Procurement Management Version 1.3

SUPPLY CHAIN
PROCUREMENT MANAGEMENT
OPERATIONS HANDBOOK
Date: 30-09-2020
Valid from: 01-10-2020
Version: 1.3
This Operations Handbook describes the overall DRC Procurement policies, principles,
procedures & guidelines applicable to all DRC Operations and Implementing Partners for
the procurement of humanitarian goods, services & works.
The overall purpose of the Handbook is to ensure compliance by executing commonly

accepted good procurement practices with a focus on Best value for Money.
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Danish Refugee Council • Operations Handbook
SUPPLY CHAIN • PROCUREMENT HANDBOOK
Date: 30-09-2020 • Valid from: 01-10-2020 • Version: 1.3 © Page 1 of 126
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CONTENTS
INTRODUCTION ............................................................................................................................................................... 5
PRINCIPLES & POLICY STATEMENTS ...................................................................................................................................... 6
BEST VALUE FOR MONEY .......................................................................................................................................... 6
FAIRNESS, INTEGRITY & TRANSPARENCY ....................................................................................................................... 6
BEST INTEREST OF THE ORGANIZATION.......................................................................................................................... 8
ROLES & RESPONSIBILITIES ................................................................................................................................................. 8
SEGREGATION OF DUTIES .......................................................................................................................................... 8
KEY STAFF & ROLES IN THE PROCUREMENT PROCESS ........................................................................................................ 9
PROCUREMENT FLOWCHART............................................................................................................................................. 14
ABOUT THIS HANDBOOK .................................................................................................................................................. 15
PURPOSE & APPROACH ........................................................................................................................................... 15
DRC’S APPROACH TO PROCUREMENT ........................................................................................................................ 15
CORE HUMANITARIAN STANDARDS ............................................................................................................................ 15
DEFINITIONS ........................................................................................................................................................ 15
SCOPE & APPLICATION ........................................................................................................................................... 17
ACRONYMS, TERMINOLOGY & CONVENTIONS USED ....................................................................................................... 19
QUALITY STANDARDS, MOPS & COMPLIANCE TOOLS .................................................................................................... 20
INTERPRETATION & MAINTENANCE ............................................................................................................................ 20
QUALITY STANDARD 1 – ETHICAL STANDARDS .................................................................................................................. 21
MINIMUM OPERATIONAL PROCEDURES & COMPLIANCE TOOLS ........................................................................ 21
ETHICAL CONDUCT OF PROCUREMENT STAFF................................................................................................................ 22
CONFLICT OF INTEREST ............................................................................................................................................ 22
ETHICAL BEHAVIOUR OF SUPPLIERS ............................................................................................................................ 23
GIFTS & HOSPITALITY – FRAUD & CORRUPTION ............................................................................................................ 23
QUALITY STANDARD 2 – ORGANIZATION OF PROCUREMENT IN DRC ...................................................................................... 27
OVERVIEW OF THE PROCUREMENT PROCESS ................................................................................................................ 29
PROCUREMENT PLANNING, IDENTIFICATION & SUBMISSION OF THE REQUIREMENTS .............................................................. 29
SUPPLIER MANAGEMENT ........................................................................................................................................ 29
SOLICITATION, TENDERING & BIDDING: ...................................................................................................................... 30
BID EVALUATION & CONTRACT AWARD: ..................................................................................................................... 30
CONTRACT MANAGEMENT & CLOSURE: ...................................................................................................................... 30
PROCUREMENT DOCUMENTATION & FILING................................................................................................................. 30
PURCHASE REQUISITIONS & PROCUREMENT PLANS........................................................................................................ 34
PROCUREMENT CONTRACT(S) / PURCHASE ORDER(S)..................................................................................................... 35
GOODS RECEIVED NOTE / CERTIFICATE OF COMPLETION ................................................................................................. 36
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PROCUREMENT TRACKING SYSTEMS ........................................................................................................................... 36

BASIC COMPLIANCE MEASURES ................................................................................................................................ 36
QUALITY, EFFICIENCY & EFFECTIVENESS ...................................................................................................................... 37
PROCUREMENT TEAM STRUCTURE GUIDANCE .............................................................................................................. 37
PROCUREMENT AUTHORITY & ACCOUNTABILITY ........................................................................................................... 37
QUALITY STANDARD 3 – SUPPLIER, SOURCING REGISTRATION & MANAGEMENT ....................................................................... 39
SUPPLIER SOURCING GUIDANCE ................................................................................................................................ 40
EXPRESSION OF INTEREST ........................................................................................................................................ 40
VENDOR REGISTRATION .......................................................................................................................................... 41
SUPPLIER DUE-DILIGENCE & VETTING ........................................................................................................................ 41
DRC APPROVED SUPPLIER LIST ................................................................................................................................. 42
ACTIVE SUPPLIERS MANAGEMENT & PERFORMANCE EVALUATION..................................................................................... 43
SUPPLY BASE OPTIMIZATION GUIDANCE ...................................................................................................................... 44
QUALITY STANDARD 4 – PROCUREMENT STRATEGY & PLANNING .......................................................................................... 46
PROCUREMENT PLANNING & -CONSIDERATIONS ........................................................................................................... 48
CENTRALIZED & CONSOLIDATED PROCUREMENT GUIDANCE ............................................................................................. 48
PLANNING, IDENTIFYING & SUBMITTING THE REQUIREMENTS ........................................................................................... 49
COUNTRY PROCUREMENT PLAN ................................................................................................................................ 49
PROJECT PROCUREMENT PLANS ................................................................................................................................ 50
CONSOLIDATION OF REQUIREMENTS GUIDELINES .......................................................................................................... 50
REQUIREMENTS DEFINITION & SPECIFICATIONS ............................................................................................................. 51
PLANNING & SUBMITTING THE REQUIREMENT .............................................................................................................. 52
THE PURCHASE REQUISITION PROCESS ........................................................................................................................ 52
STANDARDIZATION OF EQUIPMENT CONSIDERATIONS ..................................................................................................... 54
USING MULTIPLE SUPPLIERS..................................................................................................................................... 54
NATIONALITY & COUNTRY OF ORIGIN RULES ................................................................................................................ 54
QUALITY STANDARD 5 - SELECTION OF THE PROCUREMENT METHOD ...................................................................................... 56
DRC PROCUREMENT METHODS ................................................................................................................................ 57
DEROGATIONS ...................................................................................................................................................... 61
STANDING EXCEPTIONS TO THE STANDARD PROCUREMENT METHODS ................................................................................ 65
QUALITY STANDARD 6 - SOLICITATION ............................................................................................................................ 68
SOLICITATION, TENDERING & BIDDING ....................................................................................................................... 70
FIRM EVALUATION CRITERIA – NO CHANGE DURING PROCESS ........................................................................................... 70
SETTING THE CONTRACT AWARD CRITERIONS ............................................................................................................... 70
TYPES OF SOLICITATION ........................................................................................................................................... 71
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IN-FORMAL TENDER PROCESSES ................................................................................................................................ 71

FORMAL TENDER PROCESSES .................................................................................................................................... 73
SINGLE STAGE - TWO-ENVELOPE TENDERING ............................................................................................................... 75
REQUEST FOR PROPOSAL USAGE ............................................................................................................................... 76
THE TENDER TIMETABLE.......................................................................................................................................... 78
PURCHASE AGREEMENTS ........................................................................................................................................ 78
TENDERING VIA EMAIL ............................................................................................................................................ 80
TENDER PUBLICATION VIA THE DRC PUBLIC WEBSITE ..................................................................................................... 82
TENDER QUESTIONS & ANSWERS DURING THE TENDER PERIOD ........................................................................................ 83
QUALITY STANDARD 7 – MANAGEMENT OF SUBMISSIONS ................................................................................................... 84
MANAGING THE TENDER PROCESSES .......................................................................................................................... 85
THE TENDER BOX .................................................................................................................................................. 86
SAMPLES ............................................................................................................................................................. 86
INSUFFICIENT BIDS ................................................................................................................................................. 87
PROCUREMENT COMMITTEE .................................................................................................................................... 88
TENDER OPENING COMMITTEE & EVALUATION ............................................................................................................. 88
QUALITY STANDARD 8 – EVALUATION OF SUBMISSIONS ...................................................................................................... 91
BID EVALUATION & CONTRACT AWARD ...................................................................................................................... 92
TENDER OPENING & BID EVALUATION ........................................................................................................................ 92
TECHNICAL & COMMERCIAL EVALUATION OF SUBMISSIONS ............................................................................................. 92
EXCLUSION CLAUSES .............................................................................................................................................. 93
QUALITY STANDARD 9 – PROCUREMENT PROCESS REVIEW & DECISIONS................................................................................. 94
REVIEW OF PROCUREMENT PROCESS & CONTRACT AWARDS ............................................................................................ 94
QUALITY STANDARD 10 – AWARD ................................................................................................................................. 96
CONTRACT AWARD ................................................................................................................................................ 97
NEGOTIATIONS ..................................................................................................................................................... 97
COMPLAINTS & APPEALS ......................................................................................................................................... 98
QUALITY STANDARD 11 – CONTRACTUAL INSTRUMENTS ..................................................................................................... 99
CONTRACTS, -MANAGEMENT & -CLOSURE ................................................................................................................ 100
TYPES OF CONTRACT ............................................................................................................................................ 100
STANDARD CONTRACTS ......................................................................................................................................... 101
QUALITY STANDARD 12 - PROCUREMENT & LOGISTICAL CONSIDERATIONS ............................................................................ 102
MINIMUM OPERATIONAL PROCEDURES & COMPLIANCE TOOLS ...................................................................... 102
LOGISTICAL CONSIDERATIONS ................................................................................................................................. 103
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RECEPTION & INSPECTION ..................................................................................................................................... 103

QUALITY STANDARD 13 – CONTRACT MANAGEMENT ....................................................................................................... 105
MANAGING PAYMENT .......................................................................................................................................... 105
CONTRACT AMENDMENT....................................................................................................................................... 108
SUPPLIER DEFAULT .............................................................................................................................................. 108
CONTRACT TERMINATION ...................................................................................................................................... 109
CONTRACTS CLOSURE ........................................................................................................................................... 109
QUALITY STANDARD 14 – ADAPTIONS & SPECIAL CONDITIONS FOR EMERGENCY MODE ........................................................... 110
EMERGENCY PROCUREMENT PROCEDURES ................................................................................................................ 111
QUALITY STANDARD 15 – ADAPTIONS & SPECIAL CONDITIONS FOR REMOTE MANAGEMENT MODE ............................................ 118
QUALITY STANDARD 16 – TRANSVERSE TOPICS ............................................................................................................... 120
ENVIRONMENTAL CONSIDERATIONS & SOCIAL RESPONSIBILITY ....................................................................................... 120
PROCUREMENT QUALITY MANAGEMENT ................................................................................................................... 120
PROCUREMENT RISK MANAGEMENT ........................................................................................................................ 121
SUPPLY CHAIN RISK MANAGEMENT: ........................................................................................................................ 121
SUBJECTS FOR FUTURE INCLUSION ........................................................................................................................... 121
ANNEXES: – TOOLS, STANDARDS, TEMPLATES & CHARTS .................................................................................................. 123
INTRODUCTION
This handbook sets out the DRC’s policy for the procurement of humanitarian goods, services and works. It outlines
DRC’s positions, quality standards, minimum operational procedures, and compliance tools on:
1. Ethical Standards
2. Organization of Procurement in DRC
3. Supplier Sourcing, Registration & Management
4. Procurement Strategy & Planning
5. Tendering process
6. Contractual Instruments
7. Procurement & Logistics’ Considerations
8. Contract Management
9. Adaptions & Special Conditions for Emergency Mode
10. Adaptions & Special Conditions for Remote Management Mode
11. Transverse Topics
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PRINCIPLES & POLICY STATEMENTS

DRC is committed to a fair, open, and transparent procurement process in line with the best practices for procurement
in international non-governmental organizations. DRC adheres to well established public procurement principles that
supports program’s ability to deliver on commitments and accountability to donors and those we serve.
DRC considers the following general principles when undertaking its procurement activities:
• Best value for money

• Fairness, integrity, and transparency
• Effective competition
• The best interest of DRC, donors, and beneficiaries.
BEST VALUE FOR MONEY

Best value for money (BVFM) means selecting offers which present the optimum combination of commercial and
technical factors.
Commercial factors include initial costs plus total cost of ownership such as maintenance cost & disposal cost. Best
value for money needs careful evaluation as goods with the cheapest purchase price may not be cost effective
throughout its lifecycle.
Other factors that may influence BVFM are adherence to standard contract clauses, standard payment terms and
other administrative cost drivers.
Technical factors include appropriate quality, ease of use, ease of maintenance, recycling, sustainability, and other
parameters which can include social, environmental, or other strategic objectives which meet the end-user needs.
Best value does not mean procuring lowest cost, but rather represents the best return on the investment. BVFM can
therefore vary for each procurement according to the needs of the program and beneficiaries.
Examples of such factors include
 The quality, reliability & durability/sustainability

 Delivery time, storage arrangements
 After sale services, warranty/guarantee
 Need for Standardization of equipment
 Supplier qualification, experience, and reference checks.
 The realism of proposed costs or fees
DRC Contracts shall be awarded to the bidder offering the best value for money following a transparent and well-
documented process with clear and objective criteria supporting the procurement decisions.
FAIRNESS, INTEGRITY & TRANSPARENCY
FAIRNESS & NON-DISCRIMINATION

DRC commits to equal opportunity and fair treatment of all bidders - by sharing the same information with them at
the same time, providing the same deadlines, and avoiding favouritism or subjective decisions. All potential bidders
and suppliers shall enjoy equal opportunity and equitable treatment.
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Impartiality is a principle of justice holding that decisions should be based on objective criteria, rather than based on
bias, prejudice, or preferring the benefit of one person over another for improper reasons. An impartial process is a
fair one: in the context of procurement this means, for example:
• Establishing firm objectives and criteria for the award of contracts prior to releasing the solicitation to
market.
• Potential suppliers should be treated fairly and evaluated on the same basis, using the same criteria.
• Reasonable timeframes to respond to DRC requests.
• Acting appropriately to protect suppliers from collusion and fraud.
All these measures reinforce the integrity of procurement decisions made by DRC. Fairness also refers to behaviour
that is legally and ethically proper and unprejudiced.
INTEGRITY
DRC commits to upholding the integrity of the procurement processes: DRC shall be able to defend the implementation
of procurement in any given case regarding the solicitation, bidding, and award cycle to ensure that it adheres to the
principles of best value for money, fairness, integrity and transparency, efficient competition and the best interest of
DRC and its beneficiaries.
DRC further commits to strong moral principles, honesty and decency, truthfulness, and incorruptibility of our staff in
their day-to-day professional conduct. Procurement decisions that involve matters of environmental sustainability and
social development may also reflect our integrity as an organization.
Finally, the integrity and protection of the tender process, from start to bid opening is a paramount area of continued
focus and compliance.
TRANSPARENCY & ACCOUNTABILITY

Transparency means simply that nothing is unduly hidden. While procurement processes shall be conducted with
discretion, relevant information on procurement policies and procedures, as well as opportunities, shall be clearly
defined internally, and made public or shared in a timely manner with all interested parties. DRC commits to conducting
the procurement process in a manner that provides equal opportunity and free competition.
Accountability measures ensure that DRC personnel involved in the process will always act responsibly and in line with
DRC’s policies. All DRC staff is accountable for the regularity of actions undertaken by them during their official duties,
as reflected in the DRC Code of Conduct. DRC staffs who takes any action that is contrary to official policy and procedure
may be held personally responsible. This includes due care taken to ensure that public funds dispersed through
procurement activities are utilized solely for their intended use. Individuals holding a delegation of authority shall be
particularly careful to ensure their actions, or those undertaken by persons under their supervision, are following the
DRC policy and procedure.
CONFIDENTIALITY
DRC commits to ensuring that all procurement-related information is treated as confidential. This includes any
documentation or information that is part of the procurement process, which is not publicly available, and where any
disclosure of the documentation or information could:
 Place a Vendor or the Organization at a disadvantage
 Provide an unfair advantage to a vendor
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 OR harmfully reflect upon the reputation and integrity of the DRC Organization
EFFECTIVE COMPETITION & PROPORTIONALITY

DRC commits to actively seek and encourage competition using the broadest appropriate means - including and up to
global publication of tender notices across multiple media channels. Effective competition requires enough prospective
bidders, who act independently of each other, who have access to the same opportunity under the same conditions,
and where the opportunity results in enough quality offers. Reasonable competitive practices provide sufficient notice
to prospective bidders, applies comprehensive but not unduly restrictive specifications, and seeks economies of scale.
DRC will balance the competition requirement in proportion to the value of that contract. This is embodied primarily in
our procurement thresholds which dictate progressive levels of effort, complexity and time required in the solicitation
process as the value of procurement increases.
BEST INTEREST OF THE ORGANIZATION

DRC commits to ensuring the best interest of the Organizations and its beneficiaries as its ultimate objective. DRC shall
add value to the Organization and its beneficiaries in fulfilling their goals and objectives. DRC shall carry out its
procurement operations in a manner that best enables DRC and its beneficiaries to reach the objectives of the project
in compliance with the applicable procurement procedures.
The other principles largely cover this; however, the best interest of the Organization includes concepts such as the
image and reputation of DRC, promoting the Core Humanitarian Standards and DRC’s evidence-based approach
thereto.
ROLES & RESPONSIBILITIES
SEGREGATION OF DUTIES
Segregation of duties refers to the need to organize the procurement function based on the responsibilities for the
various steps in the procurement process to safeguard the integrity of the process and ensure that appropriate checks
and balances are maintained.
Segregation of duties is an important basic principle of internal control and shall be observed by all individuals
participating in the procurement processes.
The segregation separates the functions of the Requestor (the budget owner representative), the Purchaser
(Procurement), and the Payer of invoices (Finance), to provide appropriate organizational checks and balances and
ensure accountability. These various phases of the procurement process shall be carried out by separate functions as
per the following examples:
 The Requestor (i.e. Program)

 Identification of the requirement
 Approving the procurement initiation (Budget Owner)
 Provision of project code and budget line
 The Purchaser (i.e. The Procurement function)
 Processing of the Procurement Request
 Lead and drive solicitation process
 Contract management
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 The Payer (i.e. Finance)

 Logging of soft- / hard commitments
 Confirm commitment liquidity
 Invoice settlement
At a minimum, no less than three individuals shall be involved in carrying out the process (the Requestor, the Purchaser,
and the Payer). Under no circumstance should the functions be carried out by the same person, and ideally the persons
should have independent reporting lines to the Head of Office (CD/RD). The functions of the Purchaser and the Payer
shall always be completely separated and carried out by separate individuals. The receipt function should be
undertaken by a third person.
Where, for exceptional reasons due to minimal staffing levels in very small DRC Area Offices, complete separation of all
the functions cannot be ensured, this shall be properly documented on file and approved by the next higher authority.
In such cases, as a minimum, a segregation of the functions mentioned shall be established, by ensuring that even
though carried out by the same individual, the individual is performing the tasks in the capacity of various functions,
there is adequate and immediate oversight on every transaction by a responsible staff member of a higher position,
either in person or remotely (via email). Under no circumstance shall the separation between the Purchaser and the
Payer be waived.
KEY STAFF & ROLES IN THE PROCUREMENT PROCESS

As a supplement to the overall definitions of roles and responsibility, the key responsibilities are outlined below:
This is based on a generic team structure. Exact job titles may not exist in all Legal Entities , the responsibilities will need
to be allocated as appropriate.
Notwithstanding the below, ALL staff involved in the DRC procurement process share a joint responsibility for the
transparency; probity; documentation (paper trail); accountability and confidentiality of the process.
Country Director  Overall responsible for the effective execution of qualitative & compliant
(CD) procurement processes in line with DRC’s & donor compliance standards.
 Ensure allocation of adequate resources and capacity to manage the Procurement
processes in line with the above-mentioned responsibility and project objectives.
 Establish & maintain appropriate management controls & internal control measures
to ensure compliant processses.
 An Internal Delegation of Responsibility and Authorization is authorized, issued, and
kept updated, and all relevant staff is aware of it.
 All Budget Holders are authorised on the IDRA and /or where relevant hold the
Power of Attorney required for contract signing, and are aware of their
responsibilities and observe them in relation to procurement.
 An effective complaints and appeals system for procurement is in place and that all
complaints and appeals receive due care and attention.
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 Coherent procurement functions are established and maintained throughout the

country-wide organizational structure.
 Tender Opening committee is appointed. If relevant, participate as a chairperson in
TOC.
 All donor contracts are checked for requirements relevant to procurement and that
DRC procurement observes full compliance with these.
 Ensuring that sufficient attention is paid to procurement planning in new proposal
development and the award management cycle, to support the feasibility of on-time
delivery, best value for money and meeting the overall program objectives
Program Manager.  Requirements identification and specifications for their projects requirements,
(PM) including the submission, as appropriate, of timely specifications, quantity, and
delivery: -terms, -point and schedule.
 Project Procurement Plans are formulated at proposal development stage, included
in the proposal submission, and reviewed and maintained during the Project kick-off
/ roll-out and monitoring and coordination meetings with procurement are
established accordingly.
 Ensure that Project procurement requirements are allocated reasonable and
realistic timeframes for the procurement activities, including contingency.
 Procurement is based on justifiable requirements, and is in line with the objectives
of the project or program and donor requirements.
 Completed Purchase Requisitions are raised for the goods/services/works required
by their projects with appropriate authorization, and are submitted to Procurement
on-time.
 Participation in Tender Opening Committees, when relevant and appointed by the
Country Director.
Head of Support  The HOSS assumes the identical responsibilities to the Program Manager for all that
Services procurement which is unrelated to a grant, project, or donor. This might include, for
example, office consumables, utilities, and Internet service, as well as outsourced
administrative services such as travel agents, guarding, grounds maintenance; and
the annual procurement planning relevant for these costs.
Finance Manager  All account codes referenced in procurement documentation are accurate and
correct.
 Contractual payment terms are adhered to; supplier invoices are processed per the
contractual Terms & Conditions; any problems encountered with payment on DRC’s
side are proactively addressed and resolved.
 Proper documentation is in place when paying suppliers.
 Participation in Tender Opening Committees, when appointed by the Country
Director.
 Note that the Finance Manager’s responsibilities regarding procurement do not

extend to or substitute for the budgetary oversight required by the Budget Holder.
Budget holders should never assume that budgetary considerations have been
addressed based on a financial review signature on procurement documentation.
Budget Owner The goods/services/Works required by the project and identified in the budget are

(Typically, the Program adequately and appropriately budgeted (e.g. related costs such as air-road-sea
Manager or HOSS)
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transport, storage, running, or repair & maintenance costs, and potential insurance
costs).
 Project requirements are proactively outlined, maintained, and coordinated with the
procurement function in a project Procurement Plan accordingly.
 Procurement Requisitions or confirmed Project Procurement plans are authorized in
line with the appropriate authorization given, and that the budgeted funds are
available for the goods/services/works.
 Assessment of project risk to ensure that no spending commitment is made that
might be ineligible, that extends beyond an appropriate timeframe, or that occurs at
an inappropriate time in the project lifecycle.
 Budget Owners shall only approve expenditures that falls within their authority as
specified in the IDRA; commitments exceeding their authority shall be escalated for
authorization by a more senior Budget Owner. Budgetary approval by email is
acceptable provided it is from an official DRC e-mail address and includes description
of what has been approved incl. the relevant budget codes and total value of the
commitment.
Procurement Manager • Directly Responsible for the effective execution of qualitative & compliant
procurement processes and procedures in line with DRC’s & Donor Guidelines &
(Overall Responsible for Standards.
the Supply Chain in
Country)
• Develop and maintain appropriate Management Controls & Internal Control
Measures to safeguard, control and manage the Effectiveness, Quality, and
Compliance & Risk Management.
• Strategic procurement mechanisms are developed and implemented to

continuously improve the effectiveness and efficiency of DRC procurement, with
special regard for supply base optimization, long term agreements for common
items, and emergency preparedness.
• High quality procurement services are provided to the Country program and other
requestors: meeting agreed needs and lead-times, adhering to agreed procurement
plans, and proactively providing sound advice and constructive support to other
managers regarding procurement.
• An effective filing system is in place which ensures that procurement documentation

is transparent, secure, verified, complete, appropriately signed, and easily
accessible.
• The supervision, performance management and capacity building of all Procurement

Unit staff.
• The timely coordination of all procurement processes required to satisfy Purchase

Requisitions or Procurement Plans
• Procurement Plans / Purchase Requisitions are carefully assessed to ensure they are
complete and represent realistic expectations; or, where this is not the case, the
requestor receives appropriate support to make appropriate corrections to a point
that enables the procurement process to proceed.
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• Goods/services/works procured represent the best-known value for money

available, and are supplied in a timely manner, to the right program and location.
• The procurement tracker is well-maintained, with minimal lag in the currency of

information, and that it is readily available to all relevant staff.
• Supplier relationships are managed professionally and the interests of suppliers –

particularly regarding timely payment – are fairly treated by DRC. Information about
or from suppliers that is provided in confidence is afforded due protection to ensure
it is only available to select DRC staff.
• Due diligence is applied to the assessment, evaluation & approval of suppliers, and
an Approved Supplier List is maintained up-to-date to facilitate solicitation of bids.
• Any abnormality or eventuality identified in any procurement activity that poses a

potential risk to DRC with regards to the donor, beneficiary community, or other
stakeholders, as well as any case of suspected fraud or corruption, is brought
immediately and directly to the attention of the Country Director.
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Figure 1: Procurement Process Responsibility & Accountability per Stakeholder.
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PROCUREMENT FLOWCHART
Figure 2: Chart Overview of the Procurement Process from start to end.
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ABOUT THIS HANDBOOK
PURPOSE & APPROACH

The Handbook is provided as a reference for any DRC staff member involved in procurement activities: directly or
indirectly, regardless of their role. all program staff, finance staff, and managers - as well as procurement staff
themselves - should be thoroughly familiar with the Procurement Management Handbook.
Quality Standards, Minimum Operating Procedures and Compliance Tools have been developed to facilitate the
implementation of DRC’s policies and procedures, and references have been provided throughout to a range of
standardized forms, charts and other tools which support the adherence to the minimum standards.
The Minimum Operating Procedures also enable DRC to measure and monitor procurement practice across the
organization. All DRC operations shall measure the adherence to Minimum Operating Procedures for Procurement
continuously through the Compliance Self Check mechanism, as well as through periodic assessment conducted by
regional or headquarters representatives.
DRC’S APPROACH TO PROCUREMENT

DRC retains a decentralized organizational approach to Procurement. Procurement staff in the various DRC Country
offices and Operations, are responsible for the acquisition of goods, goods, services and works, in coordination with
internal customers (Program and Support Services).
CORE HUMANITARIAN STANDARDS

All Procurement activities undertaken by DRC are performed in accordance with the relevant Core Humanitarian
Standards with an explicit focus to standard 2, 6, 8 & 9.
Core Humanitarian Standards
DEFINITIONS
Procurement is defined as all actions necessary for the acquisition - by purchase, lease or otherwise - of Goods, Services,
and Works / Construction, from the identification of the requirement to the filling of that requirement and including
final payment to the supplier.
 Goods: Tangible products or items that can be taken into DRC’s possession, such as buckets, vehicles, tents, or food
commodities.
Note: Requisition of Goods may accompany a service component if the value of the service does not exceed that
of the goods.
 Services: Intangible support or activity provided to DRC by another Company, firm or commercial organization such
as cleaning services, vehicle rentals, accommodation, utilities, Internet access, technical assistance by
companies and consultancy on a contracting basis. ‘Services’ does not include work with individuals as
consultants, which are covered by HR recruitment processes. Please refer to INSITE page here for latest
guidance.
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 Cash & Voucher assistance services to beneficiaries provided by a financial service provider is also considered
procurement, and covered under the Procurement in Cash Transfer Programs
 Works/Construction: All work associated with the construction, rehabilitation, repair or maintenance of a building
structure, infrastructure such as site preparation, excavation, erection, materials, decoration, and finishing. Works
procurement can also include the following services if the value of these services does not exceed the
construction/works value of the requirement: Drilling, mapping, satellite photography, seismic investigations and
similar services provided pursuant to the procurement contract.
Goods received as Gifts-in-Kind donations from private donors, corporations, or other humanitarian organizations are
NOT included in DRC’s definition of procurement.
Requestor The staff member that identifies the procurement requirements and submits
the Purchase Requisition or input to the Procurement Plan. This is often the
Budget Owner or their representative.
Approval Any step of a business process in which someone is required to determine

whether the process may proceed. Formal approval shall be documented, and
shall always be accompanied by the name, title and date of the person
approving.
Authorization An approval step which specifically reflects a commensurate level of

accountability and thus empowers the person seeking authorization to
proceed. In the procurement process, the approval of multiple staff is often
required but authorization powers are much more specific and usually rest
with the Budget Owner and ultimately the Country Director.
Formal authorizations shall be documented with a signature, which should
always be accompanied by the name, title and date of the person signing.
Vendor Any company that could potentially provide goods, services or construction
works to DRC.
Purchaser The staff member vested with the authority to sign and commit DRC for the
concerned contractual conditions and value to Third Party. This is normally
though Purchase Orders or other types of contracts.
Procurement Contract Is a Purchase Order (Contract), Service or a Works Contract.

Accompanied by the DRC General Conditions of Contract and DRC Supplier
Code of Conduct forms an integral part of contract.
Supplier Any vendor, whom has been vetted, approved, and accepted as a supplier to
DRC.
Bidder Any Vendor/Supplier who has submitted or intends to submit a bid or

quotation as part of a specific business opportunity from a DRC tender process.
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SCOPE & APPLICATION

This manual is applicable for all procurement of goods, services, consultancy services provided by company, firms,
institutions, and Works for all international program of Danish Refugee Council. The procedures contained herein apply
to all DRC staff that are procuring or in any way involved in the procurement with DRC or donor funds.
Procurement by DRC’s Implementing partners is to follow procedures set out in this procurement handbook unless
stated otherwise in the partnership agreement.
In this Handbook, the term ‘purchaser’ will be used to refer generically, and where necessary collectively, to the
individual(s) representing DRC’s interests in any procurement process.
write up
This Procurement Handbook shall not apply to the following:
 Contracts with private individuals for employment, consultancy or other professional services whereby an
individual is employed.
 Partnership agreements with public organizations, governments, or non-governmental organizations.
 Arrangements with banks and similar financial institutions for management of DRC bank accounts, daily accounting
and control of DRC finances
Violation of procurement policies & procedures stipulated in this handbook are a serious matter and must be reported
and investigated.
DONOR COMPLIANCE
While DRC’s procurement standards and guidelines have been designed with the requirements of our key donors in
mind, no commitments or assumptions are made in this Handbook concerning donor compliance.
 The grant agreement, contract, or partnership agreement in place between the donor and DRC is the ultimate
authority from an audit perspective and procurement conducted under that agreement shall adhere to any
procurement requirements referenced there.
 Blanket approval of DRC procurement procedures shall not be assumed without a copy of the written authorization
from the donor in question, which in addition shall be explicitly referenced in the grant agreement.
 Staff shall ensure they are always compliant with both the donor and DRC’s own procurement standards. Where
these differ, the most restrictive shall always be applied.
The DRC Procurement Guidelines are applicable for:

 All projects funded by DRC own funds or donors who have approved DRCs Procurement Guidelines.
 All projects where DRC Procurement Guidelines satisfies the minimum requirements for procurement by the donor
 All procurement done by DRCs implementing partners for projects satisfying the criteria above.
Donor approval for DRC Procurement Guidelines:

 ECHO and UNHCR have approved, and DANIDA has accepted the use of DRC Procurement Guidelines
 SIDA is in the process of obtaining approval from for the use of DRC Procurement Guidelines, but it is generally
accepted that we use our own guidelines during the approval process.
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 EU / Europe Aid - The European Commission External Action Grants (exception made of ECHO) - has not fully
accepted the use of DRC´s procurement guidelines. Further details are available in the Donor Procurement
Factsheet referred below.
 For all other donors - The DRC Procurement Guidelines are required to be approved on a case-by-case basis and
included in the contract:
Staff shall always check the Donor Section and the Donor Procurement Factsheet on the DRC INSITE which provides a
consolidated overview of procurement guidelines of DRC´s main Donors, as well as the status if the respective donor
has approved the DRC guidelines:
DRC INSITE: Donor Section

Donor Procurement Factsheet
Generic for other donors:

The DRC Procurement Guidelines will in most cases satisfy most donor requirements, but each Donor contract must be
checked for mandatory requirements prior to the start of the procurement process. If in doubt, contact the relevant
Donor Focal Point at Headquarters.
COUNTRY LOCAL PROCUREMENT PROCEDURES

To support the implementation of DRC’s projects, countries may develop and maintain their own ‘Country Local
procurement procedures’ as a supplement to the information outlined in this handbook.
These local procedures many contain:
 Any authorized adaptations to the processes defined in this manual required due to local laws or customs, the
security context, or the nature and capacity of local markets.
 Reductions of the procurement thresholds defined in this manual as per the local requirements.
At all times, due care shall be taken to ensure compliance with the principles and MOPs described in this Handbook.
The Procurement Manager normally leads the development of Country Local Procurement Procedures. Local
procurement procedures must be approved locally by the CD & then forwarded to Headquarters – Supply Chain Unit
for approval.
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ACRONYMS, TERMINOLOGY & CONVENTIONS USED

BoQ Bill of Quantities RFP Request for Proposal
CD/RD Country / Regional Director RFQ Request for Quotation
CSC Compliance Self Check SCC Service Completion Certificate
CSP Community Support Program SCoC Supplier Code of Conduct
CTP Cash Transfer Program SOP Standard Operating Procedures
DAP Delivery at Place (INCOTERM 2020) SoW Statement of Work
DDP Delivery Duty Paid (INCOTERM 2020) TOC Tender Opening Committee
EOI Expression of Interest TOR Terms of Reference
FSP Financial Service Providers VfM Value for Money
GCoC General Conditions of Contract WCC Works Completion Certificate
GRN Goods Received Note
HoD Head of Division
HOSS Head of Support Services
HPC Humanitarian Procurement Centre
HQ DRC Headquarters
ID International Director
IDRA Internal Delegation of Responsibility &

Authority
IPA Individual Protection Assistance
ITB Invitation to Bid
KPI Key Performance Indicator
LVP Low Value Procurement
MOP Minimum Operating Procedures
P&L Procurement & Logistics
SCM Supply Chain Manager
PO Purchase Order
PoA Power of Attorney
PR Purchase Requisition
Q&A’s Questions & Answers
RfP Request for Payment
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QUALITY STANDARDS, MOPS & COMPLIANCE TOOLS

At the beginning of each section, the relevant Quality Standards, Minimum Operating Procedures, and associated
Compliance Tools (CTs) / Annexes for that section are consolidated and listed under the QS & MOP for ease of reference:
Example of a Standard:
QUALITY STANDARD #
[The concrete, measurable requirements that a DRC operation shall fulfil or adopt to achieve the purpose in line with
the principles]
MINIMUM OPERATIONAL PROCEDURES COMPLIANCE TOOLS
0.1. [The individual task or procedure that are mandatory to CT [Tools that are mandatory to comply
ensure that the standard is met.] with the standard]
 CT Procurement NN
INTERPRETATION & MAINTENANCE

This Handbook is not meant to cover all details, eventualities or situations faced by operational staff, or to exhaustively
predict all possible procurement scenarios.
The Handbook is not intended to eliminate the need for sound and careful judgment or managerial discretion, the basic
principles and minimum operational standards contained in this Handbook shall always be maintained.
Where managers are unsure about how to interpret the handbook, or apply procurement procedures in a specific
situation, the matter shall be escalated through the appropriate levels of the organizational structure. If clarification
cannot be established by the Country or Regional Supply Chain Manager, then HQ Supply Chain Unit may be contacted
for guidance.
This Handbook is updated when required and a version number updated. Please always check at INSITE to ensure that
you are using the latest version of the Operation Handbook.
DRC Intranet INSITE
Any feedback, comments, or suggestions on the procurement handbook, are welcomed, and should be sent to:
[email protected]
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QUALITY STANDARD 1 – ETHICAL STANDARDS

DRC Procurement uses public funds to better the situation for our beneficiaries. DRC shall have the highest integrity
and follow strict ethical standards in the conduct of its procurement process.
MINIMUM OPERATIONAL
PROCEDURES &
COMPLIANCE TOOLS
1.1. Any DRC staff associated with the procurement process OH on DRC Code of Conduct refers.
shall abide DRC Code of Conduct and shall protect the
integrity of the procurement process and maintain CT 11: Declaration of Impartiality &
fairness in DRC’s treatment of all suppliers. Confidentiality
1.2. All DRC staff shall maintain an unimpeachable standard OH DRC Code of Conduct refers.
of integrity in all business relationships, both inside and
outside DRC.
1.3. All DRC staff associated with the procurement process OH on DRC Code of Conduct refers.
with a conflict of interest, or a potential conflict of
interest, shall immediately notify their supervisor and
declare the conflict of interest.
1.4. All members of Tender Opening Committee’s shall sign CT 11: Declaration of Impartiality &
the Declaration of Impartiality & Confidentiality Confidentiality
1.5. To ensure full impartiality of the DRC procurement DRC Code of Conduct
process, DRC commits to a zero-tolerance on gifts or
hospitality to any staff part of the procurement process
from any supplier, bidder, or potential source.
1.6. All DRC Suppliers shall sign and adhere to the DRC CT 23: Supplier Code of Conduct
Supplier Code of Conduct.
Relevant Annexes / Compliance Tools for this section:

 CT Procurement 23 : Supplier Code of Conduct
 CT Procurement 11 : Declaration of Impartiality and Confidentiality
 DRC Code of Conduct : Operation handbook for Code of Conduct
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The Danish Refugee Council, as a humanitarian actor, promotes fair and ethical procurement and business practices.
These principles shall be observed and followed by the Organization and all individuals acting on behalf of DRC
employees in all aspects of the procurement processes, including but not limited to, identification of requirements,
bidder/supplier selection, tendering, bid evaluation, contract award, contract management and payment/contract
closure.
Ethics is the discipline relating to right and wrong, moral duty and obligation, moral principles, and values, and to moral
character. Most procurement related principles, such as fairness, integrity, and transparency are based on ethics. Since
funds handled by DRC are public funds, entrusted to the organization by a funding source, it is imperative that all
transactions conform to the highest standard of ethical conduct.
Corruption and fraud in the operations of DRC depletes funds intended for the accomplishment of defined goals.
Corruption and fraud can undermine the effective functioning of DRC. All procurement officials shall maintain an
unimpeachable standard of integrity in all business relationships, both inside and outside DRC.
Ethical conduct is an on-going process of self-regulation and reflection at every stage of the procurement process. It is
not possible to specify in writing everything that a DRC official should know regarding what is allowed and what is
prohibited. Law is governed by rules, whereas ethics is based on the subjective appreciation of what is right and what
is wrong. Therefore, DRC staff should seek to be guided as much by the spirit of the law, or other written requirement,
as by the letter of the law.
ETHICAL CONDUCT OF PROCUREMENT STAFF

DRC staff associated with the procurement function shall protect the integrity of the procurement process and maintain
fairness in DRC’s treatment of all suppliers.
All DRC personnel, and others, involved in the procurement process on behalf DRC shall abide to the following standard
of conduct:
 All procurement is transparent, accountable, fair, and ethical, and is carried out in line with DRC’s Procurement
handbook.
 All items, service and works procured represent best value for money.
 During the pre-solicitation phase, no supplier shall have access too specific, privileged information on an acquisition
before such information is available to the business community at large.
 During the solicitation phase, all potential bidders shall receive identical information. Any clarifications to the
solicitation documents shall be provided at approximately the same time, in writing, to all suppliers.
 Specifications shall be linked to functionality. They shall not include conditions limiting competition (e.g. branding),
nor be unnecessarily restrictive, as this may discourage competition, unless specifically prescribed in this
Handbook.
 Individuals having a personal or financial interest in a supplier responding to a solicitation are prohibited from any
involvement in the procurement process.
 During the evaluation, the evaluation criteria specified in the solicitation documents shall be agreed prior to the
issuance of the solicitation and be applied in the same manner for each evaluated offer.
CONFLICT OF INTEREST
All staff involved in the procurement process shall avoid any actual, or appearance/suspicion of conflict between their
professional duties and personal interests. Staff shall adhere to local, national, and international laws and keep abreast
of the consequences for violating these laws. Staff shall properly care and account for money, vehicles, equipment,
goods, assets, and property. All DRC staff shall be familiar with the details of the DRC Code of Conduct, the DRC Anti-
Corruption Policy, and the DRC Supplier Code of Conduct.
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Any procurement personnel with a conflict of interest, or a potential conflict of interest, shall immediately notify their
supervisor. DRC employees that fail to voluntarily declare a conflict of interest situation, are then in breach of the DRC’s
Code of Conduct which can be found on the DRC INSITE via below link:
DRC: Code of Conduct
ETHICAL BEHAVIOUR OF SUPPLIERS

Suppliers shall adhere to the highest ethical standards, both during the bidding process and throughout the execution
of a contract. The extreme case of unethical behaviour is when there is engagement in corrupt practices.
DRC shall reject requests for vendor registration as well as offers from suppliers behaving unethically and may declare
firms - both the organization and its board of directors and/or individual personnel - ineligible, either indefinitely or for
a stated period. DRC may also cancel or terminate contracts for the same reason.
Suppliers have the obligation to comply with the DRC Supplier Code of Conduct, which contain provisions on mines,
sexual exploitation, and the fundamental rights of workers. Since the DRC Supplier Code of Conduct form an integral
part of every contract between DRC and a supplier, the supplier, by signing the contract with DRC, confirms that he
adheres to the provisions in the DRC Supplier Code of Conduct. Moreover, DRC is committed to doing business only
with those suppliers sharing its values of respect for fundamental human rights, social justice, and human dignity, and
respect for the equal rights of men and women and encourage suppliers to sign up for the United Nations Global
Compact.
This demand for ethical behaviour applies to all suppliers providing goods, services, or construction regardless of their
location. Suppliers have the duty to respect key obligations on child labour, mines, sexual exploitation, health, and
safety, working conditions, freedom of association, environment, non-discrimination, human rights, and anti-corruption
measures.
GIFTS & HOSPITALITY – FRAUD & CORRUPTION

DRC’s general policy on Gifts and Hospitality is covered in the Anti-Corruption part of the Operations Handbook. DRC
staff shall not accept gifts unless of essentially nominal value.
To ensure full impartiality of the DRC procurement process, DRC commits to a zero-tolerance on gifts or hospitality to
any staff part of the procurement process from any supplier, bidder, or potential source.
Any gift (including calendars, pens, stationery, etc., as well as personalized and monogrammed gifts) received from
suppliers, individual consultants or other professional contacts shall immediately be notified to the staff member’s
immediate supervisor, preferably in writing for transparency and shall to the extent feasible be returned to the supplier.
Gifts of higher value shall be immediately returned to the supplier accompanied by a letter advising that DRC personnel
involved in the procurement process are not allowed to accept gifts.
Invitations to any social arrangement, including but not limited to lunches and dinners, sporting or cultural events from
suppliers shall be declined and not be accepted. Offers of holidays or other substantial hospitality shall always be
refused.
Invitations offered by governments to attend lunches, dinners, receptions, etc., shall always be referred to the
Regional/Country Director for advice. These may be accepted as part of the staff members’ official function, on approval
from the Regional/Country Director.
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IF THERE IS ANY DOUBT ON THE PROPRIETY OF ACCEPTANCE OF GIFTS AND HOSPITALITY, THE MATTER SHALL BE
BROUGHT TO THE ATTENTION OF THE RISK & COMPLIANCE TEAM LEADER IN DRC HQ. FRAUD & CORRUPTION
The importance of all DRC staff and Suppliers adhering to the DRC Operation Handbook on Anti-Corruption is
paramount to ensure, that the DRC procurement processes are beyond reproach regarding corruption and malpractice.
This policy shall be available upon request to all Bidders and Suppliers. Due to the seriousness and importance that DRC
places on combating all forms of corruption the following definition of Corruption is reproduced the Operation
Handbook on Accountability / DRC Anti-Corruption Policy:
DEFINITION OF FRAUD & CORRUPTION

DRC defines corruption as the misuse of entrusted power for private gain.
This definition covers both monetary and non-monetary corruption, manifested as facilitation payments, bribery,
kickbacks, favouritism, extortion, embezzlement, and forms of fraud. There are various definitions of corruption and it
can in practise be difficult to differentiate between corruption and other related offences. Therefore, DRC employs the
same disciplinary rules and regulations on corruption-related offences as on other breaches of DRC policies and
procedures, local and Danish legislation, and the DRC Code of Conduct.
NOTIFICATION OF CORRUPTION POLICY

As a precautionary measure, DRC’s Supplier Code of Conduct — which is clearly referenced in all solicitation documents
— explicitly mentions the DRC Anti-Corruption Policy. The procurement process thus incorporates mechanisms which
preserve DRC’s right to exclude Bidders from participation in a procurement procedure at a later date in the case that
corruption or fraud is suspected. In addition, DRC’s full anti-corruption policy shall be made available upon request to
all Bidders and Suppliers.
As a precautionary measure, some assertions of the DRC Anti-Corruption Policy are included in DRC General Conditions
of Contracts entered with suppliers and service providers to preserves DRC’s right to exclude Bidders from participation
in a procurement procedure if they find themselves within the situation described.
COUNTERACTING FRAUD & CORRUPTION GUIDANCE

The procurement function is an area particularly susceptible to corruption and fraud. It is of paramount importance
that all DRC staff, Bidders, and Suppliers always adhere to the DRC Anti-Corruption policy, to ensure that DRC
procurement processes are beyond reproach regarding corruption and malpractice.
All staff involved in procurement, and especially procurement staff themselves, are required to remain alert and vigilant
in the process of carrying out the procurement process, and to report any suspected corruption of fraud immediately,
using the channels indicated in the Anti-Corruption Policy. DRC is committed to investigate all bona fide allegations of
corruption and fraud, and the results of such investigations may lead to disciplinary action and potentially to criminal
proceedings.
The need for vigilance shall be considered in resourcing the procurement function and matching staff numbers to
workload. Managers should be particularly cautious in times of heightened workload, such as may be the case in
emergencies, when corruption and fraud may be more difficult to detect.
INDICATIONS OF POTENTIAL FRAUD GUIDANCE

Fraud takes many forms, to include financial and non-financial crimes like procurement fraud, bribery, embezzlement,
theft, or product substitution, among others. The following are typical red flags that shall prompt managers and staff
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to consider the possibility of fraud. Staffs are cautioned to be prudent, respectful, discrete, and scrupulously honest in
reporting any suspected fraud. The warning signs indicated below are not in themselves a formal accusation and may
be innocuous. Unwarranted accusations can ruin reputations and declarations deemed to be made with malicious
intent will be treated as a disciplinary offense.
Patterns that may indicate susceptibility of staff to fraud:
 Marked changes from past behaviour patterns or in personality
 Unexplained refusal to take vacation or unjustified and excessive overtime
 Generally defensive, protective, or resistant to the introduction of new controls
 Indications that may reflect a personal situation or lifestyle that requires funds beyond their income level
 Unusually close associations with suppliers
 Patterns that may indicate an organization’s proclivity to fraud:
 Unexplained reluctance to disclose information or provide standard business documentation
 Protective of or controls access to certain employees
 Reluctant to allow site visits and inspections or dubious choice of meeting venues and times
 Frequent use of sole source derogations and justifies procurement decisions with subjective product quality or
capacity reasons.
Patterns in documentation that may indicate fraud:

 Omissions in sequential numbering of records/documents
 Irregularities in the chronological sequence of dates
 Altered documentation
 Use of non-letterhead or letterhead that appears to be photocopied or contains irregularities or omits address and
contact details
 Apparent duplication of documentation
 Original unavailable
 Signatures unaccompanied by name, date, or job title
Patterns of potential bid-rigging:

 The same suppliers bid each time and seem to take turns being the successful bidder
 Some bids seem artificially inflated compared to DRC’s knowledge of market prices
 Suppliers, who have previously submitted bids reliably, suddenly refuse to participate
 Substantially higher bids do not include explanations to account for the disparity in cost
 The introduction of a new or rarely approached bidder causes prices in bids from multiple other suppliers to drop
 Bidders who withdraw from tender processes or are unsuccessful nevertheless find themselves engaged in the
project through sub-contract from the awarded bidder
 Bank guarantees submitted by different bidders as bid security are been issued by the same bank and very similar
or sequential reference numbers: e.g. BG-S111 and BG-S112
 Details of bidder ownership and management reveal shared personnel such as directors, partners, or owners.
 Staff collects bids in person from the same vendors without witnesses or rotation.
 Procurement staff solicit tenders with very short response times or specifications such that only a specific vendor
could win the contract
Patterns of potential price-fixing:

 Prices of multiple bidders, which were initially different, that remains identical for extended periods of time
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 Unjustified price increases

 The sudden withdrawal of discounts
 Bids from different suppliers contain share similar irregularities (such miscalculations or typos), similar handwriting
or similar stationery.
 The use of white correction fluid or other physical alterations on quoted pricing
 Competing bids are artificially high or contain conditions which are obviously unlikely to be acceptable to DRC.
These may represent courtesy bids.
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QUALITY STANDARD 2 – ORGANIZATION OF PROCUREMENT IN

DRC
Procurement is decentralized in DRC with Procurement conducted at the Regional, Country, and field level. In order to
maintain the integrity of the procurement process, there is a segregation of duties between three parties in the process,
the Requestor (representing the budget holder), the Purchaser (procurement staff) and the Payer (Finance staff).
Proactive Procurement Planning is a prerequisite for effective, efficient, and timely procurement execution meeting the
overall Program Objectives. All Procurement actions shall be documented providing full transparency, accountability,
and audit trail.
MINIMUM
OPERATIONAL
PROCEDURES &
COMPLIANCE TOOLS
2.1. Procurement plans should be completed alongside CT 01: Procurement Plan

activity plans for the project to ensure supply
deliverables are scheduled in line with project need. The
program teams making the proposal should lead on this,
with support from HOSS and Supply Chain department.
2.2. Upon approval of a Purchase Requisition, and CT 03: Purchase Requisition

acknowledgment by procurement, a unique physical file CT 34: Procurement Tracking Table
– the Contract File - shall be created and maintained. CT 31: Procurement Dox-Contract File
Closure Checklist
2.3. All Country Offices not operating on DRC Dynamics must CT 16: Purchase Order
assign DRC Purchase Orders / Contracts shall be a CT 34: Procurement Tracking Table
unique identifier code and All Procurement cases shall
be registered in the Procurement Tracking Table. The
Procurement Tracking Table shall be maintained to
reflect the status of ongoing procurement actions at any
given times.
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2.4. An appropriately indexed Filing & Documentation Contract File as outlined in this OH
system shall be maintained for all procurement actions. applies.
All forms used shall adhere to DRC standards where
available. A separate Contract File shall be established CT 31: Procurement Dox-Contract File
for every procurement process instigated, containing all Closure Checklist
relevant documentation for the file, including the
Procurement Filing Checklist cover-page.
It shall be kept on file in its full identity for minimum 7
years.
2.5. All relevant supply chain files shall be stored in an SOP Supply Chain Electronic Filing
electronic format. Paper copies may be kept as backup;
however, the electronic version will be the prevailing
and official archive for supply chain documentation.
2.6. Every Contract File shall be checked for completion CT 31: Procurement Dox-Contract File
maintaining its full identity prior Contract File Closure. Closure Checklist
2.7. Compliance Self-Checks (CSC) on Procurement shall be Compliance Self Check (SCS) Regime
carried out at least bi-annually. applies.
2.8. All CO not operating DRC Dynamics must maintain a CT 34: Procurement Tracking Table
Procurement Tracking Table and keep up to date
containing all relevant procurement records and
transactions.
2.9. The CD shall once a year establish a Basic Compliance CT 29: Basic Compliance Measures
Measures and forward this to RD/HQ. The RO shall Checklist
review and subsequently forward to HQ.

 CT Procurement 01 : Procurement Plan
 CT Procurement 03 : Purchase Requisition
 CT Procurement 16 : Purchase Order
 CT Procurement 29 : Basic Compliance Measures Checklist
 CT Procurement 31 : Procurement Dox-Contract File Closure Checklist
 CT Procurement 34 : Procurement Tracking Table
 SOP Electronic filing : SOP on Electronic Filing
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OVERVIEW OF THE PROCUREMENT PROCESS

DRC’s procurement process is designed to support DRC’s operations with obtaining the best value for money in the
procurement of Goods, Services, and Works – with attention to the requirements of our beneficiaries and donors.
Figure 3: Key Components of the Procurement Process
The procurement process that DRC employs can be subdivided as follows:
PROCUREMENT PLANNING, IDENTIFICATION & SUBMISSION OF THE

REQUIREMENTS
Procurement Planning is a crucial preliminary component of any effective procurement system
Procurement Planning provides unique opportunities for consolidation of identical requirements across programs,
supporting the best value for money and benefits from the economies of scale by consolidation. Strong procurement
planning will enable the Procurement team to prioritise and manage their workload effectively
Procurement planning per award starts at the time of making the proposal to the donor. Plans should be completed
alongside activity plans for the project to ensure supply deliverables are scheduled in line with project need. The
program teams making the proposal takes lead on this process with support from the Supply Chain department. This
ensures that supply chain considerations are considered while committing deliverables to donors.
When the grant is approved by the donor, a kick-off meeting is held with the participation of relevant program and
support staff in order to ensure that all internal stakeholders have received necessary information on the project and
know their responsibilities in relation to the project. The Program and Procurement teams should work together to
develop plan for this meeting, revising the procurement plan and including additional details such as delivery dates,
warehouse requirements etc. This information should be reviewed periodically and updated at grant review meetings.
SUPPLIER MANAGEMENT
Supplier Management is an ongoing procurement component which is a crucial element to an effective Procurement
execution. This involves a generic market assessment, the early assessment of needs, and the determination of an
appropriate market, establishing a supplier base, evaluating, vetting and approving suppliers, and not least evaluating
the suppliers’ performance and developing longer term relationships with the most competitive and professional
suppliers.
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SOLICITATION, TENDERING & BIDDING:

This stage is led by the Procurement Manager and includes the identification of an appropriate market from which to
obtain bids and potential bidders, the tendering method per the relevant thresholds, the raising and dissemination or
publishing of appropriate tenders, bid solicitation documents, and the management and receipt of bids submitted.
BID EVALUATION & CONTRACT AWARD:

For RFQs: This process is jointly led by the Procurement Manager or procurement officer delegated by the procurement
manager and the Requestor/Budget Owner via the Procurement Committee.
For ITB/RFPs – This process is the responsibility of the CD who appoints a Tender Opening Committee, and the
respective appointments (Chairperson, Members, and Sponsor).
Contract evaluation and award involves the opening of bids followed by an administrative evaluation, Technical and
Financial Evaluations, documenting the evaluations, and concluding a recommendation for contract award, and finally
the procurement unit carry out the drafting of the resulting contract(s) prior the approval and signature by the
appropriate authority
CONTRACT MANAGEMENT & CLOSURE:

This involves the drafting, approving, and signing, monitoring and management of the contract.
Contract management also includes monitoring of the Supplier’s performance to ensure that the contract deliverables
are received, managing any amendments required during contract performance, the cancellation if required, and
payment of interim and final invoices. Furthermore, it also includes ensuring that all accountable and supporting
documents are available on the contract file for audit purposes and the closing of the contract file.
The contract is only considered closed when the quantity delivered equals the quantity ordered and all outstanding
payments have been made. Contract amendment may be required to adjust the final QTY delivered under a contract.
PROCUREMENT DOCUMENTATION & FILING

All procurement departments must have strong administration and a transparent filing system for managing their
procurement. All documentation relating to the procurement should managed well to demonstrate its accountability
and adherence to procedures
A standard filing system, as well as a numbering system to enable tracking and cross/referencing of documents and files
shall be established in every DRC office to facilitate effective management of procurement activities and to keep an
audit trail.
With the implementation of DRC Dynamics, all relevant supply chain files shall be stored in an electronic format. Paper
copies may be kept as backup; however, the electronic version will be the prevailing and official archive for the supply
chain documentation. To ensure consistency, and to prepare for a future Electronic Document Management Handling
system, an electronic filing structure as described in this SOP shall be implemented in all regional and country
operations, effective for all purchases made in DRC Dynamics.
For cases outside DRC Dynamics, it is recommended to use this similar filing system. The Procurement Unit is
responsible for populating the Contract file until contract closure and final payment.
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Figure 4: The Key Components of a Procurement Filing System
Supplier Evaluation
Vetting
Procurement Plans &
Purchase Requisitions Supplier Registration Approval
Incoming PPs / PRs 4

Tendering
RFQ / ITB-RFP Dox Quotations / Bids Approved

Supplier Database Supplier File
Active PPs /PRs Contract File Bid Opening

PP / PR Comprehensive
Tender Report
(Evaluation & Award)
Invoices Procurement Tracker Contract Files

Contract
GRN/SCC/WCC
Copy To Finance
(Payment)
Upon approval by the Procurement Manager of a Purchase Requisition a unique physical file, the Contract file, shall be
created containing the Procurement Documentation Check List as well as the PR. Procurement staff shall maintain the
contract file for every procurement. The status of all open and historical procurement processes is maintained in
chronological order in the Procurement Table. Generally, all forms shall be provided with a unique sequential reference
number or code which is referenced in the Procurement Table, providing a mechanism to easily cross-reference all
related documentation.
The following documents - in original form and appropriately signed – might typically be expected in a completed
contract file, where applicable:
Table 1: Typical Contract File Documentation
Procurement Plan / Purchase Requisition, complete with all technical specifications and
any other relevant information.
Any Derogation, duly authorized, as well as if relevant any related correspondence with
the donor.
All tender documents (Request for Quotation, Invitation to Bid, Request for Proposals),
complete with specifications and all other annexes, including list of vendors/suppliers
invited, and/or advertisements used.
Any subsequent correspondence with suppliers concerning questions & answers,
amendments, or clarifications to the solicitation documents
All bids received (technical, financial, compliant, and non-compliant), including the
envelopes/ screenshots if received by email.
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All Tender Opening Committee (TOC) documentation, including Comprehensive Tender

Report, records of committee appointment, public attendance, and Declaration of
Impartiality and Confidentiality, and all other relevant documentation
Supplier evaluation and Contract award recommendation report
Original Contract/Purchase Order (PO) and all relevant Annexes and records of any
subsequent amendments, or cancellations
All correspondence with the supplier regarding the procurement contract, and all other
correspondence with other bidders
All Goods Receipt Notes (GRN) / Certificates of Completion (Services / Works)
Copy of all Invoices and copy of all ‘Request for Payments’ forms sent to Finance
Any ‘Note for File’ or other document used in the procurement process.
Below you will find a comprehensive and consolidated overview of the Procurement Contract Process to follow.
The overview is also made available in a printer friendly version – CT Procurement 30: Procurement Contract File
Process Overview
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Table 2: Procurement Contract Process Overview
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To support the completion of the Contract File, “CT Procurement 31: Procurement Dox-Contract File Closure Checklist”
is provided and shall be used as the cover page for every contract file.
The contract file is retained once the contract is concluded and closed and shall be kept for 7 years after project closure.
The Contract file shall be kept readily available for audit review if the audit period so requires. The contract file shall
maintain its full identity from start to end and shall never be split. The complete file shall be retained in the Procurement
Office or in the Finance Office.
In addition, a vendor registration system shall be established. This system shall as a minimum include individual records
on each supplier that has been engaged. This filing system: will be fed by supplier registration, due diligence, and
evaluation processes, and is mirrored electronically by a supplier list. More information is provided in QUALITY
STANDARD 3 – SUPPLIER, -SOURCING -REGISTRATION & -MANAGEMENT section.
The supplier file shall also contain contract files relevant to that supplier, providing an extra level of redundancy to look
up contract files by supplier.
In the following, some of the key process documents are further elaborated and their purpose explained:
PURCHASE REQUISITIONS & PROCUREMENT PLANS

Requirements definition commences as part of procurement planning, but those requirements are eventually refined
and submitted in the form of a Purchase Requisition (PR).
DRC has standard forms and templates for the Procurement Planning Process (CT Procurement 1 – Procurement Plan)
and the Purchase Requisition (CT Procurement 3 – Purchase Requisition).
The standard PR / PP shall be used. If containing sufficient information’s to start the procurement process, approved
by the budget owner and acknowledged by the procurement unit, this initiates the procurement process.
The Standard PR / PP contain all the basic information but can be expanded with additional information for the specific
requirements if required.
The Requestor is responsible for developing the PR / PP and for submitting it on-time for the procurement to be
conducted and the requirements delivered by the planned date.
The Procurement Manager is responsible for evaluating all PR /PPs to identify issues that may be inappropriate from a
procurement perspective. For example, to ensure that aspects such as technical specifications, quality assurance and
compatibility have been duly considered, that lead times and delivery schedules are realistic, that no assumptions are
made regarding brand (unless justified). Time shall be allowed for this review process.
Purchase Requisitions shall be uniquely and sequentially coded, adhering to the following format:
All DRC Purchase Requisitions shall be assigned a unique identifier code.
The following standard is recommended:

Standard coding for PRs is PR -[CT] - [LOC] - [YR] - [000] where:
Country: [CT] = 2-character country code (as per ISO-3166)

Location: [LOC] = 3-character local office code as per IATA airport code, and OH Annex 12.G
Year: [YR] = 4-digit financial year
#: [000] = 3-digit sequential number, starting at 001 at the beginning of the financial year
Example: First Purchase Requisition in 2017, Juba; South Sudan: PR-SS-JUB-2017-001
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If ISO-3166 Country Codes are not known, they can be found via the following URL link:
ISO-3166 2 Digets Country
PROCUREMENT CONTRACT(S) / PURCHASE ORDER(S)

A Procurement Contract / Purchase Order are a legally binding external document signed with the Supplier. The DRC
Procurement Contract / Purchase Order are mandatory for all procurement above the threshold for Low value
procurement.
DRC has Goods, Service-, Works sets of Tendering Documents and Contract Templates. These shall be used for all
Goods-, Service- and Works- Tendering and Contracts.
For any relevant Procurement Contract(s) / Purchase Order(s) the following documents constitutes the Procurement
Contract:
 DRC Purchase Order (The preference for Goods or other non-complicated procurement) or
 DRC Service contract
 DRC Works Contract
 DRC Service Contract for Consultants
 The DRC General Conditions of Contract*
 The DRC Supplier Code of Conduct*
(*) Mandatory Annexes to any DRC Contract - Always to be an integral part of any contracts.
 And if applicable:
 The Delivery Schedule.
 The DRC Shipping and Documentation Instructions (for International Purchase Orders)
 Any other documents required as part of the contract – Technical Data; Kit Components, etc.
 The Suppliers Quotation, Proposal, or Bid
All documents shall be physically attached to the original Procurement Contract, except for the supplier’s quote or bid.
This document becomes a primary reference if the contract goes to dispute and for that reason is listed as a component
of the contract.
The Procurement Contract, including all documents is raised in two original copies, both identical. The Supplier and DRC
contract signatories shall sign both the original copies and initial every page, and The Supplier shall also sign the DRC
Supplier Code of Conduct.
The Procurement Contract is not deemed to be a Contract until both Parties have signed and initialled the Procurement
Contract.
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All DRC Contracts / Purchase Orders shall be assigned a unique identifier code.
The coding format is not mandatory, but the following standard is recommended:
Standard coding for POs is PO -[CT] - [LOC] - [YR] - [000] where:
Country: [CT] = 2-character country code (as per ISO-3166)
Location: [LOC] = 3-character local office code as per IATA airport code, ref. OH 12: Annex 12.G
Year: [YR] = 4-digit financial year

#: [000] = 3-digit sequential number, starting at 001 at the beginning of the financial year
Example: Third Purchase Order in 2017, Erbil; Iraq: PO-IQ-EBL-2017-003
GOODS RECEIVED NOTE / CERTIFICATE OF COMPLETION

A Goods Received Note/Certificate of Completion/Handover certificate, generated at the time of completion or
milestone serves to record the receipt of goods, services or completion of works by a supplier under a DRC contract.
The original shall always be sent to the Procurement Office for 3-way matching with the invoice and contract and is
then forwarded to the finance office along with the original invoice. Both documents are sent under cover of a Request
for Payment form.
PROCUREMENT TRACKING SYSTEMS

All Country Offices not operating DRC Dynamics must maintain a Procurement Tracking Table and kept up to date
containing all relevant procurement records and actions. It is highly recommended that the Tracking Table is updated
as part of the daily routines, and not later than weekly to maintain the required identity. As applicable the table shall
be circulated and/or made available on i.e. a shared drive, as well as made available on request to the stakeholders
(Requestors: Program(s) / HOSS).
All applicable data required in the Table are contained in: CT Procurement 34: Procurement Tracking Table
BASIC COMPLIANCE MEASURES

Beyond the day to day management oversight, the bi-annual Compliance Self Check on Procurement and Internal Audits,
a Basic Compliance Measures Checklist is provided to facilitate the verification of basic procurement controls. The
Country Director is required to facilitate a review using the checklist once a year.
A member of the Senior Management Team shall lead the review, and not by staff in the Procurement function. Any
exceptions found shall be explained and justified in writing. The final checklist along with any notes and actions taken
should be approved by the Country Director, kept on file, and forwarded to DRC RO or HQ.
To prevent malpractice, several control measures should be in place in accepting goods upon delivery and in
making payment.
 Logistic or procurement staff should normally not handle cash and / or payment.
 Invoices from suppliers/service providers should be examined, verified, and certified by the person authorized to
proceed with a disbursement (distinct from the Purchaser).
 Payment shall not be authorised without proof of delivery / completion of services or works.
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QUALITY, EFFICIENCY & EFFECTIVENESS

The procurement function, as well as all management and staff engaged in the procurement process are expected to
work as a joint team to deliver the required goods and services in the quantity, at the quality and at the time they are
needed in a cost-effective and efficient manner.
This includes allocation of sufficient capacity, resources and time for planning and execution of the procurement
activities to accommodate the requirements to support, and successfully meet the program objectives and budgets.
PROCUREMENT TEAM STRUCTURE GUIDANCE

The Country Procurement function should to the extent feasible be in the form of a Procurement unit at the country
office. For small country operations, it may exceptionally be incorporated within the logistics’ function.
The reporting line can be through Supply Chain Manager to the HOSS, segregation of duties between the requestor and
the Purchaser.
It is recommended that the overall responsible for the Supply Chain function in country is member of the Senior
Management Team.
The procurement unit will normally be made up of a manager, officers, and assistants. The number of procurement
staff will depend primarily on program needs and work volumes, but segregation of duties should always be a
consideration. A balance shall also be struck between the need to develop effective, sustainable relationships with key
suppliers, and the risks associated with a supplier having a single point of contact in DRC. Meetings with suppliers shall
be attended by two or more staff and Procurement Managers are advised to rotate duties among procurement officers
on a regular basis. For these reasons, it is not advisable to under-resource the budget for the Procurement function.
In field offices, the procurement function may be undertaken by an administrator or a logistician rather than a dedicated
procurement specialist. This person should have a matrix (dotted) technical line to the Procurement Manager in the
country office. In extreme cases, the procurement process might be spread across locations such that the procurement
person at field level need only act as a liaison to funnel Purchase Requisitions to a staffed procurement unit at another
location, and to track the receipt of goods once they arrive.
All staff involved in the procurement process shall have clearly defined roles and responsibilities to avoid overlap,
inefficiency, and lack of transparency.
PROCUREMENT AUTHORITY & ACCOUNTABILITY

The Head of the International Department, the International Director (ID) is the final authority in DRC with regards to
procurement matters relating to this Operations Handbook. The Head of the International Department has delegated
this Authority to the Regional Directors and Country Directors. The RD/CD has the ultimate authority and responsibility
for the procurement of goods, services and works within their designated region/country. The RD/CD can delegate that
responsibility to members of their staff per their function, however the RD/CD remain ultimately responsible to the
ID for the procurement performance.
PROCUREMENT AUTHORITY
The highest authority in country remains the Country Director. The CD can delegate Procurement Authority to the
Deputy Country Director while absent or partially to other members of his / her staff - against own authority given. The
delegation takes place via the Internal Delegation of Responsibility & Authority mechanism. Such staff cannot delegate
the Procurement Authority further. Only DRC personnel holding a formal DRC Procurement Authority can sign
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Procurement contracts with 3rd Party Suppliers to DRC. Such personnel can only sign Procurement contracts within their
delegated authority. The authority is often given to the Program Manager, (Budget Owner) or his / her representatives.
The Contract awarding authority shall ensure that:
 The procurement undertaken strictly complies with the applicable DRC policies, rules & procedures, as outlined
in this Handbook
 All awards adhere to best value for money
 The contractual terms & conditions are reasonable and in the interest of the organization
 Sufficient funds are available for the financial commitment, and only duly authorized staff signs for such
commitments.
 The terms and conditions of the funding for such procurement action are complied with.
Please note: For all tenders, it is the Procurement Committee or the Tender Opening Committee who jointly
recommend the suppliers for contract award.
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QUALITY STANDARD 3 – SUPPLIER, SOURCING REGISTRATION &

MANAGEMENT
DRC shall establish a well-functioning register of potential suppliers that can deliver the required goods, services or
works to meet DRC’S requirement.
MINIMUM OPERATIONAL
PROCEDURES &
COMPLIANCE TOOLS
3.1. Every potential DRC supplier awarded contracts CT 02: Supplier Profile & Registration
above the LVP threshold shall complete a DRC Form
Supplier Profile & Registration Form. Supplier File as outlined in this OH
applies.
3.2. Supplier Due Diligence & Vetting research shall be Approved Supplier File as outlined
conducted for all awards above the LVP threshold in this OH applies.
and in addition wherever directed by Donor
procurement requirements.
3.3. The vendor evaluation and subsequent approval

process, shall be documented and kept on file.
3.4. A DRC Approved Supplier Base should be maintained Approved Supplier File as outlined
by each DRC Country Program, reviewed on a regular in this OH applies.
basis, and kept up to date.
3.5. Above the LVP threshold, DRC staff can ONLY Approved Supplier File & Contract
purchase from suppliers listed as active in the DRC File as outlined in this OH applies.
Approved Supplier File.
3.6. DRC’s Approved Suppliers List in each Country shall Approved Supplier File as outlined
always be actively monitored and managed as a in this OH applies.
function of Procurement Management and reviewed
regularly regarding its strategic relevance and
appropriateness.

 CT Procurement 02: Supplier Profile & Registration Form
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SUPPLIER SOURCING GUIDANCE

Sourcing is the process of identifying potential suppliers. Sourcing provides valuable information about what products
and specifications are available, and thus feeds into requirements definition and may affect procurement plans.
Sourcing is an ongoing activity. The Procurement Manager should always be looking for new suppliers to maintain DRC’s
access to the most competitive prices and best suppliers as the market changes.
Every opportunity should be used to learn about local markets. Existing suppliers can be excellent sources of market
information if the questions pertain to non-competing sectors. Local partners may also provide supplier and market
information.
For cross border and the international markets explorations, it is good practice to engage with either DRC in the
neighbouring countries, Regional Office, or the HQ Supply Team.
The Logistics Cluster, UN Agencies, and other INGOs active in the country or region of concern, should always be
consulted where possible. Other useful sources may include the local Chamber of Commerce, professional associations
and finally, the Internet can be a useful source. Below you will find a few examples of potential useful sources available
via the internet:
 www.alibaba.com
 www.amazon.com
 www.made-in-china.com
 http://www.turkishexporter.net
EXPRESSION OF INTEREST
An Expression of Interest will usually call for more detailed information and implies that suppliers who respond can
expect follow-up regarding a specific tender opportunity. An EOI may be used to establish an initial level of interest
before the exact details of the tender are known. This could be useful, for example, where procurement of a specific
and highly technical nature is being done in a market for the first time, and where an EOI process conducted could help
to establish viability and prepare the ground for a subsequent tender.
Depending on the complexity of the requirements, two to four weeks should be provided for responses to an EOI.
Respondents shall be invited to submit a written communication providing information about their products,
services, resources, qualifications, and experience. The invitation to express interest and the subsequent EOI is not
part of the contracting process, and do not in any way qualify as a contractual arrangement. A clear statement to this
effect shall always be included in the EOI notice to avoid misunderstanding, but failure to do so does not in any way
affect DRC’s liability in this respect.
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An Expression of Interest (EOI) is used to shortlist potential suppliers before seeking detailed bids from the shortlisted
suppliers via a competitive tender process - normally a RFP Tender.
An EOI is generally used when the information required from tenderers is specific, but DRC is unsure of the capability
of suppliers to provide the required goods and services.
An EOI is used to canvass the market, obtain required information, and shortlist potential suppliers who can deliver
required solutions and services.
 Despite the EOI process in many ways are like the ITB/RFP tender process, an EOI does not, and cannot, solicit any
bids. Any supplier who submits a Bid as part of an EOI cannot be part of the following tendering process
 The Procurement Manager is responsible for the EOI process.
The EOI will typically require potential suppliers to provide two types of information:
 The company information (i.e. legal status, locations, financial experience & capability, etc.)
 The types of goods or services offered and method of delivery (which needs to be detailed)
Once the EOI period closes the Procurement Manager shall arrange an EOI Opening Meeting with the Requestor and if
required other stakeholders. The Meeting will review each EOI feedback and determine if the supplier meets the
requirements (based on the criteria established in the ToR).
The EOI Meeting can seek clarification from potential suppliers who submitted an EOI. Procurement is the only party
that can communicate with the vendor. Program cannot communicate with any of the vendors at this stage due to a
potential upcoming bid solicitation process.
Based on the results of the EOI Meeting, and if a formal solicitation process is concluded being appropriate, a ‘Request
for Proposal’ (RFP) tender shall be issued.
VENDOR REGISTRATION
Every potential DRC supplier engaging quoting or tendering above the LVP threshold shall complete a Supplier Profile
and Registration Form to be considered for a contract award. This can be handled as:
 Part of an exploratory market research exercise in a new market or sector, in which procurement staff
examine the local market and provide suppliers of interest with registration forms.
 An integrated step in an open tender process which, if approved, results in supplier approval, and a possible
contact with the new suppliers
 Ad hoc, where suppliers encountered throughout the year are offered a registration form or the
registration form is made available via the procurement section of the public DRC-website.
SUPPLIER DUE-DILIGENCE & VETTING

As part of the Supplier registration process, DRC shall take additional steps to verify that suppliers are reliable, not
sanctioned, competent and have the capacity to meet the contractual obligations before approving a vendor as a DRC
Approved Supplier.
Due diligence starts with the registration process but shall be revisited and extended during each procurement.
Proper due diligence requires careful background checks on potential suppliers, e.g. performance history (If relevant,
see also section on “Active Suppliers Management & Performance Evaluation”), ownership, financial capacity,
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corporate facilities, and reputation for integrity. If deemed appropriate and required, it is recommended to visit bidder
offices and verify references.
A thorough Due Diligence & Vetting process shall include the following steps to ensure that the supplier:
 Is a legitimate business registered for trading and tax, as per local legislation?
 Is not engaged in practices that breach our policies
 Has not been sanctioned by the government or the donor’s government
 Where applicable by the donor requirements, running the supplier through relevant publicly available lists and
databases of sanctioned entities.
 Has the technical and physical capacity to meet DRC’s needs
 Has the financial means and capacity to honour the value of the tendered DRC Procurement Contract?
 Is experienced in the relevant domain?
 Provide formal references from previous customers (with an emphasis on INGOs and UN agencies)
 Is reliable and responsive
For detailed information on the vetting process please visit INSITE and see the SOP on Vendor Rating and
Vetting.
DRC APPROVED SUPPLIER LIST

The Procurement Manager shall maintain a Supplier list that contains basic details of all registered suppliers and
multiple suppliers for all commonly procured items.
The DRC Approved Supplier list does not affect the need to adhere to procurement procedures based on thresholds,
and no obligation is implied on behalf of DRC to any Approved Suppliers listed.
Access to the Supplier list shall be strictly controlled and the full register shall only be available to DRC procurement
staff. Where a peer agency requests DRC to share a supplier list, all proprietary information pertaining to ratings, prior
orders/experience, and commentary shall be removed before providing it.
In addition, a file shall be opened on each registered supplier, which shall as a minimum contain the following, prior to
any contract or order being placed:
 Completed and signed Supplier Registration Form
 A signed copy of DRC Supplier Code of Conduct
 The supplier Evaluation, Due Diligence & Vetting, and Approval data
 Copy of Company Registration
 Copy of Tax Certificate (if applicable)
As a relationship is established with a supplier — particularly for high value contracts — the supplier file may be
extended with:
 Financial statements.
 Annual Report if relevant.
 Proof of banking details.
 Notes on any limitations, goods, services.
 Any data regarding prior performance
 Any data relevant to supplier’s performance relating to previously awarded of DRC contracts.
 Copies of; or reference to completed Purchase Orders and Contracts.
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ACTIVE SUPPLIERS MANAGEMENT & PERFORMANCE EVALUATION

Once Suppliers has been approved, and as mentioned in the overview section, DRC aim to engage, build, and maintain
relationships with the professional- and competitive suppliers available on the market.
To access the supplier’s performance an evaluation system shall be established and maintained, and each contract
awarded, measured, and evaluated against the contractual obligations.
The supplier evaluation criteria shall be fair & objective with offset in the contractual obligations agreed, and determine
if the contract satisfy the following basics:
 Delivery ‘In Full’ ‘On Time’ and ‘within Specification’ (DIFOTIS) meaning: Was all the contractual commitments
delivered in full quantity, at the agreed time and according to the set specifications outlined in the contract?
Please Note:
 Only criteria controlled by the supplier, stipulated as his responsibility in the contract shall be used in the
evaluation.
 The assessment shall be fair to the supplier considering the environment we work in i.e. unforeseen or sudden
unset changes that could not reasonably have been foreseen. Counter acts, timely & good communication, early
warnings etc., should if deemed relevant have a weight in the evaluation
Suppliers that repeatedly underperform should be removed from the Approved Supplier List, temporarily-, or in grave
circumstances longer periods.
DRC does not blacklist suppliers.
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Figure 5: Supplier Process:
SUPPLY BASE OPTIMIZATION GUIDANCE

