Consultancy Services for Orthopedic Component Factory (OCF) Assessment and Revision of Business Plan

TITLE OF THE PROJECT OR ACTION: ATscale/Grant/2022/007 Program Management, Coordination, and Support in implementation of Assistive Technology (AT) activities to the Ministry of Health (MoH) and Ministry of Social Welfare, Veterans and Youth Rehabilitation (MoSVY), Royal Government of Cambodia (2023-2025).

Name of the contracting program or service: ATscale project – Handicap International (Humanity & Inclusion) Cambodia

1. CONTEXT

1.1 About ATscale

The ATscale project, in collaboration with MoSVY and Persons with Disability Foundation (PWDF) is planning to conduct an assessment to inform possible investment support to upgrade the OCF into a regional production and supply hub for prosthetics and orthotics components. We are seeking a consultant to conduct this assessment, which will include a review of the OCF’s existing business plan against current operational status, identification of key opportunities and challenges related to regional scale-up, and initial recommendations for future investment.

ATscale, the Global Partnership for Assistive Technology, is a cross-sector global partnership with a mission to transform people’s lives through AT. It catalyzes action to ensure that, by 2030, an additional 500 million people in low and middle-income countries get the life-changing AT they need.

ATscale has committed to providing USD 3.2 million to the Government of Cambodia over three years to strengthen assistive technology provision, with interventions spanning across enabling environment, visual impairment, and physical disability and mobility. The project is implemented by the consortium: Clinton Health Access Initiative (CHAI), Humanity & Inclusion (HI) and the Cambodia Disabled People Organization (CDPO).

1.2 About Humanity & Inclusion (HI) in the country/region

HI is an independent and impartial aid organization working in situations of poverty and exclusion, conflict and disaster. We work alongside people with disabilities and vulnerable populations, taking action and bearing witness to respond to their essential needs, improve their living conditions and promote respect for their dignity and fundamental rights.

HI has been working in Cambodia since 1982. Today, HI is recognized in the country as a major on rehabilitation and disability actor. Some of the key achievements and contribution of HI towards the rehabilitation and disability sector in Cambodia includes setting up of seven Physical Rehabilitation Centers, setting up one for Rehabilitation Centre for persons with para and tetraplegia and the creation of the school for physical therapists. In the Mine action sector, HI set up the Mine/ Unexploded Ordnance Victims Information System and ensure the transfer to the Cambodian Red Cross. HI was one of the first international actors to work on Road safety and initiated the setup of the National Road Safety Committee (NRSC) and the Road Crash and Victim Information System (RCVIS) that was later transferred to NRSC. HI also developed the Road Safety curricula for primary and secondary education and has been an important contributor to the drafting of the traffic law and its enforcement.

1.3 CONTEXT FOR THE CONSULTANCY

The ATscale consortium is committed to ensuring the government receives high quality technical assistance. This includes assistance from in-country consortium staff, their global and regional expertise as well as expertise from existing partners in Cambodia. This technical support will include wide participation from key in-country partners that can provide deep insight and guidance to the government as they develop interventions. One of the expected outputs of the ATscale project is to ensure the continued supply of optimal products including orthopedic components for physical rehabilitation centers across Cambodia. To this end, HI will support the MoSVY and PWDF to identify and hire a technical expert to conduct an assessment on OCF focusing on Mechanical, Production and Human Resource components. The analysis will also include a business development plan, elaborating the requirements and steps to be taken to increase production to face the country’s growing demand and to supply these components to other countries in the region as well as establish effective export procedures/systems.

1.4 Background on OCF

Orthopedic Component Factory (OCF) in Phnom Penh was established in the early 1990s with the support of ICRC to manufacture prosthetic products for Cambodian population. ICRC handed the management, buildings, equipment, tools, and materials of OCF to the Ministry of Social Affairs, Veterans and Youth Rehabilitation (MoSVY) in January 2011 and it was hand overed fully to Persons with Disabilities Foundation (PWDF) in 2017.

At the point of handover, ICRC hired an external business consultant, that developed and designed a full fledge business plan for OCF to be self-sustaining by becoming a commercially oriented model and development of export market in the region. However, there is not much around how to sustainably meet local demand.

For the financial procedures of production, figures from the demand from PRCs are used to compile annual production projections, containing statistics on what and how much OCF produces and delivers to PRCs.

In terms of human resources, there are currently 32 staff members at OCF: 17 civil servants and 15 contractual workers. OCF remains a key element of the service, producing the elements that are assembled together and customized to make the load bearing structure of the prosthetic orthotics device.

OCF is the sole provider of the components to 11 PRCs in Cambodia. Without this factory, the country must return to importation of components from abroad, while an upscaling program can help it to become a regional production and supply hub for orthopedic component for Southeast Asian countries.

This consultancy is expected to analyze the current situation relating to all aspects of industrial management, production technology and human resources at the Orthopedic Component Factory (OCF), and to draw up a series of recommendations, operational tools, a business plan and a financial model for the OCF’s potential future operating method. One of the objectives of the consultancy is to create a blueprint to facilitate OCF’s transition to a commercially sustainable business. The other objective of the consultancy is to develop an action plan for OCF outlining how it will independently supply quality orthopedic components to the national and regional rehabilitation sector, on time and at competitive prices.

2. DESCRIPTION OF THE EXPECTED SERVICE AND DELIVERABLES

The expected outputs of the consultancy are as follows:

1. Situational analysis report based on combination of desk research, document review, in-person interviews/ fieldwork that will include:
   1. Review of OCF resourcing (e.g., human resources, machinery, technology used)
   2. Review of OCF service delivery (e.g., production capacity, delivery times)
   3. Review of OCF financial performance (historical and present)
   4. Analysis of external opportunities and challenges (e.g. modern technology, market size, trends in donor funding, competitors, etc.)
2. Updated OCF business plan that includes:
   1. Projected demand/market (in Cambodia and within the region)
   2. Proposed service delivery model(s) including:
      1. Target customers/ markets
      2. Pricing strategies
      3. Potential models of delivery
   3. Estimated costs needed per service delivery model, including (but not limited to):
      1. Human resource requirements, training costs, etc.
      2. Upgrade of machinery and mechanical components
      3. Development of supply chain/ distribution capacity
   4. Expected funding sources and gaps, including priority areas for investment by ATscale or other donors

3. DURATION AND PLACE OF PERFORMANCE OF THE SERVICE

3.1 DURATION

The estimated number of working days for the consultant(s) is 30 days within the timeframe from November to December 2024. A minimum 14 working days at the OCF site and meeting all the relevant stakeholders in Phnom Penh, Cambodia.

3.2 THE ASSESSMENT LOCATION: Phnom Penh, Cambodia.

3.3 RESOURCE PERSON(S)

Within the scope of work the consultant will be asked to collaborate and coordinate with:

1. Ministry of Social Affairs, Veterans and Youth Rehabilitation (MoSVY)
2. Ministry of Health (MoH)
3. Ministry of Economy and Finance (MoEF)
4. Persons With Disabilities Foundation (PWDF)
5. Physical Rehabilitation Centers (PRC’s)
6. Humanity & Inclusion (HI)
7. Clinton Health Access Initiative (CHAI)
8. International Committee of the Red Cross Cambodia (ICRC)
9. Exceed Worldwide
10. World Health Organization (WHO)
11. United Nations Development Programme (UNDP)
12. The Cambodian Prosthetist and Orthotist Association (KhAPO)

4. WORK PLAN

• Based on the proposed schedule included in these Terms of Reference, the consultant should establish a work plan for the completion of the service.
• The work plan should give a clear description of how the consultant intends to approach the activities necessary for the service’s completion.
• The plan should indicate the rate of progress and/or level of completion of the service, including criteria and indicators for checking that it is proceeding as planned.

5. CONSULTANT’S PROFILE (Expertise requirement from the consultant(s))

Due to the nature of the expected outcome, it is expected that the consultancy will be led by an expert in the field of Prosthetics and Orthotics and co-lead by an expert in financial/business development.

Essential criteria for the lead consultant:

The lead consultant will take the overall responsibility to evaluate or develop a business plan for a factory producing components for prosthetics and orthotics (P&O) and hence the expected profile would require a comprehensive skill set that includes expertise in P&O, business acumen, leadership, and a deep understanding of the industry. Below are the key criteria for the lead consultant to effectively lead such a consultancy:

Advanced Degree: A Master’s or Doctorate in Prosthetics and Orthotics, Biomedical Engineering, Rehabilitation Science, or a related field.

1. Certifications: Relevant certifications from recognized bodies such as the American Board for Certification in Orthotics, Prosthetics & Pedorthotics (ABC) or the International Society for Prosthetics and Orthotics (ISPO), with expertise in supply chains, sustainability and international development investment in Prosthetics & Orthotics services.
2. Years of Experience: A minimum of 10-15 years of experience in the field of P&O, with significant time spent in both clinical practice and the manufacturing or production side of the industry.
3. Leadership Roles: Previous roles that demonstrate leadership and management skills, such as leading a clinical department, heading a research team, or managing a production facility.
4. Product Development: Experience in designing, developing, and testing P&O components, with a strong understanding of the materials and technologies used.
5. Quality Control: Expertise in implementing and overseeing quality control processes to ensure that P&O products meet regulatory standards and performance criteria.
6. Regulatory Knowledge: Familiarity with industry standards and regulatory requirements, such as those from the FDA, CE, and ISO.
7. Leadership and Management Skills: Ability to work collaboratively with cross-functional teams, including operations, marketing, and product development, to ensure technical and financial objectives are integrated into business strategies.

Essential criteria for the co- lead:

The co-lead will focus on the review of the existing financial plan of OCF and together with the lead consultant revise the business plan for OCF in view of the upscaling of the facility into the regional hub structure as envisioned. Ideally, the co-lead should be a financial and/or value chain expert with a unique blend of financial acumen, industry knowledge, and strategic planning capabilities. Below are the key criteria that define a suitable financial expert for this role:

1. Advanced Degree: A master’s degree in finance, Accounting, Business Administration, or a related field.
2. Certifications: Professional certifications such as Certified Public Accountant (CPA), Chartered Financial Analyst (CFA), Value chain specialist or similar credentials are highly desirable.
3. Industry Experience: At least 10 years of experience in financial roles within manufacturing, healthcare, or a related industry, with specific exposure to the P&O sector being an advantage.
4. Financial Planning and Analysis: Proven experience in financial planning, analysis, and reporting, including budgeting, forecasting, and variance analysis.
5. Cost Accounting: Proficiency in cost accounting and management, particularly in a manufacturing context, to evaluate production costs and efficiency.
6. Financial Modelling: Expertise in developing detailed financial models to project revenues, expenses, cash flows, and profitability.
7. Capital Budgeting: Experience with capital budgeting processes, including evaluating investment opportunities and assessing their financial viability.
8. Strategic Planning: Ability to contribute to strategic planning by providing financial insights and aligning financial goals with business objectives.
9. Market Analysis: Capability to perform thorough market analysis to understand industry trends, competitive landscape, and market demand.
10. Risk Management: Proficiency in identifying, assessing, and mitigating financial risks associated with business operations and strategic initiatives.
11. Regulatory Compliance: Understanding of financial regulations and compliance requirements relevant to the P&O industry.
12. Taxation: Knowledge of tax laws and regulations, including those specific to manufacturing and healthcare sectors.

6. REQUIRED DOCUMENTS FOR PROPOSAL

Proposals from interested consultant(s) must include the following documents (compulsory documents in English):

1. An Expression of Interest/cover letter, including how the skills and competencies described in the Terms of Reference are met.

2. A Curriculum Vitae detailing the consultant’s experience and qualifications to undertake the assignment.

3. A technical proposal outlining the proposed methodology and a tentative workplan.

4. A financial proposal in USD that includes the daily consultancy fee and all associated costs (e.g. international flight ticket, airport transfers, accommodation, daily subsistence expenses, personal insurance and external translator fee during the field visit, etc.).

5. References of past consultancies undertaken on similar subject.

7. BUDGET

The consultant should submit HI the financial proposal including costs to produce the identified deliverable services (transportation, accommodation, personnel, translation, computer, printing questionnaires, specific tools/software, office materials…) and any applicable tax in the country (VAT or withholding tax).

Please note that no travel allowance (per diem) will be paid to the consultant, and they will be responsible for their own security within the country, HI will not cover any insurance fee during the consultancy period.

Please note that the final payment is conditional on the validation of the final report and not solely on its submission. Validation means ensuring that the report meets the quality standards as per the checklist attached above, and it is not based on the appreciation of the project evaluated.