SOP Procurement

STANDARD OPERATING PROCEDURES FOR PROCUREMENT WITH GRANTS FROM THE THREE DISEASES FUND

Standard Operating Procedures
(SOP)
for Procurement with
Three Diseases Fund grants

Yangon, Dec 2010
Version 4.1
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Date: Sep 2010, Version: 4.1
1. CONTENTS
1. CONTENTS ....................................................................................................... 2
2. INTRODUCTION ................................................................................................. 3
3. STRATEGIC OBJECTIVES ....................................................................................... 5
3.1 PROCURE THE MOST COST‐EFFECTIVE DRUGS IN THE RIGHT QUANTITIES ............................................. 5
3.2 SELECT RELIABLE SUPPLIERS OF HIGH‐QUALITY DRUGS .................................................................... 5
3.3 ENSURE TIMELY DELIVERY ......................................................................................................... 5
3.4 ACHIEVE THE LOWEST POSSIBLE COSTS ........................................................................................ 5
4. SPECIAL CONSIDERATIONS .................................................................................... 6
4.1 URGENT REQUIREMENTS .......................................................................................................... 6
4.2 BUDGET ADJUSTMENT ............................................................................................................. 6
4.3 VERY SMALL QUANTITIES .......................................................................................................... 6
4.4 AD HOC REQUIREMENTS .......................................................................................................... 6
4.5 PARTNERS OWN PROCUREMENT GUIDELINES VERSUS 3DF SOP ....................................................... 6
4.6 EXCEPTIONS FOR LOCAL PROCUREMENT ...................................................................................... 7
4.7 PROCUREMENT IN THE FINAL YEAR OF A MEMORANDUM OF AGREEMENT. ......................................... 7
4.8 IMPORTATION ASSISTANCE ....................................................................................................... 7
5. PROCUREMENT PROCESS ..................................................................................... 8
5.1 PROCUREMENT CAPACITY ASSESSMENT ....................................................................................... 8
5.2 PROCUREMENT DONE BY THE FUND MANAGER OR PARTNERS ......................................................... 9
PHASE 1: ASSESS REQUIREMENTS ............................................................................................. 9
PHASE 2: SOURCING, QUOTATIONS, VALID LONG TERM AGREEMENTS (LTAS) ............................... 11
PHASE 3: SOLICIT OFFERS ..................................................................................................... 16
PHASE 4: EVALUATE OFFERS ................................................................................................. 18
PHASE 5: ISSUING A PURCHASE ORDER ................................................................................... 19
PHASE 6: CUSTOMS CLEARANCE AND TAX EXEMPTION ................................................................ 20
PHASE 7: RECEPTION OF THE CONSIGNMENT ............................................................................ 24
6. LIST OF DEFINITIONS AND ABBREVIATIONS .............................................................. 27
7. BIBLIOGRAPHY AND FURTHER READING ................................................................. 30
8. ANNEXES ...................................................................................................... 31
ANNEX 1. PARTICIPATING REGULATORY AUTHORITIES............................................... 31
ANNEX 2. NATIONAL GUIDELINES USED FOR STANDARD DRUGS ORDER LIST .......................... 32

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2. INTRODUCTION
The Three Diseases Fund (3DF) aims to reduce the burden of communicable disease mortality
and morbidity for tuberculosis, malaria and AIDS in Myanmar. The 3DF is a pooled funding
mechanism established by a consortium of international donors to address the three diseases in
close cooperation with key actors. Supported by Australia, Denmark, the European Commission,
the Netherlands, Norway, Sweden and the United Kingdom, the 3DF received pledges of more
than US$ 125 million over five years for the three diseases.
All grant recipients, the Fund’s partners, are responsible for ensuring that procurement with
funding from the 3DF is undertaken according to the Fund’s policies and principles.
The Fund Manager (FM), the United Nations Office for Project Services (UNOPS), is expected to
comply with all regulations, rules, and public procurement principles.
The principles of UNOPS procurement policies and procedures form the basis of the current 3DF
Standard Operating Procedures (SOP) for the supply of pharmaceutical and health‐related
commodities for and by 3DF grant recipients in Myanmar.
The SOP shall guarantee the application of the best value for money principle in the
procurement process. This does not necessarily mean selecting the lowest initial price option,
but requires an integrated assessment of technical, organizational, and pricing factors in light of
their relative importance. The SOP should, however, aim at reducing the overall procurement
costs, and at ensuring the efficiency and reliability of the supply chain.
The SOP aim to guide 3DF partners in procurement activities. They describe standard
procedures to be followed by the Fund Manager, when procuring on behalf of partners. It is
envisaged that these SOP will be updated regularly to ensure that they remain relevant to
UNOPS business and 3DF donor requirements and in line with best practices in public
procurement. This manual will be updated accordingly as the need arises.
The SOP consists of eight sections including the Introduction and the Annexes. Section 3 starts
by outlining the strategic objectives for good quality pharmaceutical procurement; this is
expanded in the Annexes with the operational principles. Section 4 deals with special
considerations such as budget adjustment, small orders, ad hoc considerations and exceptions.
Section 5 provides a detailed description of the steps to be followed in a procurement process.
For the purposes of this document, the definition of pharmaceuticals and drugs is as follows:
All substances that in one way or another (oral, through the skin,
injectable, etc.) enter the body and are intended to influence and/or
stimulate the normal function of the body beyond normal nutrition and
hygiene.

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Links in this document are underlined in blue and preceded by the following icons:
Links to a related sample, form or template
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3. STRATEGIC OBJECTIVES
The following four strategic objectives are relevant to any drugs supply system:
1. Procure the most cost‐effective drugs in the right quantities
2. Select reliable suppliers of high‐quality products
3. Ensure timely delivery
4. Achieve the lowest possible total cost

