Level 2

Introductory Certificate in Public

Procurement

In-class Assessment Workbook

Student name: Fariba Nabavi

Organisation: WFP

Email: Fariba.nabavi@wfp.org

Trainer: Poul Muler

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Course date/s: 19-22 June 2023

Student Declaration:

I declare that the information contained herein is a result of my own work and
efforts and that the assessment during this course and in this workbook has been
completed in a fair and valid manner.

Signature: Date: 24/06/2023

Contents

MODULE 1 ACTIVITIES
Activity 1.1 Planning the Procurement Process………………………................4
Activity 1.2 Procurement Risk Management……………………………………...7
Activity 1.3 Procurement objectives……………………………….……………...10

MODULE 2 ACTIVITIES
Activity 2.1 Developing Specifications……………………………………………11
Activity 2.2 Quality of Specifications……………………………….…............... 12

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 Activity 2.3 Writing TOR……………………………………………….…….........14

MODULE 3 ACTIVITIES
Activity 3.1 Selection of Procurement Method…………………………...……..18
Activity 3.2 Selection of Procurement Method…………………………..….......19

MODULE 4 ACTIVITIES
Activity 4.1.A Supplier Eligibility Criteria…………………………………….......20
Activity 4.1.B Supplier Ineligibility Criteria…………………………….……..….21

MODULE 5 ACTIVITIES
Activity 5.1 Risk Source Areas………………………………….........................22
Activity 5.2 Managing Risk…………………………………………….……….....23

MODULE 6 ACTIVITIES
Activity 6.1 Evaluation of Bids……………………………………………………..24
Activity 6.2 Establishment of the Evaluation Team……………………………. 25
Activity 6.2 Evaluation of Proposals……………………………….....………..... 26

MODULE 7 ACTIVITIES
Activity 7.1 Appropriate Type of Contract……………………………………..…27
Activity 7.2 Contract Management and Monitoring………………………….…. 28
Activity 7.3 Ethics & Integrity in Procurement………………………………...... 29
Activity 7.4 Planning the Procurement Process (continued)………… ..….... 31

Procurement Action Plan………………………………………………………….32

Procurement Action Plan (continued)……………………………………………33
Assessment marking sheet (Assessor only)……………………………….……53

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Module 1 Activities .

Activity 1.1 Planning the Procurement Process

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International Relief will be responsible for implementing a new education project. A list of
requirements has been identified and listed below are the goods/services which are required
to meet the objectives of the project:
Quantities Description Budget
20,000 English books 235,600 USD
356 Boards and school furniture 12,300 USD
40,000 Pen/pencil cases 186,700 USD
1 Rehabilitation of schools 43,000 USD
(School A, Region I)
1 Rehabilitation of schools 21,000 USD
(School C, Region II)
550 Computers 780,000 USD
2,500 Chairs 125,000 USD
550 Standard Software 34,500 USD
110 Printers 25,000 USD
50 Photocopiers 33,000 USD
20,000 Ad-hoc social science books 750,000 USD
1 Consulting services for the revision of the current 150,000 USD
educational plan, as well as preparation of the new
programme
3 Capacity building programme for school teachers 150,000 USD
50 Scanners 210,000 USD
1 Rehabilitation (School B, Region I) 44,000 USD
1 Construction of a new school (Region III) 358,000 USD
2 Servers 20,000 USD
1 Construction of a new school (Region IV) 210,000 USD
20 Sets of sports material (gym equipment, balls…) 12,000 USD

Tasks:
1. Establish suitable bidding packages by ‘bundling together’ goods or services that are
likely to be sourced from the same supplier and enter the details in the tables below *
2. For each bid package determine budgeted total contract value.

Bidding Package 1:

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 Quantity Description Budget
20,000 English Book 235,600 USD
20,000 Ad-hoc social science books 750,000 USD
40,000 Pen/pencil cases 186,700 USD

TOTAL 1,172,300 USD

Bidding Package 2:

Quantity Description Budget

356 Boards and school furniture 12,300 USD
2,500 Chairs 125,000 USD

TOTAL 137,300 USD – RFQ

Bidding Package 3:

Quantity Description Budget

1 Rehabilitation (School B, Region I) 44000
1 Rehabilitation of schools (School C, Region II) 21000

TOTAL RFQ 65,000 USD

Bidding Package 4:

Quantity Description Budget

550 standard Software 34,500 USD

TOTAL 34,500 USD

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Bidding Package 5:

Quantity Description Budget

550 Computer 780,000 USD
210 printer 25,000 USD
50 scanner 210,000 USD
50 photocopier 33,000 USD
2 server 20,000 USD

TOTAL USD 1,068,000 - ITB

Bidding Package 6:

Quantity Description Budget

1 Consulting services for the revision of the current educational plan, 150000
as well as preparation of the new programme
3 Capacity building programme for school teachers 15000

TOTAL USD
300,000
- RFP

Bidding Package 7:

Quantity Description Budget

20 Sets of sports material (gym equipment, balls…) 12000

TOTAL USD 12,000 - RFQ

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Bidding Package 8:

Quantity Description Budget

1 Construction of a new school (Region IV) 210000
1 Construction Rehabilitation of schools (School 43000
A, Region I)
1 Construction of a new school (Region III) 358000

TOTAL RFP USD 611,000

* The number of tables provided above is not intended to be indicative of the ideal number
of bidding packages.
Activity 1.2 Procurement Risk Management

AIM OF EXERCISE
To identify the risk associated with procuring different types of goods and services by
assessing risk exposures. These risks may arise from the good or service, the supplier, the
marketplace and from the organisation itself.

