Quality-Based Selection (QBS)

Quality-Based Selection (QBS) is a consultant selection method that ranks competing firms on the technical quality of their proposals alone, then negotiates the contract and price with the highest-ranked firm, used where the quality of expertise matters far more than cost.

What is QBS?

QBS is chosen for assignments where getting the work right is critical and the cost of a poor outcome dwarfs the consulting fee, for example complex feasibility studies, sector reform advice, or the design of a major structure where downstream investment depends on the analysis. Shortlisted firms, usually from an eoi stage, submit technical proposals against the Terms of Reference (tor). The bank evaluates and ranks them on quality, methodology, key staff, and experience, without reference to price. Only the top-ranked firm's financial proposal is then opened, and the bank negotiates the contract with that firm. If negotiations fail, the bank moves to the second-ranked firm.

QBS is the quality-maximising end of the consultant-selection spectrum. Its balanced sibling is qcbs, which scores quality and price together; QBS deliberately removes price from the ranking so the best technical approach is not traded away for a lower fee.

Why QBS matters for bidders

QBS is the method where deep expertise pays off most directly, because price is not part of the ranking, so a firm with the strongest methodology and the best-credentialed team wins on merit. The winning behaviour is to invest the proposal effort entirely in technical excellence, the named experts, the soundness of the approach, and demonstrable comparable experience, rather than in price positioning. Because only the top-ranked firm negotiates fees, getting to first place is everything; a strong second place earns nothing unless the leader's negotiation collapses. Firms that spot QBS assignments early can decide whether their specialist strength justifies a serious bid or whether the assignment favours a better-credentialed competitor.

FAQ

When is QBS preferred over QCBS?

QBS is preferred for high-stakes, complex assignments where the quality of the work far outweighs its cost, so the bank does not want price to influence the selection of the consultant.

Is price considered at all in QBS?

Price is not part of the technical ranking. It enters only after the top-ranked firm is chosen, when the bank opens that firm's financial proposal and negotiates the contract.

What happens if negotiations with the top firm fail?

The bank ends negotiations and moves to the next-highest-ranked firm, repeating the process until a contract is agreed.