REQUEST FOR EXPRESSION OF INTEREST (CONSULTING SERVICES – CONSULTANTING FIRM SELECTION)

Project name: STRENGTHENING FISCAL AND FINANCIAL STABILITY PROJECT

Credit No. 6084-MN; 6085-MN 

 Assignment Title: Consulting service to determine the functional and system requirements and develop the technical specifications and the bidding document for an Internal Audit-Financial Control Management Information System (IAFCMIS) 

A.    BACKGROUND

Mongolia has received a credit from the International Development Association (IDA) for the Strengthening Fiscal and Financial Stability (SFFS) Project. The Objectives of the SFFS Project is to contribute to the Government of Mongolia’s effort to strengthen fiscal and financial stability and improve the quality of expenditure. The project is composed of five components: (A) Strengthening Macroeconomic and Fiscal Management; (B) Improving the Efficiency of Public Financial Management; (C) Enhancing Financial Sector Stability; (D) Strengthening the Social Protection System; and (E) Project Management and Monitoring. For more details, please refer to the Project Appraisal Document Report No. PAD2269.[1]

Under the objectives of the Component B on improving the efficiency of Public Financial Management, there is a subcomponent on improving budget credibility, predictability and execution for better delivery services that, among other things, aims to enhance the government’s budget control, internal audit and risk management functions.

Rapid changes in information and communication technologies and managerial practices in public sector are forcing efficient internal audit and financial control as a tool for reducing the total risk. Improving the effectiveness of internal audit and financial control through effective use of management information systems is generally a new area in Mongolia. Currently, internal audit and financial control processes are largely manual and paper-based. A web-based system linked with other government systems is needed to improve the efficiency and effectiveness of internal audit and financial control. This is essential for the Ministry fo Mongolia given it is responsible for providing methodological support to all internal audit and financial control units at all levels of government in Mongolia.

Therefore, the Financial Control and Risk Management Department (FCRMD) of the Ministry of Finance (the Client) is seeking a consulting firm (the Consultant) to determine the functional and system requirements and develop the technical specifications and the bidding documents for the Internal Audit-Financial Control Management Information System (IAFCMIS), which is expected to have the following features:

The main purposes of the IAFCMIS are as follows:

§  Transition from paper-basis to automation: To automate public sector internal audit and financial control units’ activities nationwide to reduce the time and efforts required for preparing for and conducting internal auditing and financial control tasks;

§  Improvements to internal control of the Government of Mongolia: To enable the Government of Mongolia monitor and oversee the internal audit and financial control workflows nationwide and extract integrated and reliable data and information for critical decision-making processes.;

Scope of the system

·       The envisioned system will be used not only by the Financial control and risk management department of the Ministry of Finance, but also mostly by all internal audit and financial control units in the public sector (at the Government level);

·       The system will, thus, be used by more than 2000 internal auditors, state financial inspectors, and authorized officials and experts from over 200 internal audit and financial control units (13 ministries, 11 districts and city mayors’ offices, 29 agencies, and other 20 general governing bodies) of the central and local governing bodies, as well as public sector organizations at all levels including the Ministry of Finance;

Functionality

·       The system is expected to provide end-to-end functionality for managing the complete audit and financial control and inspection cycle and workflow including risk assessment, audit planning and scheduling, data and file storage, development of audit and financial control and inspection plans and checklists, field data collection, development of audit and financial control and inspection reports and recommendations, reviews of audit recommendations by auditees and management and implementation of audit recommendations and remedial actions.  

·       The system shall automatically generate audit and financial control and inspection reports/recommendations/results by categories of: General governing bodies; Public sectoral; Geographical and Institutional.

Benefits

·       Provide a reliable and modern platform to the public sector internal auditors and state financial inspectors to be more objective-oriented/based, independent and specific when performing internal audit and financial control activities;

·       Enforce compliance with the relevant legislations, vision, mission, and activities of Ministry of Finance through a system-based approach; and

·       Extract/collect reliable and timely internal audit and financial control data and information from government systems to improve risk assessment, monitoring and reporting needs of the Government of Mongolia.

 Modules to be automated at the minimum (indicative)

B.    OBJECTIVES

The main objectives of this assignment are to determine the functional and system requirements and develop the design, technical specifications and the bidding document for the IAFCMIS and carry out the preparatory activities towards the system design and development.

