Africare Procurement Policy
Updated: October 2013
PROCUREMENT POLICY
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Africare Procurement Policy
Updated: October 2013
Table of Contents
I. Purpose
II. Authorities
III. Code of Conduct and Ethics - Employee Handbook
IV. Penalties for non-compliance to the procurement policy
V. Definitions
VI. Competition
VII. Procurement Procedures and Guidelines: Headquarters and Overseas Offices
VIII. Procurement Request Process
1. Avoidance of purchasing unnecessary items
2. Technical Requirements
3. Dividing Procurements
4. Availability of Funds
5. Award of Contracts
6. Sole Source Contracts
7. Cost and Price Analysis
8. Procurement Records
9. Contract Provisions
10. 8a Small Businesses, Minority-owned Firms and Women-owned Businesses
11. Procurement Authorization Routing
a. Procurements over $500 and up to $15,000
b. Procurements over $15,000 and up to $50,000
c. Sealed Bid Procurements / Procurements in Excess of $50,000
12.
Bid Information Must Include the Following Information
13.
Acceptance of Procured Goods
IX.
Africare Purchase Order
X.
Bidding Process Instructions
XI.
Attachments
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AFRICARE PROCUREMENT POLICY
I. Purpose
1. To describe the AFRICARE regulations, rules, and procedures for procuring equipment,
supplies and non-personal services. (See Africare Manual Section 622 for Leases and 623
for Personal Services Contracts.)
2. To ensure consistency and integrity to Africare’s procurement process.
3. To ensure staff will prudently manage donor funds in relation to the procurement process
4. To provide employees with the understanding that penalties for failure to follow this policy
can include debarment, disallowance of the purchase by the donor, fines, legal action,
suspension of employment or termination of employment.
II. Authorities
Procurement authority may be exercised only by Africare employees who have been delegated
specific procurement authority by the President of Africare, and only within the specific limits of
the delegation of authority.
No Africare employee has implied authority to procure goods or services or otherwise obligate
Africare funds without prior approval.
Office Procurement
The Office Procurement has been delegated procurement authority.
Country Directors
Country Directors have been given limited procurement authority to make procurements
which do not exceed $15,000.00. PROCUREMENTS EXCEEDING $15,000.00, CAN
NOT BE MADE WITHOUT AFRICARE WASHINGTON’S PRIOR APPROVAL.
The Africare policy that requires headquarters’ approval for procurements/purchases greater than
$15,000 is clarified below:
Procurement or purchases are defined as the commitment of Africare funds for goods or
services either orally or in writing (through the issuance of a purchase order). Africare’s
procurement policy cannot be circumvented by issuing multiple purchase commitments for
amount less than $15,000 for like kind items that could be purchased more efficiently and
economically in bulk.
The fact that a category expense or a specific item has been approved as part of an annual
budget or work plan does not qualify as headquarters approval of a purchase.
Every employee is expected to process all procurements over $15,000, procurements for
sole source items above $5,000 and all procurements of restricted goods, regardless of value
through HQ.
Penalties: Any employee caught violating this directive will be subject to Section IV of this
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procurement policy and could face disciplinary action to include termination as well as a
requirement to reimburse Africare for all misspent funds.
Examples of types of purchases or procurements that must follow the procurement
process include but are not limited to; office and project supplies, equipment,
subcontracts, leases, materials, school equipment, livestock, fuel, hotels and facilities
for training etc.
Examples of types of purchases that do not require additional headquarters approval once
headquarters approves the initial document are rent payments (as long as the rent amount is
documented in the pre-approved lease and it has not changed), normal utility bills
(electricity, water, sewage, gas etc) and in-country travel.
Headquarters approvals must be evidenced by a completed Request for Procurement
Approval. In rare emergency situations, 8 hour turn around time can be provided via email
as long as supporting documents are available.
Africare views the USAID procurement regulations as a key element in project administration.
Understanding and utilizing the USAID regulations allows Africare to meet project obligations in a
timely manner, ensures contract compliance, and ensures cost effective use of funds designated for
commodity and services procurement.
This procurement policy follows the regulations as outlined in USAID ADS Chapters 301-330, the
OMB A-110, OMB A-122, 15 CFR, 22 CFR, Federal Acquisition Regulations (FAR), National
Defense Authorization Act of 1998, and the USAID standard provisions for Procurement of Goods
and Services. Africare’s HQ Procurement Officer is responsible for reviewing these regulations
using the most currently available issued Federal Guidelines and Regulations. When federal
regulations conflict with Africare’s written policies, the more stringent regulation will take
precedence.
The following sections provide the standards which Africare utilizes for the procurement of supplies
and other expendable property, equipment and services. Africare complies with federally mandated
regulations covering federal grant and contract recipients.
III. Code of Conduct and Ethics - Employee Handbook
No employee, officer, or agent shall participate in the selection, procurement, award or
administration of a contract supported by Federal funds or any other donor if a real or apparent
