ICA Policy

Administrative Administrative Instruction

Individual Contractor Agreement (ICA) AI/HRPG/2010/01

AI/HRPG/2010/01 AI/HRPG/2010/ 01 - ICA

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Administrative Administrative Instruction

Individual Contractor Agreement (ICA) AI/HRPG/2010/01


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12 July 2007

Table of Contents Administrative Instruction .................................................................................... ...................................................................................................... .................. 1 Individual Contractor Agreement (ICA) ......................................................................... ................................................................................. ........ 1 Annexes ..................................................................................................... .................................................................................................................................... ............................... 3 Tables ........................................................ .................................................................................................................. ............................................................................... ..................... 3 1.0 Introduction................................................... .............................................................................................................. ..................................................................... .......... 4 2.0 Insurance Provisions ........................................................................................................ ........................................................................................................ 4 2.1 Service-Incurr ed Illness, Illness , Injury and Death Insurance ...................................................... ......................................................4 2.2 Malicious Acts Insurance ................................................................................................. .................................................................................................5 2.3 Health Insurance .............................................................................................................. ..............................................................................................................5 2.4 Insurance Coverage on Contract Extension Extens ion .................................................................... ....................................................................6 2.5 Insurance Coverage Overview ................................................... ......................................................................................... ......................................6 2.6 Statement Stat ement of Medical Fitness for Work W ork ........................................................... ............................................................................ .................7 3.0 Absence Management....................................................... ....................................................................................................... ................................................ 7 3.1 Working Hours ...................................................... ................................................................................................................ ............................................................8 3.2 Overtime ................................................................................................................ ........................................................................................................................... ........... 8 3.3 UN Holidays and W eekends ................................................................ ............................................................................................ ............................8 3.4 Sick Leave (SL) ............................................................... ................................................................................................................ .................................................9 3.5 Annual Leave (AL) ...........................................................................................................9 3.6 Maternity Leave..................................................... ............................................................................................................... ............................................................9 3.7 Paternity Leave ..............................................................................................................1 ..............................................................................................................10 0 3.8 Unpaid Leave ..................................................................................... .................................................................................................................10 ............................10 3.9 Absence Management Overview .......................................................... ...................................................................................11 .........................11 3.10 Leave and Overtime Provisions P rovisions on Contract Extension ..............................................11 3.11 Computation of Annual Annua l and Sick Leave ........................................................ .......................................................................11 ...............11 3.12 Leave Provisions While on Part-time Part-tim e Status ................................................. ................................................................12 ...............12 4.0 Travel Arrangements Arrangements ......................................................... ....................................................................................................... .............................................. 12 4.1 Eligibility ............................................................................................ .........................................................................................................................12 .............................12 4.2 Standards for Travel, Tr avel, Route and Mode of Transportation .............................................13 .............................................13 4.3 Travel T ravel Payments ............................................................................................................1 ............................................................................................................13 3 4.4 Visa and Travel T ravel Documents .......................................................................... ...........................................................................................13 .................13 4.5 Inoculations ....................................................................................................................14 ....................................................................................................................14 4.6 Security Clearance and Travel Notification ..................................................... ....................................................................14 ...............14 5.0 Engagement of Former and Retired Staff Members .................................................... .................................................... 14 5.2 Conditions for Engaging Retired Staff in Receipt of a Pension Benefit .........................15 5.3 Break in service ..................................................... ..............................................................................................................1 .........................................................15 5 5.4 Determining Fees for Former Staff Members ................................................................16 ................................................................16 7.0 Pre-requisites for Starting the Selection Process........................................................ 16 7.1 Checking Availability o f Funds ................................................................................... ........... 16 7.2 Terms of Reference .................................................................... ............................................. 16 7.3 Establishing a Roster of Qualified Contractors ............................................................. .......... 17

8.0 Selection ........................................................ ................................................................................................................... ................................................................... ........ 18 8.1 Open Competition ..........................................................................................................18 ..........................................................................................................18 8.2 Limited Lim ited Competition .......................................................................................................20 .......................................................................................................20 8.3 Pre-selection ..................................................................................................................20 ..................................................................................................................20 8.4 Exceptions ......................................................................................... ......................................................................................................................21 .............................21 9.0 Review and Award ............................................................. ........................................................................................................... .............................................. 23 9.1 Overall O verall Procurement Authority ................................................... .......................................................................................23 ....................................23 9.2 Delegation of Procurement Authority ............................................................... ...................... 23

9.3 Responsibility of the Procurement Authority ................................................... ..................................................................25 ...............25 AI/HRPG/2010/01 AI/HRPG/2010/ 01 - ICA

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9.4 Award...................................................................................................................................... 25

9.5 Review ....................................................... .................................................................................................................. ....................................................................26 .........26 9.6 Preparation of submission for review and award ....................................................... ...........................................................28 ....28 9.7 Post facto/retroactive approval .................................................. ......................................................................................29 ....................................29 10.0 Contract Issuance ......................................................................................................... ......................................................................................................... 30 10.1 Letter of Intent ............................................................... ..............................................................................................................31 ...............................................31 10.2 Issuance of ICA ................................................... ............................................................................................................3 .........................................................31 1 11.0 Amendment and Extension of ICA .............................................................................. .............................................................................. 32 11.1 Extension of Services / Changed Scope of W ork .................................................... ........................................................32 ....32 11.2 Modification of Contract Provisions..................................................... ..............................................................................33 .........................33 11.3 Procedures for f or Amendment of Contract ......................................................................33 ......................................................................33 12.0. Payment to Individual Contractors .................................................... ............................................................................. ......................... 33 12.1 International ICA Fee Ranges .................................................. ......................................................................................34 ....................................34 12.2 Fee Setting for International Individual Contractors.....................................................36 12.3 Local ICA Fee Ranges .................................................. .................................................................................................38 ...............................................38 12.4 Fee Setting for Local Individual Contractors C ontractors ................................................. ................................................................38 ...............38 12.5 Hazard Allowance ........................................................................................................3 ........................................................................................................39 9 12.6 Adjusting the Fee F ee ....................................................................................... .........................................................................................................39 ..................39 12.7 Method of Payment ....................................................... ......................................................................................................40 ...............................................40 12.8 Calculation Formulae for f or ICA Payments ....................................................... ......................................................................40 ...............40 12.9 Currency of Payment Pa yment ...................................................................................................4 ...................................................................................................41 1 12.10 Final Payment ............................................................................................................4 ............................................................................................................41 1 12.11 Taxes on Income........................................................................................................41 Income........................................................................................................41 13.0 Performance Evaluation ............................................................................................... ............................................................................................... 41 14.0 Termination of ICA ........................................................................................................ ........................................................................................................ 42 15.0 Special Measures .......................................................................................................... .......................................................................................................... 44 a) Lumpsum Contracts ..................................................................... ............................................. 53 b) Retainer Contracts ....................................................................... ............................................. 53 c) Regular Contracts of Less Than One Month .................................................................. ........... 53 d) Regular Contracts of One Month or Longer ............................................................................. 53

Annexes Annex 1: Certification of Sick Leave – Example………………………………………………45 Annex 2: Engagement and Selection Process ……………………..…………………..…….47 Annex 3: Review and Award Matrix ..……………………………………………………...……48 Annex 4: International ICA Ranges – Break down……………………………………………52 Annex 5: Calculation Formulae for Payments………………………………………..……….53 Annex 6: List of Acronyms …………….……………………………….………………….....….55

Tables Table 1: Insurance Coverage for Individual Contractors………………………………….….6 Table 2: Absence Management for Individual Contractors………………………………….11 Table 3: Delegation of Procurement Procurement Authority……………… Authority……………………………………………...…24 ……………………………...…24 Table 4: Thresholds for contracts and property committee review …………….…….…..27 Table 5: Daily Rates for International Individual Contractors …………………………...…34 Table 6: Monthly M onthly Rates for International Individual Contractors………………… Contractors…………………………..35 ………..35 Table 7: Education / Experience Requirements…………..………………………………...…36 Requirements…………..………………………………...…36 Table 8: Requirements for Performance Evaluation Report completion…...…………….42


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1.0 Introduction 1.1 The present Administrative Instruction has been issued in accordance with: (a) OD 21 revision 2, where the Executive Director tasked the Director HRPG to to issue an Administrative Instruction to guide the selection and administration of individual contractor agreements (ICA); (b) OD 11 revision 2, where the Executive Director tasked the Director HRPG to issue an Administrative Instruction to provide guidance on travel to join and repatriation travel of individual contractors; and (c) AI/EO/2010/03, where the Executive Chief Procurement Officer tasked the Director HRPG to issue an Administrative Instruction to provide guidance on the review and award of contracts to individual contractors.

2.0 Insurance Provisions 2.0.1 Ind Individual contractors expected to work in any UNOPS office or other approved work 1 location or travel as part of the performance of services under the individual contractor agreement will be covered by insurance(s) provided or negotiated by UNOPS as described in this section. 2.0.2 When individual contractors are engaged on home-based, retainer or lumpsum contracts, they will be not be covered under the insurances described in this section, except when they travel as part of the performance of services under the individual contractor agreement and when they perform their services at a UNOPS office or work location. 2.0.3 Details of the insurance coverage and benefits are available on the intranet at HR Insurance.. Insurance 2.1 Service-Incurred Illness, Injury and Death Insurance 2.1.1 Individual contractors who are engaged to perform services in an UNOPS office or other approved work location and/or travel as part of the performance of services under the individual contractor agreement are covered in the event of illness, injury or death attributable to the performance of official UNOPS duties anywhere in the world. 2.1.2 Coverage for service-incurred illness, injury and death starts from the time of leaving home (or present place of residence) and continues until arrival back at home (or present place of residence) for as long as the individual contractor is required to travel as part of the performance of services under the individual contractor agreement. Coverage does not include any intervening period that the contractor spends on his/her personal business. 2.1.3 Individual contractors are covered for service-incurred illness, injury and death, subject to paragraph 2.0.2 above, under the following schemes: contractors ; are insured under a Service-Incurred Injury, a) International individual contractors; Illness/Death Insurance; b) Local individual contractors on contract for a period of three (3) months or longer: are insured under a Group Medical, Death & Disability Insurance Plan; and

1

An approved work location shall mean an office space provided by UNOPS or by the client for whom UNOPS is engaging the individual contractor, or a work location such as a construction site or other location where UNOPS or the client for whom UNOPS is engaging the individual contractor requires the individual contractor to perform his or her services.


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c) Local individual contractors on contract for a period of less than three (3) months: are covered under a UNOPS Compensation Scheme offering a one-time payment per occurrence. 2.1.4 Insurance premiums for the above coverages will be charged to the contract source of funding. 2.2 Malicious Acts Insurance 2.2.1 The intent of malicious acts insurance / compensation scheme is to cover incidents resulting in death or disability of individual contractors caused by malicious acts, including war, sabotage and terrorism. 2.2.2 Malicious acts insurance / compensation scheme covers on a twenty-four (24) hour basis those individual contractors who serve at, or travel at UNOPS’ expense to, a designated duty station worldwide, as long as the individual contractor is on official UNOPS business. 2.2.3 All individual contractors must—as a pre-condition for malicious acts insurance / compensation scheme coverage—comply with all UN security directives. Failure to comply with such security directives is grounds for termination of the ICA for cause. The office issuing the ICA shall ensure that the individual contractor is aware of all relevant security directives, including issuance of security clearance prior to travel. 2.2.4 Individual contractors are covered for incidents caused by malicious acts, subject to paragraph 2.0.2 above, under the following schemes: a) International individual contractors : are insured under a Malicious Acts Insurance Policy (MAIP), b) Local individual contractors on contract for a period of three (3) months or longer : are insured under a Malicious Acts Insurance Policy (MAIP) , and c) Local individual contractors on contract for a period of less than three (3) months : are covered under a UNOPS Compensation Scheme offering a one-time payment per occurrence. 2.2.5 Insurance premiums for above policies will be charged to the contract source of funding. 2.3 Health Insurance 2.3.1 UNOPS provides health insurance for all local individual contractors under a Group Medical, Death & Disability Insurance Plan, with the exception of those engaged on: a) b) c) d)

retainer contracts, and home-based contracts, and lumpsum contract, and contracts of less than three (3) months duration.

2.3.2 Dependents of local individual contractors are not covered by the health insurance. 2.3.3 For part-time workers, UNOPS will pay a prorated portion of the health insurance premium and the individual contractor must cover the remaining portion. For example, an eligible local individual contractor who works 50% of the regular daily working hours, the organization will pay 50% of the health insurance premium while the remaining 50% must be covered by the individual contractor and will be deducted from his/her fee.

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2.3.4 For international individual contractors , UNOPS has negotiated an optional health insurance scheme. Coverage is optional and insurance premiums must be fully paid by the international individual contractor. The international individual contractors have the option to extend this coverage, at their personal cost, to their dependents. For more information, please refer to HR Insurances. 2.3.5 Individual contractors not covered by a UNOPS-funded health insurance are responsible for obtaining adequate health insurance for themselves for the entire period of their contract. 2.3.6 International individual contractors on contracts of at least three months’ duration are required to submit proof of valid health insurance coverage prior to contract start. 2.4 Insurance Coverage on Contract Extension 2.4.1 When a local individual contractor agreement is initially issued for a contract period of less than three months and is subsequently extended so that the cumulative contract period reaches or exceeds three months, this will have an impact on the insurance coverage. The following paragraphs 2.4.2 and 2.4.3 will illustrate how. 2.4.2 When a regular local ICA is issued for a contract duration of less than three (3) months the contract holder shall be covered as follows: a) for service-incurred incidents: under UNOPS Compensation Scheme, and b) for malicious acts incidents: under UNOPS Compensation Scheme, and c) health insurance: The individual contractor is responsible for obtaining health insurance for him/herself. 2.4.3 When the local ICA described in paragraph 2.4.2 is subsequently extended to reach or exceed three (3) months, the contract holder will be covered under the following insurance starting on the effective date of the contract extension : a) for service-incurred incidents: under Group Medical, Death & Disability Insurance Plan, and b) Malicious acts: under a Malicious Acts Insurance Policy (MAIP), and c) Health insurance: under a Group Medical, Death & Disability Insurance Plan. 2.5 Insurance Coverage Overview Table 1: Insurance Coverage for Individual Contractors

International ICA

Local ICA

Regular

Home-based, retainer or lumpsum Regular

≥ 3 months

Home-based, retainer or lumpsum AI/HRPG/2010/01 - ICA

Serviceincurred Service-Incurred Injury, Illness/Death Insurance No*

Group Medical, Death & Disability Insurance Plan No*

Malicious Acts Malicious Acts Insurance Policy

Health insurance No

No*

No

Malicious Acts Insurance Policy

Group Medical, Death & Disability Insurance Plan No

No*

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Local ICA < 3 months

Regular

UNOPS Compensation Scheme No*

UNOPS Compensation Scheme No*

No

Home-based, No retainer or lumpsum * Individual contractors who are engaged to provide services under a home-based, retainer or lumpsum contract are ineligible for coverage against service-incurred illness, injury or death and ineligible for coverage against incidents caused by malicious acts, except when they travel as part of the performance of services under the individual contractor agreement and/or when they are requested to perform their services at a UNOPS office or another approved work location. 2.6 Statement of Medical Fitness for Work 2.6.1 Local individual contractors must—for health insurance purposes—submit a “Statement of Medical Fitness for Work for Local Individual Contractors” from a recognized physician and take full responsibility for the accuracy of that statement. Said statement must be submitted prior to the effective date of the contract or contract amendment that provides for the insurance coverage. Local individual contractors on contracts of less than three (3) months, who are not provided health insurance, will not be required to submit such statement, but will be required to do so upon contract extension if the cumulative contract period exceeds three (3) months. 2.6.2 International individual contractors on contracts of three (3) months or longer must submit a “Statement of Medical Fitness for Work for International Individual Contractor” from a recognized physician prior to commencement of work and take full responsibility for the accuracy of that statement. Said statement should indicate whether the individual is in good health, fit for work, fit to travel, and has had the required inoculations (as applicable) for the country/countries to which the individual is to travel. For international individual contractors travelling to conflict areas, the hiring unit may request a “Statement of Medical Fitness for Work” even if the contract period is less than three (3) months. 2.6.3 The above statements are valid for four (4) years. Should the services of the individual contractor be required for more than four (4) years, a new Statement of Medical Fitness must be provided. The individual contractor may, however, at any time be requested to undergo a medical examination at UNOPS’ expense. 2.6.4 Costs related to obtaining a Statement of Medical Fitness will be reimbursed for local individual contractors. For international individual contractors, this cost will be the responsibility of the individual contractor. 2.6.5 Individual contractors who have retired from a staff member post must undergo a full UN medical examination, including x-rays, and obtain medical clearance from a UN approved 2 physician prior to taking up their assignment .

