Usaid Local Enterprise Support Project (Usaid Lens)

USAID LOCAL ENTERPRISE SUPPORT PROJECT (USAID LENS)

REQUEST FOR PROPOSALS (RFP):

ESTABLISHMENT OF A RISK MANAGEMENT DEPARTMENT

FOR MICROFUND FOR WOMEN (MFW)

Modification #1

RFP Date of Issuance: / April 15, 2016
Due Date for Questions: / April 20, 2016

Submission of questions or requests for clarification in writing via email to by 16:30 Hours local time in Jordan.
Please note that inquiries and answers to inquiries will be shared with all registered Bidders.
Please do not contact any USAID LENS or AMC employees regarding this RFP. Contacting individual employees shall be cause for disqualification.
NO TELEPHONE INQUIRIES WILL BE ANSWERED.

RFP Modification #1 Date of Issuance: / May 4, 2016
Q&A Date of Issuance: / May 4, 2016
Deadline for Proposals: / May 19, 2016; Submission of proposals (including technical proposal and cost proposal) due by 16:30 Hours local time in Jordanvia email to. Emailed submissions must contain the subject line “USAID LENS – MFW Risk Management Project.”

1. PURPOSE STATEMENT

The purpose of this Request for Proposals (RFP) is to solicit proposals from prospective contractors to support FHI 360’s implementation of the USAID Jordan Local Enterprise Support (LENS) Project, funded by the United States Agency for International Development (USAID), Award No. AID-278-LA-14-00001. Under this RFP, USAID LENS solicits proposals from interested, qualified and eligible bidders to design, develop and establish a comprehensive Risk Management Department (RMD) within Microfund for Women (MFW).

This RFP is issued as a public notice to ensure that all interested, qualified and eligible organizations have a fair opportunity to submit proposals. The authorized USAID geographic code for this RFP and any resulting award is Code 937 (the United States, Jordan, and developing countries other than advanced developing countries[1]). Thus, the order of preference for this award is Geo Code 937, and the initial evaluation will only include bids from Geo Code 937 countries. If no firm in Geo Code 937 is deemed to be technically qualified, then offerors from Geo Code 935 (any area or country, but excluding any country that is a prohibited source[2]) will be considered. To be deemed technically qualified, bids must score 65 or aboveon the technical evaluation portion. This minimum score applies to all bids regardless of the Geo Code. Thus, if no bidder scores above 65 on the technical evaluation portion, there will be no awards from this RFP.If the selected offeror is within Geo Code 935, then contract award will be subject to approval by USAID of a Geographical waiver that FHI 360 will request.

2. BACKGROUND

The USAID Jordan Local Enterprise Support Project (USAID LENS) is a five-year project to encourage the long-term economic growth and development potential of underserved Jordanian communities. The project will help empower local communities to design and implement collaborative local economic development (LED) initiatives and will support the vitality and competitiveness of micro and small enterprises (MSEs) that are often at the heart of individual, family and community livelihood within vulnerable populations. In its inter-related activities, the project will work with public and private sector partners at the municipal, governorate and national levels to develop local environments conducive to investment and MSE growth.

USAID LENS is actively supporting the microfinance sector in Jordan to build its capacities, enhance its competitiveness, and increase the sector’s financial inclusion of different client segments to enhance their living standards through involvement in producing economic activities. Accordingly, USAID LENS is funding an initiative to support Microfund for Women (MFW) to establish a comprehensive Risk Management Department (RMD). The RMD shall reinforce MFW’s institutional capacity, provide enhanced supervision, and create an environment of discipline, thus ensuring efficient management of products and services.

Microfund for Women (MFW) is a non-profit organization registered under the Ministry of Trade and Finance, dedicated to empowering the entrepreneurial poor, especially women, to transform their lives through their own economic activities.

MFW seeks to dismantle the obstacles that prevent women from creating their own success and building better lives for their families by providing collateral-free loans to start or strengthen their own businesses. These businesses, though typically very small, enable borrowers to accumulate assets, create jobs for others and work their way out of poverty.

3. PROGRAM DESCRIPTION

Scope of Work: Establishing a Risk Management Department (RMD)

FHI 360 is seeking qualified offerors to design, develop and establish a comprehensive RiskManagementDepartment(RMD) within MFW.

