dera ghazi khan waste management company (dgkwmc) …

Request for Proposal - Internal Audit DGKWMC

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Dera Ghazi Khan Waste Management Company (DGKWMC)

REQUEST FOR PROPOSAL (RFP)

HIRING OF FIRM FOR INTERNAL AUDIT SERVICES

November 2021

Procurement Number: 211022021-1

House # 39-X, Jail Road, Model Town, D.G. Khan

PH:064-2402120 – 064-2402265


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1. Request for Proposal (RFP)

1.1. Introduction:

Dera Ghazi Khan Waste Management Company was established by the Government

of Punjab under Sec. 42 Companies Act, 2017 through SECP. Dera Ghazi Khan

Waste Management Company is legally mandated to develop an improved and

integrated solid waste management system to ensure collection, transportation and

disposal of solid waste so as to provide sustainable, efficient and affordable waste

management services to the citizens of DG Khan City.

1.2. Scope:

DGKWMC invites Proposal from the Audit Firms for the Internal audit of DGKWMC

for the financial year 2020-21 and report directly to Board Audit Committee.

1.3 Tenor:

The audit, review and assurance engagement would be for a term of six (06) months

subject to satisfactory performance review by Audit Committee and Board of

Directors.


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2. INSTRUCTIONS FOR FIRMS

This Section specifies the procedures to be followed by Firms in the preparation and submission of their Proposals for RFP.

2.1. Procuring agency issues this RFP Document to Firms interested in applying for the

tasks described in Terms of References (TORs) Section of this document.

2.2. Proposals shall be submitted using Proposal Forms annexed with this document.

2.3. The name and mailing address of the firm shall be clearly marked on the envelope.

2.4. The Proposal, as well as all correspondence and documents relating to the RFP

exchanged by the Firm and the Employer, shall be written in the English language.

2.5. Firms must respond to all questions and provide complete information as advised in

this document.

2.6. Firms may participate only in one Proposal for the project. If a Firm submits more

than one Proposal for the project, all Proposals that include that firm shall be rejected.

This rule does not apply in respect of Proposal that includes sub-contractors who are

used by more than one firm.

2.7. Firms must meet the Criteria listed below in Section 3 to be considered for further

evaluation based on Capability Evaluation Criteria and Financial Evaluation as listed

in RFP document.

2.8. The Firm shall attach original affidavit on non-judicial stamp paper (with a value of

Rs. 500) and declaring on oath that the Firm:

a. is not in bankruptcy or liquidation proceedings; b. Has never been declared ineligible/blacklisted by Government / Semi-

Government / Agency or Authority or any employer till date due to the any reasons.

c. is not making any misrepresentations or concealing any material fact and detail; d. has not been convicted of, fraud, corruption, collusion or money laundering; e. is not aware of any conflict of interest or potential conflict of interest arising from

prior or existing contracts or relationships which could materially affect its capability to comply with its obligations; and

f. Does not fall within any of the circumstances for ineligibility or disqualifications.

2.9. To assist in the evaluation of Proposals, the Employer may, at any stage during the

course of the RFP process, ask any Firm for clarification in respect of any matter

associated with the documentation submitted by the Firm in its Proposal. If a Firm

does not provide clarifications of the information requested by the date and time set

in the Employer’s request for clarification, its Proposal shall be evaluated based on

the information and documents available at the time of evaluation of the Proposal.

2.10. Firms may be required to update the information submitted for RFP at the time of

submission of their Proposals to confirm continued compliance with the RFP Criteria.


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Firms shall provide such evidence of their continued eligibility satisfactory to the

Employer, as and when required by the employer. A Proposal shall be rejected if the

Firm’s qualification thresholds are no longer met.

2.11. The firm must declare and undertake that all the information, warranties, statements

and representations provided within this Proposal are true and correct; and firm also

understand that in case any of the aforesaid are found to be false/incorrect then firm

is liable to be disqualified, without prejudice to its other rights and actions the

Employer may exercise under the applicable laws.

2.12. Proposals must be received in sealed envelopes to be delivered by hand or through

registered mail to:

Chief Executive Officer,

Dera Ghazi Khan Waste Management Company.

House # 39-X, Jail Road, Model Town, D.G. Khan

PH:064-2402120 – 064-2402265

2.15. Proposals shall be submitted using Proposal Forms (A-1 to A-6)

annexed with this document.