3.0 Absence Management 3.0.1 This section describes working hours and leave provisions in place for individual contractors. 3.0.2 Individual contractors engaged on retainer and “lumpsum” contracts will be ineligible for leave provisions described in this section.

2

ST/AI/2003/8 section 5.3.


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3.1 Working Hours 3.1.1 The standard work week in UNOPS Headquarters is 40 hours per week, five days a week, 8 hours per day. Standard work weeks are established at each duty station where UNOPS operates in coordination with the UN Country Team. 3.1.2 Individual contractors will generally not be requested to work more than the standard work week at their duty station, unless otherwise specified in the contract. 3.1.3 The average number of working days in a calendar month depends on the established work week as follows: a) When the established work week is a five (5)-day work week, the average number of working days in the calendar month is 21.75 days; and b) When the established work week is other than five (5) days, the average number of working days in the calendar month must be adjusted, e.g. where a five-and-a-half (5.5)-day work week is established 24 working days constitute a month, and where a six (6)-day work week is observed 26 working days constitute a month. 3.2 Overtime 3.2.1 Individual contractor agreements in the specialist category (local and international) do not provide for overtime pay. When exigencies of service permit and subject to prior approval by the supervisor, occasional compensatory time off may be granted to individual contractors in the specialist category, who have been required to work substantial or recurrent periods of overtime. 3.2.2 Individual contractor agreements in the support category (local) with a duration of three (3) months or longer allow for the granting of overtime compensation. Overtime compensation may be granted in the form of overtime pay or compensatory time off, where compensatory time off is the preferred option. Overtime compensation may only be granted for hours worked in excess of forty (40) hours per week (or in excess of the established work week, if this is different) and subject to prior approval by the supervisor. Overtime compensation may be up to forty (40) hours per month. 3.2.3 Overtime pay is subject to availability of funds and supervisors must approve overtime pay in writing (using the standard UNOPS template or, if the supervisor is an external client, using any other standard format that provides all relevant information) in advance of any performance of extra work. Where a written approval cannot be obtained in advance, a verbal approval must be obtained and written approval provided as soon as possible thereafter. Overtime compensation, whether overtime pay or compensatory time off, will be granted at the contractor’s normal work rate (one hundred (100) per cent) regardless of whether the contractor is on full- or part-time. 3.2.4 Periods of overtime worked which are less than half an hour in any given day are disregarded. 3.3 UN Holidays and Weekends 3.3.1 Individual contractors (local and international) may observe weekends and UN official holidays without any reduction in their monthly fee. 3.3.2 Under special circumstances (e.g. contracts of less than one (1) month) where individual contractors are expected to work during weekends and on UN holidays, this requirement must be specified in the individual contractor agreement.


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3.4 Sick Leave (SL) 3.4.1 International individual contractor agreements do not provide for paid sick leave. 3.4.2 Local individual contractor agreements with a duration of three (3) months or longer provide for sick leave of two (2) working days per month, which may be accumulated during the contract year. 3.4.3 A medical certificate from a recognized physician is required as documentation of any sick leave of more than three (3) consecutive working days. For sick leave days over and above three (3) days in any rolling six (6)-month period, medical certification is required, regardless of whether it is taken as consecutive or separate days. For examples, please refer to Annex 1. 3.4.4 In the event that an individual contractor surpasses the sick leave limit in the contract period, the excess period will be charged against accrued annual leave. If annual leave has been exhausted, excess sick leave is unpaid. 3.4.5 Where, according to above, the individual contractor agreement does not provide for paid sick leave, managers should exercise the highest possible degree of flexibility in accepting unpaid leave due to illness (see para. 3.8). Only in such cases where the extent or timing of absences prevents the individual contractor from delivering the services as specified in the terms of reference may the manager consider a termination of the contract due to illness. 3.4.6 Accumulated sick leave days are not carried over from one contract year to the next. 3.4.7 Unused sick leave is not commutable to cash. 3.5 Annual Leave (AL) 3.5.1 Individual contractor agreements (local and international) with a duration of three (3) months or longer provide paid annual leave of two-and-a-half (2.5) working days per month for rest and recuperation purposes, which may be accumulated during the contract period. 3.5.2 All annual leave must be taken within the period of the individual contractor agreement. When the ICA is extended for an additional period, the individual contractor may carry over accumulated annual leave days to the subsequent contract period. However, a maximum of eighteen (18) days of annual leave can be carried over as of the annual leave cut-off date of 1 April of any given year. 3.5.3 Unused annual leave is not commutable to cash. 3.6 Maternity Leave 3.6.1 International individual contractor agreements do not provide for paid maternity leave. 3.6.2 Local individual contractors of six (6) months or longer provide for 16 continuous weeks of paid maternity leave. 3.6.3 Individual contractors must submit the request for maternity leave at least three (3) months prior to its start and the request should be accompanied by a certification from a doctor or midwife stating the Expected Date of Delivery (EDD). 3.6.4 Maternity leave must begin between two (2) and six (6) weeks prior to EDD and be taken in one consecutive period. AI/HRPG/2010/01 - ICA

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3.6.5 Maternity leave must fall within and be taken during the contract period. Where maternity leave has started during the contract period but the contract is due to expire during the period of the maternity leave, the contract will be extended to cover the full sixteen (16)week duration of the maternity leave. No leave will accumulate during the extended period. 3.7 Paternity Leave 3.7.1 International individual contractor agreements do not provide for paid paternity leave. 3.7.2 Local individual contractors of six (6) months or longer provide four (4) weeks of paid paternity leave, provided that the local individual contractor has had at least six (6) months of service with UNOPS at the time of the birth of the child. 3.7.3 Paternity leave may be taken in either one (1) period or two (2) periods of equal duration during the first twelve (12) months from the birth. 3.7.4 Individual contractors must submit the request for paternity leave at least three (3) months prior to the expected start of paternity leave and the request should be accompanied by a certification from a doctor or midwife stating the Expected Date of Delivery (EDD) or a copy of the child’s birth certificate. 3.7.5 Paternity leave is limited to one (1) occurrence per twelve (12) months, regardless of the number of children born during that twelve (12)-month period, and can be used a maximum of six (6) times during the total engagement within the UN system. 3.7.6 Paternity leave must fall within and be taken during the contract period. 3.8 Unpaid Leave 3.8.1 Managers may exercise flexibility in allowing unpaid leave at the individual contractor’s request, subject to exigencies of service. 3.8.2 Unpaid leave shall not be granted until paid leave provisions, when applicable, have been exhausted. Unpaid leave must be approved in advance by the supervisor. 3.8.3 Unpaid leave for a consecutive period of one (1) week or longer is to be avoided, except in the following exceptional circumstances: a) In connection with maternity leave; b) In relation to illness, as described in para. 3.4.5, and c) In emergency situations as defined by the HRPG Director. 3.8.4 Annual and sick leave will not accumulate during unpaid leave periods of one (1) month or longer, nor will health insurance coverage be provided for local individual contractors on unpaid leave for one (1) month or longer. The individual contractors are responsible for obtaining adequate health insurance for themselves during periods of unpaid leave of one (1) month or longer.


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3.9 Absence Management Overview Table 2: Absence Management for Individual Contractors*

Support Overtime UN holidays and weekends Sick Leave

Yes, for contracts ≥ 3 months Yes

Local Specialist

International

No

No

Yes

Yes

Yes, for contracts ≥ Yes, for contracts ≥ No 3 months: Max. 2 3 months: Max. 2 days per month days per month Annual Leave Yes, for contracts ≥ Yes, for contracts ≥ Yes, for contracts ≥ 3 3 months: Max. 2.5 3 months: Max. 2.5 months: Max. 2.5 days days per month days per month per month Maternity & Yes, for contracts ≥ Yes, for contracts ≥ No Paternity Leave 6 months: Max. 16 6 months: Max. 16 weeks maternity or 4 weeks maternity or 4 weeks paternity weeks paternity leave leave * For retainer and lumpsum contracts, none of above provisions apply, as work schedules and deliverables for such contracts are determined on a case-by-case basis. 3.10 Leave and Overtime Provisions on Contract Extension 3.10.1 When a local individual contractor agreement is initially issued for a contract period of less than three months and is subsequently extended so that the accumulative contract period reaches or exceeds three months, this will have an impact on the leave and overtime provisions. The following paragraphs 3.10.2 – 3.10.4 illustrate how. 3.10.2 When an individual contractor agreement is issued for an initial contract duration of less than three (3) months the contract holder shall not be granted any paid leave. However, the individual contractor may request unpaid absences and such will be granted within reasonable limits subject to exigencies of service and advance approval by the supervisor. 3.10.3 When an individual contractor agreement of an initial duration of less than three (3) months is subsequently extended to reach or exceed three (3) months, provisions for AL and SL will start to apply subject to the eligibility as specified in paragraph 3.0.2 and sections 3.4 and 3.5 above, from the effective date of the contract extension. Leave is not accumulated retroactively. 3.10.4 Similarly when a local individual contractor agreement at support level is issued for an initial contract duration of less than three (3) months, the contract holder shall not be subject to overtime pay. However, when exigencies of service require flexibility, compensatory time off may be used. When the individual contractor agreement is subsequently extended to reach or exceed three (3) months, the contract holder is eligible for overtime pay from the effective date of the contract extension. 3.11 Computation of Annual and Sick Leave 3.11.1 Absence from work of two (2) hours or longer and up to four (4) hours shall be counted as one half (0.5) day. Absence of more than four (4) hours shall be counted as one (1) full day. Authorized absences of less than two (2) hours taken by the individual contractor at a time


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mutually agreeable to the individual contractor and the supervisor do not need to be recorded as annual leave. 3.11.2 For contract periods of less than one (1) full calendar month, and where the contract start and end date fall in separate months, leave provisions shall be calculated as follows (subject to paragraph 3.0.2 and sections 3.4 and 3.5): nd

th

a) When the contract start date falls between the 2 and the 16 of the month: Two (2) days AL and one (1) day SL for that calendar month. th

b) When the contract start date falls on the 17 of the month or later : One (1) day AL and one (1) day SL for that calendar month. st

th

c) When the contract end date falls between the 1 and the 16 of the month: One (1) day AL and one (1) day SL for that calendar month. d) When contract end date falls on the 17th of the month or later, but not on the last day of the month: Two (2) days AL and one (1) day SL. 3.12 Leave Provisions While on Part-time Status 3.12.1 Individual contractor agreements issued for part-time work shall provide for annual and sick leave on a pro-rated basis, as follows: a) When the part-time work is evenly distributed in the week (e.g. if the individual contractor works 50%, equal to twenty (20) hours per week, four (4) hours per day), then the leave provision would be two-and-a-half (2.5) part-time days of AL and two (2) part-time days of SL per month. A part-time day in this example would consist of four (4) working hours, and b) When the part-time work is not distributed evenly (e.g. if a person works 50%, equal to twenty (20) hours per week, two (2) full days and one half (0.5) day per week), then the leave provision would be one-and-a-quarter (1.25) full-time AL days per month and one (1) full-time SL day per month. A full-time day in this example would consist of eight (8) working hours. 3.12.2 Maternity Leave and Paternity Leave under part-time status would be calculated as sixteen (16) weeks of Maternity Leave at part-time pay or four (4) weeks of Paternity Leave at part-time pay.

