DEVELOPMENT OF SMALL AND MEDIUM ENTERPRISE (SME) UNIT

REQUEST FOR PROPOSALS

USAID LOCAL ENTERPRISE SUPPORT PROGRAM (USAID LENS)

DEVELOPMENT OF SMALL AND MEDIUM ENTERPRISE (SME) UNIT

FOR NATIONAL MICROFINANCE BANK

RFP Date of Issuance: / January 18, 2015
Due Date for Questions: / January 27, 2015; Submission of questions or requests for clarification in writing via email to by 17:00 Hours local time in Jordan.
Deadline for Proposals: / February 18, 2015; Submission of proposals (including technical proposal and budget) due by 17:00 Hours local time in Jordanvia email to. Emailed submissions must contain the subject line “USAID LENS – SME Unit.”

PURPOSE STATEMENT

The purpose of this Request for Proposals (RFP) is to solicit proposals from prospective subcontractors to support FHI 360’s implementation of the USAID Jordan Local Enterprise Support Project, funded by the United States Agency for International Development (USAID), Award No. AID-278-LA-14-00001.

The USAID Jordan Local Enterprise Support Project (LENS) is a five-year project that supports small business growth and better economic planning to strengthen Jordanian communities against economic adversity. USAID LENS brings local governments, business owners and key community groups to collaborate together on initiatives that will boost economic development and create jobs in their communities. These initiatives will be focused on supporting the growth of micro and small enterprises (MSE) and inclusive of women, youth and other vulnerable groups.

FHI 360 is seeking a firm to provide technical assistance services for developing a small and medium enterprise (SME) unit for National Microfinance Bank.

This RFP is issued as a public notice to ensure that all interested, qualified, and eligible organizations – Jordanian and international – have a fair opportunity to submit proposals for funding.

PROGRAM BACKGROUND

National Microfinance Bank (NMB) is a Jordanian private shareholding, non-profit microfinance institution that finances income-generating projects for underserved segments of society – spreading a culture of entrepreneurship and microcredit. Founded in 2006, it operates 20 branches in 11 governorates and is growing. It provides an array of financial and non-financial products and services to more than 50,000 clients throughout the country.

As part of its mission to reduce poverty and to generate employment opportunities in Jordan, NMB will enhance its ability to support small and medium enterprises (SMEs) by establishing a specialized unit. Commercial banks do not consider them a priority and, unfortunately, exclude them from traditional banking services. Microfinance institutions serve these “missing middle” businesses. NMB supports approximately 450 SME and SME-ready businesses that represent approximately 9 percent of its portfolio but has not penetrated and served the market as it would like. An SME unit will benefit NMB by enabling it to fulfill its mission more effectively and clients by enabling them to receive better products and services to become more efficient and stable with the aim to reach sustainability.

OBJECTIVE

NMB currently supports SMEs but within a framework also used for its other non-SME clients. As such, it is not providing them with optimal, specialized products and services. Through a thorough assessment of internal resources and the development of a comprehensive strategy, an SME unit capable of reaching more SMEs and helping thembecome more efficient and stable will be created. It will promote the acceleration of broad-based economic development by furthering access to finance.

TASKS

The activities and tasks of the Firm will be divided into two phases: development andimplementation.

Phase 1: Development

Market research. The Firm will research the country’s SME market to identify needs and wants. It will research SME units worldwide to pinpoint best practices and features and to determine if and how to apply them in Jordan. It will provide NMB with a detailed study to be used to guide strategy.

Internal assessment. The Firm will assess NMB’s operational, organizational and technological infrastructure. It will scrutinize policies and procedures to gauge how they facilitate serving SMEs. It will evaluate the standards by which NMB assumes risk for its SME-related business. It will study roles, responsibilities and relationships within the organizational chart and will highlight gaps in human resources. It will understand how the management information system (MIS) manages and tracks the provision of loans. In sum, it will measure NMB’s overall ability to incorporate SME lending into its broader business model from operational, risk, staffing, IT and sustainability perspectives.

Products and services review. The Firm will review NMB’s products and services to verify if they meet SMEs’ needs and wants. If they do not, it will provide suggestions for redesigns to NMB.

Phase 2: Implementation

Plan provision.The Firm will provide a comprehensive plan for the development and implementation of a full-service SME unit.It will include an operational blueprint, credit assessment and risk management methodologies, financial projections related to the unit and organization’s sustainability, staffing needs, etc.

Manual creation. The Firm will create operational and organizational manuals based on findings from internal assessment. These will define company policies and procedures, standards for risk and staff roles, responsibilities and relationships, respectively.

Staff training. The Firm will train NMB staff on any and all developments related to the SME unit: customer service, operational procedures, products and services, etc.

