Policies and Procedures Manual Procurement Procedures ...

1 Policies and Procedures Manual Procurement Procedures Procurement Policy title Procurement Procedures Previous title (if any) Policy and Procedures for Regular Procurement Policy objective The policy on Procurement Procedures outlines the principles of UNFPA s Procurement process. Target audience The policy applies to all UNFPA personnel involved in the Procurement process. Risk control matrix Controls of the process are detailed in the Risk control matrix Checklist N/A Effective date 15 June 2019 Revision History Previous revisions: Rev. 4 April 2015 Rev. 3 October 2012 Rev. 2 October 2001 Mandatory revision date December 2021 Policy owner unit Procurement Services Branch Approval Link to signed approval template Policies and Procedures Manual Procurement Procedures Procurement Table of Contents I PURPOSE 1 II POLICY 1 III Procedures 11 1.

2 INTRODUCTION 11 Application and principles 11 Application 11 Principles 15 Regulatory framework 17 Procurement principles 21 Best value for money 22 Fairness, integrity and transparency 22 Open and effective international competition 23 The interest of UNFPA 24 Ethical standards 24 General considerations 24 Financial disclosure and declaration of interest 26 Ethics in dealing with suppliers 26 Gifts, hospitality and outside activities 27 Proscribed practices by suppliers 28 Fraud prevention in the Procurement process 28 UNFPA-specific topics 28 2. ORGANIZATION OF Procurement 29 Overview of Procurement process 29 Outline of the Procurement process 29 Types of Procurement 30 Documentation of the Procurement process 30 Key responsibilities of the various UNFPA organizational units 31 Organization and function of Procurement department 38 Policies and Procedures Manual Procurement Procedures Procurement Procurement authority 38 Modification of individual Procurement authority 38 Delegation of Procurement authority 38 Delegation of Procurement authority to UNFPA officers at headquarters 38 Delegation of Procurement authority to field office managers 41 Delegation of Procurement

3 Authority under the terms of the UNFPA Internal Control Framework ( ICF ) 43 Withdrawal of delegation of Procurement authority 43 UNFPA-specific topics 43 3. SUPPLIER REGISTRATION AND MANAGEMENT 44 Supplier registration 44 Supplier management 45 Supplier appraisal 45 Contractor evaluation 45 Vendor ineligibility 46 UNFPA-specific topics 47 4. Procurement STRATEGY AND PLANNING 48 Procurement strategy 48 Requirements definition 48 Specifications 50 Terms of reference ( ToR ) 50 Acquisition planning 51 Annual Procurement plans 51 Summary of the Procurement planning process 53 Timelines of the Procurement planning and implementation process for field offices 61 Requisitions 66 Lead times 67 Entry 67 Approval 69 Standardization 70 Policies and Procedures Manual Procurement Procedures Procurement Funding requirements 70 UNFPA-specific topics 70 Goods and services requiring headquarters authorization for Procurement 70 Requirements regarding specific needs 71 Other reproductive health commodities, pharmaceuticals and medical devices, medical equipment.

4 In vitro diagnostic products and lubricants (not covered by UNFPA LTAs) 71 Procurement of Vehicles 73 Security in field offices and headquarters business units 76 5. SOURCING 77 Sourcing of suppliers 77 Market research 77 Advertisement 77 Advertisement of business opportunity 78 Request for expression of interest ( REoI ) 78 Request for information ( RfI ) 79 Pre-qualification of suppliers 79 UNFPA-specific topics 80 6. SOLICITATION 81 Overview 81 Types of competition 82 Open international competition 83 Limited competition 83 Solicitation methods 84 Informal methods of solicitation (under USD 100,000): 85 Shopping (under USD 5,000, under USD 10,000 for headquarters business units and regional offices) 85 Request for quotations (RFQ) (USD 5,000 (USD 10,000 for headquarters business units and regional offices) and below USD 100,000) 85 Formal methods of solicitation (USD 100,000 and above) 87 Policies and Procedures Manual Procurement Procedures Procurement Invitation to bid 87 Request for proposal (RFP)

5 89 Solicitation of offers against existing UNFPA LTAs 91 Fixed prices versus ceiling prices LTAs 91 Solicitation of offers by country offices against PSB LTAs 94 Solicitations against existing United Nations system LTAs 94 Budget range 95 Nominal fees for costs of solicitation 95 Solicitation documents 96 Preparation of solicitation documents 96 Types of solicitation documents 96 Components of solicitation documents 96 Invitation of suppliers 103 Approval and issuance of solicitation documents 103 Pre-clearance by PSB for solicitations exceeding USD 100,000 103 Pre-clearance by ITSO for all solicitations related to information technology systems and solutions 103 Pre-clearance by UNFPA s Media and Communications Branch ( MCB ) for all solicitations related to UNFPA publications 104 Pre-clearance by FASB for all solicitations related to constructions, renovation and vehicles 104 Pre-clearance by OSC of solicitations for all security related equipment (including communication equipment)

6 , goods and services 104 Solicitation of offers in situations of direct contracting 105 Communication with suppliers 105 Queries from suppliers, pre-bid conference and site inspection 105 Amendments to solicitation documents 107 Exceptions to formal methods of solicitation 107 Emergencies 112 E- Procurement system 112 Policies and Procedures Manual Procurement Procedures Procurement UNFPA-specific topics 112 7. MANAGEMENT OF SUBMISSIONS 117 Receipt and safeguarding of submissions 117 Submissions: 117 Electronic submissions 117 Mail or by hand submissions 117 Authorized submission manners 118 Safeguarding of submissions 119 Modification and withdrawal of submissions 121 Modification of submissions 121 Withdrawal of submissions 122 Unsolicited offers Limited competition 122 Opening and recording of submissions 123 Opening of offers 123 Bid opening panel 123 Opening of quotations - RFQ 124 Opening of bids - ITB 124 Opening of proposals RFP 125 Opening of proposals secondary bidding 127 Rejection of submissions 127 UNFPA-specific topics 128 8.

7 EVALUATION OF SUBMISSIONS 129 Overview 129 Evaluation committees 130 Evaluation criteria 132 Formal criteria 132 Technical and qualification criteria 133 Financial criteria 134 Evaluation methodology 135 Policies and Procedures Manual Procurement Procedures Procurement Selection and award 135 Material deviation 136 Evaluation methods 137 Lowest priced, most technically acceptable offer methodology (shopping and RFQ) 138 Lowest priced, substantially compliant offer methodology (ITB) 139 Cumulative analysis methodology (RFP) 141 Preliminary screening 143 Commercial (financial) evaluation 143 Technical evaluation 145 Technical compliance evaluation 145 Supplier qualification 146 Further aspects of evaluation 147 Discussion with suppliers 147 Clarifications from suppliers 147 Complaints 148 Modification of offers 149 Negotiations 149 Best and final offer (BAFO) 152 BAFO when dealing with RFPs 152 BAFO when dealing with ITBs 153 Recommendation 153 UNFPA-specific topics 154 9.

8 Procurement PROCESS REVIEW AND DECISIONS 155 Organization of Procurement review 155 Preparation of submission for review and award 155 Terms of reference 157 Membership/composition/minimum training requirements 157 Composition of local contracts review committee (LCRC) 157 Composition of contracts review committee ( CRC ) 158 Policies and Procedures Manual Procurement Procedures Procurement Conflict of interest 160 Minimum training requirements for newly appointed CRC members 160 Organization of work/schedule 160 Schedule of LCRC 160 Schedule of CRC 160 Scope of review 161 Scope of review LCRC 161 Scope of review CRC 162 Matters outside the scope of review of the LCRC/CRC 163 Submissions to review 163 Submission of proposals LCRC 163 Submission of proposals CRC 164 Decisions/recommendations 165 LCRC 165 CRC 165 Minutes/review documentation and circulation 166 Review and circulation - LCRC 166 Review documentation and circulation

9 CRC 166 Emergencies and exigencies 166 Post facto submissions 166 UNFPA-specific topics 168 10. awards 169 Award and finalization 169 Identification of the winning offer 169 Suppliers with pending claims, disputes and contentious issues 169 Award 170 Supplier notification, debriefing and protest 170 Supplier not awarded 170 Posting of awarded contracts 171 Policies and Procedures Manual Procurement Procedures Procurement Bid protest Procedures 171 UNFPA-specific topics 172 11. CONTRACTUAL INSTRUMENTS 173 Overview 173 Financial approvals and thresholds 174 Communication with suppliers at the stage of establishing the contract 174 Standard contract elements 175 General Conditions of Contract 175 Taxes and duties 176 Freight 177 Technical specifications/terms of reference 177 Signature and issuance 177 Purchase orders 177 Approval 178 Commitment of funds 179 Dispatch of purchase order 179 Vendor acceptance 179 Amendment/revision 179 Payment terms and advance payments 180 Summary of Atlas function in issuing and managing the Purchase Order and responsibilities 180 Long-term agreements (LTAs)

10 184 Works and construction contracts 189 Contract for professional services 189 Legal instruments further to the use of shopping 190 UNFPA-specific topics 191 12. Procurement AND LOGISTICS 192 Overview 192 Logistics planning process, lead time and calculator 192 Order Tracking System ( OTS ) 194 Policies and Procedures Manual Procurem