Terms Of Reference For Payroll System At Oxfam

1  BACKGROUND

Oxfam is a worldwide development organization that mobilizes the power of people against poverty. In Nigeria, we work to influence policy change in favor of the poor and most vulnerable, promoting food security and supporting small-scale farmers to improve the livelihoods of men and women in rural areas. We focus on meeting vulnerable people’s needs, saving lives, sustaining increased incomes for the poorest, and transforming attitudes about women’s roles and rights.

We increase active citizenship, and the accountability and transparency of the public and private sectors; and central to our work is the belief that power relations need to change to enable poor people to demand and claim their rights. Our core values are equality, empowerment, solidarity, inclusiveness, accountability, and courage; with the pillars of our national work being accountable governance, gender justice, and just economies.

Oxfam in Nigeria currently has about 47 staff spread across different states in Nigeria and managing the payroll process has become tedious and time-consuming.

2  OBJECTIVE

This term of reference seeks to provide a payroll system for Oxfam in Nigeria which can help save time and money to enable HR and Finance staff to focus on other productive activities. Below are the specifications the service should meet.

3   SPECIFICATION

3.1  Functional requirements

Payroll processors:

a. Input:

• Manage monthly salary and deduction changes with accuracy, where needed additions of any deduction or arrears with ease.
• Interface with other existing software (Success factor -SAP) to eliminate the manual entry of data and shorten processing time.
• Employee records and profiles: To include personnel numbers/personal bank account/ statutory numbers and expat details like passport and work permit details.
• Employee Divisions: Based on country, locations, departments, and positions.
• Intuitive upload functionality.
• Ability to support and effect internet banking – web-to-bank payments.
• Ability to generate electronic and printed pay slips at the Employee Self Service
• Ability to support electronic and digital signatures.
• Ability to produce monthly payroll exception reports, payroll management reports, end-of-year reports, and statutory reports.

b. Processing

• Automate payroll calculation, integrating all calculations performed outside the system (loans, pro-ratio, miscellaneous deductions, final pay calculations) Monthly exchange rate for salaries in other currencies.
• Computation of taxes in accuracy, accommodate provisions for Income tax and the benefits provided such as provident funds, Individual insurance schemes, personal relief, allowances, and taxable pay.
• Computation and deduction of staff salary advance/Loans and outstanding float deductions.

c. post-processing and reporting (Finance side)

• Offer online validation of the payroll, ensuring payments are performed based on approved payroll results.
• Payment file matching the bank’s required format, no manual intervention.
• Generate payroll-related reports such as Tax and Pension remittances etc. in required formats for uploading to the authorities, and any other on-demand reports.
• Provide support to employees through designated staff about their pay, including answering queries and resolving any issues that may arise.

1. Remote access with the ability to do payroll processing remotely from any location. Elimination of IT hardware required to implement the solution.
2. The payroll service provider will ensure that all payroll data is backed up and stored securely, to protect against data loss and unauthorized access.
3. Updating the government’s statutory changes should be simple and seamless.
4. Security features – allow only authorized personnel to access the system,
   1. User management should be role-based.
   2. Track actions on an audit log.
   3. Include multi-factor authentication.
5. The solution must be compliant with the Global and local data protection laws. This involves collecting and maintaining accurate employee data, including personal information, salary details, and tax information.
6. The solution should include encryption for data at rest, in use, and during backups.
7. Vendor to share a Service level agreement for review detailing payroll system uptime (minimum 99%), performance, security, support plan, and data management plan.
8. The payroll system should be easy to scale in terms of new countries, staff counts, etc.
9. Include System documentation-including user manuals and systems administrators guides/manuals.
10. The payroll system should be bonded and insured and have high-security encryption. The Provider should also describe how employee information will be secured.

Other users:

Capability to automatically generate and share staff pay slips and P-9 forms for online tax returns.

The capability to allow staff to access the documents on a self-serve module and mobile functionality is desired.

3.2         Technical requirements

1. Infrastructure: The system must be cloud-based. This entails access to the payroll system must be anytime, anywhere, and on various devices.
2. Integration: The following integration should be possible with the payroll system;
   1. Integration with Pastel accounting software
   1. Integration with SuccessFactors HR system
   1. Integration with Azure Active Directory
   1. Integration to timesheet
3. Scalability: The system should support both scale-up and scale-down as soon as required.
4. Support: The provider should be able to provide ongoing support for the system as may be required by administrators and users.
5. Proof of Concept: The provider should be able to provide 1-month proof of concept to Oxfam at no additional cost.
6. Security: The payroll system should be bonded and insured and have high-security encryption. The Provider should also describe how employee information will be secured.

4.    SCOPE OF WORK AND METHODOLOGY

The Consultant will be required to prepare a detailed methodology and work plan indicating how the objectives of the project will be achieved, and the support required from Evidence Action.

