REQUEST FOR EXPRESSIONS OF INTEREST (CONSULTING SERVICES – FIRMS SELECTION FOR FRAMEWORK AGREEMENT) Country: Islamic Republic of Afghanistan Assignment Title: Consulting Services for Rendering Financial Audit Services for the Government organizations of Afghanistan Duration of Assignment: 36 Months Implementing Agency: Supreme Audit Office Contract Type: Lump Sum contract for each call off against framework agreement Reference No: NPA/SAO/97/CS-2328/LCS-Rebid 1. Background 1.1 As part of a cluster of reform taken up by National Unity Government (NUG) of Afghanistan in varied government sectors, procurement and financial management reforms were parts of objectives of the NUG of Afghanistan. As part of the reforms for enhancement of the transparency and accountability of the government systems, the Government finds audit an important instrument for public financial and expenditure control, efficacy and economy of the government systems and ascertains that they function within the framework of certain budget, objectives, rules and requirements. Based on Supreme Audit Office Law of Afghanistan, the management of all financial and accounting audits resides with Supreme Audit Office (SAO). 1.2 There are 67 government organizations including ministries, independent authorities and State Owned Enterprises (SOEs). Currently, audit of the government entities is conducted on need basis and the expenditures that are made under donor’s grants are audited on annual basis Afghanistan Fiscal Year (1st Jadi – 31st Qaws of Afghan Solar Year) by (SAO). 1.3 The SAO has made huge strides towards capacity building of local accountants and structural changes within the SAO. However, deficiency of audit expertise and capacity still exist within SAO and local auditors need support in carrying out audit activities in accordance with international standards of auditing acceptable to the donor agencies as well. SAO is a member of International Organization of Supreme Audit Institutions (INTOSAI) and is bound to adopt the International Standards for Government Auditing issued by INTOSAI. 1.4 For the sake of economy of scale and creating efficiency in audit services procured in fragmented procedures and varied approaches by different government organizations, SAO intends to enter in to a framework agreement for providing such services on need basis for a period of 3 years by financial support of Ministry of Finance. The methodology for rendering the audit services are defined below under Paragraph 3 “Scope of Assignment” and Paragraph 8 “Service Order” of this ToR. While all other terms and conditions will be finalized in this agreement, a mini competition will be held among all framework agreement holders, by calling prices for audit services arising based on ToR for that contract. ToRs for contracts against this agreement will be somewhat similar, but prices will be quoted by the consultants as per ToR requirement for each contract. Selection of consultant will be based on Least Cost selection basis as per the prices received in the mini competition. Framework agreements and these contracts will be managed by Supreme Audit Office (SAO). 2. Objectives of the Assignment 2.1. The goals of the Government of Islamic Republic of Afghanistan (GoIRA) include maintaining appropriate fiduciary standards to provide reasonable assurance to the Afghan public and to international donors that government resources and donor funds are subject to appropriate allocation and expenditure controls. An important objective is achieving compliance with international standards of financial management including the use of internationally recognized accounting, auditing, and reporting standards enabled by modern technology and software applications. 3. Scope of the services 3.1. The audit will be carried out in accordance with the Standards (specified in paragraph 2.2 of the ToR) and will include such tests and verification procedures as the auditors consider necessary under the circumstances. The scope of audit services will include, but not limited to the following core attention: i. All government as well as the donors’ funds have been used in accordance with the conditions of financial policy of the government of Afghanistan including Public Finance and Expenditure Management Law and the donor’s loan/grant agreement where applicable, with due attention to economy and efficiency and only for the purposes for which the funds were provided; ii. Appropriate supporting documents, records and books of accounts relating to all project activities have been kept. Clear linkages should exist between the books of accounts and the financial statements; iii. The financial statements have been prepared by project management in accordance with applicable accounting standards mentioned (ref. section 2.2 of ToR) and give a true and fair view of the financial position of the Project as at the year end and of its receipts and expenditures for the period ended on that date; iv. Comprehensive assessment of the adequacy and effectiveness of the accounting and overall internal control system to monitor expenditures and other financial transactions and ensure safe custody of project-financed assets and that they are being used for the intended purposes; v. Goods, works and services financed by the Government of Afghanistan have been procured in accordance with the Afghanistan Procurement Law, Procurement Procedures and relevant circulars, further considering Public Finance and Expenditure Management Law of Afghanistan to ensure that all expenditures have been properly accounted ; vi. Carry out inspection and assessment of the inventory, including fixed assets, and ensure that proper records and operational measures are maintained. vii. Ineligible expenditures identified during the audit will be reflected in a separate paragraph of the audit report and if material, the point should be reflected in the auditors’ opinion; viii. Analyze the management systems used for recording, documenting and reporting on resource utilization. ix. Assess adequacy and appropriateness of internal control and monitoring system, and record keeping mechanism. For Information on the scope of the services, you can access the ToR under the above mentioned assignment title and reference number on the website: www.npa.gov.af 4. Qualification Requirements/Short listing Criteria: National Procurement Authority on behalf of Supreme Audit Office (SAO), Ministry of Finance, GoIRA, now invites eligible consulting firms (“Consultants”) to indicate their interest in providing the services described under paragraph 3 above. Interested Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services. The short listing criteria are: a) The Consultant should be a registered legal entity and should have been in business for last 5 years in providing Consultancy Services of similar or related assignments. (The consultant is required to provide a Copy of Certificate of Incorporation issued by relevant authority in country of its establishment/incorporation). b) The Consultant shall demonstrate having sound financial standing by submitting audited financial reports or any other credible financial documents for the last three years (2015, 2016 and 2017) where the consultant’s annual turnover for any of the last three years shall not be less than USD One Million and its Net Worth shall be positive (the consultant is required to provide audit Annual Financial Statements for said years, which inter alia, should reflect the Consultant’s Net Worth and turnover). c) The consultant shall provide evidence of having proven experience for at least 3 contracts each of a minimum value of USD 100,000 (One hundred thousand US Dollar) of similar nature or the aggregate amount of Call Of contracts fulfilling the requirement of USD 300,000.00 (Three Hundred Thousand US Dollars), having executed during last 5 years duly indicating the duration, value and years of performance, which should showcase the expertise/ strength of the consultant for undertaking such assignments. The Consultant while describing the assignment(s) for similar experience should furnish the following details:  Consultant should explain in what way the executed assignment(s) was/were similar in nature to the current assignment.  The Consultant should explain the exact role played by the Consultant in the assignment if the assignment was carried out in association with other firms as JV or in sub-consultancy for carrying out the assignment. d) Consultant having some regional experience is desirable. e) The requirements for Consultants who intends to associate with other firm(s) in the form of a Joint Venture (JV) or Consortium or a sub-consultancy to enhance their qualifications are indicated as under: i. The lead partner is required to be identified clearly and state the composition and nature of their association (JV/ sub-consultant) in their EOI. ii. In case of JV, the lead partner shall meet the shortlisting criteria of turnover under (b) above and substantially meet the experience criteria under (c) above (having executed the assignments with contract value indicated therein). The JV partner should also meet the shortlisting criteria under (c) above (having executed the assignments with contract value as 50% of the value indicated therein). iii. In case of Consultant who intends to associate with other firm(s) in the form of a sub-consultancy, the lead partner shall meet the shortlisting criteria of turnover and experience as under (b) & (c) above. f) The Consultant should furnish only true and factual information in the EOI (for itself and its partners, if any). By an act of submission of an EOI against this REoI, the Consultant shall be deemed to be aware that for any misrepresentation by the Consultant detected at any stage of selection process or during execution of the resultant contract, if successful, the Consultant may be prosecuted under the Laws of Afghanistan. 5. Legal References The attention of interested Consultants is drawn to Chapter 4 of Procurement Procedure: Process of Request for Proposal, Saratan 1395 issued by NPA, Government of Islamic republic of Afghanistan. In addition, please refer to the following information on conflict of interest related to this assignment as Rule112 of Procurement Procedure: All employees connected with this procurement, Evaluation Committee, Opening Committee, Award Authorities, Members of National Procurement Commission are required, prior to start or approval of any type of Procurement activity; to declare their state of Conflict of Interest in case such Conflict of Interest exist. The consultants are also required to maintain high standard of ethics throughout the procurement process. The consultants can download the Public Procurement Law and Procedure from: www.npa.gov.af. 6. Method of Selection The Supreme Audit office, Ministry of Finance is undertaking this Primary Procurement with a view to concluding Framework Agreements. Framework agreement will be offered to all consultants whose technical proposals are responsive to RFP requirements and also obtain minimum qualifying scores.The selection of a FA Service Provider to be awarded a Call-off Contract will be done through a Secondary Procurement process as defined in Framework Agreement. A Consultant will be selected in call off procedure in accordance with the Least Cost selection (LCS) set out in Rule 59 of Procurement Procedures of National Procurement Authority, Government of Afghanistan. 7. Submission of EOI Expressions of interest must be delivered in a written form as per the formats attached in Annexure 1 to the address below (in person, by mail, or by e-mail) latest by 12, December, 2018 at 04:00 PM (Kabul Local Time). Further information in respect to this REOI can be obtained at the address below by email or in person during office hours i.e. 08:00 AM - 04:00 PM. The EOI with all details should, preferably, not exceed 40 pages in total. Attention: Aziz Ahmad Obaidi Procurement Manager (Economy, Agriculture and Rural Development Sector Department) National Procurement Authority (NPA), AOP Pashtunestan Wat, Kabul, Afghanistan Phone Number: +93(0)202147556 Email: aziz.obaidi@aop.gov.af, copied to wais.rahimi@aop.gov.af, n.wahedi@aop.gov.af, ahmad.noor@aop.gov.af, bashir_rashidy@yahoo.com, z.jalalzi@gmail.com, zamarai.jalalzai@sao.gov.af, Web site: www.npa.gov.af (The ToR is accessible through direct link: www.npa.gov.af) 26 November, 2018 Addendum No. 1 For Consulting Services for Rendering Financial Audit Services for the Government organizations of Afghanistan NPA Ref. No.: NPA/SAO/97/CS-2328/LCS-Rebid This Addendum No. 1 is issued in continuation to Request for Expression of Interest (REOI) issued for Consulting Services for Rendering Financial Audit Services for the Government organizations of Afghanistan and shall take precedence over those contained in the Request for Expression of Interest issued on 21 November, 2018. The following amendments have been made to the REOI documents: No REOI References number Existing texts in the REOI Amended 1 SECTION 2: Documents to be submitted The Consultant should be a registered legal entity and should have been in business for last 8 years in providing Consultancy Services of similar or related assignments. (The consultant is required to provide a Copy of Certificate of Incorporation issued by relevant authority in country of its establishment/ incorporation). The Consultant should be a registered legal entity and should have been in business for last 5 years in providing Consultancy Services of similar or related assignments. (The consultant is required to provide a Copy of Certificate of Incorporation issued by relevant authority in country of its establishment/ incorporation). All others terms and conditions of the REOI remains unchanged.
26 November, 2018 Addendum No. 1 4. Qualification Requirements/Short listing Criteria: National Procurement Authority on behalf of Supreme Audit Office (SAO), Ministry of Finance, GoIRA, now invites eligible consulting firms (“Consultants”) to indicate their interest in providing the services described under paragraph 3 above. Interested Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services. The short listing criteria are: a) The Consultant should be a registered legal entity and should have been in business for last 5 years in providing Consultancy Services of similar or related assignments. (The consultant is required to provide a Copy of Certificate of Incorporation issued by relevant authority in country of its establishment/incorporation). b) The Consultant shall demonstrate having sound financial standing by submitting audited financial reports or any other credible financial documents for the last three years (2015, 2016 and 2017) where the consultant’s annual turnover for any of the last three years shall not be less than USD One Million and its Net Worth shall be positive (the consultant is required to provide audit Annual Financial Statements for said years, which inter alia, should reflect the Consultant’s Net Worth and turnover). c) The consultant shall provide evidence of having proven experience for at least 3 contracts each of a minimum value of USD 100,000 (One hundred thousand US Dollar) of similar nature or the aggregate amount of Call Of contracts fulfilling the requirement of USD 300,000.00 (Three Hundred Thousand US Dollars), having executed during last 5 years duly indicating the duration, value and years of performance, which should showcase the expertise/ strength of the consultant for undertaking such assignments. The Consultant while describing the assignment(s) for similar experience should furnish the following details:  Consultant should explain in what way the executed assignment(s) was/were similar in nature to the current assignment.  The Consultant should explain the exact role played by the Consultant in the assignment if the assignment was carried out in association with other firms as JV or in sub-consultancy for carrying out the assignment. d) Consultant having some regional experience is desirable. e) The requirements for Consultants who intends to associate with other firm(s) in the form of a Joint Venture (JV) or Consortium or a sub-consultancy to enhance their qualifications are indicated as under: i. The lead partner is required to be identified clearly and state the composition and nature of their association (JV/ sub-consultant) in their EOI. ii. In case of JV, the lead partner shall meet the shortlisting criteria of turnover under (b) above and substantially meet the experience criteria under (c) above (having executed the assignments with contract value indicated therein). The JV partner should also meet the shortlisting criteria under (c) above (having executed the assignments with contract value as 50% of the value indicated therein). iii. In case of Consultant who intends to associate with other firm(s) in the form of a sub-consultancy, the lead partner shall meet the shortlisting criteria of turnover and experience as under (b) & (c) above. f) The Consultant should furnish only true and factual information in the EOI (for itself and its partners, if any). By an act of submission of an EOI against this REoI, the Consultant shall be deemed to be aware that for any misrepresentation by the Consultant detected at any stage of selection process or during execution of the resultant contract, if successful, the Consultant may be prosecuted under the Laws of Afghanistan.
Consulting Services for Rendering Financial Audit Services for the Government organizations of Afghanistan