From:Development Alternative Inc. (DAI)

To: Offerors

Date:September26, 2016

Subject:Request for Quotation-

Developing a Database Solution for a new Loan Application model to be

used by the Agricultural Development Fund (ADF)

Reference:USAID/DAI: Agricultural Credit Enhancement (ACE II) Project

Dear Offerors:

Development Alternatives, Inc. (DAI) ACE II is seeking suitably qualified local vendors with the capacity to develop database for loan application according to below detailed spec for the ACE II Project.

In response to this Request for Quotations (RFQ) firms and companies are invited to submit a best-offer quotation to DAI under the referenced project.

Type of Subcontract – An award resulting from this RFQ will be a Fixed Price Purchase Agreement.

Submission of Questions – Vendors that have questions, technical inquires and/or requests for clarification to this offering must be made in writing and may be made via E-mail to the following E-Mail Address’. No questions will be answered over the phone or in person; all questions received will be compiled into one list, answered, and emailed to all vendors who have confirmed interest in bidding.

Grant Norris

Submission of Quotes (Local Bidders) – Thequote must be in Englishand attached to an email submitted to the following email address:. The email and the attached quote shall include the RFQ number, title, and closing date. The quotation must be received at the email address by no later October5, 2016(2:00 P.MAfghanistan local time).

Compliance with DAI and USAID Conditions– DAI reserves the right to issue an award with no further discussion, to issue multiple awards, or to modify the award type. Issuance of this RFQ in no way obligates DAI to award a purchase order, nor does it commit DAI to pay any cost incurred by the Offeror in preparing and submitting the quote. DAI reserves the right to enter into negotiations about price and terms as required. DAI reserves the right to divide the award between vendors if necessary. The items listed below in the schedule below are illustrative. Full use of all items is not guaranteed.By submitting a quotation, the vendor agrees to comply by DAI’s terms, as well as all USAID regulations including those for source and nationality. DAIwill not accept any materials from Iran, Syria, Cuba, or North Korea.

Offeror’s Agreement with Terms and Conditions – The completion of all RFQ requirements in accordance with the instructions in this RFQ and submission to DAIof a quote will constitute an offer and indicate the Offeror’s agreement to the terms and conditions in this RFQ and any attachments hereto.DAI reserves the right to award a Purchase Order/Subcontract without discussion and/or negotiation, therefore, Offerors are required to submit their best prices in their initial submission. Nevertheless, DAI also reserves the right to conduct discussions and/or negotiations, which among other things may require an Offeror(s) to revise its quote (technical and/or price).Issuance of this RFQ in no way obligates DAIto award a Purchase Order/Subcontract, nor does it commit DAI to pay any costs incurred by the Offeror in preparing and submitting the quote.

Evaluation of Quotations – All quotations received in response to this solicitation will be evaluated and scored by evaluation sub factors. The subcontract/purchase order shall be awarded on a best value basis. The following sub factor shall be used to evaluate offers: Agricultural Credit Enhancement Phase II (ACE II) will award subcontract(s) resulting from this solicitation to the responsive bidder whose proposal will be most advantageous to DAI, price and other factors considered. Therefore, the bidder’s initial offer should contain the best terms from a price and technical standpoint. If determined to be necessary, DAI reserves the right to conduct discussions with bidder. DAI may reject any or all offers if such action in the interest of DAI or the public; accept other than lowest offer; and waive informalities and minor irregularities in the offer received. Factors that will be considered in making an award under this RFQ include:

Best competitive price (70%)
Responsiveness (10%)
Past Performance (10%)
Bids are provided according to request (10%)

Confirmation of Receipt of RFQ – Please confirm receipt of this RFQ by “reply all” email within 24 hours. Failure to confirm receipt mayresult in not receiving any updates to this solicitation. This may put you at the risk of being disqualified from receiving an award.

Composition of Quote – Offerors shall submit aquote for the Scope of Work as outlined inAppendix Bwith details as required. The quotation submission must include completed Appendixes A through E (see below).