conflict of interest should arise. Such conflict would arise when the employee, officer or agent; any
member of his or her immediate family, his or her partner, or an organization which employs or is
about to employ any of the parties indicated herein, has a financial or other interest in the firm
selected for an award.
Officers, employees, and agents shall neither solicit nor accept gratuities or anything of monetary
value from contractors, or parties to sub agreement. These employees may accept unsolicited gifts
of up to $50 with authorization of the Director of Human Resources. These unsolicited gifts could
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include but are not limited to gift baskets, flowers, lunch etc. Violation of such standards of conduct
shall be subject to disciplinary action.
IV. Penalties for non-compliance to the procurement policy
Africare can, and will, disavow any unauthorized procurement. Africare Washington will notify the
employee in writing requesting immediate repayment for unauthorized procurements. After 30
days, if the employee does not respond or a lack of adequate justification for such procurement has
been provided, Africare will make a deduction against the violator’s payroll. The Office of the
President will approve the deduction. Additional action may be taken as well, depending on the
extent of the policy violation to include employment suspension or termination.
V. Definitions
A. Contracting Officer: An official designated to enter into or administer contracts and make
related determinations and findings. The President and those given his express authority to
include the Chief Operating Officer, Chief Financial Officer, and the HQ Procurement
Officer are designated Contracting Officers for Africare.
B. Source: The country where the item is purchased from and ships from.
C. Origin: The country where the commodity is mined, grown, built or manufactured.
D. Equipment: Non-expendable property that has a useful life of at least one year.
E. Supplies: Property or materials normally consumed in usage or of a value which does not
require the maintenance of property records such as small office supplies.
F. Local Procurement: Procurements in the host country’s market
G. Small Purchase: Under US Federal Acquisitions Regulations (FAR) as adopted by all US
Federal Agencies, a small purchase is any purchase having an aggregate amount of less than
$25,000.00
H. Small Business-Small purchase set asides: Each acquisition of supplies or services that has
an anticipated dollar value of $10,000 or less purchased in the United States shall be
reserved exclusively for small business unless exempted under FAR 13.105.
VI. Competition
All procurement transactions will be conducted in a manner to provide, to the maximum extent
practical, open and free competition. When procurements are made in the United States, positive
efforts will be made to utilize 8a small business and minority owned businesses for supplies and
services.
Solicitation for goods and services will be based upon a clear and accurate description of the
technical requirements for the goods or services to be procured. These descriptions must not
include features that restrict competition. "Brand names" can be used for equipment type and
descriptive purposes only, but should be avoided to reduce confusion of the technical specifications
of bid requirements. Brand names can never be used to exclude competition or to ensure “sole
source” awards.
Sole Source contracts should be avoided to ensure good business practice and open and fair
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competition etiquette under the AIDAR, FAR and that Africare policies are upheld.
Procurement awards shall be made with the vendors who can prove that they can perform
successfully under the terms and conditions of the proposed procurement and provide the most
advantageous bid/quote according to price, quality and other requirements specified in the bid
document. Consideration will be given to such things as vendor’s integrity, past record of
performance, and financial and technical resources.
VII. Procurement Procedures and Guidelines: Headquarters and Overseas Offices
The HQ Procurement Officer is responsible to provide oversight for the procurements process and
it’s compliance for the Headquarters and Overseas offices.
The Country Directors are responsible for ensuring that donor requirements are applicable to
USAID regulations as well as the purchasing policies and procedures outlined by Africare’s
procurement policy are followed. The Country Directors are responsible for ensuring that the
overseas project offices follow effective internal management control procedures to provide the
most efficient purchasing possible.
Before procuring goods and services, the Country Director must take the following into
consideration before deciding on where the goods should be purchased (local, U.S., or Third
Country):
Budget Allocation: Check the contract or grant - it may indicate that the source of
procurement must be U.S. manufactured unless the item is less than $5,000 and a U.S.
source is not available.
Availability of spare parts: Machinery and equipment may need replacement parts
and servicing. Unless orders can be placed with U.S. manufacturers who have a local
agent or representatives, goods from a local source which can offer service and repair
may be preferable.
Local environment: Power supply, humidity and temperature extremes can cause
problems with machinery, particularly computers.
Shipping time and expense: The length of time it takes to ship equipment and the
cost of such shipment must be compared to procuring similar equipment of the same
quality locally.
Geographic Code Restrictions: USAID uses State Department issued three-digit
geography codes to designate which countries are eligible sources of commodities
