TERMS OF REFERENCE (TOR) FOR PROFESSIONAL CONSUTANCY ... · FOR PROFESSIONAL CONSUTANCY SERVICES...

RFPS-USA-2013-501749 Treasury and Financial Risk Management Professional Consultancy Services

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TERMS OF REFERENCE (TOR)

FOR PROFESSIONAL CONSUTANCY SERVICES FOR TREASURY AND

BANKING FUNCTIONS


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Table of Contents

1 PURPOSE OF THE RFPS .................................................................................................... - 3 - 2 BACKGROUND .................................................................................................................. - 3 - 3 SCOPE OF WORK ............................................................................................................... - 6 - 4 DELIVERABLES AND OUTPUTS .................................................................................... - 8 - 5 SUBJECT MATTER EXPERTS (SMEs) ASSIGNED TO THE PROJECT ....................... - 9 - 6 INFORMATION REQUESTED FROM THE VENDOR ................................................. - 10 - 7 TECHNICAL EVALUATION PROCESS......................................................................... - 12 - 8 COMMERCIAL EVALUATION ...................................................................................... - 12 - 9 CONTRACT ....................................................................................................................... - 13 - APPENDIX 1: CLIENT REFERENCE INFORMATION SHEET ......................................... - 14 - APPENDIX 2: COST ESTIMATES ........................................................................................ - 17 - APPENDIX 3 - PROFESSIONAL SERVICES RATE CARD ................................................ - 18 - APPENDIX 4: COMPLIANCE TABLE .................................................................................. - 19 - APPENDIX A: BUSINESS BLUEPRINT-PERFORM TREASURY ACTIVITIES

APPENDIX B: BUSINESS BLUEPRINT-MANAGE LIQUIDITY

APPENDIX C: UNICEF TREASURY


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1 PURPOSE OF THE RFPS

The purpose of this Request for Proposal for Services (RFPS) is to select a vendor that

will perform a high level Business Analysis and assist UNICEF in validating and

describing the overall business functionality and information architecture of Treasury,

liquidity, cash management, banking and Risk management functions (hereafter referred

as Treasury and Banking etc.) and recommend future course of action including concrete

steps for implementation of selected functions. The scope of services collectively is

referred to as “Project” in this RFPS. UNICEF expects the selected vendor to provide

direction and guidance to review the current information architecture, review the status of

current streams of activities, identify needs for additional support for businesses

processes for Treasury and Banking etc., and recommend business feasibility, with

justification for new SAP or third party systems, modules and solutions to further manage

and improve these areas as outlined further in the Terms of Reference (TOR) of this

RFPS. UNICEF expects the vendor to undertake end-to-end implementation of selected

SAP and third party solutions and provide knowledge transfer to UNICEF to be self-

sufficient in managing and maintaining those solutions in the future. The detailed

requirements are described in the paragraphs that follow. The services required will be

mostly performed on-site to facilitate interaction with business users. However,

depending on the tasks or availability of expertise and facilities, systems etc., selected

services may be performed off-site.

As a result of this RFPS process, UNICEF reserves the right to award contract in full or

for the selected part of the requirement/service category, to the selected vendor

, if deemed to be in the best interest of UNICEF. It shall be noted, however, that

UNICEF’s primary intention is to enter into a contract with a single vendor for the

terms of reference contained in this RFPS including end-to-end services for selected

SAP and third-party modules relating to Treasury and Banking functions etc.

UNICEF strongly encourages the vendor to bid accordingly.

2 BACKGROUND

UNICEF selected and has used SAP ERP systems at HQ location and other larger offices

since 1999. UNICEF also developed an in-house custom solution for use in its country

offices (150 countries, 300+ offices) since 1999. In 2007-08, UNICEF made a strategic

decision to move away from its custom developed Program Management and field


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logistics system to an off-the-self enterprise grade ERP system. At the same time,

UNICEF also decided to change and implement new accounting standards, International

Public Sector Accounting Standards (IPSAS). The transformation and change

management programme, named VISION based on SAP ERP solution was blueprinted,

configured with preparations undertaken internally with skills and capacity augmentation

from vendors, contractors and consultants. VISION system went live simultaneously, in

all UNICEF offices in a “big bang” approach in January 2012.

