TERMS OF REFERENCE (TOR) – REQUEST FOR QUOTATION TO LAUNCH AND MANAGE THE ENTREPRENUERSHIP ENABLEMENT & DEVELOPMENT PROGRAM (EEDP), CONDUCT BUSINESS DIAGNOSTIC AND BUSINESS DEVELOPMENT PLANS FOR SMALL & MEDIUM ENTERPRISES (SMEs), & STARTUPS
In the past a variety of international indicators such as the World Bank Doing Business Indicators (DBI) and the World Economic Forum Global Competitiveness Indicators (GCI) have indicated that access to finance in Jordan is insufficient particularly for SMEs. Additionally, the chronic and increasing level of national unemployment, particularly youth unemployment, has further exacerbated the need for investment tools to facilitate new company establishment and the resulting job creation. As such, the World Bank and the Central Bank of Jordan have established a Fund of Funds called the Innovative Startups and SMEs Support Fund (ISSF).
The ISSF was established to mobilize and direct risk capital in Jordan towards supporting innovative SMEs. Supporting innovative SMEs is seen as a potentially effective means to build on Jordan’s national investment in education through the creation and support of sustainably competitive new businesses. In addition, the ISSF is tasked with supporting the start-up and entrepreneurial eco-system as a means to accelerate and support the establishment of new companies and mitigate the risks inherent to early stage businesses.
In recent years, the role of entrepreneurs and micro, small and medium-sized enterprises has steadily gained importance being one of the driving forces for job creation, business innovation and green and inclusive growth.
The ISSF has a key focus area to support the healthy Jordanian Entrepreneurship Ecosystem through interventions that will support a strong investable deal flow of young companies that allows for the introduction of innovative solutions that continue to distinguish Jordan, and therefore allow it to continue to play a leading role in meeting the economic dimension of Sustainable Development.
The Innovative Startups & SMEs Fund (“ISSF”) is a Jordanian company with the purpose of making equity and quasi equity investments in innovative startups & SMEs directly through the ISSF or indirectly through funds, and implementing activities to support entities to create a quality deal flow of viable potential investments.
The PDO will be measured through the following Results Indicators: (i) Amount of private capital mobilized through the project; (ii) Beneficiary companies receiving financing through the project; and (iii) Beneficiary companies that introduced a new product or process.
The project is structured around three components:
- Component 1. Financing to SMEs including investment support (US$53.5 million of which US$44.75 million is World Bank financing)
- Component 2. Deal-Flow Creation Support (US$6.25 million of which US$3.125 million is World Bank financing)
- Component 3. Project Management, Coordination and Monitoring & Evaluation (US$4 million of which US$2 million is World Bank financing)
The mandate of this Terms of Reference falls under Component 2. Under this activity, the ISSF will support at least 825 entrepreneurs/SMEs to become investor ready, as well as improve the quality and variety of services provided by intermediaries and networks dedicated to the creation of deal flow in Jordan.
This ISSF program will be launched and managed with a total budgeted amount of $2.50 million fund dedicated to provide technical assistance that will target 675 young Jordanian companies that are post ideation stage, and may already have been through an incubator or accelerator, or may just have started operations. The purpose is to deliver them into investible entities of which at least 75 companies will have access to potential direct financial support in the form of “Grants”. The program aims to support the growth of these existing young companies which require specific assistance to become ready / eligible for equity or quasi-equity investments through the ISSF, its partners, its investors, or the open capital and investor market. These young companies will work on growth plans to develop innovative products/solutions, focus increased productivity, or access new markets, and be ready for investment and attracting growth capital.
The program aims to provide support to young companies on how to develop the capabilities that allow them to raise appropriate capital which will enable them to achieve their goals across their different stages of development.
Young companies that are accepted into the program to identify key business opportunities will be asked to develop plans that support a sound value proposition that is successful in securing its growth investment capital.
Against this background section, the ISSF is seeking to contract a Program Manager to design and provide a wide range of sustainable, relevant business development services to entrepreneurs and management teams at various stages of project/company development and need (Seed, Angel, Venture Capital and Growth Capital). It is envisaged that the most sustainable means to achieve this would be through working with one or more existing training companies and/or Business Development Service Providers.
