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Guidance Note on Procurement by Partners with UNHCR Funds 1 of 35
This Policy requires:
UNHCR offices to share with the relevant Partners, this Guidance Note No. 4 on
procurement with UNHCR funds undertaken by Partners, including its Annex.
UNHCR offices and Partners to fully understand the policy and its correct
application before entering into a Project Partnership Agreement (PPA).
Implementing Partnership Management Guidance Note No. 4
Procurement by Partners with UNHCR Funds November 2014
Subject: Procurement by Partners
Reference Documents
Chapter 4 of the UNHCR Manual
Chapter 8 of the UNHCR Manual
Enhanced UNHCR Framework for Implementing with Partners
Reference No. Policy : UNHCR/HCP/2014/11 Guidance Note: 04/FP/S2-2
Date of Issue November 2014
Date of Revision
This Guidance Note informs UNHCR and Partners of UNHCR policy, procedures and provisions related to procurement undertaken by Partners with UNHCR funds.

Table of Contents
A. INTRODUCTION .......................................................................................................... 4
A.1. Scope of the Guidance Note .................................................................................. 4
B. CONDITIONS FOR UNDERTAKING PROCUREMENT BY
PARTNERS ..................................................................................................................... 5
C. PRE-QUALIFICATION FOR PROCUREMENT (PQP) STATUS.......................... 6
D. PROCUREMENT POLICY AND PRINCIPLES ....................................................... 7
D.1. Procurement Policy ............................................................................................... 7
D.2. Procurement Principles ........................................................................................ 8
D.3. Procurement Conduct and Ethics ........................................................................ 8
D.4. Organizational Structure and Duties .................................................................. 8
E. DETAILED PROCUREMENT CONDUCT AND PROCEDURES ......................... 9
E.1. Procurement Conduct and Ethics ........................................................................ 9
E.1.1. Code of Conduct .................................................................................................. 9 E.1.1.1. Adopting Code of Conduct.................................................................................. 9
E.1.1.2. Ethical Business Conduct ................................................................................... 9
E.1.1.3. Conflict of Interest .............................................................................................. 9
E.1.1.4. UN Supplier Code of Conduct .......................................................................... 10
E.1.2. Partner Responsibilities ..................................................................................... 10 E.1.3. Proper Vendor Management.............................................................................. 11 E.1.4. Competitive Bidding ......................................................................................... 12
E.1.4.1. Requirement for Formal Competitive Bidding ................................................. 12
E.1.4.2. Emergency Situations and Exceptions .............................................................. 12
E.1.5. Evaluation and Criteria for Contract Award ..................................................... 13 E.1.5.1. Evaluation......................................................................................................... 13
E.1.5.2. Contract Award ................................................................................................ 13
E.1.6. Supply Documentation ...................................................................................... 14 E.1.7. Payment Compliance ......................................................................................... 14
E.2. Procurement Procedures .................................................................................... 14
E.1.1. Identification of Needs ...................................................................................... 14 E.1.2. Requisition ........................................................................................................ 15 E.1.3. Establishing Bidders List ................................................................................... 15 E.1.4. Solicitation Documents: Request for Quotation (RFQ), Invitation
to Bid (ITB), Request for Proposal (RFP) and Scope of
Procurement....................................................................................................... 16 E.1.5. General Elements of a Formal Solicitation Document ...................................... 17 E.1.6. Specific Elements to be included in an ITB or RFP for Goods ......................... 18 E.1.7. Specific Elements to be included in an ITB or RFP for Services ...................... 18 E.1.8. Reception of Formal Offers or Proposals Under the ITB or RFP
Process ............................................................................................................... 19 E.1.9. Review and Evaluation of Offers or Proposals and Award ............................... 19 E.1.10. Ordering and Inspection .................................................................................... 21 E.1.11. Consignments, Importation and Customs, Insurance ........................................ 22
E.1.11.1. Consignment ................................................................................................ 22
E.1.11.2. Importation and Customs ............................................................................. 22
E.1.11.1. Insurance ..................................................................................................... 23
E.1.11.2. Incoterms ..................................................................................................... 23

E.1.12. Transportation ................................................................................................... 23 E.1.13. Contracting for Goods and Services .................................................................. 24 E.1.14. Expedition ......................................................................................................... 25 E.1.15. Receipt, Rejection and Claim ............................................................................ 26 E.1.16. Tax Exemption and Customs ............................................................................ 27 E.1.17. Payment ............................................................................................................. 27 E.1.18. Procurement File ............................................................................................... 28
F. DEFINITIONS .............................................................................................................. 28
ANNEX Partner Procurement Self-Assessment Checklist .............................................. 32

A. INTRODUCTION
1. Procurement is undertaken to provide the necessary support to operations with the required quality and quantity of goods and services at the time and place that they are needed and in the most
cost-effective and efficient manner. UNHCR undertakes procurement of goods and services based on
established principles and procedures.
2. This Guidance Note No. 4 on Procurement by Partners with UNHCR Funds (hereafter: Guidance Note) provides guidance to Partners (hereafter: Partner) on requirements, when
UNHCR requests a Partner to undertake procurement of goods and services with UNHCR provided
funds for assisting refugees and other persons of concern. The document describes the policy, required
ethics and conduct, detailed procedures and organizational structure for undertaking effective
procurement.
A.1. Scope of the Guidance Note
3. Procurement by a Partner is an important function. UNHCR expects Partners to adopt standards, policies and procedures consistent with those of UNHCR, as outlined in the Guidance Note.
Where it is desirable or necessary to entrust procurement to a Partner in order to support an operation,
the Partner must have a clearly proven advantage and added value, such as awareness of local
conditions, specific technical expertise, operational efficiency, cost-savings, or a compelling urgency.
4. The Guidance Note presents the mandatory policy and procedures, as required to be followed by Partners, when undertaking procurement of goods and services with UNHCR funds. They also
describe the process and requirements for acquiring Pre-qualification for Procurement status.
5. The UNHCR Head of Office retains the overall responsibility for ensuring integrity and accountability related to procurement management, including procurement entrusted to Partners.
Authorization to entrust procurement to a Partner is given in the Project Partnership Agreement (PPA)
to be signed by UNHCR and the Partner. As such, the Partner confirms that it assumes the
responsibility for undertaking procurement in an effective manner, and the accountability to UNHCR
to do so in compliance with the policy and procedures conta