{"id":5381,"date":"2018-05-02T09:30:36","date_gmt":"2018-05-02T14:30:36","guid":{"rendered":"http:\/\/projectcalls.com\/?p=5381"},"modified":"2018-05-02T09:30:36","modified_gmt":"2018-05-02T14:30:36","slug":"qbs-qcbs-lcs-what-are-they-and-how-are-they-different","status":"publish","type":"post","link":"https:\/\/projectcalls.com\/dev\/qbs-qcbs-lcs-what-are-they-and-how-are-they-different\/","title":{"rendered":"QBS, QCBS, LCS: What are they, and how are they different?"},"content":{"rendered":"<p>In planning to respond to a Request for Proposals, Invitation to Tender, or some other kind of solicitation, one of the crucial steps is to determine the evaluation method the procuring team intends to use to select the suitable candidate to award a contract. In knowing what criteria will be used when submissions are being evaluated, you, as the Consultant, Contractor, or Vendor (of goods and\/or services), can properly strategise preparation of your response, to increase your chances of being favourably considered.<\/p>\n<p>However, in the procurement world \u2013 like many specialist fields \u2013 lots of abbreviations and jargons are bandied about, which can be confusing to most. Here, we will demystify three key, and frequently used, selection\/evaluation methods:<\/p>\n<ul>\n<li>Quality-Based Selection<\/li>\n<li>Quality-Cost-Based Selection<\/li>\n<li>Least Cost Selection<\/li>\n<\/ul>\n<h3>Quality-Based Selection (QBS)<\/h3>\n<p>Typically, QBS is used when the emphasis is on securing the most competent candidate. Selection is thus based on the quality of the proposals submitted, which tends to be limited to the technical proposals only.<\/p>\n<p>Under QBS, financial proposals (or other similar documentation proposing the project cost) are not immediately included in the evaluation process. If financial proposals must be submitted at the same time as the technical proposals, the two-envelope system is typically used \u2013 where, though submitted at the same time, the technical proposal and the financial proposal are placed in separate envelopes.<\/p>\n<p>Once the highest-ranked technical proposal is determined, the corresponding financial proposal would then be opened, and its owner is invited to negotiate with the procuring team. When those negotiations are successfully concluded, the financial proposals submitted by other bidders, should be returned unopened.<\/p>\n<h3>Quality Cost-Based Selection (QCBS)<\/h3>\n<p>Under QCBS, both the technical and financial proposals are used to determine the wining submission. Typically, the technical and financial proposals are submitted at the same time in separate sealed envelopes (two-envelope system).<\/p>\n<p>The evaluation methodology employed aims to identify the strongest technical proposal at the best price. Hence, each submission\u2019s technical proposal scores and financial proposal scores are weighted, based on the quality-cost balance the procurement team wants to apply, and the weighted scores summed, to produce the final results. So, for example, the weighting could be as follows:<\/p>\n<ul>\n<li>Weight assigned to technical proposal = 80%<\/li>\n<li>Weight assigned to financial proposal = 20%<\/li>\n<\/ul>\n<p>The technical proposals are evaluated first. The score assigned to each proposal is then weighted as prescribed.<\/p>\n<p>Thereafter, the financial proposals are evaluated. Typically, the lowest-priced financial proposal is awarded the full weighted score. Using the above weights, that would be 20%. The weighted scores of the other financial proposals are calculated as a fraction of the highest scoring proposal. So, if the lowest priced proposal was $X, the weighted scores for another submission, for which the proposed price was $A, would calculated as ($A\/$X), multiplied by weight assigned financial proposals (20%). Hence, their final weighted scores will always be less than that of the lowest-priced financial proposal.<\/p>\n<p>Once the weighted technical scores and weighted financial scores are determined for each set of submissions, they are summed, to determine the final scores, and which is the winning submission<\/p>\n<a id=\"pd_a_9993261\"><\/a><div class=\"CSS_Poll PDS_Poll\" id=\"PDI_container9993261\" style=\"\"><\/div><div id=\"PD_superContainer\"><\/div><noscript><a href=\"https:\/\/poll.fm\/9993261\" target=\"_blank\" rel=\"noopener noreferrer\">Take Our Poll<\/a><\/noscript>\n<h3>Least-Cost Selection (LCS)<\/h3>\n<p>For the LCS method, although the financial proposal will be the basis upon which the winning submission is determined, the quality of the technical proposal, is still a crucial consideration. Once again, both the technical and financial proposal are usually submitted using the two-envelope system.<\/p>\n<p>The technical proposals are opened first and evaluated, based on the evaluation criteria specified in the solicitation documents. The proposals that achieve meet or exceed the minimum technical score, will have their financial proposals opened. Those below that score, are rejected, and their financial proposals should be returned unopened.<\/p>\n<p>The qualifying financial proposals are opened, and the lowest-priced financial proposal is considered the winner of the contract.<\/p>\n<p>However, it should be noted that the strongest technical proposal is not automatically selected. Any of the technical proposals that achieve the minimum score are eligible for consideration, but has the lowest project price will win.<\/p>\n<p>\u00a0<\/p>\n<p><em><strong>Have any questions? Do share them in the section below, or on <a href=\"https:\/\/www.facebook.com\/ProjectCalls\/\" target=\"_blank\" rel=\"noopener\">Facebook<\/a> or <a href=\"https:\/\/twitter.com\/ProjectCalls\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> page<\/strong><\/em><\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p><em>Image:\u00a0\u00a0Wokandapix (<a href=\"http:\/\/www.pixabay.com\" target=\"_blank\" rel=\"noopener\">Pixabay<\/a>)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In planning to respond to a Request for Proposals, Invitation to Tender, or some other kind of solicitation, one of the crucial steps is to determine the evaluation method the&#8230;<\/p>\n","protected":false},"author":19,"featured_media":5383,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[175],"tags":[71,229],"class_list":["post-5381","post","type-post","status-publish","format-standard","has-post-thumbnail","category-tips","tag-procurement","tag-tender-evaluation"],"aioseo_notices":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/projectcalls.com\/dev\/wp-content\/uploads\/2018\/05\/Assess-Measure-Evaluation-Business-Analytics-Wokandapix-Pixabay.jpg?fit=1024%2C683&ssl=1","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p6u9Qa-1oN","jetpack_likes_enabled":true,"jetpack-related-posts":[{"id":2992,"url":"https:\/\/projectcalls.com\/dev\/successful-drug-suppliers-must-register-all-drugs-with-food-and-drug-dept\/","url_meta":{"origin":5381,"position":0},"title":"Successful drug suppliers must register all drugs with Food and Drug Dept","author":"Project Calls","date":"August 24, 2017","format":false,"excerpt":"The newly implemented drug procurement system requires successful suppliers to register all drugs with the Government Analyst Food and Drug Department (GA-FDD). This is to ensure that quality drugs and medical supplies are acquired through the procurement system. This was highlighted during a presentation by Technical Advisor to the Ministry\u2026","rel":"","context":"In &quot;News\/Developments&quot;","block_context":{"text":"News\/Developments","link":"https:\/\/projectcalls.com\/dev\/category\/newsdevelopments\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/projectcalls.com\/dev\/wp-content\/uploads\/2017\/08\/Medication-Gatis-Gribusts-flickr.jpg?fit=1024%2C840&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/projectcalls.com\/dev\/wp-content\/uploads\/2017\/08\/Medication-Gatis-Gribusts-flickr.jpg?fit=1024%2C840&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/projectcalls.com\/dev\/wp-content\/uploads\/2017\/08\/Medication-Gatis-Gribusts-flickr.jpg?fit=1024%2C840&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/projectcalls.com\/dev\/wp-content\/uploads\/2017\/08\/Medication-Gatis-Gribusts-flickr.jpg?fit=1024%2C840&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":20656,"url":"https:\/\/projectcalls.com\/dev\/the-guardians-of-democracy-can-be-the-guardians-against-corruption\/","url_meta":{"origin":5381,"position":1},"title":"The guardians of democracy can be the guardians against corruption","author":"Mayra Bonilla Lopez","date":"February 10, 2022","format":false,"excerpt":"Guyana It is with great worry that, once again, the situation regarding Guy-ana\u2019s public procurement practices must once again be addressed and criticized. The entity in question is the National Procurement and Tender Administration Board (NPTAB), whose members are in charge of all public procurement in the country. Since this\u2026","rel":"","context":"In &quot;Articles&quot;","block_context":{"text":"Articles","link":"https:\/\/projectcalls.com\/dev\/category\/articles\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/projectcalls.com\/dev\/wp-content\/uploads\/2021\/05\/pexels-cqfavocat-613508-scaled-e1644524566827.jpg?fit=1025%2C684&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/projectcalls.com\/dev\/wp-content\/uploads\/2021\/05\/pexels-cqfavocat-613508-scaled-e1644524566827.jpg?fit=1025%2C684&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/projectcalls.com\/dev\/wp-content\/uploads\/2021\/05\/pexels-cqfavocat-613508-scaled-e1644524566827.jpg?fit=1025%2C684&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/projectcalls.com\/dev\/wp-content\/uploads\/2021\/05\/pexels-cqfavocat-613508-scaled-e1644524566827.jpg?fit=1025%2C684&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":24352,"url":"https:\/\/projectcalls.com\/dev\/debarment-of-contractors-and-suppliers\/","url_meta":{"origin":5381,"position":2},"title":"Debarment of contractors and suppliers","author":"Mayra Bonilla Lopez","date":"September 29, 2022","format":false,"excerpt":"Guyana The award of the contract in the sum of $566.9 million to Kares Engineering Inc. for reconstruction of the North Ruimveldt Secondary School has generated much criticism. The company was the third lowest from among nine tenders received. According to the National Procurement and Tender