SECTION 1 – QUOTATION INSTRUCTIONS / ADDITIONAL INFORMATION

The Offeror shall submit its best price offer/quotation as per the following requirements:

1)Quotation Cover Letter signed by a person authorized to sign on behalf of the Offeror. Use the template in Appendix A.

2)All Prices shall be quoted in Local Currency (Afghani) only.

3)The Offeror shall submit quotes in prescribed Format of Appendix B.

4) In case of price discrepancy between unit price and SUBTOTAL price, if applicable, the unit price shall prevail.

5)The rates quoted shall be for complete service inclusive of all taxes all charges for service contingent to the work.

6)DAI is Exempt from Import Duties into Afghanistan.

7)DAI has the rights to increase or decrease the goods and services mentioned in this RFQ.

8)DAI Payment term: Net 30 days.

9)Bid validity: Net 30 days from date of submission.

10)DAI will not award a subcontract or purchase order to an organization without AISA/Ministry of Commerce Business license. The AISA/Ministry of Commerce Business License must be attached to the quotation.

SECTION 2–DESCRIPTION OF GOODS OR SERVICES REQUESTED

Please refer to Appendix B for the Scope of Work to provide the service.

SECTION 3 – SPECIAL PROVISIONS

The below provisions will be incorporated into any subcontract/purchase order issued by DAI.

3.1.Government Withholding Taxfor Afghan Based Companies

Pursuant to Article 72 in the Afghanistan Tax Law effective March 21, 2009, DAI is required to withhold "contractor" taxes from the gross amounts payable to all Afghan for-profit subcontractors/vendors. In accordance with this requirement, DAI shall withhold two percent (2%) tax from all gross invoices to Afghan subcontractors/vendors under this Agreement with active AISA or Ministry of Commerce license. For subcontractors/vendors without active AISA or Ministry of Commerce license, DAI shall withhold seven percent (7%) "Contractor" taxes per current Afghanistan Tax Law.

Before the signing of this Agreement, the subcontractor/vendor will provide a copy of the organization's AISA or Ministry of Commerce license and TIN (Tax Identification Number). Amounts deducted from the invoices will be forwarded to the Ministry of Finance (MOF) Tax Division credited to the firm's TIN. Records of payments to the MOF shall be maintained on file with DAI.

3.2Penalty Charges

If the Vendor fails to supply the specified Goods/Services within the date stipulated, DAI may, without prejudice to its other remedies under the Purchase Order/Contract price, as liquidated damages, deduct a sum equivalent to five percent (5%) of the delivered price of the delayed Goods/Services for each week of the delay until actual delivery, up to a maximum deduction of Ten Percent (10%) of the Purchase Order/Contract/Contract value.

3.3Source, Origin and Nationality

The vendor may not supply any goods or services manufactured in or shipped from the following countries: Cuba, Iraq, Iran, Laos, Libya, North Korea, orSyria.

3.4. Inspection

DAI shall have reasonable time to time, after delivery, to inspect the service and goods, and to reject acceptance in not conforming to the specifications of this Subcontract and offer. Recovery of the rejected item (s) shall be the sole responsibility of the supplier.

SECTION 4–Basis of Award:

The Subcontract/Purchase Order shall be awarded to the responsible responsive offer that meets the minimum requirements and offer the lowest price. The following sub factors shall be used in determining the award.

Responsiveness: The offer will be considered responsive when it does not take any exception to the terms and conditions of this solicitation and meets the minimum technical specifications, delivery period and methods, in addition to any other requirements specified herein.

Cost - The award will be made to the lowest cost/price for an offer which is determined responsive and responsible.

Responsibility: The responsibility will be determined after considering the offeror past performance, previous experience, the non-existence of any derogatory information regarding the offeror, and its ability to perform the work specified herein.