against federal contracts (not grants). When purchasing goods and services locally or
from a third country, the Country Representative must ensure that items are purchased
from a country that is eligible. Projects with a Geographic code designation of “000”
are required to “Buy American” under nearly all conditions and include any items
regardless of cost. Geo Code 000 can buy locally or in a third country only when it
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meets very specific guidelines outlined in the 22 CFR. If you are not familiar with the
specific exclusions under Geo Code 000, and your project has this designation, please
speak with the HQ Procurement Officer prior to creating a solicitation for bid.
Proscribed Countries: As of October 2010: The United States Federal Law restricts
direct procurement from manufacturers and companies in North Korea, Sudan, Cuba,
Iran and Iraq by contractors and grantees receiving Federal funds. In addition,
American manufactured products may not be authorized for purchase, if they are held
in a warehouse in those countries, even if the are sold by a US Corporation. You are
required to defer to the HQ Procurement Officer prior to dealing with any business
that you believe may involve products or services from proscribed countries.
US Federal Procurement Restrictions Mandatory Reference 303 in the Standard
Provisions for US Non-Governmental Organizations: The restricted items below
can not be procured under a US Federally Funded contract without an express written
waiver from the representative US Federal Contracts Officer. In addition, these
procurements need to be processed through Headquarters regardless of cost.
Restricted Goods requiring a written waiver: Vehicles, Agricultural
Commodities, Fertilizer, Pharmaceuticals, Pesticides, Used Equipment, US
Government Excess Property
VIII. PROCUREMENT REQUEST PROCESS:
The HQ Procurement Officer must authorize all procurement requests in excess of $15,000 initiated
by overseas and HQ personnel.
1.
Avoidance of purchasing unnecessary items. In order to avoid duplication, combine
purchasing power and reduce the purchasing of unnecessary items, the following procedures
must be adhered to:
a) All procurement requirements, specifically for the purchase of office supplies and
office furniture for Africare headquarters, must be coordinated through the US based
Africare House Manager.
b) Procurement for personal services must be coordinated through the Human
Resources Department.
c) All computer and software procurements over $500 US must be reviewed by the
Director of MIS at Africare HQ prior to purchase. This can be completed by email.
No form is required.
12. Technical Requirements: Solicitations for goods and services shall be based upon a clear and
accurate description of the technical requirements for the material, product or service to be
procured. Such a description shall not, in competitive procurements, contain features, which
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unduly restrict competition such as naming “brands”. Technical requirements must be translated
into English.
13. Dividing Procurements: Technical requirements and bid documents may not be fragmented to
avoid competition requirements. The aggregate amount of procurement includes ALL
components, equipment, “like” supplies, and services which would be included in a single
procurement to a single vendor. Procurements totaling more than $25,000 shall not be separated
for the purpose of utilizing small purchase methods under Section 13 of the Federal
Acquisitions Regulation (FAR).
14. Availability of Funds: No procurement may be authorized unless sufficient funds are available.
The fact that a category expense or a specific item has been approved as part of an annual
budget or work plan does not qualify as headquarters approval of a purchase. Procurements
which exceed funds available may subject an employee to disciplinary action and repayment
liability under Section III of this policy.
15. Award of Contracts: Contracts shall be awarded only to responsible contractors who possess
the potential ability to perform successfully under the terms and conditions of a proposed
contract. To be recorded as an obligation of Africare, a contract must be in writing. Oral
contracts are not enforceable and may not be recorded as obligations. Consideration shall be
given to such matters as integrity, record of past performance, financial and technical resources
or accessibility to other necessary resources. Contracts shall not be made to firms or individuals
whose names appear on the “List of Parties Excluded from Federal Procurement and Nonprocurement Programs” and the Office Of Foreign Asset Controls, as published by the US
Federal Government monthly. These documents can be searched online at http://www.sam.gov,
and http://www.ofac.gov.
16. Sole Source Contracts: All proposed sole source contracts (where only one proposal is
solicited) shall be subject to prior approval by the HQ Procurement Officer. Sole Source
contracts should be avoided to ensure good business practice and open and fair competition
etiquette under the AIDAR, FAR and that Africare policies are upheld, they can be unless
justified.
17. Cost and Price Analysis: Cost analysis is the review and evaluation of each element of cost to
determine reasonableness, the ability to allocate, and allow ability. Some form of price or cost
analysis should be made in connection with every procurement action greater than $500. Price
analysis may be accomplished in various ways, including the comparison of price quotations
submitted, comparing catalogue and sale flyer prices, reviewing price quotations available on
the Internet from reputable companies and market prices together with discounts.
18. Procurement Records: Procurement records for purchases of services or nondisposable goods
with grant funds shall include the following:


