Sop Dec 2009 Version

United Nations Development Programme

Advisory Committee on Procurement (ACP)

UNDP LEARNING SERIES, December 2009

STANDARD OPERATING PRACTICES

Contents

Introduction – A journey into ACP 1 1

Advisory Committee on Procurement (ACP)

1.1

Scope of Review 3 Roles and Responsibilities 5-7 i. Requestor 5

1.2

ii. ACP/RACP Secretary 5 iii. ACP/RACP Members 6 iv. ACP/RACP Chair 6 v. CPO/RCPO 7 1.3 1.4

ACP Review Cycle 7 Types of ACP Review 8 i. ACP Review 8 ii. Direct Review 8

1.5

Types of Submissions 8-10 i. Competitive Process 8 ii. Direct Contracting 8 iii. Post-Facto

9 iv. Ex-Ante : Procurement Road Map 9 v. Consulting Fee 10 2

Case submission to the ACP – A walk through 11-17

3

Checklist 18-22

3.1

ACP Submission Checklist 18 Quality Assurance Checklist 21 Value for Money Checklist 22

3.2 3.3 4

Overview of ACP Website 23

ANNEXURES Abbreviations UNDP Learning Series, Advisory Committee on Procurement (ACP), December 2009 For further information, please contact UNDP ACP Office, One UN Plaza, New York, NY 10017 Email : [email protected]

Introduction – a journey into the ACP Mission – To innovatively design and develop an oversight mechanism that ensures compliance with procurement guidelines and mitigates UNDP’s Procurement risks. Why Procurement Oversight ? Procurement has become an essential part of programme delivery (nearly 70% of the total delivery) in UNDP and has grown nearly 3 times in the last 5 years. In 2008, UNDP undertook procurement worth USD 2.6 billion. Additionally, the UNDP Procurement model is very decentralized compared to other UN Agencies and has increased in complexity as the major share is for procurement of services. There are 166 business units that undertake procurement of goods, civil works and services. What is the ACP ? ACP stands for Advisory Committee on Procurement and has been established at Headquarters and in the regional bureau (RACP) to review and render advice to the Chief Procurement Officer (CPO)/ Regional Chief Procurement Officer (RCPO), as the case may be, on UNDP’s procurement transactions. ACP/RACP ensures that all contracts comply with Procurement Guidelines and mitigates UNDP Procurement risks. The RCPOs have been given procurement delegation up to USD 1 Million.

Regionalization of the ACP In order to mitigate UNDP Procurement risks and ensure compliance with procurement regulations and rules, five (5) Regional Advisory Committee on Procurement (RACP) have been set up at the regional centers in Bangkok, Bratislava, Cairo, Johannesburg and Panama. This support is expected to reduce the response time and encourage closer participation of the Country Office to review the submitted request. Due to these RACPs, Country Office (CO) can now access the services in the same time zone. Being on the ground and having better knowledge of the CO’s procurement capacity, the RACPs can effectively mitigate procurement risks. What value is added by ACP/RACP in the Procurement cycle? The ACP/RACP oversees the following areas : •

Compliance a) Promote competition and integrity b) Enhance accountability c) Increase transparency and ethical behavior

d) Achieve value for money ACP/ LEARNING GUIDE

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a) b) c) d) e) f) g) h)

•

Risk Assessment

Unbiased Specifications Technical and Financial capacity of Vendor Procurement capacity of the business unit Performance and quality requirements Shipping terms References Contract Management Terms & Conditions (Type of Contract)

How can I do a submission to the ACP/RACP for review ? All submissions to the ACP/RACP should be done online through the ACP Online website ( http://acp-online.undp.org ) What other roles does the ACP/RACP play in UNDP Procurement ? In addition, to reviewing cases submitted by the Country Offices and Business Units, the ACP undertakes the following tasks : •

•

•

• • •

Procurement Oversight a) Update of Procurement Dashboard b) Follow up with the Country Offices on implementation of the conditions subject to which their cases were approved Delegation of Procurement Authority a) Analyze procurement volume and capacity of CO for recommending increased delegation f authority ; b) Provide advise to the CPO on specific delegations. Capacity Development a) Organize training for CAP Members, Head of Units in HQ b) Conduction of Regional Procurement Workshop c) Development of On-Line training material (risk assessment, CAP Orientation, ACP Orientation ) Knowledge Management a) Sharing of Lesson learnt from ACP/RACP Meetings Maintaining Roster of Roving Procurement Officers a) Update list of Roving Procurement Officer for use of Country offices that require their services Monitoring Procurement Activities a) Tracking all contract that are in excess of the Country Offices delegated procurement authority and which have not acquired CPO approval.

ocument is to explain in detail, all the elements of the ACP and provide practical information and guidance to procurement practitioners to assist in t

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ACP/ LEARNING GUIDE

Advisory Committee on Procurement 1 (ACP) What kind of cases are reviewed by the ACP ? 1.1Scope of the Review ACP reviews cases which relate to the following procurement functions: a) Proposed contract ACP HQ : • Reviews all cases exceeding USD 100,000 for Business Units in HQ and out posted HQ Units • Proposed contracts submitted to the Regional ACP valued in excess of USD 1 Million, • Proposed contracts which involve commitments to a Supplier with respect to a single requisition for a specific project/purpose, or a series of requisitions relating to the same specific project/purpose, received and processed in a calendar year – beginning January 1 and ending December 31 – valued at USD 100,000 or more for Business Units in HQ and out posted HQ Units • Proposed contracts or series of related contracts, which generate income of USD 10,000 or more (i.e., revenue through the sale of proprietary information) in a calendar year for Business Units in HQ and out posted HQ Units • Proposed contracts of any value which could reasonably lead to a series of related contracts the total of which may be USD 100,000 or more for Business Units in HQ and out posted HQ Units • Proposed contracts valued at USD 30,000 or more to be awarded under Financial Rule 121.05 (exception to competitive process), including those cases where the number of responsive offers is less than three for Business Units in HQ and out posted HQ Units Regional ACPs : • Reviews all cases exceeding USD 100,000 and upto USD 1 Million for all Country Offices in their respective regions • Proposed contracts which involve commitments to a Supplier with respect to a single requisition for a specific project/purpose, or a series of requisitions relating to the same specific project/purpose, received and processed in a

• • • •

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b)

•

•

calendar year – beginning January 1 and ending December 31 – valued at USD 100,000 or more Proposed contracts or series of related contracts, which generate income of USD 10,000 or more (i.e., revenue through the sale of proprietary information) in a calendar year. Proposed contracts submitted to the Regional ACP valued in excess of the Regional CPO’s delegated approval authority Proposed contracts of any value which could reasonably lead to a series of related contracts the total of which may be USD 100,000 or more; Proposed contracts valued at USD 30,000 or more to be awarded under Financial Rule 121.05 (exception to competitive process), including those cases where the number of responsive offers is less than three. ACP/ LEARNING GUIDE

Amendment Amendment, modification or renewal of a contract previously reviewed by the ACP, where the contract amendment or a series of amendments in the aggregate either increases the total contract amount by 20 percent or more, or valued at USD 100,000, whichever is less. Amendment, modification or renewal of a contract not previously submitted to the ACP, where the revised total contract amount is valued at USD 100,000 or more.

c) Disposal and write-off of Assets • Cases that lead to the disposal, write-off or transfer of goods and/or property with an asset value USD 30,000 or more • Disposal by sale or donation of supplies, equipment or other property which are in surplus to the operating requirements of the Country Office or unserviceable through obsolescence or normal wear and tear • Write-off of equipment, supplies and other property lost, damaged or stolen • Disposal of project equipment, including equipment obtained for NEX projects for which title of ownership is still maintained by UNDP • All vehicle accidents involving UNDP and project vehicles where gross negligence is not the cause d) Individual contractor • Procurement of services as related to individual consultants (i.e. SSA, SC, RLA) in a contract amount valued at USD 100,000 or more or in aggregate exceeding USD 100,000 or more e) Ex-Ante Review – • To mitigate UNDP risks, ACP in cooperation with subject expert, Legal Support Office and Procurement Support Office, reviews all cases which are complex and exceeds contract amounts of USD 1 million . As an outcome, the Committee provides a Procurement Roadmap. This is not a mandatory review. This approach helps in assessing the risks and developing the procurement road map to mitigate

them. This also minimizes the chance of rejects by ACP because of the collective wisdom that has been used upfront before staring the procurement journey.

ACP/ LEARNING GUIDE

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1.1Roles and Responsibilities

Who is responsible for what in the ACP review Cycle ?

Requesto r

d in the SOP. CAP Minutes implies RR’s prior responsibility that the project is included in Annual Work Plan, the budget is

nner

ACP/RACP Secretary

required information has been provided by the Requestor for ACP review Requestor, records the correspondence on ACP Online System. In such a situation, ACP Secretariat will send the o help the members arrive at a decision (quality control prior to ACP Meeting) equired tted to ACP Secretariat by Friday 3pm (EST) for the following ACP Meeting scheduled for Wednesday

ion for ACP Meeting gned off by all the Members in each meeting st of Individuals and Entities with Association to Terrorist Organizations nor in the List of Vendors Suspended o

ing and that were sent back to the Requestor for additional information

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ACP/ LEARNING GUIDE

ACP/RACP Member

by reviewing assigned submissions online in advance and participating actively in the dialogue during the meetin bjectivity and confidentiality in the course of reviewing the case and giving recommendations procurement action is in accordance with UNDP Financial Regulations and Rules, procedures and instructions process to ensure that it is fair, competitive, transparent and provides the best value for money legal implications of the proposed contract ocess including the environmental impact ve offer is being sought for disposal of goods, where applicable . For detailed guidelines please refer UNDP Asse

nsure that there is no negligence. Ensuring that appropriate funds are available to cover the cost of the propose ty for the ACP Meeting to the ACP Secretariat there is a conflict of interest Meeting per month

ACP/RACP Chair

with rules and mitigating UNDP risks as far as possible ;

, quality control and risk mitigation throughout the process g s based decision making process during the ACP Meeting; parent process during ACP Meeting submissions, sending ACP recommendation to CPO/RCPO (as the case may be) for approval, rejection or withhold

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ACP/ LEARNING GUIDE

CPO/RCP O process n the procurement

epared by ACP

has the authority to approve, reject or withhold the proposed contracts that have been submitted to ACP. The C 1.1ACP Review Cycle • All cases to be reviewed by the ACP should be submitted through the ACP Online website (http://acp-online.undp.org) .Country Offices/Business Units should create their submission in the corresponding regions where they are situated. The ACP Online, covers ACP HQ, RBA, RBAP, RBAS, RBEC and RBLAC. • The Regional CPOs have been given a delegation of USD 1 Million. All cases above this amount should be submitted in the respective regions in ACP Online and after review of the case by the RACP Chair, the case would be escalated to ACP HQ.

•

Additional information on the Regional ACPs and Increased Delegation of Procurement Authority is available at the ACP website

REQUESTOR SECRETARIAT ACP MEETING CPO ACP Based CPO Requestor Members reviews onMEMBER the submits the ACP review uploads prepares ACP recommendations, the the recommendations the case the notes ACP review to ACP andnotes the(case Chair ACPSecretary CHAIR recommendations prepare summary) and Secretariat forwards Approves/Withholds/ forand thethe sends by ACP case and on Friday, Meeting itACP they to the 3pm online can Rejects on ACP CPO EST. by Members for theApproval/ by add Thursday. Wednesday. Monday. Withholding/ case. their comments TheACP Rejection. CPOMeeting online action The or is takes done via Chair by forwards the email by place every Friday. Wednesday Wednesday. case toatthe 1pm. CPO by Monday.

(http://practices.undp.org/management/acp ) ACP/ LEARNING GUIDE

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1.4 Types of ACP Review

• ACP Review All procurement contracts valued in excess of delegated Procurement authority, usually USD 100,000 require a ACP review. The case is submitted to the ACP online, assigned to a ACP meeting and goes through the entire ACP review cycle. The review and comments are provided to the CO by 8 working days, if all the required documentation is provided to the ACP in a comprehensive and timely manner. • Direct Review To expedite the Procurement process for contracts on a exceptional basis (i.e. crisis or emergency procurement situations ), valued at USD 100,000 or more, the approval of the CPO can be sought directly without prior review of the ACP. During a direct review, the case is reviewed by the Chair of the ACP and recommendations are sent to the CPO for action.



Emergency due to Poor Planning cannot be classified as EXIGENCY

1.1Types of submission to the ACP What are the types of cases that can be submitted to the ACP for review ?

COMPETITIVE PROCESS

The “Competitive Process” submissions refers to the cases that are a result of a competitive bidding exercise undertaken by the Country Office/ Business Unit by using the RFQ/ITB/RFP solicitation process. If the competitive process resulted in a minimum of 3 technically responsive offers then the threshold of USD 100,000 or increased delegation would apply. However, if the competitive process results in less than 3 bids, then it is considered a technical waiver and thus the threshold of USD 30,000 would apply irrespective of the increased delegations received by the procuring office. DIRECT CONTRACTING

The “Direct Contracting” submission refers to cases where the proposed contractor was selected without undergoing a competitive bidding process. In the case of direct contracting, a threshold of USD 30,000 applies to all requesting units/Country Offices irrespective of their increased delegation thresholds. Direct Contracting may be used only under a limited number of exceptional circumstances as allowed under UNDP Financial Rules 121.05 (a). When seeking a Direct Contract, justification must be provided describing the reasons which make it impossible to undertake a standard competitive bidding exercise. ACP/ LEARNING 8 Whenever a Direct Contracting method is used, it remains GUIDE necessary for the directly selected supplier/service provider to submit a proposal in accordance with the established specifications or TOR. Submitted documentation must be reviewed by a qualified bid review panel organized in accordance with UNDP policy. Refer to the ACP Submission Checklist for detailed list of documents/information to be provided to the ACP. POST-FACTO

The use of post facto submission is greatly discouraged as it is an indicator of a flawed process. Prior clearance has to be taken from the Regional Director before a requesting unit can submit a post facto submission to the ACP. Post facto submissions should be done only in emergency/crisis situation, where curative operations needs to be undertaken to diminish the risk to health or life through emergency interventions, deployment of a peace keeping or humanitarian support followed by recovery , rehabilitation , reconstruction and development. In such situations with a need for quick action and immediate results, deviations from normal procurement rules may be permitted. The ACP Submission should include the performance report of the Supplier, the approval from the Regional Director, CAP minutes, Evaluation Reports and documents which clearly indicate the process undertaken to source the Supplier. EX-ANTE : PROCUREMENT ROAD MAP

The purpose of Ex-Ante submissions is to obtain upfront approval from the CPO on the Procurement Road map for all “significant” procurement to be undertaken by the Business unit (BU). Additionally it minimizes the chances of rejection during an ACP review. However, Ex-Ante is not mandatory and is entirely at the discretion of the Country Office/Business Unit. Significant procurement includes : i. Procurement contract above USD 1 Million ii. Categories of supplies/services which represent the majority of the BU’s spending iii. Complex in terms of their demand or characteristics iv. Individually have a significant impact on BU’s operations The business units can seek the advice of the Procurement Support Office (PSO) in drafting the Procurement Road Map and submit the case for review and approval of the ACP through the ACP Online website. Upon submission, the case is reviewed by the ACP Members, PSO, Legal Support Office (LSO) and External experts (where required ) and finalized for the CPO’s decision based on : • • 9

Risk Identification & Mitigation Measures Quality Assurance • Compliance with policies and procedures ACP/ LEARNING • Contract Management GUIDE CONSULTANCY FEE APPROVAL

The purpose of Consultancy Fee submissions is to obtain approval for Consultants whose daily rate exceeds USD 750. The submitting Business Unit should provide evidences of the due diligences conducted to justify the proposed fee level, including but not limited to demonstrating the correlation between the assignment complexity and proposed fee level, market trends and consultant fee history. Currently the Consultancy fee approvals are being handled by Procurement Support Office (PSO). Upon finalization of the new SSA Guidelines, this function would be transferred to the ACP.

ON THE DRAWING BOARD The current version of the ACP Online, only has two types of submissions i.e. Competitive Process and Direct Contracting.

The ACP Online template would be updated at a later stage to cover Post Facto, Ex-Ante and Consulting fee submissions explicitly. Meanwhile, the

ACP/ LEARNING GUIDE

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ACP Submission – A walk through

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Like the saying goes “The Devil is in the details “. Small things in plans and schemes that are often overlooked can cause a serious problem later on. This section of the SOP walks you through ways of preparing a good ACP submission. What am I supposed to write under each section of the ACP Submission? Please note that reference to each section of the ACP submission is for general guidance and the numbering system need not conform with the numbering system in the ACP Online.

Backgroun

Please provide the following information : d OJECT ID & TITLE plementing Partner ject Objectives ionale/Scope pected Project Outcome ablish the link between Project & Proposed Contractor pected Results

e : The background information should be concise and should briefly describe all the information requested ove.

Amendment , Variation in Budget, Change in Scope of Works/TOR) s

hen provide information on all previous Contracts awarded to the Contractor. The dates and amounts of all

ACP/ LEARNING 1 GUIDE of Contract/Amendment the1 Purpose Contractor. Attach a detailed TOR

ained from which clearly outlines deliverables and outputs of goods with technical specifications and quantity for each item and the INCOTERM used for the quotation. m the Contractor. Attach a detailed TOR which clearly outlines deliverables and outputs be undertaken for each location. Attach detailed drawings, technical specifications and BOQ) for each civil works

Competitive Process

Bidding/Proposal

s should be tabulated with each action linked to a time frame. The table must clearly identify each component o

ion) Dates): ts

or withdrawal:

ACP/ LEARNING 1 GUIDE 2 Evaluation of Bids/ Proposals

Quality

e being procured meets specified requirements. It is imperative for the BU to demonstrate in their submissi Assurance The evaluation should clearly outline the following : Name & Country of Offerors : Dates & Venue of Bid Opening & Member’s Present: Composition of Technical Review Panel: Name of Offerors with Responsive Bids : Name of Offerors who were Rejected & Reason : Date & Venue of Financial bid Opening : e, please contact the Global Fund Unit, PSOof, Technical Copenhagen ) Summary & Financial Scores : Description of Technical and Financial Evaluation Method Used milestone payments Risk Management Matrix – especially for Civil Works Contracts and High value co

ACP/ LEARNING 1 GUIDE 3 For Money (VFM) Value

price, but also on the maximum efficiency and effectiveness of the purchase.

of soliciting offers and selecting a Contractor should:

e selection process;

ers; and

degree of realism and whose performance is expected to best meet the Business Unit’s specifications, statemen

ents

Risk Management

nment and involves a systematic identification, analysis, treatment and where appropriate, acceptance of the risk arious stages of the procurement chain :

metable, user acceptability, integrity and competence

s greater then USD 1 Million or complex services or civil works must have a risk assessment matrix wh

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ACP/ LEARNING GUIDE

What does a Risk Assessment Matrix looks like ?

This Risk Assessment Matrix below is meant to serve as a sample only and depending upon the complexity of the procurement, it may be further elaborated upon by the Business Unit. One of the typical example of civil works is listed below :

Risk Factor Limited competition due conditions in XXX (country)

Mitigation Measure to

security Widespread advertisement with regional coverage in two rounds seeking EOIs.

Incomplete Bill of Quantities (BOQs) and BOQs were prepared by one qualified scope of work Quantity Surveyor (QS) and verified by another QS prior to bidding, with price estimation High value and quality of works with Used appropriate contractors through precompressed construction schedule qualification exercise Unclear documentation and/or procedures Arranged a pre-bid conference to clarify all to new contractors aspects Total value of contract(s) in single or multiple packages exceeds the total limits on the capacity of the selected contractor as stipulated in the pre-qualification assessment;

Total aggregate value of awards kept below the limits on capacity; Verification of capacity through posqualification exercise;

Contractor running out of during the execution of works

Mobilization payments

resources

advance

and

monthly

Non-compliance with specifications and Close monitoring and supervision UNDP’s scope of work Owners Engineer shall verify the quality and quantity of work included each of the contractor’s invoices. Contractor breaching on performance Performance security obligations Delay in completion

Liquidated damages

Variation orders All works in the hands of one contractor

Contingency in the budget Limit on capacity and spread the works

Handling of transportation and materials

Responsibility of the contractor

ON THE DRAWING BOARD The current version of the ACP Online, does not have a different section for Risk Assessment. The ACP Online would be updated at a later stage to include a dedicated section for Risk Management. Meanwhile, the Business Unit should provide the Risk Management Matrix under the Quality Assurance section.

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ACP/ LEARNING GUIDE

wing permissible reasons for direct contracting. The Business Unit need to select an appropriate reason and prov e.

tity. petitively within the past 12 months and the prices and conditions offered remain competitive. within a reasonable prior period. e real property.

s that cannot be objectively evaluated

Justification for Direct Contracting

Permissible Contracting

Direct Example of Acceptable Justification

No competitive market for Where a monopoly exists; where fixed pricing by national performance or price is legislation is in effect at the time of the procurement; or available where the requirements involve proprietary product or service. Where there are only two players in the market, it is no longer a monopoly and comparison between the two suppliers/service providers should still be established. Where fixed pricing is in effect, evidence of such legislation should be documented. When proprietary product or service is being procured, it must be established why other equivalent nonproprietary product or service will not meet the requirement. Determination or need for Compatibility and consistency with existing equipment or standardization systems requires a specific brand of equipment or technology; any change in these standards will have a direct financial impact or other adverse consequences for the end users or the A cooperative agreement exists between the supplier and a UN entity Offers for identical requirements have been obtained competitively within the past 12 months and the prices and conditions offered remain competitive The proposed procurement contract for the purpose of purchasing or leasing property Genuine exigency for the requirement exists

1 6 UN

ACP/ LEARNING GUIDE

A long term agreement exists and UNDP hopes to utilize the existing agreement. Prices of goods obtained within the last year following a competitive exercise remain valid.

Selection of location is based on security concerns

This includes requirements during times of natural disaster, health epidemic, or sudden unforeseen crisis. “Genuine exigency” must refer to goods or services for which any slight delay will result in the imminent loss or endangerment of human lives or the excessive damage

Permissible Contracting

Direct Example of Acceptable Justification

to valuable properties, or will deter the delivery of basic human needs. It does not apply to urgency arising from poor planning, poor oversight or delay in receipt of funding, among other possible circumstances. Procurement of goods or services which does not meet these criteria will not be considered for an exception to the competitive process, even if the context is an early recovery programme/project. The proposed procurement Cutting-edge technology or other new methodologies are contract is for relevant in use and no possibility of comparison exists. services that cannot be objectively evaluated

ACP/ LEARNING GUIDE

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Checklists

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3.1 ACP Submission Checklist What kind of attachments should I upload into the ACP Online ? The following checklist include list of attachments which should be submitted to the ACP for review. However, please note that attachments do not substitute the text in the ACP online submission. Therefore, please fill in all the information in the relevant sections as explained in the ACP- Walk through.

A) CHECKLIST FOR GOODS ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑

Detailed Technical Specifications Short listing/ Pre-qualification Copy of RFQ (less than <100,000) Copy of ITB (>=100,000) Copy of Advertisement Bids Registration record Bid Receipt Record Bid Opening Record Evaluation Report Pre-Bid Meeting Attendance Sheet Pre-Bid Meeting Minutes with clarification on the Questions raised by the Vendors (if meeting was done) Copy of all responsive bids Technical Evaluation Report Financial Proposals of all technically qualified bids Fully Signed CAP Minutes & Declaration of Impartiality & Confidentiality Company Profile of Firm Quality Assurance Procurement Plan, if available Request from Government requesting UNDP to undertake those activities (if NEX) Project Document Annual Workplan , Results & Resources Framework (RRF) In case of Amendment, Copies of all Previous Contracts

B) CHECKLIST FOR SERVICES ☑ ☑ ☑ ☑ ☑ ☑ 1 8

☑ ☑ ☑ ☑ ☑ ☑

Terms of Reference (TOR) Request for Quotation or Request for Proposal (Including Evaluation Criteria ) Shortlisting/ Pre-Qualification Copy of Advertisement, with dates and media Bid Registration Record Bid Receipt Record ☑ Pre-Bid Meeting Attendance Sheet ACP/ LEARNING ☑ Pre-Bid Meeting Minutes with GUIDE clarification on the Questions raised by the Vendors (if meeting was done) Technical Bid Opening Record Technical Evaluation Report with detailed scores and narrative of the comparative analysis of the Proposals Declaration of Impartiality and Confidentiality signed off by all the Evaluation panel members Financial Proposals Company Profile of Firm Fully Signed CAP Minutes

☑ Quality Assurance ☑ Justification for Localized Competitions (for >100,000 if international competition was not undertaken) ☑ Procurement Plan, if available ☑ Request from Government requesting UNDP to undertake those activities (if NEX) ☑ Project Document ☑ Annual Workplan , Results & Resources Framework (RRF) ☑ In case of Amendment, Copies of all Previous Contracts

C) CHECKLIST FOR CIVIL WORKS ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑

Copy of ITB Bid Sales Record Pre-Bid Meeting Minutes Bid Opening Record Bill of Quantities Technical Specifications Detailed Drawings (if construction of building) Pre-Qualification Evaluation Report Technical Evaluation Report Financial Proposals of all technically qualified bids Fully Signed CAP Minutes Company Profile Procurement Plan, if available Request from Government requesting UNDP to undertake those activities (if NEX) Copy of Advertisement, with dates and media Internal Estimate Independent International Civil Engineer certification of the BOQ and Unit Rates Project Document Annual Workplan , Results & Resources Framework (RRF) In case of Amendment, Copies of all Previous Contracts Risk Assessment Matrix – MANDATORY

D) CHECKLIST FOR SSA/ SERVICE CONTRACTS/ RLA ☑ ☑ ☑ ☑ ☑

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Terms of Reference Copy of advertisement or evidence of public circulation CVs (P11 form) of all shortlisted Candidates Company Profile (for RLA) Selection Committee Minutes (including exam ratings (if any was done) and reference check on recommended Contractor) ☑ Fully Signed CAP Minutes ACP/ LEARNING ☑ Copies of Previous Contracts (If any) GUIDE

E) CHECKLIST FOR DIRECT CONTRACTING (GOODS/SERVICES/SSA/SERVICE CONTRACTS) ☑ Terms of Reference (TOR) ☑ Request for Proposal (Including Evaluation Criteria )

Technical Evaluation Report Financial Proposals Company Profile of Firm Fully Signed CAP Minutes Justification for the Direct Contracting Value for Money Assessment Quality Assurance Copies of Contracts with other UN Agencies (if any) Copies of previous Contracts with UNDP Project Document (if the Contractor has been previously identified in the Project Document) ☑ Workplan (for Services/SSAs/RLAs) ☑ If previously work for UNDP/UN Agencies, then attach copies of Project/Supplier Assessment Report signed off by the Supervising Unit ☑ Financial Proposals of all technically qualified bids ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑

F) CHECKLIST FOR ASSETS WRITE-OFF CASES ☑ RADT form ☑ If it is a case of Transfer to Government/Implementing Partner, attach copy of Project Document ☑ If it is a case of loss or theft, attach Police Report / Report from the Assets Management Focal Point. Also include sworn statement from the custodian of the asset, narrating his/her version of the story, in addition to the Police investigation report. ☑ If it is a case for write off due to expiry of maximum lifespan as specified in the Assets Management guide, then attach copy of certified inventory record including purchase price and year of purchase ☑ CAP Minutes

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ACP/ LEARNING GUIDE

3.1Quality Assurance Checklist

Is the quality of the goods/services assured ?

A) CONTRACTING OF NGO/ FIRMS ☑ Regular Monitoring of Projects. Submission of Project Assessment of past contracts when requesting for new extensions. ☑ Milestone payment linked to satisfactory deliverable certified by UNDP and advance made to the NGOs should be based on cash flow projections for the period covered by the advance ☑ Monitoring & Evaluation strategy to be used by the requesting unit ☑ Provide Company profile and CVs of Consultants ☑ For firms/NGOs that have previously worked with UNDP, provide project assessment report that demonstrates satisfactory performance. Refer templates for capacity assessment of NGOs provided in the UNDP Results Management Guide. ☑ Complete breakdown of cost should be provided in the Financial Proposal including NGO overhead cost. B) PROCUREMENT OF GOODS ☑ ☑ ☑ ☑

After sales services & warranties. Procurement from Authorized dealers and distributors Price comparable to goods under UNDP LTA Goods meets quality assurance standards for products. For eg. ISO 9000

C) FOR LEASE OF PREMISES ☑ Security Assessment Report from UNDSS/ UNDP Security Office ; or ☑ MOSS Compliance report cleared by UNDSS at the Country Level.

D) FOR CIVIL WORKS CONTRACTS ☑ The Contract should include a) defects liability period of at least 12 months ; b) performance guarantee for a minimum of 6 months from final completion and valued at 5% of the contract price. ☑ Abstract of Cost certified by Engineer/ Consultant ☑ Detailed Bill of Quantities & Technical Specifications ☑ BOQ of the Contractor should be certified by an independent Engineer/ Consultancy firm ☑ All Invoices have to be certified by the Engineer at the site before disbursement of payments.

☑ Risk Assessment Matrix ACP/ LEARNING GUIDE

2 1

3.1Value

for

Money

(VFM)

Checklist Is the price right for the goods/services being procured ? By and large the core governing principle of UNDP is to obtain the best value for money. In the context of the procurement process, obtaining “best value for money” means selection of the offer, which presents the optimum combination of life-cycle costs and benefits, which meet the Business Unit’s needs

CHECKLIST ☑ Technically Qualified Lowest Price Bid or the winning offer has attained the highest cumulative scores (Technical + Financial) ☑ Comparison with internationally accepted prices in case of direct contracting ☑ Life cycle cost ☑ For Lease, prices should be comparable to rates in the local market for similar premises “ in the same vicinity” for similar quality of building ☑ For SSA, daily rates comparable to UNDP SSA rates guidelines and for Local staff the rates are comparable to Local SSA rates ☑ For Civil Works, the prices offered by the Contractor should be comparable to the Abstract of Cost prepared by the UNDP Engineer/ Consultant.

ACP/ LEARNING GUIDE

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Overview of the ACP Website

4

Where can I get the updated information on the ACP/RACP ? The ACP has a dedicated website on the UNDP intranet and can be accessed under UNDP Intranet > Practices > Management > Advisory Committee on Procurement

Please visit this website, at http://practices.undp.org/management/acp detailed information. The following information is available at the site : •

Regional ACPs, Focal Points and Best Practices in each region

•

List of Countries with Increased Delegation of Procurement Authority

•

Forms, Checklist & Model Cases

for

•

SOPs

•

Learning Tools and Oversight Tools

•

ACP Calendar and Workshop ACP/ LEARNING GUIDE

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•

Frequently Asked Questions

•

Lesson Learnt

ABBREVIATIONS ABBREVIATIONS

DESCRIPTION

ACP

Advisory Committee on Procurement

BOQ

Bill of Quantities

CAP

Contracts, Assets & Procurement Committee

CBOs

Community Based Organizations

CPO

Chief Procurement Officer

CSO

Civil Society Organization

DEX

Direct Execution

Direct Contracting

Direct Contracting is when the Contractor is selected without undergoing a competitive process.

ITB

Invitation to Bid

Increased Delegation Procurement Authority

of

An increase in delegated procurement Posted HQ Units may be sought from anticipated monetary volume of the subsequent year and the demonstrated decentralized unit.

authority for RRs and Heads of Outthe CPO upon an assessment of the programme to be expended in the capacity of the Country Office (CO) or

Please visit the ACP website to view list of countries that have received increased delegation (http://practices.undp.org/management/acp/) LSO

Legal Support Office

LTA

Long Term Agreement

MOSS

Minimum Operating Security & Safety Standards

NEX

National Execution

PSO

Procurement Support Office

QS

Quantity Surveyor

RADT

Request for Assets Disposal/ Transfer

RCPO

Regional Chief Procurement Officer

RFP

Request For Proposal

RLA

Reimbursable Loan Agreement

RFQ

Request for Quotation

2 4

SC

Service Contract

SOP

Standard Operating Practices

SSA

Special Services Agreement

TOR

Terms of Reference

ACP/ LEARNING GUIDE

United Nations Development Programme Advisory Committee on Procurement Bureau of Management (BOM) One United Nations Plaza New York , NY 10017

http://practices.undp.org/management/acp