STRENGTHENING PERFORMANCE MANAGEMENT IN GOVERNMENT PROGRAM - PHASE II (SPMG-II)
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1 STRENGTHENING PERFORMANCE MANAGEMENT IN GOVERNMENT PROGRAM - PHASE II (SPMG-II) DOCUMENT SEEKING EXPRESSION OF INTEREST (EOI) FOR APPOINTMENT OF LONG TERM CONSULTANTS FOR STRENGTHENING PUBLIC FINANCIAL MANAGEMENT IN MADHYA PRADESH 1.0 Introduction: To build and expand on the achievements of SPMG Phase-I and to achieve desired targets in Strengthening Performance Management in Government (SPMG) Phase-II" is being introduced in Madhya Pradesh (MP). The programmes supported by the Department for International Development (DFID), Government of United Kingdom. Services of a consultancy team (Principal Consultant) are required to provide technical as well as management support to the Department of Finance (DoF) of Government of Madhya Pradesh (GoMP), which is also the implementing agency for this programme for undertaking public financial management reforms and for strengthening capacity for managing Public Private Partnerships (PPPs).Commissioner, Directorate of Institutional Finance within DoF will be the Executing Agency for coordination of the Programme. 2.0 Objective: Among India s 20 largest states, MP has the third lowest per capita GSDP. MP s per capita own revenue is much below the average of 20 larger states. Tax revenue as a percent of GSDP (8%) is slightly lower than the national average (8.3%). Per capita development expenditure of the State is much below the average of other states. Such fiscal indicators point towards the weak capacity of the state government to mobilise resources for development. The state has not yet been able to capitalise on India s improved growth in the liberalisation era. There is need for MP to identify and address the critical constraints to growth. While social sector spending has seen an upward trend in recent, the relatively lower growth of the economy has made it difficult for all sections to benefit from it. Recent spurt in economic growth is encouraging and needs to be sustained. Some positive developments in recent include the significant turnaround in fiscal indicators in revenue deficit and capital outlays. Its revenue deficit to GSDP ratio has seen an improvement of more than 6 percentage points between and MP has shown remarkable improvement in capital outlays which has increased by more than 5 percentage points during and , the highest across all states. MP has also managed to bring its fiscal deficit down from 3.7% of GSDP in to 2.63% of GSDP in However, with the economic recession and implementation of the 6 th Pay Commission recommendations, the fiscal deficit is likely to increase to 2.98% of GSDP in , which would still be within FRBM limit of 3%. Government of Madhya Pradesh has also made significant progress in administrative reforms and public service delivery. This includes treasury computerisation, comprehensive monitoring & evaluation of schemes, land record computerization, e-tendering, etc. However, a comprehensive administrative
2 reforms agenda is required to make the government more effective, efficient and accountable, both at the state and district level. While supply-side capacity development facilitates efficiency and effectiveness in service delivery, reforms enabling demand-driven approaches can foster greater accountability and responsive in public administration. Some of the key interventions on public financial management undertaken during Phase I of the Strengthening Performance Management in Government were: Development of State Medium Term Fiscal Framework and Medium Term Expenditure Framework (MTEF) for five departments Systems strengthened for better debt management CSDRMS installed, Debt Management Cell set up Integrated Financial Management Information System (IFMIS) Detailed Project Report and implementation initiated Up-dation of Budget Manual, Up-dation of Financial Powers Parts I and II, Treasury Code and Financial Code, Fundamental Rules and Pension Rules Audit Manual for Panchayat Raj Institutions in Madhya Pradesh developed & piloted Phase II of the Strengthening Performance Management in Government Programme seeks to further strengthen public financial management reforms and effectively implement policies for higher growth and private investment, strengthen accountability for effective public service delivery and respond to challenges of environment sustainability. With management and technical assistance, GoMP will seek effective implementation of systemic reforms in public financial management, improvement in long-term revenue and expenditure forecasting, strengthening linkages between departmental spending to performance indicators, improvements in monitoring of spending and delivery targets, increase in own-tax revenue, and strengthening financial accountability. 3.0 Scope of Work: The consulting firm will be expected to provide the following services: Broadening the coverage of Medium Term Expenditure Frameworks for ten more departments (total fifteen (15) departments) of the GoMP in a phased manner by incorporating elements of Performance Budgeting. This will include a strong element of capacity building & institutionalisation. Design and implementation of reforms for enhancing tax revenue which would involve technical studies, policy analysis, and implementation support for revenue generating departments including commercial taxes, registration, and transport. Carrying out VFM (value-for-money) audits for select departments and schemes with the following objectives: o Assess whether cost, quality and delivery considerations have been appropriately made in procurement of goods and services; o Assess whether the operational processes and controls laid down in that respect are efficient, whether there exists any issues in respect of the processes that causes any efficiency issues; Page 2 of 11
3 o Whether specific metrics existed for measuring the achievement of intended outcome of the expenditure; o Whether data exists to measure the actual outcome achieved and whether such measurement has been done from time to time; o Independent review of actual programme output data at various stages of performance with respect to benchmark set by programme administrators; o Identifying any causes of underperformance/opportunities for improvement; and o Identifying number of poor families benefitted by the program, etc. Support implementation of a Public Expenditure & Financial Accountability (PEFA) Assessment Roll out of audit para tracking system across Departments of the GoMP; Strengthening internal audit mechanisms through adoption and roll out of the risk based audit under the revised Audit Manual developed under SPMG; Formulate recommendations for strengthening of local fund audit; Technical support for establishing a Project Development Facility (PDF) in DoF for development and operationalization of PPP projects in different sectors like infrastructure, social etc; Formulate and implement recommendations for strengthening regulatory and institutional set up in DoF to facilitate private participation in infrastructure; Prepare a pipeline of projects in priority infrastructure and social sectors with detailed DPRs for selected projects and possible funding sources for the same; Assisting in preparation of Memorandum for the Central Finance Commission to be submitted by the State Government and development of strategy for implementation; Bi-annual Review of the Compliance of the provisions of the Madhya Pradesh Fiscal Responsibility and Budget Management Act (FRBMA) as an Independent Agency; Other tasks to be assigned by GoMP from time to time with mutually agreed need based inputs; The Principal Consultant will also: Provide coordination and oversight support to DIRECTORATE OF INSTITUTIONAL FINANCE for the entire program and support in preparation of required reports for submission to DFID/GoI; Provide continuing support towards completion and finalisation of any report and documentation as a follow up of tasks under SPMG; Arrangements making the outcomes visible and transparent; To develop and prepare terms of reference for appointment of other consultants, EOI, RFP, assist in evaluation and appointment of consultants; and Submission of required reports in bilingual (English and hindi) as per requirement, etc. 4.0 Composition of the Core Team and expertise required: Page 3 of 11
4 The Long Term Consultancy organisation will be required to provide a core team of consultants and further short term mobilisation of subject specific specialists and necessary support staff on a need basis. The core team of experts and specialists likely to be required are as follows: i. Program Manager ii. Deputy Program Manager iii. Public Financial Management Specialist(s) iv. MTEF Expert(s) v. Revenue Administration Specialist(s) vi. Management Information System Specialist(s) vii. Internal Audit specialist(s) viii. PPP Specialist(s) No. Key Personnel Minimum Qualification Experience i. Program Manager Master s degree in Economics or Public Finance with MBA Minimum 10 ii. Deputy Program Master's degree in any discipline Minimum 20 Manager iii. Public Financial Master s degree in Economics or Minimum 10 Management Public Finance Specialist(s) iv. MTEF Expert(s) Master s degree in Economics or Minimum 10 v. Revenue Administration Specialist(s) vi. Management Information System Specialist(s) vii. Internal Audit specialist(s) Public Finance Master s degree in economics, finance, public policy or related field Post Graduate degree in IT or Engineering Advanced university degree in accounting, audit, business administration, commerce or related field; or professional accounting, auditing or any other like CA, CPA, CIA, CISA, CFE viii. PPP Specialist(s) MBA in Finance with other Professional degree like CA, Engineering, Law etc. 5.0 Time duration: Minimum 15 Minimum 15 Minimum 15 Minimum 10 The total project period will be 42 months. Initially, it would be for a period upto March 2014 with a possible extension for a further period of 24 months i.e. upto March 2016 subject to satisfactory progress reported by a mid-term evaluation. The review will incorporate modification, abandonment or inclusion of activities based on progress and emerging requirements. 6.0 Submission of EOI and criteria for selection: The EOI must be submitted in the attached application form as per the instructions provided.. Bulky submissions will carry a negative weight in evaluation. Page 4 of 11
5 The EoI submissions from the organisations meeting the following qualifying criteria will only be considered for evaluation: 1. Minimum 10 in business 2. Turnover: Income from consultancy services should be at least Rs. 10 crore per year for last 3 i.e , and The EOIs submitted by firms meeting the above qualification criteria would be evaluated on the basis of the following criteria: No. Particulars Max. Marks I. Past Experience of the firm 50 a. Number of of experience 5 (Qualifying number of in business: 10 ) as on 31 st March, 2012 i. Experience of 10 and above 5 b. Experience in undertaking Long Term Consultancy 15 assignments (more than 2 period) i. No. of assignments between 1 to 2 5 ii. No. of assignments between 3 to 5 10 iii. No. of assignments more than 5 15 c. Experience of working with State Governments in India as 15 Long Term Consultant in the relevant field. Duration of each assignment should be minimum 6 months. i. Experience with 1 to 3 State Governments in India 5 ii. Experience with 4 to 6 State Governments in India 10 iii. Experience with more than 6 State Governments in India 15 d. Experience of working in Public Financial Management / 15 Governance Reforms Programs in India i. Experience with 1 to 3 programs in India 5 ii. Experience with 4 to 6 programs in India 10 iii. Experience with more than 6 programs in India 15 II. Experience of Key Personnel 40 Core Team member Qualification Experience i. Program Manager ii. Deputy Program Manager iii. Public Financial Management Specialist(s) iv. MTEF Expert(s) v. Revenue Administration Specialist(s) vi. Management Information System Specialist(s) vii. Internal Audit specialist(s) Page 5 of 11
6 No. Particulars Max. Marks viii. PPP Specialists Total III. Financial Strength of the Consulting Firm 10 a. Turnover figure for Last three Years 5 Qualifying turnover: Income from consultancy services should be at least `10 crore Average turnover for 3 ( , & 11-12) i. More than `10 crore and up to ` 25 crore 2 ii. More than ` 25 crore and up to ` 50 crore 3 iii. More than `50 crore 5 b. Average Net Profit before tax for 3 5 ( , & 11-12) i. Up to `3 crore 3 ii. More than `3 crore 5 Sub-Committee for selection of Consultants will decide criteria for short-listing of consulting firms. 7.0 Evaluation of Application: 7.1 DIRECTORATE OF INSTITUTIONAL FINANCE would open the Applications on any working day after Application Due Date for the purpose of evaluation. 7.2 Applications for which an acceptable notice of withdrawal has been submitted by an applicant shall not be opened. 7.3 DIRECTORATE OF INSTITUTIONAL FINANCE would subsequently examine and evaluate Applications in accordance with the criteria set out. 7.4 DIRECTORATE OF INSTITUTIONAL FINANCE reserves the right to reject any Application, if: a. at any time, a material misrepresentation is made or discovered; or b. the Applicant does not respond promptly and diligently to requests for supplemental information required for the evaluation of the Application. 8.0 Reporting: The consultant will report to Commissioner, Institutional Finance for contract related matters. 9.0 Last date and place for submission etc.: 9.1 Application Due Date: Applications should be submitted before 1500 hours IST on November 16th, 2012 i.e. Application Due Date. DIRECTORATE OF Page 6 of 11
7 INSTITUTIONAL FINANCE may, in exceptional circumstances, and at its sole discretion, extend the Application Due Date by issuing an Addendum uniformly for all Applicants. 9.2 Late Applications: Any Application received after the Application Due Date and time shall not be accepted by DIRECTORATE OF INSTITUTIONAL FINANCE. Any such Application received after the Application Due will be returned unopened. 9.3 Bid Processing Fee (non-refundable): All interested parties are required to pay Rs. 25,000/- as Bid Processing Fee payable by demand draft favouring Commissioner, Directorate of Institutional Finance, Madhya Pradesh, Bhopal payable at Bhopal EOI document can be obtained by post / courier upon a written request accompanied by the cost of the document of ` 5,000/- in the form of Demand Draft favouring Commissioner, Directorate of Institutional Finance, Madhya Pradesh, Bhopal payable at Bhopal. Directorate of Institutional Finance shall not be responsible for any delay, loss or non-receipt of the EOI document sent by post courier Parties may also use EOI form downloaded from the website. While using the downloaded document, parties are required to submit cost of document of ` 5,000/- in the form of Demand Draft favouring Commissioner, Directorate of Institutional Finance, Madhya Pradesh, Bhopal payable at Bhopal. While submitting their application, cost of document and bid processing fee (both) is to be paid as prescribed. 9.4 Submission of Application: All applications shall be submitted in the manner and form as detailed in this EOI Document. Applications submitted either by facsimile transmission or shall not be acceptable. The envelopes shall clearly bear the following identification: APPLICATION FOR EXPRESSION OF INTEREST (EOI) FOR APPOINTMENT OF LONG TERM CONSULTANTS FOR STRENGHENING PUBLIC FINANCIAL MANAGEMENT IN MADHYA PRADESH" "To be opened by Sub-Committee only If the envelope is not sealed and marked as instructed above, DIRECTORATE OF INSTITUTIONAL FINANCE assumes no responsibility for the misplacement or premature opening of the contents of the Application submitted and such Application may at the sole discretion of DIRECTORATE OF INSTITUTIONAL FINANCE, be rejected. Page 7 of 11
8 9.5 Address for submission of Application: All applications should be submitted in a sealed envelope on the following address: Commissioner, Directorate of Institutional Finance, Madhya Pradesh, C-Wing, First Floor, Vindhyachal Bhawan, BHOPAL (MP), India Qualification and Notification: After the evaluation of Applications, DIRECTORATE OF INSTITUTIONAL FINANCE would announce a list of short listed Applicants who meet the Qualification Criteria on the Department's website. The Qualified Applicants would then be requested to submit a detailed Proposal in the form and manner to be set out in the RFP Document Conflict of Interest 10.1 DIRECTORATE OF INSTITUTIONAL FINANCE requires that Consultants provide professional, objective, and impartial advice and at all times hold the DIRECTORATE OF INSTITUTIONAL FINANCE's interests paramount, strictly avoid conflicts with other Assignment/jobs or their own corporate interests and act without any consideration for future work Without limitation on the generality of the foregoing, Consultants, and any of their affiliates, shall be considered to have a conflict of interest and shall not be recruited, under any of the circumstances set forth below: 10.3 Conflicting activities: A firm hired to provide consulting Assignment/job for the preparation or implementation of a project, and any of its affiliates, shall be disqualified from 5 subsequently providing goods or works or Assignment/job other than consulting Assignment/job resulting from or directly related to the firm s consulting Assignment/job for such preparation or implementation Conflicting Assignment/job: A Consultant (including its Personnel and Sub-Consultants) or any of its affiliates shall not be hired for any Assignment/job that, by its nature, may be in conflict with another Assignment/job of the Consultant to be executed for the same or for another Employer. A Consultant hired to prepare Terms of Reference for an Assignment/job should not be hired for the Assignment/job in question Conflicting relationships: A Consultant (including its Personnel and Sub- Consultants) that has a business or family relationship with a member of the DIRECTORATE OF INSTITUTIONAL FINANCE's staff who is directly or indirectly involved in any part of; (i) (ii) (iii) the preparation of the Terms of Reference of the Assignment/job, the selection process for such Assignment/job, or supervision of the Contract, may not be awarded a Contract, unless the conflict stemming from this relationship has been resolved in a Page 8 of 11
9 manner acceptable to the DIRECTORATE OF INSTITUTIONAL FINANCE throughout the selection process and the execution of the Contract Consultants have an obligation to disclose any situation of actual or potential conflict that impacts their capacity to serve the best interest of their Employer, or that may reasonably be perceived as having this effect. Any such disclosure shall be made as per the Standard forms of technical proposal provided herewith. If the consultant fails to disclose said situations and if the DIRECTORATE OF INSTITUTIONAL FINANCE comes to know about any such situation at any time, it may lead to the disqualification of the Consultant during bidding process or the termination of its Contract during execution of assignment No agency or current employees, relatives of employee of the DIRECTORATE OF INSTITUTIONAL FINANCE shall work as Consultant under their own ministries, departments or agencies. xxxxx Page 9 of 11
10 Enclosure Application Form (To be submitted in 2 Copies) Application Form to be considered for: Project Title MP Strengthening Performance Management in Government Phase II Please enter the information requested in the spaces provided. Application from separate legal entities of worldwide organisations or multi nationals is acceptable, provided the organisations are eligible to operate in competition with each other. Questions 1, 2, 3 & 4 must be answered for all the consortium partners and the lead partner should be clearly highlighted. Please note that the only additional information should be attached to this application form that is requested in paragraphs 5-7. In case of a consortium of firms, the statement should highlight the specific capabilities of each of the consortium member. 1: Your Details Your Name (Company or Individual) Parent Company (If Applicable) Your Address Contact Name Contact Telephone Number Address 2. Company Information Required Country of Registration (Companies) Nationality (Application from Individuals) Number of Employees (as appropriate) 3. Years in Business How many have you been in business? 4. Turnover: Page 10 of 11
11 What was your company s total annual turnover in Indian Rs Lakh for the last three? One year ago? Two ago? Three ago? What was your net profit in Indian Rs Lakh, for the last three? One year ago? Two ago? Three ago? 5. Capability Statement: Please attach a Capability Statement, of no more than TEN (10) A4 pages in Arial font size 11, which in addition to 5 above, illustrates your skills and experience of providing the service under this Notice. 6. CV(s) of Key Personnel Please provide, as an annex to this form, abridged CV(s) of no more than two pages (for each individual) in respect of key personnel who would be expected to provide the services listed in the Contract Notice and their relevant experience. 7. Statement on Conflict of Interest, if any Please provide a statement on any perceived conflict of interest as per the situations described under Clause 10. xxxxx Page 11 of 11
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