3.1 PROCURE THE MOST COST‐EFFECTIVE DRUGS IN THE RIGHT QUANTITIES
All agencies active in procurement shall maintain a list of essential drugs to ensure that only the
most cost‐effective drugs are purchased. Procedures that accurately estimate procurement
quantities must be in place, in order to ensure continued availability of the selected products
without accumulating excess stock.
3.2 SELECT RELIABLE SUPPLIERS OF HIGH‐QUALITY DRUGS
Reliable suppliers of high‐quality drugs must be pre‐selected and active quality assurance
programmes involving surveillance and testing shall be implemented by the supplier.
3.3 ENSURE TIMELY DELIVERY
Procurement and distribution systems must ensure timely delivery of appropriate quantities to
central or district stores and adequate distribution to health facilities/service delivery points
where the products are needed.
3.4 ACHIEVE THE LOWEST POSSIBLE COSTS
The lowest possible costs must be achieved considering four main criteria:
1. The actual purchase price of the drugs
2. Hidden costs due to poor product quality, poor supplier distribution or short shelf‐life
3. Inventory holding costs at various levels of the supply system
4. Operating costs and capital loss by management and administration of the procurement
and distribution system
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4. SPECIAL CONSIDERATIONS
4.1 URGENT REQUIREMENTS
The Fund Manager should be contacted in cases of urgent need (for example drugs needed
within four months and which cannot be supplied through an international procurement
action). The Fund Manager is often able to facilitate communication between partners to assist
in sharing stocks.
4.2 BUDGET ADJUSTMENT
In most cases, international procurement is a cheaper option than local procurement, since
national taxes as well as profit margins of local distributors can be avoided. Only locally‐
manufactured items may be cheaper than imported, but locally‐manufactured pharmaceuticals
are not approved for procurement with 3DF grants. In cases where a budget has been
calculated based on local prices or where the initial budget appears to be insufficient to comply
with the Fund’s procurement policies, a new estimate can be submitted with adjusted prices for
those items for which international procurement increases the costs of the items. The Fund
Manager will then take this into consideration, although it cannot make any commitment for
the allocation of additional funds.
4.3 VERY SMALL QUANTITIES
International procurement of very small quantities is not possible, since international suppliers
need a minimum order value to make the supply financially interesting. The Fund Manager will
try to provide necessary support for partners who want to process small orders that they would
otherwise not be able to obtain from the international market. This requires that partners
synchronize orders in time and frequency. The Fund Manager will request these partners to
submit their requirements and will provide them with a timeline for delivery.
As a short‐term solution, partners with very small orders should try and obtain stock from other
3DF partners. When this is not possible, they may contact the Fund Manager for assistance.
4.4 AD HOC REQUIREMENTS
Partners are required to use their sound judgment when it comes to ad hoc requirements; it is
not possible to provide written guidelines that cover all possible eventualities.
4.5 PARTNERS OWN PROCUREMENT GUIDELINES VERSUS 3DF SOP
The SOP describes standard procedures to be followed by the Fund Manager when procuring on
behalf of partners. For those partners undertaking their own procurement, they should follow
their organization’s internal guidelines where available. These guidelines should have been
issued by the headquarters from the organization, furthermore they should be documented and
well established within the organization. In case there are no documented guidelines issued by
the headquarters regarding procurement procedures, 3DF guidelines shall prevail.
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4.6 EXCEPTIONS FOR LOCAL PROCUREMENT
All pharmaceuticals are to be procured internationally, but some health commodities have been
approved for local procurement (see Section 5.2, Phase 2, Step 2: Check if items can be sourced
locally or only internationally). It may not be possible to generate a comprehensive list of items
that can and cannot be procured locally. 1 In situations where partners wish to consider local
procurement for specific items, the Fund Manager should be consulted in order to add these
items to a list of exceptions.
Local procurement is to be carried out by partners themselves. In cases where international
procurement is carried out by the Fund Manager on behalf of a partner, the partner is to ensure
that those funds required for local purchases are not incorporated in the international budget
line, since the funds in this budget line are not disbursed to the partner but remain with the
Fund Manager.
4.7 PROCUREMENT IN THE FINAL YEAR OF A MEMORANDUM OF AGREEMENT.
Procurement requisitions need to be submitted at least 12 months prior to the end of the
partner’s Memorandum of Agreement with the 3DF. Since procurement actions require
approximately four to six months from start to full delivery, it is too late to initiate a
procurement action within six months of the contract end since the supplies would be delivered
too close to the end of contract. In exceptional circumstances, exemptions may be made with
approval from the Fund Manager.
4.8 IMPORTATION ASSISTANCE
Partners carrying out their own procurement can still receive support from the Fund Manager
for importation of the procured commodities. The Fund Manager does not require an import
licence for clearing health commodities through customs. For each and every consignment to be
cleared by the Fund Manager, a separate contract will have to be established (see SAMPLE –
Import Assistance Agreement). For details on the procedure if clearance is undertaken by the
Fund Manager, partners are referred to SOP Clearance and Reception of International
Consignments (below).
4.9 GUIDELINES ON THE SELECTION OF MALARIA RAPID DIAGNOSTIC TESTS
There are many different Rapid Diagnostic Tests (RDTs) available in the market. To assist
partners in the selection of the most appropriate and qualified RDT, the Fund Manager has
developed a guideline based on publications from WHO of test results on the performance of
the different RDTs. Partners are r3eferred to SOP – 3DF guideline on the selection of Malaria
RFTs (below).
SOP ‐ 3DF guideline on the selection of Malaria RDTs
SOP ‐ Clearance and Reception of International Consignments
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For example: laboratory reagents are in general to be purchased internationally, however
some reagents are very stable and of low cost, and therefore may be procured locally.
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5. PROCUREMENT PROCESS
5.1 PROCUREMENT CAPACITY ASSESSMENT
The capability of each partner to undertake direct procurement of pharmaceutical and medical
commodities will be assessed. When a partner is considered to have this capability, the Fund
Manager will allow direct procurement. In such case, the Fund Manager is still available to
provide assistance on request on the following matters:
• QUOTATIONS: The Fund Manager can request international suppliers for quotations of
pharmaceutical and medical commodities.
• CUSTOMS CLEARANCE: With the exception of narcotic and psychotropic pharmaceuticals
the Fund Manager does not need import licences for customs clearance of
pharmaceutical and medical commodities and therefore can assist in this matter. In
cases where a partner would like to procure narcotic or psychotropic pharmaceuticals on
the international market, it is the partner’s responsibility to obtain two original import
licences and present these prior to an order being placed with a supplier.
• TAX EXEMPTION: Tax exemption for pharmaceutical and medical commodities can be
obtained with the assistance of the Fund Manager, but only if the Fund Manager is the
consignee of the shipment concerned.
A partner can initiate a procurement assessment by contacting the Fund Manager (Procurement
Unit). In such case, the form Questionnaire Supply Assessment should be completed prior to
requesting the assessment.
When partners have been evaluated as capable to procure pharmaceutical and medical
commodities directly, the Fund Manager will monitor the quality of the procurement process.
This includes competitive bidding, quality assurance, distribution and storage.
If the assessment indicates that the partner does not have sufficient capacity to carry out their
own international procurement, the Fund Manager will undertake the procurement. In this case
the partner is requested to sign an International Procurement Assistance Agreement (IPAA). This
agreement is an addendum to the original Memorandum of Agreement. It clarifies under which
conditions the Fund Manager will undertake the procurement and describes issues such as
liability and the responsibilities for both parties.
SAMPLE ‐ International Procurement Assistance Agreement (IPAA)
FORM ‐ Questionnaire Supply Assessment
FORM – Planning Check List
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5.2 PROCUREMENT DONE BY THE FUND MANAGER OR PARTNERS
Phase 1: ASSESS REQUIREMENTS
Any procurement action will start by defining the requirements; in most cases this is done by
the partner. Should the partner need assistance, the Fund Manager can either provide technical
support or refer the partner to others who have the technical knowledge to assist.
Partners may submit requisitions at any time, but to prevent inefficient operations some
limitations are necessary:
• Only one requisition can be submitted every nine months, to avoid multiple small orders
which could otherwise be combined into one larger purchase order;
• Orders have to be submitted at least 12 months prior to the end of a Memorandum of
Agreement, to prevent stock arriving towards the end of contracts.
This phase has three steps:
Step 1 : Reviewing and revising the requirements
Step 2 : Ensuring the availability of funds
Step 3 : Finalising the requirements with the partner
Step 1 : REVIEWING AND REVISING THE REQUIREMENTS
To ensure economies of scale, the Fund Manager will try to synchronise orders for several
partners. This might require adjustments in time and frequency of orders from 3DF partners,
especially for those requiring small quantities.
The Fund Manager will request all partners to submit their requirements at least four but
preferably five to six months prior to delivery. This period of time is necessary to review the
requirements, to request quotations, or if the quantities require, to float a tender and to allow
for the supplier’s delivery lead time. The requirements should be submitted using the 3DF
Standard Drugs Order List form.
As a minimum, a requisition should include the following information:
• A detailed description of the goods sought
• Confirmation of availability of funds
• Quantity to be procured
• Required delivery date
• Delivery location
• Estimated price
• Any additional information (for example standardisation, preferred method of shipment,
etc.).
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The Fund Manager will provide the Standard Drugs Order List form, which lists all
pharmaceuticals approved for procurement with 3DF grants and gives indicative prices
excluding freight charges. Freight charges should be added separately, and in case of air freight,
as a rule of thumb 20% of the value of the commodities to be ordered should suffice. The
Standard Drugs Order List is prepared from the National Treatment Protocols from the Ministry
of Health and partners are restricted to pharmaceuticals included in this list. If a partner would
like to order pharmaceuticals not included in the Standard Drugs Order List, a request including
a justification should be submitted to the 3DF Program Unit. The Program Unit will then
determine whether or not approval for procurement can be given.
The Standard Drugs Order List can be used to order directly from the 3DF, or function as a
reference for those partners undertaking their own procurement. The list allows users to filter
so that only those pharmaceuticals related to specific activities agreed upon in the
Memorandum of Agreement between the partner and 3DF are visible. Selection of
pharmaceuticals is restricted to only those directly related to the partner’s activities as agreed
in the Memorandum of Agreement with the 3DF.
If the procurement is to be done by the 3DF, the partner should complete all fields and enter
the requested quantities for the different commodities in the list. After completion of the
requirements, the original file should be submitted to the Fund Manager in electronic copy.
Setting the requirements should be done with the utmost care, as errors in this part of the
process may delay the delivery, or result in discrepancies between the original requirements
and the delivery. It is important to include an estimation of the total costs, since this will
determine the method of solicitation.

