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African Economic Research Consortium (AERC)

REQUEST FOR PROPOSAL (RFP)

PROVISION OF INTERNAL AUDIT SERVICES FOR THE PERIOD

AERC/PROC/GSS/RFP/2017-2018/0025/032

CLOSING DATE: Wednesday, December 13, 2017 at 12:00 pm

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Contents More details on the services are provided in the Appendix to Instructions to Consultants (ITC) and Evaluation Criteria. ............................................................................................... 3

SECTION II -INFORMATION TO CONSULTANTS ............................................................ 4 APPENDIX TO INSTRUCTIONS TO CONSULTANTS AND EVALUATION CRITERIA ........................................................................................................................... 13 PART I – GENERAL CONDITIONS ................................................................................. 17 Note ...................................................................................................................................... 17

PREAMBLE TO GENERAL CONDITIONS............................................................. 18 PART II – SPECIAL CONDITIONS .................................................................................. 19

SECTION III -TERMS OF REFERENCE (TOR)................................................................ 21 3.1 Background .................................................................................................................... 21 3.2 Objectives of the assignment ......................................... Error! Bookmark not defined. 3.3 Scope of services............................................................ Error! Bookmark not defined. 3.3.1 Compliance to Specifications ..................................................................................... 22

SECTION IV - TECHNICAL PROPOSAL (TP) ............................................................. 23 Notes on the Preparation of Technical Proposal .................................................................. 23

TECHNICAL PROPOSAL SUBMISSION FORM ................................................... 24 FIRM’S REFERENCES ............................................................................................... 25 CONFIDENTIAL BUSINESS QUESTIONNAIRE ................................................... 26 BID SECURITY FORM................................................................................................ 28 COMMENTS AND SUGGESTIONS .......................................................................... 29 METHODOLOGY AND WORK PLAN ..................................................................... 30 TEAM COMPOSITION AND TASK ASSIGNMENTS ........................................... 31 PROPOSED PROFESSIONAL STAFF ...................................................................... 32 TIME SCHEDULE FOR PROFESSIONAL PERSONNEL ..................................... 33 ACTIVITY (WORK) SCHEDULE .............................................................................. 34

SECTION V- FINANCIAL PROPOSAL (FP) ................................................................. 35 FINANCIAL PROPOSAL STANDARD FORMS ............................................................. 36

FINANCIAL PROPOSAL SUBMISSION FORM ..................................................... 37 SUMMARY OF COSTS ............................................................................................... 38 BREAKDOWN OF PRICE PER ACTIVITY ............................................................ 38 BREAKDOWN OF REMUNERATION PER ACTIVITY ....................................... 39 MISCELLANEOUS EXPENSES ................................................................................. 40

SECTION VI - STANDARD CONTRACT FORM ......................................................... 41 FORM OF AGREEMENT .................................................................................................. 42 FORM OF TENDER SECURITY ....................................................................................... 44 PERFORMANCE BANK GUARANTEE (UNCONDITIONAL) ..................................... 45

DECLARATION FORM ......................................................................................................... 46 LITIGATION AND ARBITRATION HISTORY............................................................... 47 LETTER OF NOTIFICATION OF AWARD ..................................................................... 48

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SECTION I - LETTER OF INVITATION

TENDER NAME: PROVISION OF INTERNAL AUDIT SERVICES

TENDER NO: AERC/PROC/GSS/RFP/2017-2018/0025/032

Dear Sir,

1. African Economic Research Consortium (AERC) invites proposals for the provision of INTERNAL AUDIT services.

2. Prices quoted should be inclusive of all taxes and delivery costs, must be in United

Stated Dollars (USD) and shall remain valid for a period of ninety (90) days from the submission deadline.

3. A Firm Must submit Bid Security of 2% of the total tender sum in form of Bank

Guarantee, Bankers Cheque, Insurance Guarantee (firms approved by Public Procurement Oversight Authority) to accompany Technical Proposal.

4. A firm will be selected under Quality and Cost Based Selection (QCBS) and

procedures described in this RFP. More details on the services are provided in the Appendix to Instructions to Consultants (ITC) and Evaluation Criteria.

5. The RFP includes the following documents:

Section 1 - Letter of Invitation Section 2 - Information to Consultants Section 3 - Technical Proposal - Standard Forms Section 4 - Financial Proposal - Standard Forms Section 5 - Terms of Reference Section 6 - Standard Forms of Contract

6. Please inform us, upon receipt:

(a) that you received the letter of invitation; and (b) whether you will submit a proposal singly or in association with others.

Yours sincerely, Prof. Lemma W. Senbet EXECUTIVE DIRECTOR

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SECTION II -INFORMATION TO CONSULTANTS 2.1 Introduction 3 The African Economic Research Consortium (AERC), established in July 1988 as a

public supported not-for-profit corporation chartered by the State of Delaware, is a public not-for-profit organization devoted to advanced policy research and training. The principal objective of the Consortium is to strengthen local capacity for conducting independent, rigorous inquiry into problems pertinent to the management of economies in sub-Saharan Africa.

4 AERC is a corporate body with full legal personality in Kenya as conferred under Section 11 of the Privileges and Immunities Act (Cap 179) through Legal notice No. 24 of year 2000. AERC is also registered as a foreign corporation under Part X of the Companies Act (Cap 486), on 11 December 1991.

5 Its primary source of funds are donor governments, private foundations, and African and international organizations.

5.1.1 African Economic Research Consortium (AERC) will select a consultant firm among those invited to submit proposals or those who respond to the invitation for proposals in accordance with the method of selection detailed under this section and consistent with the regulations.

5.1.2 The consulting firms are invited to submit technical and financial proposals for

consulting services required for the assignment stated in the letter of invitation. 5.1.3 The consultant firms must familiarize themselves with local conditions as regards the

assignment and take them into account in preparing their proposals. To obtain adequate information on the assignment and on the local conditions, consultant firms are encouraged to liaise with the procuring entity regarding any information that they may require before submitting a proposal.

5.1.4 The client will provide the inputs and services specified in the special conditions of

contract needed to assist the consultant firm to carry out the assignment. 5.1.5 The cost of preparing the proposal and negotiating the contract including any visit to

the procuring entity are not reimbursable as a direct cost of the assignment. The procuring entity is not bound to accept any of the proposals submitted.

5.1.6 The procuring entity’s employees, committee members, board members and their

relative (spouse and children) are not eligible to participate in the tender. 5.2 Clarification and amendment to the RFP documents 2.2.1 Consultant firms may request clarification of any of the RFP documents not less than

seven (7) days before the deadline for the submission of the proposals. Any request for clarification must be sent in writing by email to the procuring entity’s address indicated in the special conditions of contract. The procuring entity will respond by email to such requests and will post such responses (including an explanation of the query but without identifying the source of inquiry) on the AERC website for reference by all consultant firms invited to submit proposals.

2.2.2 At any time before the deadline for submission of the proposals, the procuring entity

may for any reason, either at its own initiative or in response to a clarification requested by an intended consultant firm to amend the RFP. Any amendment shall be issued by

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email to all invited consultant firms and will be binding on them. The procuring entity may at its discretion extend the deadline for the submission of the proposals.

2.2.3 Clarification of tenders shall be requested by the tenderer to be received by the

procuring entity not later than 7 days prior to the deadline for submission of tenders. 2.2.4 The procuring entity shall reply to and give clarifications sought by the tenderer within

3 days of receiving the request to enable the tenderer to make timely submission of its tender.

2.3 Preparation of proposals 2.3.1 The consultant firm’s proposal shall be written in English language. 2.3.2 In preparing the Technical proposal, the consultant firms are expected to examine the

documents consisting of the RFP in detail. Material deficiencies in providing the information requested may result in rejection of a proposal.

2.3.3 While preparing the Technical proposal, the consultant firm must give particular

attention to the following:

(a) If a consultant firm considers that it does not have all the expertise required for the assignment the firm may suggest in the proposal, other firm(s) who will assist in the assignment but they will not be party to the contract for the purpose of the performance of the assignment. A consultant firm will not propose other firm of consultants invited to submit proposals for the assignment. Any consultant firm in contravention of this requirement shall automatically be disqualified.

(b) All the staff who will be involved must indicate their responsibility in the

assignment and also the staff time as necessary.

(c) The curriculum vitae (CV) of the staff proposed must be submitted with the proposal.

2.3.4 The Technical proposal shall provide the following information: Qualification requirements for Bidders:

• Documentary Evidence that the tenderer is legally incorporated in Kenya. In case of partnership at least 1 partner MUST be incorporated in Kenya (attach copy of certificate of Incorporation and valid single Business permit)

• Compliance with Statutory requirements - attach a copy of valid Tax compliance certificate (To be verified online through KRA TCC checker)

• The Firm must have been in operation for at least five years.

• Sound financial positions demonstrated by audited financial statement for the last three years (2014, 2015 and 2016).

• Details of any Current litigation or arbitrations proceedings within the last 5 years in which the tenderer (or any predecessor firms related to tenderer or any consortium or partner member was involved as one of the parties. The details should include the nature of litigations when it happened, costs and the current status

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MANDATORY PROJECT SCOPE SHALL INCLUDE ITEMS BELOW :

1.1 Mandatory Project Scope • Internal Audit • Assessment of the effectiveness of internal control systems and procedures • Assessment of risks arising from internal controls assessment • Assessment of compliance with various legislations • Assessment of conformity with the United States Generally Accepted Accounting Principles

(GAAP) • Value addition services, bench-making and best practices in regards to any aspect as part of

the assessment of the internal controls environment. • Audit of the financial statements presented and providing an opinion of the same • Issue of the Management Letter and financial statements

2.3.5 The Technical proposal shall be separate from the financial proposal and shall not

include any financial information. 2.4 Financial proposal 2.4.1 In preparing the financial proposal, the consultant firms are expected to take into

account the time required in completing the assignment as outlined in the RFP documents. The financial proposal may also include other costs as necessary, which will be considered as reimbursable.

2.4.2 The Financial proposal should include the payable taxes and any recurrent costs. 2.4.3 The fees shall be expressed in United States Dollars (USD). 2.4.4 The Financial proposal must remain valid for 90 days after the submission date. During

this period the consultant firm is expected to keep available at his own cost any staff proposed for the assignment. The procuring entity will make best efforts to complete negotiations within this period. If the procuring entity wishes to extend the validity period of the proposals, the consultants who do not agree, have the right not to extend the validity of their proposals.

2.4.5 The financial proposal must comply with the law governing the profession of the

consultant.

2.5 Submission, receipt and opening of proposals 2.5.1 The technical proposal and the financial proposal shall be prepared in indelible ink. It

shall contain no interlineations or overwriting, except as necessary to correct errors made by the firm consultants. Any such corrections must be initialed by the firm consultant.

2.5.2 For each proposal, the consultant firms shall prepare the proposals in the number of

copies indicated in the special conditions of contract. Each technical proposal and financial proposal shall be marked “ORIGINAL” or “COPY” as appropriate. If there are any discrepancies between the original and the copies of the proposal, the original shall govern.

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2.5.3 The original and all copies of the technical proposal shall be placed in a sealed envelope

clearly marked “TECHNICAL PROPOSAL”, and the original and all copies of the financial proposal in a sealed envelope duly marked “FINANCIAL PROPOSAL”. Both envelopes shall be placed in an outer envelope and sealed. This outer envelope shall bear the procuring entity’s address and other information indicated in the appendix to the instructions to consultants and clearly marked “DO NOT OPEN before 12:00 pm, Wednesday, December 13, 2017”.

2.5.4 The completed technical and financial proposals must be delivered at the submission

address on or before the time and date of the submission of the proposals indicated in the appendix to the instructions to consultants. Any proposals received later than the closing date for submission of proposals shall be rejected and returned to the consultant firm unopened. For this purpose the inner envelope containing the technical and financial proposals will bear the address of the consultant firm submitting the proposals.

2.5.5 After the deadline for submission of proposals the outer envelope and the technical

proposals shall be opened immediately by the opening committee. The financial proposals shall be marked with the firm number allocated at the time of opening the outer envelope and the technical proposals but shall remain sealed and in the custody of a responsible officer of the procuring entity up to the time set for opening them.

2.6 Evaluation of the Proposal (General) 2.6.1 From the time the proposals are opened to the time of the contract award, if any

consultant firm wishes to contact the procuring entity on any matter relating to his/her proposal, he/ she should do so in writing at the address indicated in the appendix to the instructions to consultants. Any effort by a consultant firm to influence the procuring entity’s staff in the evaluation of proposals companion proposals or awards of contract may result in the rejection of the consultant firm proposal.

2.6.2 The proposal evaluation committee shall have no access to the Financial Proposal,

which in any case will remain sealed, until the technical evaluation is concluded or finalized.

2.7 Evaluation of Technical Proposals 2.7.1 The evaluation committee appointed by the procuring entity to evaluate the proposals

shall carry out the evaluation of technical proposals following the criteria set out in the terms of reference based on the following points criteria:

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MANDATORY/PRELIMINARY EVALUATION

TECHNICAL EVALUATION CRITERIA

NO CRITERIA POINTS (i) Preliminary Evaluation (Tenderers shall meet the following preliminary

evaluation requirements. Failure to meet any of the requirements below shall lead to disqualification from further evaluation)

Yes / No

(A)Mandatory Requirements Points 1. Valid Single Business permit and Certificate

of Incorporation in Kenya Yes/No

2. Valid Tax Compliance Certificate (To be verified online through TCC checker)

Yes/No

3. Bid Bond (of 2% of the Bid amount) Yes/No 4. Dully Filled, signed and stamped Business

Questionnaire Yes/No

5. Audited Financial statements for the last current 3 years (2014, 2015 and 2016)

Yes/No

6. Professional certification and current practice license with ICPAK

Yes/No

7. In existence for not less than ten years

Yes/No

8. Must submit one (1) original and three (3) copies of both technical and financial proposals

Yes/No

(NB: Must attach evidence i.e. completion letters/certificates. The procuring entity may perform a due diligence process to ascertain attached evidence)

NB: For a bidder to proceed to the next stage, one MUST meet all the mandatory requirements.

NO CRITERIA POINTS (i) Specific experience of the Consultant firm related to the

assignment: - at least 10 years’ experience in Kenya - list at least 10 current audit assignments, including in

the past one (1) year

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2.7.2 Any proposal which will be examined and found not to comply with all the

requirements for submission of proposals will be declared non responsive. All the proposals found to have complied with all the requirements for submission of proposal shall be declared responsive by the evaluation committee.

2.7.3 Each responsive proposal will be given a technical score (ST). Any technical proposal

which fails to achieve the total minimum score indicated in the appendix to the information to tenderers shall be rejected at this stage and will not proceed to the next stage of evaluation. The respective financial proposal will be returned to the consultant firm unopened.

(ii) Qualifications and competence of the key staff for the assignment Key personnel experience The Audit Manager must have at least 5 years of experience in auditing international institutions and Donor funds, and must be a member of a recognized accountancy professional body.

a) With a minimum Masters’ Degree and at least 5 years of experience.

b) Must belong to a relevant professional body (attach proof).

Support/Technical staff with the following qualifications:

i. The Audit Team Leader with at least 5 years’ experience in auditing

ii. There should be at least three (3) Assistant Auditors with adequate audit experience and CPA (K) professional qualifications or equivalent.

B: The CVs of staff proposed and copies of their certificates MUST be attached.

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(iii). Adequacy of methodology and work plan in response to the Terms of reference

a) Clear understanding and interpretation of Terms of Reference

b) Timelines proposed and clearly tabulated through Gant chart.

c) References (recommendation letters) from at least five (5) local companies where similar project has been implemented with contact person(s) and their contacts in form of telephone numbers and emails address (at least 2 should be from international NGOs/Government ministries/state corporations).

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iv) Specific experience with audit of organizations that comply with GAAP- list the firms audited.

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Total Points 100 PASSMARK = 75%

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2.8 Opening and Evaluation of Financial Proposals 2.8.1 After completion of the evaluation of Technical proposals, the procuring entity shall

notify the consultant firms whose proposal did not meet the minimum technical score or were declared non responsive to the RFP and terms of reference. The notification will indicate that their financial proposals shall not be opened and will be returned to them unopened after the completion of the selection process and contract award. At the same time, the procuring entity shall simultaneously notify the consultants who have secured the minimum technical score that they have passed the technical qualifications and inform them the date and time set by the procuring entity for opening their financial proposal. They will also be invited to attend the opening ceremony if they wish to do so.

2.8.2 The financial proposals shall be opened by the procuring entity in the presence of the

consultant firms who choose to attend the opening. The name of the consultant firm, the technical score and the proposed fees shall be read out aloud and recorded. The evaluation committee shall prepare minutes of the opening of the financial proposals.

2.8.3 The formulae for determining the financial score (SF) unless an alternative formula is

indicated in the appendix to the information to Tenderers shall be as follows:

Sf = 100 x fm/f where Sf is the financial score Fm is the lowest fees quoted and F is the fees of the proposal under consideration.

The lowest fees quoted will be allocated the maximum score of 100

2.8.4 The firm consultants proposals will be ranked according to their combined technical

score (st) and financial score (sf) using the weights indicated in the appendix to the instructions to consultants. Unless otherwise stated in the appendix to the instructions to consultants the formula for the combined scores shall be as follows:

S = STxT% + SF x P% Where

S, is the total combined scores of technical and financial scores St is the technical score Sf is the financial score T is the weight given to the technical proposal and P is the weight given to the financial proposal

Note P + T will be equal to 100% The consultant firm achieving the highest combined technical and financial score will be invited for negotiations.

2.9 Negotiations

2.9.1 Negotiations will be held at the same address indicated in the appendix to the

information to consultants. The purpose of the negotiations is for the procuring entity and the consultant firm to reach agreements on all points regarding the assignment and sign a contract.

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2.9.2 The negotiations will include a discussion on the technical proposals, the proposed methodology and work plan, staff and any suggestions made by the consultant firm to improve the Terms of reference. The agreed work plan and Terms of reference will be incorporated in the description of the service or assignment and form part of the contract.

2.9.3 The negotiations will be concluded with a review of the draft contract. If negotiations

fail, the procuring entity will invite the consultant firm whose proposal achieved the second highest score to negotiate a contract.

2.10 Award of Contract 2.10.1 The contract will not be awarded before commencement of negotiations. After

negotiations are completed the procuring entity will promptly notify the other consultant firms that they were unsuccessful and return the financial proposals of the consultant firms who did not pass the technical evaluation.

2.10.2 The selected consultant firm is expected to commence the assignment on the date

indicated in the appendix to the information to consultants or any other date agreed with the procuring entity.

2.11 Confidentiality 2.11.1 Information relating to evaluation of proposals and recommendations of contract award

shall not be disclosed to the consultant firms who submitted proposals or to other persons not officially concerned with the process, until the winning consultant firm has been notified that he/she has been awarded the contract.

2.12 Tender Security 2.12.1 The tenderer shall furnish as part of his tender, a Tender Security in the amount and

form stated in the Appendix to Instructions to Tenderers. 2.12.2 The tender security shall not exceed 2 percent of the tender price. 2.12.3 The tender security shall be valid for at least thirty (30) days beyond the tender validity

period.

The format of the Surety shall be in accordance with the sample form of Tender Surety included in these tender documents; other formats may be permitted subject to the prior approval of the Procuring entity. The Tender Surety shall be valid for thirty (30) days beyond the tender validity period.

2.12.4 Any tender not accompanied by an acceptable Tender Surety will be rejected by the

Procuring entity as non-responsive. 2.12.5 The Tender Sureties of unsuccessful tenderers will be returned as promptly as possible,

but not later than fourteen (14) days after concluding the Contract execution and after a Performance Security has been furnished by the successful tenderer. The Tender Surety of the successful tenderer will be returned upon the tenderer executing the Contract and furnishing the required Performance Security.

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2.12.6 The Tender Surety may be forfeited:

(a) if a tenderer withdraws his tender during the period of tender validity: or (b) in the case of a successful tenderer, if he fails

(i) to sign the Agreement, or (ii) to furnish the necessary Performance Security

2.13 Performance Guarantee 2.13.1 Within twenty eight (28) days of receipt of the notification of award from the Procuring

entity, the successful tenderer shall furnish the Procuring entity with a Performance Security in an amount stated in the Appendix to Instructions to Tenderers.

2.13.2 The Performance Security to be provided by the successful tenderer shall be an

unconditional Bank Guarantee issued at the tenderer’s option by an established and a reputable Bank approved by the Procuring entity and located in the Republic of Kenya.

2.13.3 Failure of the successful tenderer to lodge the required Performance Security shall

constitute a breach of Contract and sufficient grounds for the annulment of the award and forfeiture of the Tender Security and any other remedy under the Contract the Procuring entity may award the Contract to the next ranked tenderer.

Payment 2.13.1 Payments will be made upon submission of reports after the Interim Audit and Final

approval of Audited Financial Statements. 2.14 Corrupt and fraudulent practices 2.15.1 The procuring entity requires that the consultant firms observe the highest standards

of ethics during the selection and award of the consultancy contract and also during the performance of the assignment. The tenderer shall sign a declaration that he has not and will not be involved in corrupt or fraudulent practices.

2.15.2 The procuring entity will reject a proposal for award if it determines that the consultant firm recommended for award has engaged in corrupt or fraudulent practices in competing for the contract in question.

2.15.3 Further a consultant firm who is found to have indulged in corrupt or fraudulent practices risks being debarred from participating in public procurement in Kenya.

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APPENDIX TO INSTRUCTIONS TO CONSULTANTS AND EVALUATION

CRITERIA The following information for procurement of consultancy services and selection of a consultant firm shall complement or amend the provisions of the information to consultants, wherever there is a conflict between the provisions of the information and to consultant firm and the provisions of the appendix, the provisions of the appendix herein shall prevail over those of the information to the consultants. CLAUSE Section 1 1.

Procuring Entity/Procuring entity means; African Economic Research Consortium (AERC), an International Non-Governmental Organization.

2. The evaluation committee appointed by the procuring entity to evaluate the proposals shall carry out the evaluation of technical proposals following the criteria set out in the terms of reference.

2.7.1 (ii) Tenderers shall submit a comprehensive company profile describing similar assignments undertaken in the last 10 years. Details of contact persons of such assignments must be provided.

Names of audit partners and copies of academic and professional qualifications. All partners must have a relevant degree and be members of a recognized accountancy professional body

Below are the minimum qualifying criteria:

i) Specific experience of the Consultant firm related to the assignment (Attach proof such as Recommendation Letters)

Response Points 10 and above 10 Below 10 0

NB: Documents submitted shall clearly indicate name of project, company,

amount, commencement and completion dates of the contracts, and names of contact persons and their contacts (email and telephone).

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2.7.1 (iii) The qualifications and experience of key personnel proposed for administration and execution of the Contract, both on and off site. Bidders shall submit CVs of key personnel to be involved in the project (40 points).

The minimum requirement is as follows:-

a) The engagement partner must have 10 years audit experience with sound knowledge of public sector, international organizations and Donor-funded projects, and must be a member of a recognized accountancy professional body (25 points).

Lead Consultant Education, Certification Points and professional body membership. Bachelors’ degree with certification in the relevant field, with required experience and proof of belonging to a relevant professional body • Proof of professional body

membership - 6 • Masters’ Degree in related field-7

Lead Consultant Experience Points

•10 years and above – 12 • 6-9.9 years - 5 •Below 6 years – 0

b) 3 Technical/support staff with first degree and 5 years’ experience in related field as indicated (15 points).

3 Technical/support Staff Education & Certification Points •First degree with certification in the relevant field -2.5 per staff (7.5)

• All testimonials provided-2.5

3 Technical Staff Experience Points

•Above 5 Years – 5 •Between 2-4.99 Years – 3 •Below 2 Years – 1

NB: Attach supporting documents (CVs and Certificates)

2.7.1 (iv)

Adequacy of methodology and work plan in response to the Terms of reference (40 Points)

a) Clear understanding and interpretation of Terms of Reference - Max 10 points

b) Timelines proposed and clearly tabulated through Gaant chart - Max 10 points

c) Clear implementation approach of the proposed audit exercise – Max 10 points

d) References (recommendation letters) from five (5) local companies where similar project has been implemented with contact person(s) and their contacts in form of telephone numbers and emails address (at least 2 should be from international NGOs/Government ministries/state corporations) - 2 points per relevant reference (Max 10 points)

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2.7.1 (v) Specific experience with audit of organizations that comply with GAAP - list the firms audited. (Max 10 points)

2.2 Address for clarification:

Executive Director African Economic Research Consortium (AERC) P.O. Box 62882– 00200 Nairobi, Kenya Email: procurement@aercafrica.org Telephone: 020-2734150/3/7 / 0722 205272/ 0733 333298

2.10.1 The contract will not be awarded before commencement of negotiations. However, a pre-contract negotiation will be held with the successful firm to discuss the terms of reference. Negotiations will include but not limited to Project Timelines. After negotiations are completed the procuring entity will promptly notify the other firms’ consultants that they were unsuccessful and return the financial proposals of the firm consultants who did not pass technical evaluation.

2.12 The Tender Security shall expire not earlier than (120 Days after tender opening date) Amount of Tender Security is as follows:-

• Two percent (2%)of the tender sum in United States Dollars (US$) The tender security shall be in the form of

1. cash or banker’s cheque, or 2. a bank guarantee, or 3. guarantee issued by a reputable insurance company approved by

Public Procurement Oversight Authority (PPOA) or 4. Letter of credit.

Section 1 The name and address of the Procuring entity for the purposes of submission of tenders is:-

Executive Director African Economic Research Consortium (AERC) P.O. Box 62882 – 00200 NAIROBI, KENYA, Website: www.aercafrica.org

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Section 1

The name and identification of the contract is: PROVISION OF INTERNAL AUDIT SERVICES

The Tender Number is:

AERC/PROC/GSS/RFP/2017-2018/0025/032

2.13 Performance Security Performance security shall be valued at 10% of the total contract price, in the format provided and shall be in form of;

a) Cash or banker’s cheque, b) A bank guarantee, c) Such insurance guarantee approved by the Authority. The insurance policy

number must be provided or d) Letter of credit.

For each proposal the consultant firms shall prepare the proposals in one (1) Original and three (3) copies. The proposals shall be submitted in two sealed envelopes marked “Technical Proposal” and “Financial Proposal”. The two envelopes will be enclosed in one outer sealed envelope. The outer envelope shall bear the tender no. AERC/PROC/GSS/RFP/2017-2018/0025/032 without identifying the sender and must be addressed to:

The Executive Director African Economic Research Consortium (AERC) 3rd Floor, Mebank Towers, Jakaya Kikwete Road P.O. Box 62882 – 00200 NAIROBI, KENYA.

so as to be received on or before 12:00 pm East African time on Wednesday, December 13, 2017.

Tenders (Technical Proposal) will be opened immediately after the deadline of tender submission in the presence of the candidates or their representatives who choose to attend at African Economic Research Consortium (AERC), 3rd Floor, Mebank Towers, Jakaya Kikwete Road.

The method of selection is: QUALITY AND COST BASED SELECTION (QCBS) METHOD.

A pre-proposal conference will not be held.

The minimum Technical score required to pass is: 75%

The weights given to the Technical and Financial Proposals are:

T= 0.75

F= 0.25

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CONDITIONS OF CONTRACT PART I – GENERAL CONDITIONS The Conditions are subject to variations and additions set out in Part II hereof entitled “Special Conditions”. Note i. The standard text of the General Conditions of Contract must be retained intact to

facilitate its reading and interpretation by tenderers. Any amendments and additions to the General Conditions, specific to a given Contract, should be introduced in the Special Conditions or in the Appendix to Form of Tender.

ii. The Special Conditions take precedence over the General Conditions of Contract.

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PREAMBLE TO GENERAL CONDITIONS This Preamble must be completed in all cases referring to completed schedules where appropriate. When completed, this Preamble, the General Conditions, Specification, Procuring entity’s, Schedules and other documents can constitute a Contract on the basis of the General Conditions in Part II. If this is not what is required, Part II must also be completed. SUB-CLAUSE WHERE APPLICABLE

2.10 Commencement Date The date for commencement of the Works is: January 1, 2018

2.1.3 2.12.1 2.12.2 2.13.1

Procuring Entity / Procuring entity means; African Economic Research Consortium (AERC), an International NGO operating in Kenya under a Host Country Agreement (HCA)

The Project Manager The Project Manager is: The Finance Manager African Economic Research Consortium (AERC)

Duration of the Audit Work The duration of the Assignment will be one year, broken down to quarterly visits as may be agreed with AERC.

Ruling Language The version in English language (ruling language) shall prevail.

Day to Day Communications

The language for day to day communications is English.

2.7.1 (iv) Programme to be furnished

The Programme must be submitted in the form of a detailed critical path network, Gantt chart or equivalent.

AERC’s Facilities

As per special conditions

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PART II – SPECIAL CONDITIONS (The Clauses referred to in Part II – Section A are those where the provision in the General Conditions (Part I) refer to an alternative solution to be stated in Part II. The provisions in the General Conditions will apply unless an alternative solution is given in Part II – Section A. The clauses in this section need therefore not be completed, but must be completed if alternative solutions to the relevant Part I provisions are necessary.)

SUB-CLAUSE WHERE APPLICABLE

2.10 Conditions Precedent to Commencement The following financial and administrative requirements are conditions precedent to commencement:

Signing of contract, submission of performance security.

2.13 Performance Security The Contractor shall obtain a Performance Security at an amount equal to 10% equivalent of the contract sum as per the instructions to Tenderers.

Procuring entity’s Equipment The following items of Procuring entity’s Equipment will be provided free of charge by the Procuring entity for the Contractor’s use: INTERNET & OFFICE SPACE

Price Variation

No variation of contract price for the three years.

Payment The period for payment shall be: Within 30 days after certification of work completion. The place for payment shall be: African Economic Research Consortium (AERC)

Working Hours The normal working hours are from 8.30 am to 5.00 pm local time, Monday to Friday except lunch time between 1.00 pm and 2.00 pm and on public holidays. Upon prior arrangements with procuring entity, consultant may be allowed to work outside the hours mentioned.

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SUB-CLAUSE WHERE APPLICABLE

Delay in Completion Failure to meet the Time for Completion entitles the Procuring entity to reduction in Contract Price as follows: Amount for each month of delay: 0.5% Maximum: 10% of total contract sum

Prolonged delay

Maximum amount recoverable from the Consultant by the Procuring entity: Amount equal to total contract sum.

Arbitration

The rules of arbitration shall be those contained in the Arbitration Act of the Laws of Kenya.

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SECTION III -TERMS OF REFERENCE (TOR) FOR INTERNAL AUDIT SEVRICES

3.1 BACKGROUND African Economic Research Consortium (AERC) was established in July 1988. It is a public not-for-profit organization devoted to advanced policy research and training. AERC’s principle objective is to strengthen local capacity for conducting independent, rigorous inquiry into problems pertinent to the management of Sub-Saharan African economies through a synergistic programme combining economic research with postgraduate training in economics.

3.2 TERMS OF REFERENCE 3.2.1 Overall purpose of role The purpose of the function is to provide independent and objective assurance on the effectiveness of AERC’s risk management, internal controls and governance process to support achievement of the Consortium’s goals and objectives. The Internal Auditor reports administratively to the Executive Director and functionally to the Audit and Risk Committee of the AERC Board. 3.2.2 Main Duties and Responsibilities Risk Management

• To apply a risk-based approach to the review of the systems and controls of the AERC through the development of an annual programme of audit review work.

• To provide an independent challenge to the business view of risk as articulated via the framework.

• To promote risk management best practice across the AERC. • Monitor and assess management’s progress on past audit results and report related

follow-up to Risk & Audit Committee report • Review Conflict of Interest procedures to ensure effective controls that properly

monitor any disclosed outside interests

Internal Controls

• Review manual and automated financial systems; functions, processes, programs, operational and business risks, to identify process weaknesses and inefficiencies, establish compliance with established risk management policy, internal controls and recommend corrective measures;

• To discuss the findings of audit reviews with management on a constructive basis in order to develop the most appropriate, proportionate solutions to issues arising.

• To report the results of audit reviews, including management responses and proposed action plans to address issues arising, to the Executive Director.

• To perform ad hoc investigations and reviews at the request of the Audit and Risk Committee.

• Act in a consultancy capacity to internal stakeholders in processes that add value to existing processes;

• Build internal capacity to increase awareness of internal controls and risk management

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• Review controls over IT environment including physical security and policies and procedures

• Review the internal controls for grant management process from selection to close out; 3.3 AUDITOR’S QUALIFICATIONS Knowledge, Experience and Qualifications

• Knowledge of specific IT packages e.g. MS Office, CAATs, Visio MIIA, CCAB Qualified

• Must be a graduate • Have exposure and experience to Financial Services • Minimum 10 years post qualified experience • Experience in the management of the audit function • Thorough understanding of the principles and application of good corporate

governance, business and operational risk and control processes and procedures

Key skills and Competencies

• A good knowledge of internal control and risk management frameworks and concepts. • Good understanding of the ethical framework for internal auditors and an ability to

appreciate ethical issues applicable generally in the work place. • Excellent analytical skills • High‐level skills in written and verbal communication in English, together with proven

ability to prepare and present clear, logical and succinct written reports and correspondence

• Capacity to work both autonomously and in a team environment. • Strong inter‐personal skills is a must, including an ability to work harmoniously in a

multi‐cultural environment within the internal audit unit

3.4 COMPLIANCE TO SPECIFICATIONS Bidders shall provide a schedule of compliance listing for every sub-clause of the following technical requirements, with a detailed description of how they will meet the requirements/specifications. The use of the words YES, NO, TICKS, NOTED, etc is inadequate and will be equated to “not complied” and will lead to disqualification of the bid. The Bidder shall provide enough documentation to back up their compliance claims. Reference to these documents should be direct and specific. The bids to be considered further are those that fully comply with requirements/specification or where the alternative offered is equivalent or better than requirement/specification. 3.5 PERSONNEL, FACILITIES AND OTHER REQUIREMENTS TO BE

PROVIDED

African Economic Research Consortium (AERC) will provide the following items: a) All information/data required for the assignment b) Services and equipment (including but not limited to Internet Services) c) Facilities, office space

23

SECTION IV -TECHNICAL PROPOSAL (TP) Notes on the Preparation of Technical Proposal The technical proposal shall be prepared and submitted by the consultants. It shall contain the following:-

(a) Submission letter (b) Particulars of the consultant including Curriculum Vitae (CVs) (c) Comments and suggestions of the consultant on the terms of reference, personnel,

facility and other requirements to be provided by the procuring entity. (d) Description of the methodology and work plan for performing the assignment (e) Any proposed staff to assist in the assignment (f) Consultancy services activities time schedule.

(to be prepared by the consultant firm as appropriate)

24

TECHNICAL PROPOSAL SUBMISSION FORM

Date ………………

To:

Procurement Committee, African Economic Research Consortium (AERC), P.O. Box 62882 – 00200 NAIROBI, KENYA

Ladies/Gentlemen:

We, the undersigned, offer to provide the consulting services for PROVISION OF INTERNAL AUDIT SERVICES FOR AFRICAN ECONOMIC RESEARCH CONSORTIUM (AERC) in accordance with your Request for Proposal dated……………….and our Proposal. We are hereby submitting our Proposal, which includes this Technical Proposal, [and a Financial Proposal sealed under a separate envelope-where applicable].

We understand you are not bound to accept any Proposal that you receive.

Yours sincerely,

Authorized Signatory

Name & Title of Signatory

Name of Firm

Address of Consultant Firm

25

FIRM’S REFERENCES Using the format below, provide information on each assignment for which your firm either firmly, as a corporate entity or in association, was legally contracted.

Assignment Name: Country Location within Country: Professional Staff provided by Your

Firm/Entity(profiles): Name of Client: Clients contact person for the

assignment. Address: No of Staff-Months; Duration of

Assignment: Start Date (Month/Year):

Completion Date (Month/Year):

Approx. Value of Services (Kshs)

Name of Associated Consultants. If any: No of Months of Professional Staff provided by Associated Consultants:

Name of Senior Staff (Project Director/Coordinator, Team Leader) Involved and Functions Performed: Narrative Description of project: Description of Actual Services Provided by Your Staff:

Firm’s Name: Name and title of signatory;

26

CONFIDENTIAL BUSINESS QUESTIONNAIRE You are requested to give the particulars indicated in part 1 and either Part 2(a), 2(b) or 2(c) and 2(d) whichever applies to your type of business.

You are advised that it is a serious offence to give false information on this firm.

Part 1 – General

Business Name________________________________________________

Location of Business Premises (Plot No) ____________________________

Street/Road _______________________________

Postal Address ____________________________

Tel No ________________________________

Country/Town ______________________________

Nature of Business _____________________________________________

Current Trade License No __________________ Expiring date_____________________

Maximum value business which you can handle at any time

USD $ ________________________________________________________

Name of your bankers __________________________________________

Branch _____________________________________________________

Part 2 (a) – Sole Proprietors

Your name in full __________________________ Age _______________

Nationality _____________________ Country of Origin ______________

Citizenship details ____________________________________________

Part 2 (b) – Partnership Give details of partners as follows: Name in full Nationality Citizenship Details Shares

1……………………………………………………………………………

2……………………………………………………………………………

3……………………………………………………………………………

27

Part 2(c) – Registered Company: Private or public…………………………………………………………… State the nominal and issued capital of the Company- Nominal Kshs………………………………………………………………… Issued Kshs…………………………………………………………………… Give details of all directors as follows: Name in full . Nationality. Citizenship Details*. Shares. 1. ………………………………………………………………………..

2. ……………………………………………………………………...

3. ……………………………………………………………………...

4. ……………………………………………………………………...

Part 2(d) – Interest in the Firm: Is there any person / persons in …………… ………(Name of Procuring entity) who has interest in this firm? Yes/No………………………(Delete as necessary) I certify that the information given above is correct. ……………………… ……………………… ………………… (Title) (Signature) (Date) * Attach proof of citizenship

28

BID SECURITY FORM Whereas ____________________________________________

[Name of the bidder] (Hereinafter called “the bidder”) has submitted its bid dated

_____________ [date of submission of bid] for the supply, installation, testing and

commissioning of an Enterprise Resource Planning (ERP) system (hereinafter called “the

Bid”). KNOW ALL PEOPLE by these presents that WE

_____________________of__________________ having our registered offices at

________________________ (hereinafter called “the Bank”), are bound unto the African

Economic research consulting - AERC (hereinafter called the Procuring entity) in the sum

of_______________________________________________________________

for which payment well and truly to be made to the said procuring entity, the Bank binds

itself, it successors, and assigns by these presents.

Sealed with the common seal of the said Bank this ________day of _______ 20_____.

THE CONDITIONS of this obligation are:

1. If the bidder withdraws its bid during the period of bid validity specified by

the bidder on the Bid Form; or

2. If the bidder, having been notified of the acceptance of its Bid by the

Procuring entity during the period of the bid validity:

a. Fails or refuses to execute the Contract Form, if required; or

b. Fails or refuses to furnish the performance security, in accordance with the

Instructions to bidders;

We undertake to pay the Procuring entity up to the above amount upon receipt of its first written

demand, without the Procuring entity having to substantiate its demand, provided that in its

demand the Procuring entity will note that the amount claimed by it is due to it, owing to the

occurrence of one or both of the two conditions, specifying the occurred condition or

conditions.

This guarantee will remain in force up to and including thirty (30) days after the period of bid

validity, and any demand in respect thereof should reach the Bank not later than the above date.

______________________

29

COMMENTS AND SUGGESTIONS Comments and suggestions of consultants on the terms of reference and on data, services and facilities to be provided by the client;

On the Terms of Reference:

1.

2.

3.

4.

5.

On the data, services and facilities to be provided by the Client:

1.

2.

3.

4.

5.

30

METHODOLOGY AND WORK PLAN Description of the methodology and work plan for performing the assignment - The consultant is to prepare a proposal work plan on how they are to undertake the assignment.

31

TEAM COMPOSITION AND TASK ASSIGNMENTS

Technical/Managerial Staff

Name Position Task Task

Support Staff

Technical/Managerial Staff

Name Position Task Task

32

PROPOSED PROFESSIONAL STAFF FORMAT OF CURRICULUM VITAE (CV) FOR PROPOSED PROFESSIONAL

STAFF

Proposed Position:______________________________________________

Name of Firm: _____________________________________________

Name of Staff: _____________________________________________

Profession: _____________________________________________

Date of Birth: _____________________________________________

Years with Firm: _____________________________________________

Membership in Professional Societies: _______________________________

Detailed Tasks Assigned:

Key Qualifications:

[Give an outline of staff member’s Experience and training most pertinent to tasks on

assignment. Describe degree of responsibility held by staff member on relevant previous

assignments and give dates and locations].

Education:

[Summarize college/university and other specialized education of staff member, giving names

of schools, dates attended and degree[s] obtained.]

Employment Record:

[Starting with present position, list in reverse order every employment held. List all positions

held by staff member since graduation, giving dates, names of employing organizations, titles

of positions held, and locations of assignments.]

Nationality:______________________________________________________

Certification:______________________________________________________

I, the undersigned, certify that these data correctly describe me, my qualifications, and my

experience.

______________________________________Date:________________________

[Signature of staff member]

______________________________________Date;_________________________

[Signature of authorized representative of the firm]

Full name of staff member:____________________________________________

Full name of authorized representative:___________________________________

33

TIME SCHEDULE FOR PROFESSIONAL PERSONNEL

Weeks (in the Form of a Bar Chart)

Name Position Reports Due Activities

1 2 3 No of weeks

Reports Due:__________________________________________________

Activity Duration:_____________________________________________

Signature:_____________________________

(Authorized representative)

Full Name:____________________________________________________

Title:_________________________________________________________

Address:_____________________________________________________

34

ACTIVITY (WORK) SCHEDULE a) Field Investigation and Study Items

(1st, 2nd, etc, are weeks from the start of assignment)

Activity (Work)

1st 2nd 3rd

(b) Completion and Submission of Reports

Reports Date

1. Inception Report

2. Interim Progress Report

(a) First Status Report

(b) Second Status Report

3. Draft Report

4. Final Report

35

SECTION V- FINANCIAL PROPOSAL (FP)

Notes on the Preparation Financial Proposal The financial proposal shall be prepared and submitted by the consultants. It shall contain the following.

(a) Submission letter indicating total fees (b) Summary of costs (c) Breakdown of fees per activity (d) Breakdown of reimbursable costs/expenses per activity (e) Miscellaneous expenses

(to be prepared by the consultant firm as appropriate)

36

FINANCIAL PROPOSAL STANDARD FORMS

Table of Contents

1. Financial proposal submission Form

2. Summary of costs (based on one (1) year quotation)

3. Breakdown of price/per activity

4. Breakdown of remuneration per activity

5. Reimbursable per activity

6. Miscellaneous expenses

37

FINANCIAL PROPOSAL SUBMISSION FORM

_________________ [Date]

To: _____________________________

Ladies/Gentlemen:

We, the undersigned, offer to provide the consulting services for Provision of INTERNAL

AUDIT services in accordance with your Request for Proposal dated

____________________________________________and our Proposal.

Our attached Financial Proposal is for the sum of USD $ _________________

[Amount in words and figures] inclusive of the taxes

We remain yours sincerely,

______________________________ [Authorized Signature]

_______________________________ [Name and Title of Signatory]

_______________________________ [Name of Firm]

________________________________ [Address]

38

SUMMARY OF COSTS

Costs

Currency(ies) Amount(s)

Subtotal

USD

Taxes

USD

Total Amount of Financial

Proposal

USD

BREAKDOWN OF PRICE PER ACTIVITY

Activity NO.: Description:

Price Component

Amount(s)

000.00

Remuneration

000.00

Reimbursable

000.00

Miscellaneous Expenses

000.00

Subtotal

000.00

39

BREAKDOWN OF REMUNERATION PER ACTIVITY

Activity No.

Name:

Names Position Input (Staff

months, days or

hours as

appropriate.)

Remuneration

Rate

Amount

Regular staff

(i)

(ii)

(ii)

Consultants

Grand Total

40

MISCELLANEOUS EXPENSES

Activity No. Activity Name:

No. Description Unit Quantity Unit Price Total

Amount

1.Communication costs (telephone, telegram, telex)

2.Drafting, reproduction of reports

3.Equipment: computers etc.

Grand Total

41

SECTION VI - STANDARD CONTRACT FORM The contract form shall be completed by the procuring entity after the award of the contract and negotiation of the contract. It will be signed by both parties pursuant to the information to consultants’ clause 2.10.2

42

FORM OF AGREEMENT THIS AGREEMENT, made the _________________ day of ________ 20 ______ between ________________________________________________of [or whose registered office is situated at] __________________________________________ (hereinafter called “the Procuring entity”) of the one part AND ________________________________________________________of [or whose registered office is situated at] _________________________________________ (hereinafter called “the Contractor”) of the other part. WHEREAS THE Procuring entity is desirous that the Contractor executes ________________________________________________________________________ (name and identification number of Contract ) (hereinafter called “the Works”) located at______________________________[Place/location of the Works]and the Procuring entity has accepted the tender submitted by the Contractor for the execution and completion of such Works and the remedying of any defects therein for the Contract Price of USD ___________________________ [Amount in figures], United States Dollars _____________________________________________ [Amount in words]. NOW THIS AGREEMENT WITNESSETH as follows: 1. In this Agreement, words and expressions shall have the same meanings as are

respectively assigned to them in the Conditions of Contract hereinafter referred to. 2. The following documents shall be deemed to form and shall be read and construed

as part of this Agreement i.e.

(i) Letter of Acceptance

(ii) Form of Tender

(iii) Conditions of Contract Part I

(iv) Conditions of Contract Part II and Appendix to Conditions of Contract

(v) Specifications

(vi) Priced Bills of Quantities 3. In consideration of the payments to be made by the Procuring entity to the Contractor

as hereinafter mentioned, the Contractor hereby covenants with the Procuring entity to execute and complete the Works and remedy any defects therein in conformity in all respects with the provisions of the Contract.

4. The Procuring entity hereby covenants to pay the Contractor in consideration of the

execution and completion of the Works and the remedying of defects therein, the Contract Price or such other sum as may become payable under the provisions of the Contract at the times and in the manner prescribed by the Contract.

43

IN WITNESS whereof the parties thereto have caused this Agreement to be executed the day and year first before written. The common Seal of ______________________________________________________ Was hereunto affixed in the presence of _______________________________________ Signed Sealed, and Delivered by the said ______________________________________ Binding Signature of Procuring entity _________________________________________ Binding Signature of Contractor _____________________________________________ In the presence of (i) Name ____________________________________________ Address __________________________________________ Signature _________________________________________ (ii) Name ____________________________________________ Address __________________________________________ Signature _________________________________________

44

FORM OF TENDER SECURITY WHEREAS ……………………………………………….. (hereinafter called “the Tenderer”) has submitted his tender dated ………………………… for the construction of ………………………………………………………………………………………………………………………………………...……………………………………… (name of Contract) KNOW ALL PEOPLE by these presents that WE ……………………… having our registered office at ………………(hereinafter called “the Bank”), are bound unto ……………………………(hereinafter called “the Procuring entity”) in the sum of USD $.……………………… for which payment well and truly to be made to the said Procuring entity, the Bank binds itself, its successors and assigns by these presents sealed with the Common Seal of the said Bank this ……………. Day of ………………………...……20…… THE CONDITIONS of this obligation are: 1. If after tender opening the tenderer withdraws his tender during the period of tender

validity specified in the instructions to tenderers Or

2. If the tenderer, having been notified of the acceptance of his tender by the Procuring entity during the period of tender validity:

(a) fails or refuses to execute the Form of Agreement in accordance with the

Instructions to Tenderers, if required; or (b) fails or refuses to furnish the Performance Security, in accordance with the

Instructions to Tenderers; (c) Rejects a correction of an arithmetic error in the tender.

We undertake to pay to the Procuring entity up to the above amount upon receipt of his first written demand, without the Procuring entity having to substantiate his demand, provided that in his demand the Procuring entity will note that the amount claimed by him is due to him, owing to the occurrence of one or both of the two conditions, specifying the occurred condition or conditions.

This guarantee will remain in force up to and including thirty (30) days after the period of tender validity, and any demand in respect thereof should reach the Bank not later than the said date.

___________________ ______________________________ [date[ [signature of the Bank] __________________ ______________________________ [witness] [seal]

45

PERFORMANCE BANK GUARANTEE (UNCONDITIONAL) ___________(Date) To:_________________________ (Name of Procuring entity) __________________________ (Address of Procuring entity) Dear Sir, WHEREAS ______________________(hereinafter called “the Contractor”) has undertaken, in pursuance of Contract No. _____________ dated _________ to execute _______________ (hereinafter called “the Works”); AND WHEREAS it has been stipulated by you in the said Contract that the Contractor shall furnish you with a Bank Guarantee by a recognized bank for the sum specified therein as security for compliance with his obligations in accordance with the Contract; AND WHEREAS we have agreed to give the Contractor such a Bank Guarantee: NOW THEREFORE we hereby affirm that we are the Guarantor and responsible to you, on behalf of the Contractor, up to a total of Kshs. ________________ (amount of Guarantee in figures) United States Dollars__________________________________________ (amount of Guarantee in words), and we undertake to pay you, upon your first written demand and without cavil or argument, any sum or sums within the limits of United States Dollars _________________________ (amount of Guarantee in words) as aforesaid without your needing to prove or to show grounds or reasons for your demand for the sum specified therein. We hereby waive the necessity of your demanding the said debt from the Contractor before presenting us with the demand. We further agree that no change, addition or other modification of the terms of the Contract or of the Works to be performed thereunder or of any of the Contract documents which may be made between you and the Contractor shall in any way release us from any liability under this Guarantee, and we hereby waive notice of any change, addition, or modification. This guarantee shall be valid until the date of issue of the Certificate of Completion.

SIGNATURE AND SEAL OF THE GUARANTOR ___________________

Name of Bank _________________________________________________

Address ______________________________________________________

Date _________________________________________________________

46

DECLARATION FORM

Date To Procurement Committee, African Economic Research Consortium (AERC), P.O. Box 62882 – 00200 NAIROBI, KENYA The …………………………………………………………………. tenderer i.e. declare the following: a) Has not been debarred from participating in public procurement. b) Has not been involved in and will not be involved in corrupt and fraudulent

practices regarding public procurement. ………… ……………………… ………………………… Title Signature Date (To be signed by authorized representative and officially stamped)

47

LITIGATION AND ARBITRATION HISTORY Firms, including each of the partners of a joint venture, must provide information on any history of litigation or arbitration resulting from contracts executed in the last five years or currently under execution. A separate sheet should be used for each partner of a joint venture. Firms not involved in any litigation or arbitration proceedings must declare. Name of Firm or Partner of a joint venture ………………………………………………………………

Year

Award FOR or AGAINST Firm

Name of client, cause of litigation and matter in dispute

Disputed amount (current value, Kshs.)

I certify that the above information is correct. Name: ……………………..………………………… …………..……… ………………………………………… Title Signature Date

48

LETTER OF NOTIFICATION OF AWARD

Address of Procuring Entity _____________________ _____________________ To: RE: Tender No. Tender Name This is to notify that the contract/s stated below under the above mentioned tender have been awarded to you.

1. Please acknowledge receipt of this letter of notification signifying your acceptance. 2. The contract/contracts shall be signed by the parties within 30 days of the date of

this letter but not earlier than 14 days from the date of the letter.

3. You may contact the officer(s) whose particulars appear below on the subject matter of this letter of notification of award. (FULL PARTICULARS)

SIGNED FOR EXECUTIVE DIRECTOR