining, extraction can only occur were a
mineral is sited). In such cases the EIA might focus more on measures such as scale,
mitigating measures and traffic management. Projects promoted by public sector
agencies are more likely to consider alternative sites or routes for development than
private sector initiatives where the early need to acquire options or purchase land
strongly influences development location.
3) Preliminary assessment: - where screening suggests further assessment is needed or if
there is uncertainty about the nature of potential impacts. Uses rapid assessment
techniques, but provides sufficient detail to identify key impacts, their magnitude and
significance, and evaluate their importance for decision-making.
4) Scoping: - a ‘narrowing’ process usually undertaken by an ‘assessment team’ to identify
the key issues of concern at an early stage in the planning process and guide the
development of terms of reference for the EIA. It aids site selection, identifies possible
alternatives, and avoids delays due to having to assess previously unidentified possible
impacts. Scoping should involve all interested parties such as the proponent and planning
or environmental agencies and members of the public. The results determine the scope,
depth and terms of reference to be addressed within an Environmental Impact Statement.
Once the site for development has been selected, the number of issues usually decreases
and attention to detail increases.

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5) Main EIA study: - building on and deepening the preceding steps to predict the
extent and magnitude of impacts and determine their significance. A variety of
methods can be used including: checklists, questionnaires, matrices, overlays,
networks, models and simulations. The study should incorporate consideration of
mitigating measures - reviewing the action proposed to prevent, avoid or
minimize actual or potential significant adverse effects of a project
An Environmental Impact Statement (EIS) is a comprehensive document that
reports the findings of the EIA and now often required by law before a new
project can proceed. A typical EIS, usually prepared by the project on behalf of
the proponent (usually by consultants), focuses on the issues most relevant to
decision-making.
6) Review – to assess the adequacy of the EIA to decision-making and consider its
implications for project implementation (in some countries, such review is a
formal and independent process)
7) Monitoring of project implementation and operation also including
decommissioning, and eventually an audit of the project after its complete\

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Table below showing the deliverables, key stakeholders, challenges and how to address

Step Deliverable Key stakeholders& Key approval Key challenges Addressing challenges
Registration Application Form Key stakeholder: Project Proponent, Bureaucracy can lead to delay in Setting policies and strategies
Government authorities. project registration to smooth out the registration
The proponent is required to register his period
activity by submitting dully filled in special
application
Key Approval: NEMC to assess whether or
not EIA is required.
Screening Preliminary EIA, Key stakeholder: Government. It is affected by the registration Combination of registration
No EIA, Full EIA NEMC performs a check for whether an EIA delay since its starts after process and screening can save
required and is required by considering sensitivity, registration time required for screening
Project Rejected location, technology, land use and process to begin earlier
environment impacts
Key Approval: NEMC submits a screening
report to the proponent
Impact Environmental Key stakeholder: Experts, Project Secondary Impacts are not Deep understanding of
assessment Impact Statement Proponent and Affected people. The identified hence some impacts specified project is necessary
proponent prepares a study to identify likely are left out in the study to undertake the study
impacts, assess and evaluate their severity effectively
and magnitude and proposed mitigation
measures to minimize potential negative
impacts and enhance positive benefits.
Key Approval: Public and Government
Authority
Review Public hearing Key stakeholder: Public, Affected people, Language barrier in Tanzania Reformation of EIA
Government Authority (NEMC). where EIS reports are written in regulations to require Swahili
Once the proponent has submitted an EIA English thus rendering it hard to version of EIS
report (or EIS), the Technical Review locals to understand
Committee (TRC) will undertake a review
process.
Key Approval: Technical Review
Committee, Affected people and public
Recommendation Approved EIS or Key stakeholder: Government Authority A recommendation might Recommendations should put
s Not Approved (NEMC). NEMC sites out areas needing require a proponent to move into account the cost
improvement and adjustment of EIS back to a certain step which will
Key Approval: Proponent incur unforeseen costs
Permit Issued Environmental Key stakeholder: Proponent and Delay of permit as per Allowing permit issue from
Permit Government Authority (NEMC). regulations require the minister several members in the
After approval a permit from the Minister. to review the EIS and approve minister’s office
Key Approval: Minister of Environment
Implementation Environmental Key stakeholder: Proponent. Conducted The proponent might deviate Monitoring should go side by
Report according to the terms and conditions of from original plan and cause side with implementation
approval guided by the environmental adverse effects for a time until
management plans. discovered during monitoring
Key Approval: Proponent and EIA experts
Monitoring Environmental Key stakeholder: Proponent, Local Experts for monitoring are Continuous refining of
Report Representative, Government Authority required with a well-defined monitoring guide lines to
(NEMC). schedule for a specific project update situations
Monitoring include the verification of
impacts, adherence to approve plans,
 mitigation measures and general compliance
of terms and conditions.
Key Approval: Proponent EIA experts
Auditing Environmental Key stakeholder: Government Authority Not so helpful to compounding Regular audits based on TOR
Audit Report (NEMC), Proponent, Local Representative impacts as they slowly increase can minimize this problem
Key Approval: Government Authority over time
(NEMC).
Decommission Decommissioning Key stakeholder: Proponent. The Some projects require extra Clear guidelines to identify the
Report decommissioning report shall be prepared by focus during this stage as they projects which are more harm
the proponent that indicates his commitment pose more harm full at decommissioning
into rehabilitating the site and submitted to
NEMC.
Key Approval: Government Authority
(NEMC).
 c) Using an example of a familiar big project in Tanzania, discuss how and whether its
EIA was properly and comprehensively done?
In the year 2017, an EIA was conducted for the project of Standard Gauge conducted
by the Tanzania Railways Corporation. This project is conducted in phases through
some major regions within the country. Its main aim is to improve the transport
sector.
Following the EIA conducted the benefits / positive impacts and opportunities of
conducting the project outweigh the challenges and effects of the surrounding
environment henceforth the project is to be implemented. Mitigation procedures
were adopted to counterpart the challenges.
Some of the Potential Positive impacts
i. Increased capacity of the central railway by ferrying more freight and passengers
ii. Improved operation and financial returns
iii. Improved connectivity within and outside the borders-EAC and the rest of the African
continent resulting into increased trade
iv. Economic growth will be stimulated through increased business activities. Local
businesses will grow due to increased demand triggered by new settlers.
v. Ease access to markets. The upgraded railway will ease access to markets thus
increasing supply of commodities and consequently lowering prices of industrial
goods.
vi. Employment Opportunities both direct and indirect
vii. Increased money circulation will result into increased income consequently better
standard of living of people in the project area.
viii. Transport costs will be lowered and there will be shorter travel times between the
town and some village centres.

Some of the negative impacts along with their mitigation

i. Increased HIV/AIDS and other sexual related diseases:
Construction and operation of the railway will bring many people in the project areas
that will increase personal interactions that can lead to increased STDs and other diseases
like HIV/AIDS.
Mitigation Measures
 Since construction camps will attract many job seekers and trade mongers, the
contractor shall enforce a code of conduct in the camps to encourage respect for the
local community and to maintain cleanliness of the camp at all times.
 The contractor shall deploy locally available labour to reduce risk of spreading of
communicable diseases (especially STD).
ii. Land take
Land needed for the project will be taken from the current owners. Land being the major
means of production implies that loss of the same would have a negative impact on
household incomes and livelihood. Vulnerable groups such as single women (widows,
divorced) living below poverty line are of particular concern. A total of 3.7 MHa of land

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 is needed, and almost all is under RAHCO ownership. However, additional land required
will necessitate compulsory acquisition.
Mitigation Measures
 RAHCO shall develop and implement a Resettlement Action Plan which includes the
valuation and compensation of the affected persons and provision alternative means
of land to affected persons.
iii. Reduced safety:
Fast train speed can be a new experience to many people residing along the existing
railway line. This situation can be a source of unwanted accidents.
Mitigation Measures
 The SGR shall be fenced
 The railway design shall take account of safety concerns especially at human
habitation crossings e.g. installation of adequate signages.
 Awareness seminars shall be conducted during the construction and operation phases
 Traffic management plan shall be incorporated in the designs to include for example
details of signs, markings, intersection layouts, access restrictions, crossings,
footpaths etc.
iv. Loss of biodiversity
Loss of biodiversity will be experienced during the clearing for railway embankment
formation. Huge biomass will be cleared that may include important and rare species
Mitigation Measures
 Close supervision of earthworks shall be observed in order to confine land clearance
within the construction corridor. railway
 Topsoil shall be stockpiled and used for reinstating flora along the railway. It is
assumed that displaced fauna will return once the work is over, or seek another
habitat locally.
v. Land degradation and increased erosion:
Stone earthworks, quarrying and establishment of borrow pits will cause land
degradation and promote soil erosion.
Mitigation Measures
 Unnecessary ground clearance and sensitive re-alignments shall be avoided. o Lined
drainage channels at sensitive terrains shall be provided to control speed and volumes
of storm-water. The discharge points must be carefully chosen to avoid erosion of
arable land and creation of gullies.
 Proper grading to promote sheet flow and minimize flow concentration on
unconsolidated soil. o Directing flow to properly designated channels.
vi. Loss of business to truck owners and drivers
Most of the freight currently being ferried by road will be diverted to SGR once it starts
operation. That will be a catastrophe to truck owners and drivers. They will lose business
and employment.
Mitigation
 Create awareness to affected groups and advise them to prepare themselves for
alternative jobs or businesses

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 d) Is the EIA area one of the promising areas of consultancy in Tanzania? Justify your
answer.
EIA is indeed a promising area of consultancy in Tanzania. This can be justified by
the involvement of different experts during the EIA process. The involvement of
experts shows an opportunity for the need of consultation services where the
consultants can originate from the field in which the project is concerned and
provide useful information from the knowledge they possess to help in conducting
EIA.
The necessity of experts can’t be avoided since many projects requiring EIA don’t
have fully capability and legal certification to perform the study.
This opportunity can be further shown as several projects use consultants’ firms as
source of expert input.
Question 5: Working with Tables, Graphics, Infographics and Data Analytics
a. Discuss why the above captioned subject is growing in importance for consultant
These are visuals solutions with high technology to execute data quality, data auditing
plans, evaluating and presenting on findings on consulting management. They are
growing in importance for consultants due to the following significances;
 Assist consultants to emphasis
 Gives direct attention
 Illustrate concepts
 Provide background content
 Convey information more quickly than when using text
 Make complex information simple
 Enhance online teaching and learning
 Enhance communication with some disabled groups, particularly those with learning
difficulties or cognitive impairments
 Measure how much of your mission statement is accomplished.
 Encourages Smart Decision-Making.
 Provides Clearer Insights Through Data Visualization.
 Keep You Updated.
 Offer Efficiency
b. How consultants use tables, graphics, and infographics and data analytics in their
consulting services;
 Summarizing the data
 Visualization/Displaying data
 Analysing data
 Preparation of Reports
 Information Communication
 Assisting in Interpretation

c. How to use the Tableau software in the application of tables, graphics, infographics
and data analytics in consulting deliverables;

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Data Visualization in Tableau.
Data Visualization is representing Data in pictorial forma as charts, diagram etc.
Tableau allow visual access to huge amount of data in easy digestible visuals,
Tableau is well assigned, data graphics are usually the simplest and at the same time, the
most powerful.

Data analysis in Tableau

Use of powerful ‘big’ data platform for large datasets as meta/ secondary data in analyzing
consulting activities in organizations to manage data in a fast way to discover the share
insights that can change business.
Why we use Tableau to visualize and analysis
 Flexibility
 Institutive platform
 Interactive visual
 Quickly production time.
d. The role and use of surveys by engineering consultants. Use a practical example
and illustrate how to implement a survey properly in the country - explain all key
aspects like establishing your survey questions and sampling design.
The use and role of survey by engineering consultants include the following;
 Gather information not available from other sources
 Used to find out attitudes and reactions, to measure client satisfaction.
 Before any project is implemented, Engineering Consultants carry out various
surveys to gather data regarding the subject matter of interest
 Identification of Problem / Topic of interest. For example, Congestion at Mwenge
Intersection
 Determining the participant in survey (Population & Sampling) for example road
users
 Deciding on what type of survey to use
 Deciding on Survey Questions and layout
 Distributing the survey
 Analysing the response
 Writing up result

e. How to conduct a rapid survey using the Monkey Survey online platform
Monkey Survey is an online survey platform that gather opinions and transform them
into People Powered Data. Easily create surveys, quizzes, and polls for any audience.
Gather feedback via weblink, email, mobile chat, social media, and more.
Procedures on conducting online survey through Monkey Survey:
 Decide on your research goals. Before you can start your research, you will need to
form a clear picture in your mind of the expected outcome. ...
 Create a list of questions
 Invite the participants
 Gather your responses

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  Analyse the results
 Write a report.

f. The value of the Internet-Aided Consultancy tools.

