Trade Sector Support Programme: Consultancy to implement an Electronic Single Window

Project ID: BHL1016
REQUEST FOR EXPRESSION OF INTEREST
GOVERNMENT OF THE BAHAMAS

The Bahamas Customs and Excise Department
Consultancy to implement an “Electronic Single Window”
Institution: Inter-American Development Bank
Country: The Commonwealth of the Bahamas
Project: Trade Sector Support Programme
Project number: BHL1016
Loan number: 2756/OC-BH
Sector: Trade
Abstract:  The Government of The Commonwealth of the Bahamas intends to implement a regulatory electronic single window (ESW) to automate all regulatory processes impacting the importation and exportation of goods. The Bahamas government is seeking to implement a “best-of-breed” solution(s) that will meet international standards, particularly those of the World Customs Organization (WCO).

Introduction
    The Government of The Bahamas, with the assistance of a loan from the Inter-American Development Bank (IDB), is implementing a trade sector support program.  The overall objective of the program is to improve the operational efficiency of the Customs and Excise Department (CED) and to prepare the Government of The Bahamas for accession to the World Trade Organization (WTO). The program has three (3) components:
1 – Strengthening of Customs Management
2 – Modernizing Customs Operations
3 – Enhancement of International Trade Institutional Platform

    Component 2, the single largest component of the program, contains 4 main areas of activity:
    Business process re-engineering
    Customs Automated Management System
    Strengthening border control and security
    Trade Facilitation.

    The Bahamas Customs and Excise Department, as executing agency for the Trade Sector Support Program, is seeking to implement an integrated Electronic Single Window (ESW) to automate the management of all regulatory processes and procedures related to the international movement of goods across the borders of The Commonwealth of the Bahamas.
   The purpose of implementing the regulatory ESW is to considerably enhance the:
    efficiency, transparency and consistency of the regulatory environment,
    efficiency, effectiveness and accuracy of revenue collection,
    compliance levels of all stakeholders, both commercial and regulatory,
    Accuracy of economic trade data.

General Background Information

    The Commonwealth of The Bahamas is an archipelago of 700 islands and cays of which approximately 30 are inhabited. Customs has a complement of 740 staff operating at 63 offices across 13 islands. Customs and Excise Department processes approximately 220,000 declarations annually as follows:

    Import declaration for home use: 190,000
    Import declaration under the Hawksbill Creek Agreement: 18,000
    Export declarations: 7,000
    Other (warehousing, temp import/export, etc.): 5000

    In the financial year, 2011-2012 Customs collected an estimated $737,000,000 BSD in duties, taxes and fees on behalf of the government of the Bahamas. This represents in excess of 50% of all government revenue.  Customs has responsibility for collecting the following duties, taxes and fees:

    Import duties,
    Export duties
    Excise duties
    Air and sea departure/arrival taxes
    Passenger tax
    Stamp tax on imports and exports
    Fees (storage, warehouse, inspection, overtime, container movement)
    From 1st January 2015, VAT at import.

    Import, export and excise duties comprise 80% of the total revenue collected by Customs.
    The Bahamas operates a freezone based in Freeport, Grand Bahamas, under the Hawksbill Creek Agreement. In addition the government operates a broad range of duty exemption schemes which account for a significant fore-going of potential government revenue.

Customs Automation
    Although Customs implemented the Customs Automated System (CAS) in 1989, the system reflects and works alongside a manual process. Data entry into CAS is carried out by Customs officers. In 2004, the TIMS[1] risk management system was integrated into CAS. Import declaration data entered into CAS passes through TIMS to assess risk.
    In 2013, Customs launched its an e-CAS initiative to facilitate the electronic submission of ship’s manifest and Customs declaration data through both e-mail submission and online via a web interface. This enhancement has been finalized and is available to both shippers and Customs brokers. Initially this was on a voluntary basis. However, by July 2014 it became mandatory in New Providence and is curently being rolled out to other islands.
    In January 2015 CED will launch a trade facilitation initiative to help improve goods classification through the implementation of “3CE Classify”. This tool will assist traders and brokers to improve regulatory compliance through better and more accurate goods classification.

    The consulting services (“The Services”) include:

Scope of Services
    The Government of The Commonwealth of the Bahamas intends to implement an integrated regulatory electronic single window (ESW) which will automate all regulatory processes impacting the importation and exportation[2] of goods.
    The Bahamas government is seeking to implement a “best-of-breed” solution(s) that will meet international standards, particularly those of the World Customs Organization (WCO).
    The Bahamas Electronic Single Window (ESW) environment will be implemented based on five (5) core system components:
    Component 1: Customs automated management system,
    Component 2: Horizontal risk management system,
    Component 3: Other Government Agency (OGA) Information Management Systems
    Component 4: Application integration platform
    Component 5: Management Information System (MIS).

Customs Automated Management System
    Any system chosen must be based on the WCO Data Model V3.4 and the standards and principals of the Revised Kyoto Convention. In addition the system must support national Customs legislation as set down in the Customs Management Act 2011.

    The Customs automated management system must have the capacity to manage at least the following processes:

    Arrival/departure of conveyance
    Manifest management
    Importation for home use
    Temporary importation
    Exportation
    Temporary Exportation
    Free zone goods management (including transfer of ownership within the free zone and movement of goods outside the free zone)
    Bond management (including under-bond movement)
    Warehouse management
    Excise
    Coastal goods movement (Transire)
    Passenger and crew declaration
    Pleasure craft report management
    Parcel post management
    Transshipment of goods. (Goods in Transit)

    One of the core “modules” within the Customs Information Management System will be the Customs tariff module. This “module” is required to be integrated horizontally with both Components 2 and 3. The capacity to integrate this “module” will be critical to the integration and management of the ESW environment.

Risk management system
    It intended to implement a modern sophisticated risk management system that will be in conformance with the WCO Risk Management Compendium.
    The risk management system will employ a range of profile types covering primarily maritime and air modes of transport.
    The risk management system will implement WCO standardized risk profiles and indicators. In line with the WCO’s “Risk Assessment Profiling and Targeting” the risk management system should facilitate the implementation of:
    multiple risk profiles
    multiple risk indicators for each profile
    a risk level coefficient for each risk indicator
    Capacity to combine coefficient information to automatically calculate overall risk.

    The risk management system should allow Customs to analyze the risk profiles for their effectiveness.

    Have the capacity to provide a structured reporting system for Customs and/or regulatory officers report of findings
Other Government Agency (OGA) Information Management Systems

    The implementation of other OGA support systems related to the importation and exportation of goods should cover the following areas:
    License/certificate management
    Duty/tax/fee exemption and quota management.
License/certificate management system

    This system will allow commercial operators to apply for any license/certificate issued by a Bahamas regulatory authority related to the importation or exportation of goods. The management system will be required to automate the:

    Application for a license/certificate,
    Approval process for a license/certificate,
    Issuing or rejection of a license/certificate,
    Cross-referencing license/certificate information with Customs declaration information.

Duty/tax/fee Exemption and Quota Management System

    The nature of the Bahamas economy and it policies for encouraging foreign direct investment (FDI) has lead to an environment where the forgoing of duty/tax/fees as a result of exemptions is approximately equivalent to the total duties/taxes/fees collected by the Customs and Excise Department. This is an area of high risk for revenue leakage and is currently managed in a manual paper based manner. The existing processes lack accountability and compliance levels are difficult to manage.

    The duty/tax/fee exemption and quota management system will be required to automate the:

    Application for duty/tax/fee exemptions,
    Application for import/export quotas,
    Processing and approval of applications,
    Ongoing management of each approved exemption,
    Cross-referencing license/certificate information with Customs declaration information.

Application integration platform
    The application integration platform component ensures the seamless integration of the business applications of the ESW.
   This component provides a single user interface for ESW users (both commercial operators and regulatory agency officers), which will allow them to access the appropriate ESW applications.
    The application integration platform will provide a facility to allow  commercial operators submit structured electronic Customs declaration messages and receive structured responses based on WCO standards.
   The application integration platform should provide a flexible environment which will allow the integration of interfaces with other appropriate regulatory systems.

Management Information System (MIS)
    The capacity to efficiently access and analyze information in a systematic way will be critical to the success of the Bahamas ESW environment.
    The implementation of a comprehensive data analysis and reporting tool(s) will be required, which:
    accesses and aggregates data sets in to single views,
    produces camera ready reports, both online and printable,
    provides dashboard functionally,
    provides tools for end users to customize analysis requirements and report generation, etc.

Response requirements for the EOI

Eligibility

   The Bahamas CED is seeking qualified Firms to participate in an RFP process to provide solutions for each of the five (5) core components identified.
   As indicated in the “Scope of goods and services” section of the EOI, the Bahamas CED is seeking to implement “best-of-breed” applications for the regulatory ESW. To ensure that this objective can be achieved firms and/or consortia can apply to implement one or more of the five (5) Components outlined in the “Scope of goods and services”.

Information required to indicate the firm/consortium responding to this EOI has the potential capacity and experience to deliver the solution(s) required
    The Firm (s) will be required to clearly demonstrate that they have the experience and capacity to implement the Component(s) for which they are applying.
    Clear indication of which of the five (5) core components the firm/consortium is applying to implement (e.g. Component 1 only, Component 2 only, Components 1 and 2, Components 1 and 3, etc.).
    Name and summary description of the software application(s) the firm is proposing to implement if shortlisted and selected in the RFP process.
    Provide a brief description on how the product will integrate and add value to the proposed Bahamas regulatory ESW environment.
    Provide a summary list of projects in which the firms’ software solution(s) has been or is in progress to be implemented. This should include the following:
    Client’s name (e.g. Customs administration, Min. of Finance, commercial entity, etc)
    Official project name
    countries where project was implemented
    Project year & $ Value
    Duration of project

    Provide a minimum of 1 and a maximum of 3 detailed examples of system implementations carried out using the named software that clearly identify the:
a)      Name of the project,
b)      Location of the project,
c)       Start/completion date,
d)      A narrative description of the scope of the project and the involvement of the firm(including if the software was implemented as part of a broader platform/solution),
e)      Resources deployed for the duration of the project (fulltime and part time, type of resource provided, e.g. project manager, software developer, integrator, subject matter expertise, etc.),
f)       US dollar value of the project (from the perspective of the firm. If the firms solution was part of a broader project, please indicate the value specifically for the firm and the overall value of the project),
g)      Contact details of client reference person for the project (this person must be a senior person in the client organization).

    Provide company information required to indicate the capacity of the firm/consortium to under the scope of work:
    Annual turnover (in the case of a consortium each partner in the consortium)
    Number of years in operation (in the case of a consortium each partner in the consortium)
    Staffing levels for full-time, part-time staff and contract personnel employed (in the case of a consortium each partner of the consortium).
    Applicants must include with their submission proof of the fact that the company is an existing registered company as at the date of the application. This can be done by including a copy of an official verifiable document such as a Certificate of Incorporation and/or Business License, etc. as evidence of the fact.
    In the case that an entity indicates that they are applying to implement 1 or 2 of the components (i.e. not the complete ESW environment), proof that their system(s) has been and can be integrated into a broader regulatory ESW-type environment.
    In the case that the firm is proposing to develop part of the application (for example component 3) the firm must indicate their software development capacity.
    The estimated duration of this consultancy is approximately 18 months.

RFP selection method to be applied for this project
    The Bahamas Customs and Excise Department (BCED) now invites eligible Consulting    Firms (“Consultants”) to indicate their interest in providing Services necessary for the implementation of an “Electronic Single Window”. Interested applicants should provide information demonstrating that they have the required qualifications and relevant experience to provide the services.

    Short lists shall comprise six firms with a wide geographical spread, with no more than two firms from any one country.  Only shortlisted firms will take part in the RFP process.

    Consultants shall be eligible to participate if they are citizens or bona fide residents of an eligible country, in this case, a member country of the IDB.

    Consultants will be selected in accordance with the procedures set out in the Inter-American Development Bank: Policies for the Selection and Contracting of Consultants financed by the Inter-American Development Bank GN-2350-9 March 2011 and is open to all eligible bidders as defined in the policies.

    Consultants may associate with other firms in the form of a joint venture or a sub-consultancy to enhance their qualifications. For the purpose of establishing the short list, the nationality of a firm is that of the country in which it is legally incorporated or constituted and in the case of Joint Venture, the nationality of the firm appointed to represent it.

    The Firm will be selected in accordance with the Quality and Cost Based Selection (QCBS) method set out in the Bank Policies GN-2350-9 March 2011.

Clarification requests to this EOI
Clarification on the technical aspects of this EOI may be obtained by emailing:
Ms. Subrenna Higgs,
Deputy Director,
Information Technology Department,
Customs and Excise Department.
subrennahiggs@bahamas.gov.bs
    Clarification on procedural matters of this EOI may be obtained by emailing:
Mr. Tamico Brice,
Project Manager
Project Management Unit,
Customs and Excise Department.
CUSTOMSPROJECT@bahamas.gov.bs
Submission of responses to this EOI

    The original, two (2) copies of the Expressions of Interest and a copy on CD-ROM clearly marked “Request for Expressions of Interest – Implementation of an integrated regulatory ESW in The Bahamas”, must be prepared in English and delivered in sealed envelopes to the following address no later than March 27th, 2015 at 4:00 p.m. (Nassau, Bahamas Time)
Chairman
Tenders Board

Attn: Customs Modernization Project
Ministry of Finance,
Cecil Wallace-Whitfield Center,
Bay Street,P.O. Box N-3017
Nassau, Bahamas
Telephone: (242)-325-6550
Fax: (242)-325-7409
Email: customsproject@bahamas.gov.bs

    Late submissions will not be accepted and will be returned unopened to the applicant.
    Electronic submissions will not be accepted.
    The Government of The Commonwealth of The Bahamas reserves the right to accept or reject any application received.

[1]TIMS is a software product implemented by Crown Agents
[2] This includes temporary import/export, warehousing, transshipment, transit etc.