Administration Board (NPTAB), the\u2026","rel":"","context":"In &quot;Articles&quot;","block_context":{"text":"Articles","link":"https:\/\/projectcalls.com\/dev\/category\/articles\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/projectcalls.com\/dev\/wp-content\/uploads\/2022\/09\/pexels-dids-5499557-scaled-e1664470780222.jpg?fit=1024%2C616&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/projectcalls.com\/dev\/wp-content\/uploads\/2022\/09\/pexels-dids-5499557-scaled-e1664470780222.jpg?fit=1024%2C616&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/projectcalls.com\/dev\/wp-content\/uploads\/2022\/09\/pexels-dids-5499557-scaled-e1664470780222.jpg?fit=1024%2C616&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/projectcalls.com\/dev\/wp-content\/uploads\/2022\/09\/pexels-dids-5499557-scaled-e1664470780222.jpg?fit=1024%2C616&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":18795,"url":"https:\/\/projectcalls.com\/dev\/tender-board-denies-making-call-to-retender-ndias-steel-sheets-contract-2\/","url_meta":{"origin":5381,"position":3},"title":"Tender board denies making call to retender NDIA\u2019s steel sheets contract","author":"Mayra Bonilla Lopez","date":"October 7, 2021","format":false,"excerpt":"Guyana The National Procurement and Tender Administration Board (NPTAB) yesterday distanced itself from a decision to retender a contract, as claimed by the Ministry of Agriculture, and its Board will meet next week to discuss the issue. An NPTAB official said that the Board will want to clarify its role,\u2026","rel":"","context":"In &quot;Articles&quot;","block_context":{"text":"Articles","link":"https:\/\/projectcalls.com\/dev\/category\/articles\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/projectcalls.com\/dev\/wp-content\/uploads\/2021\/10\/pexels-andrea-piacquadio-3760067-scaled.jpg?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/projectcalls.com\/dev\/wp-content\/uploads\/2021\/10\/pexels-andrea-piacquadio-3760067-scaled.jpg?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/projectcalls.com\/dev\/wp-content\/uploads\/2021\/10\/pexels-andrea-piacquadio-3760067-scaled.jpg?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/projectcalls.com\/dev\/wp-content\/uploads\/2021\/10\/pexels-andrea-piacquadio-3760067-scaled.jpg?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/projectcalls.com\/dev\/wp-content\/uploads\/2021\/10\/pexels-andrea-piacquadio-3760067-scaled.jpg?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":36667,"url":"https:\/\/projectcalls.com\/dev\/guyana-news-ppc-rejected-complaint-over-contract-for-fort-wellington-school-extension\/","url_meta":{"origin":5381,"position":4},"title":"Guyana News PPC rejected complaint over contract for Fort Wellington school extension","author":"Mayra Bonilla Lopez","date":"October 10, 2024","format":false,"excerpt":"Guyana The Public Procurement Commission (PPC) last December rejected a complaint by a bidder over the award of a project for the extension of the Fort Wellington Secondary School but the procuring entity, the Ministry of Local Government never provided any of the requested information for the investigation. Bickram Motiram\u2026","rel":"","context":"In &quot;Articles&quot;","block_context":{"text":"Articles","link":"https:\/\/projectcalls.com\/dev\/category\/articles\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/projectcalls.com\/dev\/wp-content\/uploads\/2018\/03\/Business-Office-Contract-Agreement-Deal-rawpixel-Pixabay.jpg?fit=1024%2C682&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/projectcalls.com\/dev\/wp-content\/uploads\/2018\/03\/Business-Office-Contract-Agreement-Deal-rawpixel-Pixabay.jpg?fit=1024%2C682&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/projectcalls.com\/dev\/wp-content\/uploads\/2018\/03\/Business-Office-Contract-Agreement-Deal-rawpixel-Pixabay.jpg?fit=1024%2C682&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/projectcalls.com\/dev\/wp-content\/uploads\/2018\/03\/Business-Office-Contract-Agreement-Deal-rawpixel-Pixabay.jpg?fit=1024%2C682&ssl=1&resize=700%2C400 2x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/projectcalls.com\/dev\/wp-json\/wp\/v2\/posts\/5381","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/projectcalls.com\/dev\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/projectcalls.com\/dev\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/projectcalls.com\/dev\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/projectcalls.com\/dev\/wp-json\/wp\/v2\/comments?post=5381"}],"version-history":[{"count":2,"href":"https:\/\/projectcalls.com\/dev\/wp-json\/wp\/v2\/posts\/5381\/revisions"}],"predecessor-version":[{"id":5384,"href":"https:\/\/projectcalls.com\/dev\/wp-json\/wp\/v2\/posts\/5381\/revisions\/5384"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/projectcalls.com\/dev\/wp-json\/wp\/v2\/media\/5383"}],"wp:attachment":[{"href":"https:\/\/projectcalls.com\/dev\/wp-json\/wp\/v2\/media?parent=5381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/projectcalls.com\/dev\/wp-json\/wp\/v2\/categories?post=5381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/projectcalls.com\/dev\/wp-json\/wp\/v2\/tags?post=5381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}