 Internet-Aided Consultancy tools play a big part to support consultant by providing
proper tools to carry out their tasks
 Allows for easy interaction between experts, clients and other project participants
from all over the world including Multinational clients
 It saves time and money by cutting travelling and venue expenses (economical) where
possible.
 Allows for instant responses to queries, comments
 Carrying out tasks, planning Coordinating comments on Designing and discussions.
 Tools such as drop box can act as a data storage device and allows save sharing of
large data files
 Eases and allows fast and reliable business marketing
6.1 Procedures and Requirements of establishing engineering consultancy office in
Tanzania
Consulting engineer is skilled professional in engineering knowledge who offers help in
engineering business without necessary implementing the solution rendered by him or her.
What they do
The most important role of engineer consultant is to bring in people with a particular set of
engineering skills. The client requires an engineering consultant to give him solutions on
achieving organization purposes and objectives, solving engineering management and
business problems, identifying and seizing new opportunities and implementing engineering
changes.

6.1.1 What it takes to be certified

In Tanzania to get a practicing licence, you must be certified by a relevant sector
professional regulatory Board for Engineers and Engineering firms the Engineers
Registration Board (ERB) is concerned. After certification or registration, then you
have to pay for your business licence before starting to practice.
6.1.2 How to be a competent engineer consultant
 Intellectual abilities
 Ability to understand and work with people
 Has ability to communicate and persuade
 Emotionally Mature
 Personal drive and initiative
 Ethics and Integrity.
 Enhance the professional image
 Enhancing your Reputation

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  Professional ethics
 Developing your personal Code of Ethics

6.2 Source of Consultancy Projects for Tanzanian Engineering consultancy and the
strategies to access them.
6.2.1 Government
Since the inaction of the procurement Act, the Government had been applying a competitive
method of procuring of goods, works and consultancy service where procurement entities
invite various consultants regardless of the Nationality to make their applications for the job
in question. With this establishment of the method of competitive bidding the Government
(ministries) had become a good source of projects.
6.2.2 Public institutions
Including all Government parastatals, Agencies, Departments, Regional and District
Authority to pursue the Procurement Act.
6.2.3 Individual/Private Firms
Private firms had also been convinced in the application of competitive method of
procurement of consultancy service. They sometime pursue the whole process of
procurement of goods, work and services with reference to the public procurement Act
6.2.4 Individuals
Individuals also are the source of consultancy projects e.g. private clients for their
development projects, houses, offices.
In order to obtain a consultant works in Government, the Government Agencies and other
procuring entities the following steps are involved:
i. Expression of Interest
ii. Short list of firms.
iii. Request for proposal
iv. Evaluation of technical and financial proposal
v. Award of contract

6.3 Procedures and Requirements of establishing engineering consultancy office in

Tanzania
6.1.3 Procedures
6.1.3.1 Choose your legal structure.

The three most common forms of business are; Sole proprietorship, Partnership and
Corporations.

6.1.3.2 Prepare your business plan.

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This will entail the following; your marketing strategies and who will be your clientele;
Operational Issues and Financing and Accounting Issues

6.3.1.3 Create your Office.

If you are starting this business on a shoestring budget, you can start-out by working from
your home.

6.3.1.4 Certification and Licensing

Depending upon your profession, you may need special certification or a special license
before you can begin operating as a consultant. Example in our country we have consultancy
registration board so before starting the consulting practice in our country you need to be
registered with this board.
6.3.1.5 Proper Qualification/ Skills
Consultants need to be skilled at problem-solving, communication, building relationships,
time management, negotiating skills, financial management and bill collection, coaching and
developing staff, contract wording and administration, and management skills such as
scheduling and delegating.
6.3.1.6 Business, Organisational and Financial Considerations

6.3.1.7 Charging

In other areas of consulting, e.g. consulting architects, there is already established rates that
provide a guideline for charging consultancy service. One example is the Fee structure
established by Architects and Quantity Surveyors Registration Board by laws 2000 (3).

6.3.2 Requirements
6.3.2.1 Registration
In Tanzania the Business Registration and Licensing Agency (BRELA), under the Ministry
of Trade and Industries, is responsible for registration of business names. For sole
proprietorship, one needs to fill forms to get registered. For a partnership, you need to have a
binding Memorandum of Understanding (MoU) and fill the necessary forms before being
registered. It is however recommended to register a professional service like consultancy, as
a company with limited liability. This creates confidence to prospective customers because of
its legal set up. To register a Limited Company, one needs to have a Memorandum and
Articles of Association as per Chapter 212 (Company Ordinance), of the laws of Tanzania.
6.3.2.2 Certification and Licensing
In Tanzania to get a practicing licence, you must be certified by a relevant sector professional
regulatory Board the Engineers Registration Board (ERB) for Engineers and Engineering
firms, the Architects and Quantity Surveyors Registration Board (AQRB) for Architects and
QSs etc. Every regulator has its own minimum qualifying requirements. After registration,
then you have to pay for your business licence before starting to practice.
6.3.2.3 Legal Liability and Professional Responsibility

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Professionals have to be insured against losses occasioned to their clients in the cause of
performing their contractual duties. This is known as professional indemnity.
6.3.2.4 Professional Ethics and Conduct
As a practicing consultant, you will need to know the ethical and conduct requirements of
your specific practice for a sustainable future.

6.4 Strategies in managing potential risks on moving internationally

i. Be creative and innovative
ii. Risk orientated
iii. Proper leadership skills
iv. Good human relations and positive attitudes
v. Perseverance and committed
vi. Proper planning (system management plan)
vii. Be market oriented
viii. High quality services
ix. Financial insights
x. Knowledge and skills

6.5 Insiders views on setting up and running a consultancy practise to take a leading
engineering consultant in the country.
To be and setting up engineering consultant, one needs to:
 Be an expert (or at least appear to be an expert)
 Know how and when to listen to your clients
 Be perceptive yet diplomatic
 Know how to make your business thrive.

A variety of key skills have to be developed in a person who is an expert in order to be a

successful consultant. These include: -
 Preparing effective reports
 Communicating effectively
 holding clients’ meetings
 Giving presentations
 Organizing your time
 Using the latest technology to your advantage.

6.6 From client’s view, ten important measures to take to ensure engineering project
will be carried out to successful conclusion
I. Ensure consultant provide service performance (user’s satisfaction): indicators
used are design progress and question solution proposal
II. Ensure consultant’s promote owner’s satisfaction: indicators to be used are
owner’s satisfaction and coordination by the owner.
III. Ensure consultant reach budget: by the accuracy of quantity calculations and
construction cost estimate of the consultant.

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 IV. Ensure if consultant create result efficiency: through consultancy’s value
engineering
V. Ensure consultant practise project management practises: though evaluating
consultant’s project management methods and its staff organisation structure
VI. Ensure consultant strengthen document integration through document review and
reply, document management and accuracy of design document.
VII. Ensure consultant reach the design quality through quality assurance, and impact
of environment and ecosystem.
VIII. Evaluating consultant’s completeness of design documents
IX. Ensure consultant promote human resource effectiveness.
X. Ensure consultant promote member’s professional skills.

7. 1 Twenty provisions in PPA that are crucial for engineering consultants in applying
and executing work
1. Expression of Interest (EOI)
Expression of Interest means the process whereby the Consultants are invited to submit
details of their resources and capabilities so that the Employer can determine which
Consultants meet minimum criteria necessary for being considered for competitive selection
of Consultant.

2. Selection Procedure to Choose Consultants

The procuring entity shall invite proposals from five to ten qualified and experienced
consultants, and through a suitable selection procedure choose the consultant most qualified
for the assignment.

3. Terms of Reference
Terms of reference (TOR) is an initial statement of the work to be done by a Consultant
There are three approaches used in the preparation of initial terms of reference according to
different categories of clients;
Preparation of Initial Terms of Reference

1) Terms of reference prepared by the Client

The client takes trouble to do own problem identification and diagnosis before talking to any
consultant, and when ready, calls for proposals from consultants.

2) Terms of reference prepared by client using consultant

The client engages a consultant to carry out preliminary problem diagnosis and uses the
findings of this consultant to draft the terms of reference that he or she uses for initiating a
formal selection procedure to designate a consultant who will execute the assignment.

3) Terms of reference prepared by a consultant

A third category of clients, does not use any formal terms of reference in preparing an
assignment and choosing consultant, but assigns the definition of the work to the consulting
contract.

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Why ToR; The reason behind these different practices is;

1) If Terms of Reference (ToR) are used, it reflects that

a) The client’s policy requires much analytical and planning work before considering using
a consultant; often this will be the case of assignments dealing with relatively narrow and
well- defined technical issues.
b) The client (usually in the public sector) is obliged by existing regulations to draft formal
terms of reference, and obtain their approval, as an initial step in a formal consultant
selection procedure.
2) If Terms of Reference are not used it reflects that;
a) The client (usually in the private sector) prefers to select a consultant thoroughly, do
preliminary problem diagnosis and define the scope of the assignment jointly with him or
her. The client then confirms the choice on the basis of a proposal (offer) received from
the consultants, without using the intermediate stage of drafting terms of reference.

Structure of TOR
Basically, the preliminary Terms of Reference to be issued to consultants as an initial
document for proposal consists of;

1) Problem description
2) Objectives and expected results of the assignment (what is to be achieved, final product)
3) Background and supporting information (on client organization, other related projects and
consultancies, past efforts to solve problems etc)
4) Budget estimates or resource limit
5) Time table (starting and completion dates, key stages and control dates)
6) Interim and final reporting (dates, from to whom, etc)
7) Inputs to be provided by the client (further information and documentation, staff time,
secretarial support, transport etc)
8) Exclusions from the assignment (what will not be its object)
9) Constraints and other factors likely to affect the project
10) Profile and competencies of eligible consultants
11) Contact persons and addresses.

4. Request for Proposal

Under normal practice, only those consultants who have been pre-qualified are invited by the
client to give their proposals
Letter of Invitation: Request for Proposal
After the client has prepared the Terms of Reference for the particular assignment or project,
the next step is to prepare letter of Invitation commonly known as Request for Proposal and
give the same to pre-qualified consultants so as to have their offer (Proposal) on the
assignment.
The Request for Proposal (RFP) includes
1) This letter of Invitation: Request for Proposal
2) Information to consultants

Page 21
 3) Technical Proposal- Standard Form
4) Financial Proposal- Standard Form
5) Terms of Reference
6) Standard Form of Contract
Information to Consultants
Information to consultants embraces the following;
a) The name of the client
b) The method of selection- e.g. Quality and cost-based selection- the edition of the
Guidelines is selection and employment of Consultants in Tanzania. Procedure set out in
the Public Procurement Act No. 3 of 2001 and the Public Procurement (selection and
employment of Consultants) Regulation 2001.
c) Technical and Financial Proposals-The name, objectives and description of the
assignment tasks are;
d) Name- State the consultancy service and objectives as well as description of the
assignment by referring to the Terms of Reference contained in the relevant section of the
Request for Proposal.
e) Statement indicating whether the assignment is phased or not
f) Statement whether a pre- proposal meeting will be held or not
g) Names and addresses and telephone numbers of the client)
Inputs by the Client
The client will provide the following inputs;
i. Access to documents
ii. Familiarization
iii. Period for specified clarification before the submission date
iv. Statement of the language in which the proposal is to be submitted
v. Statement on whether association within short listed consulting firms is allowed or not
vi. Statement of the number of professional staff- months required for the assignment, by
giving break down of professional man months for each professional
vii. Statement of the minimum required experience of proposed professional staff
viii. Statement on the medium of communication
ix. Taxes; Payment of taxes if any is the responsibility of the consultant
x. Consultants to state local costs in the specified currency
xi. Statement on the validity of the proposal after the submission date
xii. Statement on how the consultant is to submit the proposal
xiii. Statement on the Proposal submission address (Physical and Postal addresses),
xiv. Statement on the evaluation criteria and weighting given to each
a) Specific experience of the consultant related to the assignment Points 10
b) Adequacy of the Proposal work plan and Methodology in responding to the Terms of
Reference 30
c) Qualifications and competence of the key staff for the assignment (60)
 Team Leader 20
 Other staff 40
d) The number of points to be given under each evaluation, sub criteria for qualifications
of staff is;

Page 22
  General qualifications 30
 Adequacy for Project; 60
 Experience in region and language 10
 Total points 100
The minimum technical score to pass is 70 points
1) Statement on the single currency for price conversion and the source of official selling
rates and the date of exchange rate
2) Statement on the address for negotiations and the date the assignment is to commence.

