ir bangladesh procurement manual

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Islamic Relief Bangladesh Procurement Manual Version 1.0

IR Bangladesh Procurement Manual

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Category: International Programmes Division (IPD)

Policy Type: IR Bangladesh Procurement manual

URN:

Version Control: V1.0

Date of Creation: 15/01/2020

Last Modified: 23/05/2021

Review Date: 31/12/2023

Approving Body: International Finance & Services IPD

Date of Approval: 25/05/2021

Document author(s)/ Key: Iftekhar Ahmed

Contributors including: Sam Jaber

Department: International Procurement and Logistics department (IPD)

Policy Owner: IRW supply chain

Owner of Intl. Procurement

Manual

International Finance and Services Division

For public access or staff access

Staff, donors, auditors, partners and others for whom permission is given

This manual is subject to a review and amendments at any time by the International Procurement and

Logistics Department, any changes requested to this manual by the field office should be sent in

writing to the International Procurement and Logistics Department on

[email protected]. Changes to this manual must only be made once full approval is

sought and given by the International Procurement and Logistics Department.

mailto:[email protected]

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Contents

1.0 GLOSSARY AND ACRONYMS ....................................................................................................................... 4

1.1 INTRODUCTION .......................................................................................................................................... 6

2.0 DEPARTMENTAL STRUCTURE ..................................................................................................................... 6

3.0 WHO SHOULD USE THE PROCUREMENT MANUAL?.................................................................................... 8

4.0 THE PROCUREMENT FUNCTION ................................................................................................................. 9

5.0 PURCHASING THRESHOLDS ...................................................................................................................... 10

5.3 PROCUREMENT CYCLE .............................................................................................................................. 15

5.4 PROCUREMENT METHODS ....................................................................................................................... 16

5.5 PROCUREMENT AUTHORITY .................................................................................................................... 16

5.6 AX PURCHASING SIGNATORY AUTHORITIES ............................................................................................. 17

5.8 PROCUREMENT PLANNING ...................................................................................................................... 18

6.0 REQUEST FOR QUOTATION (RFQ) ............................................................................................................ 22

7.0 PROCUREMENT TENDERING PROCEDURES .............................................................................................. 23

7.3.0 EMERGENCY PROCUREMENT PROCEDURES .......................................................................................... 26

8.0 PURCHASE ORDER .................................................................................................................................... 34

9.1 E-PROCUREMENT AND P CARDS .............................................................................................................. 35

9.2 CONTRACTING ......................................................................................................................................... 37

10.1 TENDER DOCUMENTS ............................................................................................................................ 38

10.2 PLANNING OF THE TENDERING PROCESS ............................................................................................... 39

10.3 TENDER PUBLICATION ............................................................................................................................ 40

10.4 INVITATION TO TENDER (ITT) ................................................................................................................. 41

10.5 TENDER EVALUATION ............................................................................................................................ 42

10.6 EVALUATION PROCESS ........................................................................................................................... 43

10.7 EVALUATION CRITERIA ........................................................................................................................... 44

10.7.1 SCORING TECHNIQUE AND RATING ..................................................................................................... 44

10.8 WEIGHTING ............................................................................................................................................ 46

10.9 BID EVALUATION COMMITTEE ............................................................................................................... 47

10.9.1 THE ROLE AND OBJECTIVES OF THE BID EVALUATION COMMITTEE ..................................................... 49

10.9.2 DOCUMENTS TO BE COMPLETED AND FILED BY THE BID EVALUATION COMMITTEE ........................... 50

10.9.5 TENDER GUIDELINES ........................................................................................................................... 52

10.9.6 SUPPLIER CODE OF CONDUCT ............................................................................................................. 55

10.9.7 SUPPLIER SELECTION ........................................................................................................................... 56

10.9.7 POST TENDERING ................................................................................................................................ 57

10.9.8 LEAN PROCUREMENT AND CONTINUOUS IMPROVEMENT .................................................................. 57

11.0 IR BANGLADESH PROCUREMENT DUE DILIGENCE .................................................................................. 60

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11.5 IR BANGLADESH PROCUREMENT DUE DILIGENCE CHECKLIST ................................................................. 64

11.6 GLOBAL COMPLIANCE ............................................................................................................................ 66

11.7 DATA PROTECTION AND PRIVACY .......................................................................................................... 67

11.8 UK MODERN SLAVERY ACT 2015 ............................................................................................................ 68

13.0 CONTRACT MANAGEMENT .................................................................................................................... 69

16.0 THE TERMS OF REFERENCE (TOR) ........................................................................................................... 74

17.0 FAIR AND ETHICAL TRADE ...................................................................................................................... 76

18.0 SUSTAINABLE PROCUREMENT ............................................................................................................... 78

19.0 PROCUREMENT CODE OF ETHICS ........................................................................................................... 80

20.0 SAMPLING .............................................................................................................................................. 81

24.0 COMPLAINTS .......................................................................................................................................... 83

25.0 RECORDS MANAGEMENT ....................................................................................................................... 83

26.0 WAIVER REGISTER .................................................................................................................................. 84

27.0 CONFLICT OF INTEREST .......................................................................................................................... 85

28.0 AUDIT ..................................................................................................................................................... 86

29.0 IRREGULARITIES ..................................................................................................................................... 86

30.0 LOCAL GOVERNMENT REGULATIONS ..................................................................................................... 86

31.0 INSTITUTIONAL DONOR THRESHOLDS .................................................................................................... 87

32.0 HUMANITARIAN PROCUREMENT CENTRES (HPC) .................................................................................. 88

33.0 PAYMENT TERMS ................................................................................................................................... 89

34.0 CURRENCIES ........................................................................................................................................... 90

35.0 INVOICES ................................................................................................................................................ 91

36.0 VENDOR SCREENING & VETTING ............................................................................................................ 91

37.0 CHANGE IN VENDOR DETAILS ................................................................................................................. 97

APPENDIX 1 ................................................................................................................................................... 98

APPENDIX 2 ................................................................................................................................................. 100

APPENDIX 3 ................................................................................................................................................. 102

APPENDIX 4 ................................................................................................................................................. 103

APPENDIX 5 ................................................................................................................................................. 105

APPENDIX 6 ................................................................................................................................................. 106

APPENDIX 7 ................................................................................................................................................. 107

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1.0 Glossary and acronyms BDT – Bangladeshi Taka Bid – A comprehensive quote provided by a vendor in response to either an RFQ or a tender advertised by the procurement department CIPS – Chartered Institute of Purchasing and Supply. Complaints handling committee – A group of individuals who are responsible for handling complaints pursuant to the organisational complaints procedure. Contract – A document comprising terms and conditions of purchase in depth between Islamic Relief Bangladesh and the vendor and outlines each parties obligations and rights under the agreement as well as penalties and compensations. Contract management – This entails the enforcement and monitoring of a contract with the vendor through either supplier (KPI’s) or business reviews ensuring there are no violations and diversions from the contract and goods or services are provided as per the terms and conditions. Other duties would include resolving disputes and vendor feedback on their performance. COSHH – Control of substances hazardous to health. A legislation which enforces control of substances which are hazardous to health for employers controlled and regulated by the Department of Environment (DOE) DFID – Department of International Development. DG ECHO – The Directorate-General for European Civil Protection and Humanitarian Aid Operations EOI – Expression of Interest. A formal response from a potential vendor to participate in a planned tender or a solicitation. Evaluation criteria – A list of factors and weighting composed by the evaluation committee to help shortlist the best vendors for the provisions of goods and services for Islamic Relief Bangladesh. IAPG – Inter Agency Procurement Group Inco terms – International commercial terms agreed between the buyer and seller for the shipment of goods and services throughout the world. These are published by the ICC (International Chamber of Commerce). ITT – Invitation to tender. A document which invites several parties for an invitation to provide a tender for the organisations goods, services or works. MAC – Minimum Acceptance Criteria is specified indicators or measures for accessing the ability & financial capacity of supplier MRO – Maintenance, repair and operations. This incorporates contracts and agreements involving repair and maintenance works for the organisations particularly on its buildings, surroundings, assets (current or fixed) and stocks.

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PC – Procurement Committee. This Committee shall exercise the executive powers of the Country Director / Head of Mission of field offices in respect of procurement of goods and hiring services falling above certain limits defined in financial and procurement guidelines of each field office through tendering and contracting in line with procurement and financial guidelines. PO – Purchase order. A formal document produced by Islamic Relief Bangladesh for the acquisition of goods and services from a selected vendor. PQQ – Pre qualification questionnaire. A questionnaire comprising questions to identify which suppliers are suitable for submitting a tender for goods and services. It helps an organisation shortlist those vendors that either meet the criteria or closely meet the criteria. Requisitioner – A person who creates a purchase requisition on behalf of Islamic Relief Bangladesh for the provisions of goods, works and services. RFQ – Request for quotation. A request to the supplier or suppliers identified to provide a quotation or a bid against a tender or a list of goods and services required. RFP – Request for proposal. SIDA – Swedish International Development Cooperation Agency

Technical evaluation committee – A group of individuals responsible for the evaluation of tenders and RFQ’s. The objective of the group is to formally arrange a meeting and evaluate each particular bid / proposal using the evaluation criteria.

TOR – Terms of reference. A Project charter comprising key project principles comprising scope of project, background, context, objectives and scope, tasks to be accomplished, methodology, outputs and schedule.

Threshold – A categorisation of spend values determining sign off points before final approval is made. UNDP – United Nations Development Programme. UNHCR – United Nations High Commissioner for Refugees VAT – Value Added Tax. Vendor – A supplier of goods, services or works to the global or local market place often representing an organisation, limited company, sole trader, public limited company or even a large multinational organisation. WEEE – Waste electrical and electronic equipment. A directive which encourages the recycle of electronic and electrical equipment and a reduction in the production of this commodity. Weighting – A number assigned to a criteria to assist the rating system and produce a best scoring to help select or shortlist a particular supplier or a selection of suppliers.

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1.1 Introduction

The purpose of this manual is to be to ensure personnel are guided towards the correct procurement procedures and the procurement policy. The manual is designed to help those personnel within the Bangladesh country office, field, area, offices, partners, and those subsidiaries of Islamic Relief Bangladesh.

The role and function of the procurement department is to purchase goods, services and works for Islamic Relief Bangladesh at ‘best value for money’.

It is an essential requirement the procurement manual be understood and read in conformance with the purchasing policy and other guidelines created by the Procurement department. The rules and regulations must be adhered to and this is the responsibility of every employee of Islamic Relief as well senior management and other responsible staff. The organisation receives its funds from various sources including private donors, institutional donors, various governments and others. It is partially for this reason funds that are acquired from institutional donors that their guidelines be followed for their funded projects. Given such instructions and guidelines it is absolutely vital that the rules and procedures be adopted when purchasing, tendering for goods, services and works. These instructions are to ensure there is accountability, transparency, compliance, and integrity in our procedures and these are the foundations of all our transactions. Therefore the following points be considered when participating in such activities at all times;

Compliance with internal as well as external audits. Protection against and legal disputes or conflicts as such that may bring the organisation into

disrepute or tarnish the organisations reputation and image. Full accountability and best use of the organisations funds. Full traceability of where funds have been spent with full documentation, receipts, invoices,

delivery notes, order acknowledgements. Procure goods, services and works on the basis of the ‘Best value for money’ approach Compliance with various institutional guidelines. Evidence of fair and ethical trade within the procedures. Demonstration of appropriate use of funds to the funding bodies. Drawbacks of non-compliance would jeopardise strategic funded projects. Withdrawal of funding from institutions including large donors with whom we have long term

commitments. Organisations reputation to be maintained and protected. Loss of revenue with private as well as public donors. Contractual drawbacks with immense liabilities. Reduce corruption and risk by screening all vendors prior to contract award. GDPR regulations and the processing and transferring of personal data Enhanced due diligence (EDD) and adherence to the correct import/export control procedures Suppliers be free of Modern Slavery including their complete supply chain

2.0 Departmental structure

The IR Bangladesh procurement department is a moderate sized team of three personnel controlled by the procurement coordinator which focuses on procurement and logistics.

The IR Bangladesh procurement department focuses on the acquisition of goods and services covering the Bangladesh region and several other IR sites within the country.

For all queries in relation to procurement of Bangladesh operations including screening requests contact [email protected]


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For all queries in relation to screening, risk, compliance, EDD, regulatory and others contact; [email protected]

IR Bangladesh Procurement Department (IRB)

Contact details of the procurement department are listed below though this is subject to change.

Job title Name Responsibilities

Contact number Email address

Operations Supports Manager

Jaber SAM Responsible for the management of Procurement, Logistics, Admin

880-17-7777-3707

[email protected]

Procurement Coordinator

Md Shahidul Islam

Responsible for Procurement Process and Functions

880-17-7777-3725

[email protected]

Operation Support Officer

Md Elius Miah Procurement Supports

880-17-7777-3719

[email protected]


Nazmus Sakib Procurement & Log Supports, Cox’s Bazar

880-17-7777-3712

[email protected]

Sr Logistics Officer

Md Haider Ali Responsible for Logistics Functions

880-17-7777-3716

[email protected]

Jaber SAM

Operations Supports Manager

Shahidul Islam

Procurement Coordinator

Elius Miah


Nazmus Sakib

Operation Support Officer, Cox's Bazar Office, (Technical Report)

Haider AliSr Logistics Officer

Mojibur Rahman Dulal






mailto:elius@islamicrelief

mailto:Nazmus.Sakib@islamicrelief

mailto:Nazmus.Sakib@islamicrelief



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Md Mojibur Rahman Dulal

Asset and Facility, Safety-Security

880-17-7777-3728

[email protected]

Contact Detail of the Country Director and Finance Manager of IR Bangladesh

Country Director

Mohammad Akmal Shareef

Responsible for total IRB Management

880-17-7777-3720

[email protected]

Finance Manager

Md Saiful Islam Manager Finance of IRB

880-17-7777-3710

[email protected]

The procurement department’s availability times are;

Time of the week Hours

Weekdays (Sunday to Thursday) 19.00am – 5.00pm

Weekends (Friday and Saturday) No available staff

3.0 Who should use the procurement manual? 3.1.1 Manual to be used with Islamic Relief Bangladesh and their offices

This manual must be used within all IR Bangladesh and field offices and therefore a thorough insight into their existing methods and systems must be familiarised and be upgraded in line with Islamic Relief Worldwide standards and guidelines. These guidelines will be utilised to ensure system efficiency, accountability and transparency. For all projects which entail procurement activity staff are encouraged to refer to this manual. The procurement manual must be used throughout the organisation here in and where possible within the field, with partner offices and be used by various other personnel and this includes;

1. All procurement staff within Islamic Relief Bangladesh country office (mandatory)

2. All procurement staff in IR Bangladesh subsidiaries

3. All procurement staff within field, area and remote offices.

4. All procurement staff within partners and subcontractors (if possible).

5. All non-procurement staff (with good procurement knowledge) within IR Bangladesh and field offices (particularly where no procurement staff exist).

6. For all Islamic Relief Bangladesh funded projects within the field as well as its offices

including remote offices.

7. For all projects funded by institutional donors.

mailto:mr.dulal@islamicrelief

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Note; where institutional guidelines are present then these will take precedence. Where institutional guidelines are not present then the user must follow this procurement manual as a guide.

8. For all purchases above and below the value of 10,000.00 BDT for any given commodity,

works or consultancy regardless of its nature.

9. For all grant approvals above the minimum threshold of funding institutions. The manual is to be used to as a guide for project and other particular purchases in relation to any given commodity in all IR Bangladesh locations within Bangladesh and international operations. The manual is also a training manual for procurement and as well as non-procurement staff within field and partner offices. This manual provides in depth knowledge in the following areas.

a) The procurement methods that are to be used and when

b) The current procurement thresholds

c) The procurement procedures

d) The institutional donor requirements and their thresholds

e) Other relevant information

4.0 The Procurement function The key duties and functions of the department are to provide excellence in the procurement of goods and services globally. The procurement department has great emphasis on various principles and some of these include;

Competitive tendering Accountability Compliance Best value for money Transparency Due diligence Cost reductions Impartiality Risk mitigation Sustainability Affordability Fair & Traceability Ethical procurement Data protection

The procurement department provides a range of services to its stakeholders i.e. personnel within the Bangladesh country office, field offices, partner offices, subsidiaries and more.

The ranges of services are extensive and complex and some of these include;

Tendering Procurement of goods services and works Emergency procurement Contract management Framework agreements Negotiation with vendors and general cost down Consultancy services MRO (maintenance, repair and operations) RFQ (request for quotations) Supplier development and management Global purchasing (including indirect) P card services (purchasing card) Advice and support

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Procurement training Vendor addition in AX Purchase requisition approval Vendor screening

Some of these will be covered in detail in later chapters. 4.1 Duties of the procurement department Typical duties of the procurement department have been highlighted below but will not be limited to these;

a. To purchase goods, services and works for Islamic Relief in accordance with the correct Islamic Relief procurement procedures and processes.

b. To acquire of goods, services and works on the basis of ‘best value for money’ and use the correct formulae to combine cost with delivery and quality.

c. To ensure procedures for the procurement of goods, services and works is in accordance with the donor’s guidelines, regulatory bodies and local government regulations.

d. To ensure all suppliers, consultants and cash paid workers are screened as per the correct thresholds

e. To progress all shipment of goods/services in accordance with project and program timescales without causing delays.

f. To file away all procurement documents as per the correct documentation procedures and the IRW records management policy

g. To assist in the modern slavery plan and programs to ensure suppliers are compliant and risk free.

5.0 Purchasing thresholds The purchasing thresholds will need to be considered when making any purchase of any kind relating to the value of goods, services or works through an accurate valuation or a best cost projection. The thresholds have been carefully reviewed and implemented and have been segregated within the following spend categories. The buying personnel will ensure all products and services are purchased at ‘best value for money’ and pursuant to Islamic Relief Bangladesh thresholds. Below is a table showing current country office thresholds and their procedures.

Amount Currency RFQ or tender

Advertisement Committee name

≤ 10,000 BDT Cash No No committee

≤ 100,000 BDT Cash

multiple

items, single

items cannot

be more

than 10,000

No No committee

≤ 100,000 BDT RFQ - Single

quotation

No No committee

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Above 100,000 to 2 million BDT RFQ - Three

quotes

No Procurement/Technical

Committee

Above 2 million BDT Open

Tender, min

3 bids

required

Yes Procurement/Technical

Committee

Up to 5 million for

emergency

Need emergency declaration

from Emergency Committee

BDT RFQ – Three

quotes

No Procurement/Technical

Committee

If purchased amount is above BDT 10,000 for single or multiple item, payment will be made

by A/C Payee Cheque.

Up to 100,000.00 BDT WO can be issued by the Operation Supports Manager or Procurement

in-charge.

Above 100,000 BDT WO will be issued by the Country Director.

Below is a table showing current field country office thresholds and their procedures.

Amount Currency Procedure Advertisement Committee required Country or field office

≤ 10,000 BDT Cash No No committee Field office

≤ 30,000 BDT Cash multiple items, single items cannot be more than 10,000

No No committee Field office

10,000 - 30,000

BDT RFQ - Three quotations required

No Procurement committee

Field office

>30,000 BDT Field Office limit exceeds and comes to IRB CO

Country office

Note: Other Islamic Relief Bangladesh field offices should follow their approved procurement thresholds according to the set country office thresholds.

If purchased amount is above BDT 10,000 for single or multiple item, payment will be made by A/C Payee Cheque. Single quotation above BDT 10,000 to 20,000 can be availed with an approval from local Procurement Committee where more than one quotation is not available The table beneath shows the authority grid for IR Bangladesh and is as follows;

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Authority Limit Euro (BDT) Purchase Approval

Independent Finance Role

Payment Approval

1. In-charge, Project

Manager, Project

Coordinator at IRB

Field Office

≤ 30,000 Yes Yes Yes

2. Office in-charge

under ODS, One-to-

One and IDASO


3. Programme

Manager/Departm

ent Manager


4. HoP


Award Committee Above 100,000

for single item,

and above

Yes Yes No

3 Managers with

delegated

authority

100,000.00 or

more*

No Finance verify & proceed with payment after required approvals received

Yes

Award Committee

2,000,000.00 or

more*

Yes No No

4 Managers with

delegated

authority

(including CD)

2,000,000.00 or

more*

No Finance verify & proceed with payment after required approvals received

Yes

5.1 Purchases under 10,000.00 BDT No formal procedure is required here given the amount but staff are encouraged to take due care when purchasing and where possible use reputable and recognised vendors. Items of such value may be paid by cash.

Note; No procurement procedure required for small value purchases of less than 10,000.00 BDT for Bangladesh procurement.

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5.1.1 Purchases of up to 100.000.00 BDT by cash for multiple items All procurement department must purchase items within this range by cash for multiple items up to this amount but must not be more than 10,000.00 BDT per single item particularly pertaining to the acquisition of goods. The quotations must be obtained from those companies from whom we have had previous purchase history, those currently listed on the current supplier base and particularly those who are in on our preferred vendor list. Vendors outside these directories will be considered on a case by case basis in conjunction with the supplier rationalisation programme led by the procurement team (Procurement management or procurement officers). All consultancy RFQ’s shall be processed by the HR department in IR Bangladesh pursuant to the HR policy and procedures. Contracts pertaining to works or MRO (maintenance and repair operations) the procurement department shall assist from the RFQ stage through to the evaluation and the appointment of the contractor with the assistance of the Facilities team (if present). 5.1.2 Purchases of up to 100.000.00 BDT by single quotation All procurement department must require single quotations for purchases up to this amount pertaining to the acquisition of goods and services. The quotations must be obtained from those companies from whom we have had previous purchase history, those currently listed on the current supplier base and particularly those who are in on our preferred vendor list. Vendors outside these directories will be considered on a case by case basis in conjunction with the supplier rationalisation programme led by the procurement team (Procurement management or procurement officers). All consultancy RFQ’s shall be processed by the HR department in IR Bangladesh pursuant to the HR policy and procedures. Contracts pertaining to works or MRO (maintenance and repair operations) the procurement department shall assist from the RFQ stage through to the evaluation and the appointment of the contractor with the assistance of the Facilities team (if present). 5.1.3 Purchases between 100,001.00 and 2,000,000.00 BDT

All procurement department will be required to submit no less than three quotations pertaining to the goods, services or works required in question. The quotations would normally be obtained from those companies from whom we have had previous purchase history or those currently listed on current supplier base and particularly those who happen to be on our preferred vendor list. Vendors outside these directories will be considered on a case by case basis by the procurement team in conjunction with the supper rationalisation programme and will be subject to a PQQ and vendor screening. All consultancy RFQ’s shall be processed by the HR department in IR Bangladesh pursuant to the HR policy and procedures. Contracts pertaining to works and MRO (maintenance and repair operations) the procurement department shall assist as normal from the RFQ stage through to the evaluation of the bids and then to the final stage of the process including the appointment of a suitable contractor preferably with the involvement of the Facilities team (if present).

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5.1.4 Purchases above 2,000,000.00 BDT The complete tendering process would need to be implemented for all purchases that fall within the above threshold and a minimum of three bids would be a requirement. A tender would be compiled by the procurement department in response to either the TOR (terms of reference) or a complete specification with the BoQs. The complete tendering cycle will be adopted by the department to ensure conformance to Islamic Relief Bangladesh procurement policy, guidelines and donor requirements for which we are contractually bound. All vendors are invited to tender including those on the supplier base, the preferred vendor list and through other sources for example networks and consortiums such as IAPG (Inter Agency Procurement Group), and others. The above procedures apply regardless of the nature of the request whether it is for goods, services or works a tender shall be produced and publicised in accordance with the correct timescales and procedures. A tender shall be produced, implemented and seen through the entire procurement cycle and the necessary procedures shall be adopted during this course. All tenders would require the written approval of the authority responsible for the budget in Bangladesh or the Country Director/Head of Mission in the Field. For emergency procurements please refer to the relevant section in the later chapters. 5.2 Property purchases Any acquisition of property by Islamic Relief Bangladesh must be fully endorsed in writing from the Board of Trustees, whose authorisation will be sought by the CEO (or his representative). The CEO will receive requests for the property acquisition with a fully justified qualitative business case from the Board of Directors. The business case will be ideally prepared by a qualified property consultant if this is not possible a suitably qualified property expert should be requested to review any internally produced business case – in all cases it should be indicated what net benefit and/or loss such an acquisition will make. All financials should be carefully articulated indicating any hidden costs, state of the building, insurance, maintenance, security. There must be total clarity in all the process, any collective meetings must have minutes taken, and all the development in the purchasing thought process must be clearly labelled. Any and all concerns should be articulated alongside with risks and the Board of Directors must be satisfied that as such all concerns and risks have been fully addressed and any suggested remedial action noted and actioned prior to the acquisition. All rules, regulations, guidelines of the Charities Commission must be adhered and checked for conformity – please refer to ‘Acquiring Land’ published by the Charity Commission (first published 2001 and regularly updated) to ensure best practise is followed. New policy and procedure for IR Global Assets is currently being developed until then for all other information in relation to property and assets one is advised to refer to the Finance guidelines which can be viewed by following the link below; https://extranet.irworldwide.org/FINANCE/Financial%20Guidelines/Islamic%20Relief%20Worldwide%20Financial%20Guidelines%20V4.1.pdf

https://extranet.irworldwide.org/FINANCE/Financial%20Guidelines/Islamic%20Relief%20Worldwide%20Financial%20Guidelines%20V4.1.pdf

https://extranet.irworldwide.org/FINANCE/Financial%20Guidelines/Islamic%20Relief%20Worldwide%20Financial%20Guidelines%20V4.1.pdf

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Items having effective service lives of more than one year and valued at least at BDT 5,001 are to be treated as Capital Items. For field office, all fixed assets that are allowed by the authority limit should be purchased with an approval from IRCO. Admin staff can engage for the procurement of food items and office maintenance of up to BDT 10,000. 5.2.1 Procurement of medicines and medical items

Procurement of medicines must be made using the correct procurement procedures and methods and one is strongly advised to refer to the donors guidelines at all items particularly in relation to the procurement of medicines and their correct disposal procedures. Procurement staff and the evaluation committee are instructed to adopt the following courses of actions to ensure best practice and product quality particular in relation to the procurement of medicines and medical equipment being funded by SIDA;

1. Follow the local government laws and regulations in this regards and remain in regular communication with the pharmaceuticals/medicines department or the Pharmacy & Poisons board and follow the correct import procedures

2. Procure medicines or medical equipment from the WHO and SRA qualification schemes 3. Avoid using substandard products from suppliers and engage with those that are registered

and follow the correct regulations and those that have a thorough oversight of the pharmaceutical sector

4. Ensure those vendors are selected that operate ethically and adequately and the protocols be implemented to identify this

5. Ensure medicines and medical items that are procured are registered with the NDRA and the correct import permissions be sought

6. Use the Quamed’s market scans to help select better and reliable suppliers in the market place 7. Compliance with guiding principles through collaboration and guidance to help select

reputable suppliers 8. Trade with those supplier who are approved by the pharmacy regulatory boards and have the

appropriate licences to sell such products Procurement staff and the evaluation committee be strongly encouraged to hire and introduce qualified and experienced persons in the committee particularly in relation to the sample evaluation, inspection, assessment, testing of medicines and medical items. The correct disposal procedures of medicines be adopted for redundant, unwanted, expired and surplus medicines and the WHO guidelines be followed in this regard particularly in relation to the disposal of medicines and medical equipment funded by DG ECHO. Procurement personnel are encouraged to also check donor’s guidelines thoroughly here. 5.3 Procurement cycle The procurement cycle shall consist of the following and this be maintained throughout the tendering period. The diagram beneath contains the core elements of the cycle.

Approval from the authority responsible for the budget in Bangladesh or the Country Director/Head of Mission in the Field to initiate the tender process (requirement for tender)

Approved purchase requisition in AX A Specification developed Tender/RFQ documents produced and publicised

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Invitations sent to potential vendors (ITT) Committee team arranged and agreed Proposals/bids received Formation of Tender evaluation committee (requirement for tenders) Established Minimum Acceptance Criteria (requirement for tenders) Assessment criteria, weighting and panel established (requirement for tenders) Conflicts of interests declared and form signed (COI) (requirement for tenders) Bids assessed and vendors shortlisted Sample evaluation Negotiations with selected supplier Vendor screening Contract award made Vendor added to AX for payments Contract managed throughout the contractual period Documentation of essential documents for auditors (requirement for tenders)

5.4 Procurement methods All AX purchase orders raised require an approval without an approval no requisition can be sent to the vendor this would be a violation of the procurement policy. Our key methods of procurement are;

The procurement department will introduce other methods as they see fit depending on the circumstances and the conditions. 5.5 Procurement authority All procurement staff within Islamic Relief Bangladesh including the country office, Bangladesh head office, field offices and partner offices (if any) have the authority to procure goods services and works.

Tendering

Emergency procurement

Request for quotation (RFQ)

Consultancy contracts

Approval /Authorisation

Specification Tender

publicised invitations sent

Proposals/bids received

Criteria and weighting arranged

COI declared Bids assessedSampling and

shortlistingVendor

screenedContract award

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These are obviously subject to the approval of a purchase requisition which must be done and be approved by the relevant authorities. Where possible all purchase orders must be produced in AX and be approved within AX. If however, the AX system is not available then the purchase order be created using suitable alternative systems where documentation is secure and in order. In those areas where AX is in operation it is imperative the correct AX version be used and regular updates and patches be done periodically when the need arises. For all requests relating to consultancy services which are arranged by the HR department and pursuant to their policy and procedures All payments for invoices will be blocked if there is evidence that a purchase order is not approved and particularly where a purchase requisition is not even created. All purchase orders must be sent to the vendors and where possible the evidence be documented or filed i.e. a fax receipt or an email confirmation. All order acknowledgements be filed away with the purchase orders. The terms and conditions of purchase (if present) must be either sent with the purchase order or a comment be printed on the outgoing purchase order to the effect ‘This purchase order is bound by terms and conditions of purchase which are available upon request’. The procurement department must ensure the vendors terms and conditions of sale do not conflict with Islamic Relief Bangladesh’s terms and conditions of purchase. In such case where there is a conflict the Procurement department is obliged to resolve matters in conjunction with the organisations legal counsel (currently based at the International office). Under no circumstances is the procurement department permitted to alter the Islamic Relief Bangladesh terms of purchase without written consent from the legal counsel. 5.6 AX purchasing signatory authorities All purchase orders must be approved and signed prior to being sent to the contractor or the vendor. The purchase orders are approved in AX pursuant to the overall value of the order. The sign off levels for IR Bangladesh country office purchase requisitions are highlighted below and it is up to purchase order requisitioner to ensure the appropriate persons approve within reasonable timescales. The purchase requisition sign off levels for IR Bangladesh are; (field offices to keep the authority amounts as per the economy of the country in local currencies),

Amount (BDT) 1st signatory authority

2nd signatory authority

3rd signatory authority

4th signatory authority


≤30,000.00 Project in charge, Project Coordinator, Project Manager

Procurement

≤50,000.00 Project in charge, Programme Manager

Procurement Procurement

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Project Coordinator, Project Manager

≤100,000.00 Project in charge, Project Coordinator, Project Manager

Programme Manager Programme Manager

CD Procurement Procurement

>100,000.00 Project in charge Programme Manager

HOP CD Procurement

The purchasing requisition sign off levels for the IR Bangladesh office are as follows;

*Field Offices should follow their own purchase requisition sign off levels though this may be subject to change based on needs. There are several procurement procedures that are adopted here at Islamic Relief Bangladesh which are used for the purchase of goods, services and works. These are;

1. Small value purchase procedure 2. Full tender procedure 3. Restricted procedure 4. Negotiated procedure with a single bid 5. Request for quotations procedure 6. Emergency procurement procedure 7. Accelerated procedure 8. Consultancy service procedure

5.7 Authorisation

Once a final review is carried out, the procedure has been implemented and correctly followed, the appropriate documentation and the approvals complete the delegated authority must ascertain and sign to ensure all is in place and in the correct format. The delegating authority has responsibilities and some of these are;

1. The cost correlates with the grant approval and funds assured by the donor/budget holder.

2. All documentation pertaining to the purchase is correct in order and has been signed off.

3. All necessary documents are attached to reflect the purchase value for e.g. invoice, quotations and other documents.

4. A valid project pin code available and released for the purchase.

5.8 Procurement planning Procurement planning is relating to the planning of procurement projects which allows the procurement department to organise its resources and manpower for various projects without them having to affect and constrain other ongoing and pending project work. These planning strategies and procedures can be implemented efficiently and effectively and can also help in other areas. This

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section will provide an insight on how to draw up a procurement plan and assist with the installation of the project.

1. Some of the benefits of procurement planning effect project implementation in many ways.

2. Projects can be poorly performed and managed if there is lack of fore planning of procurement activities.

3. Procurement planning allows projects to be implemented without having to make concessions

on transparency and accountability. The project timeline and activity plan are integral and the project budget will enable the procurement department to identify what we need and when.

5.8.1 Designing a procurement plan The following are a list of requirements for project implementation and achievement and this may include the following;

Total quantities required for each item and an estimated total cost. Produce a detailed bill of quantity Identify required goods services and works for the project. Cost of implementing of the formalities i.e. advertising tenders. Stock details are recorded particularly when being used from one’s own inventory. Ensure the waivers have been requested, submitted and approved. Waivers must be

approved prior to the commencement of procurement activities. Grouped item be placed together in the plan and splitting of contracts is prohibited in

all circumstances. 5.8.2 Procurement budgets

Procurement procedures can attract costs that be essentially considered when budgeting. It is paramount that at the planning and budgeting stage to identify the costs that procurement activities attract. During the procurement process the costs occur in multiple ways and will need to be included during the budgeting and planning stage. Some of the costs should include;

Cost to visit suppliers i.e. travel and accommodation costs. Room hire cost for meetings. Indirect cost for e.g. photocopying and printing of completed tender dossiers for the

bid evaluation committee. Printer related costs pertaining to the production of the tenders for the evaluation

panel. 5.8.3 Procurement procure timescales It is essential procurement procedures are given adequate time to allow completion from start to finish.

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Typical timeframes for the completion of each particular procurement procedure are highlighted below. Such procedures will commence from the purchase requisition authorisation through to approval and the appointment of the contract. Tender procedures tend to have lengthy lead times from start to the placement of the contract with the vendor concerned. Procurement planning is therefore absolutely vital and integral to good procurement procedures and practices. Below are estimated timescales for various procurement procedures.

Procedure Length

Small value procedures 1-2 weeks

Negotiated procedures 1-3 weeks

Tender and international tender 2-4 weeks

Restricted tender 2-4 weeks

Request for quotation 2-4 weeks

Accelerated tender 1-3 weeks

Emergency tender 1 week

Note, these are estimated timescales and may be subject to change given the circumstances and complexity of the contracts and due to other constraints such as local country procedures and conditions which will impact these timescales retrospectively.

When these timescales and procedures are identified a timeline or an action plan is necessary. The action plan must include goods requirement dates which are required for project staff for various project activities. Therefore timescales are key when devising a procurement plan. Typical timescales for the preparation of the tenders is highlighted below and are calculated for projections and budgetary purposes though these are likely to vary between one tender and another.

Activity Timescales Responsibility

Compilation of tender document and guidelines document 2-5 days Procurement

Publication of tender 2 days Procurement

Creation of committee team 3-5 days Procurement Committee

Scoring and weighting of tender evaluations 3-5 days Technical & Procurement Committee

Interviewing shortlisted candidates or suppliers 1 week Procurement Committee

Samples and evaluation 1-2 weeks Technical Staff

Screening suppliers/consultants 1-3 days Procurement

Checking references 2-5 days Procurement

Drafting contract (if necessary) 1-3 days Procurement

Contract award 1-3 days Procurement Committee

Informing unsuccessful participants 1-3 days Procurement

Documentation of entire activity 3-5 days Procurement

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At times some tenders may require further time due to the complexity and nature of the tender and

timescales from conception to conclusion will vary.

5.8.4 Preparation The approval authority as well as the delegation of approval authority must be dictated by the SMT (if any) and be cascaded across projects to help clarify each approver’s role and responsibilities. Where members of the department have multiple tasking roles, the duties and responsibilities must be clearly defined. There are basic principles to ensure absolute clarity on member’s roles and responsibilities and some of these include; A basic guide to these principles is as follows;

1. The budget holder should ensure there are sufficient funds available to approve the purchase.

2. The authorities delegated should review purchase requisitions and other expenses to ensure sufficient evidence is provided.

3. Those delegated authorities must sign and approve all expenses on AX without unduly causing

delays. Members of staff with a procurement responsibility who prepare procurement documents or selecting suppliers should avoid approving their own purchase requests and expenses particularly when the budget holder is the procurement department.

5.8.5 Roles and responsibilities for procurement processes. There are some fundamental areas within the procurement process for a smooth approval process and sign off and these principles include preparation, review, approval and authorisation. The roles and responsibilities of the procurement person in relation to this are as follows;

a) Has responsibility for ensuring appropriate procurement procedures are implemented in conjunction with specification, budget and level of purchase.

b) The use of funds is in conformance with Islamic Relief Bangladesh’s or the partner strategy for

the country, location or humanitarian situation and compliance with organisational policies and procedures.

c) A paper log is compiled to reflect procurement and payment is provided for review and

approval.

d) Documentation of necessary paperwork is secure and protected. 5.8.6 Approval and review When the documentation has been prepared it must undertake a review and be then approved. This process should be conducted by the budget holder and finance person to confirm if within the budget and also the scope and objectives are in conformance with the procurement regulations. Reviewing and approving staff must also confirm the supporting documents and only then approve the purchase in question.

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The budget holder’s responsibilities are;

a) Ensure budget is available in the appropriate budget head of project.

b) Ensure funds are available from the original source.

c) Reviewed all attached documents and relevant documents that support the purchase.

d) Has responsibility to make a decision on the use of the budget allocated.

e) A signature to confirm reviews have been signed and ascertained all relevant documentation have been submitted and attached.

The finance officer/accountant has the following responsibilities;

a. Ensures that sufficient funds are available from the donor.

b. To maintain a complete audit trail of original paperwork to support the payment of the

purchase.

c. Ensure there is a consistency between each document and there is no contradiction of any kind.

d. To ensure compliance with policies and procedures and implementation with the purchase

level and the allocated budget.

6.0 Request for Quotation (RFQ) Where purchases are between the amounts of BDT 100,001 to 2,000,000 the purchase department may request for a request for quotation (RFQ) from a range of vendors, usually a minimum of three in number. Once the budget is in place and the approval for the purchase has been confirmed, a specification has been developed the requestor may adopt this method. If however a specification is absent a detailed description of the products and services is present then this may be used. A RFQ template should be used where possible and when a RFQ is unavailable the buyer may consult the procurement department for either a template or relevant advice. It is imperative specifications are used should this be available containing the details of the product/services to be purchased. The RFQ template can be modified to suit the requirements of the local office. A typical RFQ will include the following; delivery address, qty, Inco terms, specification, required date, target pricing (if necessary), samples availability, quote validity and currency etc. A pre-qualification questionnaire (PQQ) or a standard supplier questionnaire be used in cases where a large spend is required for example over 100,000.00 BDT to help identify capability, capacity and expertise. The questions contained within the questionnaire should cover areas concerning the supplier’s size, company registration, financial status, accreditations and client references. Where the purchase exceeds 2,000,000.00 BDT the amount exceeds the threshold one for a RFQ procedure and one must then either adopt the tender procedure, the accelerated procedure (depending on the urgency) or even a negotiated procedure with a single bid (if there are restrictions). The RFQ can be sent to the vendors by an electronic email (or hard copies in the absence of ICT equipment and resources) and will comprise an email with the attached documents such as the

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specification (if necessary), standard supplier questionnaire or a terms of reference (TOR). For RFQ’s pertaining to works the relevant documents such as the bill of quantity, floor plan, schedule of works, architects drawings and colour schemes must be attached to avoid delays from potential vendors. Vendors may submit their bids by post with all the information required, including key documents required for the evaluation if the circumstances necessitate and in the absence of ICT equipment and resources. When quotations are returned they are to be evaluated individually and the cost be analysed in a matrix format with a complete breakdown of costs highlighting goods value, VAT and total value. Vendors may submit their bids by post with all the required documents including the key data required for the evaluation. The RFQ must be clearly marked as an RFQ and not an order confirmation or any other contractual document such as the purchase order. In instances where the projected quote is beyond the value of 100,000.00 BDT a bid evaluation committee may be required if the circumstances necessitate. The bid committee will act similar to the roles and duties as per the bid evaluation committee formed for tender reviews. The procurement officer/secretary may take minutes of the meeting which must be filed away and notes be made highlighting clearly areas where evidence of late submissions or incomplete quotations or bids. Particularly for bids between BDT 100,001 and BDT 2,000,000 where less than three or the minimum number of bids have been obtained, a genuine reason will be required to satisfy the procurement standards. The procurement/bid committee may be required to propose alternative options. All minutes and notes must be documented. In such instances the bid committee must comprise a minimum of three members and this must include a secretary, chairperson and relevant suitable personnel, no panel member should have a conflict of interest with the vendors. When evaluating the bids the same procedure be adopted similar to that of the tender bid evaluation committee as discussed earlier and the evaluation criteria be similar likewise. Where relevant one may award the contract to multiple suppliers as the procurement officer or the bid committee sees fit. 7.0 Procurement tendering procedures It is paramount that the procurement procedures are adopted at all times particularly in relation to the acquisition of goods, services and works. Certain procedures be adopted given the value, the length of the contract and the geographical location. 7.1.1 Tender procedure The tender procedure is the most transparent and effective method and comprises a detailed instructed document containing all the information required. It is always advisable to have an tender checklist outlining the tender procedures for which can be used to ensure accountability and conformity and can then be used as a report when the tender is complete and finalised. The terms ‘tender’ refer to the fact that the tender remains open for a bid from the time of it being publicised until the expiry time. There are two types of tenders; 7.1.2 Local tender With this procedure the tender is advertised locally (where the required goods or services are due to be delivered) and the office location of the procurement department’s where the initial request for the tender was made. The tender may also be advertised in neighbouring towns and countries that

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can provide a cost effective secure delivery which is at the discretion of the procurement officer and the relevant local office staff. 7.1.3 International tender In this particular procedure the tender is advertised internationally by using various resources that attract a much greater global response. This may include the procurement office/division responsible for such purchase to advertise using publications and website as they see necessary. The procedure is to be used as per Islamic Relief Bangladesh thresholds or as per the procurement procedures of institutional funding institutions. For all purchases above the 2,000,000.00 BDT value, a tender will need to be created regardless of whether this relates to goods, services or even works. For this procedure it is essential the following be considered;

An in depth tender document be created comprising a brief TOR (terms of reference) and where necessary a detailed specification containing bill of quantity, diagrams, drawings, plans, history, scope, objective, the role so on and so forth.

Tenders be advertised and remain open for a period of no less than two weeks.

Suppliers be invited and the negotiation to take place in a formal manner including face to face meetings.

A second round of meetings to be held with shortlisted suppliers again through a procedure with rigorous negotiations using best negotiation techniques and achieving best value for money. Where the value of the purchase is high the shortlisted supplier(s) be requested to give a presentation about their proposal and their organisation products, services ,structure, support after sales service and anything else that may be relevant. In this procedure the tender is usually advertised in a public website either on the Islamic Relief Bangladesh website (if available and operational) under a suitable section or on a government/national website where tenders are normally found to be advertised as well as national newspapers. The tender thresholds determine whether a particular tender is to be placed on the website though normally this would coincide with Islamic Relief Bangladesh’s procurement thresholds for e.g. all tenders with a value above 2000,000.00 BDT would quantify a tender advertisement (tender) for goods, services and works.

There are two distinct types of tender procedures which can be used. 7.2 Restricted or a normal tender In order to determine whether to adopt the open or the restricted procedure one must refer to the reasons highlighted earlier for using a restricted tender process. If no restricted tender reason exists then one should refrain from using the restricted tendering process and be vigilant when using such a process as such a procedure being utilised without prior thought or consideration can result in the institutional donor funds being jeopardised and being terminated for an indefinite period. A normal tender must be used at all times unless there is a genuine reason for applying the restricted tendering process. With a tender process considering the goods value exceeds the necessary threshold value then the tender is to be advertised providing full transparency and accountability and the bids be assessed by a bid evaluation committee.

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7.2.1 Restricted procedure

In the restricted procedure a selection of vendors will be invited to participate which may require a pre-qualification questionnaire. Other vendors outside this scope who are showing an interest are welcome to request an invitation which is subject to a pre-qualification questionnaire being completed and approved by the procurement department. A contract notice will then be published in the organisational website highlighting the scope of works and selection criteria for short listing suppliers. A minimum number of contractors/vendors will be selected but not less than five assuming they satisfy the selection criteria. The department can cancel and replace this procedure at any time during the procurement cycle. This procedure can be used in special and exceptional cases where a pre-qualification questionnaire be used where possible. There are several factors that the procurement team will need to consider when adopting this method and that is;

The nature of the goods, services or works The procurement history of these goods, services or works The timescales to procure these goods, services or works The value of the contract of these goods, services or works The geographical requirement of these goods, services or works

Such factors will allow the procurement department to decide whether the application of this procedure is acceptable and accountable. The key principles applying to the appraisal exercise of economical operators under this procedure are;

a) The criteria required is to be agreed prior to the tender document being produced and published.

b) The information requested in the tender document must be that required to carry out the appraisal.

c) The number of candidates agreed to be recipients of the tender documents must be within the range specified in the contract notice, if there are fewer candidates then this will need to be considered by the department/committee.

d) All bidders must be assessed equally particularly in relation to technical and financial stability. The following steps need to be adopted for this procedure;

Prepare, tender and guidelines documents Produce, publicise documents and upload into IRB or the IRW website (if necessary) Send ITT to restricted suppliers, consultants or contractors Tenders invited to selected interested parties and also those approved through the PQQ Receive tender responses or EOI Organise and create an evaluation assessment panel Receipt of tenders Conflict of interest declarations made by the evaluation/committee panel Tender evaluation of bids received Supplier screening Reference checking Contract award Correspondence sent to successful and unsuccessful tenderers

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There may be instances where an open tender or a restricted procedure may not be adopted due to circumstances beyond one’s control this can occur for several reasons and some of these are excessive timescales, shortage of stock or no stock, government restrictions and others. Waiver request forms can then be used to relieve oneself from adopting the full tendering procedure and must only be used in circumstances that are genuine and where one has done there upmost best to explore all other available options and have been unsuccessful. A waiver request form would need to be completed by the budget holder and signed by the relevant Director/Manager. Procurement will then assess this and either grant the waiver or refuse it. 7.2.2 Earnest money: IRB will follow the following conditions regarding Earnest Money:

Earnest money can be @ BDT 1% to 10% depending on the nature and volume of procurement of total quoted value from bidder.

Pay order/bank draft/bank guarantee will be preserved at the Procurement Department.

Procurement Department can waive the earnest money depending on the type of product/service and competition at their own discretion.

7.3.0 Emergency Procurement Procedures The procurement department understands and respects that in cases of emergency the local procurement staff are under a great deal of pressure to deliver in a very tense and sensitive situation and within short timescales. When an emergency occurs it urgently needs to be addressed and the emergency procurement procedure will need to be implemented for all purchases of goods and services up to the value 500,000.00 BDT (five hundred thousand Taka). Any value in goods and services above this amount may be subject to full tendering procedures which are at the discretion of the country director. The country director must approve all emergency purchases as per the IRB sign off levels.

Threshold BDT Emergency Procedure

≤500,000.00 1-3 quotes

>500,000.00 1-3 quotes

Framework agreements to be considered for key suppliers

Under an emergency, procurement authorities can award a contract to a third party without advertising the tender and without any significant approvals. All normal tendering procedures may be lifted if the circumstances necessitate. In summary, where procurement involves a major expense one is advised to obtain three quotes, if not, one quote will suffice. If this is not possible due to the urgency then one must make notes of their procurement activities after a verbal agreement with a supplier. These options apply in the event where no framework agreement, contract or blanket order exists.

Amount (BDT) 1st signatory authority

2nd signatory authority

3rd signatory authority



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≤50,000.00 Project Officer

Project in Charge/Field Team Leader

≤500,000.00 Programme Manager H&RP

Emergency Response Team (ERT) Leader /HoP

Above 500,000.00 CD

Where funding is provided by institutional donors this will take preference over the above procedures and sign off levels, all procurement staff must acquaint themselves with the emergency procedures of the funding institution. If there are no emergency procedures present then one must consult the institutional donor for consent for using the IR emergency procedures. The emergency must be genuine and may fall into one of the following areas (but not limited to these) and be declared an emergency by the head of state or/and the IPD Emergency Panel (chaired by the IPD Director or Deputy Director – Global Programmes Operations).

Where possible a formal document be created for example a tender or a RFQ but if time does not permit this, then create a simple a RFQ by email or even MS Word and send this to a few suppliers who are reputable and have a history of delivering goods and services in emergencies. The procurement authority where possible should be able to obtain at least three quotations if the conditions allow this. Once quotations have been received, the procurement authority provides the following:

A full description of the goods and services

Circumstances of the emergency explained

Vendors approached and the quotes received

Reasoning for selection

Total value of the emergency purchase

Security emergency

Political emergency

Infrastracture emergency

Natural disasters

Man made disasters

Health emergencies

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Essential timescales

Invoice terms reviewed Below is a list of activities for procurement staff in emergencies

Activity Importance of task

Correct specification and quantities received Mandatory

Compilation of tender or a RFQ document or (see appendix 2) Mandatory

Invitation to bid Mandatory

Creation of committee team and conflicts of interests declared Mandatory

Minutes of meeting taken or notes to the file Mandatory

Evaluation of bids/quotes received Mandatory

Interviewing shortlisted candidates or suppliers Recommended if possible

Screening of supplier Mandatory

Drafting contract (if necessary) Recommended if possible

Raise PO (or a manual PO) Mandatory

Seek approval from Country Director (or Head of Mission) Mandatory

Informing unsuccessful participants Recommended if possible

Documentation of entire activity Mandatory

In an emergency the process below would be mandatory.

