Request For Proposal - Consultancy to assist the review of UNOPS provident fund scheme for individual contractors

New clarification added: Clarification #13.Question 1. Is UNOPS expecting to also conduct a plan design review e.g. comparison of plan design element such as contribution levels, vesting, eligibility and so on? or is the RFP only pertaining to the structure i.e. the set up of the framework?Answer 1. These elements may be included in the benchmarking under outputs of LOT 1.a. - “Provision of a (text) report comparing the current setup to best practice;“. It is not the purpose of this consultancy to change personnel entitlements. 

New clarification added: Clarification #12Question 1. We are still not clear on Form E who the references should be from. Are the references from previous employers? Please can you clarify. Answer 1. References are proffesional references from previous employers, ideally supervisors.

New clarification added: Clarification #11Question 1. Please confirm if the documents need to be signed with a wet signature or whether an electronic signature will suffice. Answer 1. Yes, electronic signature will suffice. 

New clarification added: Clarificaiton # 10Question 1. In Form E you ask for references. Are these references for the individual team members i.e. from an HR function or are these references from clients i.e. two clients that each individual has worked on a similar project with? Answer 1. The references are for the individual team members.

New clarification added: Clarification #9 Question 1. In case you have any legal questions/issues, how do you approach this? Do you have an internal legal advisor or do you require external legal advisory as part of the assignment?Answer 1. UNOPS has an internal Legal department that provides legal advice in the areas of public international law, commercial law and administrative law. For example, they will provide legal review of the contracts awarded as a result of LOT 2. Please provide further context, in case this doesn’t answer the intended question. Question 2. Could you please confirm who is responsible for managing incoming/outgoing flows into the funds?Answer 2. UNOPS collects the incoming funds through the payroll and forwards them to the fund administrator. The outpayment is managed by the fund administrator, with the support by UNOPS as required.Question 3. Who is responsible for the liquidity management for the funds? Answer 3. Contributions into the provident fund are deducted with payroll and forwarded to the fund administrator for the purchasing of units, there is no internal liquidity management for the fund.Question 4. Who is reponsible for Financial Risk Management and Operational Risk Management for the funds?Answer 4. UNOPS Provident Fund Committee, who receives investment advice from an external investment advisor.Question 5. Is there a Compliance function for the funds? Who is responsible for it?Answer 5. There is no UNOPS compliance function for the funds, but part of this role is played by the fund administrator and the investment advisor. Compliance falls under the provident fund committee. 

New clarification added: Clarification # 8Question 1. Regarding form B, we would like to propose the following wording is amended to: a.       We offer to supply in conformity with the Bidding documents, including the UNOPS General Conditions of Contract (subject to reaching agreement on certain changes to the General Conditions (e.g. in relation to limitation of liability) as highlighted by us in our RFP response) (and in accordance with the Schedule of Requirements. Please confirm if this would be acceptable to UNOPS.Answer 1. UNOPS will use its standard contract "Contract for Professional Services" along with the UNOPS General Conditions for the provision of services. If the bidder believes that certain additional provisions/deviations are needed in order to perform the services for UNOPS, they should include it in their proposal. UNOPS may evaluate the requested deviations during the evaluation stage. If the requested deviations are acceptable to UNOPS, UNOPS may consider negotiating the requested deviation with the successful bidder before the contract award.

