About the client:
Kwacha Pension Trust Fund (the “Fund” or “KPFT”) is a self-managed pension scheme regulated by the Pensions and Insurance Authority. Its main objective is to provide pension benefits to its members on retirement or death. The Fund holds various asset classes as part of its investment portfolio.

TENDER DESCRIPTION: REQUEST FOR PROPOSAL (RFP) FOR THE DEVELOPMENT OF AN INVESTMENT MANAGEMENT SYSTEM (IMS)

To enhance operational efficiency and decision-making processes, KPTF seeks to develop a robust and customised Investment Management System. This system will streamline investment operations, enhance portfolio management, and improve reporting and compliance.

PURCHASER’S CONTACT DETAILS:

Kwacha Pension Trust Fund
Plot No. 5534 Corner Libala/Kakola Roads
Kalundu
Lusaka

User Department: Investments

Tender Date: 3rd February 2025
Tender Closing Date: 17th February 2025
Tender Closing Time: 14:30 hours

Proposal Validity Period: 90 days from tender closing date

Pre-Bid Meeting: 7th February 2025 at 10:00 hours

All clarifications should be in writing and addressed to:

The Director
Kwacha Pension Trust Fund
Plot 5534 Corner Libala/Kakola Road
Kalundu
Lusaka
Zambia

NB: (Kindly read and refer to relevant terms and conditions for further details. Do ensure to quote tender description and closing date and time in your request for proposal and related correspondences)

INSTRUCTION TO BIDDERS

RFP FOR THE DEVELOPMENT OF AN INVESTMENT MANAGEMENT SYSTEM (IMS)

1. You are invited to submit proposals for the aforementioned tender.
2. Kwacha Pension Fund has set aside funds in the 2025 budget to develop a robust and customised Investment Management System (IMS). This system will streamline investment operations, enhance portfolio management, and improve reporting and compliance.
3. Information on detailed terms of reference is contained below.
4. Your proposal in the required format must be addressed to:

The Director
Kwacha Pension Trust Fund
Plot 5534 Corner Libala/Kakola Road
Kalundu
Lusaka, Zambia

5. Sealed proposals shall, clearly be labelled “DEVELOPMENT OF AN INVESTMENT MANAGEMENT SYSTEM FOR KPTF”;
6. Bids should be deposited in the Tender Box, at the reception of Plot 5534 Corner Libala/Kakola Road, Kwacha Pension Trust Fund, Lusaka by 17th February 2025 at 14:30 hours;
7. Bidders are encouraged to attend the tender closing and opening ceremony to be held on 17th February 2025 at 14:30 hours. This will be held at Plot 5534 Corner Libala/Kakola Road, Kwacha Pension Trust Fund, Lusaka;
8. Kindly note that electronic proposals will not be accepted, and late bids will be rejected;
9. Any further clarifications should be submitted in writing and addressed to:

The Director
Kwacha Pension Trust Fund
Plot 5534 Corner Libala/Kakola Road
Kalundu
Lusaka
Zambia

EVALUATION CRITERIA
Selection Criteria: bids that do not provide any of the documents below will not proceed to the technical evaluation stage:

Preliminary Evaluation requirements:

1. Written Power of Attorney from Management or Board of Directors, clearly stating the appointed Representative, his/her specimen signature and designation in the firm. The names and designation(s) and signatures of the appointing authority must be also clearly indicated;
2. Company profile describing the core business of the firm/company and a list of current and previous clients;
3. Proof of physical operational premises;
4. Litigation status from an independent Legal Practitioner. Self-authored Litigation status and those authored by Commissions of Oath will not be accepted;
5. Certificate of incorporation or registration;
6. PACRA Stamped form (with details of directors/shareholders);
7. Copies of IDs of Shareholders/Directors/Partners and Senior Management;
8. Valid 2025 NAPSA Compliance Certificate;
9. Valid 2025 ZRA Tax Clearance Certificate;
10. Valid certificate of registration with ZICTA or ICTAZ;
11. Duly Signed Request For proposal;
12. Signed Joint Venture Agreement: Where a bid is being submitted as a Joint Venture (JV), all parties to the JV must submit Preliminary evaluation statutory documents stated above; and
13. Bid validity of 90 days.

Technical Evaluation

1. Bidder’s experience: The firm should have minimum of five (5) years’ experience in developing customised systems for finance and/or investments. [10 points]
2. Technical Proposals: the technical proposal should clearly explain the consultant’s understanding of the ToRs, highlight their methodology in completing the assignment and work plan (Gantt Chart); [15 Points]
3. Team Composition and qualifications: Submit the Team Composition for this assignment and their relevant qualifications. Attach CVs and Academic/professional qualification/certification and practicing licences as follows:

1. Team Lead (1): The lead team should possess post-graduate qualifications in Computer Science, Software Development or a related field. Project Management or Business Process Engineering qualification is also desirable for the team Lead. Must be submitted. 10 years
[10 points]
2. Assistant Team Lead (1): Degree in Software Development or a related field. Copies of Certificates and Curriculum Vitae. Must be submitted. 5 years
[5 points]

4. Submit at least three (3) reference letters from clients where similar assignments have been undertaken. Reference Letters must be specific to this tender and the institutions must be similar in magnitude and complexity. Past experience of similar work with large public/private sector entity will be an advantage [15 Points].
5. Submit Financial statements for the year 2022 and 2023. [10 points]
6. Presentation of ‘demo’ system by bidders based on their understanding of the ToRs. Only bidders that score above 75% of the other requirements under the technical evaluation will qualify for this stage. [35 Points]
Total Points: 100

PASS MARK: 75 points. The minimum qualifying weighted score to proceed to financial evaluation is 75 points. All bidders that fail to achieve the minimum score shall not be considered for further evaluation on price.

Method of selection: Quality and Cost-Based Criteria procedures will be used for both technical and financial proposals.

The Consultant must submit:
This is a two- envelope tender and proposals must be submitted as follow:
(a) Technical Proposal: 3 plus (1) original
(b) Financial Proposal: 3 plus (1) original

THE FINANCIAL AND TECHNICAL PROPOSAL SHOULD BE SEALED SEPARATELY. AT TENDER OPENING, ONLY THE TECHNICAL PROPOSAL WILL BE OPENED.

COMMERCIAL OR FINANCIAL EVALUATION
7. The Proposal Price – Shall be quoted in Zambian Kwacha
8. State Value Added Tax (VAT), WHT, where applicable, separate
9. All duties, taxes, and other levies payable on the items shall be included in the total price.

10. Payment terms – 30 days after submission of a valid invoice and successful implementation of the assignment.
11. Bid Validity Period: 90 days
12. The Financial proposal shall include the total cost of developing and implementing the system as well as training KPTF staff.

APPLICATION OF QUALITY AND COST BASED SELECTION (QCBS) FORMULA
The lowest evaluated Financial Proposal (Fm) is given the maximum financial score (Sf) of 100.
The formula for determining the financial scores (Sf) for the Proposal is calculated as follows:
Sf = 100 x Fm/ F, in which “Sf” is the financial score, “Fm” is the lowest price, and “F” the price of the proposal under consideration.
The combined technical and financial score (S) is calculated using the formula:
St x T% + Sf x P%.
Where; (St) is the technical score and (Sf) is the financial score. T = the weight given to the Technical Proposal; P = the weight given to the Financial Proposal; T + P = 1
NB: The weights given to technical and financial are 80 and 20, respectively

The Client will enter into negotiations with the best evaluated consultant before Contract award.

TERMS OF REFERENCE (TORS)

KPTF manages a diversified investment portfolio, which includes a broad range of asset classes such as private debt instruments, equities, real estate, Government securities, corporate bonds, and collective investment schemes. This diversified approach reflects the Fund’s commitment to optimizing returns for its members while maintaining a prudent balance between growth and risk. The Fund is dedicated to upholding the highest standards of governance, compliance, and ethical investment practices.

To enhance efficiency, accuracy, and operational effectiveness, KPTF is seeking to implement a comprehensive investment management system. This system will enable seamless and streamlined portfolio management by automating workflows, enhancing data integrity, and providing advanced analytics and reporting capabilities. By adopting this cutting-edge solution, the Fund aims to strengthen its investment operations, support informed decision-making, and ultimately deliver superior value to its members while navigating the dynamic investment landscape.

The IMS is expected to support investment operation through the following features:

1. Portfolio Management:
1.1 Provide real-time tracking and reporting for all asset classes. This should include computation of asset values as well as tracking income and expenditure;
1.2 Deliver automated reports showing growth trends in asset values, yields, income and expenditure for various time periods e.g. weekly, monthly, quarterly and annually; and
1.3 Use for advanced analytics and dashboards to consolidate data.

2. Operational Efficiency:
2.1 Easy to use application programming interface (API) for data import/export; and
2.2 Integrate the system with existing tools such as the accounting software, CAMELS rating and pension software if any (make provision for interest income alerts).
3. Compliance and Risk Management:
3.1 Integrate regulatory compliance checks and risk assessment tools into the system;
3.2 Generation of regulatory compliance reports;
3.3 Use rule-based automation for compliance validation and risk scoring; and
3.4 Conduct stress testing and scenario analysis to evaluate the portfolio’s performance under various market conditions.

4. Data Security:
4.1 Cloud based system;
4.2 Implement robust data encryption and multi-factor authentication for user access;
4.3 Achieve zero data breaches and ensure 99.9% system uptime;
4.4 Adopt industry-standard cybersecurity protocols;
4.5 Role-based access controls; and
4.6 Keep logs of all login attempts.

5. Scalable and Flexible Solutions:
5.1 Design the system to accommodate an increase in assets under management (AUM) in the future;
5.2 Ensure overall system scalability without degradation of performance;
5.3 Use a modular architecture to add functionality as needed; and
5.4 Ensure scalability features are operational from the initial rollout.

6. Decision Making and Advanced Analytics:
6.1 Provide predictive analytics and scenario analysis tools for portfolio management;
6.2 Enable users to analyse at least three scenarios for each investment decision;
6.3 Utilize AI and machine learning algorithms to provide actionable insight; and
6.4 Provision of tools for forecasting and modelling. strategic asset allocation to optimize portfolio composition.
7. Maintenance and Support
7.1 Regular updates and system enhancements;
7.2 Comprehensive training for KPTF staff; and
7.3 Dedicated customer support with guaranteed response times.
Interested Consulting Firms are to submit three (3) copies and one (1) original of their applications in a sealed envelope clearly marked “DEVELOPMENT OF AN INVESTMENT MANAGEMENT SYSTEM FOR KPTF”.

Tender closing date is Monday 17th February 2025 at 14:30hrs.