Supply Base Optimization is how Procurement Managers determine the optimal number and mix of suppliers. The main
objectives of achieving an ‘optimal’ supply base include easier administration, access to larger organizations who offer
a broader range of services, and the reduction of risk through the careful development of supplier relationships.
DRC Procurement Managers shall periodically assess and review the suppliers held on the approved suppliers list — in
both solicitation and actual contract awards, across different commodity categories, and consider whether the numbers
are appropriate. This can include ‘housekeeping’ for the sake of maintaining the utility of the database:
 Suppliers who have never been used may be systematically purged from the database if they have repeatedly
been unresponsive to solicitation or if their prices have been consistently high.
 Suppliers who have been used successfully at any time by DRC should not be removed.
 Suppliers who have been removed due to corruption or fraud, for ethical reasons, on any other grounds should be
purposefully retained in the Supplier list and clearly labelled as removed and ineligible for award.
If the number of suppliers is too high and goods are being routinely procured from a continuously changing source, this
may reflect poor procurement. Where the numbers are too low, procurement may be subject to unnecessarily
restrictive competition.
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Managing and measuring the supplier performance on the awarded contracts, is a crucial element to optimize, and
maintain a good Supply Base. DRC wants to promote, maintain, and further build the relationship with the good
professionally performing suppliers providing value for money.
Ultimately Supply Base Optimization is about continuously developing our knowledge of a market and determining
where and how best to engage with it. This should not be confused with the numbers of suppliers required for the
solicitation process per DRC procurement thresholds and procedures. Supply Base Optimization efforts should always
support DRC’s commitment to ensure fair competition and transparency, while ensuring maximum competition, as well
as getting relatively Best Value for Money.
In relation to supply base optimization, it is good practise to do a thorough market analysis, as well as consulting /
engaging with relevant UN Agencies and peer INGOs experienced with, and active on the relevant markets in question.
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QUALITY STANDARD 4 – PROCUREMENT STRATEGY &

PLANNING
DRC shall focus on procurement planning to ensure the best possible utilisation of available funds. Planning is a
continuous exercise with focus on the annual procurement plan and the project procurement plan in each country
operation. Good procurement planning will help DRC obtain Best Value for Money.
MINIMUM OPERATIONAL
PROCEDURES &
COMPLIANCE TOOLS
4.1. All procurement in DRC shall be initiated by a Budget CT 03: Purchase Requisition
Owner authorised Purchase Requisition or CT 01: Procurement Plan
Procurement Plan. CT 34: Procurement Tracking Table
4.2. PP / PRs shall be initiated and approved in a timely CT 03: Purchase Requisition
manner to allow effective and timely procurement CT 01: Procurement Plan
processing. These shall be submitted in accordance CT 34: Procurement Tracking Table
with agreed deadline.
4.3. An annual Country Procurement Plan for non-Project CT 01: Procurement Plan
related requirements shall be developed by the HOSS
in consultation with the Procurement Unit no later
than Q1 of the financial year.
4.4. Project Procurement Plans shall be drafted in CT 01: Procurement Plan

consultation with supply chain Unit at proposal stage
and the agreed plan presented latest at the Grant
Opening Meeting as part of supplement to the
Project Activity Plan
4.5. Procurement Plans shall identify opportunities for CT 01: Procurement Plan
consolidation of requirements, – across projects -
whereas the gross total amounts budgeted, will
determine procurement method to use and the most
suitable contract.
4.6. Requestors shall develop PR/PP’s independently and CT 03: Purchase Requisition
under no circumstance shall Procurement staff be CT 01: Procurement Plan
directly involved in the development thereof.
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4.7. The Requestor shall ensure that the PR/PP have CT 03: Purchase Requisition
sufficient information to enable the Procurement CT 01: Procurement Plan
Manager to initiate and adequately complete the CT 34: Procurement Tracing Table
procurement process and deliver the requirements in
a timely and cost-effective manner
4.8. Requirements shall not be intentionally split into CT 03: Purchase Requisition
separate Purchase Requisitions to circumvent higher CT 01: Procurement Plan Template
thresholds or authorization levels and thereby fast- CT 28: Procurement Threshold Table
track procurement.
Contract File as outlined in this OH
applies.
4.9. Consolidation of requirements and standardization CT 19-20: Purchase Agreements

shall be considered, as well as where relevant, Contract – Goods / Services
seeking opportunities for joint Purchase Agreements
4.10. Donor rules of Nationality and Origin shall be Donor Procurement Factsheet
explicitly investigated during proposal development Donor compliance advisor
and in discussion with the, donor compliance advisor, CT consultation
01: Procurement Plan
procurement manager and grant manager. Details of
applicable rules shall be highlighted in the
Procurement Plan / Purchase Requisition and any
foreseeable deviation requests attached as part of
the proposal submitted to the donor.

 CT Procurement 01: Procurement Plan
 CT Procurement 03: Purchase Requisition Form
 CT Procurement 19: Purchase Agreement Contract - GOODS
 CT Procurement 20: Purchase Agreement Contract- SERVICES
 CT Procurement 28: Procurement Threshold Table
 CT Procurement 34: Procurement Tracking Table
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PROCUREMENT PLANNING & -CONSIDERATIONS
CENTRALIZED & CONSOLIDATED PROCUREMENT GUIDANCE

The Country Operations should consider not only the origin of goods and services but also where each procurement
process is to be best managed from: At country office level, or at field level. These decisions depend primarily on
required management control vs. quality & compliance, and effectiveness, as well as on nature of the goods/
service/works, the procurement method to be applied, the supply base in country, and the resources available.
Centralizing procurement at the country office with access to a more sophisticated market may help collate
requirements to take advantage of scales of economy, reduce net workload, reduce corruption and fraud risks, and
provide better control of technical purchases. It may also be a necessity if goods/services/works cannot be sourced
locally.
For certain cases, such as procurement of construction and services it may be better to do so as close as possible to the
implementation site. Field-based procurement for goods can also lead to a better distribution of workload, after-sales
service and support, and the positive effects of DRC’s procurement activities on local economies.
Examples for consideration of rules for centralized & consolidated procurement:
 Procurement above a certain threshold, this procurement always to be coordinated through the Country
Office.
 High Value and complex tenders requiring high level of competencies, and attention to details safeguarding
quality and compliance
 Where Purchase Agreements may be in place for certain goods/services/works, this procurement always to be
coordinated through the Country Office.
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PLANNING, IDENTIFYING & SUBMITTING THE REQUIREMENTS

Requirements Definition is a crucial element of market research and project planning and starts much earlier than the
development of the approved Procurement Plans / Purchase Requisitions. The project plan cannot be started without
at least a high-level overview of procurement requirements and market research conducted as part of project planning
may determine requirements by presenting choices of specifications, suppliers, and services available.
Procurement Service Requestors pro-active and timely procurement planning is essential to initiate an efficient and
effective procurement execution that adequately supports the program objectives.
DRC divides procurement planning into two main cycles: Financial Year and Project Lifecycle.
Program Managers and other requestors shall consider and share procurement requirements, in consultation with the
Procurement Manager for every project, at an early stage in order to support the development and refinement of those
requirements, and to ensure relevant market-research and activity planning is undertaken in time to support the project
objectives.
Figure 6: Procurement Planning
Project
Procurement Plan
Project
Project Planning
Lifecycle
Annual Country Financial Year

Procurement Plan
COUNTRY PROCUREMENT PLAN

Where relevant, and where the requirements are not directly linked to the Projects, i.e. Administration and Operations
Support Functions (Finance, HR, IT, SC, Safety etc.), the Procurement Manager shall facilitate and promote the
coordination and development of a Country Procurement Plan in coordination with the Senior Management Team. The
Country Procurement Plan shall be aligned with DRC’s annual and strategic planning for that country, and establishes a
budget and narrative for the procurement strategy — what will be procured, where from, and using which procurement
mechanisms — as well as any changes this will incur to required resources and staff.
The Country Procurement Plan shall be based primarily on market research and demand-planning. Demand can be
established from:
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________________________________________________________________________________________________
 Analysis of spend from previous years

 Discussion with senior managers to determine their needs
 Emergency risk and preparedness planning
 Any relevant changes anticipated in the operating context (security, logistics, legislation)
PROJECT PROCUREMENT PLANS

A Project Procurement Plan is required to ensure proactive and timely procurement planning, as well as specify the
supply and service requirements over the project lifecycle so project requirements can be delivered on-time at Value
for Money, and to ensure that DRC can consolidate identical procurement requirements across projects with a view to
reducing costs by leveraging scales of economy and minimizing the administrative workload.
The Project Procurement Plan requirement shall be taken into consideration as early as possible after the proposal
submission, and no later than at the Grants Opening Meeting.
The Program Manager is accountable for its development in collaboration with the Procurement Manager.
The Procurement Manager shall sign off on the feasibility of the Project Procurement Plan prior to submission.
Adequate time shall be set aside for drafting and review thereof prior to submission.
The Project Procurement Plan includes:

 The different categories, descriptions and anticipated quantities of Goods/Services/Works required by the
program
 The procurement schedule and the needed-by dates the Program Support Items and Goods/Services/Works are
required
 The budgeted prices per the individual categories and items
 The foreseen procurement method
 Details of donor compliance requirements including Nationality and Country of Origin restrictions, as well as
any foreseeable Derogation requirements
CONSOLIDATION OF REQUIREMENTS GUIDELINES

The sum of the individual Programs Procurement Plans and requirements identifies opportunities for consolidating
requirements, while reducing he procurement workload and time, and shall identify how and when the various planned
requirements can be procured in the same tender process.
To the extent feasible the total consolidated quantity per category of goods, or per type of service, or design in the case
of works contracts across Programs, shall be consolidated and the gross total amount budgeted (including transport,
tax, insurance, and any other related costs) be the amount that determines both the procurement method to use and
the most suitable contract.
The following rules of thumb may help guide the decision:
 Where the goods, services or works are either identical or could conceivably be sourced from the same supplier
segment — through a single solicitation process.
 Where goods are in the same general category but reflect significantly distinct product types — such as laptops
and servers, or timber and cement — there are grounds for approaching different suppliers and non-aggregate
values may be used.
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 Where goods are in the same general category and there is a strong functional relationship between the two which
warrants consolidation. For example, the procurement of Corrugated Iron Sheeting (CGI) is usually accompanied
by ridge sheets, as well as fixtures and accessories such as roofing nails.
 Where the procurement involves the supply of fresh food and shall consider the seasonal availability of products,
each lot may be considered individually and not aggregated.
REQUIREMENTS DEFINITION & SPECIFICATIONS

The purpose of requirements definition is to identify the precise needs of the Requestor to facilitate the procurement
process. The requirements definition shall therefore include all relevant criteria that will be determining factors in the
evaluation of offers. A sufficient level of detail shall be provided to enable the Procurement Unit to successfully procure
the Goods, Services, or Works without needing to revert to the Requestor.
Requirements shall also be defined with a view to promoting fair competition. This means, for example, that use of
brands shall be avoided unless this is justified based on a standardization policy. Brands may be used to reference a
performance standard, but in this case the Procurement Plan / Purchase Requisition shall state that an equivalent
product of another make is acceptable on equal terms.
Table 3: Requirement Specifications Documents
Procurement Type Requirement Specification Document
Goods Technical Specifications

Terms of Reference, Technical Specifications & Deliverables
Services potentially supported by Key Performance Indicators (ToR /
KPIs)
Works Technical Design Documents / Statement of Work (SoW) /
(Construction) Specifications / Bill of Quantity/Materials (BoQ)
In the case of Goods, the Purchase Requisition incl. potential Annex’s, shall include all technical specifications; norms
and standards; maintenance guarantees; inspection requirements; and other necessary specification for the goods to
meet the expectations of the program. Where an approved standardization policy is already in place, the description
and specifications of g oods shall match current in-service equipment.
In the case of Services, the requisition shall provide the Terms of Reference (ToR); qualification and experience of
consultants required; output of reports; and other necessary specifications for the services to meet the expectations
of the program.
In the case of Works (construction), the requisition shall describe the design; quality standards of different materials
to be used; handling of defects; and other necessary specifications for the construction to meet the expectations of
the program. Alternatively, a functional specification can be used, so that the design and quality is left to the bidders.
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PLANNING & SUBMITTING THE REQUIREMENT
THE PURCHASE REQUISITION PROCESS

The Purchase Requisition (PR), or alternatively in form of a consolidated and Budget Owner Authorized Procurement
Plan initiates the procurement process and shall be raised in a timely manner. When the agreed submission date
approaches, the following process should be followed:
Requirements definition and related market research that has been conducted up to this point shall be reviewed and
collated by the Requestor in consultation with procurement and used to develop the PR accompanied by any required
specifications.
A PR can be initiated and drafted by any non-Procurement staff member, but it shall be authorized by the Budget Owner
prior being submitted to Procurement. Procurement staff shall be consulted as advisor in the drafting and development
of PR’s. This with due respect to the principle of segregation of duties between the Requestor and the Purchaser.
For complex procurement, the development of the PPR and specifications may require one or more review cycles in
collaboration with the Procurement Manager.
The Budget owner shall sign the PR to attest that the need is in line with project objectives and plans. If relevant, all
attachments shall also be signed and dated by the Budget Owner.
Prior to submission, and regardless of who developed it, the PR shall be:
initiated by the Requestor in coordination with procurement.
Authorized by the Budget Owner.
The development and issue of PR is an internal process and does not constitute any external obligation for DRC. The PR
shall be authorized by the budget owner. The budget owner’s authorization ensures that adequate program budget
funds are available to cover a future external obligation when the supplier contract is established.
The signature(s) on the PR shall contain printed name, title, and date. The completed PR are then submitted to the
Procurement Manager or highest procurement authority to initiate the procurement process.
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Figure 7: The Procurement Plan / Purchase Requisition Process
Procurement Planning
Grant Project Admin. Support
Agreement, Procurement Procurement
Project Plan Budget Plan
Procurement Plan(s) Supply

Review Procurement or Requestor(s)
Technical
& Manager Purchase Requisition(s) Specifications
Consolidate
Consultation: Procurement
Marked, Standards, Plan(s)
Technical or Budget Holder
Specifications, etc. Purchase Authorization
Requisition(s)
Budget Holder
Submission
By Deadline
Procurement
Review Obtain
Manager
& Required
Accept Information
Finance
Copy of Initiated
Procurement
PP/PRs for soft
Initiated &
Commitment
Actioned
Logging
The Procurement Unit shall carefully review the PP / PR – especially if they have not been consulted in its development
– and a decision made as to whether the information provided is enough to proceed. Procurement’s acknowledgement
of the PP / PR marks the beginning of lead time for the procurement process, so this step shall be formalized and dated
by creating the Contracts file and logging in the Procurement Table.
The Procurement Unit may not acknowledge a PP/ PR if it is deemed to be inadequately detailed, or if a moratorium on
new procurement has previously been declared due to approaching project deadlines. The procurement process cannot
be initiated before shortfalls or challenges are cleared off with the Requestor / Budget Owner accordingly
Returned PR’s or late PR’s may jeopardize procurement lead times. Since this could impact project implementation and
cost eligibility, the Procurement Manager shall track all PP / PR submission deadlines via the Procurement Table and
report late or inadequate PP / PR submissions to the Budget Owner and / or the Country Director.
A Purchase Requisition may be cancelled, by written request from the requestor, at any time prior to the issue of any
related purchase order or contract. The request to cancel the purchase requisition shall be copied to all signatories.
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STANDARDIZATION OF EQUIPMENT CONSIDERATIONS

DRC Country Programs are encouraged to introduce standardization of equipment where relevant and justifiable. Such
decisions shall be aligned with possible global standardization decisions and shall be documented and revisited as part
of the cyclic planning exercises.
It is often in DRC’s interests to reduce costs of ownership (including maintenance, repair, and training) by choosing and
setting a standard brand and/or model of equipment. This is typically desirable, for example, in the case for vehicles,
other motorized equipment (generators/pumps), Communications’- and IT equipment.
Such decisions made by the Region / Country, shall be determined by the relevant technical authority (e.g. the IT
Manager, the Fleet Manager), and approved by the Regional- or Country Director.
Where standardization considerations conflict with donor requirements (such as USAID’s ‘buy American’ policy) the
donor requirements take precedence and shall be followed unless an exemption can be sought. In both cases, the
Country Program shall be prepared to justify its standardization decision.
Where standardization is in effect, the relevant brand/model may be specified in the Purchase Requisition as an
exception to normal procedure.
USING MULTIPLE SUPPLIERS

The need to plan for cumulative amounts about the procurement method and authorization levels, does not preclude
the ability of the procurement process to yield multiple orders if this has been deemed necessary. There are several
cases where this may be desirable:
 Where more than one supplier is deliberately chosen to spread risk where project-critical goods are concerned.
 Where more than one supplier is deliberately chosen to facilitate delivery to different destinations.
 Where security constraints justify spreading the procurement across several suppliers to minimize specifically
identified risks
 Where the potential economic impact of the procurement on local communities can be optimized through
dealing with multiple suppliers
 In these cases, the total requirement should nevertheless be grouped to determine the cumulative value during
procurement planning and submitted as a single Purchase Requisition. The solicitation process can subsequently
subdivide the requirement into lots, thereby allowing for different suppliers to bid for and be awarded different
quantities of the order. In that case, solicitation documents should clearly state that DRC reserves the right to split
the contract award to individual lots.
If required, by a justifiable reason, the splitting of requirements into lots shall be determined and justified at the
planning stage, and this intention shall be clearly documented. Furthermore, if such a strategy implies non-compliance
with the donor’s procurement requirements, then the relevant donor shall be consulted.
NATIONALITY & COUNTRY OF ORIGIN RULES

Procurement Plans and Purchase Requisitions shall explicitly consider the country of origin of goods, and what is
applicable to conform to the donor requirements. Country of Origin (COO), is the country of manufacture, production,
or growth where an article or product comes from.
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DRC does not place restrictions on the nationality and origin of goods, however several donors do, and Program and
Procurement staff shall clarify these as part of proposal development and either plan to accommodate them or seek
appropriate Derogations where necessary.
Donor rules of Nationality and Origin shall be explicitly investigated during proposal development and in discussion with
the Procurement Manager and Grant Manager. Details of applicable rules shall be highlighted in the Procurement Plan
and any foreseeable deviation requests attached as part of the proposal submitted to the donor.
Please consult donor focal points & refer to donorpedias on INSITE
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QUALITY STANDARD 5 - SELECTION OF THE PROCUREMENT

METHOD
DRC uses procurement methods of increasing complexity commensurate with the estimated value of the procurement.
DRC may deviate from certain procurement procedures in clearly defined circumstances.
MINIMUM OPERATIONAL
PROCEDURES &
COMPLIANCE TOOLS
5.1. The Procurement method as outlined in the CT 28: Procurement Threshold Table
Procurement Threshold Table is applicable to all
procurement and shall be used, if procurement is not
performed via the derogation mechanism, or where
lower local thresholds than the standards have been
introduced.
5.2. Commodities’ or Services of same nature or group, shall CT 28: Procurement Threshold Table
be consolidated, and the consolidated estimated and CT 34: Procurement Tracking Table
budgeted value determine the procurement method to
use.
5.3. Intentional split of requirements is not allowed to CT 28: Procurement Threshold Table
obtain a lower threshold CT 34: Procurement Tracking Table
5.4. The Solicitation Requirements, as outlined in CT CT 28: Procurement Threshold Table

Procurement 28 – Procurement Threshold Table shall be
followed at any given time
5.5. Any deviations from the established procurement CT 25: Derogation Overview Table
method shall be through the prior approved CT 26: Request for Derogation
derogations mechanism.

 CT Procurement 25: Derogation Overview Table
 CT Procurement 26: Request for Derogation Form
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 CT Procurement 34: Procurement Tracking Table
DRC PROCUREMENT METHODS
Low Value Procurement DKK <10.000: (LVP) is the procurement of one-off non-recurrent goods/services or works
in the support of the DRC operations which are not considered stocks, assets or attractive items. Such low value
procurement may be for internal use (General Program Equipment) and in rare circumstances be for the direct use
of beneficiaries. Whereas not covered by this Operations Handbook, it is - on a local country or regional level -
recommended to establish local procedures, aligned with finance, allowing small and urgent one-off purchases of a
value under DKK 10.000 (refer to “DRC Policy Paper – Supply Chain – Low Value Procurement”).
Request for Quotation: An informal but closed – confidential & secure process whereby minimum of three (3) sealed
quotations are obtained, and their evaluation performed by a Procurement Committee comprising of representatives
from procurement and the Requesting department. The evaluation is conducted and documented in CT procurement
12_RFQ comprehensive tender report.
Invitation to Bid: A formal tender process with strict control measures in place. ITBs are used when requestor is specific
in what they are looking for and bidders are required to submit an offer to supply goods or services against a detailed
tender, and evaluation of competing offers is price focused such as supply of NFI kits, CRI kits, stationary, office supplies,
vehicle rental services etc.
Request for Proposal: A formal tender process with strict control measures in place. RFPs can be used when the
requestor wants vendors to outline how they will approach the problem or meet a requirement, based on the
information outlined in the RFP document. RFPs require more detailed and specific response and are evaluated through
a combination of technical & financial scoring matrix.
The ITB / RFP are divided into the below 2. Subcategories:
1. ITB / RFP - Open National Tender: The tender shall be advertised at a national level at a minimum for 14 days.
2. ITB / RFP - Open International Tender: The tender shall be advertised at a global level & National level (advertising
on the DRC website meets this requirement) at a minimum for 21 days.
For all ITB / RFP Tenders, At least three (3) bids are required, and the evaluation of those bids, is made by a formal
Tender Opening Committee appointed by the CD.
For all tenders, the tender process shall include the registration, reviewing, and approving of suppliers, if they are not
already approved suppliers to DRC prior to the solicitation of bids.
When deciding the procurement method to us, commodities or services of same nature or group should be
consolidated. When tendering for service contracts or Purchase agreements, the total estimated value forecast
dictates the threshold to use.
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Splitting of the requirements is not allowed to obtain a lower threshold.
The following overview Table 4: lists the procurement method versus the applicable value thresholds to be applied
to DRC’s four procurement methods. These thresholds reflect maximum ceilings, above which the procurement method
stated shall not be applied.
Each of these methods is described in more detail in Quality Standard 6 –Solicitation of this Operations Handbook.
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Table 4: DRC Global Procurement Thresholds Table or Procurement Threshold Table

International Operations
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Note: The Threshold Table, inclusive solicitation requirements, as well as additional and applicable explanatory notes
and details of appliance, are available as a printer friendly version in “CT Procurement 28_Procurement Threshold
Table” which Constitutes the full standard to follow!
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DEROGATIONS
Where the standard procurement procedures, inclusive the associated Minimum Operational Procedures described in this
Handbook, by justifiable reasons cannot be maintained, the derogation mechanism may apply to successfully meet program
objectives.
These derogation rules cannot be waived or altered at country level.
DEROGATION SCOPE & APPLICATION

Derogations are granted for specific procurement activities – these are usually one-time derogations and never generically
for a period unless it is for an Emergency Derogation. This means that the Derogation request shall be linked to a specific
procurement activity or series of activities related to PRs or a Procurement Plan.
Beyond the 4 exceptions listed in the end of this section, the Derogation request and approval process is mandatory
for all types of derogations listed in Table 5.
Derogations inherently reflect a higher degree of risk to DRC, particularly regarding the exposures to fraud and corruption,
and possible ineligibility of costs. Therefore, it is good practise to implement additional checks and controls in the derogated
process and outline those in the ‘Additional Administrative Requirements’ section of the Derogation Request Form. It is also
good practise to notify the Donor when the derogation mechanism is used.
To further reduce risk and exposures and to maintain full transparency any Derogation Request Forms shall always
fulfil the following standards:
 Duly Justified.
 Specific & To the Point
 Limited in Scope & Time
 Duly authorized prior to the derogation mechanism applied for, are taken into practise.
THE TARGET OF THE DEROGATION

Derogations can be sought for various reasons – Examples but not limited to:
 To avoid an applicable threshold and apply a procurement method normally used at a lower threshold
 To avoid seeking the number of quotations or bids stipulated at the applicable threshold
 To reduce the tender times and method against applicable standards
 To avoid specified formalities normally required in a tender process
 To avoid other donor-specified procurement regulations
DEROGATION REVIEW & APPROVAL PROCESS

The Country Director and Procurement Manager shall monitor levels of Derogations and continuously seek to develop
strategies to reduce their use and repetition. Derogations shall be avoided to the extent feasible.
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It is good practise to engage the Procurement Manager / Overall Responsible for the Supply Chain Function in Country,
Supply Chain Manager, Advisor, or HQ Supply Team in the review of the Derogation Request prior submission. This to
evaluate possible risk, exposures, and compliance issues, as well as assessing the needs of Additional Administrative
Requirements to mitigate those.
Finally, the Derogation Request shall be authorized and approved by the designated authority as per the Annex 25 (CT):
Derogation Overview Table.
Below you will furthermore find an outline of the expected review and approval process related to approval of derogations:
Derogation Review Checks & Approval Process: Country / Region / Headquarters.
 = Derogation Approved & Derogation mechanism applied can be activated! Confirmation backwards via organisatoric structure.
Originator of Derogation Overall responsible for
Supply Chain in country
Value exceeds Country

Country
Derogation Request Quality & Compliance CD Yes Yes Yes

CD Authorization Part of
Validation Approval
Threshold Value Region
No No No

Task Out-line
Thorough review & signoff of

Duly Justified?
the derogation for quality &
Specific & To the Point?
compliance to the OH
Limited in Scope & Time?
framework and intentions
Yes Value exceeds Yes

Quality & Compliance RD
Region
RD Authorization
Validation Approval
Threshold Value
RLPA No No
Value Exceeds Yes

Quality & Compliance HoD Yes Yes ID
DRC HQ
Validation Approval
HoD Authorization
Threshold Value
Approval 
HQ Supply Chain Hub
No No No
TYPES OF DEROGATION
Derogation to normal procurement process is divided into foreseen-, technical or unforeseen circumstances. Only the
circumstances included herein are considered valid justification for derogation. These are summarized in Table 6. and more
detailed guidelines on each type of derogation are provided.
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Table 5: Types of Derogations
Foreseen Circumstances Technical Reasons Unforeseen Circumstances

Security Sole Source of Supply Emergency
Absence of local media or means of Fixed prices by Government Absence of Bids, Unsuitability of Bids,
advertising a tender or Insufficient number of Bids received
Specialised Equipment Standardization of goods, Default of Supplier or Contractor

equipment, or spare parts
Area is only accessible to certain Additional Contracts

suppliers
Due to the geographical location,
only local suppliers can provide
Ad Hoc - Best Interest of the Organization
The types of derogations and it use if further explained below:
FORESEEN CIRCUMSTANCES
Security:
Derogation may be justifiable in cases where the local security context is such that public newspaper announcements of
tenders could, by causing an association with money or otherwise, attract unwanted attention to DRC and heightened
security risk.
Absence of local media or means of advertising a tender:
Ideally, large procurements should be undertaken at capital/ regional level where media means should be readily available.
However, in the absence of adequate local media channels in which to publish a tender notice and to avoid delay in the
procurement process, the Procurement Manager may wish to avoid the publication requirement of a National Open Tender
procedure.
Specialized Equipment:
For certain types of highly specialized equipment, the Procurement Unit may wish to seek a Derogation to enable the order
to be placed based on a Sole source procedure. The items in question are generally, but not limited to, i.e. the following
types of equipment:
 DDG Specialized Equipment

 Specialized Water and Sanitation Equipment
TECHNICAL REASONS
Technical reasons can be defined as the situation where the contract can be awarded only to one, or several, economic
operators such as in, but not limited to, the following cases:
Sole Source of Supply:
Procurement from a sole source of supply or services (e.g. sole authorized vendor of parts/services for a type of vehicle).
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Fixed prices by Government:

Prices or rates fixed by national legislation or by regulatory bodies
Standardization of supplies, equipment, or spare parts:

An approved DRC standardization policy for equipment renders competition impractical in the procurement of equipment,
spare parts, or goods.
Area is only accessible to certain suppliers:

An area is only accessible to certain local suppliers (e.g. an ongoing conflict) effectively excluding other suppliers from
competition.
Due to the geographical location, only local suppliers can provide:
UNFORESEEN CIRCUMSTANCES
Emergency:
An emergency is defined as an unexpected situation that is so compelling that, if not corrected immediately, would endanger
life, property or adversely affect essential operations. Additionally, the situation is so severe that it precludes normal
procurement through the methods described in this Handbook. Examples includes the sudden influx of large numbers of
refugees or IDPs to an area without the infrastructure to support them, fire, flood or other natural or man-made disasters.
Derogations based on Emergency can be used to avoid, normal non-emergency procedures and thresholds.
The RD/CD can request a waiver of normal procedures from Headquarters for emergency reasons, explaining why time and
context does not permit the normal procedures to be followed, and the alternative procurement arrangements that the
RD/CD proposes to make.
The decision on the status of Emergency for an operation falls under the responsibility of the Head of International
Department or in his/her absence the designated person. The decision shall be limited in time and regularly reviewed.
As a proactive and preventative mechanism to counteract possible emergencies, requirements, special thresholds, and
procedures should be incorporated into country emergency preparedness planning ready to be activated in the case of a
humanitarian emergency.
More detail is provided in the section Procurement in Emergencies.
Acceptable Bids & Insufficient number of bids

Insufficient bids received is the situation where less than three acceptable bids have been received. In these cases - and
where project timelines do not allow for the cancellation of the procurement process and re-solicitation of bids,
Derogation may be requested to proceed with fewer bids.
Default of Supplier or Contractor:
Supplier Default is where a supplier signs the contract but fails to deliver - either partially or totally.
Additional Contracts:
Additional Contracts can be defined as the supply of goods or the provision of construction and services not included in the
initial contract which have either become necessary for the performance of the contract or are otherwise required.
The conditions listed below must be met for Additional Contracts to be permissible:
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 The additional requirement was unforeseeable during the initial solicitation & contracting phase.
 The aggregate amount of additional construction & services does not exceed 50% of the value of the original contract.
For goods, the aggregate amount of additional contract does not exceed 20 % of the original contract.
 Changing contractors would be detrimental to the functioning of an existing DRC project
 No more than a year has elapsed since the award of the original contract
 The terms of the original contract can be retained in the Additional Contract without any substantial change
 Accumulative expenditure of total contract (Initial contract + additional contract) does not exceed the procurement
threshold used to establish the initial contract.
Given that all conditions above are met, an additional contract derogation may be requested by the relevant authority.
Ad Hoc - Best Interest of the Organization Derogations:
An Ad Hoc - Best Interest of the Organization Derogation is defined as any Derogation justified for any reason other than
those stated above.
This includes, but is not limited to: Move to a lower threshold; to reduce the tender period; to reduce the number of bidders
invited; deviate from standard tender methods / periods; in exceptional circumstances to conduct negotiations with a
bidder/supplier - and all other reasons not previously covered.
Best Interest of the Organization Derogations also cover ex post facto award, i.e. where goods or services have been
delivered prior to the issuance of a Purchase Order. All ex post facto cases shall be approved by the appropriate authority.
Relevant for all types of Derogations:
Derogations’ shall be approved according to the rules outlined in CT Procurement 25 - Derogation Overview Table, prior the
procurement mechanism applied for, are taken into action.
All Derogations shall be appropriately justified in the ‘Background & Context’ section of the Derogation Request form prior
submission.
The Derogation Request & Approval Process are mandatory for all Derogations prior starting the procurement activities
concerned.
STANDING EXCEPTIONS TO THE STANDARD PROCUREMENT METHODS

There are some exceptions where the derogation request & approval process, standard procurement methods,
associated MOPs and mandatory value threshold shall not be applicable; Namely procurement relating to Rent or
Lease of DRC premise’s’, procurement through Humanitarian Procurement, services provided by UN Organisations
such as Purchase on Particularly Advantageous Terms and procurement relating to Local Development Benefice.
UNHAS & WFP cargo & passenger flights and other services provided by World Food program Logistics Cluster either
directly or through a contracted third party have a standing derogation from DRC standard procurement procedures.
For these exceptions, the procurement action can be activated without applying the standard competitive tender
mechanism, and can be applied for any value, while adhering to the following instructions:
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1. DRC Premise’s’ Rent or lease Contracts. After assessing the requirements and prospecting the local market,
assuring having obtained the best price/quality ratio relative to the requirements, may enter directly into
contract, subject to having the authority to sign for such arrangement and financial commitments.
2. For ECHO Grants, procurement from ECHO-certified Humanitarian Procurement Centres can be conducted
directly without competitive tendering regardless of contract amount and type.
 For all other donors, procurement through HPCs should be investigated and formal approval from the donor
obtained prior using the HPC.
 DRC is currently registered with IFRC’s Global Logistics’ Service, OXFAM Logistics’ & UNICEF’s Supply Division.
Please consult HQ on the use of these and other HPCs.
 A note should be filed on all procurement through HPCs indicating that the purchase was done through a
certified HPC, approved by the donor.
For further information on HPCs, more information is available via below links to the Humanitarian Procurement
Centres:
 ECHO – Humanitarian Procurement Centres Info
 ECHO-certified Humanitarian Procurement Centres
 IFRC Global Logistics Service
 OXFAM HPC - Equipment Catalogue

 UNICEF Supply Division
3. UN services that are provided to INGOs and organizations can be contracted without a tendering process. A
service level agreement or equivalent shall be signed to agree on the terms & conditions.
4. Purchase on Particularly Advantageous Terms:
 A purchase on particularly advantageous terms can be defined as the availability to DRC of an opportunity
to procure goods or services at a cost that is heavily discounted cost compared to normal market prices as
have been determined through adequate market research.
 This may be the situation for example, where a supplier is winding up its business activities or another INGO
is leaving the country of operation and wishes to dispose by sale inventory stocks and assets accordingly.
The availability of such an opportunity may be justification to allow procurement without the standard competitive
tendering.
The use of this opportunity shall be supported by a clear, detailed supporting documentation and argumentation,
including evidence of comparable market prices. In addition, donor approval shall always be sought prior the
procurement action is activated.
5. Procurement Relating to Local Development Benefice:
 To support the economies of countries in which DRC operates, preference can be given to procurement of
goods manufactured in the area of the operation, where goods or services is readily available locally in the
quality required, and at reasonably competitive prices. Where the local economic situation presents an
opportunity to support local development that is significantly beneficial to at-risk communities, suppliers
based outside the local area may be deliberately excluded from competition. In cases where this reduces the
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number of bidders below the standard threshold or limits options for publication of a DRC business
opportunity, Local Development Benefice may be quoted – subject to clear documentation (note for file) of
the background and context - as the justification and waiver to the standard procurement methods.
 Relative to the context and relevant market availability, maximum competition between relevant suppliers
shall nevertheless be maintained and assured in the solicitation process.
In addition, the donor agreement shall up front list local development benefice as a deliverable/objective of the
respective Grant Agreement incl. that the planned procurement activities will only include local vendors to
support the local development benefice.
For all procurement contracts / purchase orders established under these standard exceptions 1-4, the normal
contract approval thresholds apply.
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QUALITY STANDARD 6 - SOLICITATION

DRC uses various solicitation methods commensurate with the estimated value of the procurement. DRC uses standard
templates and established timeframes to ensure good market participation.
MINIMUM OPERATIONAL
PROCEDURES &
COMPLIANCE TOOLS
6.1. All solicitation shall be made in writing using the standard CT Standard Solicitation Templates
solicitation templates provided
6.2. Attention to the details, quality, and completeness of the CT Standard Solicitation Templates
solicitation documents prior issuing or publication to
suppliers, is of crucial importance. This to provide full clarity,
avoid any doubt, questions or confusion by the Bidders which
can affect the fairness, and effectiveness of the solicitation
process
6.3. The award criterions shall always be clear, transparent, and CT No Standard Tool Available
objective giving suppliers an even and fair opportunity to bid.
6.4. The award evaluation criterions shall be agreed in writing CT Standard Solicitation Templates
prior to issuance of the tender. The evaluation criteria cannot
be changed thereafter. The shall be clearly stated in the
tender documents
6.5. Tender shall be sent to as many suppliers from the supplier CT Procurement Threshold Table –
list as is required to support genuine competition and ensure Solicitation Requirements &
the return of maximum responsive bids from separate Notes
suppliers
6.6. ITB /RFP Open National Tenders shall allow a minimum of 14 CT Standard Solicitation Templates
days from the Tender Invitation Date to the Tender Closing CT Procurement Threshold Table
Date & Time (bid submission deadline).
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6.7. ITB / RFP Open Intl. Tenders, shall allow a minimum of CT 04-10: Standard Solicitation
21 days from the Tender Publication date until the Templates & Documents.
Tender Closing Date & Time
CT Procurement Threshold Table
6.8. For ITB Open International Tenders, a local and CT 04-10: Standard Solicitation
International publication strategy shall be devised by Templates & Documents
the Procurement Manager in order to systematically
publish tender announcements in the most relevant CT 28: Procurement Threshold Table
media, and this shall be regularly revisited to ensure it is
kept updated.
6.9. For Invitation to Bid Open International Tenders, at CT 04-10 Standard Solicitation
least one International media channel is to be used. Templates & Documents.
CT 28: Procurement Threshold Table
6.10. DRC Counties shall where possible establish and CT 04-10: Standard Solicitation
maintain Purchase Agreements for commonly and Templates for RFQ / ITB / RFP can
regularly NFIs and Program Support Items. A be used, modifying these for FA
Framework Agreement should be considered whenever purpose.
standardized goods, construction or services need to be
regularly procured and the nature of the goods/service CT FA Contract templates for Goods or
lends itself to relatively stable pricing. Services refers.
6.11. All tender processes shall include a documented tender CT 04-10: Standard Solicitation
timetable which is provided to all invited suppliers as Templates & Documents
part of the Tender document.
 CT Procurement 04: RFQ Tender

 CT Procurement 05: ITB Tender Notice
 CT Procurement 06: ITB Tender - National & International
 CT Procurement 07: Technical Specifications Form
 CT Procurement 08: Tender Document Issuing Form
 CT Procurement 09: Bid Submission Receipt Form
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 CT Procurement 10: Tender Q&A Document Form

 CT Procurement 19: Purchase Agreement Contract – GOODS
SOLICITATION, TENDERING & BIDDING
The overall solicitation documents shall provide a clear and concise description of the requirements and contract award
criteria to the suppliers quoting or bidding for the contract in question. This includes beyond the full technical specifications
of the requirements, also Delivery Date, Place & Terms, as well as General Conditions of Contract and DRC’s Supplier Code
of Conduct between the parties.
Bid solicitation documents shall always include a warning addressed to Bidders stating that in case of default they may not
be considered for future contracts.
FIRM EVALUATION CRITERIA – NO CHANGE DURING PROCESS

The evaluation criterions shall be agreed by the requestor and procurement prior to issuance of the tender. The evaluation
criteria cannot be changed thereafter. The set evaluation criteria shall be clearly stated in the tender documents.
The evaluation criteria shall be the sole criteria to determine which bidder to recommended for the award of the contract.
SETTING THE CONTRACT AWARD CRITERIONS

The Contract award criterions are set as part of the requirements specification and the development of the tender and shall
not be changed during the tender process.
The contract award criterions shall always be clear, transparent, and objective giving suppliers an even and fair opportunity
to bid.
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Best Value evaluation requires an integrated assessment of different criteria and their relative importance. The relative
importance shall be determined in advance of the issue of the tender and be kept confidential until the contract award
evaluation. Best Value does not necessarily mean choosing the lowest price option. The following in random order are good
examples of considerations when setting the contract award criterions:
 Price
 Total Cost of Life
 Quality
 Lead-times
 Delivery Place, Times & Terms
 Previous Experience & References
TYPES OF SOLICITATION
LOW VALUE PROCUREMENT <DKK 10.000
Figure 8: The Low Value Procurement <DKK 10.000
The LVP DKK 10.000 procedure requires 1 written quote, from selected vendor and allows for the direct purchase of
goods/services/works, upon a directly given and documented price quotation, without tendering, from a supplier.
Note: Such low value procurement may be for internal use (General Program Equipment) and in rare circumstances be for
the direct use of beneficiaries.
Please refer to the DRC Policy Paper Supply Chain Low Value Procurement
IN-FORMAL TENDER PROCESSES
REQUEST FOR QUOTATIONS
Figure 9: The Request for Quotation Process

Recieve RFQ Goods/Services
Purchase Due Purchase Order
Invite RFQ at Least Three Comprehensive Received Invoice
Requisition Diligence Contract
Quotations Tender Report (GRN/SCC)
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The Request for Quotations (RFQ) tender is defined as an in-formal, but confidential and secure competitive solicitation
process to obtain minimum three bids from qualified suppliers. Full tender integrity shall always be maintained. Process
entails completion of full RFQ Comprehensive Tender Report incl. associated documentation.
The Request for Quotation Template provides a standard RFQ solicitation format for suppliers to return their response. The
completed RFQ bid response shall be signed by an authorized representative of the supplier, dated, and stamped. Suppliers
shall be given sufficient time to respond to RFQs.
For RFQ’s, there are no set minimum tender period requirements but sufficient time should be allowed for suppliers to
complete the process.
The RFQs sent to each supplier shall be identical.

The RFQ Tender shall be sent to as many suppliers from the approved Supplier List as is required to support genuine
competition and ensure the return of at least three responsive quotations from separate suppliers. The RFQ should be
emailed or dispatched with a driver, not delivered by procurement staff.
For RFQ process minimum of 3 quotations are received for opening & evaluation. In case an RFQ process results in fewer
quotations – then Procurement Committee should advise on the way forward. Preferred course of action is to retender the
requirements, but a derogation as a last resort can also be sought if the project timelines do not allow for the cancellation
of the procurement process and re-solicitation of bids.
Note: Some RFQs may need publishing on the websites for a wide dissemination. Following websites may be used:
1. https://reliefweb.int/
2. https://ngotenders.net
Country Operations are required to register an account directly with these advertising platforms for publishing tenders.
If the procurement method / value thresholds dictate that a RFQ procedure is required, then the following procedure shall
be applied:
 Responses should be provided in a sealed envelope by mail, or send by email to a designated, controlled, and secure
email address, or by direct delivery to DRC’s premises, and not provided to DRC procurement staff. There should be
adequate security measures to prevent possible leakage or tampering of written quotations.
 RFQs should be kept safe as soon as they are received and placed into the secure RFQ Tender Box until the bid opening
process commences. If secure email address is utilized, this can constitute the Tender Box
 Responses shall be kept under lock and key, where the key is only available to the Procurement Manager. A tender box
in the reception area may be used for this purpose but only when no tender processes are active in parallel.
If samples are required as part of the procurement process, they should be provided at this stage and no later. Samples
should be treated in the same way as quotations, with respect to accounting, security, and transparency, and using a sample
register.
To proceed an RFQ by email refer to the SOP E-Tendering Mailboxes (Creating the e-mail address, removing it, and
delegating tenderbox access)”.
The Request for Quotations process is likely to be one of the frequently used and the Procurement Manager should seek
to consolidate planned procurement where possible into less procurement actions, and/or develop Purchase Agreements
to reduce the task and workload associated with the processes.
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FORMAL TENDER PROCESSES
INVITATION TO BID / REQUEST FOR PROPOSAL

The ITB / RFP tender is defined as a formal, confidential and secure competitive solicitation process to obtain minimum
three bids from qualified suppliers. Full tender integrity shall always be maintained. The process entails completion of the
ITB / RFP Comprehensive Tender Report incl. associated documentation.
The ITB / RFP process is governed by a formally appointed Tender Opening Committee representing the key stakeholders
who jointly review, evaluate, and recommend the award of contract(s).
The ITB / RFP tenders are divided into the following subcategories’, with their distinct requirements:
ITB / RFP OPEN NATIONAL OR OPEN INTERNATIONAL TENDER
Figure 10: The ITB / RFP Open National or International Process
The procurement thresholds dictate the tendering process to be used.

For an ITB / RFP Open National Tender(s), the Tender Timetable shall allow a minimum of 14 days and for ITB / RFP Open
International Tenders, minimum of 21 days from the Tender Publication date until the Tender Closing Date & Time (bid
submission deadline). Note: The 1st day of the ITB/RFP is not counted in the respective 14 or 21 calendar days.
The Tender Document(s) for an Open National/International Tender shall include:
 The notice or advertisement for publication of the tender

 Cover Letter, which introduces the tender process
 The Invitation to Bid (ITB) inclusive:
o Tender Timetable:
o including the opening date and all submission deadlines
o Last date for clarification
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o Supplier briefing session (recommended for complex procurements)

o Detailed Specifications for Goods, Services, or Works (Construction)
o INCOTERMS
o Delivery-Date(s), -Terms & Location and, if relevant, Schedule
o The set evaluation and contract award criterions
o Conditions of Tendering, including exclusion criteria
o Sample requirements
o Packaging requirements
 TOR, Technical specification sheet, or Statement of works
 Tender and Contract Award Acknowledgement Certificate
 DRC’s General Conditions of Contract (GCoC) and Supplier Code of Conduct (SCoC)
 Supplier profile registration form
 Reference form
 The Tender Bid Form (technical & financial) modified as per the requirements of the tender, including:
o Space for the supplier’s proposal for specification, price, and delivery
o Checklists for any information or documents requested
o Questions aligned to the agreed evaluation criteria
o A statement to be signed by the supplier confirming that all information provided in response to the tender
(Their Bid) is accurate and DRC’s terms & conditions are accepted (The Tender & Contract Award Acknowledge
Certificate).
The notice or advertisement for the Tender is published in appropriate on a publicly available media. The obligation to
advertise may be fulfilled by publishing an announcement in newspapers, technical magazines, or trade publications,
publishing the tender on specialized Internet sites and on DRC’s own website, or advertising the tender through television
or radio. The Procurement Manager can decide to use one or more of these channels, depending on costs and taking into
consideration the context and requirements of the Tender in each case.
For Open -National or -International Tenders, at least one National or International media channel shall be used in addition
to local media channels as given above. The National or International channel can be a newspaper, websites, specialized
magazine, or any other appropriate media that is published widely in relevance to the tender – country, region, or globally.
Donor rules must be respected when selecting advertising platforms. Some donors may have requirements to publish in
specific regions/ platforms. Please consult donor compliance and grant Manager.
Publication via the DRC website, and where required, in combination with publication in relevant local media, is
considered sufficient for international publication of ITBs.
A Technical briefing session for interested suppliers is recommended for complex tenders to ensure that bidders understand
purpose of the tender & submission requirements. This session should take place within the first week of the tendering process to
ensure suppliers get adequate time to ask additional questions and submit bids.
The objective of this session is twofold:
 For DRC technical staff to give an overview of the requirements, selection & awarding criterias and allow potential suppliers
the opportunity to seek any clarifications.
 For DRC Supply Chain staff to provide overview of the application process.
Topics mentioned below should be covered in the briefing session:
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 Introduction to DRC
 Details of DRC’s requirements
 Overview of the tendering process
 Required Documents
 Evaluation Criteria
 Tenbder Timelines
 Q&A
 Closing session.
All copy of presentation as well as questions & associated answers shall be published in the media mentioned in the tender package.
The Tender Documents shall be provided to all suppliers who respond to the advertised tender announcement.
Direct invitation of suppliers shall always be considered where these are deemed capable of fully meeting the tender
requirements and who will offer the most competitive prices should be selected. The key selection parameters can include:
 Technical capacity to deliver the Goods, Services, or Works (construction) as per schedule
 Financial capacity
 Compliance with national or international quality standards for the product offered, or evidence of national and
international acceptance of its services
 Production capacity to provide after-sales-service for the goods, services, or construction
 Environmental compliance if applicable
The Tender Documents shall be made available to the supplier via email, download, available at the DRC’s premises,
Suppliers shall sign, and provide the date and time stamp, for receipt of the Tender Pack using the Tender Document Issuing
Registration Form.
Suppliers shall deposit their sealed tender response at DRC’s premises in the locked tender box, as per the instructions
detailed in the ITB / RFP before the specified bid submission deadline. DRC shall sign for receipt of bids, and provide a date
and time stamp, using the Tender Document Receipt Registration Form.
Note: For all open high value tenders above 1.5 million DKK, it is highly recommended that bids are required to be submitted
in duplicate using separate envelopes. This redundancy mechanism provides a security in case of disputes, complaints or
appeals in which the Tender process comes under scrutiny.
SINGLE STAGE - TWO-ENVELOPE TENDERING

For all ITB/RFP-ON and ITB/RFP-OI the Single-Stage / Two-Envelope solicitation procedure shall be used.
In the Single-Stage: Two-Envelope bidding procedure, bidders submit two sealed envelopes simultaneously, one containing
the Technical Proposal and the other the Financial Proposal, enclosed together in an outer single envelope.
Bidders shall be requested to submit two sealed envelopes: The first envelope must only contain the technical proposal,
company information for supplier registration, , reference form, supplier code of conduct, any other annexes any other
annexes ; and the second envelope must only contain the Financial Proposal. The respective envelopes are to be marked
‘Part 1 - Technical Proposal’ or ‘Part 2 – Financial Proposal’ by the Bidder.
The objective of the two-envelope process split into a (1) Technical-, followed by a (2) Financial-evaluation, is to allow DRC
to evaluate the Technical Proposals first without reference to price.
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Initially, only the Technical Proposals are opened. The Financial Proposals remain sealed and are held in custody by the TOC
until the technical evaluation is completed.
Only bidders that pass the Technical evaluation) progress to the financial evaluation.
The second envelope (Financial Proposal) of the unsuccessful bidders from the first evaluation shall be returned to the
bidders unopened.
Following successful technical evaluation, the second envelope containing the Financial Proposals are opened. The Price
Proposals are evaluated, and following the TOC’s review of the price evaluation, the contract is awarded to the bidder whose
bid has been determined to be the lowest evaluated substantially responsive Bid.
All bidders are notified for the outcome of the tender process. A letter of rejection must be sent to all bidders the
participated in the tendering process and did not win contract.
REQUEST FOR PROPOSAL USAGE

An RFP is a formal solicitation process in line with the ITB, but is used where the request requires technical expertise,
specialized capability not necessarily held by DRC, or where the product or service being requested does not yet exist and
the proposal may require specialized knowledge, research and development or supplier capabilities to create whatever is
being requested.
The RFP presents preliminary requirements for the commodity or service and may dictate to varying degrees the exact
structure and format of the supplier's response. Effective RFPs typically reflect the strategy and short/long-term business
objectives, providing detailed insight upon which suppliers can offer a matching perspective. Typical areas where the RFP
tender process might be relevant are:
 Insurance Services
 Internet services
 Travel Agency Services
Overview of the ITB /RFP Tender Package Components
An illustrative example containing a comprehensive overview of the individual documents contained in the ITB / RFP
tender package, including explanatory notes to the individual document, is shown at the next page Figure 11, and is
available in printer friendly version in:
CT Procurement 33: ITB-RFP Tender Pack Dox Overview chart
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Figure 11: Overview Chart of the Tender Package Components
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THE TENDER TIMETABLE

A Tender Timetable shall include:
 The overall Tender Period
 The date of publication of the announcement (where relevant)
 The date of availability of the Tender Pack (ITB issuing)
 Deadline for Submission of Tenders (ITB closing)
 Tender Opening Meeting – Date, Time, and Place
 Tender Evaluation Meeting(s)
 Contract Award
 Deadline for Notification of Contract Award
 Bid validity expiry date
Consideration shall be taken for the technical complexity of the requirements, weekends and Public holidays and the means
that Bidders can submit their Bids. The more time that the Bidders have available to prepare and submit their Bids, then the
more responsive the Bids will be, especially in complex and technical ITBs.
Bidders shall have the same time to prepare Bids. In the case of International tenders, for example, the additional transit
time for couriered documents over long distances shall not be allowed to unfairly impinge on the Bid preparation time.
While the same deadline shall be applied to all Bidders, this could provide grounds for allowing the submission of tenders
by email or fax (albeit with a duly controlled process).
PURCHASE AGREEMENTS
Purchase Agreements are agreements with suppliers to provide specific goods and/or services at a fixed price over a fixed
period. This agreement may be for specific volume of goods/services to be delivered or it may be a blanket agreement for
supply, where the quantities and dates are not known and will be determined as per the requirement. Purchase agreements
(PA) are useful for items that are routinely procured, but for which volumes are not certain, such as offices supplies,
IT equipment, vehicle servicing. (Purchase agreements are not suitable for most types of works contract). There is not a
commitment to spend a certain amount in a Purchase agreement, and the program, whilst having the intention of procuring
the items, is not obliged to.
The benefits of the Purchase agreements are many:
• Maximises buying power, by consolidation of requirment & benefiting from ’economies of scale’
• Reduces the risk of corruption
• Longer term supplier relationship offers better services.
• Improved response to program as repetetive procurement processes for recurring purchases is minimised.
• Prevents ‘supplier fatigue’ by repetetive bidding process.
• Reduces need for bulk purchasing and associated storage issues
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Purchase Agreement is not a guarantee of exclusivity to one supplier: If during the agreement period, DRC determines that
PA no longer offers value for money, then PAs can be terminated, and a new solicitation process can be undertaken.
PA requires fixed prices for the period of agreement; however, in some market’s prices are so unstable that this is not
possible. In such cases following options are recommended:
• Put in place a very short Purchaseagreement (eg. 3 months or above) with fixed prices.
• Include a reference to a raw material index or benchmark in the contract that will be used to review prices
periodically.
• List prices in a hard currency, that will be more stable than that of the local market.
• Multiple Purchase Agreements (Primary & Back up) can also be established in parallel for the same goods/service
e.g. due to geographical considerations, or delivery urgency for large quantities. Note that in case of primary and
back up supplier agreements, the use of back up agreement is only triggered when the primary supplier defaults.
Examples Suitable for use of Purchase Agreements
Program Stationery
Construction Materials (e.g. cement)
NFI’s
Core Relief Items
Sealing Kits
Emergency Goods
Support Goods Stationery & Office Consumables (e.g. printer / photocopier goods)
Computer and IT Equipment
Communication Equipment
Vehicle Equipment and Spare Parts
Generators and their spare parts
Fuel and Oil
Support Services Freight and Haulage Services
Fleet Maintenance and Repair Services (for vehicles and generators)
IT Support
Office Equipment Servicing
Hotels Accommodation
Conference Facilities
Flights
Insurance
The solicitation method to utilize for a Purchase agreement shall be driven by the estimated and consolidated value over
the Purchase agreement period which dictates the value threshold and associated standard procurement method.
The procurement process (tender or quotation) used to select the supplier must be in line with the maximum estimated
forecasted spend for the life of the procurement contract. If the spend against a Purchase agreement exceeds that allowed
by the process undertaken, the agreement must be terminated and re-bid.
The duration of a PA shall be determined by the stability of the economy, market conditions, and the ability to reasonably
forecast requirements. The recommended duration for PA is between 3 months to 2 years. Purchase Agreements shall not
exceed 5 years. All PA shall have a specific end-date and cannot be open-ended time wise.
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When the PA is established, the associated and individual / specific Purchase Order(s) or Contract(s) shall be issued each
time the Purchase Agreement is used. These Purchase Order(s) / Contracts establish the formal order, and as such the
commitments between the parties.
All PA with forecasted accumulative expenditure above Country & Regional Director’s approval authority requires approval
Via High Value form. Approvals must be sought for complete value of the agreement period. For example: If the PA is
established for a period of 12 months with a possible extension of additional 12 months. The HVF must seek approval for
the total estimated expenditure of the first agreement period of 12 months of contract.
HVF submission for Purchase agreement:
a. Include PA number and estimated expenditure total value in the main section of the form.
b. Include currency exchange rate and date in the additional columns
c. The HVF remains valid until the complete value of the PA approved is spent or the PA validity expires.
Country operations not operating DRC Dynamics must monitor the utilization of the PA by following the guidelines in the
SOP for manual management of PA
For approval of subsequent POs under a Purchase Agreement, to attach to the PO a legible copy of the approved HVF (CT
procurement 15), and either a copy of the PA Fulfilment Report in Dynamics, or an excel overview of the PA utilisation.
Uploaded documents must be a scanned copy in PDF, and kindly pay attention the file size- usually between 200-300kb.
TENDERING VIA EMAIL

Until DRC has an electronic facility available to all DRC Countries for e-Tendering, DRC Countries that wish to use email for
Tendering via Designated, Secure & Controlled email during the procurement process, shall apply the following rules and
procedures.
RFQ Tenders: If required, RFQ bids can be received by dedicated, secure and controlled email address fully controlled by
the Procurement Manager
ITB / RFP Tenders: If required, the following e-Tendering Rules apply to all Invitation to Bid / Request for Proposals (ITB /
RFP) Tenders.
The moving to high value e-Tendering shall be the CD decision, and the CD is then responsible for ensuring the integrity and
security of both the process being applied, and the protection of bid submissions always.
Setting up an e-Tendering email address:
For detailed instructions on setting up the e-tendering email address, please visit the SOP on E-Tendering Mailboxes on
Insite.
Information to be included in the ITB/RFP documents when e-Tendering is used.
The Tender document shall clearly state the following:
 The email address for submission of Bids.

 The email address to be used for Tender questions.
 That the Tender Reference Number shall be entered in the email Subject Heading Line of the Bid Submission email.
Failure to do this will disqualify the bid submission, as it will not be opened by the Tender Opening Committee.
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 Where the two-envelope tendering process is used the email Subject Heading Line shall state either Envelope 1 or
Envelope 2. Failure to include this vital information will disqualify the bid.
 That DRC is not responsible for the failure of the Internet, network, server, or any other hardware, or software, used by
either the Bidder or DRC in the processing emails.
 That DRC is not responsible for the non-receipt of Bids submitted by email as part of the e-Tendering process.
 That bids can still be submitted to the DRC physical Tender Box (include location).
 Only the following types of files can be accepted via e-Tender are PDF, JPEG, TIF, or same type of files provided as ZIP
files
 The maximum file size that can be attached to the Bid email. Suggest no larger than 2MB.
 The same Bidder may submit both the e-Tender bid and a physical bid, however both bids shall be identical. If they are
not, then both Bids will be disqualified.
 Unprotected Word, Excel, or other unprotected files are not acceptable by e-Tender as the data in the file can be easily
manipulated.
 To avoid any ambiguity, the deadline for submitting offers shall be clearly specified in both local time and GMT.
During the Tender period:
 The Tender e-Tender email address shall not be opened or monitored during the Tender period.
After the Closing of Bids:
 The Tender Opening held in public should use a Power Projector to show the public that the bid submissions (emails)
are not opened.
 The responsible person shall Filter in Outlook by right clicking on the Subject tab, then clicking Options, and lastly clicking
on filter, and entering the Tender Reference Number in the search field.
 After this is completed, the responsible person shall take a screenshot of all the bids received (including the time and
date stamp in the lower right corner)
 After this is completed, the responsible person shall take a screenshot of all the bids received (including the time and
date stamp in the lower right corner)
 The emails are then opened one at a time and the normal process applied. The actual opening of the emails does not
need to be on the screen.
 The emails received shall be printed serving as a cover page for each bid, showing also the time and date of receipt, and
electronic Bids shall be printed out and signed by the Tender Committee in the normal manner during the Tender
Opening Meeting.
 Once the Tender Opening has been completed the Bid emails are to be moved to a folder with the ITB name within the
email account.
Matters that requires addressing:
 The tender Bid submission email address cannot, under any circumstances, be used for the receipt of tender questions.
Any questions sent to that address are to be disregarded and the email deleted after the opening of the Tender.
 The ‘Out of Office’ assistant is to be used as means of accepting Bids. This will provide the Bidder with the date / time
stamp that the Bid was received.
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 Ensure that suitable and current antivirus software is loaded on the computer being used to open the Bids.
 A Logbook is to be kept recording all times that the e-Tender email is opened.
 No one person is authorised to open the e-Tender email address by him or herself. The ‘four eyes’ principle shall be
applied whenever the e-Tender email account is opened. This means that at least two persons shall always be present
when the account is opened; one shall be an Expat who is a member of the Senior Management Team.
 The receipt of samples (when required) should be addressed.
 The Bidders Power of Attorney can be requested for international Bidders.
 Normal physical Tender Box should still be offered as an option and the applicable rules applied.
 The e-Tendering system shall be set up to provide adequate security protection against deliberate actions aimed at
unauthorized access to Bids submitted.
TENDER PUBLICATION VIA THE DRC PUBLIC WEBSITE

The following process applies for tenders published. 24-48 hours’ lead-time should be anticipated for Quality & Compliance
Review of the tender prior upload and publication.
Figure 12: Overview Process chart for Tender Publication via the www.drc.ngo
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TENDER QUESTIONS & ANSWERS DURING THE TENDER PERIOD

Relevant for all Tenders. - Supplier questions to tenders, and answers to same in the tender period, shall be formally shared
with all tenderer to ensure all bidders has the same information.
 All Q&A’s to be included.
 For RFQ Q&A’s can be communicated by email. For ITB / RFP Open National & International tenders, the Q&A’s should
be published at the same media as the original tender.
 It is advisable to include a deadline for Q&A’s a few days’ prior the tender closure date as inclusion in the original tender.
 Direct individual dialogue with tenderer by phone or email during the tender period shall be avoided.
Note: The quality of the tender and attention to the details is paramount to reduce the number of question and
requirements of providing answers during the tender period.
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QUALITY STANDARD 7 – MANAGEMENT OF SUBMISSIONS

DRC treats incoming submissions to tenders in a confidential and secure manner to maintain the integrity of the
procurement process.
MINIMUM OPERATIONAL
PROCEDURES &
COMPLIANCE TOOLS
7.1. Under no circumstances will a bid be opened, reviewed, or Tender Process Integrity:
examined, nor will it be marked or defaced in any way, prior to Confidentiality, Bids
the Tender Opening Committee, except for the writing of the Submission Registration,
date and time of arrival and if applicable a reference number. and Tender Box Security as
All information pertaining to ITBs shall be treated as highly outlines in this OH applies.
confidential and shall not under any circumstances be disclosed
to other bidders or to officials not directly concerned with the
procurement process, especially the evaluation process
7.2. Where relevant, a Tender Box shall be available in all DRC

Country Programs – at least at the country office - and shall be
placed accessible to the bidders, but off the Procurement Office.
7.3. The Tender Box shall be locked, and the keys held secure by a CT 12-13: Comprehensive
designated SMT Member (I.e. HOSS) off the Procurement Tender Report
Function. The Country Director may hold a second set
7.4. All bids received shall be logged with date, time and name of CT 09: Bid Submission Receipt
supplier or his representative placing the bid in the Tender Box. Form
7.5. Adequate procedures. Including a Sample Register, shall be in Sample Register

place for the management of samples submitted as part of
Tender, as well as other procurement processes.
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___________________________________________________________________________________________
7.6. All Formal tender procurement methods require CT 28: Procurement Threshold Table
minimum three bidders to be invited to bid and three
bids to be received, for the tender to proceed to bid
opening
7.7. The Tender Opening Committee shall be appointed in CT 12-13: Comprehensive Tender
writing by the Country Director in due time prior the Report
tender opening date.
 CT Procurement 08: Tender Document Issuing Form

 CT Procurement 09: Bid Submission Receipt Form
 CT Procurement 10: Tender Q&A Document Form
 CT Procurement 11: Declaration of Impartiality and Confidentiality
 CT Procurement 12: RFQ Comprehensive Tender Report
 CT Procurement 13: ITB Comprehensive Tender Report
MANAGING THE TENDER PROCESSES

Tender processes are a more in-depth procurement method designed to provide greater control, the maximum opportunity
for competition, and a more rigorous and detailed approach to the evaluation of offers. For this reason, DRC requires that
a tender process be used above the LVP threshold, however tenders may be also used below this threshold for particularly
complex or technical procurement if deemed required.
Tender processes take considerable time and effort to plan and carry out, and before committing to it, management shall
ensure that adequate time and resources are available to fully manage the process.
Three separate tender methods and thresholds apply to tenders divided into an informal and formal tender, reflecting
progressively more sophisticated forms of the process. These are:
1. Request for Quotation (RFQ) (Informal)

2. Invitation to Bid / Request for Proposal Open National (ITB / RFP -ON) (Formal)
3. Invitation to Bid / Request for Proposal Open International (ITB / RFP -OI) (Formal)
ITB / RFP -ON and -Ol, shall be openly advertised so that any vendor can submit a bid. On top of the open advertisement, it
is good practise always to invite as many known and capable suppliers directly, to foster maximum competition. (based on
the DRC Approved Suppliers List)
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THE TENDER BOX

All Tender Bid submissions shall be placed in a locked Tender Box which has a slot in the top wide enough to receive the Bid
envelopes, but small enough to prevent retrieving them without first unlocking the box. The following rules apply to the
Tender Box:
 The Tender Box shall be locked, and the keys held secure by a designated SMT member (I.e. HOSS) until the tender
opening date and time. A second set, also held secure, may be held by the Country Director.
 The Tender Box shall be in a position accessible to Bidders directly without requiring them to first give their bid to a DRC
staff member. However, the box shall also be in a secure place.
 Where possible, the Tender Box should be placed in a Reception area where a DRC Receptionist can be tasked with
monitoring submission, annotating the supplier name, date, and time maintaining a register of submissions via the
Tender bid submission receipt form. CT Procurement 9: Bid Submission Receipt Form
 If practicable and manageable, Bids can also be received by email, where the email account constitutes the ‘Tender
Box. This option is only optional, subject to bids being send to a secure, controlled dedicated email account
guaranteeing the tender process integrity. See further details in the section Tendering via Email page 79.
Any tampering or unauthorised access / opening of the Tender Box by any DRC staff member shall be treated as a serious
misconduct.
Once a bidder places their Bid in the Tender Box it cannot be withdrawn except by submitting a letter that withdraws their
Bid from the Tender Box.
When bids are accepted via Courier-Express Services or email, equivalent measures shall be taken to protect the
confidentiality of Bids, including:
 Safeguarding the incoming and sealed bids send by Courier-Express Services and ensure that a designated DRC official
registers the receipt and places the envelope into the Tender Box immediately.
 Using a designated, controlled and confidential email address which is created for the sole and exclusive purpose of the
specific Tender process, whereby the password is only held by the CD or his delegated Chairperson of the Tender
Committee, and email account only accessed on the date and time for the tender opening.
 During the opening and evaluation of the bids, the evaluation committee must indicate on the bid receipt registration
form the details of the bids that are received electronically.
The SOP for electronic tender box can be accesses here
SAMPLES
When samples are required to be evaluated as part of the tender process they shall be treated the same as a bid in that
they require full accounting and security at all times so that transparency is maintained, ensuring that the substitution of
samples cannot manipulate the procurement process.
Upon arrival, the receipt of samples shall be recorded in the Bid Submission Receipt Form. The sample shall then be tagged
or labelled with the Bid Submission Receipt Form number of the bidder.
Samples shall be stored in a secure place and the key held by the Procurement Manager who shall maintain a Sample
Register containing the following:
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___________________________________________________________________________________________
 Item description
 Quantity received
 Name of Bidder
 Date received
 Date disposed of
 Method of disposal
During Tender Opening, all samples shall be made available and inspected by the Tender Opening Committee as the bid is
opened, and the Tender Opening Committee shall sign to attest the availability of the samples received.
The Tender Report shall record the samples that have been received and the outcome of the technical evaluation. For Kits,
each individual item of the kit shall be recorded as received and the evaluation result.
For storage of samples after contract award the following apply:

 Keep the sample of winning bidder until completion of contract performance, as a reference for the content and
quality.
 Samples from non-awarded bidders, can be returned to the supplier upon their request and at their cost. If not
confirmed within a reasonable period or not picked up, the sample should be disposed at our discretion. (Standard
Disposal Process Apply.)
 It is good practise to keep photos of all disposed samples on file
INSUFFICIENT BIDS
Insufficient bids received is the situation where less than three acceptable bids have been received. In these cases - and
where project timelines do not allow for the cancellation of the procurement process and re-solicitation of bids, Derogation
may be requested to proceed with fewer bids.
The original terms of the Bid Solicitation Document shall not be substantially altered (quantity, description, specifications,
delivery schedule), when proceeding based on an approved Derogation. Furthermore, the reasons why the RFQ/ITB/RFP
failed to attract sufficient acceptable bids, shall be analysed, and reported, and a future strategy should be devised to
mitigate for the risk in similar future procurement.
A bid is acceptable when it meets or exceeds the administrative and technical requirements as stated in the tendering
document. Any bid that does not meet these requirements and thus is eliminated prior to financial evaluation stage is
unacceptable.
An ITB process requires that at least 3 bids are received for opening & evaluation of tender and at minimum three bids are
acceptable so that there is a commercial comparison of at least 3 offers. In case a tender process results in fewer bids – then
Tender Opening Committee (TOC) should advise on the way forward. Preferred course of action is to retender the
requirements, but a derogation as a last resort can also be sought if the project timelines do not allow for the cancellation
of the procurement process and re-solicitation of bids.
Note: In case a tender is advertised in lots, each lot requires that at least 3 bids are received for opening & evaluation of
tender and at minimum three bids are acceptable so that there is a commercial comparison of at least 3 offers.
________________________________________________________________________________________________
___________________________________________________________________________________________
PROCUREMENT COMMITTEE
Bids resulting from a RFQ Tender shall be opened and evaluated by a Procurement Committee, consisting of minimum two
persons: The Requestor / Budget Owner or his appointed representative and Procurement.
Management level engagement are always required (Procurement or Program).
The evaluation of responses and possible samples is completed jointly by the Procurement Manager and the Requestor
representative, based on pre-agreed contract award criteria as stated in the RFQ solicitation document, while taking care
to uphold the best value for money principle. The evaluation shall follow the same 5 steps as outlined next page under
Tender Opening Committee and in Figure: 13.
The Budget Owner or his appointed representative and the Procurement Manager is jointly the awarding authority for all
contracts resulting from RFQ’s.
All details of the quotations received and observations, as well as the joint recommendation of the bid evaluators concluding
the contract award shall be duly documented in the RFQ Comprehensive Tender Report, and signed off by all those present
at the bid opening.
Participation of the Requestor / Budget Owner may be by telephone, in which case their agreement shall be documented in
an email to the Procurement Manager, in which they shall unambiguously identify the recommended supplier.
TENDER OPENING COMMITTEE & EVALUATION

All bids resulting from ITB / RFPs shall be opened and evaluated by the Tender Opening Committee.
For all ITB and RFP Tenders, a Tender Opening Committee shall be appointed in writing by the Country Director in due time
prior the tender opening date.
The Tender Opening Committee shall include an odd number of members — 3, 5, or 7 (larger committees are not advisable)
— including:
 Chairperson: A senior member of staff – manager or above – who cannot be from the requesting program/department
or the procurement team.
 Member(s): Normally operational staff with significant responsibility from the requesting program/department. In the
spirit of impartiality non-operational staff members (e.g. Finance, HR, or Administration) can also be included as voting
members. For technical procurement, an appropriately qualified technical representative should always be included as
a voting member. In all case the ‘requestor’ shall be represented on the Tender Opening Committee.
 Sponsoring Officer: Normally the Procurement Manager.
All members of the TOC shall sign the Declaration of Impartiality and Confidentiality.
A public Tender Opening shall be held for all ITBs, adhering to the announced tender timetable, to which all Bidders shall be
invited to attend as observers. Attendance at the Tender Opening is mandatory for all Tender Opening Committee members
and optional for Bidders. A record of attendance shall be kept. During the Tender Opening, the Tender Opening Committee
shall not entertain any questions from the Bidders that are of material substance to the Tender process.
The tender opening and evaluation process for both RFQs’ and ITB / RFP tenders consists of 4 steps:
 The Administrative Evaluation

________________________________________________________________________________________________
___________________________________________________________________________________________
 The Technical Evaluation,

 The Financial Evaluation.
 The Contract Award
The Tender Opening Meeting should be held as follows:

 The Chairperson welcomes the TOC & bidders to the TOC opening meeting. Chairperson announces the details of tender
to be evaluated. The announcement from chairperson should contain following information at minimum:
o Role of TOC
o Role of Bidders (as an observer and np questions will be entertained)
o Code of conduct, anti-fraud, hotline, and email for reporting mechanisms
o Purpose of the meeting (only to ascertain the number of bids received within time frame & that it contains all
mandatory administrative documents). No bids will be evaluated in front of bidders
o Any Bids submitted late or submitted in unsealed envelopes shall be disqualified by the Tender Opening
Committee and returned to the bidder unopened under a covering letter.
At this stage, the tender box is unlocked, and bids are removed and numbered sequentially according to the time of
submission (refer to bid submission receipt registration form)
Note: For bids received electronically, please make sure that you have a printer available at the place of tender opening for
printing of the bids.
 The Chairperson announces the name of the company that have submitted the bids.
 All envelopes marked duplicate are placed to one side unopened.
 The envelopes are opened one at a time and the Bids checked to ascertain that they contain the administrative
documents specified in the ITB.
 Bids that does not contain the administrative documents are removed from the tendering process and announced.
o At this stage bidders are asked to leave the premises as the TOC would not open the envelopes and conduct
evaluation.
 All members of the Tender Opening Committee shall initial the Bids on all pages to ensure that no tampering takes
place
 The Tender Opening Committee shall record every Bid on the ITB Comprehensive Tender Report.
 The Tender Opening Committee shall review all pages of Bids for any alterations or corrections. If found these shall be
circled in pen and initialled by the Tender Committee.
 Arithmetic errors- A bid must be calculated for calculation errors. In case of an error in the calculation, the Unit price
per item/service will take precedence over the total price. The calculation must be corrected in with a red pen with a
signature by the TOC. Include this in the tender docs/letter.
 Any Bids in pencil shall be disqualified by the Tender Opening Committee and the Bid returned to the bidder under a
covering letter.
 The Tender Opening Committee shall document why any Bids are not accepted with the reason for the rejection.
 In case the majority of bids are failing in the administrative part of the evaluation rendering the competition ineffective,
the Tender Opening Committee may, on a case by case basis, provide additional 48 hours for the bidders to submit their
documentation. This applies only for non-substantial documents that wouldn’t alter the outcome of the supplier´s bids
(such as signed Code of Conduct, tax certificates, Supplier Registration Form, and similar)
 Any samples submitted in relation to the bid shall be presented and the Tender Opening Committee shall sign the ITB
Comprehensive Tender Report to attest to their availability.
________________________________________________________________________________________________
___________________________________________________________________________________________
 The ITB opening part of the Meeting is now concluded and the meeting adjourned, and the public access to the meeting
ends.
Note that no Bids may leave the possession of the Tender Opening Committee at the Meeting.
Figure 13: Overview of Tender Opening Committee Process.
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___________________________________________________________________________________________
QUALITY STANDARD 8 – EVALUATION OF SUBMISSIONS

DRC has a structured and compact standard methodology for evaluation of submission to ensure a fair, equal and
transparent process.
MINIMUM OPERATIONAL
PROCEDURES &
COMPLIANCE TOOLS
8.1. For ITB/RFP Tenders a Tender Opening Committee shall CT 12-13: Comprehensive Tender
be appointed in writing by the Country Director in due Report
time prior the tender opening date.
8.2. The TOC members shall declare their impartiality & CT 11: Declaration of Impartiality &
confidentiality prior the Tender Opening Confidentiality
8.3. The TOC shall consist of a Chairperson, normally the CD, CT 12-13: Comprehensive Tender
D-CD or SMT member, Members, normally the Report
Requestor (Budget Owner), Technical Staff and a
Sponsor, normally Procurement
8.4. The Comprehensive Tender Report shall be used to CT 12-13: Comprehensive Tender
support and document the integrated assessment and Report
to determine which Bidder should be recommended the
contract award. incl. the specific Tender document
and the relevant and associated
Documentation
8.5. Bid shall be evaluated for Administrative Compliance, CT 12-13: Comprehensive Tender
followed by a Technical and Financial Evaluation as per Report
the award criterion’s set in the tender.
incl. the specific Tender document
and the relevant and associated
Documentation
________________________________________________________________________________________________
___________________________________________________________________________________________
 CT Procurement 11: Declaration of Impartiality and Confidentiality

BID EVALUATION & CONTRACT AWARD
TENDER OPENING & BID EVALUATION

A public Tender Opening shall be held for all ITBs, adhering to the announced tender timetable, to which all Bidders shall be
invited to attend as observers. Attendance at the Tender Opening is mandatory for all Tender Opening Committee members
and optional for Bidders. A record of attendance shall be kept. During the Tender Opening, the Tender Opening Committee
shall not entertain any questions from the Bidders that are of material substance to the Tender process.
The tender opening and evaluation process for both RFQs’ and ITB / RFP tenders consists of 4 steps:
1. The Administrative Evaluation

2. The Technical Evaluation,
3. The Financial Evaluation.
4. The Contract Award
Only bids successfully passing the steps can continue in the process.
Contracts are recommended for award per the criteria’s set in the tender, which is normally based on the Best Value for
Money or lowest acceptable bid.
TECHNICAL & COMMERCIAL EVALUATION OF SUBMISSIONS

Technical and Financial Evaluations are not public and no bidders are permitted to be present during this stage, although
the donor may be invited to attend as observers.
At this stage samples are checked if required.

