English Indonesia
LSIC-RFP
update

Engaging Private Desludging Companies to Increase Safely-Managed Sanitation Access (Iklan Hanya Tersedia Dalam Bahasa Inggris)

Rabu, 20 Maret 2019
Deadline Thursday, 4 April 2019
Contact Info IWPLProc_LSIC@dai.com

Engaging Private Desludging Companies to Increase Safely-Managed Sanitation Access
REQ-JAK-19-0020

Issue Date : March 20. 2010
Title: “Engaging Private Desludging Companies to Increase Safely-Managed Sanitation Access”

”Issuing Office & Email/Physical Address for Submission of Proposals:
Indonesia Urban Water, Sanitation and Hygiene (IUWASH Plus) Jakarta , Mayapada Tower 10th Floor, Jl. Jend. Sudirman Kav. 28, Jakarta 12920 ;
Email : IWPLProc_LSIC@dai.com
Deadline for Receipt of Proposals: April 4, 2019 (at the latest 17.00 p.m)
Soft copy to : IWPLProc_LSIC@dai.com
Point of Contact: IWPLProc_LSIC@dai.com
Anticipated Award Type: Firm Fixed Price Purchase Order
Basis for Award: An award will be made based on the Trade Off Method. The award will be issued to the responsible and reasonable offeror who provides the best value to DAI and its client using a combination of technical and cost/price factors.

A. Background
The USAID Indonesia Urban Water, Sanitation and Hygiene ‘Penyehatan Lingkungan untuk Semua’ (IUWASH PLUS) program is a five-year initiative designed to assist the Government of Indonesia in increasing access to water supply and sanitation services as well as improving key hygiene behaviors among urban poor and vulnerable populations. Implemented by DAI Global LLC, IUWASH PLUS works with governmental agencies, the private sector, NGOs, communities and others to achieve the following “high level” results:
• An increase of one million people in urban areas with access to improved water supply services of which at least 500,000 are from the poorest 40% of the population; and
• An increase of 500,000 people in urban areas with access to a safely managed sanitation services.

To ensure that improvements in access to WASH services are sustained, USAID IUWASH PLUS is guided by a development hypothesis that focuses on strengthening service delivery systems, so they can more effectively reach the poorest and most vulnerable segments of the population. In order to achieve this at scale, the program undertakes activities through four interrelated components, including: 1) improving household WASH services; 2) strengthening cities WASH institutional performance; 3) strengthening the WASH financing environment; and 4) advancing national WASH advocacy, coordination and communication. In support of these components, IUWASH PLUS also implements a Local Sustainability and Innovation Component (LSIC) that is designed to stimulate WASH innovations that strengthen community, private sector and government WASH service provision.

B. Activity Background
Desludging services, through a regular or non-regular system, is one of critical parts in the sanitation chain of delivering safely managed domestic wastewater services, from which the majority are on-site systems (individual shared or communal septic tanks). Based on the Sustainable Development Goals (SDGs) definition, safely managed on-site wastewater services entails proper containment, efficient desludging services, and safe treatment in treatment plant. Especially the collection and treatment are managed by a citywide Waste Water Operator, which in a few locations is a Perusahaan Daerah (Air Limbah or PDAM) but in most cities it is organized as a Unit Pengelola Teknis Daerah (UPTD) under a LG. While IUWASH PLUS is already active, both through regular programs and LSIC, to promote proper containment, strengthening UPTD, advocacy for necessary regulations and cost-recovery tariff and improved management of sludge treatment plants, quick and safe collection of septage from all types of on-site systems has become the bottleneck in rapidly upscaling access to safely managed sanitation services.
Most UPTD own only 1 or 2 septage trucks and require substantial efforts from local and/or central Government to budget and then purchase additional trucks, as the demand for regular and irregular desludging services (LLTT and LLTTT) grows quickly. The alternative is the private sector, which in general owns more (but often old) septage trucks, who collect sludge on an “on-call” basis, which is often not disposed of in Sludge Treatment Plant, as this is not monitored, regulated and based on profit making.
A number of UPTD working closely with IUWASH PLUS have expressed strong interest to formalize arrangements with the private sector within their cities, in order to rapidly upscale sludge collection in a safe and efficient way and including a monitoring system which guarantees that the collected sludge reaches the sludge treatment plants, managed by the respective UPTD. The LSIC is a perfect mechanism to support this initiative as a formal and monitored contractual agreement between UPTD and private sector is very innovative, will quickly increase access to safely managed sanitation (UA goal) and also will be excellent example for the currently already more than 50 UPTD across Indonesia. IUWASH-PLUS therefor agreed to develop this scope of work for initially four highly committed UPTD to setup formal agreements with an estimated 8 – 12 interested private sector companies over an 18 months period which will be implemented through a large fixed price purchase order covering all critical aspects required for these agreements: ITC, operational, financial, communication, legal, market surveys, etc.

