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Catholic Relief Services Procurement Manual

Effective Date: October 1st, 2016

CRS location where this manual is being utilized: _____________________________________________

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Since 1943, Catholic Relief Services has held the privilege of serving the poor and disadvantage overseas. Without regard to race, creed or nationality, CRS provides emergency relief in the wake of natural and man-made disasters. Through development projects in fields such as education, peace and justice, agriculture, microfinance, health and HIV and AIDS, CRS works to upload human dignity and promote better standards of living. CRS also works throughout the United States to expand the knowledge and action of Catholics and others interested in issues of international peace and justice. Out programs and resources respond to the U.S. Bishops’ call to live in solidarity – as one human family – across borders, over oceans, and through difference in language, culture and economic condition.

Published in 2015 by: Catholic Relief Services 228 West Lexington Street Baltimore, MD21201-3414 USA

Written by: Linda Olale

Edited by: Ashley Rytter Kline

© 2015 Catholic Relief Services. Any reproduction, translation, derivation, distribution or other use of this work is prohibited without the express permission of Catholic Relief Services.

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Acknowledgements

The following CRS staff participated in the 2014 Casablanca writeshop for the manual and

provided invaluable contributions to the development of this resource.

Kwame Akangah Kwasi Attuahene-Mensah Patrick Daniere Ousmane Dembele Mamadou Diop Martin Hartney Ebrima Jawneh

Irène Youmbi Kemmegne Barry Ridgeway Ramatoulaye Seck Sene Ingrid Some Victor Tsuma Sarah Weber

Thank you to the many staff members who provided excellent input and feedback, including:

Zongo Abdoulaye Sharon Abraham-Gordon Raed Aburdene Hodali Deborah Achol Dorisbel Acosta Santos Ahmad Wali Ahmadi Abduelrahim Ahmed Getenet Alemayehu Morie Richardson Bangura Lisa Bell Hassan Benbaha Ramatou Boukari Justin Brownen Talent Bunya Hussein Burhan Randa Canawati Maureen Capps Kambeu Chipimo Jolene Coachy Melkamu Dereb Ty Dexter Michele Dockery Amosa Espiritu Cecilia Fraga Amule Goja Angela Grigorian Christeen Hanna

Hannah Macapeges Miguel Mahfoud Noureldin Maryoud Elisabeth Mendes Atlibachew Moges Ruth Navaya Msiska Rose Emanuel Mugashe Mohammed Mukhaimar Carol Mukiri Syon Niyogi Kingstone Njari Athanas Ntaganyamba Samson Nzayisenga Sunday Obayelu Alice Obeng-Sintim Erick Okoth Odongo Ron Otteson Brohs Ou Eunice Ambiyo Paul Mathieu Ramiaramanana Haingotiana Raneboson Christine Rodecker Andrea (Drew) Rogers Tony Russell Reena Santosh John Service Darko Simeunovic

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Sergey Hayrapetyan Luis Hurtado Fanny Nathalie Irangabiye Lucy Kachaka Yemane Kahssay Hala Khoury Marie-Ange Kilima Richard Kocik Lisa Kuennen-Asfaw Abdoul Aziz Laye Scott LeFevre Mathieu Lompo

Nebiyu Solomon Cyrille Somboro Chris Stanley Hong Dao Thi Thuy Nguyen Thu Bebel Tonguino M. Mme Traore Rachel Vas Christopher Vaughn Sophat Vourng Charles Wambua Matthew Wingerter John Worthington Irene Kemmegne Youmbi

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FOREWORD

The CRS Procurement Manual is a core set of guiding polices created by and for the CRS community.

Financial procure-2-pay (P2P) transactions require a significant investment of our human and

financial resources and are a core responsibility of CRS’ operational staff. They can also be high risk

areas for international nongovernmental organizations, therefore requiring formal business processes

and systems to mitigate any potential risk. Well-designed business processes also set the foundation

for compliance with the many donor regulations CRS must adhere to.

When performing financial transactions, global engagement and access to comprehensive resources

and guidance are critical. The first CRS procurement manual was released in the 1990s. The next

version was released in May 2003. In June 2013, we released the “core” procurement manual which

replaced all of the individual, regional office and country program manuals. This new manual will

serve as the sole procurement guide for the entire agency, aligning with CRS’ One Agency strategic

framework.

This manual is more comprehensive than previous versions, including many useful templates and

information on specific donor regulations, CRS business processes and best practices. With the release

of this manual, we are formalizing the business processes related to services and consultant services

for the first time in CRS history, globally.

We would like to thank all CRS staff at headquarters and around the world who worked to develop this

very important resource over the last three years. Their high level of effort reflects their dedication to

making a difference in the lives of the people CRS serves.

With respect and appreciation,

Mark D. Palmer – Chief Financial Officer Barry A. Ridgeway – Director of Global Procurement

_____________________________________________ ___________________________________________________________

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PREFACE

In 2013, the CRS Procurement Manual was updated to include the formalization of business processes

for goods. At that same time, we made a conscious effort to respond to the new agency strategy that

emphasized our “One Agency” concept. In line with the new strategy, the Global Procurement

Department eliminated all of the individual country program and region procurement manuals and

released one ‘core’ manual. Based on the needs of the CRS community and increased funding from

institutional donors, we updated the manual to help us better support our signature program areas —

emergencies, health, and agriculture — and ensure compliance with all donor regulations. This new

version also formalizes the business processes for both services and consultant services.

This table highlights content carried over from the 2013 manual and new, noteworthy content in the

manual published in 2015.

2013 ‘Core’ Procurement Manual Revised 2015 Procurement Manual

Formalized business process for goods Formalized business process for services

Eliminated separate procurement manuals Formalized business process for consultants

Created one “core” agency wide procurement

manual

Issued comprehensive ‘One Agency’ manual

Identified sanctioned countries Templates for requests for proposals, requests for

quotes, and procurement plans

Implemented Patriot Act Bridger XG compliance

procedures

Guidance on performing different types of

procurement tenders (international competitive

bidding, national competitive bidding, restricted

tender, and sole source procurement).

Guidance on creating solicitation documents

Formal bid committee guidance

Health products procurement

Incoterms

Request for Goods and Services template

Approved Supplier List and Policy

Sole Source Authorization Form

Emergency manual and waiver request template

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Table of Contents

Acknowledgements ............................................................................................................................... 3

FOREWORD .............................................................................................................................................. 5

PREFACE .................................................................................................................................................... 6

Acronyms ............................................................................................................................................... 11

Glossary of Terms ............................................................................................................................... 12

Section 1: Introduction ..................................................................................................................... 14 1.1 Purpose of the Procurement Manual ..................................................................................................... 14

1.2 When to use the Procurement Manual .................................................................................................. 14

1.3 CRS Procurement Principles ..................................................................................................................... 14

1.4 Authorization of Procurement Actions ................................................................................................. 15

Purchase Requisition ........................................................................................................................................................ 15

Quote Response and Internal Approvals Prior to Commitments ................................................................... 15

Commitments ...................................................................................................................................................................... 16

1.5 Ethical Standards in Procurement .......................................................................................................... 16

1.6 Conflict of Interest ........................................................................................................................................ 16

1.7 Confidentiality ............................................................................................................................................... 16

1.8 Anti-Fraud and Corruption Compliance ............................................................................................... 17

Credits and Donations ...................................................................................................................................................... 18

Reporting concerns about fraud and corruption .................................................................................................. 18

Section 2: Roles and Responsibilities in Procurement .......................................................... 19 2.1 The Procurement Department ................................................................................................................. 19

2.2 Global Procurement Department Structure ....................................................................................... 20

2.3 Description of Roles and Responsibilities for Procurement Positions ..................................... 22

Director of Global Procurement ................................................................................................................................... 22

Procurement Manager ..................................................................................................................................................... 22

Procurement Agent ........................................................................................................................................................... 23

Procurement Buyer ........................................................................................................................................................... 23

Procurement Officer ......................................................................................................................................................... 24

Procurement Assistant .................................................................................................................................................... 24

2.4 Segregation of Duties ................................................................................................................................... 24

Section 3: The Procure-2-Pay Life Cycle ..................................................................................... 27 3.1 Procurement Needs Assessment ............................................................................................................. 28

Reconciliation of Procurement Needs and Available Budget .......................................................................... 28

Market Research ................................................................................................................................................................. 28

3.2 Procurement Planning ................................................................................................................................ 29

3.3 Procurement Planning for Health Products ........................................................................................ 29

3.4 Contents of a Procurement Plan .............................................................................................................. 30

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3.5 Donor Approval Requirements for Procurement Plans ................................................................. 30

3.6 Approved Supplier Lists ............................................................................................................................. 31

3.7 Pre-qualification of Bidders ...................................................................................................................... 32

Section 4: Developing Specifications for Goods and a Scope of Work for Services ..... 34 4.1 Developing Specifications for Goods ..................................................................................................... 34

4.2 Key Considerations in Preparing Specifications for Goods ........................................................... 34

4.3 Developing Specifications for Health Products.................................................................................. 35

Pre-qualification of Health Products .......................................................................................................................... 36

World Health Organization and Donor Prequalification ................................................................................... 36

Consideration of National and International Standards .................................................................................... 36

4.4 Developing Specifications for Procurement of Pharmaceutical Products ............................... 37

4.5 Developing Specifications for Health Equipment ............................................................................. 37

4.6 Specifications Checklist .............................................................................................................................. 38

4.7 Designing a Scope of Work ........................................................................................................................ 38

Section 5: Selection of a Procurement Method ....................................................................... 40 5.1 International Competitive Bidding/Open Tender ............................................................................ 40

5.2 National Competitive Bidding .................................................................................................................. 41

5.3 Limited/Restricted Bidding ...................................................................................................................... 42

5.4 Direct Procurements Below $1,000 ....................................................................................................... 43

5.5 Waiver of Competition ................................................................................................................................ 44

Sole Source Procurement/Direct Contracting ....................................................................................................... 44

5.6 Donor Requirements for Competition in the Procurement Process .......................................... 45

USG Requirements ............................................................................................................................................................. 45

The Global Fund Requirements.................................................................................................................................... 47

UN Requirements ............................................................................................................................................................... 47

The World Bank Requirements .................................................................................................................................... 48

DFID Requirements ........................................................................................................................................................... 48

5.7 Thresholds for Bid Committee, Tender Type, and Type of Solicitation Document .............. 48

Section 6: Preparation of Solicitation Documents .................................................................. 50 Types of Solicitation Documents ................................................................................................................................. 50

Request for Proposals ...................................................................................................................................................... 51

Request for Quotes ............................................................................................................................................................ 51

Oral RFP or RFQ .................................................................................................................................................................. 52

Request for Expressions of Interest ........................................................................................................................... 53

6.1 Contents of Solicitation Documents ....................................................................................................... 53

6.2 Instructions to Bidders ............................................................................................................................... 53

6.3 Method of Evaluation and Defining Evaluation Criteria ................................................................. 55

6.4 Sample Contract and Due Diligence Requirements .......................................................................... 56

6.5 Logistical Arrangements ............................................................................................................................ 56

Transportation and Delivery of Goods ...................................................................................................................... 56

6.6 Bid Security and Bonding Requirements ............................................................................................. 57

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6.7 Finalization of Solicitation Documents ................................................................................................. 57

6.8 Notification and Advertising ..................................................................................................................... 58

6.9 Clarifications/Bid Conference .................................................................................................................. 58

6.10 Amendments to Solicitation Documents ........................................................................................... 59

Section 7: Receiving and Opening of Bids .................................................................................. 60 7.1 Creation of a Bid Committee ..................................................................................................................... 60

7. 2 Receiving and Safeguarding of Bids ...................................................................................................... 60

Bid Withdrawal ................................................................................................................................................................... 61

Bid Amendment .................................................................................................................................................................. 61

Late Bids ................................................................................................................................................................................ 61

7.3 Bid Opening ..................................................................................................................................................... 61

Public Bid Opening ............................................................................................................................................................ 62

Section 8: Evaluation of Bids ........................................................................................................... 63 Developing an Evaluation Plan ..................................................................................................................................... 63

Preliminary Evaluation of Bids..................................................................................................................................... 63

8.1 Technical Evaluation of Bids ..................................................................................................................... 64

Technical Evaluation of Goods ..................................................................................................................................... 64

Technical Evaluation of Proposals for Services ..................................................................................................... 64

8.2 Financial Evaluation of Bids ...................................................................................................................... 65

8.3 Requirements and Best Practices for Bid Evaluations .................................................................... 66

8.4 Bid Clarification Requests ......................................................................................................................... 67

8.5 Documentation of Evaluation Results ................................................................................................... 67

8.6 Actions to Avoid During Bid Evaluation ............................................................................................... 67

8.7 Bid Analysis and Evaluation Report ....................................................................................................... 68

8.8 Conducting Bidder Due Diligence ........................................................................................................... 68

Operational Due Diligence .............................................................................................................................................. 68

Anti-Terrorism Vetting – Bridger XG ......................................................................................................................... 69

Office of Foreign Assets Control: Sanctions Programs and Information ..................................................... 70

Rejection of all Bids and Cancellation of Procurement Process ..................................................................... 70

8.9 Selection of the Winning Bidder .............................................................................................................. 70

Section 9: Procurement of Individual Consultant Services .................................................. 71 9. 1 Consultants ..................................................................................................................................................... 71

9.2 Contracting of Public Officials to Provide Consulting Services .................................................... 71

Section 10: Procurement during Acute Emergencies ............................................................ 73

Section 11: Procurement of Construction Services ................................................................ 78

Section 12: Donor Approval Requirements for Award .......................................................... 79 12.1 USAID Requirements................................................................................................................................. 79

12.2 Global Fund Requirements ..................................................................................................................... 79

12.3 DFID Requirements ................................................................................................................................... 80

12.4 Requirements of UN Agencies ................................................................................................................ 80

Section 13: Contract Negotiation ................................................................................................... 81

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13.1 Contract Preparation ................................................................................................................................ 82

13.2 Types of Contract ........................................................................................................................................ 82

Firm-fixed-priced Contracts .......................................................................................................................................... 83

Cost-reimbursement Contracts .................................................................................................................................... 83

Time-and-materials Contracts ...................................................................................................................................... 83

13.3 Contracting Instruments ......................................................................................................................... 84

Purchase Orders ................................................................................................................................................................. 84

Blanket Purchase Agreements ...................................................................................................................................... 84

Indefinite Quantity Contracts........................................................................................................................................ 85

Consulting Agreements ................................................................................................................................................... 85

Contract Modifications ..................................................................................................................................................... 85

Section 14: Receipt, Inspection and Acceptance of Goods .................................................... 87 14. 1 Receipt and Inspection of Goods .......................................................................................................... 87

Special Requirements ....................................................................................................................................................... 87

Discrepancies in Delivery Documents ....................................................................................................................... 88

Discrepancies in the Quantity of Goods .................................................................................................................... 88

Defects in Quality ............................................................................................................................................................... 89

14.2 Receipt and Acceptance of Delivery of Services .............................................................................. 89

14.3 Supplier Monitoring .................................................................................................................................. 90

Section 15: Payment of Suppliers .................................................................................................. 91 15.1 Payments in Country Programs/Regions .......................................................................................... 92

Payment for Goods and Services ................................................................................................................................. 92

15.2 Payments in Headquarters ..................................................................................................................... 92

Section 16: Contract Closeout ......................................................................................................... 93 16.1 Lessons Learned ......................................................................................................................................... 93

Section 17: CRS Specific Office Location Appendix ................................................................. 94

References ............................................................................................................................................. 95

Resources .............................................................................................................................................. 96

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Acronyms

ASL: approved supplier list

BAFO: best and final offer

CR: country representative

CRS: Catholic Relief Services

DFID: Department for International Development (UK)

DAP: Delivery at Place (Incoterms®)

DAT: Delivery at Terminal (Incoterms®)

ECTN: electronic cargo tracking note

EOI: expression of interest

EU: European Union

FCPA: Foreign Corrupt Practices Act (U.S.)

The Global Fund: Global Fund to Fight AIDS, Tuberculosis and Malaria

HoOps: head of operations

HR: Human Resources Department

Incoterms®: International Commercial Terms

ISO: International Organization for Standardization

ITB: invitation to bid

LLINS: long-lasting insecticidal nets

OFAC: Office of Foreign Assets Control

PO: purchase order

P2P: procure-2-pay

PSM: Procurement and supply management

RFQ: Request for quote

RFP: Request for proposal

SOW: scope of work

SOP: Standard operating procedure

USAID: United States Agency for International Development

USG: United States Government

UN: United Nations

VFM: value for money

WHO: World Health Organization

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Glossary of Terms

Authorized individual: a person authorized by CRS to approve the purchase of goods or services.

Bid/tender/proposal/quotation: documents submitted by potential bidders and consultants in

response to an ITB, RFP, or RFQ process. The terms are used interchangeably throughout this manual.

Both bids and proposals are referred to as “bid”.

Bribe: persuade someone to act in one’s favor, typically illegally or dishonestly, through a gift of

money or other inducement.

Budget holders: CRS staff who are authorized to approve requisitions for goods and services.

Construction: for purposes of this manual, includes construction, alteration, repair (including

dredging and excavation), improvements, renovation, alteration and refurbishment of buildings,

structures, or other real property.

Consultant: any person who is not a CRS employee that provides a service to CRS and is paid for this

service.

Corrupt practice or corruption: offering, giving, receiving or soliciting, directly or indirectly,

anything of value to influence the actions of another party in the procurement or selection process or

in contract execution.

Cost driver: a factor that influences or contributes to the expense of certain operations or goods.

Delivery at Place: an Incoterm® which means the seller is responsible for door-to door delivery. CRS

is responsible for any custom clearance and import taxes, if applicable.

Delivery at Terminal: an Incoterm® which means the seller is responsible for delivery to the

terminal at country of import. CRS is responsible for custom clearance, import taxes, and delivery from

terminal to the CRS office/warehouse.

Gift in kind: any service provided to CRS that is not remunerated.

Employee: any person who has a part-time, full-time, intermittent, continuous, or fixed-term

employment relationship with CRS.

Fraudulent practice or fraud: a misrepresentation of facts in order to influence a procurement

process, selection process or the execution of a contract to the detriment of a person(s).

Global Procurement Department: the CRS Procurement Department at headquarters in Baltimore.

Goods: all commodities, equipment, vehicles, and supplies purchased by CRS.

Health products: includes pharmaceuticals; diagnostic products, microscopes and imaging

equipment; mosquito nets; and consumable/single use health products.

Invitation to bid/invitation to tender: Oral or written invitation to prospective suppliers to submit a

bid on materials or services.

Limited tender/restricted tender: is essentially an international competitive bid by direct invitation

without open advertisement. These terms are used interchangeably.

Location: CRS country office or regional office.

Procurement staff: any staff member who works in the Global Procurement Department or country

program/regional procurement department and has responsibilities for procurement of goods and

services.

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Procurement: purchasing of goods, services and works.

Procurement integrity: a procurement and/or purchasing process that is fair and competitive and in

line with CRS’ Business Code Ethics and Business Conduct and CRS’ anti-corruption compliance

program, Ethics Point.

Public official: an individual holding legislative, administrative or judicial posts; anyone carrying out a

public function for a foreign country or the country's public agencies; or an official or agent of a public

international organization.

Purchase order: a commercial document and first official offer issued by a buyer to a seller indicating

types, quantities, and agreed upon prices for products or services. Acceptance of a PO by a seller forms

a contract between the buyer and seller, so no contract exists until the PO is accepted. It is used to

control the purchasing of products and services from external suppliers.

Purchase requisition: a document generated to notify the procurement department of items to be

ordered. The purchase requisition includes the quantity, timeframe and budget number for the order.

Request for goods and services template, RFGS: a form used by a country program or region to

order goods and/or services from another country program or region.

Request for information: a standard business process used to collect written information about the

capabilities of various suppliers to inform decisions. Normally, the process follows a format that can be

used for comparative purposes. RFGS link

Request for proposal/invitation to tender/invitation to bid: the type of solicitation documents

used to request bids. Request for proposals are equivalent to invitation to tender under DFID projects

and invitation to bid under the World Bank and United Nations procurement policies. RFP's tend to be

used for services that are more complex and have a SOW associated with them.

Request for quote: primarily used for goods and services that are standardized and typically

commercially available.

Services: technical support such as utilities, freight, vehicle rentals, accommodation, travel services,

and audits provided to CRS by organizations on a contract basis. This term does not include services

provided by individual consultants.

Service provider: a company that provides organizations with consulting, legal, real estate, education,

communications, storage, processing and many other services.

Significant gift: any tangible item, service, favor, credit, or discount of value, not available to others,

that could influence actions.

Specifications: descriptions of the characteristics of a commodity or service required or desired. They

are the explicit requirement furnished with a solicitation upon which a bid is made and a PO or

contract is to be based.

Sole source procurement: when a single bidder is invited to submit a bid without the procurement

being advertised.

Vendor/supplier: any independent third party with whom CRS enters into a contract for provision of

goods or services including individuals and firms. The terms vendor and supplier will be used

interchangeably throughout this manual.

Works: engineering structures such as bridges or dams, plants, factories, or other building types.

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Section 1: Introduction

1.1 Purpose of the Procurement Manual The Catholic Relief Services Procurement Manual was developed by a team of representatives from

different departments and country programs as a guide for CRS staff who are involved in the

procurement process. The manual outlines the procurement life cycle and procedures to be used in

procurement as well as explains the responsibilities of CRS staff. The policies and procedures in this

manual provide a foundation for complete and consistent consideration of all aspects of the

implementation of the procurement life cycle.

1.2 When to use the Procurement Manual This manual can be applied to all procurement activities carried out by CRS headquarters, U.S. regional

offices, and country programs/regional offices. The processes described in this manual apply to all

procurements unless a written waiver is obtained from the director of global procurement. The

manual applies to all CRS staff and consultants who are involved in the procurement process and have

either direct or indirect interaction with vendors, manufacturers and consultants.

Situations of non-compliance or breaches of the procedures in this manual must ultimately be

reported to the director of the Global Procurement Department. Non-compliance will be dealt with in

accordance with CRS’ Code of Ethics and Business Conduct and Fraud Allegation Management Policy.

This manual is not applicable to gifts in kind received as donations from private or corporate sources

including foundations, humanitarian organizations or other institutional donors.

1.3 CRS Procurement Principles CRS aims to procure goods and services in a manner that maximizes the value of resources available

for our beneficiaries and donors worldwide; contributes to the agency’s strategic objectives; and is in

accordance with agency procurement policies and procedures, donor requirements and applicable

laws. CRS does this while concurrently providing value to our programs through procurement

processes that are fair, open and competitive.

CRS’ procurement process is based on the following principles:

a. Transparency: Open access to information helps to ensure that any deviations from fair and

equal treatment are detected very early, and makes such deviations less likely to occur. It protects the integrity of the process and the interest of the organization, stakeholders, and the public.

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b. Accountability: Employees involved in the procurement process are required to take responsibility for their actions and decisions, and ensure that they are compliant with CRS’ procurement policies and relevant donor procurement regulations.

c. Value for money: VFM helps to ensure that every procurement is economical, efficient, and

effective. VFM does not mean that CRS procures the cheapest items, but that CRS is able to procure the best quality of items at the lowest cost.

d. Timeliness: CRS employees must ensure they conduct procurement in a timely manner to

ensure efficiency. These principles were developed to ensure that CRS:

delivers high quality programs within required timelines; is accountable to our beneficiaries and compliant with donor policies and regulations; mitigates the risks relating to fraud and corruption during the procurement process; and maintains its good reputation and achieves its mission.

1.4 Authorization of Procurement Actions

Purchase Requisition

Before a requestor submits a requisition form to the Procurement Department, they should have the

budget holder and subject matter expert review and approve the request. It is important that an

accurate and comprehensive requisition is generated for every purchase. The same process should

also be used for an RFP solicitation, which is issued through a SOW instead of a requisition.

Quote Response and Internal Approvals Prior to Commitments

Each bid response submitted by suppliers to either an RFQ or RFP solicitation must go through an

approval process. The approval(s) should usually come from the authorizing official for that budget or

from a bid committee who will recommend the winning supplier(s) for approval. In addition, the

authorized CRS official must approve the actual procurement of goods, services, and consultant

services prior to issuing commitments (PO or contract signing).

CRS personnel, overseas, should refer to the Authorization Chart in Finance’s Internal Control Policy #

POL-FIN-ICS-024 for any updates or revisions to the global approval levels for commitments and

payments. CRS employees at HQ and U.S. Regional Offices should refer to HQ Expenditure

Authorization policy # POL-FIN-ICS-024.03. The limits indicated in these charts are for internal

approvals from the authorized personnel listed, which are required before a commitment is made.

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Commitments Individuals who sign for procurement commitments with external parties should have signing

authority granted in accordance with the Delegation of Signing Authority. Contact the Office of General

Counsel to request any clarifications related to signing authority. For the purposes of this manual, a

commitment is a legally binding obligation, such as a purchase order, contract, agreement, or other

obligation to pay for goods, services, and consultant services.

1.5 Ethical Standards in Procurement

As an agency which lives its mission through the moral teaching of the Church, CRS has the

responsibility to ensure that all procurement is carried out with integrity and all employees of CRS

adopt the highest standard of ethics.

Strict observance of procurement integrity procedures maximizes VFM. Procurement integrity forms

an integral part of the CRS procurement process. CRS does this through mitigation of conflict of

interest situations and ensuring that CRS employees do not engage in fraudulent or corrupt practices

during procurement.

1.6 Conflict of Interest

Conflict of interest is defined as any situation in which a bidder is given or is perceived to have been

given an unfair advantage over other bidders, as a result of a relationship or other connection to a CRS

employee involved in a procurement process. Conflict of interest can be related to a financial or

personal interest.

CRS policy is to prevent and mitigate conflict of interest situations that may arise during the

procurement process. CRS policy requires employees involved in the procurement process disclose

any perceived or actual conflict of interest situation and recuse themselves from the procurement

process.

For more information, please refer to the Conflict of Interest document: Conflict of Interest link

1.7 Confidentiality

Disclosing any non-public information related to procurement to a third party is strictly prohibited. All

procurement related information provided to CRS by bidders during the procurement process must be

treated confidentially and not be disclosed to other bidders or to any other third party. Employees

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participating in the procurement process must not disclose information related to provider quotes,

bids/proposals or other sensitive information to any co-worker without a specific business reason to

know.

1.8 Anti-Fraud and Corruption Compliance As an organization funded by the United States Government, CRS is required to adhere to the U.S.

Foreign Corrupt Practices Act. CRS also receives funding from the Department for International

Development (UK) and is thus subject to the UK Bribery Act of 2010. CRS is also required to adhere to

the anti-fraud and anti-corruption provisions of the Code of Conduct for Recipients of Global Fund

Resources.

The U.S. FCPA makes it illegal for supervisors to influence anyone with any personal payments or

rewards. The act also applies to any action by U.S. businesses, foreign corporations trading securities

in the United States, American nationals, citizens, and residents whether or not they are physically

present in the United States. The UK Bribery Act makes it a crime for a person to receive or give a

bribe.

CRS employees involved in procurement are prohibited from engaging in any form of fraudulent and

corrupt practices during the procurement process. Staff members must not accept any gift,

remuneration or favor from any individual or entity doing business with or seeking to do business

with CRS.

Certain indicators —referred to as red flags — often signal the risk of fraud and corruption in

procurement. When planning or undertaking procurement, employees must be mindful of the

following red flags:

a. Donor directed procurements: When a donor/client insists on a particular vendor, this may be an indication of a corrupt or fraudulent arrangement.

b. Influential vendors: Where research reveals that a vendor is politically connected or otherwise influential, there is a risk that a transaction with the vendor may appear improper. c. Due diligence refusals: If a vendor refuses or delays completing due diligence forms, it may be something more than a reluctance to do paperwork. Vendors who do not fully cooperate in the due diligence process must be considered suspect and disqualified from the competition.

d. Unusual vendor requests: Vendors who request special arrangements for payment or delivery must be evaluated as a potential fraud or corruption risk.

e. Corrupt environments: Corrupt transactions are more likely in some locations than in others. Where procurement occurs in a country where corruption is endemic, employees must

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be sensitive to anomalies or other indications of fraud and corruption. CRS procurement personnel must ensure that CRS’ anti-corruption policy is strictly adhered to.

Gifts

The acceptance of gifts (including entertainment and meals) from potential or current bidders may be considered corruption. In order to avoid corruption, employees should not solicit, request, accept, or agree to accept any significant gift from a bidder or prospective bidder. CRS funds cannot not be used to provide gifts to bidders or any party. Credits and Donations Any applicable credits afforded to CRS by a bidder must be applied to the donor funding the activity. All donations given to CRS by bidders or vendors must be directed to the Donor Services Department. In the country program/region this person may be the head of programming or staff that are responsible for donor relationships. Reporting concerns about fraud and corruption

CRS has instituted a confidential reporting system to allow employees and partners to report any

concerns they may have regarding fraud and corruption. Ethics Point, an independent third-party

company, administers this reporting system. Click here to access Ethics Point or copy and paste the

following URL: https://secure.ethicspoint.com/domain/media/en/gui/12748/index.html

Employees must report any red flags or fraudulent and corrupt actions that occur during the

procurement process in Ethics Point. Red flags should then be investigated. Where a red flag reveals

that there is the potential for fraud and corruption, CRS should not do business with that vendor.

CRS employees must avoid any involvement in fraudulent or corrupt practices. Any involvement by

CRS staff in fraudulent or corrupt activities may result in the staff being subject to the sanctions

indicated in the donor policies. This will be determined on a case by case basis. Employees will also be

subject to termination of their services at CRS within the confines of local labor law. Staff involvement

in fraud and corruption can expose CRS to risk of criminal sanctions and loss of business with CRS

donors. Click here for CRS’ Fraud Allegation Management Procedure or copy and paste the URL

below: https://global.crs.org/teams/EVPOverops/Policies/PRO-OOD-RSK-001%20[2].pdf

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Section 2: Roles and Responsibilities in Procurement

Procurement policies and procedures at CRS are generally managed by the Global Procurement

Department in order to provide standardization and efficiencies. Some procurement activities are the

responsibility of country programs. The sections below provide details on the roles and

responsibilities for implementing procurement at CRS.

2.1 The Procurement Department Maintaining professional relationships with all vendors is primarily the responsibility of the Global Procurement Department. Other departments within CRS may contact vendors on technical matters as needed, however they must keep the Global Procurement Department involved in the communications. The Global Procurement Department:

provides CRS staff with guidance on the procurement policies and procedures of CRS and its donors;

receives all requests related to the purchasing and prices of goods and services; handles correspondence with bidders and consultants; maintains an open line of communication with other departments for purposes of facilitating

and implementing procurement requests; carries out market research on vendors and prices of goods, commodities and services; compiles data, checks market availability, lead-times and costs; provides the requestor with timely feedback during procurement planning to help them meet

their goals and objectives; recommends procurement methods and develops solicitation documents; carries out procurement from the planning stage to the successful delivery of goods and services; coordinates the logistical aspects for each PO, including follow-up and tracking of all ongoing

procurement actions; assists in guaranteeing prompt payment to vendors according to the PO agreement; monitors vendors to ensure timely delivery of goods and services; confirms that all deliveries of goods or services are properly received and documented by

receiving officers; makes sure the proper documents are sent to country programs to coordinate customs clearance

of any imported goods or commodities; negotiates any returns or adjustments with the vendor; negotiates contracts with bidders and consultants; suggests final source, price, and delivery on a bid comparison form and submits for approval (in

conjunction with the bid committee and other departments when appropriate); and should be involved in proposal development for better budget planning outcomes.

Visiting bidder representatives should be directed to the Global Procurement Department. Problems that arise must be brought to the attention of the director for global procurement and the country representative, if appropriate.

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2.2 Global Procurement Department Structure Below is the organizational structure of the Global Procurement Department. The structure of the procurement staff within country programs varies depending on the size of the program. The country program may ask the Global Procurement Department to procure directly on their behalf or may request to procure locally. Please refer to the following links for the Global Procurement P2P Business Process Flow (Global Procurement P2P Business Process Flow); Country Program and Region Procurement P2P Business Process Flow (CP and Regional P2P Process link); the Global Procurement and CP/Regional P2P Business Process Flow (Global Procurement and CP/Regional P2P Process link);the Local Purchase Approval Form (Local Purchase Approval Form link) to use for procurements over $5,000; a list of commodities in country programs/regions exempt from headquarters review and approval regardless of requisition value(List of commodities exempt from HQ review); and a list of commodities exempt from requiring a requisition at headquarters.( HQ - list of procurements not needing a requisition)

Table 1: The Global Procurement Department Organizational Chart

Director of Global

Procurement

Procurement Agent (2)

Buyer II (2)

Procurement Manager

Procurement Manager

Table 2: Country Program Procurement Organizational Chart

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Country Representative

Head of Operations/Operations Manager

Procurement Officer

Procurement Manager

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2.3 Description of Roles and Responsibilities for Procurement Positions Director of Global Procurement

The director of global procurement oversees the development and implementation of effective global procurement systems, business processes, policies, and procedures required for all aspects of procurement compliance. Specific responsibilities include:

providing strategic direction and directing the development of global sourcing; streamlining, revising, updating, and implementing procurement policies and procedures; identifying a capable, reliable, and high quality supplier base; directing the development of automated, ERP, global procurement systems and the integration

of these systems into overall financial and managerial information systems; ensuring current global procurement procedures are promulgated and implemented agency-wide;

developing appropriate relationships with USG officials in procurement; ensuring all policies and procedures support the requirements of USG grants/contracting; supporting the efforts of Compliance/Internal Audit to review and report on procedural

compliance levels and developing strategies to enhance actual compliance levels; providing support for emergency operations to best balance resource requirements with

stewardship needs; developing training and communications materials to ensure agency staff makes optimal use of

procurement policies and systems; making recommendations and reporting key issues to enhance procurement performance, meet

donor compliance regulations, and accomplish strategic objectives; and developing and managing an operating plan and budget for the Global Procurement

Department.

Procurement Manager The procurement manager is responsible for coordinating all local and international procurement

activities. Specific responsibilities include:

assisting with hiring, training, and supervising procurement department staff; developing and maintaining detailed job descriptions for each position in the Global

Procurement Department; reviewing and managing staff performance; overseeing procurement actions and processes; participating in procurement committees as a non-voting member; overseeing the facilitation of anti-terrorism due diligence checks; ensuring adherence to CRS and donor policies, regulations and laws relating to procurement; compiling annual consolidated procurement plans for each project and reviewing them with

program staff; monitoring supplier performance for long-term contracts; recommending amendments and updates to CRS procurement procedures per CRS donor

requirements;

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informing CR of significant economic and business issues that may affect the prices of commodities and services that are usually procured by CRS; and

meeting with bidder and supplier representatives as appropriate.

Procurement Agent The procurement agent is responsible for day-to-day procurement activities. Specific responsibilities include:

reviewing purchasing requisitions for completeness and required approvals; preparing and maintaining procurement tracking reports for ongoing procurement actions; preparing solicitation documents to advertise procurement opportunities; evaluating bids and preparing and documenting bid analysis and bid evaluation results; preparing POs and consultant agreements for approval; carrying out market research to determine cost and pricing information for various goods and

services that are regularly procured by CRS; maintaining product and vendor data information; negotiating prices and contracts with vendors; communicating and meeting with representatives of potential bidders as appropriate to

discuss procurement actions as necessary; supervising procurement officers and procurement assistants; assisting with logistics such as clearing imported goods procured for CRS projects in various

countries; and carrying out due diligence checks on bidders such as anti-terrorism checks.

Procurement Buyer The procurement buyer is responsible for procurement primarily for CRS’ headquarters and regional

offices. Specific responsibilities include:

verifying authorizations and processing incoming requisitions; soliciting quotes/bids; preparing, accepting, reviewing and awarding bids for domestic and international

procurements; performing negotiations with suppliers regarding pricing, payment terms, and shipping related

costs; issuing POs on behalf of the agency; working with the Office of Legal Counsel when the specifics of a particular financial transaction

require a formal contract; searching for new sources for agency-wide goods and services; participating in the emergency response working group and support agency relief operations. making visits to CRS country programs to conduct procurement related training, visiting local

suppliers, and learning constraints that are unique to that country program;

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performing currency exchange rates conversions; monitoring supplier quality/performance for delivery schedules; meeting with suppliers, making plant visits to facilities; and providing coverage for buyers and procurement agents when required by workload or

absence.

Procurement Officer The procurement officer manages and coordinates all aspects of procurement for country programs. Specific responsibilities include:

identifying the main types of goods and services that will be needed based on the current portfolio of programs and operations;

conducting regular market assessments of best sources and prices; working with peer agencies and the private sector to identify new potential suppliers; maintaining working relationships with local suppliers; reviewing all purchase requisitions, verifying price targets, and ensuring that all specifications

and requirements are clear and that all authorizations have been obtained; ensuring that all requests for quotes clearly present all specifications and requirements; receiving and reviewing all bids and preparing quotes summary sheets; tracking the status of each procurement request and updating management and requestors

through regular procurement status reports; organizing bid committees if needed and ensuring they analyze bids in a competitive manner; coordinating with other departments to make sure purchase requisitions, supplier quote

responses, and purchase orders are complete and clear; and providing support and training on procurement management to CRS staff and partners.

Procurement Assistant The procurement assistant is responsible for the administrative duties relating to the procurement process. Specific responsibilities include:

maintaining procurement master files and records and ensuring completeness and accuracy of documents;

performing administrative tasks relating to the procurement process; and reviewing procurement related correspondence and documentation for accuracy.

