Programme and Operations Policies and Procedures

 

Announcement 

Paragraphs 20 and 22 of the policy have been updated to align with the already published provisions on Micro-purchasing that is now processed in Quantum.

99. Procurement, January 9th, 2023

The following policies and procedures have been updated to reflect UNDP's transition to its new cloud-based management platform Quantum in January 2023, replacing its previous ATLAS system.

• Contracts Management (policy and procedures)
• Use of Online Quantum System (policy and procedures)
• Evaluation of Offers(policy only)
• Individual Contract (policy only)
• Procurement Authority and Increased Delegated Procurement Authority (policy only)
• Procurement Ethics, Fraud and Corrupt Practices (policy only)
• Procurement Forecasting and Delivery (policy and procedurea)
• Procurement Methods (policy only)
• Solicitation (policy and procedures)
• Submission and Receipt of Offers (policy only)
• Transactional Procurement Strategies and Procurement Planning (policy only)

96. RFQ template,  RFP (for Services $200 K and above) template and ITB template , September 24^th, 2022

The RFQ, RFP (for services $200K and above) and ITB templates have been updated to align with the new Anti-Money Laundering and Countering the Financing of Terrorism Policy (AML/CFT Policy) and now includes ‘ultimate beneficial owners’ as follows: (i) In the procurement self-certification sections in the RFQ template in Section 2: RFQ Instructions and Data, Eligibility and in Annex 2: Quotation Submission Form, Bidder’s Declaration, Prohibition, Sanctions. (ii) In Section 2. Instructions to Bidders, A. General Provisions, 3. Eligibility in paragraph 3.2 in the RFP template (for services $200K and above) and in the ITB templates. For AML/CFT purposes (FATF Recommendation 24), the definition of ultimate beneficial owners focuses on the natural persons behind corporate entities. Ultimate beneficial owner means a natural person that exercises control over an entity through direct or indirect ownership, or has other means of influencing the Bidder such as through financing, close family relationships with the owners of the Bidder or through holding key positions within the Bidder. The updated templates are linked in paragraph 4 of the Solicitation policy.

95. Individual Contract, January 14th, 2022

 This update is to alert all UNDP COs and BUs that the I-PSA and the N-PSA will replace all international and local ICs as of 31 March 2022 (extended from 31 December 2021), except those which are of lumpsum deliverable-based arrangements. After this date, the use of ICs will be restricted to lump-sum deliverable-based arrangements only. However, the IC policy is still available in its current form, covering both daily and lump-sum based ICs; for use by all other UN Agencies until 31 December 2022.

94. Procurement Methods, October 23rd, 2021

 The updated version of the Procurement Methods main policy is now available in Spanish. To access the document, click on the Spanish language tab.

93. Construction Works, October 6th, 2021

 Clauses 44-45 of the Construction Guidance Note have been updated to align with a UNBOA audit recommendation. Pre-bid conferences/site visits are mandatory only in the instances where, due to situations beyond UNDP’s control, the information provided in the solicitation document are not clear enough to enable the bidders to fully understand the scope of works, or it has been determined that the quality of bids would significantly improve. When a pre-bid conference and/or site visit is deemed mandatory procedures should be established to reduce the risk of collusion among the bidders or between UNDP’s personnel and the bidders.

92. Contract Face Sheet on Behalf of a UN Entity, September 24th, 2021

 The Contract Face Sheet on Behalf of a UN Entity has been updated. The new version includes changes in the terminology and changes to the template formatting. The updated template is linked in clause 2 of the Templates/Forms/Links section at the end of the General Considerations of Contracting Policy and also published in Libraries under Templates & Guidelines, POPP ID: POPP-11-2485.

91. Evaluation of Offers, July 27^th, 2021

The Preliminary Examination Template – for RFPs and ITBs is now available in French (POPP-11-3584). 

Direct Contracting provision 73.vi. of the Procurement Methods policy was added to align with UNDP's Financial Rules and Regulations.

89. Individual Contract, April 30^th, 2021

The Statement of Health template (for Individual Contract) is now available in the POPP templates library.

87. Individual Contract, April 5^th, 2021

The Statement of Health template in Spanish (for Individual Contract) is now available in the POPP templates library.

