Chapter 09. Review by Committees on Contracts

9.1 Mandate of Committee on Contracts

Pursuant to the provisions of Financial Rule 105.13 (b), Review Committees on contracts are established at Headquarters (HQ) and other locations to render written advice on proposed procurement actions. In accordance with Financial Rule 105.13 (c), where the advice of a Review Committee is required, no final action leading to the award or amendment of a procurement contract may be taken before such advice is received. The terms of reference and the rules for the composition, work, and authority of review committees on contracts are set forth in the applicable administrative issuance.

The primary responsibility of the Review Committees is to ensure that proposed procurement actions are based, inter alia, on compliance with the Financial Rules and Regulations, relevant Secretary-General’s Bulletins and Administrative Instructions taking into consideration the guidance provided by the Procurement Manual. The Review Committees are not responsible for reviewing or providing advice on the adequacy or necessity of the requirement being met under the proposed procurement action, but may ask questions and make observations, on the adequacy or necessity of the requirements of the proposed procurement action.

9.2 Thresholds for the Headquarters Committee on Contracts (HCC)

In any of the following cases, irrespective of whether the procurement action originated at HQ or in another UN Secretariat entity, in accordance with the Financial Regulations and Rules, the recommendation of the HCC, and the approval of the relevant Authorized Official shall be obtained prior to any contractual commitment being made:

1. 1. 1. Any award to a single contractor in respect of a single requisition or a series of related requisitions that exceeds US$ 1,000,000 based on the contract value or gross revenue to the contractor during the term of the contract including any optional extension periods;
      2. Any contract or series of related contracts that involve income to the Organization, including contracts for the disposal of UN property through sale, that during the term of the contract including any optional extension periods exceed US$ 1,000,000 based on the income to the Organization;
      3. Any LOAs with the Member States where the value exceeds US$ 1,000,000 during the term of the agreement⁵;
      4. Any amendment, modification, or renewal of a contract previously reviewed by the HCC where the modification increases the originally approved contract value or gross revenue to the contractor by more than 20% or US$ 500,000, whichever amount is lower;
      5. Any amendment, modification, or renewal of a contract previously reviewed by the HCC that involve income to the Organization, including contracts for the disposal of UN property through sale, where the modification decreases the originally approved income to the Organization by more than 20% or US$ 500,000, whichever amount is lower;
      6. Any amendment, modification, or renewal of a contract, including contracts that involve income to the Organization and the disposal of UN property through sale, previously reviewed by the HCC where the modification increases the originally approved contract duration by more than eight months;

1. 1. 7. In the case that both the contract value (including approved revenue to the contractor and income to the Organization) and the duration of the contract are modified, either simultaneously or sequentially, review by the HCC is not required when the (cumulative) increase (or decreased in the case of income to the Organization) in value does not change the originally approved value by more than 20% or US$ 500,000, whichever amount is lower, and the (aggregated) extension period does not exceed the originally approved contract duration by more than eight months. If either of these thresholds is exceeded, the review of the HCC is required;
      8. Once the originally approved contract value of a contract previously reviewed by the HCC (including approved revenue to the contractor and income to the Organization) has been amended by more than 20% or US$ 500,000, whichever amount is lower, and/or the originally approved contract duration has been extended by more than 8 months, no further amendments can be made without review by the HCC;
      1. Any outcome of the negotiations resulting from the HCC recommendation to reject all bids and negotiate in accordance with the Financial Rule 105.15 (c), where the proposed contract award exceeds US$ 1,000,000;
      10. Any amendment, modification, or renewal of a contract, including contracts that involve income to the Organization and disposal of UN property through sale, not previously reviewed by the HCC where the aggregate contract value (including approved revenue to the contractor and income to the Organization) now exceeds US$ 1,000,000;
      11. Any amendment, modification, or renewal of a contract, including contracts that involve income to the Organization and disposal of the UN property through sale, previously reviewed by the HCC where, in the judgment of the Director, PD or CPO, such amendment would have significantly affected the procurement process that led to the original contract award, the criteria on which the original award was made, or the original contractual terms. The committee shall review such proposed modification with reference to the criteria on which the original award was approved;
      12. Any other matter referred by an authorized official relating to a contract award or modification;
      13. Any contract or amendments thereof established under Financial Rule 105.17(a) shall not be subject to the review by the HCC except in cases of common procurement actions carried out together by the United Nations and other organizations where the United Nations acts as a lead agency.

9.3 Thresholds for Local Committees on Contracts

In any of the following cases, in accordance with the Financial Regulations and Rules, the recommendation of the LCC and the approval of the relevant Authorized Official shall be obtained prior to any contractual commitment being made:

1. 1. 1. Any award to a single contractor in respect of a single requisition or a series of related requisitions that exceeds the delegation of authority of the CPO based on the contract value or gross revenue to the contractor during the term of the contract including any optional extension periods but does not exceed US$ 1,000,000;
      2. Any contract or series of related contracts that involve income to the Organization, including contracts for the disposal of UN property through sale, that exceeds the delegation of authority of the CPO during the term of the contract including any optional extension periods based on the income to the Organization but does not exceed US$ 1,000,000;

For cases requiring review by the HCC, Authorized Officials at their sole discretion may request prior review by an LCC;

1. 1. 3. Any amendment, modification, or renewal of a contract previously reviewed by the LCC where the modification increases the originally approved contract value or gross revenue to the contractor by more than 20% or the delegation of authority of the CPO, whichever amount is lower;
      4. Any amendment, modification, or renewal of a contract previously reviewed by the LCC that involves income to the Organization, including contracts for the disposal of UN property through sale, where the modification decreases the originally approved income to the Organization by more than 20% or the delegation of authority of the CPO, whichever amount is lower;
      5. Any amendment, modification or renewal of a contract, including contracts that involve income to the Organization and the disposal of UN property through sale, previously reviewed by the LCC where the modification increases the originally approved contract duration by more than eight months;
      6. In the case that both the contract value (including approved revenue to the contractor and income to the Organization) and the duration of the contract are modified, either simultaneously or sequentially, review by the LCC is not required when the (cumulative) increase (or the decrease in case of income to the Organization) in value does not change the originally approved value by more than 20% or the delegation of authority of the CPO, whichever amount is lower, and the (aggregated) extension period does not exceed the originally approved contract duration by more than eight months. If either of these thresholds is exceeded, the review of LCC is required;
      7. Once the originally approved contract value of a contract previously reviewed by the LCC (including approved revenue to the contractor and income to the Organization) has been amended by more than 20% or the delegation of authority of the CPO, whichever amount is lower, and/or the originally approved contract duration has been extended by more than 8 months, no further amendments can be made without the review by the LCC;
      8. Any outcome of the negotiations resulting from the LCC recommendation to reject all bids and negotiate in accordance with the Financial Rule 105.15 (c), where the proposed contract award exceeds the delegation of authority of the CPO;
      9. Any amendment, modification, or renewal of a contract, including contracts that involve income to the Organization and disposal of the UN property through sale, not previously reviewed by the LCC where the aggregate contract value (including approved revenue to the contractor and income to the Organization) now exceeds the delegation of authority of the CPO;
      10. Any amendment, modification, or renewal of a contract, including contracts that involve income to the Organization and disposal of the UN property through sale, previously reviewed by the LCC where, in the judgment of the CPO, such amendment would have significantly affected the procurement process that led to the original contract award, the criteria on which the original award was made, or the original contractual terms. The committee shall review such proposed modification with reference to the criteria on which the original award was approved;
      11. Any other matter referred by an Authorized Official relating to a contract award or modification;
      12. Any contract or amendments thereof established under Financial Rule 105.17(a) shall not be subject to the review by the LCC except in cases of common procurement actions carried out together by the United Nations and other organizations where the United Nations acts as a lead agency.

9.4 Submission to Review Committees on Contracts

For all procurement actions that require review by a Review Committee, the Director, PD, or the Chiefs of Service in PD, or the CPOs, or their duly designated representative, in consultation with the relevant Requisitioners, shall submit cases through an electronic submission system to the respective Review

Committee by the established deadline. Such deadline shall be established by each Review Committee and communicated to the Director PD, or the CPOs as appropriate.

The Chairperson of a Review Committee may, at his/her sole discretion and in accordance with guidelines established by the Review Committee, accept the late submission of presentations (i.e., after the established time for submission of cases for regularly scheduled meetings) for procurement actions arising out of an emergency, exigent situations, or unforeseen operational urgency. Such Submissions are usually referred to as “Walk-In” cases. The terms of reference and responsibilities set forth in this chapter regarding normally submitted cases apply equally to “Walk-In” submissions. Justification shall be provided in writing to the Chairperson of the Review Committee from the relevant requisitioner in consultation with the Director PD or the CPO. A complete submission in accordance with standard requirements shall be presented to the Review Committee for any “Walk-In” cases.

Procurement Officials shall ensure that submissions to a Review Committee are comprehensive, factually accurate, and clear to facilitate the review of the procurement action. Procurement Officials shall also ensure that the recommended vendor is registered at the required level before submission of the case to a Review Committee. Submissions shall be in sufficient detail to enable the Review Committee to obtain an accurate and complete description of the procurement actions taken and the basis for the proposed award.

The Director, PD, or the CPOs and the requisitioning office shall ensure that relevant procurement and requisitioning staff are present at the Review Committee’s meetings to answer questions and provide clarifications when required.

In case of urgent procurement actions, the requisitioning office may request the Chairperson of the Review Committee that the minutes of the Review Committee recommendations be issued on an expedited basis. This request may be accepted or rejected at the sole discretion of the Chairperson of the Review Committee.

In cases of split awards, the entire procurement process and all awards, including those that individually do not exceed the threshold that requires submission to a Review Committee (LCC or HCC), shall be referred only to one Review Committee (either LCC or HCC) based on the recommended award with the highest NTE amount. Following the recommendation rendered by the Review Committee, the Authorized Official approves all award(s) deriving from the same procurement process, including those that fall below the threshold for Review Committees.

Field Missions, OAHs, Regional Commissions or Tribunals, or other UN Secretariat entities may be given LPA to undertake the procurement of Strategic Goods and Services. Procurement actions for Strategic Goods and Services with a value in excess of US$ 1,000,000 shall be reviewed by the HCC and the Authorized Official shall send the case to the Director, PD for PD’s review before the case is forwarded to the HCC’s attention. The Director, PD or his/her duly designated representative, may request the CPO to provide clarifications and will submit the presentation to the HCC with PD’s comments. The CPO, the Requisitioner or their duly designated representative in the field, and the Procurement Official from Headquarters shall jointly present such cases to the HCC.

After the HCC’s review of such cases, the recommendations of the HCC will be submitted for the consideration of the Head of Entity of the requisitioning office.

9.5 Facilitation of the Review by the HCC/LCC

Procurement Officials are responsible for the following:

1. 1. 1. Ensuring, in cooperation with the requisitioner, accurate, timely, and comprehensive presentations to the Review Committee, including a written justification for the proposed award(s) and a brief description of the purpose of the goods or services to be acquired. Presentations to Review Committees shall include, at a minimum, the documents set forth in Annex 13 (PD SOP No. 001 Quality Assurance Programme for HCC Presentations implemented at UN/PD) as appropriate. The Review Committees may also request additional documents, as they may deem appropriate;
      2. Providing to the Review Committees, upon request and in a timely manner, clarifications and/or additional information in connection with a case presentation in consultation with the Requisitioner as appropriate;
      3. Ensuring that the procurement action is undertaken in accordance with the Financial Rules and Regulations, established procurement practices and procedures, applicable SGBs, and AIs.

9.6 Ex Post Facto Presentations to Review Committees

A submission to the Review Committee may be ex post facto in the following two cases, namely, (a) fully “ex post facto” cases and (b) partially “ex post facto” cases, defined as follows:

1. 1. 1. Fully Ex Post Facto Case: A procurement action, whether a written contractual instrument exists or not, in which the UN entered into a commitment for the provision of goods and/or services in full prior to submission of the procurement action to the relevant Review Committee(s) for its recommendation to the Authorized Official;
      2. Partially Ex Post Facto Case: A procurement action, whether a written contractual instrument exists or not, in which the UN entered into a commitment for the provision of goods or services in part prior to submission of the procurement action to the relevant Review Committee(s) for its recommendation to the Authorized Official.

Although ex post facto cases are not specifically addressed in the Financial Rules and Regulations, they may be accepted by the Organization under exceptional circumstances, provided all other UN procurement practices and procedures have been followed. However, ex post facto cases should be rare exceptions, and when they occur, written justification shall be provided in the case presentation to explain the reasons why timely submission of the case was not possible. Such justification should identify the reasons for the ex post facto situation and propose how to address the root cause in order to avoid reoccurrence.

Procedures for Ex Post Facto Cases Submitted to the HCC: