UNRWA: Procurement and Logistics

General Procurement Policy

International procurement at UNRWA is carried out by the Procurement and Logistics Division at Headquarters (Amman) and the Procurement and Logistics Departments located in UNRWA's field presences in the Agency’s five areas of operation.

UNRWA supports the UN Global Compact Initiative - put forward on 31 January 1999, by the then UN Secretary-General Kofi Annan, that will bring companies together with UN agencies, labor and civil society to support ten principles in the areas of human rights, labor, the environment, and anti-corruption. UNRWA encourages its suppliers to sign up to the UN Global Compact Initiative. Based on that, UNRWA has included environmental factors in its pre-qualification criteria and in its tendering and tender evaluation process. The Agency requests its potential suppliers to complete and submit the UNRWA Environmental Management Questionnaire (available in PDF, Word) as part of the supplier pre-qualification process. Suppliers are also encouraged to attach any document proving their company's compliance with the UN Global Compact Initiative in the areas of human rights, labor and anti-corruption.

Typically, UNRWA will only consider registered suppliers when establishing a short list for a Request for Quotation (RFQ), an Invitation to Bid (ITB) or a Request for Proposal (RFP). UNRWA has established evaluation criteria in order to ensure and enhance fairness, transparency, and equitable geographical distribution in the selection of vendors. The short list of suppliers for a tender with respect to a particular product or service is created in accordance with the following principles:

Suppliers with periodically successful or competitive bids.
Newly registered suppliers.
Suppliers from developing countries and countries in economic transition.
Suppliers from UNRWA region countries.

UNRWA uses competitive bidding to meet its procurement requirements, taking into consideration the "value for money" principle which means selection of the offer / bid which presents the optimum combination of factors such as appropriate quality, life cycle costs and other parameters to best meet UNRWA’s defined needs. It is not necessarily the same as selecting the lowest initial price option, but is based on an integrated assessment of technical, organizational, and pricing factors in light of their relative importance.

In order to obtain the best value of money, the following principles shall be applied:

Maximization of competition.
Minimization the complexity of the tender process
Careful establishment of evaluation criteria (in order to select the offer with the highest expectation to meet user needs, in accordance with the evaluation parameters set in the tender documents).
Impartial and comprehensive evaluation of offers in a timely manner.

While procurement in UNRWA is carried out in a decentralized manner, the ultimate responsibility for the procurement process rests with the Chief, Procurement and Logistics Division. This responsibility includes ensuring that procurement procedures and awarded contracts comply with the UNRWA Regulatory Framework on Procurement (link to OD10).

UNRWA, like other public sector agencies and organizations, faces ethical challenges continually. Therefore, UNRWA strives to promote ethical conduct of its staff which shall be based on common values. The Agency has defined standards of behavior and performance expected of its staff members by directly linking the agency’s values to all elements of its work and by making those standards an inherent part of its overall human resources management strategy. As part of this overall strategy, the UNRWA Procurement and Logistics Division in Headquarters Amman and in the Fields continuously seek and promote the commitment of their staff members to the UNRWA Staff Standards of Conduct. (available in PDF, Word)

Solicitation Documents

In accordance with the UNRWA Regulatory Framework on Procurement, all procurement actions shall be based on principle of competitive bidding. Requests for Quotation (RFQs), Invitations to Bid (ITBs) or Requests for Proposal (RFPs) are issued in accordance with the estimated monetary value of the resulting contract and based on the complexity of the requirement.

