​​​​​​​​​​​​​​​XVI - Contractual Arrangements for Programme Implementation

XVI.0 - Introduction to Contractual Arrangements for Programme Implementation

During the Country Cooperation Strategy (CCS), Country Support Plan (CSP) and Programme Budget (PB) formulation, country offices determine with the government how to establish appropriate mechanisms for the implementation of the country programme. Similarly, HQ Budget Centres formulate their workplans to execute the Programme Budget. This requires careful consideration of the implementation modality to be used, meaning the management and delivery of programme activities and resources to achieve specified results as set forth in the work plans. This includes identifying if work should be undertaken internally by WHO staff or with whom WHO must work to best achieve the results, including government agencies, such as the Ministry of Health, departments, agencies, institutions, etc.; non-profit organizations, e.g., international, national, provincial, or local Non-governmental Organizations (NGOs) or Community Service Organizations (CSOs); research and academic institutions; or other United Nations entities; as well as how to engage with them.

The following implementation modalities are available:

1. National implementation: when the government (i.e. Ministry of Health), a department within the ministry, or a wholly owned government entity (university, a regional or local authority or a municipality) implements one or more of the outputs in the programme. This includes:
   
    
1. When the WHO country office provides the funds to the government entity for their implementation (Direct Financial Cooperation or DFC); or
   
    
2. When the WHO country office makes payments to personnel hired (or designated) by the government to implement activities where the government is not able to or the risk is assessed as high for the government to make the payment directly (Direct Implementation or DI). In this case, the WHO pays the end recipients directly and no funds are transferred to the government.
   
    

2.  WHO implementation: WHO must have the technical and administrative capacity to assume the responsibility for mobilizing and applying effectively the required inputs to reach the expected outputs, and following policies and procedures established for its own operations. 

a.  Internal implementation can be completed by either:

1. utilizing WHO personnel or consultants (where the planning and assignment of work to be undertaken falls under human resources – eManual section III); or
2. procuring goods and services – using a commercial contract where WHO receives goods or services in return for a defined contract.  Procurement should be undertkane as part of the procurement plan to purchase goods and services (agreement for performance of work, non-grant letters of agreement etc.) and falls under procurement (eManual section VI)
   
    
   
    

1. Issue grants to non-governmental organizations/non-state actors to support the grant recipient's work or implement activities to achieve a WHO programmatic result, using a Grant Letter of Agreement (GLOA);
   
    
2. Enter into Technical Services Agreements for research or other technical projects/investigations.

3. United Nations agency implementation, either by using them directly as an implementing partner (using GLOA), establishing a joint programme or having them undertake activities in a WHO-implemented activity (service procurement).

These implementing modalities are not mutually exclusive and can be used collectively to achieve WHO workplan results. Furthermore, WHO may support national implementation by undertaking activities, for example, procurement or recruitment activities (especially where the capacity assessment highlights weaknesses in these areas), or activities such as organizing strategic events or conferences, and producing outputs such as research products.   

It is the responsibility of the WHO Country Office and HQ Departments to select the most appropriate implementation modality. In doing so they must also determine whether WHO will implement the activities, or if the activities will be entrusted to an implementing partner, and to identify the partners required to achieve the programme outputs considering their capacity and related risks. Partners include government agencies, such as ministries, departments, agencies, institutions, etc.; non-profit organizations, e.g., international, national, provincial or local NGOs or CSOs, as well as research and academic institutions; or another United Nations entity.

The implementing partner (IP) is the entity which assumes full responsibility and accountability for the effective use of WHO resources, the implementation of activities as defined in the mutually agreed workplan, and the achievement of outputs. An implementing partner must have sufficient programmatic, managerial, technical, financial, and procurement capacity to both implement WHO resources, and monitor progress of the implementation.

If another UN entity is selected, in a country context the UNCT should be able to identify specific members able to work on different results based on their mandates, capacity and available resources. Where joint programming is undertaken, WHO should work with its partner UN agencies to ensure that cash transfer modalities are aligned, noting that the risk tolerances may be different for the other agencies, depending on the size of the partner and the activity, however a common approach should be undertaken with a joint programme with common IPs.

This selection must be based on a risk assessment and the capacity of both the implementing partner and the country office or department. Implementation modalities at the country level must be discussed and agreed upon with the MOH.

Activities may be undertaken through different implementation and contractual modalities depending on the optimal means of undertaking the activity.  For example, where an immunization campaign is undertaken by a government, with funding from WHO, the activity would fall under DFC.  Funding for an immunization campaign could also be granted and undertaken by an NGO – in this case a GLOA would be used.  In certain situations, there is no government entity or NGO that can undertake the work and instead WHO directly oversees the immunization campaign – in this case payments to vaccinators contracted by the government but overseen by WHO is treated as Direct Implementation.  For DI, please refer to eManual section XVI.4.

An Implementing Partner (IP) includes government entities; and non-state actors (non-governmental organizations (NGO), not-for-profits, foundations etc.); and UN Agencies. 

In summary:

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To assist in distinguishing between when to use Direct Financial Cooperation and Grant Letter of Agreements please refer to the following table for guidance:

Comparison of DFC, GLOA and DI:

When selecting non-state actors as partners, it is important to assess where the appropriate instrument is a grant or a procurement action. The type of partner and responsibility for the programmatic output drives the decision on the appropriate contracting modality. The grants (GLOA) instrument is to be used contracting with non-state actors for the delivery of an output or for the financing of their activities, as aligned to WHO programme objectives, as an implementing partner (where it has full responsibility for an output) or a partner contributing to an output. A procurement contract is the appropriate instrument for purchasing inputs to a programmatic output, whether goods or services, which do not have the programmatic responsibility for the output and are typically (but not exclusively) provided by private sector entities.     

Grant LOAs should be distinguished from Non-grant Letters of Agreement, which is the general term used to describe a contract with an external party which can be used for the procurement of services where it is not possible to use one of the standard service contracts (APW or Consultant Contract). Non-grant Letters of Agreement are described in more detail in eManual section VI.2.3.

To assist in distinguishing between the procurement of services (via a commercial contract) and a GLOA, please refer to the following table for guidance:

Comparison of procurement and GLOA

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