This project is co-financed by the European Union and the Republic of Turkey

Bölgesel Rekabet Edebilirlik Operasyonel Programı’nın Uygulanması için Kurumsal Kapasitenin Oluşturulmasına Yönelik Teknik Yardım Technical Assistance on Institutional Building for the Implementation of RCOP in Turkey This project is co-financed by the European Union and the Republic of Turkey PRAG Procurement Service Contracts – version November 2010 Advance module – Day II RCP-CIC By: Berk Babila, Managing Director - Ecorys in Turkey berk.babila@ecorys.com.tr Ankara, 16 March 2011 Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Content • Terms of Reference • Purpose and role in the procurement process • Structure and templates • Objectives formulation • Results and assumptions • Estimation of inputs and costs • Requirements of personnel • Reporting and Evaluation Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference • - Purpose and role in the procurement process • - Structure and templates • - Objectives formulation • - Results and assumptions&risks • - Estimation of inputs and costs • - Requirements of personnel • - Reporting and Evaluation Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Purpose and role of the ToR in the procurement process • A key document, which describes the termsand conditions of a task to be performed • A document that sets out the working relationship betweenthe parties and communicates the mode forundertaking the assignment • A document points out the responsibilities of the partiesand the expected deliverables of theassignment Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference What is ToR? • ToRs provide clearly detailed parameters for: • whyand for whomthe operation is being done • whatis intended to be accomplished • howit will be accomplished • whowill be involved and • whenmilestones will be reached and project will be completed Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Objectives of a ToR • To ensure that: • ambiguities duringthe preparation of proposals, contractnegotiation and execution of services are cleared out • the specific task is carried out asoutlined in the OIS • the Consultant, undertakingthe task,will focus on the major issues andthe most serious, likely impacts of the task • the task is undertaken within thetime-frame planned and the budgetallocated • risks of unnecessaryextrawork, delays and additional expenses are reduced Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference ToR and other key documents • ToR has to be in compliance with OIS • - Objectives • - Assumptions • - Pre-conditions • - Risks • ToR has to be in compliance with FA -commencement date and period of execution • ToR has to be in compliance with PRAG – template • ToR has to be in compliance with State Aid Provisions • ToR becomes Contract!!! Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Responsibilities for ToR • The SRER submits ToR and budget estimate to the OS • OS revises ToR in accordance with checklists and submits to CFCU/EUD • EUD gives ex-ante approval after verification • During the implementation it is SRER’s responsibility to closely monitor the performance of the Consultant’s experts and assure a qualitative and timely implementation of the project along with ToR • At the end of the operation a final assessment of the Consultant’s performance will need to be carried out to check compliance with ToR • OS/CFCU is in charge for contractual issues incl. payments and approval of expenses with ToR Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Types • Depending on specificity of contract • Technical assistance (fee-based) • - to provide the experts specified in the contract • - to manage or supervise a project • Studies (global) • - studies for identification and preparation of projects • - feasibility studies, economic and market studies • - technical studies • - evaluations and audits • Mixed • Depending on size of contract/procedure Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Types (2) • Depending on size of contract/procedure • ≥ €200000International RestrictedTender Procedure • > € 10 000but < €200000Framework Contracts, Competitive Negotiated Procedure • ≤ € 10 000Single Tender Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference • Purpose and role in the procurement process • Structure and templates • Objectives formulation • Results and assumptions&risks • Estimation of inputs and costs • Requirements of personnel • Reporting and Evaluation Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Structure • There are no universal ToRs, which willbe suitable for anyassignment • However, there is a general structure, which should be observed whenpreparing ToRs • ToR should start with a brief description and includes objectives, activities, results, experts profile and reporting • A general structure of ToR has been drawn up by the EC in accordancewith the principles of project cycle management • The aim is to ensure that all issues arecovered systematically and that key factors related to clarity of objectives andsustainability are thoroughly examined Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Structure of ToR for TA • Background information • Objective, purpose and expected results • Assumptions and risks • Scope of the work • Logistics and timing • Requirements • Reports • Monitoring and Evaluation Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Objectives • Clear definition of thepurpose of the proposed task andexpected output for the assignment • It should be kept up-to-date during implementation • - resultsand activitiesmay change as the project progresses • - Project objective and purposeshould not change Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Formulation objectives • Before preparing the TOR the purpose must be clear • The project purpose plus the assumptions in the same row of the logframe matrix should lead to the overall objective • What outputs are required must also be clear! Remember – purpose should be achieved by the end of the project • Overall objective – why the project is important • Specific objective – why the project is needed • Check with the operation identification sheet!!! Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Purpose • The single central objective of the project in terms of sustainable benefits to be delivered to the project's beneficiaries • Derived from the core problem that the project is trying to address • One project – one purpose • - If there is more than one purpose, it is likely that the purposes are repetitive, or that they overlap with results, or that the project is trying to address too many problems at once and should be split Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Purpose (2) • The near-term impact and the immediate result of producing outputs • By definition, project purpose is outside of the direct control of the project implementation team • The team can be held accountable for producing a set of deliverables (outputs), but ultimately there is a set of important external factors outside of their control (assumptions) which may prevent them from accomplishing the Purpose • Multiple purposes tend to weaken design and diffuse the efforts of implementation teams Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Distinguish between • Purpose and activities • Purpose and results • - If the results lead to the project purpose without any assumptions in the results row of the logframe, then either the purpose is not ambitious enough, or conversely, the results are too ambitious. • - For example, the result "National network of testing laboratories and certification and inspection bodies functioning" is practically indistinguishable from the project purpose "Technical and management capabilities of quality infrastructure bodies developed". The purpose should be formulated along the lines of "Free movement of goods acquis enforced in relevant sectors". Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Check • Overall objectives • - Do the overall objectives explain why the project is important for society / sectoral development? • - Are the overall objectives inline with those elaborated in the operation identification sheet? • Specific objective • - Is there only one specific objective? • - Is it in line with the project fiche? • - Does the specific objective express a direct benefit for the target group? • - Are SMART indicators identified? • - Do these enable measuring the achievement of the specific objective? Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Service contract for TA • Overall objective • Purpose • - For larger/complex projects there can be more than one purpose (i.e one per project component) Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Remember • Objectives of the Consultant's assignment is: • To carry out certain servicesunder a Program/Component/Project • The contractualobjectives of assigning a Consultant will often be narrower and shouldtherefore be clearly formulated in the Terms of Reference as e.g.: • advice and support (technical assistance) to the implementingagency • management of a component or sub-component, • study, master plan, survey, investigation • detailed engineering design, preparation of tender documents andassistance in tendering and award • review (of a study, a design or an investigation) • contract administration and construction supervision, take-over andcommissioning • training and upgrading of staff, etc. Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Exercise Objectives formulation • Setting the overall objective and purpose Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Results • Immediate benefits for the end recipients • Often outputs are stated here to better define the workload of Consultant • Expressed as a change • Compliant with project purpose and contributing to overall objective Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Presentation of results • Either • - in order of importance • or • in chronological order • inline with objectives and listed (numbered) by project purpose or by component • very detailed (under global price) • based on Logframe • İnline with OIS (relevant results) • be quantified, timed and verifiable (SMART) • relevant to the TA Contract • Do not mix results with objectives! • State results for which the Consultant could be held responsible!!! Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Assumptions and Risks • External factors beyond the control of the Consultant but important for the implementation of the project • - define the environment and sustainability issues • - summarise factors which the project cannot, or chooses not to control • - are factors which the project does not address, but should monitor • Assumptions and risks should be aligned with the OIS • Consultant should address risks in their methodology Advanced Training PRAG Services 15-17 March 2011