The activity will be divided into two phases, which willoperate consecutively to achieve their respective goals.

Phase 1: Risk Assessment– conduct a comprehensive Risk Management Assessment of MFW based on world-wide best practice.
Phase 2: Establish theRisk Management Department (RMD)– design and develop RMD including all related tools and systems.

The winning Firm should be responsible for successful delivery of the project within eight (8) to twelve (12) months.

Specific Tasks and Deliverables

Phase I

No. / Tasks / Deliverables
1 / Study MFW current products and services, MFW's vision, mission, and organizational structure / Desk Review Report
2 / Review MFW's existing policies and manuals and existing audit systems / Feedback Report
3 / Conduct Legislation and Policy Analysis of the Jordanian legal status to ensure conformity of recommendations with local laws and regulations / A Gap Analysis Report to be presented
4 / Interview MFW executives, HR, Business Development, Credit /

Interview Sheet
Field Visit Report
Interview Outcome Report

5 / Conduct field visits to MFW’s 6 field offices around Jordan
6 / Interview stakeholders such as relevant personnel at "Tanmeyah" Jordan Microfinance Network, Ministry of Planning and International Cooperation (MOPIC), and all other involved entities
7 / Identify and prioritize risks / List of Risks, including MFW-specific risks, industry-inherent risks, and country risks (sorted by priority)
8 / Draft an Assessment Report including risk types, classifications, and scales (internal and external) / Risk Assessment Report, including risk category, key risk indicators, MFW risk tolerance, likelihood and severity, impact degree, and residual risk
9 / Develop a report of recommendations and best practices / Recommended Action Plan

*NOTE: before initiation of detailed work on all above deliverables, an outline of each deliverable per phase must be submitted and accepted by USAID LENS before initiation of work. All written deliverables are to be submitted in English.

Phase II

No. / Tasks / Deliverables
1 / Develop a framework for systematic risk management at MFW based on findings and recommendations. Develop an action plan to establish MFW's RMD. / Risk Management Framework and guidelines document.
Action plan for setting up the RMD
2 / Design a tailored system for MFW's RMD / Draft a list of risk management system's functions and specifications that best suits MFW.
Present appropriately tailored risk management system to MFW.
3 / Develop strategies and policies to measure and mitigate potential risks / RMD Policy and Procedure Manual, including mitigation and managing strategies, flow charts and process maps, market & liquidity risks, operational and credit risks, and risk management templates and forms
4 / Develop organizational hierarchy structure of RMD across MFW / Risk Management Administrative Manual including:
1)RMD internal structure and structure across MFW;
2)RMD team scope of work, titles, job descriptions, and delegations of authority (with respect to gender considerations);
3)salary scale (in line with MFW salary scale); and
4)RMD policies and procedures
5 / Develop Risk Management manual including team scope of work, job descriptions, delegations of authority (with respect to gender considerations)
6 / Develop Risk Management Policies and Procedures (gender considerations)
7 / Develop salary scale for RMD in coherence with MFW's salary scale
8 / Design Risk Management templates / Risk Management Template
9 / Recruitment of MFW's Risk Management staff (internal and/or external recruitment) / Develop job descriptions/required skills for at least two RMD staff
10 / Identify the specifications of the credit scoring system to be used by the RMD along with handover training. Define the qualitative and quantitative criteria to be used, their weights and measures customized as per MFW size and vision. Set the scoring calculation mechanism and the subsequent risk rating methodology. Train the concerned staff on utilizing the scoring tool into credit decision-making and other reporting and statistical purposes. / Qualitative and quantitative criteria
Scoring calculation mechanism and the subsequent risk rating methodology
Trainingon utilizing the scoring tool
11 / Identify the specifications of the suitable database or knowledge management system to be developed and/or purchased to best serve the RMD’s purposes / Assessment Report, includingMFW needs in relation to KMS,detailed specifications of KMS recommended to fit MFW needs.
12 / Incorporate RMD protocols into other MFW systems. Present and Test an interface for the RMD that functions well with MFW’s system, reporting, and auditing. / RMD interface
13 / Develop a contingency plan / First draft of Contingency Plan
14 / Develop M&E Plan in relation to the RMD(Gender considerations) / M&E Plan
15 / Train and Mentor Risk Management Manager, RMD team, and MFW staff on how to implement Risk Management system. / Risk Management System Training: At least seven (7) selected MFW staff are to be trained and mentored on the system including:
1)Uploading process of qualitative risk data;
2)Proper quantification of the data; using associated tools and templates;
3)How to meaningfully analyze and visualize qualitative and quantitative data using the dashboard functions; and
4)Generating and customizing necessary reports and graphs on both portfolio and client levels.
16 / Test and implement Risk Management system with staff / Risk Management System Testing including real-case assessment implementation
Pilot testing report
17 / Adaptation of the Knowledge Management System along with handover training / Handover Training
18 / Install the credit scoring system. Apply the system on at least ten (10) existing clients and five (5) new clients. Generate classified reports based on different credit score ratings. / System applied on an appropriate number of existing clients and new clients.
Classified reports based on different credit score ratings.
19 / Review implementation of Risk Management System / Final comprehensive feedback report covering the information above