4.0 Travel Arrangements 4.0.1 International individual contractors may be required to undertake travel, either in conjunction with the start of the assignment (“travel to join”) or at the end of the assignment (“repatriation travel”). This section outlines the rules and procedures applicable to such travel. 4.0.2 For rules and procedures applicable to work-related trips away from the duty station (“official duty travel”) of individual contractors, please refer to AI/CSG/2010/03 “Official Duty Travel - individual contractors”. 4.1 Eligibility 4.1.1 Travel to join is the travel of an international individual contractor from his/her place of residence at the time of hire to the duty station. Repatriation travel is the reverse travel of the


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international individual contractor from the duty station to his/her place of residence at the time of hire. 4.1.2 Travel to join and repatriation travel applies only to international individual contractors who are actually required to travel. Hence international individual contractors who are working from home or who are residing at the duty station, or within commuting distance from the duty station, at the time of hire are ineligible for travel to join and individual contractors who remain at the duty station after contract completion are ineligible for repatriation travel. 4.1.3 When an international individual contractor is offered a new contract at the same duty station before the prior contract expires, and when there will be no break between the two contracts, he/she is ineligible for repatriations travel and travel to join between the two contracts. Taking (or granting) leave of absence immediately before contract expiry or postponing contract start under the new contract in order to create an avoidable break between contracts will have no effect on the in-eligibility for travel. 4.1.4 Individual contractors are ineligible for travel to join / repatriation travel in connection with contract extensions. 4.2 Standards for Travel, Route and Mode of Transportation 4.2.1 Standards of travel, route and mode of transportation on travel to join and repatriation travel shall be the same as for official duty travel. For more information, please refer to AI/CSG/2010/03. 4.3 Travel Payments 4.3.1 UNOPS will make payments for any travel to join and repatriation travel which has been authorized by UNOPS. The travel cost, i.e. ticket cost, (stopover) DSA, terminal expenses, visa costs, cost of inoculations, and other miscellaneous expenses will be covered as per the payment terms described in AI/CSG/2010/03. 4.3.2 Before making payment to the international individual contractor for travel to join, the hiring unit must make an assessment as to whether the duration of the contract (and its future extensions) will make it feasible to pay one return ticket to cover both travel to join and repatriation travel or if only travel to join should be paid at the start of the contract. It must be clearly communicated to the individual contractor what the payment is intended for. 4.4 Visa and Travel Documents 4.4.1 International individual contractors who work in a country other than their own must themselves arrange for required visas and work permits. UNOPS may facilitate this process where possible. Foreseeable costs related to visas and work permits are included in the fee payable to the contractor. Any visa cost related to travel unforeseen at the time of signing the contract may be claimed through submission of a travel/expense claim and supporting documents. 4.4.2 A G-4 visa is normally required for work in the USA. The G-4 visa grants a nonimmigrant status to persons hired by international organizations while stationed on official business in the United States. Persons on G-4 visa are required by the United States authorities to relinquish any other visa status in the United States that they may have held previously. 4.4.3 For identification purposes a UN Certificate may be issued on request for international individual contractors who travel at UNOPS expense, in accordance with Section 26 of the Convention on the Privileges and Immunities of the United Nations of 13 February 1946. For


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more information, please refer to Guide to the Issuance of UN Travel Documents. A UN Laissez-Passer cannot be issued to an individual contractor. 4.5 Inoculations 4.5.1 Individual contractors traveling to certain countries must have those inoculations designated by the UN Medical Director. The hiring unit should refer the individual contractor in advance to relevant information (e.g. the WHO website) about required inoculations so that his/her personal physician can attest to those inoculations having been administered as part of the certification described above in section 2.6 “Statement of Medical Fitness for Work”. 4.5.2 The cost of required inoculations will be covered by UNOPS to the extent that they are related to the performance of services under the ICA. Expenses will be covered by separate payment as per section 4.3 above. 4.6 Security Clearance and Travel Notification 4.6.1 Individual contractors travelling to countries with a security phase in effect must obtain a travel security clearance. Individual contractors are also required to notify the Designated Officials in the destination country of their arrival and departure times for travel even to countries with no security phase in effect. For more information on security clearance and notification, please refer to AI/EO/2009/02. 4.6.2 All requests for security clearance and travel notification are managed by DSS through the web-based Integrated Security Clearance and Tracking System (ISECT) on the DSS website at: http://dss.un.org. a) Individual contractors are personally responsible for the submission of their security clearance requests and travel notification to the UN Department of Safety and Security (DSS), and b) UNOPS will do everything possible to facilitate the process of requesting security clearance / travel notification and will ensure that the process is complied with before a contract is issued to an international individual contractor in relation to travel to join. 4.6.3 Furthermore, individual contractors required to work at UNOPS premises or travel at UNOPS expense are required to complete the “Basic Security in the Field” course. Individual contractors working in or traveling to a duty station in a security phase are required to complete the “Advanced Security in the Field” course. Said security courses must be completed prior to the commencement of their service—or at the latest within two weeks of arrival. The courses are available at UNOPS internet at www.unops.org/security. A copy of the course certificate must be forwarded by the individual contractor to the hiring unit within ten (10) working days of contract start. 4.6.4 For more information on safety and security please refer to the UNOPS intranet site on Safety and Security.

5.0 Engagement of Former and Retired Staff Members 5.0.1 In selection and engagement of individual contractors, it is important to note that the engagement of candidates, who currently work or previously worked as UN staff members, is subject to special rules. This section briefly summarizes those rules. 5.1 Conditions for Engaging Former Staff 5.1.1 Former staff members may be engaged on an ICA provided they are not applying for the position they retired from and they did not separate from UNOPS or another organization


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of the UN common system for any of the following reasons: - Abandonment of post; - Dismissal for misconduct; - Non-renewal of appointment for unsatisfactory service; - Termination of appointment for unsatisfactory service, or - Resignation in lieu of disciplinary action. 5.1.2 Before engaging former staff members, the hiring unit must check the reasons for separation: a) For internationally-recruited staff members , check with the HR focal point at the UNOPS Headquarters, and b) For other staff members, check with the relevant HR/Operations Manager at the duty station where they served before separation. 5.2 Conditions for Engaging Retired Staff in Receipt of a Pension Benefit 5.2.1 Former staff members in receipt of a pension benefit from the UNJSPF may be retained under an ICA in accordance with established UN rules and practices concerning the employment of retirees 3. At the time of issuing this instruction, the procedures preclude the engagement of retirees during the first three (3) months following their separation from service and limit their assignment thereafter to a maximum of six (6) months per calendar year. In addition, no former personnel in receipt of UNJSPF pension benefits may receive more than USD 22,000 per calendar year in emoluments from the UN system. For a narrow category of language-service personnel working for UN Conference Services the limit is USD 40,000 per calendar year. The USD 22,000 annual limit applies to the gross amount of the fee under an ICA but does not include travel, terminal expenses, and Daily Subsistence Allowance (DSA) payments. 5.3 Break in service 5.3.1 Staff members may not be separated for the purpose of engaging them on an ICA. Any offer of an ICA to staff members who have separated by resignation or following contract expiration, must be made after a break in service of at least one (1) month. 5.3.2 Interns and volunteers shall not be subject to a mandatory break when moving from an internship or volunteer assignment to ICA. 5.3.3 When a former and retired staff member returns to service through engagement on an ICA, the hiring unit must follow UN rules pertaining to re-engagement of such former and retired staff members (see ST/AI/2003/8). According to the rules applicable at the time of issue of this Policy the following restrictions apply: a) Re-engagement of staff members shall begin only after a period of at least three (3) months has elapsed since the date of retirement, b) If the separation was an “agreed termination,” the former staff member to be engaged on an ICA may only be re-engaged after a period of thirty-six (36) months from the date of separation from service (or once the break period stipulated in their separation agreement has elapsed, if different).

3

At the date of issuing these guidelines, the relevant UN instruction ST/AI/2003/8 applies. Hiring units should carefully read the instructions in full prior to engagement of former or retired staff. AI/HRPG/2010/01 - ICA

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5.4 Determining Fees for Former Staff M embers 5.4.1 When a staff member is re-engaged on ICA, the fee must not be based on the level of remuneration applicable before separation, but rather on the nature and complexity of the assignment to be performed.

6.0 Engaging Close Relatives of UN Personnel 6.0.1 Husbands/wives of UNOPS personnel may be engaged on ICA, provided one spouse is not under direct supervision by the other. When engaging individual contractors for clients, the same principle will be applied unless otherwise instructed by the client. 6.0.2 Contracting close relatives of UNOPS personnel (father, mother, son, daughter, brother or sister) may be considered on an exceptional basis, and only where another person equally qualified cannot be engaged. When engaging individual contractors for clients, the same principle will be applied unless otherwise instructed by the client. Notwithstanding the foregoing, the hiring unit must at all times ensure adherence to the requirements in the Staff Regulations and Rules and UNOPS Procurement Manual relating to conflict of interest.

7.0 Pre-requisites for Starting the Selection Process 7.0.1 When a need for engaging an individual contractor has initially been identified, there are a number of pre-requisites that must be complied with prior to the start of the selection process. The following paragraphs describe these pre-requisites. 7.1 Checking Availability of Funds 7.1.1 Befor e the selection process starts a budget must be prepared and the manager of the 4 hiring unit should ensure that sufficient funds for the services or activities are available and approved in the appropriate budget(s)/account(s). 7.1.2. The Hiring Unit should raise a requisition in Atlas for ICAs with an estimated value of USD 2,500 or above recording information about the chart field string that will be charged as well as the services to be availed of. The requisition shall be approved and budget checked by the Manager of the Hiring Unit, who has the relevant PA. 7.1.3 The potential impact of delays may justify a selection process to be initiated prior to confirmation of funds availability. However, no contract can be issued until funds have been received. 7.2 Terms of Reference 7.2.1 Another prerequisite for the selection process to start is the definition of the needs in terms of the services required, tasks to be performed, etc. These needs must be described in the Terms of Reference (TOR), using the standard template. 7.2.2. The TOR will be the principal guideline for identifying qualified candidates, determining fees, evaluating performance, and ultimately certifying that services or activities have been performed satisfactorily so fees can be paid. 7.2.3 The TOR will be annexed to, and form an integral part of, the ICA contract.

4

The manager of the hiring unit can be a Regional Director/Operations Centre Manager, Project Manager, Portfolio Manager, Chief Technical Advisor, a HQ Director or similar function – depending on the hiring unit. AI/HRPG/2010/01 - ICA

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7.2.4 The TOR must be comprehensive and explicit, and must clearly reflect the following points: i)

Basic data: Functional title, ICA level, duty station(s), duration of the assignment, name of supervisor; ii) General context and background; iii) Purpose and Scope of work: a concise and detailed description of services or tasks to be performed, including expected travel; iv) Monitoring and progress controls: Clear description of measurable outputs, including reporting requirements, milestones, periodicity, format, deadlines and final product(s) (e.g. survey completed, workshop conducted, data collected, reports written, etc); v) Qualifications and experience: a clear description of the required degree of expertise and qualifications including specialized knowledge, language needs, experience, competencies, and performance or other standards. Care must be taken to ensure that the required qualifications and experience are fully in line with the ICA level; 7.2.5 For contracts below USD 50,000, the details of the TOR can be limited to those points essential for the assignment. 7.2.6 The TOR is prepared by the hiring unit and shall be accepted by the manager of the hiring unit. It is advisable to consult with HR when formulating new TORs. The TORs must be approved in writing by the relevant Procurement Authority (see Table 3 below). 7.3 Establishing a Roster of Qualified Contractors 7.3.1 A roster of qualified contractors may be established at Regional Offices, Operations Centres, Project Centres, and at Headquarters. 7.3.2 Individuals on the roster must be identified in accordance with either of the following criteria: a) Individual has previously worked for UNOPS and his/her performance was satisfactory (previous track record should clearly indicate the area in which the candidate has worked for UNOPS and include a satisfactory, certified performance evaluation form), or b) Individual has within the past twelve (12) months been through a selection process for a similar UNOPS vacancy for which he/she was unsuccessful but nevertheless evaluated as a qualified candidate (documentation from that selection process clearly indicating the areas for which the individual is qualified must be available), or c) Individual has within the past twelve (12) months submitted an unsolicited application or CV, has been screened for qualifications and prior work experience and has been found potentially suitable. 7.3.3 The purpose of the roster is to speed up the sourcing of fully qualified candidates in cases where this is required. For more details on how to use the rosters in the selection process, please refer to Sections 8.2 “Limited Competition” and 15.0 “Special Measures”. 7.3.4 A roster may be maintained as a compilation of hardcopy documents or as electronic data.


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8.0 Selection 8.0.1 Selection refers to the process of soliciting applications, evaluating potential candidates to deliver services under a specific Terms of Reference and identifying the best available candidate. In order to ensure openness, transparency, and objectivity as well as engagement of the best-qualified candidate for the assignment, individual contractors should be selected through a competitive process as practicable. 8.0.2 There are three distinctly different methods of selecting an individual contractor to perform in accordance with a specific Terms of Reference: (a) A competitive selection process, which can either be i. Open competition, or ii. Limited competition, and (b) A pre-selection by a client (source of funding), and (c) An exemption to the use of formal methods of solicitation. 8.0.3 Competitive selection procedures must attempt to identify and consider at least three qualified and suitable candidates for each assignment unless an exception to the use of formal methods of recruitment is justified. If a proper competitive selection process has been undertaken but results in only one or two qualified and suitable candidates applying for or being interested in the assignment, the process is still considered to be competitive. However, repeated cases of obtaining less than three qualified and suitable candidates should be investigated in depth to ensure that they did not result from a sub-optimal selection process. 8.04 In cases where a competitive process was undertake, but the recommended candidate does not accept the contract terms (e.g. the proposed fee), it is permitted to select the second best rated available candidate, provided that this candidate’s qualifications are at or above the minimum threshold. 8.0.5 In cases where the contract value is below USD 50,000 and a competitive process was conducted but did not result in the identification of adequately qualified individuals, it is permitted to select a less qualified candidate at a lower level who could perform some but not all of the functions envisaged in the TOR. In such case, the TOR should be revised to reflect the lower ICA level and the revised functions. 8.0.6 In the selection of individual contractors, every effort must be made to ensure that women and men have equal opportunities for selection and that a geographical balance among qualified candidates is achieved. 8.0.7 When deemed feasible, the vacancy announcement or request for confirmation of interest may request applicants/candidates to submit a financial proposal indicating an allinclusive fee (daily, monthly, lump sum or unit price depending on the c ontract duration and 5 type). This option could be particularly relevant for lump sum contracts. 8.1 Open Competition 8.1.1 Open competition is always the preferred selection method in all cases, and is a requirement for contracts where the total contract value amounts to USD 50,000 or more, except in cases of pre-selection (see 8.3) and those where an exemption to the use of formal 5

If financial proposals have been received from the candidates, said proposals form the basis for fee negotiation. The hiring unit should verify that costs in the proposal are in accordance with established budget and fee rates. The receipt of a financial proposal does not affect the rules applicable to fee setting outlined in section 12. AI/HRPG/2010/01 - ICA

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methods of solicitation can be justified in accordance with UNOPS Financial Regulations and Rules (see 8.4). 8.1.2 Open competition is defined as a process where the following steps have been complied with: a) A vacancy announcement is posted (using a standard template) and remains open for at least ten (10) working days from the date of posting: i. Vacancies for international individual contractors must be advertised on the UNOPS website and may additionally be advertised or distributed in any other place or manner that is deemed feasible, e.g. in specialized magazines or on websites or networks of other organizations or clients, and ii. Vacancies for local individual contractors must be advertised and distributed through whichever channel is expected to lead to the most useful responses, e.g. local newspapers, local radio, websites of other organizations or clients or similar; b) Applicants will be requested to submit an application including a letter of interest and an updated United Nations Personal History Form (P.11); c) The hiring unit screens all applications and prepares a shortlist of the best three to five (3-5) candidates based on the criteria stated in the vacancy announcement. i. The short-listing process should be documented in the form of a matrix of all applicants (using a standard template), indicating who have been long-listed (those who meet minimum job requirements as stated in the vacancy announcement) and short-listed (those who are invited for interview). The matrix should provide an indication of the reasons for short-listing or not short-listing, and where this is not obvious, a note should be made for the record; d) Candidates shortlisted for interview should be invited at least twenty-four (24) hours in advance of said interview. e) Interviews are conducted with short-listed candidates. i. The hiring unit establishes an interview panel, consisting of a Chair (preferably the hiring manager), a technical specialist, and preferably an HR person; ii. The interview panel shall agree on the questions the candidate should be asked and the skills and knowledge that candidates are expected to demonstrate in response thereto. Questions should clearly relate to the established evaluation criteria. In order to ensure fairness, candidates shall be asked an identical set of questions, which may be supplemented by probing questions depending on how the interview progresses; iii. Prior to interviews, an evaluation grid is prepared listing evaluation criteria as described in the vacancy announcement, the weight (score) allocated to each criterion, and a minimum threshold. The weight should reflect the importance of each criterion, and the minimum threshold should indicate the minimum total score at which the candidate would be seen to meet the job requirements; iv. The interview panel must assess and rate shortlisted candidates based on their letters of interest and P.11 and their performance at the interview by use of the evaluation grid; v. The interviews must be documented in the form of interview minutes, using the standard template, which must be signed by each panel member. f) Reference checks are conducted and documented using the standard templates. Where applicable, it is strongly encouraged to review past performance evaluations. g) The candidate receiving the highest scoring shall be the recommended candidate, unless reference checks or performance evaluations point to a different conclusion.