DELIVERABLES

The Firm will be responsible for preparing and submitting the following deliverables:

Deliverable / Due Date
Phase 1: Development / [MONTH XX], 2015
Identify needs and wants within the country’s SME market.
Research and analyze SME units worldwide.
Present NMB with a detailed market study.
Scrutinize how NMB’s operational policies and procedures facilitate serving SMEs.
Evaluate NMB’s credit assessment and risk management methodologies.
Measure NMB’s ability to track increased business activity within its MIS.
Study NMB’s human resources infrastructure. Identify staff positions that need to be increased or created and define roles, responsibilities and relationships.
Review products and services.Propose redesigned solutions to NMB, if needed.
Phase 2: Implementation / [MONTH XX], 2015
Provide a comprehensive plan for the development and implementation of a full-service SME unit.
Create operational and organizational manuals, as needed.
Train staff on any and all developments related to the SME unit.

Expected Timeline and Location

[MONTH]: Conduct market research at the Firm’s office and in the field throughout Jordan

[MONTH]: Assess NMB’s operational, organizational and technological infrastructure at its offices throughout Jordan and at the Firm’s office

[MONTH]: Review products and services at the Firm’s office and in the field throughout Jordan

[MONTH]: Create a comprehensive plan at the Firm’s office

[MONTH]: Create manuals at the Firm’s office

[MONTH]: Train NMB’s staff at its offices throughout Jordan

SUBMISSION REQUIREMENTS

Proposals should include submission of a technical proposal and a cost proposal. Proposals must remain valid for at least sixty (60) days. To be considered, bidders must provide the following in English:

PART A: TECHNICAL PROPOSAL

  1. Organizational Information:
  2. Organization’s legal name
  3. DUNS Number
  4. Contact name
  5. Contact person’s position
  6. E-mail address
  7. Telephone number
  1. Description of Methodology: Not to exceed three (3) page narrative on the service provider’s methodology for executing the Proposed Approach/Objectives/SOW/Deliverables as described above.
  1. Timeline: A detailed timeline required to complete the project.
  1. Capability Statement: Not to exceed three (3) page narrative on the service provider’s capabilities to perform the scope of work indicating past experience in developing strategic plans for institutional capacity building. The service provider should include in an annex brief descriptions of previous projects implemented.
  1. References: A minimum of three (3) client references worked within the past two years on an activity that is similar to this Scope of Work. Include the contact information: company or organization, name, phone number and email.
  1. Staffing: Names, CVs (not to exceed 2 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.

PART B: COST PROPOSAL

  1. Detailed cost proposal for implementing the 2 Phases and broken-down by deliverable that includes the following:
  1. Proposed staff, rates, number of days needed to accomplish the work
  2. Transportation and logistics costs
  3. Costs of workshops, trainings, meeting sessions with NMB staff and related materials/supplies
  1. The detailed cost proposal should be accompanied with a budget narrative, and supporting documentation that clearly describe how the budgeted amounts are calculated.
  2. 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.
  3. 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.
  4. Budgets should be submitted in USD.
  5. Please indicate the inclusion/exclusion of any applicable taxes such as VAT.
  6. Please include a signed biodata formfor any proposed staff named in the budget. See Annex C for FHI 360 template.
  7. If indirect costs are proposed, offeror must provide a copy of current NICRA. If the offeror is using an allocation methodology to direct charge operational costs, a detailed explanation must be included within the budget narrative.

Important Note: The budget, while based on the deliverables, is a cost detailed budget and not fixed price.

EVALUATION CRITERIA

Bids will be evaluated and ranked by a committee on a best-value basis according to the criteria below. Only service providers able to provide all of the requirements listed above will be considered.

Selection shall be based on the following weighted categories:

No. / Criteria / Percentage
1 / Technical Approach
  • Comprehensiveness of proposal approach. Clarity and appropriateness of proposed activity.
  • Implementation plan and proposed timeline are realistic and include all proposed elements of activity.
/ 35%
2 / Past Performance
  • Previous successful experience implementing similar activities.
  • Experience working in Jordan and the Middle East.
/ 30%
3 / Personnel
  • Key personnel have appropriate level of qualification and experience to lead and implement project.
/ 15%
4 / Proposed Costs
  • Reasonableness of proposed budget based on scope of activities proposed.
  • Summary budget, detailed budget, and budget notes included.
/ 20%

NOTE: FHI 360 will not compensate the company for its preparation of response to this RFP nor is the issuing of this RFP a guarantee that FHI 360 will award a subcontract.

CONTRACT MECHANISM

FHI 360 is anticipated to award a fixed-price subcontract to the Offeror whose proposal will be evaluated based on the evaluation criteria described previously.

SUBMISSION INSTRUCTIONS AND DEADLINES

The key dates for this RFP process are shown below:

January 18, 2015RFP publicly advertised.

January 27, 2015Submission of questions or requests for clarification in writing via email to by 17:00 Hours local time in Jordan. Please note that inquiries and answers to inquiries will be shared with all applicants. Please do not contact any USAID LENS employees regarding this RFP. Contacting individual employees may be cause for disqualification. NO TELEPHONE INQUIRIES WILL BE ANSWERED.

February 18, 2015Submission of proposals (including technical proposal and budget) due by 17:00 Hours local time in Jordanvia email to. Emailed submissions must contain the subject line “USAID LENS – SME Unit.”

April 16, 2015Anticipated subcontract start date. Start date is subject to change.

TERMS AND CONDITIONS

Offerors are responsible for review of the terms and conditions described.

WITHDRAWALS OF PROPOSALS

Offerors may withdraw proposals by written notice via email received at any time before award. Proposals may be withdrawn in person by a vendor or his/her authorized representative, if the representative’s identity is made known and the representative signs a receipt for the proposal before award.

RIGHT TO SELECT/REJECT

FHI 360 reserves the right to select and negotiate with those firms it determines, in its sole discretion, to be qualified for competitive proposals and to terminate negotiations without incurring any liability. FHI 360 also reserves the right to reject any or all proposals received without explanation.

DUE DILIGENCE PROCESS

Any selected firm will be required to complete a Financial Pre-Award Assessment in order for FHI 360 to ascertain that the organization has the capacity to perform successfully under the terms and conditions of the proposed award. As part of the Pre-Award Assessment process the firm will also be requested to submit a financial audit report from the previous fiscal year. In addition, payroll records and other financial information may be requested to support budgeted costs.

CLIENT PRIOR APPROVAL

The selected offeror will be subject to funding agency approval before a subcontract can be awarded. Therefore, organizations are reminded that there may be delays for this process to be completed. In addition, should such approval not be given, this subcontract cannot be awarded.

DISCLAIMER

This RFP represents only a definition of requirements. It is merely an invitation for submission of proposals and does not legally obligate FHI 360 to accept any of the submitted proposals in whole or in part, nor is FHI 360 obligated to select the lowest priced proposal. FHI 360 reserves the right to negotiate with any or all firms, both with respect to price, cost and/or scope of services. FHI 360 has no contractual obligations with any firms based upon issuance of this RFP. It is not an offer to contract. Only the execution of a written contract shall obligate FHI 360 in accordance with the terms and conditions contained in such contract.

REQUEST FOR PROPOSAL FIRM GUARANTEE

All information submitted in connection with this RFP will be valid for three (3) months from the RFP due date. This includes, but is not limited to, cost, pricing, terms and conditions, service levels, and all other information. If your firm is awarded the contract, all information in the RFP and negotiation process is contractually binding.

OFFER VERIFICATION

FHI 360 may contact Offerors to confirm contact person, address, bid amount and that the bid was submitted for this solicitation.

FALSE STATEMENTS IN OFFER

Offerors must provide full, accurate and complete information as required by this solicitation and its attachments.

CONFLICT OF INTEREST

Offerors must provide disclosure of any past, present or future relationships with any parties associated with the issuance, review or management of this solicitation and anticipated award in or outside of Jordan.

Failure to provide full and open disclosure may result in FHI 360 having to re-evaluate selection of a potential vendor.

RESERVED RIGHTS

All RFP responses become the property of FHI 360 and FHI 360 reserves the right in its sole discretion to:

  • To disqualify any offer based on offeror failure to follow solicitation instructions.
  • FHI 360 reserves the right to waive any deviations by vendors from the requirements of this solicitation that in FHI 360's opinion are considered not to be material defects requiring rejection or disqualification; or where such a waiver will promote increased competition.
  • Extend the time for submission of all RFP responses after notification to all vendors.
  • Terminate or modify the RFP process at any time and re-issue the RFP to whomever FHI 360 deems appropriate.
  • FHI 360 reserves the right to issue an award based on the initial evaluation of offerors without discussion.
  • FHI 360 reserves the right to award only part of the activities in the solicitation or issue multiple awards based on solicitation activities.
  • FHI 360 will not compensate offerors for preparation of their response to this RFP.
  • Issuing this RFP is not a guarantee that FHI 360 will award a subcontract.
  • FHI 360 may choose to award a subcontract to more than one offeror for specific parts of the activities in the RFP.

Certification of Independent Price Determination

The offeror certifies that—

(1)The prices in this offer have been arrived at independently, without, for the purpose of restricting competition, any consultation, communication, or agreement with any other offeror, including but not limited to subsidiaries or other entities in which offeror has any ownership or other interests,

(2)or any competitor relating to (i) those prices, (ii) the intention to submit an offer, or (iii) the methods or factors used to calculate the prices offered;

(3)The prices in this offer have not been and will not be knowingly disclosed by the offeror, directly or indirectly, to any other offeror, including but not limited to subsidiaries or other entities in which offeror has any ownership or other interests, or any competitor before bid opening (in the

(4)case of a sealed bid solicitation) or contract award (in the case of a negotiated or competitive solicitation) unless otherwise required by law; and

(5)No attempt has been made or will be made by the offeror to induce any other concern or individual to submit or not to submit an offer for the purpose of restricting competition or influencing the competitive environment.

(a) Each signature on the offer is considered to be a certification by the signatory that the signatory—

(1)Is the person in the offeror's organization responsible for determining the prices being offered in this bid or proposal, and that the signatory has not participated and will not participate in any action contrary to subparagraphs (a)(1) through (a)(3) above; or