Standard Form of Agreement for Procurement of Supplies

UNFPA BankFinanced Projects

The United Nations Population Fund (UNFPA) implements a wide range of development programmes that are cofinanced by multilateral development banks (MDBs). A crucial element of successful implementation is the procurement of goods and services in a transparent, efficient and compliant manner. To streamline this process, UNFPA uses a Standard Form of Agreement (SFoA) that sets out the rights, obligations, and procedures for suppliers engaged under bankfinanced projects.

1. Objectives of the Standard Form of Agreement

• Uniformity: Provides a consistent contractual framework across all UNFPAbank projects.
• Compliance: Aligns with the procurement policies of both UNFPA and the financing bank, including the World BanksProcurement Guidelines and the UN Systems procurement rules.
• Risk Management: Clearly allocates risks, responsibilities and remedies to avoid disputes.
• Transparency: Ensures that all parties understand the process, evaluation criteria and contract terms.

2. Scope of Application

The SFoA applies to all contracts for the supply of goods, works or services that:

• Are funded, wholly or partially, by an MDB (World Bank, African Development Bank, Asian Development Bank, etc.).
• Fall under the procurement thresholds set by the respective bank.
• Require adherence to both UNFPA internal guidelines and the banks procurement procedures.

3. Key Components of the Agreement

4. Procurement Process Overview

The procurement cycle under the SFoA mirrors the banks standard steps, adapted to UNFPAs operational context:

1. Needs Assessment UNFPA program teams identify and validate the technical and financial requirements.
2. Approval of Procurement Plan The plan, including budget lines and procurement method, is approved by the UNFPA Project Management Unit (PMU) and the banks financing authority.
3. Preparation of Bidding Documents The SFoA is attached to the Terms of Reference (ToR) or Specifications, along with evaluation criteria.
4. Advertisement & Invitation to Bid Notices are published on UNFPAs eprocurement portal and on the banks procurement notices portal, ensuring open competition.
5. Bid Submission & Opening Suppliers submit sealed bids; the opening is conducted in the presence of an audit representative.
6. Evaluation & Award A technical and financial evaluation matrix is applied. The award decision is documented in an award recommendation report.
7. Contract Signing The SFoA is signed by the UNFPA contracting officer and the selected Supplier; the banks authorized signatory may also sign if required.
8. Implementation & Monitoring Delivery, quality checks, and payments are carried out per the agreement, with regular progress reports submitted to the bank.

5. Roles and Responsibilities

• UNFPA Project Management Unit (PMU) Owns the procurement need, ensures compliance with UNFPA policies, and manages contract administration.
• Banks Procurement Unit Validates the procurement method, reviews bidding documents for bank compliance, and monitors financial disbursements.
• Contracting Officer (UNFPA) Issues the SFoA, evaluates offers, and signs the contract.
• Supplier Delivers goods/services as specified, complies with reporting, and maintains required guarantees.
• Audit/Compliance Officer Conducts periodic audits and ensures adherence to anticorruption safeguards.

6. Compliance with AntiCorruption and Ethics Rules

Both UNFPA and the financing bank maintain a zerotolerance policy for corruption. The SFoA incorporates the following safeguards:

• A declaration of no conflict of interest by the Supplier.
• Requirement to adopt the UN Supplier Code of Conduct.
• Obligation to report any bribery attempts immediately to UNFPAs Ethics Office and the banks Integrity Office.
• Provision for contract termination without compensation in case of proven corruption.

7. Monitoring, Reporting and Audits

Effective contract management hinges on regular monitoring. The SFoA specifies:

• Quarterly progress reports covering delivery status, expenditures, and any variances.
• Submission of original invoices, shipping documents, and certificates of conformity.
• Bankinitiated audit rights, including onsite verification and review of financial records for up to five years after contract closeout.

8. Common Amendments and Addenda

During implementation, certain changes may be necessary. The SFoA provides a clear amendment procedure that requires:

1. Written request from either party outlining the proposed change.
2. Impact analysis (cost, schedule, technical).
3. Approval by both UNFPA PMU and the banks procurement authority before execution.

Typical addenda include price adjustments due to exchangerate fluctuations, extension of delivery dates, or inclusion of additional technical specifications.

9. Termination Provisions

Termination can be initiated for cause (e.g., repeated nonperformance, fraud) or for convenience (project cancellation). The SFoA outlines:

• Notice period (usually 30 days) and required documentation.
• Settlement of outstanding invoices for work properly performed.
• Return of any guarantees or securities.

10. Benefits of Using the Standard Form

• Predictability: All parties know exactly what is expected, reducing negotiation time.
• Speed: Preapproved terms expedite the contracting stage.
• Risk Reduction: Clearly allocated responsibilities limit exposure to disputes.
• AuditReady: The contract format aligns with bank audit checklists, simplifying financial reviews.

11. Accessing the Standard Form

The latest version of the SFoA can be downloaded from the UNFPA procurement portal or obtained directly from the banks procurement unit. Updates are issued annually or when substantive changes occur in either UNFPA or bank procurement policies.

12. Frequently Asked Questions

• Can the SFoA be used for nonbankfinanced UNFPA projects? No. A separate UNFPA standard contract is used for purely UNfunded procurements.
• What happens if the Supplier fails to meet delivery deadlines? The agreement provides for liquidated damages and, if necessary, contract termination.
• Are subcontractors allowed? Subcontracting is permissible only with prior written consent from UNFPA and the bank, and the main Supplier remains fully responsible.
• How are disputes resolved? The parties first seek amicable settlement; failing that, disputes are referred to arbitration under ICC Rules in the venue specified in the agreement.

13. Conclusion

The Standard Form of Agreement for Procurement of Supplies under UNFPAs bankfinanced projects is a cornerstone of effective, transparent, and compliant procurement. By consolidating UNFPA and bank requirements into a single, wellstructured contract, the SFoA reduces administrative burden, safeguards public funds, and ensures that vital supplies reach beneficiaries in a timely manner. All stakeholders are encouraged to familiarize themselves with the form, adhere to its procedures, and maintain open communication throughout the contract lifecycle.

For further assistance, please contact the UNFPA Procurement Division at procurement@unfpa.org or the relevant bank procurement liaison office.