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8.2 Limited Competition 8.2.1 Limited competition may be applied instead of open competition in cases where the total contract value (including planned contract extensions in the future) amounts to less than USD 50,000, and speed of selection is of the essence, and the delay or cost incurred by posting an advertisement may have negative implications on the UNOPS operations. 8.2.2 Limited competition is defined as a process where the following steps have been complied with: a) At least three (3) qualified candidates are identified from an established roster (see 7.3 above); b) The identified candidates are presented with the Terms of Reference for the assignment and requested to confirm their interest in writing; c) Interested candidates are asked to provide an updated P.11 (or CV) unless UNOPS already has this information on file. d) A desk review is undertaken by the hiring unit. i. Prior to reviewing the applications, the hiring unit prepares an evaluation grid listing evaluation criteria as described in the TOR, the weight (score) allocated to each criterion, and a minimum threshold. The weight should reflect the importance of each criterion, and the minimum threshold should indicate the minimum total score at which the candidate would be seen to meet the job requirements. ii. The hiring unit establishes a review team, preferably consisting of an HR person, a technical specialist and the hiring manager. iii. The review team assesses and rates each candidate based on his/her letter of interest and P.11 (or CV) using the evaluation grid. iv. The desk review must be documented in the form of desk review minutes using the standard template, which must be signed by each review team member. e) Reference checks should be conducted if deemed relevant. Where applicable, it is strongly encouraged to review past performance evaluations. f) The candidate receiving the highest scoring shall be the recommended candidate, unless reference checks or performance evaluations point to a different conclusion. 8.2.3 Although under limited competition the evaluation of candidates may be done through desk review, it is recommended to replace the desk review with interviews whenever feasible. 8.2.4 Where the total contract value (including planned contract extensions in the future) is below USD 2,500: a) Qualified candidates may be identified through informal methods of solicitation, such as by recommendation from UNOPS colleagues or business partners, i.e. not necessarily from a roster; b) In some cases, e.g. when the services to be rendered consist of manual labour, the need for a P.11 or CV may be replaced by personal identification (passport, driver’s license, ID card or similar). 8.3 Pre-selection 8.3.1 UNOPS FRR allow for the pre-selection of individual contractors by the funding source. Rule 118.02 (e) states that “ Pursuant to the project agreement and subject to review by a contracts and property committee(s), where necessary in accordance with these Financial Regulations and Rules, the Executive Chief Procurement Officer may authorize the issuance of contracts in reliance on the prior selection of a contractor or implementing partner by the funding source".


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8.3.2 Pre-selection of an individual contractor by the funding source must be “pursuant to the project agreement”. This means that the individual contractor must be carrying out activities which are expressly allowed, intended and are in line with accountability requirements in accordance with the project agreement. This also means that the pre-selected individual contractor must be mentioned by name in the project agreement or in an official letter as described in paragraph 17 of AI/PM/2009/01 (“Engagement Acceptance”). 8.3.3 Prior to UNOPS accepting the request from a funding source to engage a specified individual contractor, the following principles must be complied with: a) the funding source must confirm that in selecting the contractor, it has complied with its applicable regulations, rules and procedures, and b) the funding source must agree that, due to the selection of the individual contractor being outside UNOPS’ control, UNOPS carries no liability for the performance of the individual contractor. 8.3.4 Special care has to be taken in the event where pre-selection is carried out using the rules of a non-United Nations organization, and it takes place after endorsement of the project document. For further details please consult paragraph 16 c) of AI/PM/2009/01 (“Engagement Acceptance”). 8.4 Exceptions 8.4.1 In accordance with Financial Rule 118.05, the Executive Chief Procurement Officer or authorized personnel may determine, for a particular selection activity, that using formal methods of solicitation is not in the best interest of UNOPS and its clients. The cases where such exception to the use of formal methods of solicitation may be granted are listed below: 1) Value is below the specified monetary threshold FRR 118.05 (a) i: “The value of the procurement is below a specified monetary threshold established for formal methods of solicitation” •

•

When the accumulated contract value is below USD 2,500 in a three month period, it is not required to use formal methods of solicitation when selecting an individual contractor. An individual contractor agreement which is initially awarded under this exception may not be extended or otherwise amended to bring the accumulated contract value to exceed USD 2,500 in a three month period.

Justification required: Confirmation that no future contract or contract extension for the same project or purpose is expected to bring the accumulated contract value to exceed USD 2,500 in a three month period. 2) Single source selection FRR 118.05 (a): ii: “There is no competitive marketplace for the requirement, such as where a monopoly exists; where prices are fixed by legislation or government regulation; or where the requirement involves a proprietary product or service” •

•

“Proprietary service” refers to situations where only one source can reasonably meet the needs of UNOPS or its client. Single Source Selection refers to certain circumstances where it may be appropriate to consider a single candidate as the sole suitable source for selection. This may occur when the candidate is the only available source of service based on his/her reputation and leadership in the practice area at an acceptable level of quality, cost, and time.


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Justification required: Explanation of why other potential candidates do not exist and why the level of quality, cost and/or time is considered reasonable. 3) Offer for an identical requirement has been obtained competitively FRR 118.05 (a) v: “Offers for identical requirements have been obtained competitively within a reasonable period and the prices and conditions offered by the proposed contractor remain competitive” •

The “reasonable period” within which a competitive selection process was undertaken should be limited to 12 months, unless otherwise justified.

Justification required: Summary of the previous competitive selection process and its outcome (interview or desk review minutes), reasonableness of costs and prevalent market rates in the area. 4) Formal solicitation has not produced satisfactory results FRR 118.05 (a) vii: “A formal solicitation process has not produced satisfactory results within a reasonable prior period” •

•

The “prior period” refers to the period having elapsed since the closing date for submissions under the previous competitive process which resulted in satisfactory results. The length of the “reasonable prior period” for the applicability of this exception ground will vary depending on the nature and type of services, but should under no circumstances exceed six (6) months. The hiring unit must ensure that sufficient research was done to be fully satisfied that a new solicitation exercise would not yield satisfactory results and that all facts are stated in the justification note.

Justification required: Summary of the previous competitive process and its outcome, reasonableness of costs and prevalent market rates in the area. 5) Genuine exigency for the requirement, FRR 118.05 (a) viii: “There is a genuine exigency for the requirement” •

The exigencies of service must be beyond the control of UNOPS i.e. emergency situations or force majeure, or other compelling circumstances which are not due to lack of planning or slow administrative process within UNOPS.

Justification required: Explanation as to how exceptions to the use of formal method of solicitation will meet the schedule and of the adverse impact the UNOPS operation would suffer if the delivery schedule were modified to permit the use of formal method of recruitment, confirmation of reasonableness of costs through comparing prices with previous contract prices, etc. justification for selecting one particular contractor as opposed to any other 6) Executive Chief Procurement Officer so determines 118.05 (a) x: “The Executive Chief Procurement Officer otherwise determines that a formal solicitation will not give satisfactory results.” •

The Executive Chief Procurement Officer has delegated the authority to the relevant Procurement Authority to determine that a formal selection process will not give satisfactory results and when, in the judgment of UNOPS, engaging in a new


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selection process will not be in the interest of UNOPS. For example in the following case: -

extension of contracts to ensure continuity of work; amendment of retainer contracts to increase the scope of work.

Justification required: Explanation as to why a new selection process would not give satisfactory results and confirmation of reasonableness of fees (i.e. that fee remains the same or that any adjustment is in line with section 12.6 “Adjusting the Fee). 8.4.2 Hiring units – and ultimately the Procurement Authorities - are held accountable for the use of exceptions to the use of formal methods of solicitation and must ensure that required documentation is available on file for all exceptions. 8.4.3 In each case of exception, a written justification for exception to the use of formal methods of solicitation is required, and must be clearly stated in the request for award.

9.0 Review and Award 9.1 Overall Procurement Authority 9.1.1 The Executive Chief Procurement Officer (ECPO) exercises overall corporate oversight in respect of all UNOPS procurement. The ECPO has the authority to award and sign contracts on behalf of the organization and is hereby defined as the Procurement Authority (PA). 9.2 Delegation of Procurement Authority 9.2.1 The Financial Regulations and Rules (FRR) define “Delegation of Authority” as the written statement of conditions, procedures, and terms that a delegate must follow in executing a delegated task. UNOPS personnel who are in possession of a delegation of authority to perform authorized actions within specified monetary values and time frames are called authorized personnel. Authorized personnel with a DOA to award and sign Individual Contractor Agreements is defined as a Procurement Authority (PA). 9.2.2 The ECPO may delegate procurement authority to a number of individuals. The individuals who have been delegated the authority award and sign ICAs on the basis of certain conditions and depending on the aggregate value become accountable for the actions and potentially liable for errors and misconduct when exercising such delegated authority. 9.2.3 The procurement authority is delegated by the ECPO to individuals and not to a function. As a result, individuals in acting capacity (e.g. Officer in Charge – OIC) must be granted proper delegation of authority in order to be able to exercise this authority until the official incumbent resumes his/her function. 9.2.4 The levels of delegated authority for different types of ICA-related activities in UNOPS are summarized in Table 3:


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Table 3: Levels of Delegated Procurement Authority6 LEVEL 1

LEVEL 2

LEVEL 3

LEVEL 4

USD

USD

USD

unlimited*

unlimited*

unlimited*

unlimited*

- Award of competitive ICA 8 - Award of pre-selection ICA

50,000

250,000*

500,000*

1,000,000*

- Award of exception ICA - Award of amendment of ICA

50,000

50,000

250,000*

250,000*

Sign awarded contracts, amendments and TORs

unlimited

unlimited

unlimited

unlimited

USD

USD

USD

USD

None

None

250,000*

250,000*

Activity

USD

Approve vacancy announcements 7

Exceptions to Procurement Rules : Approve retroactive/post-facto cases

9.2.5 The DOA values in Table 3 are up to but not including the amounts indicated for each level. 9.2.6 The DOA values for amendments, series of amendments, or series of contracts with the same individual contractor for the same project or purpose (see definitions in the next paragraphs), are the cumulative amounts (Annex 3 “Review and Award Matrix” provides a schematic overview and concrete examples): a) For amendments and series of amendments : since the start of the contract that is being amended, or b) For series of (independent) contracts : in the past 12 months, however c) If in the past 12 months an award was made by the ECPO after receiving written advice from HQCPC and a contract was issued to the individual contractor for the same project or purpose, the amount so approved by the ECPO for award and all preceding awards must be excluded for the purpose of calculating the cumulative amount; i.e. the most recent award made by ECPO after receipt of written advice from HQCPC will “reset the cumulative amount to zero”. 9.2.7 “Same project” means a project with the same Atlas project number. 9.2.8 “Purpose” is the specific services required from the individual contractor as described in the Terms of Reference. 9.2.9 The exercise of any authority that is marked with an asterisk (*) in Table 3 requires the pre-clearance of an HR Practice Advisor. In summary, pre-clearance is required at the following steps of the ICA engagement process: a) Vacancy announcement to be posted on the UNOPS internet, and 6

For clarification on the amounts and how they are calculated, please refer to paragraphs 9.2.5 through 9.2.8. 7 See paragraph 9.4.1. 8 Please consult the Administrative Instruction on Engagement Acceptance for information about the principles and methodology for pre-selection. AI/HRPG/2010/01 - ICA

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b) Submissions to LCPC and HQCPC, and c) Requests for award to the PA above USD 50,000 but below CPC threshold. 9.2.10 HR Practice Advisors, as defined in Organizational Directive 15 (“UNOPS Global Structure”), are designated by the Director, HRPG and empowered to represent the practice as strategic business partners for regions and/or other practices. However: a) In cases where the HR Practice Advisor rejects to pre-clear a request for award, the PA may escalate the case and request HQCPC review and ECPO award, regardless of the aggregate contract amount, b) In cases where the HR Practice Advisor rejects to pre-clear a vacancy announcement, the hiring manager is strongly encouraged to consult with the Director, HRPG before making final decision, for which he/she will be held accountable. 9.2.11 As per UNOPS FRR, the Executive Chief Procurement Officer may authorize personnel with delegated authority to approve sub-delegations. Post facto and retroactive cases cannot be sub-delegated. For further information on sub-delegation of procurement authority, please refer to the Procurement Manual. 9.3 Responsibility of the Procurement Authority 9.3.1 The Procurement Authority (PA) is authorized to perform the duties and responsibilities listed in Table 3 for all projects assigned to the business unit (or undertaken by one business unit on behalf of another business unit of UNOPS). 9.3.2 To uphold the principle of segregation of duties (see Chapter 1.7 of the Procurement Manual - Segregation of duties), the PA may not award ICA contracts or amendments thereof in instances where he/she has been directly involved in the carrying out of the selection process. All such cases must be referred upwards to the next level of Procurement Authority for award. Notwithstanding the above, the PA may exercise the remaining delegated authorities (e.g. approve VA, sign the awarded contract and TOR, etc. as per Table 3) in instances where he/she has undertaken the selection process. 9.3.3 A Procurement Authority cannot under any circumstances award a contract with a fee that exceeds the absolute maximum of the established fee ranges for international ICAs, without receiving prior written approval from the Director HRPG. For information on the established fee ranges for international ICAs, please refer to Table 5 and Table 6. 9.3.4 For further information on the responsibility of the Procurement Authority, please refer to the Procurement Manual. 9.4 Award 9.4.1 Award is the decision signifying approval to enter into contract with the selected individual contractor. Only individuals with procurement authority (see 91. and 9.2) can award an ICA. Contracts committee review is required prior to award in some cases (see section 9.5). An ICA is awarded when the relevant PA approves and signs the Note to the File or Request for Award. For cases being reviewed by a contracts committee, award takes place when the relevant PA approves and signs the committee’s recommendation for award of the ICA. 9.4.2 The PA will either award or not a contract to the selected individual contractor based on the recommendations received. An award may be made subject to the fulfillment of preconditions. 9.4.3 In cases where the PA chooses not to follow the advice of the contracts and property committee, the PA shall record the reasons for such a decision in a written statement to be AI/HRPG/2010/01 - ICA

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kept on file together with the minutes of the contracts and property committee meeting for audit purposes. Only the ECPO has authority to award a contract contrary to a contracts and property committee recommendation. Regional Directors with an LCPC must submit to the ECPO for direct review and possible approval all cases where they would like to award a contract contrary to the advice of their LCPC. 9.4.4 A note to the file or request for award must be kept on file for future reference together with the signed award or justification not to award, by the appropriate PA. For cases reviewed by a contracts and property committee and submitted through the on-line HQCPC system there is no need to maintain a hard copy of the submission on file, however minutes and signed recommendations by the relevant PA should be kept on file. 9.4.5 Only after official award of contract by the relevant PA, and fulfillment of any conditions to that award, can a contractual obligation be entered into by UNOPS with an individual contractor. 9.4.6 Notwithstanding paragraph 9.4.5, UNOPS review and contract award is not required when: a)

the funding source is from the UN System , and i. the funding source has already reviewed the selection process, and awarded the contract, in accordance with its internal procedures, and ii. provided in writing its no objection for the issuance of contract, using the standard template.

