TERMS OF REFERENCES (TOR)

CONSULTANCY TO ESTABLISH COST/PRICE REASONABLENESS FOR SOS CHILDREN’S VILLAGES-TANZANIA PROCUREMENT SERVICES

Introduction

SOS Children’s Villages Tanzania is a non-governmental organization affiliated to SOS Children’s Villages International, a worldwide childcare and protection organization that provides orphaned and destitute children with a permanent home and education opportunities. Established 70 years ago, SOS Children’s Villages International – the umbrella organization currently has Children’s Village Programme, which has two main arms i.e. Family Based Care based at SOS Children’s Villages and Family Strengthening Programmes supporting families in local communities. We have been operating in Tanzania for more than 25 years in the 4 regions: Dar es Salaam, Mwanza, Arusha, Iringa (including Mufindi), Zanzibar and Pemba.

To ensure the organization gets the better deals and services at the reasonable price possible, the organization plans to conduct wide cost/price analysis to improve its procurement processes. The assignment will make SOS Children’s Villages realise the Value for Money (VfM).

Purpose/Objective

To streamline its procurement lifecycle that includes planning, sourcing, managing and strengthening internal control, SOS Children’s Villages aim to conduct cost analysis to establish indicators for price reasonableness. The process that will enable SOS Children’s Villages Tanzania get and determine a price that is, fair and reasonable to the organization considering the quality, delivery, and other factors such as timeliness. The analysis will help the organization gauging current market prices; procurement spends in the past 3-5 years and price forecasting for the next 3-5 years.

As stated in the introduction, the attainment of that will help the organization get the best overall Value for Money in all of the procurements. In addition, with the procurement process that will be both transparent and impartial, the organization will position itself to achieve reliably quality services from suppliers, services providers and consultants.

To achieve value for money rather than just focusing on the lowest bidders, other key criteria such as the cost of quality service/goods will be considered. So are others such as delivery time.

The analysis will cover the following Procurement Categories of which SOS Children’s Villages commonly undertake..

Categories of procurement to be considered

• Goods
• works
• Consultancy and Non-consultancy services.

Key tasks

• Conduct a spend analysis for procurements by SOS Children’s Villages. This will involve collecting, analyzing and classifying data for different procurement categories for the past 3-5 years to help determine optimal cost.
• Establish a financial cost profile that will include estimates of annual cost categories for each SOS Children’s Villages procurements.
• Review and examine the suppliers and services providers costs to develop estimates/price list/catalog for each procurement category (goods, services and works) in the next 3-5 years.
• Assess suppliers and services providers to help the organization understand factors that determine price reasonableness.
• Undertake market analysis to generate knowledge of how the supply market works, its status, direction and the competitiveness of the players that include suppliers and the services providers available.

Note: The work should be completed in 10 working days.

Key Deliverables

1. A well-written analytical report that include;

• Supply market analysis to assist in budgeting, procurement planning, sourcing and execution.
• A price forecast for the next 3-5 years for all procurement categories.
• Price list/catalog for each procurement category procured within SOS Children’s Villages.
• SOS Children’s Villages procurement spend analysis covering the past 5 years (for all procurement Categories)

2. Develop and share appropriate tools relevant in cost/price analysis work for future internal use of SOS Children’s Village future.
3. Share the skills to SOS Children’s Villages staff to ensure future update of price database.

Minimum Qualifications

The firm/individual must have at least the following:

• A procurement consultant with a Bachelor’s/Master’s degree in procurements/supply chain, business, accounting, finance, or economics
• At least ten years of experience in establishing cost analysis, supply chain management, or corporate and Non for Profits procurements.
• Familiarity with Non for Profits procurements and the supply market
• Capacity to develop tools to valuating supply markets
• The ability to undertake cost analysis that will help the organization be in line with market trends
• Strong capacity to produce analytical report that is based on data and statistical evidence