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UNITED NATIONSPROCUREMENT MANUALDEPARTMENT OF OPERATIONAL SUPPORTOFFICE OF SUPPLY CHAIN MANAGEMENTPROCUREMENT DIVISIONREF. NO.: DOS/2020.930 JUNE 2020

PrefaceThe Procurement Manual details the UN Secretariat’s (UN) procurement procedures and processes andprovides further guidance for carrying out procurement activities for the UN effectively and efficiently incompliance with the UN’s Financial Regulations and Rules, and other applicable administrative issuances,such as the Review Committee on Contracts ST/AI (ST/AI/2011/8).This document is available online at manual. Ithas been published in electronic format to limit the use of paper, ink, and transport.The Procurement Division in the Office of Supply Chain Management, Department of Operational Supportwill update this Manual from time to time.DOS/2020.09 United Nations Procurement Manual1

Table of ContentsPreface .11.Introduction . 101.1Purpose, Application and Structure . 101.2Update and Maintenance . 101.3Procurement Framework . 101.4Procurement Principles and Client Centricity . 111.4.1Best Value for Money . 111.4.2Fairness, Integrity and Transparency. 121.4.3Effective International Competition . 121.4.4Best Interest of the United Nations . 131.4.5Client Centricity . 131.52.Ethical Standards . 131.5.1Standards of Conduct . 131.5.2Conflict of Interest . 141.5.3Ethical Behavior of Vendors. 16Organization of Procurement . 172.1Overview of the Procurement Process. 172.1.1Definition of Procurement . 172.1.2Outline of the Procurement Process . 172.1.3Category Management . 182.2Responsibilities of Organizational Units and Key Roles for the Procurement Process . 192.3Procurement Official . 202.4Requisitioner . 212.5Procurement Approving Authority . 222.6Procurement Authority . 222.6.1Delegation of Authority . 222.6.2Exercise of DOA. 232.6.3Procuring Agent . 232.6.4Local Procurement Authority (LPA) . 232.7Delegation for Amendments . 262.7.1Increase of the NTE Subsequent to Review Committee (20% Rule) . 262.7.2Extension of Duration of a Contract Subsequent Review Committee (8-Month Rule) . 272.7.3Contract Awards . 27DOS/2020.09 United Nations Procurement Manual2

2.7.43.2.8Accountability . 272.9Segregation of Duties . 28Vendor Registration and Management. 303.1Registration in UNGM . 303.1.2Synchronization in UMOJA . 313.1.3Overview of Registration Levels . 313.1.4Criteria for Vendor Registration . 32Vendor Management . 353.2.1Evaluation of Vendor Registration Applications . 353.2.2Vendor Registration Maintenance and Updating of Vendor Documentation. 353.2.3Updating of Vendor Information . 363.3Vendor Review Committee . 363.4Review by the Vendor Review Committee . 373.5Vendor Sanctions. 383.6Electronic Special Approval Committee (e-SAC) . 39Demand Planning, Acquisition Planning, Procurement Strategy and Requirements Definition . 414.1Demand Planning and Acquisition Planning. 414.2Procurement Strategy . 424.3Procurement Planning and Source Selection Plan . 424.4Requirements Definition . 444.4.1The Purpose of Requirements Definition . 454.4.2Characteristics of Well-Defined Requirements . 464.4.3Technical Specifications . 474.4.4Terms of Reference (TOR) . 474.4.5Statement of Work (SOW) . 484.55.Vendor Registration. 303.1.13.24.Calculation of Cumulative Amounts for Assessment of Required DOA . 27Shopping Cart . 48Sourcing . 495.1Sourcing of Vendors . 495.2Market Research . 495.3Advertisement for Business Opportunities . 505.4Request for Information (RFI). 515.5Request for Expression of Interest (REOI) . 515.6Pre-Qualification of Vendors . 52DOS/2020.09 United Nations Procurement Manual3

6.5.7Creation of Lists of Invitees . 535.8Approval of List of Invitees . 535.9Amendment of List of Invitees . 53Solicitation . 556.1Overview. 556.2Competition . 556.2.1Effective International Competition . 556.2.2Special Considerations for List of Invitees . 566.2.3Risk of Collusion . 566.3 Solicitation Methods . 566.3.1Formal Methods and Informal Methods . 566.3.2Low Value Acquisition (LVA) . 576.3.3Request for Quotation (RFQ) . 606.3.4Invitation to Bid (ITB) . 616.3.5Request for Proposal (RFP) . 616.4Solicitation Documents. 646.4.1Overview . 646.4.2Letter of Invitation . 656.4.3Annex A: Acknowledgment Letter . 676.4.4Annex B: Scope of Work/Requirements . 676.4.5Annex C: Special Instructions and Evaluation Criteria . 686.4.6Evaluation Criteria (i.e., Part of Annex C) . 726.4.7Requisite Forms/Schedules for Bidders . 766.4.8Bid/Advance Payment/Performance Security Form and Requirements . 766.4.9Form of Contract and UN General Conditions of Contract. 786.5Invitation of Vendors . 786.6Amendments to Solicitation Documents . 796.7Cancellation of the Solicitation Process . 806.8Direct Contracting Under Sole Source . 806.9Solicitation of Offers Against LTAs. 816.10 Communication with Vendors . 816.11 Exceptions to Formal Methods of Solicitation . 826.11.1 No Competitive Marketplace. 826.11.2 Fixed Prices or Rates . 826.11.3 Proprietary Product or Service . 82DOS/2020.09 United Nations Procurement Manual4

6.11.4 Previous Determination or need for Standardization . 836.11.5 Cooperation . 836.11.6 Identical Requirements. 846.11.7 No Satisfactory Results from Previous Formal Methods of Solicitation . 846.11.8 Real Estate . 846.11.9 Exigency . 856.11.10 Services Cannot Be Evaluated Objectively. 856.11.11 Formal Methods Will Not Produce Satisfactory Results. 856.11.12 Below Monetary Threshold . 867.Management of Submissions . 877.1Tender Opening Committee . 877.2Receipt and Safeguarding of Submissions. 877.3Receipt and Safeguarding of Submissions Delivered by Hand, Courier or Mail. 887.4Receipt and Safeguarding of Facsimile Submissions . 887.5Receipt and Safeguarding of E-tendering or E-mail Submissions . 887.6Modification of Submissions . 897.7Withdrawal of Submissions . 897.8Modification or Withdrawal of Submissions After Closing . 907.9Late Submissions . 907.10 Unsolicited Submissions . 917.11 Opening and Recording of Submissions . 917.12 Attendance at Tender Openings . 917.13 Opening of Bids (ITBs) . 927.14 Opening of Proposals (RFPs). 927.15 Rejection of Submissions . 937.16 Post-Opening of Bids . 937.17 Post-Opening of Proposals . 937.18 Other Post-Opening Procedures . 938.Evaluation of Submissions . 958.1Overview. 958.2Evaluation Committees . 958.3Evaluation Criteria . 978.4Evaluation Methodologies. 978.4.1Lowest Priced, Technically Acceptable Offer. 978.4.2Lowest Priced, Substantially Conforming Bid . 98DOS/2020.09 United Nations Procurement Manual5

8.4.3Cumulative/Weighted Analysis. 988.5Preliminary Screening. 998.6Technical Evaluation . 1008.7Financial Evaluation . 1008.8Further Aspects of Evaluation . 1028.8.1Clarifications from Vendors . 1028.8.2Material Deviations . 1038.8.3Apparent Errors in Price . 1048.8.4Abnormally Low Offers or Submissions . 1048.8.5Evaluation by Lots . 1058.8.6Review of Offers Received in Situations of Direct Contracting or Sole Sourcing . 1058.8.7Complaints and Representations. 1058.8.8Indications of Potential Proscribed Practices . 1058.8.9Best and Final Offer (BAFO) . 1078.9Negotiations . 1098.9.1Negotiations in Case of Sole Source . 1108.9.2Negotiation Strategy . 1108.10 Final Evaluation and Recommendation for Award. 1109.Review by Committees on Contracts . 1129.1Mandate of Committee on Contracts . 1129.2Thresholds for the Headquarters Committee on Contracts (HCC). 1129.3Thresholds for Local Committees on Contracts . 1139.4Submission to Review Committees on Contracts. 1149.5Facilitation of the Review by the HCC/LCC . 1169.6Ex Post Facto Presentations to Review Committees . 11610. Awards. 11810.1 Award and Finalization . 11810.1.1 Prototype Inspections . 11810.2 Vendor Notification, Debriefing and Protest. 11910.2.1 Posting of Awarded Contracts . 11910.2.2 Debrief Procedures . 12010.2.3 Award Review Board. 12111. Contract Finalization and Issuance Contractual Instruments . 12211.1 Contract Finalization and Issuance . 12211.1.1 Contract Preparation . 122DOS/2020.09 United Nations Procurement Manual6

11.1.2 Letter of Intent. 12211.1.3 Contract Finalization Discussions with Vendors . 12211.1.4 Advance or Progress Payments . 12311.2 Performance Securities . 12311.3 Signature, Issuance and Documentation. 12411.4 Standard Contract Elements. 12511.4.1 Instrument of Agreement . 12511.4.2 General Conditions of Contract (UNGCC) . 12611.4.3 Technical Specifications, TOR, SOW . 12711.5 Purchase Order (PO) . 12711.6 Long-Term Agreement (LTA) . 12711.6.1 Benefits and Risks of Establishing LTAs . 12811.6.2 Types of LTAs . 12911.6.3 Establishment of a New LTA . 13011.6.4 Duration of LTAs . 13011.6.5 Call-Off Orders Against an LTA . 13011.7 Blanket Purchase Order. 13111.8 Call-Off Orders Against a BPO . 13212. Logistics . 13312.1 Aviation & Other Transport . 13312.1.1 Air Transportation Services . 13312.1.2 Air Operator Vendor Registration (AOVR) . 13312.1.3 Short-Term Air Charter . 13312.1.4 Long-Term Air Charter . 13312.1.5 Military Aviation . 13412.2 Freight Forwarding & Third-Party Logistics (3PL) . 13412.3 Strategic Movements – Contingent Owned Equipment (COE) . 13512.4 Strategic Movements – UN Owned Equipment (UNOE) . 13512.5 Incoterms. 13612.6 Global Cargo Insurance . 13612.7 Goods Inbound to UNHQ. 13713. Contract Management and Contract Administration . 13813.1 Overview. 13813.1.1 Contract Management. 13813.1.2 Contract Administration . 138DOS/2020.09 United Nations Procurement Manual7

13.2 Vendor Performance Evaluation . 13913.3 Dispute Resolution . 14113.4 Payments . 14213.4.1 Third-Party Payments . 14313.4.2 Taxes . 14313.4.3 Advance Payments. 14313.5 Amendments, Extensions and Renewal .

The Procurement Division in the Office of Supply Chain Management, Department of Operational Support will update this Manual from time to time. DOS/202