In such situations, the relevant Procurement Authority signs the individual contractor agreement based on the no objections letter. The signatory of the contract must ensure that the no objection of the funding source is in writing and the total amount of the contracts issued against the no objection does not exceed the amount of the no objection. b) the funding source is an International Financial Institution (IFI), and i. the funding source has already reviewed the selection process and awarded the contract, in accordance with its internal procedures, and ii. the funding source provided in writing its no objection for the issuance of contract using the standard template, and iii. The client provided a letter stating that in accordance with the client’s procedures, the no objection from the IFI is enough in its own right to award a contract and a separate review by UNOPS’ contracts committee would be redundant and is not needed. In such situations, the contract may only be signed by an individual having as a minimum Level 3 delegation of authority (see Table 3). The signatory of the contract must ensure that the conditions outlined above are met, and that the no objection from the IFI is in writing and the total amount of the contracts issued against the no objection does not exceed the amount of the no objection. 9.4.7 Amendment of a contract which has been issued and signed based on a no objection from the funding source as per paragraph 9.4.6 is subject to receipt of a new no objection letter from the funding source, based on which the amended contract may be signed by the relevant Procurement Authority. 9.5 Review 9.5.1 Prior to any award of ICA, a review will take place. The purpose of the review is to ensure compliance with applicable regulations, rules, policies and procedures. The review shall establish whether or not appropriate selection procedures have been followed, whether reasonable justifications have been provided whenever procedures have not been fully


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adhered to, and ensure that the Procurement Authority (PA) is furnished with all material information required in order to award a contract (or reject contract award). 9.5.2 For submission values below the established thresholds for contracts committee review (see Table 4), the Procurement Authority is responsible for both review and award. For submission values above those thresholds, the following contracts committees are responsible for the review: a) A headquarters contracts and property committee (HQCPC) has been established to render written advice to the ECPO on any contract or a series of contracts with an estimated value greater than or equal to the review threshold (see Table 4 below). b) Further, the ECPO may establish local contracts and property committees (LCPCs) at each regional office to render written advice to the Regional Director up to the threshold of delegated authority indicated in Table 3. At decentralized offices where local contracts and property committees have been established, these committees will replace the HQCPC review for categories within their monetary thresholds. 9.5.3 Each Regional Director can decide to establish a local review panel to render written advice to him in respect of proposed awards which fall below the threshold for CPC review. Such a panel shall not constitute a “contracts and property committee” for the purpose of the Procurement Manual or the FRR. For more information on local review panels, please refer to the Procurement Manual. 9.5.4 The thresholds for contracts committee review are established as follows: Table 4: Thresholds for contracts and property committee review

COMPETITIVE ICA and PRESELECTION ICA

EXCEPTIONS , AMENDMENTS, POST FACTO AND RETROACTIVE CASES THRESHOLD THRESHOLD ≥USD 50,000 submit to HQCPC Offices without LCPC ≥USD 250,000 submit to HQCPC ≥USD 500,000* Offices with LCPC submit to ≥USD 250,000 submit to HQCPC, HQCPC, or to LCPC if or to LCPC if USD50,000 or more USD50,000 or more but below but below USD 250,000 USD 500,000 * The upper limit for LCPC review can be increased to USD 1,000,000 further to HQCPC review and ECPO approval of a request for higher threshold submitted by the Regional Office (see intra.unops.org/hqcpc). There is no upper limit for HQCPC review. 9.5.5 The scope of review by the contracts and property committees in respect of individual contractor agreements shall include the following: a) Proposed individual contractor agreements of any value which could reasonably lead to a series of related contracts, the total of which may be greater than USD 250,000 (see Table 4); b) Proposed ICA award(s) in respect of a single contract for a specific project or purpose, or a series of separate contracts relating to the same specific project or purpose, which is the result of a competitive selection process or pre-selection, of which the aggregate value of fees in the previous 12 months is greater than or equal to USD 250,000 (see Table 4). However, when a request for award has been reviewed by HQCPC, and subsequently awarded by the ECPO, this will “reset the aggregate count to zero”. Annex 3 part I provides a schematic overview of review and award levels as well as examples.


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c) Proposed ICA award(s) in respect of a single request (including amendments thereof) for a specific project or purpose, or series of requests relating to the same specific project or purpose, which is the result of an exception to the use of formal methods of solicitation of which the aggregate has a value of fees in the previous 12 months is greater than or equal to USD 50,000 (see Table 4); d) Proposed award of amendment(s) to ICA which result from a competitive selection process or pre-selection or series of amendments to such ICA, of which the aggregate value of fees is greater than USD 50,000 (see Table 4) or which would increase the contract amount previously recommended by a CPC by more than 20 per cent, whichever is less. The aggregate value for the purpose of amendments shall consist of the value of the proposed amendment and any previous amendments. However, when a request for award has been reviewed by HQCPC, and subsequently awarded by the ECPO, this will “reset the aggregate count to zero”. Annex 3 part II provides a schematic overview of review and award levels for amendments; e) Review of post-facto and retroactive situations with total value greater than or equal to USD 50,000 (see Table 4), in order to provide advice to the PA on ratification of actions not conforming to the established review and award processes, and/or acceptance of charges against appropriate budgets; 9.5.6 Where the advice of a committee is required, no commitment may be entered into before such advice is presented to and acted upon by the relevant PA. 9.6 Preparation of submission for review and aw ard 9.6.1 Great care must be taken in completing the submission for review and award, ensuring that it is self-contained and does not offer contradictory information. A submission which is incomplete or contains contradictory information leads to the PA or appropriate review body having to seek clarification, thereby unnecessarily creating additional work and slowing the review and award process. 9.6.2 Submissions for review and award must be made using the mandatory forms and templates. Submissions to LCPC and HQCPC are made through the online HQCPC/LCPC submission system. 9.6.3 Submissions should be explained and fully justified in order to speed up the review process. All relevant documentation must be attached to the submission to make it selfcontained and in order to facilitate the review process and subsequent award by the PA. Documentation must be prepared summarizing the selection process and fee setting, providing adequate justification whenever standard procedures have not been strictly followed, and establishing how the selection has complied with the applicable policies and procedures. 9.6.4 Care must be taken to ensure that the documentation provides a complete and exact picture of the actual process. The documentation should be prepared by the personnel responsible for the selection process. The same person is responsible for ensuring that the information is correct. 9.6.5 The levels of review and award as explained in Tables 3 and 4 are determined by a number of factors, as outlined in the previous paragraphs. Those factors are: a) b) c) d)

the value of the submission, the selection process undertaken (whether competitive, pre-selection or exception) whether it is a new separate contract or an amendment to an existing contract, and the timing of the submission (timely, retroactive or post-facto).


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9.6.6 The value of the submission, for the purpose of determining the appropriate level of review and of procurement authority, includes the following: a) The monetary value of the current submission; and b) The value of any potential or foreseeable future amendments of the contract or contracts for the same project or purpose which would result in an increase in total aggregate contract value, or increases in the scope of work (e.g. for a retainer or lumpsum contract) (refer to 9.5.5 a) for further details); and c) The value of previous contracts to the same individual contractor for the same project or purpose (refer to 9.2.7 and 9.2.8 for further details) as follows: i. When the request for award relates to a new contract (not an amendment): The aggregate value of contracts and amendments performed by the same contractor under the same project or for the same purpose in the preceding 12 calendar months, and ii. When the request for award relates to an amendment: The aggregate value of all previous amendments to the same contract, when amendment is of a case resulting from an exception to formal methods of solicitation: also the value of the original contract that is being amended, but d) The value of the submission shall exclude the monetary value of contracts and amendments awarded by the ECPO after HQCPC review (see 9.2.6 c). 9.6.7 The hiring unit is allowed to request award for a contract period of up to three years duration. The request could be for an initial period equivalent to the period for which funding has already been confirmed plus a conditional award for the following period(s) (conditional upon satisfactory performance and funding availability). If the award is granted, the hiring unit may issue the contract for the initial period and then issue amendments for the following period(s) when the conditions have been met. 9.6.8 When award is requested for a contract period exceeding one year , the hiring unit may request an award with an inbuilt option to increase the fee annually up to a maximum of 10% when such increase can be justified according to section 12.6 “Adjustment of Fee”. If the award is granted, the hiring unit may issue annual amendment with fee increases according to the award on the condition that they maintain an auditable record of the justification of the fee increases. 9.6.9 If the proposed fee exceeds the absolute maximum of the established fee ranges for international ICA, approval of the fee must be sought – in writing – from the Director, HRPG and be attached to the submission. 9.6.10 Submissions for review and award in cases that result from an exception to the use of formal methods of solicitation are similar to the review and award process for competitive cases and pre-selection. However, a written justification for the exception to the use of formal methods of solicitation is required and should be clearly stated in the Request for Award or Note to the File. 9.7 Post facto/retroactive approval 9.7.1 Post facto/retroactive approval of contracts is not an award, but an administrative procedure, which allows for review and possible ratification of actions which were not undertaken in full conformity with the above review and award processes. 9.7.2 The UNOPS FRR require that award takes place prior to any commitment being entered into by UNOPS, e.g. prior to signing an ICA contract, A post facto or retroactive situation occurs when a commitment has been made by UNOPS, or existed de facto, before an award of contract has been made.


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9.7.3 A post-facto case is a situation where the services have been rendered and, in some cases, one or more payments have already been made, however, proper award has not taken place and no contract has been issued. 9.7.4 A retroactive case is a situation where the provision of services has commenced, but they have not yet been fully rendered. In some cases, invoices have already been submitted. Proper award did not take place and no contract has been issued by UNOPS. 9.7.5 With the exception of contracts with a total value below USD 2,500 where no contract is required, every effort must be made to avoid a situation whereby services or works commence and goods are ordered prior to the establishment of a contract. 9.7.6 If a post facto/retroactive situation nevertheless occurs, approval of payments and/or a contract must be obtained from the PA whose authority for post facto and retroactive cases covers the monetary value involved (see Table 3), with prior review by a contracts and property committee if required as per the monetary thresholds. 9.7.7 In the unlikely event that the individual contractor has already rendered and finalized his/her services (post facto) or services have commenced but are not yet completed (retroactive), and award and contract issuance has been delayed for any reason, a Request for ICA Award including a Request for Approval of Retroactive or Post Facto Case shall be prepared by the hiring unit, reviewed by the contracts committee, if required as per the monetary thresholds indicated in Table 4, and submitted for approval by the PA. 9.7.8 For retroactive cases an ICA shall be issued bearing the effective date of commencement of the contractor’s services, which shall be the official contract start date. For post facto cases, no ICA need be prepared or issued as services have already been rendered. The claim/invoice shall be settled/paid following approval by the PA. 9.7.9 It is important to bear in mind that any irregularity in the selection process identified in the post-facto / retroactive review may lead to disciplinary actions. 9.7.10 It must be understood that the approval of the PA, if indeed given, does not constitute, and must not be taken as the establishment of a precedent or justification for not taking timely and appropriate action(s) in compliance with the FRR and established policies and procedures.

10.0 Contract Issuance 10.0.1 An ICA contract must never be issued until it has been properly awarded. 10.0.2 A number of administrative and other actions must be taken prior to contract issuance, including but not limited to informing the selected candidate of: a) the requirement to submit a Medical Statement of Fitness or undergo a full UN Medical Exam, and b) the requirement for international individual contractors with contracts of three months’ duration or longer to submit evidence of medical insurance, and c) the requirement to obtain security clearance or send travel notification to UNDSS prior to travel to join, d) the requirement to undergo the Basic and Advanced Security in the Field training, and

e) UNOPS Policy on Financial Declaration and Disclosure of Interest Statements and the requirement in some cases to submit a financial declaration, and f) the requirement to complete a Designation of Beneficiary form, and g) the requirement to supply bank details in a Vendor/Person Profile.


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10.0.3 The selected candidate is responsible for complying with the requirements listed in paragraph 10.0.2 and the hiring unit is responsible for enforcing this instruction and for keeping proper records of the documentation.

10.1 Letter of Intent 10.1.1 The Letter of Intent is non-binding for UNOPS, but specifies the terms and conditions that UNOPS is prepared to offer in the event that a contract is awarded to the recommended candidate. The Letter of Intent serves the following purposes: i) ii)

Informs the candidate that he/she has been recommended for the ICA assignment following the evaluation of applications, and Informs the candidate of the proposed fee and other contract terms and conditions, and

iii) Seeks to obtain a preliminary acceptance of the contract conditions from the candidate so as to confirm that UNOPS may proceed to contract issuance (when the contract has been awarded), and iv) Contains structured information to the individual contractor about the hiring procedure, including administrative steps and requirements such as documentation and information needed from the individual contractor prior to contract issuance as listed in paragraph 7.0.2 above. 10.1.2 The Letter of Intent can be sent to the individual contractor immediately after the evaluation of applicants has been completed, but prior to or in parallel with the review and award process. This will in many cases reduce the processing time. Alternatively, the Letter of Intent can be sent out after review and award. 10.1.3 The Letter of Intent is an optional step and may be omitted altogether, in which case the hiring unit must ensure that information listed in point 10.0.2 above is communicated to the individual contractor in alternative ways. 10.2 Issuance of ICA 10.2.1 Following selection of the individual contractor and award by the appropriate Procurement Authority, the hiring unit may issue an ICA. 10.2.2 The following steps are required in relation to issuance of ICAs: i) ii)

Establish the contractor as a vendor in Atlas; Prepare the ICA in GLOCON. The person profile, RPA and possibly the Letter of Intent may be created prior to award, while the ICA contract itself may not be issued until award has taken place; iii) Commit funds through the creation of a purchase order in Atlas (mandatory for contracts of USD 2,500 and above and recommended for all contracts); iv) Have the ICA signed by the appropriate Procurement Authority (see Table 3). The following documents should be presented in connection with signature: The individual contractor agreement, o the Terms of Refer ence, o 9 the contract award ; o v) Send the ICA to the individual contractor (in duplicate);

9

The contract award could take the form of either a Note to File, a Request for Award or LCPC/HQCPC minutes in standard format, which have been duly completed and signed by the relevant Procurement Authority. AI/HRPG/2010/01 - ICA

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vi) Have the ICA signed by the individual contractor and returned to the hiring unit prior to the contract start date; vii) Upload the signed ICA to GLOCON and finalize. 10.2.3 The selected individual contractor shall only commence the assignment once all prerequisites have been met and he/she has formally agreed to all contractual terms.

