In collaboration with

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Development of integrated project and financial
management tools in conformity with the 2003
FPA
The procurement
In collaboration with
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Procurement
The integration of procurement as one of the
tools of the humanitarian intervention requires,
withthe adoption of the best value of money
principle the following
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Key-ideas about Annex V

• Partners must have codified procurement
  procedures!
• Partners must have a procurement strategy when
  presenting a proposal
• A procurement plan is compulsory in the proposal
• According to this strategy and plan, waivers to
  Annex V may be granted
• Any requests for derogations have to be justified
  in the proposal
• If accepted, derogations are included in the
  Grant Agreement ? legal force, art 9

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ANNEX V

• Defines the procedure to follow for contracts for
  the purchase of services, supplies and work. The
  types of purchasing procedures to follow are
  divided in relation to
• Types of contracts (services, supplies and
  work)
• Value of purchasing contracts for each type of
  contract (services, supplies and work)

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ANNEX V
The Annex is organized as follows
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ANNEX V
Contracts for supply, works and services have the
following characteristics
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ANNEX V
ATTENTION

• A contract which covers both the supplying of
  products and services shall be considered a
  service contract whenever the value of the
  services exceeds that of the products included in
  the contract.
• The same principle shall apply to define the
  procedure to be followed in other hybrid
  contracts.

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

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ANNEX V
New rules applicable

• Rules of nationality and origin
• New notions dedicated supplies/non dedicated
  commodities
• Different thresholds dipending on the nature of
  contracts, nature of supplies, amounts
• 4 offers (instead of 3) in the Restricted and
  Negotiated procedure

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ANNEX V
In the new FPA, ECHO introduces new rules
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ANNEX V
ATTENTION

• Any departure from the rules of nationality and
  origin is subject to prior written approval from
  the ECHO, which will deal with any request
  properly justified on
• technical or quality reasons,
• unavailability on the eligible markets,
• cost or delay due to transport,
• Legislation in the country.
• Humanitarian organization shall request waiver in
  proposal and justify it.
• Derogations will be included in the Grant
  Agreement.

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ANNEX V
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ANNEX V
ATTENTION

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

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

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ANNEX V
FORMS OF PROCUREMENT PROCEDURES
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Form Action Notes
Open Procedure International or local publication of the tender notice and call for expressions of interest (open to all potential economic operators) Tender procedures may be international or local. Call of interest shall be open and shall specify at least rules governing the lodging/submission and presentation of tenders, exclusion, selection award criteria and set out in technical specifications.
Restricted procedure (1a) Call for expressions of interest (1b) Publication of contract notice Invitation to tender (open to all who satisfy selection criteria) Selection of candidates (from list or those who answered the contract notice) Procedure may be international or local. Only those candidates satisfying selection criteria and invited may submit a tender. The number of candidates invited to submit a tender may not be less than 4 (number shall be sufficient to ensure genuine competition.
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Form Action Notes
Negotiated Procedure Simultaneous invitation and in writing by authorities to tenders to negotiate terms of contract Number of candidates shall not be less than 4 (number shall be sufficient to ensure genuine competition)
Single quote 1 estimate gathering (a) in primary emergencies or emergency operations (cfr. anche ANNEX V, cap. 5.1.). The NGO must be able to present reasons that prevented larger consultation (b) whenever no tenders have been submitted in response to an open, restricted or negotiated procedure after initial procedure has been completed, provided original terms have not been altered (c) whenever for technical reasons, or reasons connected with the protection of exclusive rights the contract can be awarded only to 1 particular economic operator (d) for additional contracts consisting in repetition/renewal of services, works, or supplies (e) for additional works services not included in the original contract due to unforeseen circumstances and necessary for the performance of the contract (f) for property contracts after prospecting the local markets (g) whenever orders are placed with a humanitarian procurement centre (i) for contracts of a value lt 5,000
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SERVICES SUPPLIES WORKS
X 200,000  Restricted international procedure Suppliers invited from a min. of 4 suppliers  X 150,000 Open international procedure X 5,000,000 Open international procedure  
30,000 X lt 150.000 A) Nondedicated commodities  Open local procedure  B) Dedicated supplies Restricted international procedure Suppliers invited from a min. of 4 suppliers 300,000 X lt 5,000,000   Open local procedure
5,000 X lt 200,000 Negotiated procedure Suppliers invited min. 4 suppliers Nondedicated commodities 5,000 X lt 30,000 Negotiated procedure Suppliers invited min. 4 5,000 X lt 300,000 Negotiated procedure Suppliers invited min. 4
X lt 5,000   Only 1 offer A) Nondedicated commodities X lt 5,000   Only 1 offer B) Dedicated supplies X lt 30,000 Only 1 offer X lt 5,000   Only 1 offer
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Overview no-tender situations
Always Check

• Single quote- dedicated supply
• Framework contracts
• Awarded by restricted procedure
• Max 4 years
• Useful for medical supplies
• Humanitarian Procurement Centres
• Not for profit
• Open to all humanitarian organizations
• Equal treatment
• Compliance with international standar
• Technical capacity
• Point 4.1.4

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ANNEX V
Supplies subject to international quality
standards
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In conclusion

• Whatever the procedure is..
• Value for money quality, price, compliance with
  international standards, timely delivery
• Transparency
• Equal treatment of potential contractors
• No conflict of interest
• No corrupt practices
• Ethical principles (e.g. child labour)

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