IMPORTANT: Requirements should include only generic names and no
specific brand names or other unnecessary restrictions should
be requested, unless this cannot be avoided.

FORM ‐ Standard Drugs Order List (Excel 2003)

UNOPS ‐ Procurement Manual chapter 2.5 Requirements definition (only accessible by
UNOPS Staff)
UNOPS ‐ Guideline ‐ Preparation of specifications
Step 2 : ENSURING THE AVAILABILITY OF FUNDS
When a partner enters into a Memorandum of Agreement (MoA) with the 3DF, they can
request that procurement of medical commodities be done by the Fund Manager. Where
procurement is to be undertaken by the Fund Manager the disbursement schedule should
reflect this. Funds budgeted for procurement, although part of partner’s budget, should not be
included in the disbursement schedule, but shall remain with the Fund Manager to be used for
the payment of the procured commodities. The value of the total procurement can never
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exceed the funds remaining with the Fund Manager. In exceptional cases the budget can be
amended if more funds are needed than initially reserved by the partner for procurement. No
procurement actions can be undertaken unless the disbursement schedule in the Memorandum
of Agreement shows that the amount reserved for procurement by the Fund Manager will not
be disbursed to the partner. Any funds remaining after the procurement has been completed
will remain with the Fund Manager unless additional procurement actions are undertaken to
utilise these remaining funds.
Prior to the procurement action, the partner will be asked to confirm that resources are
sufficient for the procurement. The amount shall be indicated in the Standard Drugs Order List
form sent to the Procurement Unit in the Fund Management Office. The Fund Manager will
verify that the funds are still available under the established Memorandum of Agreement.
Step 3 : FINALIZING THE REQUIREMENTS WITH THE PARTNER
The requisition will be evaluated by the Fund Manager and checked against the following:
• Correct specified needs, without over‐specification or under‐specification
• Realistic delivery dates
• Descriptions of commodities are sufficiently specified
• In case of pharmaceuticals, adherence to the national (treatment) guidelines
• The presence of brand names
• The presence of restricted pharmaceuticals such as narcotic or psychotropic drugs, as
these require import licences and can delay deliveries.
The (revised) Standard Drugs Order List will be returned to the partner for final confirmation of
the requirements.
Phase 2: SOURCING, QUOTATIONS, VALID LONG TERM AGREEMENTS (LTAS)
A decision needs to be taken on whether the required items can be sourced locally or only
internationally. Local purchases can then be carried out by partners themselves, using proper
procurement procedures. For local purchase, the method of solicitation can be decided
depending upon the value of the purchase. In cases where the Fund Manager will take care of
the procurement, the order will be placed by the Fund Management Office in Yangon. The
following steps should be followed:
Step 1 : Final verification that the commodities are approved for procurement for the specific
activity which is agreed upon in the Memorandum of Agreement
Step 2 : Check if items can be sourced locally or only internationally
Step 3 : Check whether a relevant Long Term Agreement (LTA) exists
Step 4 : Select the solicitation method based on the nature and value of the goods to be
purchased
Step 5 : Prepare a Request for Quotation (RFQ)
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Step 1 : CHECK IF THE ITEMS ARE APPROVED FOR PROCUREMENT WITH THREE DISEASES FUND GRANTS
In order to harmonize the procurement of drugs funded by the 3DF, the Standard Drugs Order
List has been prepared of pharmaceuticals included in the respective national guidelines for:
• ART treatment
• Clinical management of HIV infection
• Home Based Care for AIDS patients
• Treatment of sexually transmitted infections
• Treatment for malaria
• Treatment for tuberculosis
The guidelines to be used for the selection of pharmaceuticals are:
• The latest version of the national treatment guidelines approved by the Government of
Myanmar for the specific disease, or;
• If no national treatment guidelines are available, refer to the latest version of the global
WHO guidelines.
All the pharmaceuticals mentioned in the national treatment guidelines have been included in
the Standard Drugs Order List by disease category. The Standard Drugs Order List shall be used
as the requisition list for procurement of pharmaceuticals to be approved by the Fund Manager
and based on the scope of work agreed between Fund Manager and the respective partner.

The Fund Manager will not approve the use of 3DF grants for the purchase of any
pharmaceutical not included in the Standard Drugs Order List, regardless of whether the
procurement is done directly by the partners or through the Fund Management Office, unless
specific approval is granted by the Program Unit after justification from the partner for a specific
pharmaceutical.
Step 2 : CHECK IF ITEMS CAN BE SOURCED LOCALLY OR ONLY INTERNATIONALLY
Depending on the nature of the commodities, local procurement may be possible or even
preferred in the case of non‐medical commodities and non‐life‐saving equipment. 2
Pharmaceuticals should always be procured internationally to ensure that qualified drugs are
purchased.
In order to ensure procurement of qualified pharmaceuticals the following regulations should
always be respected:
2
Local procurement of equipment can sometimes be preferable to international procurement in cases where there are
locally available support services.
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(a) The pharmaceuticals should be produced in a WHO pre‐qualified manufacturing site, or;
(b) The pharmaceuticals should be products registered in countries with Stringent Regulatory
Authorities as defined by the Global Fund to Fight Aids, Tuberculosis and Malaria (GFATM),
or;
(c) The pharmaceuticals should be produced by companies that meet the requirements laid
down by WHO in the Good Manufacturing Practices (GMP); this should either be verified or
certificated.
For specifics see Regulatory Authorities. The table below shows items that should always be
procured internationally and those that can be procured locally.
Always international procurement Local procurement allowed
Pharmaceuticals (all medicines) Non‐medical commodities (IT equipment, office supplies, etc.)
Medical test kits (malaria test kits, HIV test Non‐sterile medical materials (bandages, cotton wool,
kits, etc.) thermometers, sphygmomanometers, etc.)
Sterile medical materials (syringes and
Non‐life‐saving medical equipment (examination lights, tables etc.)
needles, infusion sets, etc.)
Laboratory reagents Laboratory equipment (microscope, spectrophotometers, etc.)
In exceptional cases, local procurement of the items in the left column of the above table may
be acceptable after approval from the Fund Manager. In such cases, the following rules apply at
all times:
(a) The pharmaceutical item in question must:
1) be produced in a WHO pre‐qualified manufacturing site, or
2) be registered in a country with “stringent regulatory authorities”, or
3) have WHO‐GMP certification or verification;
(b) Supplies should be fresh, no procurement from in‐country stocks is permitted;
(c) The manufacturer should provide all required certificates with the specific lot numbers of
the batch(es) including expiry dates to allow verification that the specific batches have
indeed been supplied by the manufacturer. This information should be requested by the
partner directly from the manufacturer; the reseller should not be involved in this part of
the procurement process. The manufacturer should send the documents directly to the
partner, again not involving the reseller.
The steps listed above ensure that the purchased drugs are indeed supplied by the correct
manufacturer. If international procurement is done by the Fund Manager on behalf of a partner,
the requirements will be processed by the Fund Management Office.
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For some specific medical commodities, for example methanol, local procurement is approved
without the need to contact the Fund Manager. These items are identified in the Standard
Drugs Order List by a tick mark in the local procurement column.
In a few cases, for example 3ml syringes packed with needles, local suppliers have been pre‐
qualified to ensure their products meet international quality standards.
For the reasons above, it is essential that partners contact the Fund Manager if they wish to do
local purchase of items that are not indicated as already approved for local purchase.
Step 3 : CHECK WHETHER A RELEVANT LTA EXISTS
This step especially applies when the Fund Manager is undertaking the procurement process on
behalf of a partner. A Long Term Agreement (LTA) is an agreement entered into with one or
more suppliers to provide goods or services at a given price over a predefined period of time.
LTAs shorten the procurement process because they avoid the Invitations for Bidding step, even
if the total amount is higher then US$ 50,000.
A Request for Quotation is prepared by the Fund Management Office in Yangon on the basis of
the finalised requirements from the partner. Typically the response time allowed to a supplier is
set to ten days when requesting a quotation under an LTA.
UNOPS ‐ Guideline LTAs
UNOPS ‐ List of UNOPS LTAs (only accessible by UNOPS Staff)
Step 4 : SELECT THE SOLICITATION METHOD BASED ON THE NATURE AND VALUE OF THE GOODS TO BE
PURCHASED
The solicitation method will be decided based on the value of the goods to be purchased. See
the table below for the different methods of solicitation related to the value.

