Supplies and Food Aid - Field Handbook (UNHCR, 1989, 296 p.) CHAPTER 1 - IDENTIFICATION OF NEEDS 1.1 The Supplies and Food Aid Function (introduction...) Chart 1.A: Objective of the Supplies and Food Aid Function Chart 1.B: Refugee Assistance - Needs Identification 1.2 Planning and Budgeting (introduction...) Annual Project Submissions Chart 1.C: Identify Material Assistance in Every Project Plan Emergency Response 1.3 Specification of Needs (introduction...) Chart 1.D: Sources of Standard Specifications for UNHCR Supplies and Food Aid Telecommunications Equipment Other Equipment Vehicles, Spare Parts, Fuels and Lubricants Medicines and Medical Supplies Pesticides and Chemicals Administrative Supplies Emergency Needs Chart 1.E: Responding to Emergency Needs 1.4 Packing and Labelling Requirements Packing of Consignments Chart 1.F: Packaging Considerations Chart 1.G: Use of Cargo Containers for Shipments by Sea Labelling and Shipping Marks Chart 1.H: UNHCR Shipping Marks 1.5 Inspection Requirements (introduction...) Chart 1.I: Conditions for Inspection Services 1.6 Lead-times and Supply Sourcing Options (introduction...) Chart 1.J: Assessment of Lead-time 1.7 Shipping Instructions (introduction...) Chart 1.K: Criteria for Selecting Mode of Transport for International Shipments 1.8 Associated Costs 1.9 Field Office Requests for Supplies and Food Aid (introduction...) Chart 1.L: Requests for Supplies and Food Aid

Supplies and Food Aid - Field Handbook (UNHCR, 1989, 296 p.)

CHAPTER 1 - IDENTIFICATION OF NEEDS

1.1 The Supplies and Food Aid Function

1.1.1 The objective of the supplies and food aid function in UNHCR is to meet the food, health and other material needs of refugees and other persons of concern to the High Commissioner. In achieving this objective, the following basic principles and conditions apply:

- Goods and services supplied should be of the requisite type and quality, available within the time required and at the lowest possible cost.

- Simplicity and economy should be exercised in all sourcing and delivery operations, consistent with equitable practices which can withstand the test of public scrutiny.

- All UNHCR personnel concerned with supplies and food aid should support and promote competitive bidding on an international basis. Sources of supply should have a wide geographical distribution, with emphasis on increasing acquisitions from developing countries and under-utilized major donor countries.

1.1.2 The first step in the supply process is to identify, quantify and specify the needs of the refugees for material assistance and food aid. This important responsibility rests with UNHCR Field Programme Officers. Errors or omissions in the needs identification phase can have major repercussions later in the implementation phase of any project. Consider the potential costs and impact on the refugees if:

(a) the goods arrive too soon or too late;
(b) the quantities supplied are too few or too many; or
(c) the materials or their packaging are inappropriate for local conditions or their intended end-use.

1.1.3 UNHCR Field Programme Officers must anticipate programme requirements and how best to meet these needs within the local context, while adhering to UNHCR's policies and practices. The UNHCR Guide to Supplies and Food Aid, available from SFAS, provides a comprehensive overview of UNHCR's programme supply policies, assigned organizational responsibilities, controls and standard practices. UNHCR should avoid providing refugees with better food and living standards than the local population. Assess material assistance requirements at the earliest opportunity when formulating project plans. Then request specific needs with sufficient advance notice to permit timely acquisition, receipt and use.

1.1.4 When establishing detailed requirements, ensure that:

(a) all materials and quantities necessary to achieve the defined objectives of each project have been identified;

(b) item specifications are stated in sufficient detail to ensure that the goods supplied will be suitable for their intended purpose;

(c) packaging and labelling are appropriate for local handling, identification and use;

(d) requested delivery schedules can be realistically achieved, so that goods arrive when and where they are needed; and

(e) accurate costs are established to avoid delays caused when budgets must be amended.

1.1.5 Requests for material assistance and food aid must be fully documented and justified. Clearly stated, accurate, complete and timely communications between the parties involved will expedite the supply process. It is not enough for the originator to understand the message; the true test is whether the recipient will also understand and have sufficient information on which to act.

Chart 1.A: Objective of the Supplies and Food Aid Function

To meet the food, health and other material needs of refugees and other persons of concern to UNHCR.

Chart 1.B: Refugee Assistance - Needs Identification

1. What do the refugees need in the form of material assistance and food aid?

· Define needs clearly, in consultation with concerned parties and technically competent experts. Item specifications must provide an exact description of the goods, to eliminate any misunderstandings for the Purchasing Officer or the supplier.

· For clarification, include intended use of the supplies.

2. In what quantities, when and where?

· Request quantities which are sufficient to meet needs, without excess. Too little may adversely affect the beneficiaries or the achievement of project objectives; too much will have to be stored and/or disposed of.

· Consider realistic lead-times when requesting supplies, providing time for sourcing, manufacture and delivery, especially when the needs are technical in nature, large quantities are required, or the destination is remote from the source of supply.

