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									                                     Annex I

                     INSTRUCTIONS TO OFFERORS

A.     Introduction


1. General

     Purpose of RFP: To supply, install, implement and maintain an online money
     transfer solution for Somali money transmitters.

2. Cost of proposal

     The Offeror shall bear all costs associated with the preparation and submission of the
     Proposal. UNDP Somalia and the Somali Money Transmitters Association (SOMTA), the
     Purchaser, will in no case be responsible or liable for those costs, regardless of the
     conduct or outcome of the solicitation.


B.     Solicitation Documents

3. Contents of solicitation documents

     Proposals must offer services for the total requirement. Proposals offering only part of the
     requirement will be rejected. The Offeror is expected to examine all corresponding
     instructions, forms, terms and specifications contained in the Solicitation Documents.
     Failure to comply with these documents will be at the Offeror‟s risk and may affect the
     evaluation of the Proposal.

4. Clarification of solicitation documents

     A prospective Offeror requiring any clarification of the Solicitation Documents may
     notify the Purchaser in writing at the organisation‟s mailing address or fax number
     indicated in the RFP. The Purchaser will respond in writing to any request for
     clarification of the Solicitation Documents that it receives earlier than one week prior to
     the deadline for the submission of Proposals. Written copies of the organisation‟s
     response (including an explanation of the query but without identifying the source of
     inquiry) will be sent to all prospective Offerors that have received the Solicitation
     Documents.

5. Amendments of solicitation documents

     At any time prior to the deadline for the submission of Proposals, the Purchaser may, for
     any reason, whether at its own initiative or in response to a clarification requested by a
     prospective Offeror, modify the Solicitation Documents by amendment.



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     All prospective Offerors that have received the Solicitation Documents will be notified in
     writing of all amendments to the Solicitation Documents.

     In order to afford prospective Offerors reasonable time in which to take the amendments
     into account in preparing their offers, the Purchaser may, at its discretion, extend the
     deadline for the submission of Proposals.


C.     Preparation of Proposals

6. Language of the proposal

     The Proposals prepared by the Offeror and all correspondence and documents relating to
     the Proposal exchanged by the Offeror and the Purchaser shall be written in English. Any
     printed literature furnished by the Offeror may be written in another language so long as
     it is accompanied by an English translation of its pertinent passages in which case, for
     purposes of interpretation of the Proposal, the English translation shall govern.

7. Documents comprising the proposal

     The Proposal shall comprise the following components:

     Technical Proposal Contents:

     (a) Proposal submission form;

     (b) Technical Proposal, including documentation to demonstrate that the Offeror meets
         all requirements;

     (c) Copies of certifications wherever the vendor claims that their products have been
         certified by leading regulatory agencies.

     Financial Proposal Contents:

     (a) Financial Proposal, including a Price Schedule completed in accordance with clauses
         8 and 9.


8. Proposal form

     The Offeror shall structure the Technical Proposal and Financial Proposal as described in
     Section 2 of the Terms of Reference (Annex VI).


     The Technical Proposal should not contain any pricing information whatsoever. Pricing
     information shall only appear in the appropriate Price Schedules forming the Financial
     Proposal.




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   It is mandatory that the Offeror‟s Proposal numbering system corresponds with the
   numbering system used in the body of the Terms of Reference (Annex VI). All references
   to descriptive material and brochures should be included in the appropriate response
   paragraph, though the material and documents themselves may be provided as annexes to
   the Proposal.

   Information which the Offeror considers proprietary, if any, should be clearly marked
   “proprietary” next to the relevant part of the text and it will then be treated as such.

9. Proposal prices

   The format of the Financial Proposal should be as outlined in Section 2 of the Terms of
   Reference (Annex VI). The Offeror shall indicate on an appropriate Price Schedule, an
   example of which is contained in these Solicitation Documents, the prices of the solution
   it proposes to supply under the contract.

10. Proposal currencies

   All prices shall be quoted in US dollars or any convertible currency.

11. Period of validity of proposals

   Proposals shall remain valid for sixty (60) days after the date of Proposal submission
   prescribed by the Purchaser, pursuant to the deadline clause. A Proposal valid for a
   shorter period may be rejected by the Purchaser on the grounds that it is non-responsive.

   In exceptional circumstances, the Purchaser may solicit the Offeror‟s consent to an
   extension of the period of validity. The request and the responses thereto shall be made in
   writing. An Offeror granting the request will not be required nor permitted to modify its
   Proposal.

12. Format and signing of proposals

   The Offeror shall prepare three copies of the Proposal, clearly marking each “Original
   Proposal” and “Copy of Proposal” as appropriate. In the event of any discrepancy
   between them, the original shall govern.

   The three copies of the Proposal shall be typed or written in indelible ink and shall be
   signed by the Offeror or a person or persons duly authorised to bind the Offeror to the
   contract. The latter authorisation shall be indicated by written power-of-attorney
   accompanying the Proposal.

   A Proposal shall contain no interlineations, erasures, or overwriting except, as necessary
   to correct errors made by the Offeror, in which case such corrections shall be initialled by
   the person or persons signing the Proposal.

13. Payment

   It is proposed that a "progress payment" schedule be negotiated with the successful
   vendor. Planning of payments will be based on the number of sites that will commit to the


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     implementation of the proposed system in the initial phases. It is anticipated that the
     payments will be made over a 3 to 6 month period. The number of Somali Money
     Transmitters (SMTs) that will participate in the initial implementation phases will be
     finalized during the contract negotiations. The Purchaser shall effect payments to the
     Contractor after acceptance of the invoices submitted by the vendor, upon achievement of
     the corresponding milestones.


D.     Submission of Proposals

14. Sealing and marking of proposals

     The Offeror shall seal the Proposal in one outer and two inner envelopes, as detailed
     below.

     (a) The outer envelope shall be:

           addressed to –

     David Allen, Deputy Resident Representative for Operations,
     United Nations Development Programme – Somalia,
     Springtree Properties, Lower Kabete Road,
     P.O. Box 28832, 00200, Nairobi
     Kenya
     Tel: +254-20-4255000
     Facsimile: +254-20-4255101

            and,

           marked with –

        “RFP: Provision of money transfer solution to Somali Money Transmitters”

     (b) Both inner envelopes shall indicate the name and address of the Offeror. The first
         inner envelope shall contain the information specified in Clause 8 (Proposal form)
         above i.e. the Technical Proposal, with the copies duly marked “Original” and
         “Copy”. The second inner envelope shall include the price schedule duly identified as
         such i.e. the Financial Proposal.

        Note: if the inner envelopes are not sealed and marked as per the instructions in this
        clause, the Purchaser will not assume responsibility for the Proposal‟s misplacement
        or premature opening.

15. Deadline for submission of proposals

     Proposals must be received by the Purchaser at the address specified under clause Sealing
     and marking of Proposals no later than 12:30 PM on 10 November 2006. Please note
     that the time mentioned here is Kenyan time.




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     The Purchaser may, at its own discretion, extend this deadline for the submission of
     Proposals by amending the solicitation documents in accordance with clause Amendments
     of Solicitation Documents, in which case all rights and obligations of the Purchaser and
     Offerors previously subject to the deadline will thereafter be subject to the deadline as
     extended.

16. Late Proposals

     Any Proposal received by the Purchaser after the deadline for submission of proposals,
     pursuant to clause Deadline for the submission of proposals, will be rejected.

17. Modification and withdrawal of Proposals

     The Offeror may withdraw its Proposal after the Proposal‟s submission, provided that
     written notice of the withdrawal is received by the Purchaser prior to the deadline
     prescribed for submission of Proposals.

     The Offeror‟s withdrawal notice shall be prepared, sealed, marked, and dispatched in
     accordance with the provisions of clause Deadline for Submission of Proposals. The
     withdrawal notice may also be sent by telex or fax but followed by a signed confirmation
     copy.

     No Proposal may be modified subsequent to the deadline for submission of proposals.

     No Proposal may be withdrawn in the interval between the deadline for submission of
     proposals and the expiration of the period of proposal validity specified by the Offeror on
     the Proposal Submission Form.


E.     Opening and Evaluation of Proposals

18. Opening of proposals

     The Purchaser will open the Proposals in the presence of a Committee formed by
     SOMTA and UNDP Somalia.

19. Clarification of proposals

     To assist in the examination, evaluation and comparison of Proposals, the Purchaser may,
     at its discretion, ask the Offeror for clarification of its Proposal. The request for
     clarification and the response shall be in writing and no change in price or substance of
     the Proposal shall be sought, offered or permitted.

20. Preliminary examination

     The Purchaser will examine the Proposals to determine whether they are complete,
     whether any computational errors have been made, whether the documents have been
     properly signed, and whether the Proposals are generally in order, and in the format
     prescribed.


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   Arithmetical errors will be rectified on the following basis: If there is a discrepancy
   between the unit price and the total price that is obtained by multiplying the unit price and
   quantity, the unit price shall prevail and the total price shall be corrected. If the Offeror
   does not accept the correction of errors, its Proposal will be rejected. If there is a
   discrepancy between words and figures the amount in words will prevail.

   Prior to the detailed evaluation, the Purchaser will determine the substantial
   responsiveness of each Proposal to the Request for Proposals (RFP). For purposes of
   these Clauses, a substantially responsive Proposal is one which conforms to all the terms
   and conditions of the RFP without material deviations. The Purchaser‟s determination of
   a Proposal‟s responsiveness is based on the contents of the Proposal itself without
   recourse to extrinsic evidence.

   A Proposal determined as not substantially responsive will be rejected by the Purchaser
   and may not subsequently be made responsive by the Offeror by correction of the non-
   conformity.

21. Evaluation and comparison of proposals

   Proposals will be evaluated by members of a Steering Committee comprised of
   representatives from SOMTA and UNDP Somalia. Responses will be evaluated based on
   point awards derived from the vendor response weighted by the relative importance of the
   feature or question. The evaluation categories in the Technical Proposal are functionality,
   systems, and vendor viability. The overall evaluation of the responses will take into
   account the costs submitted in the Price Proposal, although cost carries a lower weight
   than the technical components.

   The following evaluation process will be used:

      A two-stage procedure is utilised in evaluating the proposals, with evaluation of the
       Technical Proposals will be evaluated before any price proposals are opened and
       compared. The Financial proposal of the Proposals will be opened only for
       submissions that pass the minimum technical score of 75% out of 700 points (i.e.
       525) in the evaluation of the Technical proposals.
      Technical Proposals will be evaluated on the basis of their responsiveness to the
       Terms of Reference (Annex VI).
      In the second stage, the price proposal of all contractors that have received at least
       75% score in the technical evaluation will be compared. Financial Proposals will be
       evaluated based on a merit point system. The Technical Proposal will be weighted at
       70% and the Financial Proposal at 30%.
      The contract will be awarded to the Contractor with the highest combined score in
       both the Technical and Financial Proposals, after the full evaluation process is
       completed. Contract awards are subject to satisfactory completion of network testing
       of the test site provided by the vendor and satisfactory outcome of User Acceptance
       Testing by SMTs.




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 Technical Evaluation Criteria


 Summary of Technical Proposal             Score       Points          Company / Other Entity
 Evaluation Components                     Weight     Obtainable     A    B     C      D      E
  1. Vendor Viability                       20%          140
  2. System Functionality                   60%          420
      &Usability
  3. Systems Support &                      20%           140
      Implementation Management

       Total                                              700



 Evaluation forms for each of the three components of the technical proposals are outlined
 below. The obtainable number of points specified for each evaluation criterion indicates the
 relative significance or weight of the item in the overall evaluation process.

Technical Proposal Evaluation                          Points        Company / Other Entity
Component 1                                          obtainable    A    B     C      D      E

Vendor Viability


1.1   Reputation of Organisation and Staff              25
      (Competence / Reliability) and overall
      ability to provide solution
1.2   Litigation and Arbitration history                10

1.3   General Organisational Capability which is        25
      likely to affect implementation (i.e., loose
      consortium, holding company or one firm,
      size of the firm / organisation, strength of
      project management support)
1.4   Financial standing                                10
1.5   Quality assurance procedures, warranty            20

1.6   Quality of Customer Portfolio and Site            50
      References:
      - Current and potential customer base
      - References provided globally
      - References provided in Middle East /
         East Africa
Total – Component 1                                     140




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Technical Proposal Evaluation                       Points          Company / Other Entity
Component 2                                        Obtainable   A      B     C      D      E

System Functionality & Usability


2.1   To what degree does the product offered         50
      conform to overall requirements (state-of-
      the-art, flexible & adaptable)
2.2 Have the important/mandatory aspects of           150
      the specifications been addressed in
      sufficient detail?
2.3 Have the specific functional requirements         75
      been addressed?
2.4 Are the hardware requirements adequately          75
      addressed?
2.5 Are the alternative solution architectures        30
      addressed?
2.6 Does the solution meet the current and            40
      future needs of Somali Money
      Transmitters?
Total – Component 2                                   420



Technical Proposal Evaluation                       Points          Company / Other Entity
Component 3                                        Obtainable   A      B     C      D      E

Systems Support and Implementation Management



3.1   Systems Support : Software                      70
      license updates; fixes and
      security alerts; disaster
      recovery; legal and regulatory
      updates

3.2    Implementation management :                    70
       data conversion, training,
       documentation
Total – Component 3                                   140




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Financial Evaluation Criteria


Price Proposal Evaluation Form             Score        Points           Company / Other Entity
                                           Weight      Obtainable      A    B     C      D      E

1.     Money transfer solution costs        50%            150

2.     Data Service Provider costs          30%             90

3.     Qualitative (conditions)             20%             60

       Total                                               300




F.     Award of Contract

22. Award criteria, award of contract

     The Purchaser reserves the right to accept or reject any Proposal, and to annul the
     solicitation process and reject all Proposals at any time prior to the award of a contract,
     without thereby incurring any liability or obligation to defend this decision to the affected
     Offeror or Offerors.

     Prior to the expiration of the period of proposal validity, the procuring entity will award
     the contract to the qualified Offeror whose Proposal after being evaluated is the most
     responsive to the needs of SOMTA.

23. Purchaser‟s right to vary requirements at time of award

     The Purchaser reserves the right at the time of award of contract to vary the quantity of
     services and goods specified in the RFP, without any change in price or other terms and
     conditions.

24. Signing of the contract

     Within 30 days of receipt of the contract the successful Offeror shall sign and date the
     contract and return it to the Purchaser.

25. Performance security

     Within 30 days of the receipt of the Contract from the Purchaser, the successful Offeror
     shall provide the performance security on the Performance Security Form (Annex III)
     provided in the Solicitation Documents and in accordance with the Special Conditions of
     Contract.


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Failure of the successful Offeror to comply with the requirement of Clause 24 above, or
the present Clause 25, shall constitute sufficient grounds for the annulment of the award
and forfeiture of the Proposal security if any, in which event the Purchaser may make the
award to the next best evaluated Offeror or call for new Proposals.




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                                      Annex II

                 GENERAL CONDITIONS OF CONTRACT




1. LEGAL STATUS

  The Contractor shall be considered as having the legal status of an independent contractor
  vis-à-vis SOMTA and/or its members (i.e. the Somali Money Transmitters). The
  Contractor's personnel and sub-contractors shall not be considered in any respect as being
  the employees or agents of SOMTA or the Somali Money Transmitters or UNDP.

2. SOURCE OF INSTRUCTIONS

  The Contractor shall neither seek nor accept instructions from any authority external to
  SOMTA or UNDP in connection with the performance of its services under this Contract.
  The Contractor shall refrain from any action which may adversely affect the Purchaser
  and shall fulfil its commitments with the fullest regard to the interests of SOMTA and
  UNDP.

3. CONTRACTOR'S RESPONSIBILITY FOR EMPLOYEES

  The Contractor shall be responsible for the professional and technical competence of its
  employees and will select, for work under this Contract, reliable individuals who will
  perform effectively in the implementation of this Contract, respect the local customs, and
  conform to a high standard of moral and ethical conduct.

4. ASSIGNMENT

  The Contractor shall not assign, transfer, pledge or make other disposition of this
  Contract or any part thereof, or any of the Contractor's rights, claims or obligations under
  this Contract, except with the prior written consent of SOMTA.

5. SUB-CONTRACTING

  In the event the Contractor requires the services of sub-contractors, the Contractor shall
  obtain the prior written approval and clearance of SOMTA for all sub-contractors. The
  approval of SOMTA of a sub-contractor shall not relieve the Contractor of any of its
  obligations under this Contract. The terms of any sub-contract shall be subject to and
  conform to the provisions of this Contract.




6. OFFICIALS NOT TO BENEFIT



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   The Contractor warrants that no official of SOMTA, UNDP or the United Nations has
   received or will be offered by the Contractor any direct or indirect benefit arising from
   this Contract or the award thereof. The Contractor agrees that breach of this provision is a
   breach of an essential term of this Contract.

7. INDEMNIFICATION

   The Contractor shall indemnify, hold and save harmless, and defend, at its own expense,
   UNDP and SOMTA, its officials, agents, servants and employees from and against all
   suits, claims, demands, and liability of any nature or kind, including their costs and
   expenses, arising out of acts or omissions of the Contractor, or the Contractor's
   employees, officers, agents or sub-contractors, in the performance of this Contract. This
   provision shall extend, inter alia, to claims and liability in the nature of workmen's
   compensation, products liability and liability arising out of the use of patented inventions
   or devices, copyrighted material or other intellectual property by the Contractor, its
   employees, officers, agents, servants or sub-contractors. The obligations under this
   Article do not lapse upon termination of this Contract.

8. INSURANCE AND LIABILITIES TO THIRD PARTIES

8.1 The Contractor shall provide and thereafter maintain insurance against all risks in
    respect of its property and any equipment used for the execution of this Contract.
8.2 The Contractor shall provide and thereafter maintain all appropriate workmen's
    compensation insurance, or its equivalent, with respect to its employees to cover claims
    for personal injury or death in connection with this Contract.
8.3 The Contractor shall also provide and thereafter maintain liability insurance in an
    adequate amount to cover third party claims for death or bodily injury, or loss of or
    damage to property, arising from or in connection with the provision of services under
    this Contract or the operation of any vehicles, boats, airplanes or other equipment owned
    or leased by the Contractor or its agents, servants, employees or sub-contractors
    performing work or services in connection with this Contract.
8.4 Except for the workmen's compensation insurance, the insurance policies under this
    Article shall:

   (i) Name UNDP as additional insured;

   (ii) Include a waiver of subrogation of the Contractor's rights to the insurance carrier
        against UNDP;

   (iii)Provide that UNDP shall receive thirty (30) days written notice from the insurers prior
        to any cancellation or change of coverage.

8.5 The Contractor shall, upon request, provide UNDP with satisfactory evidence of the
    insurance required under this Article.




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9. ENCUMBRANCES/LIENS

   The Contractor shall not cause or permit any lien, attachment or other encumbrance by
   any person to be placed on file or to remain on file in any public office or on file with
   UNDP against any monies due or to become due for any work done or materials
   furnished under this Contract, or by reason of any other claim or demand against the
   Contractor.

10. TITLE TO EQUIPMENT

   Title to any equipment and supplies that may be furnished by UNDP shall rest with
   UNDP and any such equipment shall be returned to UNDP at the conclusion of this
   Contract or when no longer needed by the Contractor. Such equipment, when returned to
   UNDP, shall be in the same condition as when delivered to the Contractor, subject to
   normal wear and tear. The Contractor shall be liable to compensate UNDP for equipment
   determined to be damaged or degraded beyond normal wear and tear.

11. COPYRIGHT, PATENTS AND OTHER PROPRIETARY RIGHTS

   SOMTA shall be entitled to all intellectual property and other proprietary rights including
   but not limited to patents, copyrights, and trademarks, with regard to products, or
   documents and other materials which bear a direct relation to or are produced or prepared
   or collected in consequence of or in the course of the execution of this Contract. At the
   SOMTA‟s request, the Contractor shall take all necessary steps, execute all necessary
   documents and generally assist in securing such proprietary rights and transferring them
   to SOMTA in compliance with the requirements of the applicable law.

12. USE OF NAME, EMBLEM OR OFFICIAL SEAL OF UNDP OR THE UNITED
NATIONS

   The Contractor shall not advertise or otherwise make public the fact that it is a Contractor
   with UNDP, nor shall the Contractor, in any manner whatsoever use the name, emblem or
   official seal of UNDP or the United Nations, or any abbreviation of the name of UNDP or
   the United Nations in connection with its business or otherwise.

13. CONFIDENTIAL NATURE OF DOCUMENTS AND INFORMATION

13.1 All maps, drawings, photographs, mosaics, plans, reports, recommendations, estimates,
     documents and all other data compiled by or received by the Contractor under this
     Contract shall be the property of SOMTA, shall be treated as confidential and shall be
     delivered only to SOMTA authorized officials on completion of work under this
     Contract.
13.2 The Contractor may not communicate at any time to any other person, Government or
     authority external to SOMTA and UNDP, any information known to it by reason of its
     association with SOMTA and UNDP which has not been made public except with the
     authorization of SOMTA and UNDP; nor shall the Contractor at any time use such
     information to private advantage. These obligations do not lapse upon termination of
     this Contract.




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14. FORCE MAJEURE; OTHER CHANGES IN CONDITIONS

14.1 Force majeure, as used in this Article, means acts of God, war (whether declared or not),
     invasion, revolution, insurrection, or other acts of a similar nature or force which are
     beyond the control of the Parties.
14.2 In the event of and as soon as possible after the occurrence of any cause constituting
     force majeure, the Contractor shall give notice and full particulars in writing to
     SOMTA, of such occurrence or change if the Contractor is thereby rendered unable,
     wholly or in part, to perform its obligations and meet its responsibilities under this
     Contract. The Contractor shall also notify SOMTA of any other changes in conditions or
     the occurrence of any event which interferes or threatens to interfere with its
     performance of this Contract. The notice shall include steps proposed by the Contractor
     to be taken including any reasonable alternative means for performance that is not
     prevented by force majeure. On receipt of the notice required under this Article,
     SOMTA shall take such action as, in its sole discretion, it considers to be appropriate or
     necessary in the circumstances, including the granting to the Contractor of a reasonable
     extension of time in which to perform its obligations under this Contract.
14.3 If the Contractor is rendered permanently unable, wholly, or in part, by reason of force
     majeure to perform its obligations and meet its responsibilities under this Contract,
     SOMTA shall have the right to suspend or terminate this Contract on the same terms
     and conditions as are provided for in Article 15, "Termination", except that the period of
     notice shall be seven (7) days instead of thirty (30) days.

15. TERMINATION

15.1 Either party may terminate this Contract for cause, in whole or in part, upon thirty days
     notice, in writing, to the other party. The initiation of arbitral proceedings in accordance
     with Article 16 "Settlement of Disputes" below shall not be deemed a termination of this
     Contract.
15.2 SOMTA reserves the right to terminate without cause this Contract at any time upon 15
     days prior written notice to the Contractor, in which case SOMTA shall reimburse the
     Contractor for all reasonable costs incurred by the Contractor prior to receipt of the
     notice of termination.
15.3 In the event of any termination by SOMTA under this Article, no payment shall be due
     from SOMTA to the Contractor except for work and services satisfactorily performed
     in conformity with the express terms of this Contract. The Contractor shall take
     immediate steps to terminate the work and services in a prompt and orderly manner and
     to minimize losses and further expenditures.
15.4 Should the Contractor be adjudged bankrupt, or be liquidated or become insolvent, or
     should the Contractor make an assignment for the benefit of its creditors, or should a
     Receiver be appointed on account of the insolvency of the Contractor, SOMTA may,
     without prejudice to any other right or remedy it may have, terminate this Contract
     forthwith. The Contractor shall immediately inform SOMTA of the occurrence of any
     of the above events.




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16. SETTLEMENT OF DISPUTES

  16.1. Amicable Settlement

  The Parties shall use their best efforts to settle amicably any dispute, controversy or claim
  arising out of, or relating to this Contract or the breach, termination or invalidity thereof.
  Where the parties wish to seek such an amicable settlement through conciliation, the
  conciliation shall take place in accordance with the UNCITRAL Conciliation Rules then
  obtaining, or according to such other procedure as may be agreed between the parties.

  16.2. Arbitration

  Unless, any such dispute, controversy or claim between the Parties arising out of or
  relating to this Contract or the breach, termination or invalidity thereof is settled amicably
  under the preceding paragraph of this Article within sixty (60) days after receipt by one
  Party of the other Party's request for such amicable settlement, such dispute, controversy
  or claim shall be referred by either Party to arbitration in accordance with the
  UNCITRAL Arbitration Rules then obtaining, including its provisions on applicable law.
  The arbitral tribunal shall have no authority to award punitive damages. The Parties shall
  be bound by any arbitration award rendered as a result of such arbitration as the final
  adjudication of any such controversy, claim or dispute.

17. OBSERVANCE OF THE LAW

  The Contractor shall comply with all laws, ordinances, rules, and regulations bearing
  upon the performance of its obligations under the terms of this Contract.

18. AUTHORITY TO MODIFY

  No modification or change in this Contract, no waiver of any of its provisions or any
  additional contractual relationship of any kind with the Contractor shall be valid and
  enforceable against SOMTA unless provided by an amendment to this Contract signed by
  the authorized official of SOMTA.




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                                   Annex III

                    PROPOSAL SUBMISSION FORM


To:    Somali Money Transmitters Association
Dear Sir / Madam,

Having examined the Solicitation Documents, the receipt of which is hereby duly
acknowledged, we, the undersigned, offer to provide the money transfer solution
(specify product offered) for Somali Money Transmitters for the sum as may be
ascertained in accordance with the Price Schedule attached herewith and made part of
this Proposal.

We undertake, if our Proposal is accepted, to commence and complete delivery of all
services specified in the contract within the time frame stipulated.

We agree to abide by this Proposal for a period of 60 days from the date fixed for
opening of Proposals in the Invitation for Proposal, and it shall remain binding upon
us and may be accepted at any time before the expiration of that period.

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


Dated this day /month                                   of year _____________



Signature



                                 (In the capacity of)



Duly authorised to sign Proposal for and on behalf of




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                                    Annex IV

                               PRICE SCHEDULE


The Contractor is asked to prepare the Price Schedule as a separate envelope from the rest of
the RFP response as indicated in Section D paragraph 14 (b) of the Instruction to Offerors.

All prices/rates quoted must be inclusive of all taxes.

The Price Schedule must provide a detailed cost breakdown. Provide separate figures for each
functional grouping or category.

Estimates for cost-reimbursable items, if any, such as travel and out of pocket expenses,
should be listed separately.

The format shown on the following pages should be used in preparing the Price Schedule.
The format includes specific expenditures, which may or may not be required or applicable
but are indicated to serve as examples.

In addition to the hard copy, if possible please also provide the information on diskette (IBM
compatible).




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Price Schedule: Option A

Request for Proposals for Provision of Money Transfer Solution for Somali Money
Transmitters

Description of Activity/Item                     Price     Frequency      Details/Comments
                                                 (US$)
1.   License fee
     - Mandatory modules
     - Optional modules
     The above fee should be for minimum 10
     SMTs and indicate fee for every
     additional SMT that may join SOMTA in
     the future
2.   Installation and implementation
3.   Data Centre Hosting Services (at Dubai )
4.   Training and documentation
5.   Annual maintenance and support (years 1
     – 5) including upgrades and bug-fixes:
                                   Year 1
                                   Year 2
                                   Year 3
                                   Year 4
                                   Year 5
6.   Third Party Systems
7.   Additional Costs (specify)




Note: Option 1 includes the costs of Data Centre Hosting Services (at Dubai), which
will be arranged for by the Offeror, and should be included in the cost of the
Proposal.




                                            18
Price Schedule: Option B

Request for Proposals for Provision of Money Transfer Solution for Somali Money
Transmitters

Description of Activity/Item                      Price     Frequency     Details/Comments
                                                  (US$)
1.   License fee
     - Mandatory modules
     - Optional modules
     The above fee should be for minimum 10
     SMTs and indicate fee for every
     additional SMT that may join SOMTA in
     the future

2.   Installation and implementation
3.   Training and documentation
4.   Annual maintenance and support (years 1
     – 5) including upgrades and bug-fixes:
                           Year 1
                           Year 2
                           Year 3
                           Year 4
                           Year 5
5.   Third Party Systems
6.   Additional Costs (specify)




Note: Option 2 excludes the costs of Data Centre Hosting Services, which will be
arranged for and paid by SOMTA.




                                             19
                                                        Annex V

                             PERFORMANCE SECURITY FORM


To:        Somali Money Transmitters Association

       WHEREAS [name and address of Contractor] (hereinafter called “the
Contractor”) has undertaken, in pursuance of Contract No. ……………. dated
………. , to execute Services ……………..

(hereinafter called “the Contract”):

        AND WHEREAS it has been stipulated by you in the said Contract that the
Contractor shall furnish you with a Bank Guarantee by a recognised 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 [amount of guarantee]
[in words], such sum being payable in the types and proportions of currencies in
which the Contract Price is payable, and we undertake to pay you, upon your first
written demand and without cavil or argument, any sum or sums within the limits of
[amount of guarantee as aforesaid] without your needing to prove or to show grounds
or reasons for your demand for the sum specified therein.

        The guarantee shall be valid until a date 30 days from the date of issue of a
satisfactory certificate of inspection and testing by the procuring UN entity.



SIGNATURE AND SEAL OF THE GUARANTOR


Date ......................................................................................................................

Name of Bank .........................................................................................................

Address .................................................................................................................




                                                                 21
       Annex VI

TERMS OF REFERENCE (TOR)
UNDP Somalia / SOMTA                               IT Solution for Somali Money Transmitters
                                                                       Request for Proposal


                         Overview – Terms of Reference
This document is a detailed description of the terms of reference forming part of the
Request for Proposal from UNDP Somalia for Contractors interested in providing a
complete money transfer processing solution to the Somali Money Transmitters Association
(SOMTA).
SOMTA is seeking a shared software and data centre solution that will meet its members‟
current and future needs. SOMTA proposes to be the customer of the software and an
outsourced data centre operator for the benefit of the participating Somali Money
Transmitters (SMTs). Each individual SMT will require a proprietary set of parameters and
strong proof that their customer data is secure. Each SMT will independently manage its
data, customer base, and its headquarters and agent network terminals.
In the preparation of the RFP, UNDP Somalia working in conjunction with SOMTA has
employed the services of an advisor.

Summary of Opportunity
To improve transparency and accountability, and ensure compliance with financial
regulations, particularly in relation to anti-money laundering (AML) and combating terrorist
financing (CFT), Somali Money Transmitters (SMTs) have identified the need to implement
an electronic money transfer platform with in-built compliance processes. In addition to
ensuring compliance, it is anticipated that the system will enable more efficient transaction
processing with automated and standardized workflows in line with best practices.
To support this initiative, UNDP Somalia, in co-ordination with and through the Somali
Money Transmitters Association, is in the process of assisting eligible SMTs adopt an
industry „best in class‟ and secure integrated, end-to-end ICT Solution that provides for
efficient processing of money transfer transactions with capabilities of automated regulatory
compliance in multiple Originating countries (Point-of-Service) and Destination countries.
UNDP Somalia now requests Proposals from eligible solution providers. The detailed
guidelines, brief requirements, procurement process, scheduled dates and the required
documents are described in this document. Considering the prevalent conditions in Somalia
and the structure under which the SMTs are functioning right now, it is visualized that there
are two possible options for the solution architecture as follows:


     Option A – Licensed Model with the solution hosted at the Contractor’s data
      service provider’s site which should be in Dubai (and which is subject to SOMTA’s
      approval);
or
     Option B – Licensed Model with the solution hosted at a third party data service
      provider’s site chosen, managed, and paid for by SOMTA.

The response to the RFP should be based on the above two options.




    Annex VI: Terms of Reference                                               Page 1 of 47
UNDP Somalia / SOMTA                                IT Solution for Somali Money Transmitters
                                                                        Request for Proposal



1       INTRODUCTION

1.1 Purpose
This document presents specifications and related information for the delivery, installation,
implementation, and maintenance of an integrated Electronic Money Transfer Management
System for the Money Transfer Operators of Somalia. The software is to be installed over a 3-6
month period depending on the readiness of the application users, i.e., the Somali Money
Transmitters (SMTs). The system must support financial regulations in the various countries
that the SMTs, their agents and sub-agents operate. This Request for Proposals (RFP) has been
developed through the cooperative efforts of the Somali Money Transmitters Association
(SOMTA), whose members are the Somali Money Transmitters (SMTs), UNDP Somalia and
employed advisors.

1.2 Background and project history
SMTs, whose major clients are Somalis and other migrants from the Horn of Africa in the
Diaspora, as well as businesses in Somalia, transfer approximately five hundred million to
one billion dollars annually. They have come under close regulatory scrutiny since the
September 11th terrorist attacks. As a result, SMTs have taken strides to comply with
relevant regulations, including registering and legalizing their operations. However, SMTs
continue to face challenges associated with maintaining bank accounts and high bond
deposit requirements, as well as complying with increasingly complex regulations
concerning anti-money laundering (AML) and countering terrorist financing (CFT). The
challenges faced by these SMTs at present include:
        Legal compliance in the host countries of their business presence
        Conforming to AML / CFT requirements
        Secure, efficient and speedy processing of transactions
        Adopting „best practice‟ processes in their business activities
        Maintaining adequate audit trails
        Integrating automated settlement of accounts
        Adopting better risk management and risk mitigation principles

The SMTs and UNDP Somalia perceive that the solution to these challenges is to
implement a more modern integrated money transfer technology solution. With this
objective, on behalf of the eligible SMTs that operate through the SOMTA, UNDP Somalia
now invites Proposals from eligible Contractors who are able to supply the solution with the
above capabilities. The detailed guidelines relating to submission of proposals are set out
below.

1.2.1     Overview of SOMTA
Somali Money Transmitters Association (SOMTA) is a United Kingdom registered apex body
whose vision is “To secure the future of the Somali remittance industry through a safe and
healthy sector comprising fully compliant money transmitters who are able to operate and
compete globally, and to promote the image of the industry”. Its members, a number of
SMTs, operate in Somalia and in many other countries worldwide. Collectively, they are the
leading operators facilitating transactions of more than 75% of the money transfers by Somalis
around the world. They have offices (head office and agents / sub-agents locations) in many


 Annex VI: Terms of Reference                                                   Page 2 of 47
UNDP Somalia / SOMTA                                IT Solution for Somali Money Transmitters
                                                                        Request for Proposal


cities in the USA, Europe, Middle East and Africa apart from other countries of the world. A
brief overview of data in relation to SOMTA and its members is as follows:
       Currently SOMTA has 10 major SMTs as members with potential for expanding to
        15.
       Each SMT has head offices either inside or outside Somalia.
       Each SMT operates through an exclusive agent/sub-agent network.
       The smallest SMT operates in more than 10 countries, while the largest operates in
        over 30 countries.
       The smallest SMT operates through a network of more than 50 agents/sub-agents,
        while the largest has over 200 agents/sub-agents.
       The average number of transactions for the smallest SMT is approximately 10,000
        per month. The largest SMT transfers approximately 200,000 remittances per month.
        Collectively, the members of SOMTA process more than 4 million transactions
        annually valued at approximately 500 million to 1 billion in US dollars.
       Approximately 1-2 staff per each agent and 1 staff per sub agent are currently
        employed.
       The client base per agent/sub-agent ranges from 100 to 5,000. The smaller SMTs
        serve more than 10,000 clients while the larger SMTs serve over 200,000 clients.
       All SMTs currently use in-house Money Transfer Systems.


1.2.2    Role of UNDP Somalia
UNDP Somalia‟s role is to support the strengthening of the SMTs, particularly in relation to
accountability, transparency and compliance with Anti Money Laundering and Combating
the Financing of Terrorism regulations, in order to ensure the continued flow of migrant
remittances to Somalia through formal channels. Towards this, UNDP is willing to support
the implementation of a modern efficient money transfer system that enforces SMTs to
follow the industry best practices. In effect, UNDP Somalia will make some funds available
to implement a shared IT solution for the SOMTA members. Given the funds available, it is
also expected that the SMTs will contribute their own funds directly or through SOMTA.
To ensure proper use of its funds, UNDP Somalia will be integral to the entire process of
procuring and implementing the IT Solution.


1.3 Objectives
Towards its vision, SOMTA aims to provide a common electronic platform for all its
members which, in turn, will enable the members to provide state-of-the-art money transfer
services to the Somalis around the world. The solution should be an industry „best in class‟,
cost effective, secure and efficient. Particularly important are automated regulatory
compliance in multiple originating and destination countries. In particular, the system must
provide:
       A state-of-the-art integrated money transfer system that provides access to accounting,
        commission settlements, payments netting and customer relationship management
        functions.




 Annex VI: Terms of Reference                                                    Page 3 of 47
UNDP Somalia / SOMTA                                   IT Solution for Somali Money Transmitters
                                                                           Request for Proposal


         Best-in-class compliance functions including AML/CFT and the regulatory
          requirements of over 30 countries where SMTs operate.
         The ability for SOMTA to implement the system for its member SMTs. SMTs
          operation in various countries with a corporate structure of head office (HO), agents
          and sub-agents.
         A system that enables each SMT head office and agent/sub-agent to view and maintain
          its own data with control of user profile and security configurations.
         Speedy transmission of money from originating country to destination country.
         Multi-channel remittance mediums such as Debit cards, Credit Cards, Cash and
          Cheques.
         Excellent performance for all participating SMTs and their combined transaction load.
         Real-time mirroring of essential data.
         The ability to effectively convert data from the existing money transfer systems into the
          new format as required by the system.
         The ability to exploit emerging technologies and information resources to raise the level
          of money transfer services, facilitate an increase in staff productivity, and improve
          effectiveness.


1.4 Ownership and use of solution
SOMTA is seeking a shared software and data centre solution that will meet its members‟
current and future needs. It should be understood that SOMTA will be the acquirer of the
software license for the benefit of the participating Somali Money Transmitters. SOMTA
will neither implement nor use the solution for its own use. Rather, the SMT members of
SOMTA will implement and use the solution. In essence, it is expected that each
participating SMT will operate the solution through a „user license‟. Each individual SMT
will require a proprietary set of data, including system-level parameters, agents, sub-agents,
customers and transaction. They will require strong proof that their data is secure an
inaccessible to other SMTs. There are currently ten SMTs who are eligible to implement the
solution, out of a potential total of fifteen. The winning Contractor must install and
implement the solution for future new members of SOMTA within the terms and conditions
agreed to at the time of finalizing the contract.

The effect of such an arrangement is that the Contractor is likely to have one customer,
SOMTA, which has been given the right to multiple licenses. Contractors should consider
this as an opportunity of supplying a software solution that could become a standard for the
Somali money transfer industry, and access to multiple clients. Therefore, Contractors
should consider some form of guaranteed discount from the Contractor's suggested retail
prices in effect at the time the purchase is made.


1.5 Assumptions and other general issues
     UNDP Somalia will support SOMTA’s acquisition of the most forward-looking, flexible,
      extensible, and cost efficient solution.
     The system architecture should be open, Internet based, and uses a commercial relational
      or object-oriented database for much of its functionality.


    Annex VI: Terms of Reference                                                     Page 4 of 47
UNDP Somalia / SOMTA                                   IT Solution for Somali Money Transmitters
                                                                           Request for Proposal


     SOMTA will not be an alpha site for a new system. A contract will be awarded on the basis
      of what is actually in general release at the time of purchase.
     SOMTA, in conjunction with UNDP Somalia, will select a system that runs on standard
      hardware. The chosen system will support the money transfer management system needs of
      all its members. The system must provide for a range of desired functions that will serve
      the range of SMTs from the smallest to the largest sized company.
     It is assumed that neither SOMTA nor the individual SMTs will build a data centre for
      housing and managing the shared applications and/or the requisite hardware. Accordingly,
      SOMTA will consider outsourcing the management of the applications, data, hardware,
      communication networks and third party services to a competent third party.
     Should a Contractor's own product line not be able to meet all of the requirements and
      support a "total integrated solution", it is assumed the Contractor will propose a solution
      utilizing other "proven" packages. In this scenario, Contractors are expected to take on the
      complete project responsibility including interfaces, integration of outside package(s) etc.
      on a "turn key" basis and should form their proposal on this basis.
     This RFP may be considered a software request, however, hardware configurations and
      associated estimates will assist in this process. Appropriate recommended hardware
      platforms, technical architecture of the same, including complete configuration
      specifications with special emphasis on CPU model, memory sizes, and disc capacities are
      requested.



1.6 Structure of this document

After this introductory section, these terms of reference are organized as follows:
     Section 2 describes the formal procedures that bidders will be required to respect in
      order to comply with UNDP‟s purchasing rules. Please note that failure to follow any of
      the instructions will result in immediate disqualification. This chapter also provides the
      procedures and timetable that will be adhered to for this particular RFP, and guidelines
      for proposal preparation that are specific to this RFP and that will allow proposals
      received to be assessed in the fairest possible way (“apples to apples” comparison).
     Section 3 defines the information required in respect of corporate qualifications of the
      bidder.
     Section 4 then defines the mandatory functional requirements of the SMTs and
      SOMTA.
     Section 5 further elaborates on specific functional requirements.
     Section 6 finally described the information required in respect of pricing and cost
      quotes.




    Annex VI: Terms of Reference                                                    Page 5 of 47
UNDP Somalia / SOMTA                                 IT Solution for Somali Money Transmitters
                                                                         Request for Proposal



2      PROCUREMENT PROCESS

2.1 Minimum Conditions for Qualifying Product
Technical proposals will be evaluated on the basis of their responsiveness to these Terms of
Reference. As part of the evaluation process the Contractor will be expected to meet the
following minimum conditions:
     The product offered should be completely developed, tested and ready for immediate
      implementation. SMTs will not be subjected to Unit Testing, Alpha testing or Beta
      testing. The product offered should be the general version of release by the Contractor
      as of 31 October 2006 and all the mandatory specifications mentioned in this RFP
      should be available in this version.
     At least three satisfactory customer references must be obtained by the Purchaser from a
      list of customer sites provided by the Contractor. The product offered should be the
      same one used by the customers provided as reference accounts.
     Satisfactory verification of a Test Site provided by the Contractor. The product offered
      should be same as that on the Test Site.
     The product should be an Internet based solution.
     The product should provide complete and comprehensive compliance with the
      AML/CFT regulations in all major jurisdictions. The compliance solution can be a third-
      party solution.
     The Contractor should be willing to host the solution in Dubai under Option A.
     The submissions must pass the minimum technical score of 75% out of 700 points (i.e.,
      525) in the preliminary evaluation of the Technical Proposals.
     The Contractor should give a guarantee of a minimum of 99.9% uptime with complete
      security and network infrastructure under option A

2.2 Bidders' product demonstration
The joint SOMTA/UNDP Somalia Steering Committee may convene a mandatory Bidders'
Product Demonstration by those bidders short-listed based on the evaluation criteria. This
session will provide Contractors with an opportunity to demonstrate their proposed solution to
the Steering Committee, who in turn will also seek clarifications related to the system and the
proposal. Any bidder which does not respond to a request to provide such a
demonstration will be evaluated as technically non-responsive and summarily rejected.




2.3 Sub-contracting

Contractors can include third party products or services that complement their proposed
solutions. These products must be fully compatible with the proposed solution, tested and
implemented in user sites, and be delivered and implemented under the responsibility of the



    Annex VI: Terms of Reference                                                 Page 6 of 47
UNDP Somalia / SOMTA                                 IT Solution for Somali Money Transmitters
                                                                         Request for Proposal


bidding Contractor. Bidders must indicate which parts of the project, if any, will be performed
by sub-contractors.




2.4 Acceptance testing
Acceptance testing will be contingent on the ability of the mandatory system modules (as
outlined in Section 4, Mandatory Specifications) to perform adequately using SMT data at
mutually agreed upon installed site(s). SOMTA/UNDP Somalia reserve the right to
establish acceptance tests to determine the functionality of the system within the context of
SMT environments. The SMTs will work with the winning Contractor to identify an
appropriate list of transactions for these final acceptance tests.

At the time of the acceptance test, the entire system must be compliant with the Software
License Agreement (SLA).


2.5 Contract duration and extension option
The initial term of the contract will be 5 years. SOMTA shall have the option to renew for
additional 5 year terms at the approval of its members.


2.6 Escrow of essential software
Within thirty (30) days following the execution of the contract, the Contractor must either
(a) provide source code of all software and all associated manuals to SOMTA, or (b)
establish and place in escrow a complete copy of the current source code of all software and
all associated manuals, proprietary or otherwise, which are essential to support the system
provided by this agreement. SOMTA shall be a party to the escrow agreement and such
escrow agreement shall be subject to the approval of all parties. The escrow agreement shall
authorize the escrow agent to release the source code to SOMTA in the event a petition in
bankruptcy is filed by or against the Contractor, or, if for any reason (except for material
breach by SOMTA) the Contractor terminates the Agreement. The Contractor shall pay all
costs of providing and maintaining the source code in escrow, including the fees of the
escrow agent. SOMTA may at any time during the term of this contract review the
deposited software and associated manuals. The Contractor shall replace the deposited
software and related documentation with an updated version at least once every six (6)
months or upon the Contractor's distribution of a new software release to its customers.


2.7 Taxes
Taxes relating to the sale of the IT solution and services herein shall be the responsibility of
the Contractor.




 Annex VI: Terms of Reference                                                     Page 7 of 47
UNDP Somalia / SOMTA                                  IT Solution for Somali Money Transmitters
                                                                          Request for Proposal


2.8 Format of responses to RFP
All responses must be submitted in two parts – the Technical Proposal and the
Financial Proposal. Please note that the technical component of the Proposal should not
contain any pricing information whatsoever on the services offered. Pricing information
shall be separated and only contained in the appropriate Price Schedules as part of the
Financial Proposal.

         Failure to respect this requirement will result in automatic disqualification.

The format for each proposal is outlined below.

2.8.1      Technical Proposal
The interested parties should submit their Technical Proposal in the following format:
     Section A: Introduction
      This section indicates that Contractors have read and understood the information
      provided in these terms of reference. Additionally, Contractors should include a
      reference table for all the information provided in the Proposal in response to these
      terms of reference.
     Section B: Statement of Capability
      This section should include, but not necessarily be limited to:
      o Background and Company profile (as per requirements under section 3.0)
      o Summary of proposed solution product features (functional and technical) – specify
        the name and version of the product offered
      o Ability to supply the requested hosting options (2 options)
      o List of References (as per requirements under section 3.0)
      o Test site URL with necessary user IDs and passwords for the product offered as a
        solution
      o List of countries for which the product meets the country‟s financial regulatory
        regulations
      o Copy of Company incorporation certificate
      o Financial information (as per requirements under section 3.0)
      o Copy of Software License Agreement and copy of Annual Maintenance Contract
     Section C: Response to the Functional & Technical Requirements
      This section should include, but not necessarily be limited to:
      o Response to each one of the sub-items under sections 4.0 and 5.0 below, for each of
        the two proposed hosting solutions
      o Present and future customisation terms
      o Ability to perform the required customisations
      o Methodology and approach including pilot conversion and roll-out
      o Implementation time plan
      o Application processing performance under the required environment
      o Implementation Support



    Annex VI: Terms of Reference                                                 Page 8 of 47
UNDP Somalia / SOMTA                                IT Solution for Somali Money Transmitters
                                                                        Request for Proposal


     Section D: Any other matters




2.8.2      Financial Proposal
The interested parties should submit their Financial Proposal in the form of a Price
Schedule, an example of which is contained in Annex V. Such a Price Schedule should
provide the following as a minimum:
     Section A: Costing for Option A (software license plus complete hosting of solution at
      Contractor‟s data service provider‟s site) should include, but not be limited to, the
      following cost categories:
             o One time software license cost
             o Installation
             o Training and documentation
             o Maintenance, support and upgrades
             o Cost of Third party systems if applicable
             o Additional software related costs, including any customization costs
             o Data service provider for the hosting of the solution

     Section B: Costing for Option B (software license with solution hosted at a third party
      data service provider‟s site) should include, but not be limited to, the following cost
      categories:
             o One time software license cost
             o Installation
             o Training and documentation
             o Maintenance, support and upgrades
             o Cost of Third party systems if suggested
             o Additional software related costs, including any customization costs
             o Under this option, Contractors should provide indicative costs for the
                  recommended hardware required by the external hosting provider.

2.8.3      Response Requirements
The response must follow the numbering system in these terms of reference. The bid must
provide complete and comprehensive responses as requested with a particular focus on
concise answers.


2.8.3.1     Technical Proposal

Please note that:
     Contractors must indicate their compliance with, and responses to the information
      provided in Section 2 (Administrative Information).
     In relation to Section 3 (Contractor Viability), Contractors are required to respond to
      each statement with complete information.


    Annex VI: Terms of Reference                                                Page 9 of 47
UNDP Somalia / SOMTA                                 IT Solution for Somali Money Transmitters
                                                                         Request for Proposal


     Section 4 (Mandatory Specifications) focuses on the minimum system capabilities
      requirements identified by the SMTs, whereby:
      o In relation to Sections 4.1 - 4.3, Contractors are required to state a “Yes” or “No”
        answer next to each section number. A “Yes” answer indicates compliance with
        these requirements. If a Contractor answers “Yes” to any mandatory specifications
        and UNDP Somalia/SOMTA subsequently determines, that these mandatory
        specifications are not met the proposal will receive no further consideration.
      o In relation to Section 4.4 – 4.5, Contractors are required to complete the hardware
        recommendations based on the proposed hosting alternatives.
     Section 5 (Full Functional Specifications) focuses on the individual modules that
      together make up the integrated system. A point system based on the relative importance
      of each feature will be used to quantify the responses. Contractors must respond to each
      statement as indicated here:
      o Sections 5.1 – 5.7: Contractors must indicate, next to each section number, the
        system's state of compliance using the indicators below and provide detailed
        explanations of the functions or capabilities represented in each specification as
        requested.
                 A = Available in current general release as of 31 October, 2006
                 N = Not available
      o Section 5.8 – 5.15: Contractors must provide detailed explanations of the functions
        or capabilities represented in each specification.


2.8.3.2     Financial Proposal


Please note that:
         In relation to Section 6 (Cost Summary) Contractors are required to provide
          separate cost quotes based on the two hosting alternatives.
         Complete costing should be provided for each of the components described in
          Section 6.
         The example Price Schedule format in Annex V should be used.

The Steering Committee may, at its discretion and at no cost to UNDP Somalia/SOMTA,
invite any Contractor to appear for clarifications or provide written responses during
response evaluation for the purpose of clarifying statements in the response.

The Contractor's Proposal should provide concise and complete descriptions of the
Contractor's ability to satisfy the requirements of the RFP. It is expected that the Contractor
will provide relevant or essential data needed to complete this requirement. Expensive
displays, bindings, or promotional materials are not required unless they provide concise
and complete descriptions of the Contractor's capability to satisfy the requirements of the
RFP. Responses of "see attached" are not considered sufficient. If attachments are required


    Annex VI: Terms of Reference                                                Page 10 of 47
UNDP Somalia / SOMTA                                IT Solution for Somali Money Transmitters
                                                                        Request for Proposal


they must pertain to specific questions. In these cases, indicate on the attachment the section
and question number to which it refers and clearly mark on the attachment the relevant
information that responds to the question.

The Steering Committee must be able to compare services and their cost across proposals
from different bidders in a meaningful way (“apples to apples”). Facilitating this process
will only work in the bidder‟s favour. Any bidder that submits a proposal that is difficult or
impossible to compare with other proposals is likely to be eliminated. Therefore bidders
should try to respect the proposed model as much as possible.




 Annex VI: Terms of Reference                                                   Page 11 of 47
UNDP Somalia / SOMTA                                  IT Solution for Somali Money Transmitters
                                                                          Request for Proposal


3       CONTRACTOR VIABILITY
In a Statement of Capability, Contractors are required to respond to each statement below
with complete information.

3.1 Contractor Information and Company Profile
Contractors must provide:

3.1.1     Information about the Contractor's company specific to the Money
          Transfer Software Product offered in the Proposal:

        Name
        Home office address
        Ownership details (including principal shareholders and the company structure)
        Address of nearest sales/customer service office in Middle East and/or East Africa
        Name, title, telephone, fax, and e-mail address of contact person
        Quality system description (as appropriate to this bid) including any accreditations
         by third parties and a description of the Quality Assurance (QA) system.
        Length of time in business.
        Length of time providing the solutions which are requested in this RFP.
        Details of any litigation, arbitration history and the present status of the same.
        Name and version of the Product offered as solution in the proposal.
        List of countries in which your Money Transfer Solution Product is CURRENTLY
         in USE.
        Black Lists your Money Transfer Solution Product CURRENTLY SUPPORTS.


3.1.2     Short- and long-term mission of the organization.
Specify your product development goals, and your vision of the future of money transfer
automation.


3.1.3     Information related to staffing:

        Number of full-time and part-time staff
        Allocation of staff among the following areas:
            o Research and development
            o Customer service/support
            o Sales
            o Administration


 Annex VI: Terms of Reference                                                     Page 12 of 47
UNDP Somalia / SOMTA                             IT Solution for Somali Money Transmitters
                                                                     Request for Proposal


3.2 References
UNDP Somalia/SOMTA will be relying on Contractor reference accounts from institutions
comparable to SMTs to verify both system and Contractor performance. Proposals shall
include references allowing the UNDP Somalia/SOMTA to obtain information regarding
overall performance and satisfaction with the complete system, as well as for specific
modules. Representatives from the Steering Committee may, at their discretion, choose to
conduct telephone interviews or site visits with references.

Contractors must provide:


3.2.1   A complete list of clients that have implemented the proposed system,
        preferably, African/Middle East references, with full contact details of
        person(s) that the Steering Committee may contact.

3.2.2   Date the customer implemented the proposed system.

3.2.3   Number of client licenses for each customer.

3.2.4   Number of systems scheduled for installation and when.

3.2.5   Results of any customer survey taken during the past year.

3.2.6   Contact information for the system's user groups and addresses of
        online discussion groups.

Please provide the above information for the product you are proposing which is currently
being used.



3.3 Partnering/Test Sites
Please provide your test site URL and necessary user IDs & passwords for us to view the
Money Transfer Solution Product offered in your proposal.

Describe any:

3.3.1   Collaborative development efforts with customers.

3.3.2   Use of alpha and beta test sites (how are sites chosen, etc.)




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                                                              Request for Proposal


3.4 Financial Information
3.4.1   Provide Company financial information which should include audited
        financial statements for the last three years.




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UNDP Somalia / SOMTA                                IT Solution for Somali Money Transmitters
                                                                        Request for Proposal


4      MANDATORY SPECIFICATIONS

Solution Architecture

Considering the structure under which the SMTs are functioning right now, it is visualized
that there are two possible options for the solution architecture as follows:
         Option A: Licensed Model with the solution hosted at the Contractor’s data
         service provider’s site which should be in Dubai.
         or
         Option B: Licensed Model with the solution hosted at a third party data centre
         service provider’s site chosen, contracted and paid for by SOMTA.

The response to the RFP should be based on the above two different options, although
Contractors may additionally include in their response any other options for the
solution.
Please note that an ASP model is excluded from this RFP as it is not a suitable solution
for consideration. However, systems developed for deployment in the ASP model may
be proposed, as long as the system is implemented under one of the above options
exclusively for SOMTA’s use.
Please specify the system requirements as mentioned under Sections 4 and 5 with clear
classification as to the above two alternate hosting solutions wherever the architecture
affects the requirements in terms of functions, hardware, software, cost, implementation,
support and maintenance. A brief description of the models is specified below.


Option A:
In this model, the solution is hosted at the Contractor‟s data centre service provider‟s site
which should be in Dubai. The service provider must be approved by SOMTA. The data
centre service provider will be responsible for providing the hardware, operating system
software, web server, firewall, security services, hosting the solution, and regular system
administration maintenance. The Contractor will install the solution with the data centre
service provider‟s resources allocated for the solution setup and hosting. The solution
ideally will have a common database for all the SMTs with privacy of data accessible only
by the individual SMTs. The solution will have individual interfaces accessible only by
users with appropriate rights and privileges.


Under this option:
     The data service provider (or hosting bidder) is expected to provide all hardware,
      operating systems and non-money transfer software applications that are being
      proposed. Title to hardware and operating system shall remain with the hosting bidder.
      The bidder is expected to provide the necessary hardware maintenance, upgrades and
      fixes as part of the hosting arrangement.
     In addition to hardware, ownership, operation and maintenance of the Relational Data
      Base Management software, performance and management tools, change control


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UNDP Somalia / SOMTA                                   IT Solution for Somali Money Transmitters
                                                                           Request for Proposal


      software, performance testing tools, helpdesk and other software packages that may be
      required are to remain with the hosting bidder.
     Ownership of the money transfer software and related bundled 3rd Party tools will
      remain with the SOMTA.
     The total hosting services will comprise:
           o Technical infrastructure – hardware, operating systems, Internet connectivity
           o Storage requirements
           o System administration
           o Access via the public Internet for SMTs and their agents
           o Backup and recovery
           o Disaster recovery
           o Change control
           o System security
           o Infrastructure support

Option B:
Option B is similar to that of Option A except that:
         The data centre service provider is selected by SOMTA.
         SOMTA will contract and pay for the support services and the server hardware and
          underlying software required to support the Contractor‟s system.



4.1 Mandatory - General System Functions
The features in this section are required. Contractors must state a Yes or No answer next to
each section number. A Yes answer indicates compliance with these requirements.

The implemented system:

4.1.1      Shall consist of software, installation, database conversion programs,
           on-site/off-site training and documentation, hardware/software
           maintenance, software support, and ongoing software enhancements
           necessary for full operation, all of which must be quoted by the
           Contractor.

4.1.2      Must be fully integrated, with all modules capable of sharing common
           databases and independent databases as per Options A and B
           mentioned above and a consistent interface across functions.

4.1.3      Must fully support SOMTA structure that will allow separate sites for
           each SMT and enable each site to access and maintain its own money


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                                                                 Request for Proposal


        transfer data. The money transfer management system and data for
        each SMT, and each of its agents and sub-agents, must be able to have
        separate profile and security configurations that are controlled at the
        SMT level.

4.1.4   Must fully support an SMT structure that enables the data
        consolidation at 3 levels (SMT, Agent and Sub-agent).

4.1.5   Must be capable of supporting a 50 percent increase in database size,
        number of terminals/workstations, and/or activity levels without a
        hardware upgrade or a significant decrease in system response time
        based on the configurations relevant to Option A & Option B mentioned
        above.

4.1.6   Provides online Money Transfer Transactions by SMTs’ retail clients
        paid by credit card/debit card/bank account etc.

4.1.7   Provides a global unique transaction ID within SMT for each
        remittance.

4.1.8   Flexible charges and commissions.

4.1.9   AML/CFT compliance in accordance with US and UAE regulations,
        and configurable to support additional regulations based on source and
        destination countries.

4.1.10 Basic Accounting relating to Money Transfer transactions.

4.1.11 Reconciliation.

4.1.12 Ability to incorporate interfaces to external third party systems if
       desired by SOMTA.

4.1.13 Must allow separate databases for staff training and testing purposes,
       preferably one per SMT.

4.1.14 Must operate in a real-time interactive mode with the capability to
       create, update, maintain, and access all data for money transfer
       transactions in real-time.

4.1.15 Must provide dynamic indexing for all new and revised data regardless
       of method of entry into the system.

4.1.16 Must provide daily reporting and updating in the background so that
       the system can be operated continually.




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                                                                        Request for Proposal


4.1.17 Must provide continuous backup so all transactions can be recovered to
       the point of failure. Routine point of failure restoration from software
       or hardware failure should not exceed four (4) hours.

4.1.18 Must allow for transaction roll-back in case of failure.

4.1.19 Must be fully compliant with the following standards:

          HTTP
          TCP/IP standards.
          128 bit SSL data encryption


4.1.20 Must include a report generator to facilitate retrieval of management
       information. This report writer should allow non-programmers to
       develop reports themselves. Control options for must be included to
       protect system resources and response times. In addition to a
       proprietary report writer, the system must be as SQL compliant as
       possible. The system must be open for sophisticated data manipulation
       beyond the limited capabilities of proprietary report writers.

4.1.21 Must include a security/authorisation function that can be maintained
       easily by money transfer staff without programming expertise. Security
       will govern which staff will have access to which functions and data
       across all modules.



4.2 Mandatory Modules
Contractors must indicate, next to each section number, the system's state of compliance using
these indicators and provide detailed explanations of the functions or capabilities represented
in each specification as requested.

A = Available in current general release as of October 31, 2006
N = Not available

4.2.1    Mandatory General Modules
The system should have the following modules:
    Money Transfer Module (end-to-end money transfer transactions)
    Application Security and Access Module (User Administration)
    Application Setup (Application parameters setup)
    AML and CFT configuration at the SMT level, and by source and destination country
    Accounting relating to money transfer transactions
    Client Relationship Management
    Remittance Tracking Module from transaction entry to payout
    Reports Generation Module


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UNDP Somalia / SOMTA                              IT Solution for Somali Money Transmitters
                                                                      Request for Proposal


         Online Money Transfer Transaction by Clients with credit card/debit card/bank
          account etc.

4.2.2      Specific Modules
The above modules should be available for implementation at 3 different levels (SMT, Agents
and Sub-agents). The detailed specification for the level at which individual modules to be
implemented is listed below:


4.2.2.1     At SMT Level:

         SMT setup

   Application System Administration:
    Agent and Sub-agent setup
    Setup limits/ceilings for agents/sub-agents
    Product setup
    Charge setup
    Commission setup (options of percentage or flat fees)
    Currency Setup
    Setup up of remittance origination mediums, including Cash (Mandatory), Debit card
      (mandatory), Credit Card (mandatory), Cheque (Mandatory), Bank Account (optional)
    Setup up of remittance payout mediums, including Cash (Mandatory), Cheque
      (Mandatory), Bank Account (optional)
    Accounting related to the remittance transactions and functions
    Automated Compliance from AML/CFT perspective, including transaction limits and
      Know Your Client requirements (i.e., numbers and types of identification)
    Remittance Tracking (mandatory at Agent/Sub-agent levels but optional for retail
      clients’ online access)
    Management Information System (MIS)
    External Interfaces
    Clearing House Functions related to settlement of commission and account dues
      between the agents, sub-agents and SMT (money transfer from agent to HO, from HO
      to agent and between agents)
    Approval of Money Transfer Transactions, agent account settlements, and expenses at
      the SMT level
    Archiving and Purging of transactions with parameters, i.e., dates


4.2.2.2     Agent and Sub-agent Level

   Front Office:
    Remittance origination
         o Channel Delivery
         o Identification and authentication, and registration of remitter (Know Your
             Client)
         o Validation/approval by a supervisor, if required


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                                                                      Request for Proposal


           o Routing (Country and City)
           o Billing and Charging
           o Balance check and debit account for remittances funded by an online
             payment
           o Send Remittance Advice to receiving agent (mandatory) and beneficiary
             (optional)
           o Print Remittance Advice

      Remittance payout
          o Receive Payment Advice
          o Identification and authentication, and registration of beneficiary
          o Billing and Charging
          o Credit account for remittances paid by an online payment
          o Send Payment Advice to originator
          o Print Payment Advice

      ID Capture, including attaching scanned ID documents and photographs for
       remitters and beneficiaries.

   Back-Office:

   For Remittance Process:
   1. Functions:
       Automated Compliance (AML/CFT/Fraud detection)
       Rectification and Reversal of erroneous transactions prior to their payout
       Accounting relating to the remittance transactions and functions (commissions
         and fees, currency exchange)
       Remittance Tracking
       Investigation
       Reconciliation
       Clearing House Functions related to settlement of commission and account dues
         between the agents, sub-agents and SMT
       Grievance Reporting/Complaints Logging and Tracking
       Simple Treasury functions such as open/close Teller, teller reports (transaction
         summary, cash), cash denomination

   2. Reporting

          Regulatory Reporting (AML/CFT), including SAR, CTR, and other regulatory
           reports for the supported jurisdictions
          Transaction Reports at the SMT, agent and sub-agent levels by date or other
           parameters
          A report writing facility
          Export facility to Excel/Word and other common Office documents




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                                                                        Request for Proposal


   3. System Administration
       User Authorization
       Exception handling
       Backup/Restore
       Security (Encryption)
       Security (Data Access)



4.3 Mandatory - Requirements for Computer Hardware and Platforms at
    SMT/Agent/Sub-agent Offices
The features in this section are required. Contractors must state a Yes or No answer next to
each section number. A Yes answer indicates compliance with these requirements.

The implemented system by SMTs:

4.3.1    Runs on all current versions of Windows, Mactinosh and Linux
         operating systems.

4.3.2    Operates on current versions of the most popular web browsers,
         including Internet Explorer and Firefox.



4.4 Mandatory – Hardware Specifications at SMT/Agent/Sub-agent
    Offices
In this section the Contractors are required to specify minimum hardware specifications for the
application to run at the offices of SMTs (HO), agents and sub-agents. Under this section the
Contractors should describe the specifications.

Please provide hardware specifications for:

4.4.1    Client distribution server, if proposed.

4.4.2    Sample workstation configuration for agent’s staff functions.

4.4.3    Sample workstation configuration for retail client online functions.

4.4.4    Additional server capacity required for mirroring of files, if proposed.

4.4.5    Proposed network/infrastructure requirements.

4.4.6    Internet speed and bandwidth required for transaction responses within
         5 seconds, given the expected transaction volumes documented above.




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UNDP Somalia / SOMTA                                IT Solution for Somali Money Transmitters
                                                                        Request for Proposal


4.5 Mandatory – Hardware and Software Specifications at the Server
    Side
Contractors are required to complete the hardware and software recommendations at the
server side as outlined in this section.

Considering the structure under which the SMTs are functioning right now, it is visualized that
there are two possible options for the solution architecture as follows:
        Option A: Licensed Model with the solution hosted at the Contractor’s data
        service provider’s site which should be in Dubai;
        or

        Option B: Licensed Model with the solution hosted at a third party data centre
        service provider’s site chosen by SOMTA

It is required that the bidder provide a detailed hardware and software recommendation for the
server side based on the two possible solution architectures as described above. Keeping in
mind the requirement that the system must be capable of supporting a 50 percent increase in
database size, number of terminals/workstations, and/or activity levels without a server
upgrade or decrease in response time, appropriate server and storage hardware should be
recommended. Note that the hardware is expected to have a useful life of 5 years in the case of
servers.

The hardware recommendation should include:


4.5.1    Standard commercially available servers (vendor, model, and
         configuration); include hardware for the individual SMT databases to
         have privacy and security considering the options as stated above, if
         proposed.

4.5.2    Disk storage for servers, including backups.

4.5.3    Peripheral devices for servers including uninterruptible power supply,
         etc.

4.5.4    Client distribution server, if proposed.

4.5.5    Sample workstation configuration for staff functions.

4.5.6    Sample workstation configuration for online client transaction
         functions.

4.5.7    Additional server capacity required for mirroring of files, if proposed.

4.5.8    Proposed network/infrastructure requirements.




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                                                               Request for Proposal


4.5.9   Proposed Operating System including the name of the product and
        version.

4.5.10 Proposed web server including the name of the product and version.

4.5.11 Proposed Firewall/Anti-virus/security related software and hardware
       including the name of the product and version.

4.5.12 Proposed database system including the name of the product (such as
       standard or enterprise) and version.

4.5.13 Proposed administration software if required including the name of the
       product and version.




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UNDP Somalia / SOMTA                                 IT Solution for Somali Money Transmitters
                                                                         Request for Proposal



5      FULL FUNCTIONAL SPECIFICATIONS
Section 5 (Full Functional Specifications) focuses on the functional requirements of the system.
A point system based on the relative importance of each feature will be used to quantify the
responses.

The money transfer management system is expected to provide consolidation capabilities at 2
levels (Agent and Sub agent levels) available from any workstation accessing the proposed
system, regardless of its location, if its user has the appropriate privileges.

Contractors are required to follow the numbering system in the RFP and must respond to each
statement as indicated here:
 Sections 5.1 - 5.7: Contractors must indicate, next to each section number, the system's
    state of compliance using these indicators and provide detailed explanations of the
    functions or capabilities represented in each specification as requested.

      A = Available in current general release as of 31 October, 2006
      N = Not available

     Section 5.8-5.15: Contractors must provide detailed explanations of the functions or
      capabilities represented in each specification.

All of the following actions are assumed only to be accessible by a user with the appropriate
rights, based on what actions they are allowed to perform, and which transactions, clients, sub-
agents, or agents they can perform them on.



5.1 At the System Level
5.1.1      General
The system:

5.1.1.1     Is fully integrated with all modules, including AML compliance and
            reporting, even if these are provided by a third party.

5.1.1.2     Has the ability to setup date, time on the server which can not be altered by
            any other person.

5.1.1.3     Has the audit functionality to record all records by stamping the date, time
            and the user id for adding/modifying/deleting functions. Deletions should be
            “soft deletions,” which set the record to “inactive” or “deleted,” without
            physically deleting the record. In addition, a copy of important records
            should be written to an audit trail when they are added, modified and
            deleted so that a history of their data over time is available.

5.1.1.4     Has the functionality to initiate session for each user and enforce an
            automatic timeout function after a set period of inactivity has passed.


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                                                                          Request for Proposal


5.1.1.5      Has the functionality to setup archive parameters to archive data and purge
             the data based on parameters such as date.

5.1.1.6      Has no limits on the numbers of agents, sub-agents, transactions, accounting
             entries, or any other data type in the system.



5.2 At SMT (Head Office) Level
5.2.1      General
The system:


5.2.1.1      Has the functionality to setup various countries.

5.2.1.2      Has the functionality to setup various cities under countries.

5.2.1.3      Has ability to setup country specific time zones for various SMTs (optional).

5.2.1.4      Set discretionary client data fields as optional or mandatory (e.g., the
             number and type of ID required, or security questions such as mother’s
             maiden name).



5.2.2      Setup SMTs

5.2.2.1      Setup SMTs with the following minimum information:

         SMT Code
         SMT Name
         Contact details (person/address/phone no, fax no, email)
         Operation effective dates (from, to)


5.2.2.2      If the system is implemented in such a manner that a common database is
             shared by multiple SMTs, there is no limit on the number of SMTs.



5.2.3      Setup Agents

5.2.3.1      Setup Agents with the following minimum information:

         Agent code under the SMT code
         Agent Name
         Contact details (person/address/phone no, fax no, email)



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                                                                           Request for Proposal


         Operation effective dates (from, to)
         Credit Limit (e.g., the value of remittances the agent can accept before reimbursing the
          SMT)


5.2.4      Setup Sub-agents
5.2.4.1      Setup Sub-agents with the following minimum information:

         Sub-agent code under the SMT code and under Agent code
         Sub-agent Name
         Contact details (person/address/phone no, fax no, email)
         Operation effective dates (from, to)
         Credit Limit (e.g., the value of remittances the sub-agent can accept before reimbursing
          the SMT)


5.2.5      Setup Commissions

5.2.5.1      Setup commissions with the following minimum information:

         Commission Code
         Commission Name
         Charge frequency (per transaction/monthly/quarterly/half-yearly/annually)
         Type of fee (flat or percentage of remittance value), and tiered fee code (indicating
          whether tiers are used, and how to interpret them)
         Amount of fee or percentage (by tier, if tiers are applicable)
         Minimum/Maximum Commission/Fee that can be charged at the user’s discretion if a
          user overrides the system calculated fee
         Commission applicable to SMT, agent, and sub-agent
         Commission effective dates (from, to)


5.2.6      Setup Remittance Payment Mediums
5.2.6.1      Setup payment mediums for the funding and payout of remittances, such as
             cash, credit card, debit card, bank account, cheque, etc., with the following
             minimum information:

         Remittance medium Code
         Remittance medium Name
         Available for funding remittances?
         Available for payout of remittances?
         Type of fee (flat/percent)
         Charge (percentage) for the specific medium, if any
         effective dates (from, to)




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                                                                            Request for Proposal


5.2.7      Setup Products
5.2.7.1      Setup different remittance products that clients can choose with the following
             minimum information:

         Product Code
         Product Name
         Product Terms (simple transfer, verify ID, tax etc.)
         Available funding payment mediums
         Available payout payment mediums
         Product Charge type
         Product effective dates (from, to)

5.2.8      Setup Charge Type for Products

5.2.8.1      Setup different charge types for the products (the charge that clients will pay
             for using a particular product) with the following minimum information:

         Charge Code
         Charge Name
         Product Code for which applied (generic or user has the option to choose at the
          transaction level)
         Charge frequency (per transaction/monthly/quarterly/half-yearly/annually)
         Type of fee (flat or percentage of remittance value), and tiered fee code (indicating
          whether tiers are used, and how to interpret them)
         Amount of fee or percentage (by tier, if tiers are applicable)
         Minimum/Maximum Commission/Fee that can be charged at the user’s discretion if a
          user overrides the system calculated fee
         Charge effective dates (from, to)


5.2.9      Accounting
5.2.9.1      Allow SMT users to enter accounting transactions, providing the following
             minimum functionality:

         Enter banking transactions relating to Remittances – origination and payouts
         Enter cash transactions relating to Remittances – origination and payouts
         Enter adjustments


5.2.10 Automated Compliance
It is no longer a matter of local operations or process-driven methodologies that meet
regulatory requirements in the drive against money laundering. The challenge in anti-money
laundering now is to devise and enforce a risk-based strategy with appropriate technology that
includes effective standards to protect a financial institution being used as a vehicle by money
launderers or being used as a conduit by terrorists.


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To meet these challenges, we expect the solution to address the following:
      help in implementing appropriate controls and compliance procedures
      undertake customisation of AML solutions to meet specific needs of Money
       Transfer institutions, if not available already in the solution
      implement third-party AML solutions and integrate them seamlessly into the system
      provide an enterprise-wide, end-to-end solution to meet compliance requirements,
       from performing due diligence on customers (know your client), generating CTRs
       and SARs, detecting suspicious activity, using an ontology rule engine, case
       management, etc.

The standard AML framework should provide standard processes, trigger and risk rules, which
can be set at the system, SMT, agent or sub-agent levels. Lower levels should be edited to be
equally stringent or more stringent than higher levels to prevent overrides. As well, relevant
parameters such as transaction limits should also be assigned based on the jurisdiction of the
remittance origination and/or payment. Compliance features include, at a minimum:

5.2.10.1 Setup common definitions for high-risk customers

5.2.10.2 Allow dynamic generation of historical customer transaction profiles.

5.2.10.3 Setup global AML rules, e.g., amounts above which more stringent ID
         requirements must be met or reporting and authorization rules take effect,
         and maximum amounts per transaction and time period. Different rules for
         different jurisdictions should be configurable as well, based on the sending
         agent’s jurisdiction.

5.2.10.4 Use sophisticated algorithms            to    detect   patterns     in   addition    to
         transaction/product limits.

5.2.10.5 Setup common triggers/criteria.

5.2.10.6 Leverage investigations expertise already in place through alerts and
         reports.

5.2.10.7 Interfaces with global reporting systems, e.g., automatic filing of CTRs, and
         on-demand filing of SARs.

5.2.10.8 Generate analysis and follow-up reports.

5.2.10.9 Generate reports for local regulatory and corporate reporting, e.g., UAE’s
         monthly, quarterly, and annual reports.

5.2.10.10 Automated processes to block or close accounts where necessary.

5.2.10.11 Alerts about a black-listed client should appear as soon as the customer
          details are entered by the teller, and the appropriate actions should be
          initiated based on the compliance settings.




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                                                                      Request for Proposal


5.2.10.12 The system should immediately send information of such members to the
          network as per the agreed upon data sharing rules between the SMT, agents
          and sub-agents.




5.2.11 Remittance Tracking
The system should have a Tracking system to enable the user to track a particular remittance
transaction from the point of remittance to the point of payment with the following minimum
functionality:

5.2.11.1 Track the remittance with the transaction number.

5.2.11.2 Show the status of the transaction.

5.2.11.3 Enter and show the reasons for any delays.

5.2.11.4 Display the status history from the point of remittance origination to the
         point of payment.

5.2.11.5 No limitations on the number of transactions for tracking.

5.2.11.6 Transactions can be purged after a specified period of time (e.g., 5 years).



5.2.12 MIS / Reporting
The system should have a full fledged MIS system with the following reports, at a minimum.
No limits exist on the number of reports that can be generated:

5.2.12.1 Transaction Listing (Remittance and Payments)

5.2.12.2 Transaction Listing (Remittance and Payments) with commissions

5.2.12.3 Transaction Summary for a period of time by transaction type, by
         consolidating for SMT and sub-grouped for agents and sub-agents.

5.2.12.4 Transaction Detail for a period of time by transaction type, by consolidating
         for SMT and sub-grouped for agents and sub-agents.

5.2.12.5 Fee/Commission/Charge Summary for a period of time due from SMT,
         Agent, and sub-agent.

5.2.12.6 Fee/Commission/Charge Summary for a period of time due from SMT,
         Agent, and sub-agent, consolidating for SMT and sub-grouped for agents
         and sub-agents.



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UNDP Somalia / SOMTA                                  IT Solution for Somali Money Transmitters
                                                                          Request for Proposal


5.2.12.7 Teller Summary.

5.2.12.8 Cash flows.

5.2.12.9 Financial Statements such as Trial Balance, General Ledger, Income
         statement and Balance Sheet relating to the money transfer transactions.

5.2.12.10 Compliance and regulatory reports as required by local laws.

5.2.12.11 Report writer facility for the SMT staff to configure and generate some
          custom reports.

5.2.12.12 Automatic generation of Exception Reports on AML/CFT/Fraud
          detection/SAR/CTR.




5.2.13 External Interfaces
The system should have ability to interface to the following external systems, at a minimum:


5.2.13.1 External ACH and other financial settlement systems.

5.2.13.2 External Global AML systems, including OFAC and Black Lists.

5.2.13.3 External accounting systems.




5.3 At Agent/Sub-agent Level
5.3.1      Setup Sub-Agents
5.3.1.1      Agents with appropriate access rights can setup sub-agents with the
             following minimum information:

         Sub-agent code under the SMT and agent code
         Sub-agent Name
         Contact details (person/address/phone no, fax no, email)
         Operation effective dates (from, to)




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UNDP Somalia / SOMTA                                    IT Solution for Somali Money Transmitters
                                                                            Request for Proposal


5.3.2      Customer Relationship Management (CRM) – Setup Clients
5.3.2.1      Agents and sub-agents can setup clients with the following minimum
             information:

         Client code and password
         Client Name (first, middle, surname)
         Client’s mother’s maiden name
         Client’s ID type and ID relevant to each country of operation, and other specific
          regulatory compliance related information
         Contact details (permanent and present address/nationality/phone no, email)
         Source of funds
         Operation effective dates (from, to)


5.3.3      Remittance Origination Transactions
Agents/sub-agents can enter remittance transactions with the following minimum functionality:


5.3.3.1      Channel Delivery

         To choose the product
         Choose the remittance medium (cash/credit card/debit card/bank account/cheque)


5.3.3.2      Identification and Authentication

         Enter the ID required by the local country regulations
         Enter the ID of the Remitter as well as the ID of the Receiver
         The system will automatically initiate the compliance procedures by checking the ID,
          black lists, pattern detection, limits and ceilings relevant to the point-of-service (POS)
          country, destination country, SMT, agents and sub-agents.
         The system should automatically enforce the necessary processes such as SAR, CFT
          etc.
         The system should allow the teller to either proceed with the transaction even in the
          case of suspicion or to stop the transaction based on the relevant business rules setup
          relevant to the country of operation. An audit trail of suspicious transactions and the
          override reason must be kept.


5.3.3.3      Validation

         Trigger mandatory or on-request validation of the transaction by superiors if required
          because of a compliance warning or high amount




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UNDP Somalia / SOMTA                                   IT Solution for Somali Money Transmitters
                                                                           Request for Proposal


5.3.3.4      Scan Documents

         Allow the user to capture the ID and any other relevant documents for digital storage,
          and/or retrieval in case of an existing customer


5.3.3.5      Routing

         Allow the user to choose the Destination Country, Destination City, wherever
          applicable


5.3.3.6      Delivery Medium

         Allow the user to choose the mode of payment (cash/cheque/bank
          account/client pick up)
         Allow the teller to record what proof of identity is required before paying the
          receiver


5.3.3.7      Billing and charging

         Allow the teller to bill the client for the remittance amount and the charges related to
          the product/country.


5.3.3.8      Check balance and debit account

         Allow the teller to check the balance in the customer’s account if the remittance funds
          are paid from an online account
         Debit the customers account for the total amount of transaction


5.3.3.9      Send Remittance Advice

         Allow the teller to complete the transaction, which should initiate the transaction to be
          saved on the server
         Generate a Remittance Advice to the agents/sub-agents in the designated country
         In the case of a designated agent the remittance advice should be available only
          to the designated agent


5.3.3.10 Print Remittance Transaction

         Allow the teller to print all the relevant data of the completed transaction, including
          time and date of transaction, location, gross amount sent, commissions charged, net
          amount for beneficiary etc.




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UNDP Somalia / SOMTA                                    IT Solution for Somali Money Transmitters
                                                                            Request for Proposal


5.3.4      Remittance Payout Transactions
5.3.4.1      Receive Payment Request

         To enter the transaction id
         To enter the client id (receiver and sender)
         Choose the payment medium (cash/credit card/debit card/bank account/cheque)


5.3.4.2      Identification and Authentication

         Allow the user to enter the ID required as per the local country regulations
         The system will automatically initiate the compliance procedures by checking the ID,
          black lists, pattern detection, limits and ceilings relevant to the point-of-service (POS)
          country, destination country, SMT, agents and sub-agents.
         The system should automatically enforce the necessary processes such as SAR, CFT
          etc.
         The system should allow the teller to either proceed with the transaction even in the
          case of suspicion or to stop the transaction based on the relevant business rules setup
          relevant to the country of operation. An audit trail of suspicious transactions and the
          override reason must be kept.


5.3.4.3      Validation

         Allow the user to validate the transaction by superiors if required to validate the
          transaction


5.3.4.4      Scan Documents for Proof of Payment

         Capture the ID, a signature confirming payment, and any other relevant documents of
          the recipient for digital storage, and/or retrieval in case of an existing customer


5.3.4.5      Delivery Medium

         Allow the user to choose the mode of payment (cash/cheque/bank account/
          stored value card/client pick up)


5.3.4.6      Billing and charging

         Allow the teller to bill the client for the remittance amount and the charges related to
          the product, country as setup if charges applicable on payment transactions




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UNDP Somalia / SOMTA                                   IT Solution for Somali Money Transmitters
                                                                           Request for Proposal


5.3.4.7      Credit account

         Credit the customer’s account for the total amount of transaction, if an online payment
          medium is chosen



5.3.4.8      Send Payment Advice

         Allow the teller to complete the transaction, which should initiate the transaction to be
          saved on the server
         Make a Payment Advice and Proof of Payment available to the agents/sub-agents in
          the origination country


5.3.4.9      Print Payment Transaction

         Allow the teller to print all the relevant data of the completed transaction, including
          time and date of transaction, location, gross amount sent, commissions charged, net
          amount for beneficiary, etc.



5.3.5      Customer Relationship Management (CRM) – Remittance Tracking

5.3.5.1      Allow clients (sender and receiver) to track their remittances through an
             online retail Remittance Tracking System with following minimum
             functionality:

         with the option of making some processes mandatory:
         enter the Transaction/Track ID
         and password/client ID
         the system should display the status and all the stages it went through
         The system should display the reason in case of any delays/suspension


5.3.5.2      Allow agents/sub-agents to enter transaction status, activities (such as a
             phoning the recipient), and reasons for delays (e.g., the customer did not
             answer)




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UNDP Somalia / SOMTA                                  IT Solution for Somali Money Transmitters
                                                                          Request for Proposal


5.3.6      User Setup
5.3.6.1      Allow system administrators of SMTs, agents and sub-agents to setup users
             relative to their system access levels with the following minimum
             functionality:

         Make some processes mandatory such as change password after first log-in and/or
          after a particular period of time
         Choose the user groups and levels (system administration, management,
          accounting, teller, super user)
         Setup the functions that can be performed by the user
         Operation effective dates (from, to)



5.3.7      Backup & Restore
5.3.7.1      Very frequent automatic backups (please state the frequency).

5.3.7.2      Frequent delivery of backups to offsite storage (please state the frequency).




5.3.8      Back office Adjustments
5.3.8.1      The accounting staff of agents/sub-agents can make adjustments and
             rectifications with the following minimum functionality:

         with the option of making some processes mandatory :
         make changes in the transactions, if mistakes were made by teller
         make entries necessary for reversals and rectifications
         cancel/stop/void transactions before they have been paid
         Operation effective dates (from, to)



5.3.9      Accounting

5.3.9.1      Agents/sub-agents can enter accounting transactions with the following
             minimum functionality:

         Enter banking transactions relating to Remittances – origination and payouts
         Enter cash transactions relating to Remittances – origination and payouts
         Enter adjustments




 Annex VI: Terms of Reference                                                     Page 35 of 47
UNDP Somalia / SOMTA                               IT Solution for Somali Money Transmitters
                                                                       Request for Proposal


5.3.10 Reconciliations
5.3.10.1 Agents/sub-agents can make reconciliations with the following minimum
         functionality:

       Enter transactions for reconciliations



5.3.11 Automated Commission
The system should have automated commissions between the SMTs, Agents and Sub-agents,
but not limited to:


5.3.11.1 Allow the SMTs, Agents, and sub-agents to make entries for adjustments




5.4 Information Technology Requirements
The system should have the following features, at a minimum:


5.4.1    Transaction number, Track ID should be unique and the field width
         should be sufficient to support the number of number of agents and
         number of sub-agents and number of countries of operations.

5.4.2    The system should have sufficient capabilities to handle exceptions.

5.4.3    The database should have proper design to cater to the structure and
         business requirements.

5.4.4    In the case of Option A, the server should have enough storage capacity
         to handle the volume and complex nature of the SMT operations.

5.4.5    In the case of Option A, the data transmitted and accessed should have
         standard encryption with 128 bit SSL standards.

5.4.6    The system should have proper security features with audit trails.

5.4.7    The system should have facility for the users to setup business rules
         applicable to each country.

5.4.8    The system should allow the system administrators at each level to
         export the data that they have access to into Excel/Word and other
         common software.


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UNDP Somalia / SOMTA                                IT Solution for Somali Money Transmitters
                                                                        Request for Proposal


5.4.9    The Contractor should provide the complete database structure and
         Entity Relationship diagram.

5.4.10 The system should allow interfaces from other systems to enable data
       mining.

5.4.11 The system should be simple to operate, flexible and speedy in terms of
       transaction execution to provide efficient services to clients.

5.4.12 The system should have solutions for online and off-line transactions to
       provide real-time as well as solution for offices which do not have
       Internet connection or in cases of Internet being down.

5.4.13 The system should have a mechanism to address the transaction failures
       such that incomplete transactions are not entered onto the system.

5.4.14 The system should have System Administration module for setting up
       user rights and privileges and change password enforcement.

5.4.15 The system should begin sessions upon a user’s login, and automatically
       log them out after a set period of inactivity.

5.4.16 The system should have facilities to import black lists from third party
       vendors and also support internal black lists.

5.4.17 The system should allow the user to archive data for a specific period
       and purge data after specific period.

5.4.18 The system should have transactions at minimum 3 levels (SMT, Agent
       and Sub-agent).

5.4.19 The system provides free text note fields of unlimited length, including,
       but not limited to:

       notes to Receiver at the remittance level
       notes by System Administrator
       notes for Compliance at the customer and remittance levels
       general notes


5.4.20 The system should have an online help facility.

5.4.21 The system should have installation and application manuals for all the
       modules.

5.4.22 The system should have advanced search facilities for searching for a
       client name, ID, agent, sub-agent, and country.


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UNDP Somalia / SOMTA                           IT Solution for Somali Money Transmitters
                                                                   Request for Proposal


5.4.23 The system should have ability to share data as desired by the
       agents/sub-agents based on specific rules (e.g., custom blacklists).

5.4.24 The system allows quick and easy transaction with a minimum of
       keystrokes or carriage returns.

5.4.25 The system closes the transaction for payment after it is paid at the
       destination country to avoid double payments on each transaction.

5.4.26 The system should have complete Teller Management functions with
       Teller sessions, Teller security, teller limits, teller authorizations etc.

5.4.27 The Contractor should give a guarantee of minimum 99.9% uptime of
       connectivity with complete security and network infrastructure under
       option A.




5.5 Printing and Data Entry
The system:

5.5.1   Supplies full and current system documentation in print form.

5.5.2   Supplies full and current system documentation in online form.

5.5.3   Provides formatted templates and default values for online data entry.

5.5.4   Supports full screen editing.

5.5.5   Supports word processing capabilities.

5.5.6   Supports "cut and paste" from one record to another (from both local
        databases and outside sources).

5.5.7   Supports (accepts, edits, stores, retrieves, and displays)




5.6 Help and "Artificial Intelligence" Enhancements
The system:


5.6.1   should be designed to anticipate and prevent "errors" from occurring.

5.6.2   provides pull-down lists of options for searching and limiting.



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UNDP Somalia / SOMTA                                 IT Solution for Somali Money Transmitters
                                                                         Request for Proposal


5.6.3    ignores errors in spacing, punctuation, and diacritics.

5.6.4    displays a browse screen with the user's search argument in its proper
         alphabetical location in the index when a search retrieves no records.
         Describe the system's ability to suggest to the user possible courses of
         action.

5.6.5    provides full help system:

       brief instructions and examples on search screen.
       help is contextual.
       help can be read/scanned in its entirety.
       help can be printed, downloaded, and e-mailed.


5.6.6    sets no limit on results but alerts user if large set would be retrieved and
         offers suggestions for refining search.

5.6.7    supports variations in spelling, common abbreviations and acronyms,
         and singular/plural forms of words (e.g., color/colour, "&"/and, St.
         /Saint).

5.6.8    provides messages that are clear, concise, and easily understood by all
         levels of users.




5.7 Website Interface
The website interface for each SMT should be designed keeping in view the organizational
hierarchy of each SMT.
Under this hierarchy, SMT is at the highest level.
Under each SMT there will be multiple Agents, which is second level.
Under each Agent, there will be multiple Sub-agents, which is third level.


The system should adhere to the following guidelines:

5.7.1    The SMT home page will have links to various Agents, which will be the
         home page for each agent

5.7.2    The Agent home page will have links to its various Sub-agents, which
         will be the home page for each sub-agent

5.7.3    The client and the staff will have the access to the transaction
         screen/page through this hierarchy


 Annex VI: Terms of Reference                                                  Page 39 of 47
UNDP Somalia / SOMTA                                   IT Solution for Somali Money Transmitters
                                                                           Request for Proposal



In the following sections 5.8 to 5.15, Contractors must provide detailed explanations of
the functions or capabilities represented in each specification as requested.

5.8 Systems Administration
5.8.1    General
Describe how the system:
5.8.1.1 supports distinct databases that have separate profiles and security configurations.
Responses should include but not be limited to use by other sites or separate sites for staff
training/testing purposes and to share data files as well as money transfer defined resource
files.
5.8.1.2 supports export of data and authority records for an entire database, for selected
records, and for records added in a particular timeframe.
5.8.1.3 operates in a fully integrated manner, with all modules sharing a common database
(except as sites sharing the system may choose to maintain separate files) and a consistent staff
interface across all functions.
5.8.1.4 supports real-time system operations and capabilities to create, update, maintain, and
access all data for money transfer clients in real-time.
5.8.1.5 updates all indexes dynamically.
5.8.1.6 supports system availability for a continual 24 hour schedule.
5.8.1.7 supports system availability for staff for 24 hours per day.
5.8.1.8 supports continual backup to ensure that no transactions or data are lost.
5.8.1.9 allows the option for an unlimited number of concurrent user sessions for all members
of SOMTA community. If the system limits concurrent user sessions, describe when they are
initiated and terminated and how they are counted. If a staff member opens multiple windows
of clients, and this uses multiple licensed logons or sessions, describe how many concurrent
sessions would be necessary to support the configuration environments outlined in relation to
Option A & Option B as mentioned in section 4.0.
5.8.1.10 allows simple and quick movement between staff applications and Money Transfer
System.
5.8.1.11 supports customization of the number of records displayed, as a result of a search, at
the client level. If this is possible describe how it is done.
5.8.1.12 allows menu-driven (GUI) access to the staff side of the system.
5.8.1.13 allows the menu-driven approach to be bypassed with shortcut, quick keystrokes.
5.8.1.14 supports definition of macros and/or operator-programmed function keys.
5.8.1.15 supplies logical system-prompted commands in typical workflow situations if
necessary.
5.8.1.16 supports creation of date of record entry into system as well as additional date changes
to reflect latest update.




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UNDP Somalia / SOMTA                                  IT Solution for Somali Money Transmitters
                                                                          Request for Proposal




5.9 Maintenance and Support
Based on the configurations relevant to Option B described in section 4.0:
5.9.1 describe options for providing system support that can be administered centrally and in a
distributed fashion by SMT staff. See Section 6.3.6 (Cost - Maintenance and Support).
5.9.2 estimate the total number of staff required, their required expertise, and the tasks that
they would perform locally. For instance, if the proposed system requires local staff to modify
and compile software, this should be indicated. If a systems administrator with background as a
programmer/analyst is required to manage the system and hardware, this should be indicated.
Contractors should indicate who will perform installations, i.e., what type of SMT staff member
or Contractor staff person. Indicate the number of other staff expertise that might be required,
either during implementation or in production: Unix administrator, Oracle (etc.) expert, system
operator (day, evening, weekend), backup/batch job staff, etc.


Describe the support services including, but not limited to:
5.9.3 software upgrades and frequency of new releases. List a history of past release dates.
5.9.4 telephone support options (eastern time zone) and hours per day and days per week of
service availability. Include support schedule.
5.9.5 direct Contractor support of installation and troubleshooting of the system software.
Estimate installation support days provided.
5.9.6 direct Contractor support of installation and troubleshooting of required third party
software such as a commercial relational database package. Specify packages and support.
Indicate potential conflicts with release levels between what is used by the system and what is
currently marketed by the third party Contractor.
5.9.7 how priorities are assigned to customer support requests.




5.10 Software Considerations
Describe:
5.10.1 to what extent relational database or object oriented technology is used in the proposed
system. Identify any commercial database software and the supported release level used as part
of the proposed system.
5.10.2 the timeliness of software upgrades with regard to APPLICATION. Explain how
software is kept up to date with operating system changes. Are recompiles run by Contractor or
money transfer personnel?
5.10.3 options for customizing web pages. Describe any limits and restrictions.
5.10.4 how the system supports functions including, but not limited to, separate call number
systems, separate acquisitions defaults, and ability to profile overlay of imported records by
database or separate processing unit within a database.




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UNDP Somalia / SOMTA                                  IT Solution for Somali Money Transmitters
                                                                          Request for Proposal


5.10.5 how the system supports options for either sharing authority control functions
within/or among clusters of sites, or having separate authority control functions for a specific
SMT.
5.10.6 how new system releases are installed. Indicate what is installed by money transfer
systems personnel and by Contractor personnel.
5.10.7 how new releases are scheduled. Give current schedule of planned new releases.
5.10.8 the capability for unlimited licensing for software. Describe any limits on numbers of
client instance licenses and associated costs.




5.11 End-to-end Money Transfer Transactions
Describe how the system:
5.11.1 provides money transmission functionality. SMTs are open to proposals as to the design
of the Remittance function. Designs might include an actual database and indexes comprising
the individual databases, or a set of common indexes pointing to individual database records.
Any proposal requiring double maintenance of records in databases is unacceptable.
Considering the SMTs’ operational hierarchy, it may be necessary to design the database
specific to its needs.
5.11.2 retrieves records that show real-time holdings detail and transaction status.




5.12 Report Generation
Describe how the system:
5.12.1 includes a wide range of standard reports. Include samples of all pre-defined reports.
Customized reports can be generated with SQL/Report writer. If report generation is not
standard SQL, document this in detail. Describe any third party software required. Include
descriptions and samples of all pre-defined reports.
5.12.2 supports report generation to be immediate or to be scheduled in background.
5.12.3 supports extraction of entire database in a flat, or ASCII defined format.
5.12.4 produces graphical statistical reports.
5.12.5 generates location-based reports.
5.12.6 allows customized reports by date and record ID parameters.
5.12.7 allows for selection of data for report generation at the entire system level as well as by
administrative unit and transaction unit and other levels.




 Annex VI: Terms of Reference                                                       Page 42 of 47
UNDP Somalia / SOMTA                                    IT Solution for Somali Money Transmitters
                                                                            Request for Proposal


5.13 Security
Describe how the system:
5.13.1 includes a flexible, multilevel, money transfer staff security authorization control
capability.
5.13.2 allows an appropriately authorized staff person to examine and alter the authorization
levels for other staff persons in a group of sites or a single site without needing the assistance
or involvement of the Contractor or central system management personnel.
5.13.3 allows each Operator staff or department manager to establish and maintain a separate
set of passwords and authorized functions for their staff.
5.13.4 allows only authorized staff to view and modify security definitions.
5.13.5 grants create and update privileges at the logical record level, so for example, certain
staff can be authorized to update item records.
5.13.6 restricts work on authority records, transaction records by SMT or by agent/sub-agent
5.13.7 prevents unauthorized access (either external or internal) to system management
functions and files.




5.14 Training
Training for the proposed system will follow a training of the trainer model. Two types of
designated staff will be trained: functional support staff will be provided training in the
operation of the system for participating SMTs; and system administration support staff will be
provided training to operate and maintain the system hardware and software.


5.14.1 Training Methodology
Describe any functional and/or systems administration support training the Contractor
requires of money transfer operations staff.

Describe the courses of training provided to enable the staff to become familiar with system
functions and operations, including, but not limited to:
5.14.1.1 a list of all deliverable training modules.
5.14.1.2 whether instructors are available to train on-site.
5.14.1.3 maximum number of trainees per class and the total number of days of training for
each module.
5.14.1.4 whether it is possible to purchase additional training days.
5.14.1.5 availability of other training aids such as videos, software tutorials, or Web-based
instruction.
5.14.1.6 availability of computer-based training.



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UNDP Somalia / SOMTA                                   IT Solution for Somali Money Transmitters
                                                                           Request for Proposal


Indicate if training sessions for systems administration cover topics, including, but not limited
to:
5.14.1.7 appropriate administrative functions including supervisory override procedures such as
data backup and restoration.
5.14.1.8 common causes of system failure and the remedy for each.
5.14.1.9 how to obtain telephone support for the correction of system problems.
5.14.1.10 how to identify and perform all elements of preventive maintenance of the system not
routinely performed by the Contractor.
5.14.1.11 installation and support of client software applications if any
5.14.1.12 how Contractor tracks problems and assigns severity priorities.



5.15 Optional Modules

The modules mentioned under this section are desirable to have but not mandatory. If the
Contractor’s system includes the following desirable modules please describe the system briefly:
5.15.1 Full fledged accounting module
5.15.2 Forex Management module
5.15.3 Multiple languages, especially Somali and Arabic
5.15.4 Offline Transactions for agents who do not have Internet connectivity and/or when
Internet is down
5.15.5 Date, Time setup for various agents and sub-agents as they operate in different
countries and zones
5.15.6 Deposits Management (only deposits and withdrawals)




 Annex VI: Terms of Reference                                                     Page 44 of 47
UNDP Somalia / SOMTA                                   IT Solution for Somali Money Transmitters
                                                                           Request for Proposal



6     COST SUMMARY

6.1     Separate cost quotes for each Option listed in Section 4.0
This Section is structured in the following categories in order to ascertain cost comparisons
among the proposed bids. All items in this Section must be completed by insertion of a cost
figure, a notation that it is a non-applicable item (N.A.), or furnished at no charge (N.C.). If a
particular cost item is bundled, indicate where it is included. Indicate clearly if a particular cost
item is not deliverable. Contractors failing to furnish complete cost data will be considered
non-responsive.

6.1.1    Cost - Software
6.1.1.1 Functional Mandatory Modules as per section 4.2
6.1.1.2 Functional Optional Modules

6.1.2    Cost – Installation and Implementation
6.1.2.1 Hardware, web server, firewalls (hardware & software), security configurations, database
profile
6.1.2.2 Application software installation and system initialization
6.1.2.3 Implementation cost for the 10 initial SMTs

6.1.3    Cost - Training/Documentation
Quote costs for:

6.1.3.1 providing functional training to 25 support staff. Indicate the type of training to be
included and whether training is done on-site or off-site.
6.1.3.2 providing systems administration training to 10 support staff.
6.1.3.3 providing additional functional training.
6.1.3.4 providing additional system administration training.
6.1.3.5 providing a complete set of user and system manuals covering all operations and
functions to support configurations relevant to Option A & Option B mentioned in section
4.0. Indicate if format of the documentation (print, CD-ROM, web access) impacts the price.
6.1.3.6 each additional set of documentation.
6.1.3.7 documentation upgrades.

6.1.4    Cost - Maintenance and Support
The Contractor will be expected to provide direct support to all the SMTs via assigned contacts
at each one. Indicate how costs for maintenance and support would be impacted by the
different options and provide the following:

6.1.4.1 Describe the different levels of maintenance support (hardware, software, network,
telephone, on-site visits, hours of guaranteed emergency response, etc.) and list the associated
costs on an hourly, weekly, or flat fee basis.
6.1.4.2 Indicate ongoing software enhancements that are provided and any associated recurring
or one-time charges.



 Annex VI: Terms of Reference                                                        Page 45 of 47
UNDP Somalia / SOMTA                                  IT Solution for Somali Money Transmitters
                                                                          Request for Proposal


6.1.4.3 Indicate the money transfer management software maintenance costs for years one(1),
two (2), three (3), four (4), and five (5).


6.1.5    Cost - Additional Costs
List any additional costs that have not been provided for in the preceding categories. For
example, since it is not known exactly how many SMTs will participate in this project UNDP
Somalia/SOMTA will need flexible pricing and will need to know when there are other charges
that apply to the host sites for servers as well as individual SMT participants. For instance, if
there are 4 additional SMTs each with 100-250 agents/sub-agents, are there additional charges?

Please provide costs of third party systems if proposed as part of your solution.

Any cost which is not included as part of Financial proposal will not be allowed if claimed later
on during contract negotiations or afterwards.


6.1.6    Cost - Data Centre Service (applicable to Option A only hosted in
         Dubai)
6.1.6.1 Monthly charges for Internet data centre hosting, server hardware, software and
24x7x365 technical support services, including web server, database server, application server,
network routers and switches, load balancers, firewalls, and data storage. The services should
include Network firewall, IDS (Intrusion Detection System); Disaster Recovery; Data Backup;
Network and Server hardware/software installations, configurations, monitoring and
management; Data Recovery in cases of failures.


6.1.7    Warranty
The Contractor is expected to provide a warranty for a minimum period. Please specify the
warranty period and terms and conditions associated with it.


6.1.8    Definitions
6.1.8.1 define specific terms or phrases, such as "simultaneous users," stated in the price lists.
6.1.8.2 indicate how terms or phrases identified in Section 6 are determined for calculating
costs.




 Annex VI: Terms of Reference                                                       Page 46 of 47
UNDP Somalia / SOMTA                                IT Solution for Somali Money Transmitters
                                                                        Request for Proposal


                                        Appendix A

                                          Glossary

SOMTA – Somali Money Transmitters Association
SMT – Somali Money Transmitters, who are members of SOMTA
Agent – a representative operating under a SMT as a franchisee and providing money
transfer services
Sub-agent – a sub-representative of an Agent providing money transfer services
AML – Anti Money Laundering
CFT – Combating the Financing of Terrorism
SAR – Suspicious Activity Report
CTR – Currency Transaction Report
OFAC – Office of the Foreign Assets Control
bid proposal = bid response.
bidder = contractor, offerer, proposer, vendor.
deliverable = the software must be shown to be functional both by demonstration and by
existing references who have the application in production at their sites.
dynamic = in reference to indexing done in real-time, so that all changes are reflected
immediately in all modules.
product = shall include, without limitation: any piece or component of equipment, hardware,
firmware, middleware, custom or commercial software, or internal components or subroutines
therein which perform any date/time data recognition function, calculation, comparing or
sequencing. Where services are being furnished, e.g., consulting, systems integration, code or
data conversion or data entry, the term "product" shall include resulting deliverables.
processing unit = technical services unit within a sites' system, which maintains own data
records.
required = mandatory, must, shall.
screens = displays that are generated by the client software and are understood to indicate MS
Windows client screens, Web Pages, as appropriate.
SC = Steering Committee
staff = staff members of the SMT (and its agents/sub-agents) sites.
status codes = codes that indicate conditions such as "open," "in process," or "fully
completed."
system = proposed integrated money transfer system software implemented in any
configuration with any number of participating SOMTA-wide sites.
third party product = shall include product manufactured or developed by a corporate entity
independent from Contractor and provided by vendor on a non-exclusive licensing or other
distribution Agreement with the third party manufacturer. "third party product" does not
include product where Contractor is: (a) a corporate subsidiary or affiliate of the third party
manufacturer/developer; and/or (b) the exclusive re-seller or distributor of product
manufactured or developed by said corporate entity.
user = any money transfer patron accessing the Proposed System or staff functions through
workstations within the sites or remotely from offices, homes, and other sites.
Contractor's product = shall include all product delivered under the agreement resulting from
this RFP by Contractor other than third party products.




 Annex VI: Terms of Reference                                                   Page 47 of 47

								
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