A contract is a written, legally binding agreement between the UN and a contractor, which establishes the terms and conditions, including the rights and obligations of the Organization and the contractor.

11.1.1 Contract Preparation. 122

After a solicitation process in which the UN has defined the requirements, a vendor may be selected based on an offer, and such vendor will be required to enter into a contract by the UN.

UN Standard Form of Contracts based on model templates approved by OLA should be attached in the solicitation as well as used for contract formation, which shall be completed using contract-specific data.

Modifications and/or additions to the UN Form of Contracts, including annexes, should be made after consultation with OLA or a Legal Advisor for legal terms and the Procurement Official for financial terms. Care must be taken not to include any requirements or conditions that contradict the UNGCC or the standard text of any of the documents.

Further to Financial Rule 105.18, written procurement contracts shall be used to formalize any award following a procurement activity.

11.1.2 Letter of Intent

A Letter of Intent (LOI) is a written statement of the intention to enter into a formal agreement and may be exceptionally used to allow vendors to mobilize for contract implementation before signature of the final contract can be affixed.

The LOI is a contractual instrument that entails substantial risk and must, therefore, be used only after a careful risk assessment and only by Procurement Officials with substantial and relevant contracting experience, in cooperation with Requisitioners with significant technical experience. Responsibility for risk assessment rests with the Procurement Approving Authority, which shall be held accountable. Advice on assessing the risk may be sought from the ASG, OSCM, OLA, or a Legal Advisor.

If an LOI is intended for use, the LOI must be cleared by OLA, limiting the UN’s responsibility and allowing the UN to withdraw from the LOI with minimum legal and financial consequences.

An LOI shall only be issued after an award has been approved, and only when all financial terms have been completely agreed upon with the vendor and all contract costs are known to the UN. Thus, an LOI can only be used to initiate work while allowing additional time to finalize contract details, such as detailed timeline, details of personnel, negotiation of non-financial contract clauses, etc.

11.1.3 Contract Finalization Discussions with Vendors. 122

The purpose is to clarify any remaining issues that are not defined by the requirements in the solicitation documents or by the vendor’s offer, but which are essential for proper implementation of the contract(s). Contract discussions should result in a clear understanding of terms and conditions agreed upon by the parties and their respective responsibilities under the contract.

Certain key areas, such as detailed delivery plan, milestones, and in certain cases, special terms and conditions, may form part of the contract discussions. However, this should not be confused with negotiations, as these should be conducted prior to award, according to Chapter 8.9.

There are no strict rules as to how to discuss pending details to be included in contracts. It is important to note that the UN should inform the vendor it discusses or negotiates with that the UN only accepts offers in writing. Else, by law, the results of verbal contract negotiations could form a contract and the vendor could begin performance.

No negotiations of significant contract terms and conditions should take place following contract award, as the modification of certain material provisions (e.g. limitation of liability, insurance, and liquidates damages) may disadvantage other bidders and expose the UN to bid protests.

11.1.4 Advance or Progress Payments

No advance payments should be made, except when the conditions outlined in Financial Rule 105.19 apply. The Procurement Official shall record the reasons for advance or progress payments in the procurement case file.

Under certain conditions, the UN may agree to pay for partial delivery of the goods or upon completion of clearly defined milestones for services or works, provided adequate security for the advance or progress payment is established. In such cases, the Procurement Official should consider establishing specially developed payment terms taking payment flows into consideration, provided such terms are approved by the Director, PD or the CPO and are tailored to the specific procurement.

Lease payments paid in the same month to which they relate are not considered advance payments, regardless of whether they are paid on the first or last day of the month. However, lease payments paid prior to the month to which they relate are considered advance payments.

11.2 Performance Securities. 123

Performance securities can be requested by the UN from the selected vendor in order to mitigate the risk of vendor non-performance and breach of contractual obligations (such as the delivery of all equipment, services rendered, and works completed, as per the contract). Securities and guarantees are normally issued in the form of an unconditional and irrevocable on-demand bank guarantee. However, bonds, demand drafts, cashier’s cheques, or irrevocable cheques certified by a bank can be accepted in lieu of guarantees if approved by OLA. This should be specified in the tender documents, along with UN templates for the same, if applicable.

If performance security is required, the vendor shall provide security for performance of the contract within a specified period of time of contract signature, in an amount that usually corresponds with a percentage of the total contract value (normally 5-10%). The proceeds of the security (an established amount) shall become payable to the UN in the event of the vendor’s failure to perform.

Upon receipt of performance security, the Procurement Official will provide the security to the TOC together with the form attached as Annex 20 (Request for Safekeeping of Performance Bond). Subsequently, the TOC official shall submit the security to the Treasury to be kept in custody.

The UN shall return the performance security to the vendor after certification by Requisitioner or Final User of completion of the vendor’s performance obligations under the contract, including any warranty obligations, if applicable.

A bank guarantee received on bank letter headed paper should follow the OLA-approved form and include the following:

1. A definition of the parties involved: Principal, Issuing Bank, and Beneficiary;
2. A reference to the underlying transaction/contract;
3. The guarantee amount: the maximum amount payable and the currency in which it is payable;
4. The period of validity;
5. Documentation: Any demand for payment under the guarantee should be in writing and in addition to other documents that may be specified in the guarantee;
6. Effective Clause: A guarantee enters into effect on the date of issuance unless the terms of the guarantee expressly provide that such entry into effect is to be at a later date or is subject to conditions specified in the guarantee and determinable by the Guarantor. In Advance Payment Guarantees, there should be a condition that allows for the guarantee to come into effect when the Principal/Applicant has received the advance payment;
7. Reference to Applicable Rules: ICC Uniform Rules for Demand Guarantees (URDG758), ICC International Standard Practices (ISP98);
8. Conditions for a Bank Guarantee Exercise, in particular: disbursement upon initial request (initially) without any objections; being irrevocable; being unconditional; being non-transferable;
9. A form of exercise of the beneficiary to the guarantee (bank), namely a written request (beneficiary’s affirmation), sent as a registered letter;
10. Information that a partial and multiple fulfilments is allowed, up to the maximum amount of the sum guaranteed;
11. There are no unauthorized provisions;
12. The guarantee is signed by authorized signatories.

RESOURCES

Annex 20 - Request for Safekeeping of Performance Bond

11.3 Signature, Issuance and Documentation

All contracts must be signed by a Procurement Approving Authority on behalf of the UN and by a duly authorized individual on behalf of the vendor. A contract will come into force once both contracting parties have signed it in writing.

The contract should be issued to the vendor, and the vendor should be instructed to return a signed scanned copy to the UN. The relevant official with the appropriate level of delegation of procurement authority shall countersign the copies, and the UN will send one copy to the vendor. The signed contract must be kept on record for future reference.

All pages of all the documents forming part of a contract or agreement to which the UN is a party, including all attachments, need to be initialed by duly authorized representatives of the parties, except for the page that contains the full signature block, which shall be signed by such representatives.

In all cases, care must be taken to ensure that the signatories to the contract are legal persons for the purposes of contractual relations and have the ability to represent and capacity to bind the respective contracting parties to the obligations thereunder.

Once a contract has been signed, it may be amended only if the contract provisions allow modifications and if additional related goods and/or services are to be provided/rendered by the same vendor in furtherance of the execution of the original contract. Each contract amendment must be in writing and must comply with applicable contractual terms and conditions and the UN’s procurement procedures. All other situations call for a new solicitation process and establishment of a new contract.

11.4 Standard Contract Elements

A contract for goods or services between the UN and a vendor must, at a minimum, include:

1. An instrument of agreement;
2. UNGCC for goods, services, or goods and services as appropriate;
3. Technical specifications, TOR, SOW, pricing (fees and rates, as applicable) and payment terms, template for performance securities, delivery requirements, etc. as well as any special conditions that may be required.

11.4.1 Instrument of Agreement 125

The instrument of agreement must contain the following elements:

1. Identification of the parties contracted, as well as the person authorized to act on behalf of the contracted party, including name, address, and contact details. In the event that the contract is the result of a joint offer, the UN will usually contract with one entity, which should always be the lead entity;
2. Scope of the goods/ services being procured, and the quantity being provided, as well as entry into force and time limits of the contract;
3. A reference to the contract documents (i.e., Special Conditions, UNGCC, etc.);
4. Price and payment terms. Contracts should be denominated in the currency indicated in the bidder’s offer, provided it was allowed for in the solicitation document. It is important to establish tangible indicators for payments, linked to milestones in the delivery of services or completion of works. For service contracts involving works, it is common to have interim progress payments based on a regular measure of the works completed. Final payment must always be based upon acceptance of documentation for completion of services or works or delivery of goods;
5. A ‘lump sum’ contract is used whenever it is possible to determine with sufficient precision the quantity and scope of the goods/services required from the contractor;
6. The ‘unit price’ contract should be used only when the nature of the services/ goods makes it impossible to determine, with sufficient precision, the quantity of the services/ goods required from the contractor. In this case, the contract sets a maximum amount for both the total amount and the provision of each component of the services (e.g. rate per workday, cost of each round-trip, etc.), and establishes the applicable unit price. The maximum amount cannot be exceeded.

Contracts valid over a longer period (over 12 months) may contain price adjustments linked to officially published price indices to cover changes in work rates. The increase may also be estimated and incorporated as a fixed rate over the entire life of the contract. Contracts for commodities whose price may fluctuate over time (e.g. petroleum products, metal products, etc.) may be based on commodities/mercantile exchange prices (e.g. Platts index or LME), provided this is clearly specified in the solicitation document. For such contracts, it is good practice to specify in the contract that the final price shall not exceed a specified maximum amount and that the contractor should adjust the quantity accordingly so that the contract amount is not exceeded. However, where possible, it is strongly recommended to avoid using price escalation; this is the default setting for all UN contracts for works, specifically.

Duration of the Contract: Starting and completion dates, as well as milestones for successful performance, must be precisely defined. Contracts for goods and services also should specify the name of key personnel and their input in terms of estimated man-days/weeks/months.

As for any litigious matters arising out of contract execution, the parties shall first attempt to resolve their dispute amicably through negotiations. If the dispute cannot be resolved amicably, the matter shall be resolved in accordance with the current UNCITRAL arbitration rules. No choice of law-clause shall be included in the contract documents unless special authorization is provided by OLA. Instead, the arbitration provision shall state that in deciding the dispute, the arbitral tribunal shall be guided by general principles of international commercial law.

As a mandatory condition of doing business with the UN, it is necessary that vendors, as well as their subsidiaries, agents, intermediaries, and principals, cooperate with the OIOS, as well as with other investigative bodies authorized by the UN as and when required. Such cooperation shall include, but not be limited to, the following: access to all employees, representatives, agents, and assignees of the vendor, as well as the production of all documents requested, including financial records. Failure to fully cooperate with investigations will be considered sufficient grounds to allow the UN to repudiate and terminate the contract and to debar and remove the vendor from the UN’s list of registered vendors.

11.4.2 General Conditions of Contract (UNGCC) 126

The UN has developed UNGCC for goods, services, goods and services, and works (depending on the nature of the procurement), establishing a legal framework that forms part of every contract. The UNGCC may not be changed. If modifications or additions are required, those shall be made in the form of particular conditions in consultation with OLA.

The UNGCC contain specific provisions on mines, child labour, sexual exploitation, and the fundamental rights of workers. Vendors signing UN contracts automatically agree to abide by these conditions. Procurement Officials should bring these clauses to the attention of the vendor at the time of signing the contract.

The UNGCC apply to all UN contracts and form part of the contractual agreement between the UN and the vendor.

The UN generally does not agree to the use of the general terms and conditions of the other party. If requested to do so, please refer to Chapter 6.4.9.

RESOURCES

UN General Conditions of Contract (De Minimis Field Contracts)

https://www.un.org/Depts/ptd/sites/www.un.org.Depts.ptd/files/files/attachment/page/pdf/general_condition_field_contracts.pdf

UN General Conditions of Contract (provision of goods and services)

https://www.un.org/Depts/ptd/sites/www.un.org.Depts.ptd/files/files/attachment/page/pdf/general_condition_goods_services.pdf

UN General Conditions of Contract (provision of goods) https://www.un.org/Depts/ptd/sites/www.un.org.Depts.ptd/files/files/attachment/page/pdf/general_condition_goods.pdf

UN General Conditions of Contract (provision of services) https://www.un.org/Depts/ptd/sites/www.un.org.Depts.ptd/files/files/attachment/page/pdf/general_condition_services.pdf

UN General Conditions for Aircraft Charter https://www.un.org/Depts/ptd/sites/www.un.org.Depts.ptd/files/files/attachment/page/pdf/general_conditions_air.pdf

11.4.3 Technical Specifications, TOR, SOW

Technical specifications, TORs, SOWs, and other specifications should always be attached as an Annex to the contract or their contents included in the contractual document.

Care must be taken that the content of the annexes is consistent with the general and particular conditions of the contract.

11.5 Purchase Order (PO)

A PO is a type of contract that documents the purchase of goods and/or services. The standard PO originated from UMOJA should always be used.

A PO is accompanied by a copy of the relevant packing and shipping instructions, as well as the UNGCC for goods and/or services (or reference is made to the UNGCC on the UN website).

11.6 Long-Term Agreement (LTA)

An LTA is a written agreement between an organization of the United Nations system and a vendor that is established for a defined period of time for specific goods or services at prescribed prices or pricing provisions and with no legal obligation to order any minimum or maximum quantity. LTAs are used to safeguard a reliable source of supply for goods and services at a competitive price, in accordance with pre-defined terms and conditions. Goods and/or services available under LTAs serve a broad range of clients to meet commonly required, high-volume needs in the most time and cost-efficient manner (e.g., generators, uniforms, freight forwarding, etc.). Product and process economic considerations are advised to be applied when purchasing outside of such Long Terms Agreements, which is a decision that is at the sole discretion of each entity, to obtain the best value for the Organization. To arrive at a completely transparent cost comparison, factors to consider include the price of the good or service, installation, maintenance and freight costs, as well as internal administrative costs associated with the acquisition process, from development of requirements to contract management. Such costs will vary on a case by case basis, but concepts like the cost of inspecting prototypes, conducting a solicitation, staff time, etc. can be considered as appropriate by each Entity.

The below provisions apply to LTAs issued by the UN Secretariat (which may also be referred to as systems contracts). Please refer to Chapter 14 for guidance on utilization of LTAs issued by other UN system organizations.

Since procurement through LTAs is a very efficient way to carry out procurement, all Procurement Officials should keep abreast of existing LTAs and assess if an LTA could be used for requirements. An online catalogue of existing LTAs (including managed turnkey contracts) has been developed by the Office of Supply Chain Management.

In addition, Procurement Officials should always consider whether the procurement actions they are undertaking themselves could potentially be the basis of an LTA. When establishing an LTA further to formal methods of solicitation, the tender document must make it clear that an LTA will be established as well as cover the following points: type of LTA and geographical or other coverage, description of the goods and/or services, duration, price adjustment methods (if applicable), and the award methodology, especially when it is expected to award more than one vendor.

11.6.1 Benefits and Risks of Establishing LTAs. 128

LTAs can achieve significant benefits, including:

Competitive prices: Aggregating the volume over the life of the LTA may lead to lower prices for some types of goods/services, based on the principle of economies of scale. LTAs can enable the UN to fully leverage its market position, taking advantage of its size, procurement volume, and geographical presence in order to obtain Best Value for Money. For instance, LTAs might include a provision that vendors must pass on any price reductions obtained through bulk purchase to the UN. The same may apply to pre-defined discount schemes in the contract once the UN has purchased a certain volume.

A simplified business process leading to reduced transaction cost: An LTA established by a single procurement process allows call-off orders at any time during the life of the LTA, thus avoiding the time and resources needed for repetitive procurement actions for the same set of goods or services.

Consistency in quality and reliability of the source of supply: By having established quality standards in the LTA, the time spent on inspection and possibility of rejection of goods/outputs are reduced.

Standardization of requirements: Promotes standardization of requirements across offices, which could contribute to a reduction in operation and maintenance costs and other efficiencies.

Reduced delivery lead-time: As many aspects are pre-agreed and specified in the LTA, the lead-time between the call-off and delivery is significantly shortened, and this is particularly relevant during emergencies. LTAs are particularly useful for goods that can be stocked, or services set up for immediate mobilization or deployment.

BENEFITS OF LTAS

LTAs offer benefits such as competitive prices through economies of scale and consolidation, simplified processes, consistency in quality and reliability of supply, and standardization of requirements, as well as reduced lead-time. They are also useful in start-up and emergency scenarios. LTAs that are well set-up from a quality delivery timeline and cost perspective will also offer value to other organizations in the UN System, thus fostering cooperation.

11.6.2 Types of LTAs. 129

There are three (3) main types of LTAs:

(i) Single-Vendor LTA: One vendor is supplying the total requirements for a given type of goods/services.

(ii) Multiple-Vendor LTAs Without Secondary Bidding: Two or more vendors are supplying the same requirements. Among others, the reasons for having multiple LTAs in place can be related to securing supplies at times of high demand through several sources, geographical location of the vendor (landed costs, shorter transit time, etc.), ability to provide after-sales service and support of the goods, or provision of the services at the specified location, etc.

Wherever the UN has established multiple LTAs with different vendors for the same product or services, Procurement Officials shall make sure they select the LTA which best suits the specific requirement in the respective area of operations. Such a decision should be consistent with the four principles of procurement under Financial Regulation 5.12.

The reasons for selecting a specific LTA for the issuance of call-off orders shall be documented in the procurement file including value for money assessment.

(iii) Multiple-Vendor LTAs With Secondary Bidding: Two or more vendors are supplying similar or identical requirements, and the final placement of each call-off is determined through secondary bidding. If secondary bidding is considered, it shall only apply to those components of a requirement with prices that are not fixed in the LTA (e.g. freight) or that are subject to ceiling prices. Other aspects, such as vendor capacity, delivery time, and mobilization time at the time of the request, may also be subject to secondary bidding.

Note: Some LTAs might include a combination of types (ii) and (iii) above, i.e., particular items, locations, or conditions where orders can either be placed directly to one of the LTA holders or be subject to secondary bidding. Instructions for usage of these types of LTAs must be clearly laid out.

The above types of LTAs can be further classified based on their geographical coverage:

1. Country-Specific LTA: established for use by a specific entity to procure goods or services required in a specific country only. The LTA is set up and managed by the respective entity in that country. An LTA that has been set up in one country for goods and services sourced from within that country should not be used in another country, as the market conditions may vary between the two countries and usage across countries may not reflect value for money;
2. Regional LTA: for use by several entities in a specific region of the UN’s operation, to procure goods or services required in a specific region. Such LTAs may be set up and managed either by PD, a Regional Centre or an entity within that region;
3. Global LTA: for use by all UN entities. Such LTAs are normally created and managed centrally by PD.

For the use of other UN Entity’s LTAs, please refer to Chapter 14.1 Cooperation with UN Organizations.

11.6.3 Establishment of a New LTA

The suitability of an LTA shall be considered during the category management strategy development and implemented at the procurement planning stage.

PD must be informed about upcoming LTAs that go beyond a local scope in advance (i.e., prior to initiating the procurement process) and, as necessary, will provide guidance on establishing the LTAs. As an LTA is created for a long duration and requires both upfront and long-term resources and expertise to set up and manage effectively, the decision to create an LTA should be based on a brief business case, which should outline the following elements:

1. Description of goods/services required;
2. Type of LTA and geographical coverage;
3. Past spend data in the category and planned spend;
4. Expected duration of the LTA(s);
5. Price adjustment method, if any;
6. Expected benefits and risks of the LTA;
7. Results of market research: number of potential vendors, location, etc.;
8. Procurement strategy: solicitation method, type of competition;
9. Procurement process timelines.

11.6.4 Duration of LTAs. 130

To ensure fairness and competitive terms and conditions, LTAs are typically valid for a period of three (3) years. LTAs may be extended for an additional period of up to 24 months, if provided for in the contract and subject to satisfactory vendor performance (to be documented in a vendor performance evaluation see Chapter 13), continuing requirement of the goods and services covered, and if the prices offered are within the current market range (e.g. the cost of IT equipment often falls over time and it might not be in the best interest of the organization to extend such an agreement). Foreseen durations beyond this maximum period of five (5) years (3+2) should be outlined in the business case and/or SSP, along with a justification of the need for such extended period, and be approved in advance by the Director, PD or the CPO.

11.6.5 Call-Off Orders Against an LTA.. 130

A call-off order refers to an order issued against an existing LTA. Call-off orders are not subject to review and recommendation by a Review Committee; however, such orders require approval by the relevant Procurement Approving Authority with the corresponding level of delegation. It is to be noted that the principles of cumulative/aggregate amounts do not apply to call-off orders.

In addition to ensuring that the Procurement Approving Authority has the required authority to approve the call-off order, she/he should also be satisfied that the instructions related to the applicability of the LTA have been followed. In particular:

1. If the issuance of the call-off order is the result of a secondary bidding exercise, the Procurement Official must ensure that the ceiling prices specified in the LTA have not been exceeded;
2. If the issuance of the call-off order is further to a multiple vendor LTA without secondary bidding, that value for money is achieved;
3. The Procurement Official should be satisfied that any specific conditions of the LTA are met, such as the existence of maximum value for call-off orders, the maximum cumulative value per year, etc.;
4. If the LTA, whether established by the UN or by another United Nations entity, is based on an exception to formal methods of solicitation, the Procurement Official should verify at the time of reviewing the call-off order that valid reasons exist for standardization, accelerated delivery, etc.

Call-off orders must state the details of the relevant LTA, such as the LTA reference number or other specifics that facilitate future reference.

11.7 Blanket Purchase Order131

Upon request, the Procurement Office may arrange for certain departments and offices to order limited quantities of specified products and services through a BPO. The BPO is basically a simplified form of LTA. This instrument is usually reserved for repetitive orders up to a maximum total amount of US$ 100,000 per year when items of low-value are not held in stock by the UN, services are required on short notice, or prices conform to a set pattern in the trade (e.g. prices found in catalogs). BPOs should not be used for large volumes of items even when they are of low value. All efforts should be made to use (or replace BPOs with) local systems contracts (with discounts on catalogs, if necessary) or service contracts (including applicable mechanisms for pricing services, e.g. repairs) with pre-agreed price structures and terms.

The Procurement Official shall establish BPOs on an annual basis for specific items based on Requisitions received from the departments or offices concerned. The procedures described in Chapter 5 and Chapter 6 shall be followed in selecting vendors to participate.

To prevent exceeding the BPO threshold, the same vendor should not be awarded more than one BPO at the time.

BPOs for goods and/or services can be entered into with multiple vendors. The UN has less cost control over the Vendor when using a BPO in that the initial market survey only gives a relative indication of prices for a representative sample of goods or services in a category. Essentially, the vendor may charge as it sees fit at the time an actual order is placed. Therefore, BPOs should only be used to purchase items that are difficult to specifically identify and quantify. Examples include spare parts, electrical components, engineering workshops components such as nails, bolts, etc. BPOs shall include a specified term (duration), a maximum NTE contract amount, instructions about procedures/authorization for ordering against the BPO, specifications about delivery procedures and terms of payment, provisions for possible price escalations, and other appropriate terms and conditions. UMOJA product category contracts may be used if a UMOJA catalog cannot be created due to a large number of items required.

The Requisitioner must identify the types of goods or services that may be needed under the BPO. The requirements should include a sample “shopping list” indicating as wide a range of products or services as possible, maximum delivery lead time, and, if appropriate, relative maximum quantities of those items. The Procurement Office will use the sample “shopping list” to perform a market survey, the result of which will be used to select a Vendor. The Requisitioner is not locked into ordering the items on the sample “shopping list” but may place orders for any item that falls into the product/service category covered by BPO.

The Procurement Official shall evaluate each BPO at the end of the year to determine whether it should be renewed. The Section Chief/ Director, PD or the CPO may approve the issuance of a BPO to the same Vendor, if so requested by the departments or offices concerned, for up to three consecutive years without having a new Solicitation for the items or services covered by the BPO.

Requirements for technical review and LPA shall continue to apply.

In Writing: All BPOs shall be in writing (stating price, quantity, brand/model, delivery place/time, warranties, after-sale support, etc., as applicable), with receipts obtained. Receipt, inspection and payment shall follow the usual UN terms/UNGCC.

11.8 Call-Off Orders Against a BPO

After a BPO has been issued in UMOJA by the Procurement Official through a regular Shopping Cart issued by the Requisitioner, the departments or offices concerned may proceed to order from the selected vendor, in accordance with the terms of the BPO, by issuing LVA Purchase Orders. All such orders must include the BPO number, the Product ID for each item, and the terms and conditions of the BPO shall govern the purchase in all respects. The CO is required to check that the goods/services ordered meet the UN's requirement at fair and reasonable prices. In such cases, the CO (or the Procurement Official as applicable) is responsible to link all such LVA Purchase Orders to the correct UMOJA BPO contract and to verify that orders are in accordance with agreed prices and other contract terms. A call-off order against a BPO shall be used by a Procurement Official in case its overall value exceeds US $10,000.

In order to maintain proper administrative and financial controls, it is strongly recommended that authorization of LVAs be limited to the CO responsible for that cost centre. It is the responsibility of the Requisitioner to keep records of expenditures against, and the unspent balance of, a BPO.

Invoices against a BPO should reference both the BPO contract number and the Work Order/Task Order number. In most other respects, the ordering and administrative procedures, including receiving and inspection, property control, and inventory and invoice processing are the same for a BPO as they are for other forms of Contracts and Purchase Orders.

The total sum drawn upon a BPO shall be limited to a maximum of US $100,000 per year and shall not exceed the face value of the BPO. The BPO shall specify the term for which it is valid. In order to replace an expired BPO, a new BPO shall be issued.

.. 132

Sub-categories Title

Chapter 11. Contract Finalization and Issuance Contractual Instruments

Quick facts

new tech

Footer

Search form

Sub-categories Title

Chapter 11. Contract Finalization and Issuance Contractual Instruments

Quick facts