Supply Chain Manual (English) - Cafod

CAFOD Supply Chain Manual and Guidelines
Version 1.0
March 2010

Table of Contents
1.0 SUMMARY .............................................................................................................................8
2.0 GLOSSARY OF COMMON TERMS.......................................................................................10
3.0 LIST OF ACRONYMS ............................................................................................................14
4.0 INTRODUCTION ...................................................................................................................15
4.1 Basic Procurement Principles................................................................................................ 15
4.2 Types of Procurement ............................................................................................................17
4.3 Procedure Thresholds............................................................................................................. 18
Table 1 Procedures thresholds and key procurement terminology............................. 18
4.4 Artificial Splitting of Contracts...............................................................................................20
4.5 Linking Procurement Rules with Financial Considerations................................................ 21
4.6 Government Regulations in Country of Operation........................................................... 22
4.7 Safeguarding resources from terrorist abuse ..................................................................... 22
5.0 PARTNERS AND PROCUREMENT .........................................................................................24
5.1 How this Manual can be used with Partners ...................................................................... 25
5.2 Using this manual when CAFOD supports part of a project or programme................. 25
5.3 Conducting a Risk Assessment for Procurement and Partners........................................ 26
6.0 PROCUREMENT PLANNING.................................................................................................29
6.1 Basic Principles ........................................................................................................................ 29
6.2 Designing a Procurement Plan............................................................................................. 29
6.3 When to Write a Procurement Plan ..................................................................................... 29
6.4 Budgeting for Procurement .................................................................................................. 30
6.5 Timescales to Implement a Procurement Procedure ....................................................... 30
Table 2 Timescales to implement procurement procedures........................................ 30
Table 3 An example of a procurement plan................................................................... 32
7.0 DELEGATION OF AUTHORITY, ROLES AND RESPONSIBILITIES ............................................33
7.1 Basic Principles ........................................................................................................................ 33
7.2 Correct Division of Roles and Responsibilities for Procurement Processes .................... 33
7.3 Appointing Roles for Procurement for Partners.................................................................. 35
7.4 Documenting Delegation of Authority, Roles and Responsibilities................................. 36
Table 4 Delegation of Authority, Roles and Responsibilities.......................................... 37
8.0 DOCUMENTATION RAISING, REVIEW, AND APPROVAL....................................................38
Table 5 Documentation raising, review and approval guide ...................................... 38
8.1 Delegated Authority for Supply Chain Management: Implementation within CAFOD
39
9.0 BID MATRIX AND EVALUATING BIDS AND TENDERS ..........................................................41
9.1 Principles of Evaluating Bids and Tenders ........................................................................... 41
9.2 The Bid Matrix........................................................................................................................... 42
9.3 The Evaluation Matrix ............................................................................................................. 43

Table 6 A suggested scoring system................................................................................. 43
9.4 Weighting................................................................................................................................. 43
9.5 Bid Evaluation Committee .................................................................................................... 44
Table 7 Bid committees – when to hold them, what to consider and how to
document them...................................................................................................................... 47
10.0 OBTAINING CLARIFICATION FROM SUPPLIERS ..................................................................49
10.1 Why Supplier Clarification is Needed .................................................................................. 49
10.2 How to Hold Clarification Discussions with Suppliers ......................................................... 49
10.3 What NOT to Discuss with Suppliers...................................................................................... 50
10.4 What Discussions to Seek Clarification Should Focus On ................................................. 50
10.5 How to Handle Cost Related Discussions with Suppliers................................................... 50
10.6 Risks in Conducting Clarification Discussions...................................................................... 51
11.0 PROCUREMENT PROCEDURES: THE NEGOTIATED PROCEDURE .........................................53
11.1 Basic Principles ........................................................................................................................ 53
11.2 When this procedure can be used...................................................................................... 53
11.3 The Negotiated Procedure Process..................................................................................... 54
11.4 PART A: Preparation ............................................................................................................... 54
Table 8 How to obtain detailed specifications ............................................................... 54
11.5 PART B: Shortlist ........................................................................................................................ 55
Table 9 Who should Request for Quotations be sent to .............................................. 55
11.6 PART C: Request for Quotations and Evaluation............................................................... 56
11.7 PART D: Contracting............................................................................................................... 58
11.8 PART E: Delivery, Payment and Closure .............................................................................. 59
12.0 PROCUREMENT PROCEDURES: NEGOTIATED PROCEDURE WITH A SINGLE BID................60
13.0 PROCUREMENT PROCEDURES: OPEN TENDERS ..................................................................61
13.1 Basic Principles ........................................................................................................................ 61
Table 10 Definitions and thresholds for open tenders ...................................................... 62
13.2 Implementation of the Open Tender Process.................................................................... 62
13.3 PART A: Preparation ............................................................................................................... 63
13.4 PART B: Advertising ................................................................................................................. 64
Table 11 Example of an open tender notice .................................................................... 64
13.5 PART C: Tender Dossier and Evaluation .............................................................................. 65
13.6 PART D: Contracting............................................................................................................... 71
Table 12 Example of an Award Notice .............................................................................. 72
13.7 PART E: Delivery, Payment and Closure .............................................................................. 72
14.0 PROCUREMENT PROCEDURES: RESTRICTED TENDER ..........................................................74
14.1 Basic Principles ........................................................................................................................ 74
Table 13 Definitions and Thresholds for Restricted Tenders ............................................. 75
14.2 The Restricted Tender Process .............................................................................................. 75
14.3 PART A: Preparation ............................................................................................................... 76
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14.4 PART B: Advertise and Short List............................................................................................ 77
Table 14 Example of an Expression of Interest Notice...................................................... 78
14.5 PART C: Tender Dossier and Evaluation .............................................................................. 80
14.6 PART D: Contracting............................................................................................................... 85
Table 15 Example of an Award Notice .............................................................................. 86
14.7 PART E: Delivery, Payment and Closure .............................................................................. 86
15.0 REPEAT PURCHASES: FRAMEWORK AGREEMENTS .............................................................87
15.1 How to set up a Framework Agreement ............................................................................ 87
15.2 Restrictions to a Framework Agreement............................................................................. 87
15.3 Extending or renewing existing contracts and purchase orders .................................... 88
16.0 TRANSPORTATION AND DELIVERY......................................................................................89
16.1 Transportation and Delivery Procedures............................................................................. 89
16.2 Transportation and Delivery Documentation..................................................................... 89
17.0 INSPECTION AND RECEIPT OF GOODS ..............................................................................91
17.1 When to inspect goods and supplies .................................................................................. 91
17.2 How to inspect goods and supplies .................................................................................... 91
17.3 Acceptance sampling and inspection of goods.............................................................. 91
17.4 Accepting or rejecting inspected goods ........................................................................... 92
17.5 When receiving goods...........................................................................................................93
18.0 DISTRIBUTIONS AND DONATIONS ......................................................................................94
18.1 Distributions .............................................................................................................................. 94
18.2 Donations................................................................................................................................. 94
18.3 How to Document Donations............................................................................................... 95
19.0 STORES MANAGEMENT AND WAREHOUSING ...................................................................97
19.1 General .................................................................................................................................... 97
19.2 Stock Documents.................................................................................................................... 97
19.3 Storage Facilities ..................................................................................................................... 97
19.4 Stores Management...............................................................................................................98
19.5 Specific Stock Information .................................................................................................... 98
20.0 ASSET MANAGEMENT .......................................................................................................100
20.1 Fixed Assets: General Principles..........................................................................................100
20.2 Asset Management and Tracking .....................................................................................100
20.3 Maintaining an Asset Register.............................................................................................101
20.4 Depreciation .........................................................................................................................103
20.5 Asset Disposal ........................................................................................................................103
20.6 Vehicle Use and Management..........................................................................................104
21.0 PAYMENTS: PAYMENT REQUISITION .................................................................................106
Table 16 Supporting documentation required for payment ........................................106
22.0 DOCUMENTATION AND FILING........................................................................................107
22.1 Why Documentation is Required .......................................................................................107
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22.2 What Needs to be Documented .......................................................................................107
22.3 How Should the Documents be Maintained and Filed................................................107
22.4 Additional Tender Documentation....................................................................................108
22.5 Who Holds Responsibility for Documentation and Filing ..............................................108
23.0 SUBCONTRACTING ...........................................................................................................109
23.1 Humanitarian Procurement Centres – for Use with ECHO-funded grants ...................109
Table 17 Current ECHO listed HPCs...................................................................................110
23.2 Subcontracting Procurement Activities to Non-HPC Firms with ECHO Funding .........110
23.3 Subcontracting Procurement Activities to HPCs with Non-ECHO Funding .................111
23.4 Subcontracting Procurement Activities to Non-HPC Firms with Non-ECHO Funding 111
24.0 WAIVERS AND DEROGATIONS .........................................................................................112
24.1 Basic Principles ......................................................................................................................112
24.2 When and How to Use a Waiver ........................................................................................112
24.3 How to process a waiver for projects funded by institutional donors ..........................113
24.4 How to process a waiver for CAFOD-funded projects ...................................................113
24.5 How to document a waiver................................................................................................113
Table 18 Example of a Complete Waiver Process..........................................................114
24.6 Examples of Waiver Requests and Outcomes.................................................................114
25.0 CONTRACTUAL CONDITIONS...........................................................................................116
25.1 Introduction ...........................................................................................................................116
25.2 Terms and conditions ...........................................................................................................116
25.3 Annex 11 documentation ...................................................................................................116
25.4 Headings from Annex 11a: Standard Terms and Conditions.........................................118
25.5 Headings from Annex 11c: Contract.................................................................................120
25.6 Headings from Annex 11d: Terms and Conditions for Services (only)..........................122
26.0 ETHICAL CODE OF CONDUCT FOR SUPPLIERS.................................................................124
26.1 Supplier’s Minimum Ethical Code of Conduct.................................................................124
26.2 Supplier’s Full Ethical Code of Conduct ...........................................................................125
27.0 CODE OF BEHAVIOUR FOR STAFF ....................................................................................129
28.0 FREQUENTLY ASKED QUESTIONS ......................................................................................131
29.0 Key sections for CAFOD’s SCM: what is mandatory and what is recommended......134
29.1 Thresholds for use of procedures........................................................................................134
29.2 Supplier Questionnaires .......................................................................................................134
29.3 Weighted evaluations of bids and tenders ......................................................................134
29.4 Contractual conditions........................................................................................................134
30.0 HOW TO GET HELP.............................................................................................................135
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LIST OF ANNEXES
Annex 1: Thresholds for procedures
Annex 2: Flowchart for Negotiated Procedures, Open Tender and Restricted Tender
Annex 3: Conducting a risk review for procurement and partners
Annex 4: Conflict of interest declaration
Annex 5: Negotiated procedure templates
• Negotiated procedure flow chart
• Negotiated procedure procurement file card
• Purchase Requisition Form
• Request for Quotations
• Bid Matrix
Annex 6: Open tender procedure templates
• Open Tender procurement file card
• Purchase Requisition Form
• Bid opening meeting report
• Bid matrix
• Bid committee evaluation report
• Bid committee evaluation report – with category weighting
• Response to unsuccessful bidders
Annex 7: Restricted tender procedure templates
• Restricted tender procurement file card
• Purchase Requisition form
• Expression of Interest opening and long list report template
• Expression of Interest evaluation
• Expression of Interest response to unsuccessful bidders
• Bid opening meeting report
• Bid matrix
• Bid committee evaluation report
• Bid committee evaluation report – with category weighting
• Response to unsuccessful bidders
Annex 8: Tender summary letter
Annex 9: Expression of Interest summary letter
Annex 10: Supplier Questionnaire:
• Annex 10a: Short
• Annex 10b: Full
Annex 11: Contractual conditions
• Annex 11a: Terms and conditions for the supply of goods and/or services
• Annex 11b: Purchase Order

• Annex 11c: Contract for the supply of goods and/or services
• Annex 11d: Terms and conditions for the supply of services (only)
Annex 12: Logistics and delivery form templates
• Goods Request Voucher
• Goods Received Note
• Waybill
Annex 13: Distribution and donation documents
• Distribution List
• Donation certificate
Annex 14: Asset management forms
• Asset register template
• Assets assigned to individuals form template
Annex 15: Payment Requisition
Annex 16: Waiver request forms
Annex 17: Supplier’s ethical codes of conduct:
• Annex 17a: Minimum
• Annex 17b: Full
Annex 18: Partner Financial Profile – internal assessment
Annex 19: Partner Financial Profile: Issues that CAFOD would like to discuss with a
prospective partner
Annex 20: Partner Organisational Profile
Annex 21: ECHO specific regulations
Annex 22: EC specific regulations
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1.0 SUMMARY
The “supply chain” covers the process of: identifying suppliers; completing a purchase (i.e.
procurement); ensuring the delivery (including warehousing, transport and storage) and
receipt of goods, services and supplies; as well as making payments. The supply chain starts
with needs assessment and project planning and ends in the write-off procedure when items
are either disposed of or donated.
The aim of Supply Chain Management is to effectively and efficiently manage all aspects of
the supply chain.
This manual is designed to provide a simple but comprehensive guide to all procurement
procedures that may be needed during the life of any project. It represents “minimum
standards of standard operating procedures” for supply chain management, procurement
and logistics for all programme funding whether implemented by CAFOD or by CAFOD’s
partners.
The supply chain management manual has four specific objectives:
• Accountability – to increase accountability in our systems: how to prove what has been
done through effective documentation
• Clarity – to increase clarity of our systems through using standard operating procedures,
systems and policies
• Cost effectiveness – to increase cost effectiveness through the effective evaluation of
options and efficient use of resources
• Transparency – to increase transparency of our systems through clearly identifying roles
and responsibilities, delegated authority and approval processes
The supply chain manual, or an alternative that meets or exceeds these requirements, must
be used whenever one (or more) of the following apply. For the avoidance of
doubt, "procurement" covers goods, supplies, services and works, but excludes: salaries,
related costs (e.g. tax, national insurance, pension) and general office running costs.
• All projects / programmes performed under an institutional contract, including funding in
whole or part by a Disasters Emergency Committee (DEC) appeal.
• All projects where the total value of procurements in a PSGA / MSGA grant approval, or
series of grant approvals, to the same partner within the same financial year is greater
than £20,000.
• All procurements directly managed by CAFOD staff, including those for a CAFOD
international / UK office, or those related to a CAFOD project / programme.
This manual is not designed to be read from cover to cover. Instead it is designed as a toolkit
to provide guidance, templates and regulations as needed. The manual should be used as a
reference guide when conducting specific procurement or logistics related activities. For
easy reference, the comprehensive table of contents has hyper-links that can be used if
reading the document electronically or page numbers if reading it as hard copy.
Not all of the manual will be useful or appropriate to all staff for all projects. When using the
manual you should consider the:
• Local context of the project;
• Ability, capacity and size of the implementing partner;
• The size and type of the grant;
1.0 Summary 8

• The anticipated amount of procurement;
• The source of funding and specific donor requirements.
By considering each of these factors, the manual can be appropriately used to inform and
guide project and partner staff, to supplement existing project and partner systems where
needed, or as a training and capacity building tool for project and partner staff. By
understanding the above factors, the manual can then help CAFOD or partner staff to
identify:
• What process should be used and when;
• What different procurement procedures involve;
• Who should be involved in the approval, reviewing and signing of purchase
procedures;
• What different funding sources or donors expect from the management of
procurement;
• How these procurement management processes should be used with partners.
1.0 Summary
9

2.0 GLOSSARY OF COMMON TERMS
Approval – is the sign-off by the budget holder (and finance). All procurements should be
prepared, approved and authorised by the relevant staff members. See Section 8.0 for
details.
Award – is the final agreement and appointment of a supplier for a contract following the
selection of the best bid that meets the specification (including price, delivery, quality and all
other factors considered in the evaluation process).
Award Notice – the publication of the outcome of the award, or tender, procedure. An
example of an award notice is available in Section 13.0.
Authorisation – is the sign-off by the delegated authority. All procurements should be
prepared, approved and authorised by the relevant staff members. See Section 8.0 for
details.
Bid Evaluation Committee – is a group of at least 3 appointed staff members that review all
submitted bids and quotations from suppliers and make a final decision on which supplier, or
suppliers, the contract should be awarded to. The bid committee must have members with
the appropriate approval levels, and consist of at least an appointed chairperson, secretary
and one other voting member. Bid evaluation committees should be convened to discuss
and appoint suppliers for all purchases over £5,000. See Section 9.3 for details.
Bid – is a quotation given by a supplier to a prospective purchaser (for example CAFOD)
upon his/her request, usually in competition with other suppliers for the same contract.
Budget Holder – provides quality control on procurement procedures and authorises
payment within limits of budget. See Section 7.0 for details.
Conflict of interest declarations: Conflicts of interest must be avoided and staff must remain
absolutely free from any obligation to any supplier. Employees directly responsible for
purchasing, and those on the bid evaluation committee, should declare any personal or
family interest, involvement, or financial relationship with a supplier that might impair
objectivity or freedom of judgment. Therefore, each member of the bid committee members
must sign a conflict of interest declaration at the bid opening and bid evaluation meetings.
See Section 9.0 for details.
Delegated Authority – levels of approval and authority must be identified by partners or
CAFOD staff for the implementation of projects. Delegated authorities review and confirm
that project activities, including procurement, are conducted in compliance with the
regulations and standards as stipulated by the funding contract. Delegating clear lines of
authority demonstrates clear accountability structures. See Section 7.0 for details.
Depreciation – is a provision for the cost related to the deterioration due to use or
obsolescence of an asset of an organisation. It should be applied to all assets with a life or
duration of more than 1 year. When calculating depreciation, staff must consider the
relevant donor guidelines, specific in-country regulations and the organisation’s financial
policy. See Section 20.0 for details.
Derogation – this term is used by ECHO and the EC and is a waiver or exception to the
standard rules and procedures. For all projects, programmes and work, derogations must be
requested and approved by an appropriate level of authority before alternative procedures
are used. See Section 24.0 for details.
Distribution list or distribution form – supports the distribution of items to beneficiaries and
includes details of the beneficiaries’ name, identification number and confirmation of their
receipt of the items. Distribution lists / forms are important audit documents and should be
attached as supporting documentation to the financial reporting for a project. See Section
18.0 for details.
Donation certificate or donation letter – should be used when donating items / equipment.
Donation certificates should include details of the donation and any terms and conditions
2.0 Glossary of Common Terms 10

attached to the donation (including intended use and options for eventual sale or disposal).
Both the donating agency and the receiving agency should sign the donation certificate or
donation letter. See Section 18.0 for details.
Downwards delegation – for a specific project / programme, a manager with delegated
authority may downwards delegate authorisation of specific documents (the purchase
requisition, the request for quotations / tenders and the distribution lists) to a lower grade
manager. This downwards delegation must be locally agreed in advance and signed and
documented for audit purposes. See Section 8.0 for details.
Expression of Interest – In the Restricted Tender process, the tender notification is publicly
advertised nationally or internationally depending on the purchase value and any supplier
may request to participate by submitting an expression of interest. The expression of interest is
a short statement of the supplier’s capacity. The submitted expressions of interest are
reviewed and the bid evaluation committee identifies a shortlist of between 4 and 8 suitable
suppliers who are then invited to submit a full tender dossier. See Section 14.0 for details.
Fixed assets – are valuable, durable equipment such as computers, satellite phones, radios,
vehicles, generators and air-conditioning units. Fixed assets should be included on an asset
register to enable their effective management, tracking and maintenance of these assets
from point of purchase to disposal. See Section 20.0 for details.
Framework Agreement – is a fixed, medium term (a maximum of one year) contract with a
supplier to provide goods or services at a fixed price during this period. The fixed price should
include an agreed mechanism for handling inflation. The supplier must initially be appointed
using the appropriate procurement procedure as determined by the estimated value of the
total contract. Once the supplier has been correctly appointed, a purchase order can be
submitted for each purchase but the procurement procedure to identify a supplier is not
required. A framework agreement is most useful when goods or services are bought
repeatedly or often and reduces the amount of paperwork. See Section 15.0 for details.
Framework Partnership Agreement (FPA) – CAFOD has signed a Framework Partnership
Agreement with ECHO. The FPA sets out the principles of partnership between ECHO and
CAFOD. It defines our respective roles, rights and obligations and contains the legal
provisions applicable to the humanitarian operations financed by ECHO. The FPA includes
procurement rules and regulations in Annex IV (see
http://ec.europa.eu/echo/about/actors/fpa_en.htm).
Goods – items or products (can include medicines, non-food items, vehicles, computers,
furniture etc). See Section 4.0 for details.
Goods Received Note – should be completed by the end recipient of goods to confirm the
receipt of items in good order and on time. Any damaged or faulty items should be returned
and marked on the Goods Received Note. See Section 16.0 for details.
Goods Request Voucher – the Goods Request Voucher allows programme staff to request
project materials from the store, allowing store staff to prepare and document the goods
that the programme staff need for project activities. To receive goods from the store, the
programme officer or staff member complete a Goods Request Voucher to release the
goods for transport to the final project destination.
International Open Tender – an invitation to tender is advertised internationally and in public
and any supplier may enter a bid for the contract. See Section 13.0 for details.
Local Open Tender – an invitation to tender is advertised locally and nationally in the country
of operation and any supplier may enter a bid for a contract. See Section 13.0 for details.
Local Procurement – is the procurement of goods and services in the country of operation.
Negotiated Procedure – this is the simplest procedure for the lowest purchase levels (up to
£60,000). The negotiated procedure is a competitive process whereby a minimum of three
suppliers are approached simultaneously in writing and invited to bid for the contract. See
Section 11.0 for details.
2.0 Glossary of Common Terms
11

Negotiated Procedure with a Single Bid – this allows the negotiation of a contract with only a
single supplier rather than using a negotiated procedure with at least 3 suppliers or
conducting a tender procedure. The single bid process should only be used in exceptional
cases. See Section 12.0 for details.
Payment Requisition – requests payments to be made to the supplier on satisfactory receipt
of deliveries. Payment Requisitions can be made for partial payments but an invoice should
be raised for each payment that is requested. The Payment Requisition must be supported
by all procurement documentation including (but not limited to) the invoice, Goods
Received Note, bid matrix and bid meeting notes, Purchase Order or contract, supplier bids
and Request for Quotations. See Section 21.0 for details.
Paper Trail – also known as an “audit trail” and is a clear track of documentation related to
all purchases and procurement. This paper trail is important for audit and review purposes
and must consist of all documentation submitted by suppliers and minutes of bid evaluation
committee meetings. All documents should be appropriately signed and approved. See
Section 22.0 for details.
Procurement – the purchase of goods, services and works. Procurement includes everything
except: salaries and related costs (e.g. tax, national insurance and pension); and general
office running costs. This manual relates to the “procurement” of all goods, services and
works above the value of £100 and goes into the different procurement procedures and
definitions in detail.
Purchase Order – is confirmation of the order to the chosen supplier(s)and should be signed
with the successful supplier(s). The Purchase Order, when signed by the supplier and the
buyer, becomes a contract and a commitment for the amount and value of the items and
delivery requirements. See Section 25.0 and Annex 11 for details of contractual conditions.
Purchase Requisition Form – is completed by the staff member requesting the purchase and
is reviewed by the budget holder and authorized by the appropriate delegated authority.
Without the required approvals on the Purchase Requisition Form that demonstrate checks
against the budget and the purchase, no purchase should take place. An approved
Purchase Requisition Form is the starting point for the actual purchase. See Section 11.0 for
details.
Request for Quotations – this is a notification or letter that is sent to suppliers to ask them to
submit details of their bid for specified, required items. A standard format for a request for
quotations can be used (an example is provided in the annexes to this document) or the
procurement staff can use their own template as long as detailed specifications of what is to
be purchased and details of delivery dates and locations, and any other required criteria,
are included in the request.
Restricted Tender – the notification of the tender is publicly advertised nationally or
internationally, according to purchase value. Any supplier may request to participate by
submitting an expression of interest to bid for the contract, but only those candidates who
meet stated selection criteria are invited to submit a full tender to bid for the contract. See
Section 14.0 for details.
Services – can include consultancies, resource persons, short-term contracts or specific tasks
(such as an assessment / evaluation), that are technical or academic. Services can also
include transportation or translation. See Section 4.0 for details.
Sub-Contracting – suppliers sometimes implement their work by working with other
contractors to complete the contract. This is called sub-contracting and needs to be
carefully scrutinised to ensure that the sub-contractor is abiding by CAFOD’s codes of
conduct. See Section 23.0 for details.
Supply Chain – the process of identifying suppliers, completing a purchase and ensuring the
delivery (including warehousing, transport and storage) and receipt of goods, services and
supplies. The supply chain starts with the needs assessment and project planning that
2.0 Glossary of Common Terms
12

includes items for purchase and ends in the write-off procedure when items are either
disposed of or donated.
Tender Dossier – the information that is given to suppliers that are interested in submitting a
bid for a particular contract in response to a call for tenders (either in the open or restricted
procedures) is called a tender dossier. The dossier includes details of the items to be
purchased, terms and conditions of the tender, the evaluation, scoring, and award criteria,
relevant contact details, dates and delivery information. The tender dossier is given to the
suppliers so that they can provide the correct and complete information on their bid that will
then be reviewed by a bid evaluation committee. See Section 13.0 for details.
Waybill – a waybill documents the details, quantities and dates of items being transported
from one location to another and tracks the items to ensure that their location, condition
and quantity is known and tracked. A waybill must accompany any goods or supplies that
are being moved from the supplier to the warehouse, from the warehouse to the project
location, or from the supplier to the project location.
Works – the construction or building, including the design of houses, water schemes,
infrastructure, buildings, bore holes etc. See Section 4.0 for details.
2.0 Glossary of Common Terms
13

3.0 LIST OF ACRONYMS
ACP countries
CAFOD
CI
DEC
DFID
EC
ECHO
EOI
EXW
FPA
GBP
HPC
HD
IAPG
ID
INCOterms
PCM
PFP
POA
POP
PPSS
USAID
African, Caribbean and Pacific countries
Catholic Agency for Overseas Development
Caritas Internationalis
Disaster Emergency Committee
(UK) Department for International Development
European Community
European Commission Humanitarian Office
Expression of Interest
Ex-works supplier contract
Framework Partnership Agreement (with ECHO)
Great Britain Pound Sterling
Humanitarian Procurement Centre
CAFOD’s Humanitarian Department
Inter-Agency Procurement Group
CAFOD’s International Division
International Commercial terms
CAFOD’s Programme Cycle Management
Partner Financial Profile
Partner Organisational Assessment
Partner’s Organisational Profile
CAFOD’s Programme Partner Support Section
United States Agency for International Development
3.0 List of Acronyms 14

4.0 INTRODUCTION
CAFOD’s Vision Mission and Values statement on Stewardship is the starting point for the
requirements presented in this supply chain management manual:
Stewardship: We strive to be good stewards of all the resources entrusted to us, openly
accountable for our work, systematic in evaluating our effectiveness, professional in
managing our funds and responsible in our outlays and overheads.
This manual provides CAFOD with clear procedures for supply chain and procurement
management. It provides a set of minimum standards, tools and guidelines and must be
considered in conjunction with institutional donor’s specific demands and regulations.
Moreover, consideration of the country’s legislation where the intervention is taking place
must also be taken into account.
The short implementation period of emergency projects, as well as the need to guarantee
quality assurance for specific supplies and specific obligations, is recognised. Therefore these
supply chain management processes are designed to be flexible, but aim to ensure
consistency with donor procurement guidelines, for example, ECHO, DFID, and USAID and
other institutional contracts that are secured.
4.1 Basic Procurement Principles
This manual aims to support CAFOD staff and partners to purchase all goods, services and
works based on the principles of stewardship of resources and competitiveness, optimizing all
available resources and ensuring that all goods, services and works are acquired in a
transparent way.
Basic procurement principles include transparency of the procedures being followed,
proportionality of the procedures with reference to the type and amount of each contract,
and equal treatment of all potential contractors whilst striving to maintain compliance with
high standards and specific regulations.
In order to achieve these objectives, procurement decisions should be taken considering the
following factors, where relevant:
1. Value for money: If all other matters are equal, the cheapest option should be chosen.
2. Reliability of the supplier: Procurement decisions should take into account the previous
reliability record of the supplier.
3. Quality of the goods or services provided: Procurement decisions should take into
account the ability of the supplier to guarantee the quality of the goods, services and
works provided according to the specification required.
4. Timeliness of the goods or services provided: In cases where goods, services and works
are required urgently, the relative ability of the supplier to provide a timely service should
be considered.
5. Responsibility and accountability: Delivery terms (including transportation, loading and
unloading, customs, duties, shipping, and inspection terms) should be clearly considered
and the INCO-terms should be written to clearly divide the responsibility between the
buyer and the supplier(s).
6. Ethical concerns: Ethical concerns should be considered with all procurement decisions.
There may be ethical concerns with using particular suppliers – for example if some of the
other enterprises in which the supplier is involved may be considered inappropriate (such
as arms dealing), or there are concerns about their working practices. Such matters
should be considered case by case and documented if they affect the final
procurement decision.
7. Effects of purchasing decisions upon local markets: Decisions made about high value
purchases – especially of food – can have positive or negative effects upon the local
economy of the project location, and upon the access to goods, services and works for
the local population.
4.0 Introduction 15

In-country purchase of goods, services and works is normally preferred, since this supports
in-country capacities and helps to keep money in the in-country economy. It also avoids
the need for the time and expense associated with imports. However, under some
circumstances large purchases can distort local markets at a provincial or national level,
creating artificially high prices and reducing access to essential supplies or services for
local populations.
Such matters should therefore be considered prior to seeking bids or quotations,
especially for major contracts, and any invitation to quote or tender should be structured
appropriately.
8. Funding from institutional donors: This manual has been compiled considering the
regulations of funding institutions including DFID, USAID and ECHO as well as other donors,
including the DEC. These guidelines include our knowledge of donors and their
regulations. However it is the responsibility of the contract manager to crosscheck with
specific donors to ensure full compliance. Humanitarian Department (HD) and
Programme and Partner Support (PPS) funding teams can provide additional support
and advice for institutional donor compliance if required.
9. Rules of origin and nationality: The “rule of origin” and “rule of nationality” may apply to
some purchases made with institutional funds 1 . These restrict the source of supplies to
particular countries. Detailed guidance should be sought if the terms of a donor contract
imply that these rules may be an issue. Waivers or derogations for this should be sought to
negotiate these rules as appropriate (see Section 24.0 Waivers and Derogations).
10. Humanitarian Procurement Centres (HPC): These are non-profit making, autonomous and
professional organisations that specialise in the technical and commercial management
of supplies necessary for humanitarian operations. HPCs can also provide technical
assistance in procurement or supply pre-established stocks, purchasing, or logistics
capacity (see Section 23.0 Subcontracting).
11. Documentation and filing: All documentation relating to each purchase should be
retained and securely held for at least 7 years. Documentation should demonstrate and
justify all decisions made and be signed off by appropriate approval levels (see Section
22.0 Documentation and Filing for additional information).
12. Confidentiality: All contracting-related information provided by suppliers and/or potential
suppliers must be treated confidentially and must not be disclosed to other suppliers or to
any other third party (see Section 26.0 Ethical Code of Conduct for Staff and Section 10.0
Obtaining clarification from suppliers).
CAFOD and CAFOD’s partners can reserve the right to reject any or all bids, when it
considers that it is in the best interest of the organisation and/or the people it serves to do so,
and in consideration of the factors outlined above. Instances when this might happen
include, but are not limited to:
• Tendered prices are considered too high or too low;
• Conflict of interest between CAFOD staff, partners and suppliers;
• Potential for a conflict of interest or there being seen to be a conflict of interest between
CAFOD staff, partners and suppliers;
• Conflict with, or non-adherence to, CAFOD or CAFOD’s partner’s ethical procurement
values as outlined above.
1 For example, the EC, Japanese government and USAID have strict nationality rules on procurement and the source of origin
of supplies. Both the US and Japanese require items to be bought from the US or Japan whenever possible and the EC
requires procurement from the EC or ACP countries whenever possible. It is important to note therefore that India and China
are often not-eligible countries of origin for items as this can affect CAFOD and CAFOD’s partner’s procurement decisions.
4.0 Introduction
16

There are many advantages to implementing these procurement systems effectively and
completely:
• Demonstrates responsible stewardship for resources;
• Improves efficiency and simplicity of all procurement and purchasing;
• Standard systems increase transparency and responsibility amongst staff;
• Systems are good mechanisms for avoiding fraud;
• Clear filing and documentation facilitates future reviews and audits.
4.2 Types of Procurement
Items for purchase fall into one of four categories. When initiating a purchase, the initiating
staff member needs to identify the type of purchase to be implemented into one of these
categories:
1. Goods and Supplies – These cover the purchase, lease, rent or hire of products such as
vehicles, Non-Food Item kits, food items, radios, and air tickets. It can also include
installation and maintenance expenses of these items.
2. Services – These cover intellectual and non-intellectual service costs, including
consultancy services, resource staff, and intellectual service costs such as evaluation,
assessment or technical consultants. Services can include technical, study or research
contracts, transportation and translation. The maintenance of goods beyond the
warranty period would be a service.
3. Works – This covers the cost of construction activities such as building, wells, boreholes,
water supply schemes, roads or bridges. It also covers the cost of the technical design
and drawings of all works activities such as architects or technical consultant’s fees for
designing.
4. Hybrid contracts – If there is more than one type of purchase in one contract (e.g. works
and goods), the total purchase must be considered and whichever type has the higher
value, determines the procurement procedure to be followed.
NOTE: Procurement includes everything except: salaries and related costs (e.g. tax, national
insurance and pension); and general office running costs.
Example of a hybrid contract:
For the construction and supply of a health centre, the supplier contract consists of:
Construction of the health centre: “Works contract” = £99,000
Supply of goods and medicines: “Goods & supplies contract” = £100,000
The value of the total purchase to the supplier: £199,000
An international open or restricted tender procedure is required because the value of the
goods/supplies is greater than the value of the works and therefore this type of
procurement determines the procedure to be followed.
Once the item is categorised, the relevant procurement procedure must be identified. There
are different procurement procedures for services, goods and works contracts. This is
because:
• Supply procedures for each category are different. For example, goods/suppliers can be
shipped from anywhere, but a works contract is usually better provided locally;
• Some donors (e.g. ECHO) split procurement in this way.
4.0 Introduction
17

