May 16, 2014
The U.S. Agency for International Development (USAID) funded Financial Sector Development Program
(USAID/FINREP-II), implemented by Financial Markets International, Inc. (FMI), intends to provide
technical support to the National Commission for the Regulation of the Financial Services Market (FSR)
in the development of guidance materials for FSR regulators and market participants in view of Nonstate Pension Funds (NPF) transferring from Ukrainian National Accounting Standards (NAS) to
International Financial Reporting Standards (IFRS).
With this Request for Proposal (RFP), USAID/FINREP-II is soliciting proposals for the creation of
guidance materials for the FSR to utilize, among other things, when updating their regulatory policies
and reporting policies, respectively, and to ensure proper oversight of daily NPF accounting operations
that comply fully with IFRS. Eligible bidders include professional associations, incorporated businesses,
registered private entrepreneurs, or other legal entities with demonstrated capacity to perform the work.
The overall goal is to develop guidance materials for use by the FSR and market participants that
include, in particular; (1) recommendations regarding the transformation of financial reporting by NPFs
done under NAS to those done under IFRS; (ii) recommendations on further application of IFRS for
purposes of keeping accounting records and preparing financial reporting by NPFs; and (iii) educational
materials for IFRS record keeping at NPFs and for asset valuation in accordance with IFRS (referred to
hereinafter collectively as guidance materials). Discrepancies may also exist between requirements
under IFRS and Ukraine’s internal regulations, determined by the Law of Ukraine, the FSR, and the
SSMNC, for evaluating and accounting for NPF assets. These discrepancies will need to be identified
and changes recommended.
Scope of Work:
The Contractor will cooperate closely with designated USAID/FINREP-II representatives and the FSR
and keep them informed on the progress made in development of the IFRS guidance materials. The
Contractor will be responsible for the creation of all written materials, the exchange of files and
comments between USAID/FINREP-II and the FSR, the submission of the final version of guidance
materials, which includes the development of two training programs for the FSR, and for conducting
presentations at two training seminars for the FSR on use of the guidance materials. The Contractor
must ensure that the guidance materials conform to the agreed requirements.
The guidance must be available for the FSR to utilize in November 2014 and both training seminars
must be held before the end of December 2014. Additionally, the Contractor must identify any
differences between IFRS requirements and FSR regulations regarding accounting, reporting, and
The Contractor will be expected to:
 Conduct a comparative analysis of requirements under Ukrainian law/regulation and IFRS
requirements for maintaining accounting records, reporting and disclosing information by NPFs and
identify differences when complying with the above requirements for purposes of the preparation of
financial reporting by NPFs;
 Conduct an analysis of international best practices in IFRS application, particularly when determining
fair value of those assets that have no quotations on an active market;
 Assisted by FSR and selected NPFs, conduct trial transformations of sample NPF financial reporting,
develop and provide recommendations on the transformation of NPF financial reporting done under
NAS into IFRS financial reporting;
 On the basis of the comparative analysis of the requirements of the Ukrainian legislation and IFRS,
international best practices for IFRS application, and trial transformations, develop and provide
guidance materials on the application of IFRS for the purpose of keeping accounting records and
financial reporting by NPFs, including a list of any discrepancies between Ukrainian
legislation/regulations and IFRS or international best practices, and examples of financial assets
valuation, including those assets that have no quotations on an active market;
 Develop curricula and materials for two training programs for FSR regulators based upon the
guidance materials, one on NPF accounting under IFRS and one for proper valuation of assets
under IFRS; and
 Assist in provision of training on the guidance at two seminars for FSR regulators and industry
Technical Proposal Requirements:
The proposal, all documents and correspondence related to the RFP must be written and submitted in
Ukrainian or English. Supporting attachments (e.g. company registration, references, etc.) may be in
Ukrainian only.
The Contractor should have expert knowledge of the legal requirements and intricacies specific to the
operation of NPFs in Ukraine, and have practical experience applying IFRS with respect to the principles
of financial reporting that concern evaluating financial assets and financial liabilities. In particular, the
Contractor should possess experience measuring the fair value of financial instruments that are not
traded on an active market. Such practical knowledge can be proven by demonstrating past audits of
financial statements prepared in accordance with IFRS, especially audits of institutional investors (e.g.,
non-state pension funds, collective investment institutions) whose investment portfolio included various
financial instruments with no active market.
The following required documents comprise the proposal:
A cover letter signed by an authorized company representative and stating the company’s
acceptance of the terms and requirements of the RFP. The letter must designate a person with
contact details for any communications needed during the bid review process.
Documents that indicate that company is incorporated or legally organized under the laws of
Ukraine and is more than 50 percent beneficially owned by individuals who are citizens of Ukraine,
namely an extract from the Single State Register of Legal Entities and Individual Entrepreneurs and
an extract from the Charter. If company founders are legal entities, it is also necessary to provide
copies of their formation documents that prove that more than 50% of their authorized capital is
owned by Ukrainian citizens.
Evidence of qualifications/experience that are relevant to the above scope of work, including,
resumes of key individuals that will be involved in preparing the guidance, up to three references
from recent clients (references should be no older than 2 years), and information on any
professional awards.
A proposed Work Plan to carry out the tasks, complete with a detailed timeline and breakdown of
activities for completing the guidance and training programs.
Cost Proposal Requirements:
A cost proposal should contain the budget for producing the guidance materials and developing the two
training programs. This budget should disclose major cost items (salary, fees, overheads, profit, etc.) to
allow for comparison. The cost should be indicated in both Ukrainian hryvnyas and US dollars at the
official exchange rate established by the NBU as of the date of the cost proposal submission. The
payment will be effected in Ukrainian hryvnyas at the official exchange rate of hryvnya to US dollar
established by the NBU as of the date of issuing the invoice.
A VAT charge is indicated as a separate item (No payment of VAT will be made1). The cost proposal
should be signed by an authorized representative of the company and submitted in a sealed envelope,
separate from the technical proposal. The validity period stated in the cost proposal should be at least
forty-five (45) calendar days after the proposal deadline.
Proposal Evaluation Method:
Submitted proposals will be reviewed and evaluated by a committee consisting of representatives from
USAID/FINREP-II and the FSR. The proposals will be evaluated using the following criteria:
Technical Proposal:
Quality of prior work
Quality of proposed personnel
Quality of proposed work plan
Cost Realism and Price:
The Technical Proposals will be evaluated first and ranked in terms of their quality and merit, based on
the above evaluation criteria. Cost Proposal is a factor in the selection process, and will increase in
importance with the degree of equality of the technical proposals. When bidders are considered
essentially equal in terms of technical capacity, or when the cost proposal of a bidder is significantly high
to diminish the value of the Technical proposal, cost may become a determining factor.
The five (5) best technical proposals will be evaluated on cost realism and price. Cost proposals will be
evaluated based on whether proposed costs suggest a clear understanding of engagement
requirements and whether they comply with the key elements of the technical proposal.
USAID/FINREP-II intends to award a contract based only on written proposals; therefore, both technical
and cost proposals must be the best and final proposals of bidders. USAID/FINREP-II reserves the right
to conduct discussions and request clarifications before awarding a contract if the Head of the Selection
Committee deems it necessary.
USAID/FINREP-II may exclude a bid if it is so deficient as to essentially require a new technical
proposal. USAID/FINREP-II may exclude a bid so unreasonably priced, in relation to more competitive
bids, as to appear that there will be little or no chance of becoming competitive. USAID/FINREP-II may
exclude a bid requiring extensive discussions, a complete re-write, or major revisions such as to allow a
Bidder unfair advantage over those more competitive bids.
The successful bidder will be invited to sign a contract which embodies the terms of the accepted bid
with or without technical modifications.
Proposal Submission Deadline and Other Requirements:
Technical proposals must be submitted in a sealed envelope by 18:00, on June 12, 2014, to the
attention of Mr. Victor Stetsenko at:
Financial Sector Development Program (USAID/FINREP-II)
7/9 Yaroslavskiy Lane, 2nd floor
04071 Kyiv, Ukraine
Envelopes must be marked: “RFP - FSR Guidance on IFRS Implementation.” In addition, technical
proposals must be sent by electronic mail to [email protected] with the subject: “RFP - FSR Guidance
on IFRS Implementation.”