The objective of such services is to ensure that the beneficiaries (entrepreneurs and management teams) will have the necessary skills and competencies to effectively manage their projects/companies at specified developmental stages. Provision of such services will reduce managerial and human related risks associated with seed, angel, venture capital and growth capital investing.
Below are the key metrics the “Program Manager” will have to achieve successfully:
- At least 675 Beneficiary Companies Receiving IR Support and BDS Services Through the Project
- At least 25 percent of Beneficiary Companies Led by Women Receiving IR Support and BDS Services Through the Project
- At least 30 percent of Beneficiary Companies Led by Youth Receiving IR Support and BDS Services Through the Project
- Of which, 600 Beneficiary Companies Receiving IR Support Through the Project
- Of which, 75 Beneficiary Companies Receiving BDS Services/ Grants Through the Project
- One of the primary criteria to receive the Grant is that the Beneficiary Companies is introducing a new product or process
SCOPE OF WORK
This ToR seeks to contract a management company (referred throughout the ToR as “The Program Manager”) to submit technical and financial offers for the management and implementation of the following:
- The Program Manager will assist the ISSF in developing qualification criteria for Vendor, and Service Providers (VSPs) who will be invited through a call for expression of interest to join the ISSF list of VSPs. The Program Manager shall describe the capabilities of the interested VSPs in a report that includes the following: Summary page, Business profile, Team availability and skills, Financial packages, description, Technical and financial performance over the last three years for corporates applying, List of clients and jobs completed over the last three years, Clients’ satisfaction through direct contact, Conclusions and recommendations. Under the supervision of the ISSF, The Program Manager will conduct an annual assessment of qualified VSPs. The Program Manager will work on qualifying a roster of vendors, and service providers (VSPs) that can provide qualified young companies into the program:
- Business legal consultancy services;
- Strategic intellectual property (IP) plans;
- Financial services, accounting and auditing;
- Organization structure, HR strategies and systems, training and upgrading;
- Market research and marketing consultancy services;
- Strategy and business planning consultancy services;
- Corporate governance, succession planning;
- Production process improvement;
- New market, service, or product feasibility studies and business plans;
- Technology & Technical design and development requirements, & strategy;
- Knowledge, learning and resource acquisition
- Funding, ownership and remuneration
- Innovation and product development
- Product architecture
- Startup strategy
- Exit, failure and restart
- Team Building
- Other engineering services
In conducting the above, The Program Manager will identify the content to be developed and delivered by the individual service provider(s) as well as the timing and integration of such content. The Program Manager shall also organize program delivery, program integration with existing programs.
- The Program Manager will deliver enabling programs such as lectures, workshops, introducing local and global case studies, guest speakers, peer to peer learning groups, business canvas workshops, MVP launch workshops, Product Strategy workshops, Investment Pitch Sessions, Angel Investor networking events, Venture Capital networking. Prepare an inception report describing all envisioned implementation details. Organize a graduation day for young companies to a panel of experts/investors. The Program Manager will Recruit and attract local, regional, and international investors to graduation days.
- The Program Manager will market the program and build awareness around the program. The Program Manager will prepare and implement a marketing plan to enroll 675 young companies into the program over 3 years. Register all applicants, and ecosystem players into a market place platform sourced by the ISSF. (ie. ISSF’s CRM and the ISSF Deal Flow platform)
- The Program Manager will conduct business diagnostic and developing business development plans for a qualified list of 75 young companies, and following their selection provide direct funding to support the implementation of development plans for the companies through the following steps;
- Business Diagnostic and Business Development Plans to identify current situation, including problems and key business challenges and opportunities that hinder the business from securing their growth investment capital to deliver their developmental goals. The business diagnostic report shall describe the current situation of the client SME, and include the following:
- Executive summary
- Company profile
- Business model
- Business development objective(s)
- Leadership and management
- Products and services
- Marketing and sales
- Operations and quality
- Accounting and financial management
- Business development priorities
- Investment capital required
- List of key business challenges
- Expected outcome(s)
- Time frame for implementation
- Estimated budget/market price.
- The Program Manager will review the business diagnostic report and the business development plans with the founders and ensure acceptance and quality of their deliverables, and will supervise and follow up the implementation.