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___________________________________________________________________________________________
The tender opening committee makes the recommendations for contract award based on the criteria’s set in the tender,
and the best value for money principle
The Tender Opening Committee shall examine all original bids, and samples where applicable, and, on the basis of the
selection and exclusion criteria stated in the ITB / RFP, conduct a thorough technical evaluation of all bids passing the
administrative compliance, and supplier approval process check. Only bids passing / meeting the Technical criterions
evaluation, proceed to the financial evaluation
The Comprehensive Tender Report and included checklist shall be used to support and document this integrated assessment
and to determine which Bidder(s) should be recommended for the contract award(s).
If the lowest acceptable bid is not selected, a justification should be made in the report.
The Procurement Manager shall ensure the Comprehensive Tender Report and all bids are filed in the contract file for the
tender. Where practical the bids made are kept in separate folders or boxes which are suitably marked and secure
EXCLUSION CLAUSES
Contracts shall not be awarded to Bidders who, during the Tendering process are:
 Found to misrepresent information regarding themselves, or the goods/services that they are bidding for, in supplying
the information as part of a solicitation process. This includes omitting applicable information.
 Subject to a conflict of interest
 Involved in the development of specifications and/or terms of reference for the ITB/RFQ in question
Definition of Conflict of Interest A conflict of interest is a situation in which the interest of DRC competes or conflicts with
the financial or personal interest of a DRC staff member, a Bidder, or a Supplier. Some examples of conflict of interest are:
 A DRC staff member takes place in the selection of suppliers and one of the suppliers under consideration is his family
member, relative or close friend
 A DRC staff member has a financial interest in company under consideration for selection
 Staff members accepting gifts, loans, and favours, taking advantage of inside knowledge for a bidder to gain undue
advantage
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QUALITY STANDARD 9 – PROCUREMENT PROCESS REVIEW &

DECISIONS
DRC has a system for review of high value awards to ensure additional scrutiny of significant expenditures.
MINIMUM OPERATIONAL
PROCEDURES &
COMPLIANCE TOOLS
9.1. All procurement contract awards shall be reviewed by CT NA

the Supply Chain responsible to ensure compliance to
the process.
9.2. Proposed contract awards for approval by HQ shall be CT 15: Request for Approval - High
forwarded to HQ SCU for review and approval. Value Contracts
 CT Procurement 15: Request for Approval – High Value Contracts Form

 CT Authorisation 2: DRC Authorisation scheme
REVIEW OF PROCUREMENT PROCESS & CONTRACT AWARDS

All procurement processes that require formal tendering process (ITBs/RFP National & International) shall be reviewed by
the SCM responsible to ensure compliance to the DRC & donor procedures. While it is not mandatory that RFQ procurement
process is also reviewed by the SCM responsible, it is a good practice to conduct spot checks randomly to ensure proper
procedures are being followed for RFQ thresholds as well.
High value contracts represent a majority of the total procurement spending and are reviewed and authorised at a level
above the Country Operation. Financial limits for approval are established by an authorisation scheme available here and
on the INSITE. All procurement contract awards (DKK 1,500,000 and above) requires a review and approvals from HQ prior
a contract can be awarded.
For the review, you must share the following:

 Approved PR (OR DRC Dynamics PR Number)
 Tender report
 High Value form
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___________________________________________________________________________________________
 Electronic link containing all supporting documentation
The submission shall be reviewed by the Supply Chain Unit at DRC HQ who shall recommend, as appropriate, for contract
award be approved. The SCM shall ensure that the procurement process meets the Minimum Operation Procedures in this
Handbook and that any deviations are duly approved and explained in full. The SCU may ask for clarification as appropriate.
Upon satisfactory review of the process, HQ SCU will provide formal approval on the OH Annex CT 15 to enter into the
contract.
Turnaround time from submission to approval of procurement contract award is dependent on the quality of documents
submitted initially. Although, the SCU aims to take less than 2 days for approval, it is good practice to plan your high value
procurement to avoid unnecessary delays in implementation. It is responsibility of Country/Regional SCM to ensure that the
reports reflect 100% accurate information and is in line with the DRC’s procurement procedures.
Note: The High Value form (HVF) must be completed to include all requested information. The contract awards are made
for the complete duration, lots, value, and period of the Purchase Agreement. Therefore, approvals must be sought for
complete value of the agreement/contract period. For example: If the PA is established for a period of 12 months with a
possible extension of additional 12 months. The HVF must seek approval for the total estimated expenditure of the first
agreement period of 12 months.
1. HVF submission for Purchase agreement:
a. Include PA number and estimated total expenditure total value in the main section of the form.
b. Include currency exchange rate and date in the additional columns
c. The HVF remains valid until the complete value of the PA is spent or the PA validity expires.
2. DRC Dynamics PO approval

a. For approval of High Value contracts in DRC Dynamics, attach a legible copy of the approved HVF (CT
Procurement 15) to the PO in DRC Dynamics.
b. For approval of subsequent POs under a Purchase Agreement, to attach to the PO a legible copy of the
approved HVF (CT procurement 15), and either a copy of the PA Fulfillment Report in Dynamics, or an
excel overview of the PA utilisation. The guidance to include PA utilisation manually is available here
c. Uplaoded documents must be a scanned copy in PDF, and kindly pay attention the file size- usually
between 200-300kb.
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QUALITY STANDARD 10 – AWARD

DRC has a robust and transparent award system supported by an appointed of Procurement Committee or Tender Opening
Committee, and the process leading to the contract award is documented via the Comprehensive Tender Report.
MINIMUM OPERATIONAL
PROCEDURES &
COMPLIANCE TOOLS
10.1. Contracts shall be awarded to the supplier CT 12-13: Comprehensive Tender

recommended by the Procurement Committee / Tender Report
Opening Committee
10.2. Due Diligence & Supplier vetting shall be conducted and CT 12-13: Comprehensive Tender
concluded - repeated for High Value Contracts - prior Report
contract awards above the LVP threshold
10.3. The International/Regional Director shall approve CT 15: Request for Approval – High
contracts above Country Director’s authority prior the Value Contracts
contract award.
10.4. Complaints and Appeals on dissatisfaction with the CT As outlined in this OH

tender process, or the contract award, shall be directed
to the Country Director who will initiate investigation.
Conclusions’ shall be documented and kept on file
accordingly
10.5. Complaints and Appeals on the ethical conduct of DRC OH on Code of Conduct applies.
staff engaged in the process shall be reported through (CoCRM)
the Code of Conduct Reporting mechanism

 CT Procurement 15: Request for Approval – High Value Contracts Form
________________________________________________________________________________________________
___________________________________________________________________________________________
CONTRACT AWARD
Award shall be made to the bidder recommended in the Comprehensive Tender Report upon approval thereof by the
competent authority holding a Procurement Authority to sign the appropriate contract.
Before providing the recommended / awarded supplier with a Contract or Purchase Order, the Procurement Unit shall
ensure that the Due Diligence & Vetting / Supplier Approval Process has been successfully completed.
For already approved suppliers, and where high value contracts are recommended for award, it is recommended to revisit
the process to confirm supplier’s reputation and capacity against the specific contract.
For awards requiring review per Quality Standard 9, no award shall be made until the proposed award had been approved
in writing by the Head of International Department at HQ.
The award shall be communicated to the proposed bidder in writing, normally by issuance of the appropriate contractual
instrument per Quality standard 11.
Upon completion of the award, the Procurement Manager shall ensure that all unsuccessful Bidders are notified of the
Tender result in writing. The notification can be done by mail, Email, fax or published award notice in the newspaper or at
the DRC Website. The name and contract price of the successful bidder can be disclosed to unsuccessful bidders to
enhance transparency. This can only be done once the Procurement Contract has been signed by both DRC and the
Supplier.
NEGOTIATIONS
DRC does not conduct negotiations with suppliers in the contract award phase of the procurement. DRC considers that
bidders could inflate their bid prices knowing that they would have to give price concessions in future negotiation.
Negotiations are strictly discouraged with the suppliers. COs are expected to understand the market, budget adequately
and allocate resources to fulfil their project deliverables without a need for negotiation. However, there may be instances
where negotiation is necessary to deliver on a project such as insufficient budget due to recent inflation in an emergency.
Negotiations are only allowed through a derogation process. A derogation request to negotiate with the supplier must be
approved at the relevant authority. The derogation must include a detailed negotiation plan consisting of: Negotiation
committee, scope of negotiation, outcome expected, and an alternative plan should the negotiation fail. A negotiation
meeting minutes must be prepared in detail and signed off by the negotiation committee members as an agreed way
forward. A revised quotation from supplier with new price can then be obtained to finalise the contract.
At least two DRC staff members shall undertake the negotiations. One shall be at ‘manager’ level, ideally the negotiations
should be led by the Supply Chain Manager or a member of the Country SMT.
Note: A negotiation can only commence at a request of DRC. Contracted party (supplier) reaching out to DRC to inflate
prices, change items, specifications, delivery, INCOTERMS or services contracted etc. is not part of the negotiation process.
This falls under the ‘default’ of a contract and must be dealt using the conditions stipulated in the GCC.
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COMPLAINTS & APPEALS

A complaint is an expression of dissatisfaction with a particular matter. An appeal is an expression of disagreement with a
decision – in the case of procurement, usually the choice of contract award.
Complaints and Appeals in relation to procurement is limited to the bidder’s dissatisfaction with the procurement process,
the contract award, or the ethical conduct of DRC staff engaged in the process.
Complaints can be raised from any source, both internal and external, and at any time during or after the procurement
process.
All complaints and Appeals shall be directed to the Country Director in writing. Complaints and appeals regarding the
procurement processes are not classed as complaints under the DRC ‘Code of Conduct’ mechanism. However, a complaint
against procurement staff shall be treated under the DRC ‘Code of Conduct Reporting Mechanism’(CoCRM).
The Country Director shall have the complaint investigated forthwith to explicitly determine whether the complaint
warrants the suspension of the procurement process which is the subject of the complaint, if this is still in progress, and
document that decision for the record.
Supply Chain Unit HQ shall be informed of all complaints and appeals regarding procurement. If the outcome of the above
procedure is not satisfactory for the complainant, then they may seek recourse through procedures established under
Danish Law.
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QUALITY STANDARD 11 – CONTRACTUAL INSTRUMENTS

DRC utilises standard contractual instruments and attachments to protect the interest of the Organization and to secure the
best terms and conditions.
MINIMUM OPERATIONAL
PROCEDURES &
COMPLIANCE TOOLS
11.1. Contract shall be written using the standard DRC CT 16-20 & 23: Standard Contract
templates. Contracts may be in the form of Purchase Template(s)
Orders, Service Contracts, or Works/Construction
Contracts.
11.2. All Contracts shall include the DRC General Conditions CT 21-22: DRC General Conditions of
of Contract (GCoC) and Supplier Code of Conduct (SCoC) Contract
forming an integral part of the Contract. CT 23: Supplier Code of Conduct
 CT Procurement 16: Purchase Order

 CT Procurement 17: Services Contract
 CT Procurement 18: Works (Construction) Tender - Contract
 CT Procurement 19: Purchase Agreement Contract - GOODS
 CT Procurement 21: General Conditions of Contract
 CT Procurement 22: Merged with CT Procurement 21
 CT Procurement 23: Supplier Code of Conduct
 CT Procurement 24: Contract Amendment
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CONTRACTS, -MANAGEMENT & -CLOSURE
TYPES OF CONTRACT
Depending on their object, the following types of contracts can be established:
Purchase Order: Covers the purchase of goods. The delivery of goods may in addition include sitting, installation, and
maintenance. For food aid contracts, specific clauses linked to quality monitoring and Incoterms should be respected.
Purchase Orders are a procurement contract and are known as supply contracts.
Service Contracts: Covers all intellectual and non-intellectual services other than those covered by Purchase Order, works
contracts and property contracts. Service Contracts are typically Cleaning, Maintenance, Travel & Flight Booking and security
services. Service contracts can include the following:
 Property Rent Contracts: cover the rental of land, existing buildings, or other real estate. (Note that purchase of
immovable assets can never be financed by the European Commission).
 Technical Assistance / Consultancy Contract is a contract where the commercial contractor is called on to play an
advisory role, to manage or supervise a project or to provide the consultancy specified in the contract Notes
 Vehicle rentals, with or without a driver, should always be treated as service contracts.
 Transport Contracts; Attention is drawn to the complexity and pitfalls of transportation and transport documents, and
the Country Office is strongly recommended to consult the UNHCR/international Guideline if major transport is
envisaged for a purchase, and to formulate local Policies and Procedures for both domestic and international transport.
 Rehabilitation of Building; Includes retiling, painting, repair/replace windows/doors, repair plumbing and/or electrical
requirements. Does not include structural repair.
Works / Construction Contracts: Covers either the execution, or both the execution and design, of works or the realisation,
by whatever means, of a work corresponding to the requirements specified by the contracting authority. A 'work' means
the outcome of building or civil engineering works that taken is sufficient by itself to fulfil an economic or technical function.
Works / Construction generally shall include one of the following:
________________________________________________________________________________________________
___________________________________________________________________________________________
 Ground breaking (digging into the earth)

 Structural Work (foundations, building structure, roof, etc.)
 Civil Engineering (road building, bridge building, etc.)
STANDARD CONTRACTS
DRC has standard Contract- and Purchase Order Templates, as well as global standards for General Conditions of Contract (GCoC)
and Supplier Code of Conduct (SCoC). This is to fully protect DRC under Contract law and to ensure that the contracted
suppliers and service providers fully meet their contractual obligations.
The clauses of these GCoC and SCoC shall not be changed to the extent feasible. Changes shall be done on a case-by-case
basis and only through DRC HQ.
Above the LVP threshold, only Approved Suppliers should be engaged and awarded a DRC Contract.
A Procurement Contract (Purchase Order/Service Contract), always includes the standard DRC General Conditions of
Contract (GCoC) for goods or services, and the Supplier Code of Conduct (SCoC) shall then be completed by the procurement
Unit outlining the:
 Specifications / Service Description
 Quantities
 Prices
 Payment terms
 Delivery Date(s), -Terms & -Location and, if relevant, -Schedule
 Start and end dates
 Any quality and service stipulations required
Two copies of the PO/Contract shall be duly signed by the relevant authority as per the IDRA and by the supplier. The staff
member signing the PO/contract shall hold a DRC Power of Attorney at the appropriate level in order to sign the contract
on behalf of the DRC.
If simultaneous signature cannot be accommodated, it is good practise to let the supplier sign first. Upon receipt of the
signed documents they shall be checked for corrections/changes/modification and only be signed if none can be found.
One singed copy shall be retained in the contract file, and the other provided to the supplier.
For the sake of advance notification, copies of the PO/Contract shall be provided to the relevant receiver: either a warehouse
manager or storekeeper, or in the case of services, the person who will manage the service.
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___________________________________________________________________________________________
QUALITY STANDARD 12 - PROCUREMENT & LOGISTICAL

CONSIDERATIONS
DRC is highly operational and includes major logistical principles in their procurement process including as part of the
specifications and award criteria.
MINIMUM OPERATIONAL
PROCEDURES &
COMPLIANCE TOOLS
12.1. Logistics’ considerations shall be included already in the

planning stage: Transportation Requirements, Insurance,
Delivery Terms, Lead-times, possible seasonal limitation
against time available, including the possible financial
implications.
12.2. Packing and labelling requirements shall be taken into

considerations already at the planning stage, and included
in the PP/PR onwards for the preparation of the
solicitation documents.
12.3. When goods, services or works are delivered, they shall be CT GRN / SCC / WCC
promptly and carefully examined, inspected and goods
counted to ensure that they fully conform to the contract
or purchase order.
Only if the Goods, Services, or Works are found to be in
conformity with the contract/purchase order - and where
relevant delivery note, a Goods Received Note, Certificate
of Service or Works Completion shall be used to confirm
the delivery.

 CT Procurement 35 : Completion Certificate (Works & Services)
 GRN : The OH volume on Warehouse & Inventory Management refers.
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___________________________________________________________________________________________
LOGISTICAL CONSIDERATIONS
Care should be taken to consider all related logistical aspects during planning and, particularly, in the preparation of the
Purchase Requisition.
PACKING AND LABELLING

The appropriate packaging of goods will depend primarily on the nature of goods and how they are to be transported, but
may also be affected by local legislation and climatic conditions (heat, cold, dust, humidity, mould, etc.). The potential for
damage to goods in transit should be given special consideration given the likelihood of rough handling. Also, staff safety
should be considered to ensure that packages are either of a safe handling weight and volume or that appropriate
equipment will be available to move packages.
Kitting and distribution plans may also affect requirements for packaging. Where a kitting service provided by the supplier
is part of the requirement, special attention should be given to efficient packaging and this is likely to be part of the
evaluation criteria.
From a transport perspective, labelling of packages might need to include:
 Consignee name
 Destination
 Packing Quality i.e. “Packed in Export Quality Cardboard Boxes of Intl. recognized quality
 Any special handling instructions (e.g. “Fragile”, “This end up”, etc.)
 Project identifiers
 Kit labels to facilitate storage and warehouse picking (e.g. “Household Kit”, “Hygiene Kit”)
SHIPPING AND TRANSPORTATION

Modes of transport include sea, inland waterways, rail, road and air. The transport mode is normally decided in consultation
with the Requestor and will be determined based on the required delivery date and costs, by the Supply Chain Function.
International Commercial Terms (Incoterms) are internationally-recognized standard terms of sale which define the
obligations of buyer and seller during transportation of goods. Incoterms determine where goods are to be delivered, costs
that are to be paid by the seller, and the handover point at which risk is assumed by the buyer. Incoterms are stipulated as
a three-letter code against a named place of delivery e.g. “DDP Duhok, Iraq”.
For goods not produced in-country, DAP (Delivered at Place) or DDP (Delivery Duty Paid) is generally the preferred delivery
terms. For DAP subject to local capability to organize the clearance of the goods concerned.
The DAP or DDP delivery terms is despite more cost full, currently our preference as these are leaving less risk to DRC.
If other delivery terms are considered, you should consult your Regional Supply Chain Manager or the HQ Supply Chain Unit.
RECEPTION & INSPECTION

As soon as goods, services or works are delivered, they shall be promptly and carefully examined, inspected and goods
counted to ensure that they fully conform to the contract or purchase order and where relevant, the delivery note.
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If the received goods, services, or works are found to be in conformity with the contract/purchase order and where relevant
delivery note, a Goods Received Note (GRN), Certificate of Service or Works Completion or equivalent document should be
established.
Random supervisory checks should be conducted both on the quality and quantity of the goods delivered to detect any
possible irregularities
Acceptance of goods, services and works upon delivery should be certified by designated staff members (appropriate
segregation of duties should mean that the staff member(s) authorizing the payment should not be the same as the one(s)
accepting the goods)
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QUALITY STANDARD 13 – CONTRACT MANAGEMENT

DRC has clear regulations on central contract management principles, including invoicing and payment, contract
amendment and termination.
The ‘Contract Management & Closure’, as well as ‘Procurement Documentation & Filing’ in relation to the Contract File is
previously described under the ‘Organization of Procurement in DRC’ section
MINIMUM OPERATIONAL
PROCEDURES &
COMPLIANCE TOOLS
13.1. A deliberate Three-Way Matching process shall be CT Contract File as outlined in this OH
established prior to making any Request for Payment applies.
arising from a DRC procurement process.
13.2. Procurement Contracts cannot be closed if there are CT Contract File as outlined in this OH
outstanding quantities still to be delivered, without an applies.
appropriate Contract Amendment.
CT 24: Contract Amendment

 CT Procurement 24: Contract Amendment
 CT Procurement 35: Completion Certificate (Works & Services)
GRN: The OH volume on Warehouse & Inventory Management refers.
MANAGING PAYMENT
Upon completion of delivery, or as and when any agreed milestones have been reached that dictate an agreed payment
(including agreed advance payments), the Supplier shall raise an invoice which shall be received by the Procurement Officer
and submitted, along with the relevant supporting documents to Finance to arrange payment, as per Contract Management
& Closure.
When approving a supplier’s invoice for payment, a Three-Way match reconciles the Contract / Purchase Order; the Goods
Received Note, Certificate of Completion, and the supplier’s Invoice, to determine whether the invoice should be paid in its
entirety.
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___________________________________________________________________________________________
Payment to suppliers shall be managed as per the following process:

Suppliers shall be required to issue invoices for payment at the time of the delivery of goods or in reasonable time thereafter.
Invoices from suppliers’/service providers should be examined, verified, and certified by the person authorized to proceed
with a disbursement (distinct from the Purchaser). This examination will include a cross-check supplementary
documentation such as GRN/SCC/WCC, Waybill, Delivery Note or equivalent, and any other documents required by local
DRC regulation.
If the Three-Way Match fails, however, the invoice shall be returned to the Supplier. This would be the case where the cost
and/or quantities invoiced do not match those in EITHER the contract or the GRN/SCC/WCC. (Note that in the case of part-
payments contractually agreed according to a delivery schedule, the Three-Way match may succeed for each invoice before
the entire contract has been honoured). The Supplier may then opt to correct and resubmit the invoice.
If the Three-Way Match succeeds, a Request for Payment can be made and forwarded to Finance along with relevant
supporting documentation (including the original invoice and GRN/SCC/WCC). Copies of all documentation including the
Request for Payment should be added to the contract file.
Payments for goods or services shall be made against duly certified invoices, receipt or claims within specified time limits to
avoid any undue delay
Regular reports on payment made for the procurement of goods & services shall be made available to the Country Director.
Any discrepancies and the result of investigation should be immediately brought to their attention.
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___________________________________________________________________________________________
Figure 14: Payment Procedures and the 3-Way Match
Purchase Order
PO Or
Service / Works Contract
Generate
GRN /SCC/WCC Goods Received Note
or
Services/Works
Completion Certificate
Invoice
Receive
Invoice from Supplier
Return Invoice to
Supplier
NO Three Way Match?
YES
Request for Payment
Both
Parties Accepts to proceed Final Delivery
within Revised NO or
contractual terms? Service Completion?
YES
YES
Match
Contract items Ordered
Contract
Contract Amendment =
File Closed
Contract Items Delivered
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___________________________________________________________________________________________
CONTRACT AMENDMENT
If during the duration of the Contract, there is a requirement to make changes to the contract then a Contract Amendment
shall be raised. Any changes to the terms of the contract must be made through a contract amendment, duly signed by both
parties. Amendment that leads to additional qty. or cost must be approved through an additional contract derogation.
Note: Correcting a TYPO is not considered an amendment.
Contract amendments are a written document that shall include the following:
 Reference to the original Contract Number

 The Amendment Number (sequential numbering)
 The change of Contract deliverables, please notice that unit price cannot be changed.
 The new Grand Total price if the quantities/services to be delivered / provided are amended.
 The Party that is requesting the Amendment and the reason.
 That all other Contract requirements and conditions remain extant.
Contract Amendments are not deemed to be part of the Contract until both Parties have signed the Contract Amendment.
Any changes to the terms of the contract must be made through a contract amendment, duly signed by both parties.
Note: Amendment that leads to additional qty. or cost must be approved through an additional derogation.
Contract amendments shall not substantially alter the original conditions and not call into question the award of the contract
to the selected supplier.
Contract amendments can only be valid when both Parties agree to the proposed changes. Where only one Party agrees
to the proposed change, it shall be discussed until c onsensus i s reached.
If common agreement cannot be reached the only options are for both Parties to fulfil their contractual obligations as
per the current Contract, or a t e r m i n a t i o n o f c o n tr ac t .
It is good practice to seek advice from HQ Supply Chain Unit.
SUPPLIER DEFAULT
Supplier Default is defined as the situation where, after the Contract Award is made, a supplier either refuses to sign the
contract per the terms of his bid (for example raises the unit price or transportation cost before the period of bid validity
has expired) or signs the contract, but fails to deliver either partially or totally.
In the event of Supplier Default the Procurement Manager can submit a recommendation to the Contract Awarding
Authority to award a contract for the remaining goods/services to the Bidder who submitted the second-best acceptable
offer, provided that his bid remains valid.
If the Bidder who submitted the second-best acceptable offer declines or defaults as well, the Procurement Manager can
propose the contract to the Bidder who submitted the third best acceptable offer provided that his bid remains valid, and
so forth.
In all cases a derogation shall be requested, approved and filed accordingly in the contract file.
If no Bidder who participated in the ITB accepts the contract, or if all the Bids are unacceptable, and project timelines do
not allow for the procurement process to be cancelled and restarted (or if this is deemed unlikely to resolve the problem)
________________________________________________________________________________________________
___________________________________________________________________________________________
then the Procurement Manager, may request a Derogation allowing him/her to conduct a new process at the lower
threshold.
Procurement Managers shall remain vigilant of the risks of collusion in such circumstances. Suppliers may deliberately
default to obtain the contract at a higher price under another name or might default in collusion with other Suppliers in
order to obtain a higher price. The Procurement Manager shall report any such suspicion as per the guidance on Corruption
and Fraud.
Where reasonable evidence of such collusion or fraud is available in the case of supplier default, a Derogation to resume
the process at a lower threshold shall be requested directly, without offering the contract to other bidders. The available
evidence shall be documented and attached to the contract file, and the supplier(s) concerned shall be removed from the
Approved Supplier list.
CONTRACT TERMINATION
A Contract shall only be cancelled in writing and the other Party shall acknowledge the receipt of the Contract Cancellation
Letter.
In circumstances where the relationship between DRC and the Supplier has deteriorated to an adversarial situation
and Contract cancellation is the only option, or the Supplier is refusing to sign the Contract Cancellation Letter, it
shall be sent by registered mail, or delivered by a third party who signs a statement of facts stating that the Letter was
delivered to the Supplier. This is especially important if the matter goes to Dispute as per Clause 25 of the General
Conditions of Contract.
CONTRACTS CLOSURE
A Contract can only be closed when the quantity ordered equals the total quantity delivered, at the agreed price as stated
in the Contract, and the final payment has been made.
The means of verification is the GRN(s) or Certificate of Service or Works(s) Completion and associated invoices
If above criterions have been fully satisfied, the contractual obligations of the Supplier have been fulfilled, invoiced, and
final payment made, the Contract can be closed.
If not, and the supply process is still within the contractually agreed schedule and terms, further deliveries and invoices may
be forthcoming and shall cycle through the same process until all contractual commitments are satisfied.
However, the supply process may be interrupted, delayed, or stalled, due to limitations of the supplier, changing
circumstances and need for DRC, or for any other reason whereby one or both parties decide not to proceed. In this case, a
Contract Amendment, to be raised amending the quantity to be delivered to the actual amount delivered. The Contract
can then be closed. See further details in the previous section on Contract Amendments.
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QUALITY STANDARD 14 – ADAPTIONS & SPECIAL CONDITIONS FOR

EMERGENCY MODE
Preamble:
To the extent feasible, the overall Quality Standards and MOPs as outlined in this Operations Handbook shall be applied in
emergency situations, and the DRC operation shall endeavour to implement these as soon as possible.
This Emergency Procurement Procedures are nevertheless available when, and as long as required, when DRC HQ has
declared a Cooperate Emergency. Use of the procedures are limited to the emergency programs, thus excluding non-related
programs in country.
Subject to prior written approval by DRC Risk & Compliance – Supply Chain Section, the procedures can, on application and
justification via the derogation mechanism by the Country Director, be extended to other Non-Cooperate declared
emergency programs.
MINIMUM OPERATIONAL
PROCEDURES &
COMPLIANCE TOOLS
14.1. All Emergency Procurement activities performed under CT Table 6 in this OH Volume:
this section shall be in due respect to the intentions, Emergency Procurement Threshold
frames and procedures outlined under this quality Table
standard
14.2. All Emergency Procurement actions undertaken via this CT CT Procurement 34: Procurement
procedure shall be duly documented via a dedicated Tracking Table apply.
and project specific Emergency Procurement Tracking
Table
14.3. Procurement Contract File and audit trail CT Table 7 in this OH Volume
documentation shall provide full transparency of any Emergency Procurement
procurement actions undertaken, and the minimum Documentation Requirements
requirements as outlined in Table 8 shall be available on
file
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___________________________________________________________________________________________
 CT Procurement 34: CT - Procurement Tracking Table (Template)

