Tender Description

SOS Children’s Villages International (SOS CVI**)**, founded in 1949, is a global, non-governmental federation operating in 137 countries, including Somalia and Somaliland. As the umbrella organization, our mission is to work with communities and partners to ensure the rights of all children are fulfilled, particularly those who have lost or are at risk of losing parental care. This vital work is sustained by the generous support of sponsors, donors, and partners globally

Context and objective

This Terms of Reference (ToR) outlines the requirements for the procurement, implementation, and integration of a modern payroll system for SOS Children’s Villages Somalia and Somaliland. Currently organization utilizes Microsoft Dynamics 365 Finance and Human Resources to manage its financial and HR operations. However, existing payroll processes remain largely manual and fragmented, resulting in inefficiencies, limited auditability, and challenges in ensuring statutory compliance across multiple country programs. The lack of seamless integration with the core HRIS platform further exacerbates data consistency issues and limits operational visibility.

To address these gaps, SOS CV Somalia and Somaliland seeks to procure and implement a robust, secure, cloud-based Payroll System that seamlessly integrates with Microsoft Dynamics 365 Finance and HR. The solution should deliver a dependable, auditable, and user-friendly experience that supports timely salary processing, automated payslip generation, and comprehensive payroll reporting in compliance with internal policies and applicable laws. It should also support future scalability through a Software-as-a-Service (SaaS) model, initially implemented at the Mogadishu and Hargeisa offices, with the potential for replication across other locations. The system must adhere to global and local data protection regulations (e.g., GDPR, national labor laws) and ensure encrypted, secure handling of payroll data while enabling real-time data interoperability with the D365 ecosystem.

Scope of work: 

The sought-after payroll solution for SOS CV Somalia and Somaliland should deliver a secure, automated, and integrated payroll platform that improves operational efficiency, eliminates manual errors, and ensures compliance with both internal policies and external statutory requirements. The system should build a single source of truth for payroll data and seamlessly integrate with Microsoft Dynamics 365 Finance and HR.

• The payroll system should offer the following critical capabilities:
• Build a unified source of payroll data that enables accurate and real-time reporting
• Fully automate the payroll lifecycle: input, processing, post-processing

1. Input

• Integration with Microsoft D365 HRIS to eliminate manual data entry.
• Automated assignment of salaries, allowances, and benefits based on employee roles and policies.

2. Processing

• Automated calculations for all pay types including bonuses, deductions, loans, pro-rata, and final pay.
• Integration with leave management for automated payroll impact of leave types.
• Online payroll validation to ensure only approved payroll is processed.

3. Post-Processing

• Generate bank payment files in required formats, eliminating manual edits.
• Automatic generation of salary journals for upload into proprietary systems.
• Support for all pay types including 13th month, temporary allowances, and back pays.
• Flexible pay categories with budget code tagging, cost centers, and allocation tracking.
• Monthly, quarterly, and annual summaries of payroll earnings, benefits, and tax.
• Full audit trails and reconciliation reports (e.g., salary variances month-to-month).
• Dynamic payroll reports: registers, tax returns, department costing, custom user reports.

4. System Functionalities

• Support for growing staff volumes including permanent, casual, and temporary workers.
• Automatic pro-rating for hires/leavers mid-month.
• ESS portal with payslip access, loan requests, and salary advance applications.
• Flexible processing of extra payments and deductions with appropriate access controls.
• Ability to simulate, re-run, and back-calculate payroll.
• Ability to handle payroll in multiple currencies, with current use case in USD.
• Bulk updates for exchange rates, tax brackets, salary scales, pension formulas.
• Automatic email distribution of payslips.
• Role-based access controls for transaction approvals and processing rights.
• Automated backups and month/year-end closure controls with rollover capabilities.

5. Data Management

• Allow import/export of data via Excel, Word, and PDF.
• Archive and print historic payroll data for any period.
• Allow document uploads (HR templates, contracts) linked to staff records.
• Enable migration of legacy payroll data from Excel-based sources.