                            C.    SCOPE OF WORK

The Consultant shall undertake the following key tasks as well as any other tasks as reasonably requested by the Client as they pertain to the assignment:

Task 1: Review of Existing Processes (As-Is) and the Information Systems

A.    Study the relevant internal audit and financial control legislations, regulations, and standards;

B.    Review the existing FCRMD procedures/processes, organizational structure, roles and responsibilities, capacity of staff, and key challenges;

C.    Assess the existing ICT infrastructure, including data centers, servers, workstations, network, engineering systems, data security, and system management, as well as the application software, databases/registries and interfaces developed for various needs;

D.    Prepare a detailed “As-Is” process maps for various processes including inputs, outputs and the workflow, identify gaps, and recommend possible improvements;

E.    Prepare a detailed description of the ICT infrastructure of the existing information systems, identify gaps, and recommend possible improvements;

Output 1: Prepare a draft Assessment Report presenting the results of this task in consultation with the FCRMD and finalize the report after addressing the FCRMD comments.

Task 2: Develop the Functional and System Requirements of the IAFCMIS

Based on the detailed assessment conducted, the Consultant shall develop the functional requirements (To-Be) and the design of the IAFCMIS by taking into account the following aspects:

A.    The system shall:

§  Collect data and information through a web-based database application by providing online secure access to authorized system users, and using existing/new interfaces with other government systems;

§  Be linked with other government systems to automate data exchanges using web services or Application Program Interfaces, as much as possible; and

§  Filter and illustrate various statistics in accordance with the approved form sheets.

B.    The main functional requirements of the system include the following:

§  A web-based application to evaluate and analyze the data and information collected for internal audit and financial control processes in the public sector (transition from paper-based data to electronic documents created online);

§  User requirements:

o   All menus and functions must be in Mongolian;

o   Easy and simple to use;

o   Inputs and access enabled by both mouse and keyboards;

o   Provision with icons and labels;

o   Logical monitoring;

o   Undo, Redo design pattern; and

o   Verification/Confirmation is required following any key commands.

§  Design and model requirements:

o   User interface includes well-organized menus and windows;

o   Plain windows and menus; 

o   Avoid sharp colors which annoy user’s eyesight; and

o   The system shall be designed for a special purpose and be based on web-based technology where only the MoF, other authorized internal audit and financial control units will have access.

§  System security requirements (information security and data protection, network security, etc.):

o   The system shall be secured and protected from certain conditions including shortage of electricity, communication and transportation matters, system and network breakdown, data loss, technical and facility physical break, user malfunction and a hurricane, flood, earthquake or natural disasters.    

The Consultant shall:

a)    Discuss with the FCRMD possible process improvements and assist in business process reengineering by identifying obsolete functions/processes/policies and considering the information needs of key stakeholders;

b)    Prepare detailed “To-Be” process maps for various processes including inputs, outputs and the workflow, and identify key functional modules of the IAFCMIS;

c)     Prepare the technology architecture, ICT infrastructure improvements, and solution for implementing a web-based IAFCMIS;

d)    Conduct presentations and workshops to discuss the proposed design and technical solutions with key stakeholders to create a shared vision and common understanding;

e)    Prepare an IAFCMIS roadmap and implementation plan, as well as initial budget estimates for the development and deployment of the system; and

f)      Prepare a report covering the high-level design of the IAFCMIS, process improvements, functional scope, technology architecture, application software solution, implementation plan, budget estimate, and other relevant aspects.

Output 2: Prepare a draft IAFCMIS Design Document presenting the results of this task in consultation with the FCRMD and finalize the document after addressing the FCRMD comments.

Task 3: Develop the Technical Specifications and the Bidding Document for the IAFCMIS

In line with the design of IAFCMIS, the Consultant shall prepare the technical specifications of the system as a part of the bidding documents (or ToR) to be used during the procurement and implementation phase. The bidding document will cover the requirements for the development of the IAFCMIS, the web-based database application, and include the relevant servers, data storage units, network equipment, security systems and other components needed for the establishment of an integrated platform interfaced with other government systems.

In preparing the first draft of the bidding document or Terms of Reference (ToR) for the implementation of the IAFCMIS (by a solution provider to be selected competitively), the following shall be considered:

A.    The draft bidding document (ToR) shall include:

§  Background of the project and business objectives of the Client;

§  Technical capacity required from the solution provider (to be selected);

§  Detailed functional and technical scope of works;

§  Work schedule and deliverables;

§  Background of team members and technical experts of solution provider;

§  Cost estimate (by deliverables)

B.    Submit the first draft bidding document to the FCRMD and the World Bank experts to gather recommendations and additional proposals;

C.    After revision, prepare the final and approved draft of the IAFCMIS bidding document; 

Output 3: Prepare draft IAFCMIS Technical Specifications and Bidding Document in consultation with the FCRMD and finalize these documents after addressing the FCRMD comments.

