TOR for Commercial Services Consultancy – SOS

Introduction

SOS Children’s Villages in Kenya is a member Association (MA) of the SOS Children’s Villages International (CVI) Federation. SOS Children’s Villages in Kenya is a child-focused Non-Governmental Organization established in 1973 to provide care and support to children who have lost or are at risk of losing the care of their biological family. The organization’s vision is Every Child belongs to a family and grows with love, respect and security and its programmes are driven by the mission of “building families for children in need, helping them shape their own futures and sharing in the development of their communities”. In this regard, the organization works to reduce poverty; increase access to quality education and decent work; reduce inequalities and build strong institutions as laid out in Sustainable Development Goals (SDGs) 1, 4,8,10 and 16. This is done through programmes that are geared towards addressing the political, economic, health and social root causes that lead to high levels of child vulnerability and put families at risk of breaking down. The programmes focus on Alternative Care, Family Strengthening, Youth Empowerment, Education, Health Care and Advocacy. The mission of SOS Children’s Villages Kenya is to build families for children in need, help them shape their own futures and share in the development of their communities.

Purpose

SOS Children’s Villages in Kenya was placed in the new sustainability path in January 2022. This means that SOS Children’s Villages in Kenya is currently weaning out of international subsidies and is expected to sustain its operations 100% from its local income by 2030. By the end of 2025, 65% of the organization’s annual budget is expected to come from local income.

As of June 2023, SOS Children’s Villages in Kenya is funding its operations with 18.4% local financing. This means 81.6% of the total budget is coming from international sources. The organization must therefore urgently set itself up to reach its financial self-sufficiency target of 65% in two (2) years and 100% in seven (7) years. Asset optimization based on its strong asset base is a low hanging fruit towards this self-sustainability journey.

Objectives

The objective of this assignment is to engage a qualified firm/individual to support and provide guidance to SOS Children’s Villages in Kenya in matters related to sweating of assets which include land, buildings and several other assets.

Expected outcomes/deliverables

1. 1. Map out and prepare a report, in order of value from high value to low value, of all organization assets across six (6) operational hubs – National Office in Nairobi, Children’s Villages in Nairobi, Mombasa, Eldoret Meru and Kisumu.
   2. Prepare an expert opinion report on major investment needs and return on asset opportunities, major risks facing key organization assets in each of the six (6) hubs.
   3. Conduct a review of, and prepare a report on current organization structures and gaps, commercial practices and gaps, internal policies and procedures and gaps (Finance and Procurement Policies), and opportunities from these necessary to realize organization potential for optimal returns on assets.
   4. Prepare a comprehensive report of findings and recommendations on the best route for each high value asset to give the organization optimal net returns.
   5. Prepare a report of a three (3) to five (5) year financial forecast for the proposed best return on assets route in bullet 4 above.
   6. Review and prepare a report of recommendations on suitable organization structures, asset optimization key deliverables, asset optimization key result areas, asset optimization key policy and procedures including necessary alterations on existing policies and procedures necessary to enable optimal use of organization assets.

Qualification/ Experience

• • Master’s Degree in Valuation and Property Management, Masters in Business Management or related disciplines with 10 years’ experience in the said fields
  • Bachelor’s Degree in real estate or business management with 15 years’ experience in the said fields
  • Solid knowledge of performance reporting and financial/budgeting processes
  • Commercial awareness partnered with a strategic mindset.
  • Excellent communication, collaboration, scheduling, project management, financial analysis, economics, and mathematical skills organizational and leadership skills
  • Outstanding communication and interpersonal abilities
  • Public-private partnership experience in commercial real estate is an added advantage.

Criteria for Proposal Evaluation

Qualified and interested bidder shall submit a technical proposal addressing the services requested and detailing how they will meet SOS Children’s Villages in Kenya requirements. The proposal will be reviewed according to the following criteria.

Criteria Marks (100)

Technical approach. 60
Qualification 10
Financial Proposal 30
-Cost effectiveness of the proposal

The Technical Proposal should not exceed five pages and should demonstrate knowledge and understanding of the tasks set forth above as well as the firm(s)/Individual capability perform the assignment. The technical proposal should include.

• In-depth description of the firms/individual experience with assignments of a similar nature.
• Description of the methodology proposed in undertaking the assignment.
• Number of days for preparation and completion of the assignment.
• Copies of updated CV’s of the Lead Consultant and the proposed team members who will be undertaking the assignment.

The following information is required as part of the technical proposal:

• Any information about the firm/individual that presently or with the passage of time could impair the candidate’s ability to provide the level of service required.
• Statement to certify that all the information provided in the bid is, to the best of the firm’s knowledge, accurate and complete, and understand that any misleading or false information may result in disqualification of the firm at the sole discretion of SOS Children’s Villages Kenya.
• References – listing previous contracts of similar nature, providing a brief description of each.
• Tax compliance certificate/ Pin certificate
• Requisite industry certification and registration where necessary.

Financial Proposal

The financial proposal shall be evaluated according to the price/fee schedule proposed and will account for 30% scoring of the total combined scoring. Financial proposals to be submitted in electronic form in **Kenya Shillings (**KES) in the format normally used by the interested firms and it must provide sufficient details to allow cost comparison and assessment. The firm must, indicate the cost of;

• • Consultant fees.
  • Travel/transportation.
  • Other direct costs.

Additional Due Diligence

Upon completion of both the technical and financial evaluations SOS Children’s Villages Kenya may choose to engage in additional due diligence processes with a particular offeror or offeror (s). The purpose of these processes is to ensure that SOS Children’s Villages Kenya engages with reputable, ethical, responsible suppliers with solid financials and the ability to fulfill the contract. Additional due diligence may take the form of the following processes (though it is not limited to):

• • Reference Checks
  • Supplier’s facility visits
  • Analysis of audited financial statements
  • Determination of relations and affiliations between bidders.
  • Call for virtual/physical presentations
  • Other appropriate documented method giving SOS Children’s Villages Kenya increased confidence in the supplier’s ability.

The period of the consultancy is 4 months from the time of contract award.