Writing the Proposal

The consultant uses the Terms of Reference (i.e. the initial statement of the work to be
undertaken by a consultant) as a basis for making the proposal. The client who had initially
prepared the terms of reference himself may give the terms of reference to the consultant.
In order to write a sound proposal the consultant has to visit the area of assessment or project
site and acquaint himself or herself with the actual condition of the assignment/project area in
order to update the given terms of reference and finally come up with the best proposal
amongst others.

Technical Proposal
A proposal essentially exists in two parts namely Technical proposal and financial proposal
Technical Proposal contains the following parts;
Technical Proposal submission form
This is a standard form issued by the client to the consultant whereby the consultant has to
address to the client, his willingness to offer to provide consulting services (by mentioning
the assignment) in accordance with client’s request for proposal and consultant’s proposal.
The consultant’s background section (Firm’s reference)
This section describes the experience and competence of the consulting organization as it
relates to the needs of the particular client. These may be a general subsection with standard
information given to all clients (including a section on ethical standards and professional
practice adhered to by the consultant), and a specific subsection referring to similar work
done for a specified period of time and providing evidence that the consultant will be the
right partner to choose. Reference concerning former clients will be used only with this
client’s prior agreement. The firm’s reference will generally consist of the following;
1) Assignment name
2) Country in which the project has been executed
3) Location within the country
4) Professional staff provided by the consulting firm
5) Name of client
6) Number of staff provided in the project
7) Start and completion date
8) Name of associated consultants if any
9) Number of months of professional staff provided by associated consultants

Page 23
 10) Name of senior staff (Project Director/Coordinator, Team leader) involved and functions
performed
11) Narrative description of Project
12) Description of actual services provided by the staff
Comments and suggestions of consultants
After acquainting himself or herself with the assignment by paying a visit to the physical
place of assignment, and a scrutiny to the documents given to the consultant by the client, the
consultant is to comment and suggest on the same.
Methodology and work plan
Based on the Terms of Reference, documents and the physical visit to the assignment area,
the consultant is to give description of the methodology and work plan for performing the
assignment should he or she wins the contract.
Team Composition and task assignments (Staffing section)
The staffing section gives the names and profiles of the consultant’s staff that will be
involved in the assignment. They also include the senior consultants (partners, project
managers) who will be responsible for guiding and supervising the team working at the
client’s organization or project area depending upon the type of assignment) and the
supporting staff. The task and position of each staff in the team has to be clearly stated.
As a rule the proposal guarantees the availability of particular persons for a limited period of
time.

If the client delays the response or decides to postpone the assignment, he knows that he will
have to accept other consultants of a comparable profile or renegotiate the assignment.

Financial Proposal
The Financial and other terms section indicates the cost of services, provisions for cost
increases and contingencies, and the schedule and other indications for paying fees and
reimbursing expenses and settling all commitments. If the client applies a selection
procedure, the financial section may have to be submitted separately.
The consultant may have a standard description of his or her terms of contract or business and
attach it to the proposal. Conversely, some clients insist on using their own terms and the
consultant may have to comply with these if he or she does not want to lose the contract.
The Financial Proposal (standard forms) consists the following;
Financial Proposal submission form
In this form the consultant addresses the client his or her offer to provide the consulting
services for the assignment (name to be mentioned) in accordance with client’s request for
proposal and the consultant proposal (Technical and Financial Proposals) stating the amount
in words and figures
Summary of costs
Summary of costs includes the summary of subtotal and local taxes which give the Total
Amount of Financial Proposal in the specified currency as provided in the information to the
bidding consultants.
Break down of Price per Activity

Page 24
Under this section, the breakdown of every activity in the assignment is given and includes
price component, remuneration, reimbursable and miscellaneous expenses
Break down of Remuneration per Activity
Under this section, the breakdown of remuneration per activity done by the staff detailing his
or her position and input and the respective remuneration are given. This includes the regular
staff, local staff, and consultants
Reimbursable per Activity
Under this section all-reimbursable per activity are summed up together to give total
reimbursable for all activities. They may include the following depending upon the nature of
the assignment; miscellaneous travel expenses, international flights, subsistence allowance,
local transportation costs, office rent/ accommodation/ clerical assistance
Miscellaneous Expenses
These include communication costs (telephones, telegrams telex), drafting and reproduction
of reports, equipment- vehicles, computers etc, and soft wares
5.0 Evaluation and Award
Finally the proposal (Technical and Financial parts) is submitted to the client for decision and
approval. Depending upon the type of client the proposal may be handed over to the client in
a meeting, which starts with a short oral (and visual) of the reports summary. The consultant
is ready to answer questions about the start of the proposed assignment. If the client is keen
and ready to begin there are obvious advantages in doing so while the enthusiasm is there and
the contacts established are fresh in people’s minds. But an early date may not be easy to
meet because of existing commitments
Client’s reaction
A public institution client is normally bound by rules, which specify a minimum number of
tenders and internal evaluation procedures before awarding a contract. But a private sector
client may also use a selection procedure based on the evaluation of alternative proposals, in
particular for large and complex assignments. In such cases it may take several weeks or
months before the client will be in a position to decide.
Evaluation of Proposals

It is the responsibility of the client to inform the consultant the criteria, which will be used to
evaluate the proposal, and the relative weights to be given to various aspects of the proposal.
For example, the World Bank recommends its borrowers to give a weight of 10-20 percent to
the consulting firm’s general experience, 25-40 percent to the work plan, and 40-60 percent
to key personnel proposed for the assignment. Thus even a highly competent consulting firm
stands little chance in a selection procedure if it does not propose consultants of the right
calibre. Also the names of competitors are given in the original invitation to submitting
proposals.
Upon receipt of Proposals from the consultants, the client organizes to open them
immediately. Technical proposals are normally opened first before the presence of
consultants or their representatives. They are evaluated in accordance with the evaluation
criteria mentioned in the information to consultant during the preparation of Request for
Proposal.

