REQUEST FOR PROPOSAL

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1 suo uns x4-sha Food WC# and 406 Agriculture Organization of the United Nations REQUEST FOR PROPOSAL Procurement of Service Providers for the Provision of Auctioneer Services for the UN and Subsidiary UN Organs in Sri Lanka through a Long Term Agreement (RFP-FAO/LTA/Auction/2017) In order to achieve further time and cost effi ciency from economies of scale while ensuring outstanding quality of service, the United Nations Country Offi ce and its subsidiary organzations (UN) in Sri Lanka wishes to enter into a Long Term Agreement (LTA) with the most competent auctioneer to serve all its auctioning requirements. Auctioning, as referred to in the TOR, shall apply to auctioning of vehicles, generators, offi ce furniture, ICT equipment or any other asset belonging to the UN and subsidiary organizations. For this purpose, the Food and Agriculture Organization of the United Nations (FAO) on behalf of the United Nations wishes to contact auctioneer Service Provider/s on a long term basis to provide the auctioneer services as per the Terms of Reference (TOR). The main objectives of this exercise are to maximize revenues from disposals while adhering to the highest level of transparency and accountability. The LTA will be established initially for a one year period, extendable to four additional years based on satisfactory annual performance appraisals by UN agencies. To this effect, the Food and Agriculture Organization of the United Nations (FAO) Country Offi ce in Sri Lanka wishes to call for Request for Proposals from qualifi ed auctioneer Service Providers to provide the required services. The TOR detailing the exact requirements, evaluation criteria and fi nancial consideration formats are available for download free of charge from A pre-bid meeting will be held on 24th March 2017 at a.m. at FAO Conference Room at , Bauddhaloka Mawatha, Colombo 07. Bidder participation is highly encouraged. Any service provider who submits a proposal without conforming to the solicitation document terms and conditions will be considered as technically non-compliant and the proposal will be rejected. All proposals must be clearly marked with (RFP-LTA/ Auction/2017) on the top left corner of the envelope. The deadline for submission of the bids is 31st March 2017 at 4.00 p.m. Sri Lanka time and all proposals must be sealed and delivered to the addresses below. All late proposals will be rejected and returned to the bidder unopened. Procurement Service Food and Agriculture Organization of the United Nations , Bauddhaloka Mawatha, Colombo 07, Sri Lanka. FAO reserves the right to accept or reject any proposal. The procurement process will be governed by the rules and regulatons of the FAO.

2 Terms of Reference For the Selection of Auctioneer for the UN and Subsidiary UN Organizations in Sri Lanka

3 Table of Contents 1. Introduction 1.1 Background 1.2 Statement of Purpose & Objectives 2. Requirements 2.1 Key Requirement; Auctioneering Services 2.2 Other services - required for the performance of the key requirements of this TOR 3. Contents of the Technical Offer 3.1 Service Provider Qualifications 3.2 Proposed Services 3.3 Personnel and Service Provider Qualifications 4. Evaluation 4.1 Technical Evaluation criteria 4.2 Marking Schema 5. Key Performance Indicators 5.1 Performance Evaluation Page 2 of 14

4 1 Introduction 1.1 Background In order to achieve further time and cost efficiency from economies of scale while ensuring outstanding quality of service, the United Nations Country Office and its subsidiary organizations (UN) in Sri Lanka wishes to enter into a Long Term Agreement (LTA) with the most competent auctioneer to serve all its auctioning requirements. Auctioning, as referred to in the TOR, shall apply to auctioning of vehicles, generators office furniture, ICT equipment or any other asset belonging to the UN and subsidiary organizations. Page 3 of 14

5 1.2 Purpose & Objectives The purpose of this Request for Proposal (RFP) is to identify service provider(s) that may be able to provide services related to the asset disposal processes and conduct asset sales on behalf of UN agencies. The objectives are to maximize revenues from disposals while adhering to the highest level of transparency and accountability. The LTA will be established initially for a one year period, extendable to four additional years based on satisfactory annual performance appraisals by UN agencies. Page 4 of 14

