UNITED NATIONS PROCUREMENT MANUAL

1 UNITED NATIONS PROCUREMENT MANUAL DEPARTMENT OF OPERATIONAL SUPPORT OFFICE OF SUPPLY CHAIN MANAGEMENT PROCUREMENT DIVISION REF. NO.: 30 JUNE 2020 UNITED NATIONS PROCUREMENT MANUAL 1 Preface The PROCUREMENT MANUAL details the UN Secretariat s (UN) PROCUREMENT procedures and processes and provides further guidance for carrying out PROCUREMENT activities for the UN effectively and efficiently in compliance with the UN s Financial Regulations and Rules, and other applicable administrative issuances, such as the Review Committee on Contracts ST/AI (ST/AI/2011/8). This document is available online at It has been published in electronic format to limit the use of paper, ink, and transport.

2 The PROCUREMENT Division in the Office of Supply Chain Management, Department of Operational Support will update this MANUAL from time to time. UNITED NATIONS PROCUREMENT MANUAL 2 Table of Contents Preface ..1 1. Introduction .. 10 Purpose, Application and Structure .. 10 Update and Maintenance .. 10 PROCUREMENT Framework .. 10 PROCUREMENT Principles and Client Centricity .. 11 Best Value for Money .. 11 Fairness, Integrity and Transparency .. 12 Effective International Competition .. 12 Best Interest of the UNITED NATIONS .. 13 Client Centricity .. 13 Ethical Standards .. 13 Standards of Conduct .. 13 Conflict of Interest.

3 14 Ethical Behavior of Vendors .. 16 2. Organization of PROCUREMENT .. 17 Overview of the PROCUREMENT Process .. 17 Definition of PROCUREMENT .. 17 Outline of the PROCUREMENT Process .. 17 Category Management .. 18 Responsibilities of Organizational Units and Key Roles for the PROCUREMENT Process .. 19 PROCUREMENT Official .. 20 Requisitioner .. 21 PROCUREMENT Approving Authority .. 22 PROCUREMENT Authority .. 22 Delegation of Authority .. 22 Exercise of 23 Procuring Agent .. 23 Local PROCUREMENT Authority (LPA) .. 23 Delegation for Amendments .. 26 Increase of the NTE Subsequent to Review Committee (20% Rule) .. 26 Extension of Duration of a Contract Subsequent Review Committee (8-Month Rule).

4 27 Contract Awards .. 27 UNITED NATIONS PROCUREMENT MANUAL 3 Calculation of Cumulative Amounts for Assessment of Required DOA .. 27 Accountability .. 27 Segregation of Duties .. 28 3. Vendor Registration and Management .. 30 Vendor Registration .. 30 Registration in UNGM .. 30 Synchronization in UMOJA .. 31 Overview of Registration Levels .. 31 Criteria for Vendor Registration .. 32 Vendor Management .. 35 Evaluation of Vendor Registration Applications .. 35 Vendor Registration Maintenance and Updating of Vendor 35 Updating of Vendor Information .. 36 Vendor Review Committee .. 36 Review by the Vendor Review Committee.

5 37 Vendor Sanctions .. 38 Electronic Special Approval Committee (e-SAC) .. 39 4. Demand Planning, Acquisition Planning, PROCUREMENT Strategy and Requirements Definition .. 41 Demand Planning and Acquisition Planning .. 41 PROCUREMENT Strategy .. 42 PROCUREMENT Planning and Source Selection Plan .. 42 Requirements Definition .. 44 The Purpose of Requirements Definition .. 45 Characteristics of Well-Defined Requirements .. 46 Technical Specifications .. 47 Terms of Reference (TOR) .. 47 Statement of Work (SOW) .. 48 Shopping Cart .. 48 5. Sourcing .. 49 Sourcing of Vendors .. 49 Market Research .. 49 Advertisement for Business Opportunities.

6 50 Request for Information (RFI) .. 51 Request for Expression of Interest (REOI) .. 51 Pre-Qualification of Vendors .. 52 UNITED NATIONS PROCUREMENT MANUAL 4 Creation of Lists of Invitees .. 53 Approval of List of Invitees .. 53 Amendment of List of Invitees .. 53 6. Solicitation .. 55 Overview .. 55 Competition .. 55 Effective International Competition .. 55 Special Considerations for List of Invitees .. 56 Risk of Collusion .. 56 Solicitation Methods .. 56 Formal Methods and Informal Methods .. 56 Low Value Acquisition (LVA) .. 57 Request for Quotation (RFQ) .. 60 Invitation to Bid (ITB) .. 61 Request for Proposal (RFP).

7 61 Solicitation 64 Overview .. 64 Letter of Invitation .. 65 Annex A: Acknowledgment Letter .. 67 Annex B: Scope of Work/Requirements .. 67 Annex C: Special Instructions and Evaluation Criteria .. 68 Evaluation Criteria ( , Part of Annex C) .. 72 Requisite Forms/Schedules for Bidders .. 76 Bid/Advance Payment/Performance Security Form and Requirements .. 76 Form of Contract and UN General Conditions of Contract .. 78 Invitation of Vendors .. 78 Amendments to Solicitation Documents .. 79 Cancellation of the Solicitation Process .. 80 Direct Contracting Under Sole Source .. 80 Solicitation of Offers Against 81 Communication with Vendors.

8 81 Exceptions to Formal Methods of Solicitation .. 82 No Competitive Marketplace .. 82 Fixed Prices or Rates .. 82 Proprietary Product or Service .. 82 UNITED NATIONS PROCUREMENT MANUAL 5 Previous Determination or need for Standardization .. 83 Cooperation .. 83 Identical Requirements .. 84 No Satisfactory Results from Previous Formal Methods of Solicitation .. 84 Real Estate .. 84 Exigency .. 85 Services Cannot Be Evaluated Objectively .. 85 Formal Methods Will Not Produce Satisfactory Results .. 85 Below Monetary Threshold .. 86 7. Management of Submissions .. 87 Tender Opening Committee .. 87 Receipt and Safeguarding of Submissions.

9 87 Receipt and Safeguarding of Submissions Delivered by Hand, Courier or Mail .. 88 Receipt and Safeguarding of Facsimile Submissions .. 88 Receipt and Safeguarding of E-tendering or E-mail Submissions .. 88 Modification of Submissions .. 89 Withdrawal of Submissions .. 89 Modification or Withdrawal of Submissions After Closing .. 90 Late Submissions .. 90 Unsolicited Submissions .. 91 Opening and Recording of Submissions .. 91 Attendance at Tender Openings .. 91 Opening of Bids (ITBs) .. 92 Opening of Proposals (RFPs).. 92 Rejection of Submissions .. 93 Post-Opening of Bids .. 93 Post-Opening of Proposals .. 93 Other Post-Opening Procedures.

10 93 8. Evaluation of Submissions .. 95 Overview .. 95 Evaluation Committees .. 95 Evaluation Criteria .. 97 Evaluation Methodologies .. 97 Lowest Priced, Technically Acceptable Offer .. 97 Lowest Priced, Substantially Conforming Bid .. 98 UNITED NATIONS PROCUREMENT MANUAL 6 Cumulative/Weighted Analysis .. 98 Preliminary Screening .. 99 Technical Evaluation .. 100 Financial Evaluation .. 100 Further Aspects of Evaluation .. 102 Clarifications from Vendors .. 102 Material Deviations .. 103 Apparent Errors in Price .. 104 Abnormally Low Offers or Submissions .. 104 Evaluation by Lots .. 105 Review of Offers Received in Situations of Direct Contracting or Sole Sourcing.