Individual Contract (IC)

1. Individual Contract (IC)

2. DEFINITIONS • The Individual Contract is to be used: • For procurement of services of an INDIVIDUAL to perform NON-STAFF TASKS • To deliver CLEAR, QUANTIFIABLE AND TIME-BOUND outputs or services that are directly linked to payment and defined in a TOR • For services that are either : • intellectual in nature – requiring a “consultants”, or • support services – requiring a “contractor”

3. CORRECT USE OF IC • When the required services cannot be met from the existing staff resources for lack of specialized knowledge and/or expertise • When the assignment is results-oriented, and can be completed outside the office, or within the office for a finite period of time linked to deliverables, and requiring the performance of non-staff functions, including support services; • For any activities that a SC would otherwise be used but are less than 6 months

4. INCORRECT USE OF IC • To perform staff functions, whether programme or operations • As a stop-gap measure, such as filling post, vacated by staff, by resignation, separation or any form of leave (home, maternity, sick, etc.) • When recruitment of a new staff member for a position is taking longer than usual for whatever reason • To fill up regular and continuing functions in an office • As a means to re-instate a staff whose previous post has been abolished; • As a means of placing a staff member on short-term probationary period, even if a competitive process has been completed, prior to confirming a staff member’s appointment on a fixed term contract or other modality • When the post created is on an experimental basis and the office would like to determine whether the said post or function should be made a regular post in the office.

5. DELEGATION OF AUTHORITY Chief Procurement Officer (UNDP BOM Director) RACP Approval required for all ICs above $100,000 in a 12-month period Heads of Various Outposted HQ Units CO Resident Representatives Bureau Directors UP TO A MAX.OF $100,000 per 12-mth period; All ICs w/ daily fees< $1,000 Any other increased delegated procurement authority does not apply to IC. For daily fees > $1,000, COs must obtain approval from Regional Bureau Director; HQ Units from Head of the Bureau

6. LIMITS OF DELEGATED AUTHORITY • FEES. Any single or cumulative contract amount awarded to the same individual in excess of US$ 100,000 RACP/ACP • Any SSA with effective daily rate exceeding 1,000 USD requires prior approval from Regional Director (for COs) or Heads of Bureau (for HQ Units) – regardless of contract duration • Daily consulting fee = Total contract amount / number of working days (excluding travel costs and DSAs) • DURATION. Any contract duration exceeding 12 months (including extensions of same contract) requires Bureau Director approval prior to submission to any procurement review committee • For purposes of computing cumulative amount, the 12-month period begins 12 months prior to the expected date of commencement of new contract.

7. ENGAGEMENT FOR FORMER AND/OR RETIRED UNDP STAFF Allowed subject to the following conditions : • Min. of 3 months gap from separation to engagement on IC • *Max. engagement period of six (6) months (if retiree is in receipt of pension) • *Max. earning per year should not exceed a gross amount of $22,000 plus DSA if retiree in receipt of pension (not applicable if individual is under RLA) • If former staff does not receive pension, the earning limitation is lifted after 24 months from separation * Whichever of the 2 happens first, unless the retiree decides to defer his/her receipt of pension. If retiree is on RLA, individual is responsible for monitoring earnings from the UN. UNDP cannot monitor this

8. ENGAGEMENT FOR FORMER AND/OR RETIRED UNDP STAFF • Engagement of former staff should be cleared with : (a) OHR Copenhagen if international staff; or (b) the HR of the former host Country Office, if local staff prior to separation • Former staff members cannot be issued IC if their separation was based on any of the following : • Abandonment of post; • Dismissal due to misconduct; • Non-renewal of appointment due to unsatisfactory service; • Termination of appointment due to unsatisfactory service; or • Resignation in lieu of disciplinary action.

9. LEGAL STATUS, RIGHTS, OBLIGATIONS OF ICs • Non-staff, non-official status • There is no employer-employee relationship • Title rights to any material produced belongs to UNDP • Carry no authority nor legal rights to bind UNDP into any agreement • Not entitled to benefits/compensations/subsidies/pension nor entitlements (all forms of leaves) nor to reimbursement of any taxes • No representational, supervising, approving or signing authority committing UNDP to any obligations (Atlas included) • Allegations of wrongdoing shall be reported to OAI and are required to fully cooperate with any UNDP audit or investigations

10. PRE-REQUISITES FOR CONTRACTING • Budgetary provisions – is the costing of the contract sufficient for the work required, and does it represent prevailing and competitive market rates? • Contract modality – is IC the proper modality for the work, or is the TA/FT/SC a more appropriate instrument? • If the individual is working with an entity/institution which is willing to make available the preferred consultant, the RLA must be used to establish the contractual relationship between UNDP and the entity/institution • Terms of Reference – does it provide full details in terms of deliverables, payment terms, evaluation criteria, and other minimum required information?

11. MINIMUM TOR INFORMATION • General background on the assignment • Objective of the assignment • Scope of work and activities to be undertaken • Monitoring and progress controls, including reporting requirements, formats, frequency, etc. • Duration of the assignment, duty station and expected places of travel , if any • Unequivocal description of deliverables, timelines and the corresponding percentage of payment due per output • Approval process required to certify acceptance of outputs and authorize payments • Description of selection criteria in determining the best offer

12. STRUCTURING THE IC FEES All applicants to the IC shall be required to submit financial proposals based on any of the following approaches : • Lump sum Contracts – payments are based on outputs • THIS IS THE PREFERRED MODALITY. • IC applicants must be required to submit a breakdown of such cost • Daily Fee Contracts – payments are based on the number of days works. • Daily fees must be ALL-INCLUSIVE – professional fees, insurances, risks and inconveniences, hardship conditions are factored into the price, but breakdown is required.

13. DETERMINING FEES OF ICs • Rates must be based on complexity of assignment, difficulty and extent of work to be performed, and degree of expertise required to accomplish it • Other factors such as language skills needed, track record, remoteness of the assignment, limitation in market supply, etc. may be considered

14. PAYMENT OF IC FEES • Must be based on milestone outputs • Authorization to pay must be triggered by a written certification of acceptance of outputs by the authorized official each time a payment is due • A signed IC Performance Evaluation form must be attached to the certification of payment, when final payment is being requested • Unsatisfactory performance must be brought to the attention of DRR-O/DCD-O or PSO/LSO for a decision on whether or not payment must be suspended in full or in part • Pay rate on a contract extension must remain the same. Adjustment of rate can only be allowed when IC is being re-engaged for a different assignment/TOR • ICs are responsible for payment of taxes on their incomes

15. IC SELECTION PROCESS * Minimum of 2, but preferrably 3, from requesting unit and with appropriate background on the work. At least 1 must be UNDP staff with the role of Chairperson

16. SOURCING OF APPLICANTS • a) From an established roster or other sources of information • b) From advertisement • Applicants submit to UNDP the following: • Letter of Interest • Brief Methodology and approach to the work • Personal CV • Financial Proposal Candidate 1 UNDP • Standard IC Procurement Notice • TOR Candidate 2 Candidate 3 • The standard IC notice template may be posted in UNDP website or other feasible media • Notice must remain open for at least five (5) to ten (10) working days • The same information as above shall be required from applicants

17. SOURCING OF APPLICANTS • Establishing a roster is not mandatory for BUs, but it is the best practice for IC implementation • Rosters may be populated through any of the following: • Posting of announcement • Personnel who have previously worked with UNDP and performed satisfactorily • Applicants in a selection process that did not succeed but very qualified • Applicants who submit unsolicited CVs and have been screened

18. OFFER EVALUATION METHODS

19. OFFER EVALUATION METHODS

20. OTHER PROCESS REQUIREMENTS • Evaluation Team. A minimum of two (2) members, but preferably three (3). Must include 1 UNDP staff to act as Chairperson • Interview Team. Ad hoc panel established by the requesting unit. • Fee Negotiations. May be initiated once the best qualified candidate has been identified. A minimum of two (2) staff shall be involved. • Reference Checks. Must always be conducted for the selected candidate. At least two (2) should be obtained. A positive reference within the last two (2) years may remain valid. • Signed P11. Required for all ICs over US$ 2,500.00 • Statement of Medical Fitness to Work. Full medical clearance by UN Doctor is required, at their own cost, if assignment requires travel and IC is over 62 years of age. (Not required if RLA is used)

21. IC ISSUANCE/AMENDMENTS • No work nor payment shall commence before an IC is issued and signed by both parties • Engagement of IC on retroactive basis is not permitted • Post-facto actions are not considered part of a procurement process • Any post-facto action must be justified to the RCPO/CPO • Amendment to an IC may be done in either of the following circumstances : • Time frame amendment or no-cost extension – an explanation must be provided on record on why it is necessary; • Additional activities in line with original TOR, with or without cost amendment – short justification is also required. • A TOR or deliverable revision shall required a new competitive process

22. TERMINATION OF THE IC • May be done by mutual consent or by unilateral decision – 5 days notice for ICs of less than 2 months, 14 days for ICs of longer period • May either be for convenience or for cause • Termination for cause must be justified by the terminating party • Pro-rating of payment after termination shall be no more than the amount of work completed to the satisfaction of UNDP • Amicable settlement must be considered in any dispute. Early advise from PSO/LSO must be sought

23. Thank You.