Objectively Verifiable Indicators Intervention Logic Sources of Verification Assumptions Overall Objectives Project Purpose Results Means Cost Activities Pre-condi-tions Terms of Reference If results are delivered and assumptions hold true, then the project purpose will be achieved Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Assumptions and Risks (2) • Does the TOR address the assumptions outlined in OIS? • Is the probability of realisation of the assumptions acceptable? • Are pre-conditions outlined in OIS fulfilled? Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Three questions for risk assessment • Cost: does the risk have a cost impact? • Schedule: does the risk have an impact on the time schedule (timing of outputs and results of the measure)? • Output and results: does the risk have an impact on the outputs and results of the measure? • If not, then we are not dealing with a real risk Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Exercise Results and assumptions • Setting the assumptions and risks Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Division of costs under fee-based contracts • Fees: cost for hiring the expert plus administrative expenditures for executing the contract and profit • Incidental expenditures: other direct cost for the contract (reimbursable) • Provision for expenditure verification • This division is done to ease the financial management of the service contract (not to check tickets, telephone bills etc.) • Administrative costs are real costs for the consultants and they will charge you for it Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference What is covered by fees? • Cost for experts: • Cost for hiring the staff (salary, fees, insurance, leave) • Travel from the place of residence of the expert to the base of operation(s) • Per diems / accommodation in the base of operation • If the base of operation is Ankara - any travel of key expert and non-key experts to Ankara is included within the fee rates • Per diems for Ankara are also included within the fee rates (for all experts) • If the experts travel from base of operation (Ankara) to other cities within Turkey or Europe for specific missions, the travel and per diem expenses for these missions are included within incidental expenditure Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference What is covered by fees? (2) • Office-related costs: • Office Rent • Purchase or rental of office equipment • Communications – fax, telecommunications, mail, courier etc. • Consumables – not related to direct actions of Contract • Secretarial services – for experts work – office managers, secretaries, interpreters, etc. Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Rules • The Consultant is paid for days actually worked • - 7 hours – working day for short-term experts (report input in hours) • - 22 days a month for long-term experts (report in days) • Time spent for travelling exclusively and necessarily for the purpose of the Contract may be included in the number of days or hours, as appropriate, recorded in the timesheets • The Consultant's personnel is not be entitled for either sickness or casual leave provided (Project Manager may permit the Consultant to take unpaid leave during the period of execution of the contract when agreed with SRER) Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Incidental expenditure • Cover non-fee direct cost related to the contract: • Travel / per diems within the target region outside base of operation • Publications • Direct costs related to training – premises, equipment, accommodation, interpretation, training materials, food or per diems for participants • Study tours, etc. • Translations of documents, etc. • Organisation of information campaigns • Setting up of a database • Development of MIS, etc. Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Expenditure verification • Relates to the fees of the auditor who has been charged with the expenditure verification of the contract • A budget heading with the introduction of detailed expenditure verification report • A very detailed report – sufficient budget should be allocated (1-1.5% of contract value) Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Estimation of costs • Necessary to estimate the value of the contract • Includes following stages: • Estimation of human resource input • Estimation of other inputs • Valuation Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Human resources • Estimate type of expertise that you need for the execution of tasks (senior/junior, and by function – training expert, procurement and contracting expert etc.) • Estimate number of days for each task set in the ToR • Divide input on senior/junior • Estimate total number of days (senior/ junior) • Add inputs for project management – Team leader (if full time – input equals project implementation period) • Estimate the fees budget – you may use Framework Contracts costs for valuation Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Travel and per diems under incidentals • Include only travel costs and subsistence allowances for missions to be undertaken from the base of operations in the beneficiary country: • - Travel – economy class • - Per diem – EU maximum rates • Rough estimate is needed • Note that some contracts may require intensive travelling – monitoring of projects, surveys, etc. Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Logistics and timing • Project office: • How many office(s) and office space (10 sqm for each expert ) • Provided by the consultant / or beneficiary • Training premises (provided by the consultant / or beneficiary) • Check the logic of requested inputs • Specify the project start/end date • Time of implementation Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Support staff • Support staff is paid by the Consultant: • Project director • Quality manager • Project assistant(s) • Secretary(ies) • Interpreter(s)/Translator(s) • Driver(s) • Put requirements on backstopping staff only if really needed for the implementation(in exceptional cases) Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Other inputs • Publications – translation, interpretation etc. • Direct costs for studies • Training – total number of training days (man/days of training = number of participants x days of training) • Study tour: total number of man/days of study tours Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Incidental expenditure • Estimate total value of incidental expenditures: • Add your calculations for publications, training, etc. • Add an error margin not less than 10% • The provision for incidental expenditure should be stated in ToR as a lump sum. Do not give breakdown of costs! (otherwise the amounts identified become legally binding) • Provision for incidental expenditure in ToR is an upper limit on the incidental costs.Only actual costs will be paid to the consultant. Advanced Training PRAG Services 15-17 March 2011

Terms of Reference Value of contract Advanced Training PRAG Services 15-17 March 2011

Terms of Reference From consultant’s view Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Exercise Estimation of inputs and costs • Work on estimations for HR and incidentals Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey Terms of Reference Type of experts • Key experts • Other experts • Support staff and backstopping Advanced Training PRAG Services 15-17 March 2011

This project is co-financed by the European Union and the Republic of Turkey