All documents in relation to the emergency purchase must be filed away either electronically or physically in a secure location. Purchase orders must be raised and approved prior to the purchase of goods and services. It is imperative goods and services not be purchased without a purchase order. If the Country Director / Head of Mission refuse to sign the purchase (or waiver not granted by the Donor) then the procurement authority must adopt the full tendering process and purchase the goods or services using this method. All emergency procurement requests must be authorised by the Country Director / Head of Mission. Where the CD/Head of Mission is not available to sign the order then procurement may acquire signatures from the delegated authorities.

Specification and

quantiies developed

Committee team created

RFQ issued to suppliers

Bids assessed &

COI declared

Minutes of meeting taken or

notes made

Vendor screened

Po raised & sent to supplier

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For emergency procurement requests one must first consult preferred vendors or vendors with whom who have a good reputation in supplying in emergencies or with those that we already have agreements with for example framework agreements, contracts or even blanket orders. This information should be on hand with the Procurement and Logistics Department. Staff are advised to ensure budget is in place before signing framework agreements and other similar contracts. Procurement staff may consider framework agreements which the local or the nearest field office may

already have in place, this will save time, effort and money. If unsure, check with International

Procurement and Logistics Department at the International Office who may provide information

concerning existing contracts and suitable suppliers. Where no contracts are present one may refer to

previous quotes from the most reliable suppliers and procure goods and services at best pricing.

Procurement staff must where possible take notes of events in an emergency noting key decisions

that have been made.

If possible, one may opt for a short term solution and work on the long term solution in the background i.e. lease goods or services in the short term and work on purchases for the long term. Suppliers be requested to familiarise themselves with Islamic Relief Bangladesh policies and guidelines and payment terms must be made clear at the start. Although suppliers may well request full payment upfront, all suppliers must be requested to accept partial payments if possible and bank guarantees be provided in the name of Islamic Relief Bangladesh of the agreed amount. Suppliers be requested to hold their invoices if possible after the emergency situation becomes stable and where possible purchase goods and services with a P card (or company credit card) for all purchases up to 50,000.00 BDT (if available and approved). Suppliers are advised to offer generous payment terms to help avoid delays. On occasions it may be necessary to make a large percentage payment up front but this should be avoided wherever possible. Partial payment terms are preferred with new vendors. Currency fluctuations, all quotations must valid for a given period and any currency fluctuations must be accepted by the supplier wherever possible.

Once the state of emergency has been lifted all procurement authorities are advised to default back to the original procurement procedures or the manual which entail full tendering procedures as per the procurement manual. The definition of state of emergency being lifted would be when the work moves from the DRMD (Disaster Risk Management Department) to the Field Offices. 7.3.1 Emergency Procurement Guidelines Below are simple points to consider when purchasing goods and services in an emergency situation: 1. Prioritise the procurement workload and ensure urgent items are addressed with immediate effect 2. Ensure Purchase Orders are raised for all orders and correct project PIN codes are provided where required 3. Ensure all suppliers are screened prior to engagement even during emergency situations 4. Take advice from Finance about the duration taken to make invoice payments, often in emergencies payments may take longer to reach the suppliers bank account and the supplier must be informed accordingly

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5. Prove clear audit trail of key documents and ensure the Conflict of Interest forms are signed and filed 6. Take into consideration the environment you are working in and stay in communication with key personnel on a daily basis (if possible). 7. Identify what other INGO’s doing within the affected area and where possible communicate with colleagues within the WFP Logistics cluster and IAPG (Inter Agency Procurement Group) consortium for advice and consultation. 8. Procure goods and services from the most efficient and convenient suppliers within the region though this may not necessarily be the supplier with whom we may have agreements with. 9. Ensure financial approval is in place (preferably in writing) and the budget holder is recognised. 10.If possible and if the circumstances necessitate set up framework agreements, contracts or even blanket orders for only the emergency period highlighted with vendors. The agreements are to be in place whilst in state of emergency only (if agreements do not already exist). 11. Procure goods and services from HPC’s (Humanitarian Procurement Centre’s) where normal tendering procedures are lifted anyway outside emergencies this may be a much quicker option (particularly for DG ECHO funded projects). 12. Always consider leasing options as they may be cheaper within the emergency period with a view of purchasing in the long term. 13. Ensure filing of key documents including quotations, emails and letters. 14. Select the best currency when procuring goods and try avoid using the USD or the Euro, local currencies are also acceptable. 15. Make P card purchases if one is available. 7.3.2 Post emergency procurement When an emergency has become more stable and the procurement authority has verified this through communications and thorough consultation with key staff within the field office and the country director. One may then default to full tendering procedures or if post emergency the situation is volatile, sensitive and unstable then one may opt to use the accelerated procedure as per the procurement manual. In some cases items may fall under these conditions which may warrant the implementation of the accelerated procedure such as reconstruction of housing/shelters, WASH activities etc. The accelerated procedure is a process that allows for immediate purchases to be made with more time and flexibility than the emergency procedure that allows the procurement authority to maintain better transparency, accountability and impartiality. If however, the procurement authority has been advised the state of emergency has been lifted and there are no further threats to life and resources then one must adopt the full tendering procedure. To help justify this one may consider the following points when switching from emergency to the accelerated procedure:

I. Investigate the conditions on the ground and the general operating environment II. Consult other colleagues working in other INGO’s and communicate regularly

III. Coordinate with INGO’s in WFP logistics cluster IV. Ensure safety of suppliers and couriers when procuring goods and services

Be vigilant overall in an emergency as the level of risk of bribery, fraud, forgery, corruption, and general price fixing becomes common under these circumstances. The procurement authority must be in control of the situation. Conflicts of interest must also be managed and the relevant forms signed.

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Always print in your records and invoices that the purchase was made in emergency circumstances so when an audit is performed it is clearly obvious the purchase was made under emergency conditions. 7.3.3 Emergency planning Procurement authorities at local level are always encouraged to compile a list of commodities which are available from local sources such commodities will include: food packs, tents, kitchen sets, hygiene kits, blankets, cans, water and other urgent items. Where possible one must consult the international procurement and logistics department (Birmingham, UK) to see what arrangements they have in place for the region. 7.3.4 Vendor screening Procurement staff must ensure all vendors are screened prior to the contract being awarded if however, they must consult the international procurement and logistics team at the International office in Birmingham who have access to this software. 7.3.5 Accelerated procedure Where there is evidence of an emergency particularly a humanitarian crisis the procurement team will speed up the procurement procedures by using the accelerated procedure. In this procurement procedure the tenders shall be advertised (if possible) up to a minimum of five working days where the projected value exceeds 2000,000.00 BDT depending on the value and complexity of the purchase. If there is evidence the purchase is a top priority due a natural disaster, famine, drought, or a humanitarian disaster in which ever shape or form and the need to save lives is of a high importance then it is at the discretion of the SMT or the evaluation committee to publicise a tender or not. The department will determine and judge what is best for the given situation and how best to react to it within the timescales. Procurement procedure requirements;

1. The procurement procedures pertaining to the above must always entail impartiality, transparency, accountability as well as confidentiality.

2. All tenders must be treated in strict adherence with impartiality where all tenders are

assessed in fairness and without any form of prejudice particularly in relation to race, colour, religion, sex, values and beliefs.

It is vital there is also transparency in all procedures and this must entail;

a) Clarity and accessibility on laws, regulations, and rulings on procurement procedures

b) Regular updates on procurement opportunities and procurement procedures including methods of tendering, specifications, selection and award criteria.

Confidentiality of tenders, all tenders are to be sealed upon receipt and where there is evidence of intrusion a note should be made the sender be informed as well as the evaluation panel of the circumstances. Once all bids are received they must be kept safe and locked in a secure storage. The accessibility should resort to key procurement personnel only and every effort should be made to ensure this. A breach here could result in trade secrets being revealed, price fixing, fraud, negligence and other severe consequences to all parties involved. The management of the office should where

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possible promote the value of confidentiality amongst all of their procurement staff in relation to any procurement activity. Procurement staff are advised of severe consequences if found guilty of breaching confidentiality in relation to the procurement policy.

Note; It is at the discretion of the procurement department to decide if the accelerated procedure be adopted. The procurement department may consult other personnel outside this department for further clarification and authorisation.

7.4.0 Negotiated procedure This is a popular procedure within Bangladesh which is required for all purchases up to the 2000,000.00 BDT value range. All Bangladesh personnel must obtain minimum three quotations for all items under the value of 2000,000.00 BDT for which a tender is not required and one must adopt this negotiation procedure with the suppliers concerned. In this procedure, suppliers should be identified using several sources and this may include directories, national press, trade publications, magazines, referrals, preferred vendor list, supplier base, network and other professional directories.

For all purchases in the region of above 100,000.00 to 2,000,000.00 BDT a negotiated procedure must be 2adopted with quotations of no less than three and where possible as many quotations be obtained given the complexity and the nature of the requested items or services. For all purchases within this threshold full prior authorisation from the budget holder is required and the appropriate project code, department code and the pin code be in place prior to the order being placed. Some processes and procedures similar to the tendering process may be used here i.e. when involved in a negotiated procedure the bids may be collated and compiled in a matrix similar to the matrix used for the bid evaluation3matrix of tenders and be presented to the requisitioner in this format if possible. In addition to this the procurement officer may form a committee similar to the bid committee panel arranged for tenders above the value of 2000,000.00 BDT. The procurement department will compose the panel and arrange for the potential suppliers to be shortlisted and the award made using best procurement practices. Suitable templates may be designed and stored by the procurement department including the RFQ, proforma invoice. For emergency procurements please refer the relevant section in the later chapters. 7.4.1 Negotiated procedure with a single bid This procedure differs slightly from the normal negotiated procedure comprising three bids where a single bid will satisfy this given the circumstances. A single bid negotiated procedure must only be used in the following circumstances;

a. In an emergency situation where goods and services are required within a period of normally one month.

2 A normal tender procedure can be adopted if this is necessary for e.g. consultancy projects, works and for services. 3 It is at the discretion of the procurement department to produce a bid matrix for values below 100,000.00 BDT.

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b. Where for proprietary/confidentially reasons the purchase is restricted to a particular supplier to prevent any legal disputes.

c. A vendor is the sole provider of the goods services or works for e.g. a manufacturer has a product from whom their spares, service, maintenance and other products are to be purchased due to limited distribution channels, legal rights, intellectual property rights, patents and other agreements.

d. Where the negotiated procedure with three quotations was applied initially but failed to

receive three quotes due to technical reasons or other reasons which restrict the number of vendors being able to quote for a goods services and works.

e. An extension to a particular contract such as goods services or works were purchased from a

vendor through an initial open procedure or a negotiated procedure where the contract was awarded to a particular vendor and subsequent demand had arisen for the same goods to be purchased of the same kind. Due to contractual reasons they should be purchased from the shortlisted supplier. This procedure be adopted due to time constraints and to avoid any further delays. This procedure must have a time limit where good and services are purchased up to a period of six months maximum from the same supplier and a new tendering process be sought thereafter.

f. In case of services where we are restricted to a supplier for example rent, lease, taxes and

rates.

g. When a supplier goes into administration and their goods & services are available at a loss leader or heavily discounted price.

h. Where goods and services are only available from a single source due to the unique and

bespoke nature of their products.

i. Where technical factors are applicable, and there is a partial replacement factor.

j. Where goods and services are awarded to a particular contractor and when the works and services are carried out there is an urgent need for additional works to be done which cannot be awarded to another vendor due to inconvenience and time constraints. Though the value of the additional works will be dependent on this. Where there is evidence of excessive costs this would need to be investigated and prior consultation be taken place.

k. If a framework agreement is already in place with a particular vendor the agreement is valid

and a legitimate reason to negotiate and implement the framework agreement. l. A consortium or a group network arrangement is already in place i.e. 4IAPG for particular

products and services. This negotiated single bid procedure will be used only in exceptional circumstances and must not be used for reasons other than the above or where this procedure is intentionally used to reduce time particularly in areas where there is a conflict of interest. If however, the above procedure is adopted for lawful reasons then sufficient secure documentation of the tender documents be filed and stored with complete transparency.

4 Islamic Relief Bangladesh are not obliged to such arrangements unless a signed agreement is present.

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There is a process for creating a purchase requisition which must be followed in the event of adopting the negotiated procedure. Where templates are available they must be used and be filed as necessary. There are several other requirements that are essential pieces of information required for supporting this procedure and some of these have been discussed below; A valid formal sealed quotation or an electronic proposal from a supplier from their company email.

A copy of the initial contract established through a previous full or a negotiated tender procedure concluded in the near past (normally within the last twelve months).

An existing framework agreement.

If the single bid/single source option is taken then the procurement authority must arrange for the

waiver form to be completely signed by the relevant persons and this be recorded in the waiver

register and be filed away.

7.4.2 Sole source

Sole sourcing is normally discouraged however it may be necessary when there are no other vendors,

manufacturers or suppliers available for the purchase of particular goods or services. A particular

brand of available goods/service cannot be a sole source (e.g. furniture is a general item; here, a

particular brand for this item cannot be a sole source). Any sole source procurement must be justified

in a waiver form and by the relevant a

7.4.3 Small value purchase procedure All orders below the value of 10,000.00 BDT will not require a RFQ/tender procedure to be followed. Procurement personnel are requested to obtain one competitive quotation for goods services or works below this value. 8.0 Purchase order The purchase order allows the organisation to legally acquire the goods subject to the terms of purchase. The purchase order remains an offer and can only be accepted by the third party, the PO or WO (purchase order or works order) includes vital information concerning the provision of goods or services and some of these are as follows;

Part number Vendor name & address VAT Inco terms Description Delivery address Vendor number Quantity Invoice address Delivery date Value Number of items Payment terms Total value

8.1.1 In brief the process of creating a PO is;

a) Identify the vendor through the appropriate procedure, fill a vendor addition form and arrange for the vendor to be screened and then added to AX.

b) All the purchases of either goods services or works should be made by first creating a requisition within AX (if no system then the office use a suitable alternative system/procedure)

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c) The purchase requisition must include the correct budget codes and other relevant information as required by the AX system.

d) If one is raising on behalf of someone else then the correct budget code must be sought and

be inserted.

e) The purchase requisition contains the correct value of goods, complete specifications, quantity, delivery location, delivery time frame with VAT and must reflect the quotation provided by the vendor. This may include other charges such as delivery, Inco terms, admin, custom clearance, handling etc.

f) The purchase order once approved will need to be checked thorough for any errors.

g) The purchase order is signed and authorised if necessary.

h) The purchase order be faxed over to the supplier or electronically transmitted by email

preferably in PDF format. The purchase order be sent with the terms and conditions of purchase (if present).

i) The order acknowledgements are attached and filed away with the purchase orders.

All consultants shall be hired by the IRB HR department pursuant to the IRB HR procedures and guidelines. 9.1 E-procurement and P cards P cards (purchasing cards) are a method used to procure goods and services without the intervention of formal documentation for e.g. Purchase order. The purchasing card is offered through a bank and has the following features;

A charge card and not a credit card It is not a debit card Entails monthly statements which include individual transactions Total charge per transaction includes VAT, delivery and card administration fee

When circumstances warrant then it is permissible to make online purchases (if available and approved) but this option must only be taken where quotations from a preferred vendor is unobtainable or is exclusive to a particular purchase which may be available as an option as an online purchase. The procurement department (Dhaka, Bangladesh) can make online purchases below the amount of 50,000.00 BDT where a purchase requisition has been raised and fully approved.

The card holder must always adhere to the purchasing card policy and must not contravene this at any stage which may lead to penalties and disciplinary procedures. If there is a purchasing card policy or conditions of use present, then one must comply with the rules and guidelines incorporated within these. The purchasing card is the property of Islamic Relief Bangladesh and must only be used for purchases relating to the organisation and not for any personal reasons.

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The purchasing card must not be given to any other Islamic Relief Bangladesh staff without the consent of the card holder, the card is always restricted to those personnel to whom the card has been issued to and this includes the card holder as well as those person(s) authorised to use by the card holder. No information be released pertaining to the card and such details will include card number, expiry date, security pin, card holders name and more importantly the online card password. Such details cannot be exchanged, released or even discussed by authorised personnel with unauthorised personnel within or outside the organisation. Unauthorised personnel must not attempt to investigate, enquire or discuss purchasing card details with authorised staff including bribing, enticing and soliciting. The purchases made on the purchasing card must not exceed the credit limit within the calendar month. The credit limits must be reasonable and must reflect the average monthly card purchase value. In the event should the card be lost, stolen or damaged it is the responsibility of all authorised personnel to report such incidences to the card holder and provider immediately without there being any delay. The card holder must report the loss or damaged card to the issuer which is normally the bank immediately and ensure all losses are compensated where possible through cooperation with the bank and other authorities who deal with credit card fraud for example the local police, the banks specialist department and possibly IRW’s group legal counsel. The card holder must inform his/her manager immediately of such an incident and where possible arrange for a replacement card to be in place as soon as possible. The card is to be used pursuant to existing policies for the correct use of the card, some of these rules have been highlighted below; When a payment is made a full receipt be requested from the vendor to cover the entire cost including the credit card fee and VAT, delivery and other surcharges. The vendor processes the transactions using a local credit card network.

All orders are placed either over the phone or online, where the details are disclosed over the phone these must only be disclosed to an authorised personnel who is trained and has signed an agreement with the vendor for the non-disclosure of confidential information. When placing orders over the phone one must obtain a recognised sales order reference. For orders over the phone, details relating to the password must not be disclosed under any circumstances. For online orders the correct information should be entered at all times as often three opportunities are always permitted to insert the correct details but once all opportunities have been exhausted it is the responsibility of the card user to inform the card holder of the failure of the purchase due to incorrect details being entered through either negligence or forgetfulness. This therefore could tantamount to the card been undermined, and the account being suspended, terminated or the card holder being fined or penalised. Before the payment is to be made a purchase requisition within AX must be raised to reflect the order value and description, the AX purchase requisition manual must be referred to when raising purchase

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requisitions and must include such details that will enable the purchase requisition (PR) to be correlated with the credit card transaction as per the statement. Insufficient information in the PR will constitute to difficulties in statement and report correlations leading to unnecessary delays. All purchase requisitions are to be raised under the correct vendor codes for credit card related purchases. IR Bangladesh, is currently not supplying services in relation to P card services but may do at some stage in the future. For further information contact the procurement team. 9.2 Contracting When a supplier has been shortlisted and selected to provide goods or services the procurement department or the procurement officer will need to raise a legal document for Islamic Relief Bangladesh which becomes a legally binding contract (once signed or confirmed by the vendor) with the vendor. Examples of legal documents are listed below.

The purchase order must entail the correct information concerning the description of goods and services including delivery, additional costs and be accompanied with the terms and conditions of purchase. For split /partial deliveries, scheduled deliveries and call offs, the PO should specify the shipment dates, delivery locations and the payments be made to reflect the delivery dates. Where at all possible the purchase order contains all the details and the 5pricing be accurate. Payments for high value orders should be agreed and where possible payment terms be agreed with best Inco terms. When the purchase order or contract has been placed, signed and confirmed with the supplier then all other unsuccessful suppliers should be informed in 6writing of the outcome and be encouraged to participate in future bids. All documents pertaining to the RFQ be documented appropriately for auditing purposes, this will include bids received, bid matrix, bid evaluation committee notes, minutes of meetings, all revised quotations, sample evaluation report, conflict of interest forms, and all related correspondence such as successful letters and unsuccessful letters. The contract for goods or goods and services, must clearly state the full name and address of both parties including the 7buyer and the seller. The date the contract is effective from this is an essential

5 Inaccurate pricing can lead to payments delays and Islamic Relief account being on hold with third parties. 6 A professional letter be written for all bids above the value of 2000,000.00 BDT. 7 Normally, Islamic Relief Bangladesh though the company titles may vary from one country to another.

Purchase order (spot or blanket orders)

Contract for services and works

Consultancy contracts

Framework agreements

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requirement as are other clauses and terms and such as payment terms, returns policy, warranties, termination periods, inspection period and others. The contract for works is also known as the contract for works and services for which a contract for either goods or services may also be used as well as works and services contract or a contract for works. A consultancy contract comprises essential details which have been discussed in the earlier chapters and entail the following; consultants name and address, job title, notice period, start date, finish date, consultancy name, contract manager’s name and address, schedule 1 (roles and responsibilities) and schedule 2 (cost and expenses) and more. The framework agreement will incorporate the agreement date, the contractors name, duties of the parties, notice period and termination, limitation of liability, indemnity and insurance, dispute and resolution, signatures and particulars of both parties. All documents pertaining to the RFQ be documented appropriately for auditing purposes, this will include bids, CS, bid evaluation committee notes, minutes of meetings, all quotations, and all related correspondence. The framework agreement will incorporate the agreement date, the contractors name, duties of the parties, notice period and termination, limitation of liability, indemnity and insurance, dispute and resolution, signatures and particulars of both parties. Procurement Department will need to formulate a contract for the relevant goods, services or works and may raise a purchase order. A minimum of two copies needs to be produced, one to be signed and retained by the vendor and the other copy again signed by both the parties and retained by the procurement team. 9.2.1 Contract award When a supplier has been shortlisted the procurement department/personnel will need to formulate a contract for the relevant goods services or works and should raise a purchase order. A minimum of two copies needs to be produced, one to be signed and retained by the vendor and the other copy again signed by both parties and retained by the procurement department. Once a purchase order has been received and signed by the supplier subsequent payments can be made against it. 10.0 Why tender

There are numerous advantages for having to tender and some of these are

Provide transparency, impartiality and accountability Avoids fraud and other form of criminal acts A method that is easily auditable Full visibility of funds spent with appropriate legal documents Provides equality and diversity amongst potential bidders In depth tender document comprises full details and specifications Targets and deadlines are clearly defined All bids are judged fairly by a unanimous committee Losing bidders are given a reflection on their bid package and weak areas are highlighted. To buy good, services and works for best for money

10.1 Tender documents

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All purchases that are above 2,000,000.00 BDT as mentioned in earlier chapters automatically require an open tender process which must be produced and compiled in the best format within the set timescales. All tenders are to conform to Islamic Relief Bangladesh guidelines and institutional donor procedures such as SIDA, DFID as well as others. Tenders that are being produced specifically for projects funded by other institutions must conform to the institutional guidelines as laid out in their procurement procedures. The following are essential documents and information required in the compilation of the tender. Specification – The specification must be detailed about the required goods or services this must include dimensions, colour, technical details, features, project details, quantities, conformity and other relevant information. Terms of reference (TOR) – This must contain all the key data required for the project, consultancy or service required. The TOR must be complete with the information highlighted below;

Introduction Deliverables Project background Success criteria Objectives Skills and experience required Tasks and expected days of work Costs Scope Timescales Roles and responsibilities Budget Reporting Methodology

A full description of the goods or services must be provided if the above cannot be submitted within the timescales.

Contract for the provision of consultancy services – A detailed contract covering the terms and conditions of consultancy services. Essential information is required here to compile the contract of which some of these are;

Consultancy title Roles and responsibilities (schedule 1) Consultants name Remedy period Consultants address Notice period Contract managers name Payment terms Contract manager’s address Monthly cost Contract start date Expenses Contract finish date Total cost of consultancy (schedule 2)

10.2 Planning of the tendering process It is essential that one plans effectively for a tender and ample time be invested in the process and compilation of the tender, time and dedication be invested in abundance prior as this will eradicate and minimise errors later. Such thoughts and consideration be given to;

1. Cost reduction opportunities 2. Accurate budgeting of tender achieved through forecasts, historical data and projections for

which the budget must be approved. 3. Identification of relevant stake holders of the tender 4. Notification to the relevant stakeholders concerning the tender request 5. Cost mitigation pertaining to the tendering process

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6. Identify opportunities for ‘value for money’ in the tendering process and minimise cost, man power, energy, resources and technological applications.

7. Reduction in stakeholders as well as key personnel 8. Accurate timescales of the tender process from start to finish 9. Full accurate specification with all relevant data 10. Full TOR received will key information comprising background, objectives, scope, roles and

responsibilities, methodology, deliverables, criteria, costs and so on. There may be other requirements such as planning and building regulation drawings.

11. Bill of quantity, Planning and building regulation drawings 10.2.1 Tenders received Once the tenders have been advertised within the timescales the procurement department will remove the tender from the website and other journals and sources. The tender proposals will be collated and filed accordingly most possibly by electronic means. Tenders are usually analysed by the procurement department normally within three days after the first tender evaluation meeting from the information supplied within the proposals and presented in a matrix format. The purpose of the matrix is to present the information with clarity and a breakdown of all the costs in a presentable format capturing key data in response to the tenders including costs, exclusions, terms, taxes, delivery, indirect costs and other valuable information.

A bid matrix is normally created for RFQ’s beyond the value of 100,000.00 BDT, a bid matrix is an essential requirement for all purchases beyond 100,000.00 BDT though this may exclude tender’s relating to consultancy services. The bid matrix will normally be produced in MS Excel format. 10.3 Tender publication The tender will be publicised on the organisational website for a reasonable time and for a period which the procurement department sees fit. Typically the following are typical timescales given the nature of the goods/services contained within the tender.

The contract notice will include the necessary documents to support the tender and this will comprise;

1. The guidelines document for submitting a tender 2. The tender document 3. Other relevant documents to support the tender such as diagrams, data, terms of reference,

applications forms, drawings and floor plans. The procurement department will arrange to upload the tender onto the organisations website (if available and operational) or the IRW website (www.islamic-relief.org) under the tenders section along with the attachments including the guidelines document. The uploading of the tender should be complete normally within 24 to 48 hours from the time of the initial request was made. The

• Consultancy2-3 weeks

• Goods and relief items2-3 weeks

• Works/services2-4 weeks

http://www.islamic-relief.org/

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authorised personnel will without notice remove the contract notice from the website within reasonable timescales after the expiry date. The purpose of the publication is to attract awareness from various vendors, contractors, consultants and other parties showing interest. It is at the discretion of the procurement department to decide where the tender is to be advertised in which case several sources may be used i.e. 8newspapers, journals, magazines, third sector associations such as the IAPG website. 10.4 Invitation to tender (ITT) Invitation to tender comprises inviting offers for proposed contracts from vendors to enable them and provide an opportunity for a tender to be submitted against the required goods and services. The procurement team will send invitations to those vendors that are;

I. Suitable for the tender, this may include those vendors with whom we have had recent trading history.

II. Those shortlisted from the preferred vendor list, those showing interest through

either regular contact or communication and those recommended by colleagues and associates through their recent trading history.

III. Those suppliers short listed through the PQQ stage will also be sent an invitation to

tender as so will those showing an expression of interest (EOI).

IV. Other vendors will be considered who replied directly to similar previous tenders advertised on the website and who subsequently met the agreed criteria set by the committee.

V. Vendors recommended through networks and consortiums will also be considered

such as IAPG and linked in.

VI. Vendors listed in public and recognised directories The ITT shall include a number of documents by the procurement department to attract the best bids in terms of ‘best value for money’. These documents shall typically be;

a) The tender document b) The guidelines document c) Other relevant documents to support the tender such as diagrams, terms of reference,

applications forms, drawings, floor plans and a contract template. d) Conflict of interest declaration from or committee members and procurement staff9 for all

donor and non-donor funded projects e) Link to IR website of the tender publication

8 Procurement departments are encouraged to use those sources particularly where there is no cost or surcharge for using their facilities in order to maximise bid activity. 9 As found in the ‘Humanitarian Aid Guidelines for Procurement’ annex 2 known as the Sample declaration for

candidates and tenderers. Refer to link; https://ec.europa.eu/echo/partnerships/humanitarian-partners_en

https://ec.europa.eu/echo/partnerships/humanitarian-partners_en

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f) The expiry date of the tender The documents shall include the essential information required to provide contractors with a thorough insight into the tender and its requirements, such information will include;

Tender expiry date Tender reference number (if applicable) Contact details Tender document submission format Tender name Evaluation criteria Company background Timescales Project background Contractual requirements Objectives and scope Tasks to completed Delivery locations and others Full details of goods and services required Cost & expense matrix for consultancies

The ITT will also comprise instructions for the contractors advising them on the format, content, style of the bid. 10.5 Tender evaluation Key data from the tender will captured and a matrix will be produced to highlight the areas of concern and those areas that are a benefit to the organisation. The matrix will be compiled by the procurement department/personnel highlighting integral information required for the evaluation committee. This may include;

Supplier type Financial capacity Product code, model and make After sales service Product/service description Sustainability Quantities Accreditations Delivery timescales & Location and others Complete breakdown of costs including any taxes and discounts Specification including colour Inco terms and delivery method Company registration date / relevant experience Number and value of contracts completed previously in similar trade Experience with other INGO’s including Islamic Relief Bangladesh

All quotations will be evaluated using a defined criteria or a Minimum acceptance criteria (MAC) to allow the committee to make an effective decision. The committee will decide on both the technical and financial evaluation criteria which is to be agreed prior to the quotation being evaluated by the panel, some of the issues to be considered here would be; Procurement staff are emphasised not to accept bids from organisations owned by the same person or group of persons or even belonging to the same parent company for the same tender, in order to maintain impartiality we must allow suppliers to provide bids from a various different organisations (owned by different persons) from various geographical regions and locations. Under no circumstances shall the procurement committee accept bids particularly for tenders from organisations owned by the same person or persons who have financial controlling stake within one organisation and the other or even a fractional financial interest with one or more companies for the same tender. Any suppliers found to be guilty of having financial interests in one or more companies who have provided a bid for the same tender should have their bids/offers rejected and advised that only one company is permitted to submit a bid/offer for one tender only

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Price – Best cost inclusive of taxes, shipping, Inco terms, customs, and delivery charges to the final destination. Relevant experience – Vendors must have the relevant experience for the tender for which they have put forward a proposal.

Value for money – Good value in lieu of price which must be realistic and comprise goods and services of the highest quality. After sales service – Must be able to support the organisation with after sales support by phone or email which must be very effective and with necessary onsite visits. Quality – Good quality brand and be recognised globally for its outstanding quality, performance, duration and adaptability. Sustainability – The product or services deemed environmentally friendly and in conformance with local and international environmental laws. Financial vetting – Vendor is financially capable of supporting the service or goods during and after delivery. Companies house checks – The organisation has been registered with the companies’ house (or a similar organisation) as a registered company to operate from the Bangladesh or its country of origin. Lead times – The estimated delivery timescales from placing the purchase order to the time of delivery to the final destination. Maintenance cost – Cost for maintaining goods and services within the agreed purchase price. Warranties – The product or service comes with an added warranty without any charge and preferably have the option to extend this further for a reasonable fee Health and Safety consciousness – The vendor has a current Health and Safety certificate and is conscious of these laws within their workplace. Accreditations – Relevant accreditations of the organisation in relation to the goods or services being offered are in place and current. Samples – Suitable quantity of samples are provided and of a variation to help make a decision for the most effective product from a range which best fits Islamic Relief Bangladesh’s requirements. Commercial insurance – It is vital the appropriate insurance cover is in place by the contractors/vendors when carrying out services particularly the public liability insurance, product liability insurance, employer’s liability insurance as well as others. Cask back and trade in programmes – Special offers relating to products such as cash back and trade in programmes can be generous and always welcomed by the organisation as a financial incentive. 10.6 Evaluation process

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The main purpose of the evaluation process is to be impartial, transparent and be able to provide complete accountability. The evaluation process is identical for most commodities including goods, services, consultancy contracts as well as works contracts. The process will be balanced and be assessed on a fair basis without any prejudice or discrimination of any kind particularly relating to ethnic origin, race, gender and religion. The procurement department in all its procedures, actions and decisions will not discriminate potential tenderers and candidates on their nationalities and must ensure all participants remain impartial at all times during the procurement processes from conception to conclusion. To enforce this all committee members must sign the conflict of interest form to declare that no conflict of interest exists amongst the bidders with any of the vendors. The procurement department will arrange for a meeting prior to the evaluation committee meeting and enlightening the committee on the evaluation process and the roles of the various personnel at the evaluation committee. It is at the discretion of procurement committee to do the technical evaluation of bids or shortlist according to the financial evaluation if permitted to do so unless there are separate committees doing the technical evaluation and the financial evaluation. All tenders are naturally to be technically evaluated as well as financially and the contract award made on the basis of best value for money. 10.7 Evaluation criteria The evaluation panel are all trained prior to the meeting in evaluating, assessing and scoring against each particular relevant bid. The procurement personnel will prepare the scoring documents for each committee member and normally the scoring criterion is to be agreed prior to the commencement of the meeting with the budget holder/project manager. The value of the contract will determine the scoring and weighting of the contract. The criterion on the scoring sheet may include but not limited to;

Cost in proposal/value for money Credentials Delivery timescales Experience with NGO’s Brand name Relevant experience Proposal response Support structure and years established Financial status and others

10.7.1 Scoring technique and rating Against each of these criteria’s the bid evaluation committee will provide a score for each of the chosen criteria’s, the score will normally range from 0-10 (0 being least effective and 10 being most effective). For each vendor the scoring will be accumulated and then inserted in the overall column and then totalled, the vendor that will accumulate the highest score will be the winning bidder though this may not always be the case as other critical factors will need to be taken into consideration such as those vendors providing ‘best value for money’

The purpose of the scoring is to provide;

1. Clarity on results per vendor and their overall scores 2. Presentation of scores per criteria against each vendor 3. Form of evidence by each committee member to prove their participation in bidding 4. Form of evidence by each committee vendor to prove integrity in their bidding 5. The scoring protects all bid committee members from any form of conflict of interest

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6. Highlights those areas where there has been non-compliancy 7. Evidence and reasoning for disqualifications becomes evident 8. Transparency of each panel members scoring and decision making

There are no prerequisites for the scoring system, each particular bid committee members must score on an individual basis and must not consult one another when scoring, and discussions must only take place once the scoring session is complete and after each committee member has left the room. Criteria’s between 6-8 are normally recommended for a moderate sized tender although this could be increased for larger tenders. The evaluation panel are encouraged to use best scoring techniques to assess bids as inadequate and lack of knowledge in scoring can produce in inaccurate scoring results thus wrong suppliers being shortlisted. Once the scoring criteria has been decided one should compile a scoring guidelines sheet which helps the assessor award the correct scores against each criteria. A typical guide for technical evaluation scoring is printed below against example criteria’s.

Score 0 2 4 6 8 10

Experience with NGO’s;

No experience

Up to one years

Up to 3 years

Up to 5 years Up to 7 years

10 years plus

Years established

Newly established

Less than 2 years

Less than 5 years

Less than 10 years

Less than 15 years

15 years plus

Relevant experience in trade or profession

None Less than 2 years

Less than 4 years

Less than 6 years Less than 8 years

10 years plus

Delivery timescales

2 months plus

6 weeks 5 weeks 4 weeks 3 weeks Under 3 weeks

Financial status (profitability) BDT

Less than 100K

Less than 500K

Less than 1m

Less than 5m Less than 10m

10m plus

Supplier Type other General Order

Sole distributor

Manufacturer

All financial evaluation of bids is to be done separately to the technical evaluation and the financial evaluation committee should not discuss with the technical evaluation committee any matters and vice versa and must avoid conflicting interests. A typical guide for financial evaluation scoring is printed below against example criteria’s.

Score 0 2 4 6 8 10

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Supplier Type other General Order

Sole distributor

Manufacturer

Cost in proposal (total costs inc. taxes)

Above budget and low quality

Above budget and good quality

Close to budget and reasonable quality

Close to budget and good quality

Within budget and good quality

Within budget and Excellent quality

10.8 Weighting The weighting of each of the above categories will vary between a scale of 101-10 depending on the criticality and relevance of each of the criterions above for example; cost will be of a significant importance and this will usually be awarded a weighting of 10 (or 20) on the other hand one may consider past relationship/experience of less importance and this will be a weighting in the region of 3 to 5. The scores will then be multiplied by the weighting (or the appropriate weighting) for each of the criterions above and the individual totals will then be calculated to identify which particular vendor/contractor obtained the highest scoring. The weighting and scoring will always be based on a fair basis without any prejudice, discrimination or favouritism of any kind. It is imperative the scoring be carried out individually and without any consultation and this must be kept confidential at all times until all scoring sheets are collated and summarised by the procurement personnel or the chair of the meeting. For large and complex tenders a more comprehensive scoring and weighting system known as the weighting ranking analysis can be useful. The method is usually applied to give further weighting in instances where it is required. Weighting is often used when scoring against bids that are above the recommended thresholds. When weighting you may want to consider giving higher weighting to factors such as financial position, cost, experience or even sustainability.

The procurement team shall collate all scoring sheets and assess, calculate and document them as appropriate and shall advise the committee of the results within a reasonable time frame which may vary according to circumstances and the work load of the procurement department. 10.8.1 Exclusion criteria for DG ECHO funded projects Any firm / individual found to be falling into one of the situations below as described in articles 93 and 96.2 (a) of the financial regulation supplemented by articles 133 and 133 (a) of the implementing rules11from DG ECHO. Candidates and tenderers shall be excluded from participating in any procurement procedure at Islamic Relief Bangladesh (for all DG ECHO funded projects) if they are found to fall into one of the categories beneath;

10 Weighting is normally between 1-10 though at times can be much higher for example 1-20. 11 Full list of exclusions to be found in the draft procurement guidelines September 2010;



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a) They are bankrupt or in receivership, their affairs being administered by the courts. They may have suspended their business.

b) Being convicted of an offence concerning their professional conduct by a judgement which

has the force of res judicata.

c) Being convicted grave misconduct proven be means which the contracting authority can justify

d) They have failed to fulfil their obligations in relation to payments of taxes pursuant to the legal

requirements of their country.

e) Convicted of fraud, corruption or being involved in any criminal activity.

f) They are subject to a penalty referred to as in article 96 (1).

10.9 Bid evaluation committee

All bids must be evaluated, scored, weighted and awarded by committee members. The bid

committee is essential in the evaluation of the bids and must comprise of individuals who are

competent and possess the necessary skill set to evaluate each particular bid. The bid committee is

normally selected by the CD and will contain no less than one personnel from the procurement

department and at times up to three procurement officers. The CD/procurement department will

select a minimum of one line manager within the organisation whose nature of work is somewhat

directly or indirectly related to the tender. The department will select those personnel directly related

to the tender and those with specialism in the that area i.e. tender requestor, line manager,

departmental head and other senior members of the organisation and this may include the CD,

Finance Manager, Communications Manager, Managers of other departments as well as senior

personnel from Islamic Relief Bangladesh’s other branches or subsidiaries. A typical bid evaluation

committee may typically look like;

Chairperson – A voting member of the bid committee as well as the chairperson of the committee

(normally the CD/Purchasing and Logistics Manager or a senior member of the organisation).

Procurement officer 1 – Shall facilitate the committee members with all the administration support

including the circulation of the evaluation matrix, scoring sheets, tenders either hard or soft copies

and other secretarial duties.

First line manager – May only participate if invited by the chairperson and may often be required

where circumstances necessitate.

Tender requestor – The person who instructs the procurement department to compile and prepare the tender is normally a vital member of the bid evaluation committee and his/her expertise is usually supreme and be considered vigilantly when final scoring sheets are filled in and collated. Consultant(s) – Those consultants who are technically enriched with the relevant skills, knowledge, expertise, qualifications, experience and know how.

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Project/programmes staff – Staff from the project team who are responsible for the delivery of the

project in the field as well as the programmes department who are also responsible for designing

and instigating programs.

The procurement department will invite those individuals as they see fit or where circumstances warrant further invitations to ensure a group of panel members are present with a wide range of technical expertise and are competent in assessing the bids and awarding the correct scoring where necessary. Honesty and integrity is of a high importance and all panel members must score each applicant/bidder with honesty and integrity and there must not be any prejudice of any kind. At times two or three committees may be required for several reasons to ensure best procurement practices, impartiality, transparency, accountability and confidentiality. This can normally be divided as follows; Bid opening committee This committee is responsible for the ensuring all the bids have been received and locked away safely in the safe provided. Note of late bids is recorded and all bids are taken out and presented to the committee on the day of the evaluation. This committee will ensure that all COI (conflict of interest forms are signed and filed away securely. The bid opening committee may also fill in the bid issue form as and when they are issued and also the bids receipts form as and when they are received. Technical committee The evaluation committee here will assess all the bids and provide a scoring for each proposal received based on technical factors once the scoring here is complete suppliers may be shortlisted and recommended for the second stage of evaluation and this may include sample evaluation of goods and services or an interview for consultancy services or meetings with service providers. Procurement department should only make the financial evaluation of received bids. Sample evaluation committee (second stage) A group of individuals can be formed by the meeting chair to ensure products and services are compliant and are of good quality and in accordance with the specification. To ensure this a chairperson should help set up a sample evaluation committee which comprises specialist staff, consultants and other persons with relevant expertise. The chairperson (usually the CD, Procurement Manager or a senior member of the organisation) should chair both meetings and ensure full compliance and adherence to best procurement practices and help make a final decision to shortlist a vendor in the best of interests of the organisation on the basis of best value for money. The results from this meeting should be analysed and documented and where possible a matrix produced to support the decision including sample evaluation results. All staff in both committees must sign a conflict of interest form and the chair to arrange for minutes to be taken for both meetings. Financial committee A group of individuals can be formed by the meeting chair to ensure products and services that are procured are of the basis of ‘best value for money’. To ensure this a chairperson should help set up a financial evaluation committee which comprises specialist staff, consultants and other persons with relevant expertise to ensure there are no financial implications of any kind and that products, services

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are works are procured within the allocated budget, the budget approved (within AX), pin codes set up and there are no financial issues of any kind. The chairperson (usually the CD, Procurement Manager or a senior member of the organisation) should chair both meetings and ensure full compliance and adherence to best procurement practices and help make a final decision to shortlist a vendor in the best of interests of the organisation on the basis of best value for money. The results from this meeting should be analysed and documented and where possible a matrix produced to support the decision including sample evaluation results. All staff in both committees must sign a conflict of interest form and the chair to arrange for minutes to be taken for both meetings. Overlapping committee responsibilities No procurement staff should be part of the technical evaluation, and there must be no overlapping responsibilities between the technical and financial evaluation committees i.e. no members can be the same. 10.9.1 The role and objectives of the bid evaluation committee The procurement committee (usually the Procurement Manager or a senior member of the procurement team) will decide to compose a bid evaluation committee for all tenders valued 2,000,000.00 BDT and above. The number of panel members depends on the length and complexity of the tender. There are key functions of this bid evaluation committee and some of these include;

1. A conflict of interest form is filled in and signed by all members of the evaluation committee.

2. Assist in the short listing of a reasonable number of vendors for the scoring stage.

3. Provide technical expertise and knowledge in areas where required that will help support and contribute in making an accurate, concise and a profitable decision.

4. Ponder over tenders and discuss each of the proposals identifying strengths and weaknesses.

5. Assist in drawing up a list of shortlisted suppliers.

6. Creating key assessment criterions in consultation with panel members and thus ensuring the

criteria covers the essential areas concerned.

7. Providing accurate and concise weighting against each criteria. 8. Scoring against each particular short listed supplier with great honesty and integrity and

without any form of prejudice.

9. Selecting the best vendor/contractor on the basis of ‘best value for money’ for Islamic Relief Bangladesh and all its field offices and subsidiaries.

10. Ensure the correct procurement procedure pursuant to institutional guidelines are being

applied where there is evidence of institutional donors providing the funding.

11. Follow other donor guidelines for procurement of tenders and non-tenders and avoid any non-compliance.

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12. Strict adherence to the Islamic Relief Bangladesh procurement policy and non-violation of it of any kind.

13. Strict monitoring of the procurement process ensuring correct documentation is produced,

completed and documented correctly. The bid committee is to ensure the correct procedure is being followed at all times throughout the bid evaluation process.

14. The minutes of the committee meetings shall be vigilantly written with clarity and appropriate

grammar avoiding short words, initials, slang or foul language. The minutes must include decisions made by the members and their possible justifications for this.

Duties of the procurement committee

1. Ensure appropriate references are obtained of the organisation/individuals prior to contract award of those who have been shortlisted.

2. Ensure the vendor is screened prior to contract award.

10.9.2 Documents to be completed and filed by the bid evaluation committee Conflict of interest A conflict of interest form must be filled in by all members of the evaluation committee and where there is a conflict of interest the evaluation committee members would need to declare this in writing prior to any evaluation of any kind. Any evaluation committee member having a conflict of interest in a particular tender must not take part in the evaluation and this would include selecting the criteria, weightings, scoring and assisting in short listing. Minutes of the meeting For every bid evaluation committee the minutes must be taken and documented as appropriate, this must include the agenda, those persons present, absentees, date of the meeting, meeting location, minutes taken by, points of action (POA). A member of the team should be appointed by the bid evaluation committee to take the minutes and must therefore have the qualities and the relevant training to take minutes of the meetings adopting formality and a degree of professionalism. Email copies Copies of the email that are relevant to the minutes and decisions made be copied and saved in the appropriate file either electronically or in a hard copy file. Notes Other notes that were taken from supplier meetings including vendor names, actions, queries and concerns. 10.9.3 Contract award

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After the bid evaluation committee’s scoring and weighting of all collected bids the Head of

procurement (or senior procurement personnel) will assess all scoring sheets and will then present a

final summary based on the data produced in the procurement committee meeting. The final

outcome may be presented in a form of a final contract award meeting or the department may choose

to communicate by other means for example email, letter etc. depending on the value of the contract

this will be at the discretion of the Head of procurement. The Procurement committee department

may shortlist between two or three vendors and invite them in for a second meeting which would

either entail a presentation to be performed or given the value of the contract may involve a rigorous

negotiation session with either one or several procurement personnel together with key personnel

from other departments who may provide a valuable contribution and support the procurement

department in achieving their objectives and goals.

The procurement department will then assess all the information from the final meeting held with the

shortlisted contractor or vendors and will present their findings to the procurement committee in

whichever format the procurement department sees fit. This may either be through a detailed

presentation comprising graphs, pie charts, bar charts etc. or may even be in a simple matrix format.

Once all the required information is gathered the procurement committee shall make a decision and

communicate this through a meeting or a simple briefing session. Once a vendor is appointed a

purchase order will need to be raised particularly for general goods and services however in the case

of a consultancy contract a purchase order may not be required at the early stages unless a payment

in advance is required for which the requestor will need to raise a PO. The purchase order will need

to be signed off by the appropriate authorities depending on the value of the contract and as per the

purchasing sign off thresholds.

All purchases to be made pursuant to the terms of purchase. For consultancy contracts a ‘contract for

the provision of consultancy services’ must be filled in, signed and return to the procurement

department.

The purchase must satisfy the legal process and be pursuant to Islamic Relief Bangladesh’s legal terms

and conditions. Where the vendor decides to submit a contract the department shall notify the 12legal

counsel for clarification, advice and a review.

The procurement department will do its level best to come to terms either by replacing the vendor’s

contract with an Islamic Relief Bangladesh contract or accepting the vendor’s contract under their

terms.

When accepting the contract of the third party contractor/vendor it must then be given a legal review

by a member of the legal counsel which ensures it coincides with Islamic Relief Bangladesh’s legal

terms and conditions.

When accepting the third parties contract which in effect will override our contract and this must take

a legal review and be acceptable by the legal counsel to ensure terms are favourable for IRB and

acceptable by the vendor.

12 Where a local legal council may not be present the legal counsel here in the UK must be contacted.

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A member of the legal council is not to sign or even counter sign any contract presented by the

procurement department or any contract whatsoever be it a consultancy contract or even a contract

pertaining to goods, services or even works.

Country Director / Head of Mission / or an OIC representative of Islamic Relief Bangladesh can only

sign the legal document/contract on behalf of Islamic Relief Bangladesh. In case of any

changes/amendments to the legal document/contract only be made by HOM/CD/OIC will sign the

Addendum likewise

The contract will need to be signed by a senior member of the contracting party and by a senior member from the relevant department within Islamic Relief Bangladesh. All purchases to be made pursuant to the terms of purchase. The purchase must satisfy the legal process and be pursuant to IRB’s legal terms and conditions. Where the vendor decides to submit a contract the department shall notify the legal expert/council for clarification and advice (if necessary) and will do its level best to come to terms either by replacing their contract with an IRB contract or accepting the vendor’s contract under their terms. The contract will need to be signed by a senior member of the contracting party and by a senior member from the relevant department within IRB as per authority. 10.9.4 Notification process

Once a decision has been reached the procurement department will send a ‘successful letter’ to the winning bidder either through an electronics means or by post which is at the discretion of the procurement department. Once, the vendor has confirmed interest and has accepted the contract by signing the appropriate sections only then will the procurement department issue an ‘unsuccessful letter to those contractors who had not been selected due to one reason or another. If however an unsuccessful tenderer requires a reason for such notification the procurement department shall provide an explanation within reasonable timescales and ensure a complete satisfactory response is given by providing (if necessary) data and statistics from the evaluation matrix and an analysis as well as the scoring/weighting results. A debriefing will also be provided upon request where the procurement department will provide only that information that is relevant and is restricted to the vendor whilst protecting the confidentiality of the other bidders and this will obviously include bidder’s detailed pricing and other relevant information including the trademark. 10.9.5 Tender guidelines All tender documents are to be accompanied by the procurement guidelines document when sending invitations or advertising the tender on a website. Typical terms found in a guidelines document are listed below one may alter or add these terms to their guidelines due to local procurement requirements or restrictions. All tender submissions must comply with the tender submission pursuant to the ‘Guidelines for submitting a quotation’. These guidelines are listed beneath;

1. Islamic Relief Bangladesh (“IRB”) invites quotations in accordance with the documents provided.

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2. Companies providing quotations also referred to as quotation providers are advised to ensure that they are fully familiar with the nature and extent of the obligations to be accepted by them if their quotation is accepted.

3. It is the responsibility of quotation providers to obtain for themselves, at their own expense,

all information necessary for the preparation of their quotation.

4. If you are in doubt as to the interpretation of any part of the process, the IRB’s nominated personnel are The Procurement Department for issues relating to the contents of the quotation, the quotation process and awarding of contract. The department will endeavour to answer written enquiries prior to quotations being submitted. The answer may be circulated to other companies submitting quotations, where appropriate.

5. Quotation providers should not rely on any information received other than that supplied by

IRB’s Procurement department. IRB will not accept responsibility for any information obtained otherwise.

6. Quotations must be submitted for the supply of the whole of the requirements. Quotations

for part only of the Service may be rejected, IRB retains the right to invite or permit variations or alterations to the terms of the documents.

7. All information supplied by IRB in connection with this quotation document shall be regarded as confidential by the quotation provider (except that such information as is necessary may be disclosed for the purposes of obtaining sub-quotations necessary for the preparation of the quotation).

8. No employee or agent of IRB has authority to vary or waive any part of these documents, other than the CD or his nominated officer (Head of Procurement or a senior member of the procurement department) who shall do so in writing.

9. Any quotation provider that directly or indirectly canvasses any member, agent or officer of

IRB concerning the award of the contract for the provision of the services will be disqualified.

10. The insertion of any conditions qualifying the quotation or any unauthorised alteration to any of the quotation documents shall not affect the contract and may cause the quotation to be rejected.

11. No employee or agent of IRB can submit a proposal for any tender or quotation as long as they

are in employment with Islamic Relief Bangladesh.

12. All conflicts of interests must be declared prior to or along with the proposal, failure to do so may result in the proposal being rejected.

If the quotation provider informs the procurement department immediately after submission that there is an error in any of the prices or rates contained in the submitted quote then IRB will afford the quotation provider an opportunity to confirm or withdraw its quotation. However, the amount quoted will be adjusted to correct arithmetic errors evident within the quotation document.

13. All documents requiring a signature must be signed:-

14. Where they are submitted by an individual, by that individual.

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15. Where they are submitted by a partnership, by two duly authorised partners.

16. Where they are submitted by a company, by two directors or by a director and the secretary of the company, such persons being duly authorised for that purpose.

17. The quotation document must be submitted or deliver to Islamic Relief Bangladesh no later

than the dead line quoted to the designated tender box (if posting) and/or one electronic copy compatible with Microsoft Word to [email protected] as advised by Procurement

18. The completed quotation document must:

19. Be sealed (if by post) in an envelope and together with all supporting documentation, be

delivered to the designated box at House 10, Road 10, Block-K, Baridhara, Dhaka-1212, Bangladesh not later than the date and time notified above in paragraph 15, and in the letter of invitation to submit a quote; or

20. In relation to Quotations submitted by email :

21. Quotations and all related correspondence must be submitted from an email address or

domain notified to IRB in the quotation provider's acknowledgement of receipt of this quotation document and to the authorised recipient at the following email address: [email protected]

22. The email title (i.e. subject field) must contain the quotation reference in the subject as

follows: (enter tender title/name)

23. No other information relevant to the quotation should be included in the body of the email.

24. If the attachments exceed 30mb in total, then the quotation provider should split the email into an appropriate number of parts.

NO INDIVIDUAL EMAIL SHOULD EXCEED 30MB AS THIS WILL BE BLOCKED BY OUR SERVER. THERE IS NO LIMITS AS TO HOW MANY EMAILS A SUPPLIER CAN SUBMIT THEIR QUOTATION IN.

25. The time of receipt of the quotation or any other correspondence sent by email in accordance with this quotation document will be the time of its delivery to IRB’s server as shown in the routing information attached to the email.

26. IRB accepts no liability for any losses suffered by the quotation provider as a result of

computer viruses. It is the quotation provider's responsibility to ensure that files delivered to IRB are free from viruses and IRB may reject a quotation which is submitted in a file or files which are or IRB reasonably suspects are infected with a virus and may also delete such file or files.

27. It is the quotation provider's responsibility to ensure that files delivered to IRB are complete

and fully accessible by IRB and are not corrupted or infected by virus and IRB accepts no liability for corrupted files or data.



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28. The authorised recipient or his nominated officer will ensure the integrity of the quotation process and in his or her sole discretion may allow quotations to be re-submitted.

29. IRB may at its own absolute discretion extend the closing date and time specified for the

receipt of quotations.

30. IRB is not bound to accept the lowest or any quotation. IRB reserves the right to reject quotations which do not comply with these instructions.

31. IRB prefer to be invoiced in Taka or USD although the quotations can be submitted in any

currency (in case of international tender). Quotation provider should quote their prices according to the currency mentioned in the Tender guidelines.

EVALUATION OF QUOTATIONS

32. The proposal of the quotation provider must meet the required quality standards as detailed in this documentation.

33. The proposal of the quotation provider will be assessed on the basis of the following criteria,

which is subject to change at any time:

a. (enter criteria) b. (enter criteria) c. (enter criteria)

34. Please note, this criteria is subject to change

35. Quotations will be assessed by a panel of staff who will invite suppliers or may ask for presentations/interviews should that be required to facilitate decision making. IRB may deem it unnecessary for any interviews to take place dependent on the strength of the quotations.

36. Customer references – please provide up to three customers who will be willing to act as

referees. Ideally, the projects that the customers would have had carried out would incorporate moderate customisation and global rollout. We would further like to have an opportunity to visit at least one customer to see project implementation.

37. Right to reject all quotations. The Organisation is under no obligation to accept any

quotation.

10.9.6 SUPPLIER CODE OF CONDUCT

Islamic Relief Worldwide requires all suppliers to adhere to:

1. The Modern Slavery Act 2015 2. The International Labour Standards as defined by the ILO

(International Labour Organisation). 3. The United Nations Global Compact’s 10 principles as stated below:

Human Rights

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Principle 1: Businesses should support and respect the protection of internationally proclaimed

human rights; and

Principle 2: Make sure that they are not complicit in human rights abuses.

Labour

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the

right to collective bargaining;

Principle 4: The elimination of all forms of forced and compulsory labour;

Principle 5: The effective abolition of child labour; and

Principle 6: The elimination of discrimination in respect of employment and occupation.

Environment

Principle 7: Businesses should support a precautionary approach to environmental challenges;

Principle 8: Undertake initiatives to promote greater environmental responsibility; and

Principle 9: Encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption

Principle 10: Businesses should work against corruption in all its forms, including extortion and

bribery.

10.9.7 Supplier selection PQQ (pre-qualification questionnaire) may be sent to those vendors that have no trading history with Islamic Relief Bangladesh if however the vendor has trading history with another branch or subsidiary of Islamic Relief Bangladesh then this may not necessarily be subject to a 13PQQ. Whilst making a supplier selection other donor procedures and guidelines will be followed that Islamic Relief Bangladesh are obliged to and this may include DFID, SIDA and many others. A vendor may also be 14screened to ascertain whether they have any involvement in criminal activities pertaining to bribery, money laundering, child labour and many other serious convictions and penalties imposed by other bodies, regularities, government, authorities and so on. The PQQ will be considered particularly for large contracts though it is at the discretion of the procurement department if these be used for much smaller projects of low value. All vendors regardless of size, origin, nature, financial growth have the right to submit an EOI (expression of interest) to any particular tender at any given point in time. Companies trading in Bangladesh will undergo a company’s house check to verify their status and their financial status now and in the near past. For those organisations that have not declared their financial status because they may not have been in trading for more than two years or any other legitimate reason then Islamic Relief Bangladesh will investigate and contact the appropriate personnel as necessary.

13 The local procurement department can adopt the PQQ procedure to establish if the organisation is compatible and competent in its operating environment. 14 Vendor screening is currently performed by the UK Procurement team who can be contacted on; [email protected]

https://www.unglobalcompact.org/what-is-gc/mission/principles/principle-1










mailto:@irworldwide.org

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Selection will be based on the necessary credit ratings, profitability, and value of the organisation. The aim of the financial checks is to ensure stability, financial capability to meet the requirements of the contract and ensure deliverables are met. Other criterions used to assess both present suppliers and those being considered would also be whether their Health and Safety policies are in place and other regulations that are adopted to protect their employees and fulfil their employment obligations. Past experience with current vendors and those that are in the preferred vendor list will be in an advantageous position though other vendors will always be considered and selected on the grounds of competency and much of the other factors discussed throughout this manual. 10.9.7 Post tendering Once a tender is complete the procurement staff should contact the project lead to ascertain if the goods or services met the expectations and all items were delivered satisfactorily and pursuant to the agreed specification. One must where possible draw up a list of lessons learnt from the existing tenders and identify any errors made, lessons learnt, complaints received, unnecessary costs occurred that could be evaluated prior to a similar exercise being undertaken in the future. The procurement staff should evaluate these lessons and use these as a pretext to acquire best products within best timescales and at best value for money. The objective is to have a post tender review and inspect the good and services delivered and reflect on lessons to be learnt. Procurement staff are encouraged to have post tender reviews with project staff and identify all areas of the procurement function where vast improvements can be made to achieve ‘best value for money’ and some examples here where improvements could be made are;

Specification

Cost

Quality

Quantity

Timescales

Sustainability

Lean practices

Supplier relations

Communication Staff are encouraged to take minutes of a post tender review and keep this on file where it is accessible at all times and where this valuable data can be used for continuous improvement as well achieving better value for money for any similar future prospective tenders and thus achieve customer satisfaction. All information in relation to any particular tender or RFQ be kept confidential at all times and this would include all the bids received, prices, supplier names, contact details, contractual details and other relevant details. Such information must not be released to any persons without the written approval of the procurement team locally or at the international office. Any persons requesting any information to any particular tender, RFQ or a procurement transaction must request this in writing and seek approval from the chairperson or head of the procurement committee with genuine and legitimate reasons. 10.9.8 Lean procurement and continuous improvement

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Procurement staff are encouraged to understand the concepts of lean procurement and continuous improvement and implement this into daily practices by adopting certain measures such as;

Waste reduction – Reduction in excess and waste Sustainability - paperless environment Automation -effective use of systems Rationalising the supplier base – cut down on the number of suppliers particularly those of

low value Cost reduction – reduce unnecessary cost in every aspect of the business Inventory reduction – reduce stock Time management – manage time effectively and spend more time on high value purchases Procurement process – streamline your processes

Streamlining of processes is essential and one must therefore consider various tools used to do this for example;

Value stream mapping The five whys The seven wastes The five S (5S) Poka Yoke (mistake proofing) JIT (just in time)

The above are just a few simple methods used in today’s modern procurement environment to eliminate waste and cost make the department more efficient and productive. Just some examples here are to reduce repeat ordering thus reduce stock, cut down on low value suppliers and adopt JIT, reduce mistakes by adopting Poka Yoke methodologies and so on. Receive brochures and supplier information by email (electronically) cut down on the paper on your desk and use the system more effectively, file away and maintain all excess information or even better shred or archive. Kindly ask the vendors to stop sending paper brochures, price guides, specifications etc. by post and ask them to email this to you (if necessary). A lean department reduces their WIP (work in process) and works on lead times, reduces inconsistency and thus reduces waste it also has a culture of continuous improvement in the work place so one is always advised to set goals and targets and make improvements regularly without impacting the operations of the business. One is urged to measure oneself in undertaking certain daily tasks for example time in creating an order, creating a vendor in AX, creating a tender and measure this from start to finish. Much time is spent in tendering exercises therefore procurement staff are advised to take minutes effectively and capture key data that is a requirement, remember time wasted in certain procedures can be spent elsewhere saving money for the organisation. 10.10 Best value for money (BVM) It is imperative all tenders, RFQ’s and direct purchases and all levels of negotiations be conducted on

the basis of ‘best value for money’. IR strives to achieve this and we are accountable to our donors,

auditors as well as third party regulatory bodies and need to convince them that their funds are

spent using this concept.

The ‘best value for money’ approach for IR is a combination of several factors and these would need

to be comparable in order to achieve this. This formulae is a combination of several factors which

have been displayed in the table beneath;

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Price

The goods and services be obtained by achieving the best price which may not always be the

cheapest but that which reflects the best market value for the items/services.

Quality

The quality of goods must meet the minimum standards and should not be in any which way, shape

or form be inferior that may result in complaints, concerns or even reputational issues for IR.

Procurement staff are encouraged to ensure they receive the best quality of goods and services

given their budget.

Timescales

The delivery timescales for the goods, services or works be within the agreed delivery dates and

should not cause any unnecessary delays to our overall project implementation timeline.

Supplier

The supplier should be recognised and have a reputation of delivering the goods and services in the

market place and should cooperate with IR throughout the complete procurement cycle in a

professional manner. The supplier and their entire supply chain must be free of any forms of

modern slavery.

Quantity

Maximum quantity of goods, services or works be obtained through best price and utilising all of the

budget (where possible) available to help delivery the maximum quantity to the beneficiaries.

Procurement personnel are also advised to consider the above factors which are an integral part of

the IR Procurement BVM but staff are advised to be conscious of this. Staff must be flexible and

dynamic to strike a balance between price, quality, timescales, quantity and supplier to achieve the

very best value for money for each and every procurement transaction performed.

Sustainability

Best value for money

(BVM)

Price

Quality

TimescalesQuantity

Supplier

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All environmental factors be taken into consideration in the acquisition of goods, services or works

as well as local and international environmental laws.

The above factors be taken into consideration when adopting the BVM approach and all

procurement personnel are advised to work closely with the project/programmes department to

achieve economy, efficiency, effectiveness and equity at all times. An example has been provided

beneath to ensure beneficiaries are receiving the best products or services and feedback be sought

from the project/programmes teams, negative feedback through beneficiary surveys be analysed

and assessed so there is no repeat of this in future procurements and this be escalated with

suppliers (if necessary) and similar occurrences mitigated.

Definition Application

Economy Hygiene kits delivered to the beneficiaries at

Best Value for Money, as per the IR BVM

formulae above

Efficiency How many beneficiaries used the hygiene kits

and what were the reasons for not using them

Effectiveness Have hygiene issues decreased as a result of

these being delivered in the affected areas

Equity Have the hygiene kits reached all of the

intended beneficiaries in cities, towns and

villages.

11.0 IR Bangladesh Procurement Due Diligence 11.1 Introduction Procurement exercises are a major concern through which corruption in various forms has been prevalent. According to Transparency International a staggering ‘US$2 trillion disappears annually from procurement budgets ’

The impact of corruption on the Third Sector is worse than any other sector primarily due to the fact that the goods and services being requested are for the benefit of the disadvantaged people and those in need of aid.

Having appropriate due diligence measures in place is an integral part of good procurement practice and also helps to satisfy relevant stakeholders.

Due diligence has been institutionalised as one of the six key principles of the UK Bribery Act of 2010. Under principle 4 of the Bribery Act, every firm should have due diligence policies and procedures which should cover its organisation, operations, processes, supply chain and relationships with its partners. The purpose of the inclusion of a due diligence principle in the Bribery Act is to put procedures in place that will help organisations to prevent bribery committed under its name or on its behalf. The local office should arrange for all procurement staff to attend suitable anti-bribery courses on a periodic basis.

Undertaking appropriate due diligence on prospective suppliers also ensures that the organisation meets its obligations under Counter Terrorism Funding and Anti-Money Laundering legislation.

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This higher level due diligence is often referred to as 'improved due diligence'. It usually involves a very detailed value assessment, which takes place before signing a memorandum of understanding (MoU) and includes both management as well as the operations side of risks.

Islamic Relief Bangladesh Procurement guidelines have a range of actions that incorporate due diligence, to ensure that donor funds are used correctly, efficiently, effectively in a transparent and accountable way that brings goods and services to beneficiaries.

Please see the following related documents: - IRB Supplier Code of Conduct to be read in conjunction with: - IRB Supplier Guidelines - IR Bangladesh Supplier Questionnaire 19 ‘Curbing Corruption in Public Procurement – A Practical Guide’ p8, Transparency International 20 Perry and Herd, 2004 as quoted by CIPS study in Due Diligence 63 - IR Bangladesh Procurement Due Diligence Checklist - IRB Conflict of Interest form These guidelines are to be read in conjunction with all other IRB policies with special reference being made to the finance manual. Any concerns or questions should be emailed to [email protected] 11.2 Supplier Code of Conduct Islamic Relief Worldwide requires all suppliers to adhere to:

1. The Modern Slavery Act 2015 2. The International Labour Standards as defined by the ILO

(International Labour Organisation). 3. The United Nations Global Compact’s 10 principles as stated below:

Human Rights

Principle 1: Businesses should support and respect the protection of internationally proclaimed

human rights; and

Principle 2: Make sure that they are not complicit in human rights abuses.

Labour

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the

right to collective bargaining;

Principle 4: The elimination of all forms of forced and compulsory labour;

Principle 5: The effective abolition of child labour; and

Principle 6: The elimination of discrimination in respect of employment and occupation.

Environment

Principle 7: Businesses should support a precautionary approach to environmental challenges;

Principle 8: Undertake initiatives to promote greater environmental responsibility; and

Principle 9: Encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption











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Principle 10: Businesses should work against corruption in all its forms, including extortion and

bribery.

11.3 IR Bangladesh procurement due diligence supplier questionnaire The following questions are suggestive and will require the procurement personnel to adapt according to requirements. Whilst acknowledging the generic nature of most of the questions, the supplier questionnaire should be unique for each major tender that it is used for. Here are some general questions (using a tender for printing services as an example). Supplier Information and Background 1. Name of supplier 2. How many years has the business been in operation? 3. Are you part of a larger group – if so, please name them 4. How many offices do you have globally and what is your presence in Bangladesh? 5. Total number of employees 6. What is your annual turnover? 65 7. Please provide your last year’s accounts 8. Please provide your standard contract or terms of business 9. What percentage of the organisation’s income is from the tender specified commodity? 10. Do you provide any other services? 11. Have you dealt with these product or services requested? Customer services 1. What are the operating times of your customer services? 2. What provisions, if any, do you have in place to deal with out of hour’s queries including weekends and bank holidays? 3. What is the process of escalating matters if we are not satisfied with a particular issue or customer services in general? 4. Please indicate how you would deal with Islamic Relief Bangladesh as a client and indicate whether we would have an account manager, what other elements would be included in your customer services. 5. Do you have any ‘green policies’ or offer a recycling service? 6. Are there any goods or services available without any charge, please highlight these in your proposal. Customer References 1. Do you have any customers in the ‘not for profit’ sector? 2. Please provide two or three customer references

11.4 Supplier Questionnaire: Further questions for consideration Company profile Here are some further questions [using a tender medical insurance as an example].

Describe the demographics of your company e.g. operational office locations, geographical scope etc.


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Provide details of your company’s business and management structure e.g. ownership and significant shareholders / investors, parent and associates, affiliates and subsidiaries, management process and structure etc.

What medical insurance market sectors and disciplines your company trades in?

What medical insurance market sectors and disciplines your company specialises in? Key contacts

Who would be the primary contact in your company for us to communicate with during this tendering / RFQ process?

What are the unavailability dates of the relevant staff’s e.g. vacation / planned absence etc. Financial information

Provide a percentage breakdown of the revenue income from similar goods and services in contrast to other goods or services that you provide.

What processes you have and what regulatory conditions you operate under to guarantee sufficient funds are available to support these goods or services. Health, safety and security

What is your company’s policy and commitments to health and safety?

What disaster recovery measures do you have in place?

What resources and security measures do you employ to protect client data? Existing clients

Geographically where are your clients located?

Please provide details of length of business with current clients

Please provide references for up to two of your clients who we may ask for references. We would not approach them without your prior consent. Skills, services and service level indicators

What level and type of staff would you appoint to Islamic Relief Bangladesh’?

How would you organise them to service Islamic Relief Bangladesh’s targets?

Give an example of how you currently provide resources for a similar client?

Provide examples of measured service level indicators that you have in operation with major customers. Implementation and support

What do you believe to be the three key strengths of your business in delivering a complete global service for a client like Islamic Relief Bangladesh?

State your company’s implementation process and timelines if it was to win this business and give examples of how you would ensure a seamless changeover.

What would you need from Islamic Relief to achieve such timescales?

What languages and delivery options do you provide support in your policy documentation?

What is your preferred communication method?

What examples do you have of processes that enable you to ensure that a customer’s prices are current and valid?

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How would you describe your organisation’s client problem solving approach?

Describe other the support services available on an ongoing basis 11.5 IR Bangladesh procurement due diligence checklist

User instructions; Adapt this checklist to suit the complexity of your procurement activity this is not in order of importance or priority in case there are any questions or concerns then kindly direct them to; [email protected]

Options Suggested checks

Web Based Procurement

Check their domain name registration details

Look at the registration details of their domain name and double-check that this is as you would expect. The domain name should be registered to the business. Use caution if it is registered to an individual or if the address is different to that published on their website, or in their business registration documents. Domain tools is useful for running free WHOIS requests on domains.

Consultancy Agreements - confirm

Qualifications

Does the supplier legitimately hold the academic qualifications or professional status as it claims in its CV?

Has the supplier held the job positions and completed the work experience it claims in its CV?

Analysis of ownership Check that the business is a legal entity. What sort?

Check who owns the business. Is there a parent company?

How long has it been in business?

Is it Bangladesh based, offshore or part of a multinational?

If your supplier is based in the Bangladesh and they are a limited company, run a search on the Companies House website. Check their registration date, registered office, and download their latest round of accounts (if available). If this information doesn’t correlate with what you have already found, it’s time to start asking questions.

For VAT registered suppliers within Europe (most should be registered), you can check the validity of their VAT numbers through the VIES website.

How many staff does it have in total? How many staff will deliver against this contract?

Check there are no actual, potential or perceived conflicts of interest.

Analysis of delivery

Undertake a comprehensive check of the supplier’s delivery.

Can the supplier provide reliable references for similar work? (They must be recent.)

Do the supplier’s staff have the capacity, capability and expertise to deliver?

Who is the contract manager/account manager? Ask for their CV.

Does the supplier have systems and processes to ensure delivery?

What are the supplier’s systems and processes for managing contract implementation/service-level agreements?


http://www.domaintools.com/

http://www.companieshouse.gov.uk/

http://ec.europa.eu/taxation_customs/vies/

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What processes and methodology does it use to check and maintain quality?

How is reporting managed, by whom? How are reports checked?

What risk management analysis has been done on the contract?

How comprehensive and effective is the risk management plan?

Does the supplier have a licence for all copyright in the deliverables?

How are confidential records stored?

What processes does the supplier use to stimulate innovation in delivery?

How does the supplier handle exceptions or variations?

Does the supplier comply with Bangladesh product standards (if appropriate)?

Check the staff policies on code of conduct and confidential information.

If appropriate, can the supplier verify sustainably sourced goods?

Is there any industrial relations history or current issue/s?

Analysis of finances Check the supplier’s current and future financial viability (for the expected contract duration).

View copies of the supplier’s annual reports for the past three years.

View a copy of the last independently audited accounts. Check profitability and liquidity.

Undertake a credit check

Check evidence of insurance (if required).

Assess any material risks e.g. pending litigation.

Check whether there are any current or pending issues with Inland Revenue. A sk the supplier to confirm.

Are there any bank or third-party guarantees?

Site visit – supplier Visit the supplier’s premises and check operational conditions.

Request demonstrations to ensure capability

Talk to key staff. What is working? Where are problems and barriers?

Check regulatory compliance e.g. certificates and procedures.

Report immediately to IR Management any suspicion or proven case of modern slavery linked to the supplier’s activities,

Site visits – customers Have the customers purchased the same types of goods or services that you are intending to purchase?

Has the supplier’s performance been:

- On time?

- To the required specifications?

- Within the budget?

Verify the quality of the goods or services delivered.

Where has the supplier performed well? What could improve?

Have there been any issues? If yes, how well were they handled?

Would you use the supplier again?

Research Do a media check on the supplier and its business?

Check its reputation for quality of goods or services.

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Check its reputation for innovation.

Check if its products have been independently tested.

Has the supplier won any industry/professional awards?

Security checks Does the supplier have any convictions that could impede the contract?

Are there any pending criminal cases that could affect the contract?

Can the supplier obtain and maintain security clearance (if required)?

Verify Trade

Accreditations Some suppliers, particularly manufacturers will have quality or standards

accreditation. Typically this will be in the form of ISO 9001 or similar. If the supplier has this accreditation then you should verify it and read up on their obligations to you and the service that they are required to provide.

Referee checks

(referees must be relevant to the goods/services you’re purchasing, and recent or current customers)

What’s your relationship with the supplier?

What types of goods or services have you purchased?

Is the supplier currently providing you with the goods or services?

Has the supplier’s performance been:

o On time?

o To the required specifications?

o Within budget?

How would you rate the quality of the goods or services delivered?

How accurate is/was the supplier’s reporting and invoicing?

Where has the supplier performed well? What could it improve?

How much contract management does the supplier require?

Have there been any issues? If yes, how well have they resolved them?

Have there been any concerns around honesty or trustworthiness?

Would you use this supplier again?

Screening of Suppliers All suppliers are to be screened using the Refinitiv software

All screening is to be carried out prior to the completion of the procurement exercise

All shortlisted vendors are to be screened and no final negotiations are to take place without screening

For all tendering exercises the bidding company and the owners/directors are to be screened

Please refer to the Procurement Manual for any updates in the screening process

11.6 Global compliance

Sanctions, export controls, licensing and duals use items

Country offices are to ensure the appropriate licences and permissions are obtained before shipping.

One must take due care when arranging for the shipment of goods to the high risk and sanctioned

countries and therefore Procurement and logistics staff need to ensure the following;

The goods that are shipped are compliant with the export controls of the country from where the goods are leaving or manufactured. Good of US origins are compliant with US

http://www.iso.org/iso/iso_9001_2008

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export controls and sanctions and where applicable the correct US licenses are secured (BIS license or exemption from license; EAR99 category). The embargoes countries need to be given due attention before having confirming a purchase (Cuba, Iran, Sudan, North Korea etc.). Other restrictions may be imposed by UK, EU or UN bodies where export licenses may need to be sourced depending on the country of origin or the country where the payment is originating). There could also be export restrictions, banks due diligences or embargoes on specific commodities or countries.

Goods imported are also compliant with the import controls of the final destination.

The goods are checked against dual use and military prohibited goods lists. Dual use item will include software and technology as well as other physical goods that may have another purpose such as military and if fallen in the wrong hands it may have immense repercussions and used for non-humanitarian purposes such as criminal, terrorism, repression, and violence. The goods being shipped must be used for their intended purpose and not for any unlawful or other prohibited use. Staff are to ensure full tracking of the items from purchase to distribution and through to final use including disposal and this be recorded for auditing purposes.

Islamic Relief Worldwide has a dedicated extranet site containing information on exports controls

and sanctions therefore all staff are advised to visit this website regularly for information.

For further information please can you refer to the link beneath;

https://extranet.irworldwide.org/ProcurementLogistics/Latest%20info/sanctions.aspx?

11.7 Data Protection and Privacy

Personal data is information that relates to a living individual who can be identified (either directly

or indirectly). Examples of personal data can include an individuals’ name, email addresses, phone

numbers, image (photograph or video), religious belief, health status, identification number, bank

details etc.

Procurement staff must adhere to the IR’s Data Protection Policy available from IRs policy library

whenever collecting, storing, using, sharing and disposing personal data of individuals such as

vendors, cash paid workers and consultants. This includes only collecting the minimum level of

personal data required, keeping personal data secure and confidential at all times, and confidentially

destroying personal data when no longer required.

Adhering to this policy is necessary to ensure compliance with data protection laws and regulations

(such as the GDPR), humanitarian principles and standards (such as the CHS), and is an ethical and

moral obligation aligned to our faith based values of Rahma, Amana and Ihsan.

In particular, all procurement personnel must be aware to:

Ensure that service contracts with third-parties that process personal data on our behalf (such as enumerators, software providers, banking services etc.) include standard data protection contract terms. See DPS 3 Standard Data Protection Contract Terms.

Take the mandatory Data Protection & Privacy online training course available from the IR Learn Portal (https://www.irlearn.org.uk/).

Any questions can be directed to the Data Protection Team: [email protected]

https://extranet.irworldwide.org/ProcurementLogistics/Latest%20info/sanctions.aspx?

https://www.irlearn.org.uk/


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For further information on IR’s Data Protection Policy and GDPR one is advised to visit the extranet on the link below for the most up to date policies;

https://extranet.irworldwide.org/dataprotection/default.aspx

11.8 UK Modern Slavery Act 2015

Islamic Relief must ensure that we comply with the UK Modern Slavery Act 2015 in all our country

and field offices around the world. Certain measures need to be in place to help mitigate risks in

their supply chains of which some have been highlighted below

Contracts with suppliers must contain the relevant clauses on modern slavery

Suppliers code of conduct must refer to the Modern Slavery Act 2015

Provide training and support where applicable to IR vendors to raise awareness of modern slavery this could be in the form the code of conduct with MS in contracts, agreements, and tender documents which compel them to comply with Modern Slavery Act 2015

Country offices must have a whistleblowing procedure to ensure any concerns or vendors suspected of modern slavery activities are instantly reported.

All suppliers be sensitised using the modern slavery sensitisation forms supplied by the international procurement department

11.9 Anti-Bribery and corruption The ant bribery act came into force in 2010 and therefore the organisation has obligations to ensure

that all of its offices and staff are free from bribery and corruption. Under no circumstances shall

any member of staff bribe other suppliers, consultants and cash paid workers similarly they must not

accept any bribes from suppliers, consultants and cash paid workers or other parties/persons such

as company representatives.

If any member of the procurement and logistics department has attempted to bribe other persons

then this must be reported to their manager or the CD (country director) immediately. If any

procurement staff are subject to being bribed then this must also be reported to your manager and

the CD. Any supplier convicted of any wrong doing should be struck off and debarred from doing

any further business with IR, the supplier debarred register be updated to reflect this containing all

the relevant information.

Any procurement staff whether permanent, temporary, consultants, voluntary or those on a fixed

term contract must not engage in fraud, bribery or corruption and must understand the serious

consequences of this on the organisation and IRW as a whole. All procurement staff are to ensure

they remain in an ethical, impartial, fair, honest and transparent manner at all times and there must

be strict adherence to the laws of bribery and corruption both locally and internationally.

For further information refer to the Anti-Fraud, Bribery and Corruption policy in the link beneath;

https://extranet.irworldwide.org/policylibrary

12.0 Time extension

It is important that all potential vendors are given adequate time to submit a proposal for the tender

or a RFQ, the time allowed is calculated on the basis of the complexity, technicality and the size of the

tender/RFQ.



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At times if the circumstances necessitate then an extension be given to an interested party for their

tender proposal due to a number of reasons including extensive pricing, support pricing, price

registrations and accurate pricing based on exchange rates, fluctuating global market prices as well as

the unexpected.

If an extension is granted to a vendor, care must be taken to allow sufficient time without effecting

the project time plan etc. Implications on projects and timescales must be considered when granting

such extensions. It is imperative when time extension is requested by a vendor or a candidate (if

approved) the time extension must be granted to all participants and not just a particular candidate

or an organisation. Time extensions must be granted for legitimate reasons.

12.1.1 Derogations There may be derogations to the rules particularly in relation to DG ECHO funded projects as per

section 5.1 in ‘Humanitarian Aid for Procurement Guidelines’. Some of these derogations can be

found on the following grounds;

a) Security, operational, technical or quality reasons

b) Shortfall or unavailability on the markets of the supplies

c) Costs or delays to transport

d) On the grounds of legislation on the country of operation; or

e) If the fulfilment of the contractual obligation would harm the partners mandate of

the safety of its staff. (Humanitarian Aid for Procurement Guidelines, P72)

All derogations are granted and approved by DG ECHO and if the derogations are granted it shall be included in the special conditions of the agreement between DG ECHO and Islamic Relief Bangladesh. Except for urgent actions an exemption from the general rules is granted automatically, no formal request for derogation needs to be submitted to DG ECHO (see annex iv special rules). For derogations concerning other donor’s one must refer to their procurement guidelines or procedures for implementing partners. 13.0 Contract management The organisation needs to buy goods, services or works at ‘best value for money’ and therefore needs to ensure regulatory requirements are recognised, understood and adopted through effective contract management. The forms of contract vary and some of these are highlighted below; 13.1.1 A purchase order The purchase order is a document produced by the buyer and given to the supplier for the acquisition of goods and services or works. The purchase order is an offer made by the buyer and is a legal document (once accepted by the seller) through either an acknowledgement or an 15 equivalent receipt of the order received, both parties then enter into a binding legal contract. The purchase order comprises details such as qty, price each, total price per line item, delivery address, invoice address, part number or goods description, purchase order number, vendors name and address, subtotal, VAT amount, and total goods value. 15 A confirmation of a delivery date can be classified as an acceptance of the order.

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13.1.2 Blanket purchase order The department may at times produce a blanket PO covering a range of goods and services over a period of time i.e. period of six months or less or even more up to twelve months and beyond. The blanket order will cover a particular quantity over a given period with multiple call off quantities over this agreed period. The vendor in such a transaction will hold all stocks at no cost or an agreed cost included within the price but under no circumstances shall the vendor agree to have the entire delivery schedule shipped in one consignment to Islamic Relief Bangladesh (or elsewhere) unless it is pre agreed or due to unforeseen circumstances etc. 13.1.3 Contract for goods and services The contract for the acquisition of goods and services will normally be enforced for purchases of over 50,000.00 BDT (minimum) normally and may be less if the circumstances necessitate this. The contract has prerequisites and these will need to be implemented to ensure best practice and value for money, some of these issues are;

a) There are no pending issues between both parties b) The vendor has a satisfactory response time c) The overall cost reductions and value for money are achieved d) Both parties understand their positions e) Overall efficiencies are visible and being realised f) The business objectives are understood and being realised g) Positive references have been received for the vendor/contractor h) The vendor/contractor has been screened successfully

13.1.4 Framework agreement Framework agreements are often used with purchases that are more frequent for the supply of goods and services. Certain donors and auditors such as DFID and CHS welcome the use of framework agreements in Islamic Relief globally and expect us to remain efficient in our procurement procedures and operations. For a framework agreement the terms and conditions must be clear and pre agreed over a subsequent period but there must be no commitment to buy as far as the department is concerned (unless contracts specifies otherwise). There are no contractual obligations here between both parties. A contract is formed and then call offs are arranged as and when required. International Procurement would advise you to use framework agreements where possible and this particularly be used under the following conditions;

1. Agreements to be signed over a minimum period of twelve months 2. Ensure prices remain flat during this period 3. Ensure there is no obligation for you to buy the outstanding/overdue stocks/services after

the contract has expired 4. This be used for goods (relief items and indirect spend), services and works. Can also be

used for emergency procurement items 5. Ensure your framework agreement has had a legal review to ensure you and the

organisation remain protected throughout the agreement period 6. The donors have no objections with the implementation of these agreements

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7. Ensure there are no penalties, surcharges or even interest charged for overdue call offs/end of year balance

8. To include the supplier code of conduct with modern slavery statement in all of your framework agreements

9. Ensure there is a clear visibility and forecast of the goods/services required over the 12 months

To implement the framework agreement simply follow the correct procurement procedure and then discuss with your selected supplier prior to contract award in any given tender and advise them if they are willing to sign a framework agreement for a 12 month period (advisable) or 24 months and whether they could commit to the stock/service within the agreed final pricing during this period. If so, proceed with the agreement otherwise refrain. Please refer to your local legal team for a framework agreement template and they will ensure the correct terms and conditions are contained within. Framework agreements are not suitable for use under the following circumstances;

a. Constant fluctuating prices b. Weak exchange rate c. Overall low value contract d. Suppliers with a poor reputation in honouring agreements and those vendors that have

been debarred e. Market where prices have inflated drastically due to unforeseen and unusual circumstances f. Not recommended by the donor g. For a country under the state of an emergency due to a disaster or a man-made disaster h. Where there is a plague, epidemic or when there is even a pandemic i. When the field office budgets are getting very tight, restricted and are in decline j. A country in economic turmoil or where increasing inflation is present k. Increasing scarcity in the market of the goods/services required

We hope the information contained within this manual has been useful and trust it will help satisfy future audits undertaken by CHS, DFID or other third parties. 13.2 Advertisement of tenders The tenders shall normally be advertised on the Islamic Relief Worldwide website under the ‘Tenders’ section or the IR Bangladesh website (if available and operational). The purpose of the advertisement would be to attract bids as well as EOI (expression of interest). The procurement department will determine the best means of advertising given its nature and complexity. It would be at the discretion of the department to select which particular options to use when advertising the tender which may vary from newspapers, journals, magazines, trade journals, common tendering websites such as tendering direct and the partner websites for e.g. Relief Web, IAPG and so on. 14.0 Artificial splitting of contract

The artificial splitting of the contract occurs where the projected value or the estimated value of the order is intentionally de valued to the lower threshold. The estimated value of the contract should not be reduced to avoid the appropriate procurement procedure. To help reduce time and purchase items from various vendors to make the overall value of the contract fall between a certain threshold. This is termed as ‘artificial splitting’ of contract and is certainly prohibited within Islamic Relief Bangladesh.

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However, under certain circumstances and only in exceptional circumstances can ‘artificial splitting of contract be permitted and some of these reasons will include;

Market constraints Security issues Perishable items Accelerated purchase (emergency) Local market conditions Significant cost reductions Lengthy requirements of delivery Donor requirement Economical impacts of the purchase on the local community

Approvals for such purchases must be in accordance with the sign off levels mentioned in the earlier chapters in this manual.

14.1.1 Procurement process with financial implications When making key procurement decisions it is equally vital to take into consideration financial issues surrounding and effecting procurement activities and therefore it is necessary the following issues be considered when involved in procurement activities;

VAT rates and other local taxes The rate of inflation Asset management, depreciation and inventory management Exchange rates

These issues must be considered and other financially implicating factors are to be taken into consideration when making any form of a procurement transaction for further advice the finance department should be consulted. 15.0 Detailed prepared specifications

Specifications can be in depth or brief depending on the requirement and the nature of the purchase. The specification will include a detailed description of the goods or services required, it sets limits for the set criteria that the product must reach for delivery acceptance. It is up to the requisitioner to provide as much information pertaining to the purchase of the goods and services. The specification will typically contain the following sub categories; Product – The product in general or a particular term by which the product is known Definition – The product and its measurable terms Colour and visual appearance – Full details of colour be specified Product manufacturer’s details – Full name and address Weight – The weight of the product that is to be delivered, gross and net weight requirements. Size and dimensions – The overall size of the item including any essential dimensions. Delivery notes – How the product is to be delivered this may entail delivery time, packaging and the delivery frequency. Grade – Product class or grade particularly in relation to food items.

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Accreditations – What accreditations are required from the supplier? Product origin – Country of manufacture and its origins Scope of work – Detailed summary of work required and it’s finishing. Safety – Compliance details of the product and its safety requirements Delivery – Delivery timescales and dead lines Guarantee/warranty – After sales care and support Quality control – Compliance to quality control. Storage and handling - Requirements for storage and handling need to be specified i.e. in case of fragile materials then package would need to be wrapped adequately Shelf life requirements – Expected expiry dates of products Limitations – What are the limitations of the product and services? Temperature – Manufacturing and final product temperatures Legibility and visibility – Particular to print ordering or specifications Branding – Which brands are preferred, note this may be restricted in certain commodities or all products from certain donors so check their procurement guidelines. In some instances a brand name may be required for a reason or another some of these have been highlighted below;

Compatibility of spares with existing equipment or machinery. Sole manufacturer of goods and services For medicines

If this is the case the contracting authority must document justification in the tender file. When a brand name is cited for the purpose of defining standards, the specifications should clearly indicate that no particular preference be given to the specified brand names when evaluating offers. This statement may apply to those projects funded by institutional donors and is applicable to their funding projects and this also may include other donors who have clearly specified this as an essential requirement.

Note; Using specific brand names is not permissible in tenders particularly in relation to DG ECHO funded projects for further information refer to page 23 and paragraph 3 of ‘Humanitarian Aid Guidelines for Procurement’ and follow other donors guidelines in this regard.

When the specification is complete and in order, then the purchase procedure can be adopted and there after the PO raised in AX or any other suitable system. Where no AX system exists it may be permissible to use a standard designed PO template for local needs. The purchase requisition permits the owner to seek approval and place an order for the purchase and with the correct details of the required item or service. The staff member must raise the purchase requisition and where possible

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the procurement department may intervene and place an order if the circumstances necessitate. In any case, the details entered on the purchase requisition must be correct and this must include unit price, qty, description, vendor name, payment terms and total value. Once the budget holder has verified the budget he/she may have been allocated, they would need to approve the requisition as the budget holder. Once the purchase requisition is finally approved by the end approver (usually procurement) the system would automatically transform this requisition into a purchase order. Once the order is placed and complete the requisitioner should return the purchase order to the finance or procurement department (if this is a requirement for auditing purposes). It is critical that a purchase requisition not be sent to the supplier until it is finally approved, a document required for the acquisition of goods and services is always the purchase order and not the purchase requisition. The procurement department can return the PR on “Procurement Review” to requisitioner or the relevant department due to following reasons:

1) Total actual value of approved PR is exceeding from 10 %. 2) Due to change in specifications, category, project etc. 3) Split or required multiple lines in the same PR

During an emergency situation due to time constraints the procurement department can publish the tender and complete the tendering exercise for the vendor selection prior to the signing of SLA and PR. In such cases Procurement department should not sign the contract until the project approves and PR raised in the system. 16.0 The terms of reference (TOR)

This is an essential document required to undertake several procurement activities. These activities explain the objectives; scope of work, deliverables and other sections paramount to the project, the TOR comprises a list of other activities that may be relevant to the TOR (Terms of Reference). Some of these are;

Introduction Methods Scope and background Deliverables Objectives Timescales Tasks and expected days of work Success criteria Interfaces Skills and experience required Roles and responsibilities Costs Reporting

Other sub headings may be added as the project manager sees fit, this list is not exhaustive. A brief outline of each heading is; Purpose – This entails the understanding and the overall scope of the project, there must be clarity in what is within the scope and beyond it. This section should define responsibilities, dependencies, constraints, assumptions and interfaces. Background – The background of the project should be explained thorough and the aims of the TOR. The business objectives and terms of reference should provide, an insight into the history of the project.

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Objectives – The project objectives should be made clear and be clearly presented highlighting each point. Scope – The section comprises aspects of the project that are in both the scope and beyond the scope. The section should entail all aspects of the project from start to finish including the decommissioning of the project. Constraints – The constraints being placed by the project will be listed here and such constraints will include deadlines and limitations. Interfaces – Interfaces that will be used need to be mentioned here i.e. to an accounting system, a warehouse system and other manual systems. Roles and responsibilities – This section includes roles and responsibilities of key personnel and this may include project manager, team leaders, programme managers and other personnel relevant to the case. Reporting – The reporting structure of the project will be outlined here and this will include the reporting frequency i.e. monthly, weekly etc. This may include those personnel with whom the meeting is to be held with. Methodology – The methodology used to deliver the objectives will be discussed here factors such as the design, layout and structure. Deliverables – The project deliverables will be discussed here and this will include specifications, plans, drawings, floor plans, reports and budgetary information. Timescales – Time plan of the project including submission of first draft and final draft reports. Success criteria –The success criteria by which the project will be measured will be detailed here and this may include factors such as the percentage number of complaints, market share percentage and the SLA’s. Assumptions – In this section the project date, tools, specific tools that will be used. Dependencies – Both internal and external factors the project will be dependent on will be discussed here. Key milestones – Key dates will be listed here and this will include; shortlisting date, start, submission of first report, submission of final report and finish date along with other key dates Costs – Fundamental costs to be agreed will be discussed here such as software licence fees, purchase and renewal, purchase of hardware, software, communication purchase and installation, contractor’s costs and resources. The objectives that need to be derived from this would be;

What needs to be achieved from this project? How this project will be achieved? When will the achievements be complete? Who is to take part in this?

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Who is the best person/organisation for this and their attributes? A complete TOR should be submitted for all tender requests pertaining to project, consultancies, specialist projects and staff requirements. 17.0 Fair and ethical trade 17.1.1 Ethical procurement The procurement department will promote ethical trading within the organisation and ensure these are incorporated in all day to day business transactions as well as procurement contracts. Islamic Relief Bangladesh expects full conformance by all of its vendors and where at all possible include this as an essential evaluation criteria when assessing bids. The department will purchase goods and services with the appropriate ethical standards. The use of child labour is monitored and where necessary eliminated and those organisations allegedly adopting child labour are to the international procurement department. Equality amongst the workforce with all suppliers be implemented and encouraged through regular business reviews and audits. The buyers will not accept gifts from suppliers, payments or other incentives from vendors are business associates which may in return encourage and induce employees to perform illegal activities which will subsequently be a contravention to their employment contract. The organisation will ensure all products and services are purchased at best value for money and within the thresholds of Islamic Relief Bangladesh and the major institutional donors such as UNHCR, SIDA and others. Fair trade is more focused on the relationship of the buyer with the commercial world undermining poverty and supporting sustainability globally. It concerns trading agreements with those organisations and individuals that have the financial edge and those in the developing countries producing the goods. Through these agreements the producers find solutions for the unexpected and the unforeseen and for the growers this serves as an assurance that the prices cover their costs and they are able to pay a sufficient wage to the labourer. Fair trade constitutes to better pay and better working conditions for those that are deprived and living below the line of poverty at times. Fair trade also comprises premiums paid to growers so this be invested locally for the communities. Ethical trade concerns the rights of workers and exploitation of workers all over the globe and this comprises some of the issues beneath;

Physical abuse of employees Rigorous form of discipline and intimidation The use of forced, bonded, involuntary prison labour.

Ethical trade entails the treatment of workers and their condition and ensures employers are imposing basic human and labour rights within the workplace, it stipulates safe and better working conditions for their employees. Some factors in relation to ethical trade are further explained below. 17.2.1 Child labour is eradicated Organisations shall not recruit child labour. Measures are taken to ensure participation with policies which encourage good quality child education.

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All children under the age of 18 are not employed particularly in those conditions that are hazardous to health. All policies in relation to labour are pursuant to International Labour Organisation (ILO) standards. 17.2.2 Living wages are paid Standard working week benefits and wages meet a minimum national legal standard or industry benchmark standards which is higher. Wages paid should reflect basic necessities and provide discretionary income. All prospective employees are given clear information about their conditions of work including wages and their pay period concerned. 17.2.3 Reasonable working hours Working hours are pursuant to national laws and benchmark industry standards whichever is higher. Workers shall not work more than 48 hours and one day be given off for every seven day period on average. Overtime shall not be more than 12 hours per week and be voluntary, shall not be demanded on a regular basis and be compensated at a premium rate. 17.2.4 No discrimination Recruitment and selection procedures are fair and there is no discrimination on the grounds of race, caste, age, religion, gender, marital status, national origin and disability. 17.2.5 Regular employment is provided Regular employment should not be avoided by offering other forms of employment such as temporary, contracted, fixed term, home working or through apprenticeship schemes. Excessive use of fixed term contracts must not be used. 17.2.6 Harsh and in humane treatment not be allowed All forms of intimidation and harassment are prohibited within the workplace and this includes verbal abuse, sexual harassment and others. 17.2.7 Working conditions are safe and hygienic The employer provides a safe hygiene environment. Preventative measures are in place for accidents and injury to employees, workers shall receive Health and Safety training. Employees have access to clean water and hygiene services including toilet facilities and potable (wholesome) water. Clean facilities for food storage be provided. Where accommodation shall be provided it must be clean and meet the basic necessities. Health and Safety shall be enforced at all times and where possible a Health and Safety representative be employed for the site or a staff member may volunteer for this role which will include duties in addition to his/her existing role within the company.

17.2.8 Right to collective bargaining and freedom of association. Workers have the right to trade unions. Workers representatives should not be discriminated against, right of freedom of association and collective bargaining.

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17.2.9 Employment is freely chosen There is no involuntary prison labour. Workers are not required to lodge deposits or identifications with their employers, after reasonable notice workers are free to leave. It is essential that the appointed contractor be selected on fair terms pursuant to the above guidelines and institutional donor guidelines. Contracts must be awarded on the basis of best value for money and all tenders must clearly state this in their tender and guidelines or RFQ documents. 17.3 Ethical behaviour required by contractors Procurement decisions in relation to the transport of aid must respect and reflect the humanitarian principle of neutrality particularly pertaining to a conflict or a military war. Dealing with a contractor who has known connections or associations with a party in that is in conflict i.e. a vendor that supplies or transports arms or other military supplies to a military actor or other combatant would be in violation of the principle of neutrality and this would therefore be considered unethical. Such arrangements being made by a vendor to such parties where there is evidence of a conflict can have destabilising effect and could moreover compromise the principle of neutrality. In extreme cases where humanitarian logistics is required and is of an importance in such areas, then only as a last resort should would one resort to such arrangements for example helicopters and vehicles to deliver humanitarian aid particularly in manmade disaster stricken areas where no other alternatives can be found. For further information refer to page 19 of ‘Humanitarian aid guidelines for procurement’ for DG ECHO funded projects, for other donor’s follow their correct guidelines. 17.4 External checks All suppliers may be liable for external checks on behalf of Islamic Relief Bangladesh or for audit purposes. This may include institutional funding bodies carrying out checks and audits on suppliers. Islamic Relief Bangladesh may also conduct audits and checks on suppliers through third parties to make sure that organisation wide policies and standards are adhered to. 17.5 Standards for suppliers to adhere to All Islamic Relief Bangladesh suppliers must behave in the highest standards of ethics, they must also ensure where relevant they meet the minimum standards as devised by institutional funding donors. All suppliers must ensure that they meet the relevant standards of funding institutions and must be familiarised with their guidelines. Islamic Relief Bangladesh suppliers are expected to adhere to supplier code of conduct of which a copy is attached in the Tender guidelines section. 18.0 Sustainable procurement One of the most strategic key elements of this division remains to be sustainability which is paramount to the organisation and its day to day operations. The procurement department will ensure that sustainability is high on the agenda in the procurement of goods, services and works. 18.1.1 Environmental

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It is the policy of the procurement department to reduce its environmental impact where necessary and totally understands its waste disposal targets for the organisation and endeavours to achieve these through collaboration and strict adherence.

The procurement department will be take into consideration environmental issues when relating to commercial decisions based on whole life cycle costs. Encourage stakeholders as well as business partners to adopt best practice in sustainable procurement and promote sustainability through all transactions and communications on a regular basis. Sustainable procurement to be incorporated in all functions of procurement including tendering, contract management and SRM (supplier relationship management). To promote the reuse of recycling of materials both in all Islamic Relief Bangladesh sites nationwide and globally as well as all associates including commercial and colleagues. All procurement staff will consider sustainability when evaluating tenders during tender assessment meetings and likewise encourage this amongst all the committee members, assessors and other panel members. The department aims to reduce the effects on the environment with the products and services we intend to buy in this way to protect the environment and help reduce adverse effects on the community as a whole. The department will ensure resources are utilised effectively and efficiently and where possible waste is avoided in all areas of the business. The department realises that the spending decisions are an important element of reducing carbon emissions and ensuring the organisations properties are resilient to climate change.

The department will ensure sustainability is a pivot and fixated in all procurement processes at the initial stages of the processes and work aggressively with vendors to reduce the carbon footprint. Ensuring where possible the organisations assets are disposed of in a friendly manner pursuant to local environment regulations and where possible liquidated to obtain maximum dividends considering environmental impacts. The procurement department will ensure all suppliers providing goods and services into any responsible Islamic Relief Bangladesh site are compliant with environmental regulations including the carbon footprint which constantly addresses the changing environmental standards. Where possible vendors who procure their goods from renewable sources will be considered and be given preference depending on the nature and the complexity of the contract. Those goods and services will be given preference where evidence of condensed packaging is visible and those goods requiring consumables such as printers during their life, consumables of a greater life, with environmental approvals will be considered. Those goods and services that require waste of resources during the manufacturing stage to be avoided and be used only if there is no alternative, thorough auditing will be required if the situation necessitates this. Also, the product should be recycled at the end of its use pursuant to regulations. Where at all possible particular measures and strategies will be adopted to minimise waste such as sale of goods to third party brokers particularly with furniture and non-perishable assets. Trade in commercial agreements will be implemented depending on the nature of the commodity i.e. computer peripherals; pc’s, notebooks, printer, fax machines, servers and other electronic appliances that are suitable for recycling and refurbishment.

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Where possible the procurement officers will consult and seek specialist advice from regulatory authorities when disposing items/appliances and these authorities would include EU, WEEE (Waste Electrical & Electronic Equipment) directives. When these items are sold it is up to the buyer to dispose of the item(s) pursuant to the current regulations. Under such regulations one must be vigilant and adhere to the following;

Excessive noise levels produced by the plant or machinery Monitoring and control of discharges into water, land and air Reduction of heavy metal materials and seek best alternatives Avoid ozone-depleting substances Reduce consumption of volatile organic compounds Minimise waste and promote recycling opportunities and process efficiencies Use of energy incorporating mains water and drainage water.

The procurement department will assist and will directly participate in the sale of goods when necessary and the officers shall where possible contact the appropriate persons who are in the profession to ensure the sale of goods is pursuant to the sale of goods act and waste regulations. Staff sales will be an option considered by the department but will only proceed after consultation with other departments entailing facilities, ICT, HR, Finance and others. 19.0 Procurement code of ethics Islamic Relief Worldwide code of ethics is applicable to all procurement staff operating either from the country office or from other Islamic Relief Bangladesh locations. The code of ethics policy must be adhered to at all times and must not be violated under any circumstances what so ever. The code of ethics policy is in conformance with the CIPS code of ethics which can be found in appendix 3. Islamic Relief Bangladesh procurement staff are requested to adopt behaviour pursuant to Islamic morals, beliefs and ethics. 19.1.1 Values and Professional Conduct Personal and professional conduct is to be the highest and therefore one should at all times promote fair, ethical and legal trade practices in their work which will be undertaken for the benefit of the organisation and not for any personal gain. Human rights and discrimination should be challenged including harassment, abuse and exploitation. Local laws must be adhered to in the country where one is working. Under the Health and Safety requirements those persons managing staff to do so within the legislations and ensure zero violation. 19.1.2 Conflicts of interest and coercion One’s role within the organisation is not to be used to exert pressure, extract favours or enhance personal gain for professional, political or economic reasons. There must not be any personal or family involvement within the business and one must not have a financial relationship with the supplier. Whatever the conflict of interest that exists one must ensure this is declared and measures must be taken to ensure the use of the supplier is avoided and an alternative supplier be found (if possible). Non business relations and financial interests must not be developed with any prospective or present supplier and this must be avoided at all costs. When one has come across a conflict of interest it must be reported to a senior member of the committee or a senior manager and this be declared.

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Under no circumstances should one accept bribes, favours or incentives for a personal gain from any supplier. 19.1.3 Gifts Gifts must not be accepted from suppliers under any circumstances as such transactions can be seen to influence actions in favour of the vendor for any future tenders or commercial agreements. Where gifts have been received it is imperative they be declared first and then contributed towards charities, the company raffle or such similar events. The gift register must be maintained frequently in each field office and be submitted to IRW internal audit team. 20.0 Sampling As part of the procurement exercise either for a tender or a RFQ the procurement department will request samples from time to time depending on the contract and the commodities involved. The sampling process will normally take place when vendors have been shortlisted during a tendering/RFQ exercise. At times samples may be required as part of the tendering process and be evaluated when the bids are assessed by the evaluation panel. All items supplied as samples must have samples written on them either on the packaging or a label adequate in size and that can be seen with ease. Where items are of an electronic nature they be labelled as samples and not suitable for production. Products that contain chemicals or hazardous have the appropriate data supplied with it for example COSHH sheets and safety sheets. In cases where one is uncertain about the contents of a particular chemical then one should consult his/her health and safety advisor. Items of such nature should be opened in an environment that protects the person, product and other individuals within the building. Storage of such products must be adequate to ensure protection and access in times of need. When requesting samples one should specify the samples are required for evaluation purposes only and not for general consumption in addition to this the correct address must be clearly stated at the time of the request together with the dead line. Evaluation results may not need to be provided to the vendor unless the vendor requests to do so in which case a formal reply would be required. All samples shall be disposed of in suitable manner by the relevant staff or returned to the vendor after evaluation. 21.0 Negotiation

In order to achieve cost down targets and purchase goods and services or works at best cost the procurement department must always negotiate best price for all purchases regardless of the threshold values and the procurement procedures. Negotiation is a form of vital communication between the buyer and seller. This is an essential skill for all buyers engaging in commercial trade with third parties concerning the acquisitions of goods, services or works. Effective negotiation requires planning and organising and is therefore vital that all buyers make ample preparation about the vendor history, their goods and services including a thorough research of the company, financial status of the company, identify possible competitors, bench mark the products and their prices. Some of the strategic issues during a negotiation should be maintained and where possible should at all times be in favour of Islamic Relief Bangladesh. The strategic tactics to deploy are as follows;

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1. Tactical negotiations 2. The buyer must have identified his/her needs and wants prior to the negotiation 3. The negotiation needs to be well planned to achieve its maximum benefits 4. List your requirements and prioritise these by placing a high or a low against them i.e. the

most urgent and critical issues are high. 5. Make sure negotiations are always formal 6. Objectives need to be clear and reviewed as necessary 7. Both parties may need to make concessions where possible Islamic Relief Bangladesh

procurement staff will need to minimise concessions without giving too much away 8. Final settlement of the negotiation needs to be made and agreed 9. All paperwork will need to be filed away and securely documented 10. There needs to be movement and this needs to be maintained 11. The closure of the negotiation needs to occur 12. A persuasive communication style will need to be deployed

The procurement staff representing Islamic Relief Bangladesh must be trained to a level where they are able to negotiate at all levels regardless of the thresholds and be in a position to acquire goods and services at best value for money. One may consult HAD (Humanitarian Academy for Development) the Learning and Development subsidiary of Islamic Relief Worldwide based in Birmingham, UK for relevant online courses that you may be able to have access to. 22.0 Presentations and meetings

The department will invite suppliers in from time to time for pre tender meetings as well as presentations for various purposes including;

Supplier relationship management Cost reduction Escalations and complaints Business reviews Periodic reviews

Suppliers should be contacted by either phone, email or in writing for a suitable date and time which fits best around the time of the procurement department. The procurement officer(s) shall engage with the suppliers in a professional manner protecting and portraying both the organisations image and values in a respectable manner whilst achieving the set goals and targets. Where necessary the suppliers be given a brief presentation on Islamic Relief Bangladesh as an organisation their goals and the nature of their work. Presenters are advised to keep this short and be kept short between 10-15 minutes. Minutes be made of meetings and detailed notes made where necessary covering all the issues raised and the plan of actions agreed. To satisfy several institutional donor requirements minutes of the meetings will be taken and the necessary recordings (if this necessitates). The minutes will be scanned, stored and saved electronically for auditing purposes. 23.0 Advice and support

Advice and support will be offered to all employees within the organisation for all procurement matters including advice, support and guidance by qualified procurement personnel.

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Procurement procedures of institutional donors must be adhered to and all relevant documents be saved for the external auditor. The procurement department will specifically adhere to those guidelines that are to be followed when procuring on behalf of institutional donors. Their 16guidelines are stipulated in appendix 1 and 2 and must be strictly adhered to when making such purchases. 24.0 Complaints It is the responsibility of the complaint handling committee in the local office (if present) or the focal person to (if present) to respond all complaints in an appropriate and timely manner with the individual or organisation concerned. Complaints must be treated and handled carefully in the strictest in confidence and must not be discussed with irrelevant personnel without the consent of the departmental manager. Sufficient time and resources be spent on complaints to ensure an adequate response. Once a complaint is received one must acknowledge receipt by confirming that a time be given for the response if there is likely to be a delay, one must ensure all replies are made within the agreed timescales. The response here should also include temporary remedies until a permanent one is found and how things are likely to be escalated if the need arises. Ensure the complaints are pursuant to organisational complaints procedures or the department’s procedures if there are any. One must listen to the complaint attentively and gain clarity where required and request further information where necessary. A flexible approach must be taken on the complaints and one may adjust their approach in accordance with the complexity and nature of the complaint. Ensure complaints are recording by electronic means (if permissible) and are stored safely and securely where they are accessible by the procurement department only. The complaints records where at all possible be updated regularly and actions are executed consistently. All complaints raised with the ‘IRW Complaints department by vendors and other parties are to be addressed accurately and concisely in a professional manner and within reasonable timescales to avoid unnecessary delays. The procurement department may help assist in gathering facts for complaints raised and will provide a response to the respondent with a set of instructions to IR Staff to avoid any similar occurrences. The IRW complaints department shall provide feedback to the complainant within reasonable time scales therefore all colleagues are requested to collaborate with the international procurement team in their investigations and provide responses within forty eights (48 hours) if possible. 25.0 Records management This procurement manual is subject to change and will be revised regularly when the need arises and will be in conjunction with the local procurement and senior management team. At which point all changes will be agreed and the document subsequently revised. Only senior management can authorise and implement the changes of this manual here at the international office. Procurement personnel must adhere to IRs Records Management Policy and Procedures available from IRs policy library. This policy requires:

Reliable records that provide a full audit trail of procurement and contracting procedures to be created, and

16 This is not the full list of institutional donors one must be vigilant.

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Organised in a logical order within a secure filing and archiving system so they are accessible when needed, and

For any country specific laws, regulations or institutional donor requirements for documentation and recordkeeping to be identified and strictly followed.

If any procurement or contracting records are filed by departments outside procurement (such as finance), then it’s important to have local procedures in place that clearly specifies each departments responsibilities in the data flow. It is a funding institutional donor’s requirement that documents are stored electronically in a safe location for all their funded projects and these be accessible by the auditing team. These documents are listed below and it is essential all procurement departments have the necessary documents filed away to ensure full transparency. This is particularly relevant for those purchases above the open tender threshold of 2,000,000.00 BDT or other lower thresholds of other procedures for which essential documents are required to be filed away. Other donor’s guidelines will need to be followed as necessary.

1. Bid evaluation matrix (CBA) 2. Tender and guidelines document 3. Publication/advertisement 4. Quotations/proposals 5. Conflict of interest forms (COI) 6. Contracts and agreements 7. Invitation to tender 8. Written minutes of meeting with shortlisted contractors 9. Scoring sheets 10. TOR 11. Correspondence and screening confirmations 12. Other documents as required by the local office for initiating payments

It is advisable all documents are stored electronically and are accessible and available by the auditors at the time of an audit. All procurement staff are required to refer to appendix 7 which contains records management instructions including examples of key records to be filed and minimum retention policies for procurement and contracting records. Any questions can be directed to the IR offices’ nominated Information Governance (IG) Officer focal point in the first instance. 26.0 Waiver register The IRB procurement and logistics department are responsible for maintaining their waiver register for their country operations. Any procurement activity which cannot follow the required procedure must be recorded including reasons for this exception and this must be signed off using a ‘Request for Procurement Waiver Form’ – see Appendix 4. Once this has been authorised by the relevant authorities it must be passed to the Procurement and logistics Department who will log the details in the Waiver Register. A copy of this register is available in appendix 6. Procurement waivers must only be used as a last resort and where circumstances do not allow one

to adopt the full procedures and there may be reasons for this such as;

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a) An emergency and where the acquisition of goods for an immediate delivery has reached a critical point and where the need to save lives is imminent

b) Goods are available from a sole source and no other vendor can supply them due to their bespoke nature

c) A single vendor holds their registration rights and these can only be purchased from this vendor alone and no other

d) A vendor has acquired and purchased the patents of these goods and therefore the goods be purchased from them and no one else

e) Goods/services are only available from a single source due to the scarcity in the market place and within the boundaries of their country of operation

f) Goods are obsolete and have depleted from the market and are now available from a single source/grey market

Information on this has already explained in chapter 7.4.1 27.0 Conflict of interest It is up to all employees including the procurement staff to avoid all circumstances that lead to a conflict of interest with regards to their tender and RFQ evaluations, interactions, transactions, negotiations and other duties being performed on behalf of the organisation. Anyone involved in carrying out a tendering exercise as a procurement personnel or a member of a tender evaluation committee must fill in an Islamic Relief Bangladesh Conflict of Interest Declaration form see Appendix 5. This must be filled in prior to the first tender evaluation meeting any person not having signed this declaration must not take part in the assessment of bids including opening tenders, short listing and interviewing. This must also be signed by the chair and procurement personnel at the start of the meeting and all signed forms be passed to the Procurement and Logistics Dept. Signing the COI form (Appendix 5) is a mandatory requirement and there are no exceptions. It is paramount all employees sign and declare the conflict of interest policy which can be found with the 17HR department of any personal conflict of interest whether it effects procurement or not. If there is any conflict of interest with any tender or RFQ then it is essential the individuals register this prior to any evaluation meeting and seek their approval one must abstain from any participation in any evaluation or tender activity where this is a conflict of interest, this particularly includes having relatives/friends working for or even managing a vendor or a potential vendor. In which case, one must distant themselves from such an organisation and make a conflict of interest declaration. All employees of Islamic Relief Bangladesh particularly procurement staff must not accept gifts or solicit favours from suppliers or third parties either directly or indirectly involved in a commercial relationship. There are a few exceptions to this which entail promotional items such as pens, mugs, mouse mats, calendars and other items of a low value. If however gifts of such nature are received one must consult senior management, the office or certain departments that may organise an annual raffle competition within the local office and these items be used for such an event. Material of such nature can also be stored in a stationary cupboard or even better be donated to an Islamic Relief Bangladesh charity shop. All information received and obtained from vendors either through meetings, conference calls, phone calls etc. shall be treated in the strictest of confidence.

17 The Global HR team is based at the Islamic Relief, International Office in Birmingham, UK.

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The COI Form must be filled in for non-tendering exercises where circumstances warrant such as a RFQs, low value consultancies and other procedures. 28.0 Audit Procurement activities are subject to audit by both the internal auditors and external auditors whether the auditors representing the institutional donors are external authorities and governing bodies. Procurement activities such as tendering and RFQ’s must be supported and well documented pursuant to organisational documentation procedures (if present) or institutional donor guidelines. All relevant documents will include minutes of meetings, tender documents including the guidelines, responses from suppliers including bids, evaluation matrix, scoring sheets, meeting appointments and other relevant documentation as the department sees fit The procurement department must be fully prepared for an internal audit as well as an external audit by the local auditing firm. 29.0 Irregularities It is at the discretion of the procurement department that if they fail to receive the required number of bids or quotes pertaining to a particular purchase then they have the right to advertise the tender/RFQ or can take the necessary steps to identify that there are no other suitable potential suppliers. Tenders that are incomplete or in case of late submission should be refused but only at the discretion of the procurement department or the evaluation committee who has the right to either refuse or demand further information without impacting the project timescales. All tenders will be stored safely and secured in a locked cupboard or if possible saved electronically in a secure location accessible by procurement personnel. 30.0 Local government regulations It is vital the government of the local countries be consulted concerning their laws and the restrictions within their country concerning the logistics of goods and other procurement requirements. At times substantial data may be available in their local government websites concerning restrictions, charges and procedures. The implementation of these guidelines contained within this document may prove difficult due to local government requirements and the restrictions which have arisen as a result of the humanitarian conditions. When such situations arise the governments regulations are to be given preference over Islamic Relief Bangladesh’s procurement guidelines. The following areas would be affected in such circumstances; 30.1.1 Taxation – Governments may adjust the taxation laws from time to time on many commodities for both import and export of goods within their territories it is these taxes that need to be considered when budgeting or procuring goods and services. 30.1.2 Inflation – Countries have rising inflation in many parts of the world and inflation may come in different forms i.e. cost push inflation and demand pull inflation whatever the case the quotation validity timeframes must be adequate and the buyer would need to be vigilant when making purchases. Particular attention would need to be paid to rising fuel prices which can effect quotations within a short time frame.

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30.1.3 Contracts for goods and services – Countries may have restricted laws that would require organisations to adhere and comply with at all times, failures here often leading to penalties. 30.1.4 Import tax, duties - These would need to be applied when quotations being received by vendors and Inco terms in particular being applied in some countries around the world such taxes are extortionate and therefore would either require negotiations by local staff or where necessary exemption certificates being sought. 30.1.5 Partners and procurement Many projects are funded by Islamic Relief Bangladesh partners the procedures contained within this manual are applicable to Islamic Relief Bangladesh projects and services and where partner’s guidelines are relevant they would need to be implemented. All project works taken under the procurement department. 31.0 Institutional donor thresholds There are many institutional donors who provide substantial funding to Islamic Relief Bangladesh though a full list is not printed some of these are; WHO EU SIDA DFID IDB UNICEF IR USA DG ECHO Oxfam GB LWF IR Canada DEC Forum SYD HQAI IR UK IHP OCHA UNDP IR Belgium UNHCR UNWFP USAID IR Sweden Department of Foreign affairs START Network CAFOD Islamic Relief Bangladesh values its institutional donors and highly appreciates their support and partnership. All procurement staff must ensure, for all purchases where funding has specifically been made by an institutional donor their procedures are followed. Please refer to appendix 1 and 2 for further information. 31.1.1 Business relationships It is integral the organisation conducts its commercial operations in the highest ethical manner at all times. The procurement department will always represent the department and the organisation in the highest ethical standards. If there are circumstances where one is unsure if a particular transaction complies with the organisational guidelines and the employees hand book as well as ethical standards of Islamic Relief Bangladesh then in such cases one must consult his/her departmental manager. The Procurement and Logistics Manager will have the option to discuss or escalate further with the Country Office Management Team (COMT), Country Director. 31.1.2 Business dealings When representing the organisation on commercials grounds one must guard the reputation of the company and its integrity with upmost respect. The procurement individual must preserve the

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reputation of Islamic Relief Bangladesh with the best code of conduct, adopt honesty and professional behaviour at all times. All employees of the organisation whether permanent, contracted or working with Islamic Relief Bangladesh on a voluntary basis must adhere to the employee handbook, procurement manual, consultancy contract or even their fixed term employment contract. Failure to comply with these regulations and policies may result in disciplinary action. 32.0 Humanitarian procurement centres (HPC) Humanitarian procurement centres are not for profit organisations of which many are approved by DG ECHO who provide commercial and technical management of various services and supplies. They are specialists in humanitarian procurement with legal presence conforming to local or national laws in their country of operation and establishment. HPC’s are usually NFP (not for profit) providing high quality service comprising transparency and integrity and are in a position to supply all partners of DG ECHO with goods and services with equality and fairness without any prejudice particularly in relation to price, performance and quality. Advantages of using a HPC

a. A wide range of a supplier base for a HPC to obtain a competitive quote from. b. Highly technical and specialised goods and services c. Less overheads and little administration required d. Excellent in the procurement of drugs especially when funded by DG ECHO e. Additional services offered including training and procurement services f. Financially stable to provide general procurement services g. Procurement procedures are simplified (no tender procedure required) h. Can use a negotiated single bid procedure i. Place orders with them directly

HPC’s provide a range of services and this includes;

Stock holding Non stock holding Service providing

The range of goods normally provided by a typical HPC include pharmaceutical products, medical supplies, medical devices and equipment, prosthetic technology, veterinary, food, livelihood support, water and sanitation, shelter and non-food items, engineering, radio and telecommunications, transport, administration services. Islamic Relief Bangladesh recognises the use of HPC’s by procurement personnel and authorises the use of procurement services from such authorities by procurement personnel for cost reduction as well as general procurement services. All procurement centres are advised to first consult the international department based at the International Office.

Note; only those HPC’s are permitted to be used by Islamic Relief Bangladesh which are approved by DG ECHO. A full list of these approved HPC’s can be found in the attached link; https://ec.europa.eu/echo/partnerships/humanitarian-partners_en


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33.0 Payment terms All procurement personnel must negotiate the best payment terms with vendors, the payment terms must be such that they are not agreed within a short time frame for example net payment terms of seven working days. Where at all possible the agreed payment terms on average should be net thirty days (NT30) and where applicable be beyond this if instructed by the finance department. One must at all times consult the finance department for best payment terms and remain in communication with such personnel. Where a local finance department is non-existent the relevant personnel must then contact the finance department based at the international office currently based in Birmingham UK. 33.1 Part payment Part payments are discouraged in Islamic Relief Bangladesh for normal procurements except for construction work, Income Generating Activities (IGA) and emergency procurements. 33.2 Rate of earnest money and security money In the case of press tender for sealed quotations, The IRB procurement department at its own discretion will determine or waive earnest money for allowing participation of the supplier. 1. Bid bond can be obtained from bidders by pay order/bank guarantee from any scheduled bank at BDT 1% to 10% of total quoted value. 2. Bid bond will be preserved and returned after the conclusion of the bid by the procurement department. 3. Security money against works can be obtained from selected bidder, contractor or the supplier at the discretion of procurement department @ 2% to 15% of the total bill amount. 4. Security money will be deducted from the bill of the supplier and preserved by the finance department and this amount may be payable after the successful completion of the guarantee/ warranty period with recommendation from the respective manager and counter signed by the procurement manager. 33.3 Cyber crime All procurement staff are advised to remain vigilant at all times particularly in relation confidentiality and disclosure of information, protection of systems and devices. There are many types are cyber-crimes that can affect the procurement department of Islamic Relief Bangladesh and some of these are highlighted below;

Hacking and attacks on computer systems

By gaining unauthorised access they are able to access the device or system without any prior permission and prevent you from using your system appropriately by either hacking, spamming or phishing and thus deny you from using your system.

Personal identification information

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By stealing confidential company information and this may include bank information, personal information as well as business trade secrets

Fraud and scams

By confiscating personal information criminals are able to commit fraud and serious crimes against the organisation Many devices can be effected by Cyber-crime and one is advised to ensure the appropriate protocols are followed and implemented to help prevent devices from being effected. All procurement staff are strongly advised to advised to take particular care when carry out procurement transactions and to ensure protection, compliance and confidentiality; Not to disclose purchase card details or company credit card details to any unauthorised staff, person or individual and where possible do not save your bank information online. Do not disclose your password to any individual(s) or organisation whatsoever whether within Islamic Relief Bangladesh or outside the organisation this is strictly prohibited any negligence here could cost the organisation a huge amount. Ensure you know who you are writing to and the email address you have on file is the same as the one your correspondences are being sent to. When a new email address is given to you by a vendor ring them up and double check to ensure they have actually supplied you with a new email address and that it is not a fraudulent person operating behind the scenes. When a vendor is requesting change in bank information ensure that you first make a phone call to ensure they are requesting a change in bank information and when the request is formal and the bank details are on their official company letterhead or on their invoice when sent to you. The finance department will make further enquiries to ensure all information supplied is correct and legitimate. All procurement personnel if in case in any doubt are requested to refer to their local ICT department for further information (if present) or the ICT department here at the International office in Birmingham UK where the ICT department can be contacted on; [email protected] 34.0 Currencies When negotiating prices with vendors the procurement officer/procuring staff must select the best currency possible when trading. To avoid any exchange rate issues and disputes it may be preferred using the local currency for all local purchases i.e. a procurement officer/procuring personnel purchasing goods and services within Bangladesh and for delivery into Bangladesh should adopt the Taka (BDT) currency. Where a procurement officer/procuring personnel are purchasing goods or services for abroad may adopt to use the best currency for such international purchases and this may include GBP, EURO or the USD (if the circumstances necessitate). At times it may be best to use the currency used within the thresholds of the institutional donors i.e. Euro’s the currency used in donor’s thresholds so may be best to trade in Euro’s to ensure consistency and conformity and to avoid complex exchange rate fluctuations later. If the international office is making payments the procurement staff are requested to contact them for currencies we should avoid using and those countries where payments are made with great difficulty.


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One must monitor exchange rate fluctuations if not on a daily basis then at least twice a week. All staff are recommended to benefit from weak foreign currencies and when the local currency is weak one may opt to use a stronger foreign currency. For any further advice one may consult their local finance officers or procurement officers for further clarification. 35.0 Invoices All procurement/procuring personnel must ensure the invoices are sent to the correct address with a full ZIP, postal or area codes with the complete postal address. All invoices must be marked for the attention of the ‘accounts department’ or the ‘finance department’ and where possible the sub unit or team if this happens to exist for example the accounts receivables department for receiving payments and the accounts payable department for issuing payments. All invoices be sent to the accounts payable department if one happens to exist, if there is no such department the invoices must be marked for the attention of the relevant personnel. Failure to supply accurate information here may result in;

1. Invoices containing confidential information sent to the wrong personnel 2. Invoice payments being delayed and Islamic Relief Bangladesh being discredited 3. Vendor account being placed on hold due to late submission of payments.

A common drawback here is the vendor account going on hold resulting in stop ship, all personnel must do their level best to avoid a stop ship scenario as this will cause a significant delay in the delivery of the goods or services. 36.0 Vendor screening & vetting 36.1 Introduction All procurement departments must where provided use a vendor screening service to ensure threats to overall operations are mitigated and vendor liabilities reduced. It can be always be embarrassing to find that a vendor providing goods, services or works has been convicted of an offence that may affect their organisation in any way shape or form. Supplier screening gives the buyer a complete peace of mind and confidence with their vendor and one can be protected from numerous difficulties later by taking a simple approach of having the vendor screened. In order, to ensure that funds are being channelled to legitimate suppliers and spent effectively and efficiently, there must be a degree of due diligence undertaken for each supplier. The level of due diligence will depend on various factors and covered by the procurement guidelines. This involves assessing financial capacity, technical and administrative capacity and subject to screening through the Refinitiv database. IR Bangladesh currently have access to the vetting software known as ‘Refinitiv Screening Online which has been rolled out by the legal and compliance department in the International Office. The use of this software is pursuant to the guidelines and restrictions laid down by the compliance department. 36.2 Process All procurement departments must where provided use a vendor screening/vetting service to ensure threats to overall operations are mitigated and vendor liabilities reduced. It is imperative to ensure all vendors providing goods, services or works are fit for purpose.

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Supplier screening is an important part of IR Bangladesh Procurement due diligence, and provides assurance that all vendors have been checked against a comprehensive list of proscribed entities. Liabilities listed below can be detected prior to any commercial engagements taking place and this may include;

Financial Copyright infringement Criminal records Corruption Involvement in the distribution of narcotics Bribing Human trafficking Liquidation Land grabbing Gross insubordination Fraud Falsifying company documents Insolvency Failure to maintain books and records Pending prosecutions politically exposed persons (PEP) Money laundering Sanctions against individual

Sanctions against entities and others

All personnel selecting, appointing or awarding a supplier must ensure the vendor is screened pursuant to the organisations procedure and guidelines. For all new vendors be vetted during the PQQ (pre-qualification questionnaire) stage and as for those currently on the supplier base be screened and be flagged for ongoing screening (high risk countries only) should any matches arise in the future. Islamic Relief Worldwide (International Office) has implemented a screening software known as Refinitiv. The use of this software is pursuant to the guidelines and restrictions laid down by the legal and compliance department. 36.3 Procedure and requirements All procurement personnel selecting, appointing or awarding a supplier must ensure the vendor is screened pursuant to the organisations procedure and guidelines. For all new vendors requests the vendors must be screened after the evaluation stage or after the PQQ approval stage and as for those currently on the supplier base these be screened immediately (if not already done so). International procurement officers based at the International office in Birmingham are responsible for screening all suppliers worldwide. A screening request form is required to be completed and sent to [email protected] where it will be logged and requester given a helpdesk ticket. This also applies to any requests to add new vendors to AX. The same form needs to be used in order to screen the relevant supplier prior to the Procurement officer then adding them to AX. The screening authority will screen the following data which must be provided by the requestor;

1. Full company trading name or shop name

and

1. Full names of owners, partners or any other individuals who have a financial interest in the

company 2. For parent companies, the list of all the owners will need to be provided or (for large parent

company’s) the Chair of trustees as well as senior personnel such as the CEO or the President, these persons would need to be screened

mailto:%[email protected]

mailto:%[email protected]

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Screening of non-organisations such as consultants, cash paid staff and sole traders;

2. If there is not a company name and the individual offers services for cash such as driver, painter, cleaner or labourer etc. then supply their full name and provide details of services they will be providing

Screening of corporations and large organisations

1. Full company trading name and

2. Full names of owners, partners or any other individuals who have a financial interest in the

organisation

3. For a NGO or a public organisation (or a large company) we would need details of the BOT (board of trustees) including the full name of the chair of the trustees and the CEO or President.

4. For parent companies, the list of all the owners will need to be provided or (for large parent company’s) the Chair of trustees as well as senior personnel such as the CEO or the President and persons would need to be screened

Refer to the simple table beneath for the screening information that we require.

The information above is a mandatory requirement. The above information will be required in both cases i.e. an organisation offering goods and services. For consultancy services, all the above information will be required and names of all the consultants

working on an Islamic Relief project. The relevant HR personnel may need to be contacted to ensure

that certain further factors have been adequately addressed such as in case of a former employee

offering consultancy services later is subject to satisfactory references from HR and their former

manager here at IR Bangladesh.

Company screening

Full company trading name

Full names of owners/partners

Individual persons and sole traders

Full name of person

Corporate, NGO or Public company screening

Full company trading name

Full names of owners/partners

Chair of Trustees and CEO /President

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At times Islamic Relief may require further information if there is a possibility of a close match with a

name of an organisation or an individual, if such a situation arises the international procurement team

will require further information and this may include the following;

All IR procurement staff are to adhere to the IR’s Data Protection Policy (including GDPR) at all times

which sets out responsibilities of employees and data processors when processing personal data on

behalf of IRB. For further information on GDPR and the IR’s Data Protection Policy one is advised to

visit the extranet on the link below;


36.4 Screening threshold The current threshold for screening any vendor for IR Bangladesh is currently €200.00 (two hundred

euro’s). If the purchase happens to be below the above threshold for a transaction but it is highly likely

the total amount including any future purchases will accumulate beyond the above threshold within

a twelve month period then the vendor would need to be screened. The international procurement

department at Islamic Relief International office may keep the screening record of vendors for audit

purposes.

All UK vendors would need to be screened for purchases made through the cash advance system,

petty cash or similar transactions where the total value of the purchase is likely to exceed (or projected

to exceed) €200.00 within a twelve month period for a particular vendor. Similarly, vendors would

need to be screened if purchases are likely to be made with a company credit card or a P card

(purchasing card) beyond the above amount within a twelve month period.

36.5 Ongoing screening Certain vendors requested to be screened will automatically be referred to ongoing screening and any positive matches arising from this shall be subject to further investigations by the international procurement team. Vendors operating in low risk areas may not be subject to ongoing screening. However, if a supplier has already been screened and also flagged for ongoing screening then may be subject to further screening if one of the following issues occur.

Copy of passport or id card (including photo)

Fathers full name

Full residential address or addresses

DOB (Date of birth)

Other relevant information


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All high risk countries suppliers where IRW have operations present would be subject to ongoing

screening.

36.6 Benefits There are many advantages in having a vendor screened prior to adoption and some of these are listed beneath;

Vendor confidence Vendor compliance is promoted within the workplace Improved relations Ensure compliance Reduction in workplace risks Records of screening stored in case of retrieval Peace of mind for just a low cost Due diligence (including EDD) Increased security in procurement transactions Risk reduction Screening standards and policy present

36.7 In case of a match If there happens to be a match against a listed supplier in the Refinitiv system; i) A record will be made ii) The nature of the offence will be identified whether it just an investigation etc. iii) More information would be sought from the vendor to verify the facts if the vendor has been

convicted iv) If it is a direct match against an offence where the vendor has been convicted then that vendor

is to be discontinued in any future procurement transactions and the AX system be updated to prevent any purchase requisitions created

v) If the match is inconclusive a panel of senior managers should be called to review vi) The compliance team should be informed and advice sought from them for all complex

queries vii) The Procurement Manager (or a senior procurement person) can request advice from Legal,

or BOD dependent on the nature of the procurement exercise and the extent of the match identified

viii) In all matters one must exercise caution and NOT proceed with a supplier that may be listed with the given information that the vendor could pose a risk to IR Bangladesh

36.8 Further information

Change in company name

Change in ownership details

Vendor known to be involved in and convicted for fraudulent, criminal and corruption

Other reasons as the screening office sees fit

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Further information will be requested later if the circumstances require it, such information will include passport copies of the owners or the company registration form and others. Companies failing to provide further information will not be screened and not be added to our AX system or other similar systems. Full company trading names shall be provided whilst avoiding initials and abbreviations as per the registration documents. Full names of individuals shall be provided and this must not include initials, names in short, nick names or even titles Those organisations that fail screening due to one reason or another will be rejected and staff advised not to engage in any commercial matters with them. All screening records if possible will be filed away in a folder accessible by the procurement department only. If there is any further information required then please do not hesitate to contact the local procurement department at this email address; [email protected] All screening requests are to be sent to the international procurement team by the local procurement team to [email protected]. A member of the international procurement team will respond to the request in a timely manner. For further information on vendor screening refer to the international screening manual and appendix

1 for a list of high risk countries by region and their ongoing screening position for each of the field

offices around the globe. Please refer to the link below for further information on this screening

manual;


36.9 Supplier suspension If any vendor has been found guilty of any wrong doing will simply be withdrawn from any further trade with IR Bangladesh and their existing contracts terminated. There may be several reasons why a vendor may be suspended and some of these are listed below;

Screening match due to wrong doing or serious allegations

Constantly supplying defective/poor quality items

Unethical practices including modern slavery

Fraudulent practices including tax fraud

Constant billing errors

Failure to conform to contractual agreements

Financially unstable

Other similar offences Where suppliers are guilty of such actions the procurement department must terminate trade with them for a given period by writing to them to advise them that trade has been suspended with them for a given period and all existing contracts terminated on the grounds of whatever the offence may be. Where the nature of the offence is unclear or where a supplier has been convicted procurement staff are requested to check with the vendor first and gather the facts, once the information is collated the procurement staff are to make a decision accordingly.




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Where a vendor is constantly underperforming for example supplying poor quality goods and services or constant billing errors staff are advised to contact them to rectify the problem by verbal communication and if still persisting then by written communication by letter or email and then the final third attempt formally in either writing or a face to face meeting to advise them of termination and suspension. 37.0 Change in vendor details

Change of supplier details in the AX team should be sent to the procurement team, the process of this has been explained below;

1. Change of address or contact details

The vendor should submit any changes of their company name, address, phone number, fax number, email address, website address or other personal information in writing and on an official company letter headed paper. Any changes to company name will be subject to re screening prior to any further commercial transactions. Once we are satisfied that this is a genuine request the procurement department will affect the changes in AX.

2. Change of bank details

Any request to change bank details will require the vendor to send this change on an official company letter headed paper or on their invoice. The Finance department will then follow this up with the procurement department and advice procurement to make the changes in AX, once the changes are made the procurement department will communicate and advise the finance department accordingly.

When a vendor is requesting change in bank information ensure that you first make a phone call to the vendor to ensure they are requesting a change in bank information and this is not a fraudulent person operating behind a false identical email address similar to that of the vendor. Once, the vendor has confirmed the change by phone then kindly ask the vendor to supply this information on their company letter headed paper or their invoice. If however, this is evidence of fraud then refer this to your local ICT department or the ICT department here at the International office. In both instances, the finance department will inform the procurement department of any changes that have to be made.

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Appendix 1 Forum SYD Procurement regulations Swedish NGOs always have the responsibility for procurements made by themselves or by their partners with Forum Syd funds. The basic principle is that, while consideration shall be given to making the procurement as economical and appropriate as possible for the organisation and for the organisation that shall receive the goods or service, all procurements financed by development cooperation funds shall be characterised by good business practice, competition and objectivity. This means that NGOs purchasing goods and services with grants from Forum Syd shall observe good business practice in their procurements. Where competition exists it shall be utilised. Tenders and tenderers shall be treated objectively in order to achieve competition on equal terms. General rules (see Appendix 2 for explanation) a)

a) Simplified Tendering shall be done for all procurements (goods and services) above the value of 50,000 SEK excluding VAT.

b) Selective Tendering shall be done for all procurements (goods and services) above the value

of 300,000 SEK excluding VAT.

c) Open Tendering shall be done for all procurements (goods and services) above the value of 2,000,000 SEK excluding VAT.

For procurements outside Sweden the threshold values shall be adopted to local situations. When these principles are applied by either Forum Syd or their partners outside Sweden the principles shall be adopted to relevant threshold values. The threshold values mentioned above shall be translated to amounts in relevant currency that corresponds to equal value of goods/services in Sweden. The threshold values in SEK cannot be exceeded.

For frequent procurements of the same type of services, the procurements during one fiscal year should be merged and procured on one occasion, or a framework agreement should be procured. 9/18 Forum Syd | Katarinavägen 20 | Box 15407 | SE-104 65 Stockholm | Sweden | tel: +46(0)8 506 370 00 | fax: +46(0)8 506 370 99 | www.forumsyd.org. For full procurement regulations, see Appendix 2. SIDA

3.2 Contracts for less than €300.000.00 but more than €60,000.00 Such contracts must be awarded by means of a competitive negotiated procedure without publication, in which the Cooperation Partner consults at least three service providers of its choice and negotiates the terms of the contract with one or more of them

3.3 Contracts of €60,000.00 or less For services of a value of €60,000.00 or less, the procedures established by the Cooperation Partner may be used, while respecting the rules and principles laid down in articles 1, 2 and 3 of this annex.

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4. Specific rules for supply contracts (goods)

5.1 Contracts from 300,000.00 and above Supply contracts (goods) worth 300,000.00 and above must be awarded by means of an international open tender procedure following publication of a procurement notice. The procurement notice is to be published in all appropriate media, in particular on the Cooperation Partner´s web site, in the international press and the national press of the country in which the Project/Programme is being carried out, or in other specialist periodicals. Any would-be supplier which fulfils the conditions referred to in section 2 may submit a tender. 5.2 Contracts between € 100 000 and less than € 300 000 such contracts are awarded by means of an open tender procedure published locally: the procurement notice is published in all appropriate media but only in the country in which the Project/Programme is being carried out. A local open tender procedure must provide other eligible suppliers with the same opportunities as local firms. Page 5 of 7. 5.3 Contracts of less than € 100 000 but more than € 60 000 such contracts must be awarded by means of a competitive negotiated procedure without publication, in which the Cooperation Partner consults at least three suppliers of its choice and negotiates the terms of the contract with one or more of them. 5.4 Contracts of € 60 000 or less for supply contracts of € 60 000 or less, the procedures established by the Cooperation Partner may be used, while respecting the rules and principles laid down in articles 1, 2 and 3 of this annex.

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Appendix 2 SIDA procurement guidelines

Method Goods Consultancy services Works

Open tender > SEK 2,000,000.00 > SEK 2,000,000.00 >SEK 10,000,000.00

Selective tendering < SEK 2,000,000.00 < SEK 2,000,000.00 <SEK 10,000,000.00

Simplified tendering < SEK 300,000.00 < SEK 300,000.00 <SEK 1,000,000.00

Single Source Procurement/Selection

< SEK 100,000.00 < SEK 300,000.00

Forum SYD procurement guidelines

Services Goods

No price comparison <SEK 50,000.00 <SEK 50,000.00

Simplified procurement >SEK 50,000.00 < 299,999.99 excluding VAT

>SEK 50,000.00 < 299,999.99 excluding VAT

Selective tendering >SEK 300,000.00 < 1999,999.99 excluding VAT

>SEK 300,000.00 < 1999,999.99 excluding VAT

Open tendering >SEK 2,000,000.00 excluding VAT

>SEK 2,000,000.00 excluding VAT

DG ECHO procurement guidelines

Supply Contracts and service contracts

Works Contracts

Negotiated procedure €60,000 - € 150,000

€60,000- € 300,000

Open Tender with Local Publication (minimum of 21 days publication)

€ 150,000 - € 300,000 € 300,000 - € 3,000,000

Open Tender with International Publication (minimum of 30 days publication)

€ 300,000 or more €3,000,000 or more

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UNHCR procurement guidelines

Method Procurement value or equivalent (USD)

Bid solicitation procedure18

1 Up to $5000.00 Such procurement does not require a formal competitive bidding process; a simple request for quotation (RFQ) is sufficient. Nevertheless, a fair review quotation is also required. Quotes must be provided in writing and can be submitted in the form of an e-mail, letter or fax. It is good practice to ensure the receipt of at least three written offers/proposals.

2 Above $5000.00 Such procurement requires a formal competitive bidding process. The objective of competitive bidding is to find the best quality of the required goods/services at the best value for money in a fair manner to support an operation.

UNDP procurement guidelines

Procurement method

Contract value

Type of requirement

Method of solicitation

Type of competition

Micro- purchasing

Below US $5,000 Goods, services or simple works

Canvassing (by phone, Internet, shopping, etc.)

Limited international or national

Request for quotation

US $5,000 to $149,999

Goods, services or simple works

Written request for quotation

Limited international or national

Invitation to bid US $150,000 and above

Goods or works Advertisement in international media

Open international

Request for proposal

US $150,000 and above

Services Advertisement in international media

Open international

Direct contracting

Any amount within permissible circumstances

Services, goods or works

Direct invitation or negotiation

None

18 As per UNHCR Procurement Guidelines for Implementing Partners http://www.unhcr.org/uk/implementing-partner-procurement-guidelines.html

http://www.unhcr.org/uk/implementing-partner-procurement-guidelines.html

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Appendix 3 19Procurement code of ethics All procurement staff who are either CIPS fully qualified or partially qualified should refer and adhere to at all times and under all circumstances. All procurement staff shall; Enhance and protect the standing of the profession, by:

Never engaging in conduct, either professional or personal, which would bring the profession or the Chartered Institute of Procurement & Supply into disrepute

Not accepting inducements or gifts (other than any declared gifts of nominal value which have been sanctioned by my employer)

Not allowing offers of hospitality or those with vested interests to influence, or be perceived to influence, my business decisions

Being aware that my behaviour outside my professional life may have an effect on how I am perceived as a professional

Maintain the highest standard of integrity in all business relationships, by:

Rejecting any business practice which might reasonably be deemed improper Never using my authority or position for my own financial gain Declaring to my line manager any personal interest that might affect, or be seen by others to affect,

my impartiality in decision making Ensuring that the information I give in the course of my work is accurate and not misleading Never breaching the confidentiality of information I receive in a professional capacity Striving for genuine, fair and transparent competition Being truthful about my skills, experience and qualifications

Promote the eradication of unethical business practices, by: 1. Fostering awareness of human rights, fraud and corruption issues in all my business relationships 2. Responsibly managing any business relationships where unethical practices may come to light,

and taking appropriate action to report and remedy them 3. Undertaking due diligence on appropriate supplier relationships in relation to forced labour

(modern slavery) and other human rights abuses, fraud and corruption 4. Continually developing my knowledge of forced labour (modern slavery), human rights, fraud and

corruption issues, and applying this in my professional life

Enhance the proficiency and stature of the profession, by:

Continually developing and applying knowledge to increase my personal skills and those of the organisation I work for

Fostering the highest standards of professional competence amongst those for whom I am responsible Optimising the responsible use of resources which I have influence over for the benefit of my

organisation

Ensure full compliance with laws and regulations, by:

Adhering to the laws of the countries in which I practise, and in countries where there is no relevant law in place I will apply the standards inherent in this Code

Fulfilling agreed contractual obligations Following CIPS guidance on professional practice

CIPS Code of conduct

19 CIPS code of conduct (https://www.cips.org/en-gb/aboutcips/cips-code-of-conduct/#tabs-1)

https://www.cips.org/en-gb/aboutcips/cips-code-of-conduct/#tabs-1

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Appendix 4 IR BANGLADESH WAIVER FORM

Waiver form number __________________________

(TENDER/QUOTATION WAIVER)

1. Description of Requirement: ________________________________________________

2. (Name of proposed supplier or service provider) _________________________________

3. Value of Purchase(s) BDT ________________________________

4 Is this purchase for an institutional donor project? .............................. YES/NO

If YES, attach project proposal and supporting document

5. Has this requirement either been fully or partly the subject of any previous tender? YES/NO

6. Please give details below for full reasons for using non-competitive action:-

Please provide details/copy of a supplier quotation which should include where relevant:

Commissioning, servicing or maintenance arrangements

Guarantees & warranties

All contracts, t&cs, licensing agreements (e.g. software)

A value for money statement

Waiver request originator:

Project Owner Authorisation

Signed: ..................................................................

Date: .....................................................................

Print Name: ..........................................................

Job Title …………………………………………………………….

Management authorisation:

Authorised by CD/HoM

Signed: ..................................................................

Date: .....................................................................

Print Name: ..........................................................

Job Title …………………………………………………………….

Procurement authorisation

Procurement authorisation

Signed: ..................................................................

Date: .....................................................................

Print Name: ..........................................................

Other authorisations

Department ………………………………………………………

Signed: ..................................................................

Date: .....................................................................

Print Name: ..........................................................

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Job Title ………………………………………………………… Job Title …………………………………………………………

1. Please note that all details on this waiver form should be recorded on the waiver register and

both be filed away for audit purposes.

2. The waiver amount shall be limited to the value declared in part 3 (above) only and should the

amounts go beyond this then another waiver form would need to be signed.

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Appendix 5

Islamic Relief Bangladesh conflict of interest declaration form.

Declaration for members of evaluation committees20

Tender name and ref no.________________________________

I, the undersigned, hereby declare that I agree to participate in the evaluation of the above mentioned (procurement procedure).

By making this declaration, I confirm that I shall execute my responsibilities impartially and objectively.

I hereby also declare that I am independent21 of all parties which stand to gain from the outcome of the evaluation process22. To the best of my knowledge and belief, there are no facts or circumstances, past or present, or that could arise in the foreseeable future, which might place me in a situation of conflict of interests or otherwise call into question my independence in the eyes of any party; and, if I discover or should it become apparent during the course of the evaluation process that such a relationship exists or has been established, I will declare it immediately and cease to participate in the evaluation process, I declare that I have not been employed by any of the (Candidates//tenderers) within the past 3 years23.

I agree to hold in trust and confidence any information or documents disclosed to me, discovered by me or prepared by me in the course of or as a result of the above mentioned evaluation exercise and agree that it shall be used only for the purposes of this evaluation and shall not be disclosed to any third party. I agree not to retain copies of any written information or prototypes supplied.

Name Signed

Position Date

The conflicts of interest declared on this form are in relation to the above referenced tender and the suppliers who have provided a proposal in response to this. The list of suppliers may be attached to this form (optional) and this may include a bid receipt form, bid evaluation committee report or even a list of suppliers. Should you have any conflicts of interest in relation to the above referenced tender with any of the vendors then kindly declare them in the box below;

20 To be completed by all persons involved in an evaluation process (including members of the evaluation committee; whether voting or not-voting and any observers) 21 Taking into consideration whether there exists any past or present relationship, direct or indirect, whether financial, professional or of another kind. 22 i.e., all (candidate/tenderers) who are participating in the (procurement procedure), whether individuals or members of a consortium, or any of the partners or subcontractors proposed by them. 23 If you cannot declare this, please indicate the name of the employer, the duration and your position.

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Appendix 6 Waiver register

ID No

Tender/Project (Waiver) Title

Project Owner

Institutional Donor Name

IR Office

Waiver Request

date

Waiver Approval

date

Supplier(s) awarded

Estimated Value of Contract

Comments Directors Sign off? (yes/no)

Approved completely

(yes/no)

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Appendix 7 Records management

Contracts Instructions Records Minimum retention policy* Contract Files

• Building Contracts • Good and services

contracts • Consultancy Contracts

Offices will create a file for each building, consultancy and goods, services contract containing contract development and management records.

• Contract correspondence • Contract • Contract variations • Contract reports • Contract issues

Not under Seal Destroy 10 years from end of contract Under Seal Destroy 12 years from end of contract Note: Records of construction activities such as drawings, designs, inspection/material checks, and service reports to be retained in accordance with national laws and regulations.

Contract Register Offices will maintain a register containing a summary record of each building, consultancy, and goods, services contract for contract tracking and management purposes.

Contract register Do not destroy

Procurement Waivers IRW will create a file containing requests for procurement waivers received and related correspondence.

• Request for tender / quotation waiver • Outcome notification

Destroy 10 years from end of calendar year

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Quotations Offices will create a file or sub-file for each procurement by quotation.

• Terms of reference / specification • RFQ • Quotations (‘bids’) • Publication of RFQ if necessary • Bid evaluation matrix • Evidence of vendor screening • Contract / invoice award • Notification letters

Destroy 10 years from end of calendar year Bids from unsuccessful vendors can be destroyed after 6 years.

Supplier Register Offices will maintain a list of approved suppliers.

• Approved supplier list Delete supplier details after approved status expires

Tenders

Offices will create a file for each procurement by tender exercise.

If tender relates to a project expenditure, then the project pin code or pin codes to which the tender relates will be clearly identified on the outside of the file (for physical files only).

Records will be filed in date order either on the file or on a sub-file within the file.

Files will be closed after the tender has been awarded and the contract signed.

• Bid evaluation matrix (CBA) • Tender and guidelines document • Publication/advertisement • Quotations/proposals • Conflict of interest forms (COI) • Contracts and agreements • Invitation to tender • Written minutes of meeting with

shortlisted contractors • Scoring sheets • TOR • Correspondence and screening

confirmations • Other documents as required by the

local office for initiating payments

Destroy 10 years from file close Bids from unsuccessful vendors can be destroyed after 6 years.

*Please note that records should be retained for longer than the minimum retention period if a donor or local law or regulation requires.