Preventing Corruption in Humanitarian Operations section I: institutional policies and guidelines
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EMERGENCY PREPAREDNESS
Pre-supply arrangements
A. Role against corruption A list of pre-approved suppliers who can quickly compete for your business in an emergency, increases transparency and efficiency in rapid response. Compiled for a fixed period, after a competitive process or market surveys, a pre-approved supplier list allows speedy procurement without the risk of corruption that occurs when there’s no time for a full procurement process. Selecting potential suppliers before an emergency allows the opportunity for a full search for and vetting of companies, by staff free from conflicts of interest and fully trained to be vigilant against corruption (such as kickbacks, bribery or personal benefits). Pre-approved supplier lists increase your organisation’s control of its emergency response, and are a robust way of keeping corruption out of your supply chain. B. Implementation measures • Identify and contact a long-list of potential suppliers Advertise, select candidates from published lists (phone books, online) or ask colleagues and sector peers for recommendations. Ensure potential suppliers are willing to be on your final prequalification list and to respond to short notice solicitations. Establish clear selection criteria for inclusion on your final list. Understand which countries or regions the suppliers will be able to service. • Thoroughly investigate candidates for your final list Assemble a team aware of corruption risks and free from conflicts of interest that can assess potential suppliers in much more depth than would be possible in a crisis and identify ‘phantom suppliers’. They should compile a list of recommended suppliers, with a rationale for each, which is then approved by a procurement director and can be used to invite short notice competitive quotations or bids when a crisis hits. Staff should document the whole process for future reference, institutional memory and in case disputes arise. • Use Long-term agreements (LTAs) where appropriate Based on projected needs, LTAs can be a reliable and cost-effective supply option. Typically lasting 3-5 years, LTAs with suppliers are best for orders of high-value products or services frequently requested. All terms of supply are agreed beforehand (price, ordering methods, delivery terms, etc.), allowing a streamlined process when needed. Be clear that your LTA includes the need for stock availability and emergency preparedness, and is non-exclusive: purchase is not mandatory. • Regularly review pre-approved suppliers Monitor how well a contract is fulfilled, and evaluate the performance of suppliers you’ve used – did they provide the best value for money? Re-assess your list as appropriate, e.g. every six months, allowing new suppliers a chance to join. Flag clearly and keep a record of non-performers – remove them from the pre-approved list if necessary.