11.0 Amendment and Extension of ICA 11.0.1 The term “amendment” as used in this document shall mean a change to an existing ICA (as opposed to the creation of a new ICA). Amendments of the ICA are allowed when contracts are extended beyond the initial contract period, when the scope of work under a lumpsum or retainer contract is changed, and/or when there are minor modifications of contract provisions. More details on the condition for the use of amendments are provided in sections 11.1 and 11.2 below. 11.0.2 Amendments of the ICA must be preceded by review and award (see section 9), except in cases when the contract amendment is of no additional cost to UNOPS, for example: a) when the duration of a lumpsum contract is extended to allow more time to complete the same work at no additional cost, and b) when the duration of a retainer contract is extended to make use of services that were already awarded, but not yet provided. 11.0.3 Major modifications to contract provisions may not be made through an amendment, but require the issuance of a new contract (which must be preceded by a competitive selection process, unless an exception to the use of formal methods of solicitation is justified or the funding source pre-selects the candidate), as well as review and award. 11.1 Extension of Services / Changed Scope of Work 11.1.1 Should the services of the individual contractor be extended, or the scope of work under a lumpsum or retainer contract be changed, such extension/change in scope is carried out through an amendment to the original ICA. Extension/change in scope for the purpose of this Policy refers to a situation where: 10

i) TOR remains the same ; ii) Satisfactory performance has been certified; iii) There is no break between the original contract period and the period for which the contract will be extended, and iv) Fee remains the same, unless a change in fee is justifiable as per 12.6 “Adjusting the Fee”. For retainer and lumpsum contracts, the fee shall be considered to be the same if the “unit price” (fee per hour, fee per 1,000 words translated or similar) remains unchanged. 11.1.2 An ICA can be extended to a maximum of four (4) years or – if the individual contractor performed satisfactorily and continues working in the same project under the same TOR - up 11 to the total duration of the project , whichever is longer. Upon reaching the maximum, if services are still required as per the TOR, following options are available: a) a new competitive selection process takes place to identify and select the best candidate for the assignment - the incumbent may apply for the position again; or b) the funding source pre-selects a candidate; or 10

Only minor adjustments will be allowed. The duration of the project is defined as per the Atlas project.

11


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c) when so justified, an exception to the use of formal methods of solicitation may be granted by the appropriate level of Procurement Authority. 11.2 Modification of Contract Provisions 11.2.1 Where contract provisions call for minor modifications , such modifications are carried out through a contract amendment, where the contract text and/or TOR are adjusted accordingly. Examples of minor modifications are: a) change of supervisor; b) change in deliverables or timeframe under a lumpsum or retainer contract; c) changes of duty station city within the same country, when the change does not reasonably warrant a change in the fee of the individual contractor. 11.2.2 Amendments are inappropriate for substantial modifications to the TOR, such as change in duty station country, change of the ICA level, major changes in the scope of work, change to the fee (except when it can be justified in accordance with section 12.6 “Adjusting the Fee), etc. In such cases a new selection process must be undertaken and a new contract issued. 11.3 Procedures for Amendment of Contract 11.3.1 The following procedures should be followed when amending an ICA: a) The manager of the hiring unit and the relevant PA (see Table 3) must approve amendments. b) Requests for Award of ICA Amendments shall be submitted for review and award in the regular manner to the relevant contracts committee (if applicable) and PA according to established financial thresholds (see Table 3). c) The standard template for requesting award of an ICA amendment shall be used when submitting requests to the contracts committee and/or to the PA. d) An amendment must be made well in advance of its proposed effective date and always prior to the expiry date of the contract. e) Amendments must be made in writing and be signed by UNOPS and the contractor. The ICA Amendment shall be generated through GLOCON.

f) Funds reserved in UNOPS financial system as well as data entered in GLOCON must be updated to reflect any amendment.

12.0. Payment to Individual Contractors 12.0.1 As a guiding principle, fees payable to individual contractors will be based on the minimum amount necessary to obtain quality services for UNOPS and its clients. In order to ensure this, fees shall take into account various expenses incurred by the individual contractor during the contract period, such as basic living expenses, health insurance (if not provided by UNOPS), provisions for rest and recuperation, the need to provide a reasonably secure environment and any other relevant expenses related to the performance of services under the ICA. 12.0.2 Furthermore, equal value work should be remunerated at comparable levels. In order to ensure real comparability of fees, equal work in materially different settings will be


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remunerated differently, balancing out differences in terms of cost of living, working hours, hardship and hazard conditions, etc. More details are provided in the following sections. 12.0.3 The ICA fee must be determined at the outset of a contract and be clearly reflected in the contract text. 12.0.4 The fee is all-inclusive and once it has been determined and the contract has been awarded and signed, no adjustment or additional payment should be made during the contract period, except when it falls under the provisions specified in section 12.6. 12.1 International ICA Fee Ranges 12.1.1 Fees for international individual contractors are established according to four defined levels: Junior Specialist, Specialist, Senior Specialist and Principle Specialist. Each level is defined by the following elements: a) Element I: The level of complexity of services required, the degree of specialization required to fulfill the TOR, as well as the availability of individuals with such expertise. b) Element II: The level of relevant education, qualifications, and work experience required to provide the services as specified in the TOR. 12.1.2 The international ICA fee ranges are established by HRPG to guide the determination of fees for international individual contractors. Fee ranges are established at daily rates for 12 contracts with a duration of less than one month and at monthly rates for contracts of a duration of one month or longer. The international ICA fee ranges are presented below in two separate tables: Table 5: Daily Rates for International Individual Contractors ICA Level

Element I: Complexity; Degree of Specialization; Availability

I-ICA 1

Junior Specialist

I-ICA 2

Specialist

I-ICA 3

Senior Specialist

I-ICA 4

Principal Specialist

I-ICA 5

Senior Manager

Element II: Level of Qualifications and Experience

Equivalent of a master’s degree and 0 – 4 years’ relevant experience Equivalent of a master’s degree and 5 - 10 years’ relevant experience Equivalent of a master’s degree and 11 - 14 years’ relevant experience Equivalent of a master’s degree with 15 or more years’ relevant experience Equivalent of a master’s degree with 20 or more years’ relevant experience

RANGE OF DAILY FEES IN USD

200 - 400

300 - 600

450 - 900

675 – 1,350

1,000 – 2,000

12

For the purpose of determining whether daily or monthly rates apply, a month is defined as 30 consecutive days. AI/HRPG/2010/01 - ICA

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Table 6: Monthly Rates for International Individual Contractors ICA Level

Element I: Complexity; Degree of Specialization; Availability

Element II: Level of Qualifications and Experience

RANGE OF MONTHL Y FEES IN USD 13

I-ICA 1

Junior Specialist

4,000 – 8,000

I-ICA 2

Specialist

I-ICA 3

Senior Specialist

I-ICA 4

Principal Specialist

I-ICA 5

Senior Manager

Equivalent of a master’s degree and 0 – 4 years’ relevant experience Equivalent of a master’s degree and 5 - 10 years’ relevant experience Equivalent of a master’s degree and 11 - 14 years’ relevant experience Equivalent of a master’s degree with 15 or more years’ relevant experience Equivalent of a master’s degree with 20 or more years’ relevant experience

6,000 – 12,000

9,000 – 18,000

13,500 – 27,000

20,000 – 40,000

12.1.3 When a project agreement clearly states so, the fee may be established at a daily rate even if the contract duration exceeds one month. 12.1.4 Each level in the international ICA fee ranges has a minimum and a maximum amount denominated in USD, which serve as the ranges for fee setting applicable to all international individual contractors engaged by UNOPS throughout the world. Hiring managers have flexibility to propose fees within these ranges provided that the fee setting is clearly justified. 12.1.5 Deviation above or below the fee ranges will not normally be accepted. In exceptional circumstances, when exigencies of service so require and when adequately justified in writing, deviations from the applicable fee range may be approved by the relevant PA in conjunction with contract award. Only the Director HRPG may exceptionally approve fees above USD 1,350 per day (for contracts with a duration of less than one month) and above USD 27,000 per month (for contracts with a duration of one month or longer). 12.1.6 The international ICA fee ranges are specifically developed to set fee ranges for international ICAs where the payment basis is daily and monthly. The fee ranges shall also be applied to guide fee setting for retainer and lumpsum contracts, taking into account the ICA level and the amount of work/scope of services to be delivered. 12.1.7 In recognition of the fact that progressive, relevant work experience may render a candidate equally qualified as someone with a higher education but less experience – and vice versa—Table 7 gives an overview of how work experience and education level requirements can substitute for each other.

13

Monthly fees are calculated– and should be pro-rated where applicable – based on 21.75 working days per month. AI/HRPG/2010/01 - ICA

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Table 7: Education / Experience Requirements Level

I-ICA 1 I-ICA 2 I-ICA 3 I-ICA 4 I-ICA 5

PhD

Masters degree

+ years of relevant work experience

+ years of relevant work experience

0 years 0-5 years 6-9 years 10 years plus 15 years plus

0-4 years 5-10 years 11-14 years 15 years plus 20 years plus

Bachelor degree + years of relevant work experience 2-6 years 7-12 years 13-16 years 17 years plus 22 years plus

No university degree + years of relevant work experience

5-9 years 10-15 years 16-19 years 20 years plus 25 years plus

12.1.8 Notwithstanding paragraph 12.1.7, it is important to note that the standard for a specialist level ICA is a master’s degree requirement. Vacancies for which a degree below master’s is considered acceptable should specifically be described as such in the vacancy announcement in order to comply with the requirements of a truly competitive selection process. The suggested wording is as follows: “Additional years of relevant work experience, preferably in combination with a relevant bachelor’s degree, may substitute for the requirement for a master’s degree”. 12.2 Fee Setting for International Individual Contractors 12.2.1 The fee setting for international individual contractors is a two-step process, where the first step is to determine a base fee, taking into account fixed criteria such as the ICA level and duty station specific criteria, and the second step is to take into account any additional factors that are relevant for determining a reasonable fee in accordance with paragraphs 12.0.1 and 12.0.2. In many cases, the base fee may be adequate. 12.2.2 When points have been allocated in step one – and possibly in step two – the total number of points will indicate whether the fee is recommended to fall within the low, mid or high end of the relevant I-ICA range (see Annex 3: International ICA Ranges – Break down). However, the hiring manager has the option to propose a fee different than the calculated fee, and outside of the recommended fee sub-range, as long as it remains within the range applicable to the specific ICA level as provided in Table 5 (for daily fees) or Table 6 (for monthly fees). Such deviations from the calculated and recommended fee level will, however, require strong justification. 12.2.3 In setting the base fee, the following factors shall be taken into account: a) ICA level The ICA level as reflected in the TOR and vacancy announcement (when applicable) will determine the range within which the fee is set, i.e. the absolute minimum and maximum fee to be paid. b) Cost of Living – up to 30 points This element shall be based on the post adjustment applicable to the duty station at the time of fee setting: 0.5 points will be allocated per 1% above 30 c) Hardship - up to 20 points This element shall be based on the hardship classification and R&R/PT frequency of the duty station at the time of fee setting. Hardship: 0 points for H, 3 points for A, 6 for B, etc. R&R/PT: 1 point for 6 months, 2 points for 12-16 weeks, 4 points for 8 weeks and 5 points for 6 weeks.


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d) Hazard – up to 15 points This element shall be based on the security phase and status as designated hazardous duty station at the time of fee setting: 5 points will be allocated if hazardous, and 10 points will be allocated if Phase III or above. 12.2.3 When it is found that the calculated base fee does not take into account all relevant elements, the second step in the fee setting methodology may be applied to consider additional elements. The additional elements must each be clearly justifiable, and the hiring manager must establish the relevance of the element(s) considered as compared to the tasks to be performed and the value that it brings to the objectives to be achieved. The additional elements that may be considered under the second step of the fee setting methodology are: a) Deviating working hours - Increase / decrease the base fee by percentage difference The standard working hours at the duty station – if they deviate from a 40 hour work week – may justify a higher fee (when standard work week is more than 40 hours) or a lower fee (when standard work week is less than 40 hours). Similarly, the part-time status will require a reduction in the fee. 14

b) Availability – 0 or 5 points Highly specialized expertise may have a higher value on the labour market than expertise which is readily available. c) Short-term assignment – 0 or 5 points Short-term assignments of 1-2 months may justify a higher fee, as the cost of living on such assignments can be relatively high compared to longer-term assignments. For example, when a hotel is the only accommodation option (as compared to rented accommodation) or when local transportation costs are relatively high due to the lack of personal means of transportation (typically in Europe and North America). d) Accommodation-related security provisions – 0 or 5 points While the base fee does take into account the security phase at the duty station, specific residential security measures may be required at a given duty station which may justify a higher fee. e) Relevant education in excess of the required minimum – 0 or 5 points In some cases, it may be necessary in order to attract the right person for an assignment, to add an additional element to the fee in order to reward relevant degrees in excess of the required minimum for the specific I-ICA level. For example, an I-ICA 2 requires a Masters degree in a relevant field and min. 5 years of relevant experience, and if the person identified as the best candidate holds a PhD in a relevant field and 5 years of relevant experience, additional points may be added. f)

Relevant work experience in excess of the required minimum – 0 or 5 points

In some cases, it may be necessary in order to attract the right person for an assignment, to add an additional element to the fee in order to reward relevant work experience in excess of the required minimum for the specific I-ICA level. For example, an I-ICA 2 requires a Master’s degree in a relevant field and min. 5 years of relevant experience, and if the person identified as the best candidate holds a 14

Normally, an assessment of the availability and degree of specialization should take place prior to start of the selection process and be taken into account when determining the I-ICA level. In some cases, however, it is not possible to fully assess availability issues at the planning stage, in which case this aspect may be considered at the fee-setting stage. AI/HRPG/2010/01 - ICA

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Master’s in a relevant field and 10 years of relevant experience, additional points may be added. 12.2.4 Education as well as work experience must be relevant for the assignment for which the individual contractor is being considered in order to count towards a specific international ICA level, and: a) When calculating work experience, a maximum of twelve (12) months of relevant work experience will be acknowledged for any one (1)-year period, regardless of whether or not work was performed simultaneously for multiple companies/organizations. b) Part-time work during college or university studies will not be counted. 12.3 Local ICA Fee Ranges 12.3.1 Fees for local individual contractors are based on the local market rate for similar work of comparable quality, complexity, and difficulty and shall take into account availability of local labour with the required levels of skills and competencies. 12.3.2 As an indicator of local market rates, UNOPS business units may wish to refer to UNDP’s local service contract (SC) salary scales or, alternatively, develop Local ICA Fee Ranges as per the methodology outlined in the “Methodology for Local ICA Fee Setting”. 12.3.3 In cases where neither a UNDP SC scale nor a Local ICA Fee Range is available and where the number of local individual contractors is so low that it does not justify the development of a new Local ICA Fee Range, the UNOPS business unit may use other methods – determined locally – for establishing local market rates. 12.4 Fee Setting for Local Individual Contractors 12.4.1 Fees for local individual contractors are set according to the principles outlined in paragraphs 10.0.1 and 10.0.2, and may additionally take into account the following elements: •

•

•

Pension-related cash compensation (up to 10% of the contract amount, as applicable in the duty station country); Income taxes levied by national authorities (when the national authorities have not exempted local individual contractors from such tax), Any other relevant expenses related to the performance of services under the ICA.

