UNITED NATIONS PROCUREMENT MANUAL DEPARTMENT OF OPERATIONAL SUPPORT OFFICE OF SUPPLY CHAIN MANAGEMENT PROCUREMENT DIVISION REF. NO.: DOS/2020.9 30 JUNE 2020 Preface The Procurement Manual details the UN Secretariat’s (UN) procurement procedures and processes and provides further guidance for carrying out procurement activities for the UN effectively and efficiently in compliance with the UN’s Financial Regulations and Rules, and other applicable administrative issuances, such as the Review Committee on Contracts ST/AI (ST/AI/2011/8). This document is available online at https://www.un.org/Depts/ptd/about-us/procurement-manual. It has been published in electronic format to limit the use of paper, ink, and transport. The Procurement Division in the Office of Supply Chain Management, Department of Operational Support will update this Manual from time to time. DOS/2020.09 United Nations Procurement Manual 1 Table of Contents Preface ..............................................................................................................................................1 1. Introduction ............................................................................................................................. 10 1.1 Purpose, Application and Structure ............................................................................................. 10 1.2 Update and Maintenance ............................................................................................................. 10 1.3 Procurement Framework ............................................................................................................. 10 1.4 Procurement Principles and Client Centricity .............................................................................. 11 1.4.1 Best Value for Money ............................................................................................................ 11 1.4.2 Fairness, Integrity and Transparency ..................................................................................... 12 1.4.3 Effective International Competition ...................................................................................... 12 1.4.4 Best Interest of the United Nations ....................................................................................... 13 1.4.5 Client Centricity ..................................................................................................................... 13 1.5 Ethical Standards .......................................................................................................................... 13 1.5.1 Standards of Conduct ............................................................................................................ 13 1.5.2 Conflict of Interest ................................................................................................................. 14 1.5.3 Ethical Behavior of Vendors ................................................................................................... 16 2. Organization of Procurement .................................................................................................... 17 2.1 Overview of the Procurement Process ......................................................................................... 17 2.1.1 Definition of Procurement ..................................................................................................... 17 2.1.2 Outline of the Procurement Process ..................................................................................... 17 2.1.3 Category Management .......................................................................................................... 18 2.2 Responsibilities of Organizational Units and Key Roles for the Procurement Process ................ 19 2.3 Procurement Official .................................................................................................................... 20 2.4 Requisitioner ................................................................................................................................ 21 2.5 Procurement Approving Authority ............................................................................................... 22 2.6 Procurement Authority ................................................................................................................ 22 2.6.1 Delegation of Authority ......................................................................................................... 22 2.6.2 Exercise of DOA...................................................................................................................... 23 2.6.3 Procuring Agent ..................................................................................................................... 23 2.6.4 Local Procurement Authority (LPA) ....................................................................................... 23 2.7 Delegation for Amendments ........................................................................................................ 26 2.7.1 Increase of the NTE Subsequent to Review Committee (20% Rule) ..................................... 26 2.7.2 Extension of Duration of a Contract Subsequent Review Committee (8-Month Rule) ......... 27 2.7.3 Contract Awards .................................................................................................................... 27 DOS/2020.09 United Nations Procurement Manual 2 2.7.4 Calculation of Cumulative Amounts for Assessment of Required DOA ................................ 27 2.8 Accountability ............................................................................................................................... 27 2.9 Segregation of Duties ................................................................................................................... 28 3. Vendor Registration and Management ...................................................................................... 30 3.1 Vendor Registration ...................................................................................................................... 30 3.1.1 Registration in UNGM ............................................................................................................ 30 3.1.2 Synchronization in UMOJA .................................................................................................... 31 3.1.3 Overview of Registration Levels ............................................................................................ 31 3.1.4 Criteria for Vendor Registration ............................................................................................ 32 3.2 Vendor Management ................................................................................................................... 35 3.2.1 Evaluation of Vendor Registration Applications .................................................................... 35 3.2.2 Vendor Registration Maintenance and Updating of Vendor Documentation....................... 35 3.2.3 Updating of Vendor Information ........................................................................................... 36 3.3 Vendor Review Committee .......................................................................................................... 36 3.4 Review by the Vendor Review Committee ................................................................................... 37 3.5 Vendor Sanctions .......................................................................................................................... 38 3.6 Electronic Special Approval Committee (e-SAC) .......................................................................... 39 4. Demand Planning, Acquisition Planning, Procurement Strategy and Requirements Definition .... 41 4.1 Demand Planning and Acquisition Planning ................................................................................. 41 4.2 Procurement Strategy .................................................................................................................. 42 4.3 Procurement Planning and Source Selection Plan ....................................................................... 42 4.4 Requirements Definition .............................................................................................................. 44 4.4.1 The Purpose of Requirements Definition .............................................................................. 45 4.4.2 Characteristics of Well-Defined Requirements ..................................................................... 46 4.4.3 Technical Specifications ......................................................................................................... 47 4.4.4 Terms of Reference (TOR) ..................................................................................................... 47 4.4.5 Statement of Work (SOW) ..................................................................................................... 48 4.5 Shopping Cart ............................................................................................................................... 48 5. Sourcing ................................................................................................................................... 49 5.1 Sourcing of Vendors ..................................................................................................................... 49 5.2 Market Research .........................................................................................................................