AIPRD Australia-Indonesia Partnership for Reconstruction and Development Jakarta May 2005 Presenters ic, Djamaludin Abubakar, MSc. BAPPENAS Mark Collins, AusAID Bob Shackley, AusAID Joanna Perens, AIPRD Representative Office Objectives of this seminar to inform Indonesia: based companies about AIPRD to inform about the procurement processes that wll be followed " to alert you to future tener opportunities to provide guidance on how to bid for AIPRD work Presentation Outline: What is AIPRD - Australia Indonesia Parzrerehip for Reconstruction ana Bevelopment AIPRD’s tendering process ‘The Managing Contractor Mode! Future Activities | How to Bic for AIPRD Tenders Question Time Eee About the AIPRD Www.ausaid.gov.au AIPRD - Overview A shift from emergency ald and humanitarian relief to tng term recanstroction stbilion over 5 years 500 milion - Grants 500 milion - Pighly concessional loans fagitonal to Austall's existing ald program wth will use some of the same delivery mechanisms ha aid management arrangements EaAIPRD - Aims avelbBevent oceans syons tsunam ‘ireered arene ‘A strong focus on partnership ‘A strong focus on transparency and accountability ‘An emphasis on economic and social development ‘and Indonesia's programs of reform and ‘amocratsavon AIPRD - Governance Joint Commission isthe peak decision mating body aersee” by PM Howard and resident Yuaniyono ghd compnées Foreign Ministers and Economie Minster from each Country Principal mandate: + set broad strategic directions 2 eESBIEN Key priors fr Kinng 1 Sgree msjorsctinGae 9 8o Lr AIPRD = Joint Management and Procurement Arrangements for ative implemented under bot the loan an Srantcomponcn Indonesian oat il ue includ in orleck management ond montening ON Australian, Indonesian and New Zealand Companies eligible to compete for funding AIPRD - Joint Management and Procurement Arrangements ‘Australlan of New Zealand firm = organisation GSreving on business in Australia or RZ Indonesian firm = an entity carrying on Business tn Endonesiay stabiistied th accordance with Indonesian laws and Fesuletions ‘an Indonesian incorporated compan must have majority local ownership Shareholding AIPRD ~ Grant and Loan Components ‘Actual yeerly expenciture wil depend on oint CSmmiésion dastanions and how the Government SFindonesia chooses to draw Gown loans Initial activites funds under the grant component Will support urgent rehabiitation wore in Rech ‘The loan component ig currently being designed and will commence following the negstouon of © formal ian Agreement Stach vo. AIPRD - Early Priorities for Funding Early activities to be funded from the grant Gomponert as agreed at the frst Jot Commission ‘metry 2, Relabiltate hospital and restore health and abcetion services and focal governterit services in Resi: up to $50m. 2. The Government Partnerships fund up to $50m to support the exchange of sl Khowissge and ekportse betwesn Austral Government agentes and thelrindones.an ‘Government eounierparis in economic and finanaal mansgemer snd puslc somintrationAIPRD - Early Priorities for Funding 3, Dieser preparedness and post csastor ierabiltaicn and reconswuctbas Lp ta $5m for urgent rehabilitation assistance {other areas of indonesia outside Aceh {yp to $20m to programs te further develog IMhuonda's own Systane for maneging ond responding & the impact of natural casters Rehabilitation, Reconstruction of "Tsunami Affected Areas Boppenas recently completed the Indonesian Masterplan for Rehabilitation and Reconstruction of Tsunami Affected Areas {An Implementing Authority Badan Pelaksena Rehebilitas! dan Revonstruksi (BRR) has been establishes and wll plement the Masterplan asterplan developed in consultation with Indonesian Government agencies, Uke Wrta Bang, Asan Development ai latrl corre ord Acenese Masterplan for Reconstruction in Aceh and Nias Emergency Maren 05 Rehabitation Apa 05 ~ June 08 Reconstruction July 06 ~ Dec 03 Cost of rehabltston/constructon phasas: $7.4 bilion Main sectors: housing, ervironment,transpert, Industry and trade, "ood contol fisheries Long Term Partnership |AIPRD is long term partnership Fupaing willbe allocated and projects disbursed over 3 Paar perio ‘The challanges ere to ensure that: Indonesia's proces are supported Tinere is erectve coorainaton wih other donors “Projects ore soundly desgred ana have lasting impactAIPRD’s Tendering Environment ‘The AIPRD Tendering Environment ‘The AIPRD tendering processes are based on AUSAID's standard tender process but differ in the folowing matters: -Close involvement of indonesian counterparts Srgughout the process and inky easion making Broadening of eligibility criteria to tender to ‘Specifically include Indonesian firms Joint Management and Procurement ‘Arrangements res mmreer fears pte tat (eceaaaeeneth tA act, ee eohartntetens By iene ‘Tenders for the AIPRD will be conducted in tndonesia $B enhanes appartuniies for the partlpelar of. Indonesian private sector firms and to fectate joint ‘management arrangements Standard Tender Process (12-16 weeks) advertisement of tender (0) to alert tenderers to 2 new tender opportunity Sind the publication of the Request For Tender -RFT pre-tender briefing (2) {9 provide tenderers with explanation of the specific ferder process and te provide mare dst, Information asou the program and wrt belng sought ‘tender clarification period (5-6) this s the formal period during which tenderers may Seek Clanneaton ir wring Ea ‘Standard Tender Process (12-16 weeks) close of tender (7) “This date ig notified in the RFT. Tenders must be lodged on tive and must be complete tender assessment (10) Tg ovotves conform hen read ieciical ond eapobity esscsamete by a Technical an spsesemer of value fox Maney. Sand Wwotishopsin some instances Personnels ‘Standard Tender Process (12-16 weeks) notification af results (preferred tenderer) (11) Float sporoya) of Tab recoramenton Ft ranks busder le noted ms the proferea Unsiccsistul tenderers are also notified et this time ‘negotiation of contract (11-12) Financial vebiity elecking and negotiation of = Contract follows ain, successful, 8 contrac IS Swarded mobilisation (13-14) The successful contractor will be required to mobilise Rey personnel stan agreed date oepaar supine al ends f tend preparton re Rau e -all tender documentation is available free of charge once tenders are lodged changes or additions are not permitted -do not communicate with anyone other than the nominated contact officerts) sany breach of procedures could result in disqualification cool ‘The tender process fs conducted in strict confidence EAPPENAS & AUSAID wil follow an ethical selection roves based sally on Value for Money ane echnical Mere ‘There fs no room for inappropriate practices such as Bie colesion rte ‘Tender opportunites wlll be advertised in Indonesian ng Austielion newspapers Kompas Tae Taacea Post ‘The Wieekend Australian ‘Austender website ‘Wivee-26eh org ane vu websites re-tender briefings will be held in Indonesia ‘Technical Assessment Panels (TAP) wil also be held Iningonests AusAID Tendering Projects velued above AUD'00,000 ~ epen tender Tendering environment i highly competitive Contractor expt to manage projet 2nd ide techiical an management personnel Ba undertake procurement of 200s Sub-contracting opportunities AIPRD emphasises partnerships ~ think ‘bout this when considering relation: Between Australian/New Zealand and Indonesian firms Ea Tender Assessment "Value for money’ is key criteria ‘Sometimes achieved through a technical price ascessment where overal score comprises: Technical assessment = 70-90% Price assessment = 10-30% Technical proposal evaluated against solection Greria by TAP Cansiders the past performance ofthe company and fominated IndvisuslsThe Managing sontractor jodel Managing Contractor Model ‘One organisation managing a number of activities on behalf of AusAID ‘= Emphasis on management = Little or no implementation Managing Contractor Model Contracting Models = Many different contracting models different management responslities for contractor Implementation vs management = Aceh Rehabilitation Program likely to draw ‘on the “managing contractor model” = Other models may be used for future AIPRD projects = —] Managing Contractor Model Retna PeaManaging Contractor Model MC role may include: lose relationship with AusAID Running tender processes for subcontractors Management of subcontractors ‘Managing activities which are contracted by AusAID Managing Contractor Model Skills of 2 managing contractor: Emphasis on managoment ‘Some sectoral expertise may be required (check the RFT) Don't forget the opportunities for subcontractors Managing Contractor Model Planning for future ectivitios Priortizing activities and resources Liason with relevant Govt of Indonesia agencies Coordination with other AusAID managing contractors Coordination with other donors Managing Contractor Model ‘Tendering process: ‘AusAID advertises tender for MG contract RFT explains what sklls are required ‘Tenderors may be asked to nominate: "personnel for key positions = “an organization as one of the subcontractors Fee must be nominated by tenderer [RFT wil explain what must be included in the foo EaFuture Activities Future Activities Hospital Restoration Restoration of Zeinael Abidin Hospital Joint cooperation wit Gorman Government land hospital administration Activities may include ‘© Renablation of damaged bulsings Training tah Re-stailchrent of hospital acministaon yetone Le] Future Activities + AIPRD Activities ‘Acch Rehabileton Program Remainder of grants and loans progrem (Incenesia wide) Consult tre AusAID website regularly Future Activities Ith Sector Assistance Restoring and developing provincial, ‘community & tertiary health service delivery Activites may incude: In-corvie an eo-cervice taining Restoration of essen inastruetue Provision of eulpment Future Activities ‘= Aceh Rehabilitation Program ‘AS0milion allocated by the Joint Commission ‘AS 10nBlon: hospital restoration ‘AS 15min: haath + AS{Smiin: education + $10mlin: lca government Future Activities Education Sector Assistance Restoration of education services, particulary for primary and seconciary school ‘students Assistance across education sector ~ ‘emphasis on istamic education sub-sector Activities may include + Reconstucontoturbishment of schoo! blinge FRe-esabishing administrative ystems {= Assistanca fr teachers turing to woetfores Provision of taching and learring maleFuture Activities «Local Government Sector ‘Working wth provincial agencies lo support restoration and development Assistance to sub-district and vilage level ‘governance ‘Activities may incude: ‘= Rabubngeturbishing community infrectstire Provision of equipment + Capacity bung Community land mapping Future Activities = Concept Papers ‘Aceh Rehibiliation Program ~ no detailed designs Important role for MC in: * lanaing & Kontfying actos * consulting with Gaverment of Indonesia ‘agencies, donors and AUSAD. Future Activities + Contracting ‘3 managing contractors, 1 foreach sector (neath, education, governance) Subcontracts for each sector ‘Other contacts wil support the sectoral programs, Induding = Constreton Procuromont& logitHow to bid for AIPRD tenders Important Strategies (contd) = Adopt a strategic and focused approach by targeting specific activities where you have expertise Understanding AusAID Is Important (treat AusAID as a client) Network with other companies / consultants (Goint venture or consortia bids are common) Ea as Session overview Important Strategies (contd) = Important Strategies in conducting + Bidding Is @ highly competitive process business with AUSAID and bidders must take a medium to long term view. + Preparing and writing bids Read key publications such as Contracting + Presentations and Interviews Out, Business Participation in the Aid program and Hints for New Players « Where do we advertise Important Strategies Take advantage of early warning ‘opportunities on the AusTender AusAID web sites www tenders.gov.au Important Strategies (contd) 1 After the tender process, please seek a debrief / feedback on your Bid + Nominate key personnel for service on TAPS + Do provide all information that has been asked for + Do not provide Information that has not been askes for EaHints on Proposal Writing General Comments * Read the documentation carefully « Directly address the selection criteria and substantiate your claims + Place emphasis on the weightings + Subject your bid to quality control / review the document = Don't be shy. If you are not certain ask a question during the tender period Hints on Proposal Writing (contd) «Ifyou wish to submit an alternative methodology you must subst 2 conforming bid first and Include the alternative in a separate annex to your bid Personnel + CV's should be provided for key personnel dented n your bid. Focus on the skis require + Provide referees who can comment on the nominee's experience and their claims against the selection criteria Hints on Proposal Writing (contd) = Don't make claims that you can't back up = Provide data sheets that are relevant to the activity being assessed Management Arrangements = Clearly and explicitly identify your proposed management inputs as well as a ‘management framework Hints on Proposal Writing (contd) Prices « Prices submitted with bids must reflect the cost of undertaking the work. AUSAID is not interested in proposals from bidders that de not adequately resource the task Hints on Proposal Writing (contd) Methodology & Approach » Demonstrate original thought when addressing methodology and approach. Do not repeat what has already been provided «= Specifically identify and think about project risks and spell out how these will be managed Presentations and Interviews «= Bidders must keep their presentation focussed and within the allocated timeframe « Your team must fully understand your proposal += Take the opportunity during the presentation to expand on the key aspects ‘of your approachWhere do we advertise? Internet = AUSAID Website usaid, gov.au\business\tendé » AusTender won, tenders.gov.2u Where do we advertise (contd)? Newspapers = Weekend Australian = Jakarta Post www thejakartapost.cor = Kompas