2.4 Segregation of Duties Segregation of duties helps ensure accountability and transparency and must be strictly enforced throughout the procurement process. The person initiating the procurement request must be different from the person managing the invitation for bids, who will, in turn, be different from the person approving the procurement and

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signing the contract. When duties are segregated, employees are unable to conceal inappropriate actions such as fraud and corruption that may occur during the procurement process. Positions that regularly interact with the Global Procurement Department and their responsibilities during the procurement process are outlined below.

a. Country representative: The CR works with the Global Procurement Department to ensure that procurement in county offices is carried out in accordance with CRS and donor procurement policies and regulations.

b. Head of operations: The HoOps collaborates with the Global Procurement Department to ensure that all procurement is based on justifiable needs and is in line with the objectives of the project or program and donor requirements. The HoOps is one of the members of the bid committee.

c. Budget holder or program manager: The budget holder is responsible for authorizing expenditure commitments for procurement within their expenditure authority. Email approvals from budget holders for procurement is acceptable provided it is from the approver’s official CRS email address. The budget holder is usually a member of the bid committee.

d. Finance manager: The finance manager is responsible for ensuring proper review of documentation submitted for payment and that policies and procedures issued by the Finance Department were followed during the procurement process. The finance manager also monitors expenditures for procurement to confirm that all procurement is in accordance with the approved budget. The finance manager participates in the bid committee as needed. CRS offices that do not have sufficient staff to ensure segregation of duties should seek assistance from

the regional office, the Global Procurement Department or the Finance Department. These departments

will assist country programs to develop strategies for segregation of duties during procurement. The CR

should confirm that the procurement process is in compliance with the CRS Segregation of Duties

Procedure - PRO-FIN-ICS-024.02. Please see below for a list of typical segregation of duties.

Examples of Incompatible Functions

The Person who Performs This

Function...

Should Not Perform This Function

1 Initiates purchase requisitions Receive goods, prepare receiving documentation

2 Procurement Requisition goods or services for other depts. or

projects

3 Procurement Approve POs or service contracts

4 Procurement Receive goods, prepare receiving documentation

5 Procurement Acknowledge or approve receipt of services

6 Procurement Perform quality control tests or evaluate goods

received

7 Procurement Return goods to vendor

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8 Procurement Prepare, record or distribute payments to vendors

9 Procurement Have custody over assets or goods purchased

10 Procurement Receive invoices from vendors

11 Procurement Have custody of blank checks

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Section 3: The Procure-2-Pay Life Cycle The P2P procurement life cycle defines the steps in the procurement process. The following diagram illustrates the P2P life cycle.

Procurement needs assessment and procurement

planning

Procurement methods,

preparation and issuance of solicitation documents

Receipt, opening and evaluation of

bids

Due diligence checks

Contract preparation and

negotiation

Contract finalization and

execution

Delivery, receipt and monitoring

Payment of supplier invoices

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3.1 Procurement Needs Assessment A procurement needs assessment must be carried out prior to initiating any procurement process. The assessment involves reviewing requests for procurement and confirming with the budget holder that the items requested are required for project activities. The needs assessment may fall into one of the following categories: Start-up: At start-up, the procurement needs assessment involves reviewing the award for items approved for purchase at the beginning of a project (e.g., equipment and furniture for office set up, office space, vehicles, Internet services, etc.). The assessment also involves reviewing the budget to find out the quantity and costs budgeted for procurement of goods and services. Implementation: During implementation, the assessment involves reviewing the needs of the ongoing project and the award to identify specific goods or services required to achieve the objectives of the project. The needs assessment should determine the quantity, specifications, timelines and budget available for procurement. Reconciliation of Procurement Needs and Available Budget The procurement officer, in collaboration with the budget holder, is required to review the budget to confirm there are adequate funds approved for procurement of the goods or services identified during the needs assessment. The procurement officer should also carry out market research on the items to be procured to determine the cost and review it against the budget. If the items have been procured in the past, review the most recent pro forma invoices or quotations from a number of bidders to obtain the cost information. The budget must also be reviewed to ensure there are adequate funds for transport and delivery from primary storage points (where the bidder delivers the goods) to where the goods must be delivered for usage. Other costs to review include:

international and local shipping/transport; transit fees, customs clearing and forwarding fees; installation, configuration and user training; maintenance or quality testing fees; and storage costs (this might be ongoing, for the duration of the program or a shorter time).

If the approved budget is not closely aligned with anticipated costs (after taking into consideration all possible cost savings), the procurement officer and budget holder must review the quantities and/or specifications and make necessary adjustments so procurement costs are within the approved budget or discuss ways to offset higher costs with the donor.

Market Research

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The Global Procurement Department carries out market research by gathering information on the prices of different goods and services procured by CRS. Pricelists can be requested from suppliers and used as a reference for current prices. CRS can ask suppliers to send updates on prices to them on a monthly basis. This information is kept by the Global Procurement Department as reference information to make sure CRS is aware of the prevailing market prices for the items that the agency procures on a regular basis.

3.2 Procurement Planning Procurement planning helps staff ensure goods and services are obtained on time and at a reasonable

cost. Planning also helps projects avoid poorly planned last minute procurement. Some of CRS’ donors

such as the Global Fund to Fight AIDS, Tuberculosis and Malaria and the World Bank require CRS to

have a procurement plan. Good procurement planning has many benefits, including:

encouraging transparency as there is advance knowledge of the items to be procured and the

lead-time needed to procure items; ensuring early identification and forecasting of right commodities and quantities to meet

project needs; enabling program managers and requestors to identify important information gaps related to

product specifications; helping the procurement officer and the requestor to make sure expected procurement dates

and lead-times correspond to programmatic needs; allowing CRS to identify bidders in good time and avoid rush procurements which can result in

higher prices for goods; helping the procurement officer identify the appropriate procurement method and potential

bidders when procurement is through limited competition, and avoid unexpected bottlenecks that lead to delays in procurement;

ensuring early requisition to reduce delays in procurement and timely delivery to project sites; allowing procurement officers to group procurement of several common goods together and

obtain better discounts with larger quantities purchased; and serving as an execution and monitoring tool for procurement of goods and services.

Although procurement planning is not necessary when CRS is carrying out a one-time procurement of

a single item, it is good practice for country programs to have procurement plans at the beginning of

each project. Procurement plans should be reviewed and updated annually. Prior to carrying out any

procurement, the procurement officer must review the award document and determine whether a

procurement plan is required.

3.3 Procurement Planning for Health Products Procurement planning for health commodities generally follows the above guidelines, with the following additional steps.

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a. A health expert who is responsible for preparing the technical specifications for the health product must be involved.

b. The planner must consider international and local requirements regarding procurement of health products to confirm that the products meet the required quality and health standards.

c. Manufacturing and expiry periods related to batch numbers must be considered during planning. This ensures that the procured products are in useable form for an adequate period of time after they are procured.

d. Planning must include logistical arrangements needed to transport and store the products.

3.4 Contents of a Procurement Plan Procurement plans must include the following items.

1. A narrative of procurement objectives and performance indicators. 2. A description of the technical quality and quantity of goods or services to be procured. 3. A breakdown of activities to be carried out by the procurement officer and the project team

based on the selected procurement method. 4. The name and contact information for the responsible party for each activity. 5. The timeline and specific delivery dates for each item being procured. 6. Details on logistical requirements such as transportation, import clearance, insurance

requirements and storage requirements as necessary. 7. Compliance and administrative requirements, including information on donor approval

requirements, budget codes and estimated budget allocations for each item to be procured. 8. Market research information. The research should address the availability of alternative or

substitute products, the availability and degree of competition between suppliers and the prices of the goods or services.

Please refer to the following link for a procurement plan template: Procurement Plan link

3.5 Donor Approval Requirements for Procurement Plans During the planning process, the procurement officer must ensure donor requirements are identified and lead times for receiving approvals are taken into consideration and documented in the procurement plan. CRS is required by the Global Fund to prepare a procurement and supply management plan for every grant which includes a procurement component for health products. In this case, other types of procurement (e.g., vehicles, services) could also be included in the PSM plan. Where CRS plans to make any changes to the procurement plan or the PSM plan, as approved by the Global Fund, CRS is required to provide details of those proposed changes in advance to the Global Fund and cannot initiate those changes unless they have been approved. Further guidance is available at the following link: http://www.theglobalfund.org/en/ PSM activities financed under the program must be carried out in accordance with the applicable

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procurement or PSM plan at all times.

Table 3: Procurement Plans

Procurement Activity

USAID DFID The Global Fund

World Bank UN Agencies European Union

Procurement plan required?

No1 (unless specifically required in

award)

Yes

Yes, PSM

plan requires approval

Yes

Yes

Yes

Restricted items (vehicles, health products, agricultural products)

Yes

Yes, if valued

above GBP 100,000

(procurement is carried out

by a DFID approved

procurement agent).

All products need Global

Fund approval.

Yes (please

note that there is no

definition of restricted

items).

Yes, if required

by Letter of Understanding

or Program Commit

Agreement.

Yes, if

required by contract.

Consultant Services

Yes (under USAID

Contacts)

No Yes Yes Depends on award

requirements.

Yes, if required in the award

Construction Services

Yes Yes Yes Yes Yes Yes

3.6 Approved Supplier Lists Country programs must establish and continuously maintain an up-to-date approved supplier list. The ASL is a critical internal control, which is intended to ensure that CRS only does business with reputable and reliable suppliers. Each supplier listed on the ASL must have participated in formal due diligence procedures that will provide reasonable assurance that the supplier is a reputable and reliable business. New suppliers can be added to the ASL without a prior due diligence visit, but the visit should be completed within six months. One-time suppliers do not need to be added to the ASL. To avoid a conflict of interest with the country program’s procurement function, these due diligence steps must be performed by someone who works outside the procurement function and does not have any other conflict of interest with respect to the suppliers. Procurement personnel can be part of the CRS team visiting the suppliers Country programs should not use a one-size-fits-all due diligence approach for every potential supplier. Instead, country programs should adjust the mix of verification steps for each potential supplier depending on local circumstances, including consideration of the risk of fraud. Examples of acceptable verification steps are listed below.

A visit to the company premises

1 Yes/No denotes whether or not the CRS donor requires a Procurement Plan before procurement is carried out.

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A review of the company’s website A call to the owner of the company Calls to references and other customers Physical checks of the quality of the products and their product-line offering Checking official government documentation showing a valid taxpayer identification number A review of the kinds of warranties the supplier offers for goods and/or services Checking the return policy

If an advanced payment needs to be paid to the vendor, a visit to the company is advisable depending on the amount involved in procurement and cost effectiveness. When using an individual consultant, emphasis should be placed on the reference check, however the due diligence visit should be done depending on the service and cost involved. Either the CR or the HoP must approve a supplier before it is added to the ASL. In addition, the full ASL must be reviewed and approved by the CR at least annually. The CR must establish and enforce procedures to ensure that no payments are made to suppliers that are not listed on the ASL, except when total aggregated payments to a supplier are not expected to exceed $1,000 during a calendar year. To demonstrate compliance with this policy, country programs must maintain a centralized file of historical documentation. At a minimum, the documentation must be sufficient to demonstrate the nature and extent of the due diligence performed for each supplier shown on the ASL, along with evidence of the required management approvals. Please use the following links for CRS Approved Supplier List and Due Diligence Supplier Visit Checklist templates. Approved Supplier List Template link Due Diligence Supplier Checklist link

3.7 Pre-qualification of Bidders Pre-qualification is used to assess bidders of particular goods, services or construction works against pre-determined qualification criteria, and only bidders who meet the criteria are invited to tender in future opportunities. Pre-qualification is also known as a two-step procurement process. A pre-qualification process must be carried out in the same way as a competitive procurement/open tender described in this manual. After the initial competitive process, whenever there is a need to procure items for which bidders have been prequalified, only pre-qualified bidders are invited to submit bids for consideration. Pre-qualification of bidders ensures that bids are only requested and received from bidders who are able to comply with the requirements. Pre-qualification is recommended when:

complex or specialized goods or services are procured (e.g., health products, consulting services and construction services);

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specific goods or works or service is procured on a regular basis (e.g., travel services, office supplies, conference and workshop locations, and IT consumables);

a high degree of risk is involved in the procurement (e.g., security and safety equipment and services and construction services); or

the importance of the goods or services for the project is high (e.g., late delivery or the delivery of a wrong product or service would have costly implications).

Once pre-qualification is carried out, the qualified suppliers should be added to the ASL. Due diligence for suppliers in the ASL should be carried out in accordance with CRS Policy POL-PUR-SUP-001. ASL Policy link

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Section 4: Developing Specifications for Goods and a Scope of Work for Services

4.1 Developing Specifications for Goods Specifications describe the nature and technical functionality of the goods to be procured. Specifications must state at least one or a combination of the following:

Table 4: Specifications Chart

Specification Description

Functional Indicates what the product does (e.g., the vehicle must be able to drive on rough terrain).

Performance Describes what is to be achieved rather than providing a fixed description of how it must be done. To ensure the quality, a reference to the concerned product standards (e.g., International Organization for Standardization) and environmental requirements, must be made.

Technical Defines exact design and details of a good (e.g., the physical attributes, material to be used, power input and output, the manufacturing process required, or in the case of a service, the working methods to be used).

4.2 Key Considerations in Preparing Specifications for Goods Well-drafted specifications:

indicate the quantities and essential characteristics (technical, functional and performance) of the item being purchased, so that all bidders know exactly what is required;

include enough information for bidders to identify what is required and to cost it accordingly; include the size, units and intended use of the products; define the packaging, presentation and appearance to confirm that it is relevant to the local

context (e.g., instructions for use must be in a language that is used locally so that users can easily understand them);

provide equal opportunity for all potential bidders to offer goods which satisfy the user’s needs, including alternative solutions; and

include CRS and donor requirements for inspecting, testing, or preparing a material, equipment, supplies, or service for delivery.

When preparing complex specifications, technical experts within CRS should be asked to provide

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input. The procurement officer may also seek information from suppliers CRS commonly uses for similar equipment. This information can then be used to draft the specifications. The procurement officer must be careful not to reveal too much information to a supplier so they do not have a potential advantage nor should the procurement officer allow the supplier to draft the specifications.

When preparing specifications, the procurement officer must ensure:

a. requirements are not over-specified as this may limit the number of responses; b. unnecessary features that may prevent some bidders from submitting bids are not included; c. a brand name, manufacturer name or model number are not included unless CRS has

standardized use of a certain manufacturer by commodity (e.g., CRS has standardized our IT hardware with HP®);

d. CRS requirements regarding delivery and after sales service, etc. are indicated; and e. products covered by sole patent rights are not included.

4.3 Developing Specifications for Health Products In addition to the requirements outlined above, the following steps are also recommended when developing specifications for health products.

a. Draft the specifications using the generic version of the product name so a wide range of bidders can compete.

b. Indicate the product properties, such as stability, shelf life, and storage temperature. When

procurement is for consumable health products, base the process of determining the quantities

to procure on a forecasting exercise that takes into account existing and anticipated stocks in

the pipeline, including a safety stock, and uses a defined method for quantification.

c. Include the design and requirements relating to packaging, packing, and marking, including dosage size, dose package, labeling, and printed materials.

d. Include the regulatory requirements, quality assurance requirements, applicable standards and required certifications.

e. Include the requirements for the type of storage environment required for the product. f. Use specifications for products that have previously been successfully procured as a starting

point for additional procurements of similar products. g. Define the intended use of the health products being procured in detail. The specifications

should confirm that the products are safe to use and disposable within the local context. h. Indicate the intended users for the products. Consider whether the products are already in use

within the country or if they are new products that have never been used before. For new products, specifications should include requirements for approval in the country where the products will be used.

Consumable health products, including diagnostic and testing kits, protective masks and gloves, syringes, and bandages are generally not as tightly controlled and regulated as medicines. CRS donors require procurement of consumable health products be carried out in accordance with the relevant national laws of the country where the medical supplies will be used. When developing specifications for health products, program staff should consult with CRS health experts, relevant local authorities including the local Ministry of Health and other agencies in the country charged with regulating the procurement and use of health products.

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Click here for more information on comprehensive procedures to use when procuring health products. Health Products Annex link Pre-qualification of Health Products During procurement planning for health products, the procurement officer must confirm the products to be procured are approved for sale and use in the country where the CRS project is being implemented. Health products must also be approved in the country of origin where the product is manufactured, either “for sale and use in the country of origin or for export only.” World Health Organization and Donor Prequalification In countries where oversight for health products is not adequately regulated, the procurement officer may defer to the World Health Organization Prequalification of Diagnostics program to assess the quality and safety of health products to be procured. When procuring pharmaceutical products, the Procurement officer must use the WHO’s Standard Treatment Guidelines and/or List of Essential Medicines to pre-qualify pharmaceutical products and manufacturers during the procurement process. Other donors, including the EU and DFID, also use the WHO standards. The United States Agency for International Development and the Global Fund have their own approved lists of prequalified health products and pharmaceuticals that must be used when using their funds. Limited international or national competition can be used to procure health products that are already pre-qualified by WHO, USAID or the Global Fund. Health products can also be procured on a sole source basis when there is only one supplier or manufacturer for the pre-qualified health product.

Consideration of National and International Standards The WHO standards must be taken into consideration when developing specifications. As part of this process, the technical team defining the specifications should verify that the specific type of health product is recommended or approved for use by the WHO and find out whether there are any international restrictions or regulations specific to the supplies. National standards should also be consulted in developing specifications. The local Ministry of Health must be consulted to ensure that the specifications are being developed in line with local laws and regulations. Under Global Fund requirements, only WHO prequalified diagnostic products that have been

manufactured at a site which complies with the certain specific ISO requirements, can be procured.

This information must be included in the specifications so that bidders are aware of these

requirements. Long-lasting insecticidal nets have to be WHOPES approved. Details of specific

requirements are obtainable at http://www.theglobalfund.org/en/The Global Fund has lists of

approved products (diagnostics, HIV testing kits, as well as pharmaceuticals and other health products

which can be found at the following link:

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http://www.theglobalfund.org/en/ USAID also has an approved list of HIV rapid testing kits, which should be taken into consideration

when procuring to avoid spending time to develop new specifications. Detailed information on the

USAID approved kits is found on the following website:

http://www.usaid.gov/sites/default/files/approved-HIV-AIDS-rapid-test-kits.pdf

4.4 Developing Specifications for Procurement of Pharmaceutical Products The following steps are recommended when developing specifications for pharmaceutical products:

a. Consult with the National Drug Authority in charge of approving pharmaceuticals to ensure that the types of pharmaceuticals are approved for use in the country. Specifications must require bidders to provide evidence that the pharmaceutical product is registered with the relevant authorities for use locally.

b. Include the dosage and strength required in the specifications. In order to encourage competition, it is best practice to clearly define the generic types, dosages of active ingredients, forms, and unit sizes (or packaging) without using brand names.

c. Indicate requirements relating to the clinical and quality standards required for the pharmaceuticals procured.

4.5 Developing Specifications for Health Equipment Health equipment may be considered separately from or together with consumable health products. This section deals with basic equipment (e.g., autoclaves, Bunsen burners, etc.) and large, complex, sensitive, or expensive machinery and equipment (e.g., drug susceptibility testing, automated CD4 enumeration and radiography machines). Request the following information from bidders when procuring health equipment.

a. The technical capacity of the equipment relative to the number of tests that need to be performed in a given time period.

b. The availability of trained technicians to operate the equipment in the country where the project is implemented.

c. The required maintenance, repairs, and service for the equipment and whether the bidder can provide a bid that incorporates these services.

d. The software requirements for the equipment (such as “software as service” procurement and usage).

e. Information on the power needs for the equipment. All specifications should take the advice of the technical expert into consideration. In all cases, the local

Ministry of Health and Bureau of Standards must be consulted from the beginning of the process to

ensure that the specifications adhere to local laws and standards. When applicable, the procurement

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officer must also make sure that the technical officer of the donor organization is involved in this

process to confirm that the specifications meet donor requirements.