6 2 Requirements 2.1 Key Requirements; Auctioning services Duties of UN agencies UN shall inform the contractor the minimum sale price per item handed over for public auction. The contractor shall upon receiving goods for sale, provide the UN with an itemized inventory of all items received for sale by auction In terms of vehicle auctioning the UN shall establish the minimum sale price based on a combination of applicable Sri Lanka Customs duty payable as well as market rate based on an independent valuation process. The UN will undertake the valuation process In the event of auctioning of vehicle(s) the UN shall use a registered Customs House Agent (CHA) to settle dues with pay order submitted by selected auctioneer Upon the full settlement of the UN sales proceeds in full, within 15 working days of the auction date, UN shall effect the transfer of ownership Visit auction venue at the time of auctioning to ensure transparence of auctioning process Duties of contractor The contractor shall abide by all terms and conditions agreed upon between the two parties The contractor shall ensure the final sale price at the fall of the hammer is the highest bid received over and above the minimum sale price established by the UN and obtained as per public auction proceedings. Under no circumstance shall the bidding process be stopped until the highest price is achieved. Page 5 of 14

7 2.1.8 In the event the minimum sale price established by the UN is not obtained as per public auction proceedings, the contractor shall officially record this offer price and inform the UN and seek guidance on how to proceed. The contractor shall not under any circumstances conclude the sale under such conditions prior to receiving confirmation from the UN The contractor upon concluding the sale over and above the minimum sale price, shall recover the full sale value from the purchaser within 10 working days from the date of the auction. The contractor shall not handover the asset to the purchaser until full sale value is received by the auctioneer In the event of a vehicle disposal and upon receiving the full sale value from the purchaser, the contractor shall obtain duly filled and signed transfer papers (MTA-6) forms from the purchaser In the event of a vehicle disposal, the contractor shall only release the vehicle to the purchaser on the signing of the tri-party indemnity form which absolves the contractor and the UN from any liabilities whatsoever in the event of breach of the terms and conditions of this tri-party agreement and pending the clearance of all transfer of title formalities The contractor shall make all necessary documentary paperwork to complete the transfer of title formalities between the UN and the purchaser within 30 calendar days from the date of the auction The purchaser of the vehicle shall be liable for all duties/taxes payable to Sri Lanka Customs. The minimum sale price indicated to the contractor shall include all payments due to Sri Lanka Customs. Such payments shall be handed over to the UN agency in full and in the form of a Bank Draft. No personal cheques or cash will be accepted This payment must be brought to the respective focal person of the UN within 10 working days of the auction date The contractor shall settle the UN the net sale proceeds (sale proceeds net of all statutory payments, auction fees, transportation chargers and other applicable administrative fees) within 10 working days from the date of the auction. For late return of revenue which does not meet UN terms of reference, claim liquidated damages from the contractor and deduct 0.5% of the auctioned value of the asset pursuant to an invoice per additional day of delay, up to a maximum of 10% of the auctioned value of the asset and may lead to possible BLACK LISTING.The payment or deduction of such Page 6 of 14

8 liquidated damages shall not relieve the Auctioneer from any of its obligations or liabilities pursuant to the Contract The contractor shall ensure maximum awareness campaigns with adequate media coverage and publicity of the UN assets that are ready for public disposal advertise vehicle and other material Auction through national newspapers. The contractor will stipulate the Terms of Participation in all advertisements and provide handouts on the day of auction containing the terms and will read the terms aloud prior to conduct of the auction. The contractor will set-up professional signs and Placards that direct bidders to auction location prior to the conduct of the auction The contractor shall ensure a minimum 2-day viewing of UN assets to the general public prior to the auction date and the contractor will provide representatives of the contractor to be present while the viewing period is ongoing The contractor shall ensure accurate and itemized invoicing on the settlement of all payments due to UN on the sale proceeds and all cheque payments made addressed as per instructions given by each UN Agencies Provide the necessary venue, security and other related services at the selected venue in Colombo from the date of handover of the vehicles/materials till completion the date of removal from the venue Submit the auction report including the lot nos. of the assets and the total income of the auction within 2 working days from the date of auction Arranging delivery of items available for auctioning to auction yard including immobilized vehicles from the UN agencies or any nominated places by the UN agencies Allow UN Representatives to visit auctioneers venue during the contract period and the day of auction An experienced project manager to be engaged in order to ensure our projects are professionally managed until completion. The project manager should ensure that auctions are effectively marketed, efficiently conducted, precisely accounted for and quickly closed, while obtaining the best possible results. Page 7 of 14

9 2.2 Other services, required for the performance of the key requirements UN requires open public auction to be conducted with maximum participation by the public UN reserves the right to contact past bidders, other UN agencies, local embassies, etc. with relevant auction information (Date/Time/Terms of Participation/Auction Item List) UN requires the Auctioneer to prevent any collusion that could result in the lowering of bids and to ensure transparency and integrity of the auction process; Auctioneer will submit an auction report along with the remittance of auction proceeds (details of Amount Received for each Lot, commission, and fees paid for services) The auction fee should include all associated costs such as calling the auction, providing a facility, advertising, illustrating services, pre-auction price estimates, short-term storage services, repair or restoration services in relation to auction of property. Any other fees should not be levied by the service provider. Page 8 of 14

10 3 Contents of the technical offer The technical proposal should be concisely presented and structured in the following order to include, but not necessarily be limited to, the following information: 3.1 Company Qualifications 1. A description of the company with evidence of the company s capacity to perform the services required, including: a. Company profile. (Please describe past history and current management/staff structure) b. Registration Certificate c. Last audit reports (at least last 3 years) d. Any licenses or approvals for the provision of auctioneering services e. any applicable ISO certifications. f. Chartered valuation qualifications of management team, staff etc. 2. Three or more letters of reference, with contact information including from state/public institutions, UN organizations, Embassies/consulates etc. 4. Number of available support staff 5. Availability of access to a secured auction site Page 9 of 14

11 3.2 Proposed Services Marketing capabilities Logistics capabilities Number and available auction warehouses, complexes, showrooms etc Reporting mechanism (please provide example) Internal audit measures, control points, quality assurance mechanisms in place 3.3 Personnel Qualifications Auctioneer on staff with live auction experience Trained and certified accountants on staff In-house evaluator Page 10 of 14

12 4 Evaluation 4.1 Evaluation criteria The Technical Proposal will be evaluated using the following criteria and percentage distribution: 70% from the total score. Balance 30% will be based on financial evaluation. Financial proposal need to include percentage charged by auctioneer (auction fee) from sales proceed of items auctioned through auctioneer. This auction fee must include all charges including advertising charges, documentation charges and storage charges. Separate auction fees need to be provided for auctioning of motor vehicles and rest of the items. Technical Proposal evaluation criteria 1. Company Qualifications Relevant experience: Auction services Relevant experience: Auctioning logistics Relevant experience: Proposed Staff Client references; Auction catalogues and reports from previous auction Any certification (ISO etc.) 2. Proposed Services Appropriateness of methodology and match with business requirement Quality and logic of work plan Innovative approach Proposal for advertising and dissemination Proposed reporting mechanism Page 11 of 14

13 3. Personnel Qualifications Compatibility of staff structure and resource allocation to the project requirements Expertise of the suggested project team: qualifications and experience Project manager: experience managing similar projects 4.2 Marking schema Overall technical evaluation criteria: Summary of Technical Proposal Total Points Section1: Company Qualifications 150 Section 2: Proposed Services 375 Section 3: Personnel Qualifications 175 Total 700 Details of evaluation criteria and marking scheme: Section1: Company Qualifications No Criteria Points 1.1 Relevant experience: Auction services Relevant experience: Auctioning logistics Relevant experience: Proposed Staff Client references; Auction catalogues and reports from previous auction Any certification (ISO etc.) 25 Page 12 of 14

14 Section 2: Proposed Services No Criteria Points 2.1 Appropriateness of methodology and match with business requirement Quality and logic of work plan Innovative approach Proposal for advertising and dissemination Proposed payment settlement mechanism 200 Section 3: Personnel Qualifications No Criteria Points 3.1 Compatibility of staff structure and resource allocation to the project requirements Expertise of the suggested project team: qualifications and experience Project manager: experience managing similar projects 75 Page 13 of 14

15 5 Key Performance Indicator 5.1 Performance Evaluation UN expects to monitor the performance of the selected supplier. Percentage of items sold at auction Percentage of collections of winning bids Percentage of expenses compared with overall revenue of auction Page 14 of 14

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