PETROLEUM BUSINESS OPPORTUNITIES PROJECT
Kenya
Terms of reference for steel sector capacity building
1 Background
Petroleum Business Opportunities
This assignment is being undertaken by the Petroleum Business Opportunities (PBO) project.
The PBO project’s primary objective over the next five years is to build capacity in selected
Kenyan sectors/firms to successfully engage in business with the nascent Oil and Gas (O&G)
sector. Coordinated with the Government of Kenya KEPTAP initiative, PBO focuses on Kenya
and not only on counties where oil is present.
The primary objective of PBO is to assist firms that have the vision, potential and motivation to
improve their performance to a level that will allow them to tender competitively for Oil and Gas
and other similarly demanding contracts that require internationally defined levels of
performance and standards.
The project kicks off with a Supply-Demand Analysis to identify, in batches of five, sectors that
have O&G potential. Generic training is delivered to these sectors to increase awareness of
O&G performance standards and identify firms with the greatest potential to benefit from
targeted assistance. Firms selected through the training and filtering processes, undergo deepdive analyses to identify performance gaps. An SME Support Platform established by PBO, will
embed capacity building resources within selected firms, to close performance gaps and
thereby facilitate their engagement with the O&G tendering process. PBO will encourage joint
ventures between international and Kenya businesses for the goods and services where
technology and skills are advanced.
2 Objectives
This assignment launches the firm level intervention stage of the PBO project by focusing on
the steel sector that is known to have potential to supply the O&G sector and where there is
identifiable demand from that sector for steel products. An initial engagement with the steel
industry has been performed by the PBO team in December 2016 demonstrated interest of
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steel firms to participate.
The objective of this consultancy is to provide advice and start off a change management
process focused on business performance analysis, management of change, international
standards of production and production processes in the foundry and steel processing
industries.
The consultancy will include personnel with steel production and foundry operational and
technical experience in the following focus areas: environment, health and safety management
systems; quality assurance, quality control management systems; business analysis and of
implementing a management of change process.
The team will operate quasi-independently with the management of change consultant leading
engagements with the sector and firms. Consultants will report through the team lead to the
PBO Team and seek approvals before taking critical steps as are deemed appropriate by the
PBO Team.
3 Scope of Work
The key activities required for the successful completion of this Petroleum Business
Opportunities (PBO) intervention are described as follows, taking a phased approach to
engaging with steel firms to continuously confirm each firm’s level of commitment before
advancing to the next, more in depth stage of support.
Ownership of the process
PBO feels it is crucial to the sustainability and success of the project that firms own the process
of improving their performances to Oil and Gas requirements. With that in mind it is important
that a Management of Change approach to PBO interventions is adopted in which the selected
firms lead the agreed changes and improvements themselves.
Embedment
PBO considers the effective method of analysing firms and assuring change is to embed
experts with the appropriate skills for an appropriate amount of time.
Embedment refers to any period when experts will be working at the firm’s premises and will
include Monitoring and Evaluation and Impact Assessment visits.
Consultancy will define the time required to conduct an initial appraisal of business health,
commitment of firms’ leaderships and technical/operational capability and compliance.
Consultancy will define the required time for a deep dive analysis; establishing a Management
of Change process; developing Business Improvement Plans and distilling Intervention Action
Plans.
Business Analysis
A thorough and yet lean analysis of selected firms using contemporary analysis tools to
establish their financial and business health will be used to benchmark each firm against sector
norms; identify firms with the necessary profile to successfully engage in the PBO intervention
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and from which the firm can develop a Business Improvement Plan, against which KPIs can be
established that target phased achievements and provide the basis for the final Impact
Analysis.
Consultancy will define the analysis tools that will be used and their relevance to the objectives
of the PBO intervention and their use in Gate Reviews, Monitoring and Evaluation and Impact
Analyses.
Management of Change
Consultancy will adopt an internationally recognised and proven method of change
management which will lead the PBO intervention with selected firms to develop and achieve
the objectives within their Business Improvement Plan. Consultant will clearly explain the
process to be adopted and how Consultancy will assure the selected firms take up ownership
of the required changes.
Technical & operational
Central to the success of the intervention is a successful transition from current operating
performance to standards recognised and specified by the Oil and Gas sector. Consultancy will
deploy personnel with the experience and knowledge required to appraise the current
performance of the selected firms; identify the improvements required and develop a plan for
raising standard to Oil and Gas specifications. Consultancy will specify the appropriate
Standards to be achieved.
Sector engagement
To progress this pilot project, the PBO Team has already engaged with the steel sector using
the convening power of the Regional Mega Projects Coordinating Council (RMPCC). The
RMPCC has an interest in industrial development and has committed to use its convening
power to assist the PBO.
Contact with the RMPCC is through the PBO Team.
Self-screening and Gate Reviews
Consultancy will identify stages at which firms will elect not to engage further or conduct the
necessary improvements without PBO assistance. This is in effect a self-screening process.
Consultancy will identify stages at which firms will self-screen.
Consultancy will identify appropriate stages where a formal Gate Review is required to select
firms for the next stage of the process. Consultancy will define the criteria for review and
develop a process that is transparent and allows firms to be compared fairly. This is a sensitive
stage of the process and will require careful consideration in design and implementation.
Gate Reviews will be kept to a minimum.
Embedded Assistance and Monitoring and Evaluation
Firms that successfully pass through Gate Reviews and that agree to accept PBO intervention
assistance will be required to sign a form of agreement that defines theirs and PBO’s actions
during the intervention period.
Actions required by the firm will be defined in their Business Improvement Plan; PBO’s actions
will be defined in an Intervention Action Plan.
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Consultancy will distil an Intervention Action Plan from the Business Improvement Plan that
defines technical and management of change embedment; bespoke technical embedment and
an optional Industrial Visit. The plan will be represented on a schedule with costings and
supported by a brief document explaining the actions required, their purpose and how their
impact will be quantified and measured.
Industrial Visits
Visiting firms recognised as exemplars of best working practice can inspire aspirant firms to
increase efforts with renewed enthusiasm.
Consultancy will organise all aspects of an industrial visit to foreign companies that satisfy the
description of excellent in the steel sector.
Firms will be expected to share the cost of these visits to demonstrate their commitment to the
process.
Impact Assessment
The purpose of the final embedment will be to assess the impact of the intervention and
appraise the firm’s achievement of their own Business Improvement Plan.
Consultancy will design an Impact Assessment evaluation.
4 Information
For the Consultancy’s information, it is estimated that seven steel firms will express interest
with an estimated conversion of three firms for the embedded assistance programme.
Consultancy will be expected to make photographic & video records of events and visits of a
quality that can be used in the media and in hard/soft copy publications.
Consultancy will keep detailed records of meetings and engagements of all forms and submit to
PBO in an appropriate format.
Consultancy will be required to develop high quality presentations for engagements and for
reporting purposes.
Consultancy will submit brief reports to the PBO Team at appropriate stages of each
intervention. These will be agreed at kick-off.
Consultancy will arrange its own office space & communications facilities in Kenya
Consultancy will make all necessary arrangement for visas, travel, accommodation, emergency
medical and welfare for its personnel.
Consultancy personnel
Consultancy personnel shall have the requisite experience in their fields to assure the success
of the PBO steel intervention.
Consultancy will submit the CVs of all personnel required on the project. The PBO Team’s
evaluation will focus on lead personnel whose role it is to direct and manage delivery. Other
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personnel will be evaluated against PBO criteria but will be of secondary importance to the lead
personnel.
Consultancy will be working on a number of firms at the same time. To work efficiently the team
must programme visits and interventions to take advantage of logically sequenced activities and
use concurrent working techniques to optimise the achievements during in-country visits.
Working with the PBO Team
Communications & reporting
Consultancy will maintain regular contact with the PBO TTL and in country lead and arrange
meetings at the appropriate time in accordance with a schedule agreed at award stage.
Schedule & logistics
Consultancy will submit on a regular basis (to be agreed) a schedule of activities for the coming
period including travel, accommodation and visa details.
Innovations and improvements
Although not a unique project PBO is new to the Kenya context and wishes to learn from
experience as the project progresses. Ideas for innovation and improvements will be welcomed
throughout the contract duration.
5 Key Steps and Deliverables
The key steps and deliverables shown in the tables are suggested only and are to act as
guidance. Consultancy is expected to develop their own schedule of key steps and
deliverables, linked to the timeline, for consideration by the PBO Team.
Key Steps
No.
1
Week No.
1
Key Step
Sector engagement
Analysis Stage
2
2
Initial appraisal of firm
3
3
Gate Review 1
4
4
Business analysis
5
4
Establishment of Firm’s A team
6
4
Operational analysis
7
5
Develop Business Improvement Plan
8
5
Develop Intervention Action Plans (IAP)
9
6
Gate Review 2
5
Implementation Stage
10
7
Embedded Assistance
10.1
7
Kick-off meeting at Firm’s premises
10.2
20
Monitoring & Evaluation Visit 1
10.3
10.4
10.5
As
approved
by PBO
As
approved
by PBO
36
Bespoke Embedded Technical Assistance
Industrial Visit - if approved by PBO Team
Monitoring & Evaluation Visit 2
Review Stage
10.6
52
Monitoring & Evaluation Visit 3 - Impact Analysis and Close Out meeting
Deliverables
No.
Week
No.
1
1
Sector Engagement meeting record
2
2
Gate Review 1 with Flash Appraisal – for each firm
3
6
Gate Review 2 with Intervention Action Plan and Business Improvement
Plan – for each firm
4
7
Intervention Kick-off meeting – for each firm
5
20
M&E 1 visit – for each firm
6
36
M&E 2 visit – for each firm
7
8
9
10
As
approved
by PBO
As
approved
by PBO
52
As
agreed
Deliverable
Bespoke Technical Assistance / Training
Industrial Visit (for PBO approved visits only) – for each firm
M&E 3 visit - Impact Assessment with Lessons Learnt – for each firm and
for steel sector
Final Closeout meeting
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6 Consultancy Profile
Business Analysis against international sector norms
Consultancy must be able to demonstrate experience of analysing firms’ business
performances and financial health against international industrial norms using established and
credible business and financial analysis tools.
Management of Change
Consultancy must be able to demonstrate experience of guiding a firm through a process of
change using Kotter or another credible system.
Other skills
Consultancy must be able to evidence expertise in negotiating and influencing; team building
and team leading; stakeholder engagement; report writing and communication skills.
Operational / Technical
Consultancy must be able to evidence expertise in the foundry and steel production industries
at an operational management level with additional and specific reference to internationally
recognised Environment, Health and Safety and Quality Assurance / Quality Control
management systems.
Consultancy must evidence expertise in:
 the analysis of firms against international steel sector best practice and Oil and Gas steel
products standards;
 knowledge and experience of current operational staff requirements in terms of what
makes a competent person in terms of qualifications, accreditations and experience;
 operational efficiency; shop floor organisation and process controls.
7 Additional requirements
A Consultants experience
Consultancy will submit curriculum vitaes of all personnel planned for use on this project
highlighting relevant experience.
B Cover Letter
Consultancy’s cover letter should clearly explain the methodology and analytical tools that will
be employed for business analysis, governance and planning. In addition, the cover letter
should also describe the experience the consultancy has in managing the processes of change
at firm level.
Consultancy’s cover letter should clearly evidence experience of analysing and improving the
operational and technical aspects steel firms or firms in a similar industrial sector.
8 Timeline and Method Statement
Consultancy will submit a timeline that defines the schedule of activities to be undertaken
and demonstrate efficient use of resources.
Milestones and pivotal events should be highlighted.
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The timeline will be used to plan deployment of resources and the management of contract
logistics by the Consultancy.
Consultancy will submit a Method Statement that clearly explains the process to be
undertaken with reference to the analytical tools to be employed; self-screening stages; Gate
Reviews; business analysis; Management of Change and technical embedment; Monitoring
and Evaluation; Industrial Visits and Impact Analysis.
9 Consultancy’s Experience
Consultancy will submit with their proposal evidence of recent experience of similar or exact
same projects. Submit no more than three and none more than five years in the past.
10 Contract Information
Expected award date: 10th April, 2017
Expected end date: 31st March, 2018
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