- The Program Manager will coordinate with the founders to identify the items to be implemented according to the scope of the services provided in the program and the priorities specified in the business development plans and then sign an agreement with the founders to implement the agreed terms. The founders are responsible for selecting qualified VSPs from the ISSF list.
- The founders will sign an agreement with the selected VSPs. The Program Manager will pay directly the VSPs after completion of the service and satisfaction of the founders; in addition to a report submitted by the VSPs presenting details of the implemented service.
- The Program Manager under the supervision of the ISSF, will provide support up to $20,000 (Twenty Thousand US Dollars) of VSPs fees for implementing the business development plans.
- The startup will cover all fees if it doesn’t pursue the diagnostic outcomes through working with the appropriate VSPs from the ISSF Database, or if it fails to complete the scope signed with VSPs.
- If the startup wants to select a service provider outside of the ISSF Database list there will be a required matching financial contribution that needs to be provided by the Startup for VSPs fees.
- Should the fees of the VSPs exceed $20,000 (Twenty Thousand US Dollars) amount allowed by the ISSF, The Program Manager will receive technical support requests from the startup to implement the business development plans with their commitment to pay all amounts in excess of $20,000 (Twenty Thousand US Dollars).
- Supervise the implementation of business development plans by qualified vendors, and service providers through the contract period.
- The Program Manager with the supervision of the ISSF will apply the eligibility criteria for Startups wishing to participate in the program:
- Registration for the program is filled online on the website any time of the year throughout the duration of the program.
- Screen the submitted applications, review them, conduct a face-to-face interview, open a physical file and prepare a needs assessment report for each application based on the registration forms and interview; and finally recommend the application or reject it for participation.
- Present the accepted and rejected applications to the ISSF for approval, afterwards all applicants will be notified of their applications status.
- The Program Manager will work on the Measurement of Achieved Results and Impact Assessment under the supervision of the ISSF, will develop rules and processes to monitor and measure the results and impact of the program. A quarterly report will be prepared to measure the achievement of results and impact assessment to be presented to the ISSF. Suggested key performance indicators are included below and detailed in annex to of this TOR:
- Number submitted to participate in the program, classified by size of enterprise, number of employees, capital, sector and current markets
- Number that participated in the program classified by phase
- Number that secured their investment growth capital
- Number of enterprises achieving stability (profits and positive cash flow)
- Number of enterprises achieving growth (increase the size of the enterprise – increase geographic footprint, add new services, or products).
- Number beneficiary companies that introduced a new product or process
- Percent of female beneficiaries (25%)
- Percent of youth beneficiaries (30%)
- Impact Assessment:
- Number of enterprises that have created new job opportunities (taking into account size of the enterprise and total number of posts classified by nationality, gender, age group, qualification and grade).
- Impact of growth capital on cost structure and operating model and compensation struture to retain local talent in Jordan delivering competitiveness.
- Program Implementation Requirements that The Program Manager should prepare:
- Program procedures guidelines.
- Development of the technical requirements of the program site.
- VSPs assessment reports for accreditation.
- VSPs performance evaluation reports.
- Satisfaction reports of the startups.
- VSPs requests for registration applications.
- Interview report and needs assessment of startup founders.
- Evaluation reports for who applied to the program (accepted/rejected).
- A complete document and electronic file for each and every enterprise including all transactions during the period of dealing and contracts signing.
- Program costs and expenses.
- Business diagnostic models and questionnaire templates.
- Business diagnostic report templates.
- Business development plans templates.
- Business diagnostic and development plan presentation templates.
- Business diagnostic and business development plans presentations (via PowerPoint).
- Any other documents related to the implementation of the program, such as investment term sheets, etc.
- Monitoring And Evaluation
- The Program Manager will conduct an evaluation process by asking beneficiary all participating stakeholders to rate program.
- The Program Manager will prepare statements of expenditure and program costs.