New clarification added: Clarification # 7Please see below our questions regarding the General Conditions of Contract (for the provision of services):Question 1. There is no limitation of liability provision in the Contract and is mandatory "Company x" Policy that all of our contracts include an appropriate clause limiting out liability in respect of the engagement.  Our standard approach is to offer a liability cap of £2m for this type of engagement, which we would need to include as an additional clause in Article 5 of the Agreement (a new Article 5.4) or Article 6 (a new Article 6.9). Please confirm if this is acceptable. Answer 1. UNOPS will use its standard contract "Contract for Professional Services" along with the UNOPS General Conditions for the provision of services. If the bidder believes that certain additional provisions/deviations are needed in order to perform the services for UNOPS, they should include it in their proposal. UNOPS may evaluate the requested deviations during the evaluation stage. If the requested deviations are acceptable to UNOPS, UNOPS may consider negotiating the requested deviation with the successful bidder before the contract award.Question 2. In relation to IP,  we would need to add some clarifying language to Article 9 making it clear that "Company x"  would own all IP that we use or develop as a result of providing any of the services to UNOPS. Please confirm if this is acceptable. Answer 2. No. As stated under item 6 in “Section II. Schedule of Requirements -RFP_2024_50718 Provident Fund Advisory Services” document: “All reports and documents produced as a result of this consultancy are the property of UNOPS”, therefore UNOPS retains the IP. Question 3. The are certain aspects of the Insurance requirements that "Company x"  would not be able to comply with, including Articles 6.3 (in relation to the “cross liability”), Articles 6.5.1 and 6.5.2 (re being named as an additional insured and waiving rights of subrogation)).  In relation to Article 6.7 "Company X" would not be able to provide UNOPS with copies of our Insurance Policies but would be fine to provide a broker’s certificate to confirm that insurance was in place. Please confirm if this is acceptable. Answer 3. UNOPS can agree waiving 6.3 (“cross liability”), as well as 6.5.1 and 6.5.2 (additional insured and waiving rights of subrogation). As for 6.7., UNOPS is fine with a Certificate of insurance (broker’s certificate).Question 4. In relation to Article 2.6 there is a requirement that "Company X"  meet the UNOPS's employee screening requirements. "Company X" comply with our own requirements and only when employees become employees and not after that (e.g. because an individual(s) may work on a particular client engagement). Please confirm if this is acceptable.Answer 4.  Article 2.6 relates to accessing UN property or premises, in which case any of "Company X" employees would need to undergo or comply with our security screening requirements.Question 5. There is no governing law referred to in the Contract – Please confirm what this is. Answer 5. The Contract shall be governed by the UNIDROIT Principles of International Commercial Contracts (2010) and, with respect to issues not covered by such Principles, by generally accepted principles of international commercial law, to the exclusion of any national system of law.

New clarification added: Clarification # 6Question 1. Clause 3.1.1. of the ‘Instrument of Agreement’ document refers to special conditions in Annex 1, but Annex. 1 states that the special conditions are “Not Applicable”, can UNOPS confirm that no special conditions apply to this Contract?Answer 1. UNOPS will use its standard contract "Contract for Proffesional Services" along with the UNOPS General Conditions for the provision of services. If the bidder believes that certain additional provisions/deviations are needed in order to perform the services for UNOPS, they should include it in their proposal. UNOPS may evaluate the requested deviations during the evaluation stage. If the requested deviations are acceptable to UNOPS, UNOPS may consider negotiating the requested deviation with the successful bidder before the contract award.Question 2. Clause 3.1.2 of the ‘Instrument of Agreement’ document references the General Conditions of Contract in Annex. 2. The link in Annex. 2 redirects to the main landing page of the UNOPS ‘Supplier Resource Centre’ and not to a specific document. Can UNOPS please provide a copy of the General Conditions of Contract to review or confirm whether the document referred to in Annex. 2 is the UNOPS Conditions of Contract version July 2017?Answer 2. The General Conditins of Contract were included in Section “Documents” at the time the RFP was published as follows: 5. RFP_Section_IV_1 Contract FormsUNOPS-General-Conditions-Services-2017_EN.PDF.Question 3. Clause 3.1.4 of the ‘Instrument of Agreement’ refers to the UNOPS solicitation document at Annex. 3, but not document is provided at Annex. 3. Can UNOPS please confirm that the solicitation document is not applicable to this Contract or provide a copy of the relevant solicitation document to review.Answer 3. Annex 3 is the Schedule of Requirements which is the Document published in “Documents” Sections as follows: 2. Section II. Schedule of Requirements -RFP_2024_50718 Provident Fund Advisory Services .docx.pdf. 

