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Pre-award negotiation is the process in which the business unit discusses certain aspects of the bid with the bidder who has been recommended for the award of the contract, with the aim of understanding the rights and obligations of both parties and to achieve a mutually beneficial agreement. Negotiation is not a mandatory step in a procurement process. It shall be undertaken on an exceptional basis, and shall be only initiated by UNDP subsequent to review of the procurement process by the relevant procurement authority and in accordance with this policy.
The policy outlines the two types of negotiations:
Price alone, under normal circumstances, should not be negotiated (especially in cases of open competition, which is designed to reflect true value for money). An exception can be made in a situation where the price quoted by the recommended offeror is deemed to be higher than market rates. Negotiation of price in Direct Contracting – When UNDP is evaluating only one offer, the price can and should be negotiated whenever necessary.
Security Charges for Individual Contractors
April 1st, 2016
The security and safety of UNDP personnel is the highest priority in delivering UNDP's mandate around the world. Since 2004, UNDP has put in place an internal cost allocation mechanism to fund the corporate security costs.
At its meeting on 3 March 2016, the OPG authorized the central recovery of security and insurance costs related to Individual Contractors (ICs), thus treating them in a similar way to other UNDP contract holders. As a result, effective 1 April 2016, the following security charges at the same level as the rates for staff, UNV and SC holders will be applied to the professional fees of ICs (excluding payments for travel and/or Daily Subsistence Allowance):
New Pre-award negotiation
New Policy on Engaging CSO/NGO as Responsible Party
October 20th, 2015
The new approach under this policy takes into account the objectives of the programme or project; the scope, nature and value of the NGO/CSO engagement; the capacity of the NGO/CSO; and the level of development of the civil society (considering its NGO/CSO environment and availability). The policy also includes the following key features:
• Identification of relevant NGOs as Responsible Party
• Capacity assessment-driven
• Risk assessment-driven
• Unique collaborative advantage to be determined against a project-specific ToR
• Designed to engage CSOs that are not legally recognized, under specific circumstances.
New Innovation Challenge Policy
September 28th, 2016
This enabling Policy will allow UNDP to find new solutions to development challenges through an open competitive process. With this Policy, UNDP Country Offices, Regional Hubs and HQ units can award prizes up to US$40,000 for innovative and effective solutions. This Policy allows us to better harness the opportunities presented by collaborative technologies and to engage people, organizations, and communities where problems are clearly defined but solutions are not. Innovation Challenges can also help us position ourselves as effective service providers to Governments as we can access ideas, expertise, and solutions no matter where they reside.
Revised Modifications to the Individual Contractors (IC) Policy
September 3rd, 2015
With this revised Policy, Delegated Procurement Authority for the management of ICs is USD 150,000 for all Business Units (over 100k, the case must be reviewed by Contract Assets and Procurement Committee.)