Phase 1: Planning Phase:

• Selected vendors will hold at least 2 phases of separate meetings with involved parties.
• Discuss and agree on the user interface, modalities, and objective of the proposed system/software.
• To do a presentation of existing software to the involved parties through a demo presentation.

Phase 2: Internal Consultations:

• The in-house meeting between the involved parties to decide which vendor should be contracted.

Phase 3: Supplier Demo

• The successful vendor will provide a demo version to the involved parties to test run the system/software and if there are suggested changes to be made to the system, such changes will be taken into consideration by the vendor.

Phase 4: Proposed system

• To do a presentation of the new software to the involved parties through a demo presentation.
• Discuss data requirements, migration, piloting, and the changeover timeline.

Post-Go-Live Phase:

• Develop an implementation guide, user guide, and project overall documentation.
• Provide comprehensive training on how to manage and use the software portal to designated staff and others.
• Upon completion, provide access to the software Portal, front-end, configuration page (GUI), and API on demand to Oxfam Novib, Nigeria
• Provide six-month to 1-year post-development remote security and technical support to the management of the software.
• Provide ongoing user support and consultation throughout the duration that Oxfam Nigeria uses the system.

• DELIVERABLES

The Consultant will submit the following deliverables as mentioned below:

• A fully developed and functional payroll automation system with all the features as mentioned in this TOR.
• Full access details of system/software, backend, and hosting platform.
• A comprehensive manual and a user guide.
• comprehensive pre-launch training and ongoing support to the users.
• Service Level Agreement

Only quotations with combined scores of at least 70 points for the technical award criteria (approach paper and CV) qualify for the financial evaluation.

Interviews may be organized with the Bidders with the highest-scoring quotations. The purpose of the interview is to seek further clarification on the submitted quotations and learn more about the background and previous experiences of proposed service providers and their competencies. After the interviews, the total points scored on the award criteria can be reassessed.

• DURATION, TIMELINE, AND PAYMENT

The total expected duration to complete the assignment will be no more than 7 weeks from the contract start date. All installations, configurations, and activation of service for usage should be completed within 7 weeks of contract signing. We envisage to commence the payroll software in May 2024.

1. Payments should be made to the Provider for service every quarter at no additional cost.
2. The contract should be a 12-month duration with provision for a possible exit in 30 days with prior notice from Oxfam Nigeria.
3. Oxfam will deduct withholding tax from the provider’s total payment according to the FIRS guidelines.

• PROPOSED COMPOSITION OF TEAM

The Consultant needs to demonstrate that they have a competent and knowledgeable team with the capacity to deliver on this project. The team should have worked on similar projects before and should be present throughout the implementation of the project. The Consultant also needs to demonstrate that their team can provide ongoing user support with a reliable contact person. Should the project be scaled to other countries, they should have the capacity to implement and support in multiple countries.

• ELIGIBILITY, QUALIFICATION, AND EXPERIENCE REQUIRED

Eligibility:

Professional software application firm with proven expertise and experience in providing excellent payroll solutions to international organizations or multinationals. The provider must be responsive and willing to work collaboratively and effectively with Oxfam Novib in Nigeria towards delivering a high-quality system.

Experience:

• Substantial experience in the delivery of cloud-based payroll solutions to International Organizations. The proposed solution should be a native cloud, subscription-based, that will not require any investment in IT infrastructure (hardware and software) to implement. The vendor should provide an architecture of the solution.

• Ability to deliver the requested solution demonstrated by a detailed project implementation plan with clear milestones and deliverables at each milestone. The project plan should also highlight the project team, their competence in the project, and the project escalation matrix.

• Demonstrable relevant payroll software applications set up in Nigeria or globally.

• Provision of tax clearance certificate

• Proven integration of payroll software to other ERP systems

• Willing to work with Oxfam Novib in Nigeria to ensure the final product is of extremely high quality.

• The provider should have a minimum of 2 similar contracts, preferably with corporate organizations (INGOs, Governments, Private sector employers, etc.), and provide evidence of these contracts. Also, references from other organizations would be accepted.

• The provider must have a minimum of 4 years of relevant experience in providing the level of service as described in this term of reference.

• EVALUATION CRITERIA

This section contains the criteria that Oxfam Nigeria shall use to evaluate and qualify tenderers. No other factors, methods, or criteria shall be used other than the ones specified in this tender document. The tenderer shall provide all the information requested in the forms. Within each stage, an initial evaluation will consider whether every instruction and requirement contained within the tender document has been fulfilled.

STAGE 1: PRELIMINARY EVALUATION

Bidder shall be required to provide the following documents and the evaluation will be on a pass/fail basis:

Mandatory Document ( Proposals will be rejected if not provided registration and two listed below)

• Audited reports and accounts for the last three (3) years
• Certificate of incorporation/ registration- Mandatory
• Company profile  (preferably not more than 15 pages)
• Valid Tax Compliance Certificate
• Filling supplier enrolment form (Annex 1) with (TIN) Tax Identification Number from the country of operations
• References from previous clients (at least 3 including name, email, title & tell numb)

NB: Only bidders who will provide all the preliminary requirements will proceed to technical evaluation.

