qualificationsbased

Qualificationsbased, in procurement terms, refers to selecting service providers primarily on demonstrated qualifications rather than onprice. It is most closely associated with qualifications-based selection (QBS), a method used for procuring professional services such as architecture, engineering, and surveying.

Overview and purpose

Qualificationsbased procurement prioritizes competence, experience, and the ability to deliver a project successfully. The approach aims to reduce risk and deliver better outcomes by ensuring that the selected firm has the appropriate credentials, staffing, and track record. Price is typically considered only after a firm has been identified as most qualified.

Key elements

- Evaluation criteria focus on qualifications: licenses and registrations, personnel qualifications, past performance, project approach, and available capacity.

- A two-step process is common: first, responses to a request for qualifications (RFQ) are evaluated and a shortlist of firms is created; second, shortlisted firms may be invited to present or interview.

- Fee negotiations occur after the selection of the most qualified firm, and the resulting contract is based on scope and fee discussions rather than being driven by the lowest bid alone.

Legal and practical context

In the United States, the Brooks Act governs the selection of architectural and engineering services for federal projects and promotes QBS as the standard approach. Many state and local jurisdictions have adopted similar practice for public sector projects. While QBS is standard for professional services in many public procurements, many private sector purchases still rely on price-based methods.

Advantages and criticisms

Benefits include improved project outcomes, reduced risk, and better alignment of skills to project needs. Critics point to potential subjectivity in evaluating qualifications and longer procurement timelines, along with concerns about equity in competition.

See also

Public procurement, best value, RFQ, RFP, Brooks Act, professional services.

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