Value of the goods Method of solicitation

US$ 0 – US$ 2,499 Competitive Shopping
US$ 2,500 – US$ 49,999 Request for Quotation
US$ 50,000 or above Invitation to Bid

COMPETITIVE SHOPPING (Requirements below US$ 2,500)
Shopping is not a formal method of solicitation. It is a method based on the comparison of
prices obtained from potential suppliers, received orally or in writing. Prices received orally
must be written down carefully, dated and kept in the file. A written note justifying the
selection of suppliers as well as the price should be included in the file. It is an appropriate
method for the procurement of readily available off‐the‐shelf goods or standard specification
commodities valued at less than US$ 2,500, or simple works or services valued at less than US$
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2,500. Contracts are awarded to the supplier offering the best value for money, based on
service, quality and pricing considerations.
REQUEST FOR QUOTATION (Requirements below US$ 50,000)
A Request for Quotation (RFQ) is not a formal method of solicitation. It is a solicitation process
used for low value procurement where the requirement is clear and specific.
Additional suppliers can be added at any stage in the solicitation process. At least three firms
must be invited to quote (unless valid reasons exist for inviting a lesser number of firms) and a
deadline for receiving quotations must be specified. However, the Procurement Authority 3 may
at his/her discretion accept quotations received after the deadline. Reasons for discretion must
be recorded. In the event that fewer than three companies are invited, valid reasons must be
provided in writing and kept in the procurement file. Offers must be received in writing (email,
fax, etc.). There is no need for a formal bid opening or for suppliers to send their offer to a
dedicated fax/email or in a sealed envelope. Procurement personnel may receive the offers
directly; however, a separation of duties is highly desirable if resources permit.
Contracts are awarded according to the ‘lowest priced, most technically acceptable offer’
evaluation methodology.
INVITATION TO BID (Requirements equal or above US$ 50,000)
An Invitation to Bid (ITB) is a formal method of solicitation. It is used for procurement of goods,
services or works with standard and firm specifications that can be expressed qualitatively and
quantitatively. An ITB is only required for procurement above US$ 50,000 but can also be used
for low value procurement (below US$ 50,000) if requirements are complex.
All ITBs require an absolute receipt deadline and offers can only be received by personnel not
involved in the procurement process. ITBs can be based on either the one‐envelope (for the
majority of the cases) or the two‐envelope system. A one‐envelope ITB defines minimum
requirements or a range of acceptable requirements. Evaluation is done by verifying that an
offer is compliant in all aspects. Contracts are awarded on the basis of the ‘lowest priced
substantially compliant offer’ evaluation methodology, including delivery terms, and any other
requirements stated in the ITB. When a two‐envelope ITB is used, suppliers are requested to
submit their technical and financial offers separately in two sealed envelopes. The financial
proposals are then to be opened in a separate bid opening session after the completion of the
technical evaluation. The financial proposals should preferably be opened by the same
committee that opened the technical bid. Once the financial proposals are opened, the financial
opening committee must prepare the financial bid opening report.
The purpose of the two‐envelope system is to ensure that the technical evaluation can be
undertaken focusing solely on the contents of the technical proposal without bias from the
financial aspects of the proposals. The two‐envelope system is most often used if compliance is
determined according to a points system. In order to ensure fairness and transparency, it is
3
Person authorized by the organization to make commitments on behalf of the organization
15
extremely important that all criteria to be considered in the evaluation are clearly defined in the
solicitation documents.
UNOPS ‐ Procurement Manual chapter 4.1 Selection of solicitation method (only
accessible by UNOPS Staff)
UNOPS ‐ Guideline vendor sourcing
Step 5 : PREPARING THE REQUEST FOR QUOTATION
The Request for Quotation is prepared by the Fund Management Office in Yangon using the
finalised requirements from the partner. Typically the response time given to a supplier when
requesting a quotation under an LTA is set to ten days. After the Request for Quotation has
been prepared it is submitted to the appropriate Procurement Authority for review, approval
and signature.
UNOPS ‐ Request for Quotation template
UNOPS ‐ Procurement Manual chapter 5.1 Preparation of solicitation documents (only
Phase 3: SOLICIT OFFERS
This phase in the procurement process applies to all procurement actions regardless of the
chosen method of solicitation. It serves the purpose of communicating to potential suppliers the
requirements for the goods. This phase in the procurement process consists of the following
steps:
Step 1 : Requesting quotations from suppliers
Step 2 : Placing call‐off order requests against single or multiple LTAs
Step 3 : Requesting price and quality information from suppliers
Step 4 : Responding to supplier requests for clarification
Step 1 : REQUESTING QUOTATIONS FROM SUPPLIERS
This step is performed by the buyer when offers are solicited through a regular Request for
Quotation (RFQ). At least three written quotations are needed from potential suppliers. The
3DF’s requirements/specifications with regards to pharmaceuticals shall be clearly stipulated in
the Requests for Quotations to ensure that qualified pharmaceuticals are being sourced. By
incorporating the specifications as stipulated in Phase 2, Step 2: “if items can be sourced locally
or only internationally”, suppliers are limited to quote only those pharmaceuticals which comply
with the 3DF’s regulations.
One possible supplier is UNICEF, as it has several LTAs in place for pharmaceuticals. When
UNICEF is supplying the commodities, there is no need to have three quotations because the
LTAs have been established on a competitive basis. Before NGOs can order with UNICEF they
have to enter into a Memorandum of Understanding with UNICEF. Be advised that advance
payment is mandatory for orders placed with UNICEF.
UNICEF ‐ Forms and Information
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UNICEF ‐ Supply Services
UNGM Database ‐ Corporate roster of suppliers
Step 2 : PLACING CALL‐OFF ORDER REQUESTS AGAINST SINGLE OR MULTIPLE LTAS
When the Fund Manager undertakes procurement, LTAs will most likely be used; either those
between UNOPS and suppliers, or LTAs from other UN agencies. If there is more than one LTA
that covers the requirements, the prices of the different LTAs will be compared prior to placing
a call‐off order with the supplier offering the lowest overall price.
FORM ‐ Request for Quotation template
UNOPS ‐ General Conditions for Contracts for Goods
UNOPS ‐ Guideline on INCOTERMS
Step 3 : REQUESTING PRICE AND QUALITY INFORMATION FROM SUPPLIERS
When soliciting offers through competitive shopping, partners may contact the suppliers in
writing or orally to request price and quality information. However, in most cases the price and
quality information of the product is available by consulting product catalogues and/or price
lists. When the information is received verbally from a supplier, the buyer should make a note
and archive it in the procurement file. Shopping is a non‐formal process of comparing prices
from potential suppliers. Shopping shall only be used for purchases valued less than US$ 2,500
and for the following type of products:
• Readily available off‐the‐shelf goods
• Commodities with standard specifications
• Simple works or services
Examples of above‐mentioned products could be travel tickets, office equipment and supplies,
computers, small consultancy services (where you contract a company), small office works (for
example installation of furniture/storage shelves, and repair works (water/electricity)). In order
to ensure competitiveness of prices, a minimum of three national suppliers should be identified.
UNOPS ‐ Procurement Manual chapter 4.1.1 Shopping (only accessible by UNOPS Staff)
UNOPS ‐ Shopping Guideline
Step 4 : RESPONDING TO SUPPLIER CLARIFICATIONS
During the tender period, after having requested quotations and prior to the deadline for
submission of quotations, suppliers may request clarifications on the quotation documents.
When suppliers request clarifications, the buyer must respond to the queries by following the
instructions in the UNOPS Procurement Manual chapter 5.3 on how queries from suppliers
should be handled.
UNOPS ‐ Procurement Manual chapter 5.3 Tender period (only accessible by UNOPS
Staff)
17
Phase 4: EVALUATE OFFERS
This phase in the procurement process applies to all procurement actions regardless of the
chosen method of solicitation. It serves the purpose of comparing all offers in accordance with
the evaluation criteria and evaluation methodology specified in the solicitation documents.
However, the process is more formal when it comes to the evaluation of offers solicited through
an Invitation to Bid (ITB) or a Request for Proposal (RFP) than for offers solicited through
shopping, a Request for Quotation (RFQ) or a call‐off order request against LTAs. This phase in
the procurement process is composed of the following steps:
Step 1 : Comparing quotations
Step 2 : Performing a price/quality check when shopping
Step 3 : Total order value does not exceed US$ 50,000
Step 1 : COMPARING QUOTATIONS
When evaluating offers solicited through an RFQ or a call‐off order request against multiple
LTAs, the following actions must be undertaken:
• Compare the quotations
• Choose the lowest priced, most technically acceptable offer as the winning offer
• Make a note (Request for Award) to the procurement file containing the following
information:
The name and country of origin of every supplier from whom you requested a
quotation;
For each supplier register if a quotation was received;
A justification for choosing the winning offer.
Present the note to the appropriate Procurement Authority at the time of signature of the
Purchase Order.
In the case of a call‐off order request against a single LTA, the buyer should check that the offer
is in line with the requirements and that the quotation is in line with the prices specified in the
signed LTA.
FORM ‐ Request for award up to US$ 50,000
UNOPS ‐ Procurement Manual chapter 6.4.10 Identification of the winning offer (only
Step 2 : PERFORMING A PRICE/QUALITY CHECK WHEN SHOPPING
No evaluation methodology is required when shopping. The buyer should select the lowest
priced supplier that satisfies the minimum required level of quality of the goods or services you
wish to buy. It is good practice to justify a choice of supplier by making a note and archiving it in
the procurement file for future reference.
FORM – Note for the file
18
FORM ‐ Price comparison template
UNOPS ‐ shopping guideline
Step 3 : TOTAL ORDER VALUE DOES NOT EXCEED US$ 50,000?
If the total order value for an order or series of orders to the same supplier exceeds US$ 50,000,
official approval from UNOPS Local Contracts & Property Committee (LCPC) needs to be
obtained prior to placing an order. This process will require an additional two weeks, assuming
no objections are raised by LCPC on the submission.
Phase 5: ISSUING A PURCHASE ORDER
In case a local purchase is executed, this is the moment where the partner issues the Purchase
Order to the supplier, or the Fund Manager generates a Purchase Order in Atlas 4 . Steps 1 and 3
are only applicable in those cases where the Fund Manager is ordering on behalf of partners.
The Fund Manager will share the quotations with the partner, including a recommendation,
prior to placing the final order.
Step 1 : The Fund Manager sends an Acknowledgement Form
Step 2 : A Purchase Order is generated
Step 3 : Updating of the Financial Utilization Report
Step 1 : THE FUND MANAGER SENDS AN ACKNOWLEDGEMENT FORM
The Fund Manager sends the partner an Acknowledgement Form. This form lists all or part of
the items from the original requisition. If not all supplies were available from one supplier, two
or more purchase orders shall be placed and an Acknowledgement Form is generated for each
purchase order and provided to the partner. By signing the Acknowledgement Form the partner
agrees to use their procurement budget to purchase the items for the prices as listed on the
Acknowledgement Form. Therefore the Acknowledgement Form should be signed by the
partner’s authorized person. After receipt of the original signed Acknowledgement Form, the
Fund Manager will place the order with the supplier.
Step 2 : A PURCHASE ORDER IS GENERATED
After receipt of the original signed Acknowledgement Form, the Fund Manager will place the
order with the supplier. If the purchase order is placed with UNICEF advance payment is
required and only after receipt of the transferred funds will UNICEF acknowledge the purchase
order.
Step 3 : UPDATING THE FINANCIAL UTILIZATION REPORT
As soon as the purchase order has been placed, the partner is sent a Financial Utilization Report
indicating the funds that have been obligated on behalf of the partner. The Financial Utilization
Report provides the partner with information on the amount of available funds for procurement
and should be used for reporting the funds spend on procurement of health commodities. Each
time a payment is carried out the Financial Utilization Report is updated and sent to the partner.
4
Atlas is the financial and procurement Management Information System used by UNOPS.
19
GUIDELINE ‐ Financial Utilization Report
Phase 6: CUSTOMS CLEARANCE AND TAX EXEMPTION
The Fund Manager does not require import licences and therefore can provide assistance in
importing health commodities procured with 3DF grants for partners. There are a number of
prerequisites for the 3DF to provide this assistance:
• All of the health commodities to be imported should have been procured with 3DF
grants. The partner is expected to confirm in writing that all commodities have been
procured with 3DF funds;
• The partner has to submit a list of the items to be imported;
• No narcotics or psychotropic pharmaceuticals can be included in the shipment, unless
the partner can provide an import licence for these specific items;
• The shipment should be consigned to the 3DF Procurement Unit.
IMPORTANT: To ensure that the Fund Manager can provide the necessary assistance, it is
essential that the Fund Manager be assigned as consignee in those cases
where the partner is undertaking the procurement. If this is not done, the
Fund Manager will not be able to assist in clearing the shipment without
import licence, or to assist the partner in obtaining tax exemption.
The correct consignee address is:
Peter BOLLEN
Procurement Officer
UNOPS - Three Diseases Fund
137/1, Than Lwin Road, Kamayut Township
Yangon, Myanmar
Tel: +95-1-534498 (ext. 304),
Tel/fax: +95-1-504832
Mobile: +95-9-5180659

