Dear Sir/Madam - fmdqotcplc.com · Dear Sir/Madam REQUEST FOR PROPOSAL FMDQ OTC PLC (“FMDQ”) is...

FMD …empowering the OTC markets

#1, Olosa Street, Victoria Island, Lagos, Nigeria. W: www.fmdqotc.com T: +234-1-2778771

Chairman: Dr. Sarah Alade, OON, Vice–Chairman: Jibril Aku, Managing Director/Chief Executive Officer: Bola Onadele. Koko

Directors: Bisi Onasanya, Peter Amangbo, Bola Adesola, Phillips Oduoza, Yinka Sanni, Oscar N. Onyema, OON, Bayo Adeyemo, Sadiq Mohammed, Muhammad Nda

A Securities and Exchange Commission Registered OTC Securities Exchange and Self-Regulatory Organisation FMD OTC PLCRC: 929657

May 4, 2015

Dear Sir/Madam

REQUEST FOR PROPOSAL

FMDQ OTC PLC (“FMDQ”) is an over-the-counter (OTC) securities exchange with a mission to

empower the financial markets to be innovative and credible, in support of the Nigerian

economy. This mission would be achieved by providing the secondary market with world-class

market governance and market development service to the benefit of market participants and

in support of the objectives of the financial services regulators.

FMDQ seeks to engage the services of a leading research Consultant with wealth of

experience in the study of financial markets to undertake the assignment of carrying out a

feasibility study on the introduction of OTC derivatives in the Nigerian financial market. We

therefore, invite proposals to provide the following services:

a. Feasibility study on the introduction of OTC derivatives in Nigeria

b. A recommendation based on the findings of the study

Interested Consultants must provide information confirming they are qualified to perform these services and should submit a proposal detailing the following, as a basis for selection:

− Demonstrable experience in similar studies − Experience of key members − Recommended transaction approach − Proposed fee structure − Indicative timetable

Selection will be based on the criteria described in the attached Request for Proposal (RfP).

We look forward to your prompt and favourable response and wish you good luck.

Yours faithfully,

FMDQ OTC PLC

http://www.fmdqotc.com/

REQUEST FOR PROPOSAL (RfP)

Feasibility Study on the Introduction of OTC Derivatives for FMDQ OTC PLC

Closing Date:

June 12, 2015 (16:00hrs)

RfP: Feasibility Study on the Introduction of OTC Derivatives for FMDQ OTC PLC Page 2 of 26

Table of Contents

SECTION 1: INTRODUCTION .................................................................................................................... 3

1.1 About FMDQ OTC PLC ................................................................................................................... 3

1.2 Background ................................................................................................................................... 3

SECTION 2: GENERAL CONDITIONS OF REQUEST FOR PROPOSAL (RfP) ................................................. 4

2.1 Confidentiality ............................................................................................................................... 4

2.2 Enquiries ....................................................................................................................................... 4

2.3 Disclaimer ...................................................................................................................................... 5

2.4 Definitions of Terms ...................................................................................................................... 5

SECTION 3: ENGAGEMENT TERMS .......................................................................................................... 5

3.1 Briefing .......................................................................................................................................... 5

3.2 Technical Proposal ........................................................................................................................ 6

3.3 Financial Proposal ......................................................................................................................... 7

3.4 Submissions & Receipt of Proposal ............................................................................................... 7

3.5 Evaluation ..................................................................................................................................... 8

3.6 Negotiations .................................................................................................................................. 8

SECTION 4: DATA SHEET ....................................................................................................................... 10

SECTION 5: TECHNICAL PROPOSAL - STANDARD FORMS & TEMPLATES .............................................. 12

5A. Technical Proposal Submission Form ......................................................................................... 13

5B. Consultants References .............................................................................................................. 14

5C. Comments and Suggestions of Consultants on the Terms of Reference Provided by FMDQ .... 15

5D. Description of the Methodology and Work Plan for Performing the Assignment ..................... 15

5e. Team Composition and Task Assignments .................................................................................. 16

5F. Format of Curriculum Vitae (CV) for Proposed Professional Staff .............................................. 17

5G.Time Schedule for Personnel ....................................................................................................... 18

5H.Tasks and Deliverable Schedule .................................................................................................. 19

SECTION 6: FINANCIAL PROPOSAL - STANDARD FORMS & TEMPLATES .............................................. 20

6A. Financial Proposal Submission Form .......................................................................................... 21

6B. Summary of Costs ....................................................................................................................... 22

6C. Breakdown of Fee Per Task/Phase in Scope Of Work ................................................................ 22