New clarification added: Clarification # 5Question 1. Can we receive all the provident fund plan documentation which includes the regulations about the defined contribution scheme?Answer 1. This will be provided to the selected supplier as part of the review. Question 2. How does UNOPS take into account  legal and pension legaslation in each country where the ICA is located with respect to the execution and regulations of the UNOPS defined contribution scheme?Answer 2. UNOPS enjoys privileges and immunities due to its status as a subsidiary organ of the United Nations, and is therefore not subject to any national/local legislation.Question 3. To what extent is there a distinction in the excecution and regulations of the defined contribution scheme between countries where ICAs work? If applicable, please elaborate per country or region the difference in regulation that apply compared to the basic plan.Answer 3. UNOPS enjoys privileges and immunities due to its status as a subsidiary organ of the United Nations, and is therefore not subject to any national/local legislation.Question 4. What is the difference between LICA and IICA employees with regard to the defined benefit pension scheme separate from mandatory/voluntary participation and monthly contribution?Answer 4. As stated in section 1 of ‘Section II. Schedule of Requirements -RFP_2024_50718 Provident Fund Advisory Services’ document:LICA - Mandatory participation in the provident fund with 7.5% of their monthly salary. They are also able to make an additional voluntary contribution of up to 7.5%. UNOPS contributes an extra 15%. IICA - May choose to voluntarily contribute up to 15% of their monthly fee to the provident fund. Question 5. What is arranged for the LICA and IICA employees in the event of death? Please elaborate for the situation  during employment and after the pension date.Answer 5. In case of death, the contribution + returns shall be paid to the nominated beneficiary or beneficiaries.Question 6. What is arranged in the event of disability? Please elaborate for the situation  during employment.Answer 6. This is managed in line with UNOPS HR processes, and will be disclosed for the selected supplier, as relevant.Question 7. What is the retirement age? Can you please elaborate what happens when an ICA reaches the retirement age. For example please explain how the build up capital is exchanged into a pension and which institute executes this.Answer 7. The UNOPS Provident Fund is a defined contribution scheme (not a pension scheme) and is linked to employment at UNOPS. Upon separation from UNOPS, the Provident Fund will be paid out within 6 months from separation from UNOPS. Question 8. What happens with the capital in the defined contribution scheme when an ICA leaves employment? How are fiscal rules in  countries regarding transferring capital taken into account?Answer 8. The value of the scheme is paid out to the exiting member within 6 months from separation from UNOPS. The member is liable for any tax consequences.Question 9. Which internal or external party executes the current pension scheme, incurs contributions, invests contributions and returns, provides risk (insurance) and pays out benefits?Answer 9. UNOPS currently has two external suppliers for Provident Fund: a fund administrator and an investment advisor. Question 10. What information is available about the investment policy? Taking into account the life cycle (e.g. what are the investment choices for ICAs and how flexible is this system during employment).Answer 10. The Provident Fund is managed under Statement of Investment Principles that defines the profiles of 4 different funds offered to the members. The organizations contributions are invested in a defensive fund, and the members may change the allocation of their own contribution from the defensive fund to any of the three other funds as often as they wish.Question 11. In the schedule of requirements document (see: 2. Section II. Schedule of Requirements -RFP_2024_50718  Provident Fund Advisory Services) we read in section 1 'Background' about the  contributions together with any returns which are mandatorily withdrawn within 6 months of separation from UNOPS. Where is this capital transferred to? How are fiscal laws and regulations taken into account for the country where the ICA is located?Answer 11. UNOPS receives the withdrawal amount from the Investment Manager company and disburses it to the departing employees. Any local tax consequences are borne by the departing employee, who is personally responsible for determining their own tax obligations, and obliged to report any positive interest to the tax authorities in accordance with the local legislation.Question 12. In the schedule of requirements document (see: 2. Section II. Schedule of Requirements -RFP_2024_50718  Provident Fund Advisory Services) we read in section 1 'Background' about exceptional withdrawals. Can you please elaborate what you mean with exceptional withdrawals.Answer 12. Once per calendar year, in exceptional and compelling circumstances related to medical emergencies, Provident Fund participants are allowed to request an exceptional withdrawal up to 80% of their own contribution. The cases are reviewed individually and the authorization is at the sole discretion of the Provident Fund Committee (PFC).Question 13. In the document '3. RFP_Section_III_Returnable Bidding Forms - RFP_2024_50718' in Form D: Technical Proposal Form in section 1.2 we are asked to deliver input on: Criteria: BID encompasses LOT 1 and LOT 2. Can you please provide further explanation what we need to fill in here?Answer 13. It’s a YES or NO question. In case you are bidding for both Lots, you would write YES, if you are bidding for only one out of the 2 lots, then you would write NO. 