Basis for contractor selection
Justification for lack of competition when competitive offers are not obtained.
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


Basis for award.
The recommended choice of supplier should be noted on the procurement form along
with the current US dollar amount for approval if it is to be purchased outside of the US.
All records relating to any successful procurement must be stored and maintained for
period of up to three years after the project close.
A system for contract administration shall be maintained to ensure contractor conformance
with terms, conditions, and specifications of the contract, and to ensure adequate and timely
follow-up of all purchases.
9. Contract Provisions: Africare shall adhere to the 22 CFR (Code of Federal Regulations)
226.40 through 226.49 and OMB A-110.
10.
8a Small Businesses, Minority-owned Firms and Women-owned Businesses:
When purchasing in the United States, Africare will make every effort to contract with small
businesses, minority owned firms and women-owned businesses in cases where the purchase
is below the small purchase threshold of $25,000 to the fullest extent practicable. To the
maximum extent possible, Africare will provide the following information to the Office of
Small Disadvantaged Business Utilization (OSDBU/MRC), USAID Washington, DC 20523,
at least 45 days prior to placing an order or contract:
In cases where the purchase price exceeds the small purchase threshold, Africare will
comply with all requirements described in 22 CFR Part 226.44.
a) Brief general description and quantity of goods and services;
b) Closing date for receiving quotations, proposals or bids; and
c) Address where solicitations or specifications can be obtained.
11. Procurement Authorization Routing:
Procurements over $500 and up to $15,000:
 The Country Director is responsible to initiate a procurement request. The
Country Director will obtain no less than three verbal bids for items up to
$3,000 and no less than three written bids for items above $3,000. All verbal
bids must be documented on the verbal bid form in full and complete detail.

