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Pioneer ICV & ADV Consultants

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– ADV CERTIFICATION CONSULTANCY

ABU DHABI VALUE CERTIFICATION IS NOW UNIFIED ICV CERTIFICATION

The Abu Dhabi Department of Economic Development has merged its ADV Certification program (ADLC Program) with the Unified ICV program that was initially launched by the ADNOC. The Suppliers are required to acquire a Unified ICV Certificate Revision 3 to participate in the tenders of the Abu Dhabi Government Departments.

The Abu Dhabi Department of Economic Development (ADDED) introduced its ADV Certification program (Abu Dhabi Local Content Program) on 21st April, 2019 which required all suppliers of goods or services of any Department related to Abu Dhabi’s Government are mandated to calculate and declare their certified ADV (Unified ICV) score for the previous financial year, to demonstrate how they are contributing to the UAE economy.

ADV (Unified ICV) will affect any party wishing to directly or indirectly engage with the Government departments of Abu Dhabi. Suppliers will be asked to submit an ADV (Unified ICV) Certificate along with their bid. ADV (Unified ICV) is mainly relevant during the evaluation phase. Bidders having passed the technical evaluation will be ranked in accordance with:
• best price; and
• best ADV (Unified ICV) score

WHY HAS THE ADV CERTIFICATION / ICV CERTIFICATION PROGRAM BEEN IMPLEMENTED IN UAE?

Abu Dhabi Value Certification/In-Country Value (ICV) program was announced with the following objectives:

(a) Emiratization: Creating additional employment opportunities for Emiratis in the private sector;

(b) GDP Diversification: Supporting UAE GDP diversification by sourcing additional goods and services within the UAE; and

(c) Strategic Considerations: localizing strategically critical parts of the value chain for selected categories.

The following areas are considered for unified ICV calculations:

(a) Goods Manufactured (only for Suppliers holding Industrial License)

(b) Third Party Spend (only for Suppliers holding non-Industrial License)

(c) Investment

(d) Emiratization

(e) Expatriate Contribution

(f) Bonus – i) Revenue from outside UAE.  ii) Emirati Head count

WHO NEEDS AN ADV CERTIFICATE / UNIFIED ICV CERTIFICATE?

Companies working directly as supplier or indirectly as sub supplier with following Govt. and semi Govt. Department are required to acquire the ADV certificate/unified ICV certificate version 3.

  • ADNOC Group Companies
  • Abu Dhabi Department of Economic Development
  • Aldar Properties
  • Abu Dhabi Ports
  • Environment Agency Abu Dhabi
  • All other Govt Departments of Abu Dhabi
  • Companies submitting tenders through Musanada (Abu Dhabi General Services Company)

BASIC INFORMATION REGARDING ADV/ICV CERTIFICATION

UNIFIED ICV CERTIFICATION FOR GROUP COMPANIES

Each license of a Company is considered as an independent legal entity even if the ownership is the same. However, if a Company has different branches in the same Emirate with identical activities and ownership listed on the licenses, then one combined Unified ICV certificate is allowed for the Company in that Emirate.

IFRS BASED AUDITED FINANCIAL STATEMENTS

Unified ICV certification is based entirely on audited financial statements of the company. The audited financial statements shall be as per the International Financial Reporting Standards (IFRS) and shall not be older than 2 years from the certification year i.e. for ICV certification in 2020, the audited financial statements to be considered shall not be older than 2018.

MANAGEMENT ACCOUNTS FOR NEWLY ESTABLISHED COMPANIES

For newly established Companies (less than 10 months old) that do not have audited financial statements, the Management Accounts for a period of up to 9 months can be used for unified ICV calculations. Any management accounts greater than 9 months will be required to be audited.

UNIFIED ICV CERTIFICATION VALIDITY

The unified ICV certificate shall be valid for a period of 14 months from the date of issuance of Audited Financial Statements. The supplier can get recertified during the validity of the ICV certificate if he chooses to, using the same audited financial statements, but the validity of 14 months from the first issue will remain same.

ICV IMPROVEMENT PLAN

When the terms of the tender are required, the Supplier shall submit an ICV Improvement Plan along with the commercial bid.

The ICV Improvement Plan will be a contractual commitment linked to a payment against the achievement of actual ICV achieved vis-à-vis the ICV committed as per the ICV Improvement plan.

Types of ICV improvement plan

  • Company based Improvement Plan
  • Agreement based Improvement Plan

The weighted average of the Planned ICV% as per ICV Improvement plan along with ICV certificate score shall be considered to arrive at the ICV ranking of the Bidder during commercial evaluation. For monitoring the ICV actually achieved vis-à-vis the ICV planned as per the ICV Improvement plan, the Supplier shall provide the latest ICV certificate from the Supplier upon completion of each Agreement year.

A Milestone towards the achievement of ICV for an amount of 5% of the Agreement value shall be included in the Contract and this payment will be released after completion of each year from the commencement date of the Agreement in proportion to the actual ICV achieved as per the latest ICV certificate.

WHAT WE OFFER AS TRUSTED ADV CONSULTANTS

WHAT WE OFFER AS ABU DHABI VALUE CERTIFICATION CONSULTANTS

  • ADV CERTIFICATION / UNIFIED ICV CERTIFICATION
  • UNIFIED ICV CONSULTANCY
  • ADV IMPROVEMENT PLAN / ICV IMPROVEMENT PLAN
  • UNIFIED ICV PROGRAM IMPLEMENTATION

We have set up a specialized sub-service line for ICV to help and arrange ICV certification for our clients in order to meet their required level of ICV score in the following ways.

  • Making the clients understand the ICV and the determining factors that affect the ICV score.
  • Suggest the steps of improving ICV score and include the incremental effect of each step in our impact analysis report. This includes mainly, among other steps, the recommendation of restructuring in organizational processes to increase ICV score.
  • Draft the ICV template, based upon the records of financial year under certification that can be presented to ICV auditor to ensure the achievement of ICV score as per drafted template.
  • Draft the ICV improvement plans that are required to be submitted with the tenders of ADNOC, Department of Economic Development, Abu Dhabi Ports and Aldar Properties.
  • Demonstrate about the working criteria for ICV improvement plan and how to present the ICV scores across the period of plan to avoid seizure of ICV milestone payments.

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