2.1 UNICEF’s VISION system is single instance SAP ERP solution currently hosted at

its New York HQ data centre with provision of requisite and optimized global

connectivity for world-wide access. The new paradigm has given the organization

an ability to a implement a set of uniform, standardized and integrated set of

business processes world-wide, in the areas of Programme management, Finance,

Accounts, Budgeting, Supply, Logistics, Warehouses, HR administration and

Payroll etc.. Specifically, the implementation of VISION has significantly

improved the ability of Finance and Treasury functions to manage cash flow and

risk and at the same time presented to the organization an opportunity to review

and assess the Treasury tools and processes including Market Risk Analyser, Credit

Risk Analyser and Portfolio Analyser that can further improve and optimize

business processes in these areas. Furthermore, a change to new accounting

standards (IPSAS) now require increased transparency and disclosures of financial

instruments.

2.2 UNICEF articulated its vision to use the new ERP solution through a Business

Process Blueprint in 2008-09, which explains and documents how UNICEF intends

to use the VISION system and the proposed new business processes. In this

context, it is useful to mention that a number of business processes relating to

Treasury and Banking etc. were included in the core set of business requirements.

UNICEF has further refined these business requirements and associated processes

in the recent past. The relevant portions of the Business Blueprint containing

finance and Treasury processes which was prepared in 2008-09 and updated

recently is attached as Appendix A and Appendix B to the Terms of Reference

(TOR) of the RFPS. In addition, another document titled “UNICEF Treasury”

describing detailed “As is” and “To be” processes is attached as Appendix C with

the TOR of this RFPS.

2.3 Based on business requirements stated in the Business Blueprint and other related

documents, UNICEF is proceeding with a number of activities relating to Treasury

and Banking etc. The following activities relating to Treasury and Banking etc.

currently on-going are worth mentioning.


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2.3.1 e-banking:

Implementation of e-banking interfaces with selected large banks with

international presence and to develop host-to-host interfaces for payment

transmittal processes. These interfaces are either functional or in an

advanced stage of “go-live” in approx. 30 countries. UNICEF is also

making a limited use of Bank Communication module of SAP.

2.3.2 MT940/942

In order to obtain accurate and timely Cash/Bank positions and automating

bank reconciliation processes, UNICEF is implementing MT940/942 to

upload data from the banks directly to the VISION system.

2.3.3 In addition to e-banking and host-to-host interfaces, UNICEF is also

in the process of implementing SWIFT/SWIFT Alliance Lite II.

2.4 UNICEF is currently using a custom developed solution to act as a master

repository of banks with detailed bank information and signatory panels etc. The

in-house developed system is not fully integrated with VISION. UNICEF would

like to explore an integrated option with SAP or a third party solution, if feasible.

2.5 In a nutshell, the decision to issue this RFPS is driven by:

2.5.1 UNICEF’s desires to continuously improve streamline and optimize

business processes, especially relating to Treasury and Banking etc.

2.5.2 To capitalize on opportunities presented to UNICEF through VISION, a

single instance ERP (SAP) supporting a set of uniform, common and standardized

business processes, data and integration of business functionality across the globe.

2.5.3 UNICEF’s desire to immediately put an integrated set of business processes

and systems in the areas of Treasury and Banking etc.

2.5.4 To review, validate and augment the current Treasury and Banking

processes, systems, solutions and create a robust foundation to introduce new

SAP and third party solutions to manage risks.

In particular, UNICEF is very keen to introduce new integrated solutions in the areas of

Risk management: Credit risk, Market risk and Portfolio analysis etc. to better support

current business processes.


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2.6 UNICEF desires to award a contract to a qualified firm of consultants/contractor

with extensive knowledge and hands-on experience of Treasury and Banking

environment, especially with SAP software who can provide a broad range of

services and Subject Matter Expertise (SMEs) covering Treasury & Risk

Management, Liquidity & Cash Management and Banking processes using SAP

and third-party systems, solutions and provide integration with external data

systems such as Bloomberg, SWIFT etc.

3 SCOPE OF WORK

As explained above, UNICEF is currently in the process of improving the existing features and

functionality in Treasury and Banking etc. Though a number of activities are currently in

progress and in various stages of implementation, they constitute mandatory elements for

Treasury and Banking etc. UNICEF is taking an opportunity to review and validate the

Information Architecture of Treasury and Banking functions etc. to ensure that these

activities will provide flexibility and scalability for the Treasury and Banking functions.

The purpose is to develop an end-to-end solution in a holistic manner and a supporting

medium to long-term plan to lay the foundation of these functions that would serve

UNICEF’s business requirements with minimal changes for a period of 3 to 5 years.

Since UNICEF is an international organization using banking facilities in 150+ countries

in a multi-currency environment, UNICEF desires to put in place robust infrastructure

and solutions that are flexible and scalable to meet evolving, changing and growing needs

of Treasury and Banking functions. In other words, UNICEF seeks professional guidance

and “best practices” to determine and establish a robust and professional road-map that

can be implemented over time without significant amends to underlying foundation. The

scope of services requested in this RFPS is described below:

3.1 Information Architecture of Treasury and Banking function: UNICEF requires

the vendor to conduct a high-level business analysis of the Treasury and Banking

functions to review the current Information architecture of UNICEF’s Treasury and

Banking functions and validate, propose a revised architecture narrating the

following;

-End-to-end information and data flow describing processes, systems, modules,

and solutions involved including end-to-end payment processes.

- Information and data “gaps” and “overlaps” to reduce duplication, redundancies

and risks, in particular integration requirements and a remediation strategy to

rectify the weaknesses in the architecture

- Integration requirements for data and processes and develop a strategy to rectify

the “integration” issues


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-Identification and recommendation of processes, systems, data, interface

protocols and solutions for an optimal Treasury and Banking end-to-end solution

- Remediation mechanisms and recommendation to address potential weaknesses,

priorities, and estimates of time and effort to address issues in the current

mechanisms

-Prepare a “Way-forward” plan for development of infrastructural and

foundational pre-requisites and solutions

3.2 Implementation of Risk Analysis solutions: This includes Credit Risk analyser,

Market Risk analyser and Portfolio analyser to support and mitigate risk to

Treasury function. The following activities are proposed in the scope of work:

-Identify Business processes that are candidates for implementation and use of

the software

-Blueprint the business processes and how the software will be used including its

configuration and custom development (if any)

-Assistance in development of business case and justification of the above

modules

-Reports: Configure standard reports and assist in development of custom reports

-Assist in preparation of functional specifications for Data Conversion

-Systems and Integration implications with current SAP configurations and test

methodology for integration and acceptance testing

-Realization, Go live preparations and security assessment

-Provision of Post go-live support

- Knowledge transfer to UNICEF staff

3.3 Implementation of the Liquidity Planner and Cash Management

- Blueprint the business processes and how the software will be used

including its configuration and custom development (if any)

- Realization and Go-live preparations

- Provision of Post go-live support

- Knowledge transfer to UNICEF staff

3.4 Review and assessment of the functionality of the current custom-developed

BCMS solution and desirability of integration with VISION banking modules. The

following activities are proposed in the scope of work:

- Review and validate the functionality and integration requirements with current

SAP finance modules

-Recommend alternatives with clear advantages, disadvantages, cost estimates

and value proposition, including the options of:


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-“As is”: Keep the current system with some improvements and

modifications

-Implement SAP based solutions

-Third party interfaced/integrated solutions

-Assist UNICEF in development of a business case by providing estimates

of time and cost, benefits and risks associated with the option

- Implementation of the selected option(s) and cost estimates for each of

the option

- If an option other than “As is” is recommended, then provision of Post

go-live support and Knowledge transfer to UNICEF staff should be in the

scope of work

4 DELIVERABLES AND OUTPUTS

UNICEF requires all aspects of Professional Services that will be offered under this

institutional contract covering the types of services, methodologies used, engagement

deliverables, estimated timelines, etc. That being said, it will be the responsibility of the

“vendor” to provide qualified and experienced pool of individuals to cover said services.