87. Procurement, March 11^th, 2021

The following procurement documents are now available in the POPP templates library:

1. Model Contract for Rental of Vehicle with Driver
2. Model Contract for Rental of Vehicle with Driver (Spanish)
3. Model Travel Agency Agreement
4. Model Travel Agency Agreement (Spanish)
5. Model Contract for Security Services
6. Model Contract for Security Services (Spanish)
7. Model Contract for Reprints (Spanish)
8. Model Basic Publishing Contract (Spanish)
9. Model Contract for Publication Services

86. Procurement Oversight and Procurement Review Committees, February 23^rd, 2021

The Procurement Oversight and Procurement Review Committees policy was updated to reflect the streamlining of direct review for ACP/RACP Chairs that was approved in 2018 by BMS.

85. Individual Contract, February 16^th, 2021

Changes made to the Individual Contract policy are in alignment with similar changes in United Nations Security Management System (UNSMS) policies. With the abolishment of the Security Level System and replacement with the Security Risk Management (SRM) methodology, relevant security related insertions in the policy have been modified. These insertions include replacing terminologies on “Security Levels” with “Security Risks”, including ICs within the security warden system as per UNSMS applicability policy, and local UNSMS arrangements, including “evacuation procedures” as a “risk avoidance” measure, and including IC’s personal responsibility to submit Security Clearance requests via the TRIP platform prior to travel.

84. Special Conditions for Cloud Computing, February 10^th, 2021

The new Special Conditions for Cloud Computing (POPP-11-3476) has been uploaded to the POPP templates library. When procuring Software as a Service (SaaS), the procurement is exclusively for the right to access the services. In this context Business Units shall use the Face Sheet for Goods and Services (POPP-11-2483) AND the Special Conditions for Cloud Computing (POPP-11-3476) shall apply to the contract in addition to the General Terms and Conditions for Contracts (the “General Conditions”) (POPP-11-2493). In case of conflict between the General Conditions and the Special Conditions, the Special Conditions shall take precedence.

83. Software License and Services Agreement, January 19^th, 2021

The new Software License and Services Agreement (POPP-11-3431) has been uploaded to the POPP templates library. Business Units should use this template when procuring a license to use commercially available software - both when the license is procured for UNDP’s internal use of the software, and when the license is procured by UNDP for a third party (such as a governmental entity or another UN entity).

82. Engaging CSO/NGO as a Responsible Party, January 12^th, 2021

The Engaging CSO/NGO as a Responsible Party policy is now available in French. To access the document, click on the French language tab.

81. General Considerations of Contracting, January 12^th, 2021

The General Considerations of Contracting policy is now available in French. To access the document, click on the French language tab.

80. Individual Contract, January 12^th, 2021

The Security Charges to Individual Contracts policy is now available in French. The document is linked under related policies on the Individual Contract page, section 2.0.

79. Procurement, January 8^th, 2021

The following policies are available in French. To access the content, click on the French language tab of the respective policy page:

1. Handling of Procurement Complaints
2. Payment and Taxes
3. Shipping and Insurance
4. Requisition and Procurement of Goods, Civil Works and Services 
5. Pre-Award Negotiations
   

78. Construction Works,  November 18^th, 2020

The Construction Works policy and Guidance Note (POPP-11-3373) are available in Spanish. To access the content, click on the Spanish language tab.

77. Individual Contract, November 17^th, 2020

The Consultancy Duration and Daily Fee Approval Form (POPP-11-3371) is now linked to the Individual Contract policy in clauses 18, 28, and 40.

76. Construction Works,  November 5^th, 2020

The Construction Works policy and accompanying Guidance Note have been updated to reflect that Resident Representatives are authorized to approve project documents with works up to the standard delegation of procurement authority. Additionally, the template, Request for Approval or Delegation for Project Document that includes Construction Works (POPP-11-3360), has been linked in clause 23 of the policy. Business Units shall utilise this template to obtain the necessary approvals for works projects.

75. Construction Works,  October 28^th, 2020

The Construction Works policy and Guidance Note (POPP-11-3352) are available in French. To access the content, click on the French language tab.

74. Request for Quotation Template, October 22^nd, 2020

The threshold of Request for Quotations (RFQs) has increased from US$150,000 to US$200,000 to align with the increase in the delegated authority to Heads of Business Units with the continued systemic use of eTendering. This measure is mainstreamed in the launch of the new harmonized RFQ template established in collaboration with other UN Agencies by the HLCM Procurement Network.

The RFQ is linked in clause 4.b. of the Solicitation policy and in clause 29 of the Procurement Methods policy.

73. Long Term Agreements (LTAs) and Cooperation with UN Entities, October 12^th, 2020

The Long Term Agreements (LTAs) and Cooperation with UN Entities policy is now available in French. To access the document, click on the French language tab.

72. Long Term Agreements (LTAs) and Cooperation with UN Entities, September 09^th, 2020

The LTAs and Cooperation with UN Entities policy has been updated to reflect the “Mutual Recognition” statement released in 2019, as agreed by the HLCM.

71. Micro-Purchase Canvass Form, July 08^th, 2020

The Micro-Purchase Canvass form linked under clause 22 of the Procurement Methods policy has been updated to ensure that the vendor sanctions lists are verified for micro-purchasing processes.

70. Innovation Challenges, July 07^th, 2020

The Innovation Challenges policy is now available in Spanish. To access the content, click on the Spanish language tab.

69. Innovation Challenges Agreement Template (Company), July 07^th, 2020

The Innovation Challenges Agreement Template (Company) is now available in Spanish in the template library (POPP-11-3271). It is also linked in step 9 of the Innovation Challenges procedure table, section 3.0.

68. Procurement, June 23^rd, 2020

The following policies are available in Spanish. To access the content, click on the Spanish language tab of the respective policy page:

1. General Considerations of Contracting
2. Handling of Procurement Complaints
3. Payment and Taxes
4. Shipping and Insurance
5. Engaging CSO/NGO as a Responsible Party
6. Security Charges to Individual Contracts (located under "Related Policies" on the Individual Contract policy page, section 2.0)

67. Construction Works, June 4^th, 2020

The Construction Works policy applies to all construction works undertaken by UNDP in its development activities and management projects. It covers all aspects of construction such as civil, mechanical, electrical, and associated works - from taking initial steps to meet a need (or part of a need) by constructing a physical asset or facility - to UNDP's take over of the completed facility, and, where applicable, handover of the facility to project beneficiaries.

The Construction Works Guidance Note is linked in clause 8 of the policy (document ID POPP-11-3238). It supplements the Construction Works policy and details how various clauses in the policy should be implemented, hence the documents contain similar headings. It is also linked in section 2.0, below the policy.

66. Procurement, June 3^rd, 2020

The following policies are available in Spanish. To access the content, click on the Spanish language tab of the respective policy page:

1. Long Term Agreements (LTAs)
2. Pre-Award Negotiations
3. Requisition and Procurement of Goods, Civil Works and Services
4. Vendor Sanctions

65. Supplier Performance Evaluation Form (Spanish), May 18^th, 2020

The Supplier Performance Evaluation Form is now available in Spanish in the POPP templates library (document ID POPP-11-3235). It is also linked in clause 17.d.i. of the Contract Management policy.

64. Sustainable Procurement, May 4^th, 2020

Clause 2 of the policy has been updated to include provisions for human rights, disability inclusiveness and gender in alignment with the United Nations Disability Inclusion Strategy (UNDIS).

63.  Contract Management, April 27^th, 2020

The Amendment Letter template, linked in clause 17 (e) of the Contract Management policy, is now available in Spanish. It will be used for all amendments for the procurement of goods and services (POPP-11-3222). To access the document, click on the Spanish language tab.

62.  Contract Management, April 22^nd, 2020

The Amendment Letter template, linked in clause 17 (e) of the Contract Management policy, will be used for all amendments for the procurement of goods and services (POPP-11-2475). 

61.  Procurement, March 27^th, 2020

The International Commercial Terms (INCOTERMS) 2020 has been linked in clause 3 of the Shipping and Insurance policy and in the following templates:

1. Long Term Agreement (Clauses 4 and 5) (Also available in Spanish); This template is in the POPP templates library (POPP-11-3138)
2. GTCs for Contracts (Goods and-or Services) (Clauses 11.1 and 11.4) (Also available in French and Spanish). This template is linked in the General Considerations of Contracting Policy (Clause 27).
3. Invitation To Bid (clause 5 and Form F) (Also available in French and Spanish). This template is linked in the Procurement Methods Policy (Clause 44).
4. Request for Quotation (pp 4 and 10) (Also available in French and Spanish). This template is linked in the Procurement Methods Policy (Clause 29).

Differences between Incoterms 2010 and 2020:

• The Incoterms FCA (Free Carrier) now provides the additional option to make an on-board notation on the Bill of Lading prior loading of the goods on a vessel.
• The costs now appear centralized in A9/B9 of each Incoterms rule.
• CIP now requires at least an insurance with the minimum cover of the Institute Cargo Clause (A) (All risk, subject to itemized exclusions).
• CIF requires at least an insurance with the minimum cover of the Institute Cargo Clause (C) (Number of listed risks, subject to itemized exclusions).
• The Incoterms rules Free Carrier (FCA), Delivered at Place (DAP), Delivered at Place Unloaded (DPU) and Delivered Duty Paid (DDP) now take into account that the goods may be carried without any third-party carrier being engaged, namely by using its own means of transportation.
• The rule Delivered at Terminal (DAT) has been changed to Delivered at Place Unloaded (DPU) to clarify that the place of destination could be any place and not only a “terminal”.
• The Incoterms 2020 now explicitly shifts the responsibility of security-related requirements and ancillary costs to the seller.

60.  Procurement Oversight and Procurement Review Committees, February 11^th, 2020

​​UNDP has changed its asset capitalization threshold from US $1,500 to US $5,000. This policy change will significantly reduce the volume (i.e. quantity) of assets in the asset register, thereby allowing UNDP to focus attention on higher value items. The change in policy should also result in a more effective verification and certification process. Clause 53 of the Procurement Oversight and Procurement Review Committees policy has been updated accordingly.

59.  Procurement Methods, February 7^th, 2020

The table in clause 20 of the Procurement Methods policy was updated to reflect that UNDP has changed its asset capitalization threshold from US $1,500 to US $5,000. This policy change will significantly reduce the volume (i.e. quantity) of assets in the asset register thereby allowing UNDP to focus attention on higher value items. The change in policy should also result in a more effective verification and certification process.

58.  Innovation Challenges Agreement Template (Individual), January 14^th, 2020

The Innovation Challenges Agreement Template (Individual) is now available in Spanish in the template library (POPP-11-3130). It is also linked in step 9 of the Innovation Challenges procedure table, section 3.0.

57.  Innovation Challenge Agreement Template (Individual), October 29^th, 2019

The Innovation Challenge Agreement Template (Individual) is now available in French in the template library (POPP-11-3091).

56.  Engaging CSO/NGO as a Responsible Party, October 15^th, 2019

The Request For Information template is available in French in the template library (POPP-11-3092) and in step 1 of the procedure table.

55.  Engaging CSO/NGO as a Responsible Party, September 9^th, 2019

The Responsible Party Agreement template is available in French template is available in French in step 15 of the procedure table.

54.  eTendering, September 1^st, 2019

The eTendering system is mandatory from 01 September 2019. 

53.  Procurement Oversight and Procurement Review Committees, August 30^th, 2019

The standard delegated procurement authority of a Resident Representative or head of a business unit is US $200,000, except for Business units granted the exceptional approval to be exempted from the mandatory use of eTendering which will remain as $150,000.

52. Procurement Authority and Increased Delegated Procurement Authority, August 30^th, 2019

The standard delegated procurement authority of a Resident Representative or head of a business unit is US $200,000, except for Business units granted the exceptional approval to be exempted from the mandatory use of eTendering which will remain as $150,000.

51. Micro Purchasing Canvassing form, July 17^th, 2019

The Procurement Methods main policy is now available in Spanish. To access the document, click on the Spanish language tab.

41. Procurement Forecasting and Delivery, May 7^th, 2019

The Procurement Forecasting and Delivery policy and procedures are now available in Spanish. To access this information, click on the Spanish language tab.

40. Individual Contract, April 15^th, 2019

The Individual Contract main policy is available in French. To access the documents, click on the French language tab.

39. Health, March 27^th, 2019

​The Quality Assurance Policy and Procedures for Health Products have been added to the Procurement section of the POPP. This new chapter is available under the Innovation, CSO engagement, and E-tendering policy area. It was developed to assure the safety of all health products procured by UNDP, in line with international best practices. By detailing UNDP quality assurance requirements for health procurement, the Policy represents a key document for all parties involved in procurement activities across UNDP as well as for national partners, suppliers and donors.

38. Procurement Forecasting and Delivery, March 26^th, 2019

The Procurement Forecasting and Delivery policy and procedures are now available in French. To access this information, click on the French language tab.

36. Contract Management, December 14^th, 2018

​Contract Management Guidelines (including updates on contract amendments and LTAs) have been added to the Contract Management main policy page. They are linked in step 1 of the Contract Management procedure table.

37. Procurement Oversight and Procurement Review Committees, December 14^th, 2018

​Notes for the Ex-Ante in Section 54 of the Procurement Oversight and Procurement Review Committees policy was updated to reflect streamlining measures recently set forth by the Bureau of Management Services that provide exemptions from the need to submit for ex-ante review for successful previous experience and repetitive country specific (local) LTAs for country office operations supports such as for travel, security, and cleaning services, as there is sufficient specific corporate guidance and templates on the procurement of the said goods/services.

36. Procurement Methods, December 14^th, 2018

Section 79.e. of the Procurement Methods policy was updated to reflect streamlining measures recently set forth by the Bureau of Management Services that provide exemptions from the need to submit for ex-ante review for successful previous experience and repetitive country specific (local) LTAs for country office operations supports such as for travel, security, and cleaning services, as there is sufficient specific corporate guidance and templates on the procurement of the said goods/services.

35. Corporate Purchasing Card, November 21^st, 2018

Sections 1 and 4 of the UNDP Corporate Purchasing Card Management policy were updated to reflect that the single payment limit has been raised from $2,500 to $5,000.

34. eTendering Approval Roles, November 12^th, 2018

The procedure table, "eTendering Approval Roles" has been added to section 3.0 of the Sourcing and Market Research main policy page. The template, "Management of the Approver Roles in ATLAS eTendering" is linked to step 1 of the procedure table and is available in the POPP library. The document provides guidance on eTendering, an Atlas module that enables UNDP buyers to manage tender processes online.

33. Evaluation of Offers, October 3^rd, 2018

The Evaluation of Offers policy is available in French. Kindly note that any differences in the English and French texts will be interpreted in accordance with the English version.

32. Procurement Authority and Increased Delegated Procurement Authority, October 3^rd, 2018

The Procurement Authority and Increased Delegated Procurement Authority main policy is now available in French. The Procurement Authority and Increased Delegated Procurement Authority main policy is now available in French.

31. Sustainable Procurement, October 2^nd, 2018

The Sustainable Procurement main policy is now available in French. Kindly note that any differences in the English and French texts will be interpreted in accordance with the English version.

30. Contract Management, October 2^nd, 2018

The Contract Management main policy is now available in French. Kindly note that any differences in the English and French texts will be interpreted in accordance with the English version. 

29. Procurement Methods, October 2^nd, 2018

The Procurement Methods main policy is now available in French. Kindly note that any differences in the English and French texts will be interpreted in accordance with the English version.

28. Procurement Overview and Principles, October 2^nd, 2018

The Procurement Overview and Principles policy is now available in French. Kindly note that any differences in the English and French texts will be interpreted in accordance with the English version.

27. Ethics and Fraud, October 1^st, 2018

The Ethics and Fraud main policy is now available in French. Kindly note that any differences in the English and French texts will be interpreted in accordance with the English version. 

26. General Considerations of Contracting, September 25^th, 2018

Section 8 of the General Considerations of Contracting main policy was updated to indicate that Business Units are to maintain an audit trail for all contracts, including utilizing the Contract Management Module. Additionally, in section 18, the minimum threshold value for goods procured by UNDP requiring issuance of a purchase order, was increased from USD 2,500 to USD 5,000.

25. Procurement Methods, September 25^th, 2018

The policies and provisions in sections 3, 20, 73 and 77 of the Procurement Methods policy were updated to reflect that the micro-purchasing threshold can be up to $10,000 if approved by the Bureaus. Further, sections 3 and 29 were updated to indicate that Business Units that have been approved to utilise Micro-purchasing up to $10,000 may utilise the Request for Quotation method from $10,000. 

24. Individual Contracting, September 25^th, 2018

In the Individual Contracting policy, Selection of Individual Contractors (section 69) and the Direct Contracting provision (section 112) were updated to reflect that the threshold of no-competition for ICs can be increased to $10,000 if approved by the Bureaus. The direct contracting template for Individual Contractors was updated accordingly.

23. Individual Contracting, September 12^th, 2018

The Individual Contract Procurement Notice template is now available in French. The document is available in the POPP library templates (document # POPP-11-2829).

22. Individual Contracting, September 12^th, 2018

The Letter of Invitation to Submit an Offer template is now available in French. The document is available in the POPP library templates (document # POPP-11-2828).

