Procurement by Sub-recipients

UNDP has determined that direct procurement by Sub-recipients (SRs) constitutes significant organizational and operational risks to UNDP for a number of reasons, including the process itself, the amount of money involved, the risk of procuring sub-standard products, paying too much and the potential for fraud. As a result, UNDP does not permit SRs to procure health products for their activities. Procurement in the framework of SR agreements should be limited to minor office supplies and other similar items of limited value. Capital assets should be procured by the Country Office (CO). In no instance should the SR spend more than 10 percent of its budget or $100,000, whichever is less, for procurement. At the time of SR contracting, when the SR work plan and budget are agreed, the UNDP CO should ensure this is observed.