IP PROCUREMENT GUIDELINES

For Implementing Partners of UNHCR funded Programmes

United Nations High Commissioner for Refugees

Geneva, November 2001

CONTENT

POLICY Page

1. Competitive Bidding 32. Local versus International Procurement 43. Business Opportunity 44. Quality and Delivery Time 55. Contract Award 56. Procurement Responsibilities 67. Limitation of Authority and Value Bands 78. Standard of Conduct 89. Business Ethics 810. Documentation of Procurement Actions 8

PROCEDURES Page

11. Definitions 1012. Identification of Needs 1113. Requisition 1114. Establishing a Bidders List 1215. RFQ, ITB, RFP 1216. Reception of Offers/Proposals 1417. Evaluation of Offers/Proposals and Award 1518. Ordering 1719. Transport 1920. Expediting / Contract Management 1921. Receiving, Rejection and Claims 2022. Payment 2123. Contracting for Services 22

ANNEXES (sample documents) Page

Vendor Registration Form 25Requisition 29RFQ, ITB 30Offer Form 32Tabulation of Offers 33RFP 34Evaluation of Proposals 39Purchase Order 44Service Contract 51Regret Letter 57Receiving Report 58Protest Letter 59Conditions for Purchase Orders 60Conditions for Service Contracts 63

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POLICY

In line with audit recommendations, UNHCR’s policy is to limit purchasing by ImplementingPartners (IP) to only those occasions when the IP has a clearly proven advantage, such as awarenessof local conditions or specific technical expertise. IPs that source on behalf of UNHCR must alsohandle the delivery.

The present guidelines are based on the principle that the procurement policies and procedures of apartner who is entrusted with funds donated to UNHCR to implement procurement activities, mustbe comparable with our own principles for procurement. The IP Procurement Guidelines areintended to be a source of information and guidance for all UNHCR IPs. They are compulsory forthose who have obtained pre-qualified status through a statement that those principles will beapplied in all procurement activities by the partner on behalf of UNHCR. UNHCR will issueannually a list of pre-qualified IPs for procurement and share it with the Headquarters of theconcerned agencies as well as with all UNHCR offices in the Field. For (sub)agreements involvingthe delegated procurement of goods and services, there are three distinct levels of procedure:

• Up to US$ 20,000: for agreements involving procurement of goods and services budgeted atUS$ 20,000 or less, for which no special provisions apply;

• More than US$ 20,000 and less than US$ 100,000: the IP to which delegated procurementauthority is to be given must appear on the UNHCR list of pre-qualified agencies, denoting thattheir established internal procurement procedures and accountabilities have been reviewed andfound to meet key standards;

• US$ 100,000 or more: the (sub)agreement must be approved by the applicable UNHCRCommittee on Contracts prior to signature, and the IP must appear on the UNHCR list ofagencies pre-qualified for procurement.

We recommend to the user to read the guidelines first in their entirety and thereafter use them as areference document. We also recommend the UNHCR CD-ROMs on the subjects Source andDeliver. This computer-based training is part of the wider UNHCR Supply Chain recentlydeveloped to adapt the functions Plan, Source, Deliver, Asset Management and ImplementationSupport to best commercial practices. Further assistance may be obtained from the UNHCR SupplyCenter at HQ (e-mail hqsf00@unhcr.ch).

1. Competitive Bidding

The policy objective of procurement with funds donated to UNHCR is to provide the appropriatequality and quantity of goods and services to support UNHCR operations at the time and place thatthey are needed and in the most cost-effective manner, while taking into account the followingconsiderations:

• The mandate of UNHCR and the UN;• The fairness, integrity and transparency of the process;• Non-discrimination and equal treatment of vendors; and• The award of contracts on the basis of competitive bidding.

Competitive bidding shall be employed in all procurement undertaken by the IP, to behandled by qualified staff of their Procurement Unit. Competitive bidding requires that three ormore qualified vendors be solicited for written offers/proposals when the value of the contract hasan expected value of more than US$ 500 (or equivalent). Further details, such as sealed bidding, aregiven under “Procedures”. The Country Director may make exceptions from the competitivebidding rule only in the following cases:

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(a) Prices or rates are fixed pursuant to national legislation or by regulatory bodies (may be thecase for fuel);

(b) Standardisation of supplies, equipment or spare parts render competition impracticable (e.g.toner cartridges for a particular photocopy machine);

(c) Exigencies of service do not permit the delay attendant upon issuance of a Request forQuotation (RFQ, for goods), or an Invitation to Bid (ITB, budget over US$ 20,000), or aRequest for Proposals (RFP, for services), (e.g. goods that are required immediately toprevent harm to life, health or well-being of refugees); i.e., true emergency* exists – urgentneed owing to delay by those responsible or failure to plan adequately does not qualify forwaiver;

(d) The proposed contract relates to procurement from a sole source of supply or services (e.g.sole authorised vendor);

(e) RFQ/RFP would not give satisfactory results or would not be deemed in the interest of theorganisation, as e.g., a contract is to be extended and changing the entity would not providecontinuity in the work;

It is important to strictly adhere to these procedures and keep exceptions to an absolute minimum.The Country Director or his/her delegate must approve in writing, all exceptions to the policy,which requires competitive bidding.

2. Local versus International Procurement

To support the economies of refugee-hosting countries, preference is to be given to procurement ofgoods manufactured in the area of operation and supplies or services readily available locally in thequality required at competitive prices (see Contract Award). For International Procurement,solicitation documents (RFQ, ITB, RFP) should have a wide geographical distribution, i.e. notlimited to a procurement agent or vendors domiciled in the IP’s country of headquarters.

3. Business Opportunity

The IP should maintain an up to date database of qualified vendors that meet objectively justifiableminimum requirements.

The widest possible base of potential vendors suitable for a specific contract should be invitedto bid.

Vendors requesting an opportunity to render an offer/proposal should be given the opportunity to doso, unless there is supportable evidence that the firm cannot realistically be expected to provide therequired goods/services.

* Emergency is defined as an unexpected situation that is so compelling that, if not correctedimmediately, would endanger life, property or adversely affect essential operations. The emergencyis so great that it precludes requisitioning through normal supply channels, use of normalcontracting methods and obtaining advanced approvals normally required to respond to thesituation. Examples include a sudden influx of refugees or fire or flood in a refugee camp.

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The requestor may recommend a source, but the selection of vendors to be solicited is solely aProcurement Manager responsibility. All visiting vendor representatives should be directed to theProcurement Unit.

The following should be observed when dealing with vendors and their representatives:

• Provide equal opportunity for vendors to make price and specification quotations;• Encourage vendors to test and develop improved products and services;• Keep vendors informed of current and anticipated requirements;• If, for any reason, one vendor is allowed to re-quote, all competitors should be given the same

opportunity. Re-quoting must be absolutely exceptional.

4. Quality and Delivery Time

The primary function of an IP Procurement Unit is to assure that goods and services requiredto support operations are supplied in a timely manner, of adequate quality and quantity andat the lowest cost.

The IP Procurement Unit has the responsibility to carefully review purchase requisitions concerningspecifications, allocated budget and delivery time and, when in doubt, make appropriate inquiries tothe requestor.

If local expertise is not available, the advice of the IP’s headquarters should be sought beforepurchasing special relief items such as chemicals (pesticides, fertilizers, water treatment reagents,etc.), specialized equipment (laboratory, agricultural, medical/surgical, water supply, sanitary, etc.)and services. If the relevant expertise is not available, the UNHCR Supply Center at HQ may beconsulted to examine the requirements to ensure that appropriate goods/services are purchased.

Delivery time must take into account lead time required by the Procurement Unit to prepare theRFQ, ITB or RFP documents, the ability of the market to respond, evaluation of offers/proposals,production time, transport time and delivery to final destination.If Emergency (see Competitive Bidding, (c)) is invoked, a written explicative “EmergencyStatement” must accompany the Requisition.

5. Contract Award

The Purchase Order or Service Contract shall be awarded to the qualified bidder whose bid isevaluated to be the lowest offer/proposal meeting the requirements. In other words, any criteriaspecified in the solicitation documents, such as quality, delivery time, payment terms andcompatibility with existing equipment, may be used to evaluate the offers/proposals.

UNHCR procurement policy gives due consideration to the procurement of goods and services inthe area of operation to support the economy of refugee-hosting countries. In practice, thistranslates into a 15% price bonus for locally manufactured goods as compared to the customscleared cost of international procurement and to service providers whose head office is registered inthe country. A comparative analysis of local and international procurement of assets (seeDefinitions) and large purchases must be documented.

Offers for Service Contracts should be evaluated in the first instance against the substance of theproposal. In other words, how close does the offer match the specified requirements? The financialoffer is evaluated subsequently and the score of this part is then combined with the technical scoreto reach a total score (see Annex, Evaluation of Proposals). For this reason, the companies offering

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services should be requested to submit their proposals in two separate envelopes, the first to containthe general and technical proposal and the second the financial proposal. Proposals for servicecontracts are evaluated in accordance with technical criteria established by the technical evaluationcommittee and chaired by the requestor, and commercial/cost criteria evaluated by the buyer. Thebuyer, considering input from the requestor establishes the respective weights for technical and costcriteria. A 70:30 technical versus cost ratio is a common weighting for normal service contracts.

Pre-award surveys are recommended prior to the first award to a new vendor for a contract of highvalue, high priority or complex goods/services. Among the topics to be surveyed should be thevendor’s credit rating, affiliations, familiarity with the technical requirements, facilities, experience,references, capacity, production equipment, type of personnel, etc.

6. Procurement Responsibilities

It is necessary to protect the IP and UNHCR by formulating clearly defined procedures to authorizeRequisitions, obtain offers/proposals, authorize invoices, make expenditures and dispose of assets.

The Implementing Partner’s named Country Director has the ultimate authority andresponsibility for the procurement of goods and services necessary to support operations .

The Country Director will assure that coherent purchasing functions are established and maintainedin the country office. This will usually take the form of a Procurement Unit. The Country Directorthen delegates, as he/she finds appropriate, the responsibility for the various elements of this task tomembers of his staff according to their qualification.

Since purchasing requirements vary considerably depending upon the task of the country office, it isunderstandable that Procurement Units will vary in size and composition. However, certain basicfunctions must always be fulfilled no matter what shape the procurement operations take, and it isup to the Country Director to establish a formal structure that is relevant to the needs of the countryoffice. The basic functions are: Procurement Manager (officer/supervisor reporting to the CountryDirector) and Buyer.

It is the Country Director’s responsibility to ensure that proper controls for monitoring and revieware in place. It is also the responsibility of the Country Director to assure that a local ProcurementManual exists, which provides detailed guidance to procurement staff for the effective operation andmake sure that there is no conflict with the basic policies and procedures in these IPPROCUREMENT GUIDELINES.

IP Procurement Unit shall:• Provide a service to other units by acting as the principal contact between vendors and the

country office. It serves as the exclusive channel through which all requests regarding pricesand products are handled, as well as correspondence with vendors concerning prices andquotations.

• Be responsible for making final determination of supply source, price and delivery schedule,in conjunction with other units when appropriate. Only authorized Procurement Unit staffshould undertake negotiations with vendors. Only the Country Director and staff formallydelegated by the Country Director are authorized to make commitments for the purchase ofgoods and services.

• Be responsible for developing a sufficiently wide range of sources to provide adequatecompetitive bids.

• Make sure that adequate measures have been taken to safeguard the vendor confidentiality.• Ensure that all follow-up activities after the issuance of a contract are maintained.• Keep the Country Director informed about economic and market conditions.

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• Ensure that IP employees involved in procurement are complying in all respects with lawsthat apply to their purchasing activities and strictly adhere to the Standard of Conduct andBusiness Ethics laid down in this document.

It is the employee’s responsibility to consult with a superior if policies and procedures are notcompletely clear, or if there may be difficulties fulfilling the requirements of any policy orprocedure.

7. Limitation of Authority and Value Bands

The Country Director will design the authorization level accorded to individual IP staff. Thereshould be two Authorization Schedules pertinent to procurement:

• The first schedule authorizes specified officers to make purchase commitment for the purposeof procuring goods and services;

• The second schedule authorizes specified officers to make, or approve cash or bankdisbursements.

In order to safeguard “checks and balances”, an IP employee will only be authorized in one of thetwo schedules, i.e. commitment or disbursement. The IP Authorization Schedule defines themonetary level of authorization delegated by the IP to named IP staff members. This schedulecovers all expenditure. The schedule may not be circumvented in any way. Purchases or paymentsmay not be split or delayed in order to avoid obtaining the correct level of approval.

Standard Authorization Schedule

Authorized staff(title + name)

Value US$(or equivalent)

Purchasecommitments

Disbursementapproval

Sample signatures

GH

Up to US$ 500 Yes/No Yes/No

EF

Up to US$ 5,000 Yes/No Yes/No

CD

Up to US$ 20,000 Yes/No Yes/No

AB

Over US$ 20,000 Yes/No Yes/No

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8. Standard of Conduct

Dealing with outside firms engaged in the selling of goods and services is an activity that ispotentially vulnerable to fraud. All IP employees with designated procurement authority shouldtherefore understand and observe the following Code of Conduct:

• Business will be conducted ethically (see Business Ethics) in a manner above reproach and withtotal impartiality, and preferential treatment for none;

• Maintaining the integrity and confidentiality of the procurement process is of paramountimportance.

IP employees must beware of what constitutes conflict of interests :

• Staff conduct should not foster any suspicion of conflict between professional duty and personalinterest;

• Nobody will solicit or accept, directly or indirectly, any gift, favor, entertainment, loan oranything of monetary value from vendors or potential vendors. The only exception to this rule isinexpensive public relation gifts, valued at less than US$ 20, such as business diaries, calendarsor pens;

• Bids shall not be solicited from, nor contract awarded to, any company that is owned, controlledor actively influenced by any IP employee or an immediate relative to that employee;

• If a vendor participates in developing or drafting specifications, these must be kept as generic aspossible so as to avoid unfair advantage of the vendor who assisted in their preparation.

