IDB CAPITAL LIMITED. At the Centre of Your Progress TENDER NUMBER: IDB/TENDER/001/

Transcription

1 IDB CAPITAL LIMITED At the Centre of Your Progress TENDER NUMBER: IDB/TENDER/001/ TENDER FOR THE IMPLEMENTATION OF AN HRMS SOLUTION IN NAVISION 2016 & MIGRATION OF NAVISON FINANCIALS FROM THE 2013 TO THE 2016 PLATFORM. Contact Information: 18th Floor, National Bank Building Harambee Avenue P. O. Box Nairobi Telephone: Cell: Fax : bizcare@idbkenya.com DEADLINE FOR SUBMISSION OF TENDERS ON IFMIS 00/02/ nd March :30 P.M 1

2 TABLE OF CONTENTS PAGE SECTION I INVITATION TO TENDER 3 SECTION II INSTRUCTIONS TO TENDERERS 4 SECTION III GENERAL CONDITIONS OF CONTRACT 25 SECTION IV SPECIAL CONDITIONS OF CONTRACT 30 SECTION V SCHEDULE OF REQUIREMENTS 32 SECTION VI PRICE SCHEDULE FOR GOODS 32 SECTION VII STANDARD FORMS 33 FORM OF TENDER 34 CONFIDENTIAL BUSINESS QUESTIONNAIRES FORMS 35 CONTRACT FORM 37 PERFORMANCE SECURITY FORM 38

3 SECTION I INVITATION TO TENDER 1.0 TENDER REF NO.: IDB/TENDER/001/ TENDER NAME: TENDER FOR THE IMPLEMENTATION OF AN HRMS SOLUTION IN NAVISION 2016 & MIGRATION OF NAVISON FINANCIALS FROM THE 2013 TO THE 2016 PLATFORM. IDB Capital Limited invites sealed bids for the implementation of an HRMS solution in Navision 2016 & migration of Navision Financials from the 2013 to the 2016 platform as detailed in the tender document. Interested candidates may obtain complete tender document free of charge from our website or IFMIS supplier portal ( Tenderers who download the tender document are advised to forward their full particulars and contact details to the Accounting Officer, IDB Capital Limited, through the address, bizcare@idbkenya.com before the closing date for records and for purposes of receiving clarifications and/or addendums, if any. Prices quoted should be net inclusive of all taxes and delivery costs. The quotation must be expressed in Kenya shillings and shall remain valid for a period of (120) days from the closing date of the tender. Tenders will be opened immediately after the close date in presence of candidates or their representatives who choose to attend. ACTING MANAGING DIRECTOR For: IDB CAPITAL LIMITED - 3 -

4 SECTION II - INSTRUCTIONS TO TENDERERS 2.1 Eligible Tenderers This Invitation for Tenders is open to all tenderers eligible as described in the Invitation to Tender. Successful tenderers shall complete the Implementation of an HRMS Solution in Navision 2016 and Migration Navision Financials functions from Navision 2013 to the Navision 2016 platform by the intended completion date specified in the tender documents The procuring entity s employees, committee members, board members and their relative (spouse and children) are not eligible to participate in the tender Tenderers shall provide the qualification information statement that the tenderer (including all members of a joint venture and subcontractors) is not associated, or has been associated in the past, directly or indirectly, with a firm or any of its affiliates which have been engaged by the procuring entity to provide consulting services for the preparation of the design, specifications, and other documents to be used for the procurement of the goods under this Invitation for tenders Tenderers shall not be under a declaration of ineligibility for corrupt and fraudulent practices. 2.2 Eligible Goods All goods/equipment's to be supplied under the contract shall have their origin in eligible source countries For purposes of this clause, "origin" means the place where the goods are mined, grown, or produced. Goods are produced when, through manufacturing, processing, or substantial and major assembly of components, a commercially- recognized product result that is substantially different in basic characteristics or in purpose or utility from its components The origin of goods is distinct from the nationality of the tenderer. 2.3 Cost of Tendering The Tenderer shall bear all costs associated with the preparation and submission of its tender, and the procuring entity, will in no case be responsible or liable for those costs, regardless of the conduct or outcome of the tendering process This tender document is free of charge when downloaded from IDB website or the IFMIS Supplier portal.

