Individual Contract Policy

Supplemental guidance: 

32. 
    To illustrate, suppose an individual contract with an initial duration of 20 months requires an unforeseen extension of 6 additional months, which then results in a total contractual duration of 26 months. In this case, an approval of the respective Regional Bureau Director must be obtained to grant the extension.  
    
33. 
    If an individual contract with a duration of 20 months expires and the business unit decides to engage the same individual for a different project, under a new individual contract with a 6-month duration, based on a new Terms of Reference, and for which a new selection process was undertaken by a new evaluation team, Regional Bureau Director/Resident Representative approval is still required. ⁱ
    

Procurement Review Committees

Contract, asset and procurement committee

34. 
    Individual contracts or a series of such contracts awarded to the same individual with a cumulative value of less than US $100,000.00 per business unit over a 12-month period do not require a review by the Contract, Asset and Procurement Committees. Beyond $100,000 and up to the delegated procurement authority of the business unit, a review shall be required.
    

Regional advisory committee on procurement and advisory committee on procurement

35. 
    Individual contracts or a series of such contracts awarded to the same individual over a 12-month period with a cumulative contract value exceeding the business unit’s delegated procurement authority shall be submitted for review and approval by the Regional Advisory Committee on Procurement or, for headquarters and out posted headquarters units, the Advisory Committee on Procurement. 
    
36. 
    When a business unit has been granted an increased delegated procurement authority, i.e., above US $150,000, its authority for managing individual contracts shall be the same as that applied to all other procurement of goods, services and works. 
    
37. 
    For calculating the cumulative amount, the 12-month period begins by counting 12 calendar months back from the expected start date of the new contract.
    
38. 
    The above thresholds apply regardless of the following circumstances:
    

1. 
   Whether the contract/s was/were awarded based on a competitive process or through direct contracting; and
   
2. 
   Whether the engagement of the individual was formalized through an individual contract or a reimbursable loan agreement with an organization.
   

39. 
    Any amendment to an individual contract not previously submitted to the Regional Advisory Committee on Procurement or Advisory Committee on Procurement where the total contract amount after the amendment will reach or exceed the business unit’s delegated procurement authority over 12 months shall be submitted to the relevant committee for review.
    
40. 
    If the individual contract submitted to the Regional Advisory Committee on Procurement or Advisory Committee on Procurement has a duration exceeding the 24-month limit, the submission dossier must include the Consultancy Duration Approval Form duly signed by the Regional Bureau Director or anyone delegated to approve such a request on his/her behalf. Similarly, if the individual contract has a daily fee exceeding US $1,350, the justification and approval from the Regional Bureau Director or Resident Representative must include.
    

Computing cumulative contract amounts

41. 
    Unlike all other contractual modalities in procurement, the cumulative value of an individual contract is not based on a calendar year, but rather on the preceding 12-month period, counted from the anticipated start date of a new individual contract or contract amendment.
    
42. 
    When determining whether or not the case should be submitted to the Regional Advisory Committee on Procurement or Advisory Committee on Procurement, based on the contract amount or cumulative amounts of a series of contracts, staff may be guided by the following:
    

1. 
   If an individual contract will be issued to an individual for the first time, and the total amount of the contract exceeds the business unit’s delegated procurement authority for individual contracts, then the case must be submitted to the Regional Advisory Committee on Procurement or Advisory Committee on Procurement.
   
2. 
   If an individual contract will be issued to an individual who has had previous contracts in the same business unit, the amount to be awarded to the individual, plus all amounts that have already been paid for 12 months prior to the issuance of the new contract must be combined to determine the total cumulative contract amount.
   
3. 
   If, in the course of undertaking action (b), the prior 12-month period being counted falls within the duration of an individual contract active on the 12th month, then the entire amount of the previous contract must be included.
   

 

43. 
    All cumulative contract amount computations shall include all other payments disbursed to the contractor in addition to professional fees (e.g., living allowances, travel costs, incidentals, etc.).
    
44. 
    Splitting individual contracts in order to avoid the scrutiny of any procurement review committee is a serious deviation from UNDP procurement policies and procedures. UNDP staff members are strictly requested to refrain from such practices.
    

Pre-requisites for Contracting

Before issuing a contract

45. 
    The following are pre-requisites for issuing an individual contract:
    

1. 
   Budgetary provisions:  Managers of requesting units must ensure that funds for the services or activities are approved and available in the appropriate budget(s)/account(s) before beginning the engagement process.
   

2. 
   Terms of reference: Managers of requesting units are responsible for preparing the terms of reference for the assignment. These are the basis for the sourcing, evaluation and selection of individual contractors. They clearly specify deliverables and/or activities and the degree of expertise required, as well as the name and title of the immediate supervisor. When drafting the terms of reference, the requesting unit should consider whether the assignment requires intellectual or support services, as well as whether a daily fee or a lump sum payment option is more appropriate under the circumstances. It must clearly state:  
   
   • 
     General background information relevant to the assignment
     
   • 
     The objectives of the assignment
     
   • 
     The scope of work, which must be consistent with the budget, and contain a detailed description of deliverables and activities
     
   • 
     The duration of the assignment
     
   • 
     The duty station and expected places of travel, if any
     
   • 
     Monitoring and progress controls, including reporting requirements, frequency, format and deadlines
     
   • 
     A clear and unequivocal definition of the final product/s or deliverables (e.g., survey completed, workshop conducted, data collected, reports written, etc.), the timeframe for their completion, and payment milestones
     
   • 
     The approval process required to certify outputs prior to authorizing payment, and payment milestones if applicable
     
   • 
     A clear and precise description of the selection criteria, including the required degree of expertise and qualifications such as specialized knowledge, language needs and experience
     
   • 
     If applicable, a detailed list of all inputs and services provided by UNDP or any implementing partners in order to perform the contract
     
   • 
     Any other relevant information
     

 

46. 
    The terms of reference should also state whether the assignment requires a partial, intermittent or full-time presence on UNDP premises. If a full-time presence is required, a justification must be provided. If support services such as office space, equipment, secretarial services, etc. are required, the terms of reference should clearly state what arrangements are being made and indicate the responsible party. 
    
47. 
    A Guide to Writing the Terms of Reference for an individual contract helps to facilitate the process.
    
48. 
    Determination that the Individual Contract is the right contractual modality, based on an assessment of all available modalities, especially taking into consideration the criteria that justify the use of Service Contracts, Temporary Appointment (TA) or Fixed Term Appointment (FTA).   The decision making process should be guided by Section Purpose of IC and Nature of IC Services previously described.