· Determine place of delivery, depending upon the source, shipping mode and local arrangements for storage, release and distribution. Specify the final destination where the UNHCR field office originating the request will take delivery.

· Identify inspection requirements, at source and on delivery, when quality assurance is imperative.

3. What constraints may apply?

· Base lead-time on the nature of the goods requested, the location of the selected source of supply, and the modalities of delivery, in consideration of both international and local or inland transportation.

· Specify packaging which is appropriate for local handling and distribution.

· Prescribe labelling to clearly identify the contents, their intended destination and any special handling requirements (e.g., refrigeration).

· Consider requirements for installation, training, servicing and maintenance, particularly when requesting equipment or construction materials.

4. What are the associated costs?

· Use current unit prices or standard costs to calculate the cost of the goods themselves.

· Budget for the related costs of freight, insurance, inspection and handling, as appropriate.

· Confirm that sufficient funds are available within the timeframe to meet the supply and delivery costs.

5. What sources of supply are available?

· Consider possible supply options that can meet the requirements of type, quantity, quality, timing of delivery and cost - local or international donations, local or regional purchasing by UNHCR or our implementing partners, international purchasing by SFAS at Headquarters.

· Verify that authority has been granted in an appropriate letter of instruction, project agreement or other implementing instrument.

1.2 Planning and Budgeting

1.2.1 Identify the material assistance needs of the refugees:

(a) annually, as part of the programme planning cycle for ongoing refugee situations; or

(b) as part of the assessment of needs, for situations requiring an emergency or special response.

1.2.2 For sectoral activities, UNHCR Field Programme Officers and implementing partners should jointly assess needs. Also, consult with technically competent experts when appropriate. TSS at Headquarters provides expert advice on technical aspects of project planning and implementation. TSS staff may organize and participate in technical field missions, to undertake feasibility studies, surveys, training or project reviews. Where in-house expertise is not available, TSS can also assist in identifying external consulting specialists when the necessary qualifications and terms of reference are provided to them.

1.2.3 Based on planned projects, priorities and the available allocation of funds, establish a list of supply requirements. Decide on the timing of delivery to meet programme implementation needs and the method of acquisition - in-kind donations, local, regional or international purchasing. Sectoral needs should already be outlined in the relevant implementing agreement; what is needed now is a detailed definition of the specifications and delivery schedules for the supplies.

1.2.4 Implementing partners sometimes identify and quantify material assistance needs for the refugees. UNHCR Field Programme Officers must review, verify and, if necessary, negotiate their requests to ensure that:

(a) the nature of the goods and the quantities requested are justified;

(b) the item specifications clearly define the required goods;

(c) unit costs reflect current prices, with provision in the overall cost for freight, insurance, inspection and handling, as necessary; and

(d) the allocated budget, timing of delivery and proposed source of supply are acceptable.

1.2.5 When more than one organization is providing assistance to a particular refugee group, coordination in planning and implementation is essential to avoid duplication of effort, and to maximize the use of all funds spent. Within a UNHCR field office, coordination can easily be accomplished in consultations between Field Programme Officers and our implementing partners. Do not neglect the input of other organizations and agencies, however, who may be operating independently of UNHCR in dealing with the beneficiaries.

1.2.6 Close liaison and good working relationships will enhance the achievement of overall programme objectives in the most cost-effective manner. National, regional and local meetings should be held regularly to share information, to report progress and to remedy any difficulties being encountered. UNHCR field office personnel and officials from involved government ministries and administrations, UNHCR's implementing partners and other concerned international aid organizations should attend these meetings.

Annual Project Submissions

1.2.7 Details of material assistance needs are included in project submissions for the upcoming planning year, and new or revised submissions for the current year. These plans are prepared in the field, reviewed by a committee at Headquarters, and approved by the High Commissioner during the current year. Prior to presentation to the formal session of the Executive Committee in October, project submissions are updated in September to incorporate any changes in the interim, and expanded to include any Headquarters administrative components.

1.2.8 The project description and budget are reviewed to ensure that they accurately reflect the specific objectives and types of assistance which can be financed within the limits of proposed appropriations to be approved by the Executive Committee. On receipt of Executive Committee approval of overall annual and country programme allocations, PMS finalizes and distributes implementing instruments which are based on the final project submissions.

1.2.9 Each project submission includes a purchasing plan listing the items required for project implementation. This information details the quantity and specifications for each item, the unit cost, the total C&F (cost and freight) cost, the timing of delivery (latest date of receipt for effective implementation) and the final destination (project site). The purchasing plan provides SFAS at Headquarters with information on the types and quantities of goods for which they can expect purchase requests. In addition, expected delivery dates permit an estimate of when the purchasing process should start, taking into consideration realistic lead-times for meeting delivery deadlines.

1.2.10 For each project, funding requirements must be planned on a quarterly basis. Particularly during the first quarter of the year, available funds are limited because only a portion of the donor funding expected for the year is actually on hand in UNHCR. Consider these limitations when specifying purchasing and supply requirements.