RFQ CONTINUES BELOW

VENDORS MUST COMPLETE ADDITIONAL INFORMATION AS SET OUT BELOW

CRITERIA FOR JUDGING THE ESPONSIVENESS OF BID
In addition to measuring whether the vendor is responding to DAI’s needs, criteria may be used to disqualify vendors who answer incorrectly / Company’s Response here
1 / Is your price quotation valid for at least 30 days? YES or NO
2 / Does your company agree to net 30 days payment term? YES or NO
3 / Does your quotation cover letter signed by authorized person? YES or NO
4 / Do you have bank account? YES or No
If YES please attach you bank account info with the quote
5 / Will you be able to accept/communicate by E-Mail?YES or NO
6 / Is your price quotation is in Afghanis? YES or NO
7 / Is your companies’ business license attached to this quotation?YES or NO
8 / Did you have contract with DAI in the past?YES or NO
9 / Did you list three contracts in the past performance section?YES or NO
10 / Does your company provide on-going maintenance and support services? YES or NO

Page 1 of 26

ADF Loan Application Module Development

APPENDIX A

QUOTATION COVER LETTER

[On Letterhead]

<MM/DD/2015

TO:DAI/ACE II

Shura Street, Kart-e-Seh

Kabul, Afghanistan

Ladies and Gentlemen:

We, the undersigned, offer to provide a Request for Quotation as follows.

Request for Quotation - Developing a Database Solution for a new Loan Application model to be used by the Agricultural Development Fund (ADF)

In accordance with your Request for Quotation dated XX-XX, 2016and our Proposal (Technical and Financial). Our attached quotation is for the sum of Amount in words (Afs XXX) >.

Our quotation shall be binding upon us subject to the modifications resulting from contract negotiations, up to expiration of the validity period of the quotation, i.e., <MM/DD/2015.

We understand you are not bound to accept any quotation you receive.

Yours sincerely,

Authorized Signature:

Name and Title of Signatory:

Name of Firm:

Address:

Appendix B

Scope of Work

Program: Agricultural Credit Enhancement Program Phase II

Activity Name: Loan Application and Credit Analysis Model

IT project name: Developing a Database Solution for a new Loan Application model to be used by the Agricultural Development Fund (ADF)

Date: July 01, 2016

Location: Kabul, Afghanistan

Prepared by: ACE II (DAI)

Document status: Draft

Document control

Revision history

ADF Loan Application Module Development

TABLE OF CONTENTS

1INTRODUCTION

1.1General Information

1.2Purpose

2SQL DATABASE Requirements

2.1Scope of the SQL based platform

2.2Overview of Requirements Development

2.3Assumptions and Constraints

2.3.1Assumptions

2.3.2Constraints and Dependencies

2.4Risks

2.5System Users

2.6Solution Architecture Diagram

2.7ADF Loan Application Module High Level Requirements

2.8Detailed Functional Requirements

2.8.1Workflow and Data Requirements

2.8.2Administrative Functions Including User Management Requirements

2.8.3Reporting Requirements

2.8.4Document and File Management Requirements

2.8.5Interface Requirements

2.9Operational Requirements

2.9.1Hardware Requirements

2.9.2Security Requirements

2.9.3Database Testing

ACE II users must be allowed to test the database functions and confirm that they are in line with confirmed and documented final requirements.

2.9.4Audit Trail

2.9.5Reliability

2.9.6Recoverability

2.9.7System Availability

2.9.8Performance

2.9.9Training

2.9.10Capacity

2.9.11Data Retention

3GENERAL

FIGURES

Figure 1- requirements gathering (required inputs) EXAMPLE

Figure 2 - 3-Tier Architecture

Figure 3 - requirements functional areas and processes - EXAMPLE

TABLES

Table 1 - high level requirements

ADF Loan Application Module Development

1INTRODUCTION

1.1General Information

This document is intended to guide the design and development of a database solution for a new Loan Application model (“the Project”) to be used by the Agricultural Development Fund (ADF). It will pass through the following stages before the Project commences:

Draft version:Specifies requirements, which are recorded, classified, and prioritized.

Proposed: The draft document is then proposed as a potential requirements specification for the Project. The proposed document should be reviewed by DAI Home Office who may comment on any requirements and any priorities, either to agree, to disagree, or to identify missing requirements. This document may be amended and re-proposed several times before moving to the next stage.

