MALAWI COMMUNICATIONS REGULATORY AUTHORITY REQUEST FOR PROPOSALS (RFP) FOR THE ESTABLISHMENT OF THE COST OF PROVIDING UNIVERSAL POSTAL SERVICE IN MALAWI 1.0 BACKGROUND TERMS OF REFERENCE Government of Malawi recognizes the development of Postal services as one its key development of the communications sector. Postal services are considered to be one of the low cost means of communication among the majority of the population and plays a key role in national socio-economic development. The role of postal services in the development of the country includes: i. Facilitates communication within the country and with the rest of the world. ii. Facilitates trade, through the movement of parcels and other goods within the country and internationally. iii. Rural development and poverty alleviation through employment creation, provision of money transfer services, micro-finance services, etc. iv. Foreign currency generation and inflows into the country through terminal dues and Foreign Exchange services v. Bridging the digital divide, through provision of internet cafes and other information communication technologies (ICTs) within the postal network. vi. Contributes to education and literacy through the international letter writing competition vii. Contributes to GDP through output from the postal sector viii. Global partnership for development, e.g. UPU Quality of Service Fund (QSF). However, one of the issues impeding the development of the postal sector in Malawi is the absence of a detailed costing of services considered to falling under the categories Universal Postal Services in Malawi. The assessment of the cost of providing universal postal service is crucial to ensuring that the designated public postal operator is properly compensated and is providing acceptable quality of basic postal services. With the availability of such information and agreed methods of funding such services, Government s primary objectives of ensuring that its citizens enjoy acceptable quality of Universal Postal Services (UPS) will be achieved.
For the Universal Postal Services to be all inclusive and available to all sections of the country, there is need to have a clear determination of the cost of Universal Postal Services (UPS) and its provision that is in tandem with Government s development goals. 2.0 JUSTIFICATION FOR ESTABLISHING UPS IN MALAWI Universal Postal Union (UPU) member countries have the responsibility to come up with a clear definition of universal postal services, in line with their specific national requirements and conditions. In pursuit of the objectives of the Doha World Postal Strategy (2013-2016), Government has an obligation to ensure the provision of universal postal services to all citizens in its country. More specifically goal number four emphasizes the need to foster sustainable development of the postal sector. Government also has the full responsibility to provide the legislative framework for the postal sector and the necessary mechanisms to ensure the provision of universal postal services. Malawi, just like many other developing countries, does not have clearly defined Universal Postal Services (UPS) even though attempts have been made by CRASA to provide general guidelines for the definition of UPS. Coming up with a clear definition of universal postal service (UPS), is the first step in the postal reform process. A clear definition of universal postal service will provide the basis for formulation of the National Postal Sector Policy, as well as the establishment of a comprehensive legal and regulatory framework. In view of the critical role that postal services play in national socio-economic development, it is imperative to undertake an analysis of the population demographics in relation to the postal needs of communities, individuals and businesses. Once UPS is clearly defined, this will provide the basis for calculation of the costs of providing universal postal services and coming up with policies on funding mechanisms to be adopted, to support the provision of universal postal services. It is, therefore, against this background that a detailed study be undertaken in Malawi, with a view to determine and come up with an agreed cost of UPS. 3.0 OBJECTIVE FOR THE ASSIGNMENT The main objective of the Consultancy is to establish the cost of providing Universal Postal Services (UPS) in Malawi through the development of Universal Postal Service Costing Model. Specific objectives for the Consultancy will include among others: Study and analyze the existing postal services and recommend the appropriate costing methodologies that can be applicable to Malawi market; Develop a general definition and concepts for UPS applicable to Malawi in line with UPU Act and SADC definitions; Develop costing principles that will be applied to set the tariffs and other charges for different classes and categories of Universal Services and products; Develop and design a cost model for the various UPS to be used by the Authority and designated public postal agency; and Train and transfer skills to MACRA staff on the cost modelling for UPS.
4.0 SCOPE OF ASSIGNMENT The development of a Costing Model will cover the following main areas: i. Definition of the scope of postal services to be included in the definition of UPS in Malawi:- Range of products and services to be provided as universal postal services and the weight limits. Individual description of the various classes of service. ii Specifications of the performance conditions: The expected performance indicators should be clearly defined, in terms of: -Access -Quality of Service Speed and Reliability Security and Continuity -Price iii Cost Estimates based on outlining of model and calibration, and three types of scenarios for different levels of performance: Costs of UPS for the scenario of each simulation Analysis of each case Recommendation of the most favourable and convenient situation iv Establishing the composition of the cost elements. v. Analysis of the main cost factors and identification of the determinant variables (frequency, distances, weight, speed, etc.). vi. Construction of formula and structuring of the Costing Model. vii. Execution of consistency tests and technical validation. viii. Publication and presentation of the UPS Costing Model. 4.1 DELIVERABLES The consultancy will be expected to provide reports on each and every stage on outcome thereof. Project inception report Project inception report will clearly articulate the methodology to be used in the study and project time schedule. The main objective of the project inception report is to ensure that there is common understanding between MACRA and the Consultant.
Interim report An Interim Report will cover among others the following areas: A clear Definition of Universal Postal Services (UPS) highlighting the range of products and services to be provided as universal postal services and the weight limits including individual description of the various classes of service. A review of the current situation of postal services in Malawi, encompassing the range of products and services offered by Malawi Post, quality of service, the level of postal development etc. Review of the basic postal services provided by private postal operators and other players in the market. UPS Cost ModelAn UPS Costing Model that is developed through a systematic construction of formula and establishment of the composition of the cost elements and analysis of the main cost factors and identification of the determinant variables (frequency, distances, weight, speed, etc.) Draft final report Execution of consistency tests and technical validation. A draft final report will incorporate the following: Outline Government s expectations on the provision of UPS, in terms of accessibility, availability and quality of service standards (Speed, reliability, security of mail etc.) A review of the population and geographic characteristics of Malawi and the postal needs of communities, individuals and businesses. An outline of the postal indicators based on service accessibility and quality of service can be utilised. Stakeholders validation workshop Final report A stakeholder workshop presentation of the validation of draft final report to stakeholders The final reports marking the milestones of the project shall be submitted in 3 hard bound copies together with the respective data files, and soft copy. All other reports/documents shall be submitted via e-mail only. The format of all documents shall be compatible with MS Office 2007 applications. Pictures, drawings, schemes, etc. may also be either in.pdf,.tif or.jpg format. Compressed files may be in.zip format only. Capacity building
The need to train and deliberate transfer of knowledge of the whole process to key MACRA staff who will be involved in the model assignment. Off site training of MACRA staff in appropriate UPS cost models and analysis with a follow up training on the use of the cost models developed. The need to develop a User Guide to enable MACRA staff to use and amend the models in the future based on changing market conditions. 5.0 QUALIFICATION OF THE CONSULTANT Education: The successful firm which must have a multidisciplinary team of at least three (3) leading Consultants who must have a minimum of a master s degree in business administration, Economics, Management, Accountancy or any relevant equivalent qualification in the social sciences field from recognised universities with extensive experience in Postal Sector of not less than ten (10) years in management position and fully understand the Acts of the Universal Postal Unión and The Geneva Charter. It is expected that the successful firm shall have a Team leader for the assignment who shall also be qualified with a minimum of master s degree in business administration, Economics, Management, Accountancy or any relevant equivalent qualification in the social sciences field from recognised university with not less than 5 years of working experience as a team leader under multiple projects with proven relevant knowledge and expertise in the postal sector particularly in Sub-Saharan Africa. In addition the consultants must have experience in Mail Logistics and fully appreciates the dynamics and cost of mail transmission by third parties as provided in the Communications Act of 1998. Interested consultants should possess and submit proof of: (i) (ii) (iii) (iv) Previous experience on similar assignment At least ten (10) years experience in postal sector preferably Public Postal Operation or postal regulation; Experience in working with government officials and excellent writing and communication skills preferably in English are required; Knowledge of, and experience in, the postal sector, Working language The working language is English 6.0 METHOD OF SELECTION OF THE CONSULTANT The consultants shall be selected in accordance with the Quality and Cost Based Selection (QCBS) procedures as set out in the Government of Malawi Procurement Guidelines. Consultants are therefore instructed to submit their proposals in two separate labelled envelopes, one for the Technical Proposal and another one for the Financial Proposals.
6.1 Technical Proposal The technical proposal shall take into consideration the following areas: a) Previous experience in similar assignment. b) At least ten (10) years experience in postal sector preferably Public Postal Operation or postal regulation; c) Experience in working with government officials and excellent writing and communication skills preferably in English are required; d) Knowledge of, and experience in, the postal sector, 6.2 Financial Proposal The financial proposal shall indicate separately, professional fees, all relevant reimbursables, and all government taxes. However, it shall not include workshops /conferences and meetings with various stakeholders that shall make part of the exercise. 6.3 Evaluation Evaluation shall be carried out in two stages: Technical and Financial Proposal a) Technical Proposal: This shall be an evaluation of how the technical details provided by the bidder match with the technical specifications laid down in the RFP document and these TOR s. Determination of the technical evaluation results shall be based on the following point rating. Criteria Points (i) Consultants specific experience of working on similar assignment 10 (ii) Consultants Proposed Methodology 40 (iii) Experience and Qualifications of key personnel; training attained, Positions held and period of service with consulting firm 20 (iv) Adequacy of key staff qualifications and experience for the Assignment; Education, training and experience of the Postal Sector 20 (v) Deliberate plans for transfer of knowledge/capacity building to MACRA staff 10 Total 100 It should be noted that the Technical Proposal score shall constitute 70% of the total score by each consultant. b) Financial Proposal Financial proposal shall take into consideration the price quoted by the consultants and shall constitute 30% of the total score.
7.0 LOCATION AND DURATION MACRA will procure the Consultancy Service and the whole project will be supervised by MACRA on behalf of the Malawi Government. The maximum project duration from the date of signing to the delivery of the final report shall be 3 to 4 months. Location(s) of assignment Malawi 8.0 OBLIGATION OF THE CONSULTANT The successful consultant is to discharge its responsibilities to the expected professional standards and integrity. 9.0 CLIENT CONTRIBUTION MACRA shall provide to the successful consultant with all relevant data and information on the background of the postal sector and the status quo. Additionally, MACRA shall assist the consultant with access to any institutions for information that may be required by the consultant. The contact person during the consultancy shall be the Director General 10.0 DETAILED RFP DOCUMENT Interested consulting firms MUST obtain a detailed RFP document at the address below during office hours (08:00-17:00 hours during working days except weekend and public holidays): 11.0 PROPOSAL SUBMISSION Malawi Communications Regulatory Authority (MACRA) MACRA House Ginnery Corner Salmin Amour Road P/Bag 261 Blantyre MALAWI Attention: Procurement Specialist Tel: +265 1883 611 Fax: +265 1883 890 E-mail: jngalawa@macra.org.mw Completed copies of proposals in sealed envelopes clearly marked PROPOSAL FOR ESTABLISHMENT OF THE COST OF PROVIDING UNIVERSAL POSTAL SERVICE IN MALAWI" should be submitted in
two separate envelopes one marked "Technical Proposal" and the other one marked "Financial" and must be delivered to the following address: 12.0 Proposal Opening The CHAIRPERSON Internal Procurement Committee, Malawi Communications Authority MACRA Salmin Amour Road, Ginnery Corner P/ Bag 261, Blantyre. MALAWI E-mail: dg-macra@macra.org.mw Tel: +265 1 883 611 Fax: +265 1 883 890 Opening of proposals shall take place in MACRA Boardroom on 6 th May, 2016 at 15:00 hours and bidder s representatives and the general public who wish to attend are most welcome. MACRA is however, not bound to accept the lowest or any proposal but reserves the right to exercise choice of lowest evaluated, substantially responsive proposal and can cancel the procurement proceedings at any stage.