|Deadline||Wednesday, 15 November 2017|
Service Provider to Develop FORKALIM Business Plan
December 2017 – May 2018
Issue Date : November 1, 2017
Title: “Service Provider to Develop FORKALIM Business Plan
October 2017 – March 2018”
”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: November 15, 2017 at the latest 17.00 p.m.
Soft copy to : IWPLProc_LSIC@dai.com
Point of Contact: IWPLProc_LSIC@dai.com
Anticipated Award Type: 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.
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 (GOI) in increasing access to water supply and sanitation services as well as improving key hygiene behaviors among urban poor and vulnerable populations. USAID 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 service quality, of which at least 500,000 are from the poorest 40% of the population (also referred to as the “Bottom 40%” or “B40”), vulnerable groups or Indonesia’s eastern provinces; and
• An increase of 500,000 people in urban areas with access to safely managed sanitation and all of whom are from the “B40”, vulnerable groups or Indonesia’s eastern provinces.
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 city WASH institutional performance; 3) strengthening the WASH financing
FORKALIM (Forum Kommunikasi Air Limbah) was setup in 2004 under PERPAMSI, to support a small number of (mainly PDAM) Operators of sewerage systems. While FORKALIM has been (legally) independent from PERPAMSI since 2015, they are inactive, because their current membership is only 11 sewerage operators, which at this moment do not see much benefit in FORKALIM. However, with the focus of sanitation access switching to promoting on-site (FSM) systems (and with the addition of several new cities with sewerage systems), every city will now need to establish a Domestic Waste Water Operator, which can be either an UPTD, BLUD, PDAM or PD PAL. This creates a very interesting, new opportunity for an institute like FORKALIM, since according to their by-laws they can accept any Waste Water operator as their member. On the other hand, this also means they will need to drastically restructure their current operations, membership, cost structure, as well as the set of activities and benefits they offer to their members.
Parallel to this development, IUWASH PLUS was requested by Bappenas to support the development and implementation of a National FSM twinning program, for existing and new FSM operators. During a recent meeting with 11 FSM Operators, the initial FSM topics were identified as well as potential mentors and mentees. FORKALIM was present in this event and participants identified a critical role for FORKALIM as future host for FSM twinning, as one of their key activities to new (FSM) members.
All of these programs represents a unique opportunity for FORKALIM to grow its capabilities, gain a new type of customer, increase revenue, and most importantly, fill an important gap that now exists as concerns institutional support for FSM. However, this also requires institutional and operational strengthening of FORKALIM and the first key program to achieve this is to assist them in developing a sustainable business plan, which covers all key institutional, operational, staffing, membership, financial aspects to address these new areas and ensure both logical organizational growth and sustainability.
This SoW is describes the requirements of service provider for developing this Business Plan, which is part of the Umbrella concept supporting FORKALIM (see Annex 1).
Development of a business plan for FORKALIM with the aim to become a professional Waste Water Association, which provides cost recovery, on-demand service for all Waste Water Operators in Indonesia. The business plan will include all institutional, operational, financial and product development and implementation aspects, including the proposed national FSM twinning program, to create a sustainable and consistent revenue stream. The Business plan will also help to ensure that FORKALIM becomes the focal point for sanitation knowledge sharing in Indonesia.
The service provider will work closely with IUWASH Plus and FORKALIM on all the following tasks:
A. Develop an Work Plan
• Kick off meeting with IUWASH Plus, Bappenas, PUPR and FORKALIM (as Tim Inti)
• Review of current FORKALIM planning and provide recommendations how to incorporate parts of the plan into a new 5 year business plan.
• Develop a work plan for BP development which must include, at minimum:
o Schedule for the proposed activities related to BP development
o Include some innovative ideas for FORKALIM to expand their service offerings and increase revenue.
o Proposed communication / collaboration method with FORKALIM (reporting, meetings, etc).
• Submit Work Plan to key stakeholders (IUWASH PLUS, FORKALIM) for approval.
B. Facilitate Stakeholder Meetings
• Facilitate meetings with related stakeholders between FORKALIM, BAPPENAS, PERPAMSI, PU, donoragencies, other WW related Institutions, and selected existing and potential FORKALIM members to validate assumptions and to discuss key aspects of the FORKALIM business plan.
• All meeting cost will be held in Jakarta and arranged and paid by IUWASH PLUS (venue, food, and accommodations, for participants from outside Jakarta) in separate SoW
C. Develop Draft Business Plan
In close coordination with FORKALIM and IUWASH PLUS, the service provider will develop the Draft 5-year Business Plan. addressing the following topics:
• Vision and Mission of Business Plan, including clear Objectives
• Development of Questionnaire for existing and potential FORKALIM members, divided in
o Regular members (Anggota biasa) consisting of all local Waste Water Operators
o Extra-ordinary members (Anggota luar biasa) consisting of Waste Water equipment suppliers, universities, other institutions, etc
o Main topics include member status, interest to join, demand for services, potential for financial contributions, suggestions, other key aspects, etc
• Send out questionnaire, collect and analyze results as key guidance for further BP development
• Conduct visits to 5 IUWASH Regions to meet existing / potential FORKALIM members.
• Conduct Analysis of current / potential Waste Water market:
o Government support (strategies, funding, programs, promotion, regulations, etc)
o Current and planned donor financed programs (WB, ADB, USAID, DFAT, international NGO’s, etc) and possibilities to obtain support for Capacity Building in Waste Water Sector
o Type of private sector companies in Waste Water (equipment suppliers, consultants, etc)
o Potential of linking up with local Capacity Building institutes (G’ment, Universities, etc)
• Develop initial Business Model addressing main question, including:
o Types of membership
o Type of services (including twinning and website – see in detail below)
o Summary of Financial Projections (Based on Financial Model described below in Task E)
o Proposed strategy to attract new members and revenue
A Draft Business Plan will be submitted to IUWASH PLUS and other key stakeholders for review.
D. Develop Draft Financial Model
The service provider will develop a five-year financial to show the following:
• Develop a 5-year Financial Model:
• Clearly indicate all costs and revenue associated with main proposed programs and other additional revenue sources.
• Show need for additional financial support by G’ment, donors or others, at least in the start up period (first 3-5 years).
• Financial Model must be neatly formatted and easy to review:
o All assumptions should be clearly stated with brief source or explanation.
o Numbers should be color coded to differentiate inputs, calculations, and assumptions.
o Formulas should be concise and easy for a new user to understand;
A Draft Financial Model will be submitted to IUWASH PLUS and FORKALIM for review.
E. Overview of potential initial activities by FORKALIM
• The consultant will identify general planning for the National Twinning Program and provide recommendations on how FORKALIM can best implement this. Including suggestions for
• As main repository of all future Waste Water training materials.
• Overview of required planning and execution of the first twinning program.
• Provide recommendations on FORKALIM website development
• Provide general inputs into main topics for a professional FORKALIM website.
• Identify linkage between twinning program and website.
• Identify collaboration with other G’ment managed WW websites (PUPR, Bappenas, etc)
A short report introducing initial FORKALIM activities will be submitted to IUWASH PLUS and FORKALIM for review.
F. Business Plan Presentation in 2nd Stakeholder Workshop
FORKALIM and service provider will present Draft Business Plan to Bappenas, PUPR and IUWASH Plus and other stakeholders for comments and further suggestions.
A comprehensive presentation of Draft Business Plan will be prepared for the stakeholder workshop.
G. Final Business Plan
Based on feedback from Stakeholder workshop, service provider in consultation with FORKALIM and IUWASH PLUS, will make final revisions to the Final 5-year Business plan and financial model.
A Final Business Plan will be submitted to IUWASH PLUS and other key stakeholders for review.
IUWASH PLUS Outcomes
The above proposed activities will contribute to the following IUWASH PLUS outcomes:
HR 2: Number of people from the B40 and EI gaining access to safely managed sanitation services as a result of U.S. Government assistance.
C1-5: Number of new/improved mechanisms for civil society organizations and/or non-governmental organizations to advocate for the supply of better WASH services.
C4-2: Number of knowledge products developed;
C4-3: Number of knowledge events or workshops held and Number of people with increased knowledge / skills / awareness as a result of events/ workshops.
Deliverables & Payment Schedule
The service provider will work closely with Component Two Coordinator, FORKALIM, and other IUWASH PLUS team members, on the following deliverables:
1. Implementation Plan
2. Draft Business Plan
3. Draft Financial Model
4. Draft Business Plan Presentation
5. Final Business Plan
The schedule of deliverables submission and payment is as follow:
Posting & Reporting Reationship
The service provider for development of FORKALIM’S business plan will report to IUWASH PLUS National Sanitation Coordinator or other designated IUWASH PLUS senior staff. The service provider will be working in Jakarta, preferably from home , with regular visits to IUWASH PLUS office for progress meetings. Service provider will provide regular update on progress by email / meeting to IUWASH PLUS and FORKALIM. The National IUWASH PLUS Component 2 team will provide technical and administrative support to the service provider regarding arranging meetings, obtaining data and information materials, etc. Travel arrangements within Jakarta will be arranged and covered by the service provider. Travel outside Jakarta (if required) will be arranged by IUWASH PLUS, but included in service provider budget.
• Budget for the implementation of the activity will be provided by IUWASH PLUS from the LSIC fund to the selected service provider.
• The budget ceiling is around IDR. 160.000.000,- up to Rp. 175.000.000,- (incl mandays + travel + communication + reporting)
• Budget must include all labor associated with tasks A through G, and all required deliverables.
• Budget must include all local travel costs (within Jakarta and to visit existing/potential members in all 5 IUWASH PLUS regions (tickets, accommodation, local transport, etc).
• IUWASH PLUS will cover all direct costs associated with arranging Stakeholder Meetings, which means these costs should not be included in the service provider’s budget.
• The assignment will be remunerated upon delivery and acceptance by the task manager of the agreed outputs, as per the normal procedures of the IUWASH PLUS, as shown in table above.
Estimated professional manpower required for this program is one Service Provider to develop FORKALIM Business Plan, with the following qualification:
o a S-1 bachelors’ degree, in Environmental Engineering, Civil Engineering, Business Administration or Urban Planning or otherwise close related to WASH Sector
o minimum 5 years experience in WASH Sector (preferably including Waste Water sector)
o Experience in Business Plan development for organization similar to FORKALIM (can include PDAM)
o Good knowledge of financial planning and budgeting is required.
o Strong network of contacts in Waste Water Sector in Indonesia is preferred
Selection of Service Provider and Evaluation Criteria
The service provider will be selected based on Full & Open Competition. Thhe potential service provider have to provide proposal which consist of Technical Proposal (background of the program, Task to be conducted, methodology, schedule), cost proposal and CV.
The proposal will be evaluated based on:
• Qualification 30 %
• Experience 40 %
• Methodology 30 %
Proposed mechanism of the activity will be implemented through Fixed-Price Subcontract
Available in English (English)