Procurement

1Logistics in support of the programme

Logistics provides the right goods and services, in the right place, at the right time, in the right quantity and quality, at the best cost, while complying with donor rules. It often accounts for a large share of the budget of a humanitarian response.

Its main functions: procurement, warehousing and stock management, transport, fleet, management of buildings and equipment, and often telecommunications. The Logistics Cluster coordinates common services in major crises.

2The procurement cycle

1. Purchase request: the programme specifies the need, the specifications, the quantity, the date and the budget line; it is approved by an authorised person.
2. Competitive bidding according to the amount: one quotation, several quotations or a tender.
3. Analysis and selection: a comparative bid analysis against criteria known in advance (price, quality, lead time, compliance); a procurement committee above a certain threshold.
4. A signed purchase order or contract.
5. Receipt: checking of quantities and quality, signed goods received note.
6. Payment after matching the order, the goods received note and the invoice (the "three-way match").
7. Filing of the complete file, ready for audit.

3Thresholds and procedures

Each organisation sets thresholds: for example one quotation below a small amount, three written quotations above it, then a public tender beyond a higher amount. The contract with the donor may impose stricter rules: the strictest rule applies.

Never split a purchase (break it into small orders) to stay below a threshold: it is a breach that auditors easily spot.

Emergency purchases may follow a simplified procedure, but it must be authorised, justified and documented.

4Ethics, fraud and conflicts of interest

• Segregation of duties: the same person does not request, select, receive and pay.
• Conflict of interest: if a supplier belongs to a relative, declare it and withdraw from the selection.
• Refuse gifts and commissions; report any attempted bribery.
• Vet suppliers (legal existence, references) and check that they do not appear on sanctions lists.
• Keep bids sealed or secured until they are opened in committee.