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Terms of Reference
Procurement Professionalization Activity
Institutional Development Advisor for Procurement Service Unit (PSU)

Introduction
The United States of America acting through the Millennium Challenge Corporation (MCC)
and the Government of the Republic of Indonesia (the Government) have entered into a
US$600,000,000 Compact for Millennium Challenge Account assistance to help facilitate poverty
reduction through economic growth in Indonesia through three projects: the Green Prosperity
(GP) Project; the Community-Based Nutrition to Reduce Stunting Project; and the Procurement
Modernization (PM) Project. The Government of Indonesia, acting through the Millennium
Challenge Account Indonesia (MCA-Indonesia) intends to apply a portion of MCC funding
to eligible payments under a contract for which this Request for Qualifications is issued. Any
payments made under the proposed contract will be subject, in all respects, to the terms and
conditions of the Compact and related documents, including restrictions on the use and
distribution of MCC funding. No party other than the Government and MCA-Indonesia shall
derive any rights from the Compact or have any claim to the proceeds of MCC funding.

The objective of the Procurement Modernization Project is to achieve cost and efficiency savings on
procured goods and services, while assuring their quality satisfies the public need, and to achieve the
delivery of public services as planned. These savings should lead to greater provision of goods and
services to the economy which will positively impact economic growth.
Further, the Procurement Modernization Project will help support the implementation of the legal and
institutional reforms of Perpres 54 and 70, a newly enacted Presidential Decree on Procurement in
Indonesia. These regulations require that permanent, independent procurement service units (ULPs) be
established through the government, at national and subnational levels. While over 100 ULPs have
been newly established throughout the country in response to Perpres 54, there remains a need to more
clearly define the path to establishing ULPs at national and subnational levels, delineate organizational
boundaries, and define roles and responsibilities of the ULPs within the structure of the spending units.
The most important next steps in the procurement reform agenda for Indonesia are to build the
professional procurement workforce, create institutionalized roles and structures that provide sufficient
authority to implement good practice, and to provide a career path to incentivize adherence to best
practice.
To this end, the MCC-funded Procurement Modernization Project will be implemented by the National
Office of Public Procurement (LKPP) through two main activities: (1) Improving the procurement
function by increasing the capacity and professionalization of the procurement function (the
Procurement Professionalization Activity) and (2) Supporting the development of procurement
policies and procedures for public private partnerships (PPPs) and socially and environmentally
sustainable procurement (the Policy and Procedure Activity).
The Procurement Professionalization Activity includes the sub-activities to improve the Institutional
Structure and Professionalization of ULPs. This will be conducted in two phases. The first phase,
which is expected to encompass years one to three of the Compact Term (through March 2016), will
support up to thirty (30) ULPs (Pilot ULPs) that will receive comprehensive capacity development
through formal training and organizational and technical mentoring and an automated procurement
management information systems (Phase One). The second phase (Phase Two) will last for the
balance of the Compact Term (through March 2018) and will involve scaling up of Phase One to 70
additional PSUs, and will entail any adjustment in design, as necessary, to yield the best results for the
Project.
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Scope of Work
As part of the sub-activity of (i) Institutional Structure and Professionalization of ULPs, MCA-
Indonesia will implement an Institutional Strengthening Program to provide assistance to the Pilot PSUs
to help with institutional establishment efforts in each organizations PSU, and will help build the
organizational development capacity of the Pilot PSU and provide management skills training to
procurement staff from the Pilot PSUs as well as Pilot outside the PSUs.
More specifically, MCA-Indonesias PSU Institutional Strengthening Program will be procuring
individual consultants as mentors to help the Pilot PSU organizations with institutional establishment
efforts such as (1) establish permanent and independent ULP in accord with national and subnational
legal frameworks, (2) professionalize the Human Resource (HR) structure and career path for the
procurement workforce (functional positions), (3) establish and maintain adequate legal programs to
protect employees and the procurement process, and (4) develop and deliver public education and
outreach programs. In addition, MCA-Indonesia will be procuring a firm to conduct organizational
development and management skills training with the Pilot PSU organizations.
Within this Request for Qualifications, MCA-Indonesia (MCA-I) is seeking a consultant to assist the
Senior Advisor/Project Manager for Procurement Service Units to help with the management and
implementation of the Pilot PSU Institutional Strengthening program and to help coordinate and
oversee the implementation of the institutional establishment activities provided by individual mentors
and the organizational development mentoring and management skills training provided by a consulting
firm.
Tasks
The Consultants assignments shall include the following tasks:

Area 1: Engagement with Existing Pilot PSUs and Recruitment of New Pilots
1. Help refine and implement a strategy to build understanding and support in the GOI for
procurement reform and build interest among national and local government entities in
participating in the Procurement Modernization Project.
2. Help ensure that LKPP and MCA-Indonesia fulfill their roles and responsibilities as providers of
services and assistance to Pilot PSUs as set out in the Memorandum of Understanding signed with
Pilot PSU organizations.
3. Assist with the development and management of the process for selecting approximately 70 PSUs
for Phase Two of the Procurement Modernization Project, in coordination with LKPP.
4. To identify and help resolve barriers in concluding with candidate Pilot PSUs the Memorandum
of Understanding (MOU) that sets out the conditions and commitments for participating in the
Procurement Modernization Project.

