Version

Date

Prepared By

Reviewed By

Verified By

Approved By

1.0

21st June 2020

Marwan ALARIKI

Muath Habib

Amal Kaid

Asia ALMESHRGI

Position/Signature

Consultant

Procurement Manager

Deputy Executive Manager

Executive Manager

Procurement Procedures Manual


Contents

 

1.INTRODUCTION: 4

2. SCOPE. 4

3. DEFINITIONS. 5

4. RESPONSIBILITIES. 6

5. PROCUREMENT PLANNING.. 7

6. PROCUREMENT ACTION INITIATION: 8

7. PROCUREMENT METHODS AND THRESHOLD: 9

8. SUPPLIERS/BIDDERS IDENTIFICATION.. 10

8.1.Suppliers Prequalification: 10

8.2.Establishing Bidders List: 10

9. CONTENTS OF QUOTATION/BID DOCUMENTS. 11

9.1.Direct Purchase/RFQs documents must contain the following: 11

9.2.Low-Value Tender and Limited Tender documents must contain the following: 12

9.3.Public Tender documents must contain the following: 12

10. TRANSMISSION OF RFQs/BIDS DOCUMENTS AND SUBMISSION OF OFFERS. 13

10.1.For Direct Purchase: 13

10.2.For RFQs: 13

10.3.For Low-Value Tender and Limited Tender: 13

10.4.For Public Tender: 14

11. GENERAL RULES FOR TRANSMISSION AND SUBMISSION OF RFQs/BIDs DOCUMENTS. 15

11.1.Closing Date for Offers Submission: 15

11.2. Contact with Invited Suppliers during the ITB Period: 15

11.3.Closing Date Extension: 15

11.4.Modification of Bid Documents: 15

11.5.Safeguarding of Submitted Bids: 16

11.6.Cancellation of ITB: 16

11.7.Mis-Tenders: 16

12. OPENING BIDS SUBMISSIONS. 17

12.1.Bid Opening Committee Establishment (Applicable Only to Tenders): 17

12.2.Suppliers Request for Additional Information and/or Documents: 17

13. BIDS EVALUATION.. 18

13.1.Evaluation Criteria & Methodology: 18

13.2.Technical Evaluation Committee Establishment (Applicable Only to Tenders): 19

13.3.Direct Purchase Evaluation: 19

13.4.RFQs Evaluation: 19

13.5.Tenders Evaluation: 20

13.5.1.Technical Evaluation: 20

13.5.2.Commercial Evaluation: 20

13.5.3.12.6 Contacting Suppliers during Bid Evaluation Stage: 21

14. CONTRACT PREPARATION AND AWARD.. 21

15. CONTRACT EXECUTION.. 22

16. CONTRACT AMENDMENTS: 22

17. RECEIPT OF GOODS, WORKS AND/OR SERVICES: 23

17.1.Receipt & Inspection Committee Establishment (Applicable Only to Tenders): 23

17.2.Receipt Reports. 23

18. PROCUREMENT ACTION & CONTRACT CLOSURE: 24

19. PAYMENT PROCESSING: 25

20. DOCUMENTS RECORDING & FILING.. 26

21. PROCUREMENT AT REGIONAL OFFICES AND BRANCHES. 27

22.DECLARATION.. 27

 

 

 

 

 

 

 

 

1.   INTRODUCTION:

This manual is a guidance that provides an overview of the procedures that apply to procurement of all goods, works and services in the context of Sustainable Development Foundation (SDF) logistics/operations. In addition, this manual contains information and documents/forms used with the defined procedures.

 

2.   SCOPE

This procedure applies to all procurement activities for goods, works and services from the identification of a requirement to the issue of a formal commitment.

The phases covered are:

  Procurement Planning

  Request initiation;

  Identification of potential bidders/suppliers;

  Preparation and launching of Invitation to Bid;

  Receiving & Opening of Bids

  Evaluation of Bid documents;

  Awarding the contracts;

  Issue and execution of contract documentation;

  Contracts amendment;

  Delivery;

  Payment Processing

  Suppliers communication

 

The procurement process has different procedures based on the allocated amount of money in the budget.

All persons within the Foundation involved in purchasing activities (namely the initiation of purchase requisition, preparation of bid through to award) shall be aware of the following:

  The necessary actions to be taken and timing of such actions;

  The documentation which is available in model format and the documentation to be prepared upon an ad hoc basis;

  The requirements regarding informing and interfacing with others.

 

 

 

3.   DEFINITIONS

 

Foundation: refers to Sustainable Development Foundation (SDF).

Requester: A person authorized to request the procurement of goods, works or services for a program or project.

Buyer: A person authorized to undertake all purchase activities in accordance with the procedures set forth in this Manual.

Supplier: A company, organization, institute or other legal entity which may supply goods, works or services to the Foundation under the provisions of this Manual.

Bid: An Offer submitted in response to a formal invitation for the supply of goods, works or services meeting a specific description.

Offer: A quotation or Bid submitted by a Supplier.

Contract: A legally binding agreement between the Foundation and a Supplier which provides for the supply of goods and/or performance of works or services for the Foundation.

Bid Documents: Consists of the documents necessary to fully describe the requirements of the procurement action, as well as the procedures and the instruction to bidders for submission of Offers.

Direct Purchase: A request to procurement under particular circumstances and subject to appropriate review and approval, be undertaken directly with a single Supplier when a competitive bid process would not efficiently and effectively meet the interests and objectives of the Foundation. If the estimated value is above than USD 500, the Requester has to submit an approved Waiver Form.

Request for Quotation (RFQ): A request made to a Supplier to obtain the price at which goods or services are available (Quotation), and it is used for low value purchasing of simple goods or services with clearly-defined or standard specifications.

Invitation to Bid (ITB): A formal invitation by the Foundation to a Supplier to submit a formal Bid in accordance with Foundations specified procedure for the supply of goods, works or services meeting the required specifications.

Procurement Action: A transaction initiated by a Requester to fulfill Foundations requirement for goods, works or services, as well as the series of activities which are intended to result in a legally binding commitment entered into by the Foundation to purchase goods or contract for works or services under the provisions of this Manual.

Procurement Method: It is a method by which supplying goods/services to the Foundation will be followed and processed.

Long-term Agreements: Is an agreement with a supplier to provide routine goods and / or services at a fixed price over a specified period of time. The suppliers are to be chosen from the list of approved and qualified suppliers with the Foundation after making a Procurement Action with them.

 

4.   RESPONSIBILITIES

Procurement Officer/Assistant (Buyer): Responsible for all procurement process from receiving the purchase request up to signing the contract with the Supplier.

Procurement Manager: Responsible for reviewing and verifying the Procurement Action and documentation, and making sure that they are aligned with the Foundation procurement procedures and processes set forth in this Manual.

Project/Department Manager (Requester): Responsible for planning and initiating the purchase request through Purchase Requisition Form and identifying the needs and the specifications of the required goods, works or services. He/she is also responsible for supervising the technical evaluation of Bids and providing technical evaluation report. Furthermore, the Project /Department Manager is responsible for the contract execution upon its signature by both parties.

Executive Manager (EM): The owner who provides approvals by signing on the procurement processes, forms and templates as required, including bypassing the procurement procedures of this Manual for the interest of the Foundation.

Bid Opening Committee: A committee that shall be formed of at least three members, by a decision of the EM. Its responsibility is to open and examine bids submission documents, and to deliver the technical bid submission to the Technical Evaluation Committee, keeping the commercial files unopened in a secured location in Procurement Department.

Technical Evaluation Committee: A committee that shall be formed of at least three members, by a decision of the EM. Its responsibility is to study and evaluate technical submissions, and to submit Technical Evaluation reports thereon to the Procurement Department.

Receipt and Inspection Committee: A committee that shall be formed by a decision of the EM, consisting of at least three members including a member from the relevant department. Its responsibility is to cross-check the quantities and specifications of the items supplied with purchase order and ensure that the items are safe and free from any defects or deficiencies.

5.   PROCUREMENT PLANNING

To support procurement activities, Project/Department Manager (Requester) shall provide a procurement plan on a quarterly basis for procurement activities which will be the basis of requests for Procurement Action.

The procurement plan shall include a description and quantities of the goods and/or services required to be procured, along with the estimated budget, schedule and location of the project.

In case that the estimated value and/or goods availability in the market is unknown, a Request for Information (RFI) process by Procurement Unit should be conducted to gather the information required.

The involvement of the Procurement team at the procurement planning of a project is essential to ensure effective project implementation.

Project Manager needs to ensure that he/she involves Procurement as much as possible when preparing a new project proposal, especially when there are activities that require purchasing action to be delivered as part of the project implementation.

At the project procurement stage, the Procurement role will include but not limited to the following:

  Ensuring that the needed supplies are available in the market.

  Checking that the pricing and delivery lead time of the supplies set in the proposal are realistic. This step shall be done in coordination with Procurement Department.

  Cross-checking that the procurement procedures are adhered.

The Procurement Plan shows the purchasing activities needed for the Project and the procurement method to be applied. The Plan shall be prepared by the Project Manager with the assistance and support of the Project Assistant, reviewed and validated by the Program Manager.

 

 

 

 

 

6.   PROCUREMENT ACTION INITIATION:

When a Project/Department Manager (Requester) identifies the need for goods works and/or services, a formal Purchase Requisition (PR) Form shall be issued and brought forward to Procurement Manager specifying accurately the goods and/or services required, along with any other relevant specifications and documents that clearly describe the following:

  Outlining of the technical scope requirements including but not limited to the required quantities and delivery terms (Location, deadlinesetc.)

  Preliminary schedule and duration requirements

  The budget assigned to the PR.

  Pricing strategy (Unit Price, Lump Sumetc.)

  Payment Strategy and terms.

  List of proposed bidders if any.

Procurement Manager will review the PR and assess the provided documents and request clarification or additional information from the Requester if any. Then he will assign the request to the Buyer after getting it approved by the relevant parties mentioned in the PR Form.

 

Emergency Situations and Exceptions:

In case of emergency and exceptional operational situations where an urgent response is needed to deliver emergency assistance through Direct Purchase above USD 500 or through different Procurement Method, the Requester has to provide Waiver Form waiving the requirement of formal competitive bidding or a method which includes a valid justification with the proposed supplier and/or method that must be approved by the EM.

 

 

 

 

 

Timeline Plan for Implementing a Procurement Action:

PR must be submitted early enough to provide sufficient lead time to meet delivery and distribution schedules. The minimum working days requested to execute the Procurement Action from the point of receiving the PR up to signing the agreement with the Suppliers is stipulated in the table below:

PR Type/Process

Direct Purchase

RFQ

LVT

Limited Tender

Public Tender

PR Reviewed & Approved by EM

1

1

1

1

1

Preparing Bid Documents

N/A

1

1

2

2

Launch the Bid & Deadline to receive offers

3

3

5

5

10

Bids Opening

 

 

 

 

2

1

1

1

1

Technical Evaluation

2

3

5

Commercial Evaluation

1

1

2

Contract Award Letter

1

1

1

1

Preparing the Contract

1

1

1

1

Signing the Contract by both Parties

1

1

1

1

Total Working Days Required to Process PR that are based in Head Office

6

9

14

16

23

Sending Bids Submission to Head Office
(for ITBs launched in sub offices)

 

N/A

3

3

3

Total Working Days Required to Process PR that are based in Branches

 

-

17

19

26

 

 

7.   PROCUREMENT METHODS AND THRESHOLD:

Supplying goods or services to the Foundation will be processed using one of the methods below, taking into consideration that the amounts are in US Dollars or its equivalent:

Procurement Method

Cost Range in USD (or equivalent)

Direct Purchase (DP)

Value up to US$ 500

Request for Quotation (RFQ)

Value from US$ 501 up to US$ 5,000.

Low Value Tender (LVT)

Value from US$ 5,001 up to US$ 25,000.

Limited Tender (LT)

Value from US$ 25,001 up to US$ 100,000.

Public Tender (PT)

Value above US$ 100,000

 

8.   SUPPLIERS/BIDDERS IDENTIFICATION

 

8.1 Suppliers Prequalification:

To identify and register Suppliers which may be in a position to supply the requested goods, works or services, as well as satisfy any additional requirements. The Supplier has to provide the following documents for the Prequalification Process:

  Valid Registration documents for the entity.

  Valid Tax Card.

  Previous Contracts awarded with other organizations.

  Company Profile.

  Catalogs for the supplies/equipment and/or services.

  Any documents that may be deemed necessary to enhance the prequalification process (e.g. quality manual, ISO certificationsetc.)

  Completed Suppliers Registration Form filled by Supplier (for new Suppliers).

The Procurement Unit will evaluate the documents stipulated above provided documents before adding a new Supplier to the Suppliers Database.

The Suppliers Database must contain the following information for each Supplier and must be updated regularly:

  Suppliers Company full name and address details.

  Contact information (email, phone numbers, contact person, etc.)

  Products and sub-products supplied (e.g. Equipment and type of equipment)

  Categorizing. i.e. which types of purchase requests can the Supplier participate in. (RFQ, Tender or All).

  Date of Registration in the Database.

  Suppliers Ranking/Evaluation for previous services/works provided (if applicable).

 

8.2 Establishing Bidders List:

Using the Suppliers Database, the Buyer is responsible to identify a list of potential bidders to contact for each invitation to RFQ or Tender, taking into consideration those Suppliers recommended by the Requester.

The criteria in which the Suppliers are identified and selected to participate in a particular RFQ or Tender are as follow:

1)    Be able to provide the requested goods or services in a manner that fulfill the Foundation requirements.

2)    Previously identified and selected for similar provision of goods or services.

3)    Previously awarded Offers and satisfactory supply/deliver comparable goods or services.

4)    Demonstrated technical competency, capacity, experience, satisfactory performance and proven records of financial position in past dealings with the Foundation.

5)    Local Preferences, location of the Supplier for accessibility purposes.

Note: In determining the number of Suppliers to invite for an RFQ or Tender, the Buyer should ensure that he has sufficient number of potential Suppliers to be invited, with a view to obtaining a minimum of three technically qualified Offers/Bids.

 

In case of Tenders, when less than three Suppliers respond to an invitation to bid, or the Buyer is unable to identify at least three Suppliers that are in a position to provide the goods, works or services required and meet the minimum technical and commercial requirements, such circumstances must be documented using a Derogation Form for the justification of inviting fewer than three Suppliers. Thereafter, The Procurement Action shall proceed normally in accordance with this Manual.

Procurement Manager shall ensure that the selection of the Suppliers List is undertaken in a transparent and equitable manner considering the procurement requirements.

 

9.   CONTENTS OF QUOTATION/BID DOCUMENTS

 

9.1 Direct Purchase/RFQs documents must contain the following:

 

                    I.        Clear description of the goods, works or services required.

                  II.        Quantities of goods or bill of quantities for works, delivery terms, location and timeframe for performance.

                 III.        Closing date for receiving the Quotation.

 

 

 

 

9.2 Low-Value Tender and Limited Tender documents must contain the following:

 

                    I.        Formal Invitation letter to Bidders

                  II.        Clear and complete instructions to bidders regarding the procedures for submission of the Offers; with the closing date for receipt of the Offers;

                 III.        List of documents required to be provided by bidders as part of their submission.

                IV.        Detailed, clear and complete specifications for the goods, works or services required.

                  V.        Technical Assessment Criteria (Optional).

                VI.        Quantities of goods or bill of quantities for works, delivery terms, location and timeframe for performance.

               VII.        Foundations terms and conditions with a request that the invited Supplier indicates, as part of its submission, acceptance in by stamping the terms and conditions.

 

 

9.3 Public Tender documents must contain the following:

 

                    I.        Clear and complete instructions to bidders regarding the procedures for submission of the Offers; with the closing date for receipt of the Offers.

                  II.        List of documents required to be provided by bidders as part of their submission.

                 III.        Detailed, clear and complete specifications for the goods, works or services required.

                IV.        Technical Assessment Criteria (Optional).

                  V.        Quantities of goods or bill of quantities for works, delivery terms, location and timeframe for performance.

                VI.        Request for Initial Bank guarantee (Bid Bond).

               VII.        Foundations terms and conditions with a request that the invited Supplier indicates, as part of its submission, acceptance in by stamping the terms and conditions.

If samples of goods offered are required as part of the evaluation, the Bid Documents must state the quantity, size and other detailed specifications for the required goods, as well as the description of the tests that will be applied. The Bid Documents shall also clearly state that samples will be provided free of charge and they are usually not returnable, unless it is requested otherwise by the Supplier to return them at his own expense with their as-is condition.

 

10.       TRANSMISSION OF RFQs/BIDS DOCUMENTS AND SUBMISSION OF OFFERS

 

10.1             For Direct Purchase:

  The Buyer will send the specifications of the requested items using email (followed by a telephone call to inform the Supplier) to the selected Supplier asking him to quote.

  The Supplier shall acknowledge receipt and confirm his intention to respond to the request.

  The Suppliers submission will be via email or courier by sending his stamped quotation before the closing date.

  The Buyer confirms receipt of the Suppliers Quotation by replying to the Suppliers email.

 

10.2             For RFQs:

  The Buyer will send the RFQ Documents using email (followed by a telephone call to inform Suppliers) to all selected Suppliers simultaneously and separately.

  Each Supplier shall acknowledge receipt and confirm his intention to respond to the RFQ.

  Suppliers submission will be via email or courier by sending their stamped Quotations before the closing date.

  The Buyer confirms receipt of the Suppliers Quotations by replying to Suppliers email.

 

10.3             For Low-Value Tender and Limited Tender:

  The Buyer will send the ITB along with the Bid documents using email (followed by a telephone call to inform Suppliers) to all selected potential Bidders simultaneously and separately. The suppliers may also visit the Foundations office to collect the Bid documents when required.

  Each Supplier shall acknowledge receipt and confirm his intention to participate in the Tender.

  Suppliers submission will be in the form of a sealed envelope and in accordance with the Bid Documents, to be delivered to the Foundations office to the attention of the Procurement Unit before the closing date.

  In case if the ITB is conducted in different location other than the main office, the Suppliers will submit their Offers to the location specified in the Bid Documents, to attention of the Procurement Unit, and the Foundation representative in the branch office will be responsible for dispatching the Bid packages received to the Procurement Manager in the main office.

  The Buyer confirms receipt of the Bid package delivered by the Suppliers using the Bid Submission Sheet which shall be maintained by the Buyer to record all Bid packages received.

 

10.4             For Public Tender:

  The Invitation to Bid (ITB) will be announced and advertised to public requesting Suppliers to participate either via newspaper or website or both.

  Interested Supplies may visit the Foundation office to collect Bid Documents in the form of soft copy on a CD; otherwise, they can access the website of the Foundation specified in the Invitation to Bid advertisement to download the Bid Documents.

  Suppliers submission will be in the form of a sealed envelope and in accordance with the Bid Documents, to be delivered to the Foundation office to the attention of the Procurement Unit before the closing date.

  In case if the ITB is conducted in different location other than the main office, the Suppliers will submit their Offers to the location specified in the Bid Documents, to the attention of the Procurement Unit, the Foundation Representative in the branch office will be responsible for dispatching the Bids packages received to the Procurement Manager in the main office.

  The Buyer confirms receipt of the Bid package delivered by the Suppliers using the Bid Submission Sheet which shall be maintained by the Buyer to record all Bid packages received.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11.       GENERAL RULES FOR TRANSMISSION AND SUBMISSION OF RFQs/BIDs DOCUMENTS

 

11.1             Closing Date for Offers Submission:

The closing date for the submission of Quotations/Bids will be determined by the Buyer in consultation with the Requester, taking into account the delivery requirements, the complexity of the procurement activity, the urgency of the request and the need to provide Suppliers with adequate time to prepare and submit their Quotations/Bids.

Quotations/Bids received after the closing date will not be considered. All late offers will be returned to their respective Suppliers. Also, Bid Offers which are not submitted in sealed envelopes will not be considered.

11.2             Contact with Invited Suppliers during the ITB Period:

During the ITB period, the Suppliers may request additional information or clarifications. The Buyer will prepare and dispatch written replies to Suppliers queries, and make all replies known, together with the text of the queries, to all invited Suppliers. All communication with invited Suppliers during the ITB period shall be documented.

All communications with the Suppliers shall be channeled through Procurement Unit.

11.3             Closing Date Extension:

The Buyer, in consultation with the Requester, may also extend the closing date for submission of Offers if it is deemed appropriate to allow invited Suppliers to submit their Offers.

Requests by Suppliers to extend the closing date for submission of Bids may also be considered and granted by the Buyer after consultation with the Requester.

Extensions of the closing date are permitted only before reaching the closing date, provided that no Offers have been received from the invited Suppliers.

11.4             Modification of Bid Documents:

If it becomes necessary before the closing date to modify Bid Documents in any way, an amendment will be issued to all invited Suppliers. The Buyer will evaluate whether sufficient time remains for invited Suppliers to consider the amended Bid Documents. If the remaining time is not considered sufficient, the Buyer may also extend the closing date after consultation with the Requester.

11.5             Safeguarding of Submitted Bids:

The Buyer is responsible for ensuring that submissions received are kept securely to ensure their confidentiality pending the closing date of the ITB, i.e. not to be opened before the closing date/time.

11.6             Cancellation of ITB:

It may become necessary to cancel the ITB prior to or after the closing date, for example, if the goods, works or services are no longer needed, the requirements change substantially, funding is no longer available or continuation of the ITB is no longer in the best interests of the Foundation. In this case, the Buyer will notify all invited Suppliers that the ITB has been cancelled, mentioning the reasons for the cancellation.

11.7             Mis-Tenders:

During the evaluation process, the Buyer may declare a mis-tender. In the following cases:

  The Buyer will inform the Requester of the reasons for the decision, documenting the reasons.

  The Buyer will also notify the Suppliers who submitted Offers that a mis-tender has been declared.

  The Buyer will make a recommendation to the Requester regarding the appropriate course of action following a mis-tender which may include a new ITB, direct negotiations, or any other appropriate actions.

  A mis-tender may be declared in, but is not limited to, the following situations:

o   No Offers have been received;

o   All Offers are considered to be excessive in relation to normal market prices;

o   It is determined that the Bid Documents did not provide the information required to allow Suppliers to submit Offers meeting the requirements of the Foundation or to allow the Foundation to equitably evaluate the Offers;

o   It is ascertained that the distribution of the Bid Documents was not consistent with a transparent procurement process or did not allow invited Suppliers adequate time to submit Offers.

 

 

 

 

 

12.       OPENING BIDS SUBMISSIONS

 

12.1             Bid Opening Committee Establishment (Applicable Only to Tenders):

After the closing date and receiving all Suppliers submitted Bids (including those Bids submitted to branch offices and need to be delivered to the Main Office), a Bid opening committee shall be formed by the EM or his delegated representative consisting of at least three (3) members: The Buyer, the Project Manager (Requester) or his/her representative and a member from the project team requesting the services, preferably with a technical background of the Tender specifications.

The Bid Opening Committee will be responsible for opening the Bids, examining the Bids submission, and filling in the Bid Opening Form.

Each member of the Opening Committee shall sign the Bid Opening Form ensuring that all Bids submission are checked for compliance, conformity, and completeness.

The technical part of the Bids submission will be distributed to the Technical Evaluation Committee for technical evaluation using the Technical Documents Transmittal Form. While the commercial Offers shall remain under the custody of Procurement Unit.

12.2             Suppliers Request for Additional Information and/or Documents:

Modification of an Offer by the Supplier will NOT be accepted after Bid opening. The Buyer may, however, agree to accept additional or clarifying information from Suppliers prior to the final award provided that the additional or clarifying information will not negatively impact the transparency or fairness of the process.

Circumstances where acceptance of additional information/document may be considered include the following:

  To rectify errors in totaling, whereby the unit prices quoted will govern, except in the case of apparent clerical errors in unit price;

  To provide information requested in the Bid Documents but omitted in the submission and does not affect the price or specifications (e.g. Commercial registration, profile, evidence of quality certification);

  To provide clarification of information in the submission which does not affect the price or materially modify the specifications.

 

 

 

 

 

 

13.       BIDS EVALUATION

 

Evaluation of Bids/Offers will be carried out to obtain the lowest Offer among the technically qualified Suppliers, in the fulfillment of Foundation requirements. The evaluation process shall be transparent while maintaining appropriate confidentiality, and the evaluation shall be fair, reasonable, objective and in accordance with the established evaluation criteria and evaluation methodology set forth in the Technical Evaluation Sheet. All steps in the evaluation of Bids shall be appropriately documented.

Evaluation of Offers is a shared responsibility of the Procurement and the Requester, assisted by technical representative from the project requesting the service, if applicable. All personnel involved in evaluation of Offers will maintain the transparency, fairness and confidentiality of the evaluation process.

13.1             Evaluation Criteria & Methodology:

Evaluation criteria and the methodology for Bids, to be used for evaluation and any weighting, scoring or mandatory requirements to be assigned to the evaluation criteria, shall be established by the Requester in the form of Technical Evaluation Sheet, and shall be reviewed by the Procurement Unit prior to the issuance of the ITB for any comments.

The selection of evaluation methodology will be determined by the type, value and complexity of the purchase requirements. It may use the cost as a single criterion (e.g. RFQs), or assign points or relative weights to the evaluation criteria to determine the most technically qualified Supplier (e.g. Tenders).

Technical passing score for specific Tenders where quality and delivery of services are crucial can be increased up to 70%, while the normal technical passing score is 50%.

Elements such as price, quality, availability and Suppliers experience and capacity shall be taken into consideration when developing the evaluation criteria.

The proposed evaluation criteria and methodology shall aim to ensure the selection of technically qualified Supplier who offers the lowest cost to the Foundation.

Only the methodology and criteria stated in the Technical Evaluation Sheet will be taken into account during the evaluation while all criteria shall be applied equally to all offers.

The Foundation reserves the right to award more than one Supplier for the ITB, and disqualify Suppliers based on documented prior poor performance, including but not limited to poor quality of services provided, late delivery or unsatisfactory performance. The Foundation also reserves the right to have further discussions/negotiations with the awarded Supplier prior to issuance of the Contract.

13.2             Technical Evaluation Committee Establishment (Applicable Only to Tenders):

A Technical Evaluation Committee shall be formed by the EM or his delegated representative consisting of at least three (3) members: The Project Manager (Requester) or his/her representative and a member from the project team requesting the services, and it is preferable that he/she has a technical background of the Tender specifications, and any other member(s) elected by the EM. A member may be added to the Technical Evaluation Committee from outside the Foundation if there is a need for certain expertise.

The Technical Evaluation Committee shall sign the Conflict of Interest Declaration Form prior to conducting the technical evaluation exercise.

The Technical Evaluation Committee will conduct a technical evaluation for Bids submission in accordance with the criteria and methodology previously set forth in the Technical Evaluation Sheet.

Procurement Unit shall provide any required support to the Technical Evaluation Committee.

 

13.3             Direct Purchase Evaluation:

  Suppliers Quotation will be received by email in response to the request sent by the Buyer.

  The invited Supplier is assumed to be technically qualified and able to meet the requirements. Therefore, the evaluation of the Quotation shall be based on ensuring that the Quotation value is not higher than the estimated value of the request. Otherwise, further negotiations are required with the Supplier to seek proper Quotation. Or alternatively, the Buyer shall look for another Supplier with proper Quotation.

  The Buyer will issue an Acceptance Letter based on the considered Quotation received from the Supplier, and get this letter reviewed by the Procurement Manager and signed by the EM.

  The Buyer will send the letter to the Supplier by email to notify him of accepting his quotation and asking him to deliver the goods/services requested.

 

13.4             RFQs Evaluation:

  Suppliers Quotations will be received by email in response to the request sent by the Buyer.

  In RFQs, all invited Suppliers are assumed to be technically qualified; therefore, the evaluation criteria for Quotations are based on the lowest price quoted meeting the requirements.

  The Buyer will issue a Commercial Evaluation Sheet based on the Quotations received determining the awarded Supplier, and get this sheet reviewed and signed by the Procurement Manager and Project/Department Manager.

  If fewer than three Quotations were obtained, the Buyer will document the reasons for not obtaining three Quotations.

  The Buyer will prepare the Award Letter signed by the EM to be sent to the awarded Supplier to notify him of accepting his quotation and that a contract will be prepared to deliver the goods/services requested.

  After signing the contract with the awarded Supplier, a notification email shall be sent to other invited Suppliers who submitted Quotation to notify them that their Quotations were not competitively the lowest price.

 

13.5             Tenders Evaluation:

13.5.1   Technical Evaluation:

 

  After Bid opening, the Technical Evaluation Committee will receive the Bid technical documents for the purpose of technical evaluation.

  The Technical Evaluation Committee will conduct a technical evaluation in accordance with the criteria and methodology previously set forth in the Technical Evaluation Sheet.

  Once the Technical Evaluation Committee finalizes the technical evaluation process, they will provide the Buyer with the Technical Evaluation Sheet signed by the committee, identifying which Suppliers are technically qualified and therefore whose associated Offer will be considered for commercial evaluation stage.

  The Buyer will review the provided Technical Evaluation Sheet to ensure that the assessment is consistent with the criteria specified in the Bid Documents.

13.5.2   Commercial Evaluation:

 

  The Buyer will then, conduct a commercial assessment (ONLY for those who have been successfully deemed technically qualified) based on the items and quantities pre-determined in the Bid Documents and the prices that have been provided by the Suppliers.

  The Buyer will prepare a Commercial Evaluation Sheet and get it reviewed and approved by the Procurement Manager and validated by the Internal Auditor.

  Accordingly, the Buyer will prepare a Tender Evaluation Report based on the approved Technical Evaluation and Commercial Evaluation sheets which includes a summary of the tender process and a recommendation to award, and get it approved by the relevant authorized parties.

  Consequentially, the Buyer will prepare the Award Letter signed by the EM to be sent to the awarded Supplier to notify him of the awarding of his Bid provided the delivery of the Bank Guarantee letter for Execution (if required), and hence a contract will be prepared to deliver the goods/services required accordingly.

 

13.5.3   Contacting Suppliers during Bid Evaluation Stage:

During the evaluation, the Buyer is the Foundations sole point of contact with Suppliers who request additional information or clarification. The Buyer may request one or more Supplier(s) to provide additional information during Bid evaluation regarding their submissions. Suppliers responses can be sent via email directly to the Buyer, who will forward them to the Requester if the information is related to technical aspects.

 

14.       CONTRACT PREPARATION AND AWARD

Upon sending the Award letter to the awardee. The Buyer shall prepare and finalize the Contract in accordance with the Bid Documents which have been already approved by the Supplier during the bidding process.

The Contract document element in the Bid Documents will be updated as appropriate, incorporating those elements of the selected Suppliers technical and commercial proposals, to arrive at a stand-alone contract document, available for execution by both parties. The Contract document is required to be all inclusive, and any referenced documents will be included as part of the contract documentation.

 

Signature of Contracts:

The Contract must be signed by Foundations Executive Manager (EM) and the Supplier. The Foundations Executive Manager shall sign the Contract first. The number of signed originals of the Contract is two originals. However, a minimum of two originals must be prepared, one for the Supplier and one for the Foundation.

Upon Contract signature by both parties, a copy of the contract will be provided to the Requester and another copy to be provided to the Foundations Procurement Unit for their reference. The Original contract file shall be kept in Finance Unit for payment and archiving.

After signing the contracts by both parties, the Buyer shall contact unsuccessful Bidders to retrieve their bid bonds from the Foundation if any.

 

15.       CONTRACT EXECUTION

 

Once the contract is signed by both parties, the Requester shall contact (with Buyers assistance) the Supplier to provide the goods, works or services set forth in the contract to the project site, and to confirm and clarify all relevant contract coordination aspects.

Throughout the contract duration, the Requester shall follow up the contract execution, which covers the following areas as applicable, and as more specifically detailed in the contract and its related annexes:

  Management and reporting.

  Communications.

  Compliance with rules, instructions and procedures.

  Implementation, performance and evaluation.

  Scheduling and Delivery.

  Certificates, and guarantees of maintenance (if applicable).

 

16.       CONTRACT AMENDMENTS:

 

A Contract may require amendments after approval and issuance. An amendment is any change to a contractual terms & conditions which may or may not have an impact on the total value of the contract. Amendments may only be made to contracts which are not yet terminated or expired. Amendments to contracts will be made in writing and must be accepted and signed by both parties.

It may be necessary to modify commercial or other aspects of an existing Contract or extend the expiration date to allow the completion of works or services or otherwise extend the Contract term where not otherwise provided for as a renewal.

Generally, an amendment request will be initiated by the Requester using the Contracts Amendment Form, but it may also be initiated by the Buyer or the Supplier. The Buyer, in consultation with the Requester, must in each case evaluate whether the requested modification would be best accommodated by an amendment or through a new contract.

 

 

 

17.       RECEIPT OF GOODS, WORKS AND/OR SERVICES:

 

17.1             Receipt & Inspection Committee Establishment (Applicable Only to Tenders):

 

A Receipt & Inspection Committee shall be formed by the EM or his delegated representative consisting of at least three (3) members: The Buyer, the Project Manager (Requester) or his/her representative and a member from the project team requesting the services, and it is preferable that he/she has a technical background of the tender specifications.

 

17.2             Receipt Reports

  Goods, works, and/or services Receipt Reports must be prepared upon actual receipt/delivery that confirms what is stated in the Contract.

 

  A Receipt & Inspection Committee shall check the quantities and specifications of the items supplied with Contract, ensuring that the items are safe and free from any defects or deficiencies.

 

  Goods and services that do not match the conditions and details mentioned in the Contract must NOT be received.

 

  For goods and food items that are distributed by the Foundation to the beneficiaries, a warehouse supply order must be made and the Supplier must ensure that the items adheres to the specifications specified in the Contract.

 

  In case if the items delivered do not conform with the specifications by less than 5% of the whole order, items should be returned to the Supplier. Otherwise, the whole items shall be rejected and the issue should be escalated to Procurement Unit for making a decision.

 

The reports required to close out the contract depend on the type of services provided, such reports templates are attached to this Manual for adherence and they are defined as follows:

 

  Receipt & Inspection Report: Only required for supplying services such as food baskets, Hygiene Kits, medicines, and medical supplies.

 

  Commissioning and installation Report: Only applicable in the provision of equipment such as installing a solar system or medical equipment in a health center.

 

  Site Handing Over and Initial & Final Handing Over Reports: Required in construction works such as rehabilitation services.

 

  Warranty certificate: Required in all contracts that include the provision of tools and/or equipment and must be stipulated in the contract and provided by Suppliers as per the terms and conditions of the contract.

 

  Maintenance Guarantee: Required in construction works and rehabilitation services and must be stipulated in the contract and provided by Supplier as per the terms and conditions of the contract, it comes in the form of a bank guarantee that shall be released back to contractor as per the terms set in the contract.

 

  Quality Assurance Certificate: Required only upon request from project representative for technical evaluation of Bid submission. It is not applicable during the delivery of goods/materials or closing out the Contract.

 

  Distribution Report: Required only when there is direct distribution of goods/materials to beneficiaries in the field such as food baskets or hygiene kits.

 

  Medical Supply & Medicines Delivery Receipt: Required when there are medical supplies and/or medicines to be delivered to health facilities, and acknowledgment of health facilities representative for delivery is required.

 

  Stock-In/Out Report (ONLY for Foundations Warehouses): Required when there are surplus of distributed goods/materials to be stored in the Foundations warehouse, or when Suppliers deliver the goods/materials directly to the Foundations warehouse as per the terms of the Contract.

 

18.       PROCUREMENT ACTION & CONTRACT CLOSURE:

 

Upon the completion and delivery of the goods, works and/or services by the Supplier, the Requester shall coordinate and issue a Receipt Report (Receipt & Inspection Report for the Supply of Goods, Commissioning & Installation Report for Equipment, Initial & Final Delivery Report for construction works) including the service provided or work done, certifying that the goods, works or services have been received and delivered properly. Eventually, an invoice for the service provided or work done shall be submitted by the Supplier to the Finance Unit.

The Requester shall provide the original copy of the Receipt Reports to Procurement Unit to verify the delivery of the goods/services in accordance with the signed Contract. The Procurement Action file shall be sent then to the Finance Unit to initiate payment, contract closure, and archival purposes.

The Buyer needs to consolidate all documents, receipts, and reports in accordance with the Documents Checklist Form.

 

The role of the Buyer at this stage is as follow:

 

  Follows up and obtains the receipt, delivery, inspection, handover, distribution reports and/or any other reports required based on the purchase type in accordance with the Documents Checklist.

  Cross-checks, reviews and ensures that the goods/materials delivered to the project field are matched and in accordance with the technical specifications.

  Documents all records needed as per the Documents Checklist for each Procurement Action and delivery to prepare payment of Suppliers invoices.

  Follows up the Suppliers payment with the Finance Unit.

  Acts as a focal point with Suppliers in terms of coordination and delivery of the requested materials/services.

The Requester shall also provide the Procurement Unit with the Supplier evaluation report for the performance of the contracted Supplier in delivering and performing the works and/services required.

 

19.       PAYMENT PROCESSING:

A complete file for each Procurement Request (PR) shall be delivered to the Project Accountant for review and to be validated by the Chief of Accounts. Subsequently, it shall be reviewed further by the Internal Audit in accordance with this Procurement Procedure Manual.

 

In case if further information and/or missing documents are required, the file shall be returned to the Buyer to complete the missing documents and/or advise on the required action.

 

The Finance Manager will then endorse the file for payment processing and send it to the Deputy/Executive Manager for final payment approval.

 

Payment must be made in accordance with the payment terms set out in the Contract.

20.       DOCUMENTS RECORDING & FILING

 

For a better management and follow up of Procurement Action a proper filing system has to be maintained in accordance with the Documents Checklist. A file for each Procurement Action should be developed to contain all documents being used.

 

The Procurement Action file shall be submitted thereafter to the Finance Unit for payment processing settlement and archiving.

The Procurement Unit must prepare a file for each Procurement Action. A typical standalone Procurement File would contain the following, in order, separated by dividers for easy reference:

  Purchase Requisition Form;

  Invitation Letters for ITB or Tender (emails sent for Direct Purchase/RFQs);

  Bid submission sheet.

  Original offers from responsive Suppliers, including all related correspondence;

  Bid opening report.

  Technical Evaluation Report.

  Commercial Evaluation of offers or approved waiver form giving justification for Supplier selection and award price,

  Justification for the lack of competition, in case that less than the specified number of bids were received (Derogation Form);

  Tender Evaluation Report (Recommendation for award).

  Award Letter.

  Bank Guarantee letters, if any.

  Signed contract by both parties and any associated amendments.

  Copy of the Receipt & Inspection Reports (for goods) or Handover Report (for works or services);

  Copy of the Suppliers invoice;

  Any other documents and correspondence related to the Bid or Contract.

The above documents must also be archived in electronic format in a secured IT drive or archiving software system (e.g. ERP).

The Procurement Unit must document any anomalies (e.g. using Donor procedures) or deviations from the policy or procedures in a Procurement Action with a signed explanatory note to the file.

All documentation must be in printed and electronic format and must be maintained to respond to future questions from reviewers or auditors.

 

21.       PROCUREMENT AT REGIONAL OFFICES AND BRANCHES

 

All Procurement Actions are the responsibility of the Procurement Unit at the main office. Regions and branches offices are not allowed to procure goods and services directly without the supervision of Procurement Manager.

 

22.       DECLARATION

 

This Procurement Procedure Manual supersedes all previous manuals and procedures previously set.

The review of this guide was done by the Procurement Unit, verified by the Deputy Excusive Manager and approved by the Executive Manager.

This manual should be used as a sole guideline and source of information for Foundation staff working in the Foundations procurement and supporting departments handling procurement processes. This manual can also be used by Foundations team members, Partners and Donors as a source of reference.

Any internal audit requests related to Procurement Actions shall adhere to this manual and be performed in compliance with it.

Any changes or alterations to this Manual shall be conducted by the Procurement Unit and subjected to the review and approval of the Executive Manager.

This Manual shall be distributed to each department/program within the Foundation for their awareness and adherence.

For any comments on this Manual please contact Procurement Unit.