Hiring of Consultant/Firm to Offer Consultancy for Business Modelling
Location: Wajir
Tender №: NBO
Project : Wajir Drylands and Livestock Improvement Project
Date: 7
th
Janaury 2015
Account Code: 91018
Sub Code: 506
Cost Center: 91018L506
Page 1 of 10
1. INVITATION TO TENDER
TENDER REQUESTED BY:
Mercy Corps Kenya, Nairobi Office.
SUBJECT OF THE TENDER:
Hiring of Consultant/Firm to Offer Consultancy for Business Modelling
of Rural Water Supply Schemes in Wajir County.
General Information: Mercy Corps invites sealed technical and financial proposals
from eligible applicants for the above service (s).
Complete tender documents containing, scope of work and other terms and conditions
can be collected by sending an email to: igachuhi@ke.mercycorps.org or from the office
address.
Submission:
Offer(s) should be submitted in a sealed envelope, addressed to
“Procurement Department, Mercy Corps Kenya, Nairobi Office”,
Sealed Offer from “Name of Offering Contractor.” and delivered to
ABC Place, Waiyaki Way, 3
rd
Building, 1
st
Floor, Nairobi, Kenya. Tel: No.
020.444.1126/43./0733808106
On or before Friday January (16
th
), 2015, between the hours of 09:00 am to 02:00 pm.
Offer(s) received after this time will not be considered.
Tender Document
Location: Wajir
Tender №: NBO
Project : Wajir Drylands and Livestock Improvement Project
Date: 7
th
Janaury 2015
Account Code: 91018
Sub Code: 506
Cost Center: 91018L506
Page 2 of 10
2. Tender Document’s Receipt
I hereby acknowledge receipt of one set of tender documents for the above service(s).
1.
Invitation to Tender
2.
Tender Document’s Receipt
3.
General Conditions for Tender
4.
Scope of work
5.
Advertisement Copy
Name and Last Name:
Company / Individual Name
& Address:
Signature:
Date and Time:
Consultant’s Name:
Tender Document
Location: Wajir
Tender №: NBO
Project : Wajir Drylands and Livestock Improvement Project
Date: 7
th
Janaury 2015
Account Code: 91018
Sub Code: 506
Cost Center: 91018L506
Page 3 of 10
3. General Conditions for Tender
Scope: Mercy Corps Kenya invites sealed –Bids for the services described and
summarized in accordance with procedures, conditions and contract terms, as prescribed
in the documents as well as in advertisement.
1. Language: As determined by Mercy Corps, the working language of this tender is
English.
Other languages will not be accepted.
2. Source of Financing: The job is financed by DFID.
3. Qualifying conditions: The general criteria for admission to tender is following:
The team Leader(Lead consultant) should have a Degree in Management,
Economics, Finance &, Business Administration, engineering
Extensive experience in water and sanitation sector policy development and
evaluation with at least 10 years working sector issues in developing countries.
Experience in design and evaluation of tariff structures and billing /collection
systems, business modelling for water and sanitation sector .
Familiarity with tariff structures and billing /collection systems in use for rural
water supply.
Consultancy team should also include a Specialist in Civil (Water) Engineering:
Degree in Civil (water) Engineering Knowledgeable in water related
infrastructures with broad experience in water utilities operations and
Management.
Tender Document
Location: Wajir
Tender №: NBO
Project : Wajir Drylands and Livestock Improvement Project
Date: 7
th
Janaury 2015
Account Code: 91018
Sub Code: 506
Cost Center: 91018L506
Page 4 of 10
4. Tender Basis:
All documents must be completed in full and fulfill the general criteria for
admission to tender; otherwise the application will be disqualified.
All Applicants/firms will receive identical documents: No applicant should add,
omit, or change any item, term or condition on original papers.
Each applicant/firm should make one bid only.
Bids must have clear validity date. Bids with the longer validity are preferred.
Bids shall be made in writing calculated in Kenyan Shillings (KSH) only.
Applicants/ firms must have the capacity to start and complete the work within
given time.
The applicant/ firm shall abide by the timetable and delivery schedule provided by
the organization.
5. Tender Documents: All documents included in this package are listed on the
document Receipt Form, signed by each recipient.
6. Eligibility of Applicants: Applicants cannot apply if they:
Are not fulfilling the admission criteria of the Tender.
Have not been convicted for an offense concerning professional conduct.
Have not been guilty of grave professional misconduct (proven by any means
which the contracting authorities can justify).
Have fulfilled obligations related to payment of social security and taxes.
Are not guilty of serious misinterpretation in supplying information.
Are not in situations of conflict of interest (with prior relationship to project to
parties on Tendering Committee).
Were not declared at serious fault of implementation owing to a breach of their
contractual obligations
Are not on any list of sanctioned parties issued by the Government of Kenya and
United States.
7. Technical and Financial Proposal: Technical proposal should show methodology
and tools that will be used to execute the assignment and also include
Company/Personal Profile and indicate capability of consultant/firm to perform the
desired service and past experience on similar assignments. However, financial
proposal should include entire consultancy fee with cost breakup, validity, delivery
schedule.
8. Bid(s) Delivery: Bids containing technical and financial proposal will be delivered
to Mercy Corps in a sealed envelope. The envelope will be clearly marked with the
Tender Document
Location: Wajir
Tender №: NBO
Project : Wajir Drylands and Livestock Improvement Project
Date: 7
th
Janaury 2015
Account Code: 91018
Sub Code: 506
Cost Center: 91018L506
Page 5 of 10
precise reference of the invitation to which it is a response, the delivery address and
the name of the applicant.
9. Bid Opening: The bids will be opened only in the presence of the Mercy Corps’
tender committee, at the address specified on the Tender Documents.
10. Bid Evaluation: The tender committee will review the tenders to ensure that they
contain no amendment to the terms or any other (calculation) errors. To assist in the
examination, evaluation and comparison of bids, the tender committee may, at its
discretion, request clarification from applicant/firm.
Technical Evaluation: The offers will be evaluated on technical and financial merits.
The technical evaluation assesses the capacity of the applicant/firm on the basis of
submitted technical documents. Point will be allocated to a maximum indicated in the
table below.
Criteria
Possible
points
Gained
points
Copy of Registration Certificates, Tax Compliance Certificate-
Legal Binding
--------
--------
a. Experience in Business modelling of Rural water Supply
Schemes
20%
b. Previous experience working in a similar capacity
10%
c. Methodology
20%
d. Recent experience in similar engagements
5%
e. Proposed approach
10%
f.Completion of service within timeframe
5%
g. Cost
30%
TOTAL:
100%
Financial Evaluation: The financial evaluation is based on the cost of work given in the
tender.
Other Evaluations: After ranking companies according to financial and specification,
the tender committee may take into account other criteria, including, but not limited to
record of past performance, integrity, and community rapport, when assigning companies
to the designated short list.
Tender Document
Location: Wajir
Tender №: NBO
Project : Wajir Drylands and Livestock Improvement Project
Date: 7
th
Janaury 2015
Account Code: 91018
Sub Code: 506
Cost Center: 91018L506
Page 6 of 10
11. Selection of Tender: Selection of the successful applicant will be based on the
ranking of companies according to financial and technical specification, as well as any
other criteria suggested by the tender committee. Based on this, the tender committee
will then make a recommendation.
12. Acceptance of Successful Tender: Taking into consideration the recommendation
of the tender committee, Mercy Corps will make the final choice of the awarded firm.
Mercy Corps will then send a letter of acceptance to the successful applicant. After
submitted documentation from the selected firm has been verified, the firm will then be
obliged to sign the contract for the stated amount. Any amendment to the awarded tender
will be documented as an “Annex” to the contract and will be determined by Mercy
Corps. The decision of tender committee will be considered final.
4. Scope of Work
CONSULTANCY FOR BUSINESS MODELLING OF RURAL WATER POINTS
IN WAJIR COUNTY
WAJIR COUNTY –KHOROF HARAR (WAJIR –EAST) AND HADADO (WAJIR
WEST ) WATER SCHEMES
Background:
Mercy corps Portfolio in Wajir takes a market-based approach to building resilience and
economic growth. Our programs are aimed at strengthening systems and mechanisms to
enable sustainable development while maintaining the ability to meet immediate needs
during crisis. Mercy Corps works closely with partners including community members,
local government officials, and private sector stakeholders to ensure community-driven
and market-led development interventions.
One of the main objectives of our current program; Dry lands and Livestock
Improvement Project (DALIP) is to improve the professionalization and
commercialization of water services in Wajir by encouraging and facilitating greater
private sector participation in the water sector. Under this Mercy corps has been
supporting Wajir water and Sewerage Company to improve its capacity to provide access
to clean and affordable water to the people of Wajir among others.
Purpose / Project Description:
The county government of Wajir recently established the Wajir Water and Sewerage
Company ltd to manage water services provision in the county. The company has been
tasked to provide management of rural water points. MercyCorps is supporting the
company by piloting delegated management models at two selected water points with the
aim of show casing to the other water points the benefits of sustainable management of
water services. The main purpose of this assignment is to develop a viable business
model for delegated management model between the community, Wajir water company
Tender Document
Location: Wajir
Tender №: NBO
Project : Wajir Drylands and Livestock Improvement Project
Date: 7
th
Janaury 2015
Account Code: 91018
Sub Code: 506
Cost Center: 91018L506
Page 7 of 10
and a delegated operator(see diagram below) at the two piloted water points that can later
be scaled up to other water points in the county.
Diagram 1: Proposed delegated Management Model for Hadado and Khorof Harar
The two communities described, Hadado and Khorof Harar are medium sized remote
rural towns in Wajir County with populations of about 2,000 Households for Hadado and
5,000 for Khorof Harar.
The primary water sources for both are deep high yield boreholes with gravity
distribution system to public water kiosks, livestock troughs, schools, hospitals, police
stations. There are a few individual household water connections. It is worth noting that
the major water users are livestock accounting for over 70% of water revenues which
preliminary studies by MercyCorps indicate to be Ksh.15,000-22,000 daily.
Tender Document
Location: Wajir
Tender №: NBO
Project : Wajir Drylands and Livestock Improvement Project
Date: 7
th
Janaury 2015
Account Code: 91018
Sub Code: 506
Cost Center: 91018L506
Page 8 of 10
Consultant Objectives:
The objective of this short consultancy is:
(i) To create a viable business model for the delegated management system based
around community-Utility partnership or utility-private
sector/entrepreneur for rural water points in Hadado and Khorof Harar. The
model should incorporate relevant operational variables including labor,
materials and energy costs, supply and demand variation, variable/seasonal
pricing, capital investment costs, etc.
(ii) Undertake financial forecasts of the water scheme including estimating consumer
base and corresponding income and expenditure for different scenarios: high,
medium and low usage of the scheme and financial flows for each of the
parties involved in the delegated management arrangements.
(iii)Facilitate MercyCorps, WAJWASCO and the community to develop contractual
arrangements between WAJWASCO, community, delegated operators clearly
setting out scopes of services, roles and responsibilities of each party
including sharing and management of revenues, collection of user fees,
operation and management of facilities etc.
The business model should also enable Wajir Water and Sewerage Company Ltd
(WAJWASCO) to evaluate the impact and potential for innovative initiatives such as
the use of solar-powered gensets (generators) and pre-paid metering system especially
for livestock troughs and public water kiosks.
There are a number of key principles which guide this assignment, most of which need to
be incorporated directly or implicitly into the model.
Sustainability recognizing that the management needs to aim for operational
financial sustainability absent from NGO and/or government support and
investment.
Contextualization considering key elements of the local and regional context
including the regulatory, legal environment and socio-cultural issues which are
strongly embedded around water as a social good.
Seasonality and climate incorporating factors that impact the water supply
contribute to annual and usage patterns including recurrent droughts.
Capacity of key stakeholders including local communities, private sector actors
and government authorities and NGO partners.
Consultant Activities:
1. Assess the current and future opportunities of water tariff systems; make
recommendations for water tariff structures and billing/collection systems; identify
specific circumstances where operating subsidies would be; Required and how they
should be set and paid in relation to the Services provided; make recommendations on
tariff review concerning the promotion and monitoring of recommended practices as
well as regulatory mechanisms for the oversight of tariff systems and periodic tariffs
review.
Tender Document
Location: Wajir
Tender №: NBO
Project : Wajir Drylands and Livestock Improvement Project
Date: 7
th
Janaury 2015
Account Code: 91018
Sub Code: 506
Cost Center: 91018L506
Page 9 of 10
2. Conduct additional research as necessary to understand the economic and operational
drivers necessary for business model development including demand and supply
seasonal variability dynamics
3. Co-design with Mercy Corps WASH Team a flexible business model (Excel) based
on known operational and financial metrics so as to meet the above described
objectives. This should be based on water and sanitation sector industry best practice
and enable assumption testing for Wajir water point context.
4. Assist with development of alternative key business assumptions, designed to address
contextual uncertainty, and optimize the business model and revenue potential.
5. Other mutually-agreeable tasks as requested by Mercy Corps.
Consultant Deliverables:
The Consultant will deliver:
1. Provide a Detailed methodology and tools of how the assignment will be executed
2. Final report of a Comprehensive business model incorporating key elements and
variables fully meeting the above described objectives.
3. Proposed contractual arrangements for the delegated management model detailing
capacity needs and best strategies for capacity development of the different parties
involved
Timeframe / Schedule:
Two weeks for field work and related research/studies, one week for submission of final
reports.
The consultant will report to:
MercyCorps WASH Advisor
The consultant will work closely with:
The Managing Director of Wajir Water and Sewerage Company Ltd, community
representatives, relevant county and national government institutions of and other
development partners.
Consultancy Team Qualifications
1. Team Leader: Degree in Management, Economics & Finance, Business
Administration, Extensive experience in sector policy development and evaluation with
at least 10 years working sector issues in developing countries, Experience in design and
evaluation of tariff structure and billing/collection systems, business modelling for water
and sanitation sector, Familiarity with tariff structures and billing/collection systems in
use for rural water supply,
2. Specialist in civil (water) engineering: Degree in Civil (water) engineering:
Knowledgeable in water related infrastructures with a broad experience in water utilities
operations and management.
Tender Document
Location: Wajir
Tender №: NBO
Project : Wajir Drylands and Livestock Improvement Project
Date: 7
th
Janaury 2015
Account Code: 91018
Sub Code: 506
Cost Center: 91018L506
Page 10 of 10
3. The consultant must submit a detailed technical proposal including proposed
methodologies, data analysis and interpretation, reports and work schedule.
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