6D. Breakdown Of Remuneration Per Task ...................................................................................... 23

6E. Reimbursables Per Activity ......................................................................................................... 24

SECTION 7: TERMS OF REFERENCE ....................................................................................................... 25

7.1 Overview ..................................................................................................................................... 25

7.2 Project Scope .............................................................................................................................. 25

7.3 Scope of Responsibilities ............................................................................................................. 25

7.4 Key Deliverables .......................................................................................................................... 26

7.5 Project Timeline .......................................................................................................................... 26

7.6 Conduct of the Consultant .......................................................................................................... 26


SECTION 1: INTRODUCTION

1.1 About FMDQ OTC PLC

FMDQ OTC PLC (“FMDQ”) is a Securities and Exchange Commission (SEC) licenced over-the-counter (OTC)

market securities exchange and self-regulatory organisation (SRO), with primary focus on the OTC

markets – fixed income (money, repo, treasury bills and bonds), currencies and derivatives. Its strategic

intent is to promote market development and foster revolutionary changes in the Nigerian financial

markets.

Our Vision

To be No. 1 in Africa in the Fixed Income and Currency Markets by 2019

Our Mission

To empower the financial markets to be innovative and credible, in support of the Nigerian economy

[

Our Values Teamwork and Collaboration

Innovation

Integrity

Value-adding

1.2 Background

The absence of a robust financial market works against efforts to transform Nigeria’s abundant resources

to real economic gains. A key element of this transformation is the development of a deep financial

market, coupled with a dynamic derivatives market where products can be traded freely in a competitive

and transparent manner. Derivatives play a vital role in the development and growth of an economy

through its crucial role in supporting price discovery, competitiveness, risk management and market

efficiency. It helps attract capital flows, reduce cost of capital and deepen the market.

A review of the current Nigerian financial markets highlights that the markets are faced with challenges under four principal areas i.e. market participants , products, infrastructure and regulation. These challenges have inhibited the alignment of the market with international best practices and limited the growth and the ability of the markets to attain the full heights that will ensure Nigeria becomes a vibrant and globally accepted financial centre. The Nigerian financial market has often been described as ‘shallow and lacking in diversity’. The derivatives market is relatively underdeveloped as products have remained in their formative stages. In support of the various initiatives led by the Authorised Dealers (ADs) to deepen the Nigerian Foreign Exchange (FX) market, the Central Bank of Nigeria (CBN) released various guidelines to allow ADs offer these derivative products to their customers. Hedging products approved by CBN for banks to employ include: Foreign Exchange (FX) Forwards (Outright and Contract for Differences), FX Options, FX Swaps and Cross-Currency Interest Rate Swaps, yet the market remains very shallow with derivatives accounting for circa 23% of the total turnover in the FX market (FMDQ Turnover Report - 2014).


The interest rate derivatives markets present no better performance as there are barely any transactions consummated locally in this space. FMDQ, therefore in line with its vision has identified the development of the derivatives markets as a key strategic initiative required to deepen the Nigerian financial market and ensure its emergence as a global financial centre. In response to this need, FMDQ, over the next few years plans to identify, develop and launch various derivative products into the market. Derivatives are important financial market products that are central to today’s financial markets. Since

the Nigerian financial market is still nascent and seeking to graduate from frontier market status to

emerging market status, the entrenchment of proper market and governance structures, risk

management framework and investment in technology are of the utmost importance. A sound market

infrastructure will facilitate and promote healthy growth of the derivatives market. To achieve this

however, it is imperative that an initial study be conducted for the development of derivative products

in the financial market based on experience from developed and emerging markets.

FMDQ therefore seeks to engage the services of a Consultant to carry out a study on the introduction of

OTC derivatives on the FMDQ platform.

SECTION 2: GENERAL CONDITIONS OF REQUEST FOR PROPOSAL (RfP)

2.1 Confidentiality

This RfP and all related information, either written or verbal, which is provided to the respondent is

proprietary to FMDQ. It shall be kept confidential by the respondent and its officers, employees, agents

and representatives. The respondent shall not disclose, publish, or advertise this specification or related

information to any third party without the prior written consent of FMDQ.

2.2 Enquiries

Except as otherwise directed in this RfP, all inquiries, notices or attempts to obtain information of any

kind relating to this RfP shall be channeled in writing to either of the contact persons listed below:

Ms. Jumoke Olaniyan

Market Development

FMDQ OTC PLC

1, Olosa Street,

Victoria Island, Lagos

E: [email protected]

T: + 234 803 680 6180, 01-2771779

Ms. Kaodi Ugoji

Strategy & Corporate Communications

FMDQ OTC PLC

1, Olosa Street,



T: + 234 703 417 5890, 01-2778771

Enquiries in relation to this RfP will not be entertained after 16:00hrs on June 5, 2015. FMDQ will

respond to all clarifications sought regarding this RfP which it receives not later than five (5) working

days prior to the deadline for submission of proposal as stipulated below. FMDQ may respond to any

enquiry in its absolute discretion and the bidder acknowledges that they will have no claim against

FMDQ on the basis that its bid was disadvantaged by lack of information or inability to resolve

ambiguities.

mailto:[email protected]


RfP: Feasibility Study on the Introduction of OTC Derivatives on FMDQ OTC PLC Page 5 of 26

2.3 Disclaimer

This RfP does not bind FMDQ in any contract neither is it an offer of an assignment. FMDQ reserves

the right to accept or reject any or all the proposals received in response to this RfP without incurring

any liability to the affected Consultants. FMDQ shall not be bound to offer any reasons for such

acceptance/rejection.

2.4 Definitions of Terms

“Contract” means the contract signed by the parties “Data Sheet” means such part of the engagement terms used to reflect the details

of the assignment and requirements of the proposal “Day” means calendar day “Government” means the government of the Federal Republic of Nigeria “Engagement Terms” means the document which provides shortlisted Consultants with all

information needed to prepare their proposals “FMDQ” means FMDQ OTC PLC and is the party with which the selected

Consultant signs the contract for the services “Personnel” means professionals and support staff provided by the Consultant to

prepare the Proposal and if successful perform the Services or any part thereof

“Foreign Personnel” means such professionals and support staff who at the time of being so provided have their domicile outside the Federal Republic of Nigeria;

“Local Personnel” means such professionals and support staff who at the time of being so provided have their domicile inside the Federal Republic of Nigeria

“Proposal” means the Technical Proposal and Financial Proposal “RfP” means the Request for Proposal as prepared by FMDQ for the

selection of Consultants “Services” means the work to be performed by the Consultant pursuant to the

contract “Terms of Reference” the objectives, scope of work, activities and tasks to be performed,

respective responsibilities of FMDQ and the Consultant, and expected results and deliverables of the assignment

SECTION 3: ENGAGEMENT TERMS

3.1 Briefing

i. FMDQ will select a Consultant from those who respond to this RfP, in accordance with the

method of selection specified in the Data Sheet

ii. Consultants are invited to submit a Technical Proposal and a Financial Proposal as specified in

the Data Sheet for services required for the assignment named in the Data Sheet. The proposal

will be the basis for contract negotiations and ultimately for a signed contract with the selected

Consultant

iii. The assignment shall be implemented in accordance with the phasing indicated in the Data

Sheet, as such, the performance of the Consultant under each phase must be to FMDQ’s

satisfaction before work begins on the next phase

iv. The Consultant must familiarise themselves with local conditions and take them into account in

preparing their proposals


v. Please note that the costs of preparing the proposal and of negotiating the contract, including

probable visits to FMDQ, are not reimbursable as a direct cost of the assignment, and that FMDQ

is not bound to accept any of the proposals submitted

vi. It is required that the Consultant provides professional, objective, and impartial service and at

all times hold FMDQ’s interests paramount and strictly avoid conflicts with other assignments

or their own corporate interests. The Consultant shall not be hired for any assignment that

would be in conflict with their prior or current obligations to other clients, or that may place

them in a position of not being able to carry out the assignment in the best interest of FMDQ

vii. FMDQ requires that the Consultant observe the highest standard of ethics during the selection

and execution of the assignment. In pursuance of this policy, FMDQ defines, for the purposes of

this provision, the terms set forth below as follows:

a. “corrupt practice” means offering, giving, receiving, or soliciting of anything of value to

influence the action of any FMDQ Staff in the selection process or in contract execution;

and

b. “fraudulent practice” means a misrepresentation of facts in order to influence the

selection process or the execution of the contract to the detriment of FMDQ, and includes

collusive practices among Consultants (prior to or after submission of proposals) designed

to establish prices at artificial or non-competitive levels and to deprive FMDQ of the

benefits of free and open competition

The Consultant shall ensure that all personnel are aware of and do not contravene the provisions

on corrupt and fraudulent practices set forth above.

viii. FMDQ will reject a proposal for award if it determines that the firm recommended for award

has engaged in corrupt or fraudulent practices in competing for the assignment

ix. FMDQ reserves the right to require that a provision be included requiring the Consultant to

permit FMDQ to inspect their accounts and records relating to the performance of the

assignment and to have them audited by auditors appointed by FMDQ.

3.2 Technical Proposal

i. In preparing the Technical Proposal, the Consultant is expected to examine the documents

constituting this RfP in detail. Material deficiencies in providing the information requested may

result in rejection of a proposal.

ii. While preparing the Technical Proposal, the Consultant must give particular attention to the

following:

a. If the Consultant considers that it does not have all the expertise for a specific task in

the assignment, it may obtain some expertise by associating with individual

Consultant(s) and/or other Consultants or entities in a joint venture or sub-consultancy,

as appropriate. The Consultant may seek the participation of local/International

Consultants by entering into a joint venture with or sub-contracting part of the

assignment to other Consultants. This arrangement must be communicated to FMDQ.

b. It is desirable that the majority of the key professional staff proposed be permanent

employees of the firm or have extended and stable working relationships with it

c. Reports to be issued by the Consultant as part of this assignment must be in English

iii. The Technical Proposal shall provide the following information:


a. A brief description of the firm and an outline of recent experience on assignments of a similar nature. For each assignment, the outline should indicate, inter alia, the profiles of the personnel involved, date & duration of the assignment, contract amount and firm’s involvement

b. Details of at least three (3) case studies / prior work done where the Consultant has conducted studies for organisations. A minimum of two (2) of these case studies must be market development related

c. The proposal should also identify the ongoing/completed engagements in the last 24 months

d. The list of the proposed personnel by specialty, the tasks that would be assigned to each of the personnel, and their timing

e. Any comments or suggestions on the Terms of Reference f. A description of the methodology and work plan for performing the assignment (Section

5D) g. Any additional information requested in the Data Sheet

iv. The Technical Proposal shall not include any financial information

3.3 Financial Proposal

i. In preparing the Financial Proposal, the Consultant is expected to take into account the

requirements and conditions outlined in the RfP documents. Standard forms have been

provided as guides in order to facilitate comparison. It lists all costs associated with the

assignment, including

a. Remuneration for staff

b. Reimbursable expenses

If appropriate, these costs should be broken down by activity/tasks in phases. The Financial

Proposal should as much as possible follow these formats

ii. The Data Sheet indicates how long the proposals must remain valid for after the submission

date. During this period, the Consultant is expected to keep available the professional staff

proposed for the assignment. FMDQ will make its best effort to complete negotiations within

this period. If FMDQ wishes to extend the validity period of the proposals, the Consultant who

does not agree has the right not to extend the validity of their proposals.

3.4 Submissions & Receipt of Proposal

i. The original proposal (Technical Proposal and Financial Proposal) shall be prepared in indelible

ink. It shall contain no interlineation or overwriting, except as necessary to correct errors made

by the firm itself. Any such corrections must be initialed by the person(s) who sign the proposals

ii. The representative’s authorisation is confirmed by a written power of attorney accompanying

the proposal

iii. For each proposal, the Consultants shall prepare the number of copies indicated in the Data

Sheet. Each Technical Proposal and Financial Proposal shall be marked “ORIGINAL” or “COPY”

or “ELECTRONIC COPY” as appropriate. Regarding the Electronic Copy, the Financial Proposal

and Technical Proposal must be loaded on separate Compact Discs (CDs). If there are any

discrepancies between the original and the electronic copies of the proposal, the original

governs


iv. The original and all copies of the Technical Proposal shall be placed in a sealed envelope clearly

marked “TECHNICAL PROPOSAL,” and the original and all copies of the Financial Proposal in a

sealed envelope clearly marked “FINANCIAL PROPOSAL”. Both envelopes shall be placed into

an outer envelope and sealed. This outer envelope shall bear the submission address and other

information indicated in the Data Sheet

v. The completed Technical and Financial Proposals must be delivered at the submission address

on or before the time and date stated in the Data Sheet

vi. After the deadline for submission of proposals, the Technical Proposal shall be opened

immediately by the evaluation committee. The Financial Proposal shall remain sealed until all

submitted technical proposals are analysed

3.5 Evaluation

i. From the time the proposals are opened to the time the contract is awarded, if the Consultant

wishes to contact FMDQ on any matter related to its proposal, it shall do so in writing at the

address indicated in the Data Sheet. Any effort by the firm to influence FMDQ in FMDQ’s

proposal evaluation, proposal comparison or contract award decisions may result in the

rejection of the Consultant’s proposal

ii. Evaluators of Technical Proposals shall have no access to the Financial Proposals until the

technical evaluation is completed

iii. The evaluation and selection committee, appointed by FMDQ as a whole and each of its

members individually, evaluates the proposals on the basis of their responsiveness to the Terms

of Reference, applying the evaluation criteria and point system specified in the Data Sheet. Each

proposal will be given a technical score. A proposal shall be rejected at this stage if it does not

respond to important aspects of the Terms of Reference or if it fails to achieve the minimum

technical score to be decided by the Evaluation Committee

iv. The evaluation of the financial proposal will be based on criteria specified in the data sheet. The

Consultants achieving the highest combined technical and financial score will be invited for

negotiations

3.6 Negotiations

i. Negotiations will be held at the address indicated in the Data Sheet. The aim is to reach

agreement on all points and sign a contract

ii. Negotiations will include a presentation by the Consultant and discussion of the Technical

Proposal, the proposed methodology (work plan), staffing and any suggestions made by the

Consultant to improve the Terms of Reference. FMDQ and the Consultant will then work out

final Terms of Reference, staffing, and charts indicating activities, staff, logistics, and reporting.

The agreed work plan and final Terms of Reference will then be incorporated in the “project

Scope” and form part of the contract. Special attention will be paid to getting the most the

Consultant can offer within the available budget and to clearly defining the inputs required from

FMDQ to ensure satisfactory execution of the assignment

iii. Having selected the firm on the basis of, among other things, an evaluation of proposed key

professional staff, FMDQ expects to negotiate a contract on the basis of the experts named in

the proposal. Before contract negotiations, FMDQ will require assurances that the experts will

be actually available. FMDQ will not consider substitutions during contract negotiations unless


both parties agree that undue delay in the selection process makes such substitution

unavoidable or that such changes are critical to meet the objectives of the assignment. If this is

not the case and if it is established that key staff were offered in the proposal without confirming

their availability, the Consultant may be disqualified

iv. The negotiations will conclude with a review of the draft form of the contract. To complete

negotiations FMDQ and the Consultant will initial the agreed contract. If negotiations fail, FMDQ

will invite the Consultant whose proposal received the second highest score to negotiate a

contract

v. The contract will be awarded following negotiations. After negotiations are completed, FMDQ

will promptly notify other Consultants on the shortlist that they were unsuccessful

vi. The Consultant is expected to commence the assignment on the date and at the location as will

be agreed during negotiations

vii. Information relating to evaluation of proposals and recommendations concerning awards shall

not be disclosed to the Consultant who submitted the proposals or to other persons not officially

concerned with the process, until the winning firm has been notified that it has been awarded

the contract


SECTION 4: DATA SHEET

Ref Details 1.1 The name of the client is: FMDQ OTC PLC (“FMDQ”)

1.2 i. The name, objectives, and description of the assignment are: to provide to FMDQ OTC PLC

(“FMDQ”), consultancy services leading to the introduction of Fixed Income (FI) and Currency derivatives on the FMDQ platform

ii. Technical and Financial Proposals are hereby requested 1.3 The assignment shall include:

i. A comprehensive description of the Nigerian Fixed Income and Currency spot markets detailing

but not limited to market size, historic growth, market demand, macro-environmental issues,

market risks, impediments to growth, general industry trends, profitability etc.

ii. Identification of the critical requirements for the development of FI & Currency OTC derivatives

iii. An evaluation of comparable/model OTC derivatives markets evolution

iv. A recommendation of the sequencing for the enhancement of existing and introduction of new

OTC derivative products as well as the appropriate supporting market structure with attendant

threats and opportunities

v. A detailed implementation road map

1.4 The name, address and telephone number of the client’s officials are :

Ms. Jumoke Olaniyan

Market Development

FMDQ OTC PLC

1, Olosa Street,


E:[email protected]

T: + 234 803 680 6180, + 234-1-2771779

Ms. Kaodi Ugoji

Strategy & Corporate Communications

FMDQ OTC PLC

1, Olosa Street,



T: + 234 703 417 5890, 01-2778771

1.5 Proposals should be submitted in English

1.6 i. The estimated time required for completing the Consultant’s assignment will not be more than three (3) months

ii. Deliverables that are part of the assignment must be implemented /written in English 1.7 i. Taxes: Professional fees are subject to 10% Withholding tax, and 5% VAT.

ii. Consultants domiciled locally are to state cost in the Nigerian Naira (N), while Consultants domiciled outside Nigerian may state cost in US Dollars ($)

1.8 Proposals must remain valid for Ninety (90) days after the submission date

1.9 i. Proposals must be submitted no later than six (6) weeks from the date of this notification. The

sealed envelope must be submitted no later than June 12, 2015 by 16:00hrs

ii. Consultants must submit, 1 original, 5 copies and 2 electronic copies (on compact disc in PDF

format) of each proposal, all bound in a sealed envelope endorsed: Request for Proposal:

Feasibility Study on the Introduction of OTC Derivatives for FMDQ OTC PLC and bearing the

submission address. The closing date, company name and the return address must also be

endorsed on the envelope




iii. If a courier service company is being used for delivery of the bid document, the bid description

must be endorsed on the delivery note/courier packaging and must be delivered by the above

mentioned submission date and time

2.0 The proposal submission address is: FMDQ OTC PLC

1, Olosa Street, Victoria Island

Lagos, Nigeria

2.1 The number of points to be given under each of the evaluation criteria are:

Technical Proposal Points

Experience of the Consultants Related to the Assignment i.e. Feasibility Studies on Financial Market/Product Development

− Specific experience in financial and legal advisory in introduction of derivatives

− Project management and implementation

25

Adequacy of the proposed work plan and methodology in responding to the Terms of Reference

− Overall technical completeness of the proposal − Quality and appropriateness of the approach and methodology − Innovative approach to the assignment

25

Market Experience − Nigeria’s Financial Market Knowledge − Nigeria’s Financial Services Industry Experience − Africa and Emerging Market Experience

25

Qualifications and Competence of key staff for the Assignment − Adequacy of Experience for the Assignment − Functional Expertise of Key Team Members

25

Financial Proposal Points

Fixed Fee =40 x (Lowest Fixed Fee/Consultant’s Specific Quoted Fixed Fee) i.e. proportion of Lowest Fixed Fee divided by the Fixed Fee of the proposal considered

40

Variable Fee =60 x (Lowest Success Fee/Consultant’s Specific Quoted Variable Fee) i.e. proportion of Lowest Success Fee divided by the Variable Fee of the proposal considered

60

Final Score (Technical + Financial) – Percentage Weights %

Technical 75

Financial 25

2.2 i. Negotiations shall hold at the FMDQ address as indicated in the Letter of Invitation ii. Negotiations will commence only after the evaluation of the Technical Proposals.


SECTION 5: TECHNICAL PROPOSAL - STANDARD FORMS & TEMPLATES

5A. Technical Proposal Submission form

5B. Consultants References

5C. Comments and Suggestions of Consultants on the Terms of Reference

5D. Description of the Methodology and Work plan for Performing the Assignment

4E. Team Composition and Task Assignments

5F. Format of Curriculum Vitae (CV) for Proposed Professional Staff

5G. Time Schedule for Personnel

5H. Task and Deliverable Schedule


5A. TECHNICAL PROPOSAL SUBMISSION FORM

LOCATION, DATE

To: FMDQ OTC PLC To whom it may Concern: We, the undersigned, offer to provide the consultancy services for [Title of services] in accordance with your Request for Proposal dated [Date] and our Proposal. We are hereby submitting our Proposal, which includes this Technical Proposal sealed under a separate envelope and in electronic copy. If negotiations are held during the period of validity of the Proposal, i.e., before [Date] we undertake to negotiate on the basis of the proposed staff and methodology therein. Our Proposal is binding upon us and subject to the modifications resulting from Contract negotiations. We understand you are not bound to accept any Proposal you receive. Yours sincerely, Authorised Signature: Name and Title of Signatory: Name of Firm: Address:


5B. CONSULTANTS REFERENCES

Relevant Services Carried Out in the Last Five Years

That Best Illustrate Qualifications

Using the format below, provide information on each assignment for which your individual firms/entities, either individually as a corporate entity or as one of the major companies within an association, was legally contracted.

Assignment Name: Country:

Location within Country: Professional Staff Provided by Your Firm/Entity (profiles):

Name of Client: No of Staff:

Address: No of Staff-Months; Duration of Assignment:

Start Date (Month/Year): Completion Date (Month/Year): Approx. Value of Services (in Current NGN):

Name of Associated Consultants, If Any: No of Months of Professional Staff Provided by Associated Consultants:

Name of Senior Staff (Project Director/Coordinator, Team Leader) Involved and Functions Performed:

Narrative Description of Project:

Description of Actual Services Provided by Your Staff:

Firm/Entity’s Name:


5C. COMMENTS AND SUGGESTIONS OF CONSULTANTS ON THE TERMS OF REFERENCE

PROVIDED BY FMDQ

On the Terms of Reference:

1.

2.

3.

5D. DESCRIPTION OF THE METHODOLOGY AND WORK PLAN FOR PERFORMING THE

ASSIGNMENT

1.

2.

3


5E. TEAM COMPOSITION AND TASK ASSIGNMENTS

1. Managerial Staff

Name Position Task

2. Support Staff

Name Position Task


5F. FORMAT OF CURRICULUM VITAE (CV) FOR PROPOSED PROFESSIONAL STAFF

Proposed Position:

Name of Firm:

Name of Staff:

Profession:

Date of Birth:

Years with Firm/Entity: Nationality:

Membership in Professional Societies:

Detailed Tasks Assigned: Key Qualifications: [Give an outline of staff member’s experience and training most pertinent to tasks on assignment. Describe degree of responsibility held by staff member on relevant previous assignments and give dates and locations. Use about half a page.] Education: [Summarise college/university and other specialised professional certification of staff member, giving names of schools, dates attended, and qualifications obtained. Use about quarter a page] Employment Record: [Starting with present position, list in reverse order every employment held. List all positions held by staff, giving dates, names of employing organisations, titles of positions held, and locations of assignments. For experience in last ten years, also give types of activities performed and client references, where appropriate. Use about two pages.] Certification: I, the undersigned, certify that to the best of my knowledge and belief, these data correctly describe me, my qualifications, and my experience.

Date: [Signature of staff member and authorised representative of the firm] Day/Month/Year

Full name of staff member: ______________________________________

Full name of authorised representative: ________________________


5G. TIME SCHEDULE FOR PERSONNEL

(To be used as a guide only) weeks (e.g. in the form of a bar chart)

Name Position Reports Due/Tasks 1 2 3 4 5 6 7 8 9 10 11 12 Number of weeks Performed

Subtotal (1)

Subtotal (2)

Subtotal (3)

Subtotal (4)

Full Time:

Reports Due:

Activities Duration:

Signature

(Authorised representative) Full Name:

Title:

Address:


5H. TASKS AND DELIVERABLE SCHEDULE

A. Phases of Work

(To be used as a guide only) [1st, 2nd, etc. are weeks from the start of assignment.]

1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th etc.

Tasks and Deliverables (Work)

_______________

_______________

_______________

B. Completion and Submission of Reports per Task in the Scope of Work

Reports Date

(Examples given below are guides. Please indicate actual deliverable in your RFP)

1. Inception Report

2. (a) First Report

(b) Second Report

3. Draft Report

4. Final Report


SECTION 6: FINANCIAL PROPOSAL - STANDARD FORMS & TEMPLATES

6A. Financial Proposal Submission Form

6B. Summary of Costs

6C. Breakdown of Fee per Task/Phase in Scope of Work

6D. Breakdown of Remuneration per Task

6E. Reimbursable per Activity


6A. FINANCIAL PROPOSAL SUBMISSION FORM

LOCATION, DATE

To: FMDQ OTC PLC

To whom it may Concern:

We, the undersigned, offer to provide the consulting services for [Title of consulting services]

in accordance with your Request for Proposal dated [Date] and our Proposal (Technical and

Financial Proposals). Our attached Financial Proposal is for the sum of [Amount in words and

figures]. This amount is exclusive of the local taxes, which we have estimated at [Amount(s)

in words and figures].

This Financial Proposal is sealed under a separate envelope and in electronic copy. Our

Proposal shall be binding upon us subject to the modifications resulting from Contract

negotiations, up to expiration of the validity period of the Proposal, i.e., [Date].

We understand you are not bound to accept any Proposal you receive.

Yours sincerely,

Authorised Signature:

Name and Title of Signatory:

Name of Firm:

Address:


6B. SUMMARY OF COSTS

Costs Naira Amount(s) (To be used as a guide only)

Subtotal(s)

Taxes

Total Amount of Financial Proposal ______________________

6C. BREAKDOWN OF FEE PER TASK/PHASE IN SCOPE OF WORK (To be used as a guide only)

Activity No.:____________________ Activity No.:_____________________ Description:_____________________

Price Component Currency(ies) Amount(s)

Remuneration

Reimbursables

Miscellaneous Expenses

Subtotal ____________________________


6D. BREAKDOWN OF REMUNERATION PER TASK

Activity No._____________________________________ Name:______________________________

(To be used as a guide only)

Remuneration

Names Position Input1 Rate Amount

Partner/Project Director

Project Manager

Consultants

Other staff

Grand Total

___________________

1 Staff months, days, or hours as appropriate.


6E. REIMBURSABLES PER ACTIVITY

(To be used as a guide only)

Activity No:_________________________________ Name:_____________________

No. Description Unit Quantity Unit Price Total Amount

1. International flights Trip

_____________________________

2. Travel expenses Trip

3. Local transportation costs Day

4 Communication costs between

______________________and

_________________________

(Telephone etc.)

5 Drafting, reproduction of reports

Grand Total ________________


SECTION 7: TERMS OF REFERENCE

These Terms of Reference are to provide information to shortlisted firms to enable them to bid,

technically and financially for this project.

7.1 Overview

The primary objective of the project is to actualise the diversification mandate of the FMDQ GOLD

(Global Competitiveness, Operational Excellence, Liquidity and Diversification) agenda by increasing

our asset class offering.

7.2 Project Scope

This engagement covers the articulation of the processes needed by FMDQ in its bid to expand the

Fixed Income and Currency derivatives market in Nigeria. It is envisaged that the feasibility study will

among others include:

i. A comprehensive description of the Nigerian Fixed Income and Currency spot markets

detailing but not limited to market size, historic growth, market demand, macro-

environmental issues, market risks, impediments to growth, general industry trends,

profitability etc.

ii. The identification of the critical requirements for the development of FI & Currency OTC

derivatives

iii. An evaluation of comparable/model OTC derivatives markets evolution

iv. A recommendation of the sequencing for the enhancement of existing and introduction of

new OTC derivative products as well as the appropriate supporting market structure with

attendant threats and opportunities

v. A detailed implementation road map

The Consultant will recommend to FMDQ in its response to the RfP and in the Inception report, a

detailed workflow and timetable to achieve the delivery of these outcomes, (indicating key tasks and

accompanying deliverables), reflecting their inter-relationship.

It is expected that these outcomes will have actionable steps for the business to implement and

parameters to track the successful implementation of these steps. Expected outcomes from the

implementation of the processes should be aligned with the overall strategic objective of

diversification.

7.3 Scope of Responsibilities

The Consultant will have the primary responsibility of characterising the Nigerian Fixed Income and

Currency derivatives markets, the different stages and levels of development and their evolution path,

based on in-depth analysis and case studies. The Consultant will therefore be required to perform the

following activities:

i. Perform desktop research on Fixed Income and Currency segments using a variety of sources

to gain insights into their derivatives market

ii. Analyse each Fixed Income and Currency segment and group into sub-segments with similar

characteristics

iii. Provide detailed analysis of the different stages of development in the Fixed Income and

Currency derivatives market


iv. Characterise the evolution path of the different stages of development and situate Nigeria in

the context of the evolution

v. Track changes in the stages of development, growth catalysts and risks, their anticipated

impacts and mitigants

Develop realistic and over-arching aspirations and targets including top-level metrics

vi. Analyse the critical supporting enablers required for functional and effective Fixed Income and

Currency derivatives markets

vii. Develop a high-level action plan for FMDQ to create the supporting enablers for the Fixed

Income and Currency derivatives markets

7.4 Key Deliverables

These will include:

Inception report

Mid-term report and presentation to the Management Steering Committee (MSC)

Draft feasibility report and presentation to the MSC

A detailed market feasibility study that outlines the scope of the Nigerian derivatives

market, threats, opportunities and an action plan

7.5 Project Timeline

The successful Consultant shall be expected to commence work latest one (1) month after the contract

is awarded and FMDQ will prefer that the project be completed within a period of 12 weeks from the

commencement date.

7.6 Conduct of the Consultant

i. The Consultant will at all times be expected to carry out the assignment with the highest degree

of professionalism and integrity

ii. The Consultant will be expected to conduct their duties in an open and transparent manner to

FMDQ

iii. The Consultant will not under any circumstance, take any actions or be seen to be taking any

actions, which may hinder or prevent FMDQ from achieving its objectives

iv. The Consultant will not under any circumstances take any material decision pertinent to the

study without the express permission and written consent of an authorised representative of

FMDQ

v. The Consultant will not under any circumstances discuss or reveal any information regarding

this study or any other service conducted with FMDQ, without the express written permission

of an authorised representative of FMDQ

The Consultant shall carefully review these Terms of Reference and make any recommendations

regarding additional tasks deemed necessary in order to carry out FMDQ’s objectives most effectively.

Such recommendations can be passed onto FMDQ via the medium indicated in the Data Sheet.

The section which indicates the types of activities that the Consultants are to render should not be

considered as exhaustive. Recommendations (additions and changes) on the Terms of Reference from

Consultants received prior to submission deadline will be considered if appropriate. Subsequent

update(s) to the Terms of Reference will be communicated accordingly

Dear Sir/Madam - fmdqotcplc.com · Dear Sir/Madam REQUEST FOR PROPOSAL FMDQ OTC PLC (“FMDQ”) is...

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