STATEMENT OF WORK BUSINESS ANALYST - PROCUREMENT/PMIS CLASSIFICATION. Procurement Modernization in Indonesia
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1 STATEMENT OF WORK BUSINESS ANALYST - PROCUREMENT/PMIS CLASSIFICATION Procurement Modernization in Indonesia INTRODUCTION The United States of America acting through the Millennium Challenge Corporation ( MCC ) and the Government of the Republic of Indonesia (the Government ) have entered into a US$600,000,000 Compact for Millennium Challenge Account assistance to help facilitate poverty reduction through economic growth in Indonesia through three projects: the Green Prosperity ( GP ) Project; the Community-Based Nutrition to Prevent Stunting Project; and the Procurement Modernization Project. The Government of Indonesia, acting through the Millennium Challenge Account Indonesia ( MCA- Indonesia ) intends to apply a portion of MCC funding to eligible payments under a contract for which this Call for Qualifications is issued pursuant to the Procurement Modernization Project. Any payments made under the proposed contract will be subject, in all respects, to the terms and conditions of the Compact and related documents, including restrictions on the use and distribution of MCC funding. No party other than the Government and MCA-Indonesia shall derive any rights from the Compact or have any claim to the proceeds of MCC funding. The objective of the Procurement Modernization Project is to achieve cost and efficiency savings on procured good, works and services, while assuring their quality satisfies the public need, and to achieve the delivery of public services as planned. These savings should lead to greater provision of goods, works and services to the economy that will positively impact economic growth. Further, the Procurement Modernization Project will help support the implementation of the legal and institutional reforms of Perpres 54 and Perpres 70, newly enacted Presidential Decrees on Procurement in Indonesia. These regulations require that permanent, independent procurement service units (ULPs or PSUs) be established through the government, at national and subnational levels. The most important next steps in the procurement reform agenda for Indonesia are to build the professional procurement workforce, create institutionalized roles and structures that provide sufficient authority to implement good practice, and to provide a career path to incentivize adherence to best practice. To this end, the MCC-funded Procurement Modernization Project will be implemented by the National Office of Public Procurement (LKPP) through two main activities: (1) Improving the procurement function by increasing the capacity and professionalization of the procurement function (the Procurement Professionalization Activity ) and (2) Supporting the development of procurement policies and procedures for public private partnerships ( PPPs ) and sustainability procurement (the Policy and Procedure Activity ). The Procurement Professionalization Activity includes the sub-activities to improve the Institutional Structure and Professionalization of ULPs. This will be conducted in two phases. The first phase, which is expected to encompass years one to three of the Compact Term, will support a subset of up to thirty (30) ULPs that will receive comprehensive institutional mentoring, extensive capacity development through formal training and technical mentoring and an automated procurement management information system ( Phase One ). The second phase will last for the balance of the Compact Term and will entail a scaling up of Phase One with an adjustment in design, if necessary, to yield the best results for the Project ( Phase Two ).
2 MCA-Indonesia is seeking an experienced Business Analyst - Procurement on a consultancy basis to complete the tasks of this scope of work. SCOPE OF WORK MCC s support for the Procurement Modernization Program in Indonesia is to be provided according to a phased approach. Phase I is a demonstration and learning phase, and Phase II will proceed by building on any successes and the lessons of Phase I. During Phase I, the aim of the program will be to assist the Indonesian government and LKPP to build professional skills, information technology capacity, and develop and demonstrate successful models for Procurement Modernization in achieving the objectives laid out for the program (i.e. achieving public sector savings while enhancing or maintaining the quality and value of procured goods and services.) Phase I, will therefore be implemented in such a way as to enable learning about (1) which institutional arrangements for ULP s and Frame Agreements are required to be successful in which contexts, and (2) which capacities, tools and information technology systems or uses, professional training, and/or control and support functions such as procurement audits or quality control are significant to the achievement of the objectives of the program. The information technology elements of phase 1 are an electronic catalog system and specific elements of a procurement management information system (PMIS). These systems require the establishment of a unified Procurement Classification System for the purposes of aggregated data collection, spend analysis, procurement planning and procurement category management. LKPP and MCA-I have established UNSPSC as the base, from which a GoI Procurement Classification Schema will be established for the program. GOAL AND OBJECTIVES The primary goal of this engagement is to work within the MCA-I / LKPP project team to establish the procurement classification schema and systems for use within the frame agreements, e-catalogue and throughout the program and classify the spend, and procurement plans of the ULP s and the budget units to which they are connected. The role will work closely with the Contract and Program Manager for these compact sub-activities, and the Steering Committee providing oversight of the compact deliverables. TASKS The Business Analyst Procurement is responsible for the development of a GoI Procurement Classification schema, based on UNSPSC, for the use within the procurement modernization compact between MCA-I and LKPP.