2.16. The interested firm may download RFP document from PPRA.

2.17. The Employer reserves the right to waive minor deviations, if these do

not materially affect the capability of a Firm to perform the contract. In

such case, similar relaxation shall be extended to all Firms similarly

affected.

2.18. The Employer reserves the right to seek additional information, missing

information, and/or clarification of submitted information, from any Firm.

In such case, opportunity shall be provided to all Firms similarly affected.

2.19. Procurement of Internal audit services would governed by PPRA Rules

(2014)

2.20. Firms are prohibited to form Joint Venture for provision of Internal Audit

services for the purpose of subject assignment.

2.21. Firms are prohibited to sub-contract Internal Audit services.


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Section 3.

Proposal Evaluation Criteria

Proposals submitted would be evaluated to determine “Lowest evaluated bidder” by

passing through following three stages on knock-out basis:

1- Minimum Qualification Criteria; (Mandatory Criteria)

2- Capability Evaluation Criteria

3- Financial Quote Evaluation

3.1. Minimum Qualification Criteria; (Mandatory Criteria)

Description

Firm

Legal Status of Firm and registration with institute of Chartered Accountants of Pakistan (ICAP)

Must Meet

Requirement

Registration with Federal Board of Revenue FBR (NTN Certificate) and with Provincial Revenue Authority PRA (registration certificate)

Must Meet

Requirement

Declaration on stamp paper regarding non-black listing / delisting of firm and all of its sub- contractors, if any.

Must Meet

Requirement

Minimum 10 years in practice in Pakistan Must Meet

Requirement

Satisfactory ICAP rating Must Meet

Requirement

The firm must be “A” ranking as per State Bank of Pakistan Must Meet

Requirement

Submission of duly filled Proposal Form – 7 Must Meet

Requirement


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3.2. Capability Evaluation Criteria:

In order to evaluate firm’s financial quote to determine “Lowest Evaluated Bidder”, the

Firms shall first obtain at least 65 marks or more in following “Capability Evaluation

Criteria “to stand qualified for financial quote evaluation.

Serial No. Evaluation Criteria Marks

1. Firm Financial Capability: Total - 30

1.1 Average annual turnover of at least 50 Million in last three financial years

marks

Turnover from 50 Million to 100 Million 10

Turnover from 100 Million to 150 Million 20

More than 150 Million 30

2 Managerial and Quality Capability:: Total - 30

2.1 List of Partners attached with ICAP Registration Numbers and date of admission.

15 marks

- 1- 4 Partners 5

- 5 - 9 Partners 10

- Up-to or more than 10 Partners 15

2.2 ICAP Qualified Chartered Accountants in the Firm in Pakistan. (Attached list with ICAP Registration Numbers

15 marks

- 1 – 4 ICAP Qualified Cas 5

- 5 - 9 ICAP Qualified Cas 10

- Up-to or more than 10 ICAP Qualified CAs 15

3 Firm Past Experience: Total - 40

3.1 Experience of at least 10 Govt. / Semi Govt. Organization’s / Public Sector Companies as Internal Auditor in last 05 years

20 marks

10 -15 10

More than 15 20

3.2 Experience of Internal Audits of Power Sector in last 5 years

20 marks

1-3 10

Above 3 20

3.3 Financial Quote Evaluation: All qualified firms will be evaluated on Least Cost Method as stipulated in PPRA Rules, 2014.


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Terms of Reference:

1. Company Background:

Dera Ghazi Khan Waste Management Company was established by the Government of

Punjab under Sec. 42 Companies Act, 2017 through SECP. Dera Ghazi Khan Waste

Management Company is legally mandated to develop an improved and integrated solid waste

management system to ensure collection, transportation and disposal of solid waste so as to

provide sustainable, efficient and affordable waste management services to the citizens of DG

Khan City.

As per requirement of section 233 and 246 of Companies Act, 2017, the financial statements

shall be audited by the auditor of the company, in the manner thereinafter provided, and the

auditor‘s report shall be attached and subsequent auditors shall be appointed by the company

in the annual general meeting on the recommendation of the board after obtaining consent of

the proposed auditors.

2. Scope of Services:

Evaluating risk exposure relating to achievement of the organization’s strategic objectives.

Evaluating the reliability and integrity of information and the means used to identify, measure, classify, and report such information.

Evaluating the systems established to ensure compliance with those policies, plans, procedures, laws, and regulations which could have a significant impact on the organization.

