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Policy Areas

Pre-Award Negotiations

Effective Date

Dec 07, 2016

Summary of Changes

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.

Dependency Status and Allowances

Effective Date

Jan 01, 2017

Summary of Changes

The revisions to the policy and procedures align with the new compensation package for internationally recruited staff approved by Resolution GA/RES/70/244 of the General Assembly on 23 December 2015. In accordance with Staff Regulation 3.4 (e) and Staff Rule 3.6 all staff members are obliged to report any changes to their dependency status to BMS/OHR at the time of the change ensuring accuracy in payment of benefits.

Mandatory Age of Separation

Effective Date

Jan 01, 2017

Summary of Changes

This policy replaces the “Retirement” Policy and is UNDP’s implementation of the New Compensation Package approved by the General Assembly [GA Resolution 70/244 in February 2016]. Key changes are as follows:
a) In accordance with UN Staff Regulation 9.2, the age for mandatory separation in UNDP is age 60 for staff members that are recruited before 1 January 1990; age 62 for staff members that are recruited on or after 1 January 1990 and age 65 for staff members that are recruited on or after 1 January, 2014.
b) 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.

Expenditure of Income Accrued from Cost Recovery

Effective Date

Jan 01, 2017

Summary of Changes

The policy provides clarification and guidance as to how to use differentiated funding codes to track allocation, revenue, and expenditure on core and non-core institutional funding lines. This reflects the Cost Centre approach recently approved by the Executive Group.

Combined Delivery Report (CDR)

Effective Date

Jan 01, 2017

Summary of Changes

The updates are intended to reduce the staff burden and expedite compliance process in respect of CDRs.
a) Offices are now required send CDRs to Implementing Partners (IPs) for verification and signature, only for the 2nd, 3rd and 4th quarters of the year. The 2nd quarter CDR will cover January to June expenses.
b) If no response is received from the IP within 30 days, a follow-up request should be sent indicating that “the Combined Delivery Report will be deemed accepted if no response received within 15 calendar days. Copies of the CDR (or evidence of follow-up where no responses are received), should be uploaded to the CDR Library (in UNDP’s Corporate Planning System) no later than 45 calendar days after the end of each quarter.

Cost Recovery from Other Resources - GMS

Effective Date

Jan 01, 2017

Summary of Changes
Adjustments to the POPP content on GMS income to reflect the changes arising from the 2017 enhanced planning exercise, including:
a. A discontinuation of internal distribution of GMS income for all funds except those from Vertical Funds;
b. A revised GMS rate calculator for UNDP, GEF, GFATM and MP projects
c. Recording of DPC in relation to GMS exceptions.

Settling-In Grant

Effective Date

Jan 25, 2017

Summary of Changes

The entitlement formerly known as the Assignment grant is now called Settling-in grant. Under this policy, payment of the non-removal allowance is discontinued. Staff who moved prior to the implementation of the new relocation package and are in receipt of non-removal allowance will continue to receive the allowance for up to five years, or until they move to another duty station, as per current eligibility criteria.

Further, the second lump sum equivalent to one additional month of net salary previously payable under the non-removal option in case of moves to field duty stations for three years or more has been abolished. Where the letter offer issued to the staff member includes a payment of the second lump sum payment, this will be honoured.

Information and FAQs on these updates and other elements of the New Compensation Package for internationally recruited staff members in the professional and higher categories can be found on OHR website.

Repatriation Grant

Effective Date

Jan 25, 2017

Summary of Changes

Eligibility to repatriation grant is subject to a minimum of five years of expatriate service. Serving staff will retain their eligibility under the current grant up to the number of years accrued at the time of implementation.

Mobility and Hardship

Effective Date

Jan 25, 2017

Summary of Changes

A mobility incentive is introduced to replace the current mobility allowance. The annual amounts of the mobility incentive per grade band are as follows:

P.1 – P.3 6,500 USD

P.4 – P.5 8,125 USD

D.1 and above 9,750 USD

The incentive is payable to staff with at least five consecutive years of prior service in a UN common system organization, as of their second assignment, following a geographical move. Staff assigned to category "H" duty stations will not be eligible to the incentive. The incentive will be payable for a period of up to five years. Staff members serving in the "H'' duty stations that are in receipt of the mobility allowance or received a letter of offer that included the mobility allowance will continue to receive the current amount for up to five years or the move to the next assignment, whichever comes earlier. The mobility incentive will be increased by 25 per cent as of the 4th assignment, and by 50 per cent as of the 7th assignment.

The hardship allowance system is adjusted as follows, eliminating the current single rate (amounts in USD):

Hardship category P.1 – P.3 P.4 – P.5 D.1 and above

A - - -

B 5,810 6,970 8,140

C 10,470 12,780 15,110

D 13,950 16,280 18,590

E 17,440 20,920 23,250

The current additional hardship allowance is replaced with a non-family service allowance. Eligible staff with recognized dependents receive 19,800 USD/year (1,650 USD/month); staff with no dependents receive 7,500 USD/year (625 USD/month).

A mobility incentive is introduced to replace the current mobility allowance. The annual amounts of the mobility incentive per grade band are as follows:

P.1 – P.3 6,500 USD

P.4 – P.5 8,125 USD

D.1 and above 9,750 USD

The incentive is payable to staff with at least five consecutive years of prior service in a UN common system organization, as of their second assignment, following a geographical move. Staff assigned to category "H" duty stations will not be eligible to the incentive. The incentive will be payable for a period of up to five years. Staff members serving in the "H'' duty stations that are in receipt of the mobility allowance or received a letter of offer that included the mobility allowance will continue to receive the current amount for up to five years or the move to the next assignment, whichever comes earlier. The mobility incentive will be increased by 25 per cent as of the 4th assignment, and by 50 per cent as of the 7th assignment.

The hardship allowance system is adjusted as follows, eliminating the current single rate (amounts in USD):

Hardship category P.1 – P.3 P.4 – P.5 D.1 and above

A - - -

B

5,810 6,970 8,140

C 10,470 12,780 15,110

D 13,950 16,280 18,590

E 17,440 20,920 23,250

The current additional hardship allowance is replaced with a non-family service allowance. Eligible staff with recognized dependents receive 19,800 USD/year (1,650 USD/month); staff with no dependents receive 7,500 USD/year (625 USD/month).

Home Leave

Effective Date

Jan 25, 2017

Summary of Changes

Accelerated home leave is discontinued, except in category D and E duty stations that are not designated for rest and recuperation (R&R) under the framework of International Civil Service Commission (ICSC).

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