The ICV program will, over time, establish a robust baseline which each supplier will be measured against accordingly. Additionally, the program will measure the progression of ICV over time and ensure processes and systems are in place to maximize ICV.
The ICV program will contribute to a sustainable Energy sector by ensuring that each Supplier is evaluated in a uniform manner and that Suppliers will be appropriately developed and incentivized to drive Qatar’s economic growth.
First and foremost, Suppliers must be technically capable of providing the material(s) and/or service(s). Additionally, Suppliers must ensure a blend of technical capability, price competitiveness and strong ICV score to win the bid; a Supplier with the highest ICV score is not guaranteed to win.
ICV plan will be monitored at the middle and end of the contract. Suppliers will be responsible for getting their ICV Plan Tracker certified at the end of the contract to ensure they have met their target.
There will be some exceptions to the technical evaluation for new Suppliers investing in Qatar to promote the establishment of new facilities in country. We recognize that the technical evaluation criteria may be stringent and disadvantageous to new Suppliers in the market.
No. ICV will be used as a parameter during commercial evaluation. Should a company fail to submit an ICV Scorecard/Plan, then its ICV will be considered zero.
The ICV Scorecard is based on the last 12-month audited financial statements and is valid for one year, to be refreshed annually. The ICV Plan is forward looking and hence highlights the forecasted spend per contract. It is submitted per contract if requested by the Energy Company.
The ICV score is made up of 5 key components: 1. Spend on goods procured in country 2. Spend on services procured in country 3. Spend on supplier development in country 4. Spend on training of Qataris and residents 5. Investments in fixed assets in country The summation of the 5 elements is then divided by revenue generated in Qatar.
ICV formula takes into account the compensation and benefit only; we have a set a minimum salary requirement for residents and anything below this salary will not be counted towards ICV.
It is difficult to certify the education level of the workforce. Also, the quality of education varies across different local and foreign institutions.
Spend on raw materials purchased from abroad negatively impacts the ICV score, however that spend may be partially offset by local procurement of other goods and services, spend on workforce training, spend on supplier development and depreciation of fixed assets in Qatar. If a raw material is not available in Qatar, then all the companies who import it will be at the same level playing field in terms of ICV.
The denominator of the ICV formula represents a company's revenues in Qatar, hence export revenues are excluded. At the same time, all costs associated with exports are accounted for in the numerator. This does in fact mean that exporting provides a certain advantage in terms of ICV. However, export-heavy companies will be dealt with on a case by case basis in terms of ICV certification to ensure fairness amongst Suppliers in the energy sector.
In the Goods and Services ICV formula components, a company's ICV score is calculated by multiplying spend on a certain subcontractor by that subcontractor's ICV score. Hence the company will be encouraged to improve its subcontractors' ICV scores or opt to work with other subcontractors with higher ICV scores.
These categories are currently irrelevant to the performance of the local economy based upon our defined strategic objectives but might be considered in the future.
Certifiers will be audited and will have their own ICV Scorecards certified by a Tawteen appointed Auditing firm in order to ensure the fairness and accuracy of the certification process.
The design of the formula and calculation methodology leaves little room for interpretation. If a Supplier is not satisfied with its ICV score, it should discuss it with its Certifier first to try to resolve it. If the issue is not resolved, the Supplier can report it to Tawteen.
Each legal entity within an organization must have its own ICV score and the entity bidding for work will have to submit its own certified ICV score, not that of the parent company.
No. The audited financial statement has to be issued within the last 2 years to be considered for ICV certification. latest 12-month audited financial statements will be used as a basis for ICV Scorecard certification, which will be valid for one year from the date of issuance.
ICV Certifiers are financial auditing firms which have been prequalified by Tawteen and are held to stringent ethical and risk management standards and protocols.
There will be two major ICV inputs; the ICV Scorecard and the ICV Plan. The ICV Scorecard will be at a Supplier level based on the previous fiscal year data and certified by a pre-approved Certifier. The ICV Plan is done at a contract level and is based on ICV forecast, applicable for specific contracts.
Suppliers will engage with a preapproved Certifier and submit the ICV Scorecard Submission Template to get the information validated. Upon validation, the Supplier will receive an ICV certificate with their ICV score. Please contact any of the approved ICV Certifiers for further information.
The ICV Auditor will be responsible for conducting audits on the Certifiers. This will ensure that the proper ICV certification policies, procedures, and processes are followed, and that Certifiers are meeting the quality and accuracy standards required.
Average certification can take up to 2-3 weeks, depending upon availability of supplier data. Please contact any of the approved ICV Certifiers for further information.
ICV Overview
ICV Certification
Suppliers’ ICV Database