4.6 Specifications Checklist Once specifications have been developed, review them using the following checklist:

Are the specifications clear and accurate, yet simple? Are the specifications understandable to the bidders and CRS? Are the specifications as flexible as possible? Inflexible specifications defeat the competitive

bidding process. Are the specifications clear and concise? Are the specifications capable of being checked? Specifications that are written in such a way

that a product or service offered cannot be checked as meeting specifications is of little value and results in confusion.

Are the specifications as fair to bidders as possible and do they allow for competitive bidding by several bidders?

4.7 Designing a Scope of Work A scope of work is used to provide detailed information about an assignment to potential bidders. A SOW helps bidders to submit relevant and accurate proposals that meet the objective of the procurement. A good SOW should be clear, concise and minimize any risk of ambiguities during the preparation of proposals. The SOW is the bidder’s first introduction to the assignment and forms the basis for the bidder’s preparation of the technical and financial proposals.

The SOW specifies activities, milestones, deliverables, timelines and responsibilities of the consultant or service provider. It eventually becomes an integral part of the contract between the bidder and CRS. An unclear SOW requires bidders to make assumptions. When bidders make different assumptions, comparing and evaluating technical proposals becomes difficult. An unclear SOW can also lead to less successful projects, as the winning bidder might not provide what is really needed. Table 5: Sample Scope of Work for Consulting Services To be as clear and precise as possible, the SOW should include the information shown in the table below.

Section Content Guidelines Purpose Statement of Problem

A description of the problem to be addressed, the expected situation at the end of the consultancy, target beneficiaries and reasons for the donor’s assistance (in relation to donor’s policies and involvement in the sector).

To explain the reasons for undertaking the assignment and why it is designed the way it is.

Goal/Objectives State the goal and objectives of the consultancy To specify what is expected to be achieved by the consultancy

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Activities

Describe activities typically starting with a verb (to assess, to identify, to prepare, to conduct, to review, etc.).

Necessary tasks to be carried out to achieve the objective.

Deliverables

1. Support every activity by at least one deliverable. 2. Ensure all deliverables necessary for the achievements of the activities are described. 3. If possible, describe deliverables in time location, quality, quantity (when, where, what quality, how much). 4. A deliverable is stated as an end result.

The results that can be guaranteed by the consultancy as a consequence of its activities and which are necessary in order to accomplish the objectives.

Reporting List the reports required (quarterly, final, etc.). Include requirements such as contents, number of copies, language, who should receive the reports and whether they must be submitted electronically, in hard copy, or both.

To provide bidders with information on the reporting deliverables required under the project.

Timing State the timelines for provision of the services. The total number of days required for the potential consultant to carry out the work.

To provide the bidder with information on when the services are required by CRS.

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Section 5: Selection of a Procurement Method

Procurement methods can be competitive, limit competition or involve no competition. CRS policy is to ensure that procurement adheres to donor requirements and is carried out in a way that encourages fair and open competition so CRS can obtain VFM. Most competitive procurement is carried out through sealed bids. In order for sealed bidding to be feasible, the following conditions must be present:

a. a complete, adequate, and realistic specification or purchase description; b. three or more qualified bidders are willing and able to compete effectively for business; and c. the procurement lends itself to a firm fixed-price contract and the selection of the bidder can be

made principally on the basis of price or a combination of technical and cost criteria. Where procurement is carried out through sealed bids, public bid opening may be held as necessary. Sealed bids can be used for both public and restricted tenders. The various procurement methods are outlined below.

5.1 International Competitive Bidding/Open Tender Table 6: International Competitive Bidding

Description A formal tender process advertised internationally. All interested bidders can apply and do not need to have a presence in the country where the project is being implemented.

When to Use For large, complex projects, where the equipment or service is not available locally or where there is not much local competition

Advantages

More competition and access to a wider choice of bidders Access to goods, services or technology that may not be

available locally Procurement is transparent (i.e., fair and open to all

interested bidders) Disadvantages Involves a long process as long and rigorous procedures are

involved High administrative costs Solicitation documents can be complex and detailed

ICB is also referred to as open tender and provides all eligible and qualified bidders adequate and timely notification of the requirements, equal access and fair opportunity to compete for contracts for required goods, works, or services. The World Bank requires open competition for all solicitations, however most United Nations organizations often apply a process of limited/restrictive competition based on short lists. The Global Fund generally requires that all procurement be carried out through public tender unless they provide

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CRS with prior approval in writing specifying that procurement can be carried out through restricted tender.

USAID procurement guidelines have requirements relating to the source and nationality of

commodities (geographic code) and services financed with USAID funds. As such, although ICB is used

as a procurement method, its use may be limited to bidders from specific countries. The specific

geographic code for USAID procurement is contained in each USAID Award. Additional information on

USAID geographic codes can be found in the following

website:http://www.usaid.gov/sites/default/files/documents/1868/260.pdf

Goods such as pharmaceuticals, LLINS and complex equipment are usually procured using ICB. Consulting services that require special expertise not available in the implementing country are usually procured using ICB.

5.2 National Competitive Bidding Table 7: National Competitive Bidding

Description Formal bidding process similar to ICB but limited to local bidders

When to Use If the good or service is only available locally, if it is cheaper locally, if the contract size is small or the advantages of an international tender are outweighed by its disadvantages

Advantages Can be quicker, with less administrative burden, than ICB Can hold the tender in the local language Can get a better price for some goods and services Can be used to promote local businesses International firms can still bid if they have a local office

Disadvantages The administrative burden and costs relating to ICB are still incurred

Competition is artificially reduced

National competitive bidding is the competitive bidding procedure under which only local organizations

in the country where the project is being implemented are invited to participate in bidding. This method

is appropriate when procurement of goods and consulting services are unlikely to attract foreign

competition due to their nature or scope. It is best practice to use NCB when:

a. due to the size and value of the contract, foreign organizations are not interested in the

procurement;

b. the goods, works, and services are available locally at prices below the international market; or

c. when the CRS donor requires that procurement be limited to national entities.

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5.3 Limited/Restricted Bidding Table 8: Limited International Bidding or Restricted Tender

Description A formal but limited tender process in which specific bidders are

invited to submit their bids. Only a limited number of invited bidders can apply and bidders do not need to have a presence in the county where the project is being implemented. Limited competition can be used where bidders have already been pre-qualified by CRS and are on an ASL.

When to Use For large, complex projects, or where the equipment or service can only be performed by a limited number of vendors

For goods or services that are required by CRS on a regular basis and bidders have been pre-qualified and are listed in the ASL

Advantages

Limited procurement saves time as bidders are already identified and there is no need to spend time advertising the procurement.

The recurring work for CRS and the overall workload is significantly lower than that in an open tender.

Product quality may be more easily assured through a restricted tender.

Disadvantages Fewer bids and more limited options may result in prices that are less competitive.

New potential bidders who may be able to provide quality goods or services are kept out of the process.

A system for pre-qualification of suppliers must be in place to ensure that CRS has met requirements of open tender if required by a specific donor.

Limited international bidding is essentially an ICB by direct invitation without open advertisement. It is also referred to as restricted tender and is an appropriate method of procurement when there are only a limited number of suppliers or where the amount to procure is only a few thousand dollars. The vast majority of country program procurements deal with these low-dollar procurements.

Competition is restricted to a short list of bidders selected in a non-discriminatory manner from ASLs, pre-qualifications, expressions of interests, market research, etc. The procurement officer should seek bids from a list of bidders that is broad enough to assure competitive prices and should include all potential bidders when there are only a limited number.

In the case of limited competitive bidding, where solicitation documents are only made available to a short list of selected suppliers, the names of these suppliers should not be disclosed. This will help safeguard competition.

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CRS procurement personnel should refer to the following checklist when performing limited/restricted procurements:

Requisition: Is it comprehensive? Does it answer what is needed and when is it

needed by? Does it specify the shipping address?

Donor regulations: Who is the donor? Are there special donor requirements?

Request for quote(s): The ASL should be used to select the suppliers to bid. If

different commodities are on the requisition, then split the requisition into multiple

RFQs and assign suppliers from the ASL to quote. Ask the supplier(s) to break out the

freight/shipping charges from the commodity unit price. This is a requirement for

purchased inventorial goods (policy # PRO-FIN-INV-025.01).

International shipments: CRS encourages the use of Deliver at Place as the preferable

International Commercial Term for the procurement of goods because this term places

most of the risk for transportation on the seller. Deliver at Terminal can also be used

when the seller is responsible for delivery to the terminal at the country of import. CRS

is responsible for custom clearance, import taxes, and delivery from the terminal to the

CRS office/warehouse. CRS procurement personnel can request on their RFQ’s to have

the suppliers quote shipments that are DAP and DAT in order to see the cost difference,

which can be significant. There may be cases where the country programs prefer to

clear and take possession of goods at the terminal.

Quote responses: Did the supplier(s) provide a comprehensive quote response?

Bid committee: Based on the amount of RFQ responses, do you need to hold a bid

committee meeting? If so, call a meeting and complete the bid committee review

template that indicates which supplier(s) will be issued a PO. Reference your local

appendix to see who sits on your local bid committee.

CRS PO approvals: Seek approval from authorizing official(s) based on the dollar

threshold of RFQs being received. Reference your local authorization matrix to

determine who must approve.

PO(s): CR or delegate sign PO(s) for the winning supplier(s). Procurement should have

supplier(s) confirm receipt of approved PO by mail or email.

Documentation: Unless on an ERP system, send the original requisition, RFQs, RFQ

responses, bid committee comparison approval form, a copy of the approved PO and

any other documentation that allows an outside party to determine how and why the

decision to go with a certain supplier was determined to the Receiving Department.

5.4 Direct Procurements Below $1,000 Table 9: Direct Procurement/Oral RFQ <$1,000

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Description Informal process where quotes are obtained from at least one bidder, but where three might be preferred to determine market price.

When to Use For readily available, off-the-shelf goods; standard commodities; small values

Advantages Quick to implement Low administrative burden Low cost to CRS and bidders

Disadvantages Does not work for large and complex or non-standard items Does not work for most types of services Potential perceptions of lack of transparency since few

potential bidders are directly invited to submit a bid. Direct procurement can be used by country programs to procure off-the-shelf goods and simple services from a supplier on the ASL of a value below $1,000. If the direct procurement is at or below the petty cash limit or it is a limited or one-time procurement, suppliers do not need to be on the ASL. Direct procurement is used for goods that are necessary for the day-to-day operations of the office. Direct procurement should not be used for items that require complex specifications or are for repetitive services, repair and maintenance of equipment, transportation or logistics services. Country programs may reduce the $1,000 threshold for requiring three bids, depending on the local

risk and value of the local currency in comparison with U.S. dollars. If a country program/regional

office chooses a lower threshold, this should be documented in the appendix section of their manual.

CRS can use the direct procurement method when buying from the CRS Approved Suppliers List.

5.5 Waiver of Competition Competition is normally the most effective method to ensure best VFM. Nonetheless, exceptions may be made for circumstances in which competitive bidding does not provide an adequate response for the CRS projects. In such cases, procurement can be carried out through sole source or direct contracting.

Sole Source Procurement/Direct Contracting Table 10: Sole Source Procurement

Description A single bidder is invited to submit a bid without the procurement being advertised

When There are few bidders that offer the product or service There is an urgent need for the goods or services and there

is no time to run a full tender A competitive process was already carried out and there is a

need for additional goods or services.

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A competitive procurement process did not yield the desired results

Advantages Quicker than a full bidding process Low administrative burden for CRS Low cost for CRS and for bidders

Disadvantages Less competition can be disadvantageous to CRS CRS may miss out on other qualified bidders The selected bidder may not be able to deliver the goods or

services procured This process lacks transparency

Goods or services can be procured through the sole source method in the following instances.

a. An existing contract for goods, and services, awarded competitively, may be extended for additional goods, works, and services of a similar nature if specific donor regulations allow. The procurement officer must be satisfied that no advantage could be obtained by further competition and that the prices on the extended contract are reasonable.

b. Standardization of equipment or spare parts, to be compatible with existing equipment, may justify additional purchases from the original bidder through sole source procurement. For these purchases to be justified the original equipment must be suitable and the number of new items must be less than the existing number. The procurement officer must ensure that the prices for the additional goods or services are still competitive.

c. The required goods or services are proprietary or unique and obtainable only from one source. d. In exceptional cases, such as in response to natural disasters and emergency situations

approved by the CRS donor funding the procurement. Even if only one bidder will be invited to present a bid, a formal solicitation must be issued and the proposed prices reviewed by the procurement officer to confirm that the prices are competitive by referring to published prices lists, or market studies. Requests for procurement through a sole source method must provide a justification for the reasons

why competitive bidding must be waived. Justifications for sole source procurement must be done by

submitting a Sole Source Authorization Form. Sole-source Authorization Form link

A CRS authorized official must approve the justification based on the expenditure authorization

matrix.

5.6 Donor Requirements for Competition in the Procurement Process USG Requirements On December 26th, 2014, the U.S. Government issued the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. The new regulations provide for the following procurement methods.

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1. Procurement by micro-purchases: Micro-purchases are the acquisition of supplies or

services where the aggregate dollar amount does not exceed $3,500 (or $2,000 in the case of acquisitions for construction subject to the Davis-Bacon Act). To the extent practicable, CRS must distribute micro-purchases equitably among qualified suppliers. Micro-purchases may be awarded without soliciting competitive quotations if CRS considers the price to be reasonable.

2. Procurement by small purchase procedures: Small purchase procedures are relatively

simple and informal procurement methods for securing services, supplies, or other property that do not cost more than the simplified acquisition threshold of $150,000. If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources.

3. Procurement by sealed bids (formal advertising): Bids are publicly solicited and a firm-

fixed-price contract (lump sum or unit price) is awarded to the responsible bidder whose bid,

conforming to all the material terms and conditions of the invitation for bids, is the lowest in

price. The sealed bid method is the preferred method for procuring construction. In order for

sealed bidding to be feasible, the following conditions must be present.

a. A complete, adequate, and realistic specification or purchase description is available. b. Two or more responsible bidders are willing and able to compete effectively for the

business. c. The procurement lends itself to a firm fixed price contract and the selection of the

successful bidder can be made principally on the basis of price.

If a procurement method using sealed bids is used, the following requirements apply.

a. The invitation for bids must be publicly advertised and bids must be solicited from an adequate number of known suppliers, providing them sufficient response time prior to the date set for opening the bids.

b. The invitation for bids should include any specifications and pertinent attachments, and must define the items or services in order for the bidder to properly respond.

c. All bids must be publicly opened at the time and place prescribed in the invitation for bids.

d. Any or all bids must be rejected if there is a sound documented reason.

4. Procurement by competitive proposals: The technique of competitive proposals is normally conducted with more than one source submitting an offer, and either a fixed price or cost-reimbursement type contract is awarded. It is generally used when conditions are not appropriate for the use of sealed bids. If this method is used, the following requirements apply:

a. Requests for proposals must be publicized and all evaluation factors and their relative importance identified. Any response to publicized requests for proposals must be considered to the maximum extent practical.

b. Proposals must be solicited from an adequate number of qualified sources. c. A written method for conducting technical evaluations of the proposals received and

for selecting a bidder for award must be developed as described above.

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d. Contracts must be awarded to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered.

e. CRS may use competitive proposal procedures for qualifications-based procurement of architectural/engineering professional services whereby competitors’ qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of fair and reasonable compensation. This method, where price is not used as a selection factor, can only be used in procurement of architectural/engineering professional services. It cannot be used to purchase other types of services though architectural/engineering firms are a potential source to perform the proposed effort.

5. Sole source procurement by noncompetitive proposals: Procurement by noncompetitive

proposals is procurement through solicitation of a proposal from only one source. Justification for when CRS can use sole source as a method of procurement has already been discussed above.

6. Lease vs. purchase alternatives: Where appropriate, an analysis will be made of lease versus

purchase alternatives, and any other appropriate analysis to determine the most economical approach. This could possibly apply to commodities such as vehicles.

Note: The USG has given organizations like CRS the option to delay the implementation of the new

requirements (2 CFR 200.317-326). CRS has opted to take advantage of this grace period and the

effective date for implementation will be October 1st 2017.

The Global Fund Requirements The Global Fund’s procurement and supply management policies do not provide a threshold for competitive procurement. However, they do require the prime recipient to comply with their own procurement policies, which must meet the Global Fund’s minimum standards for transparent and competitive procurement practices. Their awards are subject only to established exemptions included in written procurement policies and practices provided to them. Global Fund policies indicate that all procurement must be based on competitive and transparent procurement methods in order to achieve the lowest price possible for quality-assured products, except in the case of small or emergency orders. In addition, procurement must be carried out in the largest possible quantities reasonable under the requirements of the program in order to achieve economies of scale. When carrying out procurement under Global Fund projects, all processes must be competitive. The nature of the competitive procurement is dependent on the value and complexity of the item being purchased. The Guide to Global Fund Policies on Procurement of Health Products Supply Management states that “recipients shall ensure that all PSM activities for health products adhere to the WHO Interagency Guidelines: Operational Principles for Good Pharmaceutical Procurement.” The Procurement Department is responsible for ensuring that this requirement is adhered to.

UN Requirements Depending on the UN organization, for very low dollar value procurement valued at $1,000 to $2,500,

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the request for procurement is sent to only one or two bidders and their price is confirmed by the procurement officer against past purchases. When the UN funds procurement, the procurement officer should review the award and comply with the specific award requirements. The World Bank Requirements

Monetary thresholds for competitive procurement are set in the context of each country where procurement is being implemented to maximize competition and efficiency of procurement.

In determining the threshold for competitive procurement when implementing a World Bank funded project, CRS procurement officers must rely on World Bank policies for the country and take CRS procurement policies and best practices into consideration.

DFID Requirements

DFID regulations require that procurement be carried out through selected procurement agents. DFID awards usually indicate the name of the procurement agent assigned to each contract or grant. All procurement of goods valued above £100,000 per single item must be through the DFID designated procurement agent.

Goods valued below £100,000 can be procured locally in the country where the project is implemented. DFID requires that all procurement be carried out competitively to ensure VFM.

Where the collective value of a number of small purchases exceeds £25,000, the procurement must be

referred to a procurement agent. If the CRS procurement officer decides that the procurement must be

done by CRS, the procurement officer is required to prepare and document the justification for not

using the DFID approved procurement agent. The best justification is usually that direct procurement

by CRS provides VFM for the project.

In cases where CRS is procuring goods through procurement agents, DFID encourages competition

between procurement agents for contract purchases between £250,000 and £500,000. Competition

between agents is mandatory for procurements valued above £500,000. CRS should compete the

services and invite DFID approved procurement agents to submit bids on the cost of their services.

5.7 Thresholds for Bid Committee, Tender Type, and Type of Solicitation Document The following procurement process requirements are a minimum for all CRS offices. Individual

locations may elect to make local standards more but not less rigorous; differences should be

expressed in the Location Specific Appendix outlined in Section 17. The only exception to this as a

minimum requirement is Headquarters, where standards for the use of bid committees and for the

treatment of consultants are less stringent because duties in HQ can be better segregated.

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Table 11: Thresholds for the use of Different Types of Solicitation Documents

Dollar threshold < $1000* $1000 - $5000

$5000 - $50000

$50000 - $150000 > $150000

Number of bid

responses (1) Min (3) Min (3) Min (3) Min (3)

Bid committee No No Yes: 3 Yes: 3 Yes: 3

Goods Tender type RFQ RFQ RFQ RFQ RFQ or

RFP

Type of solicitation Restricted

-ASL Restricted

-ASL Restricted -

ASL Restricted or Public

Restricted or Public

Bid committee No No Yes: 3 Yes: 3 Yes: 3

Services Tender type RFQ RFQ or

RFP RFQ or RFP

RFQ or RFP

RFP

Type of solicitation Restricted

- ASL Restricted

- ASL

Restricted - ASL

Restricted or Public

Restricted or Public

Bid committee No No Yes: 3 Yes: 3 Yes: 3

Consultants Tender type RFQ RFQ or

RFP RFQ or RFP

RFQ or RFP

RFP

Type of solicitation Restricted

- ASL Restricted

- ASL Restricted -

ASL Restricted or Public

Restricted or Public

* Below the threshold but above the petty cash limit.

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Section 6: Preparation of Solicitation Documents

Solicitation documents provide specific instructions to guide bidders on how to prepare bids or

proposals for the goods or services being procured. Solicitation documents should:

a. have clear technical specifications or SOW and indicate the method of procurement;

b. indicate whether there will be a pre-bid or pre-proposal conference and/or site visit;

c. state the due date for request for clarifications on the solicitation documents;

d. specify the deadline for submission of bids or proposals.

e. list the name, address, phone number and email address of the CRS authorized point of contact

for information on the requirement;

f. outline the bid/proposal validity period required;

g. denote whether CRS will require bidders to provide bid security and/or performance bond;

h. clearly describe and provide adequate details relating to the bid/proposal evaluation criteria;

and

i. indicate the bid/proposal opening date as necessary.

When drafting solicitation documents it is good practice to use clear, simple and accurate, language and

use short descriptive headings for each paragraph. The procurement officer should do the following to

ensure the solicitation documents create a level playing field for all bidders.

a. Make sure all bidders receive the same information at the same time and are given an equal

amount of time to prepare the bids if it’s a restricted tender. If it’s a public tender, then bidders

might see the solicitation a day or more after it has been posted, but all bidders will have to

respond by the same date.

b. Confirm the evaluation criteria are measurable and allows bidders fair chances to win the award.

c. Ensure compliance with solicitation requirements is clear and specific to avoid unnecessary time

spent providing explanations.

All requirements must be clearly expressed in terms that allow all qualified bidders the opportunity to provide a responsive bid and CRS to receive a sufficient number for a competitive procurement.

Types of Solicitation Documents It is good practice to have standard solicitation documents for each procurement method. The use of standard documents:

a. ensures consistency from one transaction to another; b. helps mitigate and avoid repetition and omissions; and c. streamlines the procurement process.

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Request for Proposals

A request for proposals is a solicitation document used in competitive or negotiated procurements to

communicate CRS requirements to prospective bidders and to solicit proposals or bids from them. RFPs

must contain the information necessary for prospective contractors to prepare proposals properly.

RFPs are equivalent to invitation to tender under DFID Projects and also equivalent to invitation to bid

under World Bank and UN procurement policies.

The RFP process allows for negotiations and discussions with bidders after the initial bid opening. RFPs,

at a minimum, describe:

a. specifications for goods required and/or the SOW for the services required;

b. anticipated terms and conditions that will apply to the contract, including the vetting process

bidders will be subjected to prior to award;

c. where CRS requires some level of innovation, the RFP may authorize bidders to propose

alternative proposals and terms and conditions;

d. factors and significant sub-factors that will be used to evaluate the proposal and their relative

importance; and

e. specific requirements relating to eligibility, certifications, key qualifications, past performance,

bid security, proposal format, delivery date and location for delivery, number of copies of the

proposal to be delivered and mode of delivery (hard copy or electronic).

Some goods or services usually procured using RFPs include: technical consulting services, travel

services, conference and workshop related services, pharmaceuticals. Click here for CRS’ RFP template.

CRS RFP Template link

Request for Quotes

An RFQ is a solicitation document used to gather information on the prices for goods or services being

procured. Bidders may submit quotes in the form of pro forma invoices. Office supplies and basic off-

the-shelf commercial goods are procured using RFQs. Staff should indicate that bidders should include

final prices in their bids.

Staff should use an RFQ when the requirement is definitive, pricing is known and is stable, competition is expected, and there is not a need to hold discussions with potential bidders. RFQ’s can be used to lease property, obtain goods such as vehicles, furniture, office supplies, etc. Click here for CRS’ template for goods and services. RFQ for Goods Template link RFQ for Services Template link

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Oral RFP or RFQ In rare cases, under conditions of unusual and compelling emergencies, procurements may be initiated through oral RFPs. During an emergency, time does not permit CRS to undertake a structured process of issuing a written solicitation and awaiting responses from vendors. Oral RFQs can be used during direct procurements when CRS needs to buy simple off-the-shelf supplies within the established threshold. Country programs should budget for off-the-shelf items and create indefinite quantities contracts on an annual basis. Oral solicitations are transmitted through speech, usually a phone call. The table below describes this process. Table12: Illustration of Oral RFQ

Budget holder or other program staff sends a request to the procurement officer .

2. Describe requirement .

3. Discuss quantity, delivery and

terms and conditions

1. Call potential suppliers

4. Document file with vendor’s

price and terms and conditions.

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Requests must be made to a minimum of three bidders, unless the amount of the order is under the established threshold for requiring three bids. It is mandatory to document this process immediately once the procurement officer has obtained the oral proposal or bid. Request for Expressions of Interest

An expression of interest is a multi-staged procurement process. CRS seeks EOI to shortlist potential

bidders before then seeking detailed bids. EOI are used when CRS is seeking to gather more

information about a possible procurement, such as data on specifications, innovations, and

alternatives available in the market. Once an EOI is reviewed, a short-list is prepared and pre-qualified

bidders are invited to submit detailed bids.

6.1 Contents of Solicitation Documents Solicitation documents for an RFP or RFQ have the following general structure.

a. Letter of invitation. b. Instruction to bidders. c. Evaluation method and criteria. d. Schedule of requirements, which includes the technical description (specifications, TOR, SOW

including design/drawings/technical specifications for works). e. General terms and conditions and special terms and conditions. f. Sample contract and other forms, such as due diligence forms, that potential bidders are

required to complete. The sections below provide a detailed description of the contents of solicitation documents.

6.2 Instructions to Bidders The instruction to bidders section is critical in the solicitation documents. It provides key information to help potential bidders decide whether they are interested in bidding on a project. The instructions must be drafted to reflect the specific requirement of the solicitation. As shown in the table below, instructions to bidders should convey all relevant guidelines to govern the preparation, submission and evaluation of responsive bids, in accordance with CRS requirements. Table 13 illustrates the information that must be contained in the instructions: Table 13: Instructions to Bidders

Section Content Administrative details Reference to the specific procurement (title and

tracking number), and a list of supporting documents issued.

CRS point of contact for receipt of bid and clarification

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questions. Important dates Deadline for submission of clarification questions and

deadline for submission of proposal/bid. Where the information is available, the instructions

should also indicate the due dates for delivery and the start dates for services.

Pre-bid conference Date, time and location details for pre-bid conference if necessary.

Instructions for bid preparation All relevant guidance regarding bid preparation and submission of bid.

Information relating to eligibility requirements.

A list of documents required to form a complete bid,

as well as notice to bidders that bids may be rejected

unless responsive.

A responsive/compliant/acceptable bid is one that

conforms to all the terms, conditions and

specifications included in the solicitation documents.

Information relating to: mode of submission

(electronic, hand-delivered, mail, fax) and contact

information for CRS point of contact.

Instructions on how the bids must be packaged (e.g.,

sealed, number of copies, one or two-envelope system

etc.)

Description of need Information necessary to prepare a responsive and meaningful bid:

o the context of the procurement o the intended purpose of the procurement

Instruction on the content of the bid

Information on how the technical and financial bid must be structured (e.g., language of the bid, potential bidder’s work plan, timelines for delivery, deliverables required, past performance requirements, and cost breakdown).

Where goods are being procured, the quantity of the goods must be clearly indicated.

Currency The currency of the bid and the currency that will be used in the final contract.

Eligibility Eligibility requirements for bidders. This should include registration requirements, anti-corruption certifications and other due diligence requirements that will be required from bidders.

Documents should indicate that bids must be signed by an authorized representative of the bidder.

Instructions on bid validity Instructions on how long the bid must be valid (60 or

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90 days). The validity period must be long enough for CRS to evaluate bids and negotiate and issue a contract.

Method of evaluation and evaluation criteria

The evaluation method including order of importance and weight of each major criterion and how it will be applied.

Bid security and performance bond

Information on whether bidders are required to submit a bid security or whether a performance bond will be required if a bidder is selected.

Alternative bid The instructions should indicate whether alternative bids will be acceptable. Alternative bids are bids that do not comply with the exact requirements of the solicitation, but which may be proposed by bidders as an optional way of fulfilling the needs of the end-user.

Delivery terms The bidders must be informed about the delivery terms expected. The best practice is to use Incoterms® 2010.

Destination, locations and mode of transportation

Instructions should specify the address of all location(s) and mode of transport(s). When procuring services, the exact location(s) must be specified.

Past performance information Instructions to bidders should include the requirements relating to the past performance information that shows the bidder has carried out similar work. Best practice is to require the bidder to provide contact information for three former clients.

Responsibility statement and supporting documentation

Instructions to bidders should require bidders to include a responsibility statement. The supporting documents should include proof of financial capacity to carry out the requirements (e.g., revenues available, the ability to deliver the goods, the human resources to carry out the services.)

6.3 Method of Evaluation and Defining Evaluation Criteria Evaluation criteria should not give an unfair advantage to one bidder over another, or be tailored around the attributes of favored bidders. The method of evaluation and the evaluation criteria must be established and indicated in the solicitation documents. Solicitation documents should indicate the importance of each criterion and in the case of procurement by RFP, whether technical factors will be more important than price. The procurement officer works closely with the technical requisitioner to establish this criteria during procurement planning and preparation of bidding documents. Pass/fail criteria: For the procurement of off-the-shelf goods, simple equipment and similar items, pass/fail criteria may be appropriate. If a factor either meets or does not meet a simple requirement, it is characterized as pass/fail.

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Weighted criteria: Weighted scoring can be used to evaluate how well bids meet a certain requirement (e.g., on a scale from 1-5). This method is appropriate for a competitive solicitation to seek the best VFM. When weighted scoring is used, it should be used for both technical and financial criteria. All criteria must be impartial. It cannot be designed in a way to give an advantage to certain bidders.

6.4 Sample Contract and Due Diligence Requirements It is good practice to include a sample contract with the terms and conditions in the bidding package that will be applicable to the contract resulting from the procurement. Click here for a Long Term Agreement template LTA link developed by the Office of General Counsel. It is also important to include any due diligence forms that the winning bidder will be required to complete upon award. This helps potential bidders decide whether or not they will be able to comply with the requirements if they are selected for award.

6.5 Logistical Arrangements Transportation and Delivery of Goods The solicitation documents should state the requirements relating to delivery in detail. Transportation and delivery are important evaluation criteria, where large quantities of goods are procured. When goods are of a special nature, the solicitation documents should indicate the preferred mode of transportation. When goods are being procured internationally for delivery, the requirements relating to insurance and delivery requirements of International Commercial Terms must be included in the solicitation documents. International Commercial Terms or the Incoterms® rules are a series of pre-defined commercial terms published by the International Chamber of Commerce. They are widely used in international commercial transactions or procurement processes. INCOTERMS link The solicitation must provide information relating to the following expectations.

a. Packing goods for shipment: The packing and shipping instructions are critical when procuring goods as they serve to protect the goods from being damaged during transportation. Solicitation documents should require bidders to use industry standard packaging so that goods are not damaged during transportation.

b. Export and import clearance: Where goods are bought internationally, it is best practice for solicitation documents to indicate whether the bidder will deliver the goods to CRS at the port of entry, DAT, in the country, or whether the goods will be delivered to the CRS country offices, DAP.

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c. Solicitation documents should require bidders to consider all issues relating to transport from source to port/airport of shipment including international transport and transport from port of arrival to final destination and handling.

d. Solicitation documents should indicate whether CRS has waivers for customs and import duties for imported goods. Most of CRS’ donors have bilateral agreements with the governments in the country of implementation and tax waivers can usually be obtained.

e. Requirements relating to the shelf–life and packaging of goods such as food and health products. This information should be obtained from CRS technical experts on the type of packaging required for the goods being procured.

Solicitation documents must require that costs of transportation and handling be stated separately on the bids submitted to CRS by its potential suppliers in order to comply with CRS’ Finance Department procedures about the capitalization of purchased inventory, which requires that transport costs be excluded from the value of capitalized inventory. If a supplier states that shipping and delivery is at no cost, this must be specifically noted in the quote and the PO.

6.6 Bid Security and Bonding Requirements Bid security is required when CRS is procuring construction or rehabilitation services. The bid security requirements must be realistic and reasonable so as to enable qualified bidders to participate in the procurement. Bid security is the deposit of cash, certified check, cashier’s check, bank draft, money order, or bid bond submitted with a bid and serving to guarantee to the owner that the bidder, if awarded the contract, will execute such contract in accordance with the bidding requirements and the contract documents. CRS policy is to adhere to donor requirements for security and bonding in terms of reasonableness. The CRS policy for bonds is as follows:

a. The bid guarantee must be five percent of the bid price submitted and must consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument and should accompany the bid response. A bid bond guarantees the bidder will perform the contract for the cost and terms they submitted.

b. The performance bond should be for 100 percent of contract award price. Where CRS is procuring complex goods or services such as construction services, a performance bond is required of the bidders. The bond serves to protect CRS against contractor non-performance according to the obligations expressed in the contract. A performance bond, also known as a contract bond, is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor.

6.7 Finalization of Solicitation Documents The procurement officer must finalize solicitation documents by crosschecking the draft components for consistency and completeness. The procurement officer must also confirm that sufficient time has been allowed to bidders to adequately respond to the solicitation.

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At this point it is important to ensure that all terms and conditions applicable to the purchase activity are included, as no additional clauses can be added after bid closure.

6.8 Notification and Advertising Once the solicitation documents are complete, they must be issued and distributed. When the procurement is public tender, an ICB, then the solicitation should be on at least one international website (e.g., devex.com, devbusiness.com, or RFPDB.com). If the solicitation is a NCB, then the solicitation must be advertised in two local newspapers. Remember that donor requirements will dictate what method of solicitation will be required. In cases where the local custom is for bidders to collect hard copy solicitation documents, the advertisement should provide information on where they must be picked up and the CRS contact person to contact to facilitate pick-up. Bidding documents should be provided to bidders for free. In a restricted/limited competitive process, where only selected bidders may participate in the solicitation, the solicitation documents should solely be made available to the bidders on the ASL. Bidders must be provided with adequate time to submit their bids. A minimum of twenty business days, or four weeks, must be provided for local procurements and thirty business days for international procurements using a RFP. RFQs must be published for ten business days for national procurements and fifteen business days for international procurements.

6.9 Clarifications/Bid Conference The period between the issuance of solicitation documents and the deadline for submitting bids is referred to as the solicitation period when a competitive method of solicitation is used. Bidders are allowed to submit questions during this time. Questions from bidders must be in writing and responses must be published or sent to all the short listed bidders if procurement is by limited competition. For technical, complex acquisitions, a pre-bid conference between CRS and the bidders could be held in addition to, or instead of, issuance of written clarifications. This conference may be in the form of a meeting, a site survey or an inspection. When conducting a pre-bid conference, it is recommended to adhere to the following guidelines.

a. Set a time for the conference, allowing sufficient time for all bidders to plan attendance of the conference.

b. Inform bidders in the solicitation documents if participation in the pre-bid conference is mandatory.

c. Written queries from bidders may be forwarded to the CRS procurement officer prior to the conference, with responses to the written questions to be given orally during the conference.

d. Within a reasonable time after the conference, the procurement officer should publish or send a full set of minutes to all potential bidders, recording all queries and formal replies. The minutes

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should prevail over any oral responses provided during the conference. If the clarifications given in the meeting alter the requirements indicated in the solicitation documents, CRS should consider extending the closure time for bid submission.

6.10 Amendments to Solicitation Documents At any time before the deadline for submission of bids, CRS may, for any reason, whether on its own initiative or following a request for clarification by a bidder, modify the solicitation document. An example of a modification would be the extension of the closing date. Amendments to solicitation documents must be made in good time before the deadline for submission of bids in order for bidders to address changes in their bids. In certain cases, amendments will justify an extension of the submission deadline. This must be assessed on a case-by-case basis. Amendments of solicitation documents containing changes, giving clarifications, or providing additional information, must be made available simultaneously in writing to all invited bidders. Providing one or more bidders with additional information unavailable to other bidders during the procurement process offers an unfair advantage. This is not in line with the principle of transparency and must be avoided at all costs. Substantial changes to the requirements may call for re-tendering, especially in cases where the change could potentially mean that the short list is no longer appropriate. Amendments to solicitation documents must be subject to the same approval by the appropriate CRS authorities as the solicitation document itself.

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Section 7: Receiving and Opening of Bids

7.1 Creation of a Bid Committee A bid committee must be created to evaluate bids that are valued at >$5,000, if procurement is carried out locally within the country program. Where procurement is carried out by the Global Procurement Department at CRS headquarters, a bid committee is required for RFPs and for RFQs that are conducted via a public tender. The bid committee should have the following members, including a minimum of 3 to 5 voting members:

a. the head of procurement or his/her representative, who is a non-voting member, and who also acts as secretary of the committee;

b. a representative from the Finance Department may attend the bid evaluation, however this is not mandatory;

c. project representative or the end users; d. a representative of the stakeholders, such as a government official in the country of

implementation, if required by the donor funding the project; e. a technical expert, as necessary, with particular skills required to provide guidance on

specifications or the SOW; and f. a member of the Senior Management Team.

Please refer to the chart of authorization matrix to determine the approval process for bid committee decisions for procurements. Please refer to your country program/region and headquarters appendix for details on the use of bid committees by CRS location. Procurement staff should not be voting members of committees and should not be counted as one of the 3 to 5 members. The bid committee should normally consist of representation from technical, end-use, financial, procurement and senior management or international staff. The bid committee does not need to consist of more than 3 members for bids valued at less than <$5,000.

7. 2 Receiving and Safeguarding of Bids

Sealed bids will be sent to one person in the procurement department that is not part of the RFQ/RFP team. No other persons should have access to these sealed bids until bid opening.

As specified in the solicitation documents, bids must be received:

a. at the place, date and time indicated in the solicitation documents; b. in writing (unless the procurement was done orally as described in Section 6); c. via mail, courier service, hand delivery, fax or email (enforce a procedure to make sure bids are

not shared before opening all bids); and d. by the authorized CRS person designated in the solicitation documents.

Sealed envelopes marked as bids but not identifying the bidder or the solicitation may be opened solely for the purpose of identification. If a sealed bid is opened by mistake (e.g., because it is not

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marked as being a bid), the envelope must be signed by the person who opened the bid. The person should include their name and position on the envelope and deliver the bid to the CRS officer designated to receive bids. On the envelope, CRS staff should write:

a. an explanation of the opening; b. the date and time opened; c. the invitation for bids number; and d. should sign and immediately reseal the envelope.

All bids received before the time set for bid opening must be kept securely to make sure they are kept confidential. Bids should not be opened or viewed and should remain in a locked bid box, a safe, or in a secured, restricted-access electronic bid box (e.g., the CRS SharePoint site). If an invitation for bids is cancelled, bids should be returned to the bidders. Necessary precautions should be taken to ensure the security of the bid box or safe.

Bid Withdrawal Bidders may withdraw their bids prior to the opening of the bids. Bidders seeking to withdraw their bids should do so in writing to the CRS procurement officer. This documentation should be part of the package for the tender.

Bid Amendment Bidders are allowed to amend their bids in writing prior to the solicitation closing date. The latest bid must be considered the binding one. After the closing date, bidders should not be permitted to alter their bids.

Late Bids Bids received after the established closing date should not be accepted.

7.3 Bid Opening

Bid opening must be scheduled as soon as possible after the deadline for receipt of bids. This allows for

efficiency during procurement and reduces the risk of manipulating bids received or accepting of late

bids.

The type of procurement method used will determine whether the opening of the submissions will be

conducted in public and which type of information will be disclosed. Best practices are as follows:

a. Bids must be opened in the presence of the bid evaluation committee.

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b. Bids for complex procurement may be opened internally or where the solicitation documents

indicated that bids will be opened publicly and then there must be a public bid opening.

c. When proposals are submitted using a two envelope sealed bid system (i.e., one envelope for the technical proposal and another separate envelope for the financial proposal) the technical proposal must be opened first. Financial proposals should only be opened after technical evaluation has been completed. A second opening should be scheduled at a later stage in order to open the financial proposals.

Public Bid Opening The following practices must be adhered to during the bid opening:

a. Only bidders who have submitted bids or their authorized representatives are invited to the public opening.

b. During the public opening, no bid must be rejected immediately, except for late bids. c. Bids must be opened by in the presence of the bid committee. Each bid must be subjected to a

preliminary review to ensure that it meets the mandatory requirements indicated in the solicitation documents (e.g., the right number of copies was submitted, each bid was signed by the bidder, and the bid security was submitted where required.)

d. All information related to the opening, records of attendees, records of all bids, including returned bids, must be recorded in an opening record/report, and read aloud to the attendees.

e. The opening official/panel and appropriate witnesses should certify the opening process by signing the opening record/report.

f. Discussions on a bid or an award are not entered into at the time of opening. g. The procurement officer or designated member of the bid committee must officially open and

close the public opening of the bids. A report on the bid opening must be prepared by the bid committee. The report should include:

a. bid submission deadline (date, time and extensions, if any); b. names of bidder or bidders’ representative present at public opening of bids, where relevant; c. bids received: name and country of origin of the bidder; d. type of submission (mail, fax, telephone, etc.); e. date and time of the beginning and end of the opening of bids; f. bid securities, if requested; g. bid validity period (and extensions, if any); and h. list of bids rejected for various reasons (e.g., late submissions, incompleteness, etc.)

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Section 8: Evaluation of Bids The bid evaluation stage is the most critical part of the procurement process and is the culmination of all the processes and procedures described above. Bid evaluation is comprised of three main components. a. Administrative evaluation: Bids are evaluated to ensure that they are responsive to the mandatory requirements and related instructions to bidders indicated in the evaluation criteria set out in the solicitation documents. Logistical requirements should be included under administrative requirements of the bid. b. Technical evaluation: Bids are reviewed and assessed for responsiveness to the specifications and technical requirements indicated in the evaluation criteria. c. Financial evaluation: Bids are reviewed and assessed based on the financial and pricing requirements in the evaluation criteria. The financial evaluation must be undertaken after the administrative and the technical evaluations are completed. In addition to electronic or hard copy bids and as required in solicitation document, bidders may be asked to make presentations or demonstrations explaining their bids. When the bid is for complex equipment or services, CRS should make a site visit to the bidder’s

location to confirm their ability to deliver the items indicated in their bid. In addition, references

checked in person can be a useful supplement if there is concern about a supplier’s ability to deliver

according to specifications.

Developing an Evaluation Plan

Establishing an evaluation plan while preparing the solicitation documents is best practice. The plan

should detail the timeframe and responsibilities of the bid committee members during the evaluation

process, the evaluation criteria and the evaluation method that will be applied. The country program, if

they desire, can call a meeting of the bid committee to decide their process for review, prior to opening

the bids, so that they know how they will approach the review.

The evaluation plan can be summarized in a few lines, or consist of long and precise descriptions of each stage in the evaluation process. The evaluation plan, like the evaluation criteria and method, should not be changed after the solicitation document has been issued. Each member of the bid committee must review and discuss the evaluation plan to ensure consistency during bid evaluation.

Preliminary Evaluation of Bids The preliminary examination helps eliminate bids that do not meet the mandatory criteria specified in the solicitation documents from further consideration. Some examples of items to be considered when evaluating the mandatory requirements include reviewing bids to confirm that:

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a. the bid is properly signed by an authorized official and certified; b. the bid is accompanied by the required bid securities; c. the bid accompanied by the required documentation and the package is complete; d. the bid validity period conforms to the requirements in the solicitation documents; and e. the CRS terms and conditions and due diligence requirements are accepted by the bidder.

The preliminary evaluation is a pass/fail exercise. Bids that do not meet the mandatory requirements are considered unresponsive and are rejected at this stage. If bids are rejected at the preliminary stage, the company name and reason for rejection must be documented in writing as part of the bid evaluation report. The bids that meet the mandatory requirements are considered for further evaluation.

8.1 Technical Evaluation of Bids Technical evaluation is the process of comparing bids with the technical and quality requirements as specified in the specifications or SOW of the solicitation document. The bid committee should discuss the process of how the evaluation should be carried out so each member of the team understands the criteria and how the bids will be compared and scored. The CRS end-user representative must be a part of the bid committee to ensure technical compliance of the bid, but should not have majority vote in the team. Depending on the type of procurement, they may only be involved in the technical evaluation and not the financial evaluation process. Technical Evaluation of Goods Goods must be evaluated based on the specifications in the solicitation documents. It is best practice for the bid committee to use an evaluation worksheet to break down the specifications contained in the bidding document. The worksheet should assign a score to each specification based on its importance. Some items to be evaluated include:

a. whether the specifications match the functionality, performance and technical qualities required in the bidding documents;

b. whether the bidder proposes to provide the required quantity of goods; and c. whether the bid adheres to the packaging and delivery schedule required in the bidding

document. When the goods being procured are commercial off-the-shelf goods, then the technical evaluation criteria used is pass/fail. Evaluation of goods should include evaluation of samples of goods to confirm that the bidders’ products meet CRS requirements.

Technical Evaluation of Proposals for Services A weighted scoring method is used for procurement of services, where the relative importance of each evaluation criterion needs to be weighted. It can also be used to evaluate offers for complex goods and works which require the criteria be not be based on price in order to achieve best VFM or when it is difficult to evaluate an offer on the compliant/non-compliant scale.

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Where bids are for services that are not very complex, the evaluators should score the different factors based on the information in the solicitation documents. These factors may include the following:

a. Does the proposal demonstrate that the bidder has a good understanding of the requirements and goals set forth in the SOW?

b. Does the proposal address each requirement and goal set forth in the scope of work and is a work plan for performing the services included?

c. Do the technical solutions included in the proposal indicate that goals and requirements will be met within the required schedule?

d. Does the bidder’s plan in the proposal demonstrate that appropriate personnel and equipment will be positioned efficiently to carry out the requirements?

e. Does the proposal contain past performance information that shows the bidder has performed similar services before?

f. Does the proposal provide an organization chart showing lines of authority, responsibility, and communication for management, supervisory, and technical personnel that indicates who will perform the services and managed?

g. Does the proposal include the names and resumes of qualified key personnel if required in the solicitation documents?

h. Does the evaluation plan indicate the percentage score within which bidders will be considered

to have met the competitive range?

After the evaluation, each member of the bid committee scores each bid in accordance with the

solicitation documents. Bids that do not fall in the competitive technical range can be rejected at this

stage when required by the evaluation criteria.

It is both best practice and a donor requirement to analyze the scores and summarize the results of the

technical evaluation and the scores for each bid in a technical evaluation report. The report should

include some narrative that explains the basis of the scores. Each member of the bid committee should

sign the report and proceed with the financial/commercial and bidder evaluation.

8.2 Financial Evaluation of Bids Financial evaluations involve ensuring bids fall within the project budget, comply with the financial

and commercial requirements stated in the solicitation documents, and are reasonable. This is

especially important when the technical bid carries more weight than the financial bid.

The bid committee should review the breakdown of cost information submitted by the bidder and

evaluate whether bids are reasonable by comparing the bid to:

a. the current market price;

b. a catalogue or list price where available;

c. price paid in the past for the same/similar goods or services; and

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d. prices submitted by other bidders.

Once the evaluation of the financial bid is completed, the bid committee will prepare a report on the

evaluation which includes an analysis of the bids and how the score was generated.

8.3 Requirements and Best Practices for Bid Evaluations

Requirements:

Evaluators must follow the evaluation methodology set out in the solicitation. The same evaluators must evaluate all competing proposals against the same criteria.

Evaluation conclusions are important at both the individual and consensus level and a separate

evaluation worksheet must be used for each bid. The evaluators should have an initial meeting

to ensure that they are on the same page on the mode and structure of the evaluation.

Evaluators must make sure that there is complete documentation throughout the process.

No new information can be introduced by the bidders or evaluators at the close of the bid period.

Best practices:

The bid committee should strictly follow the evaluation methodology and criteria published in the solicitation.

Where a two-envelope/sealed bid method is used, there must be a clear separation between the technical and financial evaluations so knowledge of financial proposals cannot influence the technical evaluation scoring.

Each bid should be evaluated on its own merits solely against the published evaluation criteria. Bids should not be compared to one another to arrive at the final score.

Each bid must be considered in its entirety and only the information provided by the bidder in its submissions must be evaluated. While information presented within a bid may be verified with references provided in the bid, no prior knowledge of or experience with a bidder can be taken into account to arrive at an evaluation outcome of a specific bid.

It is assumed all bids enter the evaluation process as compliant with the requirements and where weighted criteria are used in the solicitation, the bid has achieved 100 percent of the available technical points. The evaluation criteria are then applied to each bid separately to validate that the requirements are met and to determine whether any of the requirements have not been met to their fullest extent.

The bid committee should use a rules of evidence approach: find and record ‘facts’ from within the bid (including page numbers) to support the evaluation findings – what was found and what was not?

To be fair, any ambiguities in the published criteria must be interpreted in favor of the bidders. The bid committee should watch for artful evasion and deliberate partial compliance (e.g., if a

bidder claims to possess the experience required in the solicitation, but this experience is not substantiated in the bid). Does the proposal provide the type and level of evidence required in the solicitation?

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8.4 Bid Clarification Requests The bid committee may seek clarifications from bidders after the technical and financial evaluations.

The request for clarifications must be in writing (email clarifications are allowed) and sent to the

authorized representative of the bidder by the procurement officer. The request should provide the

bidder with adequate time to respond, depending on the nature of the questions. Bidders must be given

a timeframe to submit clarifications to CRS.

Where two or more bids fall within the competitive range and the bid committee considers both

responsive except for a small difference in pricing, the bidders can be invited to send their best and final

offer for consideration. Depending on the type of bid, the BAFO should cover either the financial bid or

both the financial and technical proposal. When procurement is for services, the BAFO usually addresses

both the technical and the financial proposal.

Once the evaluation is completed, the bid committee should consolidate the scores for each bidder.

8.5 Documentation of Evaluation Results All of the documents generated during the evaluation process must be retained by the evaluators for submission to the procurement officer at the completion of bid evaluation. The documentation serves as procurement records that tell the story of the procurement process. Documentation of bid evaluations must be clearly written and complete so that the basis of procurement decisions is likely to be understood by internal and external auditors at a later time. The documents also provide information to debrief bidders who ask question or challenge CRS’ final selection.

8.6 Actions to Avoid During Bid Evaluation The table below shows some actions to avoid during bid evaluation. Table 14: Things to Avoid During Bid Evaluation

Inconsistent evaluation Failure to ensure that all information in a bid is found and evaluated

Errors or omissions Ignoring information in the bid Lack of fairness and objectivity Absence of written rationale for determinations Benefit of doubt Incomplete documentation Deviation from published evaluation methodology and criteria

Destruction of documents (e.g., evaluation work sheets, bids received etc.)

Use of unpublished evaluation criteria Unauthorized disclosure (before, during or after)

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Comparison of proposals Reliance on/use of personal knowledge of a bidder. Personal knowledge of a bidder should be documented.

The key to a successful evaluation is to maintain an impartial, fair, consistent, documented and confidential evaluation process.

8.7 Bid Analysis and Evaluation Report After the evaluation of the individual bids, the bid committee determines which of the bids meet all the requirements of the specifications or SOW and which bids have the best price or the best VFM. The bid committee must prepare a comparative analysis of the results of the evaluation and select a winning bidder. The last step in the evaluation process is the preparation of an evaluation report. The evaluation report is used as the basis for the recommendation of award. A good evaluation report contains:

a. a summary of how the procurement process was carried out; b. a summary of the evaluation process and its individual steps as outlined above; c. information relating to any invalidation, rejection, non-compliance, and clarification of

bids; and d. a list with the final ranking of the bids with an explanation on the reasoning for how the

best bid was selected. All members of the bid committee must sign the evaluation report. Click here for CRS’ Bid/Price Analysis Template. Bid Price Analysis Comparison Template link

8.8 Conducting Bidder Due Diligence The procurement officer should ensure due diligence is done with other CRS staff members, but not

carry it out themselves. Due diligence is to be conducted once the tender documents have been

received and opened. It should be done after the bid opening, but before the bid committee selects the

winning bidder. The due diligence processes are outlined below.

Operational Due Diligence Prior to recommending an award to any bidder, the procurement officer and subject matter expert

must confirm due diligence is completed. The procurement officer can be a part of the team that

conducts due diligence, but they should not conduct it alone. The process serves to ensure that the

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bidder whose bid was determined to be most advantageous has actual capacity to supply the goods or

undertake the services.

The procurement officer or subject matter expert must check the past performance references

provided by the bidder(s) and prepare a number of relevant questions to ask the references. Sample

questions include:

a. What kind of work did XX carry out on behalf of your organization? b. Was the work performed or goods delivered by XX determined to be of the required

quality? c. Did XX perform the work within the approved budget? d. Did XX perform the work on time? e. Did XX deliver the goods on time? f. Any other necessary questions to help determine whether the bidder is able to perform

the work or supply the goods. Reference checks can be carried out in one of the following ways:

a. Orally through a phone call: When carrying out an oral reference check, the procurement officer or subject matter expert calls the reference provided in the bidding document and documents the information provided. Although the reference is provided orally, information must be documented as part of the procurement record.

b. In writing: A written reference can be requested from the references indicated in the bidding

documents. The procurement officer or subject matter expert must send out the questions

indicated in Section 8 via email and request written responses.

Anti-Terrorism Vetting – Bridger XG Anti-terrorism vetting is required for all procurement. CRS is required to comply with various anti-terrorism laws that were passed by the USG after September 11, 2001. CRS is prohibited from doing business with any individuals, organizations or businesses known to be involved in terrorist activities. This includes all CRS bidders and consultants. CRS uses the automated BridgerXG Insight system to stay in compliance with these laws. CRS international staff must check the names of each individual bidder to ensure that they are not among blacklisted individuals or organizations that are prohibited from being funded due to their engagement in terrorist activities. Records from Bridger vetting are maintained in the location where the vetting was conducted, either in headquarters or in a country program. All existing names of individuals and organizations doing business with CRS are revalidated every year between March and April.

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Office of Foreign Assets Control: Sanctions Programs and Information The U.S. Treasury Department, State Department and Commerce Department each maintain lists of companies and people that all U.S. citizens and companies including CRS are forbidden to do business with. The lists can be found on the following website: http://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx Although the sanctions exist, OFAC regulations provide general licenses authorizing the performance of certain categories of transactions. OFAC also issues specific licenses on a case-by-case basis under certain limited situations and conditions. Guidance on how to request a specific license is found at 31 C.F.R. 501.801 [06-16-06]. CRS must check the above lists and ensure that the bidder selected and the origin of the items or services being procured are not included in the list of persons or countries that CRS is prohibited from doing business with. Rejection of all Bids and Cancellation of Procurement Process CRS has the right to reject any or all bids when it is in the agency’s best interests. This information must be included in the solicitation documents. Instances when this might happen include, but are not limited to:

a. when no bid has been received within the specified deadline; b. when CRS establishes that the bidding documents contain terms or technical

specifications that cannot be met by any of the bidders or they are specific to a certain bidder;

c. when the prices of all bids meeting the terms and the technical requirements of the bid documents are unrealistic or appear to be the product of collusion between the bidders, resulting in the circumvention of fair and open competition;

d. when the circumstances under which the bid procedure was announced have changed to such an extent that the scope of the bid process is no longer necessary; and

e. when bids received do not meet the CRS requirements for the goods or services.

8.9 Selection of the Winning Bidder The overall objective of the evaluation process is to ensure that the final bidder selected to provide goods

or services has the capacity and capability to perform the requirements in the solicitation documents.

The CR or a delegate has authority to approve vendor selection. The bidders who were not selected

should be notified.

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Section 9: Procurement of Individual Consultant Services

9. 1 Consultants CRS hires individuals or organizations to provide technical services CRS employees are unable to provide. Consultants are usually hired to provide specialized knowledge or expertise that is not available within CRS. It is important to note that consultants are not considered employees of CRS and are procured to perform non-staff duties. Consultants should never supervise CRS staff. Consulting services must be procured competitively in accordance with this manual. It is good practice to prequalify consultants to provide specific technical services through a competitive process and prepare a list of approved consultants who can be called upon to provide specific services through a limited competitive procedure as described in this manual. The competitive process can also be done via a request for potential consultants to submit expressions of interest for specific services. CRS should keep a roster of potential consultants who can then be invited to submit full proposals. The requisitioner should design a SOW in accordance with Section 4.7 of this manual. The SOW must be measurable and results-oriented. The SOW should provide a definite period of time linked to deliverables within which the consulting services will be undertaken and completed. When putting together solicitation documents for consultant services, the CRS budget holder must indicate any expenses that CRS will cover under a consulting agreement. These may include travel costs, accommodation costs and per diem costs. CRS generally procures consultant services to obtain technical assistance, facilitate training, or carry out studies, analyses, or evaluations of its various projects. When requested to initiate procurement of consultant services, the procurement officer must review the donor award to identify any prior approval requirements.

9.2 Contracting of Public Officials to Provide Consulting Services In rare cases, CRS may hire public officials to provide consulting services. Procuring the services of

public officials must be carried out in a manner that ensures that CRS is not seen to be making

unauthorized payments or salary supplements to public officials.

Prior to procuring the services of a public official, the procurement officer must make sure the following

steps are carried out:

a. The public official’s employer (through his/her direct supervisor or ethics officer) must confirm in writing that the official is allowed to carry out consulting assignments.

b. The public official must acknowledge that the consultancy assignment will not be performed during the official’s regular working hours.

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c. The public official must certify that they will not in any way exercise influence on any projects being implemented in the country which may create a conflict of interest.

Once staff have completed the steps in 9.1 and 9.2, they should engage CRS’ Human Resources Department. Please visit CRS’ Global SharePoint then ‘support communities’ then ‘HR Global’ and then select ‘working with consultants’ for information on this process. Note: because CRS Global SharePoint is a secured site CRS personnel may have to provide outside auditors and donors with the HR Global procedures for consultancies.

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Section 10: Procurement during Acute Emergencies An acute emergency is defined as an unplanned shock (natural or manmade) that leads to urgent programming needs, with a related significantly increased requirement for operations focused activities on the part of CRS and/or local partners. An acute emergency lasts until programming and operational capacities can reach a similar balance as existed prior to the shock. When acute emergencies occur, the affected country program’s normal procurement structures and systems often quickly become overloaded causing bottlenecks to develop, which in turn leads to significant delays in sourcing much needed materials, inputs and services for our emergency response. Though the impact on our structures and systems does depend on the magnitude of the emergency shock, the resiliency of local markets, and the level of preparedness and capacity that the country program’s team has built up over time, even small emergencies can cause some degree of havoc for a period of time and throw off normal procurement planning and organization. In significant emergencies, it is quite normal for procurement processes to start to backlog quickly as procurement officers are not able to handle the increased demand and process requests fast enough, and unless mitigating actions are taken quickly the overloading will eventually create bottlenecks that will cause even more delays. In order to avoid potential problems and delays while carrying out emergency response missions, country programs and regions should consider how they can prepare for such situations and become familiar with agency recommendations and best practices in non-emergency down times. When an acute emergency strikes, all preparedness efforts will help to make sure that the right management decisions are made early on to enable an agile response. A well designed response that is flexible and adaptable to the operational reality at hand can both increase processing capacity and delivery speed, while also maintaining satisfactory internal control to avoid losses, fraud and misuse. The most important thing a procurement officer can do in an emergency response is to set up a simple prioritization system with emergency needs taking precedence over developmental needs. Within emergency needs, there should be two groups: 1) immediate operational needs and 2) next intervention needs. Input from the programing team is vital for determining what is in each category and what the proper sequencing should be. For non-strategic actions, outsourcing is always an option to consider when the costs are comparable, and the response duration is limited. It is possible to outsource kitting from suppliers, fleet transport from renting companies, and it is even possible to outsource sourcing functions from external procurement agents. The HRD team has created two emergency procurement guidance documents: Emergency Procurement Guidance Section I -- Office Setup and Emergency Procurement Guidance Section II -- Programming Sectors, which are quick reference guides on specifications for common materials needed during the acute stages of emergency humanitarian interventions. In addition, please see the HRD Emergency Field Operations Manual (EFOM). Please see CRS’ Emergency Procurement Recommendations & Best Practices - CRS Emergency Procurement Recommendations link

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, which has additional information that can help country programs prepare and better organize their procurement operations in an acute emergency. This chart examines the following interconnected focuses that work in a continuous improvement cycle: Continuous Improvement Cycle for Procurement during Emergencies

Under normal circumstances, the three key factors to consider during procurement are quality, delivery, and price. In emergency situations, the ranking factors change order of priority to: delivery, quality, and price. Delivery time becomes the critical factor in emergency situations, especially during rapid onset or acute emergencies. Humanitarian emergencies may override the principle of fair and open competition in procurement transaction in favor of limited competition or directed procurement. In the cases where the emergency needs are urgent, then the country program procurement team can use sole sourcing options and contact one known supplier in order to obtain a quote for the goods or services required. However, whenever operating conditions permit and there is adequate time to carry out limited competition, the country program procurement team must shift back to more inclusive procurement methods and try to contact two or three known suppliers and request quotes. During emergencies, it may be necessary to procure new goods and services not normally procured in regular programming conditions, and regardless of the urgency of the moment, the country program procurement team needs to make sure that all new vendors are vetted for eligibility prior to utilization.

1. Situational awareness:

Understand operational reality & markets well to develop SCM plan, & identify bottlenecks in real time

2. Expedite flow:

Clear specifications, prioritization & other proactive steps to increase

speed immediately, along with good tracking & communication

3. Increase flexibility:

Engage donor flexibility & ERRWR template to increase flow temporarily

with mitgating actions

4. Increase capacity:

Increase procurement unit capacities and sourcing options

longer term

EMERGENCY

RAPID RESPONSE

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The country program procurement teams must always consider the humanitarian principles of neutrality, impartiality and independence particularly in any man-made disaster or conflict, and if a supplier is known to have links to one of the parties in a conflict, such as a company that supplies or transports arms or other supplies to a military actor or other combatant, then it is not advisable to engage this actor for goods or services and to seek alternative options if available. In emergencies, the country program procurement team needs to adopt a proactive sourcing stance where the team goes out and gets the quotes and verifies quality as needed, instead of passively requesting information from suppliers. It is advisable to go to the vendors we have already vetted and used to see whether they have the required goods in stock and compare prices, quality and quantity available. If the quality and price are acceptable then the country program procurement team should issue a PO once proper CRS approval has been received. In order to facilitate program and operations planning, the country program procurement team should develop a procurement log or tracking sheet that can be provided to all requestors on a daily basis with updated estimated receipt and delivery times. During emergencies, CRS procurement standard operating procedures may be adjusted and waived in order to allow the country program to procure items faster. To make these adjustments the country program should use the Emergency Rapid Response Waiver Request (ERRWR) Template the adjustments will be for a limited time period to be determined based on the operational situation at hand. ERRWR Template link The country program should place special attention on establishing robust mitigating actions if using the ERRWR Template, and in particular they should consider bringing in high level TDY support for the duration of the waiver, such as a senior headquarters finance or procurement staff member or an internal auditor, who can focus on helping reduce risks, and supporting the country program to comply progressively more fully with CRS procurement SOPs and internal control requirements. IMPORTANT: CRS can never provide a waiver for any donor specified procurement requirement and any permission to deviate must be solicited from the donor directly in writing before any subsequent action may be taken. If the country program considers that the adjustments requested under Section B of the ERRWR Template would still be insufficient to enable for adequate procurement and delivery of needed goods and services in the context of the acute emergency, then the country program can request via their region (regional director or deputy regional director for management quality) to set up a conference call with the global procurement director, the vice president for overseas finance, and the humanitarian response director to discuss the possibilities of soliciting a blanket waiver. Blanket waivers are only considered for exceptional circumstances in large scale acute emergencies, and all parties on the conference call must agree on the need for the blanket waiver, its effective duration, and all mitigating actions to be taken to control potential risks and liabilities. The conditions for blanket waiver as discussed in the conference call would then be documented by the country program in an internal memo,

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which would be signed by the same authorities as the ERRWR: regional director, global procurement director, and the chief financial officer. The country program procurement team must make certain that process thresholds and approval levels are followed as set forth this manual, and by the country program and region (including adjustments made with ERRWR template), and each part of the procurement process should be fully documented to ensure compliance with CRS and donor regulations and requirements. However, documentation does not imply additional delays in the delivery of goods (which is the priority factor in emergencies), and should a particular situation dictate an expedited response, the situation should be documented— as with any purchase— noting the reasons, if warranted, why SOPs were not followed completely. This documentation can simply be a memo to file written by the responsible actor for the procurement, which justifies thoughtfully the creative solutions found to the purchasing problem at hand, and the memo should be signed by the CR to provide country program authorization. All procurement processes should adhere to donor and CRS requirements and ensure incurred costs are allowable and recoverable for the donor funding the procurement. Many of the key donor agencies that CRS works with have recognized the need to be practical in emergency contexts and have established guidance on how controls and requirements can be adjusted to increase flexibility and improve responsiveness (see table below). The country program procurement team should work with country program leadership and grant managers to engage donors directly to agree upon and activate any in build flexibility option, and obtain permission in writing prior to taking corresponding actions. It is advisable to have regular meetings between procurement and other parts of the agency to coordinate on procurement needs, specifications, plans, challenges, etc.

USG

a) Regulations permit sole sourcing during an emergency. b) A known supplier can be contacted to provide the goods or services needed in order to

address the humanitarian emergency.

DFID

a) Regulations require that procurement should be carried out using procurement agents. b) When procuring for emergencies, CRS should check the award for specific

requirements relating to procurement. c) Where the country program determines that it is in the best interests of the project for

procurement to be carried out through sole source, but the award requires limited competition, a justification should be provided and the donor asked to waive. Any procedures that CRS considers will result in a delay of the procurement process.

d) Where the project determines that the emergency will be managed after a period of time, CRS should limit the waiver period to six months to one year, after which competitive procurement procedures should be used for future procurements.

EU

a) Procurement rules allow humanitarian imperatives to override the principle of competition in procurement transaction where open international competitive tendering may not reflect the best use of administrative resources to complete procurement within a reasonable period of time.

b) In such cases, procurement should be done through the sole source method. In order to obtain competitive prices, the Global Procurement Department and country program must carry out regular research on the prices of goods or services that are usually procured by CRS during emergencies. Each country program should maintain a tab for “emergency suppliers” on their ASL.

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Contact information for these suppliers should also be collected and retained by CRS on their ASLs. Country program procurement teams should likewise carry out local and regional market studies to improve preparedness. The HRD team will be responsible for maintaining all the specifications associated with standard emergency relief supplies such as tarps, jerry cans, blankets, and etc.

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Section 11: Procurement of Construction Services Procurement of construction services must be carried out using a prequalification process. Potential bidders are invited to submit technical proposals on the basis of a conceptual design or performance specifications. Once the CRS requisitioner and the bid committee review the initial design, bidding documents may be amended and bidders requested to submit final technical and priced bids in the second stage. When the project is funded by USG and approval for construction is not included in the award signed between CRS and the donor, CRS is required to prepare a written request for waivers through the agreement officer AO to Management/Office of Acquisition and Assistants - M/OAA/Policy addressing a description of the construction activities included in the program activities, broken down by type, site and estimated cost Waivers are currently granted for:

a. construction activities carried out under Food for Peace for disaster relief (including that using program income and monetized proceeds);

b. construction activities carried out by DCHA/OTI through grants under contracts (e.g., support which implements fast transition contract or SWIFT) to the extent current practice is maintained;

c. construction activities conducted by DCHA/OFDA; d. construction activities carried out by the West Bank/Gaza Mission; and e. construction activities conducted by DCHA/ASHA.

CRS should ensure that procurement is carried out in accordance with the specific requirements of the award. Procurement should confirm compliance with local laws related to procurement: obtaining authorizations from local/municipal/government authorities have an architect or other technical person or office that will review and certify that the construction company is meeting technical requirements.

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Section 12: Donor Approval Requirements for Award In addition to the donor approval requirements discussed in earlier sections of this manual, CRS donor regulations include specific requirements for approval of the procurement process prior to the award of a contract to the selected bidder. The approval requirements vary from one donor to the next. Some donor approvals are based on the value or the type of goods being procured, while others are based on the type of the award anticipated. The donor’s authorized representative provides prior approval in writing.

12.1 USAID Requirements USAID’s Standard Provisions for U.S. Nongovernmental Organizations provides a list of commodities that

are ineligible for purchase with USAID funds as well as a list of those which are restricted. These lists

can be found here: https://www.usaid.gov/sites/default/files/documents/1868/303maa.pdf.

If the USAID Agreement has not provided the written approval for the purchase of a restricted commodity, then before making the purchase, CRS must seek the prior written approval or correctly document an existing waiver. For information on how to acquire prior approval, seek a waiver from a requirement, or document the waiver, consult USAID ADS Chapter 312 Eligibility of Commodities, which can be found here: https://www.usaid.gov/sites/default/files/documents/1876/312.pdf. In the case of USAID funded contracts, the value is $500 and a useful life is two years if not included in the contract. As already discussed above, procurement of construction services that are not approved in an award

requires prior approval by the agreement officer. Detailed requirements are contained here:

http://www.usaid.gov/sites/default/files/documents/1876/312.pdf

12.2 Global Fund Requirements

The Global Fund guidelines require that prior approval be obtained via an approved grant-specific PSM plan for the procurement of goods or services, including pharmaceuticals. In addition, the Global Fund may require prior review and approval of solicitation documents such as RFPs. CRS program staff should confirm this with their fund portfolio manager as early as possible in the procurement process. In some instances, the Global Fund may take a country-by-country approach in determining the level of approval that they will require with regards to procurement, based on a country’s risk profile and past experience. CRS country programs must ensure that they have confirmed in writing the levels of approval required for each grant with the Global Fund.

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12.3 DFID Requirements

DFID generally uses approved procurement agents to carry out procurement of goods valued above GBP 100,000. In addition, single procurements valued at GBP 100,000 and above require DFID prior approval. The procurement officer should review each award and determine the prior approval requirements of the award.

12.4 Requirements of UN Agencies UN Agencies usually indicate the approval requirements for procurement in each award document. The procurement officer should ensure that the procurement requirements in the award are reviewed during procurement planning so that any prior approval requirements are fulfilled.

12.5 World Bank Requirements When the procurement is funded through a World Bank project, review and approval is required at each stage of the process. The CRS procurement officer must seek prior approval for the procurement plan, the solicitation documents, the results of the bid evaluations and award recommendations, including the draft contracts.

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Section 13: Contract Negotiation Procurement may negotiate with the bidder that provides the best VFM during the RFQ process after the selection process has been completed, but only in very exceptional cases such as:

a. when the available budget is not sufficient to purchase the requested item(s) and the bidder agrees to reduce the price;

b. when the offer contains additional equipment or services which were not required in the solicitation document. These negotiations should seek a lower price through the removal of the additional items from the bid; or

c. when a marginally higher quantity is required compared to original quantity in the

solicitation document leading to a potential quantity discount.

Negotiations during an RFP process are allowed, if provided for in the solicitation document and the selection of a number of bidders who meet the competitive range in the technical evaluation has been completed. Negotiations are carried out as follows:

a. Bidders are requested to submit a BAFO. The objective of the BAFO is to enhance competition, and give CRS the best VFM. The purpose of the BAFO, negotiations is to clarify ambiguities, correct obvious mistakes, point out weaknesses and deficiencies, and generally seek improvements in both the technical and financial aspects of the offers (e.g., regarding lower prices, prolonged warranties, additional discounts, shorter delivery time, etc.)

b. Bidders chosen to submit a BAFO must be provided with information about the

deficiencies in their bid, and be asked in writing to submit a decisive and final offer as a follow up to their proposal by a certain deadline.

c. The bidders must be informed that price increases will not be accepted, however, they

may decline to alter the terms of their original proposal, and this decision will not render them unacceptable. The request to submit a BAFO should not contain any information regarding the evaluation, or any information on the chances for contract award.

d. Once the BAFOs are received, they are evaluated and a final bidder is selected for award

of a contract. In negotiating the contract, each CRS country program/region should ensure that local taxes are included in the contract. The country program should also check with the donor to find out whether they have a bilateral agreement with the country government under which CRS can obtain tax exemption for goods or services procured for the project. The table below provides examples of elements that can be negotiated during the procurement process.

Table 15: Elements that can be Negotiated Prior to Contract Signing

Elements Example

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Technical aspects

Warranties, after sale service, life cycle support maintenance agreements, quality output issues

Remedies Liquidated damages for non-performance Special terms Type of bonds, guarantees, insurance, payment schedule Management information

Frequency and content of reports, acceptance criteria for certain milestones.

Timeframes Duration of contract, key milestones, delivery dates, response times. Personnel Key team members and focal points, subcontracting arrangements. Price When available budget is not sufficient to purchase items, offer contains

additional services

13.1 Contract Preparation Once the final selection is made and all the relevant approvals have been obtained, the procurement officer together with the technical and legal team, if applicable, prepares a contract for award to the selected bidder. A written contract is required to formalize a commitment by CRS to procure goods or services from the selected bidder. A contract usually includes:

a. a clear and complete description of the work; b. the price, basis of payment; and method of payment; c. the schedule of activities and delivery date; d. a reference to solicitation documents; a. both CRS and donor general and specific terms and conditions; CRS’ code of conduct; and b. other documents as necessary (e.g., written records of bid conferences, email/mail

correspondence, samples, etc.) When CRS is procuring goods to be delivered in a different country, it is important to include the applicable Incoterms® in the contract. The contract should also include information relating to CRS requirements on:

a. packing goods for shipment; b. export and import clearance requirements; c. transport from factory to port/airport of shipment and international transport; d. transport from port of arrival to final destination handling; and e. inspection and acceptance requirements.

13.2 Types of Contract In a competitive solicitation process, it is good practice to select the appropriate contractual instrument when preparing the solicitation documents and to include a sample copy of a contract as an annex to the solicitation documents.

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Firm-fixed-priced Contracts A firm-fixed-price contract provides for a price that is not subject to any adjustment. This contract type places maximum risk and full responsibility for all costs and resulting profit or loss upon the winning bidder. It provides maximum incentive for the proposed bidder to control costs and perform effectively and imposes a minimum administrative burden upon the contracting parties. A firm-fixed-price contract is suitable for acquiring commercial items or for acquiring other supplies or services on the basis of reasonably definite functional or detailed specifications when the CRS procurement officer can establish fair and reasonable prices at the outset, such as when:

a. there is adequate price competition; b. there are reasonable price comparisons with prior purchases of the same or similar

supplies or services made on a competitive basis or supported by valid cost or pricing data;

c. available cost or pricing information permits realistic estimates of the probable costs of performance;

d. performance uncertainties can be identified and reasonable estimates of their cost impact can be made and the winning bidder is willing to accept a firm-fixed-price representing assumption of the risks involved; and

e. payments under firm-fixed-priced contracts are made based on delivery of the goods procured or specific deliverables required under procurement for services.

Cost-reimbursement Contracts Cost-reimbursement contracts provide for payment of incurred costs to the extent prescribed in the

contract between CRS and the winning bidder. These types of contracts establish an estimate of total

cost for the purpose of establishing a ceiling that the winning bidder may not exceed (except at its own

risk) without the approval of the CRS procurement officer.

Cost-reimbursement contracts are suitable for use only when uncertainties involved in contract

performance do not permit costs to be estimated with sufficient accuracy to use any type of fixed-price

contract.

Time-and-materials Contracts A time-and-materials contract provides for acquiring supplies or services on the basis of:

a. direct labor hours at specified fixed hourly rates that include wages, overhead, general and administrative expenses, and profit; and

b. actual cost for materials (material costs include raw materials, parts, subassemblies, components, and manufacturing supplies, and may include collateral items such as inbound transportation and in-transit insurance). In computing material costs, the bidder must be instructed to consider reasonable overruns, spoilage, or defective work

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(unless otherwise provided in any contract provision relating to inspecting and correcting defective work).

A time-and-materials contract may be used only when it is not possible to accurately estimate the extent or duration of the work or to anticipate costs with any reasonable degree of confidence at the time CRS awards the contract.

13.3 Contracting Instruments Contracting instruments are the contractual format used when entering into an award with the selected vendor or winning bidder. CRS uses a number of contracting instruments outlined below. Purchase Orders A PO is a commercial document issued by CRS to a selected vendor, indicating types, quantities, and agreed upon prices for products or services. Acceptance of a PO by the selected vendor forms a contract between the CRS and selected vendor. No contract exists until the PO is issued by CRS and signed by the selected vendor, or if the vendor delivers the requested goods or performs the service after receipt of the PO. Issuance of a PO would be desirable for all purchases, regardless of their value. However, a PO will be required for any purchases of goods or services valued at $500 and above. POs should:

a. specify the quantity of supplies or scope of services ordered; b. contain a specific date by which delivery of the goods or performance of the services is

required (this must be documented in the CRS goods received note); and c. contain information on inspection and acceptance when goods are delivered.

The CRS procurement officer review CRS’ Procurement Contracts policy (POL-PUR-POS-001) Procurement Contracts Policy link to obtain guidance on whether to issue a purchase order or contract for goods or services being procured. Advance copies of the PO or equivalent notice should be given to the consignee(s) for material receipt purposes. Receiving reports should be prepared immediately upon receipt and acceptance of supplies by CRS staff.

Blanket Purchase Agreements A blanket purchase agreement is a simplified method of filling anticipated repetitive needs for supplies or services by establishing an agreement with a selected bidder or a number of bidders. BPAs are used to purchase off-the-shelf office supplies. BPAs should be used by CRS when a wide variety of supplies or services are generally purchased, but the exact items, quantities, and delivery requirements are not known in advance and may vary considerably. BPAs can be limited to individual items or commodities, or permit the supplier to provide unlimited supplies or services. BPAs may be established with more than one supplier for supplies or services of the same type to provide maximum practicable competition.

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BPAs must be awarded based on the necessary quantities projected in the initial year the contract is signed. CRS policy requires that BPAs be issued for one year and be renewable once. The BPA should indicate the maximum and minimum quantity or cost of the services/goods to be purchased under the BPA. Prices offered in the BPA must be fixed to the term of the BPA. Indefinite Quantity Contracts IQCs are similar to BPAs and are usually issued for services rather than goods. IQCs must be issued for a fixed period of one year and are renewable for one additional year. Work orders are issued to suppliers each time there is procurement of services. IQCs should include all necessary terms and conditions that the supplier is required to adhere to. These should include specific donor requirements. Under DFID awards, IQCs are referred to as framework agreements and work orders are referred to as call down contracts. Some services that CRS procures through IQCs include: freight forwarding service; vehicle rental, maintenance and repair; maintenance and repair of generators, air conditioners, office equipment, the telephone exchange system, electrical installations and plumbing; security service, etc. Consulting Agreements CRS issues consulting agreements for services procured using an RFP. Consulting agreements can be issued to individual consultants or to companies. The consulting agreement should have a detailed scope of work for the services being procured, the deliverables expected by CRS and the timelines of the deliverables. All of the relevant donor requirements must be included in the consulting agreement. Consulting agreements are issued by HR. Refer to section 9.1 and 9.2 for guidance on this process. Contract Modifications All modifications to the initial terms and conditions of the contract must be in writing and signed by the CRS authorized representatives and the successful bidder. Amendments should not substitute the initial contract with another contract which contains a different scope of work or prices. Modifications must be limited to a change in the number goods or scope of services or the LOE of the services. When CRS receives a request from a supplier to modify a contract, the procurement officer must analyze its impact on the schedule of completion, price, quantity and quality. A contract amendment may include:

a. an extension of time to complete the contract; b. a change to price; c. an addition of services to the SOW or request for additional goods; and d. administrative changes like change of name, legal status, address, etc.

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Only an authorized CRS official should amend a contract. Unofficial changes, in the form of constructive changes or unauthorized commitments can be as detrimental to CRS’ procurement process as purchases originally made without appropriate delegated authority. Requests for amendments should include:

a. a revised scope of work; b. justification as to why the modification is necessary; c. a revised cost estimate accounting for increases and decreases in the products or

services; d. the approval date of initial requisition; and e. a brief description of the amendment.

Amendments to contracts should not be made to request goods or services that are different from the original procurement from the supplier.

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Section 14: Receipt, Inspection and Acceptance of Goods

14. 1 Receipt and Inspection of Goods

All goods must be received and processed by CRS employees responsible for receiving. Goods purchased

by CRS country programs/regions can be delivered either to the local CRS office, a regional office, a sub-

recipient’s office or to one of the sub-recipient's warehouses, depending on the nature of the item. The

receiving staff should compare the received goods and the delivery note to the contractual document.

The delivery must be inspected to examine or test the goods to ensure that they conform to order

requirements. Where quantities of goods are involved, inspection also means verifying that the correct

number of items has been delivered. Variations in quantities authorized by the order or contract may be

accepted. Quantities accepted must be documented. Receiving staff must confirm that the request for

payment is based on quantities delivered and accepted.

The receiving officer should examine the physical structure of the goods to make sure that the proper

type and kind of goods have been delivered and that they conform to the specifications in the contract.

They should check for signs of damage, such as dents and tears. Any damage must be documented.

Where required, the officer should perform an operability check to ensure that the goods perform or

operate properly. When inspecting goods that have a specific shelf life, the officer should check the

preservation of the product to make sure it has not spoiled, rusted, or deteriorated.

When specific packaging is required, the officer should check packaging and labeling to ensure that they

comply with contract requirements. The adequacy of the packaging should also be checked.

Any items that do not conform to appropriate standards should not be accepted. The goods received

note must be retained by CRS and submitted to the Global Procurement Department and the Finance

Department. A copy must be provided to the supplier if any non-conforming item(s) are found.

Special Requirements In addition to CRS staff involved in the process of receiving and inspection of goods, CRS should hire an external surveyor to observe and report on the quality and quantity of goods received for all consignments for which either the donor or the local government requires an independent survey or testing at delivery. During the delivery process, the receiving officer and/or the surveyor should compare the contents of the shipment to the contract and delivery and packaging slip to make sure that the goods delivered match the goods ordered.

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After verifying the goods received, the receiving officer should list the number, type, and condition of the items that are received on the goods received note or complete the appropriate receipt information on the waybill and retain a copy. Any reservations or discrepancies must be noted on the delivery document and reported immediately to the Global Procurement Department and requisitioner.

Discrepancies in Delivery Documents Each delivery must be accompanied by documents which identify the items purchased and the source of the items. The delivery documents facilitate import clearance, proper handling and delivery to CRS. There are specific documents required for each item delivered which must be indicated in the contract. These usually include (especially for health products):

a bill of lading or waybill; certificate of value or commercial invoice certificate of origin and plant certificate; quality control certificate – including contents/ingredients analysis; electronic cargo tracking note; WHO good manufacturing practices certificate; ISO certificate; user guide and/or other advice for safe/optimal handling, usage and disposition; product registration/authorization for use in import country; and certification of production and expiry dates, also written on each box and individual

packaging. The receiving officer should verify the documentation for completeness and accuracy against the contract requirements. Discrepancies must be reviewed to determine their impacts on CRS’ ability to clear the goods through customs, obtain title, store, and distribute the goods. Where there are significant discrepancies, the documents must be corrected and reissued prior to CRS receiving the goods.

Discrepancies in the Quantity of Goods When receiving goods, the receiving officer must ensure that the quantity ordered is the same as the quantity received. Discrepancies must be dealt with in the following ways:

Where the delivered items are fewer than the quantity ordered the receiving officer should record the quantity of items that were actually received. The difference between the received items and the ordered items should also be recorded.

Where the delivered items are more than the quantity ordered, the receiving officer should record the quantity of goods delivered, the quantity ordered and the overage. If there is an overage, the Global Procurement Department should be notified so they can contact the supplier to resolve the issue.

The receiving officer should inform the procurement officer. Payment should be made for

quantities that are received as ordered. Payments for short receipts should be pro-rated if

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accepted by designated CRS officials. Excess receipt should be reported to the CRS approving official for guidance and handed on a case-by-case basis.

Defects in Quality The technical quality of the goods must be inspected and any defects identified and recorded. Defects

in quality must be dealt with in the following way:

CRS should record all damaged items. Depending on the nature and extent of the damage, CRS

may choose to accept the goods at a discounted price.

If the defect makes the goods unusable or dangerous, the items must be rejected by the CRS

receiving office.

The reasons for acceptance of goods with insignificant defects or the rejection of goods with

significant defects must be documented by the receiving officer and submitted to the

procurement officer who will address the issue with the supplier.

If a supplier is required to pick-up the rejected goods from CRS offices or warehouses and the

supplier is unable to pick them up immediately, the goods must be temporarily placed in a

quarantine area. CRS and the supplier should sign a written agreement specifying the terms of

managing the quarantined goods and the timeframe the goods will be kept in quarantine before

the supplier removes them. If the quarantine area is a CRS facility, CRS reserves the right to

charge the supplier a storage fee for the associated burden.

Even if the packaging is damaged or defective, CRS may still decide to accept the goods and store

them in a suitable location. The acceptance must be documented and the reasons for acceptance

must be stated.

14.2 Receipt and Acceptance of Delivery of Services Services are usually delivered to the technical requisitioner. The acceptance of services must be based

on the consultant or service provider rendering the services in accordance with deliverables specified

in the contract.

The contract between CRS and the service provider or consultant should provide for actions to be taken

when the services or deliverables do not meet the required standards. CRS may withhold payment from

a service provider or consultant until corrective measures are taken to ensure that the services and

deliverables meet the required standards.

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14.3 Supplier Monitoring Once the contract has been awarded, the CRS procurement officer, or the requisitioner, monitors the

supplier’s performance of contractual requirements. The level of monitoring depends on the nature, size

and complexity of the goods or services.

It is good practice for the procurement officer to place an occasional call to the supplier to follow up on

delivery status of non-critical goods or services. However, for large, complex contracts, the procurement

officer and technical requisitioner must request extensive reports, regular progress meetings, formal

testing, and technical reviews and audits.

CRS procurement professionals should review their “open orders” at least monthly. Any past due

orders should be expedited to determine their status and the due date changed once the supplier has

confirmed the new delivery date. Orders that have been received that still have a small residual

balance should be closed if it is determined that no more deliveries by the supplier will be performed.

When a supplier has indicated that certain items are going to be late or on backorder then

communicate the new delivery date to the end-user/department.

The CRS procurement officer must maintain regular communication about contract performance with

the supplier in order to ensure that the supplier complies with contract terms and conditions. It is best

practice for communication procedures to be included in the contract with the supplier. Each party

should also establish controls to ensure that they follow the procedures. The procurement officer and

the supplier should also come up with an oral and written reporting system, which highlights progress

and problems and measures them against expected performance and results.

When procurement is for complex construction, contract performance and progress review meetings

must be held between the procurement officer, the technical requisitioner and the supplier at

appropriate intervals to ensure that work is proceeding as required in the contract. These meetings

could be held as frequently as every two weeks or as infrequently as every two months.

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Section 15: Payment of Suppliers

Once a supplier has adequately delivered the goods or services procured by CRS, they must be paid in a

timely manner, according to the terms of the contract. Payments must be processed according to the

contract and upon certification of requisitioner if required in the contract.

Financial securities should also be liquidated as necessary (e.g., release of bid bonds, performance

bonds, and advance payment bonds once the reason for requesting them has become moot).

Payment may be made to a supplier in one of the following ways:

a. Advance payment: An advance payment is a sum of money paid to the supplier upon

signature of the contract, in anticipation of identified early expenses. Advance payments

to suppliers should be avoided whenever possible. Advance payments may be necessary

for such things as rent, tuition, insurance premiums, and expenses for work performed

in particular countries. An advance payment needs to be justified and requires special

approval before the procurement officer can include it in a contract. All reasons

therefore need to be documented. Above certain thresholds, suppliers receiving advance

payments must provide guarantees (e.g., bank guarantees). Advance payments must be

made in accordance with CRS’ Advances to Vendors (PRO-FIN-REC-009.10) policy.

b. Partial/installment payment: A partial payment is based on the acceptance of a

particular product or service. To process a partial payment, a document must be on file

that confirms CRS’ partial acceptance. This confirmation usually is in the form of an

invoice or delivery ticket detailing the goods or services and signed by a CRS receiving

officer to accept the product or service.

c. Progress payment: A progress payment, made before final work or deliverables are

accepted. This form of payment must be used for long-term service work that involves

an end item, such as a report. If progress payments are authorized, they should normally

be tied to a milestone in contract performance, such as the delivery and acceptance of a

draft report.

d. Final payments: A final payment is a payment made in acknowledgement/approval of

the completion of all contract performance. The Finance Department will process final

payments based on the supplier’s invoice, the receipt of a receiving report or delivery,

and the PO or contract.

e. Holdback payments (retainage): Holdback payments are used in works and complex

consulting assignments to ensure completion of the contract and in some construction

contracts to make sure that the general supplier has paid its lower tier vendors. The

holdback payments are retained until the supplier has provided proof it has discharged

itself of all its obligations under the contract. It is good practice to holdback 10 to 15

percent of each invoice sent by the supplier.

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f. Supporting documentation for payments to suppliers must comply with the Finance

Department’s Transaction Documentation Policy and the documentation checklists

included in the policy (POL-FIN-DOC-008).

15.1 Payments in Country Programs/Regions This section refers to purchases processed by overseas country program/regional offices and paid by their local finance departments. All payments must be authorized in accordance with the authorization chart of CRS’ Internal Controls Policy (POL-FIN-ICS-024). When accounting for procurement transactions, country programs must comply with the Financial Transaction Processing Procedure (PRO-FIN-DOC-008.01) issued by the Finance Department.

Payment for Goods and Services Designated finance personnel is responsible for ensuring that proper documentation is on file to demonstrate that procured goods and services have been received and payment has been approved. The Finance Department will review each payment request package for completeness of information, necessary approvals and required supporting documentation. To avoid paying incorrect and perhaps fraudulent invoices, finance staff will look for a three-way match between the vendor’s invoice, the purchase order and the receiving report by comparing the quantities, price per unit, terms, etc. on each of the documents. After the vendor’s invoice is validated by the three-way match, it will be processed for payment. If a payment request package is missing required supporting documentation, details or approvals, the Finance Department will return or hold on the payment release until such deficiencies are addressed satisfactory. The Finance Department then issues payment to the supplier. The suppliers must be requested to acknowledge the receipt of payment, and the Finance Department will maintain this documentation on file. Click here for CRS’ country program business process flow.

15.2 Payments in Headquarters

This section refers to purchases processed by the headquarters Finance Department. All payments must be authorized in accordance with the HQ Expenditure Authorization policy # POL-FIN-ICS-024.03.

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Section 16: Contract Closeout Contract closeout activities are straightforward, especially for small dollar value contracts and PO’s. However, in complex and high dollar value contracts involving progress payments and/or securities, the CRS procurement officer must ensure that the contract file is properly closed out. The close out process ensures that all contractual obligations have been met, and that residual obligations — such as warranties, guarantees and after-sales service and support — are clearly defined in terms of responsibility, liability, procedures and timeframes. Contract closeout occurs once the supplier has fulfilled all contractual obligations. It includes the following key steps: Table 16: Steps in the Closeout Process

Step Action 1 Review and confirm appropriate action taken according to contract closeout checklists. 2 Prepare final contract performance report (jointly by requisitioner and procurement

officer), including lessons learned. 3 Prepare supplier assessment form and put in supplier records. 4 Issue final acceptance on the basis of the requisitioner’s report. 5 Make final financial settlements. 6 Liquidate/return bonds and/or securities. 7 Record any residual obligations (warranties, etc.) and advise requisitioner of procedures. 8 Close out contract file.

16.1 Lessons Learned It is a good practice for the requisitioner and the procurement officer to complete a lessons learned report, commonly referred to as an after action review. This allows CRS to gather and use information to improve chances of success of future procurement actions. Lessons learned should cover, as a minimum, the following questions and topics:

a. Was the requirement adequately defined? b. Were the evaluation criteria appropriate? c. Was the evaluation method appropriate? d. Did suppliers make any suggestions? e. What problems were encountered? f. Recommendations to avoid similar situations (if applicable).

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Section 17: CRS Specific Office Location Appendix

CRS location where this manual is being followed: _____________________________________________

Instructions: CRS has one procurement manual which supports our agency strategic priorities FY14-18.

Each CRS location is required as necessary to create a CRS location specific appendix here. Please

provide information for your CRS location:

i. Mission Statement (optional):

ii. Chart of authorization matrix for this CRS location: iii. What is the Petty Cash disbursement limit at this location:

iv. Dollar threshold for competitive bidding involving requiring (3) supplier quotations/bids:

v. Specify how sealed bids will be handled, how many CRS employees will be on bid committees

and the threshold amounts for when they should be used.

Table 11: (instructions: copy and paste the thresholds table from page 49 here.

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References

Interagency Procurement Working Group. (2006). UN Procurement Practitioner’s Handbook. Retrieved

from http://www.unicef.org/supply/files/UN_Practitioners_Handbook.pdf

Department for International Development. (n.d.). Standard Terms and Conditions – Service Contracts.

Retrieved from

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/457696/DFID_Sta

ndard_Contract_Section_2_Standard_Terms_and_Conditions-Sept15.pdf

European Commission. (2013). Guidelines on the Prevention and Management of Conflicts of Interest in

EU Decentralized Agencies. Retrieved from http://europa.eu/agencies/documents/2013-12-

10_guidelines_on_conflict_of_interests_en.pdf

The Global Fund. (n.d.). Governance and Core Documents. Retrieved from

http://www.theglobalfund.org/en/documents/governance/

United States Government Office of Management and Budget. (2014). Uniform Administrative

Requirements, Cost Principles and Audit Requirements for Federal Awards. Retrieved from

http://www.gpo.gov/fdsys/pkg/CFR-2015-title2-vol1/pdf/CFR-2015-title2-vol1-part200.pdf

The World Bank. (2014). Procurement Guidelines. Retrieved from

http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/PROCUREMENT/0,,contentMDK:20060840~pageP

K:84269~piPK:60001558~theSitePK:84266,00.html

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Resources Note: resources reside on CRS Global SharePoint which is a secured site. CRS personnel may have to provide outside auditors and donors the documents in this resource section.

Request for Goods and Services – RFGS RFGS link

Conflict of Interest - Conflict of Interest link

Global Procurement P2P Business Process Flow - Global Procurement P2P Business Process

Flow

Country Program and Region P2P Business Process Flow - CP and Regional P2P Process link

Global Procurement and Country program/Region Procurement P2P Business Process Flow -

Global Procurement and CP/Regional P2P Process link

Local Purchase Approval and Bid Review Form Template - Local Purchase Approval Form link

List of commodities in country programs/Regions that are exempt from Local Purchase

Approval regardless of requisition value. List of commodities exempt from HQ review

List of commodities at headquarters that do not required going through the requisitioning

process. HQ - list of procurements not needing a requisition

Template for Procurement Plan, Goods and Services - Procurement Plan link

Approved Supplier List - ASL - Approved Supplier List Template link Due Diligence Supplier

Checklist link ASL Policy link

Health Products - Health Products Annex link

Sole-Source Authorization Form - Sole-source Authorization Form link

Request for Proposal Template - CRS RFP Template link

Detailed Request for Quote Goods and Services Templates RFQ for Goods Template link RFQ

for Services Template link

Long Term Agreement - LTA link

International Commercial Terms – The Incoterms® rules - INCOTERMS link

Bid Evaluation Plan Template - Bid Evaluation Plan Template

Bid/Price Analysis/Bid Committee Templates - Bid Price Analysis Comparison Template link

Request for Goods and Services Template. - RFQ for Goods Template link RFQ for Services

Template link

Emergency Recommendations and Best Practices CRS Emergency Procurement

Recommendations link

Emergency Local Purchase Waiver Request Template - ERRWR Template link

Procurement Contracts Policy POL-PUR-POS-001 - Procurement Contracts Policy link

Procurement Officer JD - Procurement Officer JD link