Overseas Purchasing Ethical Policy (14)

No policy

An unwritten set of guidelines

Un-adopted ethical policy set by departmental manager

Formal policy but no active commitment from top management

Policy Assessment (15)

No assessment

Informal review of policy as part of other assessment regime

Formal assessment of policy

Formal assessment of policy against performance targets

Ethical policy covering all aspects of personnel and natural resource ethics. Regular review with commitment from top management Externally verified assessment of policy against performance targets

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References and Further Reading

Antonette G., Giunipero L .and Sawchuk C.: e-Purchasing Plus, JCG Enterprises, New York, 2003 ADB: Environmentally Responsible Procurement, (ERP), draft guide, 2004 Barratt M. and Rosdahl K.: Exploring Business-to-Business Marketsites, European Journal of Purchasing & Supply Management 8(2)111-122, 2002 CCH Incorporated: World Class Contracting, Gregory Garrett www.cch.com De Boer L., Harink J., et al: A conceptual Model for Assessing the Impact of Electronic Procurement, European Journal of Purchasing & Supply Management 8(1): 25-33, 2002 Fisher R., Patton B.M., Ury W.L.: Getting to Yes - Negotiating Agreement without Giving In (2nd Ed.), New York Penguin Books, 1991 Giunipero L. and Handfield,R.B.: Purchasing Education and Training II, CAPS Research, Arizona, 2004. http://Www.Capsresearch.Org/Publications/Pdfs-Protected/Giunipero2004.Pdf http://www.capsresearch.org/publications/pdfs-protected/narasimhan2003.pdf ITCILO/SIGMA-Westring G. and Jadoun G.: Public Procurement Manual, 1996 Kraljic P.: Purchasing must become Supply Management, Harvard Business Review, 1983 Narasimhan R., Talluri S. and Ross A.: Evaluating E-Procurement Solutions, CAPS Research, 2003 Neef D. :e-Procurement- From Strategy to Implementation, Financial Times Prentice Hall, 2001 NIGP-Thai K.V.: Introduction to Public Procurement, LEAP Textbooks, 2004 NIGP- Hinson C. and McCue C.: Planning, Scheduling and Requirement Analysis, LEAP Textbooks, 2004 NIGP-Babich K. and Pettijohn C.: Sourcing in the Public Sector, LEAP Textbooks, 2004 NIGP- Davison W.D. and Wright E.: Contract Administration, LEAP Textbook, 2004 Queensland Government-Better Purchasing Guides: Negotiations in Purchasing, 2000 Corporate Procurement Planning, 2001 http://www.qgm.qld.gov.au/02_policy/better_purch.htm Schneider G.P.: Electronic Commerce, Sixth Edition Telgen J.: Public Procurement Goes Electronic, Brussels, European Public Procurement Group, 2001 Tonkin, C.: e-Procurement in the Public Sector: Story, Myth and Legend, Trinity College Dublin, Policy Institute working paper, 2003 http://www.policyinstitute.tcd.ie/working_papers/PIWPO7%20-%20Tonkin.pdf Turban E.and King D., Lee J.K., Viehland D.: Electronic Commerce 2004- A Managerial
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Perspective, Third Edition, 2004 Ukalkar S.: Strategic Procurement Management for Competitive Advantage, Oxford, 2000 UN: General Business Guide - Common Guidelines for Procurement by Organizations in the UN System 20th edition http://www.iapso.org/pdf/gbg_master.pdf UN: Oath of Office, Staff Regulation 1.9 UN: Status, basic rights and duties of United Nations staff members, ST/SGB/2002/13, 1 November 2002 UNCITRAL: Model Law on Procurement of Goods, Works and Services, 1994 UNDP: Financial Regulations and Rules UNDP: Procurement Manual, 2005 UNDP: Green Procurement Booklet, 1997 UNDP/IAPSO: Sustainable Procurement Guide, 2006 UN Global Compact: www.unglobalcompact.org UNHCR: Procurement Manual, 2003 UNHCR/ITC: Procurement Seminar for Implementing Partners-Coursebook, 2003 UNICEF: Financial Regulations and Rules, 1999 UNICEF: Supply Manual (Book G), 2006 UNICEF: Procurement Training Materials UN/OHRM: Procurement and Contract Management Participant Guide, 2003 UNOPS: Financial Regulations and Rules UNOPS: Draft Procurement Manual, 2006 UNOPS: Procurement Training Materials UN/PS: Financial Regulations and Rules UN/PS: Procurement Manual, (rev. 2) 2004 UN/PS: Advanced Procurement Training, 2004 USAFA: Seven Steps to Performance-Based Services Acquisition http://www.arnet.gov/comp/seven_steps/index.html WFP: Goods and Services Procurement WB: Electronic Government: Procurement, http://wbln0018.worldbank.org/OCS/egovforum.nsf/main/home

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Glossary of Acronyms, Abbreviations and Procurement Terms

The table below lists the acronyms, abbreviations and procurement terms used in this handbook. The descriptions and explanations apply only to procurement in the context of this handbook. Term or acronym AGREEMENT AIDS ANNUAL REPORT Description or explanation A manifestation of mutual assent between two or more parties. See also CONTRACT. Acquired Immune Deficiency Syndrome. A summary report of programme implementation, significant events, issues and recommendations issued annually by the heads of country or regional offices, HQ divisions, etc. A method to resolve a contract dispute by submission to one or more arbitrators for a binding judgement; arbitration is normally used to avoid litigation, i.e. court procedures. The process of examining and reporting on specific aspects of work and performance. The action taken by the buying organisation based on the evaluation of offers, to approve the selection of the supplier for the specific contract. Air Waybill. See also WAYBILL. Bill of Lading (for sea, lake, river or canal shipments). See also BILL OF LADING. Best and Final Offer. The practice of reviewing the performance of an organisation, department, function or activity, by assessing it against the performance of, best in class organisations, industry standards or internal departments. A method of competitive negotiations with a short list of selected suppliers during an RFP. The optimum combination of factors such as appropriate quality, life-cycle costs and other parameters which can include social, environmental or other strategic objectives, which meet the enduser needs. It does not necessarily mean the lowest initial price option, but rather represents the best return on the investment, taking into consideration the evaluation criteria in the specified solicitation documents. An offer by a supplier in response to an invitation to bid. See also OFFER SECURITY. The document under which cargo is carried on board vessels. It may be defined as a receipt for goods, signed by the Master or other duly authorised person on behalf of the ship-owner. It constitutes a document of title to the goods specified therein. A description and a quantitative estimate of all materials, and/or supplies, which will be required for a proposed construction project or production of equipment (usually custom designed). Bill of Quantities. A product identified to a particular manufacturer. See also PROPRIETARY ARTICLE AND TRADE MARK.
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ARBITRATION

AUDIT AWARD

AWB B/L BAFO BENCHMARKING

BEST AND FINAL OFFER BEST VALUE FOR MONEY

BID BID BOND BILL OF LADING

BILL OF QUANTITIES

BoQ BRAND NAME

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Term or acronym BUDGET BUFFER BUSINESS CASE

CARRIER

CATALOGUE CERTIFICATE OF ORIGIN CLASS CLIENT COMPETENCE

COMPETITIVE BIDDING COMPONENT CONSIGNEE

CONSIGNMENT CONSORTIUM CONTAINER

CONTAINERIZATION

CONTRACT

CONTRACT REMEDY

CONTRACTS REVIEW

Description or explanation A plan of the allocation of financial resources to a programme, project, department, organization etc. A percentage of the total price added to a cost estimate to allow for market and foreign exchange fluctuations. A document prepared to support a series of decisions. These decisions, over time, increasingly commit an organisation to the achievement of the outcomes or benefits possible as a result of a particular business change. Entity which actually performs the transport, i.e. shipping line, airline, hauler, responsible for cargo in transit according to the various conventions governing the different transport modes. Also NVOCC (non-vessel operating common carrier), entities who do not own the means of transport but contract for carriage under the same conditions as would prevail if they were the owners. An organised list of goods or services specifying the description, price, unit of measure and other information. A document which identifies the country of origin of imported goods normally required by customs authorities. A range of similar items forming a section within a group. Recipient of procurement services, which is normally the requisitioner of the goods, services or works to be procured. Combination of skills, knowledge, and personal attitudes, demonstrated through behaviour that leads to effective performance on the job. Procurement strategy in which offers are requested from multiple suppliers. Any material, ingredient, or part of a sub-assembly which is incorporated into a finished product. The warehouse or department to which a consignment has been despatched. Normally personified in address form by the insertion of the appointment of the departmental head i.e. The Chief Storekeeper, The Director, etc. Goods or material prepared for, or in transit. Collected group of entities combining their efforts in procurement. Although a container can be anything designed to hold (contain) materials for storage or transport, the most common definition in logistics refers to specific types of containers used for inter-modal transportation often referred to as "Ocean Containers". Using standardized containers for the storage and transport of materials within a manufacturing facility as well as between vendors and manufacturers. A written document, containing the agreement, and the terms and conditions, between a buyer and a supplier. See also AGREEMENT and PURCHASE ORDER. A means of relief that either party can pursue to compensate for the other party's non-performance or non-compliance with a contract term or condition. Committee established for the independent review of contracts
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Term or acronym COMMITTEE

Description or explanation and purchase orders over certain ceilings. The review is conducted to verify that all procurement procedures and rules are met, and that the UN organizations interests are properly protected. COST A broader term than 'price', including everything a buyer may have to pay in association with an item. COST ANALYSIS A detailed analysis of the suppliers quoted price. CRC Contracts Review Committee. CUSTOMER The buyer of goods and/or services. DAMAGES Compensation for injury to goods, person or property. DATA Collected and stored facts, observations and data points. DDU Delivered Duty Unpaid. See also INCOTERMS. DEADLINE A definite date by which an action must be completed. DEFAULT A failure of the buyer or seller to live up to the terms and conditions of the contract. DEFECT Any imperfection or non-conformity of the product with the specification(s). DELIVERY TIME The time taken to deliver goods from the date of contract to the time when the title of goods passes between the purchaser and the supplier as per the delivery terms (INCOTERMS) used in the contract. DISCOUNT An allowance or deduction granted by the supplier to the buyer reducing the cost of the goods purchased. DISPOSAL The action taken to dispense with any material declared scrap or surplus to requirements. DOCUMENT Any form, voucher, record, register or schedule used in the procurement process. DONATION IN KIND Goods and services provided at no cost to the UN organization and/or its beneficiaries. DONOR A government, international or regional bank, NGO, individual or other entity that contributes resources as funds or commodities to UN organization programmes. EDI Electronic Data Interchange. ELECTRONIC DATA A dedicated electronic connection between a buyer and a supplier INTERCHANGE used to transfer procurement-related information. END USER The ultimate beneficiary/user of the goods, works, services object of the procurement action. ENTERPRISE Software systems designed to manage most or all aspects of a RESOURCE PLANNING manufacturing or distribution enterprise (an expanded version of MRP systems). ERP systems are usually broken down into modules such as Financials, Sales, Purchasing, Inventory Management, Manufacturing, MRP, DRP. EOI Expression of Interest. ERP Enterprise Resource Planning. ESTIMATE An approximate calculation of charges or costs to supply goods or services. EXPRESSION OF A note received from a supplier in response to a request to INTEREST express interest in an upcoming procurement activity. FCA/FOB Free Carrier/Free on Board. See INCOTERMS.
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Term or acronym FIXED PRICE FORCE MAJEURE

FORECASTING

FREIGHT FORWARD (or FREIGHT COLLECT) FRR GENERIC TECHNICAL SPECIFICATIONS GLOBAL COMPACT

Description or explanation An order placed on the agreement that no alteration in price will be permitted for the duration of the order. A French term (superior force) that refers to unexpected or uncontrollable events that may relieve the buyer and the seller from their obligations under a contract. Standard clause in all United Nations contracts. An estimation of future demand. Most forecasts use historical demand to calculate future demand. Adjustments for seasonality and trend are often necessary. Freight payable by consignee on arrival of the goods.

GOOD PRACTICE GUARANTEE

HANDLING HIV IAPSO IAPWG ICC IDENTIFICATION ILO IMPORT INCOTERMS

INSPECTION INVENTORY

Financial Rules and Regulations. Specifications that do not specify brand names, the products of one company, or features which are unique to the products of a particular supplier. The voluntary international corporate citizenship network initiated by the UN to support the participation of both the private sector and other social actors to advance responsible corporate citizenship and universal social and environmental principles to meet the challenges of globalisation. It is based on 10 principles related to human rights, labour, environment and anti-corruption. www.unglobalcompact.org A process or methodology, which has been identified and is recommended as a model. A promise or a pledge, i.e. something given or existing as security such as to fulfil a future engagement or a subsequent condition (e.g. bank guarantee). It can also be a provision in a contract by which one person promises to pay the obligation of another person in case that person fails to pay debts or perform a specific duty. The operations involved in lifting and movement of goods in store and transit. Human Immunodeficiency Virus. Inter Agency Procurement Services Office. Inter-Agency Procurement Working Group. International Chamber of Commerce. The means of establishing specifically what an item is and then giving it a unique identity. International Labour Organization. The act of bringing goods into a country from an external source. International Chamber of Commerce commercial delivery terms which set out the obligations, costs and risks of the buyer and seller. The process by which goods are checked for quality, compliance with technical specifications and accuracy. The term applied to the total stocks held in store or in account. Can also be referred to as the holdings of stores and equipment in use.
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Term or acronym INVITATION TO BID

INVITEES INVOICE

ISO ITB LCL LEAD AGENCY

LEAD TIME LETTER OF INTENT

LIABILITY LIFE CYCLE COST

LINE ITEM LIQUIDATED DAMAGES LOAD

LOGISTICS

LONG TERM AGREEMENT LTA MAINTENANCE

Description or explanation A formal written invitation sent to suppliers for requirements of a certain value and over, using general and specific terms and conditions. Potential suppliers invited to make an offer. Suppliers bill listing goods shipped, indicating price against which payment should be made. This document is also necessary to clear shipment through customs. International Organization for Standardization. Invitation to Bid. Less than container load. An organization to which the UN system has entrusted responsibility, based either on mandate, technical expertise and/or procurement volume, to act as prime on behalf of the entire UN system in one or more of the following procurement activities: supplier pre-selection, product specification, or establishment of LTAs. The time between placing an order and receipt of goods ordered as specified in the order/contract. A preliminary quasi-contractual arrangement by letter used in circumstances where the items, quantities, price and delivery are partly known but where contract provisions and/or final specification may require time consuming negotiations, before the formal final contact can be signed. Used to enter into interim agreements-usually subject to confirmation by an agreed date so as to enable construction production or delivery of supplies to commence. When an organisation is answerable for or committed to pay for goods, services, property or losses. Everything a buyer may have to pay in association with an item over its entire life-cycle, like training, running, maintenance and disposal costs. An item on a requisition to be supplied in any quantity. A predetermined rate of compensation, specified in a contract, payable to the UN organization by the supplier against delay in performance. In manufacturing, describes the amount of production scheduled against a plant or machine. In warehousing, it describes the materials being handled by a piece of equipment. In transportation, describes the materials being transported. The part of the supply chain management process that plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers' requirements. Agreement to supply certain goods and/or services over a defined period of time. Long Term Agreement. The process whereby stocks, machinery and other facilities are maintained to optimum level to retain working efficiency.
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Term or acronym MANAGEMENT MAVERICK BUYING MDGs MILLENNIUM DEVELOPMENT GOALS NET PRESENT VALUE

Description or explanation The activity of planning, initiating and controlling the activities of people and processes (by objectives, by exception, etc.). Ordering goods and services 'off contract' - i.e. from unapproved suppliers. Millennium Development Goals. Resolution of the UN General Assembly (A/RES/55/2): United Nations Millennium Declaration, 8 September 2000. Method used in evaluating investments whereby the net present value of all cash outflows (such as the cost of the investment) and cash inflows (returns) is calculated using a given discount rate. Net Present Value. Generic term for bids, quotations and proposals. A guarantee (bond) from a supplier preventing the withdrawal or modification of an offer after the deadline. The right of choice, particularly in contracts, where an offer may be taken or not taken at the choice of the offeree. The process of preparing purchase orders from provisioning data and submitting them to suppliers. Contracting someone outside of the organization to conduct some of the work normally conducted by the organization. The act of preparing items for storage, despatch or other movement by the use of measures suitable materials compatible with the item/method of transportation and the condition of storage. Document provided by suppliers indicating the contents of each case to be shipped, its weight, measurements, and value. Purchase Cards. A contractual clause defining supplier obligations in the event of default on its part. See PERFORMANCE SECURITY. A written instrument normally issued by a bank or an insurance company in favour of the buyer to assure fulfilment of the suppliers obligations. Equipment installed as a fixture. Purchase Order. The amount of money that will purchase a definite weight or other measures of a commodity. A laid down sequence of actions to efficiently achieve the aim. The process of obtaining goods, services or works of the right quality, in the right quantity, at the right price, from the right source at the right time by various means such as purchase, donation or hire. See also PURCHASING. A individual acting on behalf of the UN organization who performs the procurement function. An offer by a supplier in response to a request for proposal. Business credit cards that are issued to buyers to purchase low cost goods. Purchase cards streamline the payment process and reduce costs by eliminating paperwork.
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NPV OFFER OFFER SECURITY OPTION ORDERING OUTSOURCING PACKING

PACKING LIST P-CARDS PENALTY CLAUSE PERFORMANCE BOND PERFORMANCE SECURITY PLANT PO PRICE PROCEDURE PROCUREMENT

PROCUREMENT OFFICER PROPOSAL PURCHASE CARDS

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Term or acronym PURCHASE ORDER PURCHASING QUALITY ASSURANCE QUALITY CONTROL

QUOTATION

RAW MATERIAL RECEIPT RECEIPT OF GOODS RECORD RELATIONSHIP MANAGEMENT REOI REQUEST FOR PROPOSAL

REQUEST FOR QUOTATION REQUISITION

RESIDUAL VALUE RFP RFQ RISK ANALYSIS SAMPLE SEALED OFFERS

SEGREGATION OF DUTIES SERVICE CONTRACT

Description or explanation See CONTRACT. Buying goods, services and works. The guarantee of goods and services meeting and maintaining specified quality standards. Involves the application of inspection techniques to products purchased to ensure they are of the correct specification, standard and condition. A statement of price, availability, etc., usually in response to an enquiry. Not to be confused with 'estimate'. Quotations are normally preferable because they should give an accurate price for goods or services offered, whereas estimates give an approximate calculation of the cost of goods or services. Stock or items purchased from suppliers, to be inputted into a production process and transformed into finished goods. Either the function of receiving goods into store or the signature given confirming safe receipt. Official acknowledgement of receipt of goods by government or a procurement services customer. Any document that registers information related to the procurement process. The relationship between buyer and seller that is central to the whole business of supply management. Request for Expression of Interest. A formal written solicitation seeking a solution to a complex requirement. This document is used mainly for services, but can be used in exceptional circumstances for non-standard items, where the selection will not necessarily be made on price alone, but rather on best value for money. A written request for requirements usually for low value procurement. An internal document which a functional department submits to obtain items from stock, or to initiate a procurement action. See also DEMAND. The value of an item which has served its functional purpose but retains some value as scrap from material content. Request for Proposal. Request for Quotation. The process of determining what the risks are and what the costs would be if they materialize. A representative example of a product. Or, a small portion taken from a quantity to give an idea of the quality of the whole lot. A method of formal procurement where suppliers are instructed to submit sealed bids or proposals. This is standard practice when ITB and RFP solicitation processes are used. An operational mechanism to ensure that one individual does not own or control the whole process. Used when a supplier is asked to provide certain deliverables. Applies to administrative, programme services or procurement
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Term or acronym SHIPPING SHIPPING MARK

SOLICITATION SOLICITATION DOCUMENTS SPECIFICATIONS STAKEHOLDERS

STANDARDIZATION

STEWARD STEWARDSHIP

STOCKHOLDING STORAGE SUPPLIER

SUPPLY CHAIN

SURPLUS STOCK SUSTAINABLE DEVELOPMENT

SUSTAINABLE PROCUREMENT

TAD

Description or explanation services. The act of movement generally by sea, but can be applied to other methods of moving a consignment. The marks stamped or otherwise shown on a package to enable it to be identified. Shipping marks show the package number and the port of destination and should remain legible until the end of the voyage. Generic term for a request to suppliers to offer a bid, quotation or proposal. The documents issued to request a potential supplier to offer a bid/quotation/proposal to provide the required goods, services or works. A description of the technical requirements. Anyone who has an interest in procurement activities delivering actual or perceived objectives. They can include development partners, clients, end-users, civil society, senior management, finance, technical experts, etc. A policy decision to limit sourcing to only one particular brand / model of product or type of service instead of using generic specifications as the basis of the purchasing process. May be justified for economies of scale, compatibility with other products / services, facilitation of operation, maintenance, and repair of already purchased goods, etc. Person employed to manage anothers property. The responsibility of a UN organization for managing the funds and resources entrusted to it by its member states and other donors in an ethical and transparent manner, and for the welfare and in the interest of the designated beneficiaries of the funds and resources entrusted. The holding of stock. Holding materials or equipment for future use. A person or concern who supplies against a contract. In this handbook the term supplier is also used as someone who offers goods, services or works against a request for quotation, invitiation to bid or request for proposal. The total sequence of business process, within a single or multiple enterprises, that enables customer demand for a product or service to be satisfied. Items of supply in excess of known and anticipated requirements. A term coined in the Brundtland Report, as: Giving equal weight to economic development and the preservation of the environment to ensure that the actions of one generation do not compromise the ability of future generations to have an equal quality of life. A process whereby organisations meet their needs for goods, services and works in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organisation, but also to the society and the economy, while minimising damage to the environment. Target Arrival Date.
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