Training Programme on Contracts Implementation for End Recipients

1. Bölgesel Rekabet Edebilirlik Operasyonel Programı’nın Uygulanması için Kurumsal Kapasitenin Oluşturulmasına Yönelik Teknik Yardım Technical Assistance on Institutional Building for the Implementation of RCOP in Turkey Training Programme on Contracts Implementationfor End Recipients Trainer: Aslı Gülgör Procurement and Contract Management Non Key Expert

2. Service Contracts

3. Two Types of Service Contracts • Global price -where specified outputs are defined. The service will be paid on the basis of the delivery of the specified outputs. • Fee-based - where the output is unpredictable, or where the workload to achieve the specified output is impossible to quantify in advance. Therefore it is economically more advantageous to pay the services on the basis of time actually worked.

4. Service Contract OutlineTA and Supervision • Contract Agreement and Special Conditions with annexes: • General Conditions for service contracts • Terms of Reference • Organisation and Methodology (To be submitted by the tenderer according to the template provided) • Key experts (including templates for the summary list of key experts and their CVs) • Budget [For fee-based contracts: breakdown] • Forms and other relevant documents

5. Terms of Reference

6. What is Terms of Reference? What does it stand for in a service contract? What do you expect from a TOR?

7. What is TOR • Legally binding document with the Contract • A key document, which describes the termsand conditions of a task to be performed. • A document that sets out the working relationship betweenthe parties and communicates the mode forundertaking the assignment. • A document setting out the responsibilities of the partiesand the expected deliverables of theassignment. (incl standard reports)

8. W questions? ToRs provide clearly detailed parameters for: • whyand for whom the project is being done • whatis intended to be accomplished • howit will be accomplished • whowill be involved and • when milestones will be reached and project be completed

9. Objectives of a TOR To ensure: • That ambiguities duringthe preparation of proposals, contractnegotiation and execution of services are cleared out • That a specific task is carried out asoutlined in the OIS • That the consultants, undertakingthe task,will focus on the major issues andthe most serious likely impacts of the task • That the task is undertaken within thetime-frame planned and the budgetallocated • That risks of unnecessaryextrawork, delays and additional expenses are reduced

10. ToR Defines... • Provides background information • Defines the overall and specific objectives and the result to be achieved • Identifies assumptions and risks • Defines the scope of work • Defines the specific activities to be implemented • Defines the project management structure

11. ToR Defines... • Defines logistic and timing • Defines the requirements in terms of personnel and other inputs • Defines reporting system • Defines monitoring and evaluation arrangements • Defines Visibility Rules

12. Service Contracts by Type of Work • Technical assistance (supervision) • to provide the experts specified in the contract, • to manage or supervise a project. • Studies • studies for identification and preparation of projects, • feasibility studies, economic and market studies, • technical studies, • evaluations and audits. • Mixed (exceptional cases)

13. Technical Assistance ContractsFee based • Technical assistance contracts are used where a service provider plays anadvisory role • Technical assistance contracts often specify the means, the contractor is responsible forperforming the tasks entrusted to it in the Terms of Reference and ensuring the quality of theservices provided • Payment for these contracts is dictated by the resources and services actuallyprovided - fee-based

14. Study ContractsGlobal Price Have a clear and easy wording to describe output/result • the contractor must provide a given product,the technical and operational means, by which it achieves the specified outcome are irrelevant. • Theseare, therefore, lump-sum - global-price-contracts and the contractor will be paid only if thespecified outcome is achieved.

15. OIS Tendering Contracting Implementation Evaluation ToR is essential for all stages of service contract implementation. Service Contracts Implementation Intersection

16. ToR is for..(consultant) • Based on ToR, tenderer prepares Organisation and Methodology and Budget • Quality of ToR influences the ability of the tenderer to submit a cost-efficient and effective offer Example: • If ToR is unclear, tenderer takes additional risk, and charges for that (puts more man-days than required for each task) • If ToR includes high requirements – you may get a professor lecturing on PCM basics • If expert input is overestimated you will get experts playing chess in the office or surfing Internet (boring, but well paid)

17. ToR is for..(CA/ERA) • The quality of ToR influences quality of the consultants that you get: You will get bad consultants if: • You put no or low requirements on the delivery for a lot of money • You put extremely high requirements for little money • bad consultants do not care about quality; • good consultants care and will not tender if cannot ensure proper quality due to lack of resources; • If ToR are poor and unclear you may need to cancel the tender and to repeat it with corrections

18. Monitor the Contract with ToR • ToR is used to assess and control the performance of the contractor (inputs, delivery, outputs, time, etc.) • ToR is used to legally enforce contract implementation if something goes wrong Level of detail important, especially in Global price contracts

19. Main responsibilities of ERAs during Contract Management

20. Cooperating with the Consultant and rendering logistical or any other assistance; • Hosting, organising (if needed) and participating in kick off meeting and any other meetings conducted during implementation period of Service Contract; • Participating in on-the-spot checks and site visits initiated by the CA; • Monitoring the projects’ technical and financial aspects; • Ensuring that the Consultant performs the tasks in accordance with the pre-defined deadlines and to the standard of quality required in the ToR;

21. Notifying the CA about difficulties, deficiencies, on-performance or suspect of irregularity during contract implementation; • Issuing (suggesting/approving/rejecting) the contract modification requests (Addendum/Administrative Orders) if needed; • Participating in the selection process of the non-key experts (review of Experts ToR, CVs and related supplementary documents of experts) and participation in interviews (if applicable);

22. Issuing the pre-approval of the Non- Key Expert Approval Requests; • Issuing the pre-approval of the Incidental Budget Approval Requests; • Issuing the approval of the project reports and deliverables; • Issuing the approval of the timesheets for Key and Non-key experts.

