Overview
CDM Smith and Hatfield Consultants, serving as the Program Management Consultant (PMC) to the Millennium Challenge Account Indonesia (MCA-Indonesia) for the Green Prosperity Program (GPP), are seeking qualified firms and individuals to support cost estimation and due diligence review of funding proposals. Potential projects include sustainable agricultural enhancement and forestry production, as well as diverse renewable energy projects at various scales.
CDM Smith and Hatfield Consultants, serving as the Program Management Consultant (PMC) to the Millennium Challenge Account Indonesia (MCA-Indonesia) for the Green Prosperity Program (GPP), are seeking qualified firms and individuals to support cost estimation and due diligence review of funding proposals. Potential projects include sustainable agricultural enhancement and forestry production, as well as diverse renewable energy projects at various scales.
Anticipated services, schedule, and desired qualifications are provided below. Support should be provided within the MCA-Indonesia/PMC offices at Jalan Menteng Raya, No. 21 for all desktop services, and in the field as necessary for due diligence and negotiation support.
Cost Estimation
There is a need to evaluate proposed project costs to confirm cost reasonableness during either or both proposal evaluation and agreement negotiation processes. It is assumed that given the varying projects, that three general types of cost specialists will be necessary: professionals experienced with natural resource management projects and costs; professionals experienced with construction quantities and unit costs; and professionals experienced with cost of executing renewable energy projects. Additional resolution in the skill sets may be necessary to address different renewable energy technologies, such as bio-electric, hydro-electric, and solar projects.
General Description
Cost estimators will be needed to provide review of proposals to GPP to provide professional estimation/judgments on the cost standards for project activities and/or goods. These reviews will provide professional judgment of cost reasonableness, request clarifications, and or/or provide counter estimates to support MCA-Indonesia negotiations with applicants. Note that cost estimators will be required to sign a confidentiality agreement to protect both the integrity of the MCA-Indonesia proposal appraisal process and the confidentiality of business sensitive information provided by proposers.
Cost estimation services should provide support for two key steps of the MCA-Indonesia Implementing Agreement Process:
- Technical Appraisal Panel (TA Panel) review: Cost estimators will provide technical support to the appointed Panels to review provided costs. Such services are intended to provide cost reasonableness assessments by identifying proposed costs (by line item, unit, or level of effort) that are either too high or too low based on professional judgment or industry standard, and provide explanation and/or documentation to support counter proposed costs. Such reviews should be documented for each application, which will be utilized in the Panel decision process for award decisions.
- Agreement Negotiation: For selected proposals, cost estimation services will be required during Agreement negotiation as part of the MCA-Indonesia negotiation teams to provide pricing for counter proposal, to incorporate results of due diligence in price considerations, and/or to review new cost data associated with scope changes.
Anticipated Level of Effort
The following summarizes cost estimation level of effort estimates:
The following summarizes cost estimation level of effort estimates:
- For proposal review phase services, approximately 75 person days are anticipated between mid-April and mid-August. Such support should be provided within the MCA-Indonesia/PMC offices.
- For Agreement Negotiation Phase Services, cost estimation needs will depend on the number of awards, the results of initial technical and cost evaluations, and any potential project changes subsequent to proposal submittal. It is anticipated that approximately 70 person days will be needed primarily in July.
Due Diligence
Due diligence on each potential project must be conducted to reasonably identify any potential reputational risks to the Millennium Challenge Corporation (MCC), MCA-Indonesia, or to the GPP through association with implementation partners. Due diligence should also attempt to reasonably identify project-specific risks that may impact schedule, cost, or successful implementation. Note that due diligence personnel will be required to sign a confidentiality agreement to protect both the integrity of the MCA-Indonesia proposal appraisal process and the confidentiality of business sensitive information.
General Description
Due diligence should occur for projects that the TA Panel recommends for funding before implementation agreements are signed. The due diligence process should include desktop review, site investigation, and/or key stakeholder interviews, depending on the type and complexity of the proposed project. The following activities are anticipated:
Due diligence on each potential project must be conducted to reasonably identify any potential reputational risks to the Millennium Challenge Corporation (MCC), MCA-Indonesia, or to the GPP through association with implementation partners. Due diligence should also attempt to reasonably identify project-specific risks that may impact schedule, cost, or successful implementation. Note that due diligence personnel will be required to sign a confidentiality agreement to protect both the integrity of the MCA-Indonesia proposal appraisal process and the confidentiality of business sensitive information.
General Description
Due diligence should occur for projects that the TA Panel recommends for funding before implementation agreements are signed. The due diligence process should include desktop review, site investigation, and/or key stakeholder interviews, depending on the type and complexity of the proposed project. The following activities are anticipated:
- After the TA Panel identifies projects recommended for funding, research should be conducted on each project’s partner organization and key individual, inclusive of organizational and personal web media, news media database searches, and other publicly-accessible sources.
- Subsequent to the formal award decision, but before Implementation Agreement signing (i.e., during negotiations), more in-depth research should be conducted on Implementation Partners and the proposed project to further identify potential risks. This should include reference of the MCA-Indonesia district summaries and any additional relevant documents or data generated by/for the GPP to date; any available real property records of land ownership or lean; site investigation to document baseline conditions, legal access or logistical access considerations, and site suitability to support project development; and discussions with key local stakeholders. Queries should also be coordinated with proposers to respond to standard questions from MCA-Indonesia Legal and Finance departments.
- A due diligence report should be prepared and provided to the MCA-Indonesia to be used by the negotiation team, inclusive of the above-described Cost Estimator.
Anticipated Level of Effort
The following summarizes due diligence level of effort estimates:
Approximately 297 person days are anticipated from June through August. Efforts will be made to align travel by District to realize efficiencies in data collection and travel logistics.
Desired Role Qualifications
It is possible, and may be preferable, that the cost estimator follow the proposal through the entire lifecycle, including proposal evaluation support, conducting the due diligence, and participating on the negotiation team. In general, candidates should have the following:
The following summarizes due diligence level of effort estimates:
Approximately 297 person days are anticipated from June through August. Efforts will be made to align travel by District to realize efficiencies in data collection and travel logistics.
Desired Role Qualifications
It is possible, and may be preferable, that the cost estimator follow the proposal through the entire lifecycle, including proposal evaluation support, conducting the due diligence, and participating on the negotiation team. In general, candidates should have the following:
- University degree in a discipline related to engineering, science or business management.
- At least ten or more years of experience with cost of executing renewable energy infrastructure, smallholder targeted agricultural intensification, and/or natural resource management.
- Must be familiar with designing and constructing such projects in remote areas of Indonesia, such that material costs, labor costs, and logistical cost considerations are included in cost evaluations.
- Must be familiar with appropriate professional practices in project (risk) management and with quality control for large development projects to anticipate where delivery problems (additional costs) may be encountered.
Per the attached table, diverse expertise is desired that represent the
potential range of project types. Please fill out the attached table,
providing names, areas of sufficient expertise for either/both cost
estimation and due diligence roles, and associated rates. CVs should be
included for each person listed.