Area 2: Management of Project Implementation
5. Proactively assist with the development, management, execution, and monitoring of the
implementation activities of the PSU Institutional Strengthening program.
6. Assist with the preparation and review of all implementation strategies, reports, and
documentation related to the Pilot PSU Institutional Strengthening program activities.
7. Support and help monitor performance of Pilot PSU Institutional Strengthening-related contracts
to ensure quality and timely performance.
8. Assist in the procurement activities of the PSU Program, to include the development of Terms of
Reference (TOR) for service providers to be procured to deliver the PSU Program and
participating in Technical Evaluation Panels (TEP) as necessary.
9. Liaise with relevant personnel/consultants in the PM Project, stakeholders in the National Office
of Procurement Policy (LKPP), and relevant stakeholders in the Pilot PSUs.
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10. Travel to Pilot PSUs to help coordinate and oversee Institutional Strengthening program efforts,
to help ensure that special Pilot needs are considered in program implementation, and to assist
with Pilot stakeholder coordination and consultation meetings as necessary.
11. Assist with efforts to ensure that the various implementation activities are coordinated among
with MCA-Indonesia-funded Pilot PSU Institutional Strengthening Program, and are coordinated
among other consultants in Procurement Modernization Project.
12. Provide technical input on Institutional Strengthening implementation strategy, as necessary,
especially regarding management of progress of Pilot PSUs and in consideration of appropriate
Indonesian regulations concerning institutional establishment at the national and subnational
level.
13. Assist with the identification of risks and changes that may impact timely implementation of Pilot
PSU Institutional Strengthening Program activities, and help develop and implement mitigation
strategies to ensure timely delivery of Project activities and deliverables.

Area 3: Knowledge Management Institutional Strengthening Program
14. Ensure the PSU Institutional Strengthening Program includes knowledge management of Pilot
PSU implementation activities, and strategy for information sharing that is easily accessible to
Pilot PSUs and sustainable.
15. Assist with the documentation and development of lessons learned, leading practices, and success
stories to help facilitate the progress of Pilot PSUs and to improve the effectiveness and efficiency
of Institutional Strengthening Program implementation strategy.

Qualifications

The consultant must have the following mandatory qualifications:

Graduate level degree (completed or in progress) in Public Administration, Business
Administration, or Public Policy or field directly relevant to the tasks of this assignment.
Must have a minimum of 5 years of experience implementing or coordinating the implementation
of institutional development or institutional strengthening project activities with national or
subnational governments in Indonesia.
Must have professional work experience in tasks that are directly relevant to this assignment and
that demonstrate that the consultant possesses the knowledge and skills to perform this
assignment successfully, such as developing strategies for institutional development with national
or subnational governments in Indonesia, managing and coordinating project implementation
team for institutional development interventions to ensure quality and timely project
implementation, and documenting and developing lessons learned and leading practices.
Experience communicating (oral and written) and interacting effectively with a wide variety of
stakeholders (including national and subnational government in Indonesia) to identify needs and
achieve desired results.
Fluent in Bahasa Indonesia and English is required (speaking, reading and writing)

In addition to the above the following qualifications are desirable:

Experience with the creation of new government organizational units at national or subnational
government level in Indonesia.
Knowledge of the legal and regulatory framework regarding decentralization in Indonesia.
Knowledge of procurement regulations in Indonesia.


Deliverables
Monthly Progress Reports that provide: a) updates on the implementation of the Pilot PSU
Institutional Strengthening Program (including summary of information regarding status of
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program implementation), b) comments on issues that need to be considered or addressed, c)
evaluation of the implementation of the Pilot PSU Institutional Strengthening Program, and d)
recommendations to address issues and to improve the structure and ensure the timely and
most effective implementation of the Pilot PSU Institutional Strengthening Program.

Trip Reports following domestic and international trips made in support of the Pilot PSU
Institutional Strengthening Program.

The deliverable schedule is as follows:

REPORT EXPECTED DATE
Monthly Progress Reports By the 10
th
day of each month (1 hard copy and
electronic version by email or CD)
Trip Report Within one week of travel (1 hard copy and
electronic version by email or CD).

Period and Place of Performance
The work is expected to be full time (40 hours per week) for 12 months of service in Indonesia during
the base contract period. It is anticipated that this level of service will be required during option years
one, two, and three. The level of service will be subject to negotiation between the parties when the
options are exercised.

Project Coordination
The Director of the Procurement Modernization Project at MCA-I, or his/her delegate will serve as the
project manager.

Services and Facilities to be provided by MCA-Indonesia
-Office space will be provided to the consultant while in Indonesia (including printing, copying, and
internet service).
-Airfare for domestic travel within Indonesia when travel requested by LKPP or MCA-I.
-Airport tax associated with domestic travel
-Lodging expenses beyond the Jakarta metropolitan area when domestic travel has been requested by
LKPP or MCA-I

Facilities to be provided by the Consultant

-Consultant will provide all other equipment and expenses as needed to perform the services except as
specifically stated to be provided by MCA-I. This includes but is not limited to: computer, travel to
Indonesia, lodging while in Jakarta, local transportation (except domestic airfare).