23. Daily tasks of ERA during Service Contracts Implementation

24. The ERA shall work on daily basis with the Consultant. The ERA may wish to meet the Consultant at formal weekly meetings. This should be clarified in the Kick-off Meeting; • The ERA shall continuously keep the Consultant updated on the requirement of the ERA and any events within the ERA’s organization which may impinge upon the TAT’s contract or in on-going other works or supply contracts; • The Consultant shall continuously keep the ERA updated on project progress and any problems encountered;

25. The ERA shall ensure that all correspondence between the Consultant and other stakeholders of the project shall be copied electronically to the ERA Responsible Staff; • The ERA shall ensure that all correspondence between the Consultant and the CA shall be copied electronically to the ERA Responsible Staff; • The ERA shall agree dates for steering committee and/or management committee meetings with the CA; • The ERA and such members ERA, as the CA agrees, shall attend all monitoring meetings of the projects

26. Service Contracts Implementation

27. Rule of thump • Implementations starts with planning • Proper planning leads to smooth and effective contract implementation

28. Main Steps in planning and implementation • Decision on activities, outputs and time planing Draft a resource plan per activity in man-days • Decision on budget (Fee/incidental) items related to each activity Estimate all related costs per activity

29. Activity Planing/Time ScheduleActivity implementation schedule

30. Resource Schedule Per Activity for the project duration

31. Resource Schedule Per Activity for Period 1- splited according to experts

32. Project Budget

33. What fee rates cover?

34. Tools for Service Contracts Management Fee based Contracts • Man/day monitoring • STE approvals • Reports (contractual/ technical) • Meetings • Incidental Budget aprovals Global Price Contracts • Outputs • Milestones

35. Man/day input monitoring • Timesheets • Terms of References (ToR) for STEs • STE Approval Request • Weekend, national/public holiday approvals.

36. Monitoring with Reports Inception Report Six monthly progress reporting Six monthly financial reporting Any other technical reports Final Report

37. Six monthly progress reporting Progress is assessed (= monitoring) to enable adjustment to changing circumstances There should be a balance between keeping the Contracting Authority and end-recipient well informed and not forcing Consultants to spend an excessive amount of time preparing reports.

38. Six monthly financial reportingProgress in numbers!

39. Six monthly financial reporting

40. Expenditure Verification

41. Resources Used-Indicative

42. Incidentals Used

43. Monitoring with Meetings • Kick off Meeting • Monthly Management Meeting • Steering Committee Meeting • Ad hoc meetings • Final Closure Meeting

44. ERA’s Approval for All types of Report Pre-Approval Final Approval by RCP CID Read and Approved STAMP

45. Monitoring Incidental expenditure Incidental Expenditure Covers... • Travel costs and subsistence allowances to be incurred by experts for missions,outside the normalplace ofposting, to be undertaken as apart of this contract. • Translation and interpretation of services. • For the training courses, seminars, conferences and information daysactivities to beheld outside the premises of the end-recepient; full-board accommodationservices includingcosts of the venues, costs of meals and beverage, costs of travel andaccommodation of the participants, who are coming from other citiesprinting costs • For the study visit and internship programmes; travel, accommodation costs of theparticipants and otherancillary expenditures (preparationand printing of training materials,intercity travel, costs of staff fromvisited institution and registration fees). • Ancillary cost in SMC, Steering Comm etc. • Visibility Costs etc.

46. Travel and accommodation expenses • Per diems different in each country • Hotel accommodation included in per-diems • Private consumption is not eligible • Public transportationto be used

47. Things to check!!!! • The activities and outputs are needed, reasonable • The activities and outputs are specified but not in too much detail • The number of experts are reasonable for that activity • The division of experts are reasonable between key, non-key and STE Junior and Senior • The number of man-days are reasonable within the dates of the contract period • The requirements of experts for each position is reasonable

48. Thinks to check! Should not forget while planning the incidentals (if needed) * travel and subsistance allowances of experts * the trainings (travel, accommodation, per-diem (subsistance allowances), rooms, venue, catering (food and beverage),printing materials,visibility materials etc.) * study visits (travel, accommodation, per-diem etc.) * printing costs * visibility costs etc.

49. ERA’s Approval for Incidental Requests Pre-Approval Final Approval by RCP CID

50. Experts Experts working in the contract • Key experts –with the contract • Non key experts (short term, long term, senior, unior) ERA shall pre-approve non-key experts proposed by the TAT and notify the CA in writing of their pre-approval. The selection process for Non-key Experts shall be as set down in the Terms of Reference of the service contract or decided at the inception phase.