Presentation on IC and changes effective July 2012

Report
Individual Contracts
(Version 2012)
Procurement Support Office (PSO)
Bureau of Management (BOM)
01 July 2012
CONTENTS
• Definition
• Background on ICs
• Global Statistics of ICs in UNDP
• Process Improvements in the Revised IC
Policy
• Supplemental Guidance on the IC Policy areas
considered “Gray”
Definitions
The Individual Contract is –
•
UNDP’s modality used for the procurement of services of an
INDIVIDUAL to perform NON-STAFF TASKS
•
Intended solely to deliver CLEAR, QUANTIFIABLE AND TIMEBOUND outputs or services that are DIRECTLY LINKED TO
PAYMENTS and defined in a TOR
•
Used for services that are either :
(a) intellectual in nature; or
(b) support services in nature.
Background on ICs
• First IC policy released in December 2010 and made
mandatory in April 2011, together with templates and
presentation tools
• The policy on Individual Contracts (IC) has since been purely
under a procurement policy framework, replacing the old SSA
which was based on HR policy and instrument
• Three (3) series of FAQs were released to aid the
implementation process, and along with the rounds of queries
directly received by PSO during the last 12 months, were fed
into the IC improvement plan and revision strategy
Background on ICs
 A contracting modality for the procurement of time-bound
services of an individual, within a predetermined timeframe
defined by the Business Unit, and where quantifiable outputs
are directly linked to payments
 Statistics show that UNDP administers an average of 25,000
Individual Contractors since 2006, to whom we have paid an
average of US$ 223 Million
 Every year, nearly 70% of ICs are Male
 Since 2006, the number of ICs averages 330% the number of
UNDP personnel on staff contracts (TA, FTA, PA)
Global Statistics at a Glance
7000
6000
HQ
5000
RBAS
4000
RBAP
3000
RBLAC
2000
RBA
1000
RBEC
0
2005 2006
2007 2008
2009
2010
2011
Global Statistics
Number of Individual Consultants Paid Per Year
(Not based on number of POs/Vouchers but on number of individuals).
2005 2006 2007 2008 2009 2010 2011
2012
HQ
RBAS
RBAP
RBLAC
RBA
RBEC
Others
741
2,264
3,613
5,172
4,962
5,407
1,334
561
884
1,981
2,010
2,892
3,371
662
TOTAL
22,752 25,210 25,784 24,434 24,186 23,940 21,697 11,800
865
2,449
4,237
5,687
5,268
5,975
1,594
874
2,313
4,062
5,640
5,750
6,919
1,100
938
2,211
4,263
4,554
5,411
6,887
1,108
929
1,912
4,517
4,169
6,160
6,358
1,070
997
1,803
4,329
3,917
6,158
6,541
1,192
1,003
1,596
3,798
3,489
5,629
6,013
1,172
Notes on this Presentation
• The following slides contain the changes on the IC
policy which are now incorporated in the new
version
• They are not to be understood as the only contents
of the IC policy
• This presentation assumes that the audience are
knowledgeable on the 2011 version of the IC policy
PROCESS IMPROVEMENTS
1.
Development of New Tools/Templates
a) Guide to Requesting Units on How to Write a TOR for IC
b)
c)
d)
e)
f)
g)
h)
assignments with all the required information
Letter for Inviting Individuals to Submit an Offer
Offeror’s Covering Letter – confirming interest and submission
of financial offer
Breakdown of All-Inclusive Price
Tables for Shortlisting and Final Rating of Offerors
Reference Check for Shortlisted Offerors
Justification for the Direct Contracting of ICs Below $100,000
Step by Step by in Accessing UN DSS Basic and Advanced
Security Training by non-staff
PROCESS IMPROVEMENTS
2. Alignment of threshold with the micro-purchasing policy : All
references to US$ 2,500 have been modified to US$ 5,000.00
Amount in
USD
Less than
$5,000
$5,000 –
100,000
Above
100,000
Sourcing
No competitive process
necessary, past
performance review and
note to file
At least 3 qualified
Offerors to be
considered.
