Monitoring and Monitoring and Evaluation in Evaluation in

Humanitarian Aid: Humanitarian Aid: Quality ProceduresQuality Procedures

PROJECT – STRAND 1 – Training and Capacity BuildingPROJECT – STRAND 1 – Training and Capacity Building

ANNEX VANNEX V

Procedure for contracts for Procedure for contracts for supplies, work and servicessupplies, work and services

in collaboration within collaboration with

ANNEX VANNEX V

Defines the procedure to follow for contracts Defines the procedure to follow for contracts for the purchase of services, supplies and work. for the purchase of services, supplies and work. The types of purchasing procedures to follow The types of purchasing procedures to follow are divided in relation to:are divided in relation to:

Types of contractsTypes of contracts (services, supplies and (services, supplies and work)work)

Value of purchasing contractsValue of purchasing contracts for each for each type of contract (services, supplies and work)type of contract (services, supplies and work)

ANNEX VANNEX V

The Annex is organized as follows:The Annex is organized as follows:

IntroductionIntroductionIntroductionIntroduction General principles and structure of General principles and structure of

documentdocument

1. Definition 1. Definition of aimof aim

1. Definition 1. Definition of aimof aim

Objective of procedure and general Objective of procedure and general principlesprinciples

2. Eligibility 2. Eligibility criteriacriteria

2. Eligibility 2. Eligibility criteriacriteria

Criteria and causes for the inclusion or Criteria and causes for the inclusion or exclusion from the proceduresexclusion from the procedures

3. Common 3. Common rulesrules

3. Common 3. Common rulesrules

Basic rules for all proceduresBasic rules for all procedures

4. Types of 4. Types of contractscontracts

4. Types of 4. Types of contractscontracts

Forms of procedures according to type of Forms of procedures according to type of contractcontract

5. Special 5. Special rulesrules

5. Special 5. Special rulesrules

Primary Emergency, Emergency, Primary Emergency, Emergency, StocksStocks, , Procurament CentersProcurament Centers, , Co-funding…Co-funding…

ANNEX VANNEX V

Contracts for Contracts for supply, workssupply, works and and services services have the have the following characteristics:following characteristics:

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A. Supply contracts

Property contracts Rent of land, existing buildings or other properties. ECHO can’t finance the purchase of properties.

Supply contracts Purchase, leasing, rent or hire purchase, with the purchase option or not, of products. The delivery of products can include settlement, installation and maintenance expenses.

B. Work contracts

Work contracts They cover execution – or execution and design – costs of works, or realization of work corresponding to the specific demand. A work is the result of a construction work or of a civil engineering in its total, enough to fulfil a technical or economic function.

C. Service contracts

Service contracts They cover intellectual and non-intellectual service costs, which differ from the ones covered by the supply and work contracts. They also include study and technical assistance contracts.

ANNEX VANNEX V

ATTENTIONATTENTION ! A contract which covers both the supplying of products and A contract which covers both the supplying of products and

services shall be considered a service contract whenever the services shall be considered a service contract whenever the value of the services exceeds that of the products included in value of the services exceeds that of the products included in the contract. the contract.

The same principle shall apply to define the procedure to be The same principle shall apply to define the procedure to be followed in other followed in other hybrid contractshybrid contracts..

In the presentation of a project the NGO shall In the presentation of a project the NGO shall specify in specify in ANNEX I how it intends to follow the purchasing procedureANNEX I how it intends to follow the purchasing procedure. . Purchasing procedures implemented by the NGO beyond the Purchasing procedures implemented by the NGO beyond the contracting procedures will be assessed in the audit.contracting procedures will be assessed in the audit.

ANNEX VANNEX V

FORMS OF PROCUREMENT PROCEDURESFORMS OF PROCUREMENT PROCEDURES

Open Open

Restricted Restricted

Open Open

Restricted Restricted

International International procedureprocedure

Local Local procedureprocedure

Negotiated procedureNegotiated procedure

Single quoteSingle quote

Form Form Action Action NotesNotesOpen Open

ProcedureProcedureInternational or local International or local publication of the tender publication of the tender notice and call for notice and call for expressions of interest expressions of interest (open to all potential (open to all potential economic operators)economic operators)

Tender procedures may be Tender procedures may be international or local.international or local.

Call of interest shall be open Call of interest shall be open and shall specify at least rules and shall specify at least rules governing the governing the lodging/submission and lodging/submission and presentation of tenders, presentation of tenders, exclusion, selection & award exclusion, selection & award criteria and set out in technical criteria and set out in technical specifications. specifications.

Restricted Restricted procedureprocedure

(1a) Call for expressions (1a) Call for expressions of interestof interest

(1b) Publication of(1b) Publication of contract noticecontract notice

(2)(2) Invitation to tender Invitation to tender (open to all who (open to all who satisfy selection satisfy selection criteria)criteria)

(3)(3) Selection of Selection of candidates (from list candidates (from list or those who or those who answered the answered the contract noticecontract notice))

Procedure may be international Procedure may be international or local. or local.

Only those candidates Only those candidates satisfying selection criteria and satisfying selection criteria and invited may submit a tender. invited may submit a tender.

The number of candidates The number of candidates invited to submit a tender may invited to submit a tender may not be less than 4 (number not be less than 4 (number shall be sufficient to ensure shall be sufficient to ensure genuine competition. genuine competition.

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Form Form Action Action NotesNotesNegotiated Negotiated ProcedureProcedure

Simultaneous Simultaneous invitation and in invitation and in writing by authorities writing by authorities to tenders to to tenders to negotiate terms of negotiate terms of contract contract

Number of candidates shall not be Number of candidates shall not be less than 4 (number shall be less than 4 (number shall be sufficient to ensure genuine sufficient to ensure genuine competition)competition)

Single quoteSingle quote 1 estimate gathering 1 estimate gathering ((a) in primary emergencies or a) in primary emergencies or emergency operations (cfr. anche ANNEX emergency operations (cfr. anche ANNEX V, cap. 5.1.). The NGO must be able to V, cap. 5.1.). The NGO must be able to present reasons that prevented larger present reasons that prevented larger consultationconsultation;;

(b) (b) whenever no tenders have been whenever no tenders have been submitted in response to an open, submitted in response to an open, restricted or negotiated procedure after restricted or negotiated procedure after initial procedure has been completed, initial procedure has been completed, provided original terms have not been provided original terms have not been altered;altered;

(c) (c) whenever for technical reasons, or whenever for technical reasons, or reasons connected with the protection of reasons connected with the protection of exclusive rights the contract can be exclusive rights the contract can be awarded only to 1 particular economic awarded only to 1 particular economic operator;operator;

(d) (d) for additional contracts consisting for additional contracts consisting in repetition/renewal of services, works, in repetition/renewal of services, works, or supplies;or supplies;

(e) (e) for additional works & services not for additional works & services not included in the original contract due to included in the original contract due to unforeseen circumstances and necessary unforeseen circumstances and necessary for the performance of the contract;for the performance of the contract;

(f) (f) for for property contractsproperty contracts after after prospecting the local marketsprospecting the local markets

(g) whenever orders are placed with a (g) whenever orders are placed with a humanitarian procurement centrehumanitarian procurement centre

(i) for contracts of a value < 5,000 € (i) for contracts of a value < 5,000 €

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ANNEX VANNEX V

A.A. Supplies subject to international quality Supplies subject to international quality standards, and/orstandards, and/or

B.B. Supplies relative to the implementation of Supplies relative to the implementation of activity in the field of activity in the field of healthhealth, , nutritionnutrition, , water and sanitationwater and sanitation. .

C.C. Exceptionally, products not available in Exceptionally, products not available in the country of the operation the country of the operation

all those supplies not considered all those supplies not considered dedicated suppliesdedicated supplies

In the new FPA, ECHO makes distinction in In the new FPA, ECHO makes distinction in supply contracts between:supply contracts between:

Form Form ECHO definitionECHO definition

Dedicated Dedicated SuppliesSupplies

Non-dedicated Non-dedicated commoditiescommodities

ATTENTIONATTENTION !ANNEX VANNEX V

The classification of all supplies as The classification of all supplies as non-dedicatednon-dedicated commoditiescommodities or or dedicated suppliesdedicated supplies shall be made keeping in mind the shall be made keeping in mind the context in which the project is carried out. The availability of context in which the project is carried out. The availability of goods in the country of the operation for example, may be goods in the country of the operation for example, may be considered in order to classify a certain type of goods as considered in order to classify a certain type of goods as dedicated suppliesdedicated supplies when it must be imported. when it must be imported.

The NGO shall always concord with the commission which The NGO shall always concord with the commission which products are to be considered as products are to be considered as dedicated suppliesdedicated supplies in a given in a given project. project.

Supplies subject to international quality Supplies subject to international quality standardsstandards

ANNEX VANNEX V

Medicines Medicines

Medical equipmentMedical equipment

Other suppliesOther supplies

Form Form Quality standard requiredQuality standard required

Purchase shall be based on the pre-Purchase shall be based on the pre-qualification of pharmaceutical manufacturers qualification of pharmaceutical manufacturers who comply with WHO who comply with WHO Good Manufacturing Good Manufacturing Practice GuidelinesPractice Guidelines

Standards for suppliers of medical Standards for suppliers of medical equipment: ISO 9001/EN46001 o ISO equipment: ISO 9001/EN46001 o ISO 9002/EN46002 9002/EN46002

Council Directive 93/42/EEC del 14 Giugno Council Directive 93/42/EEC del 14 Giugno 1993 (OJ L 169, 12/07/1993) 1993 (OJ L 169, 12/07/1993)

Always verify the existance of recognized Always verify the existance of recognized international standard for each supply (above international standard for each supply (above list is neither definite nor complete) list is neither definite nor complete)

SERVICESSERVICES SUPPLIESSUPPLIES WORKSWORKS

X ≥ 200,000 €X ≥ 200,000 €

  Restricted international Restricted international procedureprocedure

Suppliers invited:Suppliers invited: from a from a min. of 4 to a max of 8 min. of 4 to a max of 8 supplierssuppliers

  X ≥ 150,000 €X ≥ 150,000 €

Open international Open international procedureprocedure

X ≥ 5,000,000 €X ≥ 5,000,000 €

Open international Open international procedureprocedure   

€ € 30,000 ≤ X < 150.000 30,000 ≤ X < 150.000

A) Nondedicated A) Nondedicated commoditiescommodities

 Open local procedureOpen local procedure B) Dedicated suppliesB) Dedicated supplies

Restricted international Restricted international procedureprocedure

Suppliers invited:Suppliers invited: from a from a min. of 4 to a max of 8 min. of 4 to a max of 8 supplierssuppliers

€ € 300,000 ≤ X < 5,000,000300,000 ≤ X < 5,000,000

 

Open local procedureOpen local procedure

€ € 5,000 ≤ X < 200,0005,000 ≤ X < 200,000

Negotiated procedureNegotiated procedureSuppliers invited: Suppliers invited: min. 4 min. 4 supplierssuppliers

Nondedicated commoditiesNondedicated commodities

€ € 5,000 ≤ X < 30,0005,000 ≤ X < 30,000

Negotiated procedureNegotiated procedureSuppliers invited: Suppliers invited: min. 4min. 4

€ € 5,000 ≤ X < 300,000 5,000 ≤ X < 300,000

Negotiated procedureNegotiated procedureSuppliers invited: Suppliers invited: min. 4min. 4

X < 5,000 €X < 5,000 €

    Only 1 offerOnly 1 offerA) Nondedicated A) Nondedicated commoditiescommodities

X < 5,000 €  X < 5,000 €  

Only 1 offerOnly 1 offer

B) Dedicated suppliesB) Dedicated supplies

X < 30,000 €X < 30,000 €

Only 1 offerOnly 1 offer

X < 5,000 €X < 5,000 €

    Only 1 offerOnly 1 offer

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