4.SUBMISSION INFORMATION

4.1 Offerors Eligibility

This solicitation is open to all interested, qualified and eligible organizations. The authorized USAID geographic code for this RFP and any resulting award is Code 937 (the United States, Jordan, and developing countries other than advanced developing countries[3]). Thus, the order of preference for this award is Geo Code 937, and the initial evaluation will only include bids from Geo Code 937 countries. If no firm in Geo Code 937 is deemed to be technically qualified, then offerors from Geo Code 935 (any area or country, but excluding any country that is a prohibited source[4]) will be considered. To be deemed technically qualified, bids must score 65 or above on the technical evaluation portion.This minimum score applies to all bids regardless of the Geo Code. Thus, if no bidder scores above 65 on the technical evaluation portion, there will be no awards from this RFP.If the selected offeror is within Geo Code 935, then contract award will be subject to approval by USAID of a Geographical waiver that FHI 360 will request.

To be minimally eligible for funding, offerors must comply with the following conditions:

Organizations must be legally registered or otherwise authorized to conduct business in their country or countries of operation; Offeror must provide a copy of registration document
Organizations must have a DUNS number. Organizations without a DUNS number can register for one at the following website:
Organizations must submit their proposal in English.

4.2 Contract Type

FHI 360 anticipates awarding a fixed price contract.

4.3 Funding and estimated period of performance

The mechanism for funding will be a Fixed Price contract. FHI 360 will issue payment(s) based on submission and FHI360 acceptance of invoices and associated deliverables or measurable project milestones. Once an award is issued, it will include an invoicing schedule as well as a schedule of deliverables/milestones specified in the Scope of Work.

The subcontract is anticipated to commence in July 2016 and final deliverables are anticipated to be submitted within eight (8) to twelve (12) months of contract start date.

4.4 Proposal Submission Deadline

Proposals may be submitted at any time before 16:30 Hours local time in Jordan on the date specified on the cover page of this RFP. Submissions received after the deadline will not be considered.

4.5 Submission Method for Questions and Proposals

Submit Questions and Proposals electronically to . All questions and answers will be shared with all interested offerors.

Technical proposals and attachments may be submitted in Microsoft Word or Adobe PDF. Budgets must be submitted in Microsoft Excel.

The email subject line should read “USAID LENS – MFW Risk Management Project”. FHI 360 is not receiving paper applications for this RFP.

4.6 Review Process

Any proposal received in response to this solicitation will be reviewed strictly as submitted and in accordance with Section 4.8, Evaluation Criteria.

It is anticipated that the award will be made within 6 weeks after the submission deadline. Finalnegotiations and award will be managed by FHI 360.

4.7 Proposal Contents

Offerors will develop their proposals based on their understanding of needs, their prior institutional experience and their determination of the approaches that would be feasible and successful within the context provided above. In all cases, offerors shall clearly explain the rationale for the proposed approaches chosen.

