Terms of Reference Procurement Professionalization Activity Senior Project Manager for Procurement Management Information System Introduction
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1 Terms of Reference Procurement Professionalization Activity Senior Project Manager for Procurement Management Information System 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 Request 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 which 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 ). 1
2 With this Request for Qualifications, MCA-Indonesia is seeking a senior level consultant to assist LKPP procure, develop, implement and manage the Procurement Management Information System (PMIS) and e-catalog (e-cat) systems to support all aspects of the Procurement Modernisation Project, including the monitoring policies and procedures during the start-up period with options to extend through the full five-year term of the Compact if needed. Scope of Work The Procurement Management Information System Activity is the procurement, development, implementation and management of procurement IT systems that both, support the procurement modernization program and integrate with LKPP s national e-gp (electronic Government Procurement) program. The initial focus of the PMIS activity is: The delivery of state-of the art, user-friendly, and secure electronic catalog system to procure routine goods and services, in conjunction with the Framework Agreements subactivity of the project (E-Catalog activity) The delivery of a Data Warehouse, Reporting and Spend Analysis system The delivery of an appropriate Contract Management Module The delivery of appropriate procurement automation technologies as agreed with LKPP The objective of the PMIS activity is to establish a suite of systems, including e-catalog, integrated with the LKPP e-gp program to; support a core group of at least 500 procurement professionals, develop the procurement capacity of others serving supporting roles in the public procurement system, and pilot, test and refine prior to national rollout within the LKPP e-gp program To achieve the objectives will require an implementation strategy that involves numerous system development providers and contracts that need to be procured and managed. The purpose of this consultancy is to provide LKPP the technical support to develop and manage the implementation of the entire PMIS activity The PMIS activity will also work to develop the capacity of other professionals who have a role in the public procurement IT systems including financial managers, technical experts, project managers, LPSE s and auditors. The PMIS activity will also be required to develop training programs and materials to be integrated within the HRD, ULP and Frame-Agreement sub-activity, LPSE and LKPP support functions. Tasks The consultant s assignments shall include supporting LKPP in the following tasks: 1. Develop the procurement, development and implementation strategy for the PMIS and e- Catalog activities 2. Develop and deliver the technical support and expert assistance to the procurement teams during the entire procurement process for selection of the vendor(s) to provide the PMIS & e-catalog system components 3. Develop Terms of Reference (TOR) for service providers to be procured to deliver the PMIS & E-Catalog systems and implementation activities: 2
3 4. Establishing a Procurement Classification system to support the PMIS, and Frame Agreements activity, including but not limited to; Implementation of the Procurement Classification Work-plan Development of training and implementation materials required for LKPP and integration with HRD activity Functional Requirement Documents to develop software changes to applicable software modules Terms of Reference for implementation services as required 5. Provide value-add perspectives or advisory services that are important to decision making, on best-practice functionality, procurement, development and deployment of procurement automation solutions within the context of the PMIS and E-Catalog subactivities 6. Preparation of Functional Requirements documentation arising from PMIS sub-activities, for, including but not limited to; Contract Management Modules General Procurement Plan Modules Procurement Classification Modules E-Bidding & Reverse Auction Modules 7. Assist LKPP manage the PMIS implementation program, including but not limited to; Testing programs for each module Integration programs with LKPP e-gp Integration programs with ULP FMIS systems 8. Ensure stakeholders understand role and responsibilities of procurement professional 9. Assist LKPP manage the performance of MCC-funded consultants implementing the PMIS and e-catalog activities 10. Ensure coordination within LKPP e-gp on implementation of the Procurement Modernization Program 11. Assist LKPP organize and co-ordinate the PMIS Steering Committee of LKPP and MCA-I 12. Coordinate with, lead and mentor the National Advisor for the PMIS Program 13. Ensure coordination among stakeholders participating in the program 14. Provide support to ensure compliance with the terms and conditions set out in the MCC Compact and Program Implementation Agreement (PIA) including the Monitoring and Evaluation targets in Annex III of the Compact and the Assessment Requirements in Schedule 4 of the PIA and MCC gender policies 15. Ensure maintenance of organized project files 16. Other tasks may be assigned as it relates to the scope of this Consultancy Deliverables Inception Report that provides a brief assessment of current status of PMIS activity and the strategy to have the PMIS Data-warehouse activities moving quickly in response to urgent demands of the Procurement Modernization Project, and LKPP. Trip Reports & Steering Committee progress reports that provide: a) updates on the implementation of the PMIS and E-Catalog activities, b) comments on issues that need to be considered or addressed, c) evaluation of the implementation of the PMIS and E- 3
4 activities and d) recommendations to address issues and to improve the structure and implementation of the PMIS and e-catalog activities Functional Requirements Documents as needed to support the procurement, development & implementation of the PMIS and e-catalog activities Terms of Reference as needed to support the procurement, development & implementation of the PMIS and e-catalog activities Testing Plans & Traceability Matrices as needed to support the procurement, development & acceptance of the PMIS and e-catalog modules as they are delivered to the project Project Implementation and Management Work-plans as needed to support the procurement, development & acceptance of the PMIS and e-catalog modules as they are delivered to the project Training materials supporting of the PMIS and e-catalog as requested by LKPP and MCA- Indonesia. Final Reports: these reports will include the final observations and recommendations of the Consultant highlighting any additional analysis that may be required to ensure the overall advancement of the HRD and SP activities The deliverable schedule is as follows: Inception Report REPORT Trip Reports Steering Committee Reports Regular Progress Reports Final Reports EXPECTED DATE Within thirty days after the contract signing Within one week of a mission in Indonesia One week prior to the scheduled Steering Committee Meetings in Jakarta As requested by LKPP or MCA-Indonesia but not to exceed more than 6 reports annually Within two months before the end of the base and each option period Period and Place of Performance The Consultant will be expected to provide a minimum of six months service during the 12 months of the base year contract period and a substantial portion of the effort must be performed in Indonesia. The specific time periods will be agreed between LKPP and the Consultant. It is anticipated that a level of service equal to at least six months will be required during option periods one and two and will decrease for options years 3 and 4. The level of service will be subject to negotiation between the parties when the options are exercised. Qualifications Must have approximately 15 years or more of professional work 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 Bachelor level degree or equivalent in Business Administration, Economics, Finance, Public Administration, Supply Chain Management, Logistics or field relevant to tasks of this assignment is mandatory. 4
5 Training in, or practical knowledge of procurement Experience in setting up or using e-catalog systems for procurement or indefinite quantity and delivery procurement transactions for purchasing routine goods or services is required. Experience in establishing procurement classification system is desirable. Knowledge of software solutions or development, and their practical use for establishing data-warehouse, reporting and spend analysis for procurement is desirable. Knowledge of software solutions for establishing procurement information systems including Contract Management, Bidding, Evaluation and the Procure-to-Payment, is required. An understanding of public procurement in Indonesia or within East Asia is desirable. Experience must include positions of leadership Experience must include responsibility and duties that demanded oral and written communication skills and interaction with a wide variety of stakeholders to identify needs and achieve results Experience must include responsibilities and duties that required exceptional attention to detail, data quality, and accuracy of information Experience must include responsibilities and duties that required high ethical standards Experience in Indonesia is preferred Fluency in English (speaking, reading and writing) is required. 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 s reports and deliverable will be submitted to a designated point of contract with the National Office of Public Procurement (LKPP). 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 is made at the request of LKPP or MCA-I. - Airport tax associated with domestic travel-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 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). 5
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