Pages - VI.2.2 Procurement of goods

General

10 The policies and procedures set forth in this section of the WHO eManual apply to the procurement, shipment and insurance of all goods, whatever the source of funds or the use for which they are intended, unless expressly stated otherwise in those sections of this Part VI that deal with specialized forms of procurement.

20 Goods that cannot be obtained locally or for which it is more advantageous to acquire centrally are normally procured by GPL or, under special arrangements, by regional offices within a recognized market area. When no significant economy would result from central procurement, e.g. when a small number of items of low value are required which are proprietary to a sole provider or which cannot be combined to form part of a larger order to the same provider or distributor, or simply be ordered direct from the producer at a price which is the same to all purchasers, the requisitioner (regional office, WHO representative, team leader) is authorized to procure directly from a provider.

30 The ownership and control of all goods purchased remains with the Organization unless:

title to the goods has been formally transferred to a government pursuant to a plan of operation or other agreement covering technical cooperation; or
any equipment is acquired under the terms of the Technical Services Agreement (TSA), in which case such equipment becomes the property of the institution (see section XVI.1) ; or
the goods are acquired under arrangements for reimbursable purchases for Member States, United Nations system agencies or nongovernmental organizations (see section VI.3): or
the goods are otherwise sold or disposed of.

Market surveys

40 Units wishing to procure goods are responsible for determining what markets exist for different types of supplies and for ensuring that bids, when necessary (see section VI.1.3 paragraphs 70 – 120), are obtained from a representative number of providers and that procurement is otherwise made in accordance with the policy set forth in paragraph 20 above.

Requirements and specifications

50 Global Procurement and Logistic Services or the Regional Office Procurement Unit must be allowed sufficient time before the date on which the goods are to be delivered to their ultimate destination recognizing that it is not always possible to calculate the precise amount of time required. Every effort should be made to submit procurement requisitions as early in each financial year or biennium as can be arranged.

60 The period required for the preparation and issue of invitations to bid and for other steps leading to the placing of an order varies but does not normally exceed two months. The length of time taken to deliver goods also varies with each provider. However, a reasonable indication can be gained by reference to previous purchase orders showing recent procurement of similar goods and services. GPL can advise on approximate transit times.

Purchase orders

70 Purchase orders are the normal form of contract for the purchase of goods. As a general rule, purchase orders bear a sequential number generated electronically.

80 If at the time the provider confirms the order, an amendment is needed to cover a change in specification, quantity, unit price or total value, a new purchase order must be issued (bearing the number of the original document with the suffix 'Revision 1','Revision 2' etc.) and approved in the usual manner.

90 A revised purchase order must always be issued when the total value of the original purchase order changes (increase/decrease) by more than 5% or US$ 500, whichever is lower.

100 Purchase orders are deemed to be fulfilled when delivery has been completed and payment made or when any undelivered portion has been cancelled.

110 If a purchase order is required to be cancelled, a written request for cancellation should be submitted to Procurement Services (Coordinator, GPL; Regional Supply Officers) setting forth the reasons for the cancellation. Since the purchase order, together with the provider's acknowledgement or acceptance of the order, constitutes a legally binding contract against which the provider may demand payment if the goods are delivered, the provider's agreement should be obtained in writing should cancellation be necessary.

Shipping

120 The instructions given by issuing offices on procurement requisitions are transmitted to providers and/or forwarding agents with each purchase order.

130 Every endeavor should be made to dispatch goods by the cheapest method. More expensive methods should be considered only if the goods are required urgently or if they are of a fragile or perishable nature. However, in the case of an officially declared emergency, Coordinator, GPL or Director of Administration and Finance in regional offices have the authority to approve the dispatch of goods by the fastest means of transportation available.

