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Programme and Operations Policies and Procedures

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POPP>Procurement>Procurement Methods>Procurement Methods
Procurement Methods
1.0 Relevant Regulations and Rules
UNDP Financial Regulations and Rules (2012)

2.0 Policies
Main Policy
Procurement Methods
 Related Policies
Procurement Ethics, Fraud and Corrupt Practices
Language English | Español | Français
Page Properties
Key Words
Focal Point
Adenike Akoh
Effective Date
Planned Review Date
Summary of Changes/Comments
January 23, 2023 - 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.

January 9, 2023 - The policy has been updated to reflect UNDP's transition to its new cloud-based management platform Quantum in January 2023, replacing its previous ATLAS system.

October 23, 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.

June 23, 2021 - Direct Contracting provision of the Procurement Methods policy was added to align with UNDP's Financial Rules and Regulations.

October 22, 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 29 of the Procurement Methods policy.

July 08, 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.

March 27, 2020 - The International Commercial Terms (INCOTERMS) 2020 has been linked in clause 5 and Form F of the Invitation to Bid (ITB) template, and in clause 29 of the Request for Quotation (RFQ) template. These templates are linked in clauses 29 and 44 of the Procurement Methods Policy.

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.

February 7, 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.

July 17, 2019 - The updated Micro Purchasing Canvassing form is now available in Spanish (document ID POPP-11-3038) and French (document ID POPP-11-3037). These are available in the templates library.

July 11, 2019 - The Micro Purchasing Canvassing form has been simplified through the removal of multiple non-essential fields. The aim is to have in one form, the minimum required information to comply with the Micro-Purchasing procedures; and to include the necessary information to proceed with Atlas transactions.

May 07, 2019 - The Procurement Methods main policy is now available in Spanish. To access the document, click on the Spanish language tab.

December 14, 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 provides 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, cleaning service as there is sufficient specific corporate guidance and templates on the procurement of the said goods/services.

October 02, 2018 - The Procurement Methods main policy is now available in French. To access the document, click on the French language tab.

September 26, 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.

August 03, 2018 - The policy update highlights that direct contracting is permitted up to 18 months as part of the mainstreaming of piloted measures.

To streamline the process, Country Offices may request increasing the Micro-purchasing threshold to $10,000 as part of the request for the Increased Delegation of Procurement Authority.

Various procurement methods chapters have been consolidated into one document. The Request for Quotation (RFQ) is up to $ 149,999. The threshold of Micro-purchasing can be increased to $10,000 for Country Offices granted an increased Delegation of Procurement Authority.