Definition of Procurement:
Procurement is the process of acquiring goods, supplies and services. It includes:
- Equipment, spare parts & supplies for program activities
- Equipment, office furniture & supplies for project offices
- Construction or Architect /Engineering Services
- Technical assistance by individuals or organization
Procurement Policy Requirements:
USAID eligibility requirements include:
- A written code of conduct preventing and addressing conflict of interest
- Open and free competition
- Price or cost analysis
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Any contract/agreement should include provisions
- Administrative
- Contractual
-
Legal remedies
- For contractor violation of terms; and suitable provisions for termination by the recipient.
Best Practices of USAID Project Recipient's in Procurement:
At a minimum:
- Avoid purchasing unnecessary items/services
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All solicitations should provide for: clear and accurate description, requirements that a bidder must fulfill; description of technical requirements; specific features
- Remember to compare ‘apples with apples’
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Procurement made with responsible contractors
- Based on best value to organization (if not the lowest price, the reason must be documented)
- Make procurement documents available to USAID
USAID Procurement Thresholds:
Following are the USAID procurement thresholds:
- $3,000 (micro-purchase threshold): over this transactional amount you must obtain at least 3 quotations and conduct analysis to justify vendor selection.
- $150,000 (simplified acquisition threshold): requires “full and open competition”. You must issue solicitation publicly and establish criteria for evaluating submissions
USAID Procurement Documentation Needs:
- Your documentation should tell the “procurement story” without the need for additional verbal explanation. The procurement story (file) should include:
- Request for Quotations or Request for Proposals (including internet /newspaper postings) – if required
- Quotations obtained
- Bid analysis
- Evaluation committee outcomes, and justification of vendor selection based on clear criteria
- Depending on organizational policy, a checklist should be developed to ensure that the organization is regularly keeping standard documentation
- Approval and/or waiver from USAID (if applicable)
- Approval from organization signatory policy (as applicable)
- GLAA generated , Signed Purchase Order (PO)/Contract/Agreement.
- Confirmation of receipt of item/Signed Property Management Letter (if recipient other than organization)
- Copy of Vendor’s Invoice (stamped “PAID”)
- Relevant correspondence, memos, e-mails, faxes, records of conversations collected throughout the procurement process
- Terrorism searches
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