What is QCBS (Quality- and Cost-Based Selection)?

QCBS stands for Quality- and Cost-Based Selection. It is the default method for choosing a consulting firm on most development-bank projects, used when both the quality of the work and its cost affect value for money. Instead of selecting on price alone or quality alone, QCBS merges the two into a single ranked score.

The borrower, the government agency running the project, advertises the assignment, draws up a shortlist of firms, and issues a request for proposals (RFP) with terms of reference (ToR). Each shortlisted firm submits a technical proposal and a financial proposal in separate sealed envelopes.

1. The borrower advertises the assignment and invites expressions of interest (EOI).
2. Firms are assessed and a shortlist, usually a small number of firms, is drawn up.
3. The shortlisted firms receive the RFP, which states the terms of reference, the evaluation criteria, and the technical and financial weights.
4. Each firm submits a technical proposal and a financial proposal in separate sealed envelopes.
5. The technical proposals are evaluated and scored first, before any prices are seen.
6. Only firms that meet the minimum technical score have their financial envelopes opened; the rest are returned unopened.
7. The technical and financial scores are combined using the published weights, and the firm with the highest combined score is invited to negotiate the contract.

QCBS scores each proposal on two axes and then merges them. The RFP publishes a technical weight and a financial weight that always add up to 100 percent. Because quality drives the outcome on most assignments, the technical weight is usually the larger of the two, but the exact split is set in each RFP, so read it before you plan your bid.

The technical score reflects the firm’s experience, its methodology, and the qualifications of the proposed experts. The financial score is calculated from price: the lowest evaluated price normally receives the maximum financial score, and higher-priced proposals receive proportionally lower scores.

The combined score is the technical score multiplied by the technical weight, plus the financial score multiplied by the financial weight. Because the two weights total 100 percent, a strong technical proposal can outweigh a slightly higher price, which is the core reason QCBS rewards quality rather than the cheapest bid.

QCBS is the standard choice when an assignment is large enough, or complex enough, that both the quality of the consultant and the cost of the work matter to the result.

• The World Bank uses QCBS as the default consultant selection method under its Procurement Framework for most assignments of significant value.
• The Asian Development Bank applies QCBS across a broad range of consulting services.
• It suits assignments where the scope can be defined precisely enough to compare prices fairly, while quality still varies meaningfully between firms.

• Invest in the technical proposal first, because it usually carries the larger weight and is scored before price is opened.
• Clear the minimum technical score, or your financial envelope is never opened.
• Price to be competitive, not merely lowest; the lowest price earns the top financial score, but a small price gap can be recovered by a stronger technical proposal.
• Match your proposed experts and methodology directly to the evaluation criteria in the RFP.
• Read the published weights before you decide how aggressively to price.

The closest methods to QCBS are QBS and LCS, and the difference between them is how much price counts.

• QBS (Quality-Based Selection) leaves price out of the ranking and selects on technical quality alone, opening only the winner’s financial proposal. Banks use it when quality matters far more than cost.
• LCS (Least-Cost Selection) sets a minimum technical threshold and then picks the lowest price among the firms that pass. Banks use it for routine assignments where quality above the threshold adds little.
• QCBS sits between them, rewarding quality through its weight while still holding firms accountable on price.