9. Business Ethics

• Promote fair, ethical and legal trade practices;• Accord prompt and courteous reception in an atmosphere of good faith and equal treatment,

devoid of intentional misrepresentation;• Treat all information received from vendors in the strictest confidence. Guarantee the

confidentiality of all specifications and price quotations received;• Decline to take advantage of vendor’s errors but show cooperation;• Avoid causing needless expenses or inconvenience when requesting offers/proposals;• Declare “for information purposes only” if the request will not result in the award of a contract;• Remain absolutely free from any obligations to any vendor;• Make every reasonable effort to negotiate an equitable and mutually agreeable settlement of any

controversy with a vendor.

If, exceptionally , negotiations are conducted with more than one prospective vendor, suchnegotiations must refrain from any price auction or technical leveling (bringing proposals up to thelevel of the best offer/proposal).

10. Documentation of Procurement Actions

All procurement activities must be fully and transparently documented. This is the only means thatthe IP has of managing its procurement process and demonstrating to UNHCR that funds are beingresponsibly committed. A completed purchase must be supported with a fully cross-referenced“stand alone” file. Documentation must be completed fully and accurately in every case. Well-designed procurement forms will basically mirror each step of the procurement process and, ifemployed correctly, they will allow effective management of procurement activities.

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In order to process payment to a vendor for goods, the Finance Unit requires an original invoice, theoriginal Receiving Report (if DDU delivery), or hand-over documents to the freight forwarder,Third Party Inspection Report, if applicable, and a copy of the Purchase Order. For payment againsta Service Contract, a copy of the contract is required together with the original invoice approved bythe requestor, and the Evaluation for the last payment.

A typical “stand alone” procurement file would contain the following, in this order, and separatedby dividers for easy reference:

• Requisition;• Company names and contact persons for vendors solicited;• Copy of the RFQ, ITB or RFP;• Original offers/proposals from responsive vendors, including all related correspondence;• Evaluation of offers/proposals or approved waiver, justification for vendor selection and award

price;• Justification for lack of competition when less than 3 bids were received;• Copy of the Purchase Order or Service Contract including orders for inspection and insurance,

if applicable;• Expediting documents;• Customs clearance documents (if international procurement);• Copy of the Receiving Report;• Copy of the vendor invoice;• Other documents and correspondence related to the contract.

The Procurement Manager must document any anomalies or deviations from policy or procedures ina purchase with a signed explanatory “note to the file”. Full supporting documentation will answerany question that an auditor or external examiner may raise.

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PROCEDURES

This Section is not intended to replace the IP’s internal Procedures Manual. It is rather a recollectionof some points to which UNHCR wishes the IP to pay special attention and, if required, integrateinto their procedures.

11. Definitions

Advance payment: Should normally not be used altogether. If absolutely unavoidable, only theProcurement Manager may approve advance payments for amounts not exceeding the lower of 50per cent of the full contract amount or US$ 10,000. He/she is also responsible for ensuring thatadvance payments are only authorised:

• Where the advance payment is fully justified; and

• Where the advance payment does not present a financial risk to the IP.

Expendable Property: Items with an original purchase cost of less than US$ 1,500 per unit(excluding freight and insurance charges) or which have a life expectancy of less than five years,with the exception for Special Items (non-expendable).

Assets (non-expendable property): Items with an original cost of US$ 1,500 or more per unit(excluding freight and insurance charges) and also have a life expectancy of at least five years.Special Items, exceptionally considered as non-expendable, are vehicles (except bicycles), computerequipment, road making & agricultural equipment, boats, telecom equipment and securityequipment.

Requisition: Standardised forms containing detailed specifications, which are completed by therequestor and duly authorised, in order to initiate the procurement process by the Procurement Unit.

INCOTERMS: The trade terms used internationally to specify the obligations for delivering goodsin international contracts (i.e. FOB, CIF, etc.). These trade terms are regularly updated and issuedby the International Chamber of Commerce, Paris (ISBN 92-842-0087-3).

Procurement Manager: The officer/supervisor appointed by the Country Director as responsiblefor the IP Procurement Unit.

Procurement: Process which includes definition of requirements, sourcing, evaluation ofoffers/proposals, contract award, inspection, delivery, installation and commissioning.

Local procurement: Procurement of goods or services in the country where an office orprogramme is located or in a neighbouring country, in particular if the office/programme is locatedclose to an international border.

Requestor: The IP unit or staff member submitting a request for goods or services to be procured;

Vendor: A provider of goods or services.

Request for Quotation (RFQ): A solicitation document that describes the requirementsquantitatively and qualitatively and requests prices and commercial terms from vendors, for goodsthat meet neutral specifications and are usually readily available on the market.

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Invitation to Bid (ITB): A solicitation document in which the requirements for formal competitivebidding are specified for contracts with a budget over US$ 20,000.

Request for Proposals (RFP): A solicitation document designed to obtain proposals for services tosatisfy a requirement that cannot be described in a complete or definitive manner. An RFP leads tothe selection of the proposal that offers the best value in accordance with the pre-defined evaluationcriteria. Where appropriate, the RFP will indicate that negotiation may be undertaken in respect ofthe preferred proposal.

Contract: A deliberate agreement between two or more competent persons/parties to perform or notto perform a specific act or acts. A Purchase Order when accepted by the vendor becomes acontract.

Purchase Order: A contract for the procurement of goods.

Service Contract: A contract for the delivery of services.

12. Identifications of Needs

Planning of requirements by the requestor must be at the forefront of all purchases. Most supplyrequirements are anticipated and result from the annual budget and business planning process.

If exceptional circumstances prevent planning and early notification of the requirement, it is stillrequired that purchasing processes and procedures are followed. If this is not possible because ofurgency, approval should be sought from the Country Director and the reasons and circumstancesfor the urgency fully documented.

Before initiating any procurement, it should be a standard measure to check if the goods, and inparticular assets, are available from other sources than procurement (e.g. redeployment).

No procurement activity will be carried out without a fully completed and authorised Requisition.The buyer should provide planning support i.e. he/she supports and advises the requestor incompleting the Requisition and gives appropriate input as regards to:

• Quality;

• Delivery expectations;

• Detailed specifications;• Policy and procedures;

13. Requisition

A formal written Requisition must be made by an authorized requestor (i.e. a person or unit withauthority over a budget) to the Procurement Unit in order to initiate the procurement process. TheRequisition should be submitted on a standard Requisition form (see Annex) that has been preparedby the IP to include space for all relevant information.

The most fundamental review that the Procurement Unit makes of a Requisition, before proceedingwith any procurement is to make certain that proper approval has been obtained. Note that

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Procurement Unit staff is not authorized to alter specifications, quantity or other details of aRequisition unless changes have been discussed with the requestor and given appropriate approval.

The completed Requisition, along with the subsequent offers or proposals from vendors andevaluation done by the Procurement Unit serve to support the creation of a formal Purchase Orderor Service Contract and eventual payment to a vendor.

14. Establishing a Bidders List

Good practice is to secure that more than three (3) offers/proposals are received, in particular whereany of the following factors apply:

• There are many potential vendors;• Some companies may decline from bidding;

• New vendors are entering the marketplace.

Potential vendors should be requested to fill in a Vendor Registration form (see Annex). Followingits evaluation by the Procurement Manager, the vendor may be added to the IP’s active vendordatabase. A good vendor database will contain, apart from goods and services supplied:

• Full name and addresses;• Product information and data sheets;• Supply information (quality, delivery times, payment terms and warranties);• After sales services;• Packing and shipping facilities;• Management data and historical data;• References;• Result in previous bidding and comments on past performance.

From this database of qualified vendors, identify and select eligible companies:

• Vendor who delivered against the last contract;

• Competitive vendors from last RFQ, ITB, RFP;

• Newly identified vendors.

There is little point in adding names to a bidding list to make up the numbers or to find that severalof the bidders pull out of the bidding because they are unable to supply. It is neither helpful toinvite, on a regular basis, those prospective vendors who are unlikely to win a contract at present.

15. RFQ, ITB, RFP

The solicitation documents should furnish all information necessary for a prospective vendor toprepare an offer/proposal and should explain the main criteria for their evaluation. The rights of theIP regarding the acceptance or rejection of offers/proposals should also be stated.

Matters to be considered for inclusion:

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I General (Goods and Services)

Form of submission: Request for Quotation (RFQ), Invitation to Bid (ITB), or Request for Proposal(RFP). An ITB should be used for contracts over US$ 20,000. The ITB is a formal procedure andshould always stipulate that offers/proposals must be submitted in sealed envelopes. For highlycomplex and specialized contracts, bidders may be asked to submit a financial proposal and atechnical proposal in separate sealed envelopes. Sealed envelopes should be marked "not to beopened before (closing date/time)" and should bear the references requested by the IP on the outsideenvelope for identification purposes. If the Country Director can ascertain complete confidentialityfor the receipt of offers by fax (e.g. on a fax machine to which the Procurement Unit has no physicalaccess); the receipt of offers/proposals in this way may be considered.

Closing date/time: The response time allowed for offers/proposals is based on the complexity of thegoods or services required. In practice, vendors are generally given 10 days to 2 weeks to respond toa RFQ, ITB, or RFP. In cases of emergency, vendors may be required to respond in as little as 24hours.

Validity of offers/proposals: must be sufficient for the Procurement Unit to complete thecomparison and evaluation of offers/proposals, to clarify particular aspects of the proposed contract,to obtain all necessary approvals, to award the contract and to receive back the countersignedcontract from the vendor;

Any specific conditions should be shown separately under the heading "special conditions ofcontract" (e.g. the currency in which offers are to be made);

Conditions for Purchase Orders or Service Contracts (see Annexes). In general, the party in acontract relationship submitting the first draft of a proposed agreement has a definite advantage. Itis therefore important to secure that the vendor accepts the IP’s general terms and conditions.

Number of copies of the offer/proposal that are required;

Performance security: A performance bond should be considered for high value contracts andcritical projects. Such a performance bond should be provided by the vendor on or before theeffective date of contract.

II Goods

An Offer Form can be used, giving technical specifications and delivery conditions (see Annex);

A warranty from the vendor for items which by their nature and price should normally beguaranteed against deficiencies;

For the purpose of evaluation and comparison of offers, bidders should be requested to quote on thebasis of identical trade terms. Bidders are required to state the following:

• EXW unit prices (Ex Works),• EXW total price, including cost for packing and loading;

and, as applicable, price increment for delivery according to INCOTERMS, e.g.:• FCA to named place of departure (Free Carrier in);• CIP to named place of port of entry (Carriage and Insurance Paid to);• DDU to named place of destination (Delivered Duty Unpaid).

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The cost of the following services, if required, should be quoted separately from the cost of thegoods:

• Freight and other expenditures related to inland transportation and delivery by the vendor in thecountry of destination;

• Installation and commissioning;• Training;• Maintenance and repair;• Detailed operations and maintenance manuals, etc.

If the IP has exempt status in the country, no sales tax, customs duties and other import taxes leviedin connection with an importation of goods, should be included in the offer. The bidder shouldspecify that the prices quoted are free of customs duty and other taxes.

Local purchases should normally be payable in local currency.

III Services (see also Contracting for Services)

The main criteria for the evaluation of proposals (to be stated in the RFP documents);

All necessary background information, such as extracts from the implementing instrument;

A detailed description of the services to be provided (TOR = Terms of Reference), including animplementation schedule;

The payment schedule ;

A request for customer references;

A request for staff references, if applicable.

Solicitation documents should be sent simultaneously to all potential bidders to ensure equaltreatment.

Any potential bidder requiring additional information should make a written request either by letter,e-mail or by fax. The reply should likewise be in writing and a copy of the reply should be sentsimultaneously to all other potential bidders. Should a meeting with potential bidders provenecessary to provide the additional information, a record of the meeting should be preparedimmediately and provided simultaneously without delay to the requesting potential bidder and to allother potential bidders. Prompt action must be taken in order not to compromise the deadline for thesubmission of bids.

An extension of the closing date/time could be granted if justified by exceptional circumstances andso requested in writing by more than one bidder. When an extension is granted, all bidders shall beinformed immediately and simultaneously. A bid opening may only take place after the newdeadline for the submission of bids.

16. Reception of Offers/Proposals

Offers/proposals should be immediately sent/brought to the person designated to receive them forrecording and safekeeping. Under no circumstances will an offer/proposal be opened, reviewed orexamined, nor will it be marked or defaced in any way, prior to official opening.

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Offers/proposals should be received at the designated place and time. If received after the deadlinesthey should not be considered. All late offers/proposals will be placed in the file with a copy of theletter to the vendor informing that it was late, could not be considered and requesting a timelysubmission in the future.Offers/proposals required to be submitted in sealed envelopes but which are submitted in unsealedenvelopes are also not to be considered.

The following arrangements should be made for the opening of offers/proposals :

• Sealed bidding (contracts exceeding US$ 20,000): offers/proposals shall be opened (ordisclosed, if received by fax as described under RFQ, ITB, RFP, Form of submission) by atleast two IP officials, who shall prepare and sign a record of the bid opening, including at leastthe date and hour when it was held, the persons present and their initials, the number ofoffers/proposals received, and the names of the bidders.

• An official unconnected to the procurement function should participate in the bid opening forcontracts exceeding US$ 20,000.

Those who open the offers/proposals should ascertain whether they:

• Meet the requirements for valid receipt specified in the solicitation documents;

• Have been properly signed.

No bidder should be requested or permitted to alter the offer/proposal after the closing. Any biddermay however be requested to clarify an aspect of an offer/proposal, but no change in the substanceor price of the offer/proposal shall be sought, offered or permitted.

Prior to award, no information may be revealed concerning offers/proposals such as relativestanding, names of bidders, etc. After award, the name of the successful bidder may be given. Underno circumstances, however, will any bidder’s confidential information be disclosed to anothervendor.

17. Evaluation of Offers/Proposals and Award

All information pertaining to offers/proposals must be treated as highly confidential and must notunder any circumstances be disclosed to other bidders or to officials not directly concerned with theevaluation process.

The purpose of evaluation and comparison of offers/proposals is to determine which vendor has thelowest price for acceptable specifications. In determining whether an offer/proposal is acceptable,non-price factors are taken into account. The lowest acceptable offer/proposal should be selected.