Proposals should include submission of a technical proposal with attachments and a cost proposal.The Technical Proposal shall be straightforward and concise describing how the Bidder intends to carry out and satisfy the TASKS and DELIVERABLES described. No contractual price information is to be included in the Bidder’s technical proposal in order that it will be evaluated strictly on its technical merit.

The Technical proposal should be no more than20 pages (the 20-page limit does not include attachments). Proposals must remain valid for at least three (3) months. The format should include the following:

Part A: Technical Proposal

Organizational Information:
Organization’s legal name
Contact name
Contact person’s position
E-mail address
Telephone number
Link to public website

Capability Statement/Past Performance References: Not to exceed four (4) pages – Offerors are required to provide a one (1) page organizational overview – include year of establishment, brief history, products/services offered and how they relate to MFW RMD requirements. Offerors are required to provide three completed or current project profiles where the Offeror has delivered or is delivering similar services. Please describe how the profiled projects demonstrate past performance related to the Risk Management Department project. Particular attention will be paid to those performed in Jordan and the Middle East. Also include contact information for client references associated with these projects: company or organization, name, phone number and email.

Technical Approach: Mustinclude proposed implementation plan detailing all project activities for the duration of the project with corresponding timelines and resources.

Offerors are required to detail their training plan for MFW functional and technical staff to utilize the any provided systems efficiently. Different teams mustbe trained on the features that they are expected to use.

The Offeror must supply a comprehensive project plan detailing all project activities for the duration of the project with corresponding timelines and resources.

The Offeror must ensure that all the project lifespan from the strategy phase to the operate phase must not exceed twelve (12) months.

Personnel/Staffing: Names, CVs (not to exceed four pages), 2-3 sentence bios for potential field team leaders and essential personnel (including their experience on this type of work) and percentage of staff time of principals and managers on this activity. Please provide two professional references for each of the proposed staff, including contact information.

The Offeror must provide CVs for the following key resources (one person may fulfill more than one of the following roles):

A dedicated project manager who will be responsible for the maintenance of project plan and the delivery of project reporting. He/she will be the chief point-of-contact for this project for updates and issues. He/she will liaise with the MFW designated project manager.
Technical team lead, whom will manage the technical aspects of the RMD design and development tasks and deliverables

PART B: COST PROPOSAL

Detailed cost proposal for implementing each of the tasks and broken-down by deliverable that includes the following:

Proposed staff, rates, number of days needed to accomplish the work
Transportation and logistics costs
Equipment costs
Costs of workshops, trainings, meeting sessions with MFW staff and related materials/supplies

The detailed cost proposal (Annex A) should be accompanied with a budget narrative (Annex B), and supporting documentation that clearly describe how the budgeted amounts are calculated.
A brief narrative explanation and justification for each line item must be included in a separate section entitled “budget narrative” and include data to support actual costs and/or methodologies to support cost estimates. The budget narrative serves as justification for each cost included in a budget; should be presented in such a way as to be easily referenced from the budget; and should provide sufficient information so that FHI 360 may review a proposed budget for reasonableness. All projected costs must be in accordance with the organization’s standard practices and policies.
Budgets must be sufficiently detailed to demonstrate reasonableness and completeness. Offerors including budget information determined to be unreasonable, incomplete, unnecessary for the completion of the proposed project, or based on a methodology that is not adequately supported may be deemed unacceptable.
Budgets should be submitted in USD if offeror is based outside of Jordan; for offerors based in Jordan, budgets should be submitted in Jordanian Dinar (JOD) with USD equivalent.
Please indicate the inclusion/exclusion of any applicable taxes such as VAT.
Please include a completed and signed biodata form for any proposed staff named in the budget. See Annex C for FHI 360 template.
If indirect costs are proposed, offeror must provide a copy of current Negotiated Indirect Cost Rate Agreement (NICRA). As the prime award is still subject to 22CFR226, no non-NICRA indirect rates will be accepted. Offerors may include proportional operational costs as direct cost line items as long as a detailed allocation methodology is provided as part of the budget narrative and found acceptable by FHI 360.

Important Note: While FHI 360 anticipates awarding a fixed-price subcontract, the cost proposal template provided (Annex A) is a cost-detailed budget based on the deliverables. A cost-detailed budget is required to sufficiently demonstrate cost reasonableness and completeness.