C. Objective
• support 4 UPTD to establish contractual arrangements with 8 – 12 private sector companies in their cities (average 2 -3 per city) to collect septage from septic tanks from households, which are customer of the UPTD, in a hygienically safe and most cost-effective manner.
• Assist 4 UPTD to conduct septic tank census, improve MIS desludging services, create attractive market for private sector, develop financial (WIN-WIN-WIN) models, develop action plan, formalize agreement including payment and monitoring systems and start implementation of desludging service by private sector, including use of SOP for safe collection and efficient collection systems (including multiple trips per days).
• Support 4 UPTD and 8 – 12 private sector companies to desludge at least 4,800 septic tanks.

D. Proposed Activity
The activities to achieve the Objectives in all four target locations are divided in three phases:

Phase 1: Preparation Phase Creating the market for L2T2 by UPTD for desludging service private through – except Kota Makassar due to UPTD Kota Makassar already has customer database & MIS system
• HH septic tank census (using android application)
• MIS database in UPTD with “sedotable” HH
• Preparation Barcode system (septic tank and IPLT) & GPS (for private trucks)
• Training UPTD staff on management MIS and database
1. Create market for L2T3 by UPTD through development of “Hotline sedot / android app”
2. Identify & meet private desludging companies to get data on their current market, customers, cost/benefit, armada, pumps, staff, desludging procedures, Health & Safety / K3, etc
3. Agree with UPTD / LG on minimum service standards for desludging by private (armada, pumps, operation by SOP, K3, legal entity, possible sanctions, etc)
4. Prepare Financial model for private sector companies including cost, revenues, investments, etc
5. Prepare rough implementation plan for HH to be desludged in year 1, 2 to determine how many private / trucks are needed in year 1, 2, etc

Phase 2: Arrange Partnership agreement between operator/LG  private
1. Finalize draft template of the agreement tailor-made for each location
2. Prepare materials for meeting with private sector and LG on
a) promoting potential market for private (L2T2 & L2T3),
b) estimated cost / benefit for private (L2T2 & L2T3),
c) proposed billing / payment system for private (direct from HH or through operator)
d) proposed monev systems (barcodes, GPS, etc)
e) requirement for private to join (Minimum service standards, share customer data, etc)
3. Estimate number of private / trucks required for implementation year 1, 2, etc
4. Arrange and join (serial) meetings / workshops between operator/LG  private
5. Finalize agreement based on results of meetings / workshops and fix number of private
6. Signing of the agreement with 8 – 12 private companies

Phase 3: Implementation Phase
1. Information & Promotion L2T2 for “sedotable HH” (selected location) and L2T3 (citywide hotline)
2. Purchase and installation of GPS (in private trucks) and barcodes/ QR codes for participating HH integrated with MIS desluding services.
3. Training private drivers in SOP, K3, operational system (barcodes, GPS, scheduling collection, etc)
4. Start implementing L2T2 following agreed schedule
5. Conduct trouble shooting to HH, use of schedules, financial aspects, barcode, GPS, MIS, etc
6. Arrange customer feedback, including hotline and android apps (complaint and use)
7. Additional capacity building for operator to manage database & the customer feedback
8. Setup and implement monev system

E. Link with USAID IUWASH PLUS High Level Results and Outcomes
The above proposed activities will contribute to the following IUWASH PLUS outcomes:
HR2: Number of people gaining access to safely managed sanitation services.
C2c: Number of local sanitation management units with improved service delivery performance.
C3b: Number of public-private partnerships established with IUWASH PLUS support
C4b: Number of knowledge products developed
C4c: Number of knowledge events or workshops held
C4d: Number of people with increased knowledge / skills / awareness as a result of events/ workshops

