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The First MicroFinanceBank, Afghanistan (FMFB-A)

Request for Proposal

“Short term consultancy to deliver staff training on Basic Research Concepts and PPI®”

Date of Issue: March 5, 2016

Privacy Notice This document contains sensitive information owned by FMFB-A HO Plot no. 148, 4th Street Ansari Square, Shara-e-Naw, Kabul- Afghanistan. The information, in part or full or in any circumstances, should not be given to persons other than those involved in the project or who will become involved during the project life cycle. The prior written permission of Project Manager shall be needed to share full or partial information with the persons or organizations other than the legal / authorized recipients.

Table of Contents

1. Statement of Work .......................................................................................................................................................... 3

1.1 Purpose ................................................................................................................................................................... 3

2. General Information ....................................................................................................................................................... 3

2.1 Original RFP Document………………………………………………………………………………………………………………………………..……3

2.2 The Bank .................................................................................................................................................................. 3

2.3 Schedule of Events .................................................................................................................................................. 3

3. Scope of Work, Specifications and Requirements: ......................................................................................................... 4

3.1 Deliverables ............................................................................................................................................................. 4

4. Proposal Preparation Instructions .................................................................................................................................. 5

4.1 The Consultant’s Understanding of the RFP ........................................................................................................... 5

4.2 Good Faith Statement ............................................................................................................................................. 5

4.3 Communication ....................................................................................................................................................... 5

4.4 Proposal Submission ............................................................................................................................................... 6

4.5 Price Quotations ..................................................................................................................................................... 6

4.6 Method of Award .................................................................................................................................................... 7

4.7 Selection and Notification ....................................................................................................................................... 7

Appendix 1 .............................................................................................................................................................................. 8

1. Statement of Work

1.1 Purpose

The purpose of this Request for Proposal (RFP) is to invite prospective consulting firms/individuals (“Consultant”) to submit a proposal to:

1. Deliver staff training on basic research concepts, research methods, research methodology, and data analysis that will help develop an appreciation for the importance of conducting social research in keeping with an approved plan.

2. Build an understanding of Grameen Foundation's 'Progress out of Poverty Index' (PPI) tool, its features, interpretation and potential uses of PPI data.

The classroom training is intended for 'Research and Product Development' (RPD) staff within the Marketing Department at The First MicroFinanceBank - Afghanistan ("Bank") who are directly involved in in-house research activities and social performance monitoring (SPM) but who have received little to no formal training in this area.

2. General Information

2.1 The Bank

The First MicroFinance Bank, Afghanistan has been operating in Afghanistan since 2004 with the vision of contributing to poverty alleviation and economic development through provision of sustainable financial services, primarily targeting the micro & small businesses and households. FMFB shareholders comprise Aga Khan Agency for Microfinance (AKAM), Kreditanstalt für Wiederaufbau (KfW), International Finance Corporation (IFC) and Aga Khan Foundation-USA (AKF USA). Currently, FMFB-A is the market leader in microfinance contributing over 50% to the industry outstanding portfolio. As of December 2015, FMFB-A’s Gross Loan Portfolio stood at US$59 million with over 56,000 active borrowers. FMFB-A has a network of 46 branches and outlets covering 14 provinces. The bank offers a range of services including savings, loans (microfinance and SME) and commercial banking services. The agriculture/livestock and incremental housing loans are coupled with free advisory services.

The Bank regularly conducts client/non-client survey research as part of its ongoing exploration of attitudes and behaviors towards financial services in Afghanistan as well as to quantify, measure, and track customer satisfaction. An important aspect of the Bank's mission is to track changes in the clients' quality of life (QoL) as a result of its product and service usage. A clear and accurate sense of what needs to be measured and how to collect, analyze, and use the data as a strategic business driver is essential for new product development and/or modifications in existing offerings.

2.2 Schedule of Events

The following is a tentative schedule that will apply to this RFP, but may change in accordance with the Bank's needs or unforeseen circumstances. Changes will be communicated by e-mail to all invited bidders.

Issuance of RFP 5 /03/ 2016 Technical Questions/Inquiries due 15 / 03 / 2016 Deadline for Submitting Proposals 20 / 03 / 2016, 1600 hours GMT Complete Initial Evaluation 25 / 03 / 2016 Signature of Contract 1st Week of April

Start of Work 2nd Week of April or mutually agreed date The consultancy duration shall not exceed 5 days from the mutually agreed start date . However, FMFB-A reserves the right to change the schedule, if required.

3. Scope of Work, Specifications and Requirements:

The selected Consultant will need to undertake below tasks and responsibilities: The Consultant will impart classroom training on fundamental research concepts that serve as a basis for conducting responsible and sound research. The training program will also cover topics on how research is designed and conducted as well as how actions in the conduct of research may influence the integrity of the research project. As a result of this training, the RPD staff may be better able to understand research methods/methodology and carry out their duties/responsibilities in a manner that preserves the integrity of the research design. Additionally, the Consultant will give the audience a clear understanding of the PPI® tool, its uses, correlation with poverty likelihood and PPI data analysis.

The specific topics to be covered during the program must include:

1. Definition(s) of Research and Types of Research

2. Difference between Research Methods and Research Methodology

3. Research Process

4. Research Design and its types

5. Characteristics of Quantitative and Qualitative Research

6. Survey /Questionnaire design

7. Methods of data collection

8. Sample Design and Types

9. Measurement and Scaling techniques

10. Methods of Data Collection

11. Processing and Analysis of Data

12. Interpretation and Report Writing

13. Progress out of Poverty Index (PPI) overview

14. PPI Indicators and Lookup Table

15. Matching PPI scores to Poverty Likelihoods

At the end of the session, trainees will be able to define and/or describe:

Key research terminology

Research practices with the potential to impair or enhance research integrity,

Important concepts related to research data

PPI and analysis of PPI data

3.1 Deliverables

The key deliverables must include: 1. 5-day training workshop to be conducted in Kabul, Afghanistan 2. User Manual including key reference materials, handouts of information discussed in the training sessions, relevant supporting

documents and case studies (if any)

4. Proposal Preparation Instructions

4.1 The Consultant’s Understanding of the RFP

In response to this RFP, the Consultant accepts the responsibility to fully understand the RFP in its entirety, and in detail, including making any inquiries to FMFB-A as necessary to gain such understanding. However, FMFB-A will ensure that there is transparent communication of responses to questions in regard to the RFP to all bidders. FMFB-A reserves the right to disqualify any Consultant who demonstrates less than such understanding. Further, FMFB-A reserves the right to determine, at its sole discretion, whether the vendor has demonstrated such understanding. That right extends to cancellation of award prior to contract signing, if an award has been made. Such disqualification and/or cancellation shall be at no fault, cost, or liability whatsoever to FMFB-A.

4.2 Good Faith Statement

All information provided by FMFB-A in this RFP is offered in good faith. Individual items are subject to change at any time. FMFB-A makes no certification that any item is without error. FMFB-A is not responsible or liable for any use of the information or for any claims asserted there from.

4.3 Communication

Verbal communication shall not be effective unless formally confirmed in writing by the Bank's Project Manager. In no case shall verbal communication govern over written communication. 4.3.1 Bidders’ Inquiries. Applicable terms and conditions herein shall govern communications and inquiries between FMFB-A and the Consultant as they relate to this RFP. Inquiries, questions, and requests for clarification related to this RFP are to be directed in writing to:

The First MicroFinance Bank (FMFB) Plot No. 148 4th Street of Ansari Square Opposite Holland Embassy, Shar-e-Naw Kabul- Afghanistan Attention: Homayoun Nikseyar, Project Manager Fareed Ashraf Chaudhry, Head of Marketing, Research, and Product Development E-mail: Homayoun.Niksear@fmfb.com.af Fareed.Ashraf@fmfb.com.af

4.3.2 Informal communications shall include, but are not limited to:

Questions/inquiries about technical interpretations concerning this RFP must be submitted in writing and be received prior to 15

th March 2016;

Errors/omissions or enhancements: The Consultant shall bring to FMFB-A any discrepancies, errors, or omissions that may exist within this RFP. With respect to this RFP, the Consultant shall recommend to FMFB-A any enhancements, which might be in FMFB-A’s best interests. These must be submitted in writing and be received prior to 15

th March 2016;

4.3.3 Response to Inquiries. FMFB-A will ensure a written response to each question or request for clarification within three (2) business days.

4.3.4 Addenda. FMFB-A will make a good-faith effort to provide a written response to each question or request for clarification that requires addenda within three (3) business days.

4.4 Proposal Submission

The proposal for services and the price quotations must be submitted through email. At least one original of each must be submitted to the Bank at the address given above. Proposals are to be received on or prior to 1600 hours GMT on 20

th March 2016 ("the

Deadline"). After this date, no amendments or additions may be made to the proposals. Any attempt to do so can result in exclusion from the remainder of the selection process. The proposals for services will be opened immediately after the expiry of the Deadline. The language of the proposals and price quotations must be English. The proposal should include:

Signed Declaration of Undertaking set out in Appendix 1;

A critical analysis of the terms of reference;

Description of proposed methodologies, with a rationale for each of the proposed methodologies, and work processes and a list of deliverables

Tentative work plan/timelines

The organization and logistics requirements;

Background bio on the submitting individual, (2) past performance references for similar work (including name and contact information)

Details of envisaged back-up services from home office, if any;

Statement of other services to be provided by FMFB-A.

4.5 Price Quotations

All Consultants must fill out the attached cost breakdown template for the delivery of the work as described in this RFP. The Consultant should submit their price quotation spreadsheets in MS Excel format using the template provided; submissions that do not use the required template will not be accepted. The spreadsheets should use formulas to calculate totals and other figures. FMFB-A would like to see how the Consultants calculate their price quotations therefore please do not enter totals and other derived figures manually. In addition to numerical spread sheets, all price quotations should include detailed written notes (written in English) that explain assumptions and the cost realism of the items in the price quotation. The notes will assist FMFB-A in understanding how the Consultant established the budget. Submissions without detailed written notes will not be accepted. The price quotation should also include:

o All costs in US dollars; o Fees - shown separately o Foreign per diem allowance and accommodation costs in place of service along with reference for per diem and

accommodation rates as relevant in the budget notes; o Transport costs between the home country and place of service; o Transport costs in the place of service; o Office costs in the place of service; o Any acquisitions of needed items; o Other costs - reasons must be given for other costs.

The contract will be on a fixed-price, lump sum basis. Allowance must be made for local withholding tax of 7%, which will be deducted at source on all payments under the contract. An advance payment of 30% of the contract value will be paid within 10 days from the signing of the contract, the balance of 70% will be paid within 10 days of the submission of the final report. However, this section is negotiable. If required, FMFB-A will support the Consultant in obtaining all the necessary visas and working permits.

4.6 Method of Award

The evaluation of each response to this RFP will be based on its demonstrated competence, compliance, format. The purpose of this RFP is to identify those suppliers that have the interest, capability, and financial strength to perform a valuation of FMFB-A, as per the Scope of Work. Ideally, the candidate should have good research background; data analysis experience, be proactive, rigorous with strong analytic capacity and a robust practical hands-on approach, and be able to hit the ground running in the Afghan environment or Afghanistan neighborhood countries. The Evaluation Team at FMFB-A will score each Bidder’s Proposal using an objective process. The Total Score of each Bidder’s Proposal includes three broad components: (in Descending Priority Order)

Term Definition

Qualification/Demonstrated Knowledge

The extent to which the Bidder demonstrates present capabilities to perform the services required

Thoroughness of Approach or Plan

The level of detail and completeness the Bidder provides in response to specific requirements

Pricing This includes the total cost to the Bank for engaging the Consultant

4.7 Selection and Notification

Consultants determined by FMFB-A to possess the capacity to compete for this contract will be selected to move into the negotiation phase of this process. Written notification will be sent to these bidders via mail. Those bidders not selected for the negotiation phase will not be notified. An exchange of the personnel or key personnel who are firmly committed to the project after the bid has been submitted cannot be made without the approval of FMFB-A. An exchange of personnel can result in the bid being reassessed.

Appendix 1

Declaration of Undertaking I underscore the importance of a free, fair and competitive procurement process that precludes abusive practices. In this respect I have neither offered nor granted directly or indirectly any inadmissible advantages to any public servant or other person nor accepted such advantages in connection with our bid, nor will I offer or grant or accept any such incentives or conditions in the present procurement process or, in the event that I am awarded the contract, in the subsequent execution of the contract. I also declare that no conflict of interest exists in the meaning of the kind described in the pertinent Guidelines. I also underscore the importance of adhering to minimum social standards ("Core Labour Standards") in the implementation of the project. I undertake to comply with the Core Labour Standards ratified by the country of Afghanistan. I will respect the obligations, will fulfill the declaration of undertaking, and will obey the laws of the country of Afghanistan. .............................. ................... ....................................................... (Place) (Date) (Name of Consultant) ....................................................... (Signature(s))