Doc 9761

ICAO PROCUREMENT CODE

Approved by the Secretary General

and published under his authority

19 August 2013

INTERNATIONAL CIVIL AVIATION ORGANIZATION

RECORD OF AMENDMENTS
Amendment
No.

Paragraph(s)
amended

Date
entered

Entered
by

2; 6; 8;11

19 August 2013

PRO

(ii)

TABLE OF CONTENTS

Page
Article 1.

General principles for the procurement of equipment, supplies and services ..............

Article 2.

Contracts Board ............................................................................................................

Article 3.

Procurement planning ..................................................................................................

Article 4.

The Requisition ............................................................................................................

Article 5.

Roster of suppliers........................................................................................................

Article 6.

Solicitation ...................................................................................................................

Article 7.

Technical and commercial evaluation ..........................................................................

Article 8.

Approval Authorities and process ................................................................................

Article 9.

Contractual signing authorities.....................................................................................

Article 10.

Purchase order/contract administration and management ............................................

Article 11.

Sale, disposal and writing off of equipment and supplies ............................................

Article 12.

Access to procurement information .............................................................................

______________________

(iii)

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ICAO PROCUREMENT CODE

Article 1
GENERAL PRINCIPLES FOR THE PROCUREMENT OF
EQUIPMENT, SUPPLIES AND SERVICES
1.1

The overall objective of ICAOs procurement activities shall be to ensure that procurement of
equipment, supplies and services is carried out in the best interest of the Organization and/or
assisted States, having due regard to availability of funds; economy; efficiency; accountability;
national, regional or international competition; and applicable international aviation standards.1

1.2

This Code applies to all procurements initiated and administered by all staff at Headquarters,
in the Regional Offices and in the Technical Co-operation Project Offices, regardless of the
source of the funds used for procurements.

1.3

To support this Code, detailed procurement procedures shall be established under the
authority of the Director, Technical Co-operation Bureau (D/TCB) and incorporated into the
Procurement Procedures Manual. D/TCB shall ensure that all concerned staff receive proper
training with regard to the ICAO Procurement Code and Procedures.

1.4

Should any matter arise in the course of a proposed procurement which cannot be dealt with
under any of the Articles in this Code, the matter shall be referred by the Director, Technical
Co-operation Bureau (D/TCB), through the Chairman of the Contracts Board, to the Secretary
General for decision.

1.5

The procurement functions in ICAO are assigned to D/TCB. The authority to contract for the
provision of equipment, supplies, services and other requirements is vested in C/PRO and
those specified in paragraph 1.10.

1.6

No other entity within ICAO at any stage of a proposed or current procurement shall contact
any potential source of supply and request price quotation, purchase or commit ICAO to
contractual obligations or changes, or amend any contract/purchase order unless an exception
is specifically granted in writing by the Secretary General or as otherwise expressly provided
for in this Code.

ICAO Procurement Services may be provided in accordance with Assembly Resolution A36-17, Appendix A to any
entity that has civil aviation as its primary activity and in fields related to civil aviation, be it equipment, construction
works, or related services. Non-aviation related supplies/services such as painting, flooring, lighting, etc., shall only
be procured by the Technical Co-operation Bureau as an integral part of a turnkey project relating to a civil aviation
infrastructure project or MSA. The Contracts Board is not responsible for reviewing or providing advice on the
adequacy or necessity of the requirement being met under the proposed procurement action. Such responsibility
rests with the allotment holder approving the request for procurement action

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1.7

The authority to procure includes the authority to identify potential suppliers; to invite tenders
and quotations; to negotiate with the recommended suppliers on the basis of ICAOs General
Terms and Conditions, as well as of pre-established specifications; and to award contracts.
The authority to procure also includes the authority to amend any existing contract.

1.8

Any staff member entering into a contractual agreement without the appropriate written
authority under this Code may be held personally liable for the financial consequences of such
an arrangement.
The dollar value referred to in this Procurement Code corresponds to United States dollars for
field procurements and Canadian dollars for regular programme procurements.

1.9

1.10

Allotment holders at Headquarters and in the Regional Offices, as well as the field project
personnel authorized by D/TCB, have, subject to the provisions of this Code, delegated
authority to procure goods and/or services provided the value of the procurement does not
exceed $10 000 per purchase order. Multiple contracts with the same supplier, for the
same category of good and/or service, shall not be established with the purpose of
exceeding the authority granted in this paragraph. The allotment holders at Headquarters
and in the Regional Offices, as well as the field project personnel authorized by D/TCB,
have the responsibility to provide to C/PRO, on an annual basis, relevant data on such
procurements for submission to the ICAO Contracts Board.

1.11

Procurements, other than purchases from petty cash, shall be carried out by means of a
purchase order or separately written contract as appropriate. For ICAO Headquarters
procurements up to $1 000, a formal purchase order is not required. Payment will be effected
by FIN against an invoice that has been certified and signed by the allotment holder.

1.12

Memoranda of Understanding (MOUs) or similar arrangements should not include the

provision of goods or services to ICAO in return for payment by ICAO. Should ICAO have a
requirement for goods or services for payment, such requirement shall be met following
ICAOs Procurement rules.

Article 2
CONTRACTS BOARD
2.1

The Contracts Board is established in ICAO to examine and provide recommendations to

D/TCB and the Secretary General on procurements and possible amendments to previously
approved contracts and agreements in accordance with Article 8 of this Code.

2.2

The role of the Contracts Board, as an independent and objective committee, is to provide
global oversight of the procurement process and to review procurements with the purpose of
ensuring that the ICAO procurement procedures have been followed with respect to the
solicitation process, evaluation and selection of the recommended supplier, including the sole
source determination, if any. The Contracts Board shall also review and provide
recommendations for outsourced services as well as revenue-generating contracts. The
Contract Board shall review all procurements above the limit indicated under Article 8.1 of
this Code. Without limiting the generality of the forgoing, the Contracts Board shall review

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that:
the Contracts Board submission is signed by C/PRO and D/TCB;
the appropriate solicitation method has been selected as per Article 6 of this Code;
the tender was publicly advertised on ICAOs website;
sole source determination, if applicable, is properly justified with accompanying form
duly signed;
the evaluations have been carried out in accordance with Article 7, duly signed and
further approved by C/PRO.
2.3

In order to perform its function, the Contracts Board shall be provided with the necessary
supporting documentation. The Procurement Section shall ensure that the submission is
complete, approved by C/PRO and that it represents an authentic and accurate summary of the
relevant aspects of the proposed procurement.

2.4

The Contracts Board shall be comprised of three members as follows:

Chairman:
Director of Legal Affairs and External Relations Bureau, or an alternate
designated by the Secretary General
Members:
Director, Air Navigation Bureau or Director Air Transport Bureau or
Director of Administration and Services Bureau; the Director participating
in the Contracts Board shall not be the one for whose organizational unit
the procurement is being effected;
Chief, Finance Branch.

2.5

C/PRO shall be the Secretary of the Contracts Board.

2.6

The members of the Contracts Board may designate senior officers in their bureaux as alternates
to perform their functions. Any alternate shall have commercial, financial or legal experience,
or other relevant qualifications including qualifications in procurement.

2.7

The Chairman of the Contracts Board may, at his/her discretion, or upon the recommendation
of Contracts Board members or the Secretary, convene a physical meeting of the Contracts
Board and request the attendance, in an advisory capacity, of other officers or staff members;
however, physical meetings are mandatory for procurements in excess of $3 000 000.
Recommendations of the Contracts Board shall be documented in the form of the Contracts
Board submission, duly signed and filed in an appropriate format in the Procurement Section.
Article 3
PROCUREMENT PLANNING

3.1

ICAO allotment holders and authorized field project personnel should, based on the approved
allotment for the coming year, plan the procurement of major equipment, supplies and
services. Procurement plans shall, to the extent possible, be submitted to C/PRO no later than
31 January each year. The requirements not identified in the annual procurement plan should
be brought to the attention of C/PRO without delay.

3.2

The annual procurement plan submitted by allotment holders/authorized field project personnel
3

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shall be used by C/PRO to arrange the procurement actions in the most cost-efficient way for
the Organization.
Article 4
THE REQUISITION
4.1

The requisition is the fundamental document on the basis of which the Procurement Section
shall carry out the procurement. The requisition is approved by the relevant allotment holder
in respect of the regular programme budget and by other relevant field project personnel who
have been authorized in writing to commit funds in respect of the Technical Co-operation
Programme.

4.2

Each requisition shall contain:

a) a complete description of the equipment, supplies or services to be procured, supported,
where appropriate, by technical specifications, terms of reference and other critical
information relevant to the proposed procurement without the need to refer to any other
source of information;
b) project code and cost centre and work order numbers;
c) price estimate based on the best knowledge of the requisitioning office.

4.3

The allotment holder/authorized field project personnel shall have the responsibility for
ensuring that the funds as set forth in the requisition are available or that the expense to
initiate the procurement is authorized by a designated officer.

4.4

C/PRO may, where appropriate, and in collaboration with the allotment holder/authorized
field project personnel, propose a revision to the content of the requisition to ensure that the
procurement serves the best interests of the end user. Justification for the revision of the
requisition shall be properly documented.

Article 5
ROSTER OF SUPPLIERS
5.1

A roster of potential suppliers will be established and maintained by the Technical

Co-operation Bureau to facilitate the compilation of bidders lists for competitive tendering.

5.2

Applicants for the supplier roster shall have the possibility to register through the ICAO
website. ICAO reserves the right to disqualify suppliers and exclude them from the roster
under defined conditions which shall be published on the ICAO website.

5.3

All supplier information and documentation shall be used by ICAO for internal purposes
only. Member States may be provided with a list of suppliers from their States who have been
included on the roster.

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Article 6
SOLICITATION
6.1

Except as stipulated in paragraph 6.6, the award of contracts for equipment, supplies and
services shall be made on the basis of formal competitive procedures as set forth in this Code.
Requests for quotation or sealed tender shall be issued on an international or local basis,
taking into account possible sources of procurement and cost efficiency of project
implementation.

6.2

Two types of solicitation documents shall be used for procurements depending, inter alia, on
the monetary thresholds, namely:
a) Request for quotation shall be used for the procurement of equipment, supplies and
services of an estimated value not exceeding $100 000 per procurement or for Sole
Source procurement.
b) Request for sealed tender shall be used for the procurement of equipment, supplies or
services having a total value of $100 000 or more.

6.3

All competitive procurements above $10 000 shall be advertised on ICAOs website and by
other means when appropriate.

6.4

Sealed tenders shall be submitted through ICAOs website and shall be opened only by the
designated responsible person in the Bureau of Administration and Services (ADB). Hard
copies of technical information may also be required and should be sent to ICAOs Central
Registry before the closing date, indicating the sealed tender reference number. Pricing or
financial information provided directly to any ICAO staff member before the closing date
will automatically disqualify the supplier from the tender exercise.

6.5

When circumstances so require, C/PRO may extend the deadline for the receipt of tenders and
this extension will be published on the ICAO website.

6.6

Contracts/purchase orders may be awarded or issued on a sole-source basis provided:

a) the value of the procurement is below $5 000; or
b) there is no competitive marketplace for the requirement, such as where a monopoly
exists, where prices are fixed by legislation or government regulation, or where the
requirement involves a proprietary product or service; or
c) there is a need to standardize this requirement, or where for technical reasons,
compatibility with other systems or equipment is essential; or
d) offers for identical products and services have been obtained competitively within the last
three months, and the prices and conditions offered remain competitive; or

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e) the previous solicitation was completed less than six months earlier and did not provide
satisfactory result; or
f) the order is to be placed with the UN recommended supplier who offers preference
pricing in accordance with the UN Standardized Equipment Lists; or
g) there is a genuine exigency for the requirement. An exigency is defined as an exceptional
compelling and emergent need, not resulting from poor planning or management, or from
concerns over the availability of funds, that will lead to serious damage, loss or injury to
persons if not addressed immediately; or
h) when the proposed procurement contract is the result of co-operation with other
organizations of the United Nations system. or
i)

6.7

C/PRO has determined that formal solicitation will not give satisfactory results.

Justifications for sole source procurements must be supported in writing and approved by
C/PRO or, for procurements below $10 000, by the allotment holder.

Article 7
TECHNICAL AND COMMERCIAL EVALUATION
7.1

There shall be a technical and commercial evaluation of all quotations and tenders received in
competitive or sole-source procurements.

7.2

The basis of the evaluation process is to:

a) compare the bids received with the ICAO technical specifications and ensure that all
intended functional and operational requirements of the equipment and/or services are
met;
b) assess the reasonableness of the price and compliance with ICAOs General Terms and
Conditions;
c) assess the financial integrity and standing of the recommended supplier and/or the
capacity to deliver the goods and/or services as tendered.

7.3

The evaluation of the tender proposals shall be performed by an adequately qualified and
independent consultant under the guidance of the technical officer, or by the requisitioning
office/project. The Chief of the Procurement Section shall validate and approve or reject the
evaluation for all procurements in excess of $10 000. The recruitment of the external consultant
shall, to the extent possible, exclude candidates from those States submitting tender proposals.

7.4

Persons conducting the evaluation must not be in any conflict of interest situation, and must
so attest for each procurement.

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7.5

A technical evaluation may be waived for off-the-shelf parts, spare parts, books and manuals.

7.6

If no agreement can be reached with the contract State/customer regarding the evaluation
carried out by ICAO, then ICAO shall not proceed further with the procurement. The
corresponding funds shall be returned to the customer, with due regard to ICAOs fees for the
procurement process. Otherwise, once the approval from the customer is received, the
negotiation or award process may commence.

7.7

If, as a result of the evaluation, it is identified that there is a need for minor quantitative or
technical adjustments, corresponding negotiations with the selected bidder may be
undertaken and the summary of these negotiations, together with an explanation of any
adjustments in price, shall be placed on the appropriate procurement file. In no case shall the
negotiations result in a change to the ranking of the selected supplier.

7.8

Contracts for equipment shall be awarded to the supplier who submits the lowest-priced,
technically acceptable tender and meets all other conditions specified in the solicitation
document. Contracts for services shall be awarded to the supplier who submits the best value
for money proposal and meets all other conditions specified in the solicitation document.
The basis on which a conclusion is made to award or recommend an award of contract shall be
properly recorded in writing in the respective procurement file.

Article 8
APPROVAL AUTHORITIES AND PROCESS
8.1

All procurements must be approved by the designated Approval Authority prior to issuance of
a purchase order/contract, or its amendment, committing the Organization to a contractual
obligation. For the purpose of this Code, the designated Approval Authorities are as follows:
Procurement value

Designated Authority

a) $200,000 and above, including sole

source of $50 000 and above

Secretary General, upon recommendation

of the Contracts Board

b) up to $199 999, including sole source

up to $49 999

Allotment holder

d) up to $10 000

Allotment holder/authorized field project

personnel (as authorized under Article 1.10)

8.2

When necessary, the Secretary General, D/TCB and/or C/PRO may reject all tenders or
quotations received for a procurement by cancelling the selection process and, according to
the case, subsequently inviting new competitive tenders or quotations for the same
procurement under revised specifications and/or conditions where appropriate. Cancellation
of the selection process will be published on the ICAO website.

8.3

Contracts or purchase orders shall not be issued to suppliers without the prior certification of
availability of funds by FIN through the ICAO financial system as well as approval by the

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allotment holder or the relevant Technical Co-operation officer attesting that the proposed
obligation is in accord with the purposes of the approved programme or project.
8.4

When a contractual commitment is in a currency other than the budget currency, D/TCB may
request C/FIN to buy such currencies as deemed necessary to fund specific purchase orders or
contracts.

8.5

Purchase orders/contracts shall include ICAOs approved General Terms and Conditions.
Any significant deviations from ICAOs approved General Terms and Conditions shall be
reviewed and cleared by LEB before the issue of the contract or purchase order.

8.6

Contracts for outsourced services such as, but not limited to, travel, mail delivery, security,
cafeteria and catering, freight forwarding and building maintenance may be awarded for an
initial period of up to two years with the possibility of extension for a further period of two
years.

8.7

When it is planned to extend a contract for outsourced services beyond the initial contractual
period of two years, at least three months prior to the expiry of the contract, the responsible
allotment holder shall complete a comprehensive review of the services, the performance of
the contractor and the prevailing market conditions for the type of services. The review shall
be properly documented and submitted to those authorized to make procurements with a
recommendation as to whether or not the contract should be extended. The extension of the
contract shall be subject to the same approval process as a new contract.

8.8

In any case where the final contract price, or a price increase resulting from a change order,
exceeds the value approved by the designated authorities specified in Article 8.1 above, by 10
per cent or $100 000, whichever is less, prior to issuance of the purchase order, contract or
change order, the circumstance giving rise to the increase shall be submitted for approval to
the appropriate designated authorities based on the final price (Secretary General, Allotment
holders).

Article 9
CONTRACTUAL SIGNING AUTHORITIES
9.1

The authority to sign contracts/purchase orders, including those recommended by the

Contracts Board and approved by the Secretary General or allotment holders shall be
delegated to Chief, Procurement Section and those specified in paragraph 1.10. Chief,
Procurement Section and the allotment holders may designate alternative officers in their
sections to sign contracts/purchase orders on their behalf at a predetermined monetary
threshold.

9.2

The list of alternates who are authorized to sign purchase orders/contracts and their monetary
thresholds shall be approved by D/TCB and provided to FIN and EAO. Original specimen
signatures for those authorized to sign any financial/legal document shall be kept on file in the
Finance Branch.

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9.3

For purchase orders/contracts at a value greater than $5 000 000, the purchase orders/contracts
shall be countersigned by D/TCB.

Article 10
PURCHASE ORDER/CONTRACT ADMINISTRATION
AND MANAGEMENT
10.1

Acceptance of the purchase order shall form a binding contract, with the supplier signing and
returning the signed acknowledgement form section of the purchase order or delivering the
goods and/or services in accordance with the specified delivery time indicated on the
purchase order.

10.2

The awarding of a contract shall be considered complete once the contract has been signed by
the contractor and ICAO. The signing of the contract and associated purchase order for
internal accounting purposes may be arranged on the same date as long as availability of
funds as per paragraph 8.3 has been established.

10.3

Administration and management of a procurement project and monitoring of a contractors

performance shall be performed by the Procurement Section in cooperation with the allotment
holder and/or the authorized field project personnel. The administration of the contract/purchase
order shall cover all the actions necessary for the monitoring, execution and completion of the
procurement.

10.4

Contracts/purchase orders shall normally provide for payment once goods have been received
and accepted and/or services rendered. When the interests of ICAO so require, contracts/
purchase orders may provide for an advance payment, which should normally not exceed
40 per cent of the contract/purchase order price. All advance payments shall be secured by a
guarantee issued by a recognized bank or financial institution in a form approved by FIN, in
consultation with LEB as appropriate.

10.5

Receipt of goods and/or services, or achievement of a contractual milestone associated with a

payment, shall be confirmed by the requisitioner, end user or procurement staff, as
appropriate, and forwarded to FIN. Payment of all invoices shall be reviewed and effected by
FIN.

Article 11
SALE OF EQUIPMENT AND SUPPLIES
11.1

The sale of obsolete equipment and supplies written-off or proposed to be written-off shall be
arranged by PRO on the basis of an invitation of proposals from potential buyers and in
accordance with established procedures.

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Article 12
ACCESS TO PROCUREMENT INFORMATION
12.1

Procurement information may be provided to external entities on a need-to-know basis, with

due consideration to ICAOs status.

END

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