It should be made clear that the above pre‐requisites are mandatory and no exceptions will be
made.
A number of steps in the following procedures only apply when the shipment is related to a
purchase order placed by the Fund Manager, for example the Reception Inspection Report.
Where this is the case, it has been indicated in the text.
The Fund Manager will keep the partner informed about delivery schedules and any changes
will be reported as soon as possible. The partner will be responsible for clearance of the
consignment upon arrival in the harbour or airport. The Fund Manager will request tax
exemption, for which the Fund Manager will generate the necessary documents and submit to
the Ministry of Health.
After receiving the original shipping documents three actions are to be taken:
20
Step 1 : Reception of the shipping documents
Step 2 : Initiate payment to the supplier (only for Fund Manager purchase orders)
Step 3 : Request for tax exemption and clearance of the shipment
Step 1 : RECEPTION OF THE SHIPPING DOCUMENTS.
Especially with sea freight, the shipping documents normally should arrive well in advance of
the consignment and the tax exemption request and payment can be carried out without delay.
In case of air freight, normally the documents and freight arrive about the same time. In this
case, first the tax exemption is requested and a decision needs to be made on whether or not a
Special Order (SO) is issued. A Special Order allows clearance of the consignment pending tax
exemption approval. With the Special Order the consignment can be cleared immediately. If no
Special Order is used the consignment can only be cleared after the tax exemption approval has
been received. The process for tax exemption normally requires around three to four weeks and
during that time the consignment will remain with the customs department. The Government of
Myanmar allows a maximum of ten Special Orders to be open simultaneously. The first priority
where Special Orders are to be used is for cold chain shipment, since the cold chain facilities in
the airport are very limited. Immediate clearance of cold chain shipments is therefore
imperative to avoid heat exposure to the commodities. The Fund Manager has decided to
reserve five Special Orders for such eventualities and the remaining five Special Orders can be
used for normal shipments. Hence the Fund Manager cannot guarantee the availability of
Special Orders for each and every consignment.
Suppliers are required to provide pre‐notification of consignments that are to arrive in Yangon
sea/airport. The first thing to be checked is whether the consignment contains any cold chain
items (see below).
COLD CHAIN SHIPMENTS
3DF will check for the presence of any cold chain items in the consignment. If so, the partner
will be informed of the presence of cold chain items in the consignment and it is essential that
either one of the following options is carried out:
1. If sufficient time is available, complete the Special Order procedure and clear the goods
immediately upon arrival (a minimum of five working days are needed to process a Special
Order and be able to clear on arrival).
2. Arrange for storage in the so‐called cold chain facilities at the airport immediately after
arrival of the goods pending their clearance. The customs department requires a minimum
of two days advance notice to ensure that commodities are stored in the cold room. This
option should be avoided if possible, since the cold room in Yangon airport is actually a
container provided with two air conditioners and can not be classified as cold chain. If the
items to be stored are “sensitive cool items” and require storage between 2 – 8° Celsius,
the cold room is not an option; the items will have to be cleared upon arrival and moved
to proper cold chain facilities.
If option two is selected, a clearing agent should ensure that customs staff have indeed moved
the goods to the “cold room”. Arrival of consignments containing cool items should be avoided
during national holidays and weekends since clearing and/or moving to the cold storage is
difficult because of absence of customs staff. Whenever possible, immediately contact the
supplier to postpone the arrival until the first working day.
21
ON RECEIVING THE SHIPPING DOCUMENTS FROM THE SUPPLIER
When the Fund Manager is the consignee, all original shipping‐documents will arrive in the Fund
Management Office in Yangon. The partner shall be informed as soon as possible about the
pending arrival of a consignment. To allow the partner to select a clearing agent, copies of the
airway bill (or original bill of lading in case of sea freight), invoice(s) and packing list(s) will be
sent immediately for the attention of the partner.
Selection of clearing agents shall be done on a competitive basis, unless the organization in
question has a Long Term Agreement in place that was established based on a competitive
process. If no such LTA is in place, the partner should request a minimum of three clearing
agents to provide a quotation for the clearance and delivery of the consignment. The Fund
Manager can supply a list with recommended clearing agents if requested. If a clearing agent is
provided with the waybill and the final in‐country destination of the goods, they can usually
provide a quotation within a day.
The Fund Manager does not require an import license for medical consignments. As soon as the
partner has indicated which clearing agent is to be used, the Fund Manager will provide the
necessary documents to the agent to clear the consignment.
COMBINED CONSIGNMENTS FOR MORE THAN ONE PARTNER
In case of combined shipments, where commodities for more than one partner have been
shipped in a single consignment, the Fund Manager will carry out the selection of the clearing
agent. The Fund Manager will request each partner with commodities in the consignment to
indicate their preferred delivery point and subsequently ask clearing agents to provide quotes
with the costs for each partner separately indicated. Upon confirmation from the partner that
the costs are acceptable, the clearing agent will be provided with the necessary documents to
carry out the clearance. After delivery to the partners, the clearing agent will invoice each of the
partners individually for their part of the clearing charges.
Step 2 : INITIATE PAYMENT OF THE SUPPLIER
(Only for Fund Manager purchase orders).
The payment terms of UNOPS stipulate that payments are to be done within 30 days after
reception of the original shipping documents. The Fund Manager’s office will check the waybill,
packing list(s) and invoice(s) for completeness and correctness. If the documents have been
found correct, payment to the supplier will be initiated by the Fund Manager. As soon as
confirmation has been received that the funds were transferred, the Financial Utilization Report
is updated and sent to the partner for their records.
The following documents are to be provided to the Finance Unit to carry out a payment request:
• Original invoice from the supplier
• Original signed Purchase Order (if a partial order, the original Purchase Order is only
provided with the final delivery, otherwise a copy is provided)
• Original packing list from the supplier
• Copy of the airway bill or bill of lading
• Copy of the quotation used for the order
22
• Copy of the quotations used for the evaluation
• Original signed award
• Original evaluation
• Original Notes for the Record related to the procurement action
• Copies of Long Term Agreements, if applicable to the procurement action
• Copy of reception number in Atlas
• Completed and signed Payment Request
• Signed payment document as proof that above documents have been handed over.

If all commodities have been delivered, the final payment request should clearly indicate that
the purchase order can be closed after completion of this final payment.
Step 3 : REQUESTING TAX EXEMPTION AND CLEARANCE OF THE SHIPMENT.
After the partner has indicated (in writing or by email) which clearing agent they have selected
for the clearance, the Fund Management Office generates the necessary documents for the
clearance and tax exemption:
• AUTHORIZATION LETTER FOR CLEARANCE. Since UNOPS is the consignee, anyone charged with
clearing the goods requires a letter whereby UNOPS authorizes this party to clear on
behalf of UNOPS. This document is handed over to the clearing agent and the clearing
agent is required to sign for receipt of this authorization letter.
• SPECIAL ORDER REQUEST. This document is generated by the Fund Manager and handed
over to the clearing agent. With this letter the clearing agent will be able to clear goods
pending tax exemption approval.
• TAX EXEMPTION REQUEST LETTER. All commodities procured with 3DF grants are exempted
from tax and it is the partner’s responsibility to ensure this is implemented. Where the
Fund Manager is the consignee, the Fund Manager will process the tax exemption
documents.
• RECEPTION INSPECTION REPORT FORM (RIR). (Only for Fund Manager purchase orders). This
form is to be used by the partner to indicate to the Fund Manager if all goods as
indicated in the freight documents have indeed arrived. The form includes instructions
on how to complete it correctly. Copies of all packing lists should be attached to the RIR
and signed by the partner. This form should be sent back to the Fund Management
Office within two weeks after arrival of the goods, to allow for payment to the supplier.
With the authorization letter (and the Special Order) the clearing agent will clear the goods
from the (air)port and deliver these to the destination(s) as indicated by the partner. The
approval for tax exemption will be received by the Fund Management Office and forwarded to
the clearing agent responsible for clearing the consignment to finalize the clearing process. The
clearing agent is required to sign for receipt of the tax exemption approval. The Import
Declaration mentions the approved tax exemption for the specific consignment. The original
Import Declaration should then be sent to the Fund Management Office, thus providing proof
that the case has been finalized.
23
When using a Special Order, the partner agrees to the following fines if the tax exemption
cannot be completed within the mentioned time limits:
1. 0.06% of the various duties and taxes if not finalized within 31 to 90 days, for those goods
which are free of duties and taxes,
2. 0.08% for those exceeding 91 to 180 days, and
3. 0.10% for those exceeding 181 to 360 days.
IMPORTANT:
1. Even though the Fund Manager submits the request for tax exemption, in case of fines
resulting from delays in the approval of the tax exemption and subsequently delays in
the finalizing of the clearance process, partners will be responsible for the payment of
the fines.
2. It is essential to finalize the clearing process after reception of the tax exemption
documents. If this is not done it may jeopardize future clearance by UNOPS of any
cargo with the customs department.

