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502 Index

502.1 Introduction

This Manual Section has been updated effective 1 January 2010--header

502.1.1 Application--text

This Manual Section establishes the principles and procedures that apply to procurement of all goods, worksand services on behalf of the Organization, in all offices and in all locations, with the exception of theprocurement actions described in – Procurement Not Governed by Manual Section 502.Appendix A

502.1.2 Principal Objective (Best Value for Money)--text

The principal objective of the Organization’s procurement activities will be the timely acquisition of goods,works and services in a competitive and transparent manner, while ensuring fitness for purpose to meet theuser’s requirements, as well as the optimum combination of expected whole life benefit versus cost toprocure ("Best Value for Money").

502.1.3 Additional Objectives--text

To the extent compatible with the above objective, procurement activities should also:

promote standardization and the use of framework agreements, when appropriate to maximize theoptimal use of resources;give due consideration to the importance of attaining an equitable international distribution ofprocurement sources while encouraging developing and emerging economies and supporting capacitybuilding in beneficiary countries particularly in emergency and post-emergency rehabilitativesituations;favor cooperation with other entities of the United Nations System, when appropriate; andpromote a competitive market by favoring procurement from the private sector over procurement fromgovernment entities, government controlled enterprises or Vendors receiving government subsidiesexcept when the latter is the only viable option or would result in substantial benefit to theOrganization or to the beneficiaries of its technical cooperation activities.

502.1.4 Manual Section Revisions--text

When deemed necessary, the Director, CSA, may from time to time propose and implement changes to thisManual Section after obtaining comments from relevant unit(s) within the Organization as necessary.

502.2 Definitions

502.2.1 Defined Terms--text

The following terms will have the meanings set forth below.

Authorized Official. Personnel with the responsibility and authority to undertake procurement actions, as wellas the financial authority to approve and sign Contractual Instruments on behalf of the Organization eitherwith directly delegated financial authority as set forth in - Authorized Officials andAppendix B1Authorization Limits) or those to whom such responsibility and authority has been re-delegated (see Manualparas. below).502.4.7-9

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SECTION: 502 Procurement of Goods, Worksand Services

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Budget Holder. An individual who has been allotted or delegated a budget for the implementation of aprogramme or project and has the authority to confirm or certify that funds are available and requestexpenditure under that programme or project budget.

Bid. An Offer submitted in response to a formal invitation for the supply of goods, works or services meetinga specific description.

Buyer. An organizational unit authorized under this Manual Section or personnel designated by anAuthorized Official to undertake all activities necessary for the selection of a Vendor in accordance with theprocedures set forth in this Manual Section.

Contract. A legally binding agreement between the Organization and a Vendor which provides for theperformance of works or services for the Organization. For purposes of this Manual Section, the term"services" will include works and services, as well as goods associated with the supply of works and services.

Contractual Instrument. Any legally binding written document setting forth the obligations of theOrganization and the Vendor and the agreed terms and conditions for the performance of such obligations.Contractual Instruments used by the Organization include but are not limited to Contracts, FrameworkAgreements and Purchase Orders (see Manual para. below).502.19

Direct Procurement. Procurement which may, under particular circumstances and subject to appropriatereview and approval, be undertaken directly with a single Vendor when a competitive solicitation processwould not efficiently and effectively meet the interests and objectives of the Organization.

Emergency Implementation. Activities undertaken to implement an on-going or stabilized EmergencyProgramme or Project.

Emergency Programme or Project. A programme or project established to deliver emergency relief andrehabilitation assistance in response to a natural or human-induced disaster.

Emergency Situation. A situation where an urgent and exceptional response is needed to address the impactof a sudden onset emergency (e.g. natural disaster), a worsening or acute phase of a crisis (e.g. during acomplex or protracted conflict emergency) or when immediate action is critical to prevention of additionallosses (e.g. transboundary pest and disease emergency; transitional situations).

Exigency. An exceptional, compelling and emergent operational requirement, not an Emergency Situation,that may lead to serious damage, loss or injury to or persons or significant economic loss if notpropertyaddressed immediately.

Field Project Manager. A person delegated by the Budget Holder responsibility for management of a projectin the field, including, , Senior Programme/Project Coordinators, Senior Emergency andinter aliaRehabilitation Coordinators, Senior Project Managers, Chief Technical Advisors, and similar personnel.

Framework Agreement. A type of contract which sets forth the terms and conditions under whichprocurement of goods, works or services can be effected over a specified period, but which places noobligation on the Organization to procure.

HQ Unit. Any Department, Division, Service, Office or Unit located at Organization Headquarters in Rome.

Invitation to Bid ("ITB"). A formal invitation by the Organization to a Vendor to submit a formal offer inaccordance with a specified procedure for the supply of goods, works or services meeting precisespecifications ("Bid")


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Low Value Order. A Contractual Instrument with a value not exceeding the delegated authority of BudgetHolders at Headquarters for goods, works or services to be delivered to and used in Headquarters.

Non-HQ Locations. Those offices or operational units not located at Headquarters which have authority toundertake procurement actions under this Manual Section. Non-HQ Locations include Regional,Sub-regional and Country Offices, Liaison Offices and Field Project Offices including EmergencyOffices/Coordination Units, and any other office which may be authorized by Director, CSA.

Offer. A Quotation, Bid or Proposal submitted by a Vendor.

Personnel. Any individual holding a contract of employment with the Organization, including staff members,other personnel as defined in and personnel engaged under other types ofStaff Regulation 301.13.6contractual arrangements.

Procurement action. A transaction initiated by a Requester to fulfill an Organization requirement for goods,works or services, as well as the series of activities which are intended to result in a legally bindingcommitment entered into by the Organization to purchase or rent or lease goods or contract for works orservices under the provisions of this Manual Section.

Proposal. An Offer submitted in response to a formal invitation to supply goods, works or services meeting ageneral description where the goods, works or services required cannot be quantitatively or qualitativelyexpressed in a complete and definitive manner.

Purchase Order. A legally binding contract between the Organization and a Vendor for the procurement ofgoods including any works and services incidental to their supply.

Requester. A person authorized by the Budget Holder to request the procurement of goods, works or servicesfor a programme or project.

Request for Proposal ("RFP"). A formal invitation issued to a Vendor to submit a formal offer in accordancewith a specified procedure to supply goods, works or services meeting a general description ("Proposal").

Responsive Offer. A Valid Offer which materially conforms to the technical specifications and anymandatory terms contained in the Solicitation Documents.

Solicitation Document. The formal invitation to potential Vendors which consists of the documentationnecessary to fully describe the requirements of the procurement action, as well as the procedures forsubmission of Offers.

Tender. Any competitive solicitation as provided for in this Manual Section.

UN Entity. An organization, agency, programme or other entity that is part of the United Nations System.

Valid Offer. An Offer which has been properly submitted in accordance with the specified instructions orwhich was originally declared invalid and subsequently revalidated by the Opening Panel.

Vendor. A company, organization, institute or other legal entity which may supply goods, works or servicesto the Organization under the provisions of this Manual Section.

502.2.2 Definitions in Text--text

Additional terms are defined in the text of this Manual Section.


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502.3 Functions and Responsibilities

502.3.1 Responsibility--text

Overall responsibility for procurement and for implementation of the provisions of this Manual Section lieswith the Director, CSA.

502.3.2 Functions--text

The procurement process comprises four major functions: i) initiation of a procurement action; ii) selection ofthe appropriate Vendor; iii) approval and signature of Contractual Instruments for the purchase or rental ofgoods, works and services on behalf of the Organization; and iv) review of certain procurement actions.Responsibility for initiating, implementing, approving and signing procurement actions is shared amongdesignated Headquarters Units and Non-Headquarters Locations depending on the value and nature of thegoods, works or services to be procured. Responsibility for reviewing certain procurement lies with theHeadquarters Procurement Committee and/or the Local Procurement Committees established inNon-Headquarters Locations. All personnel involved in the procurement process are responsible for ensuringthat their actions are in conformity with the Manual Section and with the Standards of Conduct applicable toOrganization staff.

502.3.3 Headquarters Procurement Service (CSAP)--text

CSAP is responsible for proposing and implementing procurement policy and establishing procedures,providing advice and guidance to other Units and Offices of the Organization regarding procurement policiesand procedures, interpreting the provisions of this Manual Section, and approving exceptions to standardprocedures in accordance with this Manual Section or as appropriate. CSAP is also responsible forundertaking the following:

procurement actions at Headquarters expected to result in expenditure in excess of the delegatedfinancial authority of the Authorized Official of Headquarters Units (as set forth in –Appendix B1Authorized Officials and Authorization Limits) for goods, works and services and for items for whichCSAP has been designated as the Buyer. Such procurement actions will be undertaken on the basis of aformal request made in conformance with the requirements set forth in Manual para. below.502.7procurement actions expected to result in expenditure in excess of the delegated financial authority ofthe Authorized Official in Non-HQ Locations (as set forth in ) on the basis of a formalAppendix B1request made in conformance with the requirements set forth in Manual para. below.502.7processing requests for goods, works and services subject to Framework Agreements or otheragreements where foreseen by the procedures established to implement the agreement.

502.3.4 Headquarter Units (HQ Units)--text

HQ Units may undertake local or international procurement actions which are expected to result inexpenditure within the delegated financial authority of the Budget Holder for the HQ Unit as set forth in

for goods, works and services ("Low Value Orders") to be used in HQ, with the exception ofAppendix B1 items for which CSAP has been designated the Buyer and printing services. Budget Holders in HQ Units mayalso directly procure goods, works and services subject to an existing Framework Agreement regardless ofvalue, where permitted by the procedures established to implement the agreement. For all other procurementactions, HQ Units are responsible for making a formal request to CSAP to initiate the procurement action(see Manual para. for requirements relating to such requests). HQ Requesters are responsible for502.7preparing submissions and obtaining the clearance of the Chief or Head of Unit, as well as clearance from thetechnically-competent unit(s) or officer(s), if relevant, for procurement actions subject to HeadquartersProcurement Committee review (see - Procurement Actions Subject to HeadquartersAppendix C2 Procurement Committee Review).


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502.3.5 Non-Headquarters Locations (Non-HQ Locations)--text

Non-HQ Locations are responsible for procurement actions undertaken outside Headquarters which areexpected to fall within the delegated financial authority of the relevant Authorized Official as set forth in

. Non-HQ Locations may also directly procure goods and/or services subject to existingAppendix B1Framework Agreements, regardless of value, where permitted by the procedures established to implement theagreement. For all other procurement actions, Non-HQ Locations are responsible for making a formal requestto CSAP to initiate the procurement action (see Manual para. for requirements relating to such502.7requests. Non-HQ Locations are also responsible for preparing submissions to the Headquarters ProcurementCommittee and for obtaining clearance from the technically-competent unit(s) or officer(s), if relevant, forthose procurement actions subject to Headquarters Procurement Committee review (see Appendix C2 ).

502.3.6 Headquarters Procurement Committee (HQPC).--text

The Procurement Committee at Headquarters undertakes an independent review and makes recommendationsto the Director, CSA on the appropriateness of certain proposed procurement actions. Such review will beundertaken on the request of CSAP, the Director, CSA, or a Requester and will be conducted in accordancewith the Terms of Reference attached as – Headquarters Procurement Committee Terms ofAppendix C1Reference, which set forth the composition and procedures of the HQPC. The procurement actions subject toHQPC review are set forth in – Procurement Actions Subject to Headquarters ProcurementAppendix C2Committee Review.

502.3.7 Local Procurement Committee (LPC)--text

A Local Procurement Committee (LPC) will be established at Non-HQ Locations to review certain proposedprocurement actions on the request of the Buyer, the Authorized Official or a Requester, and will make arecommendation to the Authorized Official as to the appropriateness of the proposed action. Such review willbe conducted in accordance with the Terms of Reference attached as – Local ProcurementAppendix D1Committee Terms of Reference, which set forth the composition and procedures of the LPC, and will includethe actions set forth in – Procurement Actions Subject to Local Procurement CommitteeAppendix D2Review.

502.4 Procurement, Approval and Signature Authority

502.4.1 Delegation of Authority--text

Except as otherwise specified herein, authority to engage in procurement activities, approve procurementactions and enter into contractual obligations committing the Organization for the procurement of goods,works and/or services on behalf of the Organization under this Manual Section is delegated to the Director,CSA. The Director, CSA may revoke any delegation of authority granted under this Manual Section, whetherDirectly Delegated (see Manual para. below) or Re-delegated (Manual para. below).502.4.5 502.4.7

502.4.2 Procurement Authority--text

The authority to engage in procurement activities is delegated to the units and offices of the Organizationlisted in Manual paras above. Only personnel designated by the relevant Authorized Official in502.3.1-5 such units and offices to undertake procurement actions (such as contacting suppliers to obtain Quotations,Bids or Proposals) are authorized to do so on behalf of the Organization.

502.4.3 Authorized Officials--text

Authorized Officials are personnel with authority under this Manual Section to approve procurement actions


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and enter into contractual obligations for the procurement of goods, works and/or services on behalf of theOrganization. Authorized Officials are either directly delegated such authority as specified in –Appendix B1Authorized Officials and Authorization Limits or have been granted such authority through re-delegation (seeManual para. below).502.4.7


Authorized Officials are responsible and fully accountable for exercising their duties and responsibilities withthe utmost care, competency, efficiency, fairness and integrity. An Authorized Official must ensure strictadherence to all applicable Organization rules, regulations and procedures related to financial accountabilityand procurement, in particular those set out in this Manual Section. Prior to approval and signature of aContractual Instrument, an Authorized Official will ensure that:

the Budget Holder has confirmed that the funds for the procurement activity are available and havebeen committed,the objectives set out in this Manual Section have been met (see Manual paras and 502.1.2 502.1.3above);the procurement action has been carried out in compliance with the provisions of this Manual Section,in a transparent and ethical manner giving due consideration to the recommendation of the relevantProcurement Committee, when required.the procurement activity is within the Authorized Official’s directly delegated or re-delegatedauthority.

502.4.5 Directly Delegated Authority--text

The authority to engage in procurement activities and to enter into contractual obligations on behalf of theOrganization which is directly delegated to an Authorized Official under this Manual Section as set forth in

is conferred on the officeholder and is therefore extended to the officer-in-charge or in the caseAppendix B1 of FAO Representations, the "FAO Representative ad interim".

502.4.6 Approval and Signature Authority--text

Authorized Officials may approve procurement actions, enter into contractual obligations and signContractual Instruments within their granted financial authority. Financial authority is granted directly underthis Manual Section as set forth in (Directly Delegated Financial Authority). AuthorizedAppendix B1Officials may also be granted additional authority through re-delegation.

502.4.7 Re-delegation of Authority--text

Authorized Officials with a direct delegation may re-delegate, within the amounts and to the personnel setforth in , their directly delegated financial authority, either generally for all procurement actionsAppendix B1for a specified period ("General Re-delegation") or on an ad hoc basis ("Ad Hoc Re-delegation"). AuthorizedOfficials may re-delegate authority at their own initiative or on the basis of a request and with the agreementof the personnel to whom the re-delegation is granted.

502.4.8 General Re-delegations of Authority--text

A General Re-delegation of authority is granted personally for a specified period and may not be re-delegatedby the person receiving the delegation except that the re-delegation will extend to Officer-in-Charge in thetemporary absence of the Authorized Official to whom the re-delegation has been granted. AuthorizedOfficials making a General Re-delegation of financial authority for a specified period will make an ongoing


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assessment of the capacity of the person to whom authority has been re-delegated to effectively perform therelevant procurement activities in compliance with the rules and regulations of the Organization. There-delegated authority may be revoked by and at the discretion of the granting Authorized Official.

502.4.9 Ad Hoc Re-delegations of Authority--text

Ad Hoc Re-delegations of Authority. An Ad Hoc Re-delegation is granted personally and may not bere-delegated. The Authorized Official granting an Ad Hoc Re-delegation will assess whether the personnel towhom Ad Hoc Re-delegation is granted have sufficient capacity to carry out the responsibilities adequately.The personnel to whom an Ad Hoc Re-delegation has been granted are responsible for ensuring that theprocurement activities undertaken in connection with the Ad Hoc Re-delegation meet the requirements of thisManual Section. Ad Hoc Re-delegations may include single procurement actions, or a series of procurementactions undertaken pursuant to a single project or programme or Emergency Situation.

502.4.10 Requests for Re-delegation of Authority--text

Requests for a re-delegation of authority may be made by personnel requiring the re-delegation or by BudgetHolders on behalf of and with the agreement of the personnel requiring the re-delegation. The request mustbe made to the appropriate Authorized Official in accordance with the nature of the re-delegation and theamount of authority required, must be submitted in advance of undertaking the procurement action(s) (i.e.before initiation of the solicitation process), and must include the following:

the amount and period of time for which authority is sought;whether the re-delegation required is a General Re-delegation or an Ad Hoc Re-delegation (see Manualparas. and );502.4.8 502.4.9the justification for the request, including a description of the planned procurement and the estimatedvalue of the procurement action(s);for a General Re-delegation of authority, an indication of the experience, training and capacity ofpersonnel undertaking procurement activities to effectively perform procurement actions as well as aconfirmation that adequate segregation of duties is guaranteed;for a General Re-delegation of authority to a Field Project Manager, the agreement of the FAORepresentative, Sub-regional Representative/Coordinator or Regional Representative, as applicable.

502.4.11 Procurement Missions--text

The Director, CSA, may authorize a person representing CSAP to travel on duty to undertake procurementwhen it is determined that additional support for the procurement function is required. In such cases, theDirector, CSA, will grant the authority to undertake procurement actions, as well as re-delegate adequatefinancial authority to approve and sign Contractual Instruments on behalf of the Organization to the personrepresenting CSAP for the duration of the Procurement Mission to procure the goods, works and servicesrequired, primarily through local or regional procurement or, if local or regional capacity to supply is deemedto be insufficient, through international procurement. Contractual Instruments issued during the procurementmission must be signed by the person representing CSAP and co-signed by the relevant Authorized Officialon site (e.g. FAOR, Field Project Manager). Procurement missions will be governed by this Manual Section,as well as the Terms of Reference approved by the Director, CSA, the Budget Holder and the AuthorizedOfficial on site. It is the responsibility of the Budget Holder to ensure that a procurement plan and adequatefunding for the procurement is available to undertake the mission.

502.4.12 Documentation of General Re-delegations--text

General Re-delegations of authority will be effected through the issuance of a Statement of Re-delegation ofAuthority by the granting Authorized Official. The Organization’s Standard Statement of Re-delegation ofAuthority is provided in and may be sent electronically. The Authorized Official to whom theAppendix B2


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General Re-delegation has been granted must retain a copy of the Re-delegation of Authority on file.

502.4.13 Documentation of Ad Hoc Re-delegations--text

For Ad Hoc Re-delegations of authority, it is the responsibility of the Authorized Official to whom theauthority has been granted to ensure that authorization for the relevant procurement action(s) has beenadequately documented.

502.4.14 Assistance--text

In addition to the Re-delegations of Authority set forth in , an Authorized Official may, whenAppendix B1necessary to facilitate the procurement action, request assistance from an Authorized Official in anothercountry to undertake a procurement activity for goods from a Vendor or Vendors in that country in anamount not exceeding either the Directly Delegated Authority of the Authorized Official making the requestor the Authorized Official undertaking the procurement activity.

502.4.15 Application of Authorization Limits--text

The Authorization Limits set forth in are applicable both to the authority to undertake aAppendix B1solicitation and to the approval and signature of a Contractual Instrument. Authorization limits apply to thetotal value of each single procurement action, inclusive of transportation costs, if any, and exclusive of valueadded tax or any other taxes if applicable. All procurement actions undertaken with a single Vendor foressentially the same goods or services to satisfy a single request will be considered a single procurementaction for purposes of the financial limits indicated in .Appendix B1

502.4.16 Adjustments to Authorization Limits--text

At the discretion of the Director, CSA, the financial authorization limits in may be adjustedAppendix B1periodically to reflect the change in consumer prices published by the International Monetary Fund for OtherEmerging Market and Developing Countries. The Director, CSA will assess the advisability of adjusting thethresholds set forth in every biennium.Appendix B1

502.5 Procurement Ethics

502.5.1 General--text

The funds used by the Organization are entrusted to it by its Member States and other parties. Transactionscommitting the Organization to spend such funds must be conducted according to the highest standards ofaccountability to ensure the utmost degree of public trust. It is essential that all procurement activities respectthe principles of fairness and transparency and are carried out with complete impartiality and withoutpreferential treatment. Personnel associated with the procurement function including, but not limited to, allpersonnel with a direct procurement function, as well as personnel involved in the development ofspecifications and evaluation of Offers, are responsible for protecting the integrity of the procurementprocess. The obligation to maintain the confidentiality and transparency of the procurement process willsurvive separation from the Organization.

502.5.2 Corrupt, Fraudulent, Collusive or Coercive Practices--text

Personnel will not engage in any corrupt, fraudulent, collusive or coercive practices or engage in any of theProhibited Activities specified in Manual para. below, in the carrying out of their functions in the502.5.3procurement process. Personnel who become aware of information indicating that the procurement processmight have been subject to corrupt, fraudulent, collusive or coercive practices, including with respect to


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activities undertaken by a Vendor, will provide such information either directly to the Office of the InspectorGeneral or to a higher level official who will take appropriate action and report the matter to the Office of theInspector General. For purposes of this Manual Section, the following definitions shall apply:

502.5.211 "Corrupt practice" is the offering, giving, receiving or soliciting, directly or indirectly, of anythingof value, whether tangible or intangible, to improperly influence the actions of another party;

502.5.212 "Fraudulent practice" is any act or omission, including misrepresentation, that knowingly orrecklessly misleads, or attempts to mislead, a party to obtain financial or other benefit or to avoid anobligation;

502.5.213 "Collusive practice" is an arrangement between two or more parties designed to achieve animproper purpose, including to influence improperly the actions of another party;

502.5.214 "Coercive practice" is impairing or harming, or threatening to impair or harm, directly orindirectly, any party or the property of the party to influence improperly the actions of a party.

502.5.3 Prohibited Activities--text

In accordance with the general prohibition to engage in any of the practices described in Manual para. personnel involved directly in or associated in any way with a given procurement action may not 502.5.2,:inter alia

allow any potential Vendor access to information with respect to a particular procurement action beforesuch information is available to all invited Vendors;use unnecessarily restrictive specifications or statements of work that may discourage competition;solicit or accept, directly or indirectly, any gratuity, gift, favor, or entertainment or any promise offuture employment from anyone who has supplied or is seeking to supply goods, works or services tothe Organization;have any involvement in any procurement action in which such personnel or any immediate family(parent, spouse, domestic partner, child, sibling, grandparent, step- (parent, child, siblings), or in-laws(parent, child, and sibling) or any other person living in the same household) may obtain a personalbenefit from the procurement action or has more than a nominal financial interest (including a financialinterest in a Vendor);disclose, directly or indirectly, confidential or proprietary information or information related to theVendor selection process to any person other than a person authorized to receive such information;withhold information provided to one or more invited Vendors from other invited Vendors;alter or modify an Offer, documents or other materials supporting an Offer or related to a Solicitationprocess for the purpose of providing an advantage to any Vendor.

502.5.4 Obligation to Disclose--text

Personnel involved in a procurement action who have been offered any gratuity, gift, favor or entertainmentor any promise of future employment from anyone who has supplied or is seeking to supply goods, works orservices to the Organization (see Manual para. c)) or in which such personnel or any immediate502.5.3(family (parent, spouse, domestic partner, child, sibling, grandparent, step- (parent, child, siblings), or in-laws(parent, child, and sibling) regardless of whether resident in the same household or any other person residingin the same household) may obtain a personal benefit or has more than a nominal financial interest (includinga financial interest in a Vendor) (see Manual para. d) will promptly notify such circumstances in502.5.3(writing to the relevant Authorized Official and the Ethics Officer.

502.5.5 Maintenance of Transparency--text


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Personnel involved in a procurement action have an obligation to protect the integrity of the procurementactivity by maintaining the transparency of the procurement process. Maintenance of transparency includesthe following:

ensure unbiased specifications, objective evaluation criteria, and equal access to information to allVendors and confidentiality of offers;maintain sufficient, relevant and authoritative documentation demonstrating compliance withprocurement rules as set forth in this Manual Section and any other applicable guidelines;retain for the period provided for by relevant records management procedures the documentationmentioned in (b) above in a manner that is readily available for review by the Organization’s dulyappointed auditing and evaluation bodies.

502.5.6 Accountability--text

Personnel involved in procurement activities who breach the provisions of this Manual Section may besubject to administrative action, including disciplinary action in accordance with Manual Section 330, orlegal action under the rules of competent national jurisdictions.

502.6 Procurement Planning

502.6.1 Procurement Plan--text

To support the principle objectives of procurement, Budget Holders will, to the extent possible, establish anannual procurement plan for major procurement activities which will be the basis of requests for procurementactions. The annual procurement plan will be provided to the relevant Buyer and Authorized Official forplanning purposes only and will be updated as necessary by the Budget Holder. For procurement inconnection with Emergency Implementation, procurement plans may be established for shorter periods oftime as appropriate to the nature of the Emergency Project or Programme.

502.6.2 Contents of Procurement Plan--text

The procurement plan will include a description and quantities of the goods, works or services to beprocured, estimated budget and source of funding, schedule of procurement activities and proposed methodof procurement and should consider, as far as possible, grouping together similar items with similar deadlinesand destinations from different projects. In situations where exact information is not yet available, theprocurement plan will contain reasonable estimates that will be corrected as information becomes available.

502.7 Intitiation of Procurement Actions

502.7.1 Initiation of Procurement Action--text

Procurement actions are initiated by a Requester through a request to a Buyer which accurately andcompletely specifies the goods and/or services required, along with any other relevant terms and conditionsnecessary to ensure fitness for purpose to meet the Requester’s requirements and which do not unnecessarilyrestrict potential competition. Except for requests made in connection with a Request for Quotations (seeManual para. below) all requests for procurement will be in writing. The Buyer will assess the502.8.11 adequacy of the information provided and request clarification or additional information from the Requesterwhen considered necessary. For procurement actions within the thresholds established for a Request forQuotations, the Buyer may choose to proceed without a written request after determining that the informationprovided is adequate to ensure fitness for purpose and appropriate evaluation of alternatives and availabilityof funds. To the greatest extent possible, Requesters should anticipate total requirements for specific goodsand/or services, especially in cases where goods are produced only on the basis of a firm order.


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502.7.2 Requests for the Procurement of Goods--text

Requests for the procurement of goods, except as set forth in Manual paras - Emergency502.7.4 Implementation and Exigencies, - Framework Agreements and - Advance Tenders, must be502.7.6 502.7.12 approved by the Budget Holder to certify the availability of funds for the estimated cost of the procurementaction and must include the following information:

specifications for the goods to be procured, cleared by the technically-competent unit(s) or officer(s),which provide sufficient information to permit Responsive Offers;all necessary background information and any available supporting documentation (e.g. brochures,catalogues);an indication of required quantities and delivery terms (destinations, modalities, and deliverydeadlines), as well as any proposed deviations from the Organization’s standard commercial terms andconditions;an indication of whether inspection services are required;an indication of the nature of the request: new solicitation, reuse of tender results, Direct Procurement,procurement under a Framework Agreement, Cooperation with another UN Entity or other;a recommendation of the method of solicitation of offers (see Manual para. - Methods for502.8Solicitation of Offers below) if relevant or, in the case of Direct Procurement or Cooperation withanother UN Entity, appropriate justification;as applicable, preliminary criteria for the evaluation of Offers and methodology to be applied (seeManual para. - Evaluation Criteria and Evaluation Methodologies below); and502.10suggested Vendors where possible or, in the case of Direct Procurement or Cooperation with anotherUN Entity, the proposed Vendor.

502.7.3 Requests for the Procurement of Works and Services--text

Requests for the procurement of works or services must be approved by the Budget Holder and contain thefollowing:

a preliminary indication of the nature of the request: new solicitation, reuse of tender results, DirectProcurement, Contract amendment or renewal, procurement under a Framework Agreement,Cooperation with another UN Entity, or other;a recommendation of the method of solicitation of offers (see Manual para. below), if relevant or,502.8in the case of Direct Procurement or Cooperation with another UN Entity, appropriate justification;a general indication of the type of works or services requested or, if available, a description of works orservices requested, technical specifications and any applicable bill of quantities, or terms of reference,as appropriate, cleared by the technically-competent unit(s) or officer(s) and sufficiently detailed topermit Responsive Offers;estimated service delivery requirements;as applicable, preliminary criteria for the evaluation of Offers and weights to be assigned to suchcriteria (see Manual para. below);502.10where possible an estimate of the costs for the services requested or the available budget; andsuggested Vendors where possible or, in the case of Direct Procurement or Cooperation with UNEntities, the proposed Vendor.

502.7.4 Emergency Implementation and Exigencies--text

For procurement undertaken in connection with Emergency Implementation and in the case of an Exigency,adequate funds to cover the procurement action may not yet be available at the time the action is initiated.The Buyer may proceed with the procurement action based on a request approved by the Budget Holder for anominal amount, provided that specifications have been finalized and cleared by the technically-competentunit(s) or officer(s) and the Budget Holder indicates that availability of adequate funding is imminent.


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However, the Authorized Official will not approve, sign or allow issuance of a contractual instrumentcommitting the Organization for the expenditure of funds until the Budget Holder has confirmed availabilityand commitment of adequate funding.

502.7.5 Custom Specifications--text

Requests for custom made machinery and equipment must clearly indicate that the specifications are notstandard and have been customized to meet the requirements of the Organization. The Requester will alsoindicate if a modification of payment terms or other form of performance security over and above standardproduct warranties should be considered to protect the interests of the Organization.

502.7.6 Framework Agreements--text

A Framework Agreement may be requested where the Requester anticipates sustained and significantdemand over a period of time for a specific type of goods, works or services, and the establishment of anagreement which defines the terms and conditions of supply for a defined period will result in a moreefficient use of resources. Requests for Framework Agreements, whether for goods, works or services, aresubject to the same requirements as set forth in Manual para. - Requests for the Procurement of502.7.3Works or Services above and must be reviewed by the HQPC if requested for a period exceeding five (5)years (Extended Term).

502.7.7 Requests for Concession Services--text

A Concessionaire Contract is a special Framework Agreement between a Vendor and the Organization forthe provision of services directly to Organization staff members for which the Organization does not incurany financial obligation. The responsibilities for provision of specifications and evaluation of ConcessionaireContracts may be shared by staff representative bodies or specifically constituted committees wheredesignated by the Organization’s rules or by the highest ranking Authorized Official in the location where therelevant Concessionaire’s Contract is operative. The procedures to be applied are substantially those providedfor procurement actions described herein, modified as deemed appropriate by the Buyer and the relevantAuthorized Official.

502.7.8 Requests based on Cooperation with UN Entities--text

Requests to procure goods, works or services based on cooperation with other UN Entities as provided inManual para. - Cooperation with Other UN Entities, must also include information necessary for the502.18.1Buyer to evaluate the request (e.g. the UN Entity involved, the Vendor, any available information regardingthe terms obtained). The Buyer will determine the appropriate action and proceed according to the provisionsof Manual para. .502.18.1

502.7.9 Requests to Procure Goods, Works or Services under Framework Agreements--text

Requests to procure goods, works or services under an existing Organization Framework Agreement will begoverned by the procedures established by the implementing Buyer for that agreement.

502.7.10 Extended Term Contract--text

Requests for contracts or amendments to contracts resulting in a term in excess of five years ("ExtendedTerm Contract") must include full justification for the request and may require review by the relevantProcurement Committee if the estimated total amount to be spent under the Extended Term Contract exceedsthe review threshold set forth in or . Extended Term Contracts may be appropriate in casesAppendices C2 D2when it is expected that there will be continuous demand over an extended period of time for the services and(a) a substantial investment will be required on the part of the Vendor and/or the Organization and an


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extended term will allow the amortization of costs over a longer period and result in more efficient use ofresources for the Organization; or (b) the Organization would benefit from stability and predictability of priceor other conditions over the extended period of time.

502.7.11 Procurement Committee Review--text

Certain procurement actions require HQPC or LPC review at the request stage, as set forth in Appendices C2 and .D2

502.7.12 Advance Tenders--text

An Advance Tender is an ITB or RFP based on total estimated requirements for a series of plannedprocurement actions for the same for goods, works or services over a defined period of time, for which theSolicitation Documents may not yet provide the Vendor with detailed information regarding the exactquantity, timing and destination of each planned individual order. An Advance Tender may be requestedwhen the Budget Holder is able with reasonable certainty to determine the potential total requirements ofgoods, works or services for a series of planned procurement action(s) over a defined period. The Buyer mayproceed with the procurement action based on a request approved by the Budget Holder for less than the totalvalue required, provided that specifications have been finalized and cleared by the technically competentunit(s) or officer(s) and the Budget Holder indicates that adequate funding will be available. However, theAuthorized Official will not approve, sign or allow issuance of a contractual instrument committing theOrganization for the expenditure of funds until the BH has confirmed availability of adequate funding. Arequest for an Advance Tender should include to the extent possible and as applicable, the total plannedquantity of goods, works or services foreseen, specification of ancillary requirements (e.g. installation,training), an indication of the expected delivery requirements, as well as the other information requested inManual paras and .502.7.2 502.7.3

502.7.13 Procurement of Used Equipment--text

Generally, equipment procured should be new with full warranty coverage. In exceptional circumstances,including in connection with an Emergency Programme or Project, consideration can be given toprocurement of used or reconditioned equipment. Requests for used or reconditioned equipment mustestablish that procurement of used or reconditioned equipment is justified (e.g. significant cost savings, speedof availability versus new equipment, only source of supply) and constitutes a reasonable alternative withrespect to the purchase of new equipment. When the procurement of used or reconditioned equipment isproposed primarily on the basis of significant cost savings, the request will include consideration of the risksassociated with procurement of used or reconditioned equipment. When procuring used or reconditionedequipment either (i) the Vendor will be required to offer product warranties comparable to those offered forsimilar new equipment or (ii) a satisfactory independent quality assessment of such equipment will beobtained as a condition of purchase. Office furniture and equipment required in connection with theestablishment of offices for Emergency Programmes or Projects may be procured used from other UNEntities after a cost benefit assessment of the suitability, condition and availability of the goods and thereasonableness of the price.

502.7.14 Standardization--text

In certain situations, it may best serve the Organization to standardize procurement of certain goods for aspecific brand or model of product or on a service available from a sole service provider. A request forstandardization may either be made independently of a request for procurement or at the time of a request toinitiate a procurement action. Standardization may be approved by the relevant Authorized Official afterreview by the appropriate Procurement Committee, for application Organization-wide, at regional,sub-regional or country level or for a specific project, will normally be for a limited period of time, andunless fully justified, should not exceed five years. An approved standardization is not sufficient to justify


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Direct Procurement; if multiple Vendors can fulfill the standardized requirement, competition must still besought. Situations in which standardization may be appropriate, as well as the associated review and approvalrequirements in each case, are set forth below.

502.7.141 . Standardization may be applicable where oneStandardization Based on Technical Requirementsproduct or service has been identified as being the most appropriate product or service able to meet thetechnical requirements of the Organization, including Organization-wide or for specific regions, countries orprojects, and it is foreseen that the relevant requirement will continue for a period of time. A request forstandardization will include technical justification and clearance from the technically-competent unit(s) orofficer(s), an estimate of the total annual requirements in terms of quantity and value and the period of timefor which the approval is requested. A request for standardization that is intended to be applicable for HQs,Organization-wide or for more than one country is subject to HQPC review and approval by Director, CSA.A request for standardization that is intended to be applicable in a single country is subject to review by theappropriate LPC and approval by the relevant Authorized Official and will be notified to CSAP.

502.7.142 . Standardization on a specific brand or model ofStandardization to conform with UN Standardsproduct or on a service available from a sole service provider may be approved by the relevant AuthorizedOfficial to ensure conformity with established UN standards, to facilitate operational coordination with otherUN Entities or to take advantage of UN standard rate agreements. Requests for standardization to conformwith UN standards of equipment required for security purposes for staff in the field (e.g. communicationsequipment, vehicles) are not subject to Procurement Committee review including in those cases where thestandardization will necessitate use of a sole source supplier.

502.7.143 . To avoid undue switching costs or operationalStandardization Based on Previous Supplyinefficiencies, a Requester may request, for a single procurement action or series of related procurementactions, the same model, brand or service previously supplied including where the pre-existing model, brandor service was not procured by the Organization. Where the choice of a specified model, brand or servicewould limit sourcing to fewer than three Vendors, the Requester must obtain approval for standardizationbased on previous supply. The request must include full justification for the standardization, as well aswritten confirmation of the recommendation for standardization from the government counter-part, ifapplicable, clearance from the technically-competent unit(s) or officer(s) and an estimate of the total quantityand value of the procurement action(s) covered by the request. Review requirements and approval levels willbe determined by the total value of the procurement action(s) for which approval is requested. Where reviewis required, the Requester is responsible for submitting the request through the Buyer to the relevantProcurement Committee in accordance with the review thresholds set forth in and ,Appendices C2 D2respectively. Authorized Officials will have the authority to approve standardization based on previoussupply within the delegated authority limits set forth in .Appendix B1

502.8 Methods for Soliciation of Offers

502.8.1 Methods for Solicitation of Offers.--text

Offers for the supply of goods, works or services to the Organization will be solicited using one of threemethods: Requests for Quotation, Invitations to Bid or Requests for Proposal. The Buyer will determine theappropriate solicitation method to be used based on the estimated value of the procurement action, inaccordance with the value thresholds set forth in – Solicitation and Submission Method SelectionAppendix E and taking into consideration the nature of the goods, works or services to be procured and the informationprovided by the Requester.

502.8.11 . A Request for Quotation ("RFQ") is an informal request made to a Vendor,Request for Quotationeither directly, including by telephone, e-mail, facsimile or through consultation of a published price list (e.g.


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a.

b. c.

catalogues, Vendor websites), to obtain an indication of the price at which goods, works or services areavailable ("Quotation"). An RFQ is used for low value procurement of simple goods, works or services withclearly-defined or standard specifications.

502.8.12 . An Invitation to Bid ("ITB") is a formal invitation by the Organization to aInvitation to BidVendor to submit a formal offer in accordance with a specified procedure for the supply of goods, works orservices meeting precise specifications ("Bid"). In general, an ITB is used for the procurement of goods withobjectively measurable quantitative and qualitative specifications. An ITB may also be used to contract forservices that can be expressed quantitatively and qualitatively.

502.8.13 . A Request for Proposal ("RFP") is a formal invitation issued to a Vendor toRequest for Proposalsubmit a formal offer in accordance with a specified procedure to supply goods, works or services meeting ageneral description ("Proposal"). An RFP is used where the goods, works or services required cannot bequantitatively or qualitatively expressed in a complete and definitive manner, such as for complex goods,works or services when proposals from the Vendors are preferred.

502.8.2 Special Situations--text

When due to the particular nature of the goods, works or services to be provided (e.g. livestock procurement,seed multiplication activities), it is not feasible to use one of the solicitation methods indicated above, specialsolicitation procedures that comply with the principles set forth in Manual para. and above502.1.2 502.1.3may be agreed with CSAP.

502.8.3 Adjustments to Value Thresholds--text

At the discretion of the Director, CSA, the value thresholds in which determines the permittedAppendix E solicitation and submission method(s) may be adjusted periodically to reflect the change in consumer pricespublished by the International Monetary Fund for Other Emerging Market and Developing Countries. TheDirector, CSA will assess the advisability of adjusting the thresholds set forth in every biennium.Appendix E

502.9 Identification of Vendors

502.9.1 List of Vendors--text

It is the responsibility of the Buyer to compile a list of Vendors to contact for a Quotation or to invite tosubmit a Bid or Proposal. Identification of Vendors will be undertaken in such a way as to maintain theintegrity and fairness of the process, giving consideration when appropriate to the objective of attaining anequitable international distribution of Vendors while encouraging developing and emerging economies andsupporting capacity building in beneficiary countries. The Authorized Official will ensure that the selectionof the list of Vendors is undertaken in a transparent and equitable manner considering the procurementrequirements.

502.9.2 Sources of Information--text

To identify Vendors which may be in a position to supply the requested goods, works or services, as well aswhich satisfy any additional requirements or qualifying characteristics (see Manual para. below), the502.9.3 Buyer may consult one or more of the following sources:

the Organization’s database of registered Vendors, including any existing supplier lists previouslydefined for the commodity or service requested;previously received Offers and satisfactory supply/delivery for comparable goods, works or services;any other databases or lists maintained by the Organization that may identify potential sources of


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c.

d.

e.

f. g.

h.

a. b. c.

d.

a.

b.

supply;Vendors suggested by the Requester and/or technical services (subject to the Buyer’s evaluation oftheir suitability);available reference resources including the Internet and other UN Entity sources (e.g. Unitedinter aliaNations Global Marketplace) or lists maintained by other UN Entities at country or regional level;central procurement agencies or trade/commodity associations;market surveys or published calls for interest which may include establishment of pre-qualificationcriteria;other sources of information which, in the opinion of the Buyer, may assist in identifying potentialsources of supply.

502.9.3 Additional Vendor Qualifications--text

In consideration of the nature and value of the procurement action, the Buyer may establish additionalqualifying requirements or characteristics to compile the list of Vendors to be solicited for an Offer.Additional Vendor qualifications may include, but are not limited to:

502.9.31 demonstrated technical competence, experience, satisfactory performance and financial soundnessin past dealings with the Organization or with other UN Entities to mitigate risk of non-performance,particularly in the case of procurement in connection with an Emergency Situation or an Exigency;

502.9.32 location of the Vendor:

to reduce total price through lower transportation costs;to conform to local regulations;to meet a short delivery deadline to the country or region concerned, particularly in the case ofprocurement in connection with an Emergency Situation or an Exigency; orwhere development of local or regional economies or support of local/regional Vendor capacitybuilding is an objective of the programme or project for which the procurement action is beingundertaken particularly in connection with Emergency Implementation;

502.9.33 pre-qualification for specific commodities subject to government regulation or licensing;

502.9.34 pre-qualification for the specific requirements of a given emergency;

502.9.35 specialized quality certifications; or

502.9.36 ability to provide after-sales and/or maintenance service.

502.9.4 Number of Vendors--text

In determining the number of Vendors to invite, the Buyer will balance the objectives of competitiveness,fairness and an equitable international distribution of Vendors with the nature and estimated value of theprocurement action, with a view to obtaining a minimum of three Responsive Offers; where possible andappropriate, the number of Vendors to be solicited should increase in proportion with the estimated value ofthe procurement action. Where the number of Vendors identified with the required qualifications is excessiverelative to the nature and value of the procurement action, or when circumstances justify limiting the numberof invited Vendors, such as in connection with Emergency Implementation, or in an Emergency Situation oran Exigency, provided that the selection process maintains transparency, the Buyer may choose to limit thelist of Vendors to those that fulfill one or more of the following conditions:

received a previous award for the same goods, works or services and performed satisfactorily;


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b. c.

d.

submitted a Responsive Offer for a similar requirement within the last three years;included in the Organization’s database of registered Vendors, including any existing supplier listspreviously defined for the commodity or service requested for the goods, works or services requiredsince the previous solicitation for the requirement; orresponded to a call for interest.

502.9.5 Limited Sources--text

When the Buyer is unable to identify at least three Vendors which may be in a position to provide the goods,works or services required and which meet the minimum commercial requirements, these circumstances mustbe documented as justification for inviting fewer than three Vendors.

502.9.6 Procurement through Public Tender--text

Generally, competitive procurement actions on behalf of the Organization are effected through solicitationsfor Offers to Vendors identified as provided above. However, the Buyer, in consultation with the Requesterand with the agreement of the Authorized Official, may make a determination on a case-by-case basis thatcompetitive procurement may be effected through public announcement requesting submission of Offers forthe supply of goods, works or services. Such public announcements may be used when circumstances permitthe additional time required and where the benefits of a public announcement would outweigh the advantagesof a targeted selection process based on the Buyer’s specialized knowledge (such as, of market structure andconditions or of specific Vendors’ technical capabilities, managerial capacities, performance history andfinancial viability). Public announcements may be effected through any means deemed by the Buyer to beappropriate for the specific procurement action for the purpose of obtaining at least three Responsive Offers,while maintaining the Organization’s standards of transparency, fairness and impartiality.

502.10 Evaluation Criteria and Evaluation Methodologies

502.10.1 Establishment and Approval of Evaluation Criteria and Methodology--text

Evaluation criteria for Bids and Proposals, as well as the methodology to be used for evaluation and anyweighting or threshold or mandatory requirements to be assigned to the evaluation criteria, will beestablished by the Requester and the technically-competent unit(s) or officer(s), and reviewed and acceptedby the Buyer prior to the issuance of the ITB or RFP. The proposed evaluation criteria and methodology shallaim to ensure selection of the vendor who offers best value for money to the Organization.

502.10.2 Evaluation Criteria for Quotations--text

Evaluation criteria for Quotations are based on the lowest priced Quotation meeting requirements.

502.10.3 Evaluation Criteria for Bids--text

Evaluation criteria for Bids are established to identify the "lowest cost, technically and commerciallyacceptable" Offer, i.e. the Bid which substantially conforms to the requirements set forth in the SolicitationDocuments and is evaluated to be the "best value for money" to the Organization. In cases where cost willnot be the sole evaluation criterion, the evaluation may also include objectively measurable non-price criteria(e.g., delivery date, length of product warranties and quantifiable variations from technical specifications,such as moisture content), but cost should have a least an 80% weight.

502.10.4 Evaluation Criteria for Proposals--text

Evaluation criteria for Proposals are established to identify the Offer considered to provide the "best value for


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a. b.

c.

d.

e.

money" to the Organization, i.e. the Proposal offering the greatest overall benefit in response to therequirements described in the Solicitation Documents. The relative influence of the financial proposal on theoverall evaluation will be no less than 20%. Evaluation criteria for the technical proposal may include interalia the completeness of the proposal, the effectiveness of the proposal in meeting the technical requirements,competency in terms of managerial and technical capabilities and performance history, as well as financialviability and capacity to perform without risk of default. Consideration can be given to including Vendorpresentations in the weighting of the evaluation, however, in general, the Vendor presentation should notimpact the overall evaluation criteria by more than 10% of the total weight.

502.10.5 Evaluation Methodologies--text

The choice of evaluation methodology will be determined by the type, value and complexity of theprocurement requirements. The methodology chosen may foresee using price as a sole criteria or assigningabsolute points or relatives weights to evaluation criteria to determine the lowest priced, most technically andcommercially acceptable Responsive Offer (ITBs) or the highest ranking Proposal (RFPs). The evaluationmethodology and criteria, including any mandatory criteria, to be used for the evaluation will be set forth inthe Solicitation Documents. Only the methodology and criteria stated in the Solicitation Documents, will betaken into account during the evaluation and all criteria will be applied equally to all offers.

502.10.6 Review Requirements--text

The evaluation criteria and evaluation methodology for RFPs are subject to review by the appropriateProcurement Committee depending on the expected value of the procurement action (see Appendices and C2

).D2

502.11 Contents of Solicitation Documents

502.11.1 Solicitation Documents--text

For ITBs and RFPs, the Buyer is responsible for preparing the formal invitation to invited Vendors whichconsists of the documentation necessary to fully describe the requirements of the procurement action, as wellas the procedures for submission of Offers ("Solicitation Documents"). The Authorized Official isresponsible for ensuring that the Solicitation Documents meet the requirements of this Manual Section. ForQuotations requested in writing, a clear description of the goods, works or services required is adequate.

502.11.2 Solicitation Documents for ITBs--text

Solicitation Documents for ITBs must contain the following:

detailed, clear and complete specifications for the goods, works or services to be procured;commercial requirements, including payment terms, and as applicable, quantities of goods or bill ofquantities for works and delivery terms or timetable for performance;a request that Vendors provide costs of freight, insurance, installation or other ancillary services, whereapplicable;an indication that the Organization will award the tender on the basis of the "lowest priced, mosttechnically and commercially acceptable" Responsive Offer received; andif applicable, a clear indication of the objectively measurable non-price criteria that will be consideredin evaluating the Bids (e.g. acceptable deviations from technical specifications, delivery date, warrantyperiod), the methodology that will be used and relative importance of each criterion.

502.11.3 Solicitation Documents for RFPs--text

Solicitation Documents for RFPs must contain the following:


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a.

b.

c. d.

e.

1. 2. 3. 4.

5.

6.

7.

specifications for the goods, works or services to be procured which provide sufficient information topermit Responsive Offers;commercial requirements, including payment terms, and as applicable, quantities of goods or bill ofquantities for works and delivery terms or timetable for performance;a request for any other information necessary to evaluate the Proposal;an indication that the Organization will award the tender to the Vendor offering the "best value formoney"; anda clear indication of all criteria that will be considered in evaluating the Proposal, the methodology thatwill be used and the importance of each criterion.

502.11.4 Other Requirements--text

Solicitation Documents, whether for ITBs or RFPs, must also include:

clear and complete instructions regarding the procedures for submission of the Offers;the closing date for receipt of the Offers;a statement regarding the acceptability of partial offers, if appropriate;the Organization’s terms and conditions or draft contract applicable to the specific procurementactivity, together with a request that the invited Vendor indicate, as part of its submission, acceptancein writing of the terms and conditions or draft contract or specify any requested deviations;a statement of the Organization’s applicable tax exemptions and that all Offers should be submittedexclusive of any tax and duties;a clear statement that prior to the closing date, no communication between the invited Vendors and theOrganization is permitted except with the Buyer in writing or as otherwise specified in the instructions;anda request that invited Vendors inform the Organization of their reasons for not submitting an Offer, ifapplicable.

502.11.5 Samples--text

If samples of goods offered are required as part of the evaluation, the Solicitation Documents must state thequantity, size and other detailed specifications for the required goods, as well as a description of the tests thatwill be applied. The Solicitation Documents will also clearly state that samples will be provided free ofcharge, that they are usually not returnable, but may be returned upon request at the expense of the Vendor in"as-is" condition.

502.11.6 Meetings with Invited Vendors--text

Solicitation Documents may provide for meetings with invited Vendors, such as site visits/surveys orso-called "bidders’ conferences", so that invited Vendors may gain a better understanding of the specificrequirements. The Solicitation Documents will include instructions for the arrangement of any meetingsforeseen.

502.11.7 Presentations by Vendors Submitting Offers--text

If presentations by Vendors submitting an Offer are foreseen as part of the evaluation process, the proceduresand timing of such presentations will be specified in the Solicitation Document.

502.12 Transmission of Solicitations and Submission of Offers

502.12.1 Request for Quotations--text


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a.

b. c.

Quotations may be requested verbally (including by telephone) or through consultation of price lists viacatalogue, Internet, or other media. The Quotation that is the basis for the award must be documented bywritten confirmation from the Vendor or a copy of the published price list. The Buyer must also document allQuotations obtained (including any not confirmed in writing), the sources from which such Quotations wereobtained and any other relevant information.

502.12.2 Transmission of Solicitations for Bids and Proposals--text

Solicitation documents for ITBs and RFPs will be sent simultaneously to all invited Vendors by any meanswhich provides confirmation of receipt (including but not limited to registered letter, courier, facsimile,e-mail, e-tendering, etc.). In cases where it is considered expedient, documents may also be transmitted fordelivery through the relevant Field Project Officer, FAO Representative or other UN Entity representative foronward delivery to the invited Vendor(s). It is the responsibility of the Buyer to determine the method oftransmission, taking into consideration the circumstances of the specific procurement action and the objectiveof providing all invited Vendors with a substantially equal opportunity to respond.

502.12.3 Contact with Invited Vendors--text

During the solicitation period, the Buyer is the Organization’s sole point of contact for invited Vendors,except in cases where the Solicitation Documents provide for meetings with invited Vendors. Allcommunication with invited Vendors during the solicitation period will be documented.

502.12.31 . If additional information or clarification is requestedVendor Requests for Additional Informationby one of the invited Vendors, the same information or clarification will be made available to all invitedVendors. The Buyer will prepare and dispatch written replies to Vendors’ queries, and make all repliesknown, together with the text of the queries, to all Vendors, without disclosing the source of the queries.

502.12.32 :Examples of information that can be released to all invited Vendors include

Additional information and/or clarification relative to specifications, a statement of work or otherprovisions;Opinions on whether an alternative item is acceptable;General information regarding Organization’s Bid and Proposal opening procedures.

502.12.33 . If it becomes necessary before the closing date to modifyAmendment of Solicitation Documentsthe Solicitation Documents in any way, an amendment will be issued to all invited Vendors. The Buyer willevaluate whether sufficient time remains for invited Vendors to consider the amended SolicitationDocuments. If the remaining time is not considered sufficient, the Buyer may also extend the closing date. Ifthe Buyer determines that the modifications of the Solicitation Documents represent a substantial change inthe Organization’s requirements, the solicitation will be cancelled and re-issued based on the newrequirements.

502.12.34 . Where the Solicitation Documents provide for meetings betweenMeetings with Invited Vendorsinvited Vendors and the Organization prior to the closing date, the Buyer will determine whether a Buyerrepresentative should be present during the proceedings. It is the joint responsibility of the Organizationpersonnel who participate in meetings with invited Vendors to produce a record of the proceedings.

502.12.4 Closing Date for Submission of Offers--text

The closing date for the submission of Bids and Proposals will be determined by the Buyer in consultationwith the Requester, taking into account the delivery requirements, the complexity of the procurement activity,the urgency of the request in connection with Emergency Situations or Exigencies and the need to provideVendors with adequate time to prepare an Offer and submit an Offer. Requests by Vendors to extend the


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a. b. c. d.

closing date for submission of Bids and Proposals may be considered and granted by the Buyer afterconsultation with the Requester. The Buyer, in consultation with the Requester, may also extend the closingdate for submission of Offers if deemed appropriate to permit invited Vendors to submit Responsive Offers.Extensions of the closing date are permitted only when the extension is not considered to disadvantage anyinvited Vendor and when it is feasible to notify all invited Vendors of the extension. Under no circumstancesmay the closing date be changed to an earlier date.

502.12.5 Cancellation of the Solicitation--text

It may become necessary to cancel the solicitation prior to the closing date, for example, if the goods, worksor services are no longer needed, the requirements change substantially, funding is no longer available orcontinuation of the solicitation is no longer in the best interests of the Organization. In this case the Buyerwill notify all invited Vendors that the solicitation has been cancelled, as well as document the reasons for thecancellation. Any Offers already received at the time of cancellation will be returned or destroyed, in whichcase the Vendor will be notified. The relevant action will be appropriately documented.

502.12.6 Methods of Submission for Bids and Proposals--text

It is the responsibility of the Buyer to determine the method(s) according to which Bids and Proposals mustbe submitted by invited Vendors and to provide clear instructions in the Solicitation Documents. Thesubmission method comprises the means of submission (e.g. registered mail, courier, facsimile, e-mail withattachments, electronic file transfer), specification of the consignee, as well as any requirements regardingform or markings.

502.12.7 Open Submissions--text

An Open Submission is a submission made according to any method which does not restrict Buyer access tothe contents of the Offer pending the closing date of the solicitation. The Buyer must, however, ensure thatthe submission method meets the following requirements:

all invited Vendors are provided with a suitable means for submitting their Offers;the time and date of receipt can be documented;upon receipt, access to the contents of Offers can be restricted so as to maintain confidentiality; andin the case of Proposals, the contents of the technical proposal can be accessed for evaluation whilemaintaining the confidentiality of the financial proposal

502.12.8 Sealed Submissions--text

For procurement actions with an expected value in excess of the thresholds set forth in for aAppendix ESealed Submission, the Buyer must ensure that, in addition to the requirements for Open Submissions setforth in Manual para. above, the submission method specified will, pending the opening, permit no502.12.7access to the contents of the Offer or, in exceptional circumstances, permit access only to designatedpersonnel not in any way involved in the procurement or evaluation process (see Manual para. 502.12.9below).

502.12.9 Safeguarding of Submissions--text

For Open Submissions, the Buyer is responsible for ensuring that submissions received are kept securely toensure their confidentiality pending the closing date of the solicitation. For Sealed Submissions, the Director,CSA, or the Authorized Official at Non-HQ Locations will designate the personnel responsible forsafeguarding submissions received and ensuring their confidentiality until the stated opening date and time.For all submissions received, the Buyer or the designated personnel will register the name of the Vendor, thetime and date of receipt, and any proof of transmission, delivery or receipt.


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a.

b. c.

d.

e.

f.

a. b. c. d.

e.

502.13 Opening and Recording of Offers

502.13.1 Opening and Recording Procedures--text

The Director, CSA or the Authorized Official at Non-HQ Locations is responsible for establishing proceduresfor the opening and recording of Sealed Submissions, as well as for the composition and Terms of Referenceof an Opening Panel. The Buyer is responsible for establishing procedures for the recording of OpenSubmissions. The procedures must:

provide a means to verify that confidentiality of the Offers submitted has been maintained, that Offercontents have not been tampered with, and that submission was in accordance with the instructionsspecified in the Solicitation Documents;ensure that financial offers cannot be modified;ensure that the confidentiality of the opening and/or recording proceedings is maintained asappropriate;for Proposals, ensure that the confidentiality of the financial proposal can be maintained pendingevaluation of the technical proposal;require a record of the invited Vendors, the dates and times of receipt of Offers or other replies, if any;the validity of the Offers received and any other relevant observations, including documentation of anylate Offers, unsolicited submissions or revalidated Offers (see Manual para. below); and502.13.6for Sealed Submissions, require a record of the date and time of the opening and the persons present,and stipulate that the record of the opening, as well as the Offers received, be forwarded to the Buyer.

502.13.2 Opening Panel--text

The selection of Opening Panel members should aim to assure the impartiality of the Panel and must providefor participation by a representative of the Buyer, either as a Panel member or as an observer.


It is the responsibility of the Opening Panel to open and record Sealed Submissions and of the Buyer torecord Open Submissions in accordance with the established procedures.

502.13.4 Electronic Opening--text

The Opening Panel may be substituted by an electronic means of submission and opening which has beenapproved by the Director, CSA at HQs or by the Authorized Official at Non-HQ Locations and whichguarantees the minimum procedural requirements listed in Manual paras and above.502.12.8 502.13.1

502.13.5 Public Opening--text

The Director, CSA or the Authorized Official at Non-HQ Locations may deem it appropriate to provide forpublic opening of submissions for certain ITBs or RFPs and will establish relevant procedures. TheSolicitation Documents will inform invited Vendors that submission will be opened publicly, the time andplace of the opening and whether the contents of Offers received will be announced. A public opening shouldtake place as soon as possible after the deadline for the receipt of Offers. Public opening procedures willinclude:

designation of a submission opening official;Vendor attendance and any other attendee conditions and requirements;opening sequence and recording requirements;rules of conduct for the submission opening official and role of attendees; and


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e.

a. b. c.

d.

publication of information relating to the Offers.

502.13.6 Invalid Offers--text

Offers received late or otherwise not in accordance with the specified instructions or unsolicited submissionswill be declared invalid and documented in the record of the opening. The Buyer, in the case of an OpenSubmission, or the Opening Panel, in the case of a Sealed Submission and upon the request of the Buyer orthe Requester, may consider revalidation of an invalid Offer where circumstances justify. Justification forrevalidation of an Offer originally declared invalid must be documented.

502.13.61 . Offers received after the closing date indicated in the Solicitation Documents may beLate Offersrevalidated, provided that: (i) it is clear that the Offer was sent sufficiently in advance of the closing date andthe delay in delivery under normal circumstances could not be reasonably foreseen; and (ii) there is noindication that confidentiality has been, or may have been, compromised.

502.13.62 . An Offer received from a Vendor not invited to submit an Offer may beUnsolicited Submissionsrevalidated provided that:

it complies with the requirements of the Solicitation Documents;it is received from a Vendor who is replacing one of the invited Vendors;the invited Vendor confirms having forwarded the Solicitation Documents, indicating the reasons andany relationship with the Vendor submitting the unsolicited Offer; andthe Buyer deems the Vendor submitting the unsolicited submission to be in a position to supply, basedon an assessment of both the invited Vendor and the Vendor submitting the unsolicited Offer inconsideration of, for example, demonstrated technical competence, experience, financial soundness andpast performance.

502.13.63 . Offers submitted on time but in a manner not conforming to the instructions indicated in theOtherSolicitation Documents may be revalidated provided that there is no indication that confidentiality has been,or may have been, compromised.

502.14 Evaluation of Offers

502.14.1 Objectives--text

In accordance with the principles governing the Organization’s procurement activities, evaluation of Offerswill be carried out to obtain Best Value for Money in the fulfillment of Organization requirements. Theevaluation process will be transparent while maintaining appropriate confidentiality, and the evaluation willbe fair, reasonable, objective and in accordance with the established evaluation criteria and evaluationmethodology specified in the Solicitation Documents. All steps in the evaluation of Offers will beappropriately documented.

502.14.2 Responsibilities--text

Evaluation of Offers is the shared responsibility of the Buyer and the Requester, assisted by personnel fromthe technically-competent unit(s) or officer(s), if applicable. All personnel involved in evaluation of Offerswill maintain the transparency, fairness and confidentiality of the evaluation process.

502.14.21 . The Buyer is responsible for the commercial evaluation of Offers received,Buyer Responsibilitiesconfirmation of Responsive Offers (see Manual para. below), as well as for the final502.14.4recommendation to the Authorized Official for award. The Buyer is also responsible for determining whetherthe identity of the Vendors should be made known to the Requester prior to a final recommendation for


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award. In making this determination, the Buyer may consider, inter alia, the value of the procurementactivity, the urgency of the requirement particularly with respect to Emergency Implementation and the riskof introducing bias in the evaluation process.

502.14.22 . In the case of an ITB, the Requester is responsible for providing theRequester ResponsibilitiesBuyer with an assessment of Offers received, for review of the commercial evaluation and for clearance ofthe recommendation for award. In the case of an RFP, the Requester is responsible for providing the Buyerwith a technical evaluation and ranking of Proposals, for review of the commercial evaluation and forproviding the Buyer with a consolidated ranking of the Proposals based on both the technical and commercialevaluations.

502.14.3 Contact with Vendors during Evaluation--text

During the evaluation, the Buyer is the Organization’s sole point of contact with Vendors for requests foradditional information or clarification, except in cases where the Solicitation Documents provide forpresentations with Vendors who have submitted Offers as provided for in Manual para. .502.11.7

502.14.4 Responsive Offers--text

The Buyer will review the technical assessments of the Offers to ensure that the assessment is based on thecriteria specified in the Solicitation Documents. Taking into consideration the assessment provided by theRequester, the Buyer will identify as Responsive Offers the Valid Offers that materially conform to thetechnical specifications contained in the Solicitation Documents and any mandatory requirements("Responsive Offer"). In cases where a Valid Offer is not considered to be a Responsive Offer, the Buyer willinform the Requester and document the basis for this determination.

502.14.5 Evaluation Panel--text

The Requester may establish an Evaluation Panel to assist in the evaluation of Offers. Establishment of anEvaluation Panel is generally considered best practice with respect to evaluation of Proposals. The EvaluationPanel should include, representation from the technically-competent unit(s) and to the extent possible, otherunits having an interest in the goods, works or services under consideration. The composition andproceedings of the Evaluation Panel will be included in the documentation supporting the evaluation. Panelmembers will be held to the same standards of ethics and requirements for confidentiality as other personnelinvolved in procurement activities (see Manual para. – Procurement Ethics).502.5

502.14.6 Evaluation of Quotations--text

For Requests For Quotations, the Buyer will recommend award on the basis of the lowest priced Quotationmeeting requirements. The Quotation that is the basis for the award must be documented by writtenconfirmation from the Vendor or a copy of the published price list. If fewer than three Quotations wereobtained, the Buyer will document the reasons for not obtaining three Quotations.

502.14.7 Evaluation of Bids--text

Evaluation of Bids is based on an assessment of conformity to specifications and a commercial evaluationbased on the established evaluation criteria and evaluation methodology. The Buyer will recommend awardto the Vendor who submitted the Bid considered to provide the "best value for money" to the Organization,i.e. the Responsive Offer evaluated to be the "lowest priced, most technically and commercially acceptable."

502.14.71 . The Buyer will provide to the Requester the non-financial informationAssessment of Bidscontained in the Bids for review. The Buyer will determine whether to concurrently release to the Requesterthe financial information contained in the Bids. In making this determination, the Buyer may consider, inter


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a.

b.

a.

b. c.

d.

alia, the value of the procurement activity, the urgency of the requirement particularly with respect toEmergency Implementation, and the risk of introducing bias in the evaluation process. The Requester willprovide, or obtain from the technically-competent unit(s) or officer(s), or from an Evaluation Panel, asapplicable, an assessment of whether each Bid materially conforms to the specifications contained in theSolicitation Documents. The Requester will document the assessment and will provide the Buyer with thefollowing:

a list of Bids which do not conform to the specifications contained in the Solicitation Documents andthe basis for this determination; andany other relevant information or considerations.

502.14.72 . The Buyer will identify Responsive Offers, taking into consideration theCommercial Evaluationassessment provided by the Requester, and any mandatory requirements and will prepare a commercialevaluation of the Responsive Offers in accordance with the evaluation criteria and evaluation methodologyindicated in the Solicitation Documents. The Buyer will prepare the recommendation(s) for award andconfirm the commercial suitability of the recommended Vendor(s). The Buyer will provide the Requesterwith the commercial evaluation, the financial information contained in the Bids (if not provided previously)and the proposed recommendation(s) for award to obtain clearance from the Requester.

502.14.8 Evaluation of Proposals--text

The evaluation process for Proposals begins with the evaluation of the technical proposals. Only after thetechnical proposals have been evaluated and ranked by the Requester and reviewed and accepted by theBuyer will the financial proposals be reviewed and a consolidated evaluation prepared. The Buyer willrecommend award to the Vendor who submitted the Proposal considered to provide the "best value formoney" to the Organization, i.e. the Responsive Offer evaluated to offer the greatest overall benefit inresponse to the requirements.

502.14.81 . The Buyer will forward the technical proposals received to theEvaluation of Technical ProposalsRequester for evaluation. The Requester will provide or obtain from the technically-competent unit(s) orofficer(s), or from an Evaluation Panel, as applicable, an assessment of whether each Proposal materiallyconforms to the specifications contained in the Solicitation Documents, as well as a technical evaluation andranking of the proposals based on the established evaluation criteria and methodology. If the evaluationcriteria foresee presentations, evaluation of these presentations will also be included in the final ranking ofthe technical proposals. The Requester will document the assessment and the technical evaluation andranking and will provide the Buyer with the following:

a list of Proposals which have been assessed to materially conform to the specifications contained inthe Solicitation Documents;a ranking of the Proposals listed in (a) above, based on the technical evaluation criteria;a list of Proposals that do not conform to the specifications contained in the Solicitation Documentsand the basis for this determination; andany relevant documentation or information.

502.14.82 . The Buyer will review the evaluation of the technicalReview of the Technical Evaluationproposals submitted by the Requester to verify the correct application of the established technical evaluationcriteria and methodology. If the Buyer cannot confirm the correct application of the technical evaluationcriteria and methodology, the evaluation will be returned to the Requester for review, revision andre-submission to the Buyer.

502.14.83 . Once the correct application of the established technicalEvaluation of Financial Proposalsevaluation criteria and methodology has been verified, the Buyer will arrange for the opening only thosefinancial proposals related to the technically responsive proposals.. The Buyer will prepare a commercial


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a.

b. c.

a.

b.

c.

evaluation of the financial proposals and will provide both the evaluation and the financial proposals to theRequester.

502.14.84 . The Requester will review the financial proposals and the commercialConsolidated Evaluationevaluation and prepare a consolidated evaluation of the technical and financial proposals in accordance withthe established evaluation criteria and methodology. Based on the consolidated evaluation, the Requester willmake a recommendation for award to the Buyer which will include the following:

a consolidated ranking of Proposals which have been assessed to materially conform to thespecifications contained in the Solicitation Documents;a recommendation for award and the basis for award; andany relevant documentation or information.

502.14.85 . The Buyer will review the consolidated evaluation forReview of the Consolidated Evaluationcompleteness and correctness and will obtain from the Requester any necessary additional information orclarifications. The Buyer will review the echnical evaluation and ranking, will confirm the commercialsuitability of the recommended Vendor(s) and prepare the recommendation(s) for award. In caseswhere therecommendation of the Buyer differs from that of the Requester, the Buyer will inform the Requester of thereasons and will obtain final clearance for the recommendation from the Requester.

502.14.9 Evaluation Options--text

For solicitations which permit the grouping of multiple items or distinct services, and/or which involvemultiple destinations or service locations and permit offers for single or groups of items, services ordestinations/locations, the Buyer may elect to evaluate Offers on the basis of an individual item, service ordestination/service location; on the basis of subsets of items, services or destinations/service locations; or onthe basis of all items or services and/or destinations/service locations together. In making such adetermination, the Buyer should ensure that the interests of the Organization are best served, considering notonly the direct costs for the goods, works or services, but also the operational costs associated with theissuance and administration of multiple orders or contracts.

502.14.10 Partial Quantity Offers--text

In cases where the solicitation does not specifically exclude partial quantity offers and where thehighest-ranked Vendor submitted an Offer for less than the entire quantity of goods, works or servicesrequired, the Buyer may elect to split the total requirement among the highest-ranked Vendors who submittedResponsive Offers, successively exhausting the quantities available in accordance with the Vendor rankinguntil the requirement has been fulfilled. However, should a single lower-ranked Vendor or a group oflower-ranked Vendors be in a position to supply the entire requirement, the Buyer may determine thatrecommending award to other than the highest-ranked Vendor(s) is in the best interests of the Organization,because:

it represents the most cost-effective option, based on an analysis of not only the direct costs of thegoods, works or services, but also the incremental operational costs associated with the issuance andadministration of multiple orders or contracts;it is considered to be the most appropriate and/or lowest-risk means to fulfill a requirement associatedwith an Emergency Situation or Exigency, notwithstanding the higher direct costs; orit is considered to maintain a more equitable balance between the quantities requested in the originalsolicitation and the Offers received.

502.14.11 Incomplete Bids and Proposals--text

During the evaluation process, it may become apparent that additional information is required to evaluate one


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a.

b.

c.

or more Offers. The Buyer may request one or more Vendor(s) to submit the additional information afterconsidering the number of Responsive Offers received, the potential delay associated with a request foradditional information for procurement activities undertaken in connection with Emergency Implementation,the recommendation of the Requester and whether solicitation of the Vendor(s) to submit the requiredinformation is in line with a transparent and fair process. Vendor responses can be sent directly to the Buyer,who will forward them to the Requester. If the additional or clarifying information obtained impacts thefinancial evaluation, the Buyer may declare a mis-tender (see Manual para. ), may elect to exclude502.14.15the Offer(s) from the evaluation or to make use of the Best and Final Offer procedure as set forth in Manualpara. and will obtain the approval of the Authorized Official and notify the Requester of the502.15.6 decision.

502.14.111 . If the Solicitation Documents omitted to request requiredRequest for Additional Informationinformation or there is reason to believe that specification of the requirements may have been ambiguous, theBuyer may determine that it is appropriate to solicit the additional information, provided that the requestwould not negatively impact the transparency or fairness of the process and depending on such factors as thenature of the solicitation, the stage of the evaluation and the materiality of the impact, if any, on the financialevaluation. The Buyer will solicit the additional information from all Vendors who have submitted ValidOffers. If, however, the Buyer determines that the request would negatively impact the transparency orfairness of the process, the Buyer will decide whether the evaluation can proceed without the additionalinformation or whether to declare a mis-tender (see Manual para. ).502.14.15

502.14.112 . If the information required was requested in the SolicitationRequest for Clarifying InformationDocuments but (i) clarification of information provided is necessary to determine whether the Offer meets thetechnical specifications or (ii) it is necessary to clarify apparently minor deficiencies or clerical errors and itis not expected that such clarification will materially impact the financial evaluation (e.g. error or ambiguityin the Offer, such as confirmation of unit prices where there is an error in calculation of total costs), therequired clarifying information will be solicited from the relevant Vendor or Vendors. The clarification to beprovided should not be used to cure proposal deficiencies or material omissions, or materially alter thetechnical or financial elements of the proposal. If the Buyer determines that the request would negativelyimpact the transparency or fairness of the process, the Buyer, in consultation with the Requester, will decidewhether the Offer of the Vendor or Vendor(s) should be considered non-responsive and eliminated from theevaluation process. All such requests will be in writing and properly documented in the respective file. Noinformation obtained from one Vendor will be shared with the other Vendors.

502.14.12 Vendor Request to Provide Additional Information--text

Modification of an Offer by the Vendor will not be accepted after the opening. The Buyer may, however,agree to accept additional or clarifying information from a Vendor prior to the final award provided that theadditional or clarifying information would not negatively impact the transparency or fairness of the process.Circumstances where acceptance of additional information may be considered include the following:

to rectify errors in totaling, whereby the unit prices quoted will govern, except in the case of apparentclerical errors in unit price;to furnish information requested in the Solicitation Documents but omitted in the submission whichdoes not affect the price or specifications (e.g. evidence of quality certification);to provide clarification of information furnished in the submission which does not affect the price ormaterially modify the specifications.

502.14.13 Confidentiality--text

Except where otherwise provided in connection with Public Openings (see Manual para. ), technical,502.13.5commercial, price and all other information relative to Offers must remain confidential during the evaluationprocess and may be disclosed only to Organization personnel involved in the evaluation process or other


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a. b. c.

d.

e.

persons appointed to the evaluation panel and only on a need-to-know basis.

502.14.14 Cancellation--text

If it becomes necessary to cancel the procurement action during the evaluation process because the goods,works or services are no longer needed, the requirements have changed substantially, funding is insufficientor no longer available or continuation of the solicitation is no longer in the best interests of the Organization,the Buyer will notify all Vendors who submitted an Offer that the solicitation has been cancelled, as well asdocument the reasons for the cancellation.

502.14.15 Mis-tenders--text

During the evaluation process, the Buyer or the Authorized Official may declare a mis-tender. In such cases,the Buyer will inform the Requester and the Authorized Official of the reasons for the decision, documentingthe reasons. The Buyer will also notify the Vendors who submitted Offers that a mis-tender has beendeclared. The Buyer will make a recommendation to the Authorized Official regarding the appropriate courseof action following a mis-tender which may include a new solicitation, direct negotiations, or any otherappropriate action. A mis-tender may be declared in, but is not limited to, the following situations:

no Responsive Offers have been received;all Responsive Offers are considered to be excessive in relation to normal market prices;the Buyer determines that a Contractual Instrument different from that anticipated in the SolicitationDocuments would better serve the interests of the Organization and that, to maintain transparency, newSolicitation Documents are required;it is determined that the Solicitation Documents did not provide the information required to allowVendors to submit Offers meeting the requirements of the Organization or to allow the Organization toequitably evaluate the Offers;it is ascertained that the distribution of the Solicitation Documents was not consistent with atransparent procurement process or did not allow invited Vendors adequate time to submit Offers.

502.15 Negotiations

502.15.1 Negotiations--text

Generally, negotiations are not undertaken after a competitive selection process, but may be used for DirectProcurement. However, in the interests of obtaining best value for money and without compromising thecompetitiveness of the solicitation process, negotiations may be undertaken after completion of theevaluation of Offers. Negotiations may be initiated by the Buyer or recommended by the Requester andundertaken at the discretion of the Buyer. The reasons for undertaking negotiations must be documented.When negotiations are undertaken requirements and quantities should not be changed substantially so as notto prejudice the transparency of the process (except as provided for in Manual para. (d) below). The502.15.6Buyer must determine whether modifications to requirements or quantities would require cancellation of thesolicitation and initiation of a new one. If more than one Vendor is involved in a negotiation, no Vendor mustbe provided any information with respect to the chances of award or otherwise be given an unfair advantage.

502.15.2 Negotiation Methods--text

Negotiations may take the form of direct discussions between the parties ("Direct Negotiations" see Manualpara. ) or through a unilateral written request by the Buyer to improve specific aspects of an Offer502.15.3("Best and Final Offer" see Manual para. below) or both. The negotiation method chosen will502.15.6depend on the solicitation method, the number of Vendors involved as well as the reason for undertakingnegotiations.


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a. b.

c.

d.

e.

502.15.3 Direct Negotiations.--text

Direct Negotiations are discussions between the parties conducted in person, via video or audio conference,or through other means, including telephone, e-mail and facsimile. Direct Negotiations will be conducted bythe Buyer, who may invite the Requester, as well as representatives of technically-competent unit(s) orofficer(s). All participants representing the Organization will be responsible for ensuring that the terms andconditions are fair and acceptable and that the Organization’s best interests have been fully served. TheBuyer is responsible for keeping a record of all discussions relative to Direct Negotiations.

502.15.4 Application of Direct Negotiations--text

Direct Negotiations are generally used in the case of Direct Procurement or an RFP and conducted only withthe Vendor whose Proposal was ranked highest in the consolidated evaluation. The objective of the DirectNegotiations may be to seek improvements in both the technical and financial aspects of the Offer or toclarify specifications or application of terms and conditions (e.g. qualifications made by the invited Vendors,questions arising from ambiguities in the Solicitation Documents and changes in the commercial terms orpayment conditions in the Offer). All negotiations will be carried out with a view to maintaining theconfidentiality of the Offers received.

502.15.5 Conduct of Direct Negotiations--text

All discussions relative to Direct Negotiations will be conducted within the Organization’s premises, either inperson or through electronic means, including telephone, e-mail and facsimile. In exceptional circumstances,at the discretion of the Authorized Official, negotiations may be undertaken at the premises of the Vendor. Insuch cases, the persons representing the Organization will be given a letter of instruction cleared by theRequester concerned and signed by the Authorized Official setting out the extent of any delegated authorityfor the negotiations. Vendors participating in negotiations must be advised that such negotiations do notrepresent any obligation on the part of the Organization with respect to final award, that any proposed termsand conditions tentatively agreed to during negotiations will not represent any final commitment on the partof the Organization. Any travel of Vendor representatives in connection with negotiations will be at theVendor’s expense.

502.15.6 Best and Final Offers--text

The Best and Final Offer ("BAFO") method should be used judiciously so as not to unduly affect thetransparency of the procurement action, nor to prejudice future dealings with Vendors. BAFOs may beappropriate for either ITBs or RFPs. The Buyer may request a single Vendor to submit a BAFO in caseswhere there is a significant difference between the highest ranked Offer and the other Responsive Offers or itis the only Responsive Offer received. Where Responsive Offers have been received with similar rankings,the Buyer may request multiple Vendors to improve their Offers. BAFOs can be used when:

the Offer(s) exceed(s) the planned or available budget;the Offer(s) contain(s) additional equipment or services that were not required in the SolicitationDocument;the Requester notifies the Buyer of a modified requirement for higher quantities than those indicated inthe Solicitation Documents which could result in a lower unit price including for procurement activitiesbased on Reuse of Tender Results (see Manual para ) ;502.16.5the Buyer has reason to expect that improvement in one or more aspects of the Offer(s) could beobtained; or use of BAFOs is standard market practice for the goods, works or services to be procured.

502.15.7 Application of Best and Final Offers--text


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a.

A BAFO must be conducted in accordance with the following procedure:

502.15.71 The Buyer will compile a short list of Vendors to be invited to submit a BAFO. The short list willbe composed of those Vendors whose Offers were ranked highest. If there is a significant economic orqualitative difference between the highest ranked Vendor and the other Vendors, the short list may also belimited to only the highest ranked Vendor.

502.15.72 The Buyer will request the short-listed Vendors to improve specific aspects of the Offer, eithertechnical, commercial or both, and to submit a revised Offer by a specified date according to the samesubmission method set forth in the Solicitation Documents. When a single Vendor is requested to submit arevised Offer, the revised Offer may be submitted directly to the Buyer in any manner specified by the Buyer.

502.15.73 All requirements, guidelines, documents, clarifications or other information communicated will becommunicated on an equal basis in writing to all Vendors requested to submit a BAFO. To ensure theintegrity and fairness of the process, the Buyer will in general not make more than one request for a BAFO toany one Vendor for a given procurement action, except in cases where multiple requests for revised offers isstandard market practice for the goods, works or services to be procured (e.g. so-called "reverse auctions").The Buyer will take appropriate measures to ensure that information related to the BAFO remainsconfidential.

502.15.74 The Buyer will inform the Authorized Official in cases of requests for BAFOs to more than oneVendor where the solicitation and submission method is a Sealed Offer.

502.15.75 The request for BAFOs may only permit Vendors to improve their Offers (e.g., to lower costs,prolong warranties, give additional discounts, shorten delivery times, etc.). Vendors will be informed thatthey may decline to improve the original Offer and that such decision will not disqualify the original Offer.

502.15.76 The Buyer is responsible for documenting any modifications to the recommendation resulting fromBest and Final Offers.

502.15.8 Confidentiality--text

Technical, commercial, price and all other information relative to all negotiations with Vendors must remainconfidential and may be disclosed only to Organization personnel involved in, or other persons nominated toparticipate in, the negotiation process and only on a need-to-know basis.

502.16 Awards

502.16.1 Award Basis--text

The number and type of Quotations or Responsive Offers that are obtained and included in the evaluationdetermines the basis for the recommendation for award ("Award Basis"). The Award Basis may beCompetitive, Exceptional, Direct Procurement or UN (see Manual paras. below).502.16.11-4

502.16.11 . In cases where at least three Quotations or Responsive Offers were obtained,Competitive Awardand the recommendation for award is made in accordance with Manual paras. – Evaluation of502.14.6Quotations, – Evaluation of Bids or – Evaluation of Proposals, the award basis is502.14.7 502.14.8considered to be competitive ("Competitive Award").

502.16.12 . In the following cases, a recommendation for award is considered to beExceptional Awardexceptional ("Exceptional Award"):


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a.

b.

c.

a.

b.

a.

the recommendation for award is not made in accordance with Manual paras – Evaluation of502.14.6Quotations, – Evaluation of Bids or – Evaluation of Proposals, regardless of the502.14.7 502.14.8number of Quotations or Responsive Offers obtained;fewer than three Quotations or Responsive Offers were obtained and the Buyer determines that there issufficient justification to proceed with recommendation of the award on the basis of the Offer(s)received; orthe recommendation for award is considered a deviation from this Manual Section in accordance withManual - Deviations. 502.22

502.16.13 . In cases where the Buyer determines, in accordance with Manual para. Direct Procurement 502.17- Direct Procurement, that a competitive solicitation procedure is not possible or feasible or would notefficiently and effectively meet the interests and objectives of the Organization, recommendation for awardwill be made on the basis of Direct Procurement.

502.16.14 . In cases where procurement is made in accordance with the provisions of ManualUN Awardpara. Cooperation with Other UN Entities, the award basis is considered to be a UN Award. A UN502.18.1 -Award is applicable to awards based on the results of a joint solicitation (Manual para. ), re-use of a502.18.11UN Entity solicitation (Manual para. ), use of the terms and conditions of an existing UN Entity502.18.12contract or agreement (Manual para. ), procurement from a UN Entity (Manual para. ), or502.18.13 502.18.14Outsourcing to a UN Entity (Manual para. ).502.18.15

502.16.2 Multiple Awards--text

Where the evaluation was based on subsets of items, servics and/or destinations as provided for in Manualpara. and the Buyer recommends that more than one award be made for a given solicitation, the502.14.9,Award Basis must be determined for each evaluation and its associated award. In cases where at least threeQuotations or Responsive Offers were not obtained for all items or services included in the evaluated subset,the Award Basis must be determined separately by item, distinct service and/or destination or servicelocation. For those items, services and/or destinations of the evaluated subset for which fewer than threeQuotations or Responsive Offers were obtained, the recommendation for award is considered to be anExceptional Award.

502.16.3 Awards based on Partial Quantities--text

In cases where the highest-ranked Vendor is not in a position to supply the entire quantity of goods, works orservices required, the Award Basis for each recommendation for a partial quantity award depends on thenumber of Responsive Offers obtained and an evaluation of both the direct costs of the goods, works orservices as well as the associated operational cost.

502.16.31 . A recommendation for award is considered to be a Competitive Award whenCompetitive Awardat least three Responsive Offers were obtained and:

the recommendation is to award to the highest-ranked Vendors who submitted Responsive Offers,successively exhausting the quantities available in accordance with the Vendor ranking until therequirement has been fulfilled; orthe recommendation is to award to the Vendor(s) considered by the Buyer to provide the "best valuefor money" to the Organization on the basis of both direct and indirect costs, as provided for in Manualpara. (a).502.14.10

502.16.32 . A recommendation for award is considered to be an Exceptional AwardExceptional Awardwhen:


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a. b.

a.

b. c. d.

the recommendation for award is based on receipt of only two Responsive Offers; oraward is recommended to other than the highest-ranked Vendor(s) because the Buyer considers it to bethe most appropriate and/or lowest-risk means to fulfill a requirement associated with an EmergencySituation or Exigency, notwithstanding the higher direct costs, as provided for in Manual para.

(b).502.14.10

502.16.4 Distributed Awards--text

When the interests of the Organization would be best served, particularly to mitigate the risk ofnon-performance, the Buyer may, after undertaking a documented risk assessment, recommend that award ofrequired quantities of goods, works or services be distributed to two or more Vendors ("Distributed Award").The Award Basis for the award to the highest-ranked Vendor will be considered to be a Competitive Award,provided that at least three Quotations or Responsive Offers were obtained. The Award Basis forrecommendations for award to the highest-ranked Vendor where only two Quotations or Responsive Offerswere obtained and for all recommendations for award to other then the highest-ranked Vendor(s) will beconsidered to be Exceptional Awards.

502.16.5 Awards based on Reuse of Tender Results--text

In support of a more efficient use of resources, the Buyer may recommend reuse of the results of a previoussolicitation within twelve (12) months of the closing date to procure substantially the same goods, works orservices. Such procurement is considered to be based on a competitive process. The Award Basis for eachreuse of solicitation results will be determined to be a Competitive Award or an Exceptional Award based onthe nature of the reuse. Tender results may be used as an alternative to issuing a new solicitation only if:

the competitiveness of the solicitation was not unduly conditioned by an Emergency Situation orExigency, unless the reuse of the results is undertaken in similar circumstances;there has been no evidence of a substantial change in market conditions during the intervening period;substantially the same terms and conditions as the original Offer are confirmed by the Vendor;the quantity of the goods or the value of the works/services does not materially exceed that on whichthe relevant Offer was based or upon which a request for a BAFO was made (see Manual para.

).502.15.6

502.16.6 Disagreement on Award--text

In cases where the Buyer and the Requester disagree on the final recommendation for award after completionof the evaluation and any subsequent negotiations, the matter will be referred to the Authorized Official. Ifthe Requester disagrees with the recommendation of the Authorized Official, the matter will be referred tothe relevant Procurement Committee for advice. If the Authorized Official disagrees with therecommendation of the relevant Procurement Committee, the matter may be submitted to the Director, CSAfor final determination and, as relevant, approval.

502.16.7 Procurement Committee Review--text

Certain recommendations for award, depending on the Award Basis, value and contract term are subject toLPC and/or HQPC review, as set forth in and . Prior to submitting a recommendation forAppendices C2 D2award to the Authorized Official for approval, the Buyer will ensure that, for procurement actions subject toLPC review, a recommendation has been obtained, and for procurement actions subject to HQPC review, arecommendation has been obtained ex ante or, in Exigency or Emergency Situations, that ex post review, ifrequested, is permitted and justified. The Requester is responsible for preparing the HQPC submission andfor submitting it through the Buyer.

502.16.8 Approval--text


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After obtaining final clearance for the recommendation from the Requester and ensuring that anyProcurement Committee recommendation has been obtained or that ex post review is permitted and justified,the Buyer will finalize and document the basis for each award recommendation for submission to theAuthorized Official for approval in accordance with the delegation of authority limits set forth in Appendix

. The Authorized Official will not approve or sign any Contractual Instrument committing theB1Organization to the expenditure of funds without documented confirmation from the Budget Holder thatadequate funds for the procurement activity are available.

502.16.9 Review and Approval of Multiple Awards--text

In cases where the Buyer recommends more than one award against a given solicitation which group multipleitems or distinct services, and/or which involve multiple destinations or service locations, as provided for inManual para. , for purposes of determining HQPC review requirements, the value and the Award502.14.8Basis of each award will apply, unless the Award Basis was established separately by item, distinct serviceand/or destination or service location, as provided for in Manual para. ,above. In cases where the502.16.2Award Basis was established separately by item, distinct service and/or destination or service location, onlythe total value of those of items, distinct services, and/or destination or service location for which the AwardBasis is an Exceptional Award or Direct Procurement will determine whether the transaction exceeds theHQPC review threshold. LPC review will be based on the total amount of each award. For purposes ofdetermining delegation of authority limits for awards based on multiple items or distinct services, and/orwhich involve multiple destinations or service locations, the value of the total award to each Vendor willapply.

502.16.10 Review and Approval of Partial Quantity Awards--text

For purposes of determining Procurement Committee review requirements and delegation of authority limitsfor partial quantity awards, the value and the Award Basis of each award will apply.

50216.11 Review and Approval of Distributed Awards--text

For purposes of determining review thresholds and delegation of authority for Distributed Awards, theaggregate value of all Purchase Orders or Contracts so awarded will apply, regardless of the Award Basis.

502.16.12 Review and Approval of Awards Based on Reuse of Tender Results--text

For the purposes of determining review thresholds and delegation of authority limits, the Award Basis andthe aggregate value of all Purchase Orders or Contracts based on the results of a given solicitation, inclusiveof the new request, will apply.

502.16.13 Review and Approval of Framework Agreements--text

For purposes of determining Procurement Committee review requirements and delegation of authority limitsin the case of Framework Agreement Awards, the Award Basis and the total estimated value of procurementunder the agreement will apply. In the case of multiple Framework Agreements awarded for a givensolicitation, the total estimated value of procurement under all agreements awarded will apply.

502.16.14 Requests for Additional Authority--text

Ad hoc requests for additional financial authority will be made in advance of issuing the solicitation.However, where the expected value of the procurement action at the time of the solicitation did not exceedthe delegated authority of the Authorized Official, but the recommendation for the award(s) exceeds thedelegated authority of the Authorized Official, the Authorized Official must request additional Ad HocRe-delegated authority for the procurement action prior to proceeding with the award.


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502.16.15 Communication of Award Prior to Signature--text

In exceptional cases, the Director, CSA may, by e-mail or letter, authorize a Vendor to proceed withperformance of a Purchase Order or Contract prior to signature and issuance. In such cases, thecommunication will set out, to the extent possible, the essential terms and conditions of the formal PurchaseOrder or Contract which will subsequently be sent to the Vendor. Such communication may be sent onlywhen the availability of funds has been certified and provided that the Vendor has not requestedmodifications to the Organization’s terms and conditions.

502.16.16 Notification of Unsuccessful Vendors--text

The Buyer will ensure that unsuccessful Vendors are notified either directly or through publication, when it isdetermined that the successful Vendor(s) can perform.

502.16.17 Publication of Award--text

For public solicitations, the Buyer will determine the appropriate means for publication of the solicitationresults.

502.17 Direct Procurement


A competitive solicitation procedure is considered the standard for ensuring a fair, transparent and efficientprocurement process. Procurement may, however, be undertaken without competition ("Direct Procurement")when a competitive solicitation procedure is not possible or feasible or would not efficiently and effectivelymeet the interests and objectives of the Organization. The Buyer must exercise sound judgment in applyingany of the exceptions noted below and will ensure that in each case the justification for not seekingcompetitive offers is adequately documented.

502.17.2 Exceptions to Competitive Solicitation--text

The Buyer may obtain an Offer from or enter into negotiations with a single Vendor when the Buyerdetermines that one of the following situations applies:

502.17.21 . The goods, works or services can only be purchased from one sourceNo competitive marketplacebecause only one manufacturer and/or source exists including for procurement of spare parts directly fromthe manufacturer of existing equipment; the product or service is proprietary; or the product or service canonly be procured locally and is subject to a government authorized monopoly;

502.17.22 . The goods, works or services have a source of supply designated by theApproved standardizationOrganization at Organizational, regional, country or project level based on an approved standardizationwhich limits the procurement to only one Vendor (see Manual para. - Standardization); if multiple502.7.9 Vendors can fulfill the standardized requirement, competition must still be sought;

502.17.23 . Procurement actions within the threshold established for Very LowVery Low Value ProcurementValue Procurement (see may be effected by the Buyer without the necessity of obtainingAppendix E)competitive quotations when the goods or services are readily available on the market, the cost of the goodsor services is generally known and the Buyer determines that the price is reasonable. In determining pricereasonableness, the Buyer may consider results of previous competitive solicitations for similarinter aliagoods or services, the cost of undertaking a new solicitation, the public availability of price information andgeneral knowledge of the market. Requirements for documentation of the expenditure are limited to a


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a.

b.

a. b. c.

d. e.

description of the goods or services procured and written evidence of the price paid to support recording orreimbursement of the expenditure.

502.17.24 . An Exigency does not allow sufficient time to undertake a solicitation process, even onExigencythe basis of a shortened submission deadline;

502.17.25 . The procurement action is in connection with an Emergency Situation andEmergency Situationbecause of the nature or phase of the particular emergency, urgency of the procurement does not allowsufficient time to undertake a solicitation process, even on the basis of a shortened submission deadline;

502.17.26 . The proposed procurement is for the lease or purchase of realLease or purchase of real estateestate (see special considerations in Manual para. below);502.17.7

502.17.27 . Other cases in which a formal solicitation is not expected to give satisfactory results, suchOtheras:

when the proposed procurement relates to obtaining services that cannot be evaluated objectively, suchas certain creative or advertising services;when within a reasonable prior period (e.g. six months), one or more formal solicitations have notproduced satisfactory results.

502.17.3 Procedures for Direct Procurement--text

Direct Procurement will be effected in accordance with the procedures provided for in this Manual Sectiongoverning contact with Vendors. The Buyer may choose any method for obtaining Offers set forth in Manualpara. above regardless of the value of the procurement action. In cases where a Vendor is requested502.8.1to submit a written Offer, the submission requirements and procedures established for Open Submissionsmay be applied (see Manual para. above). The Buyer may undertake Direct Negotiations (see502.12.7Manual para. above) and may recommend award to the selected Vendor provided that the Offer502.15.3substantially conforms to the requirement and the price is acceptable to the Requester.

502.17.4 Review of Direct Procurement--text

Where the value of the procurement action exceeds the review threshold of the relevant ProcurementCommittee set forth in and , the Buyer will ensure that the recommendation hasAppendices C2 D2 ex antebeen obtained or that ex post review, if requested, in Exigency and Emergency Situations is permitted andjustified. Exempt from Procurement Committee review are requests for procurement actions:

in connection with an approved standardization already endorsed by the HQPC; for spare parts directly from the manufacturer of existing equipment;where the Vendor is a monopoly and the sole source authorized by the government for the relevantcountry;for the lease of real estate; orfor certain sole source or proprietary maintenance or licensing arrangements related to procurement ofequipment or software.

502.17.5 Approval of Direct Procurement--text

The Authorized Official may approve Direct Procurement, after review by the relevant ProcurementCommittee if required, in accordance with the delegated financial authority limits set forth in Appendix B1for any single procurement action. The total value of all procurement actions undertaken on the basis ofDirect Procurement from the same Vendor for essentially the same goods, works or services to satisfy asingle request or a series of related requests that could have reasonably been grouped together as a single


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request, will be considered a single procurement action for the purposes of applying the financialauthorization limit.

502.17.6 Exigency and Emergency Situations--text

In Exigency or Emergency Situations, the Buyer should consider whether it is feasible to procure throughDirect Procurement only those goods, works or services immediately required and fulfill the balance of therequirement through a competitive selection process, provided such action is acceptable to the Requester anddoes not unduly impinge on operational requirements and efficiency.

502.17.7 Special Considerations for Lease or Purchase of Real Estate--text

A Buyer may directly negotiate the lease or purchase of real estate when directly comparable propertymeeting the requirements is not available in the geographical area where it is required. The services of aqualified real estate broker or consultant may be considered to assist in the identification of suitable realestate and the establishment of the appropriate lease or sale price. In such cases, care must be taken that anycommissions or fees charged are consistent with those generally applied in the local market. When directlycomparable, suitable real estate is available (e.g. for commercial warehouse space, garage space, etc.), acompetitive solicitation process should be used. For purposes of applying the delegated authority limits setforth in , the value of the procurement action will be the annual lease cost, including any relatedAppendix B1fees and assessments, or, for leases with a term of less than a year, the total value of the lease, including anyrelated fees and assessments. A procurement action for the purchase of real estate must be cleared by,ex anteand conducted under the supervision of, the Director, CSA.

502.18 Cooperation

502.18.1 Cooperation with Other UN Entities--text

To further collaboration between UN Entities and in support of UN initiatives, an Authorized Official maydetermine that cooperation with other organizations, agencies or programmes of the United Nations system isappropriate to meet the procurement requirements of the Organization, provided any associated fees areconsidered reasonable for the service provided. Cooperation may be considered appropriate to, ,inter aliaobtain volume pricing or achieve process or operational efficiencies. Such cooperation may include carryingout joint procurement activities, relying on the procurement decision of another UN Entity, requestinganother UN Entity to carry out procurement activities on behalf of the Organization or procuring goods,works or services from another UN Entity.

502.18.11 . The Buyer may elect to undertake joint procurement activities with one or moreJoint SolicitationUN Entities, based on the estimated total value of a single or related series of planned procurement actions.Generally the cooperating organizations will choose one organization to lead the procurement process underthe procurement rules and regulations of that UN Entity. Cooperating UN Entities will jointly agree on theSolicitation Documents and evaluation criteria, and will jointly evaluate the offers submitted. The SolicitationDocuments should clearly specify the expected contractual form for effecting the procurement. JointSolicitations are subject to the review requirements of the lead UN Entity only, except in those cases wherethe applicable evaluation criteria or the resulting award differs from that of the Lead UN Entity. In the casewhere the Organization is the Lead UN Entity it may provide for representation by the other participating UNEntities on the relevant Procurement Committee responsible for reviewing the procurement activity.

502.18.12 . For a single or related series of planned procurement actions,Re-use of UN Entity Tender Resultsthe Buyer may rely on the competitive selection process of another UN Entity, when, in the Buyer’sestimation, the potential benefits of undertaking a new selection process would not justify the associatedadministrative costs. The Buyer may reuse the tender results to procure goods, works or services withoutundertaking a separate selection process, provided that:


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a. b.

c.

d.

a.

b.

c.

d.

the award is made within a twelve (12) month period after the validity date of the Offers;the requirements for the goods, works or services are substantially the same and the quantitiesoriginally tendered were similar or greater;the Vendor agrees to offer the goods, works or services at a comparable price and the commercialterms are considered reasonable for the market; andthe Vendor accepts the Organization’s terms and conditions.

502.18.13 . The Authorized Official may determine that the establishmentUN-Entity Contract or Agreementof a Contract or Framework Agreement based on the terms of an existing contract or agreement establishedby another UN Entity, or accession to such an existing contract or agreement, may best meet the requirement.Establishment of a separate Organization Contract or Framework Agreement with the Vendor based on theterms of an existing UN Entity contract or agreement or accession to an existing contract or agreement willbe subject to the review requirements for Extended Term Contracts, if applicable, as set forth in Appendices

and , as relevant.C2 D2

502.18.14 . When an Authorized Official determines that a UN Entity has aProcurement from a UN Entityparticular expertise or capacity or has obtained favorable conditions in the procurement of certain goods,works or services, the Organization may procure goods, works or services from another UN Entity, includingthrough the establishment of a Framework Agreement with the UN Entity. Procurement from another UNEntity may be approved by the Authorized Official on the basis of adequate justification and, in the case of aExtended Term Contracts, subject to the review requirements set forth in and , as relevant.Appendices C2 D2

502.18.15 . Under certain circumstances it may be appropriate or necessary toOutsourcing to a UN Entityrequest another UN Entity to carry out certain procurement activities on behalf of the Organization.Authorization for outsourcing of procurement activities may be considered in situations such as thosedescribed below.

Expertise. When the Organization recognizes particular expertise of another United Nations entity inthe procurement of specific goods, works or services, the Authorized Official may authorize, within thelevel of delegated authority set forth in , outsourcing for the specific goods, works orAppendix B1services and designate the UN Entity as the procurement agent for the Organization.Procurement Capacity. When another UN Entity has the necessary procurement capacity that theOrganization does not itself have in a given location, the Authorized Official may authorize within thelevel of delegated authority set forth in , the outsourcing of certain or all procurementAppendix B1activities for any period and designate the UN Entity as the procurement agent for the Organization forthose activities.Administrative Capacity. When the Organization has neither procurement nor administrative capacityin a country, procurement actions may be undertaken on behalf of the Organization by the residentrepresentative of another UN Entity with the necessary procurement and administrative capacity (e.g.Resident Representative of the local United Nations Development Programme), in accordance with therules and regulations of the UN Entity, up to the delegated financial authority limits applicable to FAORepresentatives on the basis of an Agency Services Request.Shared Services. When in a given location a joint United Nations activity (e.g. Delivery as One UNinitiatives) to provide certain administrative services to all partner organizations has been establishedwith the necessary procurement capacity to achieve economies of scale or to increase effectiveness andefficiency, the Authorized Official may authorize, within the level of delegated authority set forth in

, the outsourcing of certain or all procurement actions for any period and designate theAppendix B1joint United Nations activity as the procurement agent for the Organization and will inform Director,CSA. The rules and procedures established jointly by the participating UN Entities for that activity orfor joint procurement activities, including review requirements will be applicable. The AuthorizedOfficial will notify Director, CSA of any Framework Agreements or other long term arrangementsestablished locally for use by UN Entities.


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a. b. c.

a. b. c. d. e.

f. g.

a. b. c.

d. e. f. g. h.

i.

502.18.2 Outsourcing to a Government, NGO or Other Public International Organization--text

In support of capacity building or in connection with partnership arrangements or agreements, theOrganization may determine that it is appropriate to request a government, non-governmental organization orother non-United Nations system public international organization to carry out certain procurement activitieson behalf of the Organization for a specific programme, project or activity. The Deputy Director-General ofOperations will be responsible for review and approval of the request, after considering the recommendationsof the Director, CSA and ADG, CS and any assessment (e.g. FAO or other UN Entity assessment or HACT)that has been undertaken of the administrative or financial management capacity of the relevant entity.

502.19 Contractual Instruments


For procurement of goods, works and services the following principle Contractual Instruments are used:

Contracts (including Framework Agreements);Purchase Orders;Work Orders or other commitment under Framework Agreements.

502.19.2 Contracts--text

A Contract is a legally binding agreement between the Organization and a Vendor which provides for theperformance of works or services for the Organization. Contracts are generally used when the works orservices to be performed are complex, require detailed written explanation to achieve a clear understandingof the obligations of the parties or where performance of the works or service is a critical component of aprocurement action which includes both goods and works or services. Contracts will be prepared by theBuyer based on one of the Organization’s standard templates, modified for the relevant procurement action.Contracts will be approved and signed by the Authorized Official prior to transmission to the Vendor.

502.19.211 A Contract will at a minimum clearly identify the parties and include:

a statement of work;the period of validity;the price and the payment terms;requirements and instructions for notifications;the appropriate version of the Organization’s standard terms and conditions, modified as necessary forthe procurement action;designation of the Organization’s representative responsible for management of the Contract; andsignature of the Authorized Official and Vendor and dates of signature.

502.19.212 The following elements may also be applicable:

a statement of the responsibilities of the Organization;requirements for contract monitoring, supervision and reports;right to inspect Vendor accounts and records related to the contract and to have them audited byauditors appointed by the Organization;liquidated damages clause;performance bond clause;bank guarantee clause;responsibility for insurance;warranties;


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i. j. k. l.

a. b.

c. d. e. f. g.

h.

a. b. c. d.

e.

provision and procedures for amendment;provisions for copyright;non-disclosure clause;any other special conditions.

502.19.3 Framework Agreements--text

A Framework Agreement is a type of contract which defines the terms and conditions under which theVendor commits to supply goods, works or services over the term of the agreement, but which places noobligation on the Organization to procure. Framework Agreements must specify by what means and bywhom the goods, works or services will be ordered as and when required by the Organization. Generally,procurement under a Framework Agreement will take the form of a Purchase Order or a Work Order (seeManual para. below).502.19.5

502.19.4 Purchase Orders--text

A Purchase Order is a legally binding contract between the Organization and a Vendor. A Purchase Order isgenerally used for the procurement of goods including any works and services incidental to their supply. APurchase Order may either be (i) a self contained agreement between the Organization and a Vendor or (ii)issued to create a commitment by the Organization to purchase goods, works or services under the terms andconditions established by an existing Framework Agreement. Purchase Orders may also be used for standardor uncomplicated services where the Buyer determines that a simplified contractual format is acceptable.Purchase Orders will be raised by the Buyer and approved and signed by the Authorized Official prior totransmitting the order to the Vendor.

502.19.41 A Purchase Order will at a minimum clearly identify the parties and include:

specification of the goods and related services, if any;the required quantities and delivery terms (destination(s), consignee(s), modalities, and deliverydeadlines);the unit price(s) and other costs;payment terms;responsibility for insurance;requirements and instructions for notifications;the appropriate version of the Organization’s standard terms and conditions, modified as necessary forthe procurement action; andsignature of the Authorized Official and date of signature.

502.19.42 The following elements may also be applicable:

requirements for inspection services;marking instructions;liquidated damages and/or warranty clauses;right to inspect Vendor accounts and records related to the contract and to have them audited byauditors appointed by the Organization; andany other special conditions

502.19.5 Work Orders--text

Work Orders or other formats may be specified under the terms and conditions of an established FrameworkAgreement as the instrument for creating the obligation by the Organization to procure the goods, works orservices covered by the agreement and may only be used for this purpose. Work Orders will generally beissued by the Requester directly to the Vendor as and when the goods, works or services are required. A


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a.

b. c.

d.

e.

Work Order must be a written communication and will at minimum reference the Framework Agreement,specify the goods, works or services required, including location and timing of delivery, and indicate theestimated cost of the works or services. The Requester will also be responsible for ensuring adequate fundsfor the goods, works or services ordered are available.

502.19.6 Determination of Contractual Instrument--text

The Buyer will determine the appropriate Contractual Instrument to be used for a given procurement action,also taking into consideration the information provided by Requester.

502.19.7 Change of Contractual Instrument--text

In cases where Solicitation Documents have been issued anticipating the use of one contractual instrumentand at a later date it is determined that it would be more appropriate and better serve the interests of theOrganization to use a different instrument, the Buyer will review the procurement action and determinewhether, in the interests of transparency, new Solicitation Documents should be issued.

502.19.8 Modification of Organization’s General Terms and Conditions--text

Modifications of the Organization’s standard General Terms and Conditions for any Contractual Instrumentmust be reviewed and approved by CSAP which may request the advice of the Office of the Legal Counsel.

502.19.9 Advance Payments--text

Generally, for purposes of this Manual Section, advance payments are not permitted without a financialguarantee (e.g. bank guarantee, performance bond, insurance for non-performance). The Authorized Officialmay authorize advance payments, when availability of funds have been confirmed by the Budget Holder,without a financial guarantee:

in cases where generally accepted commercial terms require advance payment (e.g. subscriptions formagazines or services, licensing arrangements, membership fees);for transactions with other UN Entities;for transactions with governmental, regional, inter-governmental, parastatal, civil society organizationsor not-for-profit institutions or associations (including non-governmental organizations, universitiesand academic institutions, and public research institutions) for the provision of goods, works orservices up to a maximum of 20% of the total amount of the procurement activity, after assessing anddocumenting the benefit to the Organization against the risk of non performance;at the request of the invited Vendor and only in exceptional circumstances related to an EmergencySituation or an Exigency, where the Buyer considers the advance payment to be the only effectivemeans to undertake procurement and the associated risk to the Organization to be minimal, an advancepayment without a financial guarantee may be considered appropriate and can be approved by theAuthorized Official; orin other cases, provided that approval has been obtained from the Director, CSA and Director, CSF.

502.20 Amendments and Renewals

502.20.1 Amendments --text

Contractual Instruments may require amendment after approval and issuance. An amendment is any changeto a Contractual Instrument which may or may not have an impact on the total value. Amendments may onlybe made to Contractual Instruments which are not yet terminated or expired. Amendments to ContractualInstruments will be made in writing and must be accepted by both parties.


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a.

b.

c.

a.

b. c.

d.

502.20.2 Amendments to Purchase Orders--text

Exceptionally, it may be necessary to modify a Purchase Order that has been approved and issued. Generally,changes will be initiated by the Requester (e.g. for an increase in quantity or a change in destination ordelivery), but may also be initiated by the Buyer, e.g. to correct an error. A modification of the order may insome cases be requested by the Vendor when unable to supply according to the terms and conditions of theOffer and Purchase Order (e.g. all or part of the requirements, cannot meet the required delivery date). TheBuyer will determine, in consultation with the Requester, whether it best serves the objectives of theOrganization to recommend:

cancellation of the order, in full or in part, taking into consideration any damages which may beapplied by the original Vendor (see Manual para. below) and award, in full or in part, to the502.21.3 next highest-ranking Vendor(s);retender, taking into consideration any damages which may be applied by the original Vendor (seeManual para. below); or502.21.3 proceeding with the amendment, provided that the Vendor has indicated acceptance of themodification; where the Vendor would no longer be the highest-ranked Vendor had the evaluation beenbased on the modified quantities, commercial terms or conditions, the amendment is subject to thereview requirements for Exceptional Awards.

502.20.3 Special Considerations--text

In general, modifications of the Purchase Order which disadvantage the Vendor, such as a reduction in theoriginal order quantity or an earlier delivery deadline, are to be avoided. The Authorized Official mayconsider such amendments only in exceptional cases. The following should be taken into consideration:

whether at the time of the proposed amendment, the Vendor has confirmed acceptance of the order,provided acceptance of the order was requested in the Purchase Order;whether the Vendor will accept the modification without changing the unit price or claiming damages;whether any damages potentially payable by the Organization are outweighed by the benefit to theOrganization of the amendment; andwhether the Vendor would no longer be the highest-ranked Vendor had the evaluation been based onthe modified commercial terms and conditions.

502.20.4 Amendment of Contracts--text

It may be necessary to modify commercial or other aspects of an existing Contract or extend the expirationdate to allow for completion of works or services or otherwise extend the Contract term where not otherwiseprovided for as a renewal (see Manual para. below). Generally, an amendment will be initiated by502.20.7the Requester, but may also be initiated by the Buyer or the Vendor. The Buyer, in consultation with theRequester, must in each case evaluate whether the requested modification would be best accommodated byan amendment or through a new solicitation.

502.20.5 Review of Amendments to Contractual Instruments--text

Certain amendments require review by the relevant Procurement Committee, depending on the Award Basis,the value of the amendment, the value of previous amendments, as well as the total value and term of theContractual Instrument, as amended, as set forth in and .Appendices C2 D2

502.20.6 Approval of Amendments to Contractual Instruments--text

Amendments to Contractual Instruments will be approved and signed by the Authorized Official withinwhose delegated authority the value of the Contractual Instrument as amended will fall.


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502.20.7 Contract Renewals--text

A Contract renewal is the continued use of the terms of a Contract for an additional period of time, either asprovided for in the original Contract or where annual renewal is standard commercial practice for thecategory of services, e.g. subscriptions or certain types of insurance. One or more renewal periods may beforeseen and may include a provision for adjustments to the commercial terms or services to be provided (e.g.change in number of licenses or indexed price adjustments). The Buyer must in each case evaluate whetherthe interests of the Organization would be best served by the requested renewal or through a new solicitation,taking into consideration, for example, Vendor performance and market conditions. Contract renewals will beeffected in writing and must be accepted by both parties within the time limits provided for in the Contract.

502.20.8 Review of Contract Renewals--text

Certain contract renewals require review by the relevant Procurement Committee, depending on the AwardBasis, the total value and total term of the Contract and value of the Contract, including all previousrenewals, as set forth in and .Appendices C2 D2

502.20.9 Approval of Contract Renewals--text

Renewals of Contractual Instruments will be approved and signed by the Authorized Official within whosedelegated authority the value of the renewal falls.

502.21 Termination of a Contractual Instrument

502.21.1 Termination upon Fulfillment or Expiration--text

Generally, Contractual Instruments will terminate when the Organization and the Vendor have performedtheir respective obligations and/or upon expiry of the contract term. This may include cases whereapplication of actual or liquidated damages remedies deviations in Vendor performance relative to the termsand conditions specified in the Contractual Instrument.

502.21.2 Termination for other Reasons--text

Termination for reasons other than fulfillment of the terms or expiration of the Contractual Instrument aresubject to approval by the Authorized Official and include the following:

502.21.21 Upon the occurrence of an event which is specified in the ContractualTermination for Cause.Instrument as permitting termination by the Organization and after a formal written communication by theOrganization to the Vendor specifying the reason(s) for termination and the passage of the notice periodforeseen in the Contractual Instrument.

502.21.22 After a formal written request to the non-performing Vendor toTermination for Non-performance.remedy its default or non-performance and the passage of a reasonable period of time to allow the Vendor totake remedial action, the Organization may terminate the contract. Termination for default ornon-performance may give rise to damages.

502.21.23 For services, if provided for in the Contract, upon the request by eitherUnilateral Termination.party to exercise the termination provision, after a formal written communication to the other party and uponthe passage of the notice period provided for in the contract.

502.21.3 Cancellation of a Contractual Instrument--text


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Full or partial cancellation by the Organization of order quantities or contracted services should generally beavoided, as cancellation may give rise to a Vendor claim for damages. Full or partial cancellation of aContractual Instrument is subject to approval by the Authorized Official.

502.21.4 Responsibility for Determination of Actual or Liquidated Damages--text

A determination regarding the applicability of provisions for actual or liquidated damages may be madeduring the contractual period and/or prior to termination of a Contractual Instrument.

502.21.41 Contracts. The Organization representative responsible for management of the Contract willidentify any material breaches of the Contract including inadequate, delayed and/or partial performance bythe Vendor for which actual or liquidated damages can be applied as per the Contract terms. TheOrganization’s representative responsible for management of the Contract will be fully responsible fordetermining the nature and amount of any damages and to notify the Vendor in writing of the justification forapplication of actual or liquidated damages providing a reasonable time limit within which the Vendor maycontest the claimed damages. The Buyer may be requested to review the appropriateness of such claims,obtaining the advice of the Office of the Legal Counsel as appropriate

502.21.42 . The Buyer is responsible, based on the information available at the time ofPurchase Orderspayment, and in consultation with the technically-competent unit(s) or officer(s), if relevant, for determiningthe applicability of actual or liquidated damages for quantitative and/or qualitative deviations from thespecifications, or late delivery. The Buyer will notify the Vendor of the application of any actual or liquidateddamages and the basis for the claim. In cases where the Buyer recommends the non-application or reductionof actual or liquidated damages which could otherwise be applicable, the Buyer must document the reasonsand obtain the approval of the Authorized Official.

502.21.5 Documentation--text

The Buyer is responsible for ensuring that termination of Contractual Instruments, whether upon fulfillmentof the contractual obligations and/or expiry, or for any other reason, is adequately documented.

502.22 Manual Section Deviation

502.22.1 Deviations--text

Deviations from the requirements of this Manual Section are to be avoided. However, in exceptional cases,deviations which are determined by the Authorized Official to be in the best interests of the Organization(e.g. award on the basis of an Invalid Offer which otherwise meets requirements and would permit asignificant cost savings to the Organization; award on the basis of an Offer which is not considered to be aResponsive Offer but a technically-acceptable alternative) may be approved by the Authorized Official on thebasis of a full justification and only after ex ante review by the relevant Procurement Committee, whenapplicable as set forth in and , including in Emergency Situations.Appendices C2 D2

502.22.2 Documentation--text

Justification and approval for deviation from the requirements of this Manual Section must be fullydocumented.

502 Amendments

This manual section was originally issued on intranet under tm/4610.e dated 9 september 2003.


MANUAL



Date: 01/01/2010

This manual section was subsequently issued on intranet under tm/4776.e dated 12 december 2007

502 Appendices

Appendix AAppendix B1Appendix B2Appendix C1Appendix C2Appendix D1Appendix D2Appendix E

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MANUAL



Date: 01/01/2010