F. Deliverables
The deliverables of the complete program are:
1. At least 8 contractual agreements prepared (with financial and operational plans) and signed by 4 UPTDs and private sector companies on scheduled desludging for new/existing UPTD members.
2. At least 20 UPTD staff in 4 UPTD trained in managing and monitoring contracts with private sector (operational, financial, IT, monev, etc)
3. At least 32 staff from 8 private sector companies trained in safe collection (following SOP/ K3), operational plan and IT / monitoring systems.
4. Septic tank census conducted for at least 12,000 households, from which an estimated 40% (4,800 households) express interest in becoming UPTD member, including the regular desludging program.
5. Desludging of 4,800 septic tanks (covering 24,000 people) across all 4 cities by private sector during the duration of this LSIC.
6. “Hotline sedot / android app” combined with customer feedback systems established in 4 locations

G. Estimated Budget
Funding for the implementation of this activity will be provided from the LSIC fund. The total budget estimate for this activity is around IDR 2.6 billion. The budget will cover all external labor costs, field survey’s, meetings and workshops, travel cost, developing contractual agreements as well as the initial implementation of contract with intensive monitoring. The selected wastewater operators will be required to cover some cost for meetings, soft launching of desludging service and hotline and the monitoring of private sector during the implementation phase.

H. Payment Schedule
The assignment will be remunerated upon delivery and acceptance by the task manager of the agreed deliverables (see point G. Deliverables above), as per the normal procedures of IUWASH PLUS.
The payment will be made through seven (7) transactions after all required deliverable are submitted to USAID IUWASH PLUS and verified by technical team and client. The details schedule is as follows:

Reporting details Due Date Payment
1. Inception report including detailed methodology, work plan, scheduling, etc End of 2nd week 10%
2. Progress Report 1 covering Phase 1, subtask 1 completed and other subtasks (2-6) ongoing End of Month 3 15%
3. Progress Report 2 covering Phase 1 completed End of Month 6 15%
4. Progress Report 3 covering Phase 2 completed End of month 9 15%
5. Progress Report 4 covering Phase 3, subtask 1- 7 ongoing End of month 12 15%
6. Progress Report 5 covering Phase 3, subtask 1- 8 ongoing End pf month 15 15%
7. Final Report, covering Phase 3 completion and resume of whole program (3 Phases), including documentation, issues encountered, recommendations, etc End of Month 18 15%
Note: all reports can be written in Bahasa Indonesia, and should be provided to IUWASH PLUS as soft-copy (word, excel, etc) and 5 hardcopies for each report

I. Required Qualifications and Experience

IUWASH PLUS will seek a local implementer/service provider (= vendor) to implement the above work of which must have the following qualification/ experience:
o implementing and managing waste water programs in multiple locations
o providing technical support to PEMDA, preferably UPTD and /or private sector companies
o implementing household survey’s and financial analysis

The vendor shall propose the personnel/team compositions and qualifications based on the required tasks and deliverables stated in previous sections (but not limited to) as follows:
o Team leader – experienced in waste Water program with donors and/or GOI programs
o Financial Specialist – experienced in financial analysis for Government
o Institutional Specialist – experienced in Waste Water operation, especially by UPTD
o IT team – experienced in programming android app & web based systems on septic tank census, using barcodes, GPS systems for monitoring fleet movement, etc
o Vendor shall also recruit at least one local specialist based in each of the 4 target locations.
J. Selection of Service Provider and Evaluation Criteria

The selected local implementer (vendor) will be selected based on Full & Open Competition. The selected vendor has to provide a proposal that will consist of Technical Proposal (background of the program, Task to be conducted, methodology, schedule), cost proposal and CV of key staff.

The proposal will be evaluated based on:
• Qualification of proposed personnel 60 %
• Experience of company 15 %
• Methodology 25 %

K. Proposed Mechanism
Proposed mechanism of the activity will be implemented through firm fixed price subcontract.

Attachment

RFP-Req-JAK-19-0020-Engaging-Private-Desludging-Companies-to-Increase-Safely-Managed-Sanitation-Access-REV.pdf

Attachment-D-Instructions-for-Obtaining-a-DUNS-Number-DAI’S-Vendors-Subcontractors.pdf

Attachment-E-Self-Certification-for-Exemption-from-DUNS-Requirement.pdf

Template-Budget-Proposal-Engaging-Desludging-by-Private.xlsx

Available in enEnglish (English)