Page 25
Each point or section in the Technical proposal is critically evaluated and given weight. The
technical proposals that score high (above the specified minimum technical score) mentioned
in the criteria for evaluation are considered in the second phase of evaluation.
In technical evaluation, emphasis is put on how the consultant has attempted to put up his or
her proposal to meet or exceed the expectation of the client in solving the problem, as
mentioned in the Terms of reference. Such areas include;
1) Understanding the project and the Terms of Reference (TOR)
2) Site inspection/ visit
3) Methodology and Work plan
4) Qualification of key personnel
5) Language capability
The above-mentioned areas are then given weights and scores evaluated.
Financial Evaluation
This is the second phase of Proposal evaluation. It involves the financial proposals of
consultants whose technical proposals have been successful (e.g. scored above the set
qualifying score points in the technical proposal
These financial proposals are opened and analysed critically, using the specified
methodology. At the end of evaluation, which considered the Financial as well as the
Technical proposals, the best combination of the two is selected.
An illustrative example on Evaluation of Proposals
The Problem
The Government of the United Republic of Tanzania has received Grant of the Basket Fund
for the Government of Denmark, Sweden, Canada, the Netherlands, Finland and Norway
towards the cost of the Legal sector Reform Programme; Quick start project and intends to
apply a portion of this grant to eligible payments under the contract.
Through its Judiciary Department, five short listed consultants were invited to put up their
proposals for the provision of consultancy services for the Feasibility study and pre contract
service for the alteration of three courts in Mbeya, Mtwara and Dar es Salaam.
To facilitate this exercise, the Terms of Reference and other documents were given to these
five consultants and the submission date for these proposals was March 31, 2003.
These proposals (Technical proposals) were opened on the same day in the presence of all
consultants.
As an independent consultant, you have been appointed by the client (The Judiciary
Department) to be one of the members forming the evaluation team, explain how you are
going to evaluate the proposals up to the final selection of the best proposal.
The Solution
Since this a Government project, Public Procurement Procedures act of July 2001 and the
World Bank recommendations on weights to be assigned to various components forming the
Technical proposals for the selection of consultants will be used
Technical Evaluation
The five technical proposals were analysed critically and weights given to various items
forming the Technical proposal and score for each consultant was calculated and the results
tabulated as under;

Page 26
 S/N Criteria U V W X Y
1 Professional reputation of the consultant, 10 8.7 6.6 5 4 4.95
previous performance (general experience)
2 Experience of the consultant in the same field 10 8 7 7.5 6 6.5
as that of the assignment on similar projects

3 Knowledge of the project environment and 5 4.2 4.1 1.9 1.5 1.6
the implication for the project

4 Overall quality of the proposal, quality of the 35 28 25 23 10 11

work plan and methodology proposed

5 Qualification of the experts and experience in 40 36 37 34 32 30

the field of the assignment (key personnel)

6 Total 100 84.9 79.7 71.4 53.5 54.05

According to the Information to Consultants given in the Request for Proposal, the minimum
technical score required to pass is 70 points.
Therefore, from this technical evaluation, consultants U, V and W have passed the technical
evaluation (e.g. have scored above 70 points) thus their financial proposals will be opened
and evaluated. Consultants X and Y have been unsuccessful as their scores are below the set
pass points (70 points) and hence their financial proposals will be returned to them un
opened.
Financial Proposal
Thee Financial proposals for Consultants U, V and W were opened and the results were
recorded as under;
Consultant U Tshs.220 Million
Consultant V Tshs.250 Million
Consultant W Tshs 300 Million
These financial proposals were checked for arithmetic correctness and were in order.
From the above results, Consultant U is the 1st lowest, Consultant V is the second lowest and
Consultant W is the third lowest.
In financial evaluation criteria, the first lowest financially evaluated proposal scores 100
points, in this case it is U.
Financial evaluation
Description Price Tshs Formula Points achieved

1st lowest financially evaluated (x) 220million 100

Page 27
 2nd lowest financially evaluated (y) 250 million (X/y)*100% 88
=220/250*100%

3rd lowest financially evaluated (z) 300 million (X/z)*100%= 73

220/300*100%

KEY
1) X, y, z=Respective prices offered by consultants
2) X/y, x/z=Ratio of the total price of the 1 st lowest evaluated to the respective evaluated
prices.
Final selection
Description Technical 70% Financial 30% Total
1stlowest financially 84.9*0.7=59.43 30 89.43
evaluated

2nd lowest financially 79.7*0.7=55.79 88*0.3=26.4 82.19

evaluated
3rd lowest financially 71.4*0.7=49.98 73*0.3=21.9 71.92
evaluated

Evaluation Results
The evaluation results are as follows,
Consultant U has scored 89.43 points, Consultant V has scored 82.19 points and Consultant
W has scored 71.92 points
7.2 Negotiating the Proposal
Negotiations may take place only; when the selection of the best proposal has been done (i.e.
the evaluation process for the proposals is complete). The client may negotiate with the
successful consultant and agree on some sections of the proposal, with a view to better the
scope and execution of the assignment. At this stage the consulting contract is worked out
and the assignment is set to start.

7.3 EXPRESSION of Interest (EoI)

Expression of Interest means the process whereby the Consultants are invited to submit
details of their resources and capabilities so that the Employer can determine which
Consultants meet minimum criteria necessary for being considered for competitive selection
of Consultant.

The following details are requested in the format for invitation for Expression of
interest;
a) Information concerning the procuring entity, this includes

Page 28
  Name of the Employer and logo (if any)
 Identification Number of the project
 Title of the Project
 Financial year of the project and Source of fund
b) The intended objective of the service to be provided, this includes
 Specific invited professional and task to be carried out
c) Information required to be submitted by the Consulting firms e.g legal documents
(certificates of registration and incorporation, business licenses), list of previous
assignment done in recent years, brunches etc.
d) The contact address and persons representing the procuring entity. This will enable the
Consultant to obtain further information if required
e) Place of collecting and submitting the documents.
f) Date and time of submission and opening.

Evaluation of Expressions of Interest

The evaluation report will contain
1. Background; this section is subdivided into the following;
 introduction
 scope of work
 invitation for Expressions of Interest
 responsiveness to the advertisement

2. Selection Process; this section is subdivided into the following;

 formation of evaluation committee
 3 stage screening tests
 screening results
 strengths/weakness of firms
3. Short listed Firms
4. Recommendation
5. Evaluation Committee
6. Annexes; this section is subdivided into the following;
a. Screening Matrix for Short listing Consultants
b. Request for Expression of Interest (EOI) advertisement
c. Declaration form
7.4 REQUEST FOR PROPOSAL
Under normal practice, only those consultants who have been pre-qualified are invited by the
client to give their proposals
The Request for Proposal (RFP) includes
7) This letter of Invitation: Request for Proposal
After the client has prepared the Terms of Reference for the particular assignment or
project, the next step is to prepare letter of Invitation commonly known as Request for
Proposal and give the same to pre-qualified consultants so as to have their offer
(Proposal) on the assignment.