3 The Business Analyst Procurement will focus on the localization and finalization of a procurement classification system to support the ULP s, LKPP, the Frame Agreements, e-catalogue and the compact. The project will involve: Evaluation of the preliminary subsidiary schema derived from UNSPSC in previous phases against the spend of the Pilot ULPs in phase 1 of the program Evaluation of the preliminary subsidiary schema derived from UNSPSC in previous phases against the LKPP Frame Agreements Program Finalize the selection of the subsidiary schema, from the full UNSPSC schema, for use in the program Finalize the selection of the subsidiary schema, from the full UNSPSC schema, for use in the program Translation into Bahasa Indonesia Testing of the program schema against the General Procurement Plan of the budget units of the pilot ULP s Development of the methodologies, structured rules and data cleansing routines for the classification of the general procurement plans, transactions and vendor files applicable to each ULP, prior to inclusion within the Data-warehouse and Spend Analysis application developed for the compact. Communication and presentation of the schema and its logic to LKPP for use, by LKPP beyond the program boundaries. The Consultant shall perform the following tasks: 1. Final Subsidiary Procurement Classification schema in English and Bahasa Indonesia 2. Pilot ULP 2012 General Procurement Plan(s), classified according to the schema 3. Mapping files, structured rules and indexes applicable for classification 4. Training and walk-through documentation for the use of the classification schema 5. Presentation materials for LKPP in Bahasa Indonesia DELIVERABLES Inception Report that provides a work plan for undertaking the tasks. Monthly Progress Reports that provide: a) updates on the progress of the assignment; b) comments on issues that need to be considered or addressed; and c) recommendations to address issues. The reports will be based on the strategy and the work plan approved with the selected consultant. Final Report: This report will include the final observations and recommendations of the Consultant highlighting any additional analysis that may be required. The deliverable schedule is as follows: REPORT Inception Report Monthly Progress Reports EXPECTED DATE Within thirty days after the contract signing Within 10 days after the last day of each month
4 Final Report Within one month before the end of the Contract and each option period. consultancy All the reports should be English and should be presented in three (3) printed copies and one (1) soft copy. PERIOD AND PLACE OF PERFORMANCE The contract term will be for a 12 months base period plus four 12-months option periods. The work is expected to be full-time, 40 hours per week in Indonesia. The actual level of service for the option periods will be subject to negotiation between the parties when the option is exercised. QUALIFICATIONS The consultant must have the following mandatory qualifications: Undergraduate level degree or equivalent. Must have at least five years professional experience in tasks that are relevant to the activities in this assignment and that demonstrate that the consultant possesses the knowledge and skills to perform this assignment successfully. Proven experience in classification systems, market analysis, procurement, supply-chain management or similar disciplines. Fluency in English and Bahasa Indonesia (speaking, reading, writing) In addition to the above the following qualifications are desirable: An understanding of governance and public procurement issues in Indonesia or within East Asia Work experience in Indonesia PROJECT COORDINATION The Director of the Procurement Modernization Project at MCA-I, or his/her delegate will serve as the project manager however the consultant will collaborate closely with the Contract and Program Manager designing the business process and procedures for PMIS & e-catalog sub-activity, the LKPP team responsible for the implementation of Frame Agreements and the LKPP e-procurement team. SERVICES AND FACILITIES TO BE PROVIDED BY MCA-INDONESIA -Office space will be provided to the consultant while in Indonesia. -Airfare for domestic travel within Indonesia when travel requested by LKPP or MCA-I. -Airport tax associated with domestic travel
5 -Lodging expenses beyond the Jakarta metropolitan area when domestic travel has been requested by LKPP or MCA-I FACILITIES TO BE PROVIDED BY THE CONSULTANT Under the terms of a fixed priced contract, the Consultant will provide all other equipment and expenses as needed to perform the services except as specifically stated to be provided by MCA-I. This includes but is not limited to: computer, travel to Indonesia, lodging while in Jakarta, local transportation (except domestic airfare).
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