Least Cost Selection (LCS)
In the previous section you learnt that FBS is used when the budget is fixed hence the consultant who has submitted the highest ranked proposal within the budget is selected.
Under LCS a minimum qualifying mark for quality is fixed and indicated in the RFP. Shortlisted consultants are requested to submit their proposals (technical and financial) in two separate envelopes. Consultant who has scored the required technical score with the lowest price is selected. LCS is not a substitute for QCBS because quality is to be ensured in LCS.
Where appropriate
You should adapt this method only for small assignments of a standard or routine nature wherein the intellectual component is minor.
Type of assignments for which method of selection is adopted
You should use LCS when the assignment involves:
- Simple audits
- Engineering designs or supervision of simple projects.
- Repetitive operations, maintenance work and routine inspections.