- Up-to-date program implementation expenditure
- The Program Manager will submit periodic reports to the ISSF, including:
- Quarterly achievement reports
- An annual performance report
- A completion performance report
- Reports will show;
- Monthly awareness building initiatives, and number of applicants
- # of applicants screened
- # of applicants rejected
- Completion rate of Business Diagnostics
- Startup completion of work with VSPs
- Startup satisfaction rating of VSPs
- Startup Capital raised
- The ISSF is expected to follow up on the implementation of the above-listed tasks, either by joining visits together with The Program Manager to client startups, or reaching out directly to client startup founders for feedback on conducted assessments.
- The ISSF will conduct an annual evaluation for the performance of The Program Manager.
- The ISSF will receive regular reports on the performance of the programs in the form of management reports, which will include updated project indicators based on the project results framework.
- Professional service providers will also provide reports to the ISSF on FM and safeguards screening and management in accordance with the criteria described in the sections on safeguards and FM in the POM.
The contract duration is expected to be 3 years based on the annual evaluation of The Program Manager’s performance and achievement. The ISSF will either, on their own or through a hired third-party, complete the evaluation of The Program Manager’s performance and achievements against the agreed deliverables in the signed contract. In the case of poor performance, the ISSF reserves the right to cancel the contract without any obligations; in such circumstances, the ISSF will provide The Program Manager with a written notice of their decision to terminate the contract three months in advance of the determined ending date.
There will be none-fungibility between the BDS grants and the rest of the expected activities.
The Program Manager will be responsible for the confidentiality of all information and documents. Sharing information with a third party is prohibited. The Program Manager will sign (a) confidentiality agreement(s) that cover(s) engagements with the ISSF, and all program stakeholders.
- The Program Manager shall ensure that the required resources are available to meet the expected work orders from the ISSF at any point during the time frame of this potential engagement.
- The party awarded the project shall be required to submit a performance guarantee with the total amount of the tender and renewed annually until the completion of the project.
4. ELIGIBILITY CRITERIA
- The Program Manager must meet the following criteria for eligibility:
- Registered as a company in Jordan with technical and practical experience in managing development programs.
- Minimum five years of experience in the field
- Qualified management team members in similar projects.
- Familiar with SMEs’ and startups needs and challenges in Jordan.
- Reflect the network that The Program Manager has to local Jordanian, regional, and international entrepreneurial ecosystems that will contribute to deliver the ISSF mandate.
- Extensive experience designing and delivering Investment Readiness (“IR”) training programs for young firms (Note: Experience adjusting and implementing IR programs for developing countries will be highly valued.) Good technical and financial reputation.
- Team and management staff should be residents of Jordan.
- Capacity to deploy the program in Jordan (for example, availability of a large pool of highly qualified mentors willing to travel, connections in the region such as local partners who can help implement the program, and so on).
- Capacity (with ISSF) to contribute to developing a network of local and international investors for the pitch events.
- SMEs & Startups Registration Criteria:
- The enterprise (small or medium) or Startups has to be registered in Jordan and operational for three years or more
- The enterprise’s activity is in line with the strategy of the ISSF.
5. REQUEST FOR PROPOSAL
Taking into consideration all of the above items, please submit the following to the ISSF offices located in Jabal Amman 3rd Circle opposite of the Ministry of Planning, Middle East Insurance building first floor no later than 12 noon of Thursday the 30th of May, 2019:
- A separate technical proposal submitted in a sealed envelope, labeled “Technical Offer”, followed by company name and date of submission, stamped with the company’s stamp. The technical proposal should consist of a clear approach to achieve the program objectives described herein. The technical proposal needs to provide sufficient detail how these objectives will be met, monitored, evaluated and modified if necessary and must include the following:
- The generic stages of project/company development (Seed, Angel, Venture Capital and Growth Capital) and their characteristics.
- The required skills sets and knowledge sets required by the entrepreneur and management teams at each stage of project/company development.
- The Program Manager will also use the findings of i(a) and i(b) to categorize and identify the needs of each SME applying to benefit from the Program.
- A mapping of the existing incubators, accelerators, business development services providers and training companies and categorizing what each thereof provides in terms of skillsets and knowledge sets. As a result, the Program Manager will also identify the existing gaps in the market, if any, and the Program Manager’s plan to address these gaps in order of priority.
- Company’s legal registration documents
- Proof of practical experience.
- CVs for each of the program management team members including their job titles, qualifications, years of experience, nationality and languages.
- Program implementation methodology aimed to assist 675 Startups in 3 years.
- A separate itemized financial proposal submitted in a sealed envelope, labeled “Financial Offer”, followed by company name and date of submission, stamped with the company’s stamp.
- Companies are requested to propose a fee structure that can be embedded within the fees listed herein at no extra cost by the ISSF. This will be a significant part of the selection criteria.
- Company and partners financial position for the last three years (financial statement).
- A detailed financial description of the offered service for the duration of the contract (3 years).
- The Technical proposals will be evaluated first and separately from the financial proposals. The financial proposals shall be returned, sealed and unopened, to the parties who did not pass the technical review. The ISSF will not be obliged to provide justification for the technical review results.
Deal Flow scoring matrix
|Segmentation of Entrepreneurial development stages and the criteria for the segmentation.||Profile of entrepreneurs to be targeted and evaluation criteria to be used taking into consideration innovation, scalability, gender and location (governorates)||Identification of where investment readiness services apply and where business development services apply and the rationale||Documented feedback from investors and VC funds (Seed, early stage, VC and Private equity) as well as incubators and accelerators as to the expected competencies and knowledge required at each stage (for the entrepreneur and/or management team)||Identification of skills and knowledge required at each stage and their classification (investment readiness or business development).||Identification and evaluation of local training companies, trainers, mentors, coaches and consultants who can provide the required investment readiness training and business development services.||Identification of gaps in the provision of investment readiness and business development services, and suggested mitigation measures.||List and types of agreements with existing services providers of applicable. Some bidders may choose to engage third parties to provide services.||Monitoring and evaluation plan and documentation.
Description of how to mitigate challenges.
|Scheduling and execution of the program to reach 825+ beneficiaries over the period of the contract.||Communication and outreach plan to communicate with the target market in a gender balanced manner and taking into account||Company track record on similar projects and team experience||
|Scale||1 – 5||1 – 5||1 – 10||1 – 10||1 – 10||1 – 10||1 – 10||1 – 10||1 – 10||1 – 5||1 – 5||1 -10||0 – 100|
|Bidding Company Name|
Company track record on similar projects
|Projects||From Period||To period||Number of trainees||Size of project||Contractor
COUNTRY : Jordan
Innovative Startups Fund Project
|Project Development Objectives|
|The project’s development objective is to increase private early stage equity finance for innovative small and medium enterprises (SMEs).|
|Project Development Objective Indicators|
|Intermediate Results Indicators|
|Project Development Objective Indicators FY|
|Indicator Name||Baseline||YR1||YR2||YR3||YR4||YR5||End Target|
|Private Capital Mobilized||0.00||20000000.00||30000000.00||45000000.00||55000000.00||71500000.00||71500000.00|
|Private Early/Seed Stage Capital Mobilized Through the Project||0.00||10000000.00||15000000.00||25000000.00||30000000.00||38500000.00||38500000.00|
|Private Venture Capital Mobilized Through the Project||0.00||10000000.00||15000000.00||20000000.00||25000000.00||33000000.00||33000000.00|
|Beneficiary companies receiving financing through the project||0.00||20.00||50.00||90.00||140.00||200.00||200.00|
|Beneficiary companies receiving private Early/Seed Stage financing through the project||0.00||40.00||72.00||112.00||144.00||160.00||160.00|
|Beneficiary companies receiving private VC financing through the project||0.00||10.00||18.00||28.00||36.00||40.00||40.00|
|Beneficiary companies led by women receiving early stage financing through the project||0.00||25.00||25.00||25.00||25.00||25.00||25.00|