(Advertisement optional)
International
Advertisement
mandatory
Receipt of
offers
incldg.
financial
Yes, even if
only 1
Offeror
Yes
Yes
Evaluation
Reference Checks
Review of Award
Review against
the established
criteria and
note to file
To be determined by
the Business Unit,
depends on the
nature of the
assignment
Evaluation team
prepares and signs the
note to file for the
Procurement Authority’s
approval
Yes
Procurement Authority’s
approval
Desk review
and/ or
interview
(optional)
Interview
mandatory
Yes
RACP or ACP approval
based on DPA for
Management of ICs (See
Section 2.4.2)
PROCESS IMPROVEMENTS
3.
Additional situation considered as “correct”
use of IC
“As an exceptional temporary stop-gap capacity support
measure intended to assist a staff who has been designated to
take on additional functions as a result of the temporary absence
of another staff who goes on any form of leave, but such use of
IC shall be limited only to a maximum of three (3) months and
the work must be without fiduciary duties or other
responsibilities intended to be performed only by individuals on
staff status”.
PROCESS IMPROVEMENTS
4. Introduction of DPA for the Management of ICs for BU’s
with DPAs higher than USD 100,000
Bands
Overall Delegated
Procurement
Authority of the BU
(in USD)
Delegated Procurement Authority for
Management of ICs, in Excess of Which,
the Case Must be Reviewed by RACP (in
USD)
Band 1
Band 2
Band 3
Band 4
100,000
300,000
500,000
1 Million
100,000
150,000
250,000
250,000
For BUs in Bands 2, 3 and 4, regardless of the procurement method used (competitive or
direct contracting), a CAP review is required each time an IC, or a series of ICs, is expected to
reach a total cumulative value of USD 100,000, in lieu of the RACP review.
PROCESS IMPROVEMENTS
5. Possibility of obtaining a one-time approval of daily fees
in excess of $1,000
In markets where a daily fee exceeding USD 1,000 is prevalent, which
therefore leads to frequent requests for approval from the Regional Bureau
Director, the BU in such operating environment reserves the option to
establish a Table of Consulting Fees for experts of various levels of
qualifications, based on a structured market survey conducted by external
experts or institutions, which takes into consideration the prevailing daily
fee rates used by all other UN Agencies and international organizations of
comparable size and mandate as the UN in the same market environment,
region or other geographical scope.
PROCESS IMPROVEMENTS
6. Allowing Delegation of Bureau Director to Desk Officers
for the approval of Consultancy Duration
The Regional Bureau Director may delegate the approval of
Consultancy Duration (beyond 12 months) or Daily Fee (in excess
of US$ 1,000) to the Desk Officer duly assigned to perform
oversight on the Country Office where the request originated.
Consistent with UNDP’s Internal Control Framework, the said
delegation shall be formally made in writing and kept on file of
the Regional Bureau.
PROCESS IMPROVEMENTS
7.
Defining circumstances where the Regional Bureau approval
may be waived for ICs exceeding the twelve (12) months
cumulative duration
“when all of the following conditions are all met :
a) The TORs are substantially different from the TORs of previous ICs within the
twelve (12) month period;
b) The assignment is for a different project;
c) A competitive selection processes relevant to the contract amount involved has
been undertaken in accordance with this policy as basis for awarding the IC;
d) The evaluation team members reviewing the proposals are not the same as
those who reviewed the previous IC; and
e) The performance of the IC on previous engagement/s was satisfactory.”
PROCESS IMPROVEMENTS
7.
Defining circumstances where the Regional Bureau approval
may be waived for ICs exceeding the twelve (12) months
cumulative duration
• “If the IC is being issued for a period exceeding twelve (12) months, but the actual
days of engagement to be paid will be less than two hundred sixty one (261) actual
person-days, and the said periods of actual intermittent engagements are clearly
reflected and rationalized in the TOR; and
• The IC issued is intended for an on-call intermittent engagement (i.e., fixed hourly or
daily fee or other indicators of unit price, and the engagement is on recurrent/oncall basis) over a defined period of time. This refers to an IC that is used as a
Framework Agreement or an LTA, and is further explained in Section 6.2 of this
Policy.”
