Historique

Value for money

Value for money analysis assesses whether the programme has bought inputs of the right quality and price (economy), how well inputs are converted into outputs (efficiency), what impact the outputs are having (effectiveness) ,and how much impact the project has had relative to the cost of the inputs (cost effectiveness). VFM is assessed through the following quantitative measures where applicable: cost benefit analysis (CBA); unit costs; and efficiency savings. Assessing VFM is a continual process of comparison to cost benchmarks and current practice/costs and seeking/achieving improvements to these.

The most recent DFID Annual Reviews of UNDP projects noted that the projects continued to provide good value for money.  However, it has been challenging to provide such evidence of value for money for specific projects.  Specifically, one of the projects, Urban Poverty Reduction Programme, is entering its final year of operation. The Review also stated the project completion review should include a comparison of the measures of efficiency (e.g. cost per household reached, cost per household supported with intensive package of support and cost per town supported) with similar projects elsewhere.

In general UNDP follows its own long established rules and regulations which are in line with the Generally Accepted Accounting Principles (GAAP) and other international standards. By and large the core governing principle of UNDP is to obtain the best value for money.  UNDP has organized a series of consultations on strengthening the value for money.  Specific recommendations have been developed which include:  creating a VfM framework to be applied systematically by projects and programmes; convene a team of practitioners on VfM from UNDP, DFID and possibly other UN agencies or donors to review and comment on the VfM framework as an input to business case development, and provide a brainstorming platform for future VfM initiatives, impact assessments to collect additional evidence on results, to feed into the VfM assessments.  UNDP has drafted a framework on value for money and needs to revisit and strengthen such framework.

UNDP would like to implement a full value for money assessment (cost-benefit analysis) for key projects, which include Urban Poverty Reduction Programme.  In addition, lighter assessment on value for money will be completed for four other projects (covering specific parts of the project) based on a methodology to be determined in advance with the consultant.  These include projects focusing in the areas of: Disaster Management; Elections, Access to Justice and Police Reform programme.

Devoirs et responsabilités

Objectives:

To support the UNDP in measuring its value for money performance and select number of projects and to train UNDP projects on value for money.

Scope of work and expected outputs / deliverables:

The consultant is expected to support UNDP Bangladesh in providing concrete evidence on value for money and strengthen the capacities on applying value for money systematically across all projects.  The consultant will focus primarily on providing value for money assessment for UPPR.  In addition, lighter value for money assessments will be completed for other four projects focusing on disaster management, police reform, access to justice and elections.

The consultant’s work will have the following scope:

• Review project documents and data;
• Undertake analysis in line with key research questions to be finalized in consultation with UNDP;
• Prepare report in line with key research questions and provide corresponding spreadsheet analysis;
• Deliver training.

The consultant is expected to examine DFID’s framework on value for money (and other possible frameworks) and assess on value for money under the following (but not limited to) indicators:

 Economy

• Assess whether UNDP selected projects displayed the requisite financial rationality and responsibility in its transactions
• Inspect the transactions to assess the economy aspect, especially the followings:
• Savings
• Administrative costs (or support costs) as percentage of total costs;
• Weighted average daily fee rates for consultants;
• Percentage of use of local technical assistance;
• Gather evidence on process measures used, such as anti-corruption training for staff, cost sharing opportunities with other programmes, etc.

Efficiency

• Budget execution rate;
• Spend against each town and output in the reporting period;
• Cost of reach per beneficiary;
• Cost per result at output indicator level;
• Unit costs of the physical infrastructure menu of activities (benchmarked and presented as trend information where possible);
• Cost per town supported with settlement improvements (trend info comparing 2012, 2013 and 2014; and/or comparing to similar programme such as Urban Governance Infrastructure Improvement Project 2);
• Research completed on time/budget; and,
• Gather evidence on programme processes or specific examples during reporting period which potentially impact on efficiency

Effectiveness

• Assess whether selected UNDP projects have achieved  objectives using a certain amount of resources within a certain time frame;
• Assess whether there is an optimum relationship between the resources applied and outputs (Cost Benefit Analysis of distinct project components));
• Averting and/or leveraging costs of services;

Evidence

• Consultant must have necessary and sufficient evidence to support observations. Evidence may take a variety of forms. It may be: - Statistics, comparisons, analyses, rationale etc. developed by the Consultant;
• Obtained by direct inspection or observation. Wherever possible, it would be better to obtain photographs or videotapes to support such observations;
• Copies of actual documentation.

Expected deliverables will include:

•  Inception report outlining approach to value for money and questions including a review/revision on the existing framework for UNDP (utilizing DFID approach and other key donors approach on value for money) (3 days);
• Value for money analysis and reports for UNDP selected projects in the areas of urban poverty, elections, police reform, disaster management, access to justice and aid effectiveness (78 days);
• Completed one-day training for all 35 UNDP projects (showcasing the value for money assessments of the UNDP selected projects and training participants on how to conduct value for money for their specific projects) and provision of dedicated technical guidance and support to ensure value for money is framed in the formulation and designing of the next phase of UNDP selected projects (5 days).

 Supervision and Performance Evaluation:

The consultant will work under direct supervision of the Head of Results and Resource Management Cluster (RRMC) in close consultation with Project Managers of UNDP selected projects. The Head of RRMC will certify the deliverables.

 Timeframe and deadlines:

 The work is estimated to require 86 working days from October 2014 to January 2015. This position is home-based with two missions to Bangladesh (for 21 days each) inclusive of travel days.

 Inputs:

 UNDP will provide all necessary data and contacts. UNDP will provide transport to project offices and office space as required. UNDP will not provide a laptop.

Tentative Payment Schedule:

• 30% of the contract amount upon approval of inception report, including training material;
• 30% after completion of training;
• 40% of payment upon approval of final reports.

Compétences

Corporate Competencies:

• Demonstrates integrity by modeling the UN’s values and ethical standards (human rights, peace, understanding between peoples and nations, tolerance, integrity, respect, results orientation (UNDP core ethics) impartiality;
• Promotes the vision, mission, and strategic goals of UNDP;
• Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability.

Functional Competencies:

• Knowledge and experience with programming development, monitoring and evaluation;
• Consistently approaches work with energy and a positive, constructive attitude;
• Demonstrates openness to change, flexibility, and ability to manage complexities;
• Ability to work under pressure and with multi-disciplinary and multicultural teams and possess excellent inter-personal skills;
• Demonstrates strong written and oral communication skills;
• Remains calm, in control and good humored even under pressure;
• Proven networking, team-building, organizational and communication skills;
• Ability to establish priorities for self and others, and to work independently.

Qualifications et expériences requises

Academic Qualifications:

• Master’s degree in economics, finance, public policy or related disciplines from recognized university.

Experience:

• Minimum 5 years of working experience in undertaking cost-benefit/effective/utility analysis and/or value for money studies with international development projects;
• Previous experience of delivering training on cost-benefit/effective/utility analysis and/or value for money studies with international development projects;
• Previous experience of providing management advisory services on value for money at international organizations or development agencies.

Language Required:

•  Excellent speaking and writing in English.

Evaluation of the Candidates:

Individual consultants will be evaluated based on the following methodology:

Cumulative analysis: The candidates will be evaluated through Cumulative Analysis method. The award of the contract will be made to the individual consultant whose offer has been evaluated and determined as:

• Responsive/compliant/acceptable; and
• Having received the highest score out of a pre-determined set of weighted technical and financial criteria specific to the solicitation.

Only candidates obtaining a minimum of 49 points our of 70  in the technical evaluation would be considered for Financial Evaluation.

Technical Evaluation Criteria (Total 70 marks):

• Previous experience of undertaking at least five separate value for money studies with international development projects (40 marks)
• Previous experience of delivering at least two value for money trainings with international development projects (30 marks)

Financial Evaluation (Total 30 marks)

All technical qualified proposals will be scored out 30 based on the formula provided below. The maximum points (30) will be assigned to the lowest financial proposal. All other proposals received points according to the following formula:

 p = y (µ/z)

where:

p = points for the financial proposal being evaluated

y = maximum number of points for the financial proposal

µ = price of the lowest priced proposal

z = price of the proposal being evaluated

Financial Proposal:

Total lump sum:

The financial proposal shall specify a total lump sum amount, and payment terms around specific and measurable (qualitative and quantitative) deliverables (i.e. whether payments fall in installments or upon completion of the entire contract). Payments are based upon output, i.e. upon delivery of the services specified in the TOR.  In order to assist the requesting unit in the comparison of financial proposals, the financial proposal will include a breakdown of this lump sum amount (including travel, living allowances, and number of anticipated working days).

Travel:

All envisaged travel costs must be included in the financial proposal. This includes all travel to join duty station/repatriation travel.  In general, UNDP should not accept travel costs exceeding those of an economy class ticket. Should the IC wish to travel on a higher class he/she should do so using their own resources.

In the case of unforeseeable travel, payment of travel costs including tickets, lodging and terminal expenses should be agreed upon, between the respective business unit and Individual Consultant, prior to travel and will be reimbursed.

Documents to be included when submitting the proposals:

Interested individual consultants must submit the following documents/information to demonstrate their qualifications:

•  Personal CV that provides a detailed description of pervious relevant experiences and technical expertise pertaining to this particular assignment.