|Beneficiary companies led by youth receiving early stage financing through the project||0.00||30.00||30.00||30.00||30.00||30.00||30.00|
|Beneficiary companies graduating from the Deal Flow component receiving financing through the project||0.00||0.00||5.00||10.00||15.00||20.00||20.00|
|Beneficiary companies that introduced a new product or process||0.00||100.00||100.00||100.00||100.00||100.00||100.00|
|Intermediate Results Indicators FY|
|Indicator Name||Baseline||YR1||YR2||YR3||YR4||YR5||End Target|
|Total Financial Intermediaries receiving financing through the project||0.00||1.00||4.00||7.00||10.00||10.00||10.00|
|the part of the component||0.00||1.00||2.00||3.00||4.00||4.00||4.00|
|Early/Seed Stage financial intermediaries receiving financing through the project||0.00||2.00||3.00||4.00||5.00||6.00||6.00|
|Beneficiaries receiving acceleration services for 4-6 months||0.00||15.00||45.00||90.00||150.00||150.00||150.00|
|Female beneficiaries receiving incubation/acceleration services for 4-6 months||0.00||25.00||25.00||25.00||25.00||25.00||25.00|
|Young beneficiaries receiving incubation/acceleration services for 4-6 months||0.00||30.00||30.00||30.00||30.00||30.00||30.00|
|Prospective Angel investors receiving training||0.00||0.00||10.00||20.00||30.00||30.00||30.00|
|Shareholder or partnership agreements signed/completed with equity finance providers/financial intermediaries||0.00||1.00||2.00||2.00||2.00||2.00||2.00|
|Beneficiaries satisfied with services received and performance||0.00||50.00||50.00||50.00||75.00||75.00||75.00|
|Beneficiary companies receiving IR support and BDS services through the project||0.00||130.00||265.00||400.00||535.00||675.00||675.00|
|Beneficiary companies led by women receiving IR support and BDS services through the project||0.00||25.00||25.00||25.00||25.00||25.00||25.00|
|Beneficiary companies led by youth receiving IR support and BDS services through the project||0.00||30.00||30.00||30.00||30.00||30.00||30.00|
|Beneficiary companies receiving IR support through the project||0.00||120.00||240.00||360.00||480.00||600.00||600.00|
|Beneficiary companies receiving BDS services through the project||0.00||10.00||25.00||40.00||55.00||75.00||75.00|
Following to item 6 in the tender announcement published in the newspapers, as well as items 3.2 of the TOR published on the ISSF Website, please note the following important adjustment:
– Parties submitting proposals will need to include a bid bond to equivalent 10% or their bid price.
– The party awarded the project shall be required to submit a performance guarantee equivalent to 10% of the award value, annually renewable with the same value of the balance of the award value.
لاحقاً للبند رقم (6) في إعلان طرح العطاء الذي تم نشره في الصحف الرسمية، وتبعاً لكل من البنود رقم (2.3) الواردة في الشروط المرجعية المنشورة على الموقع الإلكتروني للشركة(ISSF)، يرجى ملاحظة كل من التعديلات الهامة التالية:
– يتوجب على جميع الشركات التي قامت بإرسال مقترحاتها، تقديم كفالة دخول عطاء بما يعادل 10٪ أو عرض سعر.
– يتوجب على الشركة التي أحيل عليها العطاء تقديم كفالة حسن تنفيذ بما يعادل 10 % من قيمة المكافأة، قابلة للتجديد سنوياً بنفس قيمة المكافأة
Please note that Thursday 30/05/2019 the last day to receive technical & financial proposals at 12:00 PM in ISSF offices located on 3rd Circle, Tawfiq Abu Al-Huda St, Middle East Insurance Company Building, 1st Floor.
احيطكم علماً بأن اخر يوم لاستلام العروض الفنية والمالية هو يوم الخميس الموافق 30/05/2019، حيث يتم استلام العروض في مقر الشركة الكائن في جبل عمان- الدوار الثالث/ مقابل وزارة التخطيط والتعاون الدولي الطابق الأول من بناية الشرق الأوسط للتامين لغاية الساعة الثانية عشر ظهراً.
كما أود التذكير ولفت نظر عنايتكم بأن اخر يوم لاستلام العروض الفنية والمالية هو يوم الخميس الموافق 30/05/2019، حيث يتم استلام العروض في مقر الشركة الكائن في جبل عمان- الدوار الثالث/ مقابل وزارة التخطيط والتعاون الدولي الطابق الأول من بناية الشرق الأوسط للتامين لغاية الساعة الثانية عشر ظهراً. تقديم ضمانة لأداء وسير العمل ما يعادل 10 % من قيمة المكافأة، قابلة للتجديد سنوياً بنفس قيمة رصيد قيمة الجائزة.