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Special Arrangements for Contracts Containing Services
Certain contracts may include a service element.
The provision of services is permissible, provided services are ancillary to the supply of material goods.
Contracts for the supply of services "simpliciter" are not consistent with Security Council resolution 986 (1995) and applications for service only contracts may not be accepted.
Applications may, however, be provided for "service-only" contracts provided the application clearly indicates a connection with another contract or contracts for the supply of goods.
Services should be assigned a value and listed as line items on the Excel form attachment to the application.
The provision of all services which have been assigned a value must, like the supply of goods, be authenticated by the United Nations Independent Inspection Agent in Iraq before payment may be made from the Iraq account.
For approved contracts containing services, the approval letter issued by the Office of the Iraq Programme will include the statement "payment will be subject to compliance with the Special Authentication Procedure attached".
The specific terms of the special authentication procedure will be clearly identified in an SAP document attached to the approval letter.
The SAP document will precisely define the manner in which the services will be authenticated.
Services will generally be authenticated based on a combination of on site inspection by the Independent Inspection Agent, as required, and the provision of documentary evidence by the supplier.
To facilitate site visits by the Independent Inspection Agent, the supplier must advise the Office of the Iraq Programme, via the relevant Permanent mission, three weeks before services are scheduled to commence.
The Office of the Iraq Programme will advise the Independent Inspection Agent and provide the supplier with contact details for the Inspection Agent.
All documentary evidence regarding the provision of services should be submitted by the supplier to the Independent Inspection Agent.
Services such as those included in the list below should be listed on the Excel form attachment to the application and will require a special authentication procedure.
- Design and engineering
- Factory acceptance testing
- Third party inspection
- Training
- Site supervision
- Installation and construction
- Commissioning and testing
- Import/export preparation and equipment overhaul
The table below provides general guidance concerning the criteria against which the Office of the Iraq Programme will measure or assess provision of services and the type of documentary information which will be required by the Independent Inspection Agent in order to verify completion of the services.
Submission of information in connection with these criteria will expedite processing of applications which contain a service element.
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SERVICE:
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DESIGN AND ENGINEERING
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Scope:
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Design and engineering activity related to the goods supplied
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Measurement:
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Number of man/days, day rates and listing of engineering documents and drawings.
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Authentication based upon:
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Time sheets, documents prepared.
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SERVICE:
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FACTORY ACCEPTANCE TESTING
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Scope:
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To perform function testing of equipment to ensure it works to specification, generally before final painting and shipping, usually performed outside Iraq
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Measurement:
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Number of man/days, day rates and listing of tests and test procedures
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Authentication based upon:
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Time sheets, and cost calculations, test reports for all equipment tested
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SERVICE:
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THIRD PARTY INSPECTION
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Scope:
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To perform an inspection of the goods just prior to packaging to confirm that the goods to be shipped are in accordance with the procurement specifications
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Measurement:
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Number of man/days, day rates, lump sum per visit, listing of goods, and inspection test reports
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Authentication based upon:
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Time sheets, and cost calculations, inspection reports for all goods supplied
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SERVICE:
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TRAINING
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Scope:
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To provide training to the engineers and technicians of the receiver so they will be able to operate and maintain the equipment provided via the contract.
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Measurement:
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Number of man/days, day rates, travel & hotel costs for the suppliers representatives and the Iraqi trainees, description and length of training course.
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Authentication based upon:
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Time sheets, and cost calculations, receipts for travel and hotel accommodation for suppliers representative and Iraqi trainees, on site verification by independent inspection agency in Iraq.
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SERVICE:
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SITE SUPERVISION
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Scope:
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To provide technical support to the receiver to ensure equipment is installed in accordance with manufacturers specifications
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Measurement:
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Number of man/days, day rates, travel and hotel costs for the suppliers representatives
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Authentication based upon:
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Time sheets, and cost calculations, receipts for travel and hotel accommodation for suppliers representative, on site verification by independent inspection agency.
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SERVICE:
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INSTALLATION AND CONSTRUCTION
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Scope:
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To install or construct the procured goods at the receivers premises
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Measurement:
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Generally based on completed milestones
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Authentication based upon:
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The completed item of work is verified by the independent inspection agency during a number of visits.
Certificate of milestone completion reports as produced by the supplier.
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Note:
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Potentially a wide-ranging type of service.
It is important to list the milestones in the application form to facilitate authentication and payment of individual milestones.
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SERVICE:
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COMMISSIONING AND TESTING
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Scope:
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To provide technical support to the receiver to ensure equipment is installed in accordance with manufacturers specifications
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Authentication based upon:
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Number of man/days, day rates, travel costs for the suppliers representatives
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Verification:
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Time sheets, and cost calculations, receipts for travel and hotel accommodation for suppliers representative, on site verification by Independent Inspection Agency, commissioning report
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SERVICE:
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IMPORT/EXPORT PREPARATION AND EQUIPMENT OVERHAUL
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Scope:
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To prepare goods for export, repair at suppliers premises generally outside Iraq, fit new components and return to Iraq.
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Measurement:
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Suppliers commercial offer, replacement spare parts listing
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Authentication based upon:
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Export packing, export authentication, import authentication, on site inspection.
Submission of refurbishment report containing scope of work, time sheets of supplier’s personnel, listing of parts supplied and built into the equipment.
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