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)
CO Resident Representatives
Bureau Directors
Heads of Various Outposted HQ Units
RACP Approval required for all ICs above $100,000 in a 12-month period
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
IC Level
Degree of Expertise; Complexity; Availability
RANGE OF DAILY RATE IN US$ A
Junior Specialist (ICSC8-9) B
Specialist (ICSC-10-12) C
Senior Specialist (ICSC-13-15)
550-1,000
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 Contract Value Sourcing Strategy
Must include Financial Offer?
Evaluation Method
Reference Check (for recommended candidate)
Review of Award
< $2,500
No competition needed. Past performance and Note-to-File suffice
Yes, even if only for 1 candidate
Review against criteria stated in Note-to-File
To be determined by requisitioner, depending on assignment
*Evaluation team prepares and signs the Note-to-File for RR’s approval
**$2,500
up to $100,000
At least 3 qualified applicants to be considered (Advert.optional)
Yes
Desk review and/or interview
Yes, at least 2 (valid for 2 years)
RR approval for awards above $30K
Above $100,000
Advertisement is mandatory
Interview mandatory
Yes, at least 2 (valid for 2 yrs)
RACP approval
* 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
UNDP
Candidate 1
Candidate 2
Candidate 3
Standard IC Procurement Notice
TOR
Applicants submit to UNDP the following:
Letter of Interest
Brief Methodology and approach to the work
Personal CV
Financial Proposal
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
I C CATEGORIES
Nature of Work
Intellectual/Strategic/ Substantive Work
Support Services
Examples
Prodoc writing, technical advise, mid-term evaluation, etc.
Documentor, facilitator, etc.
Evaluation Method
The evaluation process may occur through a desk review, or with a succeeding validation process through an interview.
Best Value for Money
Takes into account a balanced combination of applicants’ qualification and financial offer, ideally at 70%-30% distribution.
Lowest Evaluated Offer
Best used for contractors performing support services.

19. OFFER EVALUATION METHODS
Screens all applications and shortlists a minimum of 3 CVs
Prepare an evaluation grid listing the criteria and corresponding weight
Criterion shall be evaluated as follows:
The Requesting Unit
Candidate has demonstrated an OUTSTANDING capacity for analyzed competence 5
Candidate has demonstrated a VERY GOOD capacity for the analyzed competence 4
Candidate has demonstrated a GOOD capacity for the analyzed competence 3
Candidate has demonstrated a SATISFACTORY capacity for the analyzed competence 2
Candidate has demonstrated a WEAK capacity for the analyzed competence 1

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.