Rule 192 of The General Financial Rules 2017 Quality and Cost Based Selection QCBS
Original Rule Text
Visual Summary
Prioritizes quality in consultancy services.
Technical and financial proposals are scored.
Highest weighted score determines the winner.
Executive Summary
Rule 192 of The General Financial Rules, 2017 outlines the Quality and Cost Based Selection (QCBS) method for procuring consultancy services. This method prioritizes the quality of technical proposals, which are initially scored against predefined criteria. Only proposals meeting a minimum qualifying technical score proceed to the financial evaluation stage. A final combined score is then calculated by assigning relative weightages to both technical quality and financial proposals, with the highest-scoring proposal being selected. Notably, the weightage for technical parameters cannot exceed 80 percent, ensuring a balanced consideration of both quality and cost.
In-Depth Analysis of the Rule
The Quality and Cost Based Selection (QCBS) method, as detailed in Rule 192 of the General Financial Rules, 2017, is a crucial framework for government entities seeking high-quality consultancy services. It ensures that the selection process is not solely driven by the lowest price but by a judicious balance of technical merit and financial viability. This approach is particularly relevant for complex assignments where expertise and quality outcomes are paramount.
Breakdown of the Rule:
- Initial Scoring of Technical Proposals: The process begins with a rigorous evaluation of technical proposals based on criteria specified in the Request for Proposal (RFP). This ensures that only consultants demonstrating adequate technical capability and understanding of the assignment are considered further. A minimum qualifying score is a prerequisite for advancing to the next stage.
- Combined Score Calculation: For technically qualified bidders, their financial proposals are opened and scored. A final combined score is then derived by applying predefined weightages to both the technical and financial scores. This step is critical for balancing quality with cost-effectiveness.
- RFP Specifies Criteria: The RFP must clearly outline the minimum qualifying technical score and the relative weightages for quality and cost (e.g., 70:30, 60:40, 50:50). These weightages are determined by the specific requirements and importance of quality versus cost for each assignment.
- Technical Parameters Weightage Limit: A significant safeguard is the stipulation that the weightage of non-financial (technical) parameters cannot exceed 80 percent. This prevents an overemphasis on technical aspects to the detriment of financial prudence.
Practical Example:
Imagine a government department needs a consultant to design a complex urban infrastructure project. Using QCBS, they first evaluate technical proposals based on the consultant’s experience, methodology, and team qualifications. Only firms scoring above a set threshold (e.g., 70%) have their financial bids opened. If the RFP specifies a 70:30 weightage for technical to financial scores, a firm with a high technical score but a slightly higher price might still win over a firm with a lower price but a mediocre technical score, ensuring the project benefits from superior expertise.
Related Provisions
Understanding Rule 192 is enhanced by reviewing other related provisions within the General Financial Rules, 2017:
- Rule 191 Methods of Selection Evaluation of Consultancy Proposals: This rule provides the overarching context for various methods of selecting consultants, of which QCBS is one.
- Rule 193 of The General Financial Rules 2017 Least Cost System LCS: This rule details an alternative selection method, the Least Cost System, which contrasts with QCBS by prioritizing cost for standard assignments.
- Rule 194 of The General Financial Rules 2017 Single Source Selection Consultancy by Nomination: This rule outlines the exceptional circumstances under which a single-source selection for consultancy services may be justified.
Learning Aids
Mnemonics:
- Quality Control Balances Spending: A reminder that QCBS ensures quality is balanced with cost.
Process Flowchart:
Multiple Choice Questions (MCQs)
1. According to Rule 192 of the General Financial Rules, 2017, what is the primary concern when using Quality and Cost Based Selection (QCBS) for procurement of consultancy services?
- A) Lowest financial bid
- B) Speed of delivery
- C) Quality of consultancy
- D) Ease of contract management
Show Answer
Correct Answer: C) Quality of consultancy
2. In the QCBS method under Rule 192 of the General Financial Rules, 2017, which proposals are considered further after the initial scoring of technical proposals?
- A) All submitted proposals
- B) Only those with the lowest financial bid
- C) Only those that achieve at least the minimum specified qualifying score in quality
- D) Proposals from registered suppliers only
Show Answer
Correct Answer: C) Only those that achieve at least the minimum specified qualifying score in quality
3. Rule 192 of the General Financial Rules, 2017 states that the weightage of technical parameters (non-financial) in QCBS should not exceed what percentage?
- A) 50 percent
- B) 60 percent
- C) 70 percent
- D) 80 percent
Show Answer
Correct Answer: D) 80 percent
4. What document, as per Rule 192 of the General Financial Rules, 2017, specifies the minimum qualifying score and relative weightages for quality and cost in QCBS?
- A) Memorandum of Understanding (MoU)
- B) Request for Proposal (RFP)
- C) Tender Notice
- D) Contract Agreement
Show Answer
Correct Answer: B) Request for Proposal (RFP)
5. In the QCBS method described in Rule 192 of the General Financial Rules, 2017, how is the final selection made?
- A) Based solely on the lowest financial bid.
- B) Based on the highest technical score among all bidders.
- C) Based on the highest weighted combined score of quality and cost.
- D) Through a lottery among technically qualified bidders.
Show Answer
Correct Answer: C) Based on the highest weighted combined score of quality and cost.
Frequently Asked Questions
What is the main objective of QCBS as per Rule 192?
The main objective of Quality and Cost Based Selection (QCBS) is to procure consultancy services where the quality of the consultancy is of prime concern, ensuring a balance between technical merit and financial viability.
Can a technically superior proposal be rejected if its cost is too high under QCBS?
Under QCBS, a final combined score is calculated using predefined weightages for both technical quality and financial proposals. While cost is a factor, a technically superior proposal might still be selected even if its cost is higher, provided its combined weighted score is the highest, reflecting the emphasis on quality.
Are there any limits on the weightage given to technical parameters in QCBS?
Yes, Rule 192 explicitly states that the weightage of technical parameters (non-financial parameters) should in no case exceed 80 percent, ensuring that financial considerations are always given a significant role in the evaluation.
Key Takeaways
- QCBS prioritizes quality for consultancy services, not just the lowest price.
- Technical proposals are evaluated first, with a minimum qualifying score required to proceed.
- A combined weighted score of both technical and financial proposals determines the final selection.
- Technical parameters cannot account for more than 80% of the total weightage.
Conclusion
Rule 192 of The General Financial Rules, 2017 establishes the Quality and Cost Based Selection (QCBS) as a robust and balanced method for procuring consultancy services. By mandating a comprehensive evaluation of both technical expertise and financial viability, with a clear emphasis on quality, this rule ensures that government projects benefit from the best possible professional advice and execution, ultimately contributing to efficient and effective public service delivery.