6. Support, Training & Documentation

• Training for HR, Finance, and ICT personnel on the system's use and administration.
• Provision of system admin and end-user manuals.
• Availability of technical support via phone, email, and collaboration tools.

Technical, Security and Integration Requirements

The payroll solution must meet stringent technical, security, and integration requirements to ensure secure, resilient, and seamless operation. The solution must adhere to best practices in identity management, data protection, user accessibility, and cloud integration to meet both international compliance standards and local regulatory requirements.

• Seamless, real-time integration with Microsoft Dynamics 365 Finance & Operations (D365 F&O) for both HR and Finance modules.
• A payroll platform accessible both locally and remotely (web-based), equipped with robust security features including encryption, role-based access control (RBAC), and secure login mechanisms
• Support for Single Sign-On (SSO) using Azure Active Directory.
• Enforce Multi-Factor Authentication (MFA) for all user logins.
• Support encrypted data storage and secure transmission.
• Provide automatic data backups and restore capabilities.
• Capability to log and audit all administrative activities and any unauthorized access attempts.
• Responsive design enabling use on multiple device types including desktops, laptops, smartphones, and tablets.
• Deployment compatibility with Microsoft Azure Cloud, including Azure-hosted application and data services.
• Integration with Microsoft Exchange Online to enable automated and secure payslip delivery via email.
• Collaborative configuration and customization of the system based on specific organizational workflows and rules.
• Provision of regular system updates, including annual patching, bug fixes, and security enhancements.
• System testing and quality assurance to verify full functionality, performance, and compliance before go-live.

Audit and Compliance Capabilities

To ensure transparency, compliance, and accountability, the payroll system must provide extensive auditing and reporting capabilities. These features are essential for internal audits, donor reporting, financial reconciliations, and statutory compliance. The system must align with existing payroll cycles and provide role-based access and authorization logs.

• Generate audit reports detailing user activities, changes to payroll data, and approval actions.
• Provide error reports and adjustment listings that highlight exceptions and corrective entries.
• Generate 12-month consolidated reports, including calculations for 13th check or bonus payrolls.
• Produce system reconciliation reports comparing payroll entries with accounting and HR data.
• Offer configurable user levels, with a complete list of authorized users and their permissions.
• Maintain robust logging and audit trails that are immutable and exportable for compliance audits.
• Synchronize effectively with the existing payroll calendar and processing workflows to minimize disruptions to business operations.

Pricing Methodology

Suppliers are required to propose a transparent and cost-effective pricing model that aligns with the operational and budgetary needs of SOS Children’s Villages Somalia and SOS Children’s Villages Somaliland. The proposed pricing must clearly outline all cost elements and demonstrate long-term value for both organizations. Specifically, the supplier must address the following:

a) License Fees – Per User Licensing:
The solution should be licensed on a per-user basis, with a breakdown of user tiers (e.g., administrators, HR/Finance staff, view-only users, etc.), and respective unit costs. Volume discounts or non-profit pricing structures should be clearly indicated.

b) License Portability:
Licenses must be transferable across users to accommodate staffing changes without incurring additional fees. The proposal should specify the process and limitations (if any) for transferring licenses between named users.

c) Credit Utilization for Professional Services:
If prepaid license costs exceed actual usage, SOS CV Somalia and Somaliland should have the flexibility to convert or draw down the unused license credits toward professional services such as training, configuration, or reporting support.

Note: All pricing must be quoted in USD, exclusive and inclusive of applicable taxes, and should cover at least a 3-year cost projection, including:

• Initial implementation fees
• Subscription/licensing costs
• Support & maintenance
• Optional modules and integrations

Deliverables and expected results

• The successful implementation of the payroll system shall result in the following key deliverables and tangible outcomes:
• A fully functional, production-ready payroll system tailored to the operational and compliance requirements of SOS CV Somalia and Somaliland seamlessly integrated with Microsoft Dynamics 365 Finance and Human Resources.
• A secure, accessible payroll application that web-based access, featuring industry-standard technical safeguards such as data encryption (at rest and in transit), Role-Based Access Control (RBAC), and secure authentication mechanisms.
• Comprehensive user manuals, training guides, and technical documentation that clearly instruct HR, Finance, and ICT users on system functionality, configuration, payroll processing, reporting, and troubleshooting.
• An implementation completion report outlining the full scope of activities executed during the project lifecycle, including configuration steps, system integration touchpoints, test results, training delivery, and data migration milestones.
• A post-implementation support package that includes clearly defined Service Level Agreements (SLAs), routine application updates and upgrades, technical support provisions, and mechanisms for continuous system maintenance.

Timeline

Estimated time for the successful launch of the system is three months to start in November to January 2026. This includes time for development, planning and the rollout of the system

Payment schedule:
Payment will be dispensed in 3 phases, 50% after completion of the first batch and 40% upon completion of payroll project and 10% will be retained until the system works properly.

Intellectual ownership 

All documents pertaining to this task will remain the exclusive and sole property of SOS CV Somalia and Somaliland. 

Support to be provided by SOS CV Somalia and Somaliland

Upon contract award, SOS Children’s Villages Somalia and Somaliland will actively support the implementation of the payroll system by providing the necessary resources, access, and coordination needed to ensure a smooth and efficient deployment. Both organizations commit to the following actions:

Initial technical & functional support

• Deliver a detailed briefing outlining the organization’s payroll requirements and desired system functionalities, including policies, payroll cycles, staff categories, and statutory needs.
• Share relevant payroll data sets to be imported or migrated into the new system, including historical salary records, staff profiles, and compensation structures.

Implementation facilitation

• Grant controlled access to existing systems and databases that require integration with the proposed payroll solution (e.g., Microsoft Dynamics 365 Finance & HR).
• Coordinate introductions to relevant stakeholders and end users, including HR, Finance, and ICT teams, to support collaborative implementation and system testing.
• Provide sample payroll data in advance to assist the vendor in conducting preliminary demonstrations or proof-of-concept sessions.

These support measures are intended to streamline onboarding, facilitate accurate system configuration, and ensure stakeholder alignment throughout the project lifecycle.

Selection Criteria

SOS Children’s Villages Somalia and Somaliland will jointly evaluate all submitted proposals using a comprehensive, multi-criteria assessment framework. The selection will be conducted at the sole discretion of SOS CV Somalia and Somaliland, based on both technical and financial merits, as well as demonstrated capacity to deliver a sustainable and secure payroll solution. Proposals will be assessed with the following key criteria:

Technical & organizational evaluation

• Completeness, clarity, and overall quality of the proposal submission.
• Proven quality, reputation, and performance in delivering cloud-based payroll solutions, preferably with demonstration models or samples for testing.
• Track record of excellent service delivery, technical support, and extended warranties across with at least 5 years minimum experience.
• Proven experience working for large organizations, especially international organizations, in implementing a web-based payroll system including full range of activities such as customization, integration, testing, installation and launching
• References for successful implementation of similar projects from previous customers preferably from similar non-governmental organizations (NGOs) 
• Competitive pricing with the ability to offer consistent and locked pricing models to support phased rollouts and long-term budgeting.
• Clear and detailed project implementation plan with milestones, deliverables, named project team members, and an escalation matrix.
• Ability to clearly define and explain all cost components, including country-specific costs, landed costs, implementation lead times, and fulfilment strategies.
• Substantial experience delivering cloud-native, subscription-based payroll solutions requiring no on-premises IT infrastructure. Vendor must submit a solution architecture diagram.
• Transparency around product lifecycle—frequency of updates, versioning, and change management methodology for software upgrades.
• Capability to deliver a live demo using sample data provided by SOS CV Somalia and Somaliland, clearly showcasing how the solution will integrate with Microsoft D365 F&O and other relevant systems.
• Detailed plan for hyper-care support period (minimum 90 days post go-live), with service continuity processes prior to the start of the annual maintenance contract.
• Total cost of ownership analysis for two organizations, including:
  1. Implementation and configuration costs
  2. Licensing/subscription fees
  3. Integration costs
  4. Annual support and maintenance (SLA) costs
• Demonstrated compliance with SOS CV Somalia’s and Somaliland minimum Information Security Baselines, including but not limited to data encryption, access control, audit logging, cloud security, and GDPR compliance. Reference Appendix A for detailed security requirements.

Financial Evaluation

Information Security & Compliance

Appendix 1: Information Security Supplier Qualification Check

A. General Information

General InformationAnswersComments1. Which country is the supplier headquartered?  3. Will the supplier agree to give SOS CV Somalia and Somaliland the right to audit or perform security evaluation?

 ‰ Yes

 

 ‰ No

 4. Will the supplier agree to give copies of their most current valid audit reports?

 ‰ Yes

 ‰ No

 5. Does the confidentiality, availability, continuity, privacy, and incident management provisions in the Service Level Agreement meets SOS CV Somalia and SOS CV Somaliland requirements?

 ‰ Yes

 ‰ No

 6. Will the supplier agree to destroy SOS CV Somalia and SOS CV Somaliland data and provide data destruction attestation at the end of the contract or agreement?

 ‰ Yes

 ‰ No

 What data type will be processed by the supplierAnswersDescribe the data fields1. Employee Personal Data

 ‰ Yes

 ‰ No

 2. Child Personal Data

 ‰ Yes

 ‰ No

 3. Donor/Sponsor Personal Data

 ‰ Yes

 ‰ No

 4. Payment Card Data

 ‰ Yes

 ‰ No

 

 

B. SOS CV Somalia and SOS Somaliland Information Security Requirements

Does the supplier organization have documented policies?AnswersDescribe and attach the policy document provided1. Information Security Policy or Cybersecurity Policy

 ‰ Yes

 ‰ No

 2. Data Protection and Privacy Policy

 ‰ Yes

 ‰ No

 What security capabilities does the supplier have?AnswersDescribe the security capability provided1. Data Encryption

 ‰ Yes

 ‰ No

 2. e-Discovery and Digital Forensics

 ‰ Yes

 ‰ No

 3. Privacy By Design

 ‰ Yes

 ‰ No

 4. SAML/SSO

 ‰ Yes

 ‰ No

 5. Threat Intelligence

 ‰ Yes

 ‰ No

 6. Disaster Recovery

 ‰ Yes

 ‰ No

 7. Cybersecurity Incident Response

 ‰ Yes

 ‰ No

 8. Privacy Data Breach Response

 ‰ Yes

 ‰ No

 Is the supplier audited or certified? If so, which one of the following?AnswersAttach the report or reference provided1. Statement on Standards for Attestation Engagements (SSAE) No. 18

 ‰ Yes

 ‰ No

 2. Privacy Shield

 ‰ Yes

 ‰ No

 3. Payment Card Industry - Data Security Standard (PCI – DSS)

 ‰ Yes

 ‰ No

 4. Others, please specify:

 ‰ Yes

 ‰ No

 5. SOC 1 / SOC 2 / SOC 3 (AICPA Standards)

 ‰ Yes

 ‰ No

 6. Others, please specify:

 ‰ Yes

 ‰ No

 

 

Appendix II – Other Non-Functional Requirements.

Describe the available technologies used to integrate the application with customer IT environment.Describe available API or web service capabilities of supplier application, both common API service catalog and connectors to specific 3rd party tools. Supplier application is API capable, with services that caSupplier application API/Web services follow the Representational State Transfer (REST) style of web service.Supplier application API/Web service payloads are formatted (parsed) in XML or JSON.Supplier application provides an API/Web service catalog listing all services that can be called securely by other entities in the customer system to access its application data, either to read or update.Supplier application has capability to export/import application data.For applications providing API service offerings, describe notification process to customers regarding changes in service payload (eg. syntax, reference data including country codes changes, adds or deletions) and amount of lead time.

Skills Required

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