FORM ‐ Tax Exemption Request
FORM ‐ Authorization Letter Clearing Agent
FORM ‐ Special Order Request
Phase 7: RECEPTION OF THE CONSIGNMENT
The final phase consists of three steps, depending on the nature of the consignment:
Step 1 : Checking the consignment
Step 2 : Informing the Fund Manager about the reception
Step 3 : Add assets to the asset inventory
Step 1 : CHECKING THE CONSIGNMENT
The partner and/or clearing agent are responsible for checking the consignment for damages
that might have occurred during transportation. Those orders placed through the Fund Manager
have been insured by either UNOPS or the supplier against damages during transportation.
IMPORTANT
In case of damages or missing crates, firstly the partner should refuse to accept the
consignment from the clearing agent and secondly should inform the Fund Manager
immediately. The Fund Manager will then decide how to proceed; whether to accept the
shipment or contact a surveyor to assess the damage.
In the event that damaged goods or short deliveries are found after opening the packing, these
should be reported in the Reception and Inspection Report (RIR). Photos can be a good way to
24
document any damages found, and can subsequently be used to support a claim against the
damaged goods from either the supplier or the marine cargo insurance.
Step 2 : INFORMING THE FUND MANAGER ABOUT THE RECEPTION
(Only for Fund Manager purchase orders).
The Reception Inspection Report (RIR) should be completed and if there are items mentioned
on the packing list but not present in the consignment this should be reflected in the RIR.
If the consignment was complete and without damage, it suffices to indicate on the RIR: “Goods
received as on attached packing list”. All packing lists should be attached to the RIR and signed.
In cases where a partner has sub‐recipients, the RIR should always be endorsed by the partner
who has the Memorandum of Agreement with the 3DF.
The original should then be send to the Fund Management Office within 3 weeks of the arrival
of the consignment.
Matrix of responsibilities for the clearance of consignments
ACTION RESPONSIBLE REMARKS

Receiving pre-notification of arriving Fund Manager Sometimes waybills are included but not
consignments. always.
Informing partner of pending Fund Manager Provide any documents available at that
consignment. time.
Check if consignment includes cold Fund Manager Informs partner if this is the case.
chain commodities.
Taking action in case of cold chain Partner/Fund Manager Clear immediately or arrange cold
items. storage at the airport.
Receiving shipping documents from Fund Manager Official original documents arrive.
supplier.
Initiate payment to the supplier. Fund Manager
Selecting clearing agent. Partner Competitive procedure or valid LTA.
Informing Operational Assistant about Partner By mail or email.

selected clearing agent.
Generating clearance documents and Fund Manager Tax exemption, clearance authorization,
tax exemption request. Special Order, Reception Inspection
Report Form.
Clearing consignment. Partner or clearing agent Immediately with SO or after tax
exemption has been granted.
Requesting tax exemption. Fund Manager Fund Manager submits request to MoH.
Finalizing clearance procedure in case of Partner with clearing agent Clearing agent should “close” the
SO. incomplete clearance procedure and
receive the “Import Declaration”. This
document should be handed over to the
3DF office.
25
Generating and signing RIR and sent Partner Sometimes waybills are included but not
original to 3DF Office. always.
FORM ‐ Receiving and Inspection Report template
UNOPS ‐ Global Marine Cargo insurance guideline
Step 3 : ADD ASSETS TO THE ASSET INVENTORY
All partners shall keep an inventory of the assets procured with grants from the 3DF. The
definition of an asset for the purposes of the inventory is an item of economic value owned by
the organization. Every such asset however may be further categorized as:
• Capital assets; or
• Non‐capital assets.
Capital assets are defined as tangible property with a minimum life expectancy of at least three
years and an original value of US$ 500 or more. Examples are vehicles, equipment and furniture.
Non‐capital assets on the other hand, are defined as tangible property with a value of less than
US$ 500, such as cameras, mobile phones, PDAs, projectors or any other items issued to an
individual, which are both highly moveable and desirable and therefore at risk of theft.
For practical and maintenance purposes, standardised assets, such as personal computers, may
be recorded at one level, such as PC, rather than by its components, such as CPU, monitor,
keyboard and mouse. In such cases, the main or major component will be tracked.
The final submitted inventory should be signed by a representative of the partner, certifying the
inventory of assets. Please also submit an unsigned softcopy to the Fund Manager.
FORM ‐ Asset Inventory Database 3DF template
26
6. LIST OF DEFINITIONS AND ABBREVIATIONS

DEFINITION OR
EXPLANATION
ABBREVIATION
award Acceptance of an offer with the intention of contracting.
3DF Three Diseases Fund.
FM Fund Manager.
IP Partner.
PIC/S Pharmaceutical Inspection Cooperation Scheme.
INN International Non‐proprietary Name.
UNOPS United Nations Office for Project Services.
ICH The International Conference on Harmonization of Technical
Requirements for Registration of Pharmaceuticals for Human
Use.
best value Lowest price is not necessarily the most important criterion in the
procurement of goods and services; the concept of best value
takes a range of criteria into account to select the optimal
solution to a specific need.
bid Formal response from a bidder, usually as a response to an ITB.
bid protest A complaint against the methods employed or decisions made by
a contracting authority in the administration of a process leading
to the award of a contract.
bidder Potential supplier submitting a bid as a response to an ITB.
Bill of Lading The document under which cargo is carried on board vessels; may
be defined as a receipt for goods, signed by a duly authorized
person on behalf of the ship‐owner; it constitutes a document of
title to the goods specified therein.
BoQ Bill of Quantities, list of priced items, usually accompanies a SOW
or RFP as one of the solicitation documents when contracting
works.
brand names A name or trademark by which one producer distinguishes its
product from similar products of other producers in the same
industry. A brand name identifies both the product and the
producer.
call‐off‐orders Orders against an established LTA.
closing date The deadline for all bid/proposal submissions.
contract amendment An agreed addition to, deletion from, correction or modification
27
DEFINITION OR
EXPLANATION
ABBREVIATION
of a contract.
end user Ultimate beneficiary/user of the goods and services being

procured under a procurement activity.
EOI Expressions of Interest. Suppliers express interest in supplying to
UNOPS through an expression of interest. UNOPS places notices
(Calls for Expressions of Interests) to request suppliers to submit
EOIs.
GSC Global Service Centre.
HQ Headquarters.
IAPWG Inter‐Agency Procurement Working Group, working group with
the Heads of Procurement of more than 40 UN organizations as
members.
INCOTERMS INCOTERMS are international, commercial trade terms defining
the obligations of the buyer and the seller relating to the
shipment of goods published by ICC's (International Chamber of
Commerce).
ITB Invitation to Bid, a method of solicitation of offers.
LTA Long Term Agreement, agreement between any organization and
a supplier valid for an indefinite quantity of products or services
over a defined period of time. Orders are placed by issuing call‐
off orders against the LTA.
offer Reply (bid or proposal) received as a response to an invitation to
offer presented in the solicitation documents issued to the
suppliers. Constitutes a firm offer from the potential supplier to
furnish deliverables fulfilling the requirements set forth in the
solicitation documents. The offer can be in the form of a
quotation, bid, or proposal, depending on the type of solicitation
document issued (RFQ, ITB or RFP).
offeror Potential supplier submitting an offer (see above).
quotation The offer submitted in response to an RFQ.
requisition Formal request to initiate the procurement of goods, works and
services. Ref. Chapter 2.5.1.
requisitioner Anyone initiating a request for goods, works and services.
RFQ Request for Quotation, method of solicitation.
segregation of duties Internal control mechanism to ensure that one individual does
not participate in all operational steps in the procurement
process.
28
DEFINITION OR
EXPLANATION
ABBREVIATION
solicitation Process of inviting suppliers to submit offers.
solicitation documents Package of documents used when soliciting offers from suppliers.
ITB, RFP, and RFQ are types of solicitation documents.
solicitation method The method used to solicit offers from suppliers. ITB, RFP, RFQ,
and shopping are methods of solicitation.
sourcing The process of identification of suitable suppliers
specifications Requirement definition to a product. Usually referring to the
defined requirements for goods, but can also relate to the
requirements for services (Terms of Reference), or works
(Statement of Works).
submission Reply received as a response to an invitation to offer presented in
the solicitation documents issued to the suppliers. Constitutes a
firm offer from the potential supplier to furnish deliverables
fulfilling the requirements set forth in the solicitation documents.
The submission can be in the form of a quotation, bid, or
proposal, depending on the type of solicitation document issued
(RFQ, ITB or RFP).
supplier Any potential legal entity, commercial firm or non‐commercial
(NGO, CBO) provider of goods/services/works to UNOPS.
TOR Terms of Reference. Requirement definition for services or
complex goods.
UNCCS United Nations Common Coding System, coding system
classifying products (goods, works and services).
UNCITRAL United Nations Commission on International Trade Law.
UNGM United Nations Global Marketplace. Internet portal used by 16
UN agencies, including UNOPS. Includes, among other types of
information, an inter‐agency vendor roster. See www.ungm.org
for more information.
vendor Any potential supplier of goods/services/works to UNOPS.
waiver (of competitive In a procurement context, a waiver refers to the process of
bidding) selecting a supplier without conducting a competitive bidding
exercise. Often a waiver of competitive bidding will lead to
negotiations directly with one selected supplier (sole sourcing).
29
7. BIBLIOGRAPHY AND FURTHER READING

Operational principles for good pharmaceutical procurement, WHO Geneva, 1999

A Model Quality Assurance System for Procurement Agencies, WHO Geneva, 2004

WHO List of Prequalified Medicinal Products, WHO International Website

Counterfeit drugs, Mahidol Oxford, Tropical Medicine Research Units.

Compliance list HIV‐AIDS TB Malaria, Global Fund, April 2007

Global Fund Guide procurement and supply management, Global Fund, November 2009

How to access procurement services through UNICEF, UNICEF, January 2007

Sources & Prices of Selected Medicines and Diagnostics for People Living with HIV‐AIDS, MSF,
UNAIDS, UNICEF, WHO, June 2003

Sources and Prices of Selected Products for the Prevention, Diagnosis and Treatment of Malaria,
MSH, PSI, RBM, UNICEF, WHO, September 2004

Storage of Essential medicines WHO‐UNICEF guidelines, DELIVER, JSI, UNICEF, USAID, WHO
December 2003

UNOPS Procurement Manual, (only accessible by UNOPS Staff), UNOPS Copenhagen, April 2010

Untangling the web of price reductions 10th edition, MSF, July 2007

WHO Model list of essential medicines Adults 16th edition (Updated), WHO, March 2010

WHO Model list of essential medicines Children 2nd edition (Updated), WHO, March 2010

International Drug Price Indicator Guide, Management Sciences for Health (MSH), World Health
Organization (WHO), 2003

Handbook of supply management at first‐level health care facilities, Ecumenical Pharmaceutical
Network, IDA Solutions, John Snow Inc., MSH, UNICEF, USAID, WHO 2006

Substandard medicines in resource‐poor settings: a problem that can no longer be ignored, MSF,
AEDES, August 2008

WHO Good Manufacturing Practices Question and Answers, WHO Website
30
8. ANNEXES
Annex 1. PARTICIPATING REGULATORY AUTHORITIES
www.picscheme.org/
PHARMACEUTICAL INSPECTION COOPERATION SCHEME (PIC/S) PARTICIPATING REGULATORY AUTHORITIES
www.picscheme.org
Argentina Greece Norway
Australia Hungary Poland
Austria Iceland Portugal
Belgium Ireland Romania
Canada Israel Singapore
Cyprus Italy Slovak Republic
Czech Republic Latvia South Africa
Denmark Liechtenstein Spain
Estonia Lithuania Sweden
Finland Malaysia Switzerland
France Malta United Kingdom
Germany Netherlands

PARTICIPATING REGULATORY AUTHORITIES TO THE INTERNATIONAL
CONFERENCE ON HARMONIZATION OF TECHNICAL REQUIREMENTS FOR
REGISTRATION OF PHARMACEUTICALS FOR HUMAN USE (ICH)
www.ich.org
European Union member states
Japan
United States
31
Annex 2. NATIONAL GUIDELINES USED FOR STANDARD DRUGS ORDER LIST

1. GUIDELINES FOR THE CLINICAL MANAGEMENT OF HIV/AIDS IN ADULTS AND ADOLESCENTS – National
AIDS/STD Prevention and Control Programme, Department of Health, Ministry of Health
Myanmar, 2nd edition, July 2007.
2. GUIDELINES FOR THE CLINICAL MANAGEMENT OF HIV INFECTION IN CHILDREN IN MYANMAR ‐ National
AIDS/STD Prevention and Control Programme, Department of Health, Ministry of Health
Myanmar, 2nd edition October 2007
3. NATIONAL TREATMENT GUIDELINES FOR THE MANAGEMENT OF SEXUALLY TRANSMITTED INFECTIONS IN
MYANMAR ‐ Practical Handbook, 2007
4. GUIDELINES FOR PRIMARY HEALTH CARE SERVICES FOR INJECTING DRUG USERS. Myanmar, September
2006 ‐ (Developed by WHO Myanmar in collaboration with government and non‐
governmental organizations and funded by FHAM)
5. GUIDELINES ON METHADONE THERAPY IN MYANMAR FOR PRESCRIBERS AND DISPENSERS ‐ Department of
Health, Ministry of Health Union of Myanmar, December 2004
6. NATIONAL ANTIMALARIAL TREATMENT POLICY IN THE UNION OF MYANMAR, SEPTEMBER 2002

32

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STANDARD OPERATING PROCEDURES FOR PROCUREMENT WITH GRANTS FROM THE THREE DISEASES FUND

ACTION RESPONSIBLE REMARKS

Selecting clearing agent. Partner Competitive procedure or valid LTA.

Informing Operational Assistant about Partner By mail or email.

end user Ultimate beneficiary/user of the goods and services being

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