INSTRUCTIONS
In you group, agree a commodity or service for which you will undertake a procurement risk
analysis. Either analyse an actual commodity or service that one or more persons in the
group have first-hand experience with (but less than USD 500,000 in value), or the tutor will
assign a good or service from the list below:
• Office Stationery at an estimated value of 50.000 USD
• Translation and conference service at an estimated 125.000 USD
• ICT Consulting Service at an estimated value of 550.000 USD
• Personal Computers at an estimated value of 350.000 USD
• Laboratory inspection equipment at an estimated value of 400.000 USD
• Or any product agreed with the tutor
When undertaking the analysis, the group must consider the actual risks arising from the
external market and internal factors from the organisation in which you are working (i.e.
UNDP, DRC Congo).

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1. In the table below write a description of the assigned good/service, expenditure (USD
amount), and the country and the name of the organisation for the category of goods or
service you will be analysing
Description of good/service Translation and conference service

Expenditure (USD amount) 125.000 USD

Country AFghanistan

Organisation WFP

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2. From your knowledge of the category specific supply market and of the organisational
impacts, conduct a risk assessment by ticking the appropriate circles in the boxes below.
Do not spend too much time discussing each risk element:
a. Nature of the Supply market

b. Probability of Supply Failure

c. Complexity of Procurement Relationships

d. Impact of Supply Failure

e. Strategic importance to the organisation

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3. For each risk element (a - e) agree on a risk score ranging from 0 (lowest) to 4 (highest)
to each of the five risk elements and write you score (0-4) in the table below. Discuss in
your group which rating to apply to each risk element and justify your choice.

Risk Element Score Write your Rating/Description

score here:
a. Nature of the supply Min. 0 2 0 Highly favours buyer
market Max. 4 1 Slightly favours buyer
2 Slightly favours supplier
3 Moderately favours supplier
4 Highly favours supplier
b. Probability of supply Min. 0 2 0 Low
failure Max. 4 1 Moderate
2 High
3 Very high
4 Certain
c. Complexity of Min. 0 2 0 Very easy
procurement Max. 4 1 Easy
relationships 2 Slightly complex
3 Complex
4 Very complex
d. Impact of supply Min. 0 2 0 Low
failure Max. 4 1 Moderate
2 High
3 Very high
4 Critical
e. Strategic Min. 0 2 0 Low importance
importance to Max. 4 1 Moderate importance
organisation 2 Important
3 Very important
4 Critical
10
Total score (0-20)

Supply Risk (tick box below)

□ Extreme (Score 16-20) □ High (Score 10-15) □ Moderate (Score 5-9) □ Low (Score 0-4)

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Activity 1.3 Procurement objectives

Instructions: All procurement activities must be conducted in compliance with the financial
rules and regulations of the organisation as stipulated in the Procurement User Guide and
Manuals.

However, it is important to understand the sometimes-different business objectives of the

main procurement categories. Business objectives might vary in accordance with the supply
risks that have been identified and the expected spending per category.

Below is listed a number of different goods, services, and works categories. Determine
which category (quadrant) in the matrix you believe the different items typically belong to?
Taking into account the stated procurement objective, the typical risk profile and the
estimated spending:

1. Stationery (pens, papers, tape etc.), total value: 1,500 USD

2. Satellite communication system, total value: 6,000 USD
3. 20 vehicles, total value: 600,000 USD
4. Construction of new school building total value: 1.200.000 USD
5. Packing material total value: 1000 USD
6. 750 lap-top computers total value: 750,000 USD
7. Medical services total value: 75,000 USD
8. Management consulting services total value: 1,500,000 USD

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 Risk

3. Critical Products 4. Strategic Products

Very High Objective: Risk Reduction Objective: Reduce risk &

costs by effective supplier
• ? 2
relationship management
• ? 7
• ?4
• ?8
High
• ?

1. Routine Products 2. Leverage Products

Medium
Objective: Transaction cost Objective: Quantity discounts
reduction
• ? 3
• ? 1
• ? 6
• ? 5
Low
$
0$ 0.5 mill $ 2 mill $

Module 2 Activities .

Activity 2.1 Developing Specifications

AIM OF EXERCISE
To develop specifications for a product or equipment and determine whether these specifications
can be categorised as Functional, Performance, Technical specifications, or ‘other’.

INSTRUCTIONS
1. Firstly, in your group chose a product - preferably a real example from your procurement
unit - for which your group will develop specifications. Alternatively select a product from the
list below (please verify your choice with the tutor before commencing the exercise)
a. Photocopy paper
b. Office desk
c. Photocopy machine
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 d. Office desktop computer
e. Office swivel chair
f. Or any product agreed with the tutor

2. Develop specifications by listing functional, performance and technical specifications in the

table below
a. When defining your specifications consider appropriate use of the word ‘minimum’ in
front of the specification, i.e. “minimum 18 ppm”
b. Consider ‘other’ factors, such as delivery time and place, Incoterms, local service
and warranty requirements, availability of spare parts and consumables and any
other requirements that you think are relevant.
3. In the column “Specification type” write whether the specification identified is Functional,
Performance, Technical, or “Other” (e.g. appropriate Incoterms, commercial conditions etc.).
4. Ensure you discuss all issues in detail within your group and fully explore the possible
options. Be prepared to present your specifications on a flipchart to the rest of the
participants and to answer their (and the tutor’s) clarification questions!

Product:________________________________
No. Specification Specification type
(functional, performance, technical, ‘other’)
1 10 New Smart TVs with the size of minimum 55 Inch Technical
and Maximum 65 Inch
2 Performance
Resolution quality full HD 8K
3 Connection features Wifi, Internet cable port, Technical
Bluetooth, VGA cable port, 4 HDMI ports
4 Two Remote control, 2 HDMI cable 2 meters and Technical
hands-free
5 Minimum built-en application to run youtube, Skype Functional
& zoom for meetings in 4K
6 Smart View to connect with smart phones Functional
7 OLED Display Screen Technical
8 Operating System (OS) Android Functional
9 Woofer speakers inside with best quality Performance/Technical
10 Different standard plugs Technical

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Activity 2.2 – Quality of Specifications
Aim of exercise
In working groups of 4-5 people to distinguish between a technical, performance and functional
specification; and write ‘minimum standard’ specifications that will provide the requisitioner with
the right vehicle in terms of seating capacity, size, durability, quality, etc.
Instructions
In this exercise imagine a scenario where representatives from the procurement unit meet
requisitioners from a demining unit whose main activity is clearing mines in remote areas. The
demining unit has sent the following request to the procurement unit:

Dear Procurement,
We need to procure 8 vehicles for our demining effort and require strong vehicles
suitable for driving in rough terrain. We are looking for a reliable vehicle that will
carry at least 5 persons.
Best regards,

1. Divide yourselves into two teams representing:

(a) The procurement officers
(b) The requisitioners from the demining unit

2. Firstly, each team reviews the table overleaf to familiarise themselves with the various
models available and the associated specifications, i.e. the number of doors, and seats, type
of transmission, fuel and engine, delivery time, ground clearance (distance from the lowest
point on the vehicle and the ground) and wheel base. The Wheel Base (distance between
the axles) gives an indication of the size of the vehicle:

(a) Small size: Wheel Base ≥ 2400 mm (Toyota Rav4, or equivalent)

(b) Medium size: Wheel Base ≥ 2700 mm (Mitsubishi Pajero or equivalent)
(c) Large size: Wheel Base ≥ 2850 mm (Toyota Land Cruiser or equivalent).

3. Each group must sit apart and separately discuss the following issues:

Requisitioners: Discuss in your group which vehicles meet with your requirements and
which do not. Justify your choices and write them down!

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 Procurement: having read the request above (Dear procurement…..etc.) and the vehicle
specifications in the table overleaf, discuss any questions/clarifications you would want
to ask of the requisitioners. Select a person that will write a list with your questions!

4. Then your team joins again and procurement and requisitioners sit together allowing the
procurement officers to ask their questions of the requisitioners (5 min).

5. Having received/provided clarifications the team now jointly develops specifications. List
your specifications on a piece of paper and compare with the specifications in the table
overleaf – assuming they represent the vehicles available in the market – would your
specifications yield the type of vehicle required by the requisitioners?

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Model Version Land Rover (Ex- Maruti Suzuki Mitsubishi (Ex- Nissan (Japan, Nissan (Japan, Nissan (Spain, Subaru (Ex- Suzuki (Ex- Toyota (Ex- Toyota (Ex-factory)
factory) Defender 110 (Ex-factory) factory) Pajero Ex-factory) Ex-factory) X- Accelerated factory) Outback factory) Grand factory) Land Rav 4 Station
Name
Hard Top Tdi [D] Gypsy King 2.8 GL 5-door Patrol 4WD Trail 4WD delivery) Station Wagon 2.5i Vitara XL-7 2.7 Cruiser Station Wagon 2.0L [P]
Hard Top [P] Station Wagon S/Wagon LWB S/Wagon Terrano 2.7 TD [P] V6 P 4WD 5- Wagon GX
[D] STD 4.5L [P] Comfort 2.5L [P] SR Wagon door [P] 4.2L rear lift up
2.7L Diesel [D] gate [D]

Price USD 19,778.00 USD 8,022.00 JPY JPY JPY EUR 15,894.00 JPY 1,954,050.00 JPY JPY JPY 2,037,000.00
1,972,950.00 2,084,880.00 1,812,720.00 1,970,010.00 2,677,500.00

Estd. Price USD 19,778.00 USD 8,022.00 USD 18,790.00 USD 19,856.00 USD 17,264.00 USD 20,996.00 USD 18,610.00 USD 18,762.00 USD 25,500.00 USD 19,400.00

Vehicle Type 4-wheel drive Station 4-wheel drive 4-wheel drive 4-wheel drive 4-wheel drive 4-wheel drive 4-wheel drive 4-wheel drive 4-wheel drive 4-wheel drive
Wagon Station Wagon Station Wagon Station Wagon Station Wagon Station Wagon Station Wagon Station Wagon Station Wagon Station Wagon

Doors 2 2 5 5 5 5 5 5 5 5

Seats (incl. driver) 2 5 9 10 5 7 5 7 5 5

Transmission 5-speed manual 5-speed 5-speed 5-speed manual 5-speed manual 5-speed 5-speed manual 5-speed manual 5-speed 5-speed manual
manual manual manual manual

FOB Port Felixstowe, United Indian Port, Nagoya, Japan Yokohama, Yokohama, Rotterdam, Yokohama, Japan Nagoya, Japan Nagoya, Japan Nagoya, Japan
Kingdom India Japan Japan Netherlands

Delivery Time 12-16 weeks 10 weeks 10-14 weeks 8-12 weeks 8-12 weeks 2-6 weeks 12 weeks 10-14 weeks 8-12 weeks 8-12 weeks

Country of Origin United Kingdom India Japan Japan Japan Spain Japan Japan Japan Japan

Engine Type 2496 cc, In-line OHV 4- 1298 cc, In-line 2835 cc, In-line 4479 cc, In-line 2488 cc, In-line 2664 cc, In-line 2457 cc, Boxer 2736 cc, V 4164 cc, In-line 1998 cc, In-line
cyl., 83 kW (113 bhp) OHC 4-cyl., 59 OHC 4-cyl., 92 OHV 6-cyl., 145 DOHC 4-cyl., OHV 4-cyl., 92 SOHC 4-cyl., 121 DOHC 6-cyl., OHC 6-cyl., 96 DOHC 4-cyl., 102
@ 4000 rpm kW (80 bhp) @ kW (125 bhp) kW (197 bhp) @ 132 kW (180 kW (125 bhp) kW (165 bhp) @ 135 kW (184 kW (131 bhp) kW (139 bhp) @
6000 rpm @ 4000 rpm 4400 rpm bhp) @ 6000 @ 3600 rpm 5600 rpm bhp) @ 6000 @ 3800 rpm 5600 rpm
rpm rpm

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Fuel Type Diesel Petrol un - Diesel Petrol leaded 95 Petrol leaded 95 Diesel Petrol unleaded 95 Petrol leaded 85 Diesel Petrol leaded 95
leaded 87 ron ron ron ron ron ron

Dimensions L:4599 x H:1993 x L:4010 x L:4810 x L:5030 x H:1855 L:4510 x H:1675 L:4750 x L:4730 x H:1540 x L:4760 x H:1740 L:4890 x L:4195 x H:1680 x
W:1790 mm H:1845 x H:1855 x x W:1840 mm x W:1765 mm H:1815 x W:1770 mm x W:1780 mm H:1925 x W:1735 mm
W:1540 mm W:1885 mm W:1760 mm W:1940 mm

Shipping Weight 1536 kgs 1000 kgs 2050 kgs 2295 kgs 1430 kgs 1815 kgs 1430 kgs 1670 kgs 2250 kgs 1275 kgs

Ground Clearance 215 mm 210 mm 235 mm 215 mm 200 mm 205 mm 220 mm 183 mm 230 mm 190 mm

Wheel Base 2794 mm 2375 mm 2780 mm 2970 mm 2625 mm 2450 mm 2670 mm 2800 mm 2850 mm 2490 mm

Tank Capacity

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Activity 2.3 Writing TOR

AIM OF EXERCISE

Using a flip chart, prepare a performance based TOR for the following procurement case:
You work as a procurement officer in the UN Headquarters in your country. The
premises house approximately 1000 staff, and you have been tasked with issuing a
Request for Proposal (RFP) for catering services. The aim is to issue an LTA with one
supplier to provide all catering services for the whole building. The costs will be shared
proportionately amongst the different organisations. There have been several complaints
about the standard and quality of the food and service during the past year, without any
improvements being made. It has now been decided to retender for these services as
the current LTA expires in 6 months.

1. In your groups, discuss what information you will need to gather before you can prepare
the TOR. Where will you get this information and who will you need to talk to?
2. Consider the questions presented in the slide “Analysing Requirements for Services”.
Which of them are relevant and can you think of other questions that you would you
add?
3. The TOR should be structured as per the content headings on the following page.

ADDITIONAL INFORMATION THAT NEEDS TO BE GATHERED:

In order to prepare the TOR, we need some additional informations such as:

1) Objective of the service,

2) any special condition/requirements,

3) expected output or deliverables,

4) details of meal time,

5) type of meal (continental, bakery, buffet.etc)

6) refreshments,

7) response time,

8) delivery method,

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9) Packaging,

2.3 Analyse Requirements For Services

Why is the service • For the official events, trainings, and staff member's day to
necessary? day needs.
• Poor standard and quality of the food and service of the
current catering services.
• The HQ building does not have their own catering
services.
• Meetings and training sessions held in the building
requires catering services.

Who needs the • This service is required for WFP HQ AFG.

service?

What is important • Food Safety standards and quality control for quality food
about this service?
• Timely delivery
• Cleanliness (Good Hygiene)
• Well trained

How is the service • Food is prepared inside the premises.

produced?
• Clean and hygienic environment
• Pottery and dishes.
• Any cutlery items along with the lunch boxes
• Under food safety standards and regulations of ISO 9001
and 14001

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How is quality • Through Food safety and quality standards of ISO
defined/measured?
• Taste of food
• Professional Catering staff
• Hygiene
• Timely replenishment of the food stock.
• Disposal of leftovers

What are the • Number of staffs trainees.

resource, time
schedule and • Only HALAL food
compensation
constraints? • Timing: Breakfast (0600-0800), Lunch (1200-1400),
Dinner(1800-2000)
• Access to the premises due to high security at UN HQ
• Staff should be recruited in-line with the Labor Laws
• Restriction of Gas Stoves (only electric stoves)

What other risks • Freshness of food

are involved?
• Healthy food
• Hygienic food
• Timely Delivery of Food
• Poor Packaging

What are the buyer • Space, kitchen utensils and furniture and utilities shall be
and contractor provided and paid by WFP
participation
requirements? • Food and cooking stuff shall be arranged by contractor
• Having license from MoPH
• Possessing ISO Certificate
• License from Environment protection agency

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 How will we know • Supplier performance should be conducted weekly and staff
we received what feedback as well
we expected?

What action will be
required if we
don't get what we
expected?
• Supplier should be warned of bad quality service and
repetition of such activity will cause the termination of
contract and will not be considered for future bidding

2.3 Terms of Reference for Catering Services at UN Headquarters

Background WFP HQ office Afghanistan is inviting bids for the award of a Long-Term Agreement(s)
for the provision of catering services for 1000 staff members at the WFP HQ Afghanistan
to satisfy the need of day-to-day food requirements and time to time cover the adhoc
meetings, workshops and trainings events at WFP HQ Afghanistan. The LTA will be
initially for 2 years with the possibility of extension for 1 year.

Scope Catering services for 1000 staff members at the WFP HQ Afghanistan to satisfy the
need of day-to-day food requirements and time to time cover the adhoc meetings,
workshops and trainings events at WFP HQ Afghanistan. The menu should be added
three dishes each day, hygienic, fresh, and highly quality food for our events with
specific number of items in the menu. The food must be cooked in a highly hygienic
environment with strictly considering all the food safety conditions and the service
provider should be able to manage and supply ordered food in short time. Quality
certificate must be provided (ISO22000) for food quality or equivalent.

Deliverables 1. Break Fast as per Menu options Provided

2. Buffet Lunch as per Menu options Provided

3. Bakery items as per options Provided

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 4. Tea/Coffee & juices shall also be prepared / provided by the service provider
on as and when required basis during breakfast and lunch (provide refreshment
and food items during ad hoc meetings)

5.Tea/Coffee & juices shall also be prepared / provided by the service provider on
as and when required basis during breakfast and lunch (provide refreshment and
food items during ad hoc meetings)

Timeframes Sunday to Thursday:

Breakfast (0600-0800), Lunch (1200-1400), Dinner (1800-2000)

Tea/Coffee/Beverages (throughout the day) and Adhoc meetings

Cafeteria will be operational for four full days from Monday to Thursday and half
day on Friday

Client support All utilities including gas, water and electricity.

Space / premises for cafeteria and kitchen

Furniture, Crockery, Kitchen utensils etc.

Drinking water along with a water dispenser in the cafeteria.

LED television, Air conditioners and gas heaters for cafeteria

Internet facility in the cafeteria

Cleaning materials.

Radio coms.

Constraints Only HALAL food

Food to be provided according to the approved menu.

Access to the premises due to high security at UN HQ

Staff should be recruited in-line with the Labor Laws

Restriction of Gas Stoves (only electric stoves)

Reporting Should submit weekly or on demand reports to Admin unit

Daily status, Financial statements, Progress reports, Feedback from the

customers.

Monthly meetings.

Daily attendance reports.

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 Key Satisfaction of UN staff
Performance Hygiene, Timely delivery, Freshness of the food
Indicators Quality - should meet ISO/TS 22002-2:2013

Feedback from Customers

Compliance with contractual obligations

Adherence to the delivery schedules.

Module 3 Activities .

Activity 3.1 Selection of Procurement Method

Task
For this exercise you should return to Activity 1.1 – Planning the Procurement Process - and
determine the procurement method for each of the bid packages that you identified.

Tick the boxes as appropriate:

Bidding Shopping RFQ ITB RFP

Package
Number
1 ✓

2 ✓

3 ✓

4 ✓

5 ✓

6 ✓

7 ✓

8 ✓

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Activity 3.2 Selection of Procurement Method

In the table below determine which procurement method is the most appropriate for the different
procurement activities listed. Tick the boxes as appropriate:

Category Value in USD Shopping RFQ ITB RFP

1 Office stationery $1,900

2 10 motorcycles $2,000 each

3 Construction of a new hospital wing $10,000,000

4 Office canteen services for 1 year $10,000/month

with possibility for extension up to 3
years.
5 Development of new eProcurement $250,000
platform and training for key staff

6 Desk fans for 10 staff $50 each

7 10 fully-equipped ambulances $70,000 each

8 LTA for Audit Services $300,000/year

9 Printing of school Maths & English $210,000

books
10 Renting of interpreting equipment for $1,500/day
a 3 day conference.

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Module 4 Activities .

Activity 4.1.A Supplier Eligibility Criteria

AIM OF EXERCISE

UNDP will only contract with suppliers that received an eligibility determination. Eligibility
determinations are normally made by UNDP within the confines of specific procurement actions
and prior to contract award.

INSTRUCTIONS

Please tick which eligibility criteria a supplier must be able to demonstrate and/or certify to be
considered eligible for contract award:

1 Financial resources to perform the contract yes

2 Yearly donations to charity no
3 Good cafeteria and meeting room facilities for staff and customers no
4 Comply with General Terms and Condition of Contract Yes
5 Ability to enter into commercially and legally binding relations yes
6 Benefit and reward programmes for customers and business partners no
7 Special discounts packages for UN staff placing orders for personal use no
8 Organizational and operational control mechanisms yes
9 Documented experience and capacity, e.g. through references yes
10 Documentation that owners of the companies are previous UN staff no
11 Documentation that close relatives to the owners are current UN staff no
12 Production control procedures and quality assurance measures yes
13 High quality marketing material no

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Activity 4.1.B Supplier Ineligibility Criteria

AIM OF EXERCISE

UNDP will not do business with any vendor that engages in unacceptable business practices.
UNDP may, therefore, from time to time, decide that a particular vendor, which would include all
affiliates, would be ineligible to be awarded procurement contracts.

INSTRUCTIONS
Please tick the criteria that make a supplier ineligible for contract award by UNDP:

1 Committed an act indicating a lack of integrity or honesty, e.g., fraud yes

2 Been unsuccessful in the last 5 consecutive competitive UN biddings no
3 Not signed the United Nations Global Compact no
4 The company is a multinational enterprise no
5 Been determined as ineligible by a Multilateral Development Bank yes
6 Production facilities located at different continent than the Business Unit no
7 Been suspended by a government yes
8 Convicted of criminal activity by any Member State; yes
9 Missed the bid submission deadline with its previous bid no
10 Did not attend the last bid opening ceremony no
11 Identified on any terrorist sanctions list monitored by the organisation yes
12 No documented gender balance in top management no
13 Wilful, reckless or wanton failure to perform in accordance with the terms of one or yes
more contracts of the organisation;
14 Failed to pass technical evaluation in the last 3 competitive biddings no
15 History of failure to perform and honour a contract yes
16 Been bought by a company from another country within the last 12 months no
17 Refused to cooperate with any UNDP audit or investigation yes
18 Attempted to influence a UNDP procurement decision; yes
19 Seriously harmed UNDP's reputation or image. yes

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Module 5 Activities .

Activity 5.1 Risk Source Areas

AIM OF EXERCISE
Effective risk management requires both buyers and suppliers to identify, analyse and evaluate
the risks they face; plan how to deal with them; and negotiate and allocate responsibility for
managing them. Buyers and suppliers should understand and accept responsibility for these
activities. By reducing uncertainty, overall costs, and improving the management of the
procurement process and outcomes; effective risk management benefits the client, the buyer,
the supplier, and the relationship between them.

INSTRUCTIONS
Please discuss and identify 3-4 key risk factors relating to or originating from 1) the buyer 2) the
supplier, 3) the contractual relationship and 4) the external risk factors outside the control of the
buyer and supplier.

1. Risk factors under the control of the buyer, examples:

A. For example: Correct identification of requirements

B. ________________________________________________
C. ________________________________________________
D. ________________________________________________
E. ________________________________________________

2. Risk factors under the control of the supplier, examples:

A. For Example: Quality control of products offered

B. ________________________________________________
C. ________________________________________________
D. ________________________________________________
E. ________________________________________________

3. Risk factors emerging from the contractual relationship, examples:

A. For Example: The type and form of contract
B. ________________________________________________
C. ________________________________________________
D. ________________________________________________
E. ________________________________________________

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4. External risk factors outside the control of both supplier and the buyer, examples:
A. For Example: Political stability/instability
B. Changes in Tax Law - Both
C. Currency Fluctuation - Both
D. The Potential for Political disruptions- Both
E. Irregularity on Import Laws

Activity 5.2 Managing Risk

For this exercise you are required to select a number of risks identified in the previous activity
and determine suitable measures for mitigating the likelihood and consequence of those risks
occurring. You can use the examples given in the course slides for inspiration, but try to find
additional mitigation measures to those already provided.

Potential risk Mitigate Likelihood Mitigate Consequence

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Module 6 Activities .

Activity 6.1 Establishment of the Evaluation Team

AIM OF EXERCISE

How to establish an evaluation team.

INSTRUCTION:

You are working as procurement officer in a business unit in a country office. You are to advice
a client on establishing an evaluation team for an upcoming procurement action. Please
indicate which of the following responses are correct and in compliance with the rules and
regulations of the organisation. Select the correct answer for each question 1, 2, and 3.

1. Who appoints the evaluation team?

A. The Procurement Unit/Authority must appoint an evaluation team
B. The Client must appoint an evaluation team
C. The Budget Owner must appoint the evaluation team

2. How many members make up an evaluation team?

A. For RFQs the evaluation team shall be comprised of two members. For ITB/RFP the
evaluation team shall be comprised of 4 members.
B. For RFQs the evaluation team shall have a minimum of two members, however
optimally minimum of three members. For ITB/RFP the evaluation team shall be
comprised of three to five members.
C. For RFQs the evaluation team requires only one member. For ITB/RFP the evaluation
team shall be comprised of two to four members.

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 3. Who will be involved with the technical evaluation?
A. Only UNDP personnel.
B. UNDP Programme and Operations personnel and technical experts, representatives
from the funding source or client, as long as UNDP personnel maintain the majority vote
and are equal in seniority. No independent consultant can be involved in technical
evaluation at any time.
C. UNDP personnel; and for complex procurement cases independent consultants.
Representatives from donor or the client shall be observers only, except when they
request and are granted voting rights by the Operations Manager/ Head of Unit. UNDP
personnel shall be at least equal in seniority and maintain the majority vote in the team
at all times.

Activity 6.2 Evaluation of Bids

You have recently launched an RFQ for the purchase of 10 laptop computers and received three
bids.

At the technical evaluation you realize that all three technical offers are identical, apart from the
offered Hard-drive and Processer speed.

The table summarizes the three bids.

Specifications Bidder A Bidder B Bidder C

Hard-drive
Min. 256 GB 256 GB 512 GB 256 GB

Processor speed
Min. 2 GHz 2.4 GHz 2.8 GHz 1.8 GHz

Price (USD) $ 510 $ 515 $ 480

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Which bidder would you award the contract to (select one)?

Bidder A ⃝

Bidder B ⃝

Bidder C ⃝

Activity 6.3 Evaluation of Proposals

Further to a Request for Proposal, the evaluation committee has reviewed the offers of four
bidders. The evaluation is summarized in the chart below.

The technical evaluation has been made on a total of 700 points. The minimum acceptable
technical score is 70% of the maximum (i.e. 490). The financial offers are indicated in the chart
below. A total of 300 points will be given for the financial evaluation.

Bidder A B C D

Technical 510 590 610 400

Evaluation

Financial 5M USD 6M USD 7M USD -

offer

Financial 5,000,000/5,000 5,000,000/6,000 5,000,000/7,000 Disqualified

Evaluation ,000*300=300 ,666*300=250 ,000*300=214

Total of 510+300=810 590+250=840 610+214=824 Disqualified

points (Highest Fin
Score)

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You are kindly requested to finalize this evaluation and indicate the bidder that you would award
the contract to.

Explain why has bidder “D” not been evaluated financially?

1) On finalising the evaluation, the requisitioner asks you to revise your selection as s/he does
not want bidder “D” to be disqualified. This bidder is well known to the Client and has
already been awarded several contracts in the past. On top of this, it seems the financial
proposal of bidder “D” is rather attractive according to the requisitioner.

What is your reaction?

- Submission after RFP closing date is not acceptable.

- Also, technical score for company D is 400 while passing score is 490

Conclusion: - Financial bid from company D is not accepted and did not pass due to

submission of financial bid & low score 490

Module 7 Activities .

Activity 7.1 Appropriate Type of Contract

AIM OF EXERCISE
The organisation is about to contract for the following goods/services/works stipulated below.

INSTRUCTIONS
Please indicate the most appropriate and correct type of contract for the specific requirement in
the table below:

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1. Purchase Order
2. Contract for Goods and/or Services
3. Contract for Civil Works
4. Reimbursable Loan Agreement
5. Non-Reimbursable Loan Agreement
6. Individual Contract

Requirement Contract Type

1 Earthmoving and excavating equipment valued at $425,000 1
2 Contract for 24-hour UN House building security services number 2 bullet point
valued at USD 600,000 yearly where no LTA exists. Contract number 3
duration is 2 years.
3 Contract for the services of Government employed 4
environmental expert to develop guidelines for environmental
procurement. Contract duration is 3 months and valued at
USD 45,000
4 Purchase of office stationery and consumables valued at USD 1
12,000
5 Contracting of a consultant to develop and implement a 6
training programme on the correct use of new accounting
rules and practises. Contract duration is 14 months and
valued at USD 175,000
6 Construction of a new school building valued at USD 325,000, 3
contract duration 9 months.
7 Contract for a specialist on loan from a government entity to 5
assist in a stock-taking review of environmental projects.
UNDP will cover travel costs and living expenses related to
duty travel, all other costs & expenses will be covered by the
government entity.

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Activity 7.2 Contract Management and Monitoring

The contract has now been awarded for the provision of Catering Services, for which you
developed Terms of Reference in Activity 2.3. The contract manager is in the process of
developing a contract management plan and has identified a list of areas that need to be
monitored. Your team has been asked to further develop each of the areas mentioned in the table
below. You should identify specific issues that will need careful monitoring under each of the
areas. You may also identify other areas that need monitoring, which are not mentioned below.

Quality Customers satisfaction acceptable level 85 percent

Performance Online survey and or by questionnaire on monthly meetings

Price Food price as per the contract, and or measure by mistakes,

acceptable level 99%, spot checking weekly the restaurant

Schedules measuring delay, acceptable level 95%, checking a security camera or

random check.

Changes Different menu, number of staff.

Final Acceptance Acceptance of the menu.

Conflicts If the quality of food start to go down and link with the delivery.

Subcontractors To develop the criteria for scoring

ISO 22000
Health & Safety

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Activity 7.3 Ethics & Integrity in Procurement

AIM OF EXERCISE
You are working as procurement officer in a country office. You are involved in solicitation and
contracting for a number of goods and services, and you want to perform your duties in an
ethically correct manner.

INSTRUCTIONS
Please indicate which of the following actions and behaviours are ethically correct and in
compliance with the rules and regulations of the organisation, and which are not.

1. Debriefing of an unsuccessful supplier at the premises of the supplier after office hours – you
are going there alone and forget to record meeting details. NO

2. Debriefing of an unsuccessful supplier during working hours in the office meeting room – you
are doing it together with your supervisor and you record meeting details yes

3. You invite an awarded contractor to a start-up meeting in the office meeting room – you are
having the meeting together with your supervisor and you attach a summary report of the
meeting to the file yes

4. You are invited to a start-up meeting with an awarded contractor. Your supervisor is on
mission, so the contractor invites you to a preparatory lunch-time meeting in a restaurant
No

5. A potential supplier has problems with his internet connection and therefore calls you and
asks you to send him bidding documents by regular postal services Yes

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6. After the successful implementation and completion of a construction project, the supplier in
December sends a simple wall calendar to your private address. You send the contractor a
private letter of gratitude and acknowledgement. No

7. After the successful implementation and completion of a construction project, the supplier in
December sends a simple wall calendar to your office (named to the office). Registry receives
the calendar and includes it in a package donated for charity Yes

8. During a site visit the contractor invites you out to dinner the same evening. You accept
No

9. A newly registered potential vendor sends you a gift, addressed to you, valued below 25
USD. You keep it. Yes

10 A newly registered potential vendor sends a gift to the office, valued above 25 USD. You
notify registry and your direct supervisor, and registry returns the gift to the supplier with a
warning letter underlining the organisations zero-tolerance policy towards gift and hospitality
Yes

11. A current supplier that has been awarded several service contracts in the past invites you to
a trade fair in the neighbouring country and has send you an air-ticket and hotel voucher. It is
during your annual leave, so you decide to accept the invitation.
no

12. You have worked overtime and late evenings on setting up a new contract for a complicated
construction project. The organisation does not pay you for working overtime, so the contractor
offers to pay you for the extra time you are in the office. You accept it.
no

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 Activity 7.4 Planning the Procurement Process (continued…)

For this exercise you should return to Activity 1.1 where you established bidding packages for
the list of items required by International Relief in order to implement the new education project.

Aim of the exercise:

You will now work with those bidding packages to develop a complete procurement action plan
for the goods, services and works needed to meet the objectives of the project.

Tasks:
1. For each bid package identify all the procurement steps involved and the lead time needed for
each procurement step. (Hint: refer to the procurement schedule provided on the following
pages). Determine a start and a finish date for each procurement activity.

2. Prepare a flipchart outlining the Procurement Plan, including the main procurement steps and
timelines indicating the number of weeks needed to complete each step in the procurement
process and be prepared to present your group findings to the rest of the participants!

Please take into consideration the following:

▪ Civil works: contracts for the new schools can be completed in 9 months; the
rehabilitation of schools can be completed in 4-5 months.
▪ Text books: delivery time 4 months
▪ Computers and equipment: delivery time 3 months
▪ Boards and school furniture: delivery time 2 months
▪ The capacity building program for school teachers needs to be performed
before the start of the school year.

The school year shall commence 18 months from today’s date.

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 Procurement Action Plan
Requisition Docs
Method Advertising
Ready

Type of

International Media
Exp.

Competitive Bid
Supply
Description

Local Media
Date By Goods delivery Est. Contract
Services date Place of Amount

Waiver

UNGM
UNDP
Works (on site) delivery

LTA
No (USD) DATE DATE

1 Jul 09

1 Jan 09

1 Jan 09
UNDP
1 30 Jan 09 MS Shelter and Sanitation Goods 15,000,000
Juba WH

39
 Procurement Action Plan (continued)
Solicitation Evaluation Committee Review/Approval Contract Issuance

Two
stage
(Fin. + Two stage CAP

Profes. Serv.
Duration (days)

Inst. Contr.
Deadline Tech.) with Members
Issue for Bid Single Lowest Combined receive CAP Meeting Submission ACP`s /CPO s Date of

Works

Other
Date Receipt opening RFQ RFP ITB Date Stage price Weights submission Date to ACP approval

PO
Issue

12 May 09

15 May 09
12 Feb 09

14 Mar 09

14 Mar 09

14 Mar 09

11 Apr 09

12 Apr 09

13 Apr 09
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Assessment marking sheet (Assessor only)

The student has been assessed in the following competencies:

Please Tick
Not Yet
Competencies Competent
Competent

Module 1 Activities

Module 2 Activities

Module 3 Activities

Module 4 Activities

Module 5 Activities

Module 6 Activities

Module 7 Activities

This student has been assessed as competent against the required Level 2 capabilities.

Yes  No 

If not yet competent or capable, please list further training or assessment required.

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Assessor Name: _______________________________________________

Assessor Signature: __________________________ Date: ____________

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