Page 29
 8) Information to consultants
Information to consultants embraces the following;
h) The name of the client
i) The method of selection- e.g. Quality and cost-based selection- the edition of the
Guidelines is selection and employment of Consultants in Tanzania. Procedure set out in
the Public Procurement Act No. 3 of 2001 and the Public Procurement (selection and
employment of Consultants) Regulation 2001.
j) Technical and Financial Proposals-The name, objectives and description of the
assignment tasks are;
k) Name- State the consultancy service and objectives as well as description of the
assignment by referring to the Terms of Reference contained in the relevant section of the
Request for Proposal.
l) Statement indicating whether the assignment is phased or not
m) Statement whether a pre- proposal meeting will be held or not
n) Names and addresses and telephone numbers of the client)

The client will provide the following inputs;

xv. Access to documents
xvi. Familiarization
xvii. Period for specified clarification before the submission date
xviii. Statement of the language in which the proposal is to be submitted
xix. Statement on whether association within short listed consulting firms is allowed or not
xx. Statement of the number of professional staff- months required for the assignment, by
giving break down of professional man months for each professional
xxi. Statement of the minimum required experience of proposed professional staff
xxii. Statement on the medium of communication
xxiii. Taxes; Payment of taxes if any is the responsibility of the consultant
xxiv. Consultants to state local costs in the specified currency
xxv. Statement on the validity of the proposal after the submission date
xxvi. Statement on how the consultant is to submit the proposal
xxvii. Statement on the Proposal submission address (Physical and Postal addresses),
xxviii. Statement on the evaluation criteria and weighting given to each
e) Specific experience of the consultant related to the assignment Points 10
f) Adequacy of the Proposal work plan and Methodology in responding to the Terms of
Reference 30
g) Qualifications and competence of the key staff for the assignment (60)
 Team Leader 20
 Other staff 40
h) The number of points to be given under each evaluation, sub criteria for qualifications
of staff is;
 General qualifications 30
 Adequacy for Project; 60

Page 30
  Experience in region and language 10
 Total points 100
The minimum technical score to pass is 70 points
xxix. Statement on the single currency for price conversion and the source of
official selling rates and the date of exchange rate
xxx. Statement on the address for negotiations and the date the assignment is to
commence.

9) Technical Proposal- Standard Form

A proposal essentially exists in two parts namely Technical proposal and financial proposal
Technical Proposal contains the following parts;
Technical Proposal submission form
This is a standard form issued by the client to the consultant whereby the consultant has to
address to the client, his willingness to offer to provide consulting services (by mentioning
the assignment) in accordance with client’s request for proposal and consultant’s proposal.
The consultant’s background section (Firm’s reference)
This section describes the experience and competence of the consulting organization as it
relates to the needs of the particular client. These may be a general subsection with standard
information given to all clients (including a section on ethical standards and professional
practice adhered to by the consultant), and a specific subsection referring to similar work
done for a specified period of time and providing evidence that the consultant will be the
right partner to choose. Reference concerning former clients will be used only with this
client’s prior agreement. The firm’s reference will generally consist of the following;
13) Assignment name
14) Country in which the project has been executed
15) Location within the country
16) Professional staff provided by the consulting firm
17) Name of client
18) Number of staff provided in the project
19) Start and completion date
20) Name of associated consultants if any
21) Number of months of professional staff provided by associated consultants
22) Name of senior staff (Project Director/Coordinator, Team leader) involved and functions
performed
23) Narrative description of Project
24) Description of actual services provided by the staff

Comments and suggestions of consultants

After acquainting himself or herself with the assignment by paying a visit to the physical
place of assignment, and a scrutiny to the documents given to the consultant by the client, the
consultant is to comment and suggest on the same.
Methodology and work plan

Page 31
Based on the Terms of Reference, documents and the physical visit to the assignment area,
the consultant is to give description of the methodology and work plan for performing the
assignment should he or she wins the contract.
Team Composition and task assignments (Staffing section)
The staffing section gives the names and profiles of the consultant’s staff that will be
involved in the assignment. They also include the senior consultants (partners, project
managers) who will be responsible for guiding and supervising the team working at the
client’s organization or project area depending upon the type of assignment) and the
supporting staff. The task and position of each staff in the team has to be clearly stated.
As a rule, the proposal guarantees the availability of particular persons for a limited period of
time. If the client delays the response or decides to postpone the assignment, he knows that he
will have to accept other consultants of a comparable profile or renegotiate the assignment.

10) Financial Proposal- Standard Form

The Financial and other terms section indicates the cost of services, provisions for cost
increases and contingencies, and the schedule and other indications for paying fees and
reimbursing expenses and settling all commitments. If the client applies a selection
procedure, the financial section may have to be submitted separately.
The consultant may have a standard description of his or her terms of contract or business and
attach it to the proposal. Conversely, some clients insist on using their own terms and the
consultant may have to comply with these if he or she does not want to lose the contract.
The Financial Proposal (standard forms) consists the following;
Financial Proposal submission form
In this form the consultant addresses the client his or her offer to provide the consulting
services for the assignment (name to be mentioned) in accordance with client’s request for
proposal and the consultant proposal (Technical and Financial Proposals) stating the amount
in words and figures

Summary of costs
Summary of costs includes the summary of subtotal and local taxes which give the Total
Amount of Financial Proposal in the specified currency as provided in the information to the
bidding consultants.

Break down of Price per Activity

Under this section, the breakdown of every activity in the assignment is given and includes
price component, remuneration, reimbursable and miscellaneous expenses

Break down of Remuneration per Activity

Under this section, the breakdown of remuneration per activity done by the staff detailing his
or her position and input and the respective remuneration are given. This includes the regular
staff, local staff, and consultants

Reimbursable per Activity

Page 32
Under this section all-reimbursable per activity are summed up together to give total
reimbursable for all activities. They may include the following depending upon the nature of
the assignment; miscellaneous travel expenses, international flights, subsistence allowance,
local transportation costs, office rent/ accommodation/ clerical assistance

Miscellaneous Expenses
These include communication costs (telephones, telegrams telex), drafting and reproduction
of reports, equipment- vehicles, computers etc, and soft wares

11) Terms of Reference

12) Standard Form of Contract
5.0 Evaluation and Award
Finally the proposal (Technical and Financial parts) is submitted to the client for decision and
approval. Depending upon the type of client the proposal may be handed over to the client in
a meeting, which starts with a short oral (and visual) of the reports summary. The consultant
is ready to answer questions about the start of the proposed assignment. If the client is keen
and ready to begin there are obvious advantages in doing so while the enthusiasm is there and
the contacts established are fresh in people’s minds. But an early date may not be easy to
meet because of existing commitments
Client’s reaction
A public institution client is normally bound by rules, which specify a minimum number of
tenders and internal evaluation procedures before awarding a contract. But a private sector
client may also use a selection procedure based on the evaluation of alternative proposals, in
particular for large and complex assignments. In such cases it may take several weeks or
months before the client will be in a position to decide.
Evaluation of Proposals

It is the responsibility of the client to inform the consultant the criteria, which will be used to
evaluate the proposal, and the relative weights to be given to various aspects of the proposal.
For example, the World Bank recommends its borrowers to give a weight of 10-20 percent to
the consulting firm’s general experience, 25-40 percent to the work plan, and 40-60 percent
to key personnel proposed for the assignment. Thus even a highly competent consulting firm
stands little chance in a selection procedure if it does not propose consultants of the right
calibre. Also the names of competitors are given in the original invitation to submitting
proposals.
Upon receipt of Proposals from the consultants, the client organizes to open them
immediately. Technical proposals are normally opened first before the presence of
consultants or their representatives. They are evaluated in accordance with the evaluation
criteria mentioned in the information to consultant during the preparation of Request for
Proposal.
Each point or section in the Technical proposal is critically evaluated and given weight. The
technical proposals that score high (above the specified minimum technical score) mentioned
in the criteria for evaluation are considered in the second phase of evaluation.

Page 33
In technical evaluation, emphasis is put on how the consultant has attempted to put up his or
her proposal to meet or exceed the expectation of the client in solving the problem, as
mentioned in the Terms of reference. Such areas include;
6) Understanding the project and the Terms of Reference (TOR)
7) Site inspection/ visit
8) Methodology and Work plan
9) Qualification of key personnel
10) Language capability
The above-mentioned areas are then given weights and scores evaluated.
Financial Evaluation
This is the second phase of Proposal evaluation. It involves the financial proposals of
consultants whose technical proposals have been successful (e.g. scored above the set
qualifying score points in the technical proposal
These financial proposals are opened and analysed critically, using the specified
methodology. At the end of evaluation, which considered the Financial as well as the
Technical proposals, the best combination of the two is selected.
An illustrative example on Evaluation of Proposals
The Problem
The Government of the United Republic of Tanzania has received Grant of the Basket Fund
for the Government of Denmark, Sweden, Canada, the Netherlands, Finland and Norway
towards the cost of the Legal sector Reform Programme; Quick start project and intends to
apply a portion of this grant to eligible payments under the contract.
Through its Judiciary Department, five short listed consultants were invited to put up their
proposals for the provision of consultancy services for the Feasibility study and pre contract
service for the alteration of three courts in Mbeya, Mtwara and Dar es Salaam.
To facilitate this exercise, the Terms of Reference and other documents were given to these
five consultants and the submission date for these proposals was March 31, 2003.
These proposals (Technical proposals) were opened on the same day in the presence of all
consultants.
As an independent consultant, you have been appointed by the client (The Judiciary
Department) to be one of the members forming the evaluation team, explain how you are
going to evaluate the proposals up to the final selection of the best proposal.
The Solution
Since this a Government project, Public Procurement Procedures act of July 2001 and the
World Bank recommendations on weights to be assigned to various components forming the
Technical proposals for the selection of consultants will be used
Technical Evaluation
The five technical proposals were analysed critically and weights given to various items
forming the Technical proposal and score for each consultant was calculated and the results
tabulated as under;

Page 34
 S/N Criteria U V W X Y
1 Professional reputation of the consultant, 10 8.7 6.6 5 4 4.95
previous performance (general experience)
2 Experience of the consultant in the same field 10 8 7 7.5 6 6.5
as that of the assignment on similar projects

3 Knowledge of the project environment and 5 4.2 4.1 1.9 1.5 1.6
the implication for the project

4 Overall quality of the proposal, quality of the 35 28 25 23 10 11

work plan and methodology proposed

5 Qualification of the experts and experience in 40 36 37 34 32 30

the field of the assignment (key personnel)

6 Total 100 84.9 79.7 71.4 53.5 54.05

According to the Information to Consultants given in the Request for Proposal, the minimum
technical score required to pass is 70 points.
Therefore from this technical evaluation, consultants U, V and W have passed the technical
evaluation (e.g. have scored above 70 points) thus their financial proposals will be opened
and evaluated. Consultants X and Y have been unsuccessful as their scores are below the set
pass points (70 points) and hence their financial proposals will be returned to them un
opened.
Financial Proposal
Thee Financial proposals for Consultants U, V and W were opened and the results were
recorded as under;
Consultant U Tshs.220 Million
Consultant V Tshs.250 Million
Consultant W Tshs 300 Million
These financial proposals were checked for arithmetic correctness and were in order.
From the above results, Consultant U is the 1st lowest, Consultant V is the second lowest and
Consultant W is the third lowest.
In financial evaluation criteria, the first lowest financially evaluated proposal scores 100
points, in this case it is U.
Financial evaluation
Description Price Tshs Formula Points achieved

1st lowest financially evaluated (x) 220million 100

2nd lowest financially evaluated (y) 250 million (X/y)*100% 88

=220/250*100%

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 3rd lowest financially evaluated (z) 300 million (X/z)*100%= 73
220/300*100%

KEY
3) X, y, z=Respective prices offered by consultants
4) X/y, x/z=Ratio of the total price of the 1 st lowest evaluated to the respective evaluated
prices.
Final selection
Description Technical 70% Financial 30% Total
1stlowest financially 84.9*0.7=59.43 30 89.43
evaluated

2nd lowest financially 79.7*0.7=55.79 88*0.3=26.4 82.19

evaluated
3rd lowest financially 71.4*0.7=49.98 73*0.3=21.9 71.92
evaluated

Evaluation Results
The evaluation results are as follows,
Consultant U has scored 89.43 points, Consultant V has scored 82.19 points and Consultant
W has scored 71.92 points
6 Negotiating the Proposal
Negotiations may take place only; when the selection of the best proposal has been done (i.e.
the evaluation process for the proposals is complete). The client may negotiate with the
successful consultant and agree on some sections of the proposal, with a view to better the
scope and execution of the assignment. At this stage the consulting contract is worked out
and the assignment is set to start.

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