12.4.2 The following principles shall apply to determining local ICA fees: i) Similar pay for similar work; (ii) Fees for similar work may vary from one duty station to another within the same country or between countries based on local market rates; (iii) Education and work experience must be relevant to the assignment for which the individual contractor is being considered in order to count towards a specific ICA level; (iv) When calculating work experience, a maximum of twelve (12) months of relevant work experience will be acknowledged for any one (1)-year period, regardless of whether or not work was performed simultaneously for multiple companies/organizations. Part-time work during college or university studies will not be counted. AI/HRPG/2010/01 - ICA

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12.5 Hazard Allowance 12.5.1 UNOPS recognizes that hazardous conditions at specific duty stations expose individual contractors to certain risks. To attract and, to a certain extent, compensate suitable individual contractors to work under such conditions, the following provisions apply: a) For international individual contractors: The fee takes into consideration the hazardous conditions at the duty station (see section 12.2.2 c) above). Hazard Allowance as described below does not apply; b) For local individual contractors: A Hazard Allowance applies and shall be paid in addition to the established fees when applicable. 12.5.2 Local individual contractors are eligible to receive the Hazard Allowance only for the days they are required to work and actually do so, and only when serving in hazardous conditions as classified by ICSC (list of locations can be found at the following link: http://www.un.org/Depts/OHRM/salaries_allowances/allowances/hazard.htm ). 12.5.3 The Hazard Allowance is reviewed on a continuous basis and will be withdrawn when the conditions at the duty station improve. 12.5.4 Hazard Allowance is paid at the same rate to local individual contractors regardless of whether they are in the support or specialist category. The Hazard Allowance is calculated as twenty-five (25) per cent of the net mid-point of the support level of the fee scale applicable at the duty station (local ICA fee scale or UNDP Service Contract Salary Scale, whichever is used to set local ICA fees). To establish the daily rate of the Hazard Allowance for local ICAs: i) ii)

identify those levels of the local fee scale which apply to support levels; add the total monthly net remuneration at the lowest level/step and the total monthly net remuneration at the highest level/step of the support levels to get value “A”; iii) divide “A” by 2 to get value “B”; iv) multiply “B” by 0.25 to get value “C”; v) to arrive at the daily Hazard Allowance rate, divide “C” by the average number of working days in a month (21.75 for a five-day work week, 26 for a six-day work week, etc). 12.5.5 Whenever there is a change in the local remuneration scale, the allowance must be recalculated. The effective date of the new rate is the same as the effective date of the revised remuneration scale. 12.5.6 Hazard Allowance is not considered part of the ICA fee, and should therefore not be included in the contract amount (or in the contract award). 12.6 Adjusting the Fee 12.6.1 Once an ICA fee has been set it remains unchanged throughout the entire contract period, including any amendments. To avoid needing multiple competitive selection processes for the same job, initial “probationary” contracts at lower fees are strongly discouraged. 12.6.2 Notwithstanding the foregoing paragraph, an adjustment or change of the fee is possible in a few specific circumstances when certain conditions have been met (any such adjustment will require a contract amendment and be subject to review and award as explained in section 9 above). (i) Inflationary increases, when justified, will be allowed in conjunction with contract extensions after one (1) year at the same fee rate. Comparators to be used for determining the inflationary increase could include, but will not be limited to: ICSC AI/HRPG/2010/01 - ICA

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salary scales, SC salary scales, and published inflation rates. The inflationary increase will be subject to approval in conjunction with the review and award of the contract extension. (ii) For local ICAs, adjustment of the fee will be permitted in conjunction with local pay scale updates whereby the individual contractor remains at the same level, but will be remunerated according to the new pay for that level. Such adjustment would normally take place only once per year. The local pay scale could be the Local ICA Fee Range, the local UNDP Service Contract Salary Scale or any other salary scales upon which basis the fee for the local ICA was initially determined. Such adjustment is permitted in all cases where required to harmonize local fees within a specific duty station or project. 12.7 Method of Payment 12.7.1 The standard method of payment to individual contractors under ICA, whether national or international, shall be the output-based method. 12.7.2 Individual contractors may be paid on a daily, monthly or lumpsum basis for services provided, and payments shall always be made based on satisfactory performance. Other installments may exceptionally be negotiated depending on the nature and scope of work (e.g. for lumpsum contracts based on completion of parts of the work required). 12.7.3 A Certification of Payment (CoP) form – or authorization from the client - indicating that services have been rendered satisfactorily will be completed by the authorized official each time payment is made. For contracts with a duration of less than one month, the CoP shall be submitted at contract completion, unless other payment terms have been specified in the contract. For contracts of more than one month duration, the CoP shall be submitted at the end of every calendar month and the last CoP shall be submitted at the end of the contract. 12.7.4 In case of recurring payments of the same amount (i.e. monthly payments to individual contractors on contracts with paid leave), payment batches may be run in Atlas without prior receipt of a Certificate of Payment where such arrangement has been approved in advance by the Finance Management Officer. However, due care should be taken to keep updated leave records at all times and supervisors must alert Finance to stop – or make deductions from - batch payments in case the leave provisions stipulated in the contract are exceeded. In such case, the excess leave should be counted as unpaid leave and must be subtracted from the fee. 12.7.5 Payments to individual contractors will be carried out as far as practicable through Atlas and preferably via bank transfers. In locations and situations where payments cannot be reliably made by bank transfer, business units may exceptionally use other modes of payment, such as cash payment. 12.8 Calculation Formulae for ICA Payments 12.8.1 The formula to be used for computing the payment of fees for individual contractors depends on the type of contract. Annex 4 presents the calculation formulae to be applied for each of the four payment bases: lumpsum, retainer, monthly and daily. 12.8.2 For all contracts, fees shall only be paid for those days that fall within the contract period and payments made against a contract must never exceed the awarded contract amount. However, a monthly payment may exceed the monthly fee in such months where the number of working days exceeds the average number of working days, and likewise a full month worked may result in a monthly pay that is less than the monthly fee in cases where the number of working days is less than the average.


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12.9 Currency of Payment 12.9.1 The ICA must specify the amount and currency of payment, and payments will be made in the currency specified in the contract. Local individual contractor fees are to be paid in the currency of the duty station country unless otherwise approved by the ICSC. International individual contractor fees may be paid in hard currency, preferably in US dollars. 12.9.2 Payment in a hard currency such as US dollars or in the local currency (where amount is equivalent to that in US dollars) may be necessary in situations of highly vol atile local 15 economic conditions or civil unrest. The currency of the local UN salary scale shall be used to determine the currency of payment. 12.9.3 Payments to bank accounts outside the country are not permitted when this circumvents local laws barring payment in any currency other than the local currency or to bank accounts outside the individual contractor’s country of residence. 12.10 Final Payment 12.10.1 The final payment under an ICA may not be released without prior certification that performance has been satisfactory and work has been completed. For more information, please refer to section 13.0 below. 12.10.2 Unsatisfactory performance or failure to provide the services envisaged in the ICA terms of reference must be brought to the attention of the relevant head of business unit, or Regional HR Specialist, immediately upon completion of the assignment for a decision on whether to suspend payment of all or part of the amounts which may be payable to the individual contractor, and whether to remove the individual contractor from any UNOPS roster (if applicable). 12.11 Taxes on Income 12.11.1 Fees are expressed in gross amounts and individual contractors are responsible for payment of any taxes that may be levied on the fees received from UNOPS. UNOPS has no liability for taxes, duties, or other fees that may be levied on the individual contractor in connection with remuneration under the contract.

13.0 Performance Evaluation 13.1 Individual contractors are engaged in recognition of their skills and expertise to perform a specific task or deliver a specific piece of work. As such, the outputs and overall performance of individual contractors must be monitored and documented on a regular basis to ensure that contractual obligations have been fully met. 13.2 Regular performance related discussions must take place between the individual contractor and the supervisor, and satisfactory performance certified prior to payment of any fees. 13.3 Notwithstanding the previous paragraph, when the individual contractor agreement is administered on behalf of a client, and the client maintains responsibility for performance evaluation, UNOPS’ responsibility is limited to obtaining confirmation of satisfactory performance from the client prior to release of fee payments and issuance of any contract extensions.

15

Local UN salary scales can be found at the following web link: http://www.un.org/Depts/OHRM/salaries_allowances/salaries/gs.htm AI/HRPG/2010/01 - ICA

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13.4 When the total duration of a contract and its amendment(s) is less than one year, satisfactory performance is certified in the Certificate of Payment. In addition, a Performance Evaluation Report must be completed prior to contract completion when the cumulative duration of the contract and its amendment(s) is three months or longer. 13.5 When the total duration of a contract and its amendment(s) reaches a cumulative duration of one year, no further extension should be granted in the absence of proof that a Performance Evaluation Report has been completed (or confirmation of satisfactory performance from the client as per 12.12.3). Likewise, at or before each anniversary date of the contract, a new Performance Evaluation Report must be completed by the individual contractor and his/her supervisor. 13.6 It is the responsibility of the hiring manager to ensure that the required Performance Evaluation Reports are duly completed and signed, or that a confirmation of satisfactory performance is received from the client and placed on file. Table 8: Requirements for Performance Evaluation Report completion

Upon separation from service and before engagement under a different project Upon end of contract period, before next amendment

Total accumulated period of service less than 3 months NO

Total accumulated period of service 3 months or more

Total accumulated period of service 12 months or more

YES (must be kept on file)


NO

NO (performance reviews should take place but completion of a PER form not mandatory)


13.7 Performance Evaluation Reports are confidential and should be kept on file by the relevant personnel designated to administer the contract and maintain personnel files.

14.0 Termination of ICA 14.1Termination of an ICA may result from a mutual consent of parties or be based on a unilateral decision, for convenience or for cause. When it’s for cause, the party who decided to terminate the ICA for that reason has to justify its position, and follow the termination procedure. 14.2 In case parties enter into conflict, they will first try to resolve it amicably. Personnel are encouraged to seek early advice from the Legal Practice Group and if an amicable resolution cannot be reached, they may have to go for arbitration as described below. 14.3 The initiation of conciliation or arbitral proceedings, shall not be deemed to be a ‘cause’ for or otherwise to be in itself a termination of the ICA. 14.4 Either party may terminate the ICA at any time for convenience by notifying the other party in writing of its intention to do so. The notice period is: •

Two (2) calendar days for ICAs of a duration of less than one (1) month;


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•

•

•

Seven (7) calendar days for ICAs of a duration ranging from one (1) month to less than six (6) months; Fourteen (14) calendar days for ICAs of a duration ranging from six (6) months to less than one year, and Thirty (30) calendar days for ICAs of a duration of one (1) year.

14.5 UNOPS may terminate with immediate effect/without notice any ICA for cause (as determined by UNOPS) which may include, e.g.: a) b)

Any breach of the terms and conditions/any provision of the ICA, or Any breach for failure to observe the standards of conduct applicable 16 to individual contractors (see OD 21, Section 3 “Legal Status, Rights and Obligations”).

14.6 In the event of a termination of the ICA, upon receipt of notice of termination by UNOPS, the individual contractor shall, except as may be directed by UNOPS in the notice of termination or otherwise in writing: a) b) c) d) e)

take immediate steps to bring the performance of any obligations under the ICA to a close in a prompt and orderly manner, and in doing so, reduce expenses to a minimum; refrain from undertaking any further or additional commitments under the ICA as of and following the date of receipt of such notice; deliver all completed or partially completed plans, drawings, information and other property that, if the ICA had been completed, would be required to be furnished to UNOPS thereunder; complete performance of the work not terminated; and take any other action that may be necessary, or that UNOPS may direct in writing, for the protection and preservation of any property, whether tangible or intangible, related to the ICA that is in the possession of the Individual contractor and in which UNOPS has or may be reasonably expected to acquire an interest.

14.7 In the event that an ICA is terminated before its expiration date for reasons other than those mentioned under 12.5 a) and b) above, or reasons beyond its control, the individual contractor will be compensated on a pro-rata basis for no more than either the actual number of days worked or the percentage of output provided to the satisfaction of UNOPS, whichever is lesser. It is within UNOPS’ discretion to decide which of the foregoing bases will determine how pro-rata payment should be made. 14.8 In the event of termination of the ICA on the grounds of cause by the individual contractor, UNOPS reserves the right to suspend all pending payments. UNOPS will pay only for services already rendered in accordance with the ICA and suspend further payments. 14.9 In the event that an ICA is either terminated by UNOPS or the individual contractor resigns before the expiry date, leave and insurance provisions will apply as stipulated in the ICA. Leave days will be prorated according to actual contract period served and any excess leave days availed of will be deducted from the final payment due to the individual contractor. 14.10 Additional costs incurred by UNOPS resulting from the termination of the ICA by the individual contractor may be withheld from any amount otherwise due to the individual contractor from UNOPS. 14.11 When a contract is terminated by resignation of the individual contractor, there shall be no automatic entitlement to exhaust his/her leave balance during the notice period.

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14.12 Any dispute resulting from the termination of an individual contractor agreement will be settled in accordance with the following rules. 14.12.1 Amicable Settlement: UNOPS and the Individual Contractor shall use their best efforts to amicably settle any dispute, controversy or claim arising out of the ICA or the breach, termination or invalidity thereof. Where the parties wish to seek such an amicable settlement through conciliation, the conciliation shall take place in accordance with the Conciliation Rules then obtaining of the United Nations Commission on International Trade Law (“UNCITRAL”), or according to such other procedure as may be agreed between the parties in writing. 14.12.2 Arbitration: Any dispute, controversy or claim between the parties arising out of the ICA, or the breach, termination, or invalidity thereof, unless settled amicably, as provided in 14.12.1 above, shall be referred by either of the parties to arbitration in accordance with the UNCITRAL Arbitration Rules then obtaining. The decisions of the arbitral tribunal shall be based on general principles of international commercial law. For all evidentiary questions, the arbitral tribunal shall be guided by the Supplementary Rules Governing the Presentation and Reception of Evidence in International Commercial Arbitration of the International Bar Association, 28 May 1983 edition. The arbitral tribunal shall be empowered to order the return or destruction of goods or any property, whether tangible or intangible, or of any confidential information provided under the ICA, order the termination of the ICA, or order that any other protective measures be taken with respect to the goods, services or any other property, whether tangible or intangible, or of any confidential information provided under the ICA, as appropriate, all in accordance with the authority of the Arbitral Tribunal pursuant to Article 26 (“Interim Measures of Protection”) and Article 32 (“Form and Effect of the Award”) of the UNCITRAL Arbitration Rules. The arbitral tribunal shall have no authority to award punitive damages. In addition, unless otherwise expressly provided in the ICA, the arbitral tribunal shall have no authority to award interest in excess of the London Inter-Bank Offered Rate (“LIBOR”) then prevailing, and any such interest shall be simple interest only. The parties shall be bound by any arbitration award rendered as a result of such arbitration as the final adjudication of any such dispute, controversy or claim.