D.    DELIVERABLES

Based on the tasks specified in the Scope of Work and the detailed contract implementation plan to be approved by the Client, the Consultant’s deliverables will include:

1)    The final Assessment Report (Output 1);

2)    The final and approved IAFCMIS Design Document (Output 2);

3)    The final and approved IAFCMIS Technical Specifications and Bidding Document (ToR for a consulting firm) (Output 3);

4)    Monthly progress reports.

E.  CONSULTANT’S QUALIFICATIONS / SELECTION CRITERIA  

      The desired consulting firm should be a legally established and registered entity in Mongolia meeting the following qualification requirements that is capable of providing consulting services in the areas The desired consulting firm should be a legally established and registered entity in Mongolia meeting the following qualification requirements that is capable of providing consulting services in the areas of financial management or financial information systems:

§  Have direct relevant experience of providing consultancy services of a similar nature;

§  Have adequate approach and methodology:

                                           i.         Technical approach and methodology suitable for the assignment;

                                         ii.         Work plan that is result-oriented, feasible and monitored;

                                        iii.         Organization and staffing appropriate for the assignment:

§  Able to mobilize the following key professionals with the required qualifications and competencies (see detailed qualification requirements below):

                                           i.         Team leader

                                         ii.         Internal auditors

                                        iii.         Technical experts

§  Ability to transfer the relevant knowledge to MOF where necessary  and have an intention and willingness to complete the assignment timely and successfully taking full responsibility.

F.     CONTRACT DURATION AND PAYMENT CONDITION

The assignment is expected to commence in July 2019 and be completed within a period of 6 months (109 working days with simultaneous inputs from the team of experts) covering the following tasks/outputs:

§  Task/Output 1 – 35 working days;

§  Task/Output 2 – 46 working days;

§  Task/Output 3 – 28 working days; (a total of 109 working days/6 months)

Total input expected from the 7 key specialists to deliver above outputs is 262 person-days. Breakdown of expected key expert inputs is as follows:

§  Team Leader / Functional Expert – 79 person-days

§  Internal Auditors – 111 person-days

§  Technical Experts – 72 person-days

The contract can be extended based on the evolving needs of the Client but with no additional cost. For undertaking the tasks specified in the scope of work, the team shall bear a sole responsibility for fulfilling the obligation of the Contract.

Payments will be released upon satisfactory completion of all deliverables, according to the following schedule:

·       Completion and submission of deliverable # 1: 28% of total contract amount

·       Completion and submission of deliverable #  2: 45% of total contract amount

·       Completion and submission of deliverable #  3: 27% of total contract amount

G.    RESTRICTIONS

In addition to the standard conflict of interest restrictions specified in the consulting contract, all materials created under this Contract will remain the sole property of the MoF. Re-use of the materials will require the formal, written approval of the MoF.

The Consultant shall have no material interest in any of the outputs of this assignments and technologies or related ICT services under consideration, and will not be eligible to bid in future contracts for the implementation of the IAFCMIS.

On the commencement of the assignment, the Consultant will jointly prepare with the MoF a statement of confidentiality that will bind the Consultant to nondisclosure of any sensitive information that the Consultant may become knowledgeable of during the course of the assignment.  The terms of this agreement shall be made consistent with the relevant privacy laws of Mongolia.

Interested consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services.

Please submit the following documents no later than 17:00, July 19, 2019:

 - Letter of Expressions of Interest;

- Company introduction along with a copy of state registration certificate;

- Evidence of specific experience and qualification information of the firm relevant to the assignment.

Email submissions will be accepted in Low Resolution files (each) up to 3 MB only. Expressions of Interest should be clearly marked “Expression of Interest for Consulting service to determine the functional and system requirements and develop the technical specifications and the bidding document for an Internal Audit-Financial Control Management Information System (IAFCMIS), Reference number: SFFSP/B13/CS/007.

The submitted documents will not be returned to the applicants. Please be noted that incomplete applications would not be considered for evaluation. Only selected candidate will be contacted. Address for submission of Expression of Interest: Attention to Ms.Bayarmaa L, Procurement Specialist, Strengthening Fiscal and Financial Stability Project, Address: Room #204, Negdsen undestnii 8/2, 4th khoroo, Chingeltei District, Ulaanbaatar, Mongolia. Tel: 70120582 or via email to: procurement@sffs.mn.

70120582