Validated: Once ACE II and DAI Home Office have agreed to the requirements in the document, it is considered validated.

Approved: The validated document shall then be submitted to USAID for approval who may comment on any requirements and any priorities, either to agree, to disagree, or to identify missing requirements. This document may be amended and re-proposed several times before final approval.

1.2Purpose

The overall objective of the Project is to develop and pilot test a suitable SQL based database for a new Loan Application model for use by the ADF. This will facilitate an online application process involving key participants from the ADF’s Business Development, Credit and Risk management, and Technical Services units. The process incorporates revised credit metrics designed to improve portfolio performance by tightening qualification criteria. It will also eliminate duplicative committees and focus the decision making responsibility.

Primary objectives and functions of the Database Solution are:

To design and develop a database solution and platform for a new Loan Application model that will reduce duplicative processes, apply credit metrics to increase the focus on construction of cash flow projections and calculation of reimbursement capacity based on those projections. The database solution will enhance the primary objectives of the new model, which are to:

Introduce a standardized master template that is more user friendly;
Improve the quality of borrower information and pay more attention to borrower selection and character references;
More effectively inculcate technical and marketing information into the credit process and credit decisions;
Pay more attention to leveraging or mitigating opportunities / risks associated with different strength value chains;
Apply a credit methodology centered on debt repayment capacity, as opposed to basing credit decisions on a "credit need" approach;
Impose stricter information requirements to assess affordability.

2SQL DATABASE Requirements

2.1Scope of the SQL based platform

To provide a centralized location where ADF staff in 5 different locations can store data simultaneously, and the preferred DBMS type is Microsoft SQL.
To provide a system where data can be extracted using queries.
To provide online availability and access over Internet browsers (Internet explorer, Mozilla Firefox, Google Chrome, and Safari): applicable for desktops, tablets, IOS and smartphones.
Which is accessible offline using an offline application,when there is no internet access (Windows, MAC, Android, IOS).
Which has the capability of syncing data using an offline application when the internet is not available
Has user and / or group rights management capability

2.2Overview of Requirements Development

Strict enforcement of Industry Graphical User Interface (GUI) standards.
The Database platform must have an appealing and professional design, easy to use interface and must be optimized for performance.
Must have clear Data Field Definitions for user to clarify Data Entry.
Must have Text Fields that expand as text is typed in select fields.
Must have Text Fields that limit the number of characters typed in select fields.
To include Drop-Down, Combo, and Check boxes.
Capability to automatically activate a specific work sheet when an option is selected in a Drop-Down box.
To include mathematic formulas for automated financial calculations.
Capability to modify database in order to accommodate future and changing needs.
Must have ad-hoc reporting capabilities.
Standard reports should be transactional based on listing the information entered for that specialty or area.
Allow for the entering of data offline for future synchronization,when there is no access to the internet.
The database must be compatible with SQL Server
The database must be easy to use, manage and administer the database
The database must have keyword search capability
It must have capability to generate user reports and system reports
It must have capability to add filters for generating reports, for example to select and filter by regions, provinces, loan officers, clients etc.
Upon completion of the database development, at least three members of ACEII and ADF should be trained to administer and modify the database for continued maintenance and future needs.

Refer to Figure 1 in Annexure A for an illustration of the database requirements and inputs

ADF Loan Application Module Development

Figure 1- Flow Chart for Database Requirements and Inputs

ADF Loan Application Module Development

2.3Assumptions and Constraints

2.3.1Assumptions

An Excel based Loan Application Module has already been developed by ACE II.
The above Module shall provide the data points, inputs and fields for the database.
The above Module shall provide the basic layout and flow for the database, according to the spreadsheets in the Module
The currency to be used in the database shall be Afghani only

2.3.2Constraints and Dependencies

The following constraints apply:

The database must be ready for pilot testing within 14 days of the Project start date.
The Project budget under an approved STTA shall be strictly enforced.

The development of a database for the ADF Loan Application Module has the following dependencies: