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Procurement Methods

Effective Date

Sep 22, 2016

Summary of Changes
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.

Procurement Authority and Increased Delegated Procurement Authority

Effective Date

Sep 22, 2016

Summary of Changes

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.

Commercial Air Travel Safety Guidelines

Effective Date

Sep 29, 2016

Summary of Changes
The Air Travel Risk Management Guidelines have been revised to reflect a new UN Security Management System Air Travel Policy. Theseguidelines are applicable to all UNDP Personnel on official travel via Commercial Air (Transport) Operators, UN Chartered Flights and Donated Flights. To facilitate booking of flights, a Global Booking List of Airlines Pre-approved for Travel by UNDP Personnel has been made available on the UNDP Intranet via the following link. For Airlines which are not pre-approved (and therefore not included in the UNDP Global Booking List), the guidelines provide for an evidence-based risk assessment methodology, enabling informed decision making by the UNDP Managers with Signature Authority before use of these airlines.

Quantum Financial Closure Instructions

Effective Date

Nov 29, 2016

Summary of Changes

We have reflected the International Public Sector Accounting Standards (IPSAS) closure process and linked the technical year-end closing guidance.

Purchase Orders (Obligations, Maintenance and Closure)

Effective Date

Nov 30, 2016

Summary of Changes

For greater efficiency and better financial tracking, offices are now able to set up multi-year POs for projects that have future year resources and budgets. This allows UNDP to better track deliverables of a supplier for a given procurement action through a single PO reference. When raising multi-year PO lines in Atlas, offices must ensure that corresponding multi-year budget and resources are available. For projects where Annual Spending Limits (ASLs) are limited to one year, multi-year PO lines should not be used.

Previously, goods or services, which are expected to be received over more than one financial period, a separate PO had to be raised for each of the respective financial periods, and offices were requested to close POs annually. Multi-year contracts for projects were also maintained outside Atlas. Such requirements are no longer relevant. For questions on this process, please contact Helen Hall at helen.hall@undp.org, the Chief of Account, Office of Financial Resources Management, Bureau for Management Services.

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.

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.

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