5 2.4 The Tender Document The tender document comprises the documents listed below and addenda issued in accordance with clause 2.6 of these instructions to Tenderers (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) (xii) (xiii) Invitation to Tender Instructions to Tenderers General Conditions of Contract Special Conditions of Contract Schedule of requirements Technical Specifications Tender Form and Price Schedules Tender Security Form Contract Form Performance Security Form Bank Guarantee for Advance Payment Form Manufacturer's Authorization Form Confidential Business Questionnaire The Tenderer is expected to examine all instructions, forms, terms, and specifications in the tender documents. Failure to furnish all information required by the tender documents or to submit a tender not substantially responsive to the tender documents in every respect will be at the Tenderer s risk and may result in the rejection of its tender. 2.5 Clarification of Documents A prospective tenderer requiring any clarification of the tender document may notify IDB Capital Limited in writing or by post at the procuring entity's address indicated in the Invitation to Tender. IDB will respond in writing to any request for clarification of the Tender documents, which it receives not later than seven (7) days prior to the deadline for the submission of tenders, prescribed by the Procuring Entity. Written copies of the procuring entities response (including an explanation of the query but without identifying the source of inquiry) will be sent to all prospective tenderers that have received the tender document The procuring entity shall reply to any clarifications sought by the tenderer within 3 days of receiving the request to enable the tenderer to make timely submission of its tender. 2.6 Amendment of Documents At any time prior to the deadline for submission of tenders, the procuring entity, for any reason, whether at its own initiative or in response to a clarification requested by a prospective tenderer, may modify the tender documents by issuing an addendum All prospective candidates that have received the tender documents will be notified of the amendment in writing or by post and will be binding on them In order to allow prospective tenderers reasonable time in which to take the amendment into account in preparing their tenders, the procuring entity, at its discretion, may extend the deadline for the submission of tenders.

6 2.7 Language of Tender The tender prepared by the tenderer, as well as all correspondences and documents relating to the tender exchange by the tenderer shall be written in the English language. Any printed literature furnished by the tenderer may be written in another language provided they are accompanied by an accurate English translation of the relevant passages in which case, for purposes of interpretation of the tender, the English translation shall govern. 2.8 Documents Comprising of Tender The tender prepared by the tenderers shall comprise the following components (a) A Tender Form and a Price Schedule completed in accordance with paragraph 2.9, 2.10 and 2.11 below (b) Documentary evidence established in accordance with paragraph 2.1 that the tenderer is eligible to tender and is qualified to perform the contract if its tender is accepted; (c) Documentary evidence established in accordance with paragraph 2.2 that the goods and ancillary services to be supplied by the tenderer are eligible goods and services and conform to the tender documents (d) Tender security furnished in accordance with paragraph 2.14 (e) Duly filled, signed and stamped confidential business questionnaire 2.9 Tender Forms The tenderer shall complete the Tender Form and the appropriate Price Schedule furnished in the tender documents, indicating the services to be supplied and a brief description of the services Tender Prices The tenderer shall indicate on the appropriate Price Schedule the unit prices and total tender price of the services it proposes to provide under the contract Prices indicated on the Price Schedule shall be costs of the services quoted including all customs duties, VAT and other taxes payable Prices quoted by the tenderer shall be fixed during the Tenderer's performance of the contract and not subject to variation on any account. A tender submitted with an adjustable price quotation will be treated as non-responsive and will be rejected, pursuant to paragraph The validity period of the tender shall be 120 days from the date of opening of the tender. 2.1 Tender Currencies Prices shall be quoted in Kenya Shillings.

7 2.12 Tenderers Eligibility and Qualifications Pursuant to paragraph 2.1. The tenderer shall furnish, as part of their tender; documents establishing the tenderers eligibility to tender and qualifications to perform the contract if their tender is accepted The documentary evidence of the tenderers eligibility to tender shall establish to IDB s satisfaction that the tenderer, at the time of submission of its tender, is from an eligible source country as defined under paragraph The documentary evidence of the tenderers qualifications to perform the contract if its tender is accepted shall to IDB s satisfaction that the tenderer has the financial and technical capability necessary to perform the contract Tender Security The tender security is required of two percent (2%)to protect IDB against the risk of Tenderer's conduct which would warrant the security's forfeiture, pursuant to paragraph The tender security shall be denominated in Kenya Shillings or in another freely convertible currency, and shall be in the form of a bank guarantee or a bank draft issued by a reputable bank located in Kenya or insurance bond from the firms approved by Public Procurement Regulatory Authority (PPRA). The Tender security must be valid for 120 days from the tender opening date Any tender not secured in accordance with paragraph and will be rejected by IDB as non- responsive, pursuant to paragraph Unsuccessful Tenderer's tender security will be discharged or returned as promptly as possible as but not later than thirty (30) days after the expiration of the period of tender validity prescribed by the procuring entity The successful Tenderer's tender security will be discharged upon the tenderer signing the contract, pursuant to paragraph 2.27 and furnishing the performance security, pursuant to paragraph The tender security may be forfeited: (a) (b) (c) If a tenderer withdraws its tender during the period of tender validity specified by the Procuring entity on the Tender Form; or If the tenderer rejects correction of an arithmetic error in the tender. In the case of a successful tenderer, if the tenderer fails: (i) To sign the contract in accordance with paragraph 2.27, or (ii) To furnish performance security in accordance with paragraph 2.28

