Procurement Manual
Module 10: Contractual Instruments
 
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  Systems Contract

Systems Contracts are used when the Procurement Officer/Assistant determines, in consultation with the Requisitioners based on previous experience and project needs, that the deliverables to be procured are required on a recurring basis over an extended period of time. Systems Contracts can be used for a broad range of deliverables. The simplest Systems Contracts are the BPOs. At HQ, Systems Contracts have been used for the provision of office products and equipment, and computer and related help-desk services. At the Field Mission level, a more complex version of the Systems Contract, which permits a Field Mission to order directly from several vendors, has been used.

"Performance Based Contracting" and other techniques such as "Incentive Contracting"
may be useful tools in developing Systems Contracts.

Procurement Staff shall work closely with Requisitioners to develop Acquisition Plans that will enable the establishment of Systems Contracts. Systems Contracts shall normally be awarded after competitive bidding, generally using a Request for Proposal. The UN usually enters into Systems Contracts on a non-exclusive basis.

Advantages of Using System Contracts
System Contracts facilitate prompt processing of procurement requirements and minimize the number of time-consuming and repetitive solicitations for the same item(s). The unit price(s) offered by the vendors should also be lower due to the larger volumes the selected vendor will be expected to deliver, thereby making it possible to realize economies of scale for both parties.

Click the Online PM to read more about systems contract.

Glossary

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