In the event of a calculation error in an offer/proposal, the unit price will prevail. If it is clearbeyond doubt that a mistake has been made, the Procurement Manager may permit the bidder towithdraw, but not alter, the offer/proposal.

The factors, in addition to price, to be considered in an evaluation for the purpose of determining thebest acceptable offer/proposal as specified in the RFQ, ITB, RFP, shall include where applicable:

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• Compliance with technical specifications, relevant international standards and technical norms;

• Compatibility with existing equipment and standardisation plans;• Compliance with required time schedules;

• Delivery times;

• Payment terms;

• Guarantees, availability of spare parts, after-sales services and training;• Life-cycle aspects covering maintenance and operating costs;

• Capability, capacity, financial standing, past experience and performance of the vendor and itslocal representative.

If delivery time is a main factor for award, a liquidated damages clause (see Annex, Conditions forPurchase Order, Conditions for Service Contracts) will be made part of the contract.

Be careful to thoroughly review each bidder’s offer/proposal in order to detect any problem at anearly stage.

Depending on whether it is local or international procurement, the evaluation and comparison ofoffers/proposals shall be made on the basis of Delivered Duty Unpaid (DDU) or Carriage andInsurance Paid (CIP) prices to the port of entry, unless otherwise stipulated. If offers/proposals arein a currency other than local currency, they shall be converted at the prevailing UN rate ofexchange.

Offers/proposals for complex goods/services will be submitted to the requestor for technicalevaluation in accordance with the award criteria listed in the solicitation documents; however, allpricing information should be removed from the offers/proposals prior to the technical evaluation.

When considering an award of a high-value contract to a vendor, with whom the IP has little or noprevious experience, a firm specialised in pre-award surveys may be engaged under the contractbudget to obtain information regarding the capability, capacity and financial standing of the vendorunder consideration.

The evaluation team should prepare and sign a detailed Evaluation Score Sheet and EvaluationReport (see Annex, Evaluation of Proposals) or minute on the evaluation and comparison ofproposals for services. It should include all supporting documents and a written statement of allrelevant factors leading to the final recommendation for the award of the contract. If the lowestpriced proposal is not recommended, the evaluation report must give the specific reasons forrecommending the selection of a higher proposal.

If the award was preceded by negotiation, this must be documented in the order file by a negotiationmemorandum, specifying the contract negotiation objectives (price, delivery, quality, etc.).

An evaluation report is usually not required for single purchases of “off-the-shelf” goods followinga Request for Quotation. The Tabulation of Offers and the supporting documents form the basis forthe award of the contract. The Tabulation of Offers should be signed by the buyer and approved bythe Procurement Manager.

The following documents form the basis for awarding the contract:

• Requisition;

• RFQ, ITB or RFP;

• Record of the opening of the offers/proposals;16

• Evaluation report (for services);

• Tabulation of Offers (for goods);• Offers/proposals (all in original) received.

Extension of validityThe evaluation and award of the contract should be completed promptly within the period of thevalidity of offers/proposals as stipulated in the solicitation documents. If justified by exceptionalcircumstances, an extension of validity should be requested in writing from all bidders before theexpiration date. When an extension of the validity period is requested, bidders should not be askedor permitted to change the price or other conditions of their offer/proposal. Bidders have the right torefuse to grant such an extension. Any bidder not granting an extension automatically declineshis/her further participation in the concerned bidding process.

Rejection of offers/proposalsThe Conditions for Purchase Orders or for Service Contracts, submitted with each RFQ, ITB orRFP, contains a statement concerning the IP’s right to accept or reject any offer/proposal prior to theaward of contract and to annul the bidding process and reject all offers at any time. Where theinterest of the Organisation so requires, all offers/proposals may be rejected and new ones solicitedbased on the same or revised specifications. Such action should not be taken for the sole purpose ofobtaining lower prices. Rejection of all offers/proposals is justified when an insufficient number ofsubstantially responsive offers/proposals is received or when there is a lack of effective competition.

For audit purposes, all documents must be kept for a period of five years. Documents should befiled by contract number.

18. Ordering

Purchase Orders should be utilized whenever possible to establish contractual obligations. The basicdata in a Purchase Order or Service Contract are:

• Contract number and date;

• Page number and number of pages (1/3);

• Vendor’s address, contact person and phone number;• Vendor reference number;

• Consignee and, if different, delivery address;

• Trade terms (INCOTERMS);

• Mode of shipment and transshipment point (via);• Delivery date (never “ASAP”);

• Cash terms (prompt payment discounts);

• Item number(s);

• Complete description of goods or services;

• Quantity, unit of measure, unit price and total for each item;• Total order value;

• IP buyer name/code and phone number;

• Authorized signature.

17

Purchase Orders and Service Contracts should be issued according to a numerical sequence ofreference numbers. A record of these documents should be maintained. This record should contain,as a minimum:

• Contract number, in sequence, and date;

• Vendor’s name;

• Short item description;• Total order value;

• Requisition reference;

• Buyer reference.

The INCOTERMS give a uniform set of guidelines for the interpretation of buyer and vendorobligations under three main headings:

• Place of delivery;

• The division of costs;• The point at which the insurance risks pass from the vendor to the buyer.

The INCOTERMS also identify which party is responsible for export documentation under eachterm. By stating the INCOTERMS under which the Purchase Order is issued, the vendor and the IPknow the rules governing the delivery. The Procurement staff must however be fully conversantwith the meaning and ramifications of the quoted terms.

Inspection of consignments at various stages in the supply process assures quality and quantitycontrol of the goods provided. To minimize problems encountered on delivery, consider the needfor inspection services by a neutral inspection company for each contract. The services of aninspector may range from a general pre-shipment inspection to inspection during all stages ofproduction and laboratory analysis.

Insurance coverage should be considered at least for high value or otherwise critical contracts.Certain INCOTERMS make transport insurance a part of the vendor’s responsibility (e.g. DDU,CIF). Transport insurance can usually also be obtained separately through a freight forwarder.

The Conditions for Purchase Orders or Conditions for Service Contracts respectively (see Annexes)will be incorporated in all contracts. Any deviation from these must be approved by theProcurement Manager and referenced in the contract.

If progress payment is requested by the vendor and has been negotiated, it will be specified in thecontract.

Change (including cancellation) of an outstanding contract must be made in writing to theProcurement Manager, who will consult with the requestor and the vendor. Under no circumstanceswill the requestor contact the vendor directly. If change is approved, a new contract has to be issuedwith the words “Change Order” written on the top of the page. A description of the changes shouldbe written into the body of the contract.

Please also refer to the chapter Contracting for Services.

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19. Transport

Attention is drawn to the complexity and pitfalls of transportation and transport documents, and theIP is strongly recommended to formulate local Policies and Procedures for both domestic andinternational transport.

Even though most IP country agreements with host governments provide for exemption from duties,taxes and levies on purchased items, it does not always follow that this exempt status is automatic.The Procurement Unit has to advise vendors at the time a Purchase Order or Service Contract isissued of the IP status and prepare for these exemptions to take effect and assure that goods move inan expeditious manner from the vendor to final destination through conscientious follow-upprocedures.

In the selection and contracting of freight forwarders, it should be remembered that all carriers andtheir agents conduct their business under limited liability and under agreed conventions. The onlyoccasion when carriers or agents liability becomes unlimited is when total negligence on their partcan be proven.

For international procurement, the appointed freight forwarder shall be instructed to send thefollowing documents to the consignee:

• Advance shipping advice by fax or e-mail;• Waybill (original and one copy);

• Commercial invoice (copy);

• Packing list;

• Third party inspection certificate (if applicable);

• Insurance certificate (if applicable);• Certificate of origin (if required);

• Others (if required) (e.g. radiation certificate, certificate of analysis).

20. Expediting / Contract Management

The staff responsible for tracking the expedition of Purchase Orders and/or the management ofService Contracts should review all active files on at least a weekly basis, or as frequently asrequired. Expediting is most efficiently done in advance of delivery rather than chasing lateconsignments. Maintain a shipment expected/arrivals record to track orders and shipments and keepthe final destination informed of progress. Monitor each stage (ship’s arrival, discharge, storage,customs clearance, and loading/transport to final destination). Reasonable requests for support andassistance from vendors to enable them to meet their contractual obligations should be consideredsympathetically.

The Procurement Unit oversees the actual delivery of services only for those service contractsrelating to its own function as it is understood that only the requestor is in a position to effectivelymonitor the progress of services he/she requested.

Visits to or from the vendor to monitor ongoing performance of Purchase Orders and ServiceContracts may be appropriate, using performance evaluation forms and quality control checklists.The evaluation and appraisal of vendor performance should be carried out on a continuous basis.The evaluator should document any findings/reviews/inspections and ensure that one copy is

19

included in the file and another copy in the vendor database. The information is required for thefollowing purposes:

• To assist in the resolution of any dispute arising from contracts;

• To feedback into the vendor selection system and pre-qualification of vendors;

• To provide a baseline for vendor development programmes.

The following procedures should be observed:

• Examine the delivery status of all contracts which have been confirmed with vendors andwhich, according to the files, have not yet been received or executed by the stated delivery date;

• For those contracts singled out by this review, check with the requestor for eventual receipt. Ifnot received, check whether the goods or the services are still required;

• If the requestor still needs the delayed goods/services, then contact the vendor for a realisticdelivery date and follow up on prompt expedition;

• If the vendor states that the goods (and documents) have been shipped or the services delivered,then 1) obtain the shipping date and shipping information; 2) ask the vendor to investigate andadvise current status; and 3) trace the consignment through receiving agents; 4) in case ofservices, obtain proof of their satisfactory delivery.

21. Receiving, Rejection and Claim

As soon as goods or services are received, they should be promptly and carefully examined toensure that they fully conform to the contract.

For each Purchase Order (local or international) a Receiving Report (see Annex) should becompleted and the authorised official should sign and date the report, stating whether the goodshave been received in full and in good order or otherwise. The original Receiving Report is the basisdocument to initiate payment to local vendors. (International vendors have usually to be paid upondelivery to the forwarder in the exporting country in accordance with INCOTERMS). A copy of theReceiving Report is required on the file for follow-up action and closure.

In case of any problem detected upon delivery such as loss, damage, wrong quality or quantity, thebasic policy is not to accept any non-conforming goods or services and to immediately inform thevendor. However, it is important to know the legal status of the goods or services in order to takethe appropriate action. This depends on whether the ownership is already with the consignee or stillwith the vendor.

The following actions have to be taken for all non-conforming deliveries irrespective of theownership:

• Note reason for objection

• For goods: on the transport document i.e. the waybill as well as on the Receiving Report;• For services: on the hand-over document.

• Inform the vendor immediately;

In addition, for contracts where the vendor has full responsibility until delivery is accepted by theconsignee (e.g. DDU), review the following options:

• Reject delivery or part of it;• Request replacement, re-performance or repair free of charge;

20

• Contract again with the second-in-line vendor of the bidding process and collect excess costsfrom the defaulting vendor;

• Terminate the contract.

If a contract is terminated, particular care must be taken toward maintaining a satisfactoryrelationship between the vendor and the IP during and after the termination.

For contracts on basis of other terms provided they are covered by insurance:

• Initiate claims action (carrier, vendor, insurance);

• If a carrier is suspected to be at fault, send a Protest Letter to the last carrier (see Annex, copyimperative for a later insurance claim);

• If the expected loss/damage exceeds US$ 1,000, obtain a Shortlanding Certificate and/orarrange for an independent Survey Report, required for a later insurance claim;

Only in exceptional cases should consideration be given to the following options:

• Allow contract performance after obtaining adequate consideration and approval from therequestor;

• Agree to an equitable adjustment and issue a Change Order.

It sometimes becomes necessary to return goods. A memo to the Procurement Unit for action shouldbe prepared, identifying each item with reference to the original contract. The Procurement Unitwill then negotiate the return of the goods with the vendor. The options available are:

• The vendor furnishes a suitable replacement at no charge, arranges pick-up, handling andfreight costs;

• The goods are returned to the vendor for full credit with freight collect (or at cost);

• The goods are returned to the vendor with his/her consent (except DDU delivery) for full creditless replenishment charge and freight;

• The goods are scrapped with the approval of the vendor and/or the insurance company.

22. Payment

It is important that the IP achieve a high level of trustworthiness in this area of vendor relations,since prompt payment according to contract terms is perhaps the most critical aspect of theserelationships.

Invoices from vendors will be examined, verified and certified by the Finance Unit (distinct fromthe buyer). Such examination will include supplementary documentation covering:

• Unit and total prices;

• Quantities specified in the contract;

• Previous payments;• Deductions;

• Signed Receiving or Hand-over Report;

• Other obligation specified in the contract (installation, training, etc.);

21

Examination and verification of invoices will be performed expeditiously in order to assure timelypayment within the period agreed. Any deficiencies or discrepancies will be referred to the buyer. Ifprogress payment was agreed upon in the contract, progress has to be certified by the requestor ofthe goods or services.

The Finance Unit prepares and certifies the invoice for submission to the Accounts Payable Unit.Only the amount stated on this certificate, exclusive of discounts, will be paid. Cash discounts takenor lost will be reported accordingly. Lost discounts should be justified in writing and the note addedto the file.

Several payment options exist depending upon the agreement reached between the IP and vendors.Whatever the conditions, they should always be clearly detailed in the contract. The principaloptions are:

• Bank transfer directly from the IP’s account by which the IP also has control throughout thepayment process. Transfers are accomplished by forwarding a letter to the bank, which shouldinclude the name and number of the account to be debited, amount and currency of transfer,purpose of transfer (contract reference, invoice number), bank name and address, beneficiaryname in full, beneficiary account number and authorization signatories.

• Check drawn from the IP’s account and handed over directly to the vendor.

• Letter of Credit (L/C) should normally not be accepted since it is costly and time-consuming.

23. Contracting for Services

Contracting for services requires clear terms of reference and active oversight by the requestorfollowing the award of contract.