Chart 1.C: Identify Material Assistance in Every Project Plan

For each refugee situation and project, specify supply items within the prescribed budget sector and activity during the planning phase. To illustrate:

Example 1:	Charcoal (item) is a cooking fuel (activity) sometimes purchased for the domestic needs/household support sector.
Example 2:	Cement (item) is a construction material (activity) which may be required to build latrines in the sanitation sector.

Emergency Response

1.2.11 When formulating a planned response during the assessment phase of a refugee emergency, identify and quantify the need for supplies and food aid. In defining these requirements, timing and availability may be crucial. Determine the supply potential of the local market and consult with SFAS at Headquarters to establish the sources and most expeditious methods for obtaining and delivering emergency supplies.

1.3 Specification of Needs

1.3.1 When requesting the provision of supplies and food aid, include detailed specifications, as exact as possible, for each item, to allow the Purchasing Officer and the supplier to understand the request clearly. This is no place for second-guessing. The lack of accurate specifications may result in delays if the Purchasing Officer must seek clarification from the Field Programme Officer who initiated the request. If the requirement is not clear, the wrong item may be purchased, time and money will be wasted, and project objectives will be jeopardized.

1.3.2 Standard specifications are available for many refugee supply needs. Whenever possible, specifications and items requested should be «generic» rather than «product-specific», to permit competitive bidding. In certain instances, however, where particular equipment or a proprietary product has already proven itself locally, and installation, maintenance and service are also available, a request for a particular make may be justified. The local availability of certain supplies may be governed by state-controlled monopolies or enterprises, justifying the identification of a single source. Substantiate such circumstances on your purchase request.

1.3.3 Seek advice on specifications and related costs before submitting a purchase request, from SFAS Purchasing Officers at Headquarters, the Purchasing Liaison Officer in Nairobi, the Regional Logistics Officer in Djibouti or Local Purchasing or Logistics Officers. Local agents or representatives of international suppliers may also be consulted. These sources can also provide information on regional transport, forwarding agents, inspection agents, insurance and warehousing. When technical specifications are needed, consult local sectoral experts or the specialists in TSS at Headquarters.

Chart 1.D: Sources of Standard Specifications for UNHCR Supplies and Food Aid

· Previous Purchase Orders and supplier quotations provide specifications for items which have been supplied in the past.

· UNHCR Specifications Catalogue

Issued periodically by SFAS, this catalogue includes a list of items which are not specified in other widely distributed catalogues. The list provides brief specifications, current ex-works prices and approximate lead-times for food items, building materials, agricultural seeds, communications equipment, soap, cloth, kitchen sets, blankets, tents, tarpaulins, medicines and medical equipment, and fuel.

· UNHCR Handbook for Emergencies

Provides standard specifications for a number of items that may be required on short notice.

· UNIPAC Catalogue

Published periodically by UNICEF/UNIPAC in Copenhagen and available from SFAS, this catalogue contains specifications on a wide range of items, including medical equipment, teaching aids and various tools. When referring to item specifications in this catalogue for international purchasing, quote the item number and the year of the catalogue accurately.

· IAPSU Field Motor Vehicle Standards Catalogue

Published semi-annually by the UNDP Inter-Agency Procurement Services Unit in Geneva and available from SFAS, this catalogue lists most vehicles recommended for project and official use.

· IAPSU Heavy Vehicles-Trucks Catalogue

Also available from SFAS, this catalogue lists specifications for trucks and truck chassis manufactured by a number of suppliers worldwide.

Telecommunications Equipment

1.3.4 At Headquarters, specifications and procedures for the purchase of telecommunications equipment have been standardized. The Telecommunications Manager is responsible for identifying suitable radio and ancillary equipment on the basis of approved criteria. Requests to purchase radio equipment should be directed to the Telecommunications Manager, who advises the field office concerning over-all UNHCR planning and standardization requirements, and then submits technical specifications to SFAS for procurement.

1.3.5 Before requesting Headquarters to purchase radio equipment, UNHCR field offices must ensure that the host government will authorize the operation of radio station(s), and verify that there are no restrictions on the use of UN/UNHCR frequencies. Useful information on the planning and development of radio and tele-printer communications is included in the UNHCR Handbook for Emergencies. Field communications to improve logistics operations and security are discussed elsewhere in this Handbook.

1.3.6 All equipment consignments are shipped air freight, arranged by the supplier or by the SFAS Shipping and Insurance Officer, depending on cost and expediency. Installation experts, training services and service manuals are also available through SFAS or the Telecommunications Manager.

1.3.7 The field office should contact the Telecommunications Manager at Headquarters for advice on major repairs of radio equipment which cannot be effected locally. Sending the equipment to the manufacturer for repair is not usually economical, but may be necessary if no other alternative can be found.

Other Equipment

1.3.8 Many types of equipment are necessary for field operations. Examples are microcomputers and printers, pumps, generators, agricultural machinery, or construction and road building equipment. Sectoral specialists in the field should prepare detailed technical specifications to ensure that the equipