NATIONAL SOCIAL SECURITY FUND

REQUEST FOR EXPRESSION OF INTEREST (REOI) FOR THE PROVISION OF A PENSION ADMINISTRATION SYSTEM (PAS) AND ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM REFERENCE NUMBER: NSSF/CONS/2016-2017/00090

1. Background, problem statement and objectives 1.1. Background The National Social Security Fund (NSSF, or “the Fund”) is a National Saving Scheme mandated by the Government of Uganda through the National Social Security Fund Act 1985. As a statutory provident fund, NSSF is mandated to provide social security benefits to its members, who mainly comprise employees of organisations that employ more than 5 people. The Fund derives most of its membership from the private sector and offers the following statutory benefits: Age Benefit, Withdrawal Benefit, Exempted Employment Benefit, Survivors Benefit, Emigration Benefit and Invalidity Benefit. . NSSF currently has an active membership base of about 700,000, which is less than 10% of the estimated labour force of Uganda. This implies that the vast majority of the labour force, most of whom are in the informal sector, are without a structured form of social security. The pension sector is however undergoing reforms to improve coverage and depth of social security so as to make the scope of benefits more relevant to the society needs of the day. This has a number of implications: a) To begin with, while the current law limits social security to just 6 benefits, the reforms are expected to widen the range of benefits to include other key pillars of social security such as housing and medical; b) Related to the above, the reforms also expect to entertain the idea of “mid-term access”, wherein members contributing to a scheme will be allowed to access part of their savings at an earlier period than the official retirement age of 55 as pertains currently; c) Innovations in pension products are expected to widen scope of service delivery to include voluntary savings contributions. d) It is also likely that in the near future NSSF will be required to provide pensions by way of annuity payments or a hybrid of annuity payments and the current lump-sum payment model. In light of the above, the Fund has prepared a long-term business strategy that focuses on three thematic areas: I. II. III.

Customer centricity; Growth; and Innovation and excellence in service delivery

The above areas of strategic focus will not only ensure that the Fund is adequately prepared for the expected changes in the business environment, but also position the Fund to retain and grow its existing membership base. The new business strategy runs from 2015 to 2025 with the first three years focused on addressing gaps in service delivery capabilities. To this end, the Fund has recently completed a detailed evaluation of its people, process and technology environment and has embarked on a business transformation exercise that will address the identified business capability gaps.

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1.2. Problem Statement One of the major service delivery gaps identified was the structure of its core business processes (Registration of members, Contributions Collections, Reconciliation, Benefits Payments, Reporting), which do not adhere to key principles of customer-centric servicedelivery such as: a) b) c) d) e) f)

3600 – view of the customer; Straight-through- processing of transactions; 24/7 service; Services from multiple-access channels; Self-service capability; Transparency

Consequently, the outcome of the aforementioned evaluation resulted in the re-designing of the core business processes of the Fund to adhere to the above principles. On this basis, the Fund has developed detailed functional and technical requirements for purposes of procuring a Pension Administration System (PAS) that is intended to enable implementation of the redesigned business processes. In a further bid to improve organisation-wide process efficiency and effectiveness, the Fund is also reviewing its business-support processes (Financial Management, Human Resource Management, Document Management, Investment Management and Procurement) to ensure there is a seamless interaction between the core business processes and support processes. This in turn will facilitate the development of functional and technical requirements for an Enterprise Resource Planning (ERP) system. The ERP is expected to enable implementation of the re-designed business-support processes and, together with the PAS, deliver a seamless and enhanced consumer experience to the customers and key stakeholders. To successfully re-engineer the core and non-core processes of the Fund – which will be supported by a PAS & ERP respectively – considerable effort will be required in the area of change management. As such, while the Fund is intent on investing in a PAS & ERP; the solution provider it is seeking is one that is able to come on board as a strategic partner with proven capabilities in change management related to major business transformations. The Fund’s transformation agenda has been code-named Kuboresha – a Kiswahili word denoting the essence of pursuing excellence in its processes, people and technology environment.

1.3. Objectives (Scope Definition) Against this background, NSSF is undertaking a project to identify, procure, implement, configure and maintain a PAS and an ERP. The procurement of the PAS and ERP will be undertaken concurrently, in 2 lots as follows: • Lot 1 will consist of the identification, delivery, implementation, configuration and maintenance of the PAS. The PAS will support the core business processes of the Fund. •

Lot 2 will consist of the identification, delivery, implementation, configuration and maintenance of the ERP. The ERP will support the non-core or supporting business processes of the Fund.

To this end, NSSF is seeking the services of a capable and widely experienced Strategic Technology Partner to provide, implement and configure a PAS and an ERP, and apply innovative technology solutions to keep the Fund ahead of the fast changing pension environment. Note: Expressions of Interest (EOIs) shall be submitted based on separate Lots as indicated above; however, it is the Fund’s expectation and preference to have one lead partner with the ability (in-house or through consortium/joint venture) to bid for both Lots. Submissions exclusive to just one of the Lots may however be considered at this stage.

NSSF requires the Strategic Technology Partner to: • • • •

clearly understand the fund’s business strategy; ”embed” themselves into the Kuboresha Programme and evolving team culture, and align their approach and methodology to that of the Programme; apply best practices in change management to enable the fund adopt the changes that will arise from implementing the PAS and ERP; provide an innovative PAS solution that:

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−

•

•

•

will enable the Fund’s customers easily access services of the Fund through various channels, that may include POS, ATMs, web portal, mobile applications, etc.; and − support the Fund to easily create new pension products and services for its members by way of flexible configuration tools that provide for Provident Funds, Pension Funds and/or hybrid arrangements; provide an ERP that will support and facilitate the seamless integration of the functions of the Finance, Human Resource Management, Document Management, Investment Management and Procurement through the provision of a unified, coordinated eco system, streamlined processes and information across these functions; Understand and be well-versed with the prevailing laws governing the Fund and Government Systems (NSSF Act, Uganda Retirement and Benefits Regulation Authority Act (URBRA) , the pending Liberalisation Bill, Electronic Transactions Act, Electronic Signature Act, Tax Legislation etc.); and Participate in development of a comprehensive implementation plan for rolling out the PAS & ERP.

2. Preliminary eligibility criteria

2.1. Requirements for Bidders forming a Joint Venture/Consortium (where the interpretation is that members/associates of a joint bid must have a legally recognized lead bidder and a relationship that commits and binds all members to the bid) a) It is preferred that the JV has a local/regional partner that will take part in the delivery of the assignment and stay on post-delivery for post-implementation support. 2.2. Regulatory and Compliance Criteria Refer to Table 1 below

Sn.

1.

Compliance requirement

The bidder must satisfy the requirement

Bidders must provide copies of the following:

Sole Bidder

Ugandana NSSF month of for foreign

Memorandum of Association Memorandum and Articles of Association

5.

Certificate of Incorporation Certificate of Incorporation

6.

NA

X

X

NA

x

X

NA

x

X

NA

x

X

NA

X

X

X

NA

Trading Licence Trading License certificate for 2016 for local firms and equivalent for foreign firms(if applicable in home country)

4.

X

Social security NSSF clearance certificate for based firms (Evidence being Clearance certificate for the September 2016) and equivalent firms

3.

All Partners JV(Combined)

Tax Uganda Revenue Authority Tax clearance/compliance certificate for local firms and equivalent for foreign firms (2016)

2.

Lead Partner in JV/Consortium

Registered & Notarized Powers of Attorney

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Sn.

Compliance requirement

The bidder must satisfy the requirement

Bidders must provide copies of the following:

Sole Bidder

Lead Partner in JV/Consortium

All Partners JV(Combined)

X

X

Lead Partner to provide the Powers of Attorney and supporting members provide official letters giving the lead member authority to represent them all 7.

Pending Litigation Bidder should provide information on any outstanding legal claims that exceed USD 1Million to the extent that this is not already provided in the audited annual reports and accounts to be provided in Section 3.3 below.

X

Table 1: Regulatory and Compliance Requirements

2.3. Commercial Criteria Refer to Table 2 below Sn.

Compliance requirement

Entity that must satisfy requirement Sole Bidder

1.

Minimum annual turnover for each of the last 3 years USD 15 Million (source document is audited financial statements)

3.

NA

X

X

NA

X

X

NA

X

X

X

NA

X

X

X

Past and on-going financial investigations The Bidder should provide details on any past and on-going financial investigations (exceeding USD 1 Million) performed by an accredited regulatory authority to the extent that this is not already provided in the audited annual reports and accounts.

5.

X

Balance sheet Positive net-worth for the past 3 years will be required and preferably with an average debtto-total asset not exceeding 80% for the past 3 financial years (2012/13, 2013/14 & 2014/15 audited financial statements)

4.

All entities in JV(Combined)

Audited accounts Audited accounts for the last 3 years (and contact information of the auditors)

2.

Lead Bidder in JV/Consortium

Proof of Authorization to supply PAS/ERP solution on behalf of vendor Authorisation letter from vendor of solution confirming “Gold Partner” status or equivalent such as Manufacturers Authorisation certificate

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Sn.

Compliance requirement

6.

Project Management Expertise

Entity that must satisfy requirement

Provide CVs of 2 possible Project Managers for implementation of PAS and ERP solutions respectively and clearly demonstrating a minimum of 8 years’ experience in solution implementation, project management and change management .(2 CVs for PAS & 2 CVs for ERP) 7.

X

X

X

X

X

NA

Certified staff for proposed solution Provide CVs of 3 technically certified solution experts for the PAS & ERP respectively, each of whom should have a minimum of 5 years’ experience in implementation of solutions (3 CVs for PAS & 3 CVs for ERP)

Table 2: Commercial Requirements

3. Experience criteria 3.1. Bidder’s / Joint Venture’s experience in implementing PAS and ERP solutions – Refer to table 3 below

Sn.

Experience requirement

Entity that must satisfy requirement

For each region below, provide client references for implementation of similar solutions worth at least USD 1 Million in the past 8 years.

Number of client references to be provided by each entity below Sole Bidder

Joint Venture (JV)/Consortium

2

2

1.

Lot 1 – Provision of the PAS – Provide client reference letters and contract amounts as evidence where a PAS solution has been successfully implemented as per geographic location below

1.1.

Internationally ( Outside Uganda)

2.

Lot 2 – Provision of the ERP – Provide client reference letters and contract amounts as evidence where an ERP solution has been successfully implemented as per geographic location below

2.1.

East Africa (Uganda, Kenya, Tanzania, Rwanda, Burundi)

1

1

2.2.

Africa (other countries outside East Africa)

2

2

2.3.

International (other countries outside the Africa)

2

2

Table 3: Experience Requirements

3.2. Bidder’s / Joint Venture’s team understanding of the project scope in relation to the business strategy of the Fund The Bidder/JV is required to provide a summary of their understanding of the project scope and how it relates to the intended business transformation. The Fund therefore expects bidders to demonstrate: •

In-depth knowledge of Uganda’s Pension Industry

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• • • •

Knowledge of best practices in change management to enable the fund adopt the changes that will arise from implementing the PAS and ERP; Knowledge of emerging trends and customer demands that the technology solution can help satisfy A clear understanding of the business functions/processes that the PAS & ERP will support respectively A deep understanding of the prevailing laws governing the Fund and Government Systems (NSSF Act, pending Liberalisation Bill, Electronic Transactions Act, Electronic Signature Act, Tax Legislation, URBRA Act etc.); and

4. Adherence to International Standards  The Lead Bidder should have certification of ISO/IEC 27000 and CMMi Level 3+.  The Lead bidder’s proposed solution for ERP should lie within the leader or challengers quadrant as referred to by the “Magic Quadrant for single-instance ERP product centric midmarket companies.”

5. Business Continuity The Bidder/JV should provide business continuity assurances that they will be able to continue delivering the assignment in the event of a disruption that affects their business operations. As part of this, the Lead Bidder/JV should include: a) Mandatory - Evidence of existence of Business continuity Plans. b) Desirable - Provision of information for 3 short term (1-7 days) disruptions that they have experienced during the course of their work in the past 8 years, and how they have dealt with it. This information can include a description of the disruption, how continuity was managed, and which client was involved/affected. c) Desirable - Provision of information for 3 long term (>7 days) disruptions that they have experienced during the course of their work in the past 8 years, and how they have dealt with it. This information can include a description of the disruption, how they managed continuity, and which client was involved/affected.

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6. Appendices 6.1.0

Format for consultant references

[The information requested is required in the format provided below and should be included by the Consultant in its proposal]

Consultant’s References Relevant services carried out in the last ..................... years (Insert number of years required) that best illustrate experience. Using the format below, provide information on each assignment for which the Consultant, either individually as a corporate entity or as one of the major companies within an association, was legally contracted. Consultant’s Name: Assignment name:

Country:

Location within country:

Professional Staff provided consultant (profiles):

Name of client:

No of staff:

Address:

No of Staff-Months; Duration of assignment:

Start date (Month/Year):

Completion date (Month/Year):

Name of Associated Consultants, if any:

by

Approx. Value of services (in Current US$): No of Months of Professional Staff provided by Associated Consultants:

Name of senior staff (Project Director/Coordinator, Team Leader) involved and functions performed:

Narrative description of Project:

Description of actual services provided by your Staff:

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6.1.2 Format for curriculum vitae for proposed professional staff Position Title and No. Name of Expert: Date of Birth: Country of Citizenship/Residence

{e.g., A-1, TEAM LEADER} {Insert full name} {day/month/year}

Education: {List college/university or other specialized education, giving names of educational institutions, dates attended, degree(s)/diploma(s) obtained} ________________________________________________________________________ ________________________________________________________________________ Employment record relevant to the assignment: {Starting with present position, list in reverse order. Please provide dates, name of employing organization, titles of positions held, types of activities performed and location of the assignment, and contact information of previous clients and employing organization(s) who can be contacted for references. Past employment that is not relevant to the assignment does not need to be included.} Period

Employing organization and your title/position. Contact information for references

[e.g., May 2005present]

[e.g., Ministry of advisor/consultant to…

Country

Summary of activities performed relevant to the Assignment

……,

For references: Tel………….........../e-mail……; Mr. A2 , Project manager]

Membership in Professional Associations and Publications: ______________________________________________________________________ Language Skills (indicate only languages in which you can work): ______________ ______________________________________________________________________ Adequacy for the Assignment: Detailed Tasks Assigned on Consultant’s Team of Experts:

Reference to Prior Work/Assignments that Best Illustrates Capability to Handle the Assigned Tasks

{List all deliverables/tasks as in TECH- 5 in which the Expert will be involved)

Expert’s contact information: (e-mail…………………., phone……………)

Certification: I, the undersigned, certify that to the best of my knowledge and belief, this CV correctly describes myself, my qualifications, and my experience, and I am available to undertake the assignment in Expression of Interest for the provision of a Pension Administration System (PAS) and Enterprise Resource Planning (ERP) System

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case of an award. I understand that any misstatement or misrepresentation described herein may lead to my disqualification or dismissal by the Client, and/or sanctions by the Bank. {day/month/year} Name of Expert Date

Signature

{day/month/year} Name of authorized Date Representative of the Consultant (the same who signs the Proposal)

6.1.3

Signature

Format for confirmation of availability of Key Professional Staff Procurement number

Subject of procurement :

reference

Consultant

List of key professional staff

Competencies of professional staff

key

Percentage of time for which key staff shall be available

Confirmation I ............................................................................(insert name of consultant) hereby certify that the staff described above shall be available as indicated Signature:

__________________________

Name:

_____________________

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6.2. Average Annual Turnover from the sale of PAS and ERP software

The information supplied should be the annual turnover of the bidder in terms of the amounts billed to clients for each year for assignments in progress or completed. For Joint Ventures, this should be completed by for each member in the Joint Venture.

1.

Applicant’s Legal Name:

2.

Annual turnover for the last 3 years:

S/N

Financial year period

Amount and currency

2.1. 2.2. 2.3.

6.3. Pending Litigation The Bidder should provide information on any outstanding legal claims that exceed USD 1,000,000 to the extent that this is not already provided in the audited annual reports and accounts to be provided in Section 3.3 below. For Joint Ventures, this should be completed by for each member in the Joint Venture.

1.

Applicant’s Legal Name:

2.

Any pending litigation? (Tick the appropriate box)

3.

If Yes, provide the following details for each litigation under dispute:

3.1.

Year of litigation

3.2.

Matter in dispute

3.3.

Value of pending claim

3.4.

Value of pending claim as a percentage (%) of net worth

Yes

No

NOTE: CLOSING DATE SHALL BE 22ND NOVEMBER 2016 15:00 HRS.

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