QFM Framework

FRAMEWORK FOR QUALITY-FEE SELECTION METHOD (QFM)
SYSTEM

1.0 OBJECTIVE OF QFM SYSTEM

The Quality-Fee selection Method (QFM) system was developed to replace
the previous public sector consultancy procurement system which was used
during the CPGCorp moratorium for projects below $20M.

The previous system involved placing firms in segregated panels and
allocating jobs to them after balloting to obtain the order of allocation. Fees
were fixed according to a pre-determined scale.

2.0 KEY PRINCIPLES

a) The Quality-Fee selection Method (QFM) is a competitive selection
method that takes into consideration both the quality criteria submitted by
the firms and their fee proposals. It is primarily quality-based with a higher
weightage given for quality.

b) The QFM will also operate in as transparent a manner as possible.
Besides the overall quality:fee weightages, the weightages of the various
quality criteria sought for will be made known at tender stage. Quality
scoring will be carried out before fee proposals are opened.

c) The QFM will also be carried out in an efficient manner to reduce costly
efforts in tender pre-qualifications, tendering itself and tender evaluation.

3.0 MAIN FEATURES OF QFM

a) Weighting for QFM
Quality : 60% - 80%
- Fee : 40% - 20% correspondingly
- Q/F weighting: 60/40 to 80/20

b) Two-envelope system
Quality proposals will be opened and evaluated first with quality
scores computed before the envelopes for the fee proposals are
opened and the fee scores computed.

c) Quality criteria for quality proposals
- Firms standing eg track records, performance of firms
- Relevant expertise and experience of the proposed project team for
the project
- 1 -

- Approach for the project based on the firms understanding of the
clients requirements in the form of written proposals (limited to 2 A4
sheets) and/or concept design proposals

d) Concept design proposals
- Q/F weighting will be 80/20
- Agencies shall compensate firms should concept design proposals be
requested

e) Measure to reduce fee diving
To discourage firms from quoting excessively low fees, the maximum
score for fees will be pegged at 20% below the average fees quoted
by the tendering firms.

4.0 CENTRAL PANEL SYSTEM FOR SHORTLISTING

To improve tendering efficiency, a central panel system will be launched on 1
Apr 04 to tie in with the end of the CPGCorp moratorium. The main features
of the central panel system are as follows:

a) It will be centralised and categorised according to their respective
disciplines and different project values as follows:

Architectural, C&S, M&E and QS firms
Panel 1 : above $30M - $65M
Panel 4 : $0 - $3M

PM firms
Panel 1 : above $10M
Panel 2 : $0 - $10M

The entry criteria for the panel are given in Appendix 1.

b) Listing will be open to firms at any time
- Subject to renewal annually to ensure minimum qualifying criteria are
still met
c) Firms will select which panel they wish to be listed on
- Limited to one choice and subjected to meeting the qualifying criteria
for that panel
d) Firms listed on a particular panel are eligible for projects of value within
that panel and the next lower panel only:
- 2 -

For projects within project cost range of $30M - $65M, only firms from
Panel 1 can tender.
Panel 1 & Panel 2 can tender.
Panel 2 & Panel 3 can tender.
For projects within project cost range of $0 - $3M, only firms from Panel 3
& Panel 4 can tender.

PM firms
For projects of project cost above $10M, only firms from Panel 1 can
tender.
For projects within project cost range of $0 - $10M, only firms from Panel
1 & Panel 2 can tender.

5.0 PROCUREMENT STEPS

a) Expression of interest

Projects below $65M
Depending on the type of services sought for and the size of the particular
project, the procuring agencies will invite expression of interest from all
eligible firms in the relevant panels.

Projects above $65M
Open tender will be called in which firms from all panels from the specific
disciplines of consultancy services sought for may participate, provided they
meet the eligibility criteria specified by the procuring agency.

b) Shortlisting methods


(i) Projects up to $30M
- 1-stage QFM procurement process will be adopted.
- 5 firms will be balloted from interested firms in eligible categories.

(ii) Projects above $30M - $65M
- Either 1-stage QFM or 2-stage QFM will be adopted.
- For 1-stage QFM, same balloting process applies.
- 3 -

- For 2-stage QFM, Stage 1 involves shortlisting 5 firms from the pool
of interested firms based on agencies particular requirements.

(iii) Projects above $65M
- Open 2-stage QFM will be adopted i.e. firms from all the panels in the
particular disciplines sought for can express interest for the project,
provided they meet the eligibility criteria specified by the procuring
agency.
- Stage 1 involves shortlisting 5 firms from the pool of interested firms
based on agencies particular requirements.

PM firms

Balloting may be used to shortlist 5 firms from the interested pool of firms, if
necessary.

c) Tendering procedures

Broad guidelines for 1-stage QFM
Shortlisted firms will either submit bids on an individual basis (by
discipline) or be asked to form multi-disciplinary teams to submit proposals
Firms will submit quality proposals and fee proposals at the same time in
separate envelopes
Quality submission requirements such as firms standing, relevant
expertise and experience, written proposal (limit to 2A4 sheets)
No concept design proposals will be required

Broad guidelines for 2-stage QFM

1
st
stage of 2-stage QFM (Shortlisting phase)
5 firms or teams could be shortlisted based on quality proposals
submitted such as firms standing, relevant expertise and experience and
brief written proposal
No fee proposals and no concept design proposals are required at this
stage

2
nd
stage of 2-stage QFM
Shortlisted teams will submit, in separate envelopes, fee proposals and
detailed quality proposals such as concept design (limit to 2 A1 size
drawings) and supporting written document.

