Transcription of PROCUREMENT MANUAL
1 PROCUREMENT MANUAL Revision 1 April, 2019 PROCUREMENT Group Copyright 2019 All rights reserved. The reproduction of any materials from this publication must be accompanied by a reference to the title and a website location of this document. This publication may be reproduced for personal use but may not otherwise be reproduced or, stored in a retrieval system or transmitted, in any form or by any means, electronic, photocopying, recording or otherwise, without prior written permission of UNOPS. Preface The PROCUREMENT MANUAL details UNOPS PROCUREMENT instructions, procedures and processes and provides further guidance for carrying out PROCUREMENT activities for or on behalf of UNOPS effectively and efficiently in compliance with UNOPS Financial Regulations and Rules, and other applicable UNOPS legislative instruments.
2 This document is available online at and on the UNOPS internal intranet It has been published in electronic format to limit the use of paper, ink, and transport emissions to further support UNOPS leadership role in advancing sustainable practices. Once this document has been downloaded and/or printed, it is no longer a valid policy document and must only be used for reference purposes. The valid policy document will always be the version available on Comments and questions This PROCUREMENT MANUAL will be updated regularly, to ensure that it remains relevant to UNOPS activities and requirements and up to date with best practices in public PROCUREMENT . If you have comments or suggestions for improvement, please contact the PROCUREMENT Group (PG), UNOPS HQ, through email: Table of Contents Preface .. 3 What s new in Revision .. 9 1 Introduction.
3 12 Purpose, application and structure .. 12 Purpose .. 12 Applicability .. 12 PROCUREMENT MANUAL structure .. 12 Update and maintenance .. 13 Legislative framework .. 13 Superseding effect .. 13 PROCUREMENT principles .. 13 Best value for money .. 14 Fairness, integrity and transparency .. 14 Effective competition .. 15 Best interest of UNOPS and its partners .. 16 Potential conflicts among the principles .. 16 Ethical standards .. 16 General Standards of Conduct .. 17 Ethics versus Rules .. 17 Independence .. 17 Accountability .. 17 Obligation to Report Suspected Wrongdoing / Whistleblower Protection .. 18 Post-Service Restrictions .. 18 Ethics Office .. 18 Ethics in dealing with 18 Conflicts of interest .. 19 Gifts and hospitality .. 19 Outside Activities .. 19 Obligation to disclose any conflict of interest.
4 20 Ethical behaviour of suppliers .. 20 DRiVE 20 Proscribed practices by suppliers and vendor sanctions .. 21 Supplier conflict of interest .. 21 2 Organization of PROCUREMENT .. 24 Overview of the PROCUREMENT 24 Definition of PROCUREMENT .. 24 Outline of the PROCUREMENT process .. 25 Responsibilities of organizational units and key roles in PROCUREMENT processes .. 25 Project manager/Requisitioner .. 26 PROCUREMENT official .. 26 PROCUREMENT authority .. 27 Responsibilities of the PROCUREMENT authority .. 27 Delegation of authority (DOA) .. 27 Cumulative amounts .. 28 LTAs and DOA .. 29 PROCUREMENT 29 Accountability .. 30 Segregation of duties .. 30 3 Supplier registration and management .. 33 Supplier registration .. 33 Supplier management .. 34 Vendor ineligibility .. 34 4 PROCUREMENT strategy, planning and requirements definition.
5 37 PROCUREMENT strategy .. 37 PROCUREMENT planning .. 37 Requirements definition .. 39 The purpose of requirements definition .. 39 Characteristics of well-defined requirements .. 40 Requirements definition for goods and services .. 41 Technical specifications .. 41 Terms of reference (TOR) .. 41 Statement of work (SOW) .. 41 Requirements definition for works .. 41 TOR for design and other technical consultancy services for works .. 42 Design documents for works .. 42 Employer s Requirements for Design and Build Construction Contracts .. 43 Requisitions .. 43 Standardization .. 43 5 Sourcing .. 46 Sourcing of vendors .. 46 Market research .. 46 External sources .. 46 Internal sources .. 47 Advertisement of business 47 Request for information .. 47 Request for expression of interest (EOI) .. 48 Pre-qualification of vendors.
6 48 Creation of short lists of suppliers .. 49 Supplier selection for short list .. 49 Approval of short list .. 50 6 Solicitation .. 53 Overview .. 53 Types of competition .. 53 Open international competition and open national/regional competition .. 53 Limited international competition and limited national/regional 54 Sole sourcing or direct contracting .. 54 Solicitation methods .. 55 Shopping .. 55 Request for quotation .. 55 Invitation to bid .. 56 Request for proposal .. 56 Selection of solicitation method for works .. 57 Alternative procedures for the PROCUREMENT of innovation .. 58 Solicitation documents .. 59 Components of solicitation documents .. 60 Letter of invitation .. 60 Particulars and instructions to bidders .. 60 Evaluation criteria .. 67 Formal and eligibility criteria .. 68 Qualification and technical criteria.
7 68 Financial criteria .. 70 Evaluation criteria for joint ventures .. 71 Schedule of requirements .. 72 Returnable bidding forms/schedules .. 72 Contractual information .. 73 Invitation of vendors .. 73 Approval of solicitation documents .. 74 Distribution of solicitation documents .. 74 Confidentiality of the short list .. 74 Amendments to solicitation documents .. 74 Cancellation of the solicitation process .. 74 Solicitation of offers in situations of direct contracting under sole sourcing .. 75 Solicitation of offers against 75 Communication with vendors .. 75 Exceptions to competitive tendering or formal methods of solicitation .. 77 Exceptions .. 77 Pre-selection .. 80 Emergencies .. 81 E-tendering .. 81 7 Management of submissions .. 85 Receipt and safeguarding of submissions .. 85 Modification and withdrawal of submissions.
8 85 Modification of submissions .. 85 Withdrawal of submissions .. 85 Late and unsolicited submissions .. 86 Late offers .. 86 Unsolicited offers .. 86 Opening and recording of submissions .. 87 Bid-opening panel .. 87 Opening of quotations (RFQ) .. 88 Opening of bids (ITB) .. 88 Opening of proposals (RFP) .. 88 Rejection of submissions .. 89 Post-opening .. 89 8 Evaluation of submissions .. 92 Overview .. 92 Evaluation team .. 92 Evaluation criteria .. 93 Evaluation methodology .. 93 Lowest priced, most technically acceptable offer .. 94 Lowest priced, substantially compliant offer .. 94 Cumulative analysis .. 94 Preliminary screening .. 95 Technical evaluation .. 96 Financial evaluation .. 96 Justification of reasonableness of price .. 97 Further aspects of 98 Deviations .. 98 Material deviations .. 98 Minor informalities or irregularities in bids.
9 98 Apparent clerical mistakes .. 98 Apparent errors in price .. 99 Abnormally low bids/proposals .. 99 Missing documents .. 99 Clarifications from vendors .. 99 Evaluation of lots .. 100 Review of offers received in situations of direct contracting or sole sourcing .. 100 Complaints and representations .. 100 Indications of potential proscribed practices .. 100 Best and final offer (BAFO) .. 101 Negotiations .. 102 Recommendation .. 103 Evaluation report .. 103 Background checks .. 104 Suppliers with pending claims, disputes and contentious issues .. 105 9 PROCUREMENT process review .. 107 Organization of PROCUREMENT review .. 107 Membership/composition of CPC .. 107 Organization of work/schedule of CPC .. 107 Scope of review of CPC .. 107 Monetary thresholds for CPC review .. 109 Preparation of submission for review and award.
10 109 CPC recommendations and decisions .. 109 Emergencies and exigencies .. 110 Post facto and retroactive .. 110 10 113 Award and finalization .. 113 Awards with contingency sum .. 113 Vendor notification, debriefing and protest .. 114 Posting of awarded contracts .. 114 Protest procedures .. 114 Debriefing procedures .. 115 11 Contract finalization and issuance and contractual instruments .. 117 Contract finalization and issuance .. 117 Contract preparation .. 117 Letter of Intent .. 117 Contract discussions with vendors .. 118 Advance payments .. 118 Performance securities .. 119 Review and handling of bank guarantees and securities .. 120 Signature, issuance and documentation .. 121 Standard contract elements .. 122 Instrument of agreement .. 122 Special Conditions .. 123 UNOPS General Conditions of Contract (GCC) .. 123 Technical specifications, TOR, SOW, design documents and schedules for works 123 Types of contractual instruments.
