Step

Develop Procurement Risk Assessment (PRA), based on project concept note

Keep as a risk log to be regularly monitored and updated

Responsible Party

Head of Programme and Operations Manager

Template/Guideline

Explanatory Notes

Ensure both Programme and Operations are aware of procurement challenges 
The form of the PRA should be appropriate to the scale and nature of the project. 
Assessment questions include, among others: 

Do we know how to procure what the project needs for its successful delivery?
Is there a clear understanding of the procurement process and the particular need of this project?
Do we have the capacity (resources and ability) to procure what the project needs for its successful delivery?
What key risks can we identify from our answers to the previous questions?
What steps must we take to minimize the likelihood of the identified risks occurring and/or to minimize the damage caused should the identified risks occur?

Step

Approve a procurement plan

Responsible Party

Template/Guideline

Explanatory Notes

Procurement plans are required for “standard or complex business needs”, a Head of BU has to approve all procurement plans by monitoring requisite report in QUANTUM. All procurement plans (Project and Operations) are established at the activity level in projects  in Quantum. Consolidated plans can be viewed and analyzed in Quantum by running the applicable reports.  
 

Step

Categorize the project as having “Complex Business Needs”

Responsible Party

Business Unit Head

Template/Guideline

Explanatory Notes

Projects with "Complex Business Needs" are defined as being those that meet one or more of the following conditions:

1. Total project budget is above US$1 million (or their equivalent in the local currency of the programme country);
2. Procurement accounts for more than 60% of the total project budget;
3. The Business Unit's senior management considers the project to be of primary significance to its overall performance, in the current and/or subsequent years; and/or
4. The nature of the project requires procurement activities that the BU does not have prior experience in, and requires significant quantities of any of the following “high risk” categories:

i. Drugs & Pharmaceuticals

ii. Security Services

iii. Laboratory Equipment & Medical Supplies

iv. Medical kits (when specialized)

v. Contraceptives

vi. Elections Equipment

vii. Consultancy Firm Services

viii. Permanent Structures

ix. Construction Services

x. Technical Studies (when they are highly specialized and could impact downstream work).

Step

Inform PSU of project details

Responsible Party

Business Unit Head

Template/Guideline

Explanatory Notes

Projects categorized as having Complex Business Needs require more rigorous procurement planning. In some instances it may be advisable for the Business Unit to contact the Office of Pocurement (OP) to obtain necessary assistance.

Step

Provide guidance to BU

Responsible Party

Office of Procurement/Bureau for Management Services

Template/Guideline

Explanatory Notes

Step

Develop a detailed risk mitigation plan for all individual projects in this category using the Risk Assessment Matrix.

Responsible Party

Programme Manager,

Operations Manager

Template/Guideline

Explanatory Notes

In particular the matrix has been designed to highlight:
- The specific risk that has been identified;
- The consequences of that risk occurring;
- The impact that the risk would have on the performance of the BU;
- The likelihood of the risk occurring; 
- The sensitivity of the project to the risk; and
- Proposed solutions for mitigating the likelihood of the risk occurring, and/or the impact the risk would have should it occur.

Step

Ensure the implementation of mitigation plans.

Responsible Party

Business Unit Head

Template/Guideline

Explanatory Notes

Step

Prepare a Procurement Plan using corporate web-based planning tool.

Responsible Party

Programme/DRR/Operations Manager/ Head of Procurement

Template/Guideline

Explanatory Notes

In particular, Programmes should define key procurement requirements, while Operations should determine appropriate procurement methods.

Use the web-based planning tool for this step.

Step

Review Procurement Risk Matrix and Procurement Plan

Responsible Party

Business Unit Head

Template/Guideline

Explanatory Notes

Step

Based on CO needs, provide guidance to the CO

Responsible Party

Office of Procurement/Bureau for Management Services

Template/Guideline

Explanatory Notes

Step

Approve project for submission to Commitment Control (if necessary steps have been taken to comply with policy and procurement needs have been satisfactorily addressed).

Responsible Party

Head of BU

Template/Guideline

Explanatory Notes

Use Finance Module of Quantum.
Regular updates of procurement plans may be necessary when:
1. New funds for the same project are received and programmed;
2. Budget revisions have to be made; or 
3. Change or re-alignment of project activities are needed.

Step

Ensure that the BU’s “Consolidated Procurement Plan” shall be updated whenever new projects are approved, and/or when the procurement plans for already approved projects are modified.

Responsible Party

DRR/OM/Head of Procurement

Template/Guideline

Explanatory Notes

The online tool provides real time access and updates.

Step

Hold programme / operations joint meetings on a regular basis as appropriate to monitor risks by going through questions of the Procurement Risk Assessment

Responsible Party

Head of BU

Template/Guideline

Explanatory Notes

For high-risk procurement

Step

Contact the Office of Procurement for advice and guidance

Responsible Party

Head of BU

Template/Guideline

Explanatory Notes

BUs are encouraged to inform the Office of Procurement when projects are categorized as “Complex Business Needs.”

Step

Provide tailored support

Responsible Party

PSU/BMS

Template/Guideline

Explanatory Notes

Step

Review of Procurement Forecasting and Delivery for all projects categorized as “Complex Business Needs”.

Responsible Party

Head of Programme and Operations Manager

Template/Guideline

Explanatory Notes

Office of Procurement /Bureau for Management Services codify case studies to enhance knowledge management on righ-risk and/or high volume procurement.