Terms of Reference (TOR) are prepared by the requestor and should succinctly and clearly state thenature, timeliness, and measures of performance required of the contractor. TOR may includestandards for accomplishing work. The Procurement Unit can assist with clarifying the TOR butresponsibility for preparation rests with the requestor.

An estimate of the cost for the services to be acquired should be prepared by the requestor. Sourcesfor the estimate include amount paid for previous contracts under competitive conditions, andmarket surveys. A realistic, reasonable estimate provides a baseline to permit analysis of proposedprices and determination of reasonableness.

The Procurement Unit should maintain records of solicitation documents, all original proposals,selection documents, evaluation reports, an original copy of the contract and proof of financialclearance and availability of funds to enter into the contract.

Signature of Service Contracts. The contract should be signed by the IP and the contractor. It isusual practice that the contractor signs the contract first. The number of signed contract originals aredetermined by the IP policy, however, a minimum of two originals must be prepared, one for thecontractor and one for the IP. Copies of the contract should be provided to the requestor and to theFinance Unit. Distribution of additional copies of the contract should be made in accordance with IPinternal procedures.

22

Modifications to Service Contracts should arise only when unexpected or emergency situationsoccur. This is one reason for well defined and clearly written TOR. Funds must be certified as beingavailable prior to modifying a contract that increases its amount.

Active oversight, or contract management, ensures contractor performance is monitored and anyshortcomings promptly brought to the attention of the contractor for correction and adherence to thecontract TOR. Active oversight also ensures timely processing of contractor invoices.

Payment is made upon completion and acceptance of work. The contractor submits invoice, andpayment is made in accordance with IP processing policy.

• Advance payments are normally not made. The IP should have established criteria for situationswhen advance payments may be considered. Advance payments should only be made forexceptional reasons and these should be reviewed with the UNHCR official responsible formonitoring the IP agreement.

• Progress payment is designed for contracts lasting longer than 2 to 3 months and for serviceswith discrete or regular progress intervals, for example:

• Monthly payments for an annual maintenance or other service contract. The paymentschedule should be reflected in the contract;

• Study or report lasting several months to a year. Payment can be based on stepsaccomplished to achieve the final report or study. Milestones should be realistic andreasonable.

Detailed procedural steps for Service Contracts are covered in the respective chapters of these IPPROCUREMENT GUIDELINES.

UNHCR has also prepared an internal Practical Guide to the Procurement of Services for use by itsown staff. It contains additional information that reflects United Nations Financial Rules andUNHCR policies on competition and soliciting for Service Contracts. A copy of this guide may beobtained from the Contracts Unit, Supply and Transport Section, UNHCR, MBT2MON, CasePostale 2500, CH-1211 Geneva, 2 Depot, Switzerland.

23

ANNEXES

All annexes represent sample documents. They may be adjusted to the specific requirements of thecircumstances.

24

VENDOR REGISTRATION FORM

Section 1: Company Details and General Information

1. Name of Company:

2. Street Address: 3. P.O. Box and Mailing Address:

Postal Code: City:

Country:

4. Tel: 5. Fax:

6. Email: 7. WWW Address:

8. Contact Name and Title:

9. Parent Company (Full legal Name):

10. Subsidiaries, Associates and/or Overseas Representative(s) - (attach a List if necessary):

11. Type of Business (Mark one only):

Corporate/ Limited: Partnership: Other (specify):

12. Nature of Business:

Manufacturer: Authorised Agent: Trader: Consulting Company: Other (specify):

13. Year Established: 14. Number of Full-time Employees:

15. Licence no./State where registered: 16. VAT No./Tax ID:

17. Technical Documents available in:

English French Spanish Russian Arabic Chinese Other (specify) _________________

18. Working Languages:

English French Spanish Russian Arabic Chinese Other (specify) _________________

Section 2: Financial Information

19. Annual Value of Total Sales for the last 3 Years:

Year ______: USD___________ Year ______: USD___________ Year ______: USD___________

20. Annual Value of Export Sales for the last 3 Years:

Year ______: USD___________ Year ______: USD___________ Year ______: USD___________

21. Bank Name: Swift/BIC Address:

Address:

22. Bank Account Number: Account Name:

23. Please provide a copy of the company's most recent Annual or Audited Financial Report. If available, please provide Credit Rating by Dun andBradstreet or equivalent: 25

24. Quality Assurance Certification (e.g. ISO 9000 or Equivalent) (please provide a Copy of your latest Certificate):

25. International Offices/Representation (Countries where the Company has local Offices/Representation):

26. For Goods only, do those offered for Supply conform to National/International Quality Standards?

Yes No

27. List below up to fifteen (15) of your core Goods/Services offered:

Code Description (one Line for each Item) National/International Quality Standardto which Item conforms

Section 4: Experience

28. Recent Contracts with International Aid Organisations and/or the United Nations:

Organisation: Value: Year: Goods/Services Supplied: Destination:

USD

USD

USD

USD

USD

29. To which Countries has your Company exported and/or managed Projects over the last 3 Years?

26

Section 5: Other

30. Does your Company have a written Statement of its Environmental Policy? (If yes, please attach a Copy)

Yes No

31. Please list any Disputes your Company has been involved in with Intl. Aid Organisations and/or UN Organisations over the last 3 Years:

32. List any National or International Trade or Professional Organisations of which your Company is a Member.

33. Certification:I, the undersigned, hereby accept the basic General Conditions, a copy of which has been provided to me and warrant that the

information provided in this form is correct, and in the event of changes details will be provided as soon as possible:

Name Functional Title

Signature Date

NOTE: Please be informed that this agency does not do business with companies or any of their affiliates or subsidiaries that engage in any practiceinconsistent with the rights set forth in the convention on the Rights of the Child, regarding certain protection applicable to children performingwork. Nor does this agency do business with companies that engage in the sale or manufacture of anti-personnel mines, or any significant componentproduced primarily for the operation thereof.

Please mail completed form to:

(IP)(Address)

27

The form should be typewritten in uppercase and completed clearly and accurately ensuring that all questions are answered. The numbers belowcorrespond to item numbers on the registration form:

1. Full name of company.

2. Full street address.

3. Full mailing address (including P.O. Box, if any).

4. Telephone number, including correct country and area codes.

5. Fax number, including country and area codes.

6. Email address.

7. WWW Address.

8. Provide name of person (including title) or department to whom correspondence should be addressed.

9. Full legal name of parent company, if any.

10. Please provide, on a separate sheet if necessary names and addresses of all subsidiaries, associates and overseas representatives if any.

11. Please tick one box. If the last box is ticked, please specify.

12. Please tick one box. If the last box is ticked, please specify. If the company is a manufacturer of some products and a trader/agent of others,which they do not manufacture, both boxes should be ticked.

13. Indicate the year in which the organisation was established under the name shown in Item 1.

14. Indicate the total number of full-time personnel in the company.

15. Provide the license number under which the company is registered, or the State where it is registered.

16. Provide the VAT number or Tax ID of the company.

17. Please tick the boxes for which languages the company is able to provide technical documents. Please specify other languages.

18. Please tick the boxes for which languages the company is able to work in. Please specify other languages.

19. Provide the total annual sales for the organisation for the last 3 financial years in USD.

20. Provide the total export sales for the organisation for the last 3 financial years in USD.

21. Provide the full name, address and SWIFT address of the bank used by the company.

22. Provide the company's bank account number and the account name.

23. Please provide a copy of your most recent annual report or audited financial report. If available, provide a rating by Dun and Bradstreet orequivalent (specify which).

24. List any Quality Assurance Certificates (e.g. ISO 9000 series) that have been issued to your company and provide a copy of the latest certificates.

25. List all countries where the company has local offices or representation.

26. Indicate whether the company's products conform to national/international standards. If yes please attach copies of the certificates.

27. Please list up to 15 of the core goods/services offered. For each item, list the National/International Quality Standard to which it conforms.

28. Enter the name(s) of International Aid or UN organisations, which your company has dealt with recently. Provide the value and the year of thecontract, the goods/services supplied and the country of destination of each contract. If you have had more than 7 of such contracts, please attach aseparate sheet indicating the others. Documentary evidence of such contracts is required, e.g. copies of purchase orders. Organisations in the UNsystem are: UN; UNCTAD; UNEP; UNCHS (Habitat); UNICEF; UNDP; WFP; UNHCR; UNRWA; UNFPA; UNOPS; UNU; ILO; FAO;UNESCO; ICAO; WHO; WB; IMF; UPU; ITU; WMO; IMO; WTO; WIPO; IAPSO; IFAD; UNIDO; IAEA; ITC; ECA; ECE; ECLAC; ESCAP;ESCWA.

29. List export markets, in particular, all developing countries to which your company has exported over the last 3 years.

30. The Earth Summit, held in Rio de Janeiro in 1992, emphasised the necessity to protect and renew the earth's limited resources. Agenda 21 wasadopted by 178 governments and lays an emphasis for the UN to exercise leadership, i.a. towards promoting environmental sensitive procurementpolicies for goods and services. Please indicate whether your company has a written statement of its Environmental Policy and, if so, please providea copy.

31. List all disputes with International Aid or UN organisations which your company has been involved in over the last 3 years. If more space isrequired, please use a separate sheet.

32. Provide details of all national and international trade or professional organisations to which your company belongs.

33. Please read the enclosed General Conditions carefully, as signature of the form signifies acceptance. The form should be signed by the personcompleting it and their name and title should be typed, along with the date.

28

A - TO: ATTN:

DE - FROM:

THROUGH:

NOTRE - OUR REF.: OBJET - SUBJECT: DATE: 15/01/2002

Item Description Qty Units Comments Price Total32010 Soap Bars - 100-250 gm

bars20 MT 500.00 10,000.00

-- Mosquito Net, nylon or knitted polyester, impregnated. Denier 75, mesh 156, W130xH180xL150

5000 Each Alternative sizes are available

3.00 15,000.00

36041 Cotton Cloth for Sanitary Napkins - Delivered pre-cut into 2 m2 pieces; red flannel from bleached/unbleached material; 150cm width, - 170-180 g/m2; warp=min 21 (threads per cm); weft=min 18.5 (threads per cm); stretch strength: N per 5cm (400-460); yarn

10000 Pcs Per m2 - Requests must specify required quantity in square metres (m2). Note: STS has placed only a few orders for this material and has therefore limited experience & feedback on the product. As local customs vary greatly, we would greatly appreciate ad

1.50 15,000.00

Sub-total: 40,000.004,000.00

Total: 44,000.001. 2. 3.

Project code: Sub-project: (p)Full sub-item code: Org. Unit: 123

ABOD / Allotment code: ABOD Year:M.O.D. No.:

CAF(s):4. Donor requirements:5. Shipping Instructions(a) Consignee:

(b) Port of discharge:(c) Final destination:(d) Shipping marks:(e) Ship by:(f) Special instructions:(g) Other notes:

For the refugee women and children in DadaabLandline 1

KENNANairobi

Mr. Joe Programmec/o UNHCR Branch Office Nairobi, 12 Any Street, 1231 Nairobi KENYA

01-123For women and children

KENNA

The supplies and services listed on this request are properly chargeable to the following allotment, the available balance of which is sufficient to cover the cost thereof:

01/AP/KEN/CM/200b.24.j.12345

Number and location of beneficiaries: 10,000 women and children in Dadaab refugee campDesired date of arrival at port of discharge: 31/12/2001

123456PURCHASE REQUEST

Estimated transport:

PA NUMBER

UNHCR Country, Town ASSIGNED TOMr./Ms. Representative

ENTEREDMr./Ms. Requestor

FOR REFUGEES POUR LES REFUGIES

MEMORANDUM

CLEAREDMr./Ms. Supply Officer

UNITED NATIONS NATIONS UNIESHIGH COMMISSIONER HAUT COMMISARIAT

29

REQUEST FOR QUOTATION (RFQ)or

INVITATION TO BID (ITB)

To:(Vendor)

Destination fax number:(fax number)

From:(Responsible buyer)

Return fax number: (fax number)Tel: (phone number)Email: (emailaddr@(IP).ch)

Date: (xx/xx/xxxx) No. of pages including this page: (x)

File code:

Subject: (RFQ or ITB reference)(Title)(Date)

Manner of Submission:

Bids to be submitted by fax no (.................)

or delivered to the following address:........................................Closing deadline: time :...............date................

Important: Offers transmitted in any other manner than those indicated above will not beconsidered. Please note that at peak periods the fax machine on this number may experiencecongestion. Offers should therefore be submitted in good time to be received by closing time.

Requirements:

The office of (IP) invites your company to make a firm offer for the following:

Merchandise:Specifications:Quantity:Delivery place:

Your offer should clearly indicate:

1. Ex-works unit price:

2. Transport cost up to delivery place: by air, sea, land (as applicable):3. Total DDU price:4. Prices should be net after deduction of discounts:5. Total gross/ net weight:6. Total cubic dimensions:

7. Confirmed delivery schedule:8. Validity of the offer:9. Defects liability and guarantee period:10. Detailed specifications (if different from stipulated specifications):11. Place of manufacture and country of origin:

30

Information to bidders:

1. Currency of offer should preferably in US Dollars, but in case local currency is offered, thecomparison of offers will be based on the prevailing UN rate of exchange.

2. Payment will be made to the supplier by cheque or bank transfer within 30 days from receipt by(IP) of all documents mentioned in purchase order.

3. (IP) will not be responsible for any bank service charges.4. Inspection (at buyer’s expense) may be applicable and will be advised at time of purchase order

and arranged by (IP).5. (IP) does not undertake to pay by letter of credit or in advance of delivery.6. (IP) reserves the right to accept the whole or part of your offer.7. (if applicable) Goods supplied for (IP) are exempt from VAT and all other customs excise

duties.7. Hand-written, incomplete offers or offers which do not comply with any or our tender

conditions will not be considered.8. There will be liquidated damages equivalent to a deduction of 0.1% per day or part thereof for

late deliveries due to default on the part of the suppliers.9. Guarantee against anti-personnel mines: (IP) has decided to support an international ban on

anti-personnel mines. Anti-personnel mines have killed and maimed and continue to kill andmaim many refugees. A high proportion of these innocent victims are women and children.These mines pose a serious obstacle to the return of millions of refugees and displaced peoplearound the world. (IP) shall therefore not knowingly buy products from companies that sell ormanufacture anti-personnel mines or their components. If you submit a bid based on thisrequest, it shall constitute a guarantee that neither your company nor any affiliate or a subsidiarycontrolled by your company sell or manufactures anti-personnel mines or their components. Acontract clause confirming this will be included in an eventual purchase order based on thisrequest.

10. Environmental policy: (IP)’s policy is to purchase products and services, which have the leastnegative impact on the environment. Environmental considerations covering manufacture,transport, packing, use and disposal of goods form part of (IP) evaluation and selection criteria.

Please acknowledge receipt of this enquiry and indicate your interest to bid.

Thank you and regards.

31

OFFER FORM

RFQ/ITB reference :

Buyer:

Issue date: Closing date:

Transport by:

Date: .………. ……… ………Validity: ...……...........…Delivery time EXW (days) : ………………………………Place of collection: …………………………………….Volume (m3): …………..........Weight gross (kg) :...............................

Company name and address:

This offer has been prepared in accordance with (IP) Conditions for Purchase Orders:

Name and title: ............................... Signature: ...............................

Total value of offer : EXW: ................................ (place) ................................. (value + currency) FCA: ................................ (port) ................................. (value + currency)

CIP: ................................ (port) ................................. (value + currency)

DDU or Delivered to : ................................ (place) ................................. (value + currency)

Please give full specifications of offered goods. Specify country of origin and submit descriptive leaflets.

Ex-works price*Item Ref. Title/description Qty.

Unit Total

* INCOTERMS. Ex-works unit prices shall include cost for packing and loading.

32

Budget TABULATION OF BIDS

Over/Under Budget: Number of vendors invited to offer:

Number of vendors responding:

Vendor:

Offer reference:

Date:

Currency of Offer usd usd usd usd usd usd usd

Rate of Exchange 1 1 1 1 1 1 1

Local cur-rency COST

Local cur-rency COST

Local cur-rency COST

Local cur-rency COST

Local cur-rency COST

Local cur-rency COST

Local cur-rency COST

Description of Items Quantity Unit UNIT $ TOTAL $ Unit UNIT $ TOTAL $ Unit UNIT $ TOTAL $ Unit UNIT $ TOTAL $ Unit UNIT $ TOTAL $ Unit UNIT $ TOTAL $ Unit UNIT $

$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

$0.00 #VALUE! $0.00 #VALUE! $0.00 #VALUE! $0.00 #VALUE! $0.00 #VALUE! $0.00 #VALUE! $0.00

FOB/FCA Total #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Freight charges $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

CFR/CPT/DDU Total #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Insurance (estimated) #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Inspection (estimated)

Total CIF/CIP #### #### #### #### #### ####

Trade Terms

Country of Origin

Weight (estimated)

Volume (estimated)

Delivery FOB

Total leadtime

Payment Terms

Validity

Meets required Specifications

Recommended Vendor:

Reason: Country Director:

Currency of offer: Requestor:

Comments:

Prepared/submitted by (Buyer):

33

REQUEST FOR PROPOSAL (RFP)

IP:Address:

Telephone:Fax:Email:Contact Person:

(IP) file code: Date:

Dear Sirs,

Re: Request for Proposals for [DESCRIPTION OF SERVICES]

You are requested to submit a proposal for [DESCRIPTION OF SERVICES] in respect of theabove referenced RFP. Your proposal could form the basis for a contract between yourfirm/institution and (IP).

To enable you to submit a proposal, please find enclosed:

a) Annex I: Terms of Reference (TOR) containing a description of the requirements for whichthose services are being sought.

b) Annex II: (IP)’s Conditions for Service Contracts.

c) Annex III: Vendor registration form, which you are requested to fill in and return with yourproposal. [THIS ANNEX SHOULD BE SENT ONLY TO NEW VENDORS NOT YETREGISTERED]

d) Annex IV: Form for pricing proposal (if applicable).

This letter is not to be construed in any way as an offer to contract with your firm/institution.

Manner of Submission

Your proposal should be prepared in English (or French).

Your proposal shall comprise the following documents:

a) Technical component, andb) Price component.

(vendor)(address)

34

Your proposal, in original and xx copies [1 copy per evaluation team member], shall be sealed in anouter and two inner envelopes, as detailed below:

The outer envelope shall be addressed as follows:

Proposal for [DESCRIPTION OF SERVICE](IP)(address)

Both inside envelopes shall indicate your firm’s name and address. The first inner envelope shall bemarked “Technical Proposal” and contain the technical component of your proposal. The secondinner envelope shall be marked “Price Proposal” and include your price component.

Proposals must be received by (IP) at the above address on or before [DATE]. Any proposalreceived after this date OR sent to another address may be rejected. (IP) may, at its discretion,extend the deadline for the submission of proposals, by notifying all prospective contractors inwriting. The extension of the deadline may accompany a modification of the RFP documentsprepared by (IP) at its own initiative or in response to a clarification requested by a prospectivecontractor.

You are requested to hold your proposal valid for 90 days from the deadline for submission. (IP)will make its best effort to select a firm/institution within this period.

Please note that the cost of preparing a proposal and of negotiating a contract, including any relatedtravel, is not reimbursable nor can it be included as a direct cost of the assignment.

Any requests for clarification should be referred to [THE NAME OF THE PERSONRESPONSIBLE FOR THE RFP] at the above address, telephone [......................], fax[..........................]. (IP) may, at its discretion, copy any reply to a particular question to all otherinvited firms/institutions.

We would appreciate your informing us by fax [...........................] as to:

a) Your receipt of this request for proposal.b) Whether or not you will be submitting a proposal.

Content of Proposal

Technical Component:

The technical component of your proposal should be concisely presented and structured in thefollowing order to include, but not necessarily be limited to, the following information:

a) Description of the Firm and the Firms’ qualificationsA brief description of your firm/institution and an outline of recent experience or projects of asimilar nature. You should also provide references and any information that will facilitate ourevaluation of your firm/institution’s substantive reliability and financial and managerialcapacity to provide the services.

b) Understanding of the Requirements for Services, including AssumptionsInclude any assumptions as well as comments on the data as indicated in the TOR, or as youmay otherwise believe to be necessary.

c) Proposed Approach, Methodology, Timing and OutputsAny comments or suggestions on the TOR, as well as your detailed description of the mannerin which your firm/institution would respond to the TOR. You should include theimplementation schedules.

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d) Proposed personnel to carry out the assignmentThe composition of the team you propose to provide, with their qualifications and experience,to be accompanied by their curriculum vitae.

Price Component

Your separate price component must contain an overall quotation in a single currency, either in USDollars or in the currency of your home country. If you opt for the latter, and for evaluationpurposes only, your proposal will be converted into US Dollars using the United Nations rate ofexchange in effect on the date submissions are due.In addition, the price component must cover all the services to be provided and must itemise thefollowing:

a) An all-inclusive rate per person-day (including honorarium and living expenses);b) An all-inclusive amount for travel and related expenses, if any;c) Other costs, if any (indicating nature and breakdown);d) A proposed schedule of payments, all of which must be expressed, and will be effected, in the

currency of the proposal.

Note: (IP)’s payment terms are within 30 days after receipt of documents in order.

Evaluation of Proposals

A point system will be used in evaluating the proposals, both technically and commercially. Thenumber of points assigned to each component will be determined in advance of the opening ofproposals.

The technical component will be evaluated using the following criteria:

a) The firm/institution’s general reliability as well as experience and capacity in the specific fieldof the assignment;

b) The approach in responding to the TOR and the detailed workplan; andc) The qualifications and competence of the personnel proposed for the assignment.

The price proposal will be taken into account in the following manner:

The maximum number of points will be allotted to the lowest price proposal that is opened andcompared among those invited firms/institutions. All other price proposals will receive points ininverse proportion to the lowest price; e.g., [total Price Component] x [US$ lowest] \ [US$ other] =points for other vendor’s Price Component.

Please note that (IP) is not bound to select any of the firms/institutions submitting proposals.Furthermore, since a contract will be awarded in respect of the proposal which is considered mostresponsive to the needs of the project concerned, due consideration being given to (IP)’s generalprinciples, including economy and efficiency. (IP) does not bind itself in any way to select thefirm/institution offering the lowest price.

Yours faithfully,

36

Terms of Reference

Annex to RFP for (title)

The following criteria should be included in the TOR and/or amended as applicable to reflect therequested service. Additional features should be added as appropriate.

I. Address the project, program, or technical features of the service and describe how it willsupport the (IP) mandate and operations;

II. Describe the mission statement of the Requesting Unit and on what basis, and by whom, thework will be guided;

III. Identify the responsible (IP) managers/sponsors of the project;

IV. Mention any previous or current efforts or studies already undertaken by (IP) in relation tothe project. Request the vendor to provide details of any similar projects undertaken for otherorganisations;

V. Mention any relevant statistics from the previous year(s) which may assist the vendors inpreparing their offer;

VI. Include reference sources/materials which may guide the assignment;

VII. Include specific areas of particular interest/importance which should be focussed on duringthe project and/or areas which are not to be included;

VIII. Describe the project objectives and state clearly the deliverables to be produced as part of thecontract, including those to be produced during the course of the contract as well as the finalproduct expected. Deliverables to be the sole property of (IP) ;

IX. Include the project timeframe or expected contract duration and proposed start/end dates,including deadlines for monthly/mid-term assignments, reviews, deliverables, missions, etc.;

X. State the location of the assignment and include any travel requirements if HQ/field missionsare anticipated. In the case of official travel to be conducted under the contract, UN rulesapply. Request home base of all consultants;

XI. Identify the number and type of consultants/candidates required;

XII. State the desired profile and/or education background/experience of the desiredcandidate/contractor(s);

XIII. Include any known constraints in relation to the project which may hamper the work of theconsultant(s);

XIV. If a visit of the premises or a bidders conference is foreseen to clarify details of theproject/required service, include date and time of such a gathering and request confirmationof attendance by (date).

XV. Request descriptive literature.

XVI. Include any other details as appropriate.

37

Request for Proposal for (RFP title)

Please use this form to submit your commercial offer.

Indicate here the currency of your offer: _____________________

Daily rate (fees): _______________

Number of days required at home location: _____________________

Number of days required on-site in (place): _____________________

Proposed Field locations: 1. ___________________________

2. ___________________________

3. ___________________________

4. (others)_____________________

Number of days required in each Field location: 1. _________2. _________3. _________4. _________

Daily subsistence allowance (DSA)*: __________________________

*Payable for each night spent on-site. The allowance will be paid according to the prevailing rate attime of work. For information, the (month/year) DSA rate for (place) is (currency) xxx. Similarindications can be provided for selected Field locations to enable you to provide the total cost.

Travel expenses**: _________________________

**Airfare (if applicable) is payable as follows: one return trip per location from named home base,economy rate, most direct route. Proof of purchase and travel must be submitted with your invoice.

Other expenses, if any (please qualify):

Total cost: Fees: ___________________Total estimated DSA: ___________________Total estimated travel: ___________________Other expenses: ___________________

Grand total: ___________________

Number of consultants proposed

Please indicate the proposed schedule of payments, all of which must be expressed, and will beeffected, in the currency of the proposal.

Please use additional sheet(s) if required for details.38

EVALUATION OF PROPOSALS FOR SERVICES

Evaluation plan

Agreed Criteria on which to evaluate RFP for (title of RFP)

Content

§ Proposed content coincides with requirements as laid out in the RFP.§ The proposal demonstrates an understanding of what (IP) is seeking to achieve.§ The proposal is appropriate to our goals and audience.§ Their approach to language (different mother tongue users), variety of educational levels, gender and cultural diversity includes:

Standard, non-idiomatic , clear and professional EnglishUniversal graphics, visual reinforcementNo use of long, complex sentencesAvoidance of slang, acronyms not in common useAvoidance of examples and anecdotes primarily from one cultureContent, visuals show gender equity

§ The proposal demonstrates sensitivity to the mainstreaming of gender, age and a rights based approach.§ The approach demonstrates sensitivity to humanitarian issues and an understanding of (IP)’s goals.

Creativity

§ Was their proposal well organised, easy to follow? (if so, more likely their end product e.g. training will also be)?§ To what extent did the proposal give you an overall impression that they know what they are doing?§ To what extent does the presentation of content reflect capacity for stimulating interest and engaging people’s attention?§ Does the proposal suggest “out of the ordinary ideas”, that are different from those expressed in the other proposals?§ How professional is the proposal in terms of wording, layout and approach?§ How does the overall look and aesthetics of the proposal relate to the expected concept?§ Does the proposal communicate the right message?

39

Consultants/Company profile

§ Do the personnel on the team all have a minimum of 3 years experience in e.g. instructional design?§ Does the company present the team members and do the team members have formal academic training in the relevant subject matter?§ Will the team be dedicated to the project and are people from the same company?§ Do they propose a minimum of one full time instructional designer on the project and preferably two?§ Has the company completed other similar projects for other clients?§ Has the company clear experience in work with humanitarian agencies and understand the deep field?§ Did they define their approach or philosophy, and is it appropriate?§ Do they understand the team approach to the development?§ Are CVs provided and references?§ Is the company the right capacity/size and with the correct expertise mix to fulfil the service and to meet the needs of (IP)?§ Does the company have the appropriate in-house technology to fulfil the contract and to maintain sufficient exchange of information?§ Is the vendor accessible for on-site visits to verify quality control/review work, etc.?§ Does the company have the flexibility to respond quickly to the needs of (IP) in case of absorbing delays by compressing work?

Work Plan and Process

The amount of elaboration they put into the work plan is a good indicator of their degree of organisation.§ Is the plan realistic, given the time frame?§ Is the plan easy to read and follow and to the point?§ Does the plan provide for a team working approach with sufficient HCR input and decision making time?§ Is the methodology appropriate?§ Do you get the impression that we will find the team easy to work with (flexibility/openness)?§ Does the plan include quality checks through piloting?§ Is the work plan detailed, including no. of person days?