Since FMI is a contractor of international technical assistance projects and programs in Ukraine in accordance with the Agreement between the Government of the United States of America
and the Government of Ukraine Regarding Humanitarian and Technical Economic Cooperation of May 7, 1992 and procures goods, work and services of the bidder for the implementation
of the above International Technical Assistance Program, then, in accordance with the aforementioned Agreement and the Policy on Raising, Utilizing and Monitoring International
Technical Assistance, as approved by Cabinet of Ministers of Ukraine Resolution 153, dated February 15, 2002, on Establishing a Single System of Raising, Utilizing and Monitoring
International Technical Assistance, the value of such goods, work and services is exempt from the value added tax. The procurement of goods, work and services is made at the expense of
the international technical assistance program and complies with the category (type) of goods, work and services indicated in the procurement plan. Therefore, the USAID/FINREP-II
Program will pay for services without accruing VAT and will provide to the winner a copy of the registration card, within the framework of which goods, work and services are procured,
issued by the Ministry of Economic Development and Trade of Ukraine as well as a copy of the procurement plan certified by the Program’s stamp.
Cost proposals must be submitted ONLY by hard copy in a separate, sealed envelope by 18:00 on
June 12, 2014, to the attention of Ms. Victoria Buchynska at the address mentioned above. Cost
proposals should not be sent electronically.
Proposals received after the specified deadline will not be considered. Proposals sent via fax will not be
Telephone inquiries are not permitted. Questions may be submitted via email to [email protected] by
June 6, 2014. Answers to these questions will be sent to all bidders that send questions, and they will
also be posted anonymously on the USAID/FINREP-II website:
The release of this RFP does not constitute an obligation on the part of USAID/FINREP-ІІ to award a
contract. USAID/FINREP-ІІ reserves the right to reject any and all proposals. Nevertheless, it is the
intention of USAID/FINREP-II to award a contract if it receives acceptable bids.
USAID/FINREP-II can terminate this RFP at any time at its discretion. USAID/FINREP-II, the FSR and
USAID are in no manner responsible for any of the costs associated in the preparation or submission of
any proposals.
Sample Terms of Contract:
The contract for this procurement should include the following:
1. Parties to the Contract
“Contractor” means the company providing the services under the contract,
“Customer” means Financial Markets International, Inc. implementing the Financial Sector Development
“Recipient” means the National Commission for the Regulation of the Financial Services Market (FSR).
The contract should be entered into between the CONTRACTOR and the CUSTOMER for the benefit of
2. Payment Schedule
Payment 1.
20% should be paid in advance within 5 (five) business days after signing the contract;
Payment 2.
80% should be paid within 5 (five) business days after the acceptance of work performed
under the contract in accordance with the signed Transfer and Acceptance Statement.
3. Exemption from Payment of Value Added Tax (VAT)
Since the Customer is a contractor of the international technical assistance project (program), it shall
pay for the services according to the Contractor’s invoice and contract without payment of valued added
tax in accordance with the Policy on Raising, Utilizing and Monitoring International Technical Assistance
approved by the Cabinet of Ministers of Ukraine Resolution 153 dated February 15, 2002, as amended,
and the Agreement Between the Government of the United States of America and the Government of
Ukraine Regarding Humanitarian and Technical Economic Cooperation of May 7, 1992.
4. Eligibility of Suppliers
Any procurement resulting from this tender will be financed by USAID and will be subject to U.S. Federal
Acquisition Regulations (FAR) and USAID regulations.
No equipment, materials or services shall be eligible for USAID financing if offered by a supplier or
subcontractor included on any list of suspended, debarred, or ineligible bidders used by USAID.
5. U.S. Anti-Terrorism Executive Orders and Laws
“The Contractor is reminded that U.S. Executive Orders and U.S. law prohibits transactions with, and the
provision of resources and support to, individuals and organizations associated with terrorism. It is the
legal responsibility of the Contractor to ensure compliance with these Executive Orders and laws. This
provision must be included in all subcontracts/sub-awards issued under this contract/agreement.”