Insurance

140 Global Procurement and Logistic Unit (GPL) or the appropriate regional office, whichever is responsible for issuing the forwarding and/or storage instructions, is also responsible for insuring consignments costing more than US$ 5000 including freight. Should regional offices wish to have consignments insured under the headquarters' global policy, a monthly return should be sent to Goods Receipts and Dispatch Unit, giving the following details:

date of dispatch;
mode of conveyance (sea, rail, air, post, pouch etc.);
the journey (origin and final destination);
brief description of material;
value to be insured;
PTAEO(s) chargeable.

150 In the case of consignments by air freight of goods donated for emergency relief purposes, commercial insurance arrangements should be looked at on a case by case basis and arrangements for appropriate coverage during transportation and storage should be made, as necessary. In some cases, donors may make arrangements for delivery of the goods, including insurance coverage during transportation and storage. However, in other cases, WHO, as the recipient of the goods, may be required to make such arrangements.

Goods lost or damaged during shipment

160 If the carrier or its agent at the destination shown on the shipping documents is unable to deliver the goods for which valid documents are presented, a claim in writing for the missing goods should be addressed to the carrier (airline, inland carrier, forwarding agent) or port authorities who may be held responsible for the loss, and a certificate of loss or of short landing obtained.

170 If goods as represented on the shipping document are received but there is damage to, or shortage in, a shipment that has been insured:

if the damage is estimated to be less than US$ 250, no claim should be made;
if the insurance coverage has been provided under the headquarters' global policy and the damage or shortage exceeds or is believed to exceed US$ 5000, a survey by the agent of the insurance company may be required. For shipments from GPL, details of the procedure to be followed and the name of the agent to be contacted are found on the insurance slip attached to the shipping advice/receiving report. In the event of loss of or damage to goods, GPL should immediately be notified and will provide guidance about appropriate action to be taken;
if the insurance has been arranged by the supplier (INCOTERMS 2010 CIP contracts) or through an agent other than the Organization's insurer, the instructions appearing on the insurance certificate should be followed;
if the damage is expected to be less than the amount for which a formal survey is required, either under the Organization's or another insurance policy, a report from the consignee giving details of damage, condition of packing and other relevant information should be sent to GPL.

180 When a claim is to be made, regional offices and consignees should send all the necessary documents such as short-landing certificate, certificate of loss, survey report (if required) etc. to GPL as soon as possible, since a claim may not be accepted if the supporting documents are not presented within the time limits allowed for claims under WHO's insurance policy or against the carrier, or both.

Replacement of goods lost or damaged during shipment

190 When goods that have been lost or damaged need to be replaced, headquarters, regional or country offices, as appropriate, should take one of the actions described below:

if sufficient funds are available in the relevant PTAEO, the project should be charged with the cost of the replacement. If GPL is to order the replacement, a new procurement requisition, or memorandum if the value is less than US$ 500, should be sent to GPL. If the goods are to be replaced by local procurement, a purchase order should be sent directly to the provider;
if sufficient funds are not available in the relevant PTAEO, a request should be sent (by email or facsimile, if the goods are urgently needed) to GPL requesting an increase in the PTAEO.
if the replacement of goods charged to a PTAEO issued in one financial year cannot be made until the following financial year because no funding provision for goods exists, an appropriate request should be made to GPL.

200 No special authority is required for a regional office to procure locally replacements for, or to have repairs made locally to, items for which an insurance claim has been filed. The cost of the local replacement or repair should however bear a reasonable relationship to the amount of the insurance claim. Until an insurance claim is settled and credited, any such expenses must be charged to the appropriate PTAEO.

Motor vehicles

210 For projects financed from the regular budget or from one of the Special Accounts under the Voluntary Fund for Health Promotion, the procurement of motor vehicles of any type may be authorized by the regional director concerned (or official to whom he/she has delegated this authority) or for headquarters activities, by the chief of the unit concerned.

220 For projects financed from the United Nations Development Programme, the procurement of motor vehicles may be authorized by the regional director concerned if provision for these vehicles was included in the goods component of the approved project. If this provision was not made, the approval of the Administrator of the United Nations Development Programme, or of the local Resident Representative, should first be obtained.

Goods provided by WHO in emergencies

230 Subject to the approval of the Director-General in respect of officially declared emergency, and to satisfactory financial provision, goods may be provided to alleviate emergency situations of the type defined in Part XVII. Priority is given to such purchases.

Procurement of office supplies and equipment

240 Normally, stationery items and office supply should be procured locally.

250 Where standard stationery items are not available locally, at a competitive price, regional offices should order them through GSM from the supplier with whom WHO has entered into a global contract for supply. Likewise, WHO offices may obtain stationery items and office supply from regional offices or through GSM from the supplier with whom WHO has entered into a global contract for supply.

260 Regional offices should provide a PTAEO to cover the cost of items included in the annual bulk orders and of any supplementary supplies requested on form WHO 7.1 (Requisition for coded and non coded articles).

Management of equipment, furniture and office supplies

270 WHO seeks to standardize furniture, equipment and office supplies, by procuring centrally and establishing Long Term Agreements with suppliers, as far as is practical. Office equipment, furniture and supplies are procured and managed centrally. It is recognized that different buildings, locations and office configurations may require different standard specifications and agreements. Regional offices may define locally specific regional and country standards appropriate to their operations.

320 Furniture is an Organizational asset irrespective of the source of funds used to procure it. Furniture provided is not issued to specific units, departments, clusters or individuals and is not automatically relocated in the event of office moves or reorganizations. Non-standard furniture issued for medical purposes may be moved or replaced with alternative equipment of an equivalent specification and functionality. Furniture may not be transferred to another unit or removed from WHO premises unless permission has first been obtained from Building Management.

330 At headquarters, requests for the moving of heavy furniture should be made to the facilities management helpdesk. In Regions requests should be made to the Building Management unit. Staff members should not attempt to move heavy furniture.

Office supplies

340 At Headquarters, standard stationery items may only be obtained through the online webshop platform at the following link: http://www.stocknshop.com/page/homepage. Orders of stationery will be directly delivered to the requestor's office against signature of the receipt.

350 Regional Administrative Services Officers for regions and WRs in country offices are recommended to establish contracts and procedures for procurement, ordering and distribution of standard office supplies adapted to their local circumstances.

Non-standard equipment, furniture and office supplies

360 Requests for non-standard furniture must be made through Space Planning and Accommodation (SPA) unit in Headquarters. Requests received for non-standard furniture will be validated through Staff Health and Wellbeing Services/Regional Medical Services to ensure the non-standard furniture requested is medically justified for the individual concerned. The request submitted should indicate the PTAEO to which the costs are to be charged.

370 At Headquarters, requests for non-standard office supplies must be made through the facility management help desk at http://intranet.who.int/sites/facilitymanagement/ or through the Administrative Services Officer in Regions.

380 In Regional and country offices, non-standard office supplies, equipment and furniture must be approved by the Regional Staff Physician.

Visiting cards

390 All official visiting cards bear the WHO emblem and have a standard format and presentation. All professional staff members on fixed-term or longer term contracts are entitled to official visiting cards, bearing their name and title, subject to the approval of their director.

400 Requests for official visiting cards should be sent to Contract and Procurement Services (for requests from headquarters staff) or Director of Administration and Finance (for requests from staff in the regions) specifying the PTAEO to be charged. A maximum of 200 cards per staff member per biennium is provided.

Forms

410 A unit wishing to initiate a form or make changes in the content of an existing form should do it electronically and send a draft of the proposed new form or revised form for approval by a director at headquarters or officer designated by the Director-General at headquarters. Regional offices should correspond directly with the headquarters administrative units concerned about proposals for changes in standard WHO administrative forms.

420 Regional offices establish their own procedures for drafting and producing electronic forms needed for purely regional use.

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