Contracts Flashcards
Long-Term Agreement (LTA)
for a defined period of time for specific goods or services at prescribed prices or pricing provisions and with no legal obligation to order any minimum or maximum quantity.
BENEFITS OF LTAS
LTAs offer benefits such as competitive prices through economies of scale and consolidation, simplified processes, consistency in quality and reliability of suppl y, and standardization of requirements as well as reduced lead time. They are also useful in start up and emergency scenarios. LTAs that are well set up from a quality delivery timeline and cost perspective will also offer value to other organizations in th e UN System thus fostering cooperation.
Types of LTAs
(i) Single-Vendor LTA: One vendor is supplying the total requirements for a given type of goods/services.
(ii) Multiple-Vendor LTAs Without Secondary Bidding: Two or more vendors are supplying the same requirements.
iii) Multiple-Vendor LTAs With Secondary Bidding: Two or more vendors are supplying similar or identical requirements, and the final placement of each call-off is determined through secondary bidding
BENEFITS OF LTAS
A simplified business process leading to reduced transaction cost: avoiding the time and resources needed for repetitive procurement actions for the same set of goods or services.
Consistency in quality and reliability of the source of supply: By having established quality standards in the LTA, the time spent on inspection and possibility of rejection of goods/outputs are reduced.
Standardization of requirements: Promotes standardization of requirements across offices, which could contribute to a reduction in operation and maintenance costs and other efficiencies.
Reduced delivery lead-time: As many aspects are pre-agreed and specified in the LTA, the lead-time between the call-off and delivery is significantly shortened, and this is particularly relevant during emergencies. LTAs are particularly useful for goods that can be stocked, or services set up for immediate mobilization or deployment.
.7 Blanket Purchase Orde
order limited quantities of specified products and services through a BPO
should only be used to purchase items that are difficult to specifically identify and quantify. spare parts, electrical components, engineering workshops components such as nails, bolts, etc.
“Sales of supplies, equipment, or other property declared surplus or unserviceable shall be based on competitive bidding unless the relevant Property Survey Board
a. ) Estimates that the sales value is less than an amount to be specified by the Under-Secretary-General, Department of Management;
b. ) Considers that the exchange of property in partial or full payment for replacement equipment or supplies is in the best interest of the Organization;
c. ) Deems it appropriate to transfer surplus property from one project or operation for use in another and determines the fair market value at which the transfer(s) shall be effected;
d. ) Determines that the destruction of the surplus or unserviceable material will be more economical or is required by law or by the nature of the property;
e. ) Determines that the interests of the United Nations will be served through the disposal of the property by gift or sale at a nominal price to an intergovernmental organization, a Government or governmental agency, or some other non-profit organization”.
Following the liquidation of a peacekeeping operation, equipment and other property shall be disposed of in accordance with the Financial Regulations and Rules and the manner indicated below:
a. Equipment in good condition that conforms to established Standardization or is considered compatible with existing equipment will be redeployed to other peacekeeping operations or will be placed in reserve to form start-up kits for use by future missions;
b. Equipment not required for current or future peacekeeping operations may be redeployed to other United Nations activities funded from assessed contributions, provided that there is a demonstrated need for the equipment;
c. Equipment not required for current or future peacekeeping operations, or other United Nations activities funded from assessed contributions, but which may be useful for the operations of other United Nations agencies, international organizations or non-governmental organizations may be sold to such agencies or organizations;
d. Any equipment or property not required or which it is not feasible to dispose of in accordance with subparagraphs (b), (c) or (d) above or which is in poor condition will be subject to commercial disposal in accordance with the procedures applicable to other United Nations equipment or property;
e. Any assets that have been installed in a country and which, if dismantled, would set back the rehabilitation of that country, shall be provided to the duly recognized Government of that country in return for compensation in a form to be agreed by the Organization and the Government. This refers in particular to airfield installations and equipment, buildings, bridges, and mine-clearing equipment. Where such assets cannot be disposed of in this manner, or otherwise, they will be contributed free of charge to the Government of the country concerned. Such contributions require the prior approval of the General Assembly;
f. A report on the final disposition of assets for each such liquidated peacekeeping operation shall be submitted to the General Assembly.”
The file shall at a minimum contain the documents (inclusive of relevant correspondence) relating to the following phases of the procurement process (if relevant):
a. Pre-Solicitation: Specifications (inclusive of TOR, SOW, RFI/REOI, Market Research, Evaluation Criteria, and weighting), SSP, and provisional registration/special approval form;
b. Solicitation: signed List of Invitees, RFQ/ITB/RFP, clarifications/amendments to RFQ/ITB/RFP, and inquiries;
c. Submissions: acknowledgments, Submission Opening attendance register, the record of Submission receipt, technical proposals, financial proposals, and copies of Bid Security;
d. Evaluation: Request for technical evaluation, technical evaluation, financial evaluation, approved presentation to a Review Committee and agenda, Review Committee minutes containing recommendations, Dunn & Bradstreet report, and relevant correspondence;
e. Award: Notice of Award, Regret Letters, vendor’s signed acceptance of Award, documents related to Contract preparation, and copy of Performance Security (originals to be kept in the safe);
f. Post-award: Signed contracts, copies of insurance certificates and guarantees provided for in the contract;
g. Contract Administration documents: amendments, Statements of Award, and Vendor Performance Report/Evaluation/ checklist for closed files.
Cooperation with UN Organizations may take the following forms, in accordance with Financial Rule 105.17 (a):
a. Carrying out common procurement actions together, i.e. establishing and using joint LTAs and contracts (joint solicitation, lead agency agreement);
b. The UN Secretariat entering into a contract relying on a procurement decision of another UN Organization (using LTAs or contracts of other UN Organizations, i.e. piggybacking);
c. Requesting another UN Organization to carry out procurement activities on behalf of the UN Secretariat (using procurement services of other UN Organizations).
A UN Secretariat entity may use a contract concluded by another UN Organization, provided that the contract satisfies the UN Secretariat entity’s requirements, specifically in terms of value for money and fit-for-purpose. Such an assessment should be determined and guided by the following:
a. The value of the UN Secretariat entity’s requirement is less than or equal to the value of the contract of the UN Organization. A contract should not be used to order disproportionately higher volumes than intended, especially for goods/services with volume discounts not reflected in the contract; and
b. The vendor offers goods or services to the UN Secretariat entity at the same (or lower) price than in the contract and with the same terms and conditions. Procurement Officials shall conduct price negotiations as applicable; and
c. The UN Secretariat entity’s requirements are equivalent to those included in the contract;
When to piggybacking
value of the UN Secretariat entity’s requirement is less than or equal to the value of the contract of the UN Organization
vendor offers goods or services to the UN Secretariat entity at the same (or lower) price than in the contract and with the same terms and conditions
UN Secretariat entity’s requirements are equivalent to those included in the contract
Another UN Organization to carry out procurement activities on behalf of the UN Secretariat Entity
Expertise
Procurement / Administrative Capacity.
Risk Management
Risk Management can be defined as the set of policies, procedures, and practices involved in the identification, analysis, assessment, control, avoidance, minimization, or elimination of unacceptable risks.
A ‘lump sum’ contract is used whenever it
The ‘unit price’ contract should be used only w
A ‘lump sum’ contract is used whenever it is possible to determine with sufficient precision the quantity and scope of the goods/services required from the contractor;
The ‘unit price’ contract should be used only when the nature of the services/ goods makes it impossible to determine, with sufficient precision, the quantity of the services/ goods required from the contractor. In this case, th
Acquisition Process
The steps necessary to acquire goods and services, inter alia, through identification and development of requirements, planning, budgeting, conducting solicitations, obtaining approvals, entering into contract negotiations and carrying out contract fulfilment.