21. Submission and Receipt of Offers, September 12^th, 2018

The Submission and Receipt of Offers policy is available in French. Kindly note that any differences in the English and French texts will be interpreted in accordance with the English version.

20. Transactional Procurement Strategies and Procurement Planning, September 17^th, 2018

The Transactional Procurement Strategies and Procurement Planning policy is available in French. 

19. Vendor Sanctions, September 17^th, 2018

The Vendor Sanctions policy is available in French. Kindly note that any differences in the English and French texts will be interpreted in accordance with the English version. 

18. Evaluation of Offers, September 13^th, 2018

The Evaluation of Offers policy includes the following steps in section C (Invitation to Bid): 

a) Preliminary Examination including Eligibility
b) Arithmetical check and ranking of bidders who passed preliminary examination by price.
c) Qualification assessment (if pre-qualification was not done)
d) Evaluation of Technical Bids
e) Evaluation of prices

Detailed evaluation will be focused on the 3 - 5 lowest priced bids. Further higher priced bids shall be added for evaluation if necessary.

17.  Individual Contract, August 3^rd, 2018

The updated policy reflects the procedure for increasing the no-competition threshold for ICsto $10,000. Other changes include the removal of P11, an updated template for Offerors' Letter; updates on reference checks and the change of the required age for medical examination to 65 from 62.  

16. Long Term Agreements (LTA), August 3^rd, 2018

The policy change requires country offices who will utilise other COs' LTAs to ensure that the prices are competitive, value for money is demonstrated and appropriate procurement committee reviews are conducted. Direct review by ACP/RACP shall be requested, if applicable.

15. Procurement Methods, August 3^rd, 2018

The policy update highlights that direct contracting is permitted up to 18 months as part of the mainstreaming of piloted measures.

 14. General Considerations of Contracting, October 27^th, 2017

 [New] Contract Face Sheets and General Terms and Conditions

A new set of consolidated and simplified corporate contract templates for the procurement of goods and services have been provided for the following four categories:

1. Contract Face Sheet (Goods and/or Services) for goods/services for/to UNDP;
2. Contract Face Sheet (Goods and/or Services) for goods/services for/to UN Entities (when UNDP is procuring services/good and signing the contract on behalf of another UN Entity);
3. General Terms and Conditions (for Goods and/or Services); and
4. General Terms and Conditions for de minimis contracts (Services only).

The new templates replaced the Contract for Professional Services, Institutional Contracts, and Long-Term Agreements (LTAs) but they do not replace the Individual Contract, Purchase Orders, or Contracts for Civil Works. LTAs are now incorporated into the Contract Face Sheet.

14. Individual Contract Policy (IC), October 18^th, 2017

Restrictions concerning former staff members in receipt of a pension benefit.

The policy was updated to align it with the new HR policy on maximum compensation to be paid to former staff members on pension benefit.

120. Employment of former staff members who are in receipt of a pension benefit from the UNJSPF shall be subject to the following restrictions:
a) Former staff members may not receive compensation of more than US$ 50,000 for up to six months of employment or engagement, without suspension of his or her UNJSPF retirement benefit.

 13. Individual Contract Policy (IC), October 2^nd, 2017

Determining a competitive process for Individual Contractors (ICs).

The policy was changed to align the requirements of a competitive process for ICs with that of RFQ/ITB/RFP- 

Sourcing of Candidates

70a. An individual contractor selection process is considered competitive, even if it results in less than three responsive bids. An award may still be made, but approval depends on due diligence to ensure that sourcing was properly conducted, and that the limited market response was not the result of a restrictive short list or unsuitable sourcing strategy.

12. Contract Management, August 1^st, 2017

This policy provides clarity on post-award contract management activities including roles and responsibilities of the procurement and requesting units in managing contracts; monitoring of contract implementation, change management, performance evaluation and dispute resolution. This policy is intended to lead to savings on time and resources spent on contract management tasks, enhance the reputation of UNDP in the market, reduce delays in delivery as well as reduce the number and cost of unresolved disputes.

11. Pre-Award Negotiations, December 7^th, 2016

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:

• Substantive Negotiations: Should be fully justifiable, as they may significantly affect the scope of the requirements, terms and/or price beyond UNDP's right to vary the quantity up to 25 percent.
• Non-Substantive Negotiations: Do not significantly affect the scope of the requirements, terms and/or price, and are within the right of UNDP to vary the quantity by 25 percent.

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.

10. Individual Contract Policy (IC), November 9^th, 2016 - The Letter of Invitation to Submit an Offer template is now available in French. The document is available in the POPP library templates (document # POPP-11-2828).

9. Revised Increased Delegated Procurement Authority, September 22^nd, 2016

The following provisions, which previously required Fast Track activation request are no-longer necessary (i.e. integrated into the main policies).

a)       The authority to grant the increase in Delegated Procurement Authority was devolved to Regional Chief Procurement Officers (RCPOs) in consultation with respective Regional Bureau Director for clearance. The respective RACP Chairpersons then will be responsible for obtaining technical inputs from relevant offices in assessing a request for increased delegation.

b)      Recognizing the reduction of risks through e-Tendering, the standard delegated procurement authority of Resident Representative or head of a business unit in an office that systematically uses the e-Tendering has been raised from US$ 150,000 to US $200,000, based on the confirmation by the ACP Chairperson or respective Regional ACP Chairpersons.

8. Procurement Methods, September 22^nd, 2016

a)            Micro-purchasing
Country offices may request increasing the micro-purchasing threshold from US$ 5,000 to US$ 10,000 as part of their request for increase in delegated procurement authority. Please see Procurement Methods .
 
b)            Request for Quotation (RFQ) 
Offices are now authorized to issue RFQs in line with the following thresholds:
•              For offices with micro-purchasing threshold of USD 5,000, the RFQ limit is US$ 5,000 ¬ US$ 149,999.
•              For offices with micro-purchasing threshold of USD 10,000, the RFQ limit is US$ 10,000 ¬ US$ 149,999.

7. Procurement Oversight and Review Committee, July 26^th, 2016

The requirement for Contracts, Assets and Procurement (CAP) Committee review was replaced with Direct Review by the CAP Chairperson for procurement actions valued between US$ 50,000 and US$ 150,000 (and US$ 75,000 for direct contracting). The CAP Chairperson may consult or request assistance from the Chairperson of the Regional Advisory Committee for Procurement (RACP) in reviewing any procurement action. If necessary, the CAP Chairperson, in consultation with the Head of Office, may escalate the case to the RACP Chairperson for his or her Direct Review. A full CAP Committee review is required only in those Country Offices that are granted an Increased Delegation of Procurement Authority (DPA) to review procurement actions valued between US$ 150,000 and the Increased DPA for competitive processes (and between US$ 75,000 and up to 50 percent of the Increased DPA for direct contracting). The quorum for a Committee was reduced from three members to two members, in addition to the Chairperson and/or Secretary.

6. Security Charges for Individual Contractors, April 1^st, 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):

• 4.25% for duty stations H, A, B & C
• 6.25% in duty stations D & E.
• The above percentages are based on the capital city's hardship classification for the hiring Unit, and will be recovered by HQs on a regular basis against the budget(s) used for the payment of the IC. Therefore, all offices must ensure when planning that these costs are included in their project budgets (refer to Annex I for detailed guidance).

5. New Pre-Award Negotiation, December 7^th, 2016

Pre-award negotiation ("hereinafter referred to as "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 [1] 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:

• Substantive Negotiations: Should be fully justifiable, as they may significantly affect the scope of the requirements, terms and/or price beyond UNDP's right to vary the quantity up to 25%.
• Non-Substantive Negotiations: Do not significantly affect the scope of the requirements, terms and/or price, and are within the right of UNDP to vary the quantity by 25%

It is important to note the required conditions for exceptional negotiation of price:

• 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.

[1] The recommended offeror can only request negotiations on certain aspects of the contract upon the award of the contract, while this policy addresses pre-award negotiations. BUs shall ensure that such negotiations are in the interest of UNDP and for the success of the contract.

4. New Policy on Engaging CSO/NGO as Responsible Party, October 20^th, 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.

3. New Innovation Challenge Policy, September 28^th, 2015

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.

2. Individual Contract (IC) Policy, September 3^rd, 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.)

• COs may have ICs with durations up to 24 months (over 24 months, Bureau Director or Resident Representative (if delegated) approval of duration is required) – though it is important to note that consultancies are typically recommended for short-term interventions, usually up to 12 months

COs may have IC daily fees up to USD 1,350 (over $1,350, RR approval is required with notification to the Bureau Director).

1. Individual Contract (IC) Policy, April 1^st, 2015 - Reviewed and edited (no substantive change) in Q4 2015.