STAGE 2: TECHNICAL EVALUATION CRITERIA
The tenderers shall be evaluated based on the criteria indicated below.

Max Score Bidder’s Score

• No. of years the service provider has been in the business of providing payroll services (Max 10 points)
• Provide a list of qualified personnel with over 5 years experience. (Provide evidence using a CV and relevant professional certificates. The staff should have graduate studies qualifications, relevant professional certifications, and an outlined summary of similar projects the staff has worked on.

·         3 qualified staff and above – 5,

·         2 Staff members – 3,

·         1 Staff Member – 1 (Max 5 point)

• Provide a list of clients you have provided similar services to in the past 10 years. (1 mark for each client served for up to 10 clients). (Max 10 points)
• Provide reference letters/recommendation letters from INGO-type clients in  Nigeria or within Africa to whom you have provided similar services in the past 5 years. (The tenderer should avail reference letters from the clients served. Two marks for each client served for up to 5 clients.) (Max 10 points)
• Payroll Software: Solution with the capability to provide all the requirements enlisted under section 2 of this ToR “Purpose of the Consultancy”. (The bidder should explain how each of the criteria will be met; and be ready to display that in a demo meeting. 2 marks for every 10% of criteria met) (Max 20 points)
• Value adds (Any value-added services that the bidder provides over and above the tender specifications).
• Yes – 5
• None – 1

TOTAL SCORE 60

STAGE 3: FINANCIAL EVALUATION

• The Financial Proposal should identify a separate amount, fees, levies, and other charges imposed under the law on the consultants, the sub-consultants, and their personnel. Please note that Oxfam is exempted from VAT tax. Expression of the price of services in local currency. Total costs required to successfully execute tasks including labor charges within budget and demonstrated value for money.
  
  
• Hidden costs lower the hidden costs the higher the score (the best scenario is no hidden costs).
  
  
• Possibility of negotiating rates based on client standing, show proof. Yes or No.
  Professional indemnity. Yes or No.

STAGE 4: AWARD

The award will consider both the technical and financial aspects.
Criteria Weighting Comments

• Quality 60% Based on the quality of the service & works provided with evidence.
• Price 40% Based on the total price quoted in the tender
• Score = points available x (lowest price offered/vendor offer price)
  Total Score 100%

You are reminded that throughout the process Oxfam Nigeria will continually assess all contact with the bidder’s organization including compliance with the process, presentations, and on-site representatives. Oxfam Novib in Nigeria reserves the right at its sole discretion to disqualify without further consideration any submission that does not satisfy these basic requirements.

Acceptance of Successful Tender

Taking into consideration the recommendation of the Tender Committee, Oxfam Novib in Nigeria will make the final choice of the awarded firm and will then send a contract to the successful applicant. After the submitted document is verified, and the selected firm has been verified, the firm will then be obliged to sign the contract for the stated amount. Any amendment to the awarded tender will be documented as an “Annex” to the contract and will be determined by Oxfam Novib, Nigeria.

Briefings for Unsuccessful Participants

Oxfam Novib in Nigeria intends to offer a formal notification to every Bidder submitting an unsuccessful proposal. Oxfam Nigeria reserves the right to control the format and content of any such notification, and to limit it in any way believed by Oxfam Nigeria to be appropriate (which includes, in exceptional circumstances, the right to refuse a briefing without giving any reason for doing so).

LANGUAGE OF BID

The bid, as well as all correspondence and documents relating to the bid, shall be written in English.

CURRENCIES OF BID

All prices shall be quoted by the Bidder in NAIRA unless otherwise stated.

BID VALIDITY

Bids shall remain valid for at least 60 calendar days after the date of the bid submission deadline as prescribed by Oxfam Novib in Nigeria. A bid valid for a shorter period shall be rejected as non-compliant.

HOW TO APPLY

FORMAT FOR SUBMISSION OF BIDS

You are required to submit the supplier enrollment form (annex I) attached to this TOR document as part of your response.

Soft copies for both the Mandatory Document (mentioned Stage 1), technical (mentioned Stage 2), and financial (mentioned Stage 3) proposals should be sent to [email protected]in THREE separate pdf titled in a single email. The subject line shall be Marked “TOR FOR PAYROLL SYSTEM- OXFAM”

DEADLINE FOR SUBMISSION OF BIDS

Deadline for submissions is Sunday, 12th May 2024, 12.00 pm.

Inquiries:

Questions arising from this document should be sent to [email protected]  by 7th May 2024 before 5 pm COB. Note that this email is only for clarification requests and it is not for tender submission. Bids submitted to this email will be rejected.

LATE BIDS

Oxfam Novib in Nigeria shall not consider any bid that is submitted after the deadline for submission as stipulated. Any bid received by Oxfam Nigeria after the deadline for submission of bids shall be declared late and rejected.