 CT Procurement 35: Completion Certificate (Works & Services)
GRN: The OH on Warehouse & Inventory Management refers.
Emergency Procurement Procedures

The Emergency Procurement Procedures support the objectives of the specific emergency intervention in terms of rapid
and effective beneficiary’s outreach, time, and budget limitations. The procedures are designed to assist the implementation
Team during the ‘Start Up’ and early phase of the emergency intervention for the first three months.
Each emergency is different. The availability of a local supply chain for provision of Goods and Service will determine the
possibility of the emergency team to fully utilize this procedure to support the objectives of the emergency intervention.
In line with the standard procedures, focus to proper procurement planning, and consolidation of requirements at project
start shall be maintained to support the execution of effective & efficient procurement actions.
In countries where DRC has an already established operation, the emergency team shall coordinate & communicate all
emergency procurement actions with the relevant stakeholders in the country operations. Where relevant, the same apply
with the respective Regional Office.
When required resources in terms of functional staff and required capacities are deployed, thus controlling, and managing
the emergency, it is expected that the standard OH on Procurement are applied.
The Emergency Procurement Procedures and thresholds are intended mainly for Emergency Program Support Items &
Services requirements during the initial ‘Feet’s on the Ground’ phase, as well as, if and when required, Life-Saving
Procurement Actions supporting the beneficiaries, where time is of essence.
Sound judgement, professionalism and full accountability shall be maintained at all times. Misuse of the intentions of these
procedures for other purposes or convenience, is considered misconduct by responsible staff.
THRESHOLDS:
To allow greater flexibility during the initiation phase of an Emergency interventions, the DRC standard Procurement
Thresholds and processes are amended to reflect the nature and potential urgency of emergency operations, whereas rapid
and timely response is of vital importance.
If and when justified, the emergency procurement value thresholds and procedures to be applied as per Table 8: Emergency
Procurement Threshold Table available at next page:
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Table 6: Emergency Procurement Threshold Table
Emergency
Procurement All Values in US Dollars - (USD)
Thresholds vs.
Solicitation Method GOODS SERVICES WORKS
Invitation to Bid (ITB)

Request for Proposal
Formal
3 60.000  60.000  60.000 

(RFP)
Open Tender
Request for Quotation

2 3.000  60.000 10.000  60.000 10.000  60.000
(RFQ)
In-Formal
1.000  3.000 1.000  10.000 1.000  10.000

1 Single Quote (SQ)
0  1.000 0  1.000 0  1.000
*) Please notice the standard Procurement Threshold Table: Note 3. g) and 3. i) ref. CT Procurement 28 – PROCUREMENT THRESHOLD TABLE
ITB / RFP Open tenders above the USD 60.000 threshold to follow the standard procedures.
For any Procurement under this Emergency Procurement Procedure, Sound Business Acumen shall be demonstrated and
maintained at all times. Staffs shall to the extent feasible foster genuine competition, and is strongly encouraged to seek
more than the minimum quotes / bids among capable suppliers, by direct invitation of all capable suppliers available on the
appropriate market of engagement.
If high value/high quantity NFIs etc. are required at the emergency initiation stage, and time is of essence and found
practicable, procurement requirements is recommended being sought through HPCs via SQ.
USE OF THE DEROGATION MECHANISM & APPROVAL:

If sourcing of high value / high quantity NFIs etc. is established via the local or near market, the normal derogation
mechanism apply based on the specific justification, needs and circumstances, but contrary to the normal OH standard, the
Emergency Derogations can be approved as follows:
 < USD 90.000 Budget Holder if authorized & appointed by HoD-DESS, or CD

 < USD 200.000 Head of DESS, RD, HQ HoD
 > USD 200.000 International Director
In all cases the budget holder and HQ Emergency Team Leader shall be notified accordingly, and a running register of all
derogations shall be maintained in situ.
The derogation approval process can be done via email, subject to documentation is retained on file.
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PROCUREMENT PAYMENTS:
To the extent feasible standard practices for payment shall be maintained, although it is acknowledged, that in the initial
phases of an EMPACT intervention the payment of the procured goods and services may to some degree be cash based.
This document does not address any DRC Financial considerations involved in the payment for goods and services.
RESPONSIBILITIES:
All staff responsible for emergency procurement under this provision, shall complete a DRC Bespoke Emergency
Procurement Training Module prior to being involved in, or undertaking the emergency procurement activities.
Segregation of duties shall always be maintained, so that the roles of the Requester, Approver, Purchaser, and Payer cannot
be vested in one (1) person. To the extent feasible 3 DRC staff members shall be involved in the process segregating the role
of (1) Requester, (2) Purchaser) and (3) Payer. As a minimum, one of the persons shall hold a management position, and be
appointed, the overall accountability & responsibility.
The basic principle of ‘the higher the procurement value is, the greater the requirement for accountability’, shall always be
observed.
If the segregation of duties cannot be maintained, prior approval of the Risk & Compliance Unit and Internal Audit Team
shall be obtained in order for the minimum oversight requirements to be identified and implemented.
DOCUMENTATION:
Documentation shall be kept for all procurement actions. The minimum requirement is a continuously updated
Procurement Tracking Table and the minimum requirements of documents as outlined in Table 8 of this Procedure. The
Emergency Team shall strive to maintain a full documentation trail in line with the OH.
In extreme situations, the written requirement can be fulfilled by keeping a notebook recording the details.
PURCHASE REQUISITION:
To ensure transparency, a duly authorized DRC Purchase Requisition (PR) shall be issued for the requested goods / services.
Procurement shall not be undertaken without such PR. In the rare and exceptional situations were a PR is not available, an
initial email can suffice, and the PR shall be approved together with a note to file (NFF) prior to the contract award.
Procurement processes started without an approved PR shall be flagged specifically in the procurement registry.
Emails can be used in lieu of an PR for notification of requirements and approval process where the email system (e.g.
Outlook) allows for electronic signatures. If used, the approval confirmations shall be printed out and retained on file for
audit trail purposes.
The normal approval process shall be followed, noting that in a ‘cash’ basis environment the finance approval requirement
may be omitted if the custodian of the cash is a signatory/approver of the PR.
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BID SOLICITATION:
All bids for requirements exceeding USD 1.000 shall be received in written form. They can be in person, per post/courier or
email.
The written requirement can be waived for very low value (< USD 200) consumable 1 items, where a written quote is not
practical or achievable from a local vendor. Where such items are procured without a written quote, the Procurement
Register shall reflect this. For all other requirements, there shall be a written quote.
All bids up to, and including RFQ can be received by a DRC secure and controlled email address. To the extent feasible a
generic DRC email shall be used however. If a generic DRC email is not yet available, then bidding to an Expat staff members
DRC email account is acceptable until such time that a generic email can be established. Under no circumstances can private
emails receive bids. The emails and attachments shall be printed and placed on file.
For Procurements, lower than the SQ threshold, a pro forma invoice may substitute a bid, and where pro forma invoices are
not in accordance with local commercial practice, an invoice can exceptionally serve as bid.
In extreme situations, bids over USD 1.000 that are received by phone, may be accepted, provided they that are received
by phone they shall be documented, either by Supplier SMS confirmation or confirmed by an Expat staff member, preferable
an independent person off the procurement function (NFF).
CONTRACT AWARD:
The selection and award of contract shall always be transparent. For any solicitation above the SQ threshold, a bid analysis
comprising of a technical evaluation and financial evaluation shall be completed under the ‘best value for money’ principle.
The bid analysis shall as a minimum be in the form of a ‘Note for File’ (NFF), and it shall be signed by two staff members of
which one shall be a responsible Expat staff member.
Under the SQ threshold, a statement shall be recorded, that the quote received represents ‘best value’
PROCUREMENT CONTRACTS:
The normal DRC rules for DRC Procurement Contract authorization apply, and any contractual instrument shall be signed by
a person included in the appropriate IDRA and be a holder or delegated the DRC Power of Attorney.
For any award over USD 1.000, a written contract 2 is required. If possible and practicable, written contracts should be used
for all purchase irrespective of value, and special effort shall be made for attractive goods otherwise classified as ‘assets’.
For awards under USD 1.000, the requirement for a written contract can be waived when the goods / services are paid for
by cash against a written invoice containing the full details of the supplier and upon receipt of the goods.
1
Consumable items are those items that lose their value on first application – office stationaries, batteries, coffee, sugar, water, toilet paper,
etc.
2
A DRC written contract involves at a minimum a DRC Purchase Order / Service Contract, DRC General Conditions of Contract (GCoC),
and DRC Supplier Code of Conduct (SCoC).
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Multiple ‘additional deliveries’ on existing contracts, can be applied to any DRC Procurement Contract up until 100% of the
original value of the initial contract.
Any additional deliveries to the initial contract up to the maximum of additional 100%, shall be undertaken by a DRC Contract
Amendment to the initial contract.
RECEIPT OF GOODS/SERVICES:
A DRC Goods Received Note (GRN) or Certificate of Service or Works Completion (SCC / WCC) shall be issued for all awards
exceeding USD 1.000.
For awards of non-technical goods below USD 1.000, the invoice can be considered as the GRN/SCC/WCC if the invoice is
certified that the goods were duly received.
PROCUREMENT IN EXTREME EMERGENCY SITUATIONS:

To the extent feasible the procurement process shall be documented in writing even in extreme emergency situation. In the
rare and exceptional cases where it is not physically possible to document in writing, including in a notebook or electronically
on a phone/tablet/PC, a NFF shall be raised after the fact fully detailing the procurement undertaken and goods/services
received.
The issuance of such NFF shall be the exception, and constitute a significant deviation from the norm, thus it shall be signed
by the EMPACT Team Leader and approved by the next higher authorization level.
Any emergency procurement undertaken in this manner shall be consolidated and conveyed to per email to HQ Emergency
Section - Head of DESS, and the Global Supply Chain section briefing outlining the event etc.
Such communications shall take place without undue delay, and the misuse of this deviation may result in revoking or
limitation of local signing authority
OVERSIGHT:
All staff involved in the EMPACT Team Procurement activities shall acknowledge in writing that all procurement will be
subject to oversight by the appropriate DRC party’s due to the relaxing of the DRC procurement rules and procedures.
To ensure that there is oversight applied on a high-risk area, a copy of the completed Emergency Procurement Tracking
Table (CT Procurement 34) shall be kept on file, and be shared on at least a monthly basis with DRC Internal Audit function)
for oversight purposes.
Scanned copies of the documentation shall be provided upon request by either party
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___________________________________________________________________________________________
Table 7: Emergency Procurement Documentation Requirements:
Event OH - Standard Requirements EMPACT Procurement Minimum Requirements

Submission of CT Procurement 3: Purchase Requisition CT Procurement 3: Purchase Requisition, NFF, Note for File (with full and concise
Requirement Email details) raised after the fact due to
urgency to affect the procurement
Bid Solicitation SQ: Vendors Letterhead SQ: < USD 1.000 – verbal Note for File (with full and concise
RFQ: CT Procurement 4: RFQ Bid Form, +SCoC & SQ: > USD 1.000 – email, paper, verbal but details) raised after the fact due to
GCoC confirmed (shall have NFF), Suppliers invoice urgency to affect the procurement
RFQ: CT Procurement 4 - RFQ Bid Form, +
SCoC, & GCoC (can be received by email)
Contract Evaluation & SQ: NFF RFQ: NFF Note for File (with full and concise
Award RFQ: CT Procurement 12: RFQ Comprehensive The NFF shall show the bid process, technical details) raised after the fact due to
Tender Report & financial evaluations, and reason for urgency to affect the procurement
contract award
Procurement Contract For Goods: CT Procurement 16: Purchase Order, < USD 1.000: No requirement if invoice Note for File (with full and concise
For Services: CT Procurement 17: Service contains all suppliers’ details details) raised after the fact due to
Contract > USD 1000: DRC Procurement Contract (for urgency to affect the procurement
For Works: CT Procurement 18: Works Contract goods services or works)
For all above followed by: GCoC, & SCoC

Goods Received Note For Goods: Goods Received Note < USD 1.000: Suppliers Invoice if certified that Note for File (with full and concise
For Services: Service Completion Certificate the goods/services were received details) raised after the fact due to
For Works: Works Completion Certificate urgency to affect the procurement
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________________________________________________________________________________________________
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QUALITY STANDARD 15 – ADAPTIONS & SPECIAL CONDITIONS FOR

REMOTE MANAGEMENT MODE
While operating in remote management mode, DRC shall maintain the Quality Standards and MOPs, as laid out in this
Operation Handbook, while establishing the necessary oversight, checks and controls required to meet the minimum
standards.
MINIMUM OPERATIONAL
PROCEDURES &
COMPLIANCE TOOLS
15.1. The Managing Office of Remote Managed sites shall establish

the necessary oversight, regular checks, and controls to
ensure that the MOPs are satisfied
15.2. Consider reduced value thresholds for what the remote site
can handle without managing office engagement
15.3. Randomly engage in Procurement Committee / TOC on Bid

Evaluation & Contract Award via remote connection (i.e. Skype
or phone)
15.4. Regularly check procurement documentation / contract files on

quality & compliance issues
None
________________________________________________________________________________________________
___________________________________________________________________________________________
The policies, standards and procedures as outlined in this operations handbook do also apply when operating in remote
management mode.
The managing office is expected to establish the necessary oversight, regular checks, and controls to ensure that the
minimum operational procedures, are followed by the remote management site at any given times.
When deemed required, the managing office is expected to provide support, remote checks, controls, and assistance on the
following areas of concern:
 Ensure adequate resourcing and capacity is available at the remote site to safeguard the procurement processes,
meeting the MOPs
 Provide training of remote site staff engaged in procurement activities via i.e. Skype or Webinar.
 Consider reduced value thresholds for what the remote site can handle without managing office engagement.
 Actively assist remotely on the tender documentation generation process.
 Quality & Compliance Checks on tenders’ prior publication
 Randomly engage in Procurement Committee / TOC on Bid Evaluation & Contract Award via remote connection (i.e.
Skype or phone)
 Review & quality check of contracts prior signatory
 Regularly check procurement documentation / contract files on quality & compliance issues
 Where irregularities found, increase the cycle of checks inclusive action plan until a satisfactory control and compliance
has been demonstrated by the remote site
________________________________________________________________________________________________
___________________________________________________________________________________________
QUALITY STANDARD 16 – TRANSVERSE TOPICS

DRC promotes environmental consideration, social responsibilities, and quality concerns in their procurement process.
MINIMUM OPERATIONAL
PROCEDURES &
COMPLIANCE TOOLS
16.1. Quality considerations shall be explicitly incorporated into all

DRC procurement and documented as part of every
procurement process.
16.2. Environmental & CSR considerations shall be incorporated

into all DRC procurement process and where relevant
documented accordingly
16.3. Any anticipated or foreseen risks within the supply chain, shall The DRC Operations Handbook on Risk
be highlighted and handled within the DRC Risk Management Management refers.
Framework.
None, but the OH volume on Risk Management refers.
ENVIRONMENTAL CONSIDERATIONS & SOCIAL RESPONSIBILITY

For environmental- and social-responsibility aspects to have an impact on the selection of DRC suppliers, these aspects
should be considered and designed into the requirement definition of the product to be purchased or quantitatively defined
and stated in the solicitation documents as a mandatory requirement to the suppliers.
PROCUREMENT QUALITY MANAGEMENT

The Overall Responsible for Supply Chain in Country shall encourage all stakeholders a high-quality approach and
incorporate mechanisms to ensure, a continuously improvement cycle, for the efficient, effective and timely provisions of
Procurement Services to the Operations.
________________________________________________________________________________________________
___________________________________________________________________________________________
The principle of ‘best value for money’ includes considerations for quality for all procurement actions and should include a
mechanism for the requestor to specify levels of quality required, as well as a verifying mechanism of quality and timely
provisions received. However, ongoing quality management is a shared responsibility between the Requestor, Budget
Owner & Supply Chain.
The Procurement Manager is responsible for incorporating quality considerations into the management of procurement,
but all staff engaged in procurement – whether directly or indirectly – contribute to that objective and share a responsibility
for continuous improvement in quality.
PROCUREMENT RISK MANAGEMENT

Risk is exposure to loss and can include a financial loss or the possibility of an event that may harm the integrity of an
individual or DRC. Risk analysis in the procurement process allows the ability to identify the origin, probability and magnitude
of the risk and helps direct attention to what might require more scrutiny or oversight during the process.
Key among measures to mitigate risks are a transparent process, open and fair competition to the maximum extent
practicable, segregation of functions, clear rules and procedures, standard documents, effective control systems,
accountability, and training of staff; Therefore, time to plan procurement is essential.
SUPPLY CHAIN RISK MANAGEMENT:

Annual Country- and Project Procurement Plan(s) shall explicitly consider the likelihood of any external disruptions,
associated risks relating to procurement plans, the supply base, or the operating environment, and the impact of that
disruption should it occur.
Any anticipated or foreseen risks within the supply chain, shall be highlighted and handled within the DRC Risk Management
Framework – the Operations Handbook on Risk Management refers.
Plans shall then be made where relevant to ensure supply chain response and continuity to those scenarios where the risk
is deemed high enough.
Perhaps the most obvious example in DRC’s case of the need for Supply Chain Risk Management is in emergency
preparedness. Supply chain and procurement considerations shall be an integral part of the Country Program’s emergency
preparedness planning and may include strategies such as prepositioning and readiness to switch to international channels
for procurement and transport.
Another scenario to consider for Supply Chain Risk Analysis is the possibility of a sudden, significant deterioration in security
which hinders program supply, program implementation or even causes DRC to suspend or withdraw its activities.
Supply Chain planning for such scenarios may include higher frequency ordering to avoid accumulated stocks, the use of
alternate channels – including suppliers – to ensure the delivery of critical goods, or planning for the sudden disposal of
goods.
SUBJECTS FOR FUTURE INCLUSION

This Handbook covers the fundamental issues for DRC. It is recognized that a number of specific issues should be included
in future updates. These include, but are not limited to:
________________________________________________________________________________________________
___________________________________________________________________________________________
• Procurement in Remote Management Context

• Procurement in Remote Partnership mode
• Procurement through partners
• Procurement through consortia’s – Interagency cooperation
• Procurement in Cash Transfer programs
• Procurement in Community Support Programs
• Procurement in Individual Protection Assistance Programs
• Procurement of Vehicles
• Further development within Works & Construction Contracts
________________________________________________________________________________________________
___________________________________________________________________________________________
ANNEXES: – TOOLS, STANDARDS, TEMPLATES & CHARTS

Introduction to Annexes:
The below listed Annexes are supportive and compliance tools (CT’s) to the Procurement Management and are divided and
labelled into the following categories:
 Standards: No change allowed at local level. Any request for modification shall be approved by the HQ Supply Team
 Standard-Templates: To be filled out with relevant information where indicated and can be amended to the specific
purpose and context, but text and paragraphs shall not be changed without prior consultation with the HQ Supply Team.
For Standard Templates in PDF format, there is included additional guidance text for completion in the mandatory fields,
simply pan the field, and the text will show.
 Form-Templates: Can be changed and amended for the specific purpose but should contain minimum the same base
information as the form-template(s)
 Templates: Can be changed as per your needs and discretion, as far as it’s pursuing the initial purpose and improving
the aim.
 Charts: Illustrative Supportive Charts aiming to visualize the processes and provide comprehensive overviews.
CT Procurement 1: Procurement Plan (Template)
CT Procurement 2: Supplier Profile & Registration Form (Standard-Template)
CT Procurement 3: Purchase Requisition (Template)

CT Procurement 4: RFQ Tender (Standard Template)
CT Procurement 5: ITB Tender Notice (Template)
CT Procurement 6: ITB Tender - National & International (Standard-Template)

CT Procurement 7: Technical Specifications Form (Form Template)
CT Procurement 8: Tender Document Issuing Form (Form-Template)
CT Procurement 9: Bid Submission Receipt Form (Form-Template)
CT Procurement 10: Tender Q&A Document Form (Form-Template)

CT Procurement 11: Declaration of Impartiality and Confidentiality (Standard)PDF
CT Procurement 12: RFQ Comprehensive Tender Report (Standard-Template PDF)
CT Procurement 12: RFQ Comprehensive Tender Report (Standard-Template WORD)

CT Procurement 13: ITB Comprehensive Tender Report (Standard-Template PDF)
CT Procurement 13: ITB Comprehensive Tender Report (Standard-Template WORD)
________________________________________________________________________________________________
___________________________________________________________________________________________
CT Procurement 14: SQ Contract Award Report (Form-Template)

CT Procurement 15: Request for Approval - High Value Contracts Form (Standard-Template)
CT Procurement 16: Purchase Order Form (Standard-Template)
CT Procurement 17: Services Contract (Standard-Template)
CT Procurement 18: Works (Construction) Tender - Contract (Standard-Template)

CT Procurement 19: Purchase Agreement Contract - GOODS (Standard-Template)
CT Procurement 20: Purchase Agreement Contract- SERVICES (Standard-Template)
CT Procurement 21_22: General Conditions of Contract
CT Procurement 23: Supplier Code of Conduct (Standard)
CT Procurement 24: Contract Amendment (Standard-Template)

CT Procurement 25: Derogation Overview Table (Standard)
CT Procurement 26: Request for Derogation Form (Standard-Template)
CT Procurement 27: Note for File Form (Template)

CT Procurement 28: Procurement Threshold Table (Standard)
CT Procurement 29: Basic Compliance Measures Checklist (Standard-Template)

CT Procurement 30: Procurement Contract File Process Overview (Chart)
CT Procurement 31: Procurement Dox-Contract File Closure Checklist (Standard)

CT Procurement 32: Procurement Contract File Closure (Pre-Audit Checklist)
CT Procurement 33: ITB-RFP Tender Pack Dox Overview (Chart)
CT Procurement 34: Procurement Tracking Table (Template)

CT Procurement 35: Completion Certificate (Works & Services)
CT Procurement 36 Statement of Works (Template)
Please notice: The PDF Annexes are to be opened in Adobe Acrobat Reader DC, which can be downloaded for free via the
following hyperlink: Adobe Acrobat Reader DC
________________________________________________________________________________________________
___________________________________________________________________________________________
________________________________________________________________________________________________
___________________________________________________________________________________________
Version History
Version Author Date Status/ comments

no.
DD/MM/YYYY
0.4D Kim Larsen 21-11-2016 Final Draft for Mgmt. review
1.0 Kim Larsen 06-12-2016 Final Version for HQ Intl. Mgmt. approval
1.1 Kim Larsen 16-03-2017
Approval History
Version Reviewer / Approver Date Status

no.
DD/MM/YYYY
DRC HQ Intl. Mgmt.

1.0F 10-02-2017 Approved
Group
1.1F N/A 16-03-2017 No approval required – minor corrections
1.3 N/A 30-09-2020 No approval required- minor corrections & clarifications
________________________________________________________________________________________________

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SUPPLY CHAIN

The overall purpose of the Handbook is to ensure compliance by executing commonly

PROCUREMENT TRACKING SYSTEMS ........................................................................................................................... 36

IN-FORMAL TENDER PROCESSES ................................................................................................................................ 71

RECEPTION & INSPECTION ..................................................................................................................................... 103

PRINCIPLES & POLICY STATEMENTS

• Best value for money

BEST VALUE FOR MONEY

 The quality, reliability & durability/sustainability

FAIRNESS, INTEGRITY & TRANSPARENCY

FAIRNESS & NON-DISCRIMINATION

TRANSPARENCY & ACCOUNTABILITY

EFFECTIVE COMPETITION & PROPORTIONALITY

BEST INTEREST OF THE ORGANIZATION

ROLES & RESPONSIBILITIES

 The Requestor (i.e. Program)

 The Payer (i.e. Finance)

KEY STAFF & ROLES IN THE PROCUREMENT PROCESS

 Coherent procurement functions are established and maintained throughout the

 Note that the Finance Manager’s responsibilities regarding procurement do not

• Strategic procurement mechanisms are developed and implemented to

• An effective filing system is in place which ensures that procurement documentation

• The supervision, performance management and capacity building of all Procurement

• The timely coordination of all procurement processes required to satisfy Purchase

• Goods/services/works procured represent the best-known value for money

• The procurement tracker is well-maintained, with minimal lag in the currency of

• Supplier relationships are managed professionally and the interests of suppliers –

• Any abnormality or eventuality identified in any procurement activity that poses a

ABOUT THIS HANDBOOK

PURPOSE & APPROACH

DRC’S APPROACH TO PROCUREMENT

CORE HUMANITARIAN STANDARDS

Core Humanitarian Standards

Approval Any step of a business process in which someone is required to determine

Authorization An approval step which specifically reflects a commensurate level of

Procurement Contract Is a Purchase Order (Contract), Service or a Works Contract.

Bidder Any Vendor/Supplier who has submitted or intends to submit a bid or

SCOPE & APPLICATION

This Procurement Handbook shall not apply to the following:

The DRC Procurement Guidelines are applicable for:

Donor approval for DRC Procurement Guidelines:

DRC INSITE: Donor Section

Generic for other donors:

COUNTRY LOCAL PROCUREMENT PROCEDURES

These local procedures many contain:

ACRONYMS, TERMINOLOGY & CONVENTIONS USED

CD/RD Country / Regional Director RFQ Request for Quotation

CSC Compliance Self Check SCC Service Completion Certificate

CSP Community Support Program SCoC Supplier Code of Conduct

CTP Cash Transfer Program SOP Standard Operating Procedures

DAP Delivery at Place (INCOTERM 2020) SoW Statement of Work

EOI Expression of Interest TOR Terms of Reference

FSP Financial Service Providers VfM Value for Money

GCoC General Conditions of Contract WCC Works Completion Certificate

GRN Goods Received Note

HoD Head of Division

HOSS Head of Support Services

HPC Humanitarian Procurement Centre

IDRA Internal Delegation of Responsibility &

IPA Individual Protection Assistance