Service Provider for Developing Management Information System for PDAM Billing & Accounting PDAM Kab. Sukoharjo, April – June 2021
|Deadline||Sunday, 28 March 2021|
Issued Date: March 15, 2021
Title: “Service Provider for Developing Management Information System for PDAM Billing & Accounting PDAM Kab. Sukoharjo”
”Issuing Office & Email/Physical Address for Submission of Proposals:
Indonesia Urban Water, Sanitation and Hygiene (IUWASH Plus) Surakarta, Jl. Semangka No. 16, Kerten, Laweyan, Surakarta 57413
Indonesia Urban Water, Sanitation and Hygiene (IUWASH Plus) Jakarta, Mayapada Tower 10th Floor, Jl. Jend. Sudirman Kav. 28, Jakarta 12920;
Deadline for Receipt of Proposals: March 28, 2021 at the latest 05.00 PM.
Soft copy to IWPLProc_InboxSOL@dai.com
Point of Contact: IWPLProc_Surakarta@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
The USAID Indonesia Urban Water, Sanitation and Hygiene, Penyehatan Lingkungan Untuk Semua (IUWASH PLUS) program is a five year-and-eight-months 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 1,100,000 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.
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 environment; and 4) advancing national WASH advocacy, coordination and communication. In support of these components, USAID 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.
The Swiss State Secretariat for Economic Affairs (SECO) acting through the United States Agency for International Development (USAID) share the mutual goal of improving performance of water utilities to increase access to clean water in Indonesia, particularly to address two technical challenges that are especially impactful: (1) high rates of non-revenue water (NRW); and (2) poor energy efficiency (EE). To provide a comprehensive and measurable NRW reduction and EE improvement in Indonesia, SECO agreed to co-finance USAID for a three-year technical assistance program, implemented under the current USAID IUWASH PLUS program with seven PDAMs in two regions, i.e. West Java and Central Java provinces.
USAID IUWASH PLUS-SECO is currently strengthening the performance of PDAM Sukoharjo, one improvement of which is through a program to reduce water leakage rates. The assistance program for reducing the level of water leakage, known as non-revenue water or NRW, can be divided into two programs, namely the commercial loss reduction program and the physical leakage reduction program. In commercial NRW, there are several activities, including analyses of meter recording data, customer meter accuracy, evaluation of administrative errors (meter reading errors, data collection errors, account creation errors and customer database errors), where some of these activities will be related to the Management Information System (MIS) in particular in the field of billing and accounting applied by PDAM. In the current condition, it is known that PDAM Sukoharjo in managing Billing and Accounting has not worked in an integrated manner, resulting in a repetitive process of inputting transaction data, which enables errors in the process of synchronizing billing data and preparing financial reports. This condition exists because the existing financial statement preparation process is still being done manually using MS Excel software. Billing and accounting systems that have not been integrated have resulted in the PDAM being unable to record transactions accurately and develop the periodic financial reports on time. USAID IUWASH PLUS SECO plans to support the facilitation of PDAM Sukoharjo to improve the information systems in the field of billing and accounting that will work in an integrated fashion.
The MIS for billing system in PDAM Sukoharjo, Central Java, currently works with a WEB-based system but has not been integrated with the accounting system. Another important issue is that the accounting system currently works manually using the MS Excel, or simply, the PDAM does not utilize modern accounting software to record all PDAM transactions. To continue improvement of the PDAM, especially increasing the number of customers and customer satisfaction, the PDAM needs to improve the billing and accounting system, which also will support the program of reducing the non-revenue water, currently being assisted by USAID IUWASH PLUS SECO partnership program.
USAID IUWASH PLUS-SECO plans to provide the integrated billing and accounting software to PDAM Sukoharjo to improve PDAM performance, having more accurate transaction records which eventually will improve PDAM revenue. The software of accounting and billing being developed will work in an integrated fashion, supported by web-based systems using android app, especially in reading the meter electronically.
The main purpose of this scope of work is to provide an MIS for Billing and Accounting in PDAM Sukoharjo. With an upcoming integrated system, the PDAM is expected to be more efficient, effective and accurate to record transactions, reduce monetary loss, issue monthly financial reports, and overall be more sustainable. This activity will support NRW reduction currently implemented by PDAM Kabupaten Sukoharjo and increase the revenue stream by using the new billing system, as all money received in the payment point will be recorded accurately and reported in daily basis to the administration division in PDAM head office.
Scope of Work
MIS Billing and Accounting software for PDAM consists of two applications which work integrated between these fields and its place or location. Programmer will development the application or utilize off-the-shelf software applicable to PDAM Sukoharjo. Detailed activities of the programmer are as follows:
- Develop or provide applications of the web base billing and accounting system to be designed for water utility/PDAM.
- Provide training to PDAM staff of how to use the program in detail, clearly and easy to understand.
- Transfer the billing and accounting database from the old program/application to the new application.
- Conduct a trial of billing system showing PDAM can process thoroughly the monthly billings from input water consumption, billing issuance and billing payments.
- Conduct a trial of transaction recordings to include financial data input, processing and issuing of financial reports regularly (monthly, quarterly and annually). PDAM in this case easily issues regular report that includes Income Statement, Balance Sheet and Cash Flow Statement.
- Provide performance guarantee for the operation of the system for 1 year, and provide advice and make corrections or improvements during the warranty period.
- Provide a one-year warranty for system operation by providing advice and troubleshooting.
Specification of the MIS Billing Software
The billing software manages the customer’s billing that includes process, stores and maintaining entire customer’s data relating to water tariff, volume of water consumption, account receivable and its aging schedule or other customer’s information if required. The database will be stored in PDAM head office’s server, which will need to be maintained by PDAM.
The billing system will be supported by web-based system where for example it can be operated in any location using the internet system. The billing system/application will work on-line both in PDAM headquarter and its payment point to process payment from customers to include payment point using the banking ATM system. If required, the system is also able to work off-line, especially for processing paymsent in location that is not supported by proper internet infrastructure. The off-line system will require PDAM to print the receipt (in headquarters) and submit to the off-line cashier prior payment process in the cashier. In off-line system, the daily report will also be provided in manual system where its template is provided by the system.
The billing system will include also the improvement of meter reading system where the Android system will support the meter reading in customer’s location and then transmits the data to the server in the head office automatically.
Additionally, billing system will be integrated with the accounting software in the form of:
- Summary of water sales known as DRD (Daftar Rekening Ditagih) produced by billing software will then automatically feed accounting software in sales and receivable accounts.
- Settled billing data will be automatically recorded in the cash account of PDAM book. There is no double entry in each PDAM for this payment received. However, PDAM is still able to choose the off-line option of the software if the computer is not in place in particular payment point.
The billing system will manage all accounts receivable of each customer systematically where the status of account receivable will be easily tracked. The billing report will also be produced by the software easily. The historical customer information that includes date of connection would become one of information maintained by software.
Aging of accounts receivable as the standard tool for controlling the unpaid water bills will also be presented by the program. The aging analysis will be either in customer or period base. The outstanding receivables reported by program regularly and remind PDAM for issuing a reminder letter. In reminding of unsettled billing, the system will provide a signal in such for its aging of 1 month would be in green color, 2 months in yellow and 3 months or more would be in red. In addition, the software will also be able to produce a reminding letter automatically.
If required, the billing software would also be able to work under Android basis where the customer could connect to PDAM’s website for inquiring billing amount to be settled in particular month.
The billing system will have a capacity of maintaining up to 100,000 customers, and number of digits will be up to 5 (five).
Specification of the MIS Accounting System
Accounting software being developed or provided by programmer must follow the rules / norms of accounting system applicable in Indonesia, and in more detail this accounting program will work to follow the standard / financial accounting standard of PDAM (SAK) regulated by Kepmen Otda no. 8, August 10, 2000 on PDAM Accounting Guidelines, especially for the chart of account structure or grouping of accounts. Furthermore, this software will also be designed following the SAKETAP, where PDAM financial report being produced will refer to the accounting standards stated in SAKETAP. The standard reports as stated in regulation may be presented on a monthly and annualy basis. The standard financial report consists at least a report of the Profit and Loss, Balance Sheet and Cash Flow Statement of the PDAM. Any supporting reports will be included as well such as sub-ledger (ledger) of each account. All data will be stored in PDAM server usually placed in home office and intensively maintained by PDAM.
The accounting program will be easily operated including adding account or sub-account are required in accordance with PDAM business’s growing. Adjustment to changes due to renewal of the financial accounting standard will be easy conducted by PDAM.
Accounting software as the center of data recording and processing in PDAM will be easily integrated with other software in the future, such as warehouse inventory, HR/personnel, asset management and other related aspects of PDAM activities.
The Application provider on the development of the computerized Management Information System for PDAM billing and accounting shall be responsible for the following works:
To design and write application programs for:
- Web-based PDAM Billing software/application that supported by Android meter reading system;
- Web-based PDAM Accounting software/application
The accounting and billing software being delivered will work integrated or linked for particular accounts.
Period of Work
The work of Management Information System for billing and accounting development must be completed within two (2) months in PDAM, starting from April to June, 2021. Trial with real transactions will be conducted to test the software entirely from data input into financial report.
|PDAM Kabupaten Sukoharjo|
|Install and training for PDAM staff||13 April to 13 May 2021||Install new billing and accounting software to include training of software operation and maintenance to PDAM staff. Input or transfer existing data into new software.|
|Trial of the Software||13 May – 12 June 2021||Train PDAM staff to input current transactions into new software of billing and accounting software. Accounting data may include all year’s transactions and its target of producing financial report (financial statement) is July 2021|
|Activity after guarantee period.||One year||Provides trouble shooting to PDAM for any issues arise during guarantee period.|
Reporting & working environment
The selected Service Provider will report to the USAID IUWASH PLUS regional Wash Finance specialist in Central Java region. The Service Provider will work in PDAM Sukoharjo during the installation and training activities.
Deliverables and Payment Schedule
The deliverables and payment schedule of Management Information System for Integrated and Web base Billing and Accounting for two PDAM is described below:
|Deliverable 1 : Work plan report||2 weeks after contract signed||20%|
|Deliverable 2 :Completed installing and testing MIS billing and accounting||Middle of second month after contract signed||50%|
|Deliverable 3 : Report on testing in PDAM||End of contract||30%|
Required Qualifications and Experience
To ensure the delivery of the output: the Management Information System for Billing and Accounting, application provider has to be a firm or company which has the following qualifications:
- Company will consist a team with have mastering information technology, especially in development of web-based application and handling hardware with educational background of technological information.
- Company and its team have experiences enough to develop web-based and android integrated billing and accounting applications for water utility industries.
- Understand the financial and accounting system programming especially in water utility industry – PDAM.
- Minimum of 10 PDAM software in billing and accounting has been developed.
The estimated budget for Management Information System for PDAM Billing & Accounting for PDAM Sukoharjo is IDR 153.400.000.
Selection of Service Provider and Evaluation Criteria
The service provider will be selected using Trade off Method. The candidate of service provider has 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 %
Bid process plan estimation:
- RFP Issued to Potential Bidder : 15 March 2021
- Pre Bid Meeting and Q & A : 19 March 2021
- Proposal Submission : 28 March 2021
- Proposal Evaluation : 30 – 31 March 2021
- Proposal Clarification : 05 April 2021
- Contract Signing : 12 April 2021
- Start field activity : 13 April 2021
- Bill of Quantity_Developing Management Information System for PDAM Billing & Accounting PDAM Kab. Sukoharjo
- RFP_REQ-CJR-21-0064-Service Provider for Developing Management Information System for PDAM Billing & Accounting PDAM Kab. S
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