15.0 Special Measures 15.1 In compelling circumstances, the Executive Chief Procurement Officer (ECPO) may authorize, on a time-limited basis, the establishment of special measures relating to selection of individual contractors and award of ICAs. 15.2 Furthermore, the ECPO may, in compelling circumstances, approve extraordinary advances, grants and other justifiable payments.


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Annex 1: Certification of Sick Leave - Examples For the purpose of determining when a medical certificate is required to support a request for sick leave, the rule is that “A medical certificate from a recognized physician is required as documentation of any sick leave of more than three (3) consecutive working days. For sick leave days over and above three (3) days in any rolling six (6)-month period, medical certification is required, regardless of whether it is taken as consecutive or separate days”. The two examples below illustrate this rule and how to determine when a medical certificate is required in support of a sick leave request. Example 1 The local ICA was issued for an initial period of 1 January through 31 December and subsequently extended for the period 1 January through 15 March. No of SL days Month

0

0

0

0

0

0

0

0

0

0

0

0

0

4

0

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

The individual contractor requested sick leave for more than three consecutive days and is therefore required to submit a medical certificate in support of the sick leave request. Example 2 The local ICA was initially issued for the period 1 January – 31 December and subsequently extended for the period 1 January through 15 March. No of SL days Month

1

0

0

2

0

0

1

0

1

2

0

0

0

2

0

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

January: The individual contractor accumulates 2 days of sick leave for the month of January and requests 1 day. No prior requests have been received. No medical certificate is required. April: The individual contractor will have accumulated 7 sick leave days by the end of April. In the six-month period Nov – Apr, the total sick leave days, including the 2 days requested in April, add up to three days. No medical certificate is required. July: The individual contractor will have accumulated 11 sick leave days by the end of April. In the six-month period Feb – Jul, the total sick leave days, including the 1 day requested in July, add up to three days. No medical certificate is required. September: The individual contractor will have accumulated 14 sick leave days by the end of September. In the six-month period April – September, the total sick leave days, including the 1 day requested in September, add up to four days. A medical certificate is required. October: The individual contractor will have accumulated 15 sick leave days by the end of October. In the six-month period May – October, the total sick leave days, including the 2 days requested in October, add up to four days. However, the sick leave day in September was accompanied by a medical certificate and therefore, no medical certificate is required.


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February: The individual contractor will have accumulated 4 sick leave days by end of February. No prior requests have been received in the contract period that started 1 January. No medical certificate is required.


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Annex 2: Engagement and Selection Process – Individual Contractor Agreement Funds

Prepare TOR

Identification

Get Applications

Evaluate Applications

Review and Award

< $ 2,500

Check funds availability

Formal solicitation not required

If feasible, compare 3 candidates

Evaluated based on job requirements

Note to the file signed by PA

Competitive < $50,000

Same as above

Brief description of main tasks suffices Simplified TOR suffice

Limited competition is acceptable

Evaluation based on desk review is acceptable

Note to the file signed by PA

Competitive $50,000 or above Exceptions < $50,000

Same as above

Full TOR required

Open competition is required

Min. 3 candidates are contacted and confirm interest and availability Vacancy is advertised

Same as above

NA

NA

Request for award of ICA sent to the PA, LCPC or HQCPC (see Annex 3 part I) Note to the file signed by PA

Exceptions $50,000 or above Pre-selection

Same as above

Same as above depending on contract amount Same as above depending on contract amount Same as above depending on contract amount

NA

NA

Evaluation should be based on an interview and reference checks Review P11 to ensure the candidate complies with requirements in the TOR Same as above

Funding source identifies and selects


Same as above

AI/HRPG/2010/01 - ICA Effective Date: 1 May 2010


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Request for Award - Exception sent to the PA, LCPC or HQCPC (see Annex 3 part II) Note to the file signed by PA. or Request for award of ICA sent to the PA, LCPC or HQCPC, or No objection received from funding source


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Example 1 – Series of competitive/pre-selection ICAs :

(i) Contract awarded from 1 Jan - 30 June for total value USD 200,000: PA awards subject to HR Practice Advisor pre-clearance. (ii) New contract for same project or purpose from 15 July – 30 September for USD 100,000: ECPO awards subject to HQCPC review and recommendation

(aggregate value in previous 12 months = 200,000; value of current submission = 100,000. Total value = USD 300,000, i.e. requires HQCPC review) (iii) New contract for same project or purpose from 15 October – 31 December for USD 100,000: PA awards subject to HR Practice Advisor pre-clearance (the aggregate count was reset when HQCPC reviewed and recommended the previous contract, and therefore the aggregate value for this submission is USD 100,000).

Example 1 – Series of competitive/pre-selection ICAs :

(i) Contract awarded from 1 Jan - 30 June for total value USD 200,000: PA awards subject to HR Practice Advisor pre-clearance. (ii) New contract for same project or purpose from 15 July – 30 September for USD 100,000: ECPO awards subject to HQCPC review and recommendation

(aggregate value in previous 12 months = 200,000; value of current submission = 100,000. Total value = USD 300,000, i.e. requires HQCPC review) (iii) New contract for same project or purpose from 15 October – 31 December for USD 100,000: PA awards subject to HR Practice Advisor pre-clearance (the aggregate count was reset when HQCPC reviewed and recommended the previous contract, and therefore the aggregate value for this submission is USD 100,000).


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Example 2 – Amendment of competitive selection (or pre-selection):

i) Following a competitive selection process (or pre-selection) a contract for $200,000 needs to be awarded. The value is below the threshold for LCPC for competitive cases ($250,000 to $500,000), therefore the PA can award the contract ii) The contract needs to be amended by $40,000. The PA m ay award contract amendments up to a value of $50,000, and may therefore a ward this amendment for $40,000. The aggregate value of the contract is now $240,000. iii) A further amendment of $90,000 is required, which brings the aggregate value of the amendments to $130,000. This is over the PA threshold for amendments, so the request of award should be submitted to LCPC, which may r eview amendments from $50,000 to $250,000. The aggregate value of the contract is now $330,000. iv) A final amendment of $ 125,000 is required which brings the aggregate value of the amendments to $255,000 (and the aggregate value of the contract to $455,000). This is above the upper threshold for LCPC for amendments, which is $250,000. The request for award must therefore be submitted to HQCPC. vi) Once HQCPC has reviewed, and the ECPO has awarded the contract, including any amendment(s), the aggregate value is set to zero, meaning that the submission value of the next amendment (if any) will be the value of only that amendment. vii) Only review by HQCPC, not LCPC, can set the aggregate value to zero.

Example 2 – Amendment of competitive selection (or pre-selection):

i) Following a competitive selection process (or pre-selection) a contract for $200,000 needs to be awarded. The value is below the threshold for LCPC for competitive cases ($250,000 to $500,000), therefore the PA can award the contract ii) The contract needs to be amended by $40,000. The PA m ay award contract amendments up to a value of $50,000, and may therefore a ward this amendment for $40,000. The aggregate value of the contract is now $240,000. iii) A further amendment of $90,000 is required, which brings the aggregate value of the amendments to $130,000. This is over the PA threshold for amendments, so the request of award should be submitted to LCPC, which may r eview amendments from $50,000 to $250,000. The aggregate value of the contract is now $330,000. iv) A final amendment of $ 125,000 is required which brings the aggregate value of the amendments to $255,000 (and the aggregate value of the contract to $455,000). This is above the upper threshold for LCPC for amendments, which is $250,000. The request for award must therefore be submitted to HQCPC. vi) Once HQCPC has reviewed, and the ECPO has awarded the contract, including any amendment(s), the aggregate value is set to zero, meaning that the submission value of the next amendment (if any) will be the value of only that amendment. vii) Only review by HQCPC, not LCPC, can set the aggregate value to zero.


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Annex 4: International ICA Ranges - Break-Down

ICA 1: USD 4.000 – 8.000 ICA 1 Low: USD 4.000-6.000 (0-50 points) ICA 1 High: USD 6.000-8.000 (51-100 points) ICA 2: USD 6.000-12.000 ICA 2 Low: USD 6.000-8.000 (0-33 points) ICA 2 Mid: USD 8.000-10.000 (34-66 points) ICA 3 High: USD 10.000-12.000 (67-100 points) ICA 3: USD 9.000-18.000 ICA 3 Low: USD 9.000-12.000 (0-33 points) ICA 3 Mid: USD 12.000-15.000 (34-66 points) ICA 3 High: USD 15.000-18.000 (67-100 points) ICA 4: USD 13.500-27.000

Annex 4: International ICA Ranges - Break-Down

ICA 1: USD 4.000 – 8.000 ICA 1 Low: USD 4.000-6.000 (0-50 points) ICA 1 High: USD 6.000-8.000 (51-100 points) ICA 2: USD 6.000-12.000 ICA 2 Low: USD 6.000-8.000 (0-33 points) ICA 2 Mid: USD 8.000-10.000 (34-66 points) ICA 3 High: USD 10.000-12.000 (67-100 points) ICA 3: USD 9.000-18.000 ICA 3 Low: USD 9.000-12.000 (0-33 points) ICA 3 Mid: USD 12.000-15.000 (34-66 points) ICA 3 High: USD 15.000-18.000 (67-100 points) ICA 4: USD 13.500-27.000 ICA 4 Low: USD 13.500-16.500 (0-25 points) ICA 4 Mid Low: USD 16.500-20.000 (26-50 points) ICA 4 Mid High: USD 20.000-23.000 (51-75 points) ICA 4 High: USD 23.000-27.000 (76-100 points) ICA 5: USD 20,000 – 40,000


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Annex 5 Calculation Formulae for ICA Payments The formula to be used for computing the payment of fees for individual contractors depends on the contract, i.e. whether it is a lumpsum or retainer contract or whether it is a regular contract paid on a monthly or daily basis. For all contracts, fees shall only be paid for those days that fall within the contract period and payments made against a contract must never exceed the awarded contract amount. However, a monthly payment may exceed the monthly fee in such months where the number of working days exceeds the average number of working days, and likewise a full month worked may result in a monthly pay that is less than the monthly fee in cases where the number of working days is less than the average. The following pages describe the formulae to be applied when calculating the fee payments to be made to individual contractors: a) Lumpsum Contracts The contract specifies a total lumpsum fee, and furthermore specifies the payment terms (i.e. whether payments fall in installments or upon completion of the entire contract). Payments are based upon output, i.e. upon delivery of the services specified in the TOR. The total payment may never exceed the total lumpsum fee and may only be reduced if contract obligations are not met by the contractor. b) Retainer Contracts The contract specifies a “unit price” (e.g. amount per hour, amount per month, amount per translated page), and payments are made to the individual contractor as follows: Unit price x no. of units worked = payment

For example: Fee is USD 11.5 per hour, contractor is working 30 hours, payment is USD 11.5 * 30 = USD 345. For budgeting purposes, a cap is determined when the contract is awarded and issued. The total payment under the contract must never exceed this cap. c) Regular Contracts of Less Than One Month The contract specifies a daily fee, and payments are made to the individual contractor as follows: Daily fee x number of days worked = payment

d) Regular Contracts of One Month or Longer The contract specifies a monthly fee, which is payable to the individual contractor for all full calendar months, i.e. calendar months where there are no “unpaid days”. For the purpose of calculating the monthly payment, “unpaid days” shall include any day in the calendar month for which the contractor is not entitled to payment according to his/her contract. Normally, unpaid days are days of unpaid leave during the contract period, as well as working days and UN Holidays within the calendar month that fall outside of the contract period.


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When there are unpaid days in a given calendar month, payments are made to the individual contractor as follows: Monthly fee – (monthly fee/21.75) x unpaid days = payment

In cases where the agreed work week is other than five days, the average number of working days per month must be calculated and replace 21.75 as appropriate (e.g. the average number of working days per month for a six-day work week is 26). The 21.75 in the formula above is the average number of working days in a month when working a five-day work week, and is derived as follows: Days in a year: 365 Weekend days in a year: 104 Working days in a year: 365 – 104 = 261 Average no. of working days in a month: 261/12 = 21.75 UN holidays are included as working days in the above formula, and will normally be counted as a paid day when they fall within the contract period (please refer to section 5.3 “UN Holidays and Weekends”). Weekend days are neither counted as unpaid nor as paid days as they have already been deducted in the above formula in order to reach the average number of working days in a month. NB: It is important to note that the monthly fee must be calculated calendar month by calendar month. NB: It is also important to note that the calculation formula for monthly contracts is only applicable when there are unpaid days in a given calendar month.


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Annex 6: List of Acronyms AL

Annual leave

ALD

Activity of Limited Duration

CA

Consultant Agreement

COP

Certificate of Payment

CPC

Contracts and Property Committee (could be LCPC or HQCPC or both)

CPO

Chief Procurement Officer

CTA

Chief Technical Advisor

DOA

Delegation of Authority

DSA

Daily Subsistence Allowance

ECC

External Collaboration Contract

EDD

Expected Delivery Date

FRR

Financial Regulations and Rules

GLOCON

IT system for Global Contracts administration

GSC

Global Service Centre

Home-based

An ICA may be issued as a home-based contract when the individual 17 contractor is not expected to work in any UNOPS office or work location , or is only expected to do so on an intermittent basis (i.e. the individual contractor will mainly work away from a UNOPS work location).

HQCPC

Headquarters Contracts and Property Committee

ICA

Individual Contractor Agreement

LCPC

Local Contracts and Property Committee

Lumpsum ICA A lumpsum ICA is issued when an individual is engaged to produce a defined output or product (e.g. a document, an evaluation, or the conduct of a training course) when payment for those services will be made as a lumpsum upon completion and handover of the product. The total payment may be broken down in several installments payable at specific milestones in the contract lifetime (e.g. on completion of final draft, on completion of each training module, etc.). 17

A UNOPS work location for the purpose of defining “home-based” shall mean an office space provided by UNOPS or by the client for whom UNOPS is hiring the individual contractor, or a work location such as a construction site or other location where UNOPS requires the individual contractor to perform his or her services. AI/HRPG/2010/01 - ICA

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ICA Policy

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