SovetheChildren

August 29,2016

To All Partner NGO

Subject lntroduction of Paftner NGO Logistics Guidelines, 2016

Dear All,

I am pleased to approve the revised paftner NGO Logistics Guidelines 2016 for SCI Partner
NGOs. This revision is based on changing operational context and it provides minimum
logistics requirement to be adhered by SCI Partner NGOs. lf any provisions of this guideline
contradict with Partner NGO Procurement/Logistics Manual, policy which is stringent will
be applicable. I expect that this version will be adequately fit for the purpose and more user
friendly to you all. I am, hence, requestint you all to ensure full compliance of this manual.

Should you have any query or need clarification, please do contact Asad Asaduzzaman, Head
of Logistics who will be able to meet your query.

Regards,

Delailah (Lala) Borja

Country Director

Nepol Countrg Ofiice
Airport Gote Areo, Shombhu Morg
GPO Box 3394
Kothmondu, Nepol
Tet. No. : +977-1-4468130
Fox No. : +977-1-4468132
post.nepot@sovethechildren.org
nepot.sovethechildren.net
Sove the Children lnternotionot A Compong timited bg gurontee ond
St.Vincent House registered choritg in Engtond ondWotes
30 Oronge Street Registered Choritg Number 1076822
London,WC2H 7HH Registered Compong Number 3732267
United Kingdom wwwsovethechitdren. net
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PARTNER NGtl LtlGISTICS

GUIDELINES
2016

$ave The Children Internstionol

Nepo[ Countrg Office
Shqmbhu Morg, Kqthmqndu, Nepol

Saverhechitd ren.org
Registered choritg Engtond ond Wotes (213890) Scottond (SC039570)
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ACRYONYMS AND ABBREVIATIONS

BoD Board of Directors

CBA Competitive Bids Analysis

EOI Expression of lnterest

FWA Framework Agreement

GRF Goods Requisition Form

GRN Goods Received Note

IT I nformation Technology

NGO Non-Government Organization

PC Procurement Committee

PNGO Partner Non-Government Organ ization

PO Purchase Order

RFQ Request for Quotation

sct Save the Children lnternational

SoD Scheme of Delegation

SRF Stock Release Form

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Table of Contents

2.2 Procurement Committee (PC)

iii. Formal Quotations (min. 3) Process: """"""""'3

2.6 Conflict of interest while carrying Procuremenc...".'........ """""4

2.7 Qualified vendor roster:.........
2.8 Filing and Documentation 5

3. ASSET AND INVENTORY MANAGEMENT. ..............""..5

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This is standard logistics procedure designed for Partner Organizations of Save the Children to
carry out various programmatic activities as per the partnership agreement. The procedure
covers various areas of logistics management viz Procurement, lnventory Management, Assets
Management and Fleet Management. The aim of this guideline is to improve logistics
management practices and instill prudent, systems for effective program implementation for our
beneficiaries. lt is also a guideline for SC staff to monitor the logistics Processes being carried
out by NGOs.

Logistics is overall management of goods or service from sourcing till delivery to end beneficiary.
This includes procurement, inventory management, transportation and distribution of resources
at delivery point.

PNGO should follow 7 R principle for Logistics Management.

i. Right Product
ii. Right Price
iii. Right Quantity
iv. Right condition
v. Right Place
vi. Right time
vii. Right Beneficiary

2" Y*ACA*.WMWNT
This section underlines the basic processes and requirements for procurement management.
PNGO should carry out all the procurement based on following SCI Procurement principles.
a. Accountability
b. Transparency
c. Value for Money
d. Proportionality
e. Equal treatment & Non' discrimination.

2.1 ?raeuremant Plan:

Every partner organization must develop their procurement plan for all the grants received from
Save tire Children irrespective of the value of grant. The Procurement plan should consist the
following information;
o Name and specification of item
o Estimated value
Schedule of requirement
Delivery place
Source of fund
Potential source of purchase (local, region or centre)
Any other information as relevant
All pNGOs should follow the procurement plan in order to deliver the program effectively and
efficiently. Annexure I shows the template for procurement plan.

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2.2 ? raeu rernent Cor*rnitt ee (? C);
PNGOs musr form a procurement committee. The member will be nominated by the Board
consisting at least one member from staff familiar with donor compliance. The procurement
committee should comprise of
i) Representative from board (Mandatory for open tender)
ii) Respective Program Manager/Sr. staff from Program
iii) Representative from finance department
iv) Logistics staff as member secretary for the committee
The committee can invitee any members as an invitee to provide technical suPPort to committee
but the invitee will not have voting right for decision making.

All procurement under sealed quotation process and tender Process (estimated value above
30,001) should process through Procurement committee'

2.3 3 r acuY ernerrt Th reshol d:

The following threshold for procurement for partner NGO has been fixed. All implementing
partners required to follow either their own procurement threshold or below Procurement
threshold whichever is stringent..

Local Currency
Process (NRs)

Open Tender I ,500,001& above

Formal Quotations Minimum 3 30,001 - 1500,000

Single Quotation 5,001-30,000

Cash & Receipt 0-5,000

Procurement committee involved for e procurements above si ngle quotation

process. Budget holder can approve the procurement process as Per SoD as Per suggestion of
procurement committee. The sealed quotation should be opened in presence of procurement
committee and all the members are required to sign on envelopes as a good management
Practice.
bonsidering the capacity of PNGO, for any procurement above 100,000, Save the Children shall
process the procurement on behalf of PNGO or depute staff from SCI to suPPort the
Procurement Process.

i. Cash & Receipt process:

pNGO can purchase any goods with costing up to Rs. 5,000 on cash purchase basis. The process
requires following documents;
o lnvoice
. Goods Received Note/Service Completion Note (or can have receivers signature on the
invoice)
o Payment authorization as per scheme of delegation
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ii. Single Quotation process:

PNGO can purchase any goods costing between Rs. 5,001 to R. 30,000 through single quotation
process. The procurement Process requires following documents;

. Approved Purchase Request Form with specification

o Single Quotation
. lssuance of Purchase Order
o lnvoice
o Goods receive note/Service Completion Note with quality accePtance by the needy
department
o Payment authorization as per scheme of delegation

iii.Formal Quotations (min. 3) process:

PNGO should follow formal quotation process for procurement of any goods/service with
estimated value above Rs.30,001 and up to Rs. 1,500,000. The procurement Process must be
followed through Procurement Committee (PC). The process requires following documents;
. Approved Purchase Request Form with specification
o Request for quotation to the listed supplier or public notice for invitation of sealed
quotation
o Quotation with sealed envelope from at least 3 suppliers
o Quotation opening in presence of PC
o Competitive bid analysis sheet
o Recommendation by PC and approval as per scheme of delegation
. lssuance of Purchase Order
o lnvoice
o Goods receive note/Service Completion Note with quality accePtance by the needy
deparcment, Payment authorization as Per scheme of delegation

iv.Open Tender process:

PNGO should follow open tender process for procurement of any goods/service with estimated
value above Rs. 1,500,000. The procurement process must be followed through Procurement
Committee (PC). The process requires following documents;
a Approved Purchase Request Form with specification
a Tender notice in local news PaPer
a Tender submission time should be minimum 2l days for all tender
a Tender documents consisting general terms and condition, schedule of requirement etc.
a Tender with sealed enveloP
a Tender opening document, in presence of PC and tenderer
a Competitive bid analysis sheet
a Recommendation by PC and approval as Per scheme of delegation
a lssuance of Purchase order or purchase agreement.
a lnvoice
note/Service Completion Note with quality accePtance by the
a
"tty
,";:f*"":ive
a Payment authorization as Per scheme of delegatio q/
Template of CBA in Annexure ll
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Nnte: PNGO can invitee SCI logistics or techntal rtaff ar an invitee to PC for technical suPPort as and when
require.d. However, SCI staff will not have arry votint right for dects ion making. The role of SCI stdf will be
limited to technical inout and ensurine crudent orocegt for orocurement.
,

2.4 F rameworl( Agreement

Framework Agreement is an agreement between PNGO and a supplier in which specifications,
paymenr t"r.i, delivery lead times and price are fixed. FWA can be established for goods or
services such as office supplies, StationerT items and local venue for trainings etc that are
repeatedly required by PNGO. PNGO should follow procurement Process through Procurement
Committee (PC) according to the defined threshold to establish Framework Agreement' The
Framework agreement is not a commitment of Purchase.
The process for Framework agreement is as follows:
o Select the repearedly used goods and services from Procurement plan./Approved Purchase
Request
. Collect the Quotations as per the procurement threshold from the supplier
o Prepare Request for Quotation (RFQ) with detail specification and validity period'
o The RFQ with guidelines ro the listed suppliers or public notice for invitation of sealed
quotation.
o Quotation opening in presence of PC
o Competitive bid analysis sheet and get approval as per scheme of delegation
o lssue Framework agreement with approval of Executive Director or as per SOD'
. Track the Framework agreement's ceiling and date
o lssuance of Purchase Order with specification and quantity
e lnvoice
. Goods receive note/Service Completion Note with quality accePtance by the needy department
o Payment authorization as Per scheme of delegation

2.5 Delivery Lead Time:

PNGO should follow following delivery lead time in order to supply goods and services with
complying standard procedure and donor's requirement

Process Leod Time

Open Tender 8 weeks

Formal Quotations Minimum 3 3 weeks

Single Quotation 2 weeks

Cash & Receipt 3 days

2.6 Conflict of interest while carrying Procurement:

pNGOs must nor be procured any goods or services with any related supplier that directly or

/) a/
can be
indirectly conflicts with the interesi of tfr" agency. ln exceptional circumstances purchases

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made after declaring conflict of interest with vendor by the concern officials involved in
Procurement. Some instances;
a. Procuring goods or services from own firm
b. Procuring goods or services from immediate family members

2.7 Qualified vendor roster:

PNGOs should maintain qualified vendor roster; it should be updated once in every two year.
Expression of lnterest (EOl) should be called by PNGOs through publishing notice in public place
board or in local/ national newspaper mentioning required supplies as Per as and when required
basis. The PC should develop selection criteria such as required legal documents, tax clearance,
experience in relevant field, supplier's strength in terms of annual turnover, infrastructure,
manpower etc. Based on the evaluation and approval from the procurement committee,
approved vendor roster should be maintained. PNGO can update vendor roster when any new
qualified supplier is identified. Any procurement above cash purchase threshold should be done
from approved vendor list. PNGO should do vetting of vendors listed in vendor list checking in
following websites hmp://ppmo.gov.np/ ; http://www,cibnepal.org.nP/ or send the approved
vendor list to Save the Children for vetting.

2.8 Filing and Documentation:

Copy of all procurement should keep in file by Logistics Department and should retain for at
least five (7) years or as Per the donor requirement'

3. ASSET AND INVENTORY MANAGEMENT

3.1 Asset:
All the asset above value of Rs. 5000 and useful life of more than one year (eg. Furniture,
computer, photocopy machine etc.) Should be recorded as an Asset. All the assets should be
recorded in Asset register. All the assets purchased through SC fund should have unique assets
code as per the ."t"gt,7 of assets. All the assets can be categorized as Per nature of assets like
Metal/Wooden Furniiure ltems, lT & Communication items, Machinery ltems, Vehicles etc. Until
or unless otherwise decided by SCl, all the assets purchased by SCI fund will remain as asset of
scl.

Annual physical verification should be carried out by a verification committee and report should
be forwarded to Save the Children'

PNGOs should take considerable care for safeguarding, timely repair and maintenance of asset'
PNGO should also cover the insurance of assets which are purchased through SC fund' Assets
should be issued to any staff only after getting approved Assets lssuance Form. Template of
Assets Register and Assets lssuance Form in Annexure V and Annexure Vl respectivelv. .,A. (/Y/

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3.2 lnventory:
Items which have useful life less than one year and with program supply nature (such as
stationery, educational material, toner cartridge etc.) should be recorded as inventory. PNGO
have to prepare separate register for program supplies and office supplies. While receiving any
inventory, the concern staff member & requester should check the quantity and quality of items.
lf the quality and quantity of items is satisfactory, concern staff member will prepare GRN which

should also be signed by requester. A copy of GRN should be forwarded to finance along with
invoice and procurement documents for release of payment to supplier'

For proper recording of inventory movement, STOCK REGISTER with standard norms should
be maintained. ltems/inventory from store will be release only after obtaining approved Stock
Release Form (SRF) or Goods Release Form. SRF should be approved by respective program
manager and receiver of stock.

Once the item is released from store, concern staff member should immediately update stock
register. PNGO must carry out and document physical verification of inventory at quarterly basis.
pNCO should form a committee for annual physical verification of inventory. Annual physical
verification repoft of inventory should be forwarded to SC within month of January. PNGOs
should inform Save the Children if any deviation found during physical verification.

3.3 Disposal of Assets and lnventoryi

Based on the condition of the assets, PNGOs should prepare disposal plan for assets purchased
under SC fund and forwarded to Save the Children. PNGOs should inform Save the Children if
any deviation found during physical verification. PNGO can dispose assets purchased through SC
fund afcer obtaining approval from SCI'

4" VI,.EYT MANAG&WWN"T

PNGO has overall responsibility to manage the vehicles (2 wheelers + 4 wheelers) provided by
SCI or procured through SCI fund. All the vehicles should have vehicle log books to record the
movement of vehicles. Only authorized staffs/ persons will be allowed to drive/ride vehicles
provided by SCI or purchased by SCI fund. PNGO will be responsible for government charges,
regular servicing, repair & maintenance, fueling & vehicle oil and insurance of vehicles. ln no
circumstance SC will be liable for third parcy loss arising due to accident of vehicles handed over
to PNGO.

Any vehicle provided by SCI or purchased on SCI funds cannot be used for personal use. The log
book shoulj have detail of place travelled, distance, date, time, name and signature of vehicle
user. Template of vehicle log book is in annexure Vlll. All the 4 wheeler should have seat belts
as per r"riing capacity. The iider and pillion rider should wear helmet while riding motorbike'

guidetine restricts PNGO copocitg to detiver,

Note: ln ong situotion when complionce to this
pNGO shoutd communicote ond seek opprovol from SCI with specific reoson through the Field
Mnnnnpr
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&Y,|NTY"U&W%:
i. Procurement Plan Template
ii. Procurement Request Template
iii. Competitive Bid Analysis Template
iv. Purchase Order Template
Good Received Note Template
vi. Service Completion Note Template
vii. Assets Register Template
viii. Assets lssuance Form Template
ix. Stock Register Template
x, Goods Release Form Template
xi. Vehicle Log Book Template
xii. Motorbike Maintenance

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Annexure !: Procurement Plon TemPtote

Procurement Plan PNGO Logo
This is to assist istics to procurement
A. Project details
1. Name of project
Donor
Start date
Completion date
5. Location of area logistician:
6. Project activities
7. Number of project sites

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Activity Description Procuremen Amount Amount
Unit Rate Qtv Amount otv Amount otv Qtv
t Lead
pplieslActivities I I II II
A. Program Su

II I IIII II
Example
II I II
III I IIII I II
training materials
III I IIII
-III I II
Rent
Total I IIII I II
1st Qtr 2nd Qtr 3rd Qtr 4th Q,tr
B. Assets & Accessories
JDOWN List the goods and equiPment Procuremen Amount Amount
Unit Rate otv Amount Qtv Amount Qtv Qtv
t Lead
below
Example IIII III IIII III
II III III III
Bikes II III III
II III
Office Furnitures
Spareparts for/equ iPment
machines,tools
for
IIII Total I
III -II
I
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Annexure ll: Procurement uest Form Tem Iote

Date request prepared: Programme requedng:

Nepal

Name of donor{s}:

il-:a- --l

o'-.l..1,-1
'1166@,.1
Em;ilAddreG:
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\,OS UeIlEe r.!vIgul wuE
Code Funds code Unitl Form
't .t:''.'"'' , Co*, (LogsloconpHe)
':. . ..:-'-.:
r

' ,.,: .,.:a

1
NPR

TOTAL:

Remarks

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Annexure lll. Com e Bid Ano Temptote

, Bidd,et

Cluote
tnvolce n(
Arrailability
Unit Unit cost
- . tini6 time

Total cost of goods

VAT / taxes
Transport cost]
Any other ccsts
Total cost in biddcr currency
Total Cost - standard currencv
RFGI: Other criteria considered

Quality of goods / service (rank out of 5)

with
Othor criteria (to add as applicable as stated in the Rrcl)
RFCI
'' '' ''' i,
'.Tqndaii,Score from Tqnder B.aluation Form
For use Bidder passed Essential criteria Yes / l,lo Yes / No Yes / No Yes / No
with
te nde r Bidder score for Preterred & Desirablo criteria

Reasons for recommendation:

Hrogramme il
Name Name Name
Pos ition Position ,osition PGition
Date Date Date t Date
Siqnature Signaturc

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Annexure lV: Purchose Order Templote

N/A

Des.criptioil of Good3 l Sorvices '.

SOF code (add technical spqcirication as a$achmenlif !ery Unit / Form QuanUty aoqulreo
{atrile.l\

NB: Add mre lines to the rc ff required Sub total

Amount
,13%

Grand Total

The Purihase Order number mud be quoted on all and documents note and invoice

{ame:

.e:

Supplier Gonfirmation: Supplier Stamp

Title: I

ate:. I

Note: Please prepare ternrs & conditions nature of purchase

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 Sove the Chitdren
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Annexure V: Goods Received Note Temptote
Documentation delivered with Coods GOODS RECEIVED NOTE
n wayuitt *
PNGO f] Supplier lnroice # GRN Number:
f] Supplier Delivery Note #
Logo fl (otner) Page Number GRN Date:
1ot1
Goods supplied for:
fl Po* fI Complete Order
partsnipmentwith the balance pending
fl Donation # D
f] finat shipmentcompleting the Order

please complete the GRN for one po. b(cept where noted above, att goods tisted have been received in good order and condition.

Coods Received bY: Goods checked by:

Hame:l Name:
Position:l Position:
Oate:l Date
Time
Signature:l Signature
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SCN / OFFICE / YEAR / SEQUENTIAL NO.

Remarks (please include any contractual penalties to be claimed, if applicable):

Yes No

Services should be checked against the specification listed in the PO / Contract.

Time should be altowed between services completion and payment to check quality.

Name Name

Position Position

Signature Signature

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Annexure Vl: Fixed Assets Register Templote

9qtE Proiecti/Donor Name

Exomple: Dell Monitor 18,,LCD scr/rcr/2016/001 Fi na nce Dept Fi na nce Offi cer

CPU sclltcr/20761002 Shi do Finance Dept Finance Officer

5
Total Amount for Category A (

I rrnitures & Fixtures

1
Exo mple: Revolving Choirs scr/FUR/2016/01
Executive Chairs sctlFUR(20T6l02
Wooden table scr/FUR/2016/03
Total Amount for lo

'1 Exomple: Generator sctlMcHl2016107

Air Conditioners sctlMcH/2016/02
Power Stabilizer - 3KVA sct/MCH/2016/03
Total Amount for 0

I Tata lndica Car 1200cc SCtlveh/2016101 2008 TaTA

2 Hero ismart Bike 100 cc 2015 Hero
3
Total Amount for Category t I
0

as per assets Register 0

:
Note: New category can be added as per requirement of organization.

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Annexure VII: Assets lssuonce Form Templote

Organization Name

Assets lssue Form

Employee lD Department

Employee Name: Supervisor lD:

Date !ssued Date Due Back Staff lnitials Date Returned Staff lnitials

Item lssued Returned Remarks

Exomple: Laptop Lenovo Laptop X250

Mouse

Laptop Bag

External Hard Drive

Memory Card

Mobile Phone

SIM Card

USB Cable

Laptop Charger

Books

DVD / CD / Hard Drive

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Annexure Vll: Stock Register Templote

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Annexure lX: Goods Releose Form

Contact Namo..& Tol No:

Stor€ use only

Line ....i . Soulco of . otv r Totat ety ,, . WaybillNo. {if

Description of goods Project Code FundsCodot, uni! -,
Reque-sbd Supplioq i aPplicable)' rrr ll
Item . i. l

Good3 roc€ived by. ;',.. ,

El6l..s 6f d66ds authorisd bv (LegG'blank if lhe goads €re'being 'sent

with a waybill)

Receiver:

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Annexure X: Vehicle Log Book Templote

Vehicle/
Bike No:

tLr.. '.,...

Note: Only Authorized I perso allowed rive/ri de vehci les

Passe nge rs shou d compullsorily wear se at be It ca rs. der Pil ron shoul put on heltmet wh !c in motorbike.
Ove of ve hci le ted.

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Annexure Xl: Motorbike Mointenonce Schedute

MOTORBIKE MAINTENANCE SCHEDULE

Servicing schedule for new bikes

Particulars Servicing Time Checks

Mobil change, Filter check and clean, Brake pad check

I st Servicing 500 KM or 2 months whichever is earlier Check chain, carburator etc

Mobil change, Air Filter, Oil fiker check & change

Check Chain, Carburator etc

2nd Servicing 1000 KM or 2 months vrhichever is earlier

Mobil change, Air filter, oil filtercheck and change.

Check Chain, Carburator etc

3rd Servicing onwards 2000KM or 2 months whichever is earlier

AN*, 6