4.3 Procedure Thresholds
Table 1 (below) provides details of the levels of expenditure, the type of procurement, and
the required procurement procedure. These details help guide implementation and contract
management, and also reflect donor and CAFOD regulations. However it is the responsibility
of the contract manager or implementation staff to crosscheck with specific donors to
ensure full compliance for particular projects.
Table 1 Procedures thresholds and key procurement terminology
GBP (£) £101 - £1,000 £1,001 - £60,000 £60,001 - £150,000
£150,001 -
£2,500,000
Over £2,500,001
Goods /
Supplies
Single quote
procedure
Negotiated
procedure
Local: Open tender
or Restricted tender
International: Open tender or
Restricted tender
Services
Single quote
procedure
Negotiated
procedure
Local: Open tender
or Restricted tender
International: Open tender or
Restricted tender
Works
Single quote
procedure
Negotiated
procedure
Local: Open tender or Restricted tender
International:
Open tender or
Restricted tender
Key procurement terms:
Single quote
procedure:
Negotiated
procedure:
Local tender:
International
tender:
Open tender:
Restricted
tender:
A minimum of one written quotation from a supplier is required. A note to file must be recorded to document
the process including why this supplier was selected. Note: most partners would have a lower threshold
than £1,001 for the commencement of the 3 bid negotiated procedure.
A minimum of three suppliers are approached simultaneously in writing and invited to negotiate for the
contract but no public announcement is made. Note: the majority of partners would have a lower
threshold than the £1,001 for the minimum limit for a 3 bid process.
A bid committee is required for all purchases over £5000
The invitation to tender is publicly advertised both locally and nationally. Local tenders can be either open or
restricted.
The invitation to tender is publicly advertised locally, nationally and internationally. International tenders can
be either open or restricted.
Any supplier or party may enter a full bid in response to the invitation to tender.
A restricted tender process includes the public advertising of a notification of the tender procedure and any
party may request to participate. Only suppliers that meet the stated selection criteria are invited to submit a
full tender. Note: if the grant is funded by ECHO then the Restricted Tender thresholds are different (see
Annex 21 for details of ECHO thresholds)
NOTE: Table 1 summarises the more detailed table found in Annex 1 that can be used as a
guide with local currencies with updated exchange rates.
Table 1 uses GBP (£) figures that have been aligned to ensure that they include all
institutional donors (including ECHO, DFID, and the Big Lottery Fund). Care should be taken as
some donors may have local currency (for example US$) thresholds which should be crosschecked
against this table considering exchange rates and fluctuations in exchange rates.
4.0 Introduction
18

Staff can amend this table to use the local or appropriate currency and exchange rates
against the GBP (£) levels, provided that the equivalent GBP (£) thresholds are not
exceeded.
Table 1 provides definitions of each of these procedures and this manual provides a toolkit
and step-by-step guidelines on how to implement each of these procedures.
NOTE: Table 1 shows the minimum procedure required:
If a more rigorous procurement procedure is considered appropriate, no additional approval
or waiver is required. For example, with a sub-£60,000 procurement, if CAFOD/partner does
not have a good understanding of potential suppliers for particular goods or services it would
be appropriate to use an open tender rather than a negotiated procedure. The open
tender process will, by its very nature, identify the range of available and interested suppliers.
If a more lenient procedure is considered appropriate, a waiver must be obtained to allow
this.
For institutional funding, institutional donors may have different regulations or thresholds that
have to be considered and would take precedence over the manual.
There are three different types of procedures depending on the level of expenditure for each
purchase. The procurement procedures are:
• Negotiated procedure.
• Open tender (including local and international).
• Restricted tender (including local and international).
Each of the procurement procedures requires a series of steps, documentation and
approvals to ensure compliance and effective implementation of the procurement
principles.
Annex 2 presents a summary flowchart of the three supply chain management processes;
Negotiated Procedure, Open Tender, and Restricted Tender. This supply chain manual
provides guidance and templates on how to follow each procedure, and what documents
and information is required.
For purchases up to £100 a petty cash procedure can be used. The procedures for use and
authorisation of petty cash should be determined by each office as part of their financial
controls.
Diagrammatically Table 1, including the hybrid contract requirements, can be represented:
4.0 Introduction
19

All procurement types:
goods / supplies,
services and works
4.4 Artificial Splitting of Contracts
The estimated value of a contract or purchase must NOT be determined with a view to
evading required procedures or keeping a purchase below a more rigorous procedure
threshold. The estimated value of a contract may not be reduced by purchasing items from
different suppliers through different contracts in order to make the total contract fall below a
certain authorisation or procedure threshold. This is regarded as “artificial splitting” a
contract and is unacceptable.
Where items in a contract are subdivided into several lots, even if each procurement is then
subject to an individual contract, the value of all lots together must be taken into account
for the overall evaluation of the applicable threshold and procedure.
4.0 Introduction
20

Example 1: Artificial splitting of contracts: The hire of a project vehicle in Kenya.
The hire of a project vehicle for one month was quoted by suppliers as £400.
The vehicle was required for the entire 12-month project.
The local partner fixed a threshold of £500 to conduct a negotiated procedure.
The partner did not conduct a negotiated procedure for the hire of this project vehicle.
HOWEVER, because the total price for the vehicle is £4,800, a negotiated procedure should
have been conducted even though the price per month was below the negotiated
procedure threshold. Therefore, the partner in this example artificially split the contract.
The partner must consider the total value of the contract not the individual payments.
Example 2: Artificial splitting of contracts: The purchase of medicines and medical
equipment for 3 health centres in Pakistan.
The total value for the supplies for each health centre is £23,974. However, because the total
value of supplies for all three centres is £71,892 it requires a local open tender for the
identification of suitable supplier(s). There must not be 3 individual procurement procedures,
one for each centre – this would be considered as artificial splitting of contracts.
If, following the tender procedure, more than one supplier is identified, individual contracts
for each supplier must be drawn up or a framework agreement could be drawn up.
Nevertheless if valid grounds for splitting a contract can be shown to exist, these may be
deemed acceptable. Such grounds may include:
• Emergency response;
• Security concerns;
• Optimisation of the economic impact of the purchases on the population;
• Timescales for delivery are spread over a long period of time;
• Local market constraints;
• Fresh food requirements;
• Transport costs.
BUT proving such valid grounds can be difficult, so care must be taken to adhere to the
relevant authorisation and procedural levels. See Section 24.0 for an explanation on how to
manage, document and authorise waivers.
NOTE: Once supplier quotations have been received and their bids are being evaluated, it is
acceptable to divide the contract between different suppliers. What is important is that the
correct purchase procedure for the TOTAL VALUE of the purchase has been conducted.
4.5 Linking Procurement Rules with Financial Considerations
This supply chain manually links with a number of financial considerations. When managing
the procurement on a grant, particularly in the project planning and procurement planning
phase, it is important to be aware of, and consider key influencing factors.
Below is a short list of some of the key factors to consider.
• Asset management, inventories and depreciation;
• Inflation;
4.0 Introduction
21

• VAT and other taxes;
• Exchange rates
These factors are incorporated into the financial guidelines and staff must refer to CAFOD’s
financial guidelines for details. CAFOD’s finance department and finance staff in country
can also provide some guidance and advice in these topics if required 2 .
4.6 Government Regulations in Country of Operation
NOTE: It is critical that staff are aware of the specific laws and government restrictions in the
country of operation and that they take them into account when applying the guidelines
outlined in this manual.
BE AWARE that government rules and donor regulations can change and affect the
implementation of projects before and during operations.
In addition to financial factors, the local and national laws of each country of operation and
the specific rules of the institutional donor may significantly alter or restrict the
implementation of these procedures and guidelines. In such situations, the regulations of the
government take precedence over CAFOD’s regulations.
Local and national government laws often affect procurement in the following ways:
1. Import, duties and taxes – this can affect transportation and delivery, for example on
supplies crossing international borders because some governments either do not allow
international imports or impose, sometimes prohibitively, high taxes on them.
2. Publication and notification of tenders – some governments restrict purchasing to the
country of operation and strongly discourage procurement from external sources. They
may also have local rules and regulations that control tenders, their implementation and
publication.
3. VAT and taxation – many governments have extra duties on humanitarian, emergency or
luxury goods. These extra costs need to be taken into consideration at budgeting and
purchase stages.
4. Inflation – some countries suffer from extremes of inflation and therefore quotes are often
invalid extremely quickly. When considering and writing budgets, supplier quotes and
supplier contracts, the impact of local inflation in some places must be carefully
considered.
5. Contracts – some countries have complicated legal clauses particularly pertaining to
legal contracts and how these are seen to be legal and binding. Local lawyers will often
be needed to provide specific support and advice on local laws and restrictions.
6. Procurement of second hand items – both donors and local governments can have
specific guidelines and restrictions on whether second-hand goods can be used and
procured, and how they can be donated – and in many instances, this can affect
purchasing decisions and options.
4.7 Safeguarding resources from terrorist abuse
CAFOD's policy on "Safeguarding CAFOD resources from terrorist abuse" includes a number
of requirements related to supply chain management. The reference numbers below refer
to the policies paragraph numbers:
P2.1 As an organisation registered within the UK we are bound by the UK Terrorism Act 2000.
These make it a serious offence to engage with or support any act which is defined as
2 CAFOD’s Finance Department has financial guidelines for administering grants. This, along with CAFOD’s Fraud and Loss
policy, should be considered with this manual.
4.0 Introduction
22

terrorism under the Act, or any individual or organisation which is proscribed as a "terrorist
organisation".
P5.1 We will check against the Bank of England Combined List and OFAC List that partner
organisations receiving funding are not proscribed by the United Nations, the European
Union, United States or the United Kingdom.
P5.4 We will check the names of suppliers who are tendering to CAFOD for procurement of
goods worth more than £60,000. The Finance Dept should be provided with a list of suppliers
who have been sent a tender (either open or restricted) dossier and a check will be made
within a week. Please contact the Head of Financial Management (email:
slloyd@cafod.org.uk) or in his absence the Internal Audit Officer (email: jvivier@cafod.org.uk).
We will not be checking suppliers if a partner is running the procurement, unless requested to
do so.
4.0 Introduction
23

5.0 PARTNERS AND PROCUREMENT
Recognising that the majority of CAFOD’s activities are implemented by partners, the systems
and procedures in this manual are applicable to CAFOD’s implementing partners as well as
to CAFOD. This is the case for institutional funding, DEC appeal funds, CAFOD and CI appeal
money and any other sources of funding, when CAFOD works through partners or conducts
the procurement on behalf of the partners.
The supply chain manual, or an alternative that meets or exceeds these requirements, must
be used whenever one (or more) of the following apply. For the avoidance of
doubt, "procurement" covers goods, supplies, services and works, but excludes: salaries,
related costs (e.g. tax, national insurance or pension) and general office running costs.
• All projects/programmes performed under an institutional contract, including funding in
whole or part by a Disasters Emergency Committee (DEC) appeal.
• All projects where the total value of procurements in a PSGA/MSGA grant approval, or
series of grant approvals, to the same partner within the same financial year is greater
than £20,000.
• All procurements directly managed by CAFOD staff, including those for a CAFOD
international/UK office, or those related to a CAFOD project/programme.
Once the use of this supply chain manual has been identified as a requirement for a specific
project, programme or grant approval it applies to all the associated procurements. The
total value of each planned procurement (and a project/programme/grant approval may
5.0 Partners and Procurement 24

have many) then determines the procurement procedure that must be followed – as per
Section 4.3
This supply chain manual provides a toolkit for CAFOD and implementing partners and
supplements the Institutional Funding Guidelines, the Partner’s Organisational Profile, and the
Partnership Financial Profile and the Programme Cycle Management system. Each of these
guidelines helps facilitate the implementation of projects and supports the principles of
partnership, especially the partnership principles of stewardship and professionalism, and
transparency, openness, honesty, accountability and trust that are intrinsic to the
implementation of these systems.
Stewardship and professionalism – we will exercise stewardship of human, financial, and
natural resources that are entrusted to us for the benefit of the poor and in solidarity with the
whole of creation. We commit ourselves to fighting corruption, nepotism, inefficiency and
other forms of misuse of resources in an open and transparent way. We acknowledge that
stewardship is intrinsic to our practice of partnership and intimately linked to building
competency and capacity.
Transparency, openness, honesty, accountability and trust – We will build our partnerships on
transparency, mutual accountability, openness and honesty, recognising these values as
fundamental preconditions for the growth of our relationships. By practising these values, we
will also build trust. 3
5.1 How this Manual can be used with Partners
In order to use this manual effectively with partners a solid understanding of the capacity of
the partner and their existing systems should be established by completing the Partner
Organisational Profile and Partner Financial Profile (internal assessment and questions to be
discussed with partners) - attached as Annexes 18, 19, and 20. These profiles will identify any
weaknesses in financial and logistics systems, the robustness of the internal controls, and the
availability of staff in governance and management roles.
For all programmes and projects with a procurement component, a Risk Assessment should
be carried out, which will be underpinned by the partner capabilities already identified in the
Partner Organisational Profile and Partner Financial Profile. This Risk Assessment will allow
programme staff to consider the level of risk that the procurement required on a particular
grant and with a particular partner, incurs. The information from these reviews will identify
how this supply chain manual can be best used with each partner.
Once the risk of the procurement, partner and project has been assessed, and the partner’s
existing systems and capacity has been assessed, then appropriate mitigating factors – such
as training, capacity building, monitoring and auditing - can be put in place.
This manual provides tools and guidelines to help staff to assess and then support the
implementation of improved and appropriate systems for supply chain management both
for CAFOD and for CAFOD’s implementing partners.
Therefore the manual:
• Is not designed to replace a partner’s existing systems if a partner has suitable standards
in place;
• Is designed to strengthen or supplement a partner’s systems if any or all of the partner’s
existing systems fall BELOW the standards set out in the manual.
5.2 Using this manual when CAFOD supports part of a project or programme
CAFOD regularly contributes to CARITAS and supporter appeals and in many cases CAFOD is
one of a number of donors that are contributing to a wider programme or appeal.
3 From the Caritas Partnership Guiding Principles p.11
5.0 Partners and Procurement
25

This manual lays out MINIMUM STANDARDS for all aspects of supply chain and procurement
management. The standards set out should not contradict other agencies’ procurement or
supply chain regulations or procedures, although threshold levels may vary.
For example, CAFOD contributes £100,000 to a CI appeal to Sri Lanka.
• The minimum standards set out in this manual are equal to, or exceed, the
standards required by other CI members; therefore the manual can be used to
support the implementing partners.
However, in the rare instances that regulations from contributing donors may differ, the
majority donor’s regulations should take precedence.
For example, the European Commission (EC) contributes 75% and CAFOD contributes 25%
of funding to the same project.
• The EC has regulations on the rules of nationality and origin of goods supplied
under the grant. The EC is the majority donor and therefore their regulations of
nationality and origin must be applied.
• However, CAFOD and EC have the same standards for the process that must be
conducted in a transparent, accountable and well documented way.
• If CAFOD was contributing 75% and EC was contributing 25%, the manuals
regulations would apply and there would be no need to apply the EC’s
regulations on nationality and origin.
5.3 Conducting a Risk Assessment for Procurement and Partners
The Risk Assessment spreadsheet in Annex 3 provides a mechanism to identify whether a
review of procurement systems, monitoring and implementation support or training is
required with partners either before or during the implementation of a CAFOD-supported
project or programme. The narrative below provides a summary of the considerations that
are taken into account in the Risk Assessment and should be read alongside the calculations
in Annex 3.
In the event that a programme is supporting a number of partners, each of whom are
undertaking procurements, a Risk Assessment should be carried out for each partner, taking
into account each partner’s capabilities.
In some emergency situations CAFOD will take responsibility for managing the procurement
but with the partner responsible for the distribution of the goods to the end-community
beneficiaries. In such circumstances a Risk Assessment should still be carried out using the
value of goods as the procurement figure. This allows an assessment to be carried out on the
partner’s contribution to the supply chain.
PHASE 1: Consider the facts:
1. Expected value of procurement as a % of the expected CAFOD grant to the partner 4 :
• Negligible procurement
• Under 25%
• Between 25% - 50%
• Between 51% - 75%
• Over 75% of the total of the grant
4 To be assessed over the same time period, for example a complete programme or an individual grant
5.0 Partners and Procurement
26

2. Estimated total of CAFOD grants (all sources) to partner over 3 years: last year, this year
and next year:
• Under £20,000
• Between £20,000 and £150,000
• Between £150,001 and £500,000
• Over £500,001
3. Annual CAFOD grant as % of partner's annual income, averaged over last 3 years:
• Under 25%
• Between 25% - 50%
• Between 51% - 75%
• Over 75% of the partner’s annual income
4. Partner capacity - number of experienced programme 5 staff in supply chain, finance and
project management:
• Large: 20+ programme staff
• Medium: 6 - 19 programme staff
• Small: 3 - 5 programme staff
• Very small: 1 - 2 programme staff
5. Partner capacity - formal structures and financial management capabilities – i.e. whether
the partner has existing, established and formal systems. The partner’s financial
management capability can be described as:
• Good formal structures and financial management capability
• Some formal structures and financial management capability
• Limited formal structures and financial management capability
• No formal structures and financial management capability
The level of the partner’s capabilities should be assessed by using the answers collected
during the completion of the Partner Financial Profile review.
PHASE 2: Calculate the supply chain (procurement) risk:
By inputting the factors related to the known information of the grant and procurement size,
staff numbers and partner’s capacity into the risk assessment spreadsheet (see Annex 3), a
risk level will be calculated automatically – either HIGH, MEDIUM or LOW risk.
PHASE 3: Mitigate the supply chain (procurement) risk:
The risk assessment spreadsheet will automatically identify key mitigating measures. These will
be based upon three key areas that will require attention during the implementation of any
grants, projects or programmes with this partner. The three risk mitigation measures are:
1. Monitoring – this includes standard reporting (narrative and financial), monitoring and
evaluation activities conducted by budget holders and CAFOD programme staff, and a
monitoring and review of the partners existing systems and supporting documentation.
2. Systems building – this includes a review of the partner’s existing procurement systems
and a consideration of whether their systems should be supplemented with CAFOD
systems to achieve the appropriate and necessary standards.
3. Training – this includes providing training in procurement systems to the partner’s staff to
ensure that they are aware of, and implement, the appropriate procurement systems to
achieve the required standards. The training would also require ongoing monitoring or
audit to ensure these systems are being suitably implemented.
5 “Programme staff” includes all project or administration staff but does not include drivers, cleaners or guards
5.0 Partners and Procurement
27

This risk assessment should help programme staff identify whether grants are at a low,
medium or high risk and then suggest systems and training that could be implemented to
support the partner and thus minimise the financial risk during the implementation of the
project / programme activities.
The results of the risk assessment should be captured in project/programme approval
documentation.
NOTE on using the Risk Assessment
1. A Risk Assessment is not designed to replace a careful consideration of monitoring,
evaluation and capacity building activities by programme staff.
2. It is, however, designed to trigger careful consideration and identify key areas for
additional support or capacity building.
3. For projects identified as HIGH risk, a reconsideration of the way funding is provided may
be necessary. It may also be appropriate to conduct an external audit as part of the
project to identify internal controls and areas of risk. [If an external audit has been
conducted recently on the partner, review the management letter and internal control
recommendations.] For example:
• consider the option of CAFOD employing additional staff for the partner or for CAFOD
to manage the procurement of the programme;
• consider requesting CAFOD’s funding teams to conduct additional visits or training in
procurement and compliance to the partner’s staff for this grant;
• consider sub-contracting the grant’s procurement to a procurement firm;
• consider the option of CAFOD conducting the procurement directly.
4. The Risk Assessment identifies areas of concern and suggests mitigating measures but
must be used in consideration of each individual project or partner’s circumstances.
5.0 Partners and Procurement
28

6.0 PROCUREMENT PLANNING
6.1 Basic Principles
Procurement planning means that specific procurement procedures can be identified early
in a project and then implemented without impeding the implementation of emergency, or
other projects. Through identifying key procurement activities that will be required during the
project, some of which can be relatively time-consuming, the appropriate procedures can
be implemented effectively, in a timely way, and ensure that the procurement principles of
transparency, stewardship and accountability are adhered to. This also helps prevent the
artificial splitting of contracts. The following section provides guidelines on how to draw up a
simple procurement plan to support the implementation of a project.
A common myth… “Time consuming procedures hold up our projects”.
• Good procurement planning allows effective, timely project implementation without
compromising principles of accountability and transparency.
• Proper systems help rather than hinder project implementation – even in emergencies!
• Many good projects are poorly implemented due to the lack of proper planning for
procurement activities.
The basic principle is to use the project timeline or activity plan alongside the project budget
to identify what will be needed, and when.
6.2 Designing a Procurement Plan
List all the goods, supplies, services and works that will be required for the implementation
and achievement of the project, including the following:
1. Using the project budget, identify the goods, services and works needed for the
project
2. Use the summary of approvals and procedures ( Table 1) to identify what purchase
procedures will be needed for each purchase
3. Use the table of timescales to implement procurement procedures ( Table 3) to
identify how long each purchase will take
4. Cross check this with the project time line to identify when items will be needed
5. Identify whether any procedures cannot be conducted and will therefore need
approval for a waiver or exemption; also identify who will need to authorise the
waivers
Other points to consider during the design of a procurement plan:
• Naturally grouped items should be kept together in the plan to ensure that purchases are
not split artificially, for example vehicles and vehicle spare parts, or computers and
computer software should be kept together.
• The costs incurred by procurement procedures should also be included – for example the
cost for advertising tenders.
• If goods are to be used from existing stocks (i.e. items that were purchased before the
project proposal was written), make sure that the stock items are listed and accurately
documented on the procurement plan.
6.3 When to Write a Procurement Plan
Ideally, a procurement plan should be drawn up alongside the project proposal, budget and
timeline. This then allows the CAFOD/partner procurement staff and budget holder to
conduct initial documentation and preparation (i.e. specifications, researching of suppliers)
whilst the project is being reviewed or approved by the institutional donor or CAFOD. Such
6.0 Procurement Planning 29

preparation does not incur any costs but does ensure that the process is already underway
when a project is approved.
6.4 Budgeting for Procurement
Some procurement procedures incur costs that should be considered at the budgeting
stage. Therefore, at the procurement planning and project budgeting stage it is important
to identify the cost that some specific procurement activities incur. Costs can be incurred
during the procurement process in a number of ways and will need to be budgeted and
planned.
Some costs to consider include:
• Tender adverts and notices in national, local and international media
• Printing and photocopying of tender dossiers for distribution amongst suppliers
• Printing and photocopying of submitted tender dossiers for the bid evaluation committee
• Travel or room hire costs to conduct bid opening meetings
• Travel costs to visit suppliers.
6.5 Timescales to Implement a Procurement Procedure
In addition to incurring costs, some procurement procedures require considerable time to
implement from start to completion.
Table 2 below provides a guide to the minimum timescales needed to fully implement
particular procurement procedures i.e. from authorisation of the purchase requisition to
signing of the contract with the appointed supplier(s). Many of the tender procedures have
long lead times from the start of the procedure to the actual placing of the contract with the
supplier, therefore good planning is crucial to ensure that the procedures do not unduly
delay implementation activities.
Table 2 Timescales to implement procurement procedures
Procedure
Time estimates are from
authorised Purchase
Requisition Form (PRF) to
contract signed
Section in manual to refer to
Negotiated Procedure
with a Single Bid
2 – 3 weeks 12.0 Procurement Procedures:
Negotiated procedure with a
single bid
Negotiated Procedure 3 – 5 weeks 11.0 Procurement Procedures:
The negotiated procedure
Local Open Tender 6 – 9 weeks 13.0 Procurement Procedures:
Open tender
International Open
Tender
9 – 12 weeks 13.0 Procurement Procedures:
Open tender
Restricted Tender 11 – 14 weeks 14.0 Procurement Procedures:
Restricted tender
6.0 Procurement Planning
30

NOTE: These are MINIMUM REALISTIC times to implement a procedure from the authorisation
of the purchase requisition form to the signing of the purchase contract with the chosen
supplier(s). Considering local contexts, supplier capacity and other constraints the time
required may be longer, or shorter, than this.
Once the required items, procedures and timescales are identified, a timeline or action plan
is necessary. This should include dates when items are needed by project staff for specific
project activities (for example for distributions, workshops, and training sessions) or for general
project activities (for example office equipment and vehicles). When designing the
procurement plan, it is important to consider the timescales required for the implementation
of procurement procedures as identified above in Table 2.
An example procurement plan is provided in Table 3. It can be used as a template for
procurement planning for projects.
NOTE: Effective planning early on in the project and in the proposal design ensures that the
correct procedures are followed and procurement principles of transparency and fairness
are implemented.
6.0 Procurement Planning
31

Table 3
An example of a procurement plan
Annex : Procurement plan
Project: Water, hygiene and NFI support to Maban County
Project Period : 1 July 2008 - 31 March 2009
Procurement plan 01-Jul-08
Type of
purchase
Items required
Quantity
Estimated /
budgeted
value (£)
Procurement
procedure
needed
When item
needed for
project
Time
procedure
takes
When
procurement
must start
Waiver
needed
Comments / Notes
Goods NFI kits 5,000 100,000 Local tender September 6 - 9 weeks Immediately No First distribution - September
Goods Mosquito nets 6,000 36,000
Negotiated
procedure
October
3 - 5 weeks
Beginning of
August
No
Goods Drugs 48,000
Negotiated
procedure
August (first
distribution)
3 - 5 weeks Immediately No
The procurement is unlikely to
be done for the first planned
distribution - first delivery
estimated for end August;
inform project team
Service Evaluation 1 6,500
Negotiated
procedure
At end of
project
3 - 5 weeks February No
Works
Wells - drill and
install
2 158,000
Local open
tender
February 6 - 9 weeks October No
Works
Health Unit
rehabilitation
1 3,000
Negotiated
procedure
October 3 - 5 weeks August No
6.0 Procurement Planning
32

7.0 DELEGATION OF AUTHORITY, ROLES AND RESPONSIBILITIES
At the outset of a project, clear delegation of roles, authority and responsibility and a
segregation of duties must be identified for procurement review and approval. Consistency
in this allows for easier implementation and adherence, and minimises confusion.
7.1 Basic Principles
The delegation of approval and signing authority should be decided by the implementing
partner or by CAFOD (if CAFOD is conducting the procurement), and where possible, should
remain consistent across all their projects to help clarify roles, responsibilities, and processes.
Roles should be clearly defined, particularly in situations or contexts where individual staff
members have multiple roles and responsibilities. For example, a finance staff member may
have a logistics and a procurement role, and a livelihoods project staff member may have
budget holding responsibility.
There are some basic principles to ensure good stewardship and transparency in the use of
resources and also to ensure that staff members are clear on their duties and responsibilities.
A basic guide to these principles is as follows:
• Staff members with a procurement role who are responsible for preparing the
procurement documentation or choosing suppliers should not authorise purchases,
purchase decisions or payments.
• The relevant budget holder should review the purchase to ensure that there is sufficient
funding available and to approve the purchase.
• Delegated authorities should be appointed to authorise and sign off purchasing decisions
and payments.
• Any changes in the delegated authority (i.e. a person leaving and a new person being
assigned the authority) must be clearly noted on the “Delegation of Authority, Roles and
Responsibilities” form (as per Table 4) and signed accordingly.
• In the absence of the appointed delegated authority, alternative delegates should be
identified. These alternative delegates should be of equal or higher grade than the
absent delegate. Normally, approvals would be delegated upwards to the next level (i.e.
in the absence of a local manager, the senior manager would approve local manager
level payments).
7.2 Correct Division of Roles and Responsibilities for Procurement Processes
Broadly defined, there are three key roles in the procurement process. Each role has key
responsibilities that they must complete and then sign to demonstrate their compliance with
the responsibilities. The roles are as follows:
PREPARATION REVIEW & APPROVAL AUTHORISATION
1. Preparation
This is the preparation of all procurement documentation following the correct procedures
and using the correct documentation and templates. The preparation should be conducted
by the staff member responsible for the procurement process – usually a logistician or
procurement specialist.
The staff member who is responsible for procurement has the following roles and
responsibilities:
• To ensure that appropriate procurement procedures are implemented in line with the
level of purchase, budget, and specification;
7.0 Delegation of Authority, Roles and Responsibilities
33

• To ensure that the use of the funds is consistent with CAFOD’s or the partner’s strategy for
the country, region or humanitarian situation, and complies with relevant organisational
policies and procedures;
• To confirm that the amount of the purchase represents proper value for money in
achieving the objectives of the project;
• To collate and manage a full paper trail of the procurement and payment, ensuring this
is provided for review and approval;
• To ensure the safe retention of all procurement documentation and informs CAFOD of
the storage location of all documentation;
• To sign to confirm that they have completed these duties, procedures, reviews and
checks.
2. Review and Approval
Once the documentation has been prepared by the procurement staff member, it must be
reviewed and approved. The review and approval process should be conducted by the
budget holder and where possible, a finance staff member to confirm that the purchase is
within the budget, programme scope and objectives, and is compliant with the appropriate
procurement regulations. Reviewing and approving staff members must sign to confirm that
they have reviewed all the supporting documents and approve the purchase.
The budget holder has the following roles and responsibilities:
• To decide on the use of the particular budget allocation, appeal fund or donor contract;
• To ensure that sufficient funds are available from that source;
• To confirm that the use of the funds is consistent with CAFOD or the partner’s strategy for
the country, region or humanitarian situation, and complies with relevant organisational
policies and procedures;
• To ensure they have read the relevant documents and the information presented is
internally consistent and acceptable;
• To review supplementary linked information (e.g. budget, proposal, etc);
• To signs to confirm that they have completed these reviews and checks and ensured
that all relevant documentation is provided.
The finance staff member has the following roles and responsibilities:
• To review procurement documentation to ensure that procurement procedures are
implemented in line with the level of purchase, budget, and specification;
• To ensure and review that sufficient funds are available from that source;
• To review documentation to ensure that all the supporting documents are consistent with
each other, and with the procedures;
• To check that the supporting documents and payment request are correctly signed by
the appropriate level of delegated authority;
• To maintain a complete audit trail of all original documentation to support the
accounting and payment of all procurement;
• To ensure the safe retention of all financial documentation and finance related
supporting documentation for the correct storage retention times. Informs CAFOD of the
storage location of all documentation and ensures that all documents are available for
subsequent audits and evaluations.
NOTE: The roles of the Budget Holder and Finance Staff member can be combined and
conducted by one individual.
7.0 Delegation of Authority, Roles and Responsibilities
34

3. Authorisation
The delegated authority conducts a final review, checking that the right procedure has
been followed, the correct documentation completed, and the appropriate approvals
received. The delegated authority can then authorise the procurement or payment. The
delegated authority must sign all documentation to confirm that they have reviewed the
documentation, that it is correctly prepared and approved, and that they authorise the
purchase / payment.
NOTE: The delegated authority can change depending on the level or amount of
procurement or payment.
The delegated authority has the following roles and responsibilities:
• To formally commit funds;
• To check that the appropriate presenter and/or budget holder has signed the relevant
documentation;
• To review and ensure that the supporting documents are consistent with each other, and
with the procedures;
• To confirm that the amount to be approved is clear and is consistent with the budget;
• To ensure that the grant falls within CAFOD’s or the partner’s overall remit and does not
represent any undue risk to CAFOD’s or the partner’s reputation or resources;
• To sign all documentation to demonstrate that authorisation is given and that correct
checks have been conducted on the process and documentation.
Section 8.1 below describes how the supply chain management related delegated authority
has been implemented within CAFOD.
7.3 Appointing Roles for Procurement for Partners
Some of CAFOD’s implementing partners only have a limited number of personnel. In the
case that a partner has 3 or less programme personnel, the minimum division of staff
responsibilities for procurement tasks must be clearly separated. The following provides
guidance as to the minimum division of roles and related responsibilities for these cases, and
how the staff should apportion their responsibilities:
SCENARIO A. The partner has 2 programme staff. These 2 staff should divide their
responsibilities as follows:
• 1 x Budget holder – combining preparation of procurement and budget review/approval
• 1 x Delegated authority – for authorisation
SCENARIO B. The partner has 3 programme staff. These staff should divide their responsibilities
as follows:
• 1 x Procurement staff
• 1 x Budget holder
• 1 x Delegated authority
7.0 Delegation of Authority, Roles and Responsibilities
35

SCENARIO C. The partner has more than 3 programme staff. The tasks and responsibilities can
be added and further divided. A minimum configuration would include:
• 1 x Procurement staff
• 1 x Budget holder and 1 x Finance staff
• 1 x Delegated authority
7.4 Documenting Delegation of Authority, Roles and Responsibilities
For each project that CAFOD supports, the implementing partner must complete a form that
clearly identifies the roles and responsibilities of partner staff.
Table 4 below provides a template for partners to use to identify the roles and responsibilities
of their staff and to identify and delegate approval and authorisation levels.
• The “Delegated Authority” column should be amended with appropriate job titles or
positions that the partner or organisation has. These are to be considered as roles, not
necessarily job titles and this column can be amended as appropriate.
• The “Responsibilities” column provides suggestions of the division of roles and the type of
roles that are needed for different purchase levels. Several roles or tasks may be the
responsibility of one staff member depending on the size of the organisation and the
level of purchasing required on the project.
• The level of approval for a waiver must be higher than the level of responsibility that
approves the procurement itself. For example a Budget holder may prepare a waiver
request and their local manager review and approve the request. The waiver must then
be authorised by the regional manager. See Section 24.0 for detailed guidance on
waivers including the process and approvals required.
• If partners do not consist of sufficient staff to provide signatories, delegated CAFOD staff
could be appointed as designated authorities. Their signatory limits should be added as
appropriate.
• To ensure compliance, the template in Table 4 should be updated and amended for
local or donor currencies using the detailed table in Annex 1. This will help inform staff
which procedure needs to be conducted and who can authorise procurement and
payments for each purchase.
• A completed and signed version of Table 4 should be maintained for each project that
CAFOD supports as a key project document. The table must be updated and amended
as necessary (for example, if project staff leave or alternative staff are appointed). The
table is an essential audit document as it identifies compliance with authorisation of
procurements and payments.
NOTE: Although partners may not have the job descriptions or staff members with these
particular job descriptions, the basic roles or duties can be assigned to staff members.
7.0 Delegation of Authority, Roles and Responsibilities
36

Table 4 Delegation of Authority, Roles and Responsibilities
Role:
Responsibilities:
Financial
responsibilities
Name of Person
Signature of
Person
Petty Cash Officer
Manages petty cash requests and
prepares petty cash report for review
and approval.
Up to £100
Budget holder
Identifies purchases required for
project implementation. Conducts
budget reviews to ensure funds are
available for proposed purchase.
Approves payments.
Up to funds
remaining in
budget
Procurement staff
Conducts procurement process and
completes all procurement
documentation.
No limit
Finance staff
Reviews and audits documentation
prior to preparing payments,
preparation of cash flow forecast
No limit
Bid Evaluation
Committee
Includes a delegated authority and 2
other voting members – reviews
procurement documentation and
supplier bids to confirm contract
decisions.
No limit
Delegated authority
– Level 1
Authorises payments and ensures
procurement meets compliance and
procurement systems. Chairs bid
evaluation committee meetings.
Up to £100,000
Delegated authority
– Level 2
Authorises payments and ensures
procurement meets compliance and
procurement systems. Chairs bid
evaluation committee meetings.
£100,000 to
£250,000
Delegated authority
– Level 3
Authorises payments and ensures
procurement meets compliance and
procurement systems. Chairs bid
evaluation committee meetings.
Above £250,000
Notes:
• The limits shown in the financial responsibilities table are for illustration only
• The “role” is described above, not the job title
• Delegated authority: some partners only have a single delegated authority level.
7.0 Delegation of Authority, Roles and Responsibilities
37

8.0 DOCUMENTATION RAISING, REVIEW, AND APPROVAL
The following table, Table 5: Documentation raising, review and approval guide provides a
quick reference point for staff to identify who prepares which documents, who needs to
review and approve these documents, and who should authorise the documents. In
addition, the forms may also need to be sent to or signed by another party (i.e. the
recipient).
This guide clearly shows the different signatories for forms and this provides transparency to
ensure that roles and responsibilities are divided appropriately between staff.
As in the previous section “Delegation of authority, roles and responsibilities”, the segregation
of duties is as follows, noting that the staff titles are roles rather than positions:
1. Preparation – of all procurement documentation by procurement staff.
2. Approval – and review conducted by budget holders; note that budget holders do not
authorise the payment but rather approve that it is within budget, the remit of the project
and the specifications.
3. Authorisation – of purchase and payments by delegated authorities (this person can
change depending on the value / level of purchase).
NOTE: At each stage – preparation, approval and authorisation – appropriate staff must sign
each document to confirm the correct steps and checks have been conducted
Table 5 should be used in conjunction with Table 4 to ensure adherence to the financial
levels of procurement, delegations of authority and responsibilities. The documents listed are
explained in subsequent sections of this manual. This table should be modified as necessary
considering the scenarios outlined in Section 7.2 of this manual.
Table 5 Documentation raising, review and approval guide
Document
Prepared by:
Reviewed and
approved by:
Authorised by:
Sent to:
Purchase Requisition
Any staff member
Budget holder and
Finance staff
Delegated authority
Procurement staff
Request for
Quotations / Tender
Procurement staff
Budget holder and
Finance staff
Delegated authority
Suppliers
Bid Matrix (purchases
under £5,000)
Procurement staff
Budget holder
Procurement stafffor
record keeping
Bid Matrix (purchases
over £5,000)
Procurement staff
Bid Evaluation
Committee
Procurement staff
Purchase Order (or
purchase contract)
Procurement staff
Budget holder /
Finance staff
Delegated authority
Appointed supplier
Goods Received Note Procurement staff Budget holder
Procurement staff -
for record keeping
and reconciliation
Goods Request
Voucher
Project staff Budget holder Procurement staff
Waybill Procurement staff Budget holder
Transporter also
receives a signed
copy
8.0 Documentation Raising, Review and Approval
38

Document
Prepared by:
Reviewed and
approved by:
Authorised by:
Sent to:
Distribution List Procurement staff Procurement staff
Budget holder &
Delegated authority
Recipients also sign
receipt of goods
Payment Requisition
form
Procurement staff
Budget holder /
Finance staff
Delegated authority
Finance staff for
record keeping
Waiver (when using
Institutional funding)
Budget holder Contract manager Donor
Contract manager to
retain copies of
waiver documentation
Waiver (when using
supporter and CAFOD /
CI funds)
Budget holder
Delegated authority
Delegated authority
(senior to staff who
raised and
reviewed the
request)
Contract manager to
retain copies of
waiver documentation
8.1 Delegated Authority for Supply Chain Management: Implementation within
CAFOD
NOTE: The word "authorisation" means the sign-off by the delegated authority. In contrast
"approval" means the sign-off by the budget holder (and finance).
1. In CAFOD the levels of delegated authority for making grants are defined as:
• T-Grade manager: may authorise grants of up to £100,000
• V-Grade manager (i.e. any Head of Department) may authorise grants of up to
£250,000
• X-Grade director (i.e. any Divisional Director) may authorise grants of up to £500,000
• Z-Grade officer (i.e. the Director) may authorise grants of over £500,000
2. For all documents needing authorisation in the supply chain (as per Table 5 above)
delegated authority rests at the same financial level as per CAFOD's standard grant
making levels, but with the following exceptions. These assume that segregation of duties
between budget holder and delegated authority are maintained throughout the supply
chain.
3. For a specific programme/project, the T / V / X manager may downwards delegate
authorisation of the following documents to a lower grade manager, although no lower
than an R-grade. This downward delegation must be locally agreed in advance, signed
and documented (for audit purposes):
• Purchase Requisition;
• Request for Quotation/Tender;
• Distribution List.
4. If the amount is for less than £5,000, the T / V / X manager is permitted to downward
delegate authorisation of the following documents to a lower grade manager, although
no lower than a R-grade. This downward delegation must be locally agreed in advance,
signed and documented (for audit purposes):
• Purchase Order or Purchase Contract (whichever used);
• Payment Requisition.
NOTE: The authorisation of these documents for amounts of more than £5,000 can only be
signed by the appropriate T / V / X manager.
8.0 Documentation Raising, Review and Approval
39

5. Director of ID is considered as a Z-grade sign-off level, i.e. no constraints, for all ID related
procurements.
6. The authorisation of a Waiver must be signed by the delegated authority level ABOVE
that usually required. The Director of ID is able to authorise all Waiver requests.
Examples of applying CAFOD’s supply chain management delegated authority rules
1. A £4,000 procurement in a programme where Regional Manager (T-grade) has agreed
to delegate all authorisation, where permitted and no greater than £30,000, to the
Programme Manager (R-grade).
In this procurement, ALL supply chain related documents need to be authorised by the
Programme Manager (only).
2. An £80,000 procurement in a programme where Regional Manager (T-grade) has
agreed to delegate all authorisation, where permitted and no greater than £50,000, to
the Programme Manager (R-grade).
In this procurement, ALL supply chain related documents need to be authorised by the
Regional Manager. A waiver would need to be signed off by the Head of Department
(HoD).
3. A £200,000 procurement in a programme where HoD (V-grade) has agreed to delegate
all authorisation, where permitted, to the Regional Manager.
In this procurement, the Regional Manager can authorise all supply chain documents
except: Purchase Order/Purchase Contract and Payment Requisition. These must still be
signed-off by the HoD. A waiver would need to be signed-off by ID Director.
4. A £1million procurement. ID Director (X-grade) has agreed to delegate all authorisation,
where permitted, to the Regional Manager.
In this procurement, the Regional Manager can authorise all supply chain documents
except: Purchase Order/Purchase Contract and Payment Requisition. These must still be
signed-off by the ID Director. A waiver would need to be signed-off by ID Director.
8.0 Documentation Raising, Review and Approval
40

9.0 BID MATRIX AND EVALUATING BIDS AND TENDERS
When reviewing any bids, supplier quotes or expressions of interest that are submitted by the
suppliers for any procurement procedure – tender or negotiated - it is important to have a
clear evaluation and analysis process.
NOTE: This system can be applied to all procurement procedures: negotiated, open and
restricted tender processes.
Procurement staff or bid evaluation committee members often focus on the price i.e. the
cheapest offer, but other factors may be more important for the implementation of the
project than the price – for example delivery dates, experience of the supplier, capacity of
the supplier, or the inclusion of transport and delivery facilities.
The processes used must be fair, open and transparent. Decisions made must be
documented with clear reasons.
Section 10.0, “Obtaining clarification from suppliers” also needs to be considered.
9.1 Principles of Evaluating Bids and Tenders
It is important that requests for quotations, tender dossier and expression of interest
documentation include details of how the bid evaluation will be conducted. A supplier’s
response to the Supplier’s Questionnaire, see Table 5, can provide valuable background
information and assist the bid evaluation.
Criteria
Procurement related decisions need to be based on a range of different factors, including:
• Value for money – is the quote within the budget Is the price extremely low Is it
realistic
• Reliability and previous record of the supplier – has this supplier been used before Do
they have a good reputation (with CAFOD/partner or with others known to us)
• Quality of goods or service – do they quote an appropriate brand, type, and model Do
the quoted brands fit with donor/project requirements Did they submit a sample
• Delivery and transportation – are these services provided Do they have their own
transport facilities Are the suggestions realistic and appropriate to requirements
• Timelines of the goods/service/works provided – does their delivery and transportation
schedule fit our proposed needs and activities
• Ethical concerns – is the supplier known to have interests or investments in trades that
would not be considered ethical (for example arms trading or illegal drug dealing)
• Service provision – has the supplier included a quote for, or has offered free of charge,
transportation, packaging, loading or unloading, guarantee, service or replacement
services
• Supplier capacity – does the supplier have the capacity to deliver the required goods
and services A visit to their office or warehouses may be needed, or reviewing their
annual accounts may indicate their capacity to deliver the necessary items or service.
• Warranty – does the supplier provide a warranty period on the required goods or
supplies
• Environmental considerations – does the supplier have an environmental standards
policy such as a recycling plan or using recycled packaging
Other factors to check:
• Ensure that the suppliers exist, have an office or warehouse and staff – this is usually best
done by visiting their premises;
9.0 Bid Matrix and Evaluating Bids and Tenders
41

• Check that their warehousing is suitable and sufficient for the requirements of the project
– again, this is usually best done by visiting their premises;
• Speak to referees, who have used this supplier in the past. Other NGOs in particular can
provide helpful references or experience;
• Check that a supplier has not submitted 2 or more bids under 2 or more
names/addresses/companies – crosscheck addresses, signatures, staff names, etc;
• What is the validity of the tender and quote itself It must cover the whole period for this
project activity but also check if it extends beyond this; so, if more of the same item has
to be bought, then the tender documentation can be reused or extended if necessary;
• Request a bank statement over several months from the company to ensure that they
are financially viable, and have been over a period of time.
Killer factors
When evaluating bids, it is important to consider what may be “killer factors” – for example, if
suppliers do not meet certain key criteria, there are automatically excluded. Killer factors
may include:
• Price – for example if the price is outside 10% of the budget available;
• Delivery/transportation – for example this is not included as a free service;
• Warranty/service – no warranty or service provision is included;
Such killer factors may actually be points that the supplier omitted to include (for example
service provision) and it is important to confirm whether the supplier would include these
factors if required. If not, and it is required, then these may remain as killer factors for
exclusion.
Professionalisation of systems: local suppliers ousted in favour of big national companies
The implementation of these procurement standards and use of official systems and
templates can result in small, local suppliers being unable to compete with large, national
companies due to limited staff or resource capacity.
However, there are many technical and ethical advantages to selecting a local supplier,
including:
• Local suppliers are closer to the project and can therefore provide quicker
support service
• Income to local suppliers benefits the local economy and population, thus adding
value to the programme’s operations
• Local suppliers have a local reputation to uphold that they will be unwilling to risk
through poor performance
Therefore, local suppliers should be encouraged to participate as fully as possible in
procurement processes. For negotiated procedures (up to £60,000) in particular, being a
local supplier could be considered and important selection criteria if they can ensure that
they can provide a more personal and effective service.
9.2 The Bid Matrix
The aim of the bid matrix is to concisely present the information submitted by all suppliers in
response to the request for quotation, tender dossier, or expressions of interest
documentation. It forms the basis for the subsequent analysis that the bid evaluation
committee will undertake. Whilst it will have a strong financial component, it should also
capture key information related to the suppliers’ responses to other aspects of the
procurement, for example delivery timescales and contractual conditions. A bid matrix
should be used in each of the procurement procedures and for all purchases over £100 if
more than 1 bid is collected. A bid matrix is a requirement for all purchases over £5,000.
9.0 Bid Matrix and Evaluating Bids and Tenders
42

A bid matrix can take many forms, and (Microsoft Excel) templates are given in Annexes 5, 6
and 7. However, a Microsoft Word document could also suffice for straightforward
procurements.
9.3 The Evaluation Matrix
An “evaluation matrix” presents the results of a level of analysis (scoring) that has been
applied to the bid matrix and the suppliers’ responses. Against each of a range of relevant
criteria (e.g. the list included in Section 9.1), the bid evaluation committee will award a score,
usually between 0 and 5. The scores will then be added together to give an overall score for
each supplier. The supplier with the highest overall score would usually be selected as the
preferred supplier.
The value of a defined scoring system is that it:
• Provides a clear guide for staff who are reviewing the tenders/quotations;
• Provides a clear table of results for making and justifying final decisions;
• Provides a clear table of results for suppliers if they have questions over the decisions;
• Provides a clear justification of results and decisions for auditors (or other
donors/reviewers) if they have questions over the decisions.
Table 6 A suggested scoring system
Score Compliance rating % against defined criteria
0 Not at all compliant with set criteria 0% compliant
1 Compliant in very limited areas Up to 50% compliant
2 Partially compliant – low 50.1% - 75% compliant
3 Partially compliant – medium 75.1% - 90% compliant
4 Partially compliant – high 90.1% - 99% compliant
5 Fully compliant Fully compliant (100%)
This possible scoring system as shown in Table 6 is where the score awarded for each criterion
is dependant on the level of compliancy that the supplier offers. This can be modified to
meet the needs of the specific procurement, but the scoring system used must be clearly
defined and easy to follow by all participating bid evaluation committee members. The
scoring system also easily identifies bids that are non-compliant on a number of different
areas (i.e. have been scored ‘0’ in more than one key area) and are subsequently
disqualified.
When reviewing the bids, the bid evaluation committee must follow the evaluation criteria
that are included in the tender dossier documentation. An evaluation matrix template is
shown in Annexes 6 and 7 as part of the bid evaluation report.
9.4 Weighting
For more complex and/or large procurements the use of a weighted scoring system
(sometimes known as a weighting ranking analysis) is usually helpful. This is a method of giving
a greater importance (weight) to some criteria than others. Weighting can only be used
when a scoring system has been adopted to compare the bids/tenders.
For example, for a tender with seven assessment categories, a non-weighted analysis would
give each category a weighting of 14.3% (7 x 14.3% = 100%). However a weighted solution
9.0 Bid Matrix and Evaluating Bids and Tenders
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might wish to give a greater bias to, for example, the technical, financial and logistics
aspects:
Technical and capacity 25%
Financial 25%
Logistics 20%
Organisational strategy and quality 15%
Administrative 5%
Ethical and environmental standards 5%
Additional considerations 5%
A weighted evaluation requires the use of Microsoft Excel (or equivalent) to automate the
calculations. Annex 6 (Sheet 3c - Bid evaluation with weighting) contains a template that
automatically calculates weighted totals from scores in an evaluation matrix.
The cumulative weighted total of scores would identify the successful or most appropriate
supplier for the procurement.
9.5 Bid Evaluation Committee
1. Why is a bid evaluation committee needed
The convening of a bid evaluation committee is important because it increases the
transparency and accountability for purchasing decisions and ensures that the processes are
properly understood and carefully followed. The bid evaluation committee reviews and
approves the selection of a supplier.
The appointment of a bid evaluation committee also ensures a consideration of a broad
range factors by a number of people, improving both transparency and preventing
individuals making final, unilateral decisions.
2. Who participates in a bid evaluation committee
The bid evaluation committee should consist of a minimum of 3 members. Bid committee
members should include:
• Designated chairperson – who is responsible for running the Bid Committee. The
designated chairperson is a voting member of the committee;
• Designated secretary – a secretary must be appointed for each bid committee meeting.
The secretary must record all minutes and decisions from each meeting. The designated
secretary is a voting member of the committee;
• Other voting member(s) – an odd number of members for the bid committee is
recommended for voting purposes;
• Procurement staff member - the staff member that is managing the specific purchase
can attend the meeting to provide clarification on documentation and the bid matrix
but should not be a voting member. When necessary or appropriate for the context, the
procurement staff member can be asked to leave the bid committee during the voting
process;
• External technical consultants or staff – additional technical staff may be necessary for
specific purchase activities and should be requested to attend the bid committee and
participate as a voting member. These technical staff can be external to the
organisation (for example medical personnel who may be involved with or able to
support the partner in making relevant purchasing and quality decisions), or could be an
internal technical advisor (for example a nutritionist or engineer from CAFOD or the
partner).
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Note: It is common, particularly in very hierarchical societies, that decisions are made by
senior staff members and more junior staff only make recommendations. The use of a bid
committee, and the requirement that decisions much be clearly justified and
documented by at least 3 staff members, can help to minimise the influence of individual
staff in purchase decisions
3. When is a bid evaluation committee needed and what do they do
A bid committee must be formed to support every purchase that is over £5,000 in total value.
For all of these purchases, the bid committee is required for different stages of the purchase.
There are 5 key roles that the bid committee must complete:
1. Confirming the pre-selected supplier lists – the procurement staff must provide the
bid committee with a list of suppliers that can be considered to receive the request
for quotations. The bid committee must consider the justifications for the selection of
each supplier and is responsible for approving or modifying the list of pre-selected
suppliers.
2. Conducting bid opening meetings – For purchases above £5,000, bids should be
received in sealed envelopes and should be held in a secure, sealed container until
the appointed bid opening meeting. The bid committee should then conduct the
bid opening meeting. The suppliers that have submitted a bid can be invited to
attend the bid opening meeting but not any subsequent discussions.
3. Analysing the submitted bids and choosing the best supplier(s) – For all purchases
over £5,000 a bid evaluation committee must be convened to consider all received
quotations and bids and then chose and approve which supplier(s) will be
appointed for each purchase. The bid committee is responsible for analysing the
bids carefully to identify the best supplier.
4. Co-ordinating the obtaining of additional information or clarifications – If a decision
cannot be made following the first meeting, the bid committee must identify any
visits or discussions that are to be held with specific suppliers and then reconvene to
consider this additional information prior to making a final decision.
5. Monitoring the procurement process - The bid committee must ensure that the
correct procurement procedure for the purchase is being followed. The committee
is also responsible for ensuring that the correct documentation is provided,
reviewed, approved, and authorised. The bid committee must ensure that the
relevant procurement procedure is implemented correctly and they must review all
tender documentation and monitor the implementation of all tender processes and
activities.
Bid committees and partners
Partners often use a bid committee process but it is not a formalised structure. For
example, a partner organisation may review bids and make purchase decisions in their
general staff meetings.
As long as a purchase decision has been agreed and documented by at least 3
appropriate staff members the criteria for a bid committee has been met.
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4. How are bid committee meetings documented
Bid committee meetings must be carefully and correctly documented to record all decisions
made and their justifications from these meetings. Table 7 below provides a summary of
requirements.
There are three key documents that the bid committee must complete to ensure that the
correct information is captured. Templates of each document are available in the annexes
to this manual.
• Bid opening report – The bid opening report must be completed when sealed bids are
opened by the bid evaluation committee. Details of this report can be found in Section
13.0 and a template is available in Annex 6.
• Conflict of interest declarations: Conflicts of interest must be avoided and staff must
remain absolutely free from any obligation to any supplier. Employees directly responsible
for purchasing and those on the bid evaluation committee should declare any personal
or family interest, involvement, or financial relationship with a supplier that might impair
objectivity or freedom of judgment. Therefore, each member of the bid committee must
sign a conflict of interest declaration at the bid opening meeting, once the sealed bids
have been opened.
- A “conflict of interest declaration” template is available as Annex 4 of this manual;
- The procurement staff member must also sign a conflict of interest declaration;
- Any additional members for specific meetings or any consultants or technical advisers
must also sign this declaration;
- At the start of each bid committee meeting members should be reminded that it is
their responsibility to highlight any changes to their conflict of interest declaration.
• Bid evaluation report - The bid evaluation report must be completed as the bid
evaluation committee reviews and analyses the bids. As discussed in the previous
section, this is particularly necessary when a scoring system is being used and when the
bids are complex, as in tender procedures. Details of this report can be found in Section
13.0 and a template is available in Annex 6 and 7. The bid matrix forms part of the bid
evaluation report.
Other bid committee requirements include:
• Minutes of meetings: Each bid committee meeting must be clearly documented
including recording the agenda, minutes of the meetings, decisions made and
participants involved;
- The committee members should appoint a secretary to record the minutes of the
meetings, action points that are identified, who is appointed the responsibility for
completing these action points, and any decisions made with clear justifications;
- The minutes and meeting reports should be retained with the signed conflict of
interest declarations.
• Points of contact and additional information from suppliers: If necessary, the bid
committee should appoint a point of contact or responsible person to conduct any
discussions with the suppliers. This appointed person must document all communications
and conversations that they have with suppliers and report them to the bid committee
members at subsequent bid committee meetings;
- Any visits made to suppliers should be conducted by an appointed member or
members of the bid evaluation committee and details of who conducted these visits,
when, to where and their observations must be recorded and reported to the bid
committee members at subsequent bid committee meetings.
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Table 7 Bid committees – when to hold them, what to consider and how to document them
TASK KEY CONSIDERATIONS SUPPORTING DOCUMENTATION REQUIRED Notes
Confirming the pre-selected
supplier lists
Ensure a minimum 3 suppliers are being
approached – if not, why not
Who are the pre-selected suppliers – why have
they been chosen
Minutes of meetings – including decisions made
and justifications: ensure all members sign the
minutes.
Is there a reasonable range of suppliers –
consider location, brands, past experience.
Is the correct procedure (negotiated or tender)
being conducted for this purchase
Conducting bid opening
meetings
Have the bids been received correctly – were
any late or non-compliant (for example not
sealed correctly)
Are any of the bids incomplete, for example
samples have not been received that were
requested
Bid opening report (template in Annex 6 and 7).
Minutes of meetings – including decisions made
and justifications: ensure all members sign the
minutes.
Members must sign a conflict of interest
declaration.
Suppliers that submitted bids can
attend.
Analysing the submitted bids
and choosing the best
supplier(s) at bid evaluation
meeting(s)
Review the bid matrix provided plus all the
supporting bid documentation.
Analyse the bids considering value for money,
price, quality, reliability of supplier, delivery
schedule.
Bid matrix submitted by Procurement staff – the
bid matrix should capture the information but not
recommend a decision.
See the list of considerations in Section 9.1.
The procurement staff member
can attend to provide clarification
but is not a voting member.
Is there any information missing that is required
before a final decision can be made If so,
appoint a contact person responsible for
following up with suppliers and arrange a follow
up meeting.
Minutes of meetings – including decisions made
and justifications: ensure all members sign the
minutes.
Bid evaluation report (see Annex 6 and 7 for a
template)
9.0 Bid Matrix and Evaluating Bids and Tenders 47

TASK KEY CONSIDERATIONS SUPPORTING DOCUMENTATION REQUIRED Notes
Coordinating the obtaining of
additional information or
clarifications
If a final decision cannot be made in one
meeting, the bid committee can delegate a
member to collect additional information from
suppliers.
Appoint one member to follow up with suppliers.
Meeting and visit reports must be documented.
Identify key information required, when it should
be collected by, and how it should be collected
(e.g. visits to suppliers, by phone/email, etc.).
If visits to suppliers are planned,
ensure more than one bid
committee member attends and
reports are compiled following
these visits.
Monitoring the procurement
process
Is the correct process being conducted for this
particular procurement
If a tender is required, should it be an open or
restricted tender
Is the process being conducted correctly
Any discrepancies or waivers must be
considered and approved by the bid committee.
Use the thresholds for procurement ( Table 1 of
the manual) to ensure the correct procedure is
being used
Use the flow charts in Annexes 5, 6 and 7 to
ensure the correct steps are being taken.
Bid evaluation report to document the process
and all decisions made.
9.0 Bid Matrix and Evaluating Bids and Tenders 48

10.0 OBTAINING CLARIFICATION FROM SUPPLIERS
10.1 Why Supplier Clarification is Needed
In an ideal world, a bid evaluation committee would be able to review all suppliers’ bid
documents, application forms and supplier information, and be able to make a definite
decision in order to award the contract.
However, in the majority of cases, questions, confirmation and clarification must be sought
from the suppliers before a final decision on which supplier to choose can be made – this
may require a partial or complete re-quoting process to be conducted. If all, even slightly,
non-compliant bids were dismissed or disqualified, often there would be no bidders or
suppliers left in the assessment and the tender process would have to be terminated or
restarted. Therefore, some level of clarification will be required from suppliers to allow the
process to progress.
Some reasons of why the suppliers’ bids may not allow a complete review and immediate
supplier appointment might include:
• Our specification was not clear enough – in this case all suppliers may have to re-quote
against a new specification;
• Supplier(s) misunderstood the specifications given – in this case the supplier(s) may have
to partially re-quote for the particular items, or re-quote completely if necessary, following
a thorough explanation of the specification;
• Suppliers have omitted to include some items (e.g. warranty, transport etc) – in this case
the supplier(s) may have to re-submit their quote including these item(s);
• Having reviewed the suppliers’ submissions the specifications, quantities, timescale or
other factor needs to be changed – in this case all suppliers may have to re-quote against
a new specification.
In order to identify a suitable supplier and ensure that all information is duly received and
processed, a clarification process must be conducted. This clarification stage can challenge
standards of transparency and fairness. Therefore, all discussions with suppliers that seek
clarification on their bids must be managed transparently and carefully documented.
Clarification discussions, whether carried out face to face or by letter or email, must be
conducted with all eligible suppliers to allow them equal opportunities to clarify or modify
their submitted bids. These discussions do not have to take place with all suppliers at once
but can take place with each supplier individually.
Clearly ineligible suppliers identified from the applicants can be disregarded and further
discussions do not need to be held with them. Details of these ineligible suppliers must be
documented on the bid evaluation and bid opening reports.
10.2 How to Hold Clarification Discussions with Suppliers
Following the initial review of the bids submitted by the suppliers following a request for
quotation or tender process, a clarification exercise will be needed. To conduct this
clarification exercise, the following basic rules should be followed:
• Communications - all communication with suppliers should be conducted in writing or by
email and copies of all communications must be filed with the final tender report. If
communications are conducted by phone, all conversations must be clearly and
accurately documented;
• Delegated contact person - the chair person of the bid evaluation committee must
appoint a delegated contact person for all communications with suppliers. This is most
likely to be the procurement staff member working on the particular procurement but
can also be another member of the bid committee;
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49

• Documentation - the delegated contact person must document all communications with
all suppliers and retain all documentation as annexes to the overall report templates;
• Clarification meetings - clarification meetings can be held with supplier. These meetings
should take place in the office of the buyer (i.e. CAFOD’s or CAFOD’s partner’s office)
and detailed minutes of these meetings must be recorded. The minutes of all clarification
meetings must be attached to the overall tender evaluation report;
• Questions raised - all eligible suppliers must be informed of the questions that are raised –
even if the question only relates to one of the suppliers. [However, a level of pragmatism
is needed. If, for example, there are questions related to a list of 20 products that are
being tendered for as a single package, it would acceptable to advise the eligible
suppliers that points of clarification are being raised with all suppliers but only ask suppliers
specific questions related to their own bid];
• Involvement of bid evaluation committee - the bid evaluation committee must remain
fully involved throughout the negotiation phase to ensure that no unilateral decisions are
being made by the appointed contact and the suppliers;
• Additional committee meetings - the bid evaluation committee must consider all
additional or supplementary information at the re-convened bid evaluation committee
meeting. Minutes of these subsequent meetings and discussions must be taken.
10.3 What NOT to Discuss with Suppliers
When seeking to obtain clarification on details of suppliers’ bids, certain discussions are
unacceptable:
• Information of the bid made by one supplier should not be shared with another supplier
in an attempt to knock down prices, or improve schedules or terms and conditions - this is
a breach of confidentiality and transparency;
• Negotiations should not be held with a supplier to try and get them to improve their terms
and conditions or reduce their price and bid in comparison with another bidder. It would
however be acceptable to invite all eligible suppliers to present a more competitive bid –
see 10.5 below.
10.4 What Discussions to Seek Clarification Should Focus On
Clarification discussions must focus on obtaining the following details, information and
assurances from the suppliers:
• Ensuring that the details given in the suppliers’ bids are correct and accurate, and
clarifying any queries or contradictory or inaccurate information;
• Ensuring that suppliers have fully understood what information was required and clear on
the terms and conditions in the tender dossier or request for quotations;
• Ensuring that suppliers have fully provided the information that was required and that any
documentation or information that was omitted from their bid has been requested.
10.5 How to Handle Cost Related Discussions with Suppliers
Except for simple procurements, it is likely that clarification discussions with suppliers will have
a direct or indirect impact on the costs of their bids (e.g. transportation requirements,
contractual conditions, clarified specifications). There therefore needs to be a fair and
transparent mechanism that allows all suppliers to resubmit the cost of their offer together
with an explanation as to why the costs have changed (either increased or decreased).
However what is unacceptable in all circumstances is to have one-to-one discussions with
individual suppliers about how they would be able to make their own offer more, or the most,
attractive.
Particular care needs to be taken during an open tender as the whole process may be
invalidated if all suppliers are not treated equally.
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50

10.6 Risks in Conducting Clarification Discussions
There are inherent risks in conducting a clarification process with suppliers. Staff involved in
the process must be aware of, and try to mitigate these risks. By bearing key risks in mind
during the process and maintaining clear documentation and clear lines of communication,
many of the risks can be avoided. Some of the risks and possible mitigating factors include:
• Supplier price fixing - suppliers negotiate with each other to fix a price agreed between
themselves either before or during the discussions:
- Mitigation: Obtain bids from a wide range of suppliers from local as well as regional or
neighbouring districts or towns;
- Mitigation: Ensure that discussions are based on clarification rather than providing an
opportunity for suppliers to renegotiate or reorganise their application.
-
• Supplier complaints - suppliers complain of unfair treatment or preferential treatment of
some suppliers over others:
- Mitigation: Ensure that all suppliers are given equal opportunity to provide additional
or supplementary information;
- Mitigation: Maintain clear communication lines and document all discussions
between one appointed communicator (CAFOD/partner staff) and the suppliers.
-
• Compromised process - Although the initial tender or request for quotations procedure
was implemented correctly, a lack of transparency and accountability develops during
the subsequent discussions that compromises the entire process:
- Mitigation: clear documentation of subsequent discussions with suppliers must be
maintained and are attached to the final bid decision as a clarification memo;
- Mitigation: conduct regular meetings with the bid evaluation committee throughout
the process to ensure that unilateral discussions are not taking place between each
supplier and the appointed contact person.
• Continued indecision despite clarification - Even though discussions took place to clarify
information, the bid evaluation committee remains unsure about which supplier to award
the contract to as the bids are similar:
- Mitigation: Obtain detailed references for each supplier that has applied – ensure
that the reference is valid, true and relevant to the required purchase (often other
NGOs will provide references for suppliers on similar, recent purchases);
- Mitigation: Delegated members of the bid evaluation committee can conduct visits
to the offices and warehouses of the suppliers that have applied and are most likely
to be awarded the bid to see their facilities, staff, and offices. All visits made to
suppliers must be reported – who was visited, who conducted the visit and when, and
any observations or decisions made must be documented;
- Mitigation: Using the weighted scoring system in the bid evaluation will help provide a
clear evaluation system that can identify differences between suppliers even if their
actual bids (price, brand etc) are similar. By considering the relative value of each
component of the bid, decisions can be more easily made.
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51

NOTE: Key points on obtaining clarification with suppliers:
• The aim of this clarification stage is to obtain an optimum contract – a “win-win”
situation for both the supplier and for the purchaser (CAFOD or CAFOD’s
implementing partner) so that the supplier makes a reasonable profit and CAFOD or
CAFOD’s partner receives a good level of service;
• Because there is often a grey area between ‘negotiation’ and ‘clarification’ clear
documentation should be maintained of all discussions to maintain transparency in
this process;
• This stage is NOT an opportunity to negotiate a better price, terms or conditions for
the procurement with a single supplier;
• Inviting all suppliers to resubmit their offerings based on their, now fully, clarified
understanding of the requirements is acceptable. In such circumstances the reasons
for any cost related changes (increase or decrease) will need to be explained;
• An awareness of the risks inherent in holding discussions with suppliers is critical for
conducting these discussions in the most transparent way possible.
These clarification points can be applied to all procurement procedures; negotiated
procedures, and open and restricted tender processes.
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11.0 PROCUREMENT PROCEDURES: THE NEGOTIATED PROCEDURE
11.1 Basic Principles
This is the most common procurement procedure that CAFOD and CAFOD’s implementing
partners will need to use.
In a negotiated procedure, a minimum of three suppliers are approached simultaneously,
and in writing, and are invited to bid for the contract but no public announcement is made.
CAFOD or the implementing partner can also approach suppliers of their choice to bid for
the contract. To ensure transparency, the request for quotation must be sent to the chosen
suppliers in writing. In situations where three suitable suppliers do not exist or respond to the
call, appropriate documentation is required to justify this. See Section 24.0 on Waivers and
Derogations and Section 12.0 on negotiated procedures with a single bid.
11.2 When this procedure can be used
A negotiated procedure should be conducted when the total contract or purchase value is
between £1,001 and £60,000 (or an equivalent amount).
NOTE: For purchases up to £100 a petty cash process can be conducted and approved by
the correct delegated authority.
There are three value categories that must be considered when using the standard
negotiated procedure for goods, services, and works:
• For purchases between £101 and £1,000, purchase decisions can be made by the
procurement or initiating officer and the budget holder. Authorisation for procurement
must be obtained from the correct delegated authority. A single quote from a single
supplier can be obtained and a note to file should be used to document the process
including why this single supplier was selected;
• For purchases between £1,001 and £5,000, purchase decisions can be recommended by
the procurement or initiating officer and the budget holder. Authorisation for the
procurement must be obtained from the correct delegated authority. The standard
negotiated procedure steps as detailed below must be followed;
• For purchases between £5,001 and £60,000 the procurement staff must convene a bid
evaluation committee to chose, appoint, and approve which supplier will be used. The
bid evaluation committee should consist of a minimum of 3 members including a
designated chairperson and secretary and one other voting member – see Section 9.5
for more details. The procurement staff member can attend the meeting to provide
clarification on documentation and the bid matrix but is not a voting member.
NOTE: The negotiated procedure is the minimum required for purchases as defined by the
value limits above. If the value of a purchase falls within the negotiated procedure value
category, a more rigorous purchasing procedure, such as a tender process, can be
implemented if this is felt to be more appropriate to the circumstances. For example, for a
purchase of less than £60,000, if CAFOD/partner does not have a good understanding of
potential suppliers for particular goods or services it would be appropriate to use an open
tender rather than a negotiated procedure. The open tender process will, by its very nature,
identify the range of available and interested suppliers. In this case, no waiver is required to
use the higher purchase procedure.
The following section provides a step by step guide and the relevant forms to complete and
to adhere to the negotiated procedure.
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53

11.3 The Negotiated Procedure Process
Templates for standard negotiated procedure procurement documents are available as
Annex 5 - Negotiated Procedure Templates. These templates provide a guide to the type
and standard of documentation required.
11.4 PART A: Preparation
STEP 1a: Prepare detailed specifications
Ensure that the specifications of the item are clear and include the quantity and type. The
initiator of the procurement (e.g. the project staff, livelihoods officer, etc.) should ensure that
as much information about the items as possible is provided.
The more accurate the description the more likely the most appropriate and suitable item will
be procured in a timely manner. The detailed specifications are entered into the Purchase
Requisition Form.
Table 8 below provides suggestions of how to obtain these detailed specifications and from
where.
Table 8 How to obtain detailed specifications
Obtaining specification details to prepare a purchase requisition and quote
What information is needed
Details are needed on:
• Price;
• Quantity;
• Type;
• Technical specifications (size, weight, colour, capacity, etc.);
How to obtain information for item specifications
Information on prices and specifications should be taken from:
• the approved budget;
• crosschecked with recent similar purchases if available;
• checking the local market;
• other locations or towns in the area.
It is normal for extensive discussions to occur between purchasing or procurement staff to
establish and finalise specifications (for works and goods purchases or contracts) or
statements of work (i.e. for service contracts).
Such discussions should form the basis of obtaining the details required for the specification
of the items to be purchased.
NOTE: It is important that suppliers are aware that this is not a request for quotations or a
commitment to purchase the items from a particular supplier
Step 1b: Complete and obtain approval of a Purchase Requisition Form
Once the specification of the goods, service or work is finalised, a Purchase Requisition Form
can be drawn up. This form is used by any project staff to identify, requisition, or initiate a
purchase. The procurement of office and programme materials is only possible within the
project activities and the approved budget. The Purchase Requisition Form verifies that the
procurement is allowed and is checked by the budget holder. The Purchase Requisition Form
includes details of the items and the required quantity, which budget the items are allocated
to, and an estimated price.
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The Purchase Requisition Form is completed by the staff member requesting the purchase,
for example the budget holder, and is reviewed by the procurement staff to either verify the
estimated price or input the actual price and to check whether the item is available in the
project’s stores as necessary. The budget holder must verify that the request is within the
budget, that there are sufficient funds left in the appropriate budget line, and then approve
the purchase to be implemented by the logistics or procurement staff.
Finally, the delegated authority authorises the purchase verifying that the need is legitimate
and that the programme has the required funds to cover the purchase. The authorised
Purchase Requisition Form is then returned to the procurement staff member who proceeds
with the purchase.
Without the required approvals, authorisations and checks against the budget, no
procurement should take place.
NOTE: An approved Purchase Requisition Form is the starting point of the actual purchase
11.5 PART B: Shortlist
Step 2: Select (shortlist) suppliers to be invited to respond to a Request for Quotation
Once the purchase requisition form has been authorised, the procurement staff member
should consider which suppliers should be invited to submit a bid – a shortlist of a minimum of
three suppliers should be drawn up. The list of suppliers should be clear and the justifications
of why some suppliers are being approached and others not, should be clear.
If the total purchase value is over £5,000, a bid committee should review and approve the list
of pre-selected suppliers and the justifications for the choice of suppliers before the request
for quotations is sent out. A note to file needs to be completed if three possible suppliers are
not available to be approached and why.
Table 9 below provides suggestions of how suppliers can be identified that could receive
requests for quotations.
Table 9 Who should Request for Quotations be sent to
Who should Request for Quotations be sent to
The procurement staff member must send the Request for Quotations to at least 3 suppliers.
In a negotiated procedure, suppliers can be from the local market, or from national or
regional suppliers as appropriate depending on the items and quantities required. This can
be suppliers that:
• have provided similar goods before;
• have been recommended by others (i.e. other NGOs or partners);
• are known to the partner and/or CAFOD;
• have been identified through market research (for example at the specification
stage 1).
It is important to not always use the same suppliers as this would give the impression that
there is no fair competition for others.
Recommendation: it is recommended for local offices to have a database or list of
local/national suppliers, and their specialities, services and other information – including
whether they are not good service providers. This should be regularly updated and is helpful
when deciding who to send the request for quotations to.
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11.6 PART C: Request for Quotations and Evaluation
Step 3a: Prepare and distribute a Request for Quotations to selected suppliers
Once the shortlist of suppliers has been identified and approved by the bid committee (if
over £5,000), the procurement staff member should complete a Request for Quotations – this
can be either the template given in Annex 5 or a document specifically prepared for the
procurement. The procurement staff should use the detailed specifications of what is to be
purchased, details of delivery dates and locations, and any other required criteria.
The Request for Quotations can be modified and the Annex 5 template has suggestions of
what should be included (packaging, whether VAT is included in the quote 6 , VAT exemption,
certification of the suppliers 7 , availability of samples, delivery date, date of validity of
quotations, etc).
A standard supplier questionnaire can be also be used in addition to the Request for
Quotation form. Using a standard supplier questionnaire can be particularly useful for larger
purchases (i.e. over £5,000) to help gauge the capacity and capability of the individual
suppliers and consider more than their price offer as advised in Section 9.1. A supplier
questionnaire should include questions regarding the supplier’s registration, size, and clients
for references. Examples of a simple, standard supplier questionnaire and a more in depth
standard supplier questionnaire are available in Annex 10 of this manual.
In the event that the quotes that are returned by suppliers are all above £60,000 i.e. are
higher than anticipated and go above the threshold for a tender procedure, the procedure
must be reviewed before proceeding.
There are two options available:
• The negotiated procedure must be stopped and a tender procedure must be
conducted.
• If necessary, due to the emergency nature of the purchase, a waiver could be requested
to proceed with the negotiated procedure.
Step 3b: Receive the request for quotation responses from suppliers
The procurement staff can send out a Request for Quotations that the suppliers can
complete or fill in - see an example template in Annex 5. Using a standard template that
suppliers complete usually saves a lot of time and ensures that the correct information is
provided.
Alternatively, the suppliers can submit their bid as a letter with supporting specification or
their own standard document. If they submit their own bid document, the procurement staff
must ensure that all relevant information is included.
It is important that suppliers are aware that this is a Request for Quotations and not the
confirmation of an order and that no contractual obligations have been entered into at this
stage.
Step 3c: For purchases over £5001, hold a bid opening meeting
For all purchases over £5,000, a bid committee should be convened to open the sealed bids
received from suppliers. Sealed bids should be opened together at an appointed time so
that the bid opening meeting can be attended by suppliers that have submitted a bid.
However, suppliers must not attend any discussions related to the bid decision. The
committee should appoint a secretary and chairman. The secretary should take minutes of
6 Some institutional donors (e.g. ECHO) will not pay VAT unless VAT exemption is not possible in the country of operation.
7 It is advisable to obtain the VAT status of suppliers and obtain any VAT registration certificates or exemption certificates that
may apply in country to suppliers and NGOs.
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56

the meeting (a template for the bid opening report is attached as Annex 6). Minutes of the
bid opening meeting must be taken including notes of all bids received and whether any
were rejected due to being submitted late or incorrectly (for example not in sealed
envelopes).
See Section 9.0 on bid committees for information on who should participate, how the
meetings should be documented and what the bid committees need to do.
Step 3d: Complete a bid matrix and select a supplier. If over £5,000, a bid committee is
needed
For purchases between £1,001 and £5,000: On receipt of all the bids from suppliers, the
procurement staff must collate the information into a matrix or table that allows for the
comparison and analysis of the supplier’s information to help the procurement staff to make
a decision about which supplier to recommend for the order.
A bid matrix template is available in Annex 5 or any document that allows clear comparison
and justification of the decision can be used. More than three bids can improve
accountability and value for money. You can also add rows for additional items or
considerations - all information provided by the suppliers should be included on the bid
matrix.
For purchases between £1,001 and £5,000, the procurement or initiating officer makes a
purchase recommendation for approval by the budget holder. The recommendation must
be supported by a justification for the choice of supplier(s) and must be clearly documented.
The bid matrix should be signed by the recommending and approving staff. The
authorisation for procurement must be obtained from the relevant project manager or
delegated authority.
For purchases between £5,001 and £60,000: Following the bid opening meeting, the
procurement staff member must collate the information into a bid matrix and convene a bid
committee meeting. The procurement staff member collates the information but does not
make a purchase recommendation.
The bid committee must review the bid matrix to compare and analyse the supplier’s
information to make a decision about which supplier to select. If three bids are not obtained,
an explanation of how bids have been sought and why there are less than three bids needs
to be provided by the procurement staff to the bid committee. The committee must then
agree to the justification or propose alternative actions. At the bid committee all decisions
and explanations should be clearly documented and the supporting bid matrix and all report
documentation must be signed by the members of the bid committee that made the
decisions.
As per Section 9.3, the bid evaluation committee should consist of a minimum of three
members including a designated chairperson and secretary and one other voting member.
The budget holder can be a voting member. The procurement staff member who is leading
the procurement can attend the meeting to provide clarification on documentation and the
bid matrix, but is not a voting member.
For all purchases - evaluating the bids and supplier offers: During the bid evaluation
committee meeting, the members should make their procurement decisions using the bid
matrix and considering the following factors (see Section 4.0 for details):
• Value for money, but not too low
• Reliability and previous record of the supplier
• Quality of goods or service
• Timelines of the goods/service/works provided
• Ethical concerns
• Effect of purchasing upon local markets
• Delivery conditions
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• Funding from other institutions
• Other standards and guidelines
• Donor specific guidelines
Procurement can be distributed between more than one supplier. For example, if the
quantity required is too large for one supplier or different suppliers have better quotes for
different items on the list you can award the procurement to more than one supplier 8 . The
procurement staff member should ensure that each decision and justification is clearly
documented on the bid matrix.
The budget holder and the procurement staff member, and all members of the bid
evaluation committee should sign the bid matrix to approve the choice of supplier or
suppliers and the justifications of choices made.
NOTE: For additional guidance on completing a bid matrix, reviewing bids, and obtaining
clarifications from suppliers see:
Section 9.0 Bid Matrix And Evaluating Bids And Tenders
Section 10.0 Obtaining Clarification From Suppliers
11.7 PART D: Contracting
Step 4: Prepare and approve a Purchase Order (or sign a Contract). Inform unsuccessful
suppliers.
Once a supplier has been chosen, use the information from the bid matrix and the Request
for Quotations to either complete a Purchase Order or prepare a Contract. The signed
version of the document used is the confirmation of the order to the chosen supplier(s).
Ensure the terms of payment, penalties for non-performance, locations and dates for delivery
are clearly established and documented. The Purchase Order gives the supplier authorisation
to deliver and invoice for the ordered goods or services, and therefore becomes a
commitment for the amount and value of those items and the delivery requirements. A
Purchase Order, when signed by the supplier, becomes a contract.
If items are being delivered in batches, payments should be staggered against each
delivery. It is recommended to withhold a portion of the total payment (i.e. a retention
payment) until all deliveries have been satisfactorily received. For example, at least 30% of
the total value could be retained until all goods have been satisfactorily received. This should
be flexible and negotiated individually with the supplier. Retention payments are usually
withheld on large quantity or high value deliveries, or items such as computers which take
some time to be fully operational.
Section 25.0 “Contractual Conditions” provides details of the Contract and Purchase Order
approaches to placing an order with a supplier. Annex 11 provides a number of supporting
documents:
Annex 11a:
Annex 11b:
Annex 11c:
Annex 11d:
Terms and conditions for the supply of goods and/or services.
Purchase Order
Contract for the supply of goods and/or services
Terms and conditions for the supply of services (only)
Once the contract or purchase order with the successful supplier has been signed, the
unsuccessful suppliers must be informed. This is good practice to encourage them to submit
bids in the future.
8 Be aware that splitting the contract between suppliers may mean that the price per supplier goes up as suppliers may quote
for a bulk buy and asking more than one supplier to provide the items may lose the bulk buy price.
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11.8 PART E: Delivery, Payment and Closure
STEP 5: Delivery and receipt of goods. Completion of a Goods Received Note
Use the user guides in Sections 16.0 and 19.0 of this manual and the logistics and delivery
form templates in Annex 12 for the implementation of the delivery and receipt of goods.
STEP 6: Preparation and approval of a Payment Requisition
Use the user guide in Section 21.0 of this manual and the payment requisition form template
in Annex 15. Payments should be approved by the correct delegated authority i.e. the same
level that approved the purchase to start with.
Step 7: File the completed negotiated procedures documentation
It is critical that all documentation related to the entire procurement process, including the
request for bids, bid responses, and bid selection and award documentation, payment,
delivery and receipt are maintained for legal and audit purposes.
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12.0 PROCUREMENT PROCEDURES: NEGOTIATED PROCEDURE WITH A
SINGLE BID
In some exceptional cases, it is possible to conduct a negotiated procedure with only one
candidate rather than the minimum of three suppliers. This can only be done in the following
cases:
• In the immediate response to an emergency. Normally the emergency stage that would
be acceptable for this would be a maximum of three months.
• Whenever no tenders/offers or no suitable tender/offers have been submitted in response
to a negotiated procedure after the initial procedure has been completed. A justification
note should be written and attached to the documents.
• Whenever, for technical or operational reasons, or for reasons connected with the
protection of exclusive rights, the contract can only be awarded to a particular supplier.
• For additional contracts consisting in the renewal/repetition of services/works or supplies
entrusted to a contractor and awarded an earlier contract, provided the terms of the
original contract and the status of the supplier 9 have not been substantially altered. The
period elapsed between the award of the first contract and the renewal must not be
more than ONE YEAR. Contracts can only be renewed TWICE in this way.
• For additional supplies, works or services not included in the original contract which, due
to unforeseen circumstances, have become necessary for the implementation of the
project, provided that the aggregate value of the additional supplies/works/services,
does not exceed 50% of the value of the original contract.
• For the rent, lease or hire of property such as office, storage or warehousing, whatever
the estimated value of the contract, and after prospecting the local market.
• Contracts in respect of purchases on particularly advantageous terms, either from a
supplier who is ending all their business activities, or from receivers or liquidators of a
bankruptcy, an arrangement with creditors, or a similar procedure.
• When a suitable waiver request has been approved by the relevant donor or delegated
authority.
NOTE: The single bid procedure should only be used in exceptional cases and the reason why
it is being used should be clearly stated and documented. Any irregularities in the procedure
will make the single bid procedure invalid. Therefore, before the single bid process is used, it
must be reviewed and approved by the appropriate level of authority.
Documentation of the reason and justification for the single bid process, and details of the
alternative procedure must be maintained and filed appropriately. Copies of the
documentation must be maintained by the project contract manager so that it is available
for any subsequent audit or review.
9 For example the company ownership has not changed or there has been no material change to the company.
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13.0 PROCUREMENT PROCEDURES: OPEN TENDERS
13.1 Basic Principles
In an open tender procedure, the notice of purchase is publicly advertised and announced
with a “Tender Notice” in the media and on the partner’s, or CAFOD’s website. Whether the
tender is local or international is identified by the total purchase amount and that dictates
where the tender notice is placed and advertised. Once the tender notice is advertised, the
procurement procedure for both local and international tendering is the same.
Open or Restricted Tender
The diagram below outlines the process to decide the type of procedure to use. The value of
the procurement (varies for goods, service and works) determines whether a negotiated
procedure, locally advertised or internationally advertised procedure is needed. If a tender is
required, a decision is then made on whether to use an open tender process or a restricted
tender process - refer to Section 14.0 on the reasons for choosing a restricted tender process.
The tender notice for all open tenders informs all potential suppliers and applicants of the
request and briefly what will be required. Potential suppliers are then invited to request the
tender dossier to complete their application and submit their bid. The process is conducted
as transparently as possible, and all bids are reviewed simultaneously by a bid evaluation
committee.
Tender procedures are often considered time consuming and cumbersome. However, there
are several important advantages of using a tender:
• It is a good mechanism for avoiding fraud;
• A bid evaluation committee evaluates the bids therefore providing multiple
considerations;
• Institutional donors require tender processes for purchases over set values;
• Long term contracts with suppliers are more cost- and time-efficient;
• The process is fully transparent and clearly documented;
• The process creates visibility and liability.
However, for a tender, it is imperative to ensure good planning is in place so that the
preparation and documentation of the tender process is conducted as swiftly and efficiently
as possible and does not unnecessarily hold up project implementation or activities. Using the
procurement planning tool outlined in Section 6.0 will facilitate this process.
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CAFOD, or the partner that is conducting the tender, must inform all suppliers that have
made a bid of the outcome of the tender. In addition, and in order to ensure transparency, it
is good practice to post a public award notice on CAFOD’s, or the partner’s, website.
NOTES on open tender procedures:
The tender process has a number of steps and documents and careful adherence to the
instructions is required. A flow chart for the implementation of the open tender procedures is
available in Annex 6.
When starting the procedure, print off the open tender procedure check list and place it at
the beginning of the working folder. The checklist guides the user to enter dates and tasks to
make sure that the correct documentation is collected, signed, dated, approved and
authorised. At the completion of the procedure, the completed check list becomes the
tender report for that procedure. A check list for the open tender process is available in
Annex 6.
Table 10 and the following sections provide definitions and levels of the implementation of
each procedure.
Table 10 Definitions and thresholds for open tenders
Open tender procedures
Definition: tender procedures are ‘open’ whenever all interested suppliers may submit a
tender after the publication of a tender notice.
There are 2 types of open tender:
1. Local open tender:
For a local open tender, the tender notice is published in all appropriate media
(newspapers, radio, etc.) in the country in which the action is carried out as well as the
implementing agency’s website or office.
This procedure should be used in the following cases:
• Goods and services: A local open tender procedure must be conducted when the
total purchase value of goods or services exceeds £60,000 but is less than £150,000;
• Works: A local open tender must be conducted when the procurement of works
exceeds £60,000 but less than £2,500,000.
2. International open tender:
In an international open tender procedure, the notice of purchase is advertised through the
international media and in the country of operation, as well as the implementing agency’s
website or office
This procedure should be used in the following cases:
• Goods and services: An international open tender procedure must be conducted
when the total purchase value of goods, supplies or services exceeds £150,000.
• Works: An international open tender must also be conducted when the procurement
of works exceeds £2,500,000.
13.2 Implementation of the Open Tender Process
The following provides information of the steps to conduct, and relevant forms to complete
and adhere to a local or international open tender procedure. The guide provides
instructions as to how to complete the forms, and what steps and decisions to make.
There are 4 key process steps for the implementation of an open tender.
Part 1: PREPARATION
Part 2: TENDER DOSSIER
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Part 3: TENDER EVALUATION
Part 4: CONTRACTUAL AGREEMENTS
Templates for all procurement documents for the open tender procedure, as well as
examples of key documents including tender notices and rejection letters are available in
Annex 6. The process should be conducted following the flowchart of activities in Annex 6.
13.3 PART A: Preparation
STEP 1a: Prepare detailed specifications
Ensure that the specifications of the item are clear including the quantity, or particular type.
The initiator of the procurement (i.e. the project manager, livelihoods officer or other budget
holder, etc.) should ensure that as much information as possible regarding the item is
provided.
The more accurate the description the more likely the most appropriate and suitable item will
be procured in a timely manner. The detailed specifications are entered in, or attached to,
the Purchase Requisition Form.
For goods and services: Information on prices and specifications should be taken from the
budget and can be cross-checked with recent similar purchases if available, or by checking
the local/national market, on websites or other sources of information.
For works: prior to the tendering of a works contract a Bill of Quantities or design plan will
have been drawn up. Details of this should form the basis of the tender specification.
At this point, identify whether an INTERNATIONAL or LOCAL open tender procedure needs to
be conducted using the procurement threshold guidelines above.
STEP 1b: Complete and obtain approval of a Purchase Requisition Form
Once the specification of the goods, service or work is finalised, a purchase requisition form
can be drawn up. This form is used by any project staff to identify, requisition, or initiate, a
purchase. The procurement of office and programme materials is only possible within the
project activities and the approved budget. The Purchase Requisition Form verifies that the
procurement is allowed and is checked by the budget holder. The Purchase Requisition Form
includes details of the items and the required quantity, which budget the items are allocated
to, and an estimated price.
The Purchase Requisition Form is completed by the staff member requesting the purchase,
for example the budget holder, and is reviewed by the procurement staff to either verify the
estimated price or input the actual price and to check whether the item is available in the
project’s stores as necessary. The budget holder must verify that the request is within the
budget, that there are sufficient funds left in the appropriate budget line, and then approve
the purchase to be implemented by the logistics or procurement staff. Finally, the delegated
authority authorises the purchase verifying that the need is legitimate and that the
programme has the required funds to cover the purchase. The authorised Purchase
Requisition Form is then returned to the procurement staff member who proceeds with the
purchase.
Without the required approvals, authorisations and checks against the budget, no
procurement should take place.
NOTE: An approved Purchase Requisition Form is the starting point of the actual purchase
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13.4 PART B: Advertising
STEP 2: Prepare an Open Tender notice and advertise (locally or internationally)
Prepare the open tender notice. The aim of the tender notice is to publicise the tender and
that suppliers are being invited to compete. The tender notice provides basic information to
help suppliers decide whether to bid and then information on what steps to take in order to
submit their bid.
The tender notice should include the following information:
• Brief description of the contracting NGO/agency - including name and address of
agency;
• Brief description of the contract – including when and where items are required;
• Documentation required as part of the submission (e.g. audited accounts);
• The contact details for suppliers to obtain the tender dossier.
Table 11 Example of an open tender notice 10
Advertising period: 15 – 29 May 08 (for 14 calendar days)
Latest date for collecting
tender dossier:
Deadline for tender
submission:
5 Jun 08 (7 calendar days after advertising close)
12 Jun 08 (7 calendar days after last collecting
date)
Tender Notice
As part of the emergency earthquake response, CARITAS Pakistan is planning to equip 3
basic health units in the Union Councils of Boi and Dalola in Abbottabad district and in
Therian Muzafarabad in AJK.
CAFOD is seeking interested suppliers to provide relevant documentation for the supply of
equipment and medicines to these Basic Health Units (BHUs).
The specification of BHU Equipments and the BHU equipment details and quantity required is
available from the office address below and must be collected no later than 12noon (GMT)
Thursday 5 June 2008.
The deadline for submission of tenders is 12noon (GMT) Thursday 12 June 2008.
Envelopes must be clearly marked with the reference “BHU supply tender CAFOD-UK 08-03”
Interested and eligible suppliers are invited to contact:
The Humanitarian Department, CAFOD, Romero Close, Stockwell Road, London, SW9 9TY
Tel: +44 (0)20 7095 5231 / Fax: +44 (0)20 7274 9630
Email: name@cafod.org.uk (Mark all emails as “BHU supply tender CAFOD-UK 08-03”)
CAFOD will acknowledge receipt of each tender and, following completion of the
evaluation procedure, will inform each respondent of the decision on their offer. CAFOD are
not obliged to justify or explain selection to any respondent*
* This clause may not be appropriate in each country. Staff must check and delete if
necessary.
10 This is an example and should be used as a template – the correct information and specifications / contact details should be
inputted as appropriate
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The tender notice should then be advertised using the following guidelines: 11
1. Local / National Open Tender Procedure
Publish the tender notice as widely as possible including local and national media (especially
newspapers and where possible, by radio) and at the local or national CARITAS and CAFOD
offices, and the CAFOD website. It is appropriate to notify suppliers of the tender directly.
• The notice should be advertised for a minimum of 14 calendar days.
2. International Open Tender Procedure
Publish the tender notice as widely as possible. As for national and local tenders, place the
advert in the local and national media (especially newspapers and where possible, by radio)
and at the local partner office or CAFOD/partner’s office and the CAFOD/partner’s website.
In addition, place the notice in the international media and other sites such as the Inter-
Agency Procurement (IAPG) group website (http://www.iapg.org.uk/) and, if possible, in
specialist journals. If necessary, programme staff can discuss with HD or PPSS funding teams
for assistance in placing the tender notice. It is appropriate to notify suppliers of the tender
directly.
• The notice should be advertised for a minimum of 21 calendar days.
Where to advertise
• Newspapers – often, newspapers are the most important media for the notice to
tender. Most partners or CAFOD country staff will be aware of the most suitable
and widely read papers in their locality
• Public places – put the advert in public places such as the market, town hall or
local administrative buildings where a wider range of possible suppliers are likely to
visit
• Radio – as with newspapers, radio adverts can be extremely important in many
countries. Again, partners or CAFOD country staff will be aware of the most
suitable and widely listened to radio stations in their locality
• CAFOD/partner office – put the advert in a prominent place (on the gate or
notice board) of the advertisers office to ensure the regular suppliers will see the
notice
• CAFOD/partner website – if possible and appropriate, tenders can be advertised
on the websites of the partner or CAFOD. They can also be advertised on IAPG’s
website as CAFOD is a member of the IAPG
13.5 PART C: Tender Dossier and Evaluation
STEP 3a: Prepare and distribute the tender dossier to all interested suppliers:
1. Tender dossier preparation: The tender dossier should be prepared at the same time as
the award notice so that suppliers can collect the dossier during the advertising period.
Once the tender notice has been advertised for the correct period of time (see above),
at least one more week must be given after the close of advertising to allow suppliers to
collect the tender dossier.
There are 8 documents that make up the tender dossier application pack. Templates for
Documents 1 to 5 can be found in Annex 8 – Tender summary letter.
11 NOTE: the cost of advertising should be considered as it can be expensive. Ideally the costs related to the procurement
procedure should be identified at the budget and procurement planning stage. See section 6.0 for details and recommendations
13.0 Procurement Procedures: Open Tenders
65

‣ Document 1: Information for all suppliers – this document includes a letter that provides a
complete summary of how to complete the Tender Dossier and how, and when to submit
it. It also outlines the tender dossier and what the supplier needs to complete.
Ensure the date, time and location for the submission of tenders is in this letter. Ensure that
the date, time and location of the tender opening meeting is included. Also include
clear details of the proposal submission criteria. For example:
• Submit four hard copies of proposal in sealed double envelopes;
• Write the supplier name, address and tender reference on the envelopes;
• Submit one electronic copy of proposal on CD or USB;
• Submit to: provide name and address of contact for receipt.
It should be made clear in this letter that tender submissions cannot be considered after
this point and that submissions will be held in a sealed box from receipt until the set
tender opening meeting.
‣ Document 2: Tender Specifications for all suppliers - The tender dossier must be carefully
laid out and attention paid to ensure that the specifications are exactly what are
required. Errors or incomplete information requests at this stage can result in tender
responses being received that are difficult to analyse and result in extensive supplier
negotiations that will challenge the transparency of the process.
The tender specification should include careful consideration of delivery information,
packaging, labelling and transport requirements, costs, dates, and any other special
requirements.
‣ Document 3: Tender Exclusion and Evaluation criteria – this document provides suppliers
with essential information that will be used by the bid evaluation committee to assess
each tender including exclusion terms and a suggested evaluation criteria. Ensure that
the correct documentation is requested to support the evaluation criteria that will be
used to appoint a supplier. For example if financial capacity is part of the key evaluation
criteria, ensure that supporting evidence, such as bank account details, audited
accounts, or most recent audit report, are requested.
If weighted scoring criteria are to be used, these should be added to the exclusion and
evaluation criteria section of the tender dossier pack. For additional information on
scoring and weighting for evaluating tenders, see Section 9.0 of this manual.
‣ Document 4: Conditions for tendering – these criteria are attached to this summary letter
and are to be reviewed by the applying supplier. The conditions include restrictions and
conditions that will govern the tender process.
‣
‣ Document 5: Supplier form - this document must be reviewed, signed and returned by the
applying supplier. The supplier form is attached to this summary letter.
‣
‣ Document 6: Supplier questionnaire - this document provides a standard template for
suppliers to complete with their bid. It allows the suppliers to provide clear information
that can then be compared by the bid evaluation committee when they are considering
all the submitted applications. A supplier questionnaire must be used with all tenders over
£60,000 whether open or restricted tenders. Template supplier questionnaires for
purchases over £60,000 and for smaller purchases (under £60,000) are available as Annex
10.
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Supplier Questionnaires – A standard questionnaire should be completed by all interested
suppliers. Using a supplier questionnaire:
• ensures that the supplier knows what information needs to be provided;
• allows the buyer to check that the supplier has actually provided what was required; and
• allows the buyer to check the capacity of the supplier relative to the size of the planned
purchase;
A template of 2 standard supplier questionnaires are available as Annex 10: short (less than
£60,000); Annex 10 full (more than £60,000)
A supplier questionnaire should request the following Information on:
• Administrative capacity and structure
• Technical capacity
• Financial capacity and systems
• Logistics capacity
• Organisational strategy and quality
• Ethical and environmental standards
• Additional considerations
The specific questions in the questionnaire can be modified to ensure they are appropriate
for the purchase being made.
‣ Document 7: Supplier code of conduct – included in the tender dossier is a code of
conduct for suppliers. All suppliers need to read this document and sign that they agree
with the terms and conditions in the code of conduct. See Annex 17 for the Supplier
Codes of Conduct.
‣ Document 8: Supplier terms and conditions – this document provides the terms and
conditions that will apply on agreement of the contract with the successful supplier. This
document is to be reviewed and signed by the applicant. The terms and conditions
document is attached to this summary letter. This document needs to be amended as
necessary and sections added as appropriate. See Annex 11 for template contract terms
and conditions.
Summary of documents to be provided in the tender dossier
Document 1: Tender Dossier information for all suppliers – to be reviewed by the supplier
Document 2: Specifications for suppliers – this document includes detailed specifications of
the item(s) required. Suppliers must provide a detailed costing for the items listed.
Document 3: Exclusion and Evaluation criteria (including the scoring system to be used) – to
be reviewed by the supplier
Document 4: Conditions for tendering – to be reviewed by the supplier
Document 5: Supplier Form – to be completed, signed and returned by the supplier
Document 6: Supplier questionnaire - to be completed by the supplier
Document 7: Supplier Code of Conduct - to be signed and returned by the supplier
Document 8: Supplier Terms and Conditions (that will apply on agreement of the contract) -
to be reviewed by the supplier
Templates of each of these documents are available in the manual – as detailed in the text.
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2. Briefing meetings: If appropriate, all suppliers can be invited to attend a briefing meeting
with CAFOD or the partner who is conducting the tender. This meeting should be held
after the advertising period is closed to allow a maximum number of suppliers to
participate. At this meeting, the tender dossier and competition criteria will be explained.
The briefing meeting can be an opportunity for CAFOD/the partners to provide more
details of the items required and if possible, to show the suppliers samples of the items. All
details of the tender (the closing date, time and location, how bids must be submitted,
etc.) can be confirmed at this meeting. Such briefing meetings are important as they can
help to clarify what is required and ensure that suppliers are clear on the specifications of
the time.
3. Recording the distribution of tender dossiers: Once suppliers have received the tender
dossier, they should be allowed a minimum of 7 calendar days to respond and submit
their bids. A record should be kept of which suppliers collected or requested a tender
dossier.
A small charge (e.g. £10-£20) can be made to suppliers that collect the tender dossier –
this can help ensure that the applicants that do submit a bid are serious about their
application. If a charge is made to the suppliers on collection of the dossier, the money
received should be recorded.
STEP 3b: Receive the completed tender dossiers from suppliers
1. All tender responses from suppliers must be received in double, sealed envelopes;
2. The name and address of the supplier and the tender reference number should be
clearly marked on the outside of the envelope;
3. A record should be kept of all bids received, from who and when. All bids must be
deposited in a secure box until the bid opening meeting;
4. Any late bids, i.e. those received after the submission deadline, should be returned to the
supplier unopened.
STEP 3c: Hold a tender/bid opening meeting
There are 2 steps in the evaluation of the tenders received by the bid evaluation committee.
1. Firstly, the tender opening meeting ensures general compliance of the tenders with the
stated evaluation criteria;
2. Secondly, the committee conducts a bid evaluation including a thorough review and
evaluation of the tenders in order to appoint a successful supplier. (There will often be
more than one bid evaluation meeting conducted depending on the complexity of the
purchase and decision.)
Both of these meetings require the completion of a meeting report that clearly documents
and justifies all decisions made. All meeting reports must be signed by all participating
members of the bid committee.
A bid evaluation committee must conduct both the tender opening meeting and the tender
evaluation meeting(s). The members must include a chairperson and a secretary plus one
other voting member. The budget holder can be a member of the bid evaluation
committee. Technical experts or advisors can be invited to participate in the bid evaluation
committee to provide additional advice. The procurement staff can attend bid evaluation
meetings to provide technical and procurement clarification as well as to introduce the
tendering process and documents, but they should not be voting members. This ensures the
proper segregation of duties and allows an independent assessment of bids and
recommendation of actions.
‣ DOCUMENT 1: Tender opening meeting report:
Once the closing date for the receipt of tenders has passed, the appointed bid evaluation
committee must formally open the bids. Refer to Section 9.5 for more information about the
bid evaluation committee. The suppliers that have submitted bids can be invited to attend
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the bid opening meeting but none of the following discussions regarding the detail of the
bids. The tender opening meeting must be documented and minutes taken using the tender
opening meeting report. The bid or tender opening meeting report consists of 3 sections:
• SECTION 1: Tender opening session information: This section provides information for the
tender opening meeting itself and a checklist of items that need to be reviewed and
actions that must be conducted during the tender opening meeting. Any minutes or
additional action points should be recorded and each item marked as completed or
discussed.
• SECTION 2: Tender initial evaluation and assessment format: In the tender opening report,
each supplier must be assessed and their bid evaluated for administrative and technical
compliance. In each section, record whether the supplier fulfilled the criteria, whether
the information was incomplete or whether and why any supplier is disqualified. Any
additional notes regarding each section should be documented in the “notes and
remarks” spaces against each point.
• SECTION 3: Bid opening meeting summary: This section summarises the suppliers who
have been found to be non-compliant and states the reasons for non-compliance,
whether suppliers submitted a bid that had documents missing, those that withdrew their
tenders, and whether any clarification is needed, and who is responsible for following up
for this clarification. Any notes or additional remarks and minutes must be documented
here.
In the event that the quotes that are returned by suppliers are higher than anticipated and
go beyond the threshold for a local/national tender procedure and therefore require an
international tender procedure, the procedure must be reviewed before proceeding. There
are two options available:
• The local/national open tender procedure must be stopped and an international
tender procedure must be conducted.
• If necessary, due to the emergency nature of the purchase, a waiver could be
requested to proceed with the local/national open tender procedure.
In addition, having now been made aware of the suppliers who have submitted bids, the
members of the bid evaluation committee must confirm that they have no personal
(including family) links or associations with any of these suppliers by signing a Conflict of
Interest Declaration – a template is given in Annex 4.
At the end of the meeting all participating members must sign and date the completed
tender opening report. The tender opening meeting report should be reviewed at the bid
evaluation committee meeting and should then be attached to the final, signed bid
committee evaluation report that confirms the successful supplier(s).
STEP 3d: Hold bid evaluation committee meeting(s), seek supplier clarification, and select
supplier(s)
Once any non-compliant tenders have been removed during the tender opening meeting,
the process of tender evaluation and supplier appointment can be conducted. To facilitate
the tender evaluation for the bid committee meeting, the procurement staff member needs
to provide the committee members with key documentation prior to the evaluation meeting:
‣ DOCUMENT 2: Bid matrix of all the submitted tenders:
Following the opening of the tenders at the tender opening meeting, the procurement staff
member that is leading on the procurement should complete the bid matrix and include all
the details provided by the suppliers. This officer does NOT make a recommendation but
attends the bid evaluation committee to provide any clarification needed. If possible, the
procurement staff member should provide the committee members with all tender related
documentation at least 3 working days prior to the meeting. The committee members should
ensure that they have reviewed the documentation prior to the meeting.
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69

The bid evaluation committee members should have the following key documentation prior
to the evaluation committee meeting:
• Copies of all submitted supplier bids that have been deemed as compliant in the
tender opening meeting.
• Copy of the tender opening report.
• Copy of the prepared bid matrix.
• Copy of the blank bid evaluation committee report.
‣ DOCUMENT 3: Bid Evaluation Committee Report:
The Bid Evaluation Committee should appoint a secretary and complete each section of the
tender committee evaluation report. All members must have signed a conflict of interest
declaration. The report should consist of a detailed report of each step that was conducted
and each decision made and include 12 :
• Preparatory Session: The chairman and the secretary have checked the documents for
proper approval by all members and any observers. The Chairman informed the
members of the scope of the proposed contract, identified the organisations responsible
for preparing the tender dossier, and summarised the essential features of the tender
procedure to date. (This session is not essential but may be required to update
committee members);
• Tender Opening Session: The tender opening report is attached to this report. The
evaluation committee only considered those tenders which were found to be suitable for
further consideration and evaluation following the tender opening session;
• Part 1 – Conflict of interest Declaration: Include a copy of the signed conflict of interest
declaration form to confirm that the all the bid evaluation committee members have
declared any conflict of interest with any or the suppliers of their representatives;
• Part 2 – Choice of procedure: Identify which particular procurement procedure was
chosen and why (include total price of award/budget) – this can include specific donor
compliance, notes on any waivers received and approved, cost limits, or other reasons.
The particular procedure needs to be identified. The reasons why this particular
procedure has been conducted must be clearly stated;
- Open or Restricted
- Local or International
- Waivers confirmed
• Part 3 – Publication of the tender notice: Include information on when, where and how
the tender notice was advertised. Whether the notice is advertised locally (nationally) or
internationally is determined by the value of the total purchase. Ensure copies of the
published tender notice are retained including the image of any website adverts.
• Part 4 - Scoring system used for bid evaluation (if any): Identify the scoring system that
was used to score each of the suppliers’ applications bids against each of the agreed
compliance criteria for the tender. Scoring, together with criteria weighting (if used),
allows a clear decision to be made on the basis of total marks. The evaluation of the bids
should consider the following sections:
- Administrative capacity and compliance: Check the suppliers have submitted the
tender according to instructions and essential requirements of the tender dossier (see
criteria on the evaluation report format and the summary bid opening report)
- Technical capacity and compliance: Check that the supplier meets the essential
technical requirements of the tender dossier.
12 Usually more than one bid evaluation meeting will be required before a final decision is made. Therefore a bid evaluation
committee report should be completed in this way for EACH bid evaluation committee that is conducted.
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70

- Financial capacity and compliance: Do any of the tenders appear to be abnormally
low in relation to the market for the supplies in question Have the tenders been
recalculated to ensure that they add up correctly
- Logistics capacity and compliance: Check that the supplier has the appropriate
logistics capacity to support and complete the purchase – including warehousing,
transportation, stocks, and subcontracting.
- Organisational strategy management and quality: Consider how the supplier will
manage the additional project if they win the tender; are their management systems
suitable for managing the proposed purchase
- Ethical and environmental standards: Do they have a code of conduct; do they
demonstrate their compliance with health and safety, environmental concerns
(packaging, recycling, etc.)
- Additional considerations: Do they provide any additional information that can be
considered eligible and relevant; have they provided references and client lists
• Part 5 – Summary of the evaluation: using the scoring system identified, and ensuring any
bid calculations are correct, summarise the final tenders for each supplier – the average
score should be calculated from each sub-total from the categories described above;
• Part 6 – Final ranking of tenders: Having excluded non-compliant tenders and double
checked that the calculations and scores for the bids are correct, rank the final tenders
in order of total scores. If no scoring system is used the tendered are ranked in order of
the price of their corrected bids.
• Part 7 – Conclusion: Confirm which supplier(s) has (have) been chosen and why. Ensure a
second supplier is identified which can be used in the event of the first choice supplier
not being available/willing to accept the procurement. This section must include minutes
of any follow-up actions that are required and a delegate must be appointed to
complete the actions. If the committee needs to be reconvened to review additional
information, the time, date and location of the next meeting must be confirmed as well
as actions to be completed;
• Part 8 - Signatures of all committee members: All members of the committee must sign
and date the report. This needs to be done again if the committee is reconvened to
consider extra information.
NOTE: Procurement can be distributed between more than one of the bidding suppliers.
Ensure clear justifications and document which supplier was chosen for which items and why.
The completed and signed bid evaluation committee report should provide a clear
justification for how and why the decisions have been made. The bid opening meeting
report should be attached to the final bid committee evaluation report.
Summary of documents for the tender evaluation process
DOCUMENT 1: Bid opening report – including minutes and summary of decisions
DOCUMENT 2: Bid matrix – including a summary of information of all bids received
DOCUMENT 3: Bid evaluation committee report – including minutes, signed conflict of interest
declarations and summary of decisions
Templates of each of these documents are available in Annex 6.
13.6 PART D: Contracting
STEP 4a: Sign the Contract with the successful supplier
‣ DOCUMENT 1: Once a supplier has been chosen, use the information from the bid matrix
and all tender documentation to prepare a Contract. The signed version of the Contract
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71

is the confirmation of the order to the chosen supplier(s). [Note a Contract would be the
usual approach for Open Tender, although a Purchase Order with standard terms and
conditions might be appropriate for a simple procurement.] Section 25.0 “Contractual
Conditions” provides details of the approach for placing an order with a supplier. Annex
11c provides a contract template.
STEP 4b: Inform the unsuccessful suppliers
‣ DOCUMENT 3: Rejection letter: Inform the unsuccessful suppliers that submitted a bid that
their tender was unsuccessful. This is important to encourage suppliers to continue to bid
in future tender processes.
STEP 4c: Publicly confirm the contract using an Award Notice
‣ DOCUMENT 4: Award Notice: Once the contract is signed with the successful supplier,
CAFOD must publicly state which suppliers they have used for every contract over
£60,000. This public statement is called an Award Notice and should be posted on the
CAFOD or the partner’s website. An example of an Award Notice is found in Table 12
below.
Table 12 Example of an Award Notice
Description of
contract
Reference
number (i.e.
tender notice ref)
Name and address
of successful
supplier
Value of
contract (£s)
Dates of contract
Supplies for 3
basic health units
Pakistan reference
No.
Mr. Mazhar Iqbal,
Marhaba Trading
Corporation, 3 rd
Gate, Ayub Medical
Complex, Abbottabad
41,920 1 March – 30 June
2008
Construction of 3
basic health units
Pakistan reference
No.
Zain Ul Abdeen,
Jinnah Avenue, Blue
Area, Islamabad
898,310 7 April 2007 – 6 April
2008
Summary of documents for the contracting process
DOCUMENT 1: Purchase Order
DOCUMENT 2: Supplier Contract - Terms and Conditions
DOCUMENT 3: Rejection letter
DOCUMENT 4: Award Notice
Templates of each of these documents are available in the manual
13.7 PART E: Delivery, Payment and Closure
STEP 5: Delivery and receipt of goods. Completion of a Goods Received Note
Signing the contract is not the end of the process for the project! The transportation, delivery,
storage and distribution of goods must be carefully managed. Use the user guides in Sections
16.0 and 19.0 of this manual and the logistics and delivery form templates in Annex 12 for the
implementation of the delivery and receipt of goods.
STEP 6: Preparation and approval of a payment requisition
Use the user guide in Section 21.0 of this manual and the payment form templates in Annex
15 for the payment requisition.
STEP 7: File the completed tender report ensuring correct documentation, signatures and
approvals
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72

Ensure all documentation related to the open tender is filed together, including the tender
documentation from the unsuccessful suppliers. This is important for subsequent audits or
reviews. Use the Open Tender procurement file card (Annex 6) as a checklist to ensure all
documentation is present. Details of supporting documentation and filing that is required are
available in Section 21.0 of this manual.
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73

14.0 PROCUREMENT PROCEDURES: RESTRICTED TENDER
14.1 Basic Principles
Tender procedures are restricted whenever an Expression of Interest contract notice is
published. All suppliers or contractors can submit an Expression of Interest and request to
participate in the tender but only a shortlist of candidates satisfying a set selection criteria
are invited by the contracting agency (i.e. CAFOD or the local partner) to submit a
complete tender dossier. A shortlist should contain a minimum of FOUR and a maximum of
EIGHT candidates.
A restricted tender allows an initial selection of candidates to be conducted so that only
short listed candidates are invited to submit the complete tender dossier. Therefore all
suppliers are invited to take part, but only short-listed candidates satisfying the stipulated
selection criteria are invited simultaneously, and in writing, to submit a tender.
When using ECHO funding, refer to Annex 21 for specific guidelines for the use of Restricted
Tenders.
Open or Restricted Tender
The diagram below outlines the process to decide the type of procedure to use. The value of
the procurement (varies for goods, service and works) determines whether a negotiated
procedure, locally advertised or internationally advertised procedure is needed. If a tender is
required, a decision is then made on whether to use an open tender process, or a restricted
tender process.
Advantages of a restricted tender when compared with an open tender:
• A smaller number of tender dossiers are submitted for a restricted tender than an open
tender – a restricted tender is therefore useful when there are potentially a large number
of possible applicants for a contract;
• More efficient use of CAFOD/partner resources as the detailed analysis and evaluation
effort is focussed on a small number of suppliers.
As with the open tender process, there are a significant number of steps and documents
required and adherence to the instructions is necessary. A flow chart for the implementation
of the restricted tender process is available in Annex 7.
When starting the procedure, print off the restricted tender procedure check list and place it
at the beginning of the working folder. The checklist guides the user to enter dates and tasks
to make sure that the correct documentation is collected, signed and approved. At the
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74

completion of the procedure, the completed check list becomes the tender report for that
procedure. A check list for the restricted tender process is available as Annex 7.
Table 13 Definitions and Thresholds for Restricted Tenders
Restricted tender procedure
Definition: tender procedures are restricted whenever, after publication of a contract notice,
all suppliers may ask to participate in the tender, but only candidates satisfying the selection
criteria will be invited simultaneously by the contracting officer to submit a complete tender.
A shortlist of candidates should contain a minimum of FOUR candidates and a maximum of
EIGHT candidates.
There are 2 types of Restricted Tender:
1. Local Restricted Tender: For a local restricted tender, the Expression of Interest notice is
advertised in all appropriate media (newspapers, radio, etc.) in the country in which the
action is carried out, as well as the implementing agency’s website or office.
This procedure should be used in the following cases:
• Goods and services: A local restricted tender procedure must be conducted when
the total purchase value of goods or services exceeds £60,000 but is less than
£150,000.
• Works: A local restricted tender must be conducted when the procurement of works
exceeds £60,000 but less than £2,500,000.
2. International Restricted Tender: In an international restricted tender procedure, the
Expression of Interest notice is advertised through the international media and in the
country of operation, as well as the implementing agency’s website or office
This procedure should be used in the following cases:
• Goods and services: An international restricted tender procedure must be
conducted when the total purchase value of goods, supplies or services exceeds
£150,000.
• Works: An international restricted tender must also be conducted when the
procurement of works exceeds £2,500,000.
14.2 The Restricted Tender Process
As for Open Tenders, the process is conducted as transparently as possible, and all decisions
must be reviewed and clearly justified and documented by an authorised bid evaluation
committee.
However, Restricted Tenders differ to open tenders in the following ways:
• For a restricted tender, a notice for Expressions of Interest is published.
• The submission of Expressions of Interest establishes a long list of potential candidates.
• From this long list, a short list of candidates is identified and the tender dossier is sent
to this short list only.
• The short listed candidates subsequently submit their completed tender dossier.
• The tender dossier is then reviewed in the same way as the open tender procedure.
There is one additional section of activities that has to be conducted for the Restricted
Tender process that is not required by the Open Tender process:
• PART A: PREPARATION – as in Open Tenders;
• PART B: ADVERTISE AND SHORT LIST - added for Restricted Tenders;
• PART C: TENDER DOSSIER AND EVALUATION – modified for Restricted Tender as no
advertising is involved;
14.0 Procurement Procedures: Restricted Tender
75

• PART D: CONTRACTING - as in Open Tenders;
• PART E: DELIVERY, PAYMENT AND CLOSURE - as in Open Tenders.
Templates for all procurement documents for the Restricted Tender procedure, and
examples of key documents, including rejection letters, are available as Annex 7.
14.3 PART A: Preparation
STEP 1a: Prepare detailed specifications
Ensure that the specifications of the item are clear including the quantity, or particular type.
The initiator of the procurement (i.e. the project manager, livelihoods officer or other budget
holder, etc.) should ensure that as much information as possible regarding the item is
provided.
The more accurate the description the more likely the most appropriate and suitable item will
be procured in a timely manner. The detailed specifications are entered in, or attached to,
the Purchase Requisition Form.
For goods and services: information on prices and specifications should be taken from the
budget and can be cross-checked with recent similar purchases if available, or by checking
the local/national market, on websites or other sources of information.
For works: prior to the tendering of a works contract, a Bill of Quantities or design plan will
have been drawn up. Details of this should form the basis of the tender specification.
At this point, identify whether an INTERNATIONAL or LOCAL tender procedure needs to be
conducted using the procurement threshold guidelines above.
STEP 1b: Complete and obtain approval of a Purchase Requisition Form
Once the specification of the goods, service or work is finalised, a purchase requisition form
can be drawn up. This form is used by any project staff to identify, requisition, or initiate, a
purchase. The procurement of office and programme materials is only possible within the
project activities and the approved budget. The Purchase Requisition Form verifies that the
procurement is allowed and is checked by the budget holder. The Purchase Requisition Form
includes details of the items and the required quantity, which budget the items are allocated
to, and an estimated price.
The Purchase Requisition Form is completed by the staff member requesting the purchase,
for example the budget holder, and is reviewed by the procurement staff to either verify the
estimated price or input the actual price, and to check whether the item is available in the
project’s stores as necessary. The budget holder must verify that the request is within the
budget, that there are sufficient funds left in the appropriate budget line, and then approve
the purchase to be implemented by the logistics or procurement staff. Finally, the delegated
authority authorises the purchase, verifying that the need is legitimate and that the
programme has the required funds to cover the purchase. The authorised Purchase
Requisition Form is then returned to the procurement staff member who proceeds with the
purchase.
Without the required approvals, authorisations and checks against the budget, no
procurement should take place.
NOTE: An approved Purchase Requisition Form is the starting point of the actual purchase
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76

14.4 PART B: Advertise and Short List
STEP 2a: Prepare an Expression of Interest notice and advertise (locally or internationally)
Prepare the Expression of Interest (EOI) notice for publication. This Expression of Interest
notice is published to identify a shortlist of potential candidates. The Expression of Interest
provides basic information of what is required and importantly, it provides suppliers with
contact details of who to contact to obtain the Expression of Interest application form.
The Expression of Interest notice must provide the following information for suppliers:
• Contact details for the supplier’s to obtain the EOI application form;
• Reference number of the tender procedure;
• Brief description of the contracting NGO/agency;
• Brief description of the contract and summary of items needed (e.g. 50 houses) and
planned contract start date;
• How and when the completed Expressions of Interest should be submitted.
The Expression of Interest notice must also request the following information from suppliers:
• The name and address of the company responding to the Expression of Interest;
• A signed and completed Expression of Interest application.
An example Expression of Interest notice is available as Table 14. The user must modify all
appropriate sections. Advertise the Expression of Interest notice as widely as possible using
the following guidelines (as per the Open Tender advertising):
1. Local/National Restricted Tender Procedure
Publish the Expression of Interest notice as widely as possible including local and national
media (especially newspapers and where possible, by radio) and at the local or national
CARITAS and CAFOD offices, and the CAFOD website. It is appropriate to notify suppliers of
the Expression of Interest directly.
• The notice should be advertised for a minimum of 14 calendar days.
2. International Restricted Tender Procedure
Publish the Expression of Interest notice as widely as possible. As for local tenders, place the
advert in the local and national media (especially newspapers and where possible, by radio)
and at the local partner office or CAFOD’s/partner’s office and the CAFOD/partner website.
In addition, place the notice in the international media and other sites such as the IAPG
website, and if possible, in specialist journals. If necessary, programme staff can discuss with
HD or PPSS funding teams for assistance in placing the tender notice. It is appropriate to
notify suppliers of the expression of interest directly.
• The notice should be advertised for a minimum of 21 calendar days.
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77

Table 14 Example of an Expression of Interest Notice 13
Tender Ref: XXXX
CALL FOR EXPRESSIONS OF INTEREST
3 x 30KVA, 3-PHASE DIESEL GENERATOR
Caritas Pakistan is a humanitarian organisation and has worked in the field of relief and
development since 1965 throughout Pakistan. Caritas Pakistan Islamabad-Rawalpindi
Diocese has been involved in the response to the October 2005 earthquake in NWFP, Azad
Jammu and Kashmir. Caritas Pakistan, Mansehra, is working in the areas of Livelihoods,
Health, Construction of Basic Health Units and Transitional Shelters. The programmes are
located in the Union Councils of Boi and Dalola in Abbottabad district and in Therian and
Muzafarabad in AJK.
Caritas Pakistan is interested in the purchase of 3 x 30KVA, 3-phase diesel generators. A
restricted international tender procedure is being conducted to identify a suitable supplier.
Interested suppliers are invited to obtain detailed specifications and an Expression of Interest
(EOI) application form from CAFOD, Romero Close, Stockwell Road, London SW9 9TY.
The EOI submissions will be reviewed and evaluated using the set evaluation criteria provided
in the application form.
The deadline for the submission of completed Expressions of Interest is 12pm (GMT), 12 June
2008.
If you have any questions or need further clarification please contact our office at the
address stated above or email name@cafod.org.uk; Tel: +44 (0)20 7095 5231 / Fax: +44 (0)20
7274 9630.
STEP 2b: Distribute the Expression of Interest application pack to interested suppliers
Interested suppliers will request the Expression of Interest application packs as directed on the
Expression of Interest notice. Ensure details of interested suppliers are collected and
recorded.
A small charge (e.g. £10-£20) can be made to suppliers that collect the Expression of Interest
application packs – this can help ensure that the applicants that do submit a bid are serious
about their application. If a charge is made to the suppliers on collection of the dossier, the
money received should be recorded.
Provide the full information pack to each of the suppliers. A template of a complete
Expression of Interest pack is provided in Annex 9. The pack consists of the following items:
‣ DOCUMENT 1: Information for all suppliers – this document provides a complete summary
of how to complete the Expression of Interest dossier and how, and when to submit it.
‣ DOCUMENT 2: Specifications for suppliers – this includes a detailed summary of the item(s)
needed. The specifications must be accurate and detailed to allow the suppliers to
provide a comprehensive cost and service bid. Refer to the specifications drawn up in
Step 1 of this procedure.
‣ DOCUMENT 3: Supplier form – this document must be reviewed, signed and returned by
the applying supplier. The supplier form is attached in Annex 9.
‣ DOCUMENT 4: Supplier Questionnaire: This document provides a standard template for
suppliers to complete with their expression of interest. It is recommended that for an
Expression of Interest, the short version of the supplier questionnaire should be used. This
short version is attached to the template expression of interest pack in Annex 9.
13 This is an example and should be used as a template – the correct information and specifications / contact details should be
inputted as appropriate
14.0 Procurement Procedures: Restricted Tender
78

NOTE: Summary of documents to be provided in Expression of Interest pack
DOCUMENT 1: Information for all suppliers – to be prepared by the procurement officer and
reviewed by the supplier.
DOCUMENT 2: Specification for suppliers – to be prepared by the procurement officer for the
suppliers to review and respond to.
DOCUMENT 3: Supplier form – to be reviewed, signed and returned by the supplier.
DOCUMENT 4: Supplier Questionnaire - to be completed by the supplier.
Templates of each of these documents are available in the manual – as detailed in the text.
Step 2c: Receive and review the Expressions of Interest submission packs from suppliers
Following the deadline, the Expression of Interests must be opened and reviewed by the bid
evaluation committee. Refer to Section 9.5 for more information about the bid evaluation
committee. The aim is to review all the received Expressions of Interest and compile a LONG
LIST from which the bid evaluation committee then selects a SHORTLIST of candidates who
will be sent the full tender dossier.
NOTE: The short list of candidates should contain a minimum of FOUR and a maximum of
EIGHT candidates.
The bid evaluation committee conducts the following activities:
1. Establish a candidate long list: The evaluation committee opens the received Expression
of Interest applications and reviews them to establish a long list that summarises all the
applications received. This meeting confirms that the EOIs have been received within the
deadline, the EOIs were received in goof order, and that all submitted EOIs have been
made available. The EOI opening meeting and long list report must be documented and
participating members must sign the report.
‣ DOCUMENT: A template of the EOI opening and Long List report is found in Annex 7.
2. First selection of candidates: The evaluation committee makes a first selection of
candidates on the grounds of eligibility principles, financial situation, technical and
professional capabilities. The selection must be carried out by applying the selection
criteria specified in the tender notice without any modification. If the number of eligible
candidates meeting the selection criteria is greater than eight, the relative strengths and
weaknesses of the applications of these candidates must be re-examined to identify the
eight best applications for the tender procedure.
3. Prepare the shortlist of candidates: The shortlist of candidates is confirmed. A minimum of
4 and a maximum of 8 candidates can be on the list. The reasons why the short listed
candidates have been chosen, and why others have been rejected or disqualified, must
be clearly documented.
‣ DOCUMENT: A template of the Shortlist Report is found in Annex 7.
4. In the event that the quotes that are returned by suppliers in their Expressions of Interest
are higher than anticipated and go beyond the threshold for a local/national tender
procedure and therefore require an international tender procedure, the procedure must
be reviewed before proceeding. There are two options available:
• The local/national open tender procedure must be stopped and an international
tender procedure must be conducted.
• If necessary, due to the emergency nature of the purchase, a waiver could be
requested to proceed with the local/national open tender procedure.
In addition, having now been made aware of the suppliers who have submitted bids, the
members of the bid evaluation committee must confirm that they have no personal
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79

(including family) links or associations with any of these suppliers by signing a Conflict of
Interest Declaration form – a template is given in Annex 4.
STEP 2d: Inform the unsuccessful applicants that provided the Expression of Interest
Use the standard rejection letter in the templates (Annex 7 – Letter to unsuccessful
candidates).
14.5 PART C: Tender Dossier and Evaluation
STEP 3a: Prepare and distribute the tender dossier to shortlisted suppliers:
1. Tender dossier preparation: The tender dossier should be prepared so that it is ready for
distribution once the short listed suppliers have been selected. The shortlisted suppliers
can either be sent the tender dossier or required to collect it.
There are 8 documents that make up the tender dossier application pack. Unlike the
Expression of Interest application pack, the tender dossier contains a full set of
specifications and requirements. Templates for Documents 1 to 5 can be found in Annex
8 – Tender summary letter.
‣ Document 1: Information for all suppliers – this document includes a letter that provides a
complete summary of how to complete the tender dossier and how, and when to submit
it. It also outlines the tender dossier and what the supplier needs to complete.
Ensure the date, time and location for the submission of tenders is on this form. Ensure that
the date, time and location of the tender opening meeting is on this form. Include clear
details of the proposal submission criteria. For example:
• Submit four hard copies of proposal in sealed double envelopes;
• Write the supplier name, address and tender reference on the envelopes;
• Submit one electronic copy of the proposal on CD or USB;
• Submit to: provide name and address of contact for receipt.
It should be made clear in this letter that tender submissions cannot be considered after
this point and that submissions will be held in a sealed box from receipt until the set
tender opening meeting. See Annex 8 for a template example.
‣ Document 2: Tender Specifications for all suppliers - the tender dossier must be carefully
laid out and attention paid to ensure that the specifications are exactly what are
required. Errors or incomplete information requests at this stage can result in tender
responses being received that are difficult to analyse and result in extensive supplier
negotiations that will challenge the transparency of the process.
The tender specification should include careful consideration of delivery information,
packaging, labelling and transport requirements, costs, dates, and any other special
requirements. See Annex 8 for a template example.
‣ Document 3: Tender Exclusion and Evaluation criteria – this document provides suppliers
with essential information that will be used by the bid evaluation committee to assess
each tender including exclusion terms and suggested evaluation criteria. Ensure that the
correct documentation is requested to support the evaluation criteria that will be used to
appoint a supplier. For example, if financial capacity is part of the key evaluation criteria,
ensure that supporting evidence, such as bank account details, audited accounts, or
most recent audit report, are requested.
If weighted scoring criteria are to be used, these should be added to the exclusion and
evaluation criteria section of the tender dossier pack. For additional information on
scoring and weighting for evaluating tenders, see Section 9.0 of this manual.
See Annex 8 for a template example of this document.
‣ Document 4: Conditions for tendering – these criteria are attached to the summary letter
and are to be reviewed by the applying supplier. The conditions include restrictions and
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80

conditions that will govern the tender process. Examples to include for conditions for
tendering are in Annex 8.
‣ Document 5: Supplier form – this document must be reviewed, signed and returned by the
applying supplier. The supplier form is attached to the summary letter. See Annex 8 for a
template example of this document.
‣ Document 6: Supplier questionnaire - this document provides a standard template for
suppliers to complete with their bid. It allows the suppliers to provide clear information
that can then be compared by the bid evaluation committee when they are considering
all the submitted applications. A supplier questionnaire must be used with all tenders over
£60,000 whether open or restricted tenders. Template supplier questionnaires for
purchases over £60,000 and for smaller purchases (under £60,000) are available as Annex
10.
‣ Document 7: Supplier code of conduct – included in the tender dossier is a code of
conduct for suppliers. All suppliers need to read this document and sign that they agree
with the terms and conditions in the code of conduct. See Annex 17 for the Supplier
Codes of Conduct.
‣ Document 8: Supplier terms and conditions – this document provides the terms and
conditions that will apply on agreement of the contract with the successful supplier. This
document is to be reviewed and signed by the applicant. The terms and conditions
document is attached to the summary letter. This document needs to be amended as
necessary and sections added as appropriate. See Annex 11 for template contract terms
and conditions.
Summary of documents to be provided in the tender dossier
Document 1: Tender Dossier information for all suppliers – to be reviewed by the supplier.
Document 2: Specifications for suppliers – this document includes detailed specifications of
the item(s) required. Suppliers must provide a detailed costing for the items listed.
Document 3: Exclusion and Evaluation criteria (including the scoring system to be used) – to
be reviewed by the supplier.
Document 4: Conditions for tendering – to be reviewed by the supplier.
Document 5: Supplier Form – to be completed, signed and returned by the supplier.
Document 6: Supplier questionnaire - to be completed by the supplier.
Document 7: Supplier Code of Conduct - to be signed and returned by the supplier.
Document 8: Supplier Terms and Conditions (that will apply on agreement of the contract) -
to be reviewed by the supplier.
Templates of each of these documents are available in the manual - as detailed in the text.
2. Briefing meetings: If appropriate, all suppliers can be invited to attend a briefing meeting
with CAFOD or the partner who is conducting the tender. At this meeting, the tender
dossier and competition criteria will be explained.
The briefing meeting can be an opportunity for CAFOD/the partners to provide more
details of the items required and if possible, to show the suppliers samples of the items. All
details of the tender (the closing date, time and location, how bids must be submitted,
etc.) can be confirmed at this meeting. Such briefing meetings are important as they can
help to clarify what is required and ensure that suppliers are clear on the specifications of
the time;
3. Recording the distribution of tender dossiers: Once suppliers have received the tender
dossier, they should be allowed a minimum of 7 calendar days to respond and submit
their bids. A record should be kept of which suppliers collected or requested a tender
dossier.
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STEP 3b: Receive the completed tender dossiers from suppliers
• All tender responses from suppliers must be received in double, sealed envelopes;
• The name and address of the supplier and the tender reference number should be
clearly marked on the outside of the envelope;
• A record should be kept of all bids received, from who and when. All bids must be
deposited in a secure box until the bid opening meeting;
• Any late bids, i.e. those received after the submission deadline, should be returned to the
supplier unopened.
STEP 3c: Hold a tender/bid opening meeting
There are 2 steps in the evaluation of the tenders received by the bid evaluation committee.
• Firstly, the tender opening meeting ensures general compliance of the tenders with the
stated evaluation criteria;
• Secondly, the committee conducts a bid evaluation including a thorough review and
evaluation of the tenders in order to appoint a successful supplier. (There will often be
more than one bid evaluation meeting conducted depending on the complexity of the
purchase and decision.) Refer to Section 9.5 for more information about the bid
evaluation committee.
Both of these meetings require the completion of a meeting report that clearly documents
and justifies all decisions made. All meeting reports must be signed by all participating
members of the bid committee.
A bid evaluation committee must conduct both the tender opening meeting and the tender
evaluation meeting(s). The members must include a chairperson and a secretary plus one
other voting member. The budget holder can be a member of the bid evaluation
committee. Technical experts or advisors can be invited to participate in the bid evaluation
committee to provide additional advice. The procurement staff can attend bid evaluation
meetings to provide technical and procurement clarification as well as to introduce the
tendering process and documents, but they should not be voting members. This ensures the
proper segregation of duties and allows an independent assessment of bids and
recommendation of actions.
‣ DOCUMENT 1: Tender opening meeting report:
Once the closing date for the receipt of tenders has passed, the appointed bid evaluation
committee must formally open the bids. The suppliers that have submitted bids can be
invited to attend the bid opening meeting but none of the following discussions regarding
the detail of the bids. The tender opening meeting must be documented and minutes taken
using the tender opening meeting report. The bid or tender opening meeting report consists
of 3 sections:
• SECTION 1: Tender opening session information: This section provides information for the
tender opening meeting itself and a checklist of items that need to be reviewed and
actions that must be conducted during the tender opening meeting. Any minutes or
additional action points should be recorded and each item marked as completed or
discussed.
• SECTION 2: Tender initial evaluation and assessment format: In the tender opening report,
each supplier must be assessed and their bid evaluated for administrative and technical
compliance. In each section, record whether the supplier fulfilled the criteria, whether
the information was incomplete or whether and why any supplier is disqualified. Any
additional notes regarding each section should be documented in the “notes and
remarks” spaces against each point.
• SECTION 3: Bid opening meeting summary: This section summarises the suppliers who
have been found to be non-compliant and states the reasons for non-compliance,
whether suppliers submitted a bid that had documents missing, those that withdrew their
tenders, and whether any clarification is needed, and who is responsible for following up
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for this clarification. Any notes or additional remarks and minutes must be documented
here.
In the event that the quotes that are returned by suppliers in their Expressions of Interest are
higher than anticipated and go beyond the threshold for a local/national tender procedure
and therefore require an international tender procedure, the procedure must be reviewed
before proceeding. There are two options available:
• The local/national open tender procedure must be stopped and an international
tender procedure must be conducted.
• If necessary, due to the emergency nature of the purchase, a waiver could be
requested to proceed with the local/national open tender procedure.
At the end of the meeting all participating members must sign and date the completed
tender opening report. The tender opening meeting report should be reviewed at the bid
evaluation committee meeting and should then be attached to the final, signed bid
committee evaluation report that confirms the successful supplier(s).
STEP 3d: Hold bid evaluation committee meeting(s), seek supplier clarification, and select
supplier(s)
Once any non-compliant tenders have been removed during the tender opening meeting,
the process of tender evaluation and supplier appointment can be conducted. To facilitate
the tender evaluation for the bid committee meeting, the procurement staff member needs
to provide the committee members with key documentation prior to the evaluation meeting:
‣ DOCUMENT 2: Bid matrix of all the submitted tenders:
Following the opening of the tenders at the tender opening meeting, the procurement staff
member who is leading on the procurement should complete the bid matrix and include all
the details provided by the suppliers. This officer does NOT make a recommendation but
attends the bid evaluation committee to provide any clarification needed. If possible, the
procurement staff member should provide the committee members with all tender related
documentation at least 3 working days prior to the meeting. The committee members should
ensure that they have reviewed the documentation prior to the meeting.
The bid evaluation committee members should have the following key documentation prior
to the evaluation committee meeting:
• Copies of all submitted supplier bids that have been deemed as compliant in the
tender opening meeting.
• Copy of the tender opening report.
• Copy of the prepared bid matrix.
• Copy of the blank bid evaluation committee report.
‣ DOCUMENT 3: Bid Evaluation Committee Report:
The Bid Evaluation Committee should appoint a secretary and complete each section of the
tender committee evaluation report. All members must sign the impartiality and conflict
declaration at the top of the committee report. The report should consist of a detailed report
of each step that was conducted and each decision made and include 14 :
1. Preparatory Session: The chairman and the secretary have checked the documents for
proper approval by all members and any observers. The Chairman informed the
members of the scope of the proposed contract, identified the organisations responsible
for preparing the tender dossier, and summarised the essential features of the tender
procedure to date. (This session is not essential but may be required to update
committee members);
14 Usually more than one bid evaluation meeting will be required before a final decision is made. Therefore a bid evaluation
committee report should be completed in this way for EACH bid evaluation committee that is conducted.
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2. Tender Opening Session: The tender opening report is attached to this report. The
evaluation committee only considers those tenders which were found to be suitable for
further consideration and evaluation following the tender opening session;
3. Part 1 – Conflict of interest Declaration: Include a copy of the signed conflict of interest
declaration form to confirm that all the bid evaluation committee members have
declared any conflict of interest with any of the suppliers or their representatives;
4. Part 2 – Choice of procedure: Identify which particular procurement procedure was
chosen and why (include total price of award/budget) – this can include specific donor
compliance, notes on any waivers received and approved, cost limits, or other reasons.
The particular procedure needs to be identified. The reasons why this particular
procedure has been conducted must be clearly stated;
• Open or Restricted
• Local or International
• Waivers confirmed
• Part 3 – Publication of the tender notice: Include information on when, where and how
the tender notice was advertised. Whether the notice is advertised locally (nationally) or
internationally is determined by the value of the total purchase. Ensure copies of the
published tender notice are retained including the image of any website adverts.
• Part 4 - Scoring system used for bid evaluation (if any): Identify the scoring system that
was used to score each of the suppliers’ applications bids against each of the agreed
compliance criteria for the tender. Scoring, together with criteria weighting (if used),
allows a clear decision to be made on the basis of total marks. The evaluation of the bids
should consider the following sections;
• Administrative capacity and compliance: Check the suppliers have submitted the
tender according to instructions and essential requirements of the tender dossier (see
criteria on the evaluation report format and the summary bid opening report)
• Technical capacity and compliance: Check that the supplier meets the essential
technical requirements of the tender dossier
• Financial capacity and compliance: Do any of the tenders appear to be abnormally
low in relation to the market for the supplies in question Have the tenders been
recalculated to ensure that they add up correctly
• Logistics capacity and compliance: Check that the supplier has the appropriate
logistics capacity to support and complete the purchase – including warehousing,
transportation, stocks, and subcontracting
• Organisational strategy management and quality: Consider how the supplier will
manage the additional project if they win the tender; are their management systems
suitable for managing the proposed purchase
• Ethical and environmental standards: Do they have a code of conduct; do they
demonstrate their compliance with health and safety or environmental concerns
(packaging, recycling, etc.)
• Additional considerations: Do they provide any additional information that can be
considered eligible and relevant; have they provided references and client lists
5. Part 5 – Summary of the evaluation: using the scoring system identified, and ensuring any
bid calculations are correct, summarise the final tenders for each supplier – the average
score should be calculated from each sub-total from the categories described above;
6. Part 6 – Final ranking of tenders: Having excluded non-compliant tenders and double
checked that the calculations and scores for the bids are correct, rank the final tenders
in order of total scores. If no scoring system is used the tendered are ranked in order of
the price of their corrected bids.
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7. Part 7 – Conclusion: Confirm which supplier(s) has (have) been chosen and why. Ensure a
second supplier is identified which can be used in the event of the first choice supplier
not being available/willing to accept the procurement. This section must include minutes
of any follow-up actions that are required and a delegate appointed to complete the
actions. If the committee needs to be reconvened to review additional information, the
time, date and location of the next meeting must be confirmed as well as actions to be
completed;
8. Part 8 – Signatures of all committee members: All members of the committee must sign
and date the report. This needs to be done again if the committee is reconvened to
consider extra information.
NOTE: Procurement can be distributed between more than one of the bidding suppliers.
Ensure clear justifications and document which supplier was chosen for which items and why.
The completed and signed bid evaluation committee form should provide a clear
justification and report for how and why the decisions have been made. The bid opening
meeting report should be attached to the final bid committee evaluation report.
NOTE: Summary of documents for the tender evaluation process
DOCUMENT 1: Bid opening report – including minutes and summary of decisions.
DOCUMENT 2: Bid matrix – including a summary of information of all bids received.
DOCUMENT 3: Bid evaluation committee report – including minutes, signed conflict of interest
declaration forms and summary of decisions.
Templates of each of these documents are available in Annex 7.
14.6 PART D: Contracting
STEP 4a: Sign the Contract with the successful supplier
‣ DOCUMENT 1: Once a supplier has been chosen, use the information from the bid matrix
and all tender documentation to prepare a Contract. The signed version of the Contract
is the confirmation of the order to the chosen supplier(s). [Note: a Contract would be the
usual approach for Restricted Tender, although a Purchase Order with standard terms
and conditions might be appropriate for a simple procurement.] Section 25.0
“Contractual Conditions” provides details of the contract approach to placing an order
with a supplier. Annex 11c provides a contract template.
STEP 4b: Inform the unsuccessful suppliers
‣ DOCUMENT 2: Rejection letter: Inform the unsuccessful suppliers that submitted a bid that
their tender was unsuccessful. This is important to encourage suppliers to continue to bid
in future tender processes.
‣
STEP 4c: Publicly confirm the contract using an Award Notice
‣ DOCUMENT 3: Award Notice: Once the contract is signed with the successful supplier,
CAFOD must publicly state which suppliers they have used for every contract over
£60,000. This public statement is called an Award Notice and should be posted on the
CAFOD or the partner’s website.
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Table 15 Example of an Award Notice
Description of
contract
Reference
number (i.e.
tender notice ref)
Name and address
of successful
supplier
Value of
contract (£s)
Dates of contract
Supplies for 3
basic health units
Pakistan reference
No.
Mr. Mazhar Iqbal,
Marhaba Trading
Corporation, 3rd
Gate, Ayub Medical
Complex, Abbottabad
41,921 1 March – 30 June
2008
Construction of 3
basic health units
Pakistan reference
No.
Zain Ul Abdeen,,
Jinnah Avenue, Blue
Area, Islamabad
898,312 7 April 2007 – 6 April
2008
NOTE: Summary of documents for the contracting process
DOCUMENT 1: Purchase Order.
DOCUMENT 2: Supplier Contract - Terms and Conditions.
DOCUMENT 3: Rejection letter.
DOCUMENT 4: Award Notice.
Templates of each of these documents are available in the manual
14.7 PART E: Delivery, Payment and Closure
STEP 5: Delivery and receipt of goods. Completion of a Goods Received Note
Signing the contract is not the end of the process for the project! The transportation, delivery,
storage and distribution of goods must be carefully managed. Use the user guides in Sections
16.0 and 19.0 of this manual and the logistics and delivery form templates in Annex 12 for the
implementation of the delivery and receipt of goods.
STEP 6: Preparation and approval of a payment requisition
Use the user guide in Section 21.0 of this manual and the payment form templates in Annex
15 for the payment requisition.
STEP 7: File the completed tender report ensuring correct documentation, signatures and
approvals
Ensure all documentation related to the restricted tender is filed together including the
tender documentation from the unsuccessful suppliers. This is important for subsequent audits
or reviews. Use the Restricted Tender procurement file card (Annex 7) as a checklist to ensure
all documentation is present. Details of supporting documentation and filing that is required
are available in Section 21.0 of this manual.
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15.0 REPEAT PURCHASES: FRAMEWORK AGREEMENTS
Framework agreements can be established for the repeat or regular purchases of goods or a
service. A framework agreement allows for the purchase of the same goods or services from
the same supplier over a period of time and on a regular basis when it is not clear exactly
how much might be needed or when (for example air freight suppliers, transportation firms,
emergency food). This process avoids repeating procurement procedures and
documentation, improves efficiency and builds good working relationships with suppliers as it
prevents sending repeated requests for quotations and some suppliers submitting quotes but
not receiving any orders.
A framework agreement allows CAFOD or local partner to purchase goods/services at an
agreed price for the duration of the agreement from the selected supplier. CAFOD/partner
only then needs to send a purchase order based on the fixed prices and services agreed in
the framework agreement.
This can be used for the provision of goods or the provision of a service, including
procurement services.
15.1 How to set up a Framework Agreement
• Identify the service/goods that could be purchased under a framework agreement. As a
guide this could be goods/service that is ordered every 2 months (for example stationary,
vehicle spare parts, fuel).
• How long should the agreement cover This should be a maximum of one year (and
should include a consideration of possible inflation rates, the local market and how long
suppliers would hold their prices for.
• What is the estimated amount required Ensure suppliers are aware that this is an
estimate.
• Having identified the estimated amount, apply the correct purchasing procedure
(negotiated procedure or tender procedure depending on estimated value of the
agreement).
• Draw up a contract with the appointed supplier. Use the contract template in the tender
in Annex 11.
• Draw up a Purchase Order each time this goods/ service is required. The Purchase Order
should be based upon the terms and conditions agreed in the framework agreement
contract: use the Purchase Order terms and conditions in Annex 11.
• Each individual Purchase Order must include the details/reference number of the
relevant framework agreement.
The Framework Agreement allows an estimated quantity of goods/services to be procured
when the actual amounts and periods are not specified.
15.2 Restrictions to a Framework Agreement
• Framework agreements can only cover a maximum of 1 year – after which the contract
should either be renewed or re-negotiated;
• Framework agreements are most appropriate for air freight, transportation, vehicles,
medicines, generators, communications and IT equipment and, on occasion,
consultants;
• Guidance should be sought from the project manager or CAFOD’s HD or PPSS funding
team before entering a framework agreement.
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15.3 Extending or renewing existing contracts and purchase orders
If necessary, contracts or purchase orders can be extended or renewed with a
contractor/supplier. For example, a contract can be extended to incorporate additional
services, works, goods or supplies that were not included in the original contract. The
extension or renewal of the contract/purchase order can be done on the following
conditions:
a) Provided that the aggregate value of the additional supplies/works/services does
not exceed 50% of the value of the original contract.
b) Provided that the terms of the original contract and the status of the supplier 15
have not been substantially altered;
c) Provided that the original contract was appointed following the correct
procurement procedure for the original purchase;
d) Provided that the period elapsed between the award of the first contract and the
renewal is not more than ONE YEAR; and
e) Provided that a contract has not been renewed more than TWICE.
Example of extending an existing purchase contract
An open tender was conducted to appoint a supplier for the purchase of £150,000 worth
of food for a vulnerable group feeding programme in Zimbabwe. The food was
purchased from a single supplier. The programme had an under-spend near the end of
the grant. The programme used the balance of funds to buy additional food from the
same supplier.
The programme extended the existing contract with the original supplier to include extra
food. The additional purchase of the food was:
• £60,000 therefore less than 50% of the original purchase order;
• the extension was within a one year period of the original purchase order;
• a fully transparent open tender process was conducted to appoint the contractor
initially;
• the process was clearly documented to prove what had been done, why, and
how.
15 For example the company ownership has not changed or there has been no material change to the company.
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88

16.0 TRANSPORTATION AND DELIVERY
16.1 Transportation and Delivery Procedures
Once the Purchase Order (or Contract) has been agreed with the supplier and the
documentation has been signed by both parties, the goods or supplies must be delivered,
distributed or warehoused as appropriate. The delivery and distribution of goods must be
managed carefully to ensure that items are not lost, damaged or go missing.
There are two possible options for delivery once the supplier has been appointed:
• Option 1: The supplier DOES include transport and delivery on their quote and purchase
order/contract. In this case, the purchase order/contract must include clear details of
the delivery locations, dates and times, and quantities for each delivery (if necessary). All
items should be inspected by CAFOD/partner staff on the arrival of each load of goods,
and at each distribution to ensure that the Goods Received Note and the Supplier’s
delivery note is the same as the purchase order/contract. THIS IS THE PREFERRED OPTION.
During unloading, sample goods should be weighed and measured (at a minimum, 5% of
total goods delivery should be examined as samples, although good practice would
recommend more than 5% is reviewed).
• Option 2: Although Option 1 is the preferred option, in some cases, the supplier DOES NOT
include transport or delivery on their quote and purchase order. This represents the
minimum obligation for the supplier and is known as “ex-works” or “EXW”. The contract
with the supplier must clearly state that the contract is an ex-works contract. The contract
must also clearly define the supplier’s and the purchaser’s (CAFOD or the partner)
obligations to avoid misunderstandings and subsequent delays.
In an ex-works purchase, a separate process for quotes and supplier identification needs
to be conducted for the appointment of a transport supplier(s). This can include the
hiring of trucks, driver(s) and may include labourers for loading and unloading.
The agreed purchase order for transportation must clearly state delivery locations, dates
and times, and quantities for each delivery. EACH truck should have a CAFOD/local
partner waybill even if the supplier provides their own waybills.
All waybills or supplier’s delivery notes must be signed by CAFOD/partner staff present at the
loading of the goods, and a waybill signed by the driver (carrier) and by the CAFOD/partner
staff present at the unloading of the goods at either the final destination or the warehouse.
16.2 Transportation and Delivery Documentation
Templates of all documents described below are available in Annex 12 of this manual. This
section provides notes on the documentation needed for the transportation and distribution
of goods to project sites and the storage of goods and supplies by CAFOD or partners.
1. Goods Request Voucher:
The Goods Request Voucher allows programme staff to request project materials from the
store allowing store staff to prepare and document the goods that the programme staff
need for project activities. To receive goods from the store, the programme officer or staff
member completes a Goods Request Voucher to release the goods for transport to the final
project destination.
The procurement staff who manage stores and warehousing, or specific warehousing/stores
staff should process the Goods Request Voucher, including planning the delivery and
transportation of the goods, and record this information on the Goods Request Voucher.
The procurement staff must also prepare a Waybill to accompany the goods for
transportation. The Goods Request Voucher must be prepared by the procurement staff (or
warehousing and stores staff if available) but should be approved by the delegated
procurement or logistics staff manager.
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89

A copy of the Goods Request Voucher must be returned to the project staff to inform them
of the delivery schedule of the project goods.
2. Waybills:
A waybill needs to accompany any goods or supplies that are being moved from the
supplier to the warehouse, from the warehouse to the project location, or from the supplier to
the project location. The waybill is an essential stores tracking document.
• Waybills are used to record all items leaving the store/warehouse and are used to
support stock taking by stores management staff;
• A unique waybill coding system will help to ensure there is no duplication of
documentation;
• If items are being moved in more than one truck, each truck should have a duly
completed accompanying waybill including truck driver and vehicle details;
• Every truck driver must sign the waybill on departure from the warehouse – this transfers
authority of the goods to them;
• On arrival at the destination, the recipient must check the received items against the
waybill. Any missing or damaged items must be recorded on the waybill;
• If the goods are in sealed containers, the waybill should be marked clearly as unchecked
and unseen;
There should be 4 signed copies of each waybill.
• The original –The dispatching/issuing staff must sign that they have issued the goods to
the transporter. The issuing staff should retain one copy of the waybill.
• The transporter’s – The transporter/carrier signs the waybill confirming their receipt and
transportation of the goods. The transporter should retain one copy of the waybill.
• The receiver’s – The recipient must sign to confirm the receipt of the goods and any
observations (i.e. losses and damages). The recipient should retain one copy of the
waybill.
• The returned original – This includes all three signatures (issuers, transporters and receivers)
and should be returned to the stores for filing.
NOTE: No goods or supplies should move without a written waybill
3. Goods Received Note:
The Goods Received Note needs to be completed by the end recipient of all the goods to
confirm the receipt of all items in good order and on time. Any damaged or faulty items
should be returned and marked on the Goods Received Note.
Final payment should only be released when all goods from the Purchase Order are
documented clearly as received on the Goods Received Note and Waybill and both
documents are correctly completed and signed.
• A Goods Received Note can be used if there is no documentation in the warehouse;
• A Goods Received Note should be used for each truck(load) received if there was no
accompanying waybill;
• The Goods Received Note should include all details of the vehicle, driver (carrier) and
goods received;
• Ensure the driver (carrier) signs the Goods Received Note and maintains a copy.
The Goods Received Note is also used by the recipients of the items, for example the local
partner or local authorities on receipt of items in good order prior to releasing payments to
the suppliers.
Templates of all these documents are available in Annex 12 of this manual.
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17.0 INSPECTION AND RECEIPT OF GOODS
17.1 When to inspect goods and supplies
Before signing the Goods Received Note or accompanying waybill, the receiving officer(s)
must carefully inspect all goods and supplies as they are delivered by the supplier or
transporter.
Inspections can take place at various stages of the transportation, storage, receipt and
distribution process:
• Loading at the supplier’s warehouses or stores to distribution trucks
• Off-loading from the trucks to interim warehouses or stores
• Off-loading from the trucks to the final destination or distribution site
17.2 How to inspect goods and supplies
Whether the supplier or a separate contractor provides the transport, all deliveries must be
inspected on receipt. A fully comprehensive list cannot be compiled due to the wide range
of different contexts, types of goods supplies, and local staff capacity; however, a general
checklist of things to look out for is provided for reference. This section should be read in
conjunction with section 18.5 Specific Stock Information, which provides important guidance
on minimum standards of storage for fuel, food, medicines and pharmaceuticals.
The inspection process is extremely important as accepting below standard or sub-quality
items can lead to serious problems when they are used by the beneficiaries.
Staff accepting receipt of goods should be suitably qualified to conduct the inspection, for
example, they are able to compare good stocks with poor stocks or if necessary are
specially qualified (a medic or nutritionist for example).
17.3 Acceptance sampling and inspection of goods
With large deliveries, it is not possible to check every bag, sack or box of items. Therefore, a
small sample of the items should be inspected. A simple calculation can help estimate how
many items from the whole delivery must be checked:
How many bags/cartons to sample in a delivery inspection:
Number of units (Lots)
Number of unit to inspect
From 0 to 10
All the bags/cartons
From 11 to 100 11
Above 100
Square root of the number
For example: The storekeeper receives a delivery of 20 MT of grain in 25 KG bags.
Calculation: 20 000 / 25 = 800 bags (primary units) √ 800 = 28.28… Therefore, the storekeeper
will inspect 29 bags chosen randomly (making sure bags are taken from the middle, front,
back, top and bottom of the piles in the truck).
Once the sample size has been established, the goods should be thoroughly inspected.
During the inspection, consider the following guidelines:
• Specifications; are the items and quantities as per the purchase request or the
waybill Is someone who is appropriately technically qualified required to confirm
that the goods are what was ordered and expected
• Expiry dates; are all the items well within their expiry dates – consider this particularly
for food, medicines and seeds. If the expiry dates are imminent, will the items be used
in time
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91

• Temperature and moisture content; Food, for example, should be kept below 40 o C
(some foods stuffs may require even cooler temperatures); drugs should often be
kept in cold storage. Simple moisture readers are available for purchase, which
measure the moisture content of cereals, flours and other grains.
• Weights and measures; conducting a random sample of weights or measures of
delivered items can give an approximate understanding that the correct amount has
been received for items such as cement, sand or food.
• Packaging and damage: inspect the goods for signs (and smells) of damage to the
items or to the packaging – can you see damp patches, mould or other possible
contaminants Is the truck excessively hot or cold Are any seals or packages
damaged or broken If so, does this affect the integrity of the item or suggest that
items have been tampered with These considerations are particularly important for
items such as cement, food or medicines.
• Storage and delivery: inspect the waybill to review the time the items have taken to
be delivered, for example, have they been significantly delayed, and would this have
an effect on the integrity or quality of the items Consider whether the transportation
provided by the supplier was appropriate to requirements; for example, cold storage
for drugs, dry and clean for food and seeds, damp proof for cement
• “Organoleptic” inspection: this testing involves inspection through visual examination,
feeling and smelling of products. For example, if inspecting food, consider:
– Sight: product colour, homogeneity and characteristics, presence of unknown
items, living or dead insects, larvae, moulds, if tins of food are distorted or
“puffy”
– Smell: characteristic product smell, or without smell, musty smell, rancid smell
or a strange odour
– Texture: humidity, fluidity for the flours, presence of lumps
– Taste: flavour, bitterness, sourness, aftertaste
– Sound: presence of insects inside bags
17.4 Accepting or rejecting inspected goods
The point of inspecting goods on delivery is to confirm the quality and quantity of the goods
prior to accepting them. There may be a difference between the theoretical or expected
weights or quality of the goods and the actual or real weights or quality of the goods
received.
For example, food bags that have been sampled are underweight – averaging 48kg per
bag instead of the expected 50kg per bag. This “under-scooping” can be due to:
• Fraud of the manufacturer
• Losses due to poor packaging
• Pilferage by the warehouse employees or packers
• Or naturally because grain has dried out in transit
If, following a sample process, the real or actual weight is different to the expected or
theoretical weight, the price paid to the supplier should be based on real or actual weight
rather than the theoretical, or expected weight.
The proportional reduction of price against samples taken must be defined in the contract
that is signed by the supplier. Beyond a certain threshold the rejection of the entire delivery
should be an option.
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17.5 When receiving goods
During the receipt of goods, items that have been inspected or accepted can be damaged
through careless handling or insufficient preparation. To avoid costly losses or damages
consider the following:
Preparation for the delivery: storekeepers must ensure that the site for the receipt of the
goods is well prepared.
– are sufficient daily labours available for loading/off-loading,
– are there sufficient pallets in the warehouses,
– is their sufficient space for the expected delivery,
– are the facilities in place to conduct sufficient inspection processes (including
time and resources)
During off-loading and receipt of delivery: The conditions for the delivery must be well
managed, as inappropriate handling or inappropriate conditions can damage the goods:
- Hooks and cranes can damage the packaging especially of paper, sack or
plastic food bags and can result in contamination of the contents
- Throwing the items can also damage the bags and can result in
contamination of the contents
- Rain can weaken the paper packaging and can result in contamination of
the contents
- Dirty scoops when decanting grains, seeds or other goods can contaminate
the products
Go to Section 19.0 Stores Management and Warehousing for minimum standards on stores
and warehousing once goods have been received.
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18.0 DISTRIBUTIONS AND DONATIONS
During a project, or at the closure of a project, items are often either distributed or donated
to beneficiaries. In asset and project management both distributions and donations must be
correctly managed and documented. The following section identities the differences
between a distribution and a donation and how they should be documented.
18.1 Distributions
“Distributions” are when the recipient of the items is the ultimate individual beneficiary. A
distribution usually involves a large number of individuals or individual households that
receive the same or similar items, usually of a relatively low value. For example:
• Livelihood and small business assets are distributed to individuals;
• Food and NFI kits are distributed to individuals;
• Voucher distributions for livelihood or other assets that are given to individuals;
1. Distribution Forms or Distribution Lists
During a distribution, a distribution form should be used that clearly documents which
beneficiary has received what. The beneficiary should sign to confirm receipt.
These forms are particularly useful when large scale distributions are being conducted to a
large number of beneficiaries as they help to ensure that what was dispatched was then
distributed and received by the target beneficiaries.
A template Distribution Form is available as Annex 13 of this manual. Information required for
this form includes:
• Beneficiary name;
• Goods received (including amount if appropriate);
• Date received;
• Signature of recipient;
• Name and signature of the staff member responsible for the distribution;
Distribution forms should be attached as supporting documentation to the financial reporting
for a project and are important as part of the supporting documentation for the project and
therefore must be filed appropriately.
18.2 Donations
“Donations” are distinct from distributions in that donations usually consist of higher value
items being given or donated to a single partner, or organisation rather than individual
beneficiaries or families. Examples of a donation include:
• Equipment and supplies donated to health centres, schools or community centres;
• Office equipment, assets or furniture donated to a local partner.
Donations such as these should be documented using a donation certificate. There are a
number of things to consider prior to the donation of goods, assets or other equipment.
2. Who is eligible to receive donations
Items can be donated to the following:
• The final recipients/beneficiaries of the project;
• The local partners, implementing partners, or local NGOs;
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• The local authorities that are participating in the implementation of the project (e.g. local
hospitals or schools);
• In exceptional cases, other international NGOs 16 .
Items CANNOT be given to any of the following:
• Subcontractors or commercial organisations;
• Individuals who are not final recipients of the project;
• Expatriate or local staff employed by CAFOD or the implementing partner;
NOTE: in all circumstances, the law of the country of operation must be considered. In some
countries, project assets automatically become the property of the government at the end
of the project.
18.3 How to Document Donations
1. Donor requirements
Different donors have different regulations regarding donations of goods, therefore project
and implementation staff must crosscheck with HD or PPSS funding teams to ensure
compliance with specific donor requirements. For example:
• DFID – If individual items are worth over £1,000 when purchased, they cannot be
donated but must be returned to DFID;
• ECHO – CAFOD’s status with ECHO allows CAFOD to identify suitable donation or disposal
regulations.
2. CAFOD minimum standards
Other than specific institutionally funded and regulated projects, CAFOD’s minimum
standard for documenting donations is as follows:
Donated items should be of reasonable quality and in working order. They should also be
appropriate for the intended recipient. The recipient should agree to the donation and the
terms and conditions attached to the donation.
Therefore, when donating items, a donation letter or donation certificate should be prepared
by CAFOD or the implementing partner, and both the donating agency and the recipient of
the donation should sign the donation letter/certificate.
The purpose of the donation letter/certificate is to lay down the terms and conditions of the
donation. On the donation letter/certificate, clearly identify the following information:
• The donating agency
• The recipient
• The item(s) being donated (if there is a large number of items, a list can be attached
to the donation certificate)
• The purchase value of the donated items
• The date of the donation
• The project(s) that paid for the item(s)
16 This should be an exception and should only occur if the decision is taken on the basis of operational considerations and is
free of any conflict of interest, and that the international NGO can guarantee that the equipment is used to the benefit of the
final recipients of the humanitarian aid.
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When writing the terms and conditions of donations on the donation certificate or letter,
consider the following:
• Ensure there is a clear statement of the intended use of the donated equipment.
Does the donating agency require access to verify the use of the equipment
• What are the circumstances under which the equipment may be sold Should the
recipient obtain permission from the donating agency to sell the donated items
• Should the donated equipment be identified in the recipient’s inventory
• Does the donation include support for running and/or maintenance costs of the
equipment If so, what costs are included and for what period of time
• Will the donating agency expect reports/updates or to conduct monitoring visits to
check the use of the equipment is as per the terms and conditions
• If the recipient agency defaults on any of these terms and conditions, what does the
donating agency expect to do (have the items returned or an agreed value repaid)
• How long will these conditions be relevant (bear in mind the life of the items, the
capacity of the donating agency to monitor the recipient, the life of the project
etc.)
• The template for a donation certificate can be found in Annex 13 of this manual;
• Copies of the signed donation certificates should be attached as supporting
documentation to project activities and financial transactions.
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19.0 STORES MANAGEMENT AND WAREHOUSING
19.1 General
The Head of Logistics (or other delegated staff member) is responsible for ensuring that all
incoming and outgoing materials that are stored in the CAFOD/partner stores are correctly
recorded.
19.2 Stock Documents
For transparency and stock monitoring purposes all movements of programme materials
should be accompanied by:
• Goods Received Note;
• Waybills.
As described in Section 16.0 Transportation and Delivery, these documents record the
movement of all items and allow the store management staff to monitor and control the
movement of all stocks, identify which staff are responsible for the items at different stages of
the dispatch, transport and receipt (for example drivers, project staff and suppliers). The
documents also confirm that stocks have been correctly dispatched and received. As such,
the monitoring of these documents and regular stock taking against the documentation is
essential as these documents are the primary means of identifying missing or damaged
goods.
These documents have a fixed procedure for submission, verification and approval.
Deviations from the procedures by the logistician(s) are not allowed.
19.3 Storage Facilities
CAFOD/partner should identify appropriate storage facilities considering the type of items
being stored, location and security. Also consider the following:
• Proper fencing and locks on the entrances;
• Engaging security guards and/or professional security services;
• Pallets;
• Ventilation/temperature control – especially if medicines are involved;
• Hygiene;
• Fumigation of facilities before food or drugs are stored;
• Food items need a separate store;
• Sufficient fire extinguishers in the store;
• High value stock should be well protected against theft - ensure appropriate insurance is
in place.
Materials arriving at the store must be checked to confirm quantity, any damages, and to
check that the appropriate supporting documentation is included.
Every day the appointed warehouse manager must process all incoming and outgoing
goods. It is recommended that a maximum of two staff members be appointed to monitor
and register the incoming and outgoing movements.
Although large quantities of bulk purchases can reduce the overall cost, this can increase
the likelihood of theft. It is therefore recommended that, where possible, procurement of
items is spread over a period of time to minimise the amount of goods stored. For example,
food/grain supplier(s) Purchase Orders should consist of a number of deliveries from the
supplier(s).
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19.4 Stores Management
The logistician/procurement staff must keep records of all assets. These can be broadly
categorised into:
• Consumables for beneficiaries (food, NFI kits or other items to be distributed, such as
tools);
• Consumables for running the programme (such as construction materials, tools, vehicle
spare parts);
• Programme assets and office equipment (e.g. laptops, radios, computers, satellite
phones, etc.) – these items are often managed by the administration manager or the
logisticians.
Consumables for beneficiaries and for programme implementation that are being
transported, stored, and delivered must always be accompanied by supporting documents.
Specific supporting documents track the movement of all items to ensure that they are
accounted for, from delivery to the stores until their final delivery or distribution/donation to
the end user. The key store management documents that support the movement and
storage of assets are:
• Goods Received Note;
• Goods Request Voucher;
• Waybill;
• Distribution lists;
• Donation certificates.
These documents need to be filled in, completed with unique numbers, and processed on a
daily/regular basis.
A complete stock take of each store should be conducted on a monthly basis. A stock take
will identify any items that are damaged, lost or not correctly documented or that will soon
expire. Stocktaking should be carefully documented to ensure that stock records are
accurate and complete. Any losses, theft or damages should be recorded and reported.
19.5 Specific Stock Information
1. Medicines and Pharmaceuticals
For health programmes with medicine distribution activities, medical supplies are often
procured in large quantities and drug distribution is often spread over several months and
different distributions. It is therefore recommended that the purchase of these drugs is
conducted through a medical logistics firm or medical Humanitarian Procurement Centre
such as Begeca, Asrames, MSF Logistique, IDA, and CHMP 17 .
These firms are able to ensure that supplies are:
• Legal (not fake);
• The right drugs;
• In date;
• Appropriately managed;
• Properly transported;
• Correctly stored;
• Warehoused under a first-in first-out system;
17 See Section 23.0 Subcontracting for a list of suitable medical logistics firms that could be used.
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• Of the right quality to provide good value for money.
Using professional medical firms avoids a number of risks including:
• Disposal of expired medicines can be extremely expensive and there are (strict) rules for
destruction. Ignoring the rules can have serious consequences for the organization
(including imprisonment and high fines);
• The use of expired medicines can be dangerous - careful storage, transportation and
administration is required to ensure that drug supplies are not damaged or lost.
Damaged medicines can be dangerous, and medicines can often be stolen and sold in
local markets.
It is highly recommended that for medical programmes, all drugs are procured through
approved medical Humanitarian Procurement Centres. It is recommended good practice
that all medical and drugs procurement for all CAFOD-supported programmes use one of
these suppliers.
In addition, to avoid damage or loss of drugs and medical supplies, a specific, well
managed, administration system must be established to monitor and track all drug and
medical supplies – whether they are being distributed, transported or stored. Each article
should have an inventory card mentioning the date of procurement, number of items in and
out of stores and warehouses, expiry date and minimum stock (for timely ordering).
Alternatively a software-based inventory system could be used.
For stock management of medicines it is important to:
• Keep a good record of the quantity and expiry date of all medicines in storage;
• Store drugs on pallets to ensure they do not get wet or damaged;
• Check how drugs should be stored – for example temperature and light control.
2. Construction Materials
• Cement: Always keep cement on pallets and don’t pile it up too high because after 6
months the bottom layer is unusable. Have the store ventilated and cover the bottom
and top layer with plastic.
• Wood: Store beams and sheets on pallets and cover it with plastic if stored outside the
store. Check wood for termites before storing and use insecticides if needed. Keep
sufficient access to the wood in case of fire.
3. Fuel
If a field office stores fuel, the logistician/procurement officer is obliged to record fuel supplies
and keep a register of fuelling vehicles. It is recommended that drums are colour coded to
clearly mark petrol, diesel and kerosene drums. All fuels must be stored at least 15 meters
from the outer fence. Ideally, fuel should be stored in a well ventilated, shaded location that
is cleared of grass and debris.
4. Food
Food must be stored in separate, food-only storage units and stored on pallets to minimize
damage by moisture, rain and insects. It is recommended that plastic sheets are put under
the floor pallets. For storing food, it is important to keep good records of the quantity and
expiry date of all food stocks. A first-in, first-out policy (stock rotation) should be in place to
ensure that food is not stored for long periods of time and that older stock is used first and
according to expiry date.
NOTE: This section provides very general guidelines and is not fully comprehensive. More
detailed guidelines for the management of large quantities of specialist goods/supplies
must be sought from specialist agencies (e.g. Medicins Sans Frontieres, Merlin, Oxfam, or
Save the Children.
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20.0 ASSET MANAGEMENT
20.1 Fixed Assets: General Principles
Each partner is responsible for maintaining their own inventory of fixed assets, or “asset
register” that can be reviewed and audited.
An asset register supports the effective management, tracking and maintenance of valuable,
durable equipment or “fixed assets” from point of purchase to disposal.
Fixed assets include, but are not limited to:
• Computers (hardware and software);
• Laptops (hardware and software);
• Satellite phones;
• Radios;
• Vehicles;
• Generators;
• Other durable equipment (e.g. fridges, printers, electric tools and machinery).
The effective management, tracking and maintenance of valuable, durable equipment are
particularly sensitive issues for donors. Donors are concerned to ensure that assets purchased
by their funds for a specific project are used only as intended and not open to abuse.
Vehicles in particular are vulnerable to abuse in their use and clear, well maintained systems
of management and tracking the maintenance of vehicles and all other durable equipment
is extremely important to demonstrate appropriate use of such equipment.
To ensure that assets are used solely for their intended purpose, a properly managed asset
register and the proper implementation of a comprehensive vehicle log book system must
be put in place.
CAFOD’s Asset Register Policy: Asset management should be applied as per CAFOD’s office
regulations highlighted and advice can be sought from the finance department.
Partner’s Asset Register Policy: Partners supported by CAFOD funds (either CAFOD or
institutional funding through CAFOD) are expected to have an established asset register in
order to effectively manage any assets or equipment procured under the grant.
20.2 Asset Management and Tracking
The following sections provide guidelines on what is required for the implementation of a
basic asset register. This can be used to guide partners that need to establish or improve an
existing register and a guide for CAFOD programme staff against which to assess a partner’s
system.
Assigning responsibility: Where possible, the responsibility for each asset should be assigned
to an individual rather than a group of people. For example, a vehicle should be assigned to
a named person (i.e. the driver or the project manager of the relevant project). The
inventory and asset register should be updated to reflect any changes in the assignment of
responsibility for specific assets. A template for assigning assets to individuals is available in
Annex 14.
Losses or damages: Asset loss or damage must be investigated. If, upon investigation, a staff
member has shown negligence that resulted in the loss or damage of equipment that s/he
has signed responsibility for, s/he will be required to compensate for the loss or damage.
Maintenance and repair: Damaged assets should be repaired as swiftly as possible and
should be recorded on a damaged assets register.
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Maintenance inspections should be planned and all results should be recorded as
appropriate in the user manual. Items should be repaired by a reputable repairer once a
quote as been obtained. Repair costs should be assigned to the relevant budget.
For faulty items that are still within their warranty period, the supplier should repair the item
free of charge. If an item has been damaged outside warranty, the supplier is not obliged to
repair it for free and a decision for its repair must be made by the relevant budget holder.
Also check the insurance policy for assets held by the relevant office or agency and whether
this covers the cost of repair or replacement of assets.
Second hand goods: Some donors and local governments have particular restrictions and
regulations regarding the purchase, use, management, taxation, and disposal of second
hand goods. Refer to the donor guidelines or local government rules in order to ensure
compliance with this.
20.3 Maintaining an Asset Register
There are 2 key reasons for maintaining an asset register:
• For items below £500 - an asset register acts as an inventory and local/internal policy and
procedures should apply with regard to the minimum value of items to be included. An
asset register/inventory for items under £500 will ensure they are effectively tracked
including their purchase, repair, maintenance and disposal.
• For items above £500 – an asset register ensures the effective tracking of purchase, repair
and maintenance of items. It also allows an item’s depreciation value to be effectively
calculated.
An asset register of all partner assets must be kept with the staff responsible for asset
management. A staff member, usually a finance team member, should be delegated to
manage the asset register. This staff member is usually a finance team member as they also
manage warranties, invoices, depreciation and insurance which directly affect the
maintenance of the asset register.
An asset register must be available in both electronic format and as a hard copy to ensure
the sufficiency, accuracy and integrity of the information recorded. The asset register must
be updated each time an asset is purchased or received. At a minimum, an asset register
should be reviewed on a quarterly basis.
All assets should be inspected and counted each quarter by the asset register manager. The
asset register manager should emphasise the physical check of the existence and condition
of the assets. Asset registers should also be reviewed in line with financial reports and audits
for particular projects.
A template of an asset register that includes the required information is attached in Annex
14. This template includes examples of how the register should be filled in using specific items
as examples. The following text box provides guidance on what information to include in the
asset register:
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The asset register and inventory should include the following information of the assets:
1. Reference number – this should be a sequential code as assigned by CAFOD or the
partner agency managing the register;
2. Category – these should be set and each asset assigned to one fixed category.
Categories could include vehicles, computer and IT equipment, plant and
machinery, etc;
3. Description – can include brand/model/brief description to help identify the item, for
example Toshiba Satellite Pro A300;
4. Identification/serial number – this should be the bar code or serial number on the
item;
5. Supplier and invoice number – this information can be obtained from the payment
requisition and supporting documentation;
6. Location of asset – include the address/department/room;
7. Asset manager – person responsible for the asset or who the asset is assigned to;
8. Project code – the project code that the item was purchased under (e.g. SUD219);
9. Procurement currency and purchase price (currency) – the price at purchase (if the
item was bought second hand, the second hand purchase price should be included
here) and include the purchase currency;
10. Purchase price in base currency – i.e. in sterling for CAFOD purchases;
11. Life/duration – CAFOD’s financial depreciation policy identifies the life span/duration
of different items; for example, vehicles is 5 years, computer and IT equipment is 3
years;
12. Date purchased – See the invoice;
13. Date last verified and by whom – regular monitoring of the items and asset register is
required (at least every 3 months);
14. Cost – included in base currency to enable calculation of the depreciation (cost
against life/duration of items)
15. Depreciation – is calculated depending on donor guidelines and the requirements of
the country of operation. Refer to CAFOD, partner or donor’s financial regulations and
policies;
16. Net book value – equals the purchase price minus the deprecation cost;
17. Status – includes “OK”, “to assess”, “out of date”, “OK but incomplete”, “needs
repair”, “irreparable”, “missing”, “stolen”;
18. Remarks – Any comments that need recording should be noted here;
The asset register should be verified every 3 months and the asset register manager
should confirm their checks:
Verified by – who checked the status and updated the asset register;
Verified Date – the date of the last physical check.
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20.4 Depreciation
Depreciation is a provision for the cost related to the deterioration due to use or
obsolescence of an asset of an organisation. It should be applied to all assets with a life or
duration of more than 1 year.
For a clear policy on depreciation, project staff must refer to:
• The relevant donor’s guidelines 18 ;
• The specific requirements of the country of operation; and
• The organisation’s (CAFOD’s or the implementing partner’s) financial policy.
You can also see CAFOD's financial policy on depreciation in the annual accounts.
CAFOD’s finance team are able to provide some advice on calculating depreciation for
budgeting purposes and for the management of assets.
20.5 Asset Disposal
Asset management includes the tracking, maintenance and disposal of each item. In asset
management, ‘disposal’ can mean reallocation, donation, write-off, sale, or loss/theft and
each of these scenarios should be carefully documented in order to be able to demonstrate
clear tracking and management of items to donors and partner agencies. Ensure that the
assets are disposed of according to the relevant donor regulations if necessary.
NOTE: Prior to disposing of any assets it is critical that programme staff refer to:
• the rules and regulations of the local government; and
• the requirements of the specific donor.
Both parties can significantly affect, and restrict, the options for disposal that are available to
CAFOD or the implementing partner, therefore a clear understanding of both sets of
regulations is required to ensure compliance.
1. Reallocation
Items can be reallocated to a different programme or project site or office – in this case the
asset details should be moved to the asset register of the new location and the ‘giving’
office should note in the asset register where the item has be relocated to.
2. Donation
Items can be donated to another local or national partner or agency, for example a local
government office, or can be donated to staff. This is often done when a project office is
being closed down and completed. Use the donation templates in Annex 13 and
information in Section 18.0 Donations for details on how to implement this.
3. Write off
Items can be written off or disposed of if they are irreparable or are at the end of their useful
life. Items that are written off must be disposed of in an environmentally safe manner.
Specific examples of items that require particular attention when being disposed of include:
• Radio equipment: if this is being disposed of, all radio frequencies must be deleted;
• Satellite phones: If these are being disposed of, they must be deactivated;
• IT systems: if these are being disposed of, any licensed software (with the exception of
operating systems) must be removed.
18 Many donors, including ECHO, have very specific policies on depreciation – refer to the relevant contract manager to ensure
compliance with these.
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4. Sale
At the end of the project, items can be sold, noting that the sale of assets is regulated by the
donor. The DEC and DFID require prior permission for the sale of assets and the funds raised
from the sale of the items must be either put back into the project or discussed with the
donor. For CAFOD funded projects, the value of the funds raised from the sale of assets
should be invested back into the appropriate project.
Neither ECHO nor the EC allow the sale of assets (except in exceptional cases where specific
authorisation has been requested and granted, from EC or ECHO). Assets funded by EC or
ECHO must be disposed of through write-off, reallocation or donation. Details of ECHO’s
asset disposal regulations are included in Annex 21.
5. Loss or theft
If an item is lost or stolen, an incident form should be filed by the individual involved (i.e. the
individual who has responsibility assigned for this item).
NOTE: For computers and IT equipment, care should be taken to ensure that all personnel or
confidential information data and applications have been removed prior to the disposal of
the equipment. An IT specialist or dedicated IT personnel should be responsible for ensuring
that such data or information is correctly removed.
20.6 Vehicle Use and Management
As with the management of assets, the management of the use of vehicles is crucial to be
able to clearly demonstrate that vehicles are being properly maintained and used solely for
the project activities. This is demonstrated through the use of vehicle log books for each
individual vehicle. The management of the vehicles – their mileage, fuel use and
maintenance – must ensure a complete paper trail to allow for satisfactory auditing and
donor reporting.
1. Vehicle management key principles:
• Ensure there is a system to keep vehicles operating within the local laws of the country,
including up to date registration, customs/duty, tax and insurance;
• Set up a separate file for each vehicle that includes key information and original
documents – this file should not be kept in the vehicle;
• Each vehicle should have a folder including:
- Copies of all registration, customs/duty, tax and insurance documents of the vehicle
- Information on the chassis number and engine number of the vehicle
- Information on the radio model and serial number (if fitted)
- Blank accident reporting forms
- Information on the vehicle’s mileage, age and condition
- The vehicle log book
- Fuel vouchers
• Each vehicle should have an individual vehicle log book that records the specifics for
each journey. This should be reviewed each month to calculate fuel use, mileage and
maintenance needs. In the log book, the driver should record the following details for
each journey:
- The date and time;
- Mileage at the start of the journey;
- Mileage at the end of the journey;
- Total mileage for the journey;
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- Passengers for the journey;
- Amount of fuel or oil added at start, during or end of the journey;
- Driver signature.
• The use of fuel should be monitored as theft of fuel is common in aid agencies. Drivers
should not be authorised to buy fuel or oil with cash, but with fuel vouchers only. Where
possible and practical a framework agreement or contract with a specific service station
should be established;
• Vehicle servicing must only be conducted by fully qualified mechanics in an approved
workshop and all replacement parts should be checked and approved to ensure that
they are new/original parts.
For CAFOD projects or partners with more than 2 or 3 vehicles, a more detailed policy will be
required that includes:
- The training and review for drivers;
- Maintenance of vehicles;
- Contracting or leasing of vehicles;
- The maintaining and systematic review of fuel consumptions; and
- Incident reporting.
Advice can be requested from CAFOD HQ or programme offices if required.
NOTE: This section provides only very general guidelines and is not fully comprehensive. More
detailed guidelines for the set up and management of assets and an inventory are available
in CAFOD’s financial guidelines.
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21.0 PAYMENTS: PAYMENT REQUISITION
The Payment Requisition form requests payments to be made to the supplier on satisfactory
completion of all deliveries.
Payment Requisitions can be made for partial payments and an invoice needs to be raised
for each payment requested as per the supplier contract terms and conditions. Retention
payments should be agreed when the contract with the supplier is signed. Retention
payments should be made as per the schedule identified. For example, a 5% retention
payment for a construction activity could be released one year after the construction
completion 19 . For other goods, services or construction, all payments, including final
payments should be made once the procurement staff member has confirmed the
satisfactory receipt of goods to the finance department.
If all the goods ordered were received in satisfactory condition, the invoice is verified, and, if
complete, the invoice, Goods Received Note, bid matrix and bid meeting notes, and
Request for Quotation must be attached with the Purchase Request. The template for the
Payment Requisition is found in Annex 15 of this manual.
In summary:
• Payments should be prepared by the staff member who initiated and implemented the
procurement. The Procurement Officer should ensure the correct details of the project
are included so that the payment is allocated to the correct budget;
• Payments should be reviewed and approved by the finance manager/budget holder to
ensure compliance with the systems, that all documentation is present and correct, and
all of the documentation is appropriately approved and signed;
• Payments should be authorised by the appropriate level of authority for the level of
expenditure and procedure followed.
What supporting documentation is required for a payment to be prepared and released
depends on the value of the purchase and the procedure implemented. Table 16 below
provides a guide to what supporting documentation is required at different purchase levels
before the payment can be released.
Table 16 Supporting documentation required for payment
Up to £100 £101 - £1000 £1,001 - £5,000 £5,001 - £60,000 £60,001 upwards
Purchase Requisition Form
Request for Quotations
Copy of advert
Supplier quotes (if collected) All supplier quotes All suppliers’ tender responses
Bid opening report
Bid matrix
Bid evaluation committee report
Purchase order or contract
Goods Received Note
Invoice
Payment Requisition
19 Retention payments can vary in amount, percentage and conditions and should be agreed on signing of the contract.
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22.0 DOCUMENTATION AND FILING
22.1 Why Documentation is Required
For audit purposes, CAFOD is required to maintain all documentation related to all
procurement that has been funded by CAFOD whether through institutional donor funding,
appeals or CAFOD general funds.
CAFOD’s partners must maintain all documentation as the responsibility of all procedures
transfers to them on acceptance of CAFOD or institutional donor funds. This includes all
withdrawn or rejected tender bids, or quotes.
Documentation and filing is the primary means to demonstrate that funds are being
responsibly managed and committed and that due diligence and good stewardship over all
funding sources has been maintained.
22.2 What Needs to be Documented
Documentation must be completed fully, transparently and accurately for every purchase.
The basic principles of documentation are:
• Full documentation files include all documentation submitted by suppliers, even if they
were ultimately unsuccessful in their bid;
• Documentation of procurement activities must be adequate to allow someone other
than the buyer to understand each purchase’s supplier selection and decisions that were
made, including; the basis for the selection of a particular supplier, justification for lack of
competition when competitive bids or offers were not obtained, and the basis for an
award cost or price;
• Proof of all decisions made, justifications, and procedures adhered to must be
maintained and should be signed by staff members with the appropriate level of
authorisation.
22.3 How Should the Documents be Maintained and Filed
To facilitate the filing and ensure that the correct supporting and back-up documentation is
maintained and filed, procurement file check lists are provided and tender/procurement
reference numbers should be included on all related documentation. These are particularly
important for tenders.
For all procurement, complete a procurement file card. Templates of procurement file cards
for each procedure are available: Negotiated procedure is available as Annex 5, Open
Tender in Annex 6 and Restricted Tender in Annex 7. Table 16 in Section 21.0 above provides
details of supporting documentation that should support the released payments.
A typical “stand alone” negotiated procedure procurement file would contain the following,
separated by dividers for easy reference:
• Payment Requisition;
• Company names and contact persons for suppliers solicited;
• Copy of all Request for Quotations, invitation to bid or requests for proposals;
• Original offers/proposal from all responsive suppliers, including all related
correspondence;
• Bid Matrix Form, justification for supplier selection and award price;
• Justification for lack of competition when less than 3 bids were received;
• Copy of Purchase Order or Contract including orders for inspection and insurance, if
applicable;
• Customs clearance documents (if international procurement);
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• Copy of Receiving Document;
• Copy of Supplier’s Invoice;
• All payment supporting documentation;
• Other documents and correspondence related to the contract.
Note that these documents do not necessarily have to be in this order – the file should be
considered a working file.
22.4 Additional Tender Documentation
Ensure the tender file checklist is complete and all supporting documentation is filed
including all proposals received, communications with suppliers, and all bid meeting reports
including the above payment supporting documentation. Use the relevant open procedure
checklist that was used when the tender was started.
The procurement staff must document any anomalies or deviations from policy and
procedures in a purchase with a signed explanatory “note to file”. Full supporting
documentation should answer any questions that an auditor or external examiner may raise.
NOTE: For accounting purposes the records must be kept for at least seven (7) years.
22.5 Who Holds Responsibility for Documentation and Filing
Specific guidelines for specific donors and the regulations of the country of operation must
be considered when collating support documentation for a project. Both donor requirements
and local regulations must be considered to adhere to the highest common denominator.
CAFOD best practice:
CAFOD does not normally require that partners give a complete set of supporting
documents for their accounts. Partners will normally need to maintain all documentation for
their own records.
The partner should therefore ensure that they maintain a complete set of all their accounts,
project invoices, bills, receipts and other project related records for a minimum of 7 years.
For some institutional donors the requirement may be greater.
CAFOD has the right to review these documents as part of an audit process but does not
have to retain a copy of the documents in CAFOD’s offices.
NOTE: for ECHO funded projects:
ECHO can conduct field audits as well as audits in CAFOD’s HQ. To meet ECHO audit
requirements, CAFOD is required to have a copy of all supporting documentation for projects
funded by ECHO – these documents must be held by CAFOD HQ for audit purposes.
Therefore, CAFOD must ensure that the partners provide a complete set of project-related
documents to CAFOD. These can be certified copies of the originals or scanned copies of
the originals.
See Annex 21 for specific guidelines to managing ECHO funded projects.
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23.0 SUBCONTRACTING
Procurement can be subcontracted to any recognised procurement or logistics firms or
through Humanitarian Procurement Centres (HPCs).
Subcontracting procurement to a supplier must follow the correct procedures to appoint the
subcontractor. Therefore, if a logistics firm is to be appointed to manage a procurement of
over £60,000 the subcontractor or logistics firm should be appointed following the
implementation of an open tender.
NOTE: Humanitarian Procurement Centres are approved by ECHO for ECHO-funded grants
only. An organisation that is HPC-approved by ECHO can be used to purchase items on
grants not funded by ECHO, but the correct procedure (i.e. a service procurement using
either a tender or negotiated procedure) MUST be used to appoint the HPC.
23.1 Humanitarian Procurement Centres – for Use with ECHO-funded grants
Humanitarian Procurement Centres are approved by ECHO as specialised procurement
centres designed to procure on behalf of ECHO partners when implementing ECHO grants.
In order to establish as an HPC, the organisation is audited by ECHO and is then continually
assessed for the services that it provides. HPCs should be fully aware of, and compliant with,
ECHO procurement and supply chain procedures. Table 17 below provides details of current
HPCs as recognised by ECHO. This list is regularly reviewed and added to, so it is important to
check ECHO’s website when considering subcontracting of procurement activities under
ECHO grants.
If an HPC is to be used in the implementation of an ECHO grant, the centre to be used must
be declared in the procurement plan and proposal for that project.
Benefits of using an HPC:
• Procurement procedures with ECHO grants are greatly simplified. CAFOD can place
orders with an approved HPC on the basis of a negotiated procedure with a single tender
rather than going through a tender or negotiated procedure – using an HPC is a genuine
single bid;
• CAFOD can charge indirect costs (to a maximum of 7% of the total value of the order
placed with the HPC) of using the HPC to ECHO;
• HPCs have a wide range of preferred suppliers and can access suppliers that CAFOD
may otherwise not know about;
• HPCs work particularly well if CAFOD needs to procure highly technical or specialised
goods or services (e.g. pharmaceuticals);
• Some HPCs offer additional services, such as training, and checking of procurement
plans, as well as general procurement services;
• Using an HPC for the procurement of consignments of drugs is particularly recommended
when funded by ECHO.
Risks of using an HPC:
• CAFOD must exercise a degree of care, efficiency, and diligence when procuring
services from an HPC or subcontracting agent. Although HPCs may be validated and
checked by ECHO, this validation DOES NOT constitute an assurance of their quality of
supplies, service or compliance with procedures;
• ECHO allows an HPC handling charge of up to 7% of the total value of the order –
however, HPCs can charge in excess of this 7% which cannot be covered by ECHO;
• As mentioned above, only ECHO grants fully benefit from the use of an HPC. Other
donors do not recognise HPCs although they can be used: the normal procurement
procedures, NOT a negotiated procedure with a single tender must be used;
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• There are some uncertainties about the relationship between ECHO and HPCs in terms of
auditing for tender procedures.
Table 17 Current ECHO listed HPCs
Name of HPC Type of goods Location Contact details Website
Begeca
(Beschaffungsgesellschaf
t mit beschränkter
Haftung für kirchliche,
caritative und soziale
Einrichtungen)
Medicines, vehicles,
technical
equipment, food
and NFIs
Based in
Germany
begeca@begeca.de
www.begeca.de
ASRAMES (Association
régionale
d’approvisionnement en
médicaments essentiels)
Medicines
Based in the
DR Congo
info@asrames.org
www.asrames.org
CHMP (Centrale
Humanitaire Médico-
Pharmaceutique)
Medicines &
Pharmaceuticals
Based in
France
contact@chmp.org
www.chmp.org
Action Medeor (Deutsche
Medikamenten-Hilfswerk
Action Medeor)
Medical equipment,
products and
supplies
Based in
Germany
info@medeor.org
www.medeor.org
IDA (International
Dispensary Association)
Medicines &
Pharmaceuticals
Based in the
Netherlands
info@idafoundation.org
www.idafoundation.org
IFRC LRMD (Logistics
and Resource
Mobilisation Department
of the IFRC)
General
Based in
Switzerland
n/a
www.ifrc.org
Transfer (Transfer Relief
Supplies and Services)
General
Based in
Belgium
office-msfsupply@msf.be
www.msfsupply.be
UNICEF (Supply Division) General Based in
Denmark
supply@unicef.org
www.unicef.org/supply
MSF Logistique
Medicines and
Pharmaceuticals
office@bordeaux.msf.org
www.msflogistique.org
NOTE: this list of HPCs changes and is updated on a regular basis. An updated list of HPCs is
available from (http://ec.europa.eu/echo/about/actors/procurement_en.htm).
23.2 Subcontracting Procurement Activities to Non-HPC Firms with ECHO Funding
When using ECHO funds, all procurement activities for a grant can be subcontracted to
reputable logistics and procurement firms that are not ECHO-approved HPCs. However,
these firms cannot be subject to a single bid or tender, unlike when using an HPC. The
subcontracting of non-HPC and procurement firms must therefore be subject to appropriate
review and consideration through relevant procurement procedures.
Therefore, any procurement agents that are not registered by ECHO as an HPC should be
treated and appointed as a service provider as per the normal service procurement
procedures either through a negotiated procedure or an open/restricted tender procedure
and standard procurement guidelines apply.
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23.3 Subcontracting Procurement Activities to HPCs with Non-ECHO Funding
If a recognised HPC is to be used in the implementation of a grant funded by another
institutional donor i.e. not funded by ECHO, the HPC must be appointed through the usual
competitive service contract procedure (i.e. negotiated procedure or tender procedure) as
described above.
A single tender can only be approved for an HPC if ECHO funding is being used. If funds are
from another donor, either institutional or internal, the standard procurement procedure of
identifying and appointing the service provider must be implemented.
23.4 Subcontracting Procurement Activities to Non-HPC Firms with Non-ECHO
Funding
As with using an HPC firm with non-ECHO funding, the subcontracting of a reputable logistics
or procurement firm, such as Crown Agents, that is not an HPC, for a project funded with
non-ECHO funding, must be appropriately chosen, justified and implemented.
The logistics firm or subcontractor therefore must be appointed through the appropriate
procurement procedure i.e. a service contract either through a negotiated or tender
procedure depending on the total value of the contract. A negotiated procedure with a
single bid is not appropriate or legitimate for this situation unless it falls into one of the
exceptions that allow a single bid. See Section 12.0 Negotiated Procedures with a single bid
for details of these exceptions.
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24.0 WAIVERS AND DEROGATIONS
Definition: A waiver or derogation is a deviation or exception from the rules or standard
procedures. Waivers and derogations are the same thing.
NOTE: Waivers/Derogations are the EXCEPTION rather than the RULE
24.1 Basic Principles
The principle and purpose of waivers is to enable a programme to be pragmatic about their
operating environment. The rules should not prevent proper humanitarian action, and the
implementation of the rules should not hinder operational imperatives.
The principles of waivers are:
• To ensure accountability by requiring an additional, external or higher level of assessment
and approval;
• To enable (particularly) humanitarian related work to take place without being
constrained by rules that may be inappropriate to the operating environment;
• To provide a mechanism that enables accountability to be maintained by ensuring that
an independent assessment is made from outside of the programme management to
ensure that waivers will not fall foul of subsequent donor audits.
Waivers should NOT be used:
• In cases where poor planning has left insufficient time to implement standard
procurement procedures;
• To obtain approval to implement a more simple procurement procedure.
Any waivers must be clearly documented and approved to ensure the correct paper and
audit trail to justify the waiver, and to prove, using evidence and documentation, the
approval for the implementation of an alternative process. Templates for requesting a waiver
can be found in Annex 16.
24.2 When and How to Use a Waiver
A waiver IS appropriate:
• If the general market environment does not allow the normal procedures, for example,
there is a shortfall or unavailability in the market;
• If CAFOD’s or CAFOD’s partner’s Standard Operating Procedures or the procedures in
this supply chain manual cannot be used in a specific exceptional situation which is
outside the programme’s control;
• For technical or quality reasons;
• If the cost of the delay due to transportation is excessive (for example international
tenders may result in using international transport and crossing international borders
which may incur significant and costly delays);
• If the legislation in the country of operation disallows certain procedures from being
implemented (for example customs restrictions);
• A waiver from the rules of nationality and origin should be requested for all ECHO
contracts – this request should be included in the proposal;
• A request to split a contract may be submitted for a waiver for the following reasons:
- Security
- The size of the contract may distort the market
- Local market constraints
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- The item is fresh food
- The item is transport services
- Timing
A waiver IS NOT appropriate:
• When poor planning left insufficient time to implement normal procedures or if you could
have followed the correct procedure but did not do so;
• To obtain approval to implement a more simple procurement procedure or to get under
the threshold to be able do an “easier” procurement process, for example to do a
negotiated procedure instead of a local tender.
• To obtain a lower level of approval;
• If the waiver has not been approved in writing in advance;
• If the waiver has not been approved by the appropriate level of authority for the value of
procurement
Waivers are not meant to avoid our own procedures which we should have followed. Instead
it is to allow you to waive a procedure that is impossible or inappropriate in the operating
environment.
24.3 How to process a waiver for projects funded by institutional donors
Preparation: The waiver request must be prepared by the partner staff. The appropriate level
of authority must internally approve the waiver.
Approval: The waiver request must be sent to the CAFOD contract manager and CAFOD
project manager for approval and review to ensure that the request complies with the
institutional donor’s regulations and the project objectives
Authorisation: The waiver must be submitted to the institutional donor by the contract
manager for final authorisation. Once the donor has authorised the request, the contract
manager / CAFOD project manager will inform the partner.
24.4 How to process a waiver for CAFOD-funded projects
Preparation: The waiver request must be prepared by the partner staff. The appropriate level
of authority must internally approve the waiver.
Approval: The waiver request must be sent to the CAFOD project manager for approval and
review to ensure that the request complies with CAFOD’s objectives, the project activities,
and with CAFOD’s standards of transparency and accountability.
Authorisation: The waiver must be submitted to the correct CAFOD delegated authority by
the CAFOD project manager. The delegated authority required to authorise the waiver
depends on the total purchase or approval level being requested.
24.5 How to document a waiver
• Whenever possible, waivers should be negotiated at the start of the implementation of
the project/programme;
• All correspondence approving the alternative procurement procedures, and the
alternative procurement procedures themselves, must be clearly documented so that
they can be followed. These alternative procedures must also be clear so that they can
be considered in subsequent audits;
• Any emails giving approval to the alternative procurement procedures, and the
alternative procurement procedures themselves should be filed with the relevant project
or contract manager so that they can be found and considered in a subsequent audit;
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• All emails giving permission to derogate from specific procedures must be filed with the
other documents relating to the procurement so that they can be found in a subsequent
audit or review.
Table 18 Example of a Complete Waiver Process
CONTEXT: A partner staff member is preparing a procurement of £70,000: a local tender is the
appropriate procedure. However, an open local tender has been identified as inappropriate
in the context.
PRINCIPLE: Waivers ensure accountability by requiring an additional, external or higher level
of assessment and approval.
PREPARATION OF WAIVER: The partner staff member prepares the waiver, highlighting:
• Why the open local tender is not possible;
• What the alternative is and why this alternative is appropriate.
• They obtain internal approval and the waiver is submitted to CAFOD
APPROVAL:
• For institutional donors: the waiver is reviewed and approved by the CAFOD contract
manager and CAFOD project manager to ensure compliance with the institutional
donor’s regulations;
• For CAFOD funds: the waiver is reviewed and approved by the appropriate project
manager.
AUTHORISATION:
• For institutional donors: the CAFOD contract manager submits the waiver request to
the institutional donor to authorise the waiver.
• For CAFOD funds: the CAFOD project manager submits the waiver request to the
appropriate delegated authority who authorises the waiver
DOCUMENTATION:
• Once the waiver has been correctly authorised the contract manager/project
manager informs the partner staff and returns the authorised waiver documentation
to the partner to implement.
• The completed and signed waiver form is filed with the appropriate procurement file.
The waiver request must include:
- the justification of why the waiver is required;
- what the alternative process is; and
- the signatures of the delegated authority that authorised the waiver.
See Annex 16: Waiver request template
24.6 Examples of Waiver Requests and Outcomes
Example 1: A donor agrees to give you seeds as a gift in kind. Just as the planting season
starts, the donor says that they have run out of money and cannot provide the seeds. You
need them to be bought quickly so they can be used in the planting season or the project
objective will fail. The amount that they will cost demands a national open tender which will
take too long. It is not CAFOD’s fault that the donor has failed to provide the promised seeds
with very little notice. You ask for a waiver explaining the need and why you cannot do a
national open tender.
• Result: Waiver allowed.
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Example 2: A host government issues a law stating that you must buy goods from one
particular supplier or group of registered suppliers at a fixed unit price. You ask for a waiver
from the need to advertise widely and instead use a local supplier.
• Result: Waiver allowed.
Example 3: You want to buy a large number of items during a year long contract, but
delivered in three instalments. This is because you do not have the storage space for the
total quantity, and it includes cement which can deteriorate in the heat and humidity if
stored for a whole year. You ask for a waiver to buy the amount in three separate contracts
using a Negotiated Tender procedure for each. The total amount is over £60,000 and would
require a Local Open Tender procedure. The intention is not to get under the procedure
threshold, but to keep the delivered quantities manageable and in good condition.
• Result: Waiver NOT allowed. The programme should use a Local Open Tender procedure
and sign a contract with a supplier which stipulates three separate deliveries of material
when they are needed.
Example 4: There were some problems in the logistics function in the project location.
Although purchase requisitions for cement and other materials were submitted on time, they
were not implemented. If a national tender process is conducted, it will delay the work and
the project outcome may fail. Therefore, in order to achieve the construction work a waiver
is requested to use a quicker procurement procedure.
• Result: Waiver allowed by CAFOD (so the project outcome will be achieved). BUT if there
is an institutional donor, their audit may deduct the full cost for this procurement from the
programme as the correct procedures could, and should, have been followed and a
follow up on why the process failed should be conducted.
Example 5: Spare parts for a FG Wilson generator are required but only one supplier in the
country sells genuine spare parts for this model and all other available parts are bad quality,
cheap imitations. The spares will cost more than £1000 so at least three quotations are
required. A waiver is requested to allow obtaining only one quotation from the one supplier
selling genuine FG Wilson parts.
• Result: Waiver allowed. There is only one realistic supplier.
Example 6: The rent of an office comes up for renewal with the landlord. The rental cost of
the office exceeds £60,000 which therefore requires a tender process. However, moving
office would be inappropriate. Therefore a waiver is requested to allow negotiation with only
one supplier (the landlord).
• Result: Waiver allowed as permitted by the negotiated procedure with a single bid
process outlined in Section 6.0 of this manual.
Example 7: During a national open tender procedure, you are supposed to advertise in
national press as well as locally to attract suppliers. However, in this particular context there is
no recognised national press. Instead, notices will be placed in the local market place, on
notice boards outside all CAFOD offices and on the notice board at the UN Coordination
Office. You ask for a waiver for advertising in the national press.
• Result: Waiver allowed.
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25.0 CONTRACTUAL CONDITIONS
25.1 Introduction
The purpose of the Negotiated Procedure, Open Tender or Restricted Tender procedure is to
select a supplier who can satisfy the required specification at a competitive price, whilst
delivering the agreed goods/services to the required timescales.
A critical stage of any procurement is the formal placing of the order with the supplier. This
must be signed by an approved representative from both the organisation that is buying the
goods, services or works (i.e. CAFOD/CAFOD’s partner), and an approved representative
from the organisation that is selling them (i.e. the selected supplier).
There are two approaches that can be used: a Contract, or a Purchase Order with
associated terms and conditions.
An all-inclusive Contract would be used if one or more of the following elements of an order
need to be described in significant detail:
• Delivery details;
• Specification/description of goods and/or services;
• Payment provisions;
• Invoice details;
• Acceptance testing;
• Arbitration.
A Contract approach would usually be adopted for all procurements above £60,000,
although it might well be used for lower value procurements if the Purchase Order does not
provide the required level of flexibility. A Contract would always be used for a works
procurement.
In contrast, a Purchase Order would be used for relatively simple and usually lower value
procurements.
25.2 Terms and conditions
Both the Contract and the Purchase Order have supporting terms and conditions. These
make clear the requirements and commitments that have been agreed between the buyer
and the seller. They also clearly state what happens if (and more often than not, when) one
or more aspects of the procurement fail to meet expectations.
These terms and conditions provide a safeguard for both the buyer and seller. For the buyer,
that he will receive the goods or services that he expects: if not, then payment will be
withheld or reduced; or under some circumstances the order terminated without financial
liability. For the seller, that provided he delivers the expected goods or services, he will
receive timely payment.
A Contract includes the terms and conditions as an integral part of the document. It also
includes a number of schedules that allow the specific aspects of the procurement to be
documented.
A Purchase Order is typically a one-page document which captures the key elements of the
procurement. An example can be found in Annex 11b. The Purchase Order refers to a
standard set of terms and conditions that would be attached to the Order itself.
25.3 Annex 11 documentation
A number of supporting documents are provided in Annex 11:
Annex 11a:
Annex 11b:
Terms and conditions for the supply of goods and/or services.
Purchase Order
25.0 Contractual Conditions
116

Annex 11c:
Annex 11d:
Contract for the supply of goods and/or services
Terms and conditions for the supply of services (only)
Note that while the principles underpinning works contracts are similar to those for goods,
they include a range of specialist contractual requirements which are beyond the scope of
this supply chain manual. Expert advice should be sought.
It is impossible to write a generic set of terms and conditions that would apply in all
circumstances. Recognising this, the documents presented in Annex 11 have been drafted
to provide a level of flexibility that would need to be considered when preparing the
specifications for the goods or services. For each of the Annexes 11a, 11c and 11d, the
following applies:
• “Buyer” refers to CAFOD or CAFOD’s partner, and can be replaced by an alternative
term that is locally applicable, for example Purchaser, Principal or Contractee;
• “Seller” refers to the organisation or individual providing the goods and/or services,
and can be replaced by an alternative term that is locally applicable, for example
Contractor, Supplier or Vendor;
• Mandatory paragraphs (“M” in the tables below) are shown in black, noting that if
these were removed then significant contractual provisions will be lost;
• Recommended paragraphs (“R” in the tables below) are shown in blue. In the
Annexes themselves they also include an * at the end of the heading line. Their use
will depend on the context and type of procurement being considered. In the event
that one or more of these clauses are not required then they can simply be deleted.
NOTE: While these Terms and Conditions have been drafted from a legal perspective to be
non-country specific, they have been prepared by UK lawyers with expertise in English law.
Before these Terms and Conditions are used outside of the UK they should be reviewed by
lawyers from the country under whose jurisdiction the Terms and Conditions will fall.
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25.4 Headings from Annex 11a: Standard Terms and Conditions
The table below provides a headings summary of the standard terms and conditions for the
supply of goods and/or services.
Headings from Annex 11a: Terms and Conditions for the
Supply of Goods and/or Services
1. DEFINITIONS AND INTERPRETATIONS
1.1 Defined terms M
1.2 Headings M
2. BASIS OF PURCHASE
2.1 Offer to purchase/acquire M
2.2 Application of Conditions M
2.3 Variations to an Order M
2.4 Responsibility for Orders M
3. SPECIFICATIONS
3.1 Quantity, quality and description M
3.2 Compliance with Specifications M
3.3 Property of Buyer R
3.4 Marking and packaging of goods R
4. INSPECTION AND TESTING
4.1 Inspection of Seller's premises R
4.2 Results of inspection R
4.3 Liability of Seller R
5. PRICE
5.1 Calculation of Price M
5.2 Increase in Price M
6. TERMS OF PAYMENT
6.1 Invoices M
6.2 Payment M
6.3 Set off M
6.4 Instalments R
7. DELIVERY
7.1 Date of delivery M
7.2 Packing note M
7.3 Rejection or acceptance of Goods or Services M
7.4 Buyer's redress R
7.5 Notice of delivery date R
7.6 Return of packaging or packing materials R
8. RISK AND PROPERTY
8.1 Risk M
8.2 Title M
9. COMMITMENTS AND LIABILITY
9.1 Seller's commitments as to Goods M
9.2 Packing M
9.3 Buyer's remedies M
9.4 Seller's commitments as to Services R
9.5 Indemnity R
9.6 Force Majeure R
9.7 Action on occurrence of Force Majeure Event R
9.8 Buyer's remedies on occurrence of Force Majeure Event R
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Headings from Annex 11a: Terms and Conditions for the
Supply of Goods and/or Services
9.9 Defects in Goods R
10. SELLER'S COMMITMENTS
10.1 Labour standards M
10.2 Environmental standards R
11. TERMINATION
11.1 Termination of Orders M
11.2 Return of Goods M
12. CONFIDENTIALITY AND ANNOUNCEMENTS
12.1 Confidentiality R
12.2 Exceptions R
13. ADVERTISING OR PUBLICITY R
14. DATA PROTECTION
14.1 Compliance with legislation M
14.2 Return of Personal Data R
15. DISPUTES
15.1 How disputes will be handled M
15.2 Authorised Representatives to attempt to resolve disputes M
15.3 Authorised Representatives not available M
15.4 Compromise agreement after resolution by Authorised Representatives M
15.5 Initiation of Court Proceedings M
15.6 Injunctive relief M
16. GENERAL
16.1 Subcontracting M
16.2 Entire agreement M
16.3 Notices M
16.4 Manuals R
16.5 No assignment R
16.6 Waivers R
16.7 Invalidity R
16.8 Governing law M
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25.5 Headings from Annex 11c: Contract
The table below provides a headings summary of the Contract for the supply of goods
and/or services. This Contract, unlike the standard Terms and Conditions, includes a number
of Schedules that allows the following details, specific to a particular procurement, to be
defined: delivery; specification; payment; personnel; invoicing; acceptance testing; and
arbitration.
Headings from Annex 11c: Contract for the
Supply of Goods and/or Services
1. DEFINITIONS AND INTERPRETATIONS
1.1 Defined terms M
1.2 Headings M
2. BASIS OF PURCHASE
2.1 Offer to purchase/acquire M
2.2 Application of Contract M
2.3 Variations to the Contract M
3. SPECIFICATIONS
3.1 Quantity, quality and description M
3.2 Compliance with Specifications M
3.3 Property of Buyer R
3.4 Marking and packaging of goods R
4. INSPECTION AND TESTING
4.1 Inspection of Seller's premises R
4.2 Results of inspection R
4.3 Liability of Seller R
5. PRICE
5.1 Calculation of Price M
5.2 Increase in Price M
5.3 Inflation R
6. TERMS OF PAYMENT
6.1 Invoices M
6.2 Payment M
6.3 Set off M
6.4 Instalments R
7. DELIVERY
7.1 Date of delivery M
7.2 Packing note M
7.3 Rejection or acceptance of Goods or Services M
7.4 Buyer's redress M
7.5 Notice of delivery date M
7.6 Return of packaging or packing materials R
8. RISK AND PROPERTY
8.1 Risk M
8.2 Title M
9. COMMITMENTS AND LIABILITY
9.1 Seller's commitments as to Goods M
9.2 Packing M
9.3 Buyer's remedies M
9.4 Seller's commitments as to Services R
9.5 Indemnity M
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Headings from Annex 11c: Contract for the
Supply of Goods and/or Services
9.6 Force Majeure M
9.7 Action on occurrence of Force Majeure Event M
9.8 Buyer's remedies on occurrence of Force Majeure Event M
9.9 Defects in Goods M
10. SELLER'S COMMITMENTS
10.1 Labour standards M
10.2 Environmental standards R
11. TERMINATION
11.1 Termination of Orders M
11.2 Return of Goods M
12. CONFIDENTIALITY AND ANNOUNCEMENTS
12.1 Confidentiality R
12.2 Exceptions R
13. ADVERTISING OR PUBLICITY M
14. DATA PROTECTION
14.1 Compliance with legislation M
14.2 Return of Personal Data R
15. DISPUTES
15.1 How disputes will be handled M
15.2 Authorised Representatives to attempt to resolve disputes M
15.3 Authorised Representatives not available M
15.4 Compromise agreement after resolution by Authorised Representatives M
16. ARBITRATION
16.1 Use of Arbitration M
16.2 Arbitration Tribunal M
16.3 Injunctive relief M
17. GENERAL
17.1 Subcontracting M
17.2 Entire agreement M
17.3 Notices M
17.4 Manuals R
17.5 No assignment R
17.6 Waivers R
17.7 Invalidity R
17.8 Governing law M
SCHEDULES
1. Delivery Details M
2. Specification/Description of Goods and/or Services M
3. Payment Provisions M
4. Personnel M
5. Invoice Details M
6. Acceptance Testing M
7. Arbitration M
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25.6 Headings from Annex 11d: Terms and Conditions for Services (only)
The table below provides a headings summary of the standard terms and conditions for the
supply of services only. It removes all the various references to the provision of goods and
also includes a number of clauses related to the status of the seller’s personnel.
Headings from Annex 11d: Terms And Conditions for the
Supply of Services (only)
1. DEFINITIONS AND INTERPRETATIONS
1.1 Defined terms M
1.2 Headings M
2. BASIS OF PURCHASE
2.1 Offer to acquire M
2.2 Application of Conditions M
2.3 Variations to an Order M
2.4 Responsibility for Orders M
3. SPECIFICATIONS
3.1 Quantity, quality and description M
3.2 Compliance with Specifications M
3.3 Property of Buyer R
4. PRICE
4.1 Calculation of Price M
4.2 Increase in Price M
5. TERMS OF PAYMENT
5.1 Invoices M
5.2 Payment M
5.3 Set off M
5.4 Instalments R
6. DELIVERY
6.1 Date of delivery M
6.2 Rejection or acceptance of Services M
6.3 Buyer's redress R
6.4 Notice of delivery date R
7. COMMITMENTS AND LIABILITY
7.1 Seller's commitments as to Services M
7.2 Buyer's remedies M
7.3 Indemnity R
7.4 Force Majeure R
7.5 Action on occurrence of Force Majeure Event R
7.6 Buyer's remedies on occurrence of Force Majeure Event R
8. SELLER'S COMMITMENTS
8.1 Labour standards M
8.2 Environmental standards R
9. STATUS OF SELLER’S PERSONNEL
9.1 No employment relationship M
9.2 Indemnity for Seller’s Personnel M
10. TERMINATION
10.1 Termination of Orders M
11. CONFIDENTIALITY AND ANNOUNCEMENTS
11.1 Confidentiality R
11.2 Exceptions R
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Headings from Annex 11d: Terms And Conditions for the
Supply of Services (only)
12. ADVERTISING OR PUBLICITY R
13. DATA PROTECTION
13.1 Compliance with legislation R
13.2 Return of Personal Data R
14. DISPUTES
14.1 How disputes will be handled M
14.2 Authorised Representatives to attempt to resolve disputes M
14.3 Authorised Representatives not available M
14.4 Compromise agreement after resolution by Authorised Representatives M
14.5 Initiation of Court Proceedings M
14.6 Injunctive relief M
15. GENERAL
15.1 Subcontracting M
15.2 Entire agreement M
15.3 Notices M
15.4 No assignment R
15.5 Waivers R
15.6 Invalidity R
15.7 Governing law M
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26.0 ETHICAL CODE OF CONDUCT FOR SUPPLIERS
As part of CAFOD’s ethical procurement, an ethical code of conduct for suppliers is required.
This code of conduct must be read and signed by suppliers on agreement of a supply
contract. Commitment to the ethical code of conduct should be included with, and should
form part of, any contract signed with a supplier.
There are two forms of this supplier’s code of conduct in this manual. Word versions of both
can be found in Annex 17: supplier’s Minimum ethical code of conduct, Annex 17(a); and
supplier’s Full ethical of conduct, Annex 17(b).
The two codes of conduct are to be used as follows:
(a) For all procurements of £60,000 or more, the Supplier’s Minimum ethical code of conduct
must be used
(b) For all procurements of £150,000 or more, the Supplier’s Full ethical code of conduct must
be used
CAFOD requires suppliers to read and sign this code of conduct. CAFOD is also required to
conduct due diligence on suppliers and take steps to check that suppliers are adhering to
the requirements of the code. Checking that suppliers are adhering to the code of conduct
should be conducted by implementation staff as appropriate according to the value of the
contract, the size of the organisation and other considerations.
26.1 Supplier’s Minimum Ethical Code of Conduct
Suppliers adopting this Code of Conduct should commit to continuous improvement towards
compliance with the labour and environmental standards specified, both in their own
companies and those of their suppliers.
LABOUR STANDARDS: The labour standards in this code are based on the conventions of the
International Labour Organisation (ILO).
1. Employment is freely chosen:
• There is no forced, bonded or involuntary prison labour;
• Workers are not required to lodge `deposits' or their identity papers with the employer
and are free to leave their employer after reasonable notice.
2. Freedom of association and the right to collective bargaining are respected:
• Workers, without distinction, have the right to join or form trade unions of their own
choosing and to bargain collectively.
• Where the right to freedom of association and collective bargaining is restricted
under law, the employer facilitates, and does not hinder, the development of parallel
means for independent and free association and bargaining.
3. Working conditions are safe and hygienic:
• Access to clean toilet facilities and potable water.
• Safe, non-hazardous working conditions
4. Child labour restrictions:
• Suppliers will not engage in any practice that is inconsistent with the International
Labour Organisation (ILO) Convention on the Rights of the Child.
• The minimum admission for employment or work shall not be less than the age of
completion of compulsory schooling. This is normally not less than 15 years, or 14
where the local law of the country permits, deferring to the greatest age.
• All young workers must be protected from performing any work that is likely to be
hazardous, or to interfere with the child’s education, or that may be harmful to the
child’s health, physical, mental, social, spiritual or moral development.
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5. Living wages are paid:
• Wages and benefits paid for a standard working week meet, at a minimum, national
legal standards or industry benchmarks, whichever is higher;
• All workers shall be provided with written and understandable information about their
employment conditions in respect to wages before they enter employment.
6. Working hours are not excessive:
• Working hours comply with national laws.
7. No discrimination is practised:
• There is no discrimination in hiring, compensation, access to training, promotion,
termination or retirement based on race, caste, national origin, religion, age,
disability, gender, marital status, sexual orientation, union membership or political
affiliation.
8. Regular employment is provided:
• Work performed must be on the basis of a recognised employment relationship
established through national law and practice;
• Obligations to employees under labour or social security laws and regulations arising
from the regular employment relationship shall not be avoided through the use of
labour-only contracting, sub-contracting or home-working arrangements.
9. No harsh or inhumane treatment is allowed:
• Physical abuse or discipline, the threat of physical abuse, sexual or other harassment
and verbal abuse or other forms of intimidation shall be prohibited.
BUSINESS BEHAVIOUR
1. The conduct of the supplier should not violate the basic rights of the intended
beneficiaries.
2. The supplier should not be engaged:
• In the manufacture of arms;
• In the sale of arms to governments which systematically violate the human rights of
their citizens; or where there is internal armed conflict or major tensions; or where the
sale of arms may jeopardise regional peace and security.
ENVIRONMENTAL STANDARDS: Suppliers should as a minimum comply with all statutory and
other legal requirements relating to the environmental impacts of their business. Minimum
standards include the following:
1. Waste Management:
• Waste is minimised and items recycled whenever this is practicable;
• Effective controls of waste in respect of ground, air, and water pollution are adopted.
2. Packaging and Paper:
• Undue and unnecessary use of materials is avoided, and recycled materials used
whenever appropriate.
26.2 Supplier’s Full Ethical Code of Conduct
Suppliers adopting this Code of Conduct should commit to continuous improvement towards
compliance with the labour and environmental standards specified, both in their own
companies and those of their suppliers.
LABOUR STANDARDS: The labour standards in this code are based on the conventions of the
International Labour Organisation (ILO).
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1. Employment is freely chosen:
• There is no forced, bonded or involuntary prison labour;
• Workers are not required to lodge `deposits' or their identity papers with the employer
and are free to leave their employer after reasonable notice.
2. Freedom of association and the right to collective bargaining are respected:
• Workers, without distinction, have the right to join or form trade unions of their own
choosing and to bargain collectively;
• The employer adopts an open attitude towards the legitimate activities of trade
unions. Workers’ representatives are not discriminated against and have access to
carry out their representative functions in the workplace;
• Where the right to freedom of association and collective bargaining is restricted
under law, the employer facilitates, and does not hinder, the development of parallel
means for independent and free association and bargaining.
3. Working conditions are safe and hygienic:
• Access to clean toilet facilities and potable water, and, if appropriate, sanitary
facilities for food storage shall be provided;
• A safe and hygienic working environment shall be provided, bearing in mind the
prevailing knowledge of the industry and of any specific hazards. Adequate steps
shall be taken to prevent accidents and injury to health arising out of, associated
with, or occurring in the course of work, by minimising, so far as is reasonably
practicable, the causes of hazards inherent in the working environment;
• Workers shall receive regular and recorded health and safety training, and such
training shall be repeated for new or reassigned workers;
• Accommodation, where provided, shall be clean, safe, and meet the basic needs of
the workers;
• The company observing the standards shall assign responsibility for health and safety
to a senior management representative.
4. Child labour restrictions
• Suppliers will not engage in any practice that is inconsistent with the International
Labour Organisation (ILO) Convention on the Rights of the Child.
• The minimum admission for employment or work shall not be less than the age of
completion of compulsory schooling. This is normally not less than 15 years, or 14
where the local law of the country permits, deferring to the greatest age.
• All young workers must be protected from performing any work that is likely to be
hazardous, or to interfere with the child’s education, or that may be harmful to the
child’s health, physical, mental, social, spiritual or moral development.
• Adhere to legitimate workplace apprenticeship programs and comply with all laws
and regulations governing child labour and apprenticeship programs.
• Companies shall develop or participate in and contribute to policies and
programmes which provide for the transition of any child found to be performing
child labour to enable her/him to attend and remain in quality education until no
longer a child.
5. Living wages are paid
• Wages and benefits paid for a standard working week meet, at a minimum, national
legal standards or industry benchmarks, whichever is higher. In any event wages
should always be high enough to meet basic needs and to provide some
discretionary income;
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• All workers shall be provided with written and understandable information about their
employment conditions in respect to wages before they enter employment, and
about the particulars of their wages for the pay period concerned each time that
they are paid;
• Deductions from wages as a disciplinary measure shall not be permitted nor shall any
deductions from wages not provided for by national law be permitted without the
express and informed permission of the worker concerned.
• All disciplinary measures should be recorded.
6. Working hours are not excessive
• Working hours comply with national laws and benchmark industry standards,
whichever affords greater protection;
• In any event, workers shall not on a regular basis be required to work in excess of 48
hours per week and shall be provided with at least one day off for every 7 day period
on average;
• Overtime shall be voluntary, shall not exceed 12 hours per week, shall not be
demanded on a regular basis and shall always be compensated at a premium rate.
7. No discrimination is practised:
• There is no discrimination in hiring, compensation, access to training, promotion,
termination or retirement based on race, caste, national origin, religion, age,
disability, gender, marital status, sexual orientation, union membership or political
affiliation.
8. Regular employment is provided:
• To every extent possible work performed must be on the basis of a recognised
employment relationship established through national law and practice;
• Obligations to employees under labour or social security laws and regulations arising
from the regular employment relationship shall not be avoided through the use of
labour-only contracting, sub-contracting or home-working arrangements, or through
apprenticeship schemes where there is no real intent to impart skills or provide regular
employment, nor shall any such obligations be avoided through the excessive use of
fixed-term contracts of employment.
9. No harsh or inhumane treatment is allowed:
• Physical abuse or discipline, the threat of physical abuse, sexual or other harassment
and verbal abuse or other forms of intimidation shall be prohibited.
BUSINESS BEHAVIOUR
1. The conduct of the supplier should not violate the basic rights of the intended
beneficiaries.
2. The supplier should not be engaged:
• In the manufacture of arms;
• In the sale of arms to governments which systematically violate the human rights of
their citizens; or where there is internal armed conflict or major tensions; or where the
sale of arms may jeopardise regional peace and security.
ENVIRONMENTAL STANDARDS: Suppliers should as a minimum comply with all statutory and
other legal requirements relating to the environmental impacts of their business. Detailed
performance standards are a matter for suppliers, but should address at least the following:
1. Waste Management:
• Waste is minimised and items recycled whenever this is practicable. Effective controls
of waste in respect of ground, air, and water pollution are adopted. In the case of
hazardous materials, emergency response plans are in place.
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2. Packaging and Paper:
• Undue and unnecessary use of materials is avoided, and recycled materials used
whenever appropriate.
3. Conservation:
• Processes and activities are monitored and modified as necessary to ensure
conservation of scarce resources, including water, flora and fauna and productive
land in certain situations.
4. Energy Use:
• All production and delivery processes, including the use of heating, ventilation,
lighting, IT systems and transportation, are based on the need to maximise efficient
energy use and to minimise harmful emissions.
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27.0 CODE OF BEHAVIOUR FOR STAFF
This section presents the supply chain management related Code of Behaviour requirements
that apply to all CAFOD staff. It is fully consistent with the full CAFOD Code of Behaviour.
For completeness this section repeats a number of the supply chain management related
principles that are within CAFOD’s full Code of Behaviour as well as providing additional
clarity on dealing with, and working with suppliers. CAFOD partners are encouraged to have
in place a Code of Behaviour that covers the provisions below.
1. Values and Professional Conduct
• Staff will be expected to ensure at all times that their personal and professional conduct
is, and is seen to be, of the highest standards.
• Staff will promote fair, ethical and legal trade practices in all their work which will be
undertaken for the exclusive benefit of CAFOD/CAFOD’s partner and not for personal
gain.
• Staff will demonstrate respect for all human rights and challenge discrimination,
harassment, abuse and exploitation that infringe the rights of others.
• Staff will observe all local laws in the country in which they are working.
• Staff will ensure that they, and any staff that they manage, act in accordance with
health, safety and security guidelines and endeavour to safeguard others.
2. Conflicts of interest and coercion
• Staff will not use the positions of power conferred by their role in CAFOD/CAFOD’s partner
to exert pressure, extract favours or enhance their personal gain economically,
professionally, politically or sexually.
• Staff directly involved in procurement must not have any personal or family interest,
involvement, or financial relationship with a supplier as this would impair objectivity or
freedom of judgment. Any identified conflict of interest must be declared and either: an
alternative supplier must be found; or an alternative staff member must conduct the
specific procurement. Note that all members of a Bid Evaluation Committee will be
required to sign a conflict of interest declaration covering all the suppliers who have
submitted a bid in response to a Request for Quotation or Tender.
• Staff will not form business relationships between CAFOD/CAFOD’s partner and members
of their own extended family or friends or any private businesses in which they have a
financial interest that may lead to a conflict of interest. If staff become aware of a
potential conflict of interest they must immediately notify their line manager.
• If Staff need to use a supplier for personal use that CAFOD/CAFOD’s partner also use,
then they should notify their line manager in advance.
• Staff will not accept from beneficiaries, partners or contractors any favours, bribes or
other forms of personal gain under any circumstances.
3. Gifts
• CAFOD/CAFOD’s partner regards each supplier as a business partner, and as such, it is
important to maintain an atmosphere of honesty and integrity in its affairs. Selection of
suppliers will be based exclusively on quality, service, price, and suitability to the stated
needs.
• Staff will not solicit, request, accept, or agree to accept any significant gift from a
supplier or prospective supplier. A gift is defined as any tangible item, service, favour,
credit, or discount of value, not available to others, that could influence actions.
• Small tokens, such as calendars or pens whose value is less that £5 per item can be
accepted, but line managers must be informed of any such tokens that are offered or
received.
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• If a member of Staff receives or is offered remuneration or a gift, they must report it
immediately to their manager. No monies can be accepted from a supplier for any
reason whatsoever.
• Neither CAFOD’s, nor CAFOD’s partner’s funds should be used to provide gifts to suppliers
or any other group.
4. Entertainment, hospitality and meals
• Supplier offers of entertainment and hospitality shall be refused tactfully, but clearly.
Acceptance of invitations to business meals shall be subject to judgment as to the
appropriateness of the occasion, frequency, choice of facilities, and future opportunities
to reciprocate.
5. Proprietary information
• Proprietary information (e.g. specifications, proposal or quotation particulars, proofs,
samples or drawings, etc.) exchanged during transactions and negotiations shall be
treated as confidential and will not be shared outside the staff involved in the
procurement.
6. Fraudulent or corrupt suppliers
• Staff will reject any proposal put forward by tenders, or candidates, or terminate their
contract where applicable, if it is determined that such suppliers or individuals have
engaged in corrupt, fraudulent, collusive or coercive practices.
7. Donations
• All offers of donations to CAFOD by suppliers must be directed to the Major Donor’s
department or the line manager of the staff being approached. The management and
Major Donor’s team will accept on behalf of CAFOD or CAFOD’s partner.
8. Reimbursements
• No employee may authorise his or her own reimbursements for expenses. His or her
immediate supervisor should make authorisations for employee expenses.
NOTE: Failure to comply with the Code of Behaviour requirements may be cause for
disciplinary action.
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28.0 FREQUENTLY ASKED QUESTIONS
1. How do I use this manual
This manual is not designed to be read from cover to cover. It is designed as a toolkit to
provide guidance, templates and regulations as needed. Staff members should use the
manual as a reference guide when conducting specific procurement or logistics related
activities. The comprehensive table of contents has hyper-links if being used electronically or
page numbers if being used as a hard copy for easy reference. See the contents page and
annex list for an easy reference guide.
2. Where can I find the appropriate forms
All the templates for procurement, tendering, logistics, and payment are provided and
should be modified as appropriate by programme staff, but it is important that consistency is
achieved by individual projects or partners. See the Annexes of this manual for all templates.
Note these Annexes have been designed on the basis that they will be used as electronic
(Microsoft Word or Excel) documents and not in their paper format.
3. Who has the authority to sign what purchases and amounts
Regarding delegations, roles and responsibilities, each project or partner must identify the
personnel they have available and their key roles and responsibilities in the procurement
process. This should be clearly documented and modified as appropriate for each situation.
This document uses standard CAFOD staff roles as a guide but this must be changed
according to each project or partner. See Section 7.0 for details.
4. Is this relevant to CAFOD when we work through partners
As partners conduct the majority of procurement, CAFOD requires that partners have
appropriate, transparent procurement management systems in place. In the case of
institutional donor grants, donor requirements and obligations are transferred to partners and
this manual provides toolkits and templates for partners who are funded by institutional
donors, or directly by CAFOD. The supply chain manual, or an alternative that meets or
exceeds these requirements, must be used whenever one (or more) of the following apply.
For the avoidance of doubt, "procurement" covers goods, supplies, services and works, but
excludes: salaries, related costs (e.g. tax, national insurance or pension) and general office
running costs.
• All projects/programmes performed under an institutional contract, including funding in
whole or part by a Disasters Emergency Committee (DEC) appeal.
• All projects where the total value of procurements in a PSGA/MSGA grant approval, or
series of grant approvals, to the same partner within the same financial year is greater
than £20,000.
• All procurements directly managed by CAFOD staff, including those for a CAFOD
international/UK office, or those related to a CAFOD project/programme.
5. Is this relevant to CAFOD when we are using CAFOD general funding
This manual is designed as a guide for all CAFOD-funded projects – whether the funds are
from institutional or internal sources. The manual should be used to ensure consistency and
compliance across all CAFOD-funded programmes. They are to be considered as best
practice and are required across all CAFOD-funded programmes. For partners who have
systems in place, their systems should be reviewed to ensure that they meet the same, or
higher, standards as outlined in this manual. For partners with weaker systems, these
guidelines and tools should be used to strengthen or supplement the partners systems. See
Section 4.0 and Section 5.0 for details.
6. Do the guides in this manual comply with institutional donor requirements
This manual has been compiled considering the regulations of funding institutions including
DFID, USAID or ECHO and other donors including the DEC and CI. These guidelines include
our knowledge of donors and their regulations. However it is the responsibility of the contract
28.0 Frequently Asked Questions
131

manager to crosscheck with specific donors to ensure full compliance. Staff in HD or PPSS’s
funding team can also provide advice on compliance with donors if required.
7. Where can I get help in using this manual if I need it
CAFOD’s HD and PPSS funding teams can provide support, clarification, and examples to
programme staff and partners. If requested, the funding teams will conduct workshops with
partner and programme staff to introduce the manual and support the implementation of
the toolkits. The funding team also regularly review the details of this manual to ensure they
are relevant and appropriate to the field context, donor and CAFOD changes.
8. What other documents are relevant to this manual
This manual is consistent with several other CAFOD policies and manuals and should be used
in conjunction with PCM. In particular, this manual should be read and understood in
conjunction with the Institutional Funding Guidelines, the Partner Organisational Profile, the
Partner Financial Profile and the Financial Guidelines. The Partner Financial Profile (internal
assessment and questions for partners) and Partner Organisational Profile are attached to
the manual as Annexes 18, 19, and 20 for easy reference.
9. In an emergency situation, how can I fast-track procurement
In the case of a humanitarian emergency, purchases can be made using a negotiated
procedure using a single bid. A waiver to use this procedure needs to be sought from the
appropriate level of authority. See Section 12.0 on the negotiated procedure with a single
bid and Section 24.0 on waivers.
10. How do I complete a one-off purchase
Individual, one-off purchases should follow the relevant procedure that is determined by the
type of procurement (whether it is for goods, service or works) and the level of the purchase
(i.e. above or below £60,000 needs a negotiated or tender procedure). See Section 4.0 for a
summary of the procedure thresholds.
11. How do I know which tender process I need to conduct
A general introduction to tendering can be found in Section 12.0. Different tender processes
are required for different purchase amounts and this effects how the tenders are advertised.
Open tenders are open to all candidates to submit their bid. A restricted tender allows any
suppliers to request to participate, but only selected, eligible candidates are invited to
submit a complete bid. See Section 13.0 on Open Tenders and Section 14.0 on Restricted
Tenders.
12. How do I monitor and document the delivery of goods
The supply chain manual includes details on how to conduct effective delivery and
distribution of goods and supplies. The manual also provides an outline of things to consider
when storing or warehousing goods and supplies. See Section 16.0 on transport and delivery,
and Section 19.0 on stores management and warehousing.
13. What backup or supporting documentation do I need to release a payment
Standard documentation is required to support a payment. All documentation that was
collected during the purchase process is required as supporting documentation for
payments. This includes correctly completed, signed and dated documentation that have
the correct level of authorisation relative to the size of the purchase. The documentation
must be attached to a payment requisition form that is reviewed by the budget holder and
signed by the finance delegate. See Section 21.0 on payments for the supporting
documentation that is required for each purchase threshold.
14. How do we document donations when our projects include the donating of equipment to
beneficiaries or partners
Giving items and assets to project partners or beneficiaries is common practice. It is crucial
that what has been given, and to whom, is documented clearly and both the recipient and
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132

the giver must sign that the assets have been transferred. Depending on the value of the
item, a distribution list (for low value items, i.e. those below £2,000 per item) or a donation
certificate (for higher value items, i.e. those above £2,000 per item) is used to document
these donations. See Section 18.0 for details of how to manage and document donations.
15. Can I use a different procedure for purchasing than those set in these guidelines
The value limits for procurement procedure thresholds set the minimum procedure required. If
a purchase of supplies for the total value of £30,000 is being conducted, this would normally
require a negotiated procedure to be conducted. However, if an open tender procedure is
deemed to be more appropriate for this purchase, this higher procedure can be used
without seeking a waiver. However, if a purchase of supplies for the total value of £60,000 is
being conducted, this would require an open tender. The use of a negotiated procedure for
this purchase is not allowed unless a suitable waiver providing clear justifications has been
obtained.
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29.0 Key sections for CAFOD’s SCM: what is mandatory and what is
recommended
The CAFOD Supply Chain Manual provides minimum standards for all purchase,
procurement and supply chain activities that will be conducted using CAFOD’s funds or
funds channelled through CAFOD – for example institutional and appeal funding. As such,
the use of the standards set out in the manual is mandatory.
In certain sections, however, the manual presents two or more options, with the selection of
the most appropriate requiring a level of discernment and understanding of the local
context in order to ensure the effective implementation of the manual’s procedures and
templates. The following is a summary of these options.
29.1 Thresholds for use of procedures
The thresholds for the use of procurement procedures represent the MINIMUM procedure
required: if a more rigorous procedure is considered appropriate, no additional authorisation
is required from CAFOD or CAFOD’s partners.
For example, the minimum threshold for obtaining of 3 quotes for supplies, goods, services
and works is £1001. However, for many partners this threshold is higher than they would
choose to use and so they may decide to adopt a lower threshold.
29.2 Supplier Questionnaires
Using a standard supplier questionnaire can be particularly useful for larger purchases (i.e.
over £5,000) to help gauge the capacity and capability of the individual suppliers and
consider more than their price offer. The use of a standard supplier questionnaire is highly
recommended because it ensures that the correct and complete information is collected
from every supplier. A supplier questionnaire should include questions regarding the supplier’s
registration, size, and clients for references.
Two supplier questionnaire examples have been provided in the manual:
1. A short, standard supplier questionnaire to be used for procurements below
£60,000
2. A more detailed, in-depth supplier questionnaire to be used for procurements
above £60,000
The use of these questionnaires is not mandatory. However, the requirement of a clear
request for quotations that ensures the collection of comprehensive information from and
about suppliers is mandatory.
29.3 Weighted evaluations of bids and tenders
Using a weighted evaluation process for bids and tenders is particularly useful for large or
complex purchases. However, it is not mandatory. What is essential is to be clear about the
evaluation and analysis process that will be used to select a supplier.
29.4 Contractual conditions
Contractual conditions need to be clear for all procurements and the manual provides: a
standard Purchase Order with terms and conditions; and a more general contract with
embedded terms and conditions. The terms and conditions for both these include
mandatory and optional clauses.
The mandatory clauses are shown in black in Annex 11: without these the contract would be
incomplete. The recommended clauses are shown in blue (and with an *) in Annex 11. In
the event that one or more of these clauses are not required then they can simply be
deleted. The use of these recommended clauses will depend on the context and type of
procurement being considered.
29.0 Key Sections for CAFOD’s SCM: what is mandatory and what is recommended
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30.0 HOW TO GET HELP
For partners: Partners can request help from CAFOD’s in-country programme staff for details
or guidance on the SCM regulations.
In country teams and ID Programme staff: In-country teams and programme staff can
request help from CAFOD’s PPSS and HD contract management teams
Where to find the SCM and annexes on SharePoint:
http://cafodportal/sites/ID/ID%20Tools%20and%20Resources/Supply%20Chain%20Managem
ent/Forms/Doc%20type.aspx
E-mail support group: CAFOD programme staff can use the supply chain support email
address: “Supply Chain Support Group”
30.0 How to get help
135