Value in USD	Bid System
Up to 500	All purchases and services below this threshold may be obtained through an imprest fund voucher without the need for a formal written contract. Whilst best value for money shall always be sought, there is a reduced need for competition at this spend level.
500 to 10,000	Oral or written RFQ shall be addressed to at least one approved vendor. Quotations must be in submitted writing. Proforma invoices may suffice. If received orally, a written note justifying the selection of suppliers as well as the price shall be included in the file. Where time and market conditions allow, 3 or more approved vendors shall be asked to quote. Increasing the number of quotations received beyond one is highly desirable.
10,000 to 59,999	A written RFQ or RFP shall be addressed to at least three approved potential vendors. A two-envelope system is used for the pre-qualification of potential vendors at the time of the RFQ / RFP. When using a two-envelope system, the first envelope shall contain a completed bidder pre-qualification form, along with supporting evidence such as headed notepaper, company accounts if requested, etc (Technical Quotation). The second envelope which contains the financial quotation shall only be opened if the potential vendor is successful in pre-qualifying, following analysis of the contents of the first envelope. Second envelopes from potential vendors who did not qualify will be returned unopened to their respective addresses, or will have the contents shredded, unopened if possible. The approved vendors that submitted the best three acceptable quotations or proposals from the last RFQ / RFP must be invited to participate, provided that they have maintained their approved status. For contracts below USD $60,000, no formal Tender Opening Committee is required, and bids may be opened by an internal Quotation Opening Committee comprised of the relevant Section Head and a procurement staff member at Headquarters and the FPLO and a procurement staff member in the Field Offices. Quotations / proposals can be received via a designated fax number or by conventional mail. Once received, the quotations/proposals are placed in a closed box until the RFQ / RFP opening date.
Above 60,000	Any procurement action with an estimated value exceeding USD $60,000 shall be tendered using an ITB or RFP. Written ITBs or RFPs shall be addressed to at least five approved and potential vendors. A two-envelope system is used for the pre-qualification of potential vendors at the time of the ITB / RFP. When using a two-envelope system, the first envelope shall contain a completed pre-qualification form, along with supporting evidence such as headed notepaper, company accounts if requested, etc (Technical Quotation). The second envelope which contains the financial quotation shall only be opened if the potential vendor is successful in pre-qualifying, following analysis of the contents of the first envelope. Second envelopes from potential vendors who did not qualify will be returned unopened to their respective addresses, or will have the contents shredded, unopened if possible. The approved vendors that submitted the three most acceptable quotations or proposals from the last ITB / RFP must be invited to participate, provided that they have maintained their approved status. Bids / proposals have to be sent in closed envelopes to be placed in a closed tender box. With due consideration for the economic use of Agency resources, contracts shall be let on a competitive basis. The transparent and competitive tendering system used by UNRWA requires that the market available to the Agency is reasonably and adequately investigated by, inter alia, prequalification of vendors and by providing opportunities for new potential contractors to participate over a reasonable period of time. Competition shall be solicited either by public advertisement or by direct invitation addressed to potential and qualified approved vendors for the List of Approved Vendors, or a combination of both.

Solicitation Method	Definition
RFQ	A standard Request for Quotation is used for straight-forward, non high-value items.
RFP	A Request for Proposal is usually used for procurement of services, works and goods when there is difficulty expressing requirements (e.g. consulting or similar services, purchase of complex goods where requirements maybe met in a variety of ways.
ITB	An Invitation to Bid is used for procurement of goods, services or works with standard and firm specifications. All ITBs require an absolute receipt deadline. An ITB defines absolute requirements in terms of minimum requirements for a range of acceptable requirements. Evaluation is done by verifying that an offer is compliant in all respects.

For Headquarters purchases the awarding authority rests with the Chief, Procurement and Logistics Division (CPLD) who, depending on contract value, is required to seek clearance from the Director of Administration and Support who may bring any such case in front of the Agency’s Committee on Procurement. The CPLD may delegate part of his/her awarding authority within predefined thresholds.

For Field purchases the awarding authority rests with the Field Office Director (FOD) who, depending on contract value, is required to seek approval from the Agency’s Local Committee on Procurement. For contracts exceeding a certain monetary threshold, clearance from the Headquarters Director of Administration must be sought who may bring any such case in front of the Agency’s Advisory Committee on Contracts. The FOD may delegate part of his/her awarding authority within predefined thresholds within the respective Field Office structure.