4.1 The vendor is expected to provide clear and concise proposal for the scope of

services defined in sections 3.1 to 3.4. UNICEF expects fixed cost proposal for the

above services. UNICEF may consider time and material proposal for some

services if the vendor cannot provide a fixed cost proposal. The vendor would

provide adequate justification, in which case the vendor would provide a ceiling

“not to exceed” an amount, with key milestones for the services.

4.2 The proposal would provide phases of work, milestones and payment schedules

linked to phases and milestones of deliverables for the scope of services. The

vendor would provide cost estimates in the format attached as Appendix 2.

4.3 The vendor would propose methodology of work contained in the scope of

services. UNICEF prefers on-site work to promote interaction with the business

users. UNICEF may accept off-site work depending on the availability of Subject

Matter Experts (SMEs), systems and services etc. The proposal should clearly

identify and describe services to be performed off-site and priced accordingly.

4.4 The vendor would propose a “Change management process” to provide for any

changes in the scope of services due to any reasons whatsoever. In addition to the

provision of termination clause under section 16 of the UNICEF General Terms

and Conditions for Institutional/Corporate contracts, UNICEF reserves the right to

change, cancel or terminate any or all services contained in this RFPS in the best


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interest of the organization.

4.5 The vendor will propose a team composition to deliver each of the services

contained in this RFPS. Delineation of responsibilities between the vendor and

UNICEF will be clearly stated in the proposal for each of the services. The vendor

will propose and provide the functional roles and qualifications of the team

assigned to this project.

4.6 The vendor would propose a Project management methodology and prepare project

plans before initiating work on the scope of services defined in sections 3.1 to 3.4.

4.7 The vendor would propose a methodology of knowledge transfer and post go-live

support so that UNICEF personnel are self-sufficient to manage the solution in the

future.

5 SUBJECT MATTER EXPERTS (SMEs) ASSIGNED TO THE PROJECT

The vendor is expected to provide trained, knowledgeable Business and Technical

consultants for the duration of this project to perform the scope of services contained in

this RFPS. Therefore, UNICEF will not provide or pay for training, conferences, or

seminars to be given to vendor consultants in order for them to perform their tasks.

5.1 Additional Skills

All vendor consultants who interface with UNICEF management and technical

consultants must have excellent oral and written communication skills. "Excellent oral

and written communication skills" is defined as the capability to converse fluently,

communicate effectively, and write intelligibly in the English language.

5.2 Work Hours

Contractors are expected to work on-site, in the following work environment:

-normal office time 9.00 am-5.00 pm (40 hours/week), though UNICEF allows

flexible time with prior approval;

- 5 days a week, Monday through Friday;

- except Official holidays of the United Nations.


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6 INFORMATION REQUESTED FROM THE VENDOR THE FOLLOWING INFORMATION RELATING TO THE BIDDER’S PROFILE IS REQUESTED

AND IS MANDATORY.

6.1 CORPORATE PROFILE

All proposals will include an overview of the vendor’s firm and background information

including:

a) Company overview, summary of corporate structure and business area;

b) Number of years providing Professional Services covering Treasury and

Banking etc.: Treasury & Risk Management, Liquidity & Cash Management

and Banking product suites;

c) Methodologies and experience:

Business work flow / process definition and or analysis;

Business work flow / process risk analysis / management;

Implementation of Treasury & Risk Management, Liquidity & Cash

Management and Banking product suite(s) in a medium to large scale

multi-national organization (5000 or more staff);

Global implementation of large scale SAP Treasury Solution;

Prior customized solutions, in the context of modifications to out-of-

box product

d) The most recent 3 (three) years Audited Financial Statements.

6.2 Expertise of the vendor

The vendor is requested to provide the following information as detailed below:

a) The vendor is requested to provide number and type of employees with

technical expertise dedicated to the Treasury and banking solutions

implementation especially relating to SAP products.

b) Sample Curriculum Vitaes for the categories listed below or any other

categories who will be assigned to perform the scope of services contained in

this RFPS. These resumes should be complete as this is a key consideration in

the selection of the vendor.

Account Manager

Project Manager

Treasury and Risk Management Business Analyst

Treasury Functional Analyst


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Systems Integrator / Interface Specialist

Trainer/Writer/Documentation Expert

c) Description of the sourcing and screening procedures including compliance

with US immigration/labour regulations, background checks, medical clearance,

reference checks, etc.

d) At least 3 (three) references of customers and corresponding sites for which the

vendor has performed services similar to contained in this RFPS. These should be

provided in the format attached as Appendix 1.

Persons listed as references may be contacted by UNICEF during the evaluation

process.

6.3 Management of Services Approach

The bidder is requested to provide the following information:

a) Provide a brief synopsis of methodology and approach proposed by the vendor

to manage the engagement and change management process to ensure

satisfactory completion of the project in-time and within budget. The approach

should be described in no more than 250 words..

b) Policies and conditions regarding the release of vendor personnel for

appointment to regular UNICEF posts as per attached statement of

requirements;

c) Approach to the replacement of personnel when UNICEF is dissatisfied with

the performance of an individual assigned by the vendor.

6.4 Service Catalogue Price Table

The bidder must complete the Professional Services Rate Card Table 1 contained

in Appendix 3 in U.S. dollars (USD) if any services are to be provided on time

and material basis. The consultant resources are to be estimated on a “per day”

basis. Bidder should provide service prices for work performed outside of the

normal working hours, if this price is different by completing Table 2 of

Appendix 3.

6.5 Bidder Self-Checklist

The bidder is requested to provide duly completed “Compliance Table” aka

Bidder’s Self-Checklist as provided in Appendix 4.

The bidder must provide sufficient information in the proposal to address the

above items to ensure the evaluation team can make a fair assessment of the


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company based only on its proposal. This information is mandatory for the vendor

to qualify for further consideration.

7 TECHNICAL EVALUATION REQUIREMENTS Proposals must be clear and concise, comprehensive, and directly address the specifics of

the proposed scope of Treasury and Banking etc. UNICEF is not expecting or desiring to

receive a significant amount of “general marketing literature” from the vendor.

The vendor will, in combination with their capability descriptions and candidate resumes,

demonstrate their experience in providing similar services on prior assignments by

providing references from other clients. All vendors shall state explicitly their

understanding of the dependencies on and inputs they need from UNICEF.

.

The proposal will be evaluated by a team comprising of senior business leaders in the

Finance function, staff in business and technical areas of Treasury and Banking and SAP

specialists. The Contracting Manager will be the sole authority in final contract

negotiations and contracting matters. The evaluation of the proposal will be based on the

following criteria:

Corporate profile of the vendor especially experience in the area of

Treasury and Banking etc.

Completeness of the proposal in accordance with the RFPS

Vendor’s understanding of the UNICEF’s requirements

Vendor’s demonstrated capability to have undertaken similar assignment

Feedback from the selected references

Qualifications and experience of individuals proposed to be assigned to

this project

Vendor’s ability to complete the scope of services within UNICEF’s

budgetary allocation in the most cost efficient manner. The following

point ratings will be used for evaluation of technical proposals:

8 COMMERCIAL EVALUATION

Please use the template provided in Appendix 2 for submission of the Cost Estimates of

the commercial proposal.


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9 CONTRACT ________________________________________________________________________

All bidders responding to this RFPS shall acknowledge in their Proposal that UNICEF

General Terms and Conditions for Institutional/Corporate Contracts are acceptable by

signing and dating the signature page of this RFPS.


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APPENDIX 1: CLIENT REFERENCE INFORMATION SHEET

Please provide the following contact information for each client reference submitted

(Please expand the form if needed).

Reference 1

Company Name:

Contact Name and Title:

Phone:

E-mail:

Address:

Value of Contract:

Company Size 1 (number of

employees)

Company Size 2 (number and

location of offices

worldwide)

Industry/Market Sector

(private, public, non-for

profit).

Detailed description of the

actual services provided by

your company (i.e. types,

geographical coverage etc.).

Duration of the services

(months):

Start date (month/year):

Completion date

(month/year):

Protocol to follow by

UNICEF for making contact.

Describe Reference Site Installation:


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Reference 2

Company Name:


Phone:

E-mail:

Address:

Value of Contract:


employees)


location of offices

worldwide)



profit).






(months):


Completion date

(month/year):





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Reference 3

Company Name:


Phone:

E-mail:

Address:

Value of Contract:


employees)


location of offices

worldwide)



profit).






(months):


Completion date

(month/year):




UNICEF reserves the right to contact each client reference provided by Proposer. It is

Proposer’s responsibility to ensure that the contact details provided above are accurate

and to ensure that your client will be responsive to UNICEF’s inquires.

Note: Failure to include all the requested information may result in your submission

being less favorable. Please provide additional documentation if necessary.


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APPENDIX 2: COST ESTIMATES

Outputs and deliverables Cost Estimates

( In USD)

Remarks

1. Information Architecture of Treasury

and banking function

2. Implementation of Risk analysis

solution

Blueprinting

Realization and go-live

3. Implementation of Liquidity Planner

and Cash Management

Blueprinting

Realization and go-live

4. Review and assessment of current

custom developed BCMS solution

Option I: “As is” with

modifications

SAP based solution

Third party solution

* Realization and go-live estimates include all activities necessary for implementation, go-live

and post go-live as defined under Section 3, Scope of work. The vendor may provide combination

of fixed cost and time and material estimates for the categories/sub-categories stated above.


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APPENDIX 3 - PROFESSIONAL SERVICES RATE CARD

Remarks:

*LABOR RATES ARE ALL-INCLUSIVE RATES INCLUDING BUT NOT LIMITED TO SALARY, INSURANCE< TRAVEL COST< ALLOWANCES AND OVERHEADS ETC>

Job Labor Category On UNICEF premises in US$

On vendor premises in US$

Rate person/day Rate person/day

Local Offshore (if applicable.)


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APPENDIX 4: COMPLIANCE TABLE (Vendor Self-Checklist)

A Information requested from the vendor YES NO Comments

1 Description of vendor’s expertise and general and technical

capabilities has been provided.

2 Description of vendor’s approach to overall management of

services has been provided.

3 Number of years in implementing Treasury and risk

Management, Banking and Liquidity and Cash

Management especially with SAP products

4 Capacity to provide needed managerial and technical

resources in Treasury & Risk Management, Liquidity &

Cash Management and Banking systems. Sample CVs

addressing job profile of the consultants who will be assigned

to this assignment is provided

5 Clarity of management of service approach and Account

management system and methodology information provided.

6 References for similar Treasury & Risk Management, Liquidity

& Cash Management and Banking projects/professional

services projects have been provided. Past experience with

public sector organizations and International organization

highlighted. APPENDIX 1 - Vendor Client Reference

Summary Table has been submitted.

7 Vendor’s quality assurance procedures and quality

certifications have been outlined.

8 Sourcing, method of solicitation of employees & procedures

including compliance with US immigration/labor regulations,

background checks, medical clearance, reference checks, etc.

Information has been provided.

9 Vendor’s project management procedures have been outlined.

10 3 (three) case studies have been provided.

B Pricing/Commercial requirements

12 Appendix 2 and Appendix 3- Cost Estimates and

Professional Services Rate Cards have been completed.

Volume Discount Scheme has been provided.

13 Rated in United States Dollars (USD).

14 Copies of the latest financial statements for 3 (three) years have

been provided.

C Administrative Requirements


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15 Technical and Financial proposals have been submitted in

separate sealed envelopes.

D Legal Requirements

16 UNICEF General Terms and Conditions for Services have

been reviewed and are (please mark whatever option is

applicable):

a). fully acceptable, or;

b). reviewed by Contractor’s Legal and comments are provided

TERMS OF REFERENCE (TOR) FOR PROFESSIONAL CONSUTANCY ... · FOR PROFESSIONAL CONSUTANCY SERVICES...

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