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  1. Contents • Introduction • General Description of Tender Process • Threshold Requirements • Submission of Bids • Evaluation • Award • Post-Award Actions • Principles of Program Contract

  2. Introduction

  3. General Description of Tender Process

  4. General Description of Tender Process • Tender Documents • Request for Proposals • Program Specifications • Program Contract • Notice of Intent to Bid • Non-binding • Only Bidders who submit such notice will receive notices from the Tender Committee

  5. General Description of Tender Process Cont. • Bidders’ Conference • Tender Committee’s discretion • Amendments / Clarifications • Tender Committee may issue amendments / clarifications either for itself or in response to requests of Bidders • Procurement Library • On-line procurement library • For informational purposes only

  6. General Description of Tender Process Cont. • Number of Job Centers / Determination of Geographical Areas • Current Plan: 4 centers, 4 geographical areas, 4 different operators • Tender Committee may increase / decrease the number of centers / geographical areas (up to a maximum of 8 areas) • Exact geographical areas determined by public committee • Bidders will rank the different geographical areas in order of priority

  7. Threshold Requirements

  8. Threshold Requirements • Professional Experience • Experience, during the last 7 years, in the operation of compulsory welfare-to-work programs on a case management basis, meeting the following minimum requirements: • Single center responsible for at least 500 benefit recipients for a continuous period of at least 3 years • Single or multiple centers responsible for at least 3,000 benefit recipients in aggregate for a continuous period of at least 3 years

  9. Threshold Requirements Cont. • Experience, during the last 7 years, in producing a detailed operations manual for a welfare-to-work program and operating a program in accordance with the manual • Experience, during the last 3 years, of working with at least 50 employers in aggregate in different fields in the development of job placements • Has, during the last 3 years, acquired / developed and used computerized case management and activity report system to monitor participant performance.

  10. Threshold Requirements Cont. • Financial Strength • Subject to an external audit for the last three fiscal years • Weighted average turnover of at least $5,000,000 (or the equivalent thereof) for the last three fiscal years • Submission of a letter from a bank or other financial institution confirming willingness to provide financing for the Pilot Program of at least $2,000,000 or the equivalent thereof

  11. Submission of Bids

  12. Submission of Bids • Contents of Bids • Experience in welfare-to-work programs • Plan and strategies for the Pilot Program • IT • Staffing (including identity of key personnel) • Financial proposal • Bid Bond • On-demand bank guarantee / stand-by letter of credit NIS 500,000 • Validity • 180 days • May be extended by additional periods of up to 90 days

  13. Evaluation

  14. Evaluation • Compliance with Threshold Requirements • Tender Committee will only evaluate Bids determined to meet threshold requirements • Clarifications/Presentations • Evaluation Criteria • Bids will be awarded points based upon the evaluation of the following criteria: • Experience • Plan • Staffing • Financial proposal

  15. Evaluation cont. • Best and Final Stage/Negotiations • Tender Committee may conduct a Best and Final Stage, requiring all or certain bidders to amend/improve their bids • If BAFS held, revised bids will be re-evaluated

  16. Award

  17. Award • Number of Bids >= number of geographical areas • Number of Bids < number of geographical areas • In no event will a Preferred Bidder be allocated more than two geographical areas

  18. AwardCont. • Allocation of Geographical Areas • Preferred Bidder with the highest Adjusted Score allocated the geographical area where such Preferred Bidder ranked highest • Next ranking Preferred Bidders each allocated (in order) the geographical area ranked highest by such Preferred Bidder which has not already been allocated to a higher ranking Preferred Bidder

  19. Post Award Actions

  20. Post Award Actions • Introduction of Israeli partner: • Israeli entity • Size / business experience (based on business contacts in the last year with at least 50 businesses, each employing more than 100 employees in Israel, and at least 10 businesses, each employing more than 500 employees in Israel) • Neither it nor any affiliates engage in either the entry into Israel or placement of foreign workers in Israel • Not a “Budgeted Entity”, a “Public Institution” or “Supported Entity” Israeli entity/ies will hold 25% - 50% of the shares, rights to appoint directors and rights to receive profits of the Operator

  21. Post Award Actions Cont. • Incorporation of Operator • Set up Israeli SPC • Shareholders: Preferred Bidder (at least 50%) and Israeli partner/s (25% - 50%) • Operator shall sign the Program Contract

  22. Post Award Actions Cont. • Update of Financial Proposal • Prior to execution of the Program Contract each Preferred Bidder’s Financial Proposal shall be updated to reflect: • Actual initial number of participants in the geographical area • The actual average aggregate monthly amount paid to all recipients of Welfare Payments that were subject to the Employment Test in the geographical area

  23. Principles of Program Contract

  24. Preferred Bidder Israeli Partner 50% 25% - 50% Program Contract State of Israel Operator (Special Purpose Company) Principles of Program Contract

  25. Principles of Program Contract Cont. • Term: • 30 months from signature (start-up Period - 6 months; operating period – 24 months) • Start-Up Period: • Milestones • Penalties • Operating Period: • Program specifications • Operating manual • Applicable law • Program Amendment

  26. Principles of Program Contract Cont. • Government Options • Extension of term (up to 3 years) • Increase number of participants (up to 7,000) • Additional Job Center

  27. Principles of Program Contract Cont. • Securities • Performance Bond • On-demand bank guarantee / stand-by letter of credit for NIS 2,000,000 • Replenished if drawn up to a maximum principal amount of NIS 4,000,000 • Shareholders’ Guarantee • Preferred Bidder and the Israeli Partner(s) guarantee Operator’s performance • Joint and several

  28. Principles of Program Contract Cont. Risk Allocation