Evaluating the means of safeguarding assets and, as appropriate, verifying the existence of such assets.

Evaluating the effectiveness and efficiency with which resources are employed.

Evaluating operations or programs to ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned.

Monitoring and evaluating governance processes.

Monitoring and evaluating the effectiveness of the organization's risk management processes.

Performing consulting and advisory services related to governance, risk management and control as appropriate for the organization.

Reporting periodically on the internal audit activity’s purpose, authority, responsibility, and performance relative to its plan.

Reporting significant risk exposures and control issues, including fraud risks, governance issues, and other matters needed or requested by the Audit Committee.


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Evaluating specific operations at the request of the Audit Committee or management, as appropriate.

The Internal Audit Function must assist the Audit Committee in maintaining effective controls

by evaluating those controls and by developing recommendations for enhancement or

improvement.

Assisting the Audit Committee, and through them, the BOD and Management in the effective discharge of their responsibilities by furnishing them with the analysis, appraisals, recommendations, counsel and information concerning the activities reviewed and regular follow up.

The Internal Audit Function must, in consultation with the Audit committee, prepare: a) A two years strategic Internal Audit Plan based on its assessment of key areas of risk

for the public entity, having regard to its current operations, the operations proposed

in its corporate or strategic plan and its risk management strategy;

b) An annual Internal Audit Plan;

c) Plans indicating the scope and time lines of each audit in the annual Internal Audit;

d) Audit Reports directed to the Audit Committee detailing its performance against the plan

to allow for effective monitoring and intervention where necessary.

3. Expected deliverables

Performing an audit assignment, each assignment should at least consist of the following:

a) Pre-audit survey; b) Audit Planning memorandum; c) Risk assessment document; d) System description(s); e) Audit programme; f) Sampling methodology; g) Mechanisms for follow-up on matters previously reported and feedback to the

Audit Committee; h) Mechanisms to ensure that working papers are reviewed at the appropriate level; i) Audit findings and recommendations; j) Reporting (draft internal audit report and final internal audit report); k) Follow up of previous audit findings. l) Development of Pre-Post Audit Manual / Audit Charter m) Development of Internal Audit Control and internal check system of organization.

(ii) The Internal Audit Firm will be reporting to the Audit Committee on Quarterly basis,

the structure of the Internal Audit Report is to be as follows:-

a) Introduction;

b) Audit objective and scope;

c) Background;

d) Executive summary, highlighting significant findings;

e) Findings, recommendations & Management responses (including implementation

dates);

f) All audits are to be carried out according to the internal Audit Plan approved by

the Audit committee;

g) Conclusion; and

h) The auditor is to deliver to the Chairperson of the Audit Committee and the CEO of the Company an electronic copy and one signed copy of the final report


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4. Core team of required experts:

Audit firm should deploy following, but not limited to, team for completion of subject

Assignment.

5. Professional liability of bidders:

An auditor is liable to perform work such as examining, on a test basis, evidence

supporting the amounts and disclosures in the financial statements. An auditor

would also include assessing the accounting policies and significant estimates

made by management, as well as, evaluating the overall presentation of the above

said statements.

An auditor is liable not to disclose information to any third party which has been

acquired during conduct of audit, review and assurance engagement or any other

liability as stipulated in PPRA Rules, 2014

Sr# Designation Qualification Experience

1 Engagement

Partner

Fellow Chartered Account registered with ICAP

10 years of experience with at least

03 Assignments in Public sector.

2 Manager Audit

Chartered Account registered with ICAP

5 years of experience with at least 2

Assignments in Public sector


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6. Covering Letters:

Covering letter (if any) must be addressed to Manager Procurement & Contracts, House # 39-X, Jail Road, Model Town, D.G. Khan

PH:064-2402120 – 064-2402265.

Email: [email protected]

7. Queries:

For any queries or additional information, please contact Chief Internal Auditor, on

064-2402120 – 064-2402265 during office hours.

8. Type of Contract

The Company (DGKWMC) will enter into a lump sum contract with the successful bidder.

The Company reserves the right to review the contract at end of each the term.

9. Payment Mode

The Company undertakes to pay valid invoice within thirty (30) days from receiving

of invoice. Auditor shall ensure that Audited Accounts and Initialed Report have

already been provided to the Company before rising of invoice.