New clarification added: Clarification # 4Question 1. LOT 2 is in relation to the RFP of the Providers. You ask about the 'fund advisor' role. Please confirm whether the 'fund advisor' is the consultant that will support UNOPS through the RFP or whether this is the investment advisor (the entity that will advise on the investment aspects)?: Answer 1. Fund advisor in this context means the investment advisor, the entity that will work together with the investment manager entity and advise UNOPS on investment aspects for the provident fund scheme. It is not the consultant selected through this procurement process, and the consultant will not be able to bid for the contract for fund advisor as part of the subsequent RFP (please see item 6.a of Section II. Schedule of Requirements -RFP_2024_50718  Provident Fund Advisory Services document).

New clarification added: Clarification 2Question 9. Please clarify the pricing approach. Do you expect LOT 1 & LOT 2 to be evaluated as fixed price assignments? Since the outcome of LOT 1 is unknown, will you be open to receive a fixed price offer for LOT 1 and a time & material offer for LOT 2?Answer 9:  Please refer to Form C: Financial Proposal Form included in RFP_Section_III_Returnable Bidding Forms - RFP_2024_50718 document which requests the Total financial proposal for both lots to be given as a lumpsum, therefore fixed price offer. 

New amendment added #1: Amendment #1.1.  The new deadline to submit proposals is 20 March 2024.2. The new deadline for request of clarifications is 15 March 2024.

New clarification added: Clarification 1 (cont.)Question 9. Are you able to share the latest membership data which shows nationalities and locations of the members?Answer 9. Please, see below.Duty Station Country# of ResourcesMyanmar 406Denmark 162Ethiopia 161Thailand 147Afghanistan 142Nicaragua 130Central African Republic 107Haiti 102Kenya 102Jordan 94Democratic Republic of the Congo 90Mozambique 85State of Palestine 83South S udan 78Argentina 77Philippines 66Ukraine 64Yemen 63Serbia 62Somalia 60Switzerland 57Guatemala 55Brazil 53Pakistan 53Sri Lanka 50United States of America 47Panama 45Costa Rica 44Iraq 40Cambodia 38Uzbekistan 38Syrian Arab Republic 36Sierra Leone 34Paraguay 33Honduras 30Peru 30Nepal 29Tunisia 29Bangladesh 27Austria 26Senegal 26Indonesia 25Niger 25Mali 23Mexico 22Lebanon 21Guinea 20Colombia 19Madagascar 19Zimbabwe 19Georgia 18Albania 17Papua New Guinea 17Spain 17Sudan 17Ghana 16Lao People's Democratic Republic 15Burkina Faso 14India 13Kosovo (under UNSCR 1244/99) 13Benin 12Germany 12Nigeria 12Cameroon 11Uruguay 11Uganda 10Mauritania 9North Macedonia 9United Republic of Tanzania 8El Salvador 7Viet Nam 7Canada 5Djibouti 5Gambia 5Libya 5Armenia 4Belgium 4Fiji 4France 4Guinea-Bissau 4Liberia 4Romania 4Rwanda 4Maldives 3Montenegro 3Samoa 3Togo 3Western Sahara 3Zambia 3Barbados 2Belarus 2Belize 2Bhutan 2Botswana 2Burundi 2Cabo Verde 2Chad 2China 2Côte d'Ivoire 2Cuba 2Eritrea 2Greece 2Italy 2Jamaica 2Kazakhstan 2Kiribati 2Kyrgyzstan 2Lesotho 2Malawi 2Malaysia 2Mongolia 2Morocco 2Palau 2Saint Kitts and Nevis 2Saint Vincent and the Grenadines 2Solomon Islands 2South Africa 2Türkiye 2Vanuatu 2 

New clarification added: Clarification #3Question 1. Do you have any preferences for the location of our proposed team?Answer. No. Question 2. Linked to the previous question, will you require any in person attendance at meetings (e.g. at your HQ in Copenhagen), or will all meetings be virtual?Answer 2. Meetings can be done virtually as the Provident Fund key personnel are not only located in Copenhagen, but also in Bangkok.Question 3. Will you allow any changes to the Contract for professional services and/or General Conditions of Contracts (i.e. documents 5 and 6)?Answer 3.  Please clarify the intended changes. Given the deadline for the RFP, most likely it won’t be possible. Question 4. Have you previously carried out a review of your provident fund? If yes, when and did it result in any material changesAnswer 4. The only review was done in 2014 when the provident fund was initially established.     Question 5. The scope stated we should provide recommendations on the future setup of the provident fund, to meet the objectives from the UNOPS personnel management perspective. Please can you confirm what the key objectives are? Are they consistent to your website here Mission. Vision. Purpose. | UNOPS, or are there any specific objectives you have in mind for the fund?Answer 5. These objectives will be disclosed as part of the review.Question 6. Do you have an approximate split of the number of employees between LICA and IICA?Answer 6.   International Individual Contractors (IICA) = 7.39%; Local Individual Contractors (LICA) = 92.6%Question 7. Regarding Question 7 in the questionnaire: ‘Has your firm been in continuous business of supplying similar services during the last 5 years prior to bid opening date’. The response option requires a numerical response; do you need the number of years our firm has been in continuous business of supplying similar services?Answer 7. Yes, that is correct. Question 8. With regards to Form D: Technical Proposal Form. Do you require our response to be in this format, or can we submit a response using our own formatted document?Answer 8. For standard comparison, please submit the proposal as indicated in the form. However you’re free to also submit any additional documentation you believe might strengthen your BID.  

New clarification added: Clarification #2Question 1. Which different service categories in the current situation are distinguished by the UNOPS Provident Fund?Answer 1. It is not understood what “service categories” means in this connection.Question 2. How many kind of service providers/ suppliers are selected per category in the current situation and what kind of services/activities are you currently outsourcing or you would you like to outsource?Answer 2.  It is not understood what “service categories” means in this connection. UNOPS has one supplier for funds administration and one supplier for investment advisory for the current Provident Fund.Question 3.  How many (internal) FTE work for UNOPS Provident Fund organisation? If available, please share with us the UNOPS Provident Fund organigram.Answer 3.  Total: 1.7 FTEShared Services Delivery - 1.2 FTEHuman Resources Management - 0.2 FTE Financial Management - 0.3 FTE Question 4. What kind of activities are performed by the internal staff of UNOPS Provident Fund organisation?Answer 4. Shared Services Delivery: Managing the external operations with Provident Fund administratorDay-to-day support to members with enrollment in the plans, out-payment reports, exceptional withdrawals, Portal access and general questionsInterface with payroll regarding out-payment and monthly contributionsHuman Resources Management: Internal policy creation and advice regarding eligibility for participation and benefits claim, as well as vesting rules. Provident Fund Committee memberFinancial Management:Chair/Co-Chair of the Provident Fund Committee which is  responsible for the general strategy of the Provident Fund and the governance of its funds. Secretariat of Provident Fund Committee - responsible for:managing the external business relationships with Provident Fund administrators/advisors and managing the internal financial/operational processes related to Provident Fund non-earmarked contributions, Exceptional withdrawal and Committee meetings.providing financial reconciliation between UNOPS corporate financial statements and provident fund statements.Question 5. Scope of LOT 1. Which processes or subjects are in scope of the assignment?Answer 5. All processes encompassing the provident fund scheme (end to end) process. i.e. (but not limited to): governance, structure, roles & responsibilities, investment principles, procedures.  Question 6. Which legal/ jurisdictional framework is applied for provident fund?Answer 6. As a UN organization, UNOPS is not subject to any national legal framework.  It operates under the authority of the UN General Assembly and its own Executive Board, and within its own framework, specifically the UNOPS Financial Regulations and Rules, which govern the financial management of all resources administered by UNOPS, unless otherwise stipulated therein.The services provided by the selected Fund Administrator to UNOPS will be governed by a contract for services between UNOPS and the Fund Administrator, with (among other relevant documents) the Terms of Reference, the Financial Terms, and the UNOPS General Conditions of Contract for Services forming part of the contract. Of course, in providing its services, the Fund Administrator will be required to comply with any other legal obligations that apply to its activities; within its industry; and within its country of registration. Internally, the Provident Fund would be managed by a dedicated UNOPS Provident Fund Committee, (composed of a Chairperson, two UNOPS corporate members, and between two to five members representing PF-participants) responsible for the general strategy of the Provident Fund and the governance of its funds. The Provident Fund Committee will prepare the Statement of Investment Principles, monitor contract compliance, raise issues of non-compliance, and make relevant recommendations and/or proposals to UNOPS leadership, as required, with a view to safeguarding the interest of UNOPS and its fund participants.Question 7. What kind of information will be provided during LOT 1 to prepare our analysis? We will expect a combined desktop research approach and interviews including different UNOPS members from different departments to take place as a part of LOT 1 activities.Answer 7. The selected supplier will get access to the relevant documents related to governance, structure, roles & responsibilities, investment principles, procedures, etc at the onset of the assignment. The supplier will also have access to key personnel and should expect to conduct interviews.Question 8. Scope of LOT 2. Please clarify the timelines for LOT 2. Answer 8. Upon UNOPS management decision regarding LOT 1 recommendation (estimated: beginning of May), the supplier will receive the go-ahead and is expected to provide outputs a, b and c from LOT 2 within 2 weeks and output d commencing 3 weeks after this (with the participation in the evaluation panel and contract development) and lasting until no later than October 2024 with the end of the transition to the new set-up scheme with the chosen administrator and investment advisor.

New clarification added: Clarification 1. (Cont.)Question 8. What is the typical duration of an individual contractors employment contract with UNOPS?Answer 8.  As of 31st December 2023 the average tenure for International Individual Contractors is 4.6 years. The average tenure for Local ICAs is 4.4 years.

New clarification added: Clarification 1(cont.)Answer 9 (cont.) Algeria 1Angola 1Antigua and Barbuda 1Bahamas 1Comoros 1Dominica 1Dominican Republic 1Egypt 1Finland 1Gabon 1Grenada 1Guyana 1Iran (Islamic Republic of) 1Israel 1Marshall Islands 1Micronesia (Federated States of) 1Namibia 1Norway 1Republic of Moldova 1Saint Lucia 1Seychelles 1Singapore 1Sint Maarten (Dutch part) 1Suriname 1Sweden 1Tajikistan 1Timor-Leste 1Trinidad and Tobago 1Turkmenistan 1United Kingdom of Great Britain and Northern Ireland 1Venezuela (Bolivarian Republic of) 1Question 10. You state that members are present in more than 80 countries. Are members paid in the local currency of the country they are based?Answer10. It depends on the type of contract. Local individual contractors are paid in local currency and their contribution to the Provident fund is converted to USD using the UN official exchange rate of the day of payment, while International individual contractors are paid in US dollars. The Provident fund is managed in USD. Question 11. Do UNOPS pay contributions to the provident fund from a single source or multiple sources? If multiple sources, how many?Answer 11. UNOPS transfers the monthly contributions to the fund administrator from a single source.

New clarification added: Clarification 1Question 1. What organizations would UNOPS classify as peer organizations?Answer 1.  Peer organizations would include other international organizations.Question 2. What fundamental issues have arisen that created the necessity to analyze and reform the current provident fund?Answer 2. The provident fund was first introduced at UNOPS in 2014, which means that in 2024, the provident fund has been in place for 10 years. This is considered a relevant point in time to review the provident fund.Question 3. You mentioned the purpose of the review under Lot 1 would be to meet the objectives from the UNOPS personnel management perspective.  Can you share these objectives at this stage?Answer 3. These objectives will be disclosed as part of the review.Question 4. Can you describe the current administration and governance model of the provident fund?Answer 4. The UNOPS provident fund is governed by a Provident Fund Committee and administration takes place across business units that are involved in human resources management, financial management and shared services delivery. Detailed information will be provided as part of the actual review.Question 5. Is there a maximum budget or a limit the UNOPS has for this project?Answer 5. This information may not be provided as part of the procurement process.Question 6. Can you confirm if the current plan is a trust based arrangement or contract based arrangement?Answer 6. Currently, UNOPS has a corporate level agreement for Provident Fund, and individual members have their individual accounts with the funds administrator. Question 7. Can you confirm the percentage split of the membership between local individual contractors and international individual contractors?Answer 7. International Individual Contractors (IICA) = 7.39%; Local Individual Contractors (LICA) = 92.6%Question 8. What is the typical duration of an individual contractors employment contract with UNOPS?Answer 8. We are getting this information and can be shared afterwards.