REQUEST FOR PROPOSAL CLOUD BASED PAYROLL SOLUTION

Background

SOS Children’s Villages is a non-profit, non-denominational, social development organisation with the vision that every child belongs to a family and grows with love, respect, and security.  The organisation’s mission is to build families for children in need, help them shape their own future and share in the development of their communities. SOS Children’s Villages is organised as a federation of autonomous and inter-independent Member Associations (MAs), which support each other in a spirit of solidarity.

The General Secretariat (GSC) is currently the federation´s operating arm and it is represented by the International Office (IO) based in Austria, and 5 Regional Offices (IORs) located in Vienna (Austria—IOR EUCM), Addis Ababa (Ethiopia—IOR ESAF) , Dakar (Senegal—IOR WCNA), New Delhi (India—IOR ASIA) and La Paz (Bolivia—IOR LAAM).

The organisation operates in 136 countries and territories worldwide through its Member Associations (MAs), who deliver care programmes and services to children and young people without adequate parental care or at risk of losing it.

The East and Southern Africa (ESAF) region, headquartered in Addis Ababa, Ethiopia, with a branch office in Nairobi, Kenya, supports 25 member associations across all work areas including programme implementation, advocacy, fundraising, and governance.

Context and objective

This Terms of Reference (ToR) outlines the requirements for the procurement, implementation, and integration of a modern payroll system for SOSCVI’s ESAF Region for the two offices based in Nairobi, Kenya and Addis Ababa, Ethiopia.

The existing payroll processes remain Partly Automated and Partly 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 CVI ESAF seeks to procure and implement a robust, secure, cloud-based Payroll System that could seamlessly integrates with Microsoft Dynamics 365 Finance and Operation through. The solution should deliver a dependable, auditable, and user-friendly experience that supports timely salary processing, automated group payslip generation, and comprehensive payroll reporting in compliance with internal policies and applicable laws.  The system must adhere to global and local data protection regulations (e.g., GDPR, national labour laws (Kenya & Ethiopia) and ensure encryption (at rest and in transit), 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 CVI_ESAF must 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 through Application Programming Interface (API) and Single Sign On (SSO).

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 and reporting.

 1. Data Input

• The system must support the possibility of Integration with Microsoft D365 HRIS/Azure to import user related data while providing the option to encode data manually.
• 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 dues pay.
• Automated statutory tables in line with the laws of the two countries
• Ability to process the payroll in KES, ETB & USD
• 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.
• Integration (optional) with mobile payment gateways
• 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 centres, departments 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.
• Employee Self Service (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 Ethiopian birr, Kenyan Shillings and 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 24/7 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.

• Possible 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 and send notification.
• 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 and 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 International. The proposed pricing must clearly outline all cost elements and demonstrate long-term value for both organizations. Specifically, the supplier must address the following:

• 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.
• 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.
• Credit Utilization for Professional Services:
  If prepaid license costs exceed actual usage, SOS CVI 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 CVI and with possible seamless integration 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.

Project Timeline

Estimated time for the successful launch of the system is three months start on January 5, 2026, to April 5, 2026. This includes time for development, planning and successful rollout of the system.

Payment schedule
Payment will be dispensed in phases, 30% up on singing of the contract, 50% after system deployment and training and the remaining 20 % after completion of the project which includes successful parallel running of the system.

Intellectual ownership

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

Support to be provided by SOS CV International

Upon contract award, SOS Children’s Villages International 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 offices 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 International will evaluate all submitted proposals using a comprehensive, multi-criteria assessment framework. The selection will be conducted at the sole discretion of SOS CV International based on both technical and financial merits, as well as demonstrated capacity to deliver a sustainable and secure payroll solution.

Proposals will be assessed on 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 International, 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.

Financial Evaluation

Total cost of ownership analysis for two organizations, including:

• Implementation and configuration costs including system training for users
• Licensing/subscription fees
• Integration costs
• Annual support and maintenance (SLA) costs

Information Security & Compliance

Demonstrated compliance with SOS CV International minimum Information Security Baselines, including but not limited to data encryption, access control, audit logging, cloud security, and GDPR compliance including data protection rules in Kenya and Ethiopia.

Reference Appendix for detailed security requirements.

Appendix 1: Information Security Supplier Qualification Check

A. General Information

B. SOS CV International Information Security Requirements

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 ca
• Supplier 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.

Note:
Vendors must address all the above criteria explicitly in their proposals. These criteria are not presented in order of priority and may be weighted differently during evaluation. SOS CV International reserves the right to request clarifications, conduct interviews, or invite shortlisted vendors for solution walkthroughs.

SOS CVI Commitment

We are committed to safeguarding and protecting children in our programs by having a zero-tolerance policy in this regard. We are further committed to providing a safe environment for staff and children, young people and adults with whom we work, where human rights are respected and upheld, and healthy relations are fostered by building organizational systems, capacity, and awareness on PSHEA (prevention and protection against sexual harassment, exploitation, and abuse) guidelines. All our co-workers are obliged to follow our policy on Child Safeguarding and Protection, PSHEA, and Code of Conduct during bid submission

All the proposals must be submitted using this emails address ibo.nairobi@sos-kd.org and must be received at the latest by December 15, 2025, 5:00PM EAT. Submissions received after the deadline will not be considered.

Any requests for information regarding these Terms of Reference shall be sent to stephen.muthui@sos-kd.org. Tender prices must remain valid for 90 days from the date of tender closing.

“SOS Children’s Villages International reserves the right to accept or reject any proposal and is not bound to give reasons for its decision”.