Introduction

This publication was prepared by the Transportation Consultants Council of the Institute of Transportation Engineers to serve as a guide for the selection of a transportation consultant. The guidelines are consistent with procedures recommended by government agencies and engineering societies.

Since a consultant’s recommendations are usually the basis for major policy decisions, planning, construction or operations, the emphasis should be placed on securing a person or firm whose expertise is closely related to the issue or the problem to be solved.

There are many reputable consultants who are well-trained, widely diversified and knowledgeable. It is the task of the prospective client, however, to select and engage a consultant best qualified for a particular project.

The steps outlined in this article should help the prospective client to select the most qualified consultant and to negotiate a fair price for the services needed.

The procedure for consultant selection involves five major steps.

1. Define the project
2. List prospective firms
3. Screen the candidates
4. Select the best qualified firm
5. Finalize project scope and negotiate contract terms and fees

The degree of detail involved in each of the above steps is dependent on the size of the project and its complexity. The above process can include continuation of a firm who may now be serving the client acceptably.

If a formal selection process is indicated, these additional comments about each step may be helpful.

1. Define the Project

The scope of consultant services should be defined by the client so that there is a clear understanding of the problem, nature of the work or plans to be produced. It is the client’s description of the project which provides the common ground from which all subsequent steps follow. The better the definition of the project by the client, the more likely he is to receive consultant proposals which demonstrate perception and understanding of the work to be performed.

Included in defining the project are:

1. Nature of work to be done—the description should include the major questions to be addressed; the format of the products of the work such as plans, technical reports, executive summaries and the type and number of public and presentation meetings desired.
2. Study area and/or limits—If the project has geographic boundaries, then a map or text specifying the area of coverage should be included. If the project is one step in a series of steps, for example, a feasibility study as an initial step in a continuing program, the subject limits or level of effort should be stated.
3. Data available—A listing of data available is generally sufficient since the consultant will investigate or specify what he will need.
4. Time limits—A realistic time frame should be established.
5. Budget range for consulting services—This is particularly important since it allows the consultant to respond.

A written scope of services can be one page or several pages depending on the complexity of the project. Each of the above items should, however, be specified, if possible.

Now that you have defined the project you are ready to consider possible candidates for work.

2. List Prospective Firms

A list should be prepared of firms who have the ability and expertise to perform the work considering its size, complexity and special skills which may be required based on the definition of the project. Sources of potential firms include:

1. Past firms with whom you or your staff members have worked or are familiar.
2. Professional associates who can make recommendations from those firms with whom they have undertaken similar projects.
3. Lists from professional organizations.
4. Lists of professional cards in publications of national or regional circulation.

In any case, keep the list to a manageable number. Remember that the cost of proposing is substantial. It is not fair to the consultant firms if the list is so long that they have little chance of success. For a small project, two or three firms should be adequate, while for a larger one, more firms or consultant teams may be appropriate.

3. Screen the Candidates

It is generally desirable to limit the number of detailed proposals to a maximum of five. After preparing a list of qualified firms, two courses of action are available. For a list of up to five firms, send them the definition of the project and ask them to respond with a proposal. If there are more potential firms, a second course of action is desirable. All firms are asked to submit an expression of interest and include the following information:

1. List of past experience with dates of projects of a similar nature.
2. Location, size and description of firm.
3. References who have personal knowledge of previous performance.
4. Details of consultant’s staff with resumes of key personnel and the name and resume of the person who will be in charge of the project.
5. A statement that the firm has the capability and manpower to complete the project on time.
6. Additional information relevant to the particular project.

This process serves to reduce the number of potential firms which may then be asked to submit a proposal.

It is desirable to state for the candidate firms the criteria for selection. These firms will be interested in what weight is put on proposal content, the interview, location of the firm, staffing for the project and other pertinent questions.

4. Select a Qualified Firm

After receiving and evaluating the letters of interest and/or proposals, one or more of the firms can be invited for an interview. It may be desirable to form a committee consisting of those persons who will be involved in the project to evaluate the firms at an interview. The committee should use the rating system previously established to judge the presentation and proposal. Some of the following factors should be considered:

1. Experience
2. Ability to meet time schedules
3. Personnel
4. Work load
5. References
6. Creativity
7. Reputation
8. Any factors peculiar to the project being considered

Following the interview, the firms should be ranked 1, 2, etc. in order of preference.

5. Finalize the Scope of the Project and Negotiate the Agreement

Meet the number one ranked firm and review in detail the scope of consultant services. After this review it may be necessary for the consultant to revise the original proposed scope of services to meet the specified requirements and prepare a formal proposal and agreement with related charges and fees. Depending on the nature of the work to be performed, one of several fee arrangements can be selected.

1. Lump sum
2. Cost plus a fixed fee
3. Salary cost times a multiplier
4. Time and materials
5. Percentage of construction cost

If the proposal and price meet your needs, proceed to finalize the agreement. If the formal submission is not satisfactory, additional negotiations and classification may be necessary.

If it is not possible to agree on the scope and price with the number one firm, so notify this firm and proceed to contact the number two firm. Most often a satisfactory agreement can be reached with the number one or two firm.

It is good business and professional practice to communicate your choice to all firms who have responded. It is helpful to the firms not selected if you state the reason for your selection. Notification needs to be made as soon as possible after the selection.

Some Additional Factors to Consider

1. The size of a consulting firm or how long it has been in business may not be criteria of quality. A young firm with a solid background of experience and ability should not be discounted because of smallness or the number of years in business.
2. Do not prepare a form letter and distribute it to a large mailing. Many consultants, when they receive such a mailing, assume that the time and expense of pursuing the work may not be worth the effort.
3. If the prospective client has used a consultant previously and had good experience with him and wishes to retain the firm again, it is not fair to other consultants to ask them to prepare a proposal and come for interviews when there is little or no possibility they will receive the assignment.
4. If interviews are scheduled, give the consultant enough time to present his credentials and depth and understanding of the project. This requires approximately 20 to 30 minutes. An additional 15 to 20 minutes should be allotted for committee questions and discussions.
5. After work has commenced, select someone within the client’s organization to be in charge of and coordinate the consultant’s activities.
6. Set up an account for the prompt payment of consultant’s invoices. Long delays in receiving payment can impose an unfair hardship on the consultant.
7. Resist the desire to ask the consultant for services not within the scope of work of the project. It can be embarrassing and costly for the consultant when asked to do additional unpaid work.
8. Give the consultant as much advance warning and background before appearing before groups, such as Boards and Commissions, press conferences and citizens groups. The more he/she knows about such meetings in advance, the better he/she is able to prepare and give the entire project and the client a favorable impression.
9. Consultant selection should be based on qualifications, experience, competence and fee without emphasis on any one factor to the exclusion of others. The objective is to achieve a balance of all elements to produce the best result.