PROCESS IMPROVEMENTS
8. Changes in the duration of the break in service of
former staff
“Former or retired staff members may be engaged on an IC provided there
has been a minimum break of :
a) None, if the previous contract is a Temporary Appointment;
b) One (1) month after the official date of separation from the United
Nations, if the nature of the separation is not due to retirement, and
provided that he/she was not separated on grounds of disciplinary
action or unsatisfactory performance; and
c) Three (3) months after the official date of retirement from the United
Nations, provided he/she is certified medically fit to work.”
PROCESS IMPROVEMENTS
9. Changes in the duration of the break in service of
former staff
“However, all of the above is further subject to the following conditions:
a) they are not applying for the position they retired or separated from;
b) they are not applying for an assignment which he/she provided oversight
while he/she was under a staff contract;
c) they are not applying for an assignment whose Terms of Reference they
wrote or they were involved in writing; and
d) they did not separate from UNDP or another organization of the UN
system ….”[disciplinary actions]
PROCESS IMPROVEMENTS
10. Exemption of specific Government employees on the
requirement to be on a leave-without-pay status
“when the individual is employed under a Government entity that allows its
employees to receive external short-term consultancy assignments without going
“on-leave-without-pay”, the individual entering into an IC with UNDP must still
provide a “No-objection” letter from the Government employing him/her.
However, the said ‘no-objection’ letter must also state that the employer formally
certifies that their employees are allowed to receive short-term consultancy
assignment from another entity without being on “leave-without-pay” status, and
include any conditions and restrictions on granting such permission, if any.”
SUPPLEMENTAL GUIDANCE
ON CURRENT POLICY
SUPPLEMENTAL GUIDANCE ON CURRENT POLICY
1.
Consistency of Terminology – all references to “candidates” and
“applicants” have been replaced by “offerors”
2.
Section on Definition of Terms – for purposes of common
understanding and interpretation
3.
Supplemental Guidance Boxes – additional information and
illustrations to aid interpretation of the policy
4.
Introduction of Situations of Conflict of Interest – consistent
with the circumstances of conflict cited in the POPP
5.
Clear prohibition on the Engagement of UN/UNDP staff on
SLWOP – based on the policy of “no dual contracting”
SUPPLEMENTAL GUIDANCE ON CURRENT POLICY
Guidance on the following issues :
6.
Computing Cumulative Contract Amounts
7.
The use and management of ICs based on Daily Fees
8.
Solicitation of offers from various sources, including those
expecting to sign an RLA
9.
Composition of IC Evaluation Team
10. Manner conducting Reference Checks
11. Introduction of the Information Disclosure Provision –
publication of earnings above $100,000
SUPPLEMENTAL GUIDANCE ON CURRENT POLICY
12. Guide in determining if the IC is the appropriate
modality for an assignment
Areas of
Consideration
General Nature
of Work
Expected
Outputs/
Deliverables
Duration of
Work
Location of
Work
Circumstances where IC may be an appropriate
contract modality
The work cannot be sourced within the internal
capacity of UNDP.
The TOR and/or job title does not resemble any of
those in the Generic TORs.
The outputs are quantifiable – they can be identified
and measured.
The need for this output is one-time and definitive –
once it is delivered/completed, there is no further
need for more such work in the short term period .
The time to complete the task is definitive – at a
certain period/date, it is not needed anymore.
The need for the task is not expected to continue /
there is a clearly foreseen end of need for it.
The work can be done/completed outside the office /
few visits in the office for coordination is needed but
not required daily
Circumstances where IC is not the best modality / Other contract
modalities must be considered
The work is a regular staff function.
The TOR and/or job title resembles any one of those in the Generic
TORs of UNDP staff.
It is difficult to quantify or identify the outputs because the tasks / need
to perform the tasks is a going concern or must be performed on a
continuous basis.
The work is expected to be completed within a year (use TA) or
beyond a 1-year period (use FTA or SC).
The need for the task is expected/likely to continue / no foreseen end
of need at short term period (i.e., next 12 months).
The person performing the task must be present everyday in the
office, and cannot be done outside the office premises.
SUPPLEMENTAL GUIDANCE ON CURRENT POLICY
13. Submission of Financial Proposal
Regardless of the sourcing method used in generating offers, it is important to
observe the following :
• All documents required (Letter to UNDP Confirming Interest and Availability,
Proposal, CV or P11 and Financial Proposal) shall be presented altogether in just
one (1) envelope, if submitted by courier, or in one email transmission, or as an
attachment to an on-line application, without password encryption. There is no
need for segregation.
• If the BU prefers to segregate the Financial Proposal with the rest of the
documents required, the BU shall implement the appropriate mechanism for such
segregation, but shall enforce the separation of the envelopes only for ICs
with contract values exceeding USD 100,000.00.
SUPPLEMENTAL GUIDANCE ON CURRENT POLICY
14. Clarification “national” and “international” fees
Regardless of the nationality or citizenship the determination of rates and currency of the
payment shall be based on the following guidance :
• When TORs do not require global knowledge or internationally-acquired experience
and expertise, and when the skills needed for the work or assignment are readily
available in the local market, regardless of his/her personal experience, country of
residence, or designations under past contracts, the individual contractor’s fee may be
expressed in local currency and must be based on standard/prevailing rates in the local
market.
• When the TOR for the work or assignment requires global expertise and/or
internationally-acquired years of experience, and when the individual is required to
have skills and abilities obtained through a successful international track record in
order to qualify for the assignment, international consulting rates and currency may be
used.
SUPPLEMENTAL GUIDANCE ON CURRENT POLICY
15. Evaluation Report
The outcome of the entire process ( from shortlisting to interview) shall be
presented in a single report, duly signed by the evaluation team, incorporating
the following :
•
•
•
•
The ratings of each offeror (technical and financial);
The strengths and weaknesses of each offeror;
The interview/desk review findings;
Any decision arising from the acceptance or non-acceptance of a negative
reference check feedback; and
• The best offeror selected and recommended for contracting.
SUPPLEMENTAL GUIDANCE ON CURRENT POLICY
16. Guidance for engaging individuals who have
current ICs in another BU
• Communicate with the Business Unit that issued the currently active IC;
• Reconcile the timelines of the new IC to be issued with that of the active IC
from another Business Unit, steering clear of all possibilities of conflicts;
• Disclose to, and discuss with, the Business unit that issued the current IC the
intent to issue a new IC and discuss a mutually agreeable arrangement,
taking shared responsibility for possible consequences;
• Communicate to the Individual Contractor the agreed arrangement between
the UNDP Business Units; and
• Obtain a written statement from the Individual Contractor, addressed to
both Business Units, that neither of the two (2) ICs will be compromised in
terms of quality and timeliness of completion of deliverable and outputs.
SUPPLEMENTAL GUIDANCE ON CURRENT POLICY
17. Clarity on the need for Statement of Fitness to
Work from a UN approved doctor
Individual Contractors whose assignments require travel and who are over 62
years of age are required, at their own expense, to undergo a full medical
examination, including x-rays, as well as obtaining medical clearance from an
UN-approved doctor prior to taking up their assignment. However, this does not
apply to individuals engaged through an RLA.
Where there is no UN office present in the location of the Individual Contractor
expected to undertake the travel, either for repatriation or duty travel, the
Individual Contractor may choose his/her own preferred physician to obtain the
required medical clearance.
The medical clearance shall be kept in UNDP records and remain valid for a
period of twelve (12) months.
SUPPLEMENTAL GUIDANCE ON CURRENT POLICY
18. Guidance on the inclusion of ICs in a BU’s
Security Plan
•
All evacuation procedures applied to any UN staff shall be extended to
Individual Contractors. However, the Individual Contractor shall be advised
that no dependent/s accompanying Individual Contractors to the duty
stations are to be included in such procedures.
•
Political or security evacuation must be distinguished from medical
evacuation, the cost of which shall be borne either by the Individual
Contractor or his/her own insurance carrier.
•
Should the Individual require his/her own personal security services as a
measure to minimize security risks, or as may be necessary in a given duty
station on Security Level, such costs shall be borne fully by the individual
SUPPLEMENTAL GUIDANCE ON CURRENT POLICY
18. Guidance on the inclusion of ICs in a BU’s
Security Plan
• Must be included in UN/UNDP security plan and arrangements that are in
effect at any duty station, except when the IC is on an intermittent/on-call
basis, who are paid by the hour/day, or who are working from home (i.e,
without need to leave their residence).
• However, when they are on duty during any security-related incidents, they
must be included in any physical measures that the UNDP Business Unit
may undertake to mitigate security risks related to all personnel under UN
contracts.
• For ICs working from home while on an IC, the physical security measures
will not apply to his/her home, but he/she shall be included in all UNDP
security information dissemination, briefings, trainings, communications,
etc.
SUPPLEMENTAL GUIDANCE ON CURRENT POLICY
19. Conditions for the issuance of Business Cards
The granting of UNDP business cards to ICs is strongly discouraged. Where
the nature of the work necessitates that the Individual Contractor be given
business cards, the following requirements must be met :
• A justification for the issuance of the business card has been established
in writing and has been duly approved by the Head of the Business Unit;
• While the business card may mention the title of the UNDP Project for
which the Individual Contractor is delivering the outputs, the business
card that will be issued shall not bear the logo of the UN or UNDP; and
• The designation of the Individual Contractor must not resemble the
nomenclature for any UNDP staff functions, and must be indicative of
the temporary nature of the assignment (e.g., Consultant, etc.)
SUPPLEMENTAL GUIDANCE ON CURRENT POLICY
20. Conditions for the creation of email accounts
When required by the assignment or the kind of services to be
performed, Individual Contractors may be given a UNDP e-mail
address. The relevant UNDP staff supervisor can also request
UNDP Intranet access, as needed. However, the BU shall be
responsible for monitoring and ensuring that the said email
accounts are disabled upon completion of the IC services
SUPPLEMENTAL GUIDANCE ON CURRENT POLICY
21. Guidance on the use of rosters based on IC thresholds
• Below USD 5,000 : a BU may source any one (1) or more qualified
Offeror/s that may be directly contracted, if direct contracting is
preferred;
• Above USD 5,000 but below USD 100,000 : a BU may source at
least three (3) qualified Offerors that may be directly invited to
submit a proposal specific to the nature of the assignment/TOR, and
subject all such Offerors to further evaluation;
• Over USD 100,000: At this amount, advertisement of Procurement
Notice is mandatory. If there are qualified individuals in the roster,
they shall be directly notified of the advertised IC assignment, and
directly compete with other respondents to the advertisement,
SUPPLEMENTAL GUIDANCE ON CURRENT POLICY
21. Guidance on the use of rosters based on IC thresholds
All types of roster must meet the following minimum requirements :
• All entries to a roster must be subject to a screening and
evaluation of qualifications by at least two (2) UNDP staff
members;
• All entries shall be subject to verification with all UN/UNDP list
of individuals or entities ineligible to obtain any contract from
the UN/UNDP; and
• Individuals in the roster whose performance has been found to be
unsatisfactory based on previous ICs should be removed from the
roster.
SUPPLEMENTAL GUIDANCE ON CURRENT POLICY
22. Guidance on Pre-Approved Rosters
•
•
Pre-approved are rosters names can be directly sourced for assignments
valued at less than USD 100,000, without need for further competition by
desk review.
Allowed only upon approval from the RACP based on ex-ante submission
which provides at least the following information:





The method to be used for sourcing the individual entries;
The level of details about the individual in the roster;
The process of screening and pre-approving each individual entry;
The procedure for updating, adding and deleting individual entries;
The justification on why such a pre-approved roster is necessary (i.e.,
to what extent can it improve efficiency, based on demand for BU’s
demand for ICs).
SUPPLEMENTAL GUIDANCE ON CURRENT POLICY
22. Guidance on Pre-Approved Rosters
Consistent with the provisions stated in Section 6.2 above (IC as
Framework Agreement), any RACP or ACP approval on such roster is
only valid for three (3) years. Thereafter, the BU shall re-submit the
case, indicating any further changes arising from lessons learned.
The thresholds for daily fees, cumulative contract amounts and
duration limits, shall also apply on all ICs generated from a preapproved roster.
SUPPLEMENTAL GUIDANCE ON CURRENT POLICY
23. Clarity on the use of IC as LTA / Deletion of the
term “retention”
“TOR must clearly specify the following minimum conditions:
• The unit price for the service (e.g., fee per hour, fee per day, fee per page, etc.);
• The process for activating or initiating the rendering of service within the period of
the IC (e.g., issuance of PO, etc.).
All ICs used as LTA must indicate a ceiling price limiting the cumulative amounts that
will accrue to the individual during the life of the IC/LTA.
For ICs that are arranged as LTAs, the IC thresholds for daily fees, and the thresholds for
cumulative amounts relevant to LTAs, shall continue to apply.”
SUPPLEMENTAL GUIDANCE ON CURRENT POLICY
23. Clarity on the use of IC as LTA / Deletion of the
term “retention”
Note :
BUs must refrain from
ICs as LTAs must :
using the term
“retainer” when
• Be priced per unit;
referring to an
• Indicate a trigger for call-off (e.g., use of PO)
individual engaged on
• indicate a ceiling price limiting the cumulative amounts an IC or RLA. The
legal definition of a
that will accrue to the individual during the life of the
“retainer”
IC/LTA,
arrangement is that
• Be monitored for cumulative contract amounts
the entity requiring the
encumbered for the duration of the IC/LTA; and
services pays in
• Be submitted to the proper committee as the cumulative advance for the work
payments within the life of the IC reaches the thresholds that will be specified
and defined at a later
specified in this policy.
date.
SUPPLEMENTAL GUIDANCE ON CURRENT POLICY
24. Clarification on the use of RLAs
• an instrument used to engage individuals that are employed with
another legal entity, at the time of their engagement with UNDP
• subject to the same procurement processes, procedures and thresholds
as set forth in the IC policy
• It must be the individual who will decide if the contract should be IC or
RLA, not UNDP
• Under an RLA, the signatory organization/institution makes available
to UNDP he services of the selected Individual for a given period.
• The organization/ institution therefore remains responsible for the
direct payment of actual cost of salaries, taxes, insurances and other
entitlements/emoluments due to the individual and UNDP merely
reimburses the organization/institution
SUPPLEMENTAL GUIDANCE ON CURRENT POLICY
24. Clarification on the use of RLAs
• If the organization/company/institution signing the RLA so requires, UNDP may
pay a fixed management fee or administrative charges, provided that such costs
were incorporated in the financial proposal of the individual who submitted an
offer to UNDP.
• Only individuals must submit an offer – not their employers, even if an RLA is
anticipated by the individual. This is because the focus of the selection process
must remain to be the individual, since it is the IC policy that applies to RLAs.
• UNDP reserves the right to refuse the issuance or signature of the RLA with the
employer of the selected Offeror when the name of the said employer is in the list
of entities ineligible to obtain contracts from the UN/UNDP.
SUPPLEMENTAL GUIDANCE ON CURRENT POLICY
25. Cost recovery for the insurance coverage and
reiteration of the mandatory identification of
the IC’s beneficiary
This insurance for Individual Contractors is centrally administered
by PSO/BOM in UNDP HQ, but the cost thereof shall be recovered
from the Business Unit administering the IC.
For purposes of processing claims, it is important that every IC
signed by UNDP shall bear the name of a beneficiary nominated by
the Individual Contractor. Every UNDP Business Unit issuing an IC
must ensure that this requirement is strictly followed.
If you have any more
questions after the
workshop, go to:
Procurement Helpline
https://intranet.undp.org/unit/bom/pso/helpline%20and%20mpn%20procu
rement/default.aspx
[email protected]

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