24. GUIDELINES FOR CONSULTANCY ASSIGNMENTS

As approved by BOM in its 92nd meeting held on 23.9.1997

vide Circular No.13-3/97-Admn. dated 19.2.1998

1. Estimating the cost of consultancy: The cost estimates would comprise:-

i. Expenses: The estimates of expenses will take into account the following:-

a. Cost of mandays: This will be the product of the number of mandays the officer(s)/staff are likely to be employed and the rates prescribed for the purpose.

b. Usage of physical facilities and cost of physical inputs: Towards use of office utilities like computer, photo-copier, telcom facilities and such other equipments or facilities and also towards cost of physical inputs like consumables, stationery and other material. This may be estimated at 15% of item (a) above.

c. TA/DA : As estimated under the TA/DA rules including cost of air travel of non-entitled staff based on expediency/urgency of the assignment.

d. External Payment : Likely payment, if any, towards hiring of sub-consultants or other facilities, obtaining information/data etc.

e. Overhead cost including contingencies : 20% of item (a), (b), (c) and (d) above.

ii. Expertise Fee: This represents the fee for our expertise/knowledge base built up over the years. While the expertise fee may depend on the quantum and quality of the consultancy assignment, it may not normally be less than the total cost of mandays.

2. Manday Charges : The charges per manday (8 hours per officer until otherwise revised in accordance with these guidelines) be computed as follows :-

(Rs.)

a. Officer above the level of Director - 1100/-

b. Officer of the level of Director - 1000/-

c. Officer below the level of Director - 900/-

d. Officer of the level of Asstt. Director - 800/-

e. Officer of the level of PO - 700/-

f. Secretarial Assistants/Staff support - 400/-

g. Peon - 1[200/-]

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1 As fixed vide Circular No.NCDC:13-3/97-Admn. dated 27.8.2003

3. Concession to Cooperatives: While the above method of costing would generally apply for all consultancy assignments, in deserving cases of national/state-level cooperatives, a discount upto 10%, and for other cooperatives upto 20% of the total cost of consultancy may be allowed.

4. Honorarium to Officers/Staff engaged for Consultancy: The honorarium disbursable will be shared by the officers/secretarial staff involved in the consultancy in proportion to their “individual input”, which is the product of the number of mandays actually devoted by the officer/staff for the job and 60% of the rate of charge per manday as applicable to his/her category. The total amount of honorarium disbursable will be the sum total of the individual inputs, or 60% of the expertise fee whichever is less.

5. Terms of Payment by the Client Organization : 50% of the total consultancy fee will be payable by the client organization at the commencement of the consultancy; 35% after submission of draft report; and the balance 15% immediately after submission of final report.

6. Maintenance of Records of Mandays etc. : The officer entrusted with the job of consultancy will be responsible to maintain the record of actual mandays devoted by him and the secretarial staff, if any, engaged by him and all other relevant data including use of office facilities, inputs etc. as may be required of him. If more than one officer are entrusted with the job of consultancy, one of them may be designated as the “Key Officer”, who will not only coordinate the entire job but would also be responsible for furnishing all other details as above.

7. Selection of officers for Consultancy : While the officer(s) for consultancy jobs would be selected based on factors such as type and nature of job involved, expertise required, competence, feedback on past assignments etc., as far as possible, it may, in the interest of fairness and overall improvement of the professional competence of the organization, be ensured that the same officer(s) is/are not repeatedly engaged for similar jobs.

8. Residual Issues : The Managing Director will be competent to decide on all matters relating to consultancies including fixation of charges per manday for different categories from time to time; consultancy fee to be charged; terms of payment by client-organization; and disbursement of honorarium.

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