PROCUREMENT POLICY AND PROCEDURE

1.       PURPOSE

This procedure describes the Procurement process in detail in order to make all acquisitions under the best conditions of price and quality. It sets out:

-          the activities to be performed;

-          the level of approvals required;

-          the checks that are put in place.

2.       SCOPE OF APPLICATION

This procedure applies to all procurements to be made by Jouzour Loubnan.

3.       PROCESS

The process below is defined to ensure that:

-          There is a process for authorizing spending and that the roles within each of the phases of the process are separated to avoid any conflict of interest;

-          Where required, the cost falls within the available budget;

-          The various phases of the process to acquire a good, service or work, can be traced;

-          The procurement process is not a vehicle for acts of corruption.

To that effect, the process to acquire goods, services and works is divided into the following sub-processes:

3.1.  PURCHASE REQUEST

The requesting party (the “Applicant”) must first identify in a written purchase request (the “Purchase Request”) and in all necessary details, the goods/ and / or services to be acquired and / or realized.

The Purchase Request should contain all the information and documents required to describe the purchase, its purpose and the project and / or the budget it should be allocated to.

Once the Purchase Request is completed, the approval for proceeding with the process is done by the Vice-President for estimated amounts under ten thousand USD ($10.000) or its counter value and jointly by the Vice-President and the President for amounts equal or above ten thousand USD ($10.000).

Once the Purchase Request is authorized has been received, the procurement process can begin.

3.2.  SUPPLIERS’ SELECTION METHODOLOGY

Unless defined otherwise for a specific project by the donating Party, the method used to select the supplier that will provide the goods or services is based on the table set out below:

Method of Procurement

NB: For each project, the above contract value limits may change based on the donor guidelines.

 A list of potential suppliers will be asked to send a price quotation. Potential suppliers will be selected based on:

-          one or more indications from the Applicant or from any employee of Jouzour Loubnan;

-          previous suppliers for the same goods and services;

-          self-candidature;

-          conducting independent market research.

3.3.  PROCUREMENT METHODS

3.3.1.     Single quote PROCEDURE

The Applicant shall identify a single supplier and request a written price quote based on the Purchase Request and forward it to the Project Manager.

If the Project Manager approves the Purchase Request and the quoted price, the Applicant can confirm the acquisition to the supplier and issue a Purchase Order with a copy to the Project Manager.

If the Project Manager rejects the Purchase Request or the quoted price, the flow stops and the Project Manager must notify the Applicant of the reasons for rejecting it. This will allow any necessary corrective actions to be carried out.

If the Applicant is the Project Manager, he can single handedly request the quote, approve it and issue the Purchase Order to the supplier.

3.3.2.     THREE-QUOTE procedure

The Applicant will invite a minimum of three suppliers to submit proposals/price quotes. A sufficient number of candidates must be invited to ensure that the tender competition is genuine and that three acceptable quotes are received from three different suppliers.

Suppliers must be invited simultaneously, in writing and with the same set of tender documentation (the “Tender Documentation”), including the terms of reference and specifications, the exclusion criteria from the procurement process, if any, the criteria and grid used to select the winning supplier and the criteria to accept the goods and / or services once delivered. The proof of issue/receipt must be kept with the Tender Documentation.

Once proposals have been received, the Vice-President will select the supplier based exclusively on the financial and technical comparison of the quotations received as per the criteria and grid defined in the Tender Documentation.

The Vice-President will be able to negotiate with the two bidders that have the higher scores in order to obtain a better price.

Once approved, the Project Manager will inform the supplier and the related contract or Purchase Order will be signed by the Vice-President and the President.

In exceptional situations, requests to waive the Three-Quote Procedure and to use a Single Quote Procedure instead must be approved by the President and the Vice-President after being requested in writing as per the form in Annex and with appropriate and justified reasons. The main reasons for justification may be:

-          Emergency transactions expressly indicated as such by the donor in the contract or, if there is no such indication, for all projects with a duration of less than 6 months;

-          Where meeting the technical timescales of a particular procurement procedure puts at risk human lives or the physical safety of our personnel or of the beneficiaries of a project or would create a serious crisis which would make it impossible to reach a project’s objectives;

-          Where a tender process has been organized (Open Tender or Three-Quote Procedure) and the tender has not received any proposals or the proposals received do not meet the selection criteria established when the tender was published or when the invitations were issued. In this case, a Single Quote process may be used provided that the original terms and conditions set out in the tender are not substantially modified;

-          Where, for documented technical reasons or if exclusive rights are to be protected or for reasons linked to the observance of specific laws of a country or upon request by local authorities, there is only one supplier of the good or service in question that meets all the technical and quality requirements indicated in the project or those requested specifically by the donor, and for all cases where a particular economic operator has a monopoly in a particular national territory;

-          Where there are other contracts in addition to a base contract or due to a similar contract implemented by a supplier for a previous transaction with the same characteristics and in the same geographic area provided that the previous contract was awarded through an Open Tender or a Three Quote Procedure and that the supplier does not substantially alter the original contractual terms and conditions. The gap between the two contracts must not be greater than one year and contracts may be renewed on this basis no more than twice;

-          Where there are additional and/or exceptional works not included in the initial contract, following extraordinary events, which are necessary to complete works, provided that the total value of the supplementary works does not exceed 10% of the value of the principal contract.

-          For real estate contracts (purchase or rental) regardless of the estimated value of the contract and after having conducted appropriate and documented market research;

-          Where the purchase of a particular good or service is particularly advantageous following a bankruptcy sale, clearance sale, liquidation or similar process.

This clause cannot be applied if the project is financed by a donor that doesn’t approve such exception. The purpose of this justification is to ensure transparency, accountability, and fairness in procurement practices.

3.3.3.     Open Tender

The Tender Documentation to be issued shall include the terms of reference and specifications, the exclusion criteria from the procurement process, if any, the criteria and grid used to select the winning supplier and the criteria to accept the goods and / or services once delivered. The proof of issue/receipt must be kept with the Tender Documentation.

The Applicant will invite a minimum of three suppliers to collect the Tender Documentation. A sufficient number of candidates must be invited to ensure that the tender competition is genuine and that three offers are received from three different suppliers. In order to allow other suppliers to collect the Tender Documentation and bid, the tender will be posted on Jouzour Loubnan’s social media platforms and, when budget is made available by the donor, the tender will be advertised on one or two newspapers.

Suppliers must submit their offer in one sealed envelope addressed to the President of Jouzour Loubnan with the reference of the Tender Documentation written on the envelop, their name and contact information. This envelop should contain two sealed envelopes:

-          One sealed envelope including the financial offer written on it “FINANCIAL OFFER” along with the Tender Documentation reference, the name of the bidder and his contact information;

-          One sealed envelope containing the technical documentation written on it “TECHNICAL OFFER” along with the Tender Documentation reference, the name of the bidder and his contact info;

If any envelop is not properly sealed, or if the offer doesn’t come in envelops as specified above, the bidder will be disqualified.

The bidders will be invited to a bid opening session in the presence of the President and / or the Vice-President in which the main envelops and the TECHNICAL OFFER envelops will be opened and an attendance sheet with a memorandum of meeting (the “MOM”) shall be signed and filed with the Tender Documentation.

After review of the TECHNICAL OFFER, the bidders that have been disqualified will be notified in writing with the reason of the disqualification clearly stated and their sealed FINANCIAL OFFER envelop will be returned to them.

The bidders that have not been disqualified will be invited to a meeting in the presence of the President and / or the Vice-President during which the FINANCIAL OFFER of these bidders will be opened and shared with all the attendees and an attendance sheet with a MOM shall be signed.

The winning bidder will be selected based on the Tender Documentation’s scoring grid and, once approved by the President and the Vice-President, the Project Manager will inform the winning bidder and the related contract or Purchase Order will be signed by the President and the Vice-President.

The other bidders will be notified and all their documentation will be filed with the Tender Documentation.

3.3.4.     OTHER RULES

The following rules shall apply to all above procurement methods:

-          Contracts will be prepared by the legal advisor to Jouzour Loubnan;

-          If the winning bidder withdraws his bid after being selected and notified, the second-best bidder shall be selected provided at least three bidders have been qualified, otherwise, the tender process has to be repeated;

-          Invoice and payment receipts must always be obtained;

-          There will be no discrimination against suppliers for any gender or religious or political criteria;

4.       ONSITE DAILY WORKERS

Workers for plantation, irrigation and maintenance will be:

-          Selected exclusively by the Project Manager for their ability to perform the work at hand without any gender or religious or political discrimination;

-          Their remuneration will be the one commonly accepted in the area where the work is performed without any gender or religious or political discrimination;

-          No worker under the age of 18 will be employed.

Workers will be paid in cash USD for work (and transportation when applicable) against a worksheet to be signed by the site supervisor.

5.       RECEIVING GOODS AND / OR SERVICES

The Applicant and / or the Project Manager, as the case may be, shall check that the quantity and quality of the goods and / or services received match those that were ordered. These checks shall be conducted in line with the timescales agreed with the supplier and in line with the business calendar.

Receipt of goods and/or services must be recorded promptly and at the moment when the Applicant has effectively received the good or service. If the outcome of the check is positive, it must be noted on the invoice corresponding to the supply.

If the check identifies any difference between what was ordered and what has been received, the Applicant or the Project Manager, as the case may be, must notify the supplier and the Vice-President immediately, requesting appropriate corrective action.

6.       HANDLING INVOICES, PAYMENTS AND RECEIPTS

When an invoice is received, it must be forwarded scanned immediately and sent on a weekly basis to the accounting firm. The invoice must be appropriately stamped to show that it conforms to the order and must contain the information/documentation required for subsequent payment.

If the check of goods and / or services is positive, the invoice should be sent for payment to the Project Manager who will organize the payment. When the payment is made, the receipt must be forwarded scanned immediately and sent on a weekly basis to the accounting firm.

For each project, both the invoice and receipt should be recorded in the related reporting file as defined by the donor.

7.       ARCHIVING AND STORING DOCUMENTATION

The Project Manager will archive all documentation relating to the entire procurement process. Documents gathered that relate to procurement procedures will be archived and stored for ten (10) years.