ICV Improvement Plan

What is ICV Improvement Plan?

ICV Improvement Plan is a document that describes a company’s summarized action plan for increasing the ICV Score in a specific time period.

Who requires ICV Improvement Plan?

ICV Improvement Plan is one of the requirements that is mentioned in the tender terms and conditions in ADNOC tenders. When the terms of tender require, the Supplier shall submit ICV Improvement plan along with the other commercial bid.

Why ICV Improvement Plan is important?

ICV improvement plan carries more weightage during bid evaluation compared to the existing ICV Certificate. Therefore, even if a Company’s ICV Certificate is showing a good score, there are still chances to be at a competitive disadvantage if the improvement plan will not be showing notable improvement in ICV score in subsequent years covering the agreement year.

Is ICV Improvement Plan a contractual obligation?

When a tender is awarded to the Supplier, the ICV Improvement Plan becomes a contractual commitment linked to payment against the achievement of actual ICV score achieved in comparison to the ICV score committed as per the ICV Improvement plan.

What is the disadvantage of ICV Improvement Plan?

A total of 5% of the contract value will be retained by ADNOC as ICV Fee and this will be released when ICV Improvement Plan is achieved.

How does the ICV Fee is released when Improvement Plan is achieved?

A Milestone towards the achievement of planned ICV score 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 score achieved as per the latest ICV certificate.

ICV Milestone Payment Process:

Total ICV Fee = 5% of contract amount
Annual ICV Fee = Total ICV Fee/Duration of Agreement (Years)
Annual ICV entitlement = Annual ICV Fee × (Actual ICV Growth/Planned ICV Growth)
Supplier to submit separate invoice at the end of each Agreement Year to claim Annual ICV entitlement. If the Supplier meets the target in any subsequent year, the unpaid amount in previous years shall be released.

How does the ICV improvement plan is monitored?

For monitoring of the ICV score actually achieved in comparison to the ICV score planned as per the ICV Improvement plan, the Supplier shall provide the latest ICV certificate upon completion of each Agreement year.

The National In-Country Value Program

The initiative takes into account local spending, local investments, local goods and services, as well as the hiring and training of Emiratis. It tries to aid domestic business and reroute money spent on purchasing products and services to the domestic economy.

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