10. Estimated Cost (PKR. 300,000/- for each year including all applicable taxes) Estimated cost of services is Rs. 600,000/- for two years.


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Letter of Proposal

[Letterhead paper of the Firm, including

full postal address, telephone no., fax no.

and e-mail address]

Date:

To: Manager Procurement & Contracts, Dera Ghazi Khan Waste Management Company

Dear Sir,

1. Being duly authorized to represent and act on behalf of ..................................

(hereinafter “the Firm”), and having reviewed and fully understood all the RFP

information provided, the undersigned hereby applies to be qualified as a firm

for the following contract(s) under the Request for Proposal for Hiring of

Internal Audit Services for the Financial Year 2020-21 and 2021-22.

2. DGKWMC or its authorized representatives are hereby authorized to conduct

any inquiries or investigations to verify the statements, documents, and

information submitted in connection with this Proposal, and to seek clarification

from our bankers and clients regarding any financial and technical aspects.

This Letter of Proposal will also serve as authorization to any individual or

authorized representative of any institution referred to in the supporting

information, to provide such information deemed necessary and requested by

yourselves or the authorized representative to verify statements and

information provided in this Proposal, or with regard to the resources,

experience, and competence of the Firm. The procuring agency may conduct

interviews for the selection of best option.

3. DGKWMC or its authorized representatives may contact the following persons

for further information, if needed.

4. This Proposal is made with the full understanding that:

General, Financial and Managerial Inquiries

Contact 1 Telephone 1

Contact 2 Telephone 2


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(a) Proposals from bidders will be subject to verification of all information

submitted for RFP;

(b) DGKWMC reserves the right to cancel the RFP process, and reject all

Proposals; and

(c) DGKWMC shall not be liable for any such actions or consequence of,

and shall be under no obligation to inform us of the grounds for

actions at 5(b) here above.

5. Appended to this Proposal, also specify the financial commitment in terms of

the percentage of the value of the contract, and the responsibilities for

execution of the contract.

6. The undersigned declare that the statements made and the information

provided in the duly completed Proposal are complete, true, and correct in

every detail.

Signed

For and on behalf

of (name of Firm)


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Proposal Form A-1

General Information

[Firm applying for RFP is required to complete the information in this form.]

Name of Firm

Head Office Address

Firm registration number:

Year of incorporation:

National Tax Number (NTN) and Punjab Revenue Authority Number (PRA):

Telephone Contact Person: Name:

Title:

Fax Telex


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Financial Information Proposal Form A-2

Year Annual Turnover * (PKR) Reference

FY 2020-21

FY 2021-22

All information should be supported by verifiable Supporting

documents


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Proposal Form A-3

Details of Contracts of Experience

Name of Firm ________________________________________________________

[Use a separate sheet for each contract]

1.

Name of Contract

Location

2. Name of Employer

3. Employer Address

4. Nature of work and similarity to this project

5. Contract Role (Tick One)

(a) Sole Contractor (b) Sub- Contractor

6. Value of the total contract (in PKR) at completion, or at date of award for current contract

8. Date of Award

9. Date of Completion

10. Contract Duration (Years and Months) Years Months

11. Contract Requirements

12. Reference


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Proposal Form A-4

Affidavit of Correctness of Information

The Firm/Partner shall attach original affidavit on non-judicial stamp paper (not less than

a value of Rs. 500) and declaring on oath, as follows:

We do hereby declare and undertake that all the information, warranties, statements

and representations provided within this Proposal are true and correct; and we also

understand that in case any of the aforesaid are found to be false then we are liable to

be disqualified, without prejudice to any other rights and actions the Employer may

exercise under the applicable laws.

For & on Behalf of the Firm

Name:

Designation:

Date:

Witness # 1:

Signature: Signed By:

Designation: Date:

Witness # 2:

Signature: Signed By: Designation Date:


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Proposal Form A-5

Template for Affidavit for Non-Blacklisting and Eligibility

The Firm/Partner shall attach original affidavit on non-judicial stamp paper (not less than

value of Rs. 500) and declaring on oath that the Firm:

a. is not in bankruptcy or liquidation proceedings;

b. has never been declared ineligible blacklisted by Government / Semi

Government / Agency or Authority or any employer till date due to the

any reasons

c. is not making any misrepresentations or concealing any material fact

and detail;

d. has not been convicted of, fraud, corruption, collusion or money

laundering;

e. is not aware of any conflict of interest or potential conflict of interest

arising from prior or existing contracts or relationships which could

materially affect its capability to comply with its obligations; and

f. does not fall within any of the circumstances for ineligibility or

disqualifications

Witnessing Form:

Witness # 1:

Signature: ___

Signed by: __

Designation: _

Date: ______

Seal:

Witness # 2:

Signature:

__ Signed

by: _

Designation:

Date:

_________

Seal:


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Proposal FORM A-6

Template for Power of Attorney (For signatory of Proposal)

[To BE PRINTED ON a PKR 100 STAMP PAPER]

KNOW ALL MEN BY THESE PRESENTS THAT by this Power of Attorney ("Power of

Attorney"),

_____________ [Insert name firm/Consortium] having its registered office at [ ], does

hereby nominate, appoint and authorize Mr. ______________ , having CNIC

No. _________________ hereinafter referred to as the "Signatory of Proposal", to do

in our name and on our behalf the following:

i. Sign and submit to Project Coordinator or its authorized nominee, the Proposal of

Firm for " ---------------------------- ", in response to the RFP advertisement dated [-]

issued by The Procuring Agency and all other documents and instruments required

to submit the Proposal.

ii. execute all such contracts, deeds, documents and instruments as may be

considered necessary and expedient in relation to the foregoing; and

iii. do and carry out all other actions as may be required by the Procuring Agency in

connection with the Proposal /negotiations as a whole;

iv. To immediately notify The Procuring Agency in writing of any impending or actual

revocation as well as any change in the terms of this Power of Attorney.

v. To do in our name and on our behalf, all such acts, deeds and things

necessary in connection with or incidental to our Proposal in response to the

above referred Proposals including signing and submission of all documents

,instruments and deeds (including correcting any deficiencies or mistakes

therein), attending any meetings organized by the Procuring Agency

(including pre-Proposal conference meetings and Proposal opening

meetings)and providing information/responses to the Procuring Agency in all

matters in connection with our Proposal.

We, [Insert name of Firm/Consortium], do hereby ratify and confirm whatsoever the

Signatory of Proposal shall do by virtue of these presents and further agree that

whatever the Signatory of Proposal shall do or cause to be done pursuant to this

Power of Attorney shall be binding on us.

Furthermore, each provision of this Power of Attorney is severable and distinct from

the others. The invalidity, illegality or unenforceability of any one or more provisions

of this Power of Attorney at any time shall not in any way affect or impair the validity,

legality and enforceability of the remaining provisions hereof.


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IN WITNESS WHEREOF, we have executed this POWER OF ATTORNEY as of [Date].

FOR: [INSERT NAME OF FIRM/ CONSORTIUM]

Signature: _________________________

Name:

Title:

CNIC/Passport No. :


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Documentary Evidence

Proposal FORM A-7 Tick

()

1 Letter of Proposal

2 General information (form A-1)

3 Financial information (form A-2)

4 Detail of contracts of experience (form A-3)

5 Affidavit of correctness of information (form A-4)

6 Affidavit for non-blacklisting and eligibility (form A-5)

7 Power of attorney for authorized representative (form A-6)

8 Evidence showing legal status of Firm and registration with Institute of Chartered Accountants of Pakistan (ICAP)

9 NTN and PRA registration Certificate

10 Evidence showing minimum 5 years in practice in Pakistan

11 Evidence showing Satisfactory ICAP rating

12 Evidence showing that the firm must be “A” ranking as per State Bank of Pakistan

13 Annual accounts showing turnover (form A-2)

14 Annual accounts showing current ratio (form A-2)

15 List of Partners attached with ICAP Registration Numbers, location and date of admission of each partner

16 ICAP Qualified Chartered Accountants (excluding partners) Employed by Firm in Pakistan enlisted with ICAP Registration Numbers, department and location

17 Resumes of Engagement Partner, Director Audit and Manager audit showing qualification and experience in required assignments

18 Names of Govt. / Semi Govt. Organization’s Auditor with reference letters, annual report extract, engagement letter etc. (form A-3)

19 Names of Power Sector Companies who have the firm as Auditor with reference letters, annual report extract, engagement letter etc. (form A-3)

20 Names of Thermal Sector Companies who have the firm as Auditor with reference letters, annual report extract, engagement letter etc. (form A-3)

This form should be duly filled to ensure completeness of quote.

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