The Country Director will complete Africare’s procurement request form for
procurements from $500 to $15,000 and attach the following:
o At least 3 written quotations for purchases greater than $3,000. Quotes
MUST include the vendor name, address and contact information.
o a list of the technical requirements used for bid purposes – this is
absolutely required under US Federal Regulations.
o A completed Africare Procurement Authorization
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o A copy of the EPLS page showing that due diligence has been used to
avoid procuring from a disbarred vendor.
o A copy of the OFAC page showing that due diligence has been used to
avoid procuring from a vendor in violation of E.O. 13224.

The Country Director should then review his or her paperwork and certify that
the document comply with of all Africare Procurement Policies and donor
requirements. The certification is subject to Section III and section IV of the
Africare Procurement Policy.

A copy of all procurement documentation will be kept in the field office. All
procurement records must be maintained for up to three years after the close of
the project. These documents are subject to audit. This includes the basis for
vendor selection, justification for lack of competition when competitive bids or
offers are not obtained, and basis for award cost or price are documented and
kept in project-specific procurement files at Africare Washington.
Procurements over $15,000 and up to $50,000:
 The Country Director is responsible to initiate a procurement request. The HQ
Procurement Officer will assist in obtaining bids and writing technical
specifications as needed.

The Country Director will complete Africare’s procurement request form and
attach the following:
o At least 3 written quotations for purchases greater than $15,000. Quotes
MUST include the vendor name, address and contact information.
o A list of the technical requirements used for bid purposes – this is
absolutely required under US Federal Regulations.
o A completed Africare Procurement Authorization
o A copy of the EPLS page showing that due diligence has been used to
avoid procuring from a disbarred vendor.
o A copy of the OFAC page showing that due diligence has been used to
avoid procuring from a vendor in violation of E.O. 13224.
Once the items are put together they should be forwarded to the Africare
Washington Program Manager.

The designated Africare Washington Program Manager reviews the
procurement for budget availability and contract/grant compliance and signs
where designated.

If the procurement is for a technical department (OFA or OHHA), the Program
Manager will consult the technical department director to ensure that the
procurement fulfills the need of the program and complies with the contract or
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grants technical requirements. If there is concurrence, the program manager
signs the document and it moves to the HQ Procurement Officer.

The HQ Procurement Officer then reviews and approves or declines the
procurement based on whether or not the procurement complies with applicable
Africare policies, or Federal or Donor Regulations covering the grant or
contract. This is the final review for approval on procurements up to $50,000.

The Project Manager will be notified of the procurement approval or denial.
This person will then notify the field that their procurement is approved by
email.

The basis for vendor selection, justification for lack of competition when
competitive bids or offers are not obtained, and basis for award cost or price
are documented and kept in project-specific procurement files at Africare
Washington. The field office will maintain the approval email with their
procurement file.

In the future, Africare will include placing the approved documents on the
intranet for access by the country office.
If all of the required documentation is provided, the procurement processing from
HQ should take a three business days to process.
12.
Sealed Bid Procurements / Procurements in Excess of $50,000:
For procurements in excess of $50,000:


This procurement is initiated when a Country Director or Administrative
Officer from a country office sends a draft request for bid with technical
requirements to the HQ Procurement Officer.
Once the request is reviewed and discussed with the HQ Procurement Officer
and Program Manager, the Country Director will send out a formal “request for
bid” notice to all potential vendors or publish the request in the newspaper.

A sealed bid process must be used.

Sealed Bid for Procurements are opened in the presence of a three person
committee composed of the Country Director if the purchase is in the field, the
HQ Procurement Officer if the purchase is US based and at least two other
employees not directly involved in the payment of the vendors. Once a bid has
been awarded to a vendor, a purchase order should be issued.
o All bids must be received in a sealed envelope and kept in a safe until a
panel is convened to review the bids.
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o All bids are opened together and reviewed by a panel of no less than 3
people. Any bid arriving in an opened envelope will be considered void.
o One member of the panel should be the Country Director them opens
the bids at the stated day and time.
o The panel reviews the bids and chooses a vendor.
o All procurement documents to include a detailed outline as to how the
procurement was conducted and who the panel members were shall be
forwarded to the Program Manager at HQ.

The designated Africare Washington Program Manager reviews the
procurement for budget availability and contract/grant compliance. If approved,
it is then forwarded to the HQ Procurement Officer.

The HQ Procurement Officer then approves or declines the procurement based
on the procurement compliance to all applicable Africare and Federal or Donor
Regulations covering the grant or contract.

For procurements over $50,000, the President or his/her designate will provide
final review and approval signature.

The Procurement office will then notify the Program Manager when approval
is made.
If all of the required documentation is provided, the procurement processing from
HQ should take 5 days or less.
14.
Bids Information Must Include the Following Information
i. Name of Business or Vendor
ii. Address or Location of Business. An address can be a description of where
a vendor is located in a market or street corner.
iii. Contact phone number for the business if available
iv. Salespersons name if applicable
v. Part, equipment or itemization of goods with price and all applicable
charges
vi. Value added items such as warranties, extra replacements parts, free
software
vii. Sale Ads may be used to show price competition but they must include an
inventory number or SKU number.
15.
Acceptance of Procured Goods
Goods MUST meet the approved procurement and be received in good order exactly
as it was agreed under the proforma provided by the vendor. If the goods do not meet
what was agreed- do not accept the goods.
All of the equipment, parts and items listed on the proforma must be delivered as
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agreed or the agreement and procurement approval is immediately null and void. If
you receive inferior goods, incomplete goods or a different item DO NOT accept
delivery or make payment. Contact the Procurement Department at Africare
Headquarters for Instructions. In some cases you may be able to award the contract to
the second vendor choice or the entire procurement may need to go back out to bid.
IX.
Africare PURCHASE ORDER
All US domestic purchases over $500 require a Purchase Order. Purchase orders are
completed upon procurement approval by the HQ Procurement Officer or his/her designee.
The purchase order represents a legal contract which binds Africare and the vendor to the
responsibilities and liabilities stipulated herein.
All Africare Field office local purchases over $500 are required to have a purchase order
issued.
The following information must appear on the purchase order:
X.
a.
Vendor's name and address: This information must appear in full.
b.
Shipping address and terms-Ground/Air/Next Day etc.
c.
Date of purchase order: The date indicated is the date the purchase
order is signed by the HQ Procurement Officer and sent to the vendor.
d.
Delivery date: A definite date when shipment or delivery is to be made
must be indicated. Terms such as "immediately" or "as soon as
possible" are too vague to be binding and should be avoided.
e.
PO #: Purchase order numbers are numbered consecutively and by
month, year and charge code. Africare HQ Procurement Officer keeps a
record of US Domestic purchase order numbers.
g.
Description: The description or specification of the goods or services
to be purchased is the most critical element of the purchase order.
Where purchase orders pertain to services to be provided, obligation of
the provider should be clearly spelled out.
h.
Price amount: The purchase price is expressed in terms of the cost per
unit in which the purchase is made. On large orders, unit price might be
expressed per ton. If so, the type of ton (long, short, metric) must be
specified. The unit price should clearly indicate whether the figures
shown are expressed in U.S. dollars or in local currency of the country.
BIDDING PROCESS INSTRUCTIONS
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Once a concise specification of what kinds of goods and services are to be procured for a
contract (this formality would not need to take place for a grant or cooperative agreement),
an invitation to bid is prepared.
An invitation to bid has four parts: 1) Instructions to bidders; 2) Specifications of goods to
be procured; 3) Conditions of contract; and 4) Bid opening.
XI.
1)
The instruction section is in a letter format. It includes such information as the
bid opening date; the address where bids should be sent to; bid closing dates;
instructions about bid format; and information about the basis by which the
bids will be evaluated and awarded.
2)
The specifications section of the bid includes detailed information about the
goods being ordered. This information should include: context in which the
goods will be used; the quantity of the goods needed; the number of spares
needed; the period the goods are to be used for; and the extent of use (heavy
medium or light).
3)
The conditions of contract section provide such information as: method of
payment; geographic code restrictions; pre-inspection of goods before they are
shipped overseas; "Force Majeure" clause; termination clause; and warranty
clause.
4)
Sealed Bid for Procurements are opened in the presence of a three person
committee composed of the Country Director if the purchase is in the field, the
HQ Procurement Officer if the purchase is US based and at least two other
employees not directly involved in the payment of the vendors. Once a bid has
been awarded to a vendor, a purchase order should be issued.
Attachments
Procurement Form
Verbal Bid Form
Invitation to Bid Sample
PROCUREMENTSCHEDULE
US DOLLAR
DIRECTIONS
$
200.00
Process & batch as usual with receipt/invoice and Supervisor approval
$
500.00
Prepare Purchase Request, assign number, file own folder,
approval
$
3,000.00
Prepare Purchase Request, assign number, document 3 verbal bids,
approval
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$
14,999.00
Prepare Purchase Request, assign number, file own folder, 3 quotes,
approval
$
15,000.00
HQ for Approval Prepare Purchase Request, assign number, file own
folder, 3 quotes, approval
$
50,000.00
Sealed Bid
Process
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