40

41

Evaluation Score Sheet

Instructions for evaluation team:The maximum number of points that can be awarded for each criteria is indicated below.Please bring the completed form to the next session of the evaluation team.

NAME: _____________________________

Company Content20%

Creativity15%

Company17%

Workplan18%

Budget30%

Total

Company A

Company B

Company C

Company D

Company E

Company F

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Evaluation record

Evaluation team for: (RFP title)

Date:

Participants:

Rating results

Company Content20%

Creativity15%

Company17%

Workplan18%

Budget30%

Total

Company A Points:Price: US$

Company B Points:Price: US$

Company C Points:Price: US$

Company D Points:Price: US$

Company E Points:Price: US$

Company F Points:Price: US$

Please note that the totals do not include points awarded for budget presentation.

43

Conclusions of the meeting

1. Companies xx and xx were eliminated by consensus based on the above technical scoring.

2. After some discussion, xx was also eliminated as: (explanation)

3. The following x questions are to be sent to the remaining x companies for clarification, together with targeted specific questions (as applicable).• ………………….?• ………………….?• ………………….?

4. The proposals from the remaining x companies are to be revised by committee members and any questions should be sent to team co-ordinator) by (date) forforwarding to the companies.

5. Meanwhile RU is to follow up on references of the short-listed companies and t/phone interviews will be arranged.

6. Next meeting to be on (date), in order to make final decision.

PURCHASE ORDER

To:(Vendor)

Destination fax number: (number)

From:(Responsible buyer)

Return fax number: (fax number)Tel: (phone number)Email: (emailaddr@(IP).xx)

Date: (date) No. of pages including this page:

Purchase Order PO/(reference)(title)

This order supersedes all prior oral or written agreements, if any, between the parties and constitutes theentire agreement in respect of this purchase.

Reference your offer (reference) dated (date)

we hereby place the following order subject to the terms below and (IP) General Conditions for PurchaseOrders that are incorporated by reference.

Vendor:

(Name)(Address)

Contact person : (Name) Telephone : (xxx))Fax : (xxx)E-mail : (xxx)

Buyer:

(IP)(Address)

Responsible buyer: (Name)Telephone: (xxx)Fax: (xxx)E-mail: (xxx)

Consignee:

UNHCR(Address)

Telephone: (xxx)Fax: (xxx)

To supply sound, fair, average and merchantable quality with the following specifications:

Item No. : (xxx)Quantity : (xxx) 44

Specifications : (xxx)

Packing details:

Goods are to be packed for shipment as follows:

- Packing units (PU): (xxx)- Dimensions of PU: L: (xxx), W: (xxx), H: (xxx)- Number of pieces per PU: (xxx)- Total quantity of PU: (xxx)- No. of PU per pallet/truck/container: (xxx)- Gross weight in kgs per PU: (xxx)- Total gross weight (kgs): (xxx)- Gross volume per PU (cbm): (xxx)- Total gross volume (cbm): (xxx)

An attested detailed packing list showing the contents of each packing unit must be included in or attachedto package No. 1 of the consignment.

Goods shall be adequately packed to meet the requirements of the transport mode stipulated and towithstand any rough handling during transit to final destination. Water-resistant glue or adhesive tape onlyis to be used for making up or sealing of cartons.

Markings:

Each packing unit is to be marked in indelible ink, at least 5 cm high, on two sides in one colour asfollows:

PO No., 9 cm high min.: PO/(xxx)Consignee: UNHCR (place)Project symbol: (xxx)Destination: (place)Packing units to be numbered: PU No. over total PU: PU (x/xx)Donor markings (if applicable, according to donor specifications)

Value of this order:

In words : (Currency + amount)

The total value of this order is (currency + amount in numbers)

Currency:

(currency)

Breakdown of cost :

Item No. Quantity UOM Unit price Total

Total value itemsFreightTotal value this order

45

Performance bond (if applicable):

The vendor is required to establish a performance bond through a first class bank of (xx) percent of thetotal value of this order consistent with the wording of the model provided below:

« At the request of (vendor, place), we, (vendor's bank), hereby irrevocably undertake to pay the office ofthe (IP) on first demand, irrespective of validity and effect of (IP) Purchase Order PO/(reference) andwaiving expressly all rights of objection or defense arising from said purchase order, any amount not toexceed (currency + amount) being (xx) percent of the total purchase order value, upon receipt of (IP's)written and duly signed request for payment which declares (vendor, place) in default of the terms andconditions of said purchase order. The bond shall expire (xx) days after confirmation by (vendor's bank)unless released by a duly authorised official of (IP) in writing at an earlier date. This bond shall bewithout prejudice to any other remedies that may be available for any breach of the order terms andconditions. »

Origin of goods:

(country)

Delivery/Shipping:

(INCOTERMS code + place) ((INCOTERMS spelled out))Where not inconsistent with the terms of this order, Incoterms 2000 shall apply.

Mode of transport:

(land, sea, air)

Split shipments (are / are not) authorised.Trans-shipment of goods (is / is not) permitted.

Delivery / Shipping schedule :

Delivery /Shipment

Item No. Quantity Latest date ofdelivery/shipment

Estimated date ofarrival

1st

2nd

Last

If applicable, the vendor shall bear any costs for discharge/unloading at the port of discharge. (IP) acceptsno responsibility for delivery conditions at destination.

Notify parties/appropriations:

Please fax the consignee, copy to buyer, shipping details within 3 days of the Bill of Lading or the sameday for other modes of transport. If applicable, please advise collection date 3 days in advance by fax tothe (IP) appointed freight forwarder, copy to buyer. Use the attached form ‘Delivery Details’.

In the event of trans-shipment, these details are to be tendered to the same notify parties within the sameperiod.

Guarantee/warranty: 46

(Vendor) warrants that all items furnished hereunder are new and unused.

(Vendor) warrants that all the items furnished hereunder shall conform fully with all requirements of thisorder, shall conform to approved samples, if any, submitted against this requirement, shall be fit for theuse for which they are intended, and shallbe free from defects in material, workmanship and/or design.

(if applicable)We require the usual manufacturer’s guarantee against any/all defects in workmanship and materials used,and service warranty applicable in (country of destination).

Special instructions:

(xxx)

Inspection (if applicable):

This order is subject to inspection by(inspection company)(address)Contact person: (name)Telephone: (xxx)Fax: (xxx)E-mail : (xxx)or their recognized correspondents certifying that goods conform to contractual specifications.

Inspection is at buyer's cost. if, however, an inspection must be repeated due to the vendor's default, or forthe vendor's convenience, the cost of the second and any subsequent inspections for the same purchaseorder (or lot, if part inspection) will be charged to the vendor by the inspection company.

Pre-shipment inspection is at the buyer's discretion and shall not otherwise affect (IP's) rights, herebyreserved, to final inspection and acceptance of all items after delivery, nor does it prejudice any legal orequitable remedies that may be available to (IP) as a result of the vendor's performance under this order.

Pre-shipment inspection must be arranged and completed within the shipment period. unless otherwiseagreed in writing by (IP) or its agents, no shipment is permitted without an inspection report or cleanreport of findings.

Documentation required:

(choose what applies)

Document Originals Copies

Commercial Invoice (Vendor)Packing/Weight List AttestedCertificate of Origin Chamber of CommerceInspection Certificate (Inspection company)Bill of Lading ‘Clean on board’, made out to consignee,

marked ‘freight prepaid’ and ‘unloadingcharges included ‘

Air Waybill Marked ‘freight prepaid’ (delivery term)Air Waybill Marked ‘freight prepaid’ (delivery term) and

'trans-shipment of goods not permitted'Truck Waybill Marked ‘freight prepaid (delivery term)

47

Certificate of AnalysisPhytosanitary CertificateRadiation CertificateFumigation CertificateShipping Details Form (attached)Courier Service AirWaybill

Confirming dispatch of documents toconsignee

Proof of DeliveryForwarder’s Certificate ofReceiptPerformance Bond

Distribution of documents:

Documents are to be organised in sets as follows:

(choose from the following)

for CPT/CFR/DDU shipments by vendor:

- (for air shipments) a full set of originals attached to package No. 1.- (for road shipments) a full set of originals handed to the driver.- (for sea shipments) a full set of originals to the consignee by courier service.- one set of originals and one set of copies to (IP) (place), attn. (responsible buyer) for payment.

for EXW/FCA/FOB delivery to the (IP) appointed freight forwarder:

- 2 full sets to the freight forwarder (1 set of copies by fax and 1 original set by courrier service).- 1 full set of originals to (IP) (place), attn. (responsible buyer) for payment.

Shipping instructions (if applicable):

Freight forwarder :Address :Telephone :Fax:E-mail :Contact person :

(IP) has appointed the above freight forwarder to act as its agent for the shipment of this order. The freightforwarder will receive the goods in conformity with the shipping terms specified above. The vendor mustnotify the freight forwarder in writing in a timely manner to arrange delivery.

The vendor remains solely responsible for the goods until they are taken over by the freight forwarder. Ifapplicable, the freight forwarder will normally collect the goods within (xx) working days of thecontracted delivery date(s). The vendor must immediately inform (IP) in writing should the freightforwarder fail to meet this delay.

The vendor must immediately inform (IP) in writing of any changes in the date of readiness. Acceptanceof any such change remains at the sole discretion of (IP) and shall not be deemed a waiver of any of (IP)'srights under this Purchase Order.

All documentation, as required by this order, must be delivered to the freight forwarder together with thegoods. The freight forwarder will issue a forwarder's certificate of receipt (normally within three workingdays), only after the goods and documents are received by them complete and in good order. Documentsmust be relevant to the goods received by the freight forwarder.

48

Payment terms:

By bank (transfer / cheque) within 30 days of receipt of all above documents in good order. (If banktransfer) All invoices must clearly indicate the vendor’s bank and bank account number.

Invoices are to be submitted on a per purchase order basis.

Acceptance:

Please confirm your acceptance of this order to Fax (xxx), attn. (responsible buyer), andensure that all correspondence cites our purchase order reference and title.

Upon receipt of our formal confirming Purchase Order you are required to sign and return theacknowledgement copy within seven days.

Receipt by (IP) of the signed Purchase Order Acknowledgement copy, vendor's written confirmation oforder, or initiation of performance under this order by the vendor shall constitute acceptance of the orderby the vendor, including all terms and conditions herein contained or otherwise incorporated by reference.

Acceptance is limited to the terms herein stated or incorporated by reference and any additional ordifferent terms or conditions proposed by the vendor are rejected unless expressly approved in writing byan authorised representative of (IP).

(IP) (place)(date)

49

DELIVERY DETAILS(Annex to PO)

(IP)Address:

Telephone:Fax:Email:Contact Person:

Vendor:Address:

Telephone:Fax:E-mail:Contact Person:

Number / Place Date

Purchase OrderPO TitleGoods ready for collection ex worksTruck Identification No.Truck Waybill No.Rail Wagon No.Number of wagonsRail Waybill No.Flight NumberAir Waybill No.Name of VesselVoyage No.Bill of Lading No.ETD (estimated time of departure)Via (if applicable)ETA (estimated time of arrival)

Remarks:

Name:Signature:Date:

50

SERVICE CONTRACT

INSTITUTIONAL OR CORPORATE CONTRACTOR

(IP)Address :

Telephone: Contract Reference:Fax: Date:Email:Contact Person:

Department Project Symbol Allotment Account Code MOD Number

Contract entered into between the (IP) and: (hereinafter referred to as the Contractor):Name of Contractor:Address:

Telephone:Fax:Email:WORK ASSIGNMENT:

Total Amount:

Notes:

Continuation Sheet: Yes/No Attachments: Yes/No (if yes, Nos. )This contract shall commence onDate:And shall expire on the satisfactory completion of the services described above, but not later thanDate:unless sooner terminated under the terms of this contract.

This contract is subject to the attached (IP) Conditions for Service Contracts.CONSIDERATION:As full consideration for the services performed by the contractor under the terms of this agreement the(IP) shall pay the contractor upon certification that the services have been satisfactorily performed:a) A fee ofb) Where two currencies are involved, the rate of exchange shall be the official rate applied by the

United Nations on the day the (IP) instructs its bankers to effect the payment(s).c) The fee is payable in installments upon certification of satisfactory performance at each phase.Phase Date Amount Phase Date Amount

51

Authorised Official

(Signature and IP seal)Name:Title:Date:

I acknowledge that I have read and I accept the (IP)Conditions of Service. (Signature and company seal)Contractor:Title:Date:

cc. Original: (IP) Contact Person, Copy 1 + 2: Contractor, Copy 3: Requestor, Copy 4: Payment Unit,Copy 5: Evaluation

52

PROCESSING A CONTRACT:

The contract must be issued 6-fold (1 original and 5 copies, of which copy 5 is for the Evaluation). Seebelow for distribution of the six sheets.

HOW TO COMPLETE THE CONTRACT:

Box: DEPARTMENT, please put the Requestor’s Department, Section, Unit, etc…,Box : PROJECT SYMBOL, put the relevant UNHCR code.Box ALLOTMENT ACCOUNT CODE, put the relevant UNHCR reference.Box MOD NUMBER, put the relevant UNHCR reference.

Box below : Contract entered into……….is for the contractor name, address and contact person, telephone, fax and email info.

Box 1: WORK ASSIGNMENT:Fill this box with as much information as you have for the contractor to fullfill the contract:

The details of the work (deliverables, etc…)The schedule of the assignmentThe rules: what they have to supply with their invoice (receipts of travel tickets, time sheets, etc.)The DSA payment rules (sentence model below).

If you don't have enough space add an additional page and put a cross at "Continuation sheet YES X".You can also attach the Terms of Reference (TOR) that you have sent with the Request for Proposal(RFP).You can add any attachment you estimate useful for the understanding of the contract between bothparties but stipulate inside the contract : as per attachment No.xx

BOX 2. Consideration

Fill the blank space with :

A fee of……..(the total amount of the contract in currency of the contractor's offer) equivalent toUS$ ………………….. at an exchange rate of …………. (put the exchange rate of the month you aredoing the contract).

Boxes: PHASE ¦ DATE ¦ AMOUNT

If you have decided to pay the contractor in phases at certain dates, please specify it here.You have space for several payment phases. You also can define it differently.

Box Authorized Official

It should be signed by an authorized officer or the Representative

THE CONTRACT is One ORIGINAL and Five Copies

Once the contract is done, stamped and signed by the Representative, prepare a covering letter (see modelattached) and sent with the contract to the contractor. Except Copy 5 "Evaluation".

Please attach to each contract a copy of the (IP) Conditions of Service.

The supplier will return all copies except the copy 1 & 2 and the original.

53

1. The ORIGINAL is for the Contact Person who has written the contract. The contact person willmaintain the contract file, distribute the copies, ensure that the evaluation form is filled beforepayment of the last invoice. He/she should be informed of any problems (other than technical) beforeany new requirement involving funds or length of the contract, is given to the contractor.

2. The CONTRACTOR copy 1 stays with the contractor3. The CONTRACTOR copy 2 also stays with the contractor4. The REQUESTING UNIT, copy 3, must be sent with the EVALUATION copy 5 to the Requestor.5. PAYMENT UNIT, copy 4: is for the Finance Unit that will deal with the payment. Finance is thus

informed of the contract, and when the payment(s) is/are due (either at the end of the contract orcertain amounts at fixed dates).

6. The EVALUATION, copy 5: must be filled by the Requestor at the end of the contract. It must begiven to the Finance Unit with the last invoice for payment stipulating that this is the final paymentfor this contract. This will close the file.

PAYMENT OF THE CONTRACT

Invoices should be sent to the Contact Person who will ask the Requestor to approve them on a copy andreturn them to the Contact Person. The Contact Person will then send the original invoice to the FinanceUnit for payment. A copy of the invoice paid must be kept in the file.

Sentence model :

1. Airfare is payable according to (IP) rules, i.e one return trip economy rate, most direct route. Proof ofpurchase and travel must be submitted with your invoice.

2. DSA is payable for each night spent on-site. This allowance is paid according to the prevailing (IP)rate at the time of work. For information, the (month) rate for (country) is (currency + amount).

3. Related travel, DSA are inclusive and in accordance with (IP) regulations and prevailing DSA ratesapplicable at the time of engagement.

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COVER LETTER(for Service Contract)

(IP)Address :

Telephone:Fax:Email: Date:

Subject: (IP) CONTRACT (reference) (title)

Dear ,

Please find attached herewith (IP) Contract (reference) for your signature and company seal. Youare advised to retain the second and third copies marked Copy 1 and Copy 2 Contractor and return allother copies promptly to the undersigned to avoid any delay in payment of your invoice(s).

The contract reference must be clearly indicated on all correspondence and invoices and anysupporting documentation.

Thank you for your cooperation.

Yours sincerely,

(Name of Contact Person for Contract)(Title)

(Contractor)(Address)

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Copy 5Evaluation of Contract

INSTITUTIONAL OR CORPORATE CONTRACTOR

(IP)Address :

Telephone: Contract Reference:Fax: Date:Email:Contact Person:

Department Project Symbol Allotment Account Code MOD Number

Contract entered into between the (IP) and: (hereinafter referred to as the Contractor):Name of Contractor:Address:

Telephone:Fax:Email:WORK ASSIGNMENT:

Total Amount:

Notes:

Continuation Sheet: Yes/No Attachments: Yes/No (if yes, Nos. )The quality of the contractor’s work is:Excellent Good Adequate Somewhat less than

adequatePoor

Would you consider re-engaging the contractor? Yes NoDid the nature and duration correspond to that set out above? Yes NoShould any part or all of the payment be withheld? Yes NoIf the work was less than adequate of if a “No” is checked above, please explain or attach explanation:

I request that arrangements be made to effect final payment asindicated in the contract.

Yes No

I certify that the information provided accurately describes the services rendered by the contractor.Signature:

Name:

Title:

Date:56

REGRET LETTER

To:(Vendor)

Destination fax number: (number)

From:(Responsible buyer)

Return fax number: (fax number)Tel: (phone number)Email: (emailaddr@(IP).xx)

Date: (date) No. of pages including this page: 1

File code:

Subject: RFQ (or ITB or RFP) (reference)(title)

Your offer (reference) dated (date).

We are sorry we did not select your offer on this occasion. However, we look forward to future businesscooperation.Kind regards.

(Responsible buyer)(IP)(place)

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RECEIVING REPORT

To: (IP), Procurement Unit

From: Consignee(name)(address)

PO referencePartial Shipment No. Final (yes/no)PO titleDescriptionQuantityPackingWeightVolumeTrade TermValueVendorETDFromETAToInsured from / toWaybill No.Shipping Marks

This is to certify that the above consignment has been received by the Consignee

Receipt DateReceived in full and in good orderReceived in non-conforming stateDescribe extent and reasons for objection and immediate action taken (e.g. rejected if DDUdelivery, objection marked on Waybill, protest letter sent to carrier, etc.):

Remarks:

Name: Signature:

Date:

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PROTEST LETTER

IP:Address :

Telephone:Fax:Email:Contact Person:

(IP) file code: Date:

Subject: Protest Letter for Loss and/or Damage

Notice for claim concerning:

PO reference :Country of destination :Commodity:Waybill No.:Container No. :

This is to inform you that upon taking delivery of the above-mentioned consignment, the followingirregularities have been ascertained:

We hold you fully responsible and liable for the financial loss sustained and for all other expensesand/or consequences which may arise.

We shall revert to this matter indicating the time and place of a survey to assess the full extent ofthe loss and/or damage, to which you are invited to attend.

In the meantime we would appreciate your advising us how you propose to settle this matter.

Yours faithfully,

(carriers’ agent)(address)(place)

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CONDITIONS FOR PURCHASE ORDERS

I. LEGAL STATUS

The Vendor shall be considered as having the legal status of an independent contractor vis-à-vis (IP). The Vendor, its personneland sub-contractors shall not be considered in any respect as being the employees of (IP). The Vendor shall be fully responsiblefor all work and services performed by its employees, and for all acts and omissions of such employees.

II. SUB-CONTRACTINGIn the event the Vendor requires the services of a sub-contractor, the Vendor shall obtain the prior written approval of (IP) for allsub-contractors. The Vendor shall be fully responsible for all work and services performed by its sub-contractors and vendors,and for all acts and omissions of such sub-contractors and vendors. The approval of (IP) of a sub-contractor shall not relieve theVendor of any of its obligations under this Contract. The terms of any sub-contract shall be subject to and conform with theprovisions of this Contract.

III. OBLIGATIONSThe Vendor shall neither seek nor accept instructions from any authority external to (IP). Vendors may not communicate at anytime to any other person, government or authority external to (IP) any information known to them by reason of their associationwith the (IP) which has not been made public, except in the course of their duties or by authorisation of the (IP): nor shallVendors at any time use such information to private advantage. These obligations do not lapse upon termination/expiration oftheir agreement with (IP).

IV. ACCEPTANCE AND ACKNOWLEDGEMENT

No Contract shall become effective and no Contract shall exist until (IP) has received from the Vendor written acceptance of theconditions which govern this Contract either on the Acknowledgement Copy or by a faxed acceptance to be subsequentlyconfirmed by a return of the Acknowledgement Copy, duly signed by the Vendor. Initiation of performance under this order bythe vendor shall also constitute acceptance of the order by the vendor, including all terms and conditions herein contained orotherwise incorporated by reference.

The signed and dated Acknowledgement Copy shall be returned by registered mail.

V. TAX EXEMPTIONSection 7 of the Convention on the Privileges and Immunities of the United Nations provides, inter alia, that the United Nations,including its subsidiary organs, is exempt from all direct taxes and customs duties in respect of articles imported or exported forits official use. Accordingly, if flow-through tax exemption privileges are obtained for UN vendors, the Vendor authorises (IP) todeduct from the Vendor’s invoices any amount representing such taxes or duties charged by the Vendor to (IP). Payment of suchcorrected invoiced amounts shall constitute full payment by (IP). In the event any taxing authority refuses to recognise (IP)’sflow-through exemption from such taxes, the Vendor shall immediately consult with (IP) to determine a mutually acceptableprocedure.

VI. DISCOUNTSTime in connection with any cash discounts offered will be computed from the date of receipt by (IP) at the place named in thecontract of full documentation as specified by the Contract and/or annexes thereto.

VII. WARRANTYThe Vendor warrants the goods furnished under this Contract to conform to the specifications and to be free from damage anddefects in workmanship or materials. This warranty is without prejudice to any further guarantees that the Vendor provides topurchasers. Such guarantees shall apply to the goods subject to this Contract.

VIII. INSPECTIONThe duly accredited representatives of (IP) shall have the right to inspect the goods called for under this Contract at Vendor’sstores, during manufacture, in the ports or places of shipment, and the Vendor shall provide all facilitates for such inspection. (IP)may issue a written waiver of inspection at its discretion. Any inspection carried out by representatives of (IP) or any waiverthereof shall not prejudice the implementation of the other relevant provisions of this Contract concerning obligations subscribedby the Vendor, such as warranty or specifications.

IX. EXPORT LICENCEThe Contract is subject to the obtaining of any export licence or other governmental authorisation that may be required. It shallbe the responsibility of the Vendor to obtain such licence or authorisation. (IP) may, at its discretion, use its best endeavours toassist.

X. OFFICIALS NOT TO BENEFITThe Vendor represents and warrants that no official of (IP) has been, or shall be, offered by the Vendor any direct or indirectbenefit arising from this Contract or the award thereof. The Vendor agrees that breach of this provision is breach of an essentialterm of this Contract.

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XI. FORCE MAJEUREForce Majeure shall mean Acts of God, laws or regulations, industrial disturbances, acts of the public enemy, civil disturbances,explosions and any other similar cause of equivalent force not caused by, nor within the control of, either party and which neitherparty is able to overcome. As soon as possible after the occurrence of the Force Majeure, and within not more than fifteen (15)days, the Vendor shall give notice and full particulars in writing to (IP) of such Force Majeure. If the Vendor is thereby unable,wholly or in part to perform his obligations and meet his responsibilities under this Contract, (IP) shall then have the right tocancel the Contract by giving, in writing, seven (7) days notice of termination to the Vendor.

XII. DEFAULTIn case of default by the Vendor, including, but not limited to, failure or refusal to make deliveries within the limit specified, (IP)may procure the goods or services from other sources, and hold the Vendor responsible for any excess cost occasioned thereby.Furthermore, (IP) may, by written notice, terminate the right of the Vendor to proceed with deliveries or such part or parts thereofas to which there has been default.

XIII. REJECTIONIn the case of goods or services purchased based on specifications or scope of works, (IP) shall have the right to reject the goodsor services or any part thereof if they do not conform to specifications or the scope of works.

XIV. BANKRUPTCYShould the Vendor be adjudged bankrupt, or should the Vendor make a general assignment for the benefit of its creditors, orshould a receiver be appointed on account of the Vendor’s insolvency, (IP) may under the terms of this Contract, terminate thisContract forthwith by giving the Vendor written notice of such termination.

XV. AMENDMENTSNo change in or modification of this Contract shall be made except by prior agreement between the Procurement Manager of (IP)at (place) and the Vendor.

XVI. ASSIGNMENTSThe Vendor shall not assign, transfer, pledge or make other disposition of this Contract or any part thereof or of any of theVendor’s rights, claims or obligations under this Contract except with the prior written consent of (IP).

XVII. INDEMNIFICATION

The Vendor agrees to indemnify, hold and save (IP) harmless and defend at its own expense (IP), its officers, agents andemployees from and against all suits, claims, demands and liability of whatever nature or kind, including costs and expensesthereof and liability arising therefrom, with respect to, arising from or attributable to acts or omissions of the Vendor or itsemployees or sub-contractors in or relating to the performance of this Contract. This provision shall extend to, but shall not belimited to, claims and liability in the nature of product liability claims.

(IP) will promptly notify the Vendor of any such suit, claim, proceeding, demand or liability within a reasonable period of timeafter having received written notice thereof, and will reasonably co-operate with the Vendor, at the Vendor’s expense, in theinvestigation, defence or settlement thereof, subject to the privileges and immunities of (IP).

The Vendor shall not permit any lien, attachment or other encumbrance by any person or entity to remain on file in any public orofficial office or on file with (IP) against any monies due or to become due for any work done or materials furnished under thisContract, or by reason of any other claim or demand against the Vendor.

XVIII. DISPUTES - ARBITRATIONAny claim or controversy arising out of or relating to this or any contract resulting herefrom, or to the breach, termination orinvalidity thereof, shall be, unless settled amicably through negotiation, submitted to arbitration in accordance with (IP tospecify).

XIX. USE OF NAME, EMBLEM OR OFFICIAL SEALUnless authorised in writing by (IP), the Vendor shall not advertise or otherwise make public the fact that he is a Vendor to (IP)and/or UNHCR and/or the United Nations, or use the name, emblem or official seal of (IP) and/or UNHCR and/or the UnitedNations or any abbreviation of the name of (IP) and/or UNHCR and/or United Nations for advertising purposes or for any otherpurposes.

XX. NOTICEService of any notice shall be deemed to be good if sent by registered mail, fax or by cable to the addresses of both parties, set outin the heading of this Contract.

XXI. LIQUIDATED DAMAGES

Late delivery, or dispatch outside the agreed shipping schedule, shall be subject, without notice, to an assessment of liquidateddamages equivalent to 0.1 percent of the Contract value per day or part thereof. The assessment will not exceed 10 percent of thecontract value. (IP) has the right to deduct this amount from the Vendor’s outstanding invoices, if any. This remedy is withoutprejudice to any others that may be available to (IP), including cancellation, for the Vendor’s non-performance, breach orviolation of any term or condition of the Contract.

Acceptance of goods delivered late shall not be deemed a waiver of (IP)’s rights to hold the Vendor liable for any loss and/ordamage resulted therefrom, nor shall it act as a modification of the vendor’s obligation to make future deliveries in accordancewith the delivery schedule.

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XXII. ANTI-PERSONNEL MINESThe Vendor guarantees that it is not engaged in the sale or manufacture, either directly or indirectly, of anti-personnel mines orany components produced primarily for the operation thereof. Any breach of this representation and warranty shall entitle (IP) toterminate this Contract immediately upon notice to the Vendor, at no cost to (IP).

XXIII. CHILD LABOURThe Vendor represents and warrants that neither it, nor any of its vendors is engaged in any practice inconsistent with the rightsset forth in the Convention on the Rights of the Child, including Article 32 thereof, which, inter alia, required that a child shall beprotected from performing any work that is likely to be hazardous or to interfere with the child’s education, or to be harmful to thechild’s health and physical, mental, spiritual, moral or social development Any breach of this representation and warranty shallentitle (IP) to terminate this Contract immediately upon notice to the Vendor, at no cost to (IP).

XXIV. PRIOR NEGOTIATIONS SUPERSEDED BY CONTRACTThis Contract supersedes all communications, representations, arrangements, negotiations, requests for proposals and proposalsrelated to the subject matter of this Contract.

XXV. INTELLECTUAL PROPERTY INFRINGEMENTThe Vendor warrants that the use or supply by (IP) of the goods sold under this Contract does not infringe on any patent, design,trade-name or trade-mark. In addition, the Vendor shall, pursuant to this warranty, indemnify, defend and hold (IP) and theUnited Nations harmless from any actions or claims brought against (IP) or the United Nations pertaining to the allegedinfringement of a patent, design, trade-name or trade-mark arising in connection with the goods sold under this Contract.

XXVI. TITLE RIGHTS

(IP) shall be entitled to all property rights including but not limited to patents, copyrights and trademarks, with regard to materialwhich bears a direct relation to, or is made in consequence of, the services provided to the organisation by the Vendor. At therequest of (IP), the Vendor shall take all necessary steps, execute all necessary documents and generally assist in securing suchproperty rights transferring them to the organisation in compliance with the requirements of the applicable law.

Title to any equipment and supplies which may be furnished by (IP) and any such equipment shall be returned to (IP) at theconclusion of this Contract or when no longer needed by the Vendor. Such equipment, when returned to (IP), shall be in the samecondition as when delivered to the Vendor, subject to normal wear and tear.

XXVII. PACKINGThe Vendor shall pack the goods with new, sound materials and with every care, in accordance with the normal commercialstandards of export packing for the type of goods specified herein. Such packing materials used must be adequate to safeguardthe goods while in transit. The Vendor shall be responsible for any damage or loss that can be shown to have resulted from faultyor inadequate packing.

XXVIII. INSURANCEThe vendor shall provide and thereafter maintain for the duration of this Purchase Order and any extension thereof all appropriateworkmen’s compensation insurance or its equivalent with respect to its employees to cover claims for personal injury and death inconnection with this Purchase Order. The vendor shall, upon request, furnish proof to the satisfaction of the (IP), of such liabilityinsurance. The vendor shall further provide such health and medical insurance for its agents and employees, as the vendor mayconsider advisable.

XXIX. OVERRIDING CLAUSEIn the event of any conflict or inconsistencies between these General Conditions of Purchasing or any other document whichforms part of the Contract, these Conditions shall prevail except where they have been amended (by specific reference to therelevant clause and paragraph of these Conditions) as provided for herein.

XXX. PAYMENT INSTRUCTIONS(IP)’s normal terms are payment by bank transfer within thirty days of receipt of invoice and documentation in order.

Invoices are to be sent to the following address:(IP)

(address)

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CONDITIONS FOR SERVICE CONTRACTS

I. LEGAL STATUS

The Contractor shall be considered as having the legal status of an independent contractor vis-à-vis (IP). The Contractor, itspersonnel and sub-contractors shall not be considered in any respect as being the employees of (IP).

The Contractor shall be fully responsible for all work and services performed by its employees, and for all acts and omissions ofsuch employees.

II. SUB-CONTRACTINGIn the event the Contractor requires the services of a sub-contractor, the Contractor shall obtain the prior written approval of (IP)for all sub-contractors. The Contractor shall be fully responsible for all work and services performed by its sub-contractors andvendors, and for all acts and omissions of such sub-contractors and vendors. The approval of (IP) of a sub-contractor shall notrelieve the Contractor of any of its obligations under this Contract. The terms of any sub-contract shall be subject to and conformwith the provisions of this contract.

III. OBLIGATIONSThe Contractor shall neither seek nor accept instructions from any authority external to (IP). Contractors may not communicate atany time to any other person, government or authority external to (IP) any information known to them by reason of theirassociation with the (IP) which has not been made public, except in the course of their duties or by authorisation of the (IP): norshall Contractors at any time use such information to private advantage. These obligations do not lapse upontermination/expiration of their agreement with (IP).

IV. ACCEPTANCE AND ACKNOWLEDGEMENTNo Contract shall become effective and no Contract shall exist until (IP) has received from the Contractor written acceptance ofthe conditions which govern this Contract .on the Acknowledgement Copy of the Contract.

V. TAX EXEMPTIONSection 7 of the Convention on the Privileges and Immunities of the United Nations provides, inter alia, that the United Nations,including its subsidiary organs, is exempt from all direct taxes and customs duties in respect of articles imported or exported forits official use. Accordingly, if flow-through tax exemption privileges are obtained for UN contractors, the Contractor authorises(IP) to deduct from the Contractor’s invoices any amount representing such taxes or duties charged by the Contractor to (IP).Payment of such corrected invoiced amounts shall constitute full payment by (IP). In the event any taxing authority refuses torecognise flow-through exemption from such taxes, the Contractor shall immediately consult with (IP) to determine a mutuallyacceptable procedure.

VI. DISCOUNTSTime in connection with any cash discounts offered will be computed from the date of receipt by (IP) at the place named in thecontract of full documentation as specified by the Contract and/or annexes thereto.

VII. WARRANTYThe Contractor warrants the goods furnished under this Contract to conform to the specifications and to be free from damage anddefects in workmanship or materials. This warranty is without prejudice to any further guarantees that the Contractor provides topurchasers. Such guarantees shall apply to the goods subject to this Contract.

VIII. INSPECTIONThe duly accredited representatives of (IP) shall have the right to inspect the goods called for under this Contract at Contractor’sstores, during manufacture, in the ports or places of shipment, and the Contractor shall provide all facilitates for such inspection.(IP) may issue a written waiver of inspection at its discretion. Any inspection carried out by representatives of (IP) or any waiverthereof shall not prejudice the implementation of the other relevant provisions of this Contract concerning obligations subscribedby the Contractor, such as warranty or specifications.

IX. EXPORT LICENCEThe Contract is subject to the obtaining of any export licence or other governmental authorisation that may be required. It shallbe the responsibility of the Contractor to obtain such licence or authorisation. (IP) may, at its discretion, use its best endeavours toassist.

X. OFFICIALS NOT TO BENEFITThe Contractor represents and warrants that no official of (IP) has been, or shall be, offered by the Contractor any direct orindirect benefit arising from this Contract or the award thereof. The Contractor agrees that breach of this provision is breach of anessential term of this Contract.

XI. FORCE MAJEUREForce Majeure shall mean Acts of God, laws or regulations, industrial disturbances, acts of the public enemy, civil disturbances,explosions and any other similar cause of equivalent force not caused by, nor within the control of, either party and which neitherparty is able to overcome. As soon as possible after the occurrence of the Force Majeure, and within not more than fifteen (15)days, the Contractor shall give notice and full particulars in writing to (IP) of such Force Majeure. If the Contractor is therebyunable, wholly or in part to perform his obligations and meet his responsibilities under this Contract, (IP) shall then have the rightto cancel the Contract by giving, in writing, seven (7) days notice of termination to the Contractor.

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XII. DEFAULTIn case of default by the Contractor, including, but not limited to, failure or refusal to make deliveries within the limit specified,(IP) may procure the goods or services from other sources, and hold the Contractor responsible for any excess cost occasionedthereby. Furthermore, (IP) may, by written notice, terminate the right of the Contractor to proceed with deliveries or such part orparts thereof as to which there has been default.

XIII. REJECTIONIn the case of goods or services purchased based on specifications or scope of works, (IP) shall have the right to reject the goodsor services or any part thereof if they do not conform to specifications or the scope of works.

XIV. BANKRUPTCYShould the Contractor be adjudged bankrupt, or should the Contractor make a general assignment for the benefit of its creditors,or should a receiver be appointed on account of the Contractor’s insolvency, (IP) may under the terms of this Contract, terminatethis Contract forthwith by giving the Contractor written notice of such termination.

XV. AMENDMENTSNo change in or modification of this Contract shall be made except by prior agreement between the Procurement Manager of (IP)at (place), and the Contractor.

XVI. ASSIGNMENTSThe Contractor shall not assign, transfer, pledge or make other disposition of this Contract or any part thereof or of any of theContractor’s rights, claims or obligations under this Contract except with the prior written consent of (IP).

XVII. INDEMNIFICATION

The Contractor agrees to indemnify, hold and save (IP) harmless and defend at its own expense (IP), its officers, agents andemployees from and against all suits, claims, demands and liability of whatever nature or kind, including costs and expensesthereof and liability arising therefrom, with respect to, arising from or attributable to acts or omissions of the Contractor or itsemployees or sub-contractors in or relating to the performance of this Contract. This provision shall extend to, but shall not belimited to, claims and liability in the nature of product liability claims.

(IP) will promptly notify the Contractor of any such suit, claim, proceeding, demand or liability within a reasonable period of timeafter having received written notice thereof, and will reasonably co-operate with the Contractor, at the Contractor’s expense, inthe investigation, defence or settlement thereof, subject to the privileges and immunities of (IP).

The Contractor shall not permit any lien, attachment or other encumbrance by any person or entity to remain on file in any publicor official office or on file with (IP) against any monies due or to become due for any work done or materials furnished under thisContract, or by reason of any other claim or demand against the Contractor.

XVIII. DISPUTES - ARBITRATIONAny claim or controversy arising out of or relating to this or any Contract resulting herefrom, or to the breach, termination orinvalidity thereof, shall be, unless settled amicably through negotiation, submitted to arbitration in accordance with (IP tospecify).

XIX. USE OF NAME, EMBLEM OR OFFICIAL SEALUnless authorised in writing by (IP), the Contractor shall not advertise or otherwise make public the fact that he is a contractor to(IP) and/or UNHCR and/or the United Nations, or use the name, emblem or official seal of (IP) and/or UNHCR and/or the UnitedNations or any abbreviation of the name of (IP) and/or UNHCR and/or United Nations for advertising purposes or for any otherpurposes.

XX. NOTICEService of any notice shall be deemed to be good if sent by registered mail, fax or by cable to the addresses of both parties, set outin the heading of this Contract.

XXI. LIQUIDATED DAMAGES

Late delivery, or dispatch outside the agreed schedule, shall be subject, without notice, to an assessment of liquidated damagesequivalent to 0.1 percent of the Contract value per day or part thereof. The assessment will not exceed 10 percent of the Contractvalue. (IP) has the right to deduct this amount from the Contractor’s outstanding invoices, if any. This remedy is withoutprejudice to any others that may be available to (IP), including cancellation, for the Contractor’s non-performance, breach orviolation of any term or condition of the Contract.

Acceptance of goods delivered late shall not be deemed a waiver of (IP)’s rights to hold the Contractor liable for any loss and/ordamage resulted therefrom, nor shall it act as a modification of the Contractor’s obligation to make future deliveries in accordancewith the delivery schedule.

XXII. ANTI-PERSONNEL MINESThe Contractor guarantees that it is not engaged in the sale or manufacture, either directly or indirectly, of anti-personnel mines orany components produced primarily for the operation thereof. Any breach of this representation and warranty shall entitle (IP) toterminate this Contract immediately upon notice to the Contractor, at no cost to (IP).

XXIII. CHILD LABOUR64

The Contractor represents and warrants that neither it, nor any of its vendors is engaged in any practice inconsistent with therights set forth in the Convention on the Rights of the Child, including Article 32 thereof, which, inter alia, required that a childshall be protected from performing any work that is likely to be hazardous or to interfere with the child’s education, or to beharmful to the child’s health and physical, mental, spiritual, moral or social development Any breach of this representation andwarranty shall entitle (IP) to terminate this Contract immediately upon notice to the Contractor, at no cost to (IP).

XXIV. PRIOR NEGOTIATIONS SUPERSEDED BY CONTRACTThis Contract supersedes all communications, representations, arrangements, negotiations, requests for proposals and proposalsrelated to the subject matter of this Contract.

XXV. TERMINATION OF CONTRACT

Either party may cancel this Contract before the expiry date of the Contract by giving notice in writing to the other party. Theperiod of notice shall be five days in the case of contracts for a total period of less than two months or fourteen days in the case ofcontracts for a longer period.

In the event of the Contract being terminated prior to its due expiry date in this way, the Contractor shall be compensated on a prorata basis for no more than the actual amount of work performed to the satisfaction of the (IP). Additional costs incurred by the(IP) resulting from the termination of the Contract by the Contractor may be withheld from any amount otherwise due to theContractor from the (IP).

XXVI. ASSIGNMENT OF PERSONNELThe Contractor shall not assign any persons other than those accepted by the (IP) for work performed under this Contract.

XXVII. INSURANCEThe Contractor shall provide and thereafter maintain for the duration of this Contract and any extension thereof all appropriateworkmen’s compensation insurance or its equivalent with respect to its employees to cover claims for personal injury and death inconnection with this Contract. The Contractor shall, upon request, furnish proof to the satisfaction of the (IP), of such liabilityinsurance. The Contractor shall further provide such health and medical insurance for its agents or employees, as the Contractormay consider advisable.

XXVIII. OVERRIDING CLAUSEIn the event of any conflict or inconsistencies between these Conditions of Service - Contractors or any other document whichforms part of the Contract, these Conditions shall prevail except where they have been amended (by specific reference to therelevant clause and paragraph of these Conditions) as provided for herein.

XXIX. PAYMENT INSTRUCTIONS(IP)’s normal terms are payment by bank transfer within 30 days after receipt of invoice in order.

Invoices are to be sent to the following address:(IP)(address)

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