Tax Systems Transformation Programme (TSTP)

Tender description

FCDO intend to extend an existing contract with Cowater International to continue to assist the Government of Ethiopia raise tax revenues in a responsible and equitable way. The procurement was originally run in 2018 receiving 4 bids via a Restricted procedure then subsequently the contract was started on 13 March 2019. Lot 1: This notice is to indicate that the Foreign, Commonwealth & Development Office (FCDO) proposes to extend the contract with the named supplier for the Tax System Transformation programme (TSTP) operating in Ethiopia in a manner that is necessary to support Ethiopia’s tax reform programme. The contractual extension would run for 24 months from its current proposed end date of 13 March 2026 up to 13 March 2028. The anticipated expenditure in the period between 13 March 2026 and 13 March 2028 will be up to £4,843,000 (which therefore falls within the contract’s financial headroom, with FCDO having spent only £18,005,643 of the £27,167,193 value of this contract to date). This notice constitutes a Voluntary ex ante notice under regulation 99 of the Public Contracts Regulations 2015. The Authority considers that the award of this contract modification is permitted under regulation 72(1)(b) of those Regulations, and therefore subject to publication of a notice under that provision, however the Authority also intends to observe a 10 day standstill period under regulation 99(3)(c). Further details are provided later in this notice. The purpose of the Tax Systems Transformation Programme (TSTP)is to assist Government of Ethiopia raising tax revenues in a responsible and equitable manner. The objective of this contract for services is to manage the Accelerated Delivery component of the overall programme on three outcomes: an equitable and business friendly tax environment; improved voluntary compliance; increased GoE revenues. Accelerated Delivery translates political will at the highest level into coordinated and technically sound reform of Ethiopian tax systems. The TSTP contract brings together ‘delivery’ and technical tax expertise from specialist consultancy, UK HMRC, and other development partners to support Ethiopia in meeting the financing needs of its 10-year prosperity plan, macroeconomic reforms, and supporting an eventual exit from aid. It provides a blend of long-term embedded advisers and short-term experts to deliver improved business processes, enhanced administrative capabilities, improved IT, reformed tax policy, and lower compliance costs for taxpayers. A TSTP extension would enable 24 months of continuous outputs/deliverables to existing activities supporting Government of Ethiopia ministries such as the Ministry of Finance and Ministry of Revenue. To continue to assist the Ethiopian Government raise tax revenues in a responsible and equitable way with areas of activity during the extension period will potentially include; Continue embedded technical assistance and specialist consultancy across core MOR Directorates; Implementation of the revenue administration reform roadmap, with monitoring routines institutionalised; Strengthened donor coordination and delivery alignment; Knowledge transfer with phased drawdown of embedded advisers; Transfer of donor coordination responsibilities to create ownership, tools, and coordination structures; Continue systematic monitoring, evaluation and learning to sustain performance and course correction; Plan and deliver a sustained exit strategy aligned with the requirement of NMTRS. Additional information: The extension does not increase the value of the contract.