Humanitarian Aid Guidelines for Procurement

Guidelines for the award of Procurement Contracts within the framework of Humanitarian Aid Actions financed by the European Union. Version: 31 May 2011

Preface

1. Introduction

1.1 Legal Background and Status of the Guidelines
(i) Humanitarian Aid Regulation, 1996
(ii) The Financial Regulation and the Implementing Rules
(iii) Framework Partnership Agreements
(iv) Other Reference Documents

1.2 Structure of the Guidelines

1.3 Scope and Applicability of the Guidelines
     Table 1 - When Do the Guidelines apply?
(i) Employment contracts vs. Service Contracts
(ii) Implementing Partners vs. Contractors
      Table 2: Distinction between Contractors and Implementing Partners

2. Mandatory Principles

2.1 Scope and legal basis of the Mandatory Principles

2.2 The Principle of Ethical Procurement
(i) Ethical behaviour of the Contracting Authority
     Avoidance of Conflict of Interests
     Gifts and gratuities
     Table 3 – Good Practice concerning the receipt of gifts and avoidance of
       conflicts of interests
     Regularity of procurement procedures
      Due Diligence and Risk Management
(ii) Ethical behaviour of contractors

2.3 The Principle of Transparency in the Procurement process
(i) Transparency and Open Competition
(ii) Exclusion Criteria
(iii) Selection Criteria
(iv) Award Criteria and Best Value for Money
(v) Respect of confidentiality
(vi) Right of access for the purposes of verifications and audits

2.4 The Principle of Proportionality between the procedures followed for awarding contracts and the value of the contracts

2.5 The Principle of Equal treatment and non-discrimination of potential contractors and donors
(i) Equal Treatment of Candidates and Tenderers
(ii) Equal Treatment of Donors

3. General Rules and Procedures

3.1 Scope of the Guidelines on the General Rules and Procedures

3.2 Guidance on procedures for the award of all procurement contracts (including those below €60.000)
(i) The main elements of a contract
     Subject
     Value
     Lots
      Duration
(ii) Different parts of the contract document
      Incoterms
      Transport & Insurance
      Force Majeure
(iii) Procurement for awards under €60 000

3.3 Rules for the award of contracts of an amount higher than €60.000 (obligatory for "A" Control mechanism contracts above €60.000)
(i) The different Procurement procedures
(ii) Different kinds of procurement
      Table 4 - Procurement in Contracts over € 60.000
(iii) The Negotiated Procedure
     Table 5 - Overview of the Negotiated Procedure
(iv) Negotiated procedure with a single tender ("Single Bid Negotiated
   Procedure")
(v) Open Tender Procedure
     Table 6 - Overview of the Open Tender Procedure
     Table 7 - Overview of the different procurement procedures

4. Special Rules

4.1 Scope of the Special Rules

4.2 Urgent Actions

4.3 Specific requirements for the procurement of pharmaceutical products and medical devices
(i) Pre-Qualification of pharmaceutical products and medical devices
(ii) Particular selection criteria for pharmaceuticals and medical devices
(iii) The procurement procedures for pharmaceuticals and medical devices
     Identification of Pre-Qualified Candidates
     Invitation to Pre-Qualified Candidates to Negotiate
     Table 8 - Overview of the Negotiated Procedure based on Pre-Qualification

4.4 Food aid procurement rules and procedures
(i) Particular selection criteria for food products
(ii) Monitoring Agencies
     Obligations related to the use of a Monitoring Agency

4.5 Pre-established stocks
(i) Eligible Costs when using pre-established stock
(ii) Stockpiling as an activity in the Action

4.6 Framework contracts
(i) Multiple framework contracts
(ii) Procurement procedure for Framework Contracts
(iii) Award of specific contracts based on Framework contracts
      Reopening of competition on the basis of a multiple framework contract
     Advantages and limitations of Framework contracts
     Table 9 – Use of Framework Contracts

4.7 Humanitarian Procurement Centres
(i) Characteristics of Humanitarian Procurement Centres
     Definition & Legal Personality
     What HPCs supply
     – Procurement entities which cannot be recognised as HPCs
     Table 10 - Overview of supply chain management options
(ii) The relationship between DG ECHO and HPCs
     On what basis does DG ECHO recognise an HPC?
     Desk-Reviews and On-site Examinations
     Fair pricing system & non-profit principle
     Observance of the HPC Charter
     When can DG ECHO terminate HPC Recognition?
(iii) The relationship between Partners and HPCs
     What are the advantages for a Partner in dealing with an HPC?
     Eligible costs of the Action
     What are the obligations of a Partner when dealing with an HPC?

5. Final Provisions

5.1. Derogations to the General Rules and Procedures

5.2. Interpretation

5.3. Contractual and regulatory sanctions

Annexes

ANNEX 1 – PROCUREMENT GLOSSARY

ANNEX 2 - SAMPLE DECLARATION FOR CANDIDATES & TENDERERS

ANNEX 3 - DUE DILIGENCE AND RISK MANAGEMENT IN PROCUREMENT
The importance of good procurement planning
Table - Tips Before launching a procurement procedure
Risk management
Organisations' procurement profile and capability
Analysing the Procurement Portfolio and Developing a Procurement Profile
Analysing the Organisation's Procurement Function and Capability
Table – Measuring Results and Possible Indicators

ANNEX 4 - SAMPLE DECLARATION FOR MEMBERS OF EVALUATION COMMITTEES

Humanitarian Aid Guidelines for Procurement

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