City of Palo Alto
Best Practices in
Consultant Management
December 8, 2025
ATTACHMENT B: BEST PRACTICES IN CONSULTANT MANAGEMENT
2 Best Practices in Consultant Management
• Comprehensive City study currently underway to ensure high quality services are delivered through the engagement of professional consultants
• City study extends beyond procurement and contract management processes for a more wholistic approach
o Strategically and flexibly leverage contracted consultants to perform studies to address priorities while building organizational capacity • Given a dearth of available best practice information in this area, Palo Alto’s work is leading edge
• Baker Tilly analysis meant to augment City study by recommending enhancements to certain aspects of the consultant management life cycle
3 Palo Alto Major Area of Consultant Focus
• Professional services related to studies, plans, and similar scopes of work
oMajority of Council priority objectives rely on consulting services to produce these studies
oMost work produced in this area requires specialized local knowledge and robust community engagement
oMany of the studies require expertise beyond that of in-house staff oStaff’s local knowledge and skill in managing contracts are essential components to ensure success in effective consultant management 4 Palo Alto Consultant Engagement Process and Areas for Reinforcement (October 22, 2025, Report 2507-4924)
Outsourcing
Precursors
Decision to
Outsource
Determine
Scope of
Services
Community
Engagement
Approach
Service Provider
Selection
Managing
Contingencies
Communication
and
Collaboration
Contract
Management
Performance
Management
Risk
Management
Closeout and
Evaluation
Baker Tilly Areas of Focus, Reframed (Life Cycle Phases) • Planning and Solicitation
o Determination of solicitation method (request for proposals or qualifications)
o Scope of service development, including approach to community engagement
o Strategic, targeted service provider selection
o Effective scope and fee discussions and negotiation of mutually agreeable terms and conditions
• Contract Administration and Management
o Facilitated communication and collaboration
o Contract closeout and evaluation
Professional services related to studies, plans, and similar scopes of work: Planning and solicitation phases
Recommendation 1: Leverage the use of
prequalification programs to create a stable of
consultants and subconsultants.
• Can include requirements for local
knowledge
• Can be based on professional service
specialty such as strategic planning or
economic/fiscal analysis
• Can include consultant, sub-consultant
pairings as a submittal option
• Can focus on area/degree of specialization
such as community engagement
• Selection should be based on demonstrated
competence, work history, etc.
• Can include negotiated hourly rates
Local
Knowledge
Professional
Service
Specialty
Professional
Service Sub-
specialty
Area of
Specialization
(Community
Engagement)
Professional services related to studies, plans, and similar scopes of work: Planning and solicitation phases
Recommendation 2: Use best practice procurement tools to develop strategic relationships with consultants.
• Can incorporate aspects of strategic plan goals and objectives (Strategic Procurement Planning)
• Can include formal processes to identify and contract with consultants based on strategic, longer-term relationships (Supplier Relationship Management)
• Can include supplier diversity and sustainability goals • Can incorporate elements of scope/opportunities for staff to participate in community engagement facilitation or other tasks to help build inhouse capacity, knowledge and knowhow
Professional services related to studies, plans, and similar scopes of work: Planning and solicitation phases
Recommendation 3: Use a
consistent task / milestone /
deliverable-based template
approach that clearly ties City’s
acceptance of task completion
to progress payments.
Recommendation 4: Ensure that
city-generated scopes of work
are consistently used in
consulting contracts.
Scope Item(s) Cost Proposal Alignment
Task 2: Community Engagement Cost of Task 2:
$25,000
Subtask 2a:
Conduct one community workshop
Cost of subtask 2a:
$7,500
Deliverable(s):
1. Workshop agenda materials
2. Memorandum of workshop
results
Review and Accept Deliverables:
A. Review draft memo of workshop
results and finalize
B. Accept final memo and
authorize payment
Subtask 2b:
Conduct one community survey
Cost of subtask 2b:
$17,500
Deliverable(s):
1. Survey
2. Analysis of survey results and
associated takeaways
Review and Accept Deliverables:
A. Review draft survey and survey
results and finalize
B. Accept final analysis of survey
results and authorize payment
Professional services related to studies, plans, and similar scopes of work: Planning and solicitation phases
Recommendation 5: Incorporate mutually
agreeable terms and conditions for resolving
professional disagreements or mediating disputes
in consultant contracts.
• Should discuss expectations during contract
negotiations
• Can include techniques such as Alternative
Dispute Resolution (ADR)
Professional services related to studies, plans, and similar scopes of work: Contract administration and management
Recommendation 6: Establish a regular meeting cadence with the consulting team’s project manager to facilitate efficient project completion and enhance collaboration and clarity in communication. • Should include short prescheduled check-in meetings every other week to discuss project/deliverable status, budget, challenges, and consultant performance
Professional services related to studies, plans, and similar scopes of work: Contract administration and management
Recommendation 7: Implement processes and
procedures to evaluate consultant performance.
• Should include performance-based discussions
during engagements
• Can include a structured framework, i.e., a
balanced scorecard approach
• Can incorporate community feedback