6.0 FUTURE DIRECTION

The QFM will be revised and finalised as experience is gained from the
implementation. It will move towards a fully open QFM system where all
eligible firms are allowed to participate, within a timeframe of three years.
- 4 -
Appendix 1
LISTING CRITERIA FOR
PUBLIC SECTOR PANELS OF CONSULTANTS

ARCHITECTURAL CONSULTANCY FIRMS

(i) Common Criteria
Firm must be registered with the respective professional body i.e. BOA

(ii) Specific Criteria
Criteria for PANEL AR04 ($0 - $3M):
(a) 1 registered professional with the respective professional body supported by 1
professional with recognised professional qualifications
1

Criteria for PANEL AR03 (above $3M - $10M):
1

(b) Completed a project above $1.5M in the past 5 years
(c) At least one technical or professional staff has attended either the Buildable
Design Appraisal System (BDAS) / Integrated Buildable Design Appraisal System
(i-BDAS) / Code of Practice on Buildable Design course conducted by BCA
2

(a) 2 registered professionals with the respective professional body
(b) Completed a project above $5M in the past 5 years
(c) ISO 9001:2000 certification
(d) At least one technical or professional staff has attended either the Buildable
2

(c) Must have professional indemnity insurance (PII) of at least $0.5M
(d) ISO 9001:2000 certification
(e) At least one technical or professional staff has attended either the Buildable
2

Criteria for Projects above $65M:
Agencies to determine depending on particular requirements for project

1
Refers to a relevant recognised degree in Architecture
List of recognised degrees in Architecture could be obtained from BOA
2
For firms that do not satisfy this requirement, they have to declare and ensure that at least one of its technical
or professional staff will attend the Code of Practice on Buildable Design course conducted by BCA within
a period of 6 months upon approval of its listing application. Firms are required to submit the Certificate of
Attendance to the PSPC counter together with Form Part 4(i) upon successful completion of the course.
- 1 -
Appendix 1
CIVIL & STRUCTURAL ENGINEERING CONSULTANCY FIRMS

(i) Common Criteria
Firm must be registered with the respective professional body i.e. PEB

Criteria for PANEL CS04 ($0 - $3M):
3

Criteria for PANEL CS03 (above $3M - $10M):
3

(c) At least one technical or professional staff has attended either the Buildable
4

(d) At least one technical or professional staff has attended either the Buildable
4

(e) At least one technical or professional staff has attended either the Buildable
4


3
Refers to a relevant recognised degree in Civil/Structural Engineering
List of recognised degrees in Civil/Structural Engineering could be obtained from PEB
4
For firms that do not satisfy this requirement, they have to declare and ensure that at least one of its technical
or professional staff will attend the Code of Practice on Buildable Design course conducted by BCA within
a period of 6 months upon approval of its listing application. Firms are required to submit the Certificate of
Attendance to the PSPC counter together with Form Part 4(i) upon successful completion of the course.
- 2 -
Appendix 1
MECHANCIAL & ELECTRICAL ENGINEERING CONSULTANCY FIRMS

(i) Common Criteria
Firm must be registered with the respective professional body i.e. PEB

Criteria for PANEL ME04 ($0 - $3M):
5

Criteria for PANEL ME03 (above $3M - $10M):
5





5
Refers to a relevant recognised degree in Mechanical/Electrical Engineering
List of recognised degrees in Mechanical/Electrical Engineering could be obtained from PEB
- 3 -
Appendix 1
QUANTITY SURVEYING CONSULTANCY FIRMS

(i) Specific Criteria
Criteria for PANEL QS04 ($0 - $3M):
(a) 1 degree holder
6
supported by 1 diploma holder
7

Criteria for PANEL QS03 (above $3M - $10M):
(a) 1 degree holder
6
, who must have completed a project above $1.5M as a project
QS, supported by 1 diploma holder
7

(b) Firm must have completed a project above $1.5M in the past 5 years

(a) 2 degree holders
6
, 1 of whom must have completed a project above $5M as a
project QS
(b) Firm must have completed a project above $5M in the past 5 years

6
project QS
(b) Firm must have completed a project above $15M in the past 5 years


6
Degree holder in Architecture, Building, Engineering or equivalent
7
Diploma holder in Architecture, Building, Engineering or equivalent
- 4 -
Appendix 1
PROJECT MANAGEMENT FIRMS

(i) Specific Criteria
Criteria for PANEL PM02 ($0 - $10M):
6
project PM
8
in the past 5 years

Criteria for PANEL PM01 (above $10M):
6
project PM
8
in the past 5 years
(b) Firm must have completed at least 3 projects as project manager, each above
$8M in the past 5 years
(c) ISO 9001:2000 certification in Project Management

8
Project PM refers to appointment by client /developer to provide solely Project Management services
- 5 -
Appendix 2
COMPUTATION FOR QUALITY-FEE SCORING (EXAMPLE)

Example:

Quality-Fee Ratio: 70/30
Total number of shortlisted teams: 5

Teams 1 2 3 4 5
Q
(raw)
84 94 91 90 88
Q
(wt)
58.8 65.8 63.7 63.0 61.6
F(%) 3.5 4.2 5.0 4.6 4.9
F
(wt)
30 25.37 21.31 23.17 21.75
Total QF
score(Q
(wt)

+ F
(wt)
)
88.8 91.17 85.01 86.17 83.35
Overall
position
2 1 4 3 5

(i) To compute weighted quality score
Q
(wt)
= Q
(raw)
x 70%

(ii) To compute average fee score
F
ave
= (summation of fees of all qualifying bids) / (no. of qualifying bids)
= 4.44 %

(iii) To compute weighted fee score
F
(wt)
= (0.8F
ave
/ Bidder's fee) x 30 (max 30 points)

Cap maximum score at 20% below average fee,
0.8F
ave
= 3.55 %

- 1 -

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