8 2.15 Validity of Tenders Tenders shall remain valid for 120 days or as specified in the Invitation to tender after the date of tender opening prescribed by the Procuring Entity. A tender valid for a shorter period shall be rejected by IDB as non- responsive In exceptional circumstances, the procuring entity may solicit the Tenderer's consent to an extension of the period of validity. The request and the responses thereto shall be made in writing. The tender security provided under paragraph 2.14 shall also be suitably extended. A tenderer may refuse the request without forfeiting its tender security. A tenderer granting the request will not be required nor permitted to modify its tender Deadline for Submission of Tenders Tenders must be received by IDB at the portal specified under paragraph not later than 2 nd March 2017, 1.30 pm The procuring entity may, at its discretion, extend this deadline for the submission of tenders by amending the tender documents in accordance with paragraph 2.6, in which case all rights and obligations of the procuring entity and candidates previously subject to the deadline will therefore be subject to the deadline as extended 2.17 Modification and Withdrawal of Tenders The tenderer may modify or withdraw its tender after the tender's submission, provided that written notice of the modification, including substitution or withdrawal of the tenders, is received by the Procuring entity prior to the deadline prescribed for submission of tenders The Tenderer's modification or withdrawal notice shall be prepared, sealed, marked, and dispatched in accordance with the provisions of paragraph A withdrawal notice may also be sent by cable, telex but followed by a signed confirmation copy, postmarked not later than the deadline for submission of tenders No tender may be modified after the deadline for submission of tenders No tender may be withdrawn in the interval between the deadline for submission of tenders and the expiration of the period of tender validity specified by the tenderer on the Tender Form. Withdrawal of a tender during this interval may result in the Tenderer's forfeiture of its tender security, pursuant to paragraph The procuring entity may at any time terminate procurement proceedings before contract award and shall not be liable to any person for the termination The procuring entity shall give prompt notice of the termination to the tenderers and on request give its reasons for termination within 14 days of receiving the request from any tenderer Opening of Tenders The procuring entity will open all tenders in the presence of tenderer' representatives who choose to attend, on 2 nd March 2017, 1.30 pm and in the location specified in the Invitation to Tender. The tenderers' representatives who are present shall sign a register evidencing their attendance.

9 The tenderers' names, tender modifications or withdrawals, and the presence or absence of requisite tender security and such other details as the procuring entity, at its discretion, may consider appropriate, will be announced at the opening The procuring entity will prepare minutes of the tender opening Clarification of Tenders To assist in the examination, evaluation and comparison of tenders the procuring entity may, at its discretion, ask the tenderer for a clarification of its tender. The request for clarification and the response shall be in writing, and no change in the prices or substance of the tender shall be sought, offered, or permitted Any effort by the tenderer to influence the procuring entity in the procuring's tender evaluation, tender comparison or contract award decisions may result in the rejection of the tenderers' tender Preliminary Examination The procuring entity will examine the tenders to determine whether they are complete, whether any computational errors have been made, whether required sureties have been furnished, whether the documents have been properly signed, and whether the tenders are generally in order Arithmetical errors will be rectified on the following basis. If there is a discrepancy between the unit price and the total price that is obtained by multiplying the unit price and quantify, the unit price shall prevail, and the total price shall be corrected. If the candidate does not accept the correction of the errors, its tender will be rejected, and its tender security forfeited. If there is a discrepancy between words and figures the amount in words will prevail The procuring entity may waive any minor informality or non-conformity or irregularity in a tender which does not constitute a material deviation, provided such waiver does not prejudice or affect the relative ranking of any tenderer Prior to the detailed evaluation, pursuant to paragraph 2.23 the procuring entity will determine the substantial responsiveness of each tender to the tender documents. For purposes of these paragraphs, a substantially responsive tender is one, which conforms to all the terms and conditions of the tender documents without material deviations. The procuring entity s determination of a tender's responsiveness is to be based on the contents of the tender itself without recourse to extrinsic evidence If a tender is not substantially responsive, it will be rejected by the procuring entity and may not subsequently be made responsive by the tenderer by correction of the nonconformity.

10 2.21 Conversion to Single Currency Where other currencies are used, the procuring entity will convert these currencies to Kenya Shillings using the selling exchange rate on the rate of tender closing provided by the Central Bank of Kenya Evaluation Process IDB will evaluate and compare the tenders which have been determined to be substantially responsive, pursuant to paragraph The comparison shall be of the price including all costs as well as duties and taxes payable on all the materials to be used in the provision of the services IDB's evaluation of a tender will take into account, in addition to the tender price, the following factors, in the manner and to the extent indicated in paragraph and in the technical specifications: a) Operational plan proposed in the tender; b) Deviations in payment schedule from that specified in the Special Conditions of Contract; Pursuant to paragraph 24.3 the following evaluation methods will be applied; Operational Plan. IDB requires that the services under the Invitation for Tenders shall be performed at the time specified in the Schedule of Requirements. Tenders offering to perform longer than IDB's required delivery time will be treated as non-responsive and rejected. Deviation in payment schedule. Tenderers shall state their tender price for the payment on a schedule outlined in the special conditions of contract. Tenders will be evaluated on the basis of this base price. Tenderers are, however, permitted to state an alternative payment schedule and indicate the reduction in tender price they wish to offer for such alternative payment schedule. IDB may consider the alternative payment schedule offered by the selected tenderer. The tender evaluation committee shall evaluate the tender within 30 days from the date of opening the tender. To qualify for contract awards, the tenderer shall have the following:- a) Necessary qualifications, capability experience, services, equipment and facilities to provide what is being procured. b) Legal capacity to enter into a contract for procurement c) Shall not be insolvent, in receivership, bankrupt or in the process of being wound up and is not the subject of legal proceedings relating to the foregoing d) Shall not be debarred from participating in public procurement

11 2.23 Contacting IDB Capital Limited Subject to paragraph 2.21 no tenderer shall contact the Procuring Entity on any matter related to its tender, from the time of the tender opening to the time the contract is awarded Any effort by a tenderer to influence the Procuring Entity in its decisions on tender, evaluation, tender comparison, or contract award may result in the rejection of the Tenderer's tender Award of Contract (a) Post-qualification In the absence of pre-qualification, the Procuring Entity will determine to its satisfaction whether the tenderer that is selected as having submitted the lowest evaluated responsive tender is qualified to perform the contract satisfactorily The determination will take into account the tenderer financial, technical, and production capabilities. It will be based upon an examination of the documentary evidence of the tenderers qualifications submitted by the tenderer, pursuant to paragraph as well as such other information as the Procuring Entity deems necessary and appropriate An affirmative determination will be a prerequisite for award of the contract to the tenderer. A negative determination will result in rejection of the Tenderer's tender, in which event the Procuring Entity will proceed to the next lowest evaluated tender to make a similar determination of that Tenderer's capabilities to perform satisfactorily Award Criteria The Procuring Entity will award the contract to the successful tenderer(s) whose tender has been determined to be substantially responsive and has been determined to be the lowest evaluated tender, provided further that the tenderer is determined to be qualified to perform the contract satisfactorily. IDB s Right to Vary quantities The Procuring Entity reserves the right at the time of contract award to increase or decrease the quantity of goods originally specified in the Schedule of requirements without any change in unit price or other terms and conditions 2.26 IDB s Right to accept or Reject any or All Tenders The Procuring Entity reserves the right to accept or reject any tender, and to annul the tendering process and reject all tenders at any time prior to contract award, without thereby incurring any liability to the affected tenderer or tenderers or any obligation to inform the affected tenderer or tenderers of the grounds for IDB s action.

12 2.27 Notification of Award Prior to the expiration of the period of tender validity, the Procuring Entity will notify the successful tenderer in writing that its tender has been accepted The notification of award will constitute the formation of the Contract but will have to wait until the contract is finally signed by both parties Upon the successful Tenderer's furnishing of the performance security pursuant to paragraph 2.28, the Procuring Entity will promptly notify each unsuccessful Tenderer and will discharge its tender security, pursuant to paragraph Signing of Contract At the same time as the Procuring Entity notifies the successful tenderer that its tender has been accepted, the procuring entity will send the tenderer the Contract Form provided in the tender documents, incorporating all agreements between the parties The parties to the contract shall have it signed within 30 days from the date of notification of contract award unless there is an administrative review request Within thirty (30) days of receipt of the Contract Form, the successful tenderer shall sign and date the contract and return it to the Procuring Entity Performance Security Prior to execution of contract, the successful tenderer shall furnish the performance security of 5% of the bid price in accordance with the Conditions of Contract, in the Performance Security Form provided in the tender documents, or in another form acceptable to the Procuring Entity Failure of the successful tenderer to comply with the requirements of paragraph 2.27 or paragraph 2.28 shall constitute sufficient grounds for the annulment of the award and forfeiture of the tender security, in which event the Procuring Entity may make the award to the next lowest evaluated Candidate or call for new tenders Corrupt or Fraudulent Practices The Procuring Entity requires that tenderers observe the highest standard of ethics during the procurement process and execution of contracts when used in the present regulations, the following terms are defined as follows; "corrupt practice" means the offering, giving, receiving, or soliciting of anything of value to influence the action of a public official in the procurement process or in contract execution; and "fraudulent practice" means a misrepresentation of facts in order to influence a procurement process or the execution of a contract to the detriment of the Procuring Entity, and includes collusive practice among tenderer (prior to or after tender submission) designed to establish tender prices at artificial non-competitive levels and to deprive the procuring entity of the benefits of free and open competition; The procuring entity will reject a proposal for award if it determines that the tenderer recommended for award has engaged in corrupt or fraudulent practices in competing for the contract in question.

13 Further a tenderer who is found to have indulged in corrupt or fraudulent practices risks being debarred from participating in public procurement in Kenya.

14 APPENDIX TO INSTRUCTIONS TO TENDERERS The following information regarding the particulars of the tender shall complement supplement or amend the provisions of the instructions to tenderers. Wherever there is a conflict between the provision of the instructions to tenderers and the provisions of the appendix, the provisions of the appendix herein shall prevail over those of the instructions to tenderers. Instruction to tender Particulars of Appendix to instructions to tenderers reference 2.1 Eligible Tenderers are those qualified and capable of providing A HRMS SOLUTION IN NAVISION 2016 & MIGRATE NAVISON FINANCIALS FROM THE 2013 TO THE 2016 PLATFORM Particulars of eligible tenderers : Firms registered in Kenya Validity of tenders shall remain valid for 120 days after date of tender opening. MANDATORY REQUIREMENTS 1. Certificate of registration/incorporation 2. Certificate of Valid Tax Compliance 3. PIN/VAT Certificate 4. Valid Single Business Permit 5. Declaration stating that you have not been debarred by Public Procurement Regulatory Authority(PPRA) 6. Original tender security /Bid bond of Kes. 100,000.00, valid for at least 120 days. 7. Must fill the business questionnaire in the format provided 8. The bid documents submitted should be presented in a logical manner and properly numbered. ALL THE ABOVE MUST BE MET FOR THE TENDERER TO QUALIFY TO THE NEXT STAGE. The non-responsive submission will be eliminated from the entire evaluation process. IDB shall not accept any hardcopies tenders The closing date for the Tender is 2 nd March 2017, 1.30 pm

15 The tenderers will be required to provide technical details on their product that meets the provided technical requirements. 2. As part of technical evaluation, tenderers will be awarded marks based on experience of personnel expected to implement the desired solution. 3. Pass mark for the technical stage shall be 70% and above. 4. The shortlisted bidders shall be invited for a demonstration of the functional and technical capabilities of the system. 5. The demonstration will be evaluated on the following;- Demonstration of the functional & technical capabilities of the system and reporting capabilities of the system. EVALUATION STAGE CATEGORY SCORES PRELIMINARY STAGE COMPLIANCE ELIMINATION EVALUATION TECHNICAL EVALUATION (80%) PROPOSED SYSTEM 40% PRESENTATION OF 40% THE SYSTEM FINANCIAL EVALUATION FINANCIAL 20% EVALUATION TOTAL MARKS 100% 2.14 FINANCIAL STAGE 1. The section carries a total of 20% of the evaluation. 2. The bidder with the lowest evaluated proposal ( both technical and financial proposal will be recommended for award of the contract. 3. If there is tie on the lowest evaluated bidder between two firms, the firm with highest technical points shall be recommended for award IDB Capital Limited shall carry out a post qualification where necessary to the lowest responsive bidder. Original performance security of 5% of the total tender price shall be needed from the successful bidder from approved list as listed by Public Procurement Regulatory Authority (PPRA)

16 TERMS OF REFERENCE FOR THE IMPLEMENTATION OF A HUMAN RESOURCE MANAGEMENT MODULE IN NAVISION 2016 AND MIGRATION OF FINANCIALS AND PROCUREMENT FUNCTIONS FROM NAVISION 2013 TO NAVISION 2016 (a) BACKGROUND INFORMATION IDB Capital limited is a Development Finance Institution (DFI) whose core business is lending to industrial investors. As IDB continues to carry out its mandate, the institution also aims to maintain operational efficiency through the reliance of enterprise systems that; can manage and integrate all core aspects of business operations and service delivery. Being a non-bank institution, IDB does not offer commercial banking services but has in place a Loans Management System hosted on Microsoft Dynamics Navision ERP version 2016 platform and Microsoft Dynamics Navision ERP version 2013 which manages the organization s financial operations, fixed assets and stores management including procurement. Both systems use Microsoft SQL Server versions 2012 and 2014 respectively as the back end Relational Database Management System. IDB s Human Resource Management functions were previously managed by the Peopleplus HRMS system whose backend Relational Database Management System is Oracle 11g. IDB intends to integrate the Loans Management, Human Resource, Accounts and Finance as well as the Procurement functions under one system (Navision 2016). The details below describe the desired solution in general; Develop and deploy a Human Resource Management module in the existing Microsoft Dynamics Navision The HRMS module shall have the following capabilities; i. Manage IDB s payroll and related functions ii. iii. iv. Incorporating of HR, staff loans and payroll data from the People Plus HRMS system (now defunct). Staff loans management Manage IDB staff leave processes. v. Management of IDB s staff medical schemes vi. vii. viii. Automatic generation of staff p9 forms for tax remittance purposes Audit trail generation and reporting Adaptable to integration with other third party software

17 Migration of the chart of accounts and accounting functions from Navision 2013 to Navision 2016 should achieve the following; i. Management of the IDB s accounting data ii. Management of petty cash and imprest application by IDB staff; iii. Fixed assets management iv. Financial revaluation/ multi-currency transactions v. Stores management for IDB s inventory among other store items vi. Management of IDB s procurement process vii. Adaptable for integration with other third party software including IFMIS (The National Treasury s Integrated Financial Management System) viii. Recording all relevant general ledgers for audit purposes. ix. Financial reporting and audit trail generation. (b) OBJECTIVES OF THE ASSIGNMENT The main objectives of the proposed assignment is to integrate into an existing Navision 2016 System all the necessary functions that shall facilitate the following; handling of all procurement processes, accounting and finance operations at IDB, administration of the fixed assets register, staff loans management and Human Resource Management processes including payroll, in a manner that conforms to industry standards and accommodates the IDB policies and procedures (c) SCOPE OF SERVICE Upon identification of a suitable solution service provider through the competitive bidding process, the selected firm will be required to undertake a broad range of activities in respect of providing services that will result in achievement of the objectives of the project. The scope of the assignment is stated here in broad terms as a guide to the bidders to enable them respond adequately to the RFP.

18 The project to be undertaken shall include and is not limited to the following broad and specific tasks: NAVISON 2016 FINANCIALS 1. Migration of IDB s Chart of accounts, the general ledger, fixed assets register, stores register, vendors register and financial data from Microsoft Dynamics Navision 2013 to the existing Navision Configuration of the existing Navision 2016 to incorporate and manage all functions including related data mentioned in clause (1) above. 3. Configuration of Navision 2016 to manage staff petty cash and imprest application processes. 4. Incorporate the financial revaluation functions existing in the old system (Navision 2013) into Navision Configuration of Navision 2016 to manage IDB s procurement, payments and receipting processes as administered in the old system (Navision 2013). NAVISION 2016 HRMS MODULE 6. Implementation of a Human Resource module to administer IDB s Human Resource processes including payroll and leave management. 7. Migration of employees, staff loans and payroll data from the Peopleplus Human Resource Management system to Navision Implementation of the staff loans management function on Navision 2016 to handle loans disbursed to IDB staff, generate repayment schedules,. 9. Implementation of both outpatient and inpatient medical schemes management for IDB. 10. Training of users both at administrative and operational level on the newly implemented functions on Navision The training will cover both technical and user training to a level that will ensure IDB staffs are comfortable to manage and operate the system after completion of the project. 11. Configuration of the System functionalities in accordance with the user requirements and workflow. 12. Configuration of the proposed system to have a live, testing and training environment. 13. Testing of the newly implemented functions and obtaining user concurrence on the operations and administrative features and settings.

19 NAVISION 2016 ERP As mentioned in clause (a) above, IDB endeavours to transition to a fully fledged Enterprise Resource Planning system based on the Microsoft Dynamics Navision platform, comprising of among others; i. A loans management Module ii. Humans Resource Management Module iii. Navision Financials iv. Procurement and Fixed Assets Management modules It shall therefore be imperative, that the identified vendor demonstrates the ability to implement, customize and support the modules aforementioned throughout the system s lifecycle. The vendor will be responsible for ensuring that IDB tests of all the agreed functionalities of the system are duly signed off after satisfactory testing. Where necessary, the vendor will undertake modifications or developments on the system to meet all necessary user requirements. The data to be migrated will include static and financial data. The amount of details to be migrated will be agreed at the negotiation stage after a vendor has been selected. This scope of the project is by no means exhaustive since it does not contain the details of the activities to be undertaken under each item of the scope. Various decision points will arise at each of the scope items which will be considered in accordance with the prevailing policies and procedures. (d) TRAINING This being a software solution, the importance of training of the users and the administrators cannot be overemphasized. In this regard, IDB expects a comprehensive training plan to be part of the proposal. With proper training, the acceptance level of any application is enhanced and the users gain confidence in its outputs. The training schedule that accompanies the proposal will form the basis of preparing a comprehensive knowledge transfer framework during the project. (e) REPORTS AND TIME SCHEDULE

20 As part of the technical proposal, the bidders are expected to provide a draft project plan covering the entire project life. The expectation on the part of IDB is that the project will not take longer than 80 working days from the commencement date. The commencement date will be the day when the actual project implementation starts and not the date when the procurement processes starts. The project plan should also indicate clearly what reports and their format that IDB will expect from consultants over the life of the project. Such reports will be based on the agreed milestones which the bidders are hereby asked to propose in their proposals. (f) DATA SERVICES, PERSONNEL AND FACILITIES TO BE PROVIDED BY IDB In the RFP, IDB has indicated what facilities, services and personnel it will make available during the project period. The bidders are requested to state in their proposals, the expectations they have which if met by IDB will facilitate completion of the project as per schedule. There will be data migration from the Peopleplus HRMS and Navision 2013 to the new system (Navision 2016). However, the mode of migration will be agreed after considering the structure of the data and the quantity. Bidders are expected to include the data migration activities in their schedule of activities. (g) TERMS OF PAYMENT The bidder should provide as part of their financial bid their proposed terms of payment. Upon selection, the proposed terms of payment shall be negotiated with IDB and whatever will be agreed upon will form part of the contract that IDB will enter into with the selected bidder. (h) TENDER SECURITY AND FINANCE BOND The bidder is expected to provide tender security equivalent to 2% of their financial bid. The acceptable forms of tender security include bank and insurance guarantees from reputable institutions acceptable to IDB. The tender security should be included in the financial bid and must not be part of the technical bid. Upon opening of the financial proposals, a bidder will stand disqualified if their financial bid is not supported by an acceptable tender security. The said security must remain valid for the period of tender validity. Upon selection of the

21 successful bidder, the firm will be expected to provide a performance bond equivalent to 5% of the agreed contract sum. (i) SOFTWARE LICENSE AND MAINTENANCE As part of the financial bid, the bidders are expected to provide details of licensing costs. The total financial bid should therefore include license fees for three additional user licenses on concurrent access basis, for use alongside the perpetual license of five users currently provided to IDB for Microsoft Dynamics Navision 2016 (j) STATEMENT OF USER REQUIREMENTS The following are basic user requirements for the implementation and configuration of all system functions aforementioned, as well as the Human Resource Management module in Navision 2016, as obtained from the user departments. These user requirements have been largely informed by the existing processes and policies and therefore form the minimum requirements. In this respect, the requirements shall be taken as primary guides of what should be achieved. Depending on the nature and unforeseen changes during implementation, some of these requirements may be served in an entirely different way from what the users perceived. This shall necessitate the incorporation of change management as part of the project. NAVISON 2016 FINANCIALS SYSTEM USER REQUIREMENTS The financials module should be capable of handling multiple-currency transactions. The system should be capable of managing both payments and receipting processes (accounts payables and receivables management). It should be able to link purchase requisitions to payment vouchers, resultant purchase orders, vendors and the items procured. It should ultimately update the store s inventory or the fixed asset register where appropriate. The system should be able to capture IDB s budget and adjust periods in; days, months, years or accounting periods.

22 The system should have the ability to capture vendor details for use during procurement and staff details to facilitate both imprest and petty cash management. The system should accommodate IDB s chart of accounts which comprises of GL accounts, Bank accounts and other transactional accounts used for IDB s financial operations. The system should be capable of performing bank reconciliations against all bank accounts managed through the chart of accounts. It should provide for flexible search options for retrieval of data and also be capable of linking vendors and IDB staff with all associated transactions within the wider system. The system should be able to manage user applications and issuing of store items to IDB staff and raise notifications against re-order levels set and total number of items. The financials module should provide for fixed assets management i.e classify all fixed assets as per procedure and calculate depreciation through to disposal of those assets and generate relevant reports. It should be able to use exchange rates to re-value foreign currency transactions against local currency transactions and record exchange gains or losses accordingly. The system should be capable of performing end of year processes to close the fiscal year and generate all relevant year-end reports. The system should apply the maker-checker principle of authorization on transactions where necessary. The system should be able to generate various transactional, financial and analytic reports and have provisions for customizing such reports. o NAVISON 2016 HRMS IMPLEMENTATION USER REQUIREMENTS The HRMS module should provide for the capturing of all employees bio data, manage the organization s payroll processes and generate relevant reports. The system should process employees gross earnings, allowances, pension contributions, all statutory deductions among others and net pay for each employee. The system should be capable of applying role assignment and / or maker checker control in the payroll processing functions whereby, preliminary payroll processing shall be done in the human resource department and final processing and closure of the target month shall be done by users in the accounts department.

23 The system should handle leave management by processing and controlling leave advances, accruals, conversions, usages and forfeitures for each employee. The system should provide for the management of IDB s medical systems (both outpatient and inpatient) by capturing the list of medical practitioners, hospitals and pharmacies endorsed by IDB, payment transactions for medical services offered to IDB staff against staff entitlements. The system should ultimately generate all the relevant reports associated with the processes. The system should provide for the management of IDB staff loans by; o Capturing and defining of all staff loan products based on; loan type, loan tenure and the interest rates. o Accepting different staff loan products for an individual member of staff and allow IDB staff to have access to different loan products. o Associating individual staff members against all loans advanced to them. o It should be able to capture details of all approved staff loans and globalized setup for all relevant loan parameters such as interest rates and repayment period, with flexibility of customization at individual staff level with the staff level details overriding the global settings. o It should be able to generate loan repayment schedule(s) for all staff loans advanced and history. o A functionality to automatically recognize deductions due, to an individual staff against all staff loans advanced or necessary deductions (other than those that are statutory) and applying those deductions during every payroll run to net-off from salary shall be an essential function. o The system should be able to maintain a detailed history of all transactions on staff loan accounts. o It should be able to generate a loan statement clearly showing how much was advanced, how much has been repaid over the period, how much is outstanding and all amounts broken down into principle, interest, and charges where applicable. o The system should provide for reversals of errors with use of relevant authority / approvals and maintain auditable information on all reversals. o The system should be able to generate various staff loan reports and have the capability for customizing such reports.

24 o The system should be able to check staff commitment levels against their salaries and allow loan approvals for staff with a commitment level of 67% o The system should allow for staff loan re-scheduling that should trigger maker checker controls. o The system should be able to link with the chart of accounts and raise all relevant accounting entries relating to the staff loan process. o It should have a comprehensive audit trail that will capture and store in an encrypted form, all user actions. The system should have a comprehensive security management capability, allow for role assignment and limit users to actions only allowed for their profiles. Tax computation and generation of tax reports(pr9) Generate reports of the statutory deductions made Generate bank payment schedules (k) MANDATORY REPORTS EXPECTED BEFORE GO-LIVE The following reports shall form the deliverables expected to fully functional together with the requirements highlighted in clause (j) before Go-Live. HRMS REPORTS 1. Company pay slips 2. Bank payment schedule 3. Outstanding loan balances 4. Payroll deductions 5. Tax returns(p9&10) 6. Staff leave reports i. NAVISION REPORTS 1. Trial balance 2. Balance sheet 3. Profit and loss 4. Customized management reports ( B/S and P/L) 5. Comparative reports on the financial statements 6. Fixed asset register 7. Depreciation schedule 8. Creditors register 9. Petty cash & imprest reports

25 (l) CONCLUSION The successful bidder shall enter into contract with IDB after negotiations. The contract shall be as of the form prescribed by the Public Procurement Regulatory Authority for procurement of consulting services as modified to the specific requirements of the assignment and the negotiations. The assignment shall commence only upon execution of the contract.

26 SECTION III - GENERAL CONDITIONS OF CONTRACT 3.1 Definitions In this Contract, the following terms shall be interpreted as indicated:- (a) "The Contract" means the agreement entered into between the IDB and the tenderer, as recorded in the Contract Form signed by the parties, including all attachments and appendices thereto and all documents incorporated by reference therein. (b) (c) (d) (e) "The Contract Price" means the price payable to the tenderer under the Contract for the full and proper performance of its contractual obligations "The Goods" means all of the equipment, machinery, and/or other materials, which the tenderer is required to supply to the IDB under the Contract. "The Procuring entity" means the organization purchasing the Services under this Contract. "The Tenderer' means the individual or firm supplying the Services under this Contract. 3.2 Application These General Conditions shall apply shall apply to the extent that they are not superseded by provisions of other part of the contract For purposes of this clause, "Origin" means the place where the Goods were mined, grown or produced The origin of Goods and Services is distinct from the nationality of the tenderer. 3.3 Standards The Services supplied under this Contract shall conform to the standards mentioned in the Technical Specifications. 3.5 Use of Contract Documents and Information

27 3.5.1 The tenderer shall not, without the IDB's prior written consent, disclose the Contract, or any provision therefore, or any specification, plan, drawing, pattern, sample, or information furnished by or on behalf of the IDB in connection therewith, to any person other than a person employed by the tenderer in the performance of the Contract The tenderer shall not, without the IDB's prior written consent, make use of any document or information enumerated in paragraph above Any document, other than the Contract itself, enumerated in paragraph shall remain the property of the IDB and shall be returned (all copies) to the procuring entity on completion of the Tenderer's performance under the Contract if so required by the IDB. 3.6 Patent Rights The tenderer shall indemnify the Procuring entity against all third-party claims of infringement of patent, trademark, or industrial design rights arising from use of the Goods or any part thereof. 3.7 Performance Security The proceeds of the performance security shall be payable to the procuring entity as compensation for any loss resulting from the Tenderer's failure to complete its obligations under the Contract The performance security shall be denominated in the currency of the Contract, or in a freely convertible currency acceptable to the procuring entity and shall be in the form of a bank guarantee or an irrevocable letter of credit issued by a reputable bank located in Kenya or abroad, acceptable in the form provided in the tender documents The performance security will be discharged by the procuring entity and returned to the Candidate not later than thirty (30) days following the date of completion of the Tenderer's performance obligations under the Contract, including any warranty obligations, under the Contract 3.8 Inspection and Tests The Procuring entity or its representative shall have the right to inspect and/or to test the services to confirm their conformity to the Contract specifications. The procuring shall notify the tenderer in writing in a timely manner, of the identity of any representatives retained for these purposes The inspections and tests may be conducted in the premises of the tenderer or its subcontractor(s), at point of delivery, and/or at the Services' final destination If

28 conducted on the premises of the tenderer or its subcontractor(s), all reasonable facilities and assistance, including access to drawings and production data, shall be furnished to the inspectors at no charge to the procuring entity Should any inspected or tested service fail to conform to the Specifications, the procuring entity may reject the services, and the tenderer shall either replace the rejected services or make alterations necessary to make specification requirements free of costs to the procuring entity Nothing in paragraph 3.8 shall in any way release the tenderer from any warranty or other obligations under this Contract. 3.9 Packing The tenderer shall provide such packing of the Goods as is required to prevent their damage or deterioration during transit to their final destination, as indicated in the Contract The packing, marking, and documentation within and outside the packages shall comply strictly with such special requirements as shall be expressly provided for in the Contract 3.10 Delivery and Documents Delivery of the services shall be made by the tenderer in accordance with the terms specified by IDB in its Schedule of Requirements and the Special Conditions of Contract 3.11 Payment The method and conditions of payment to be made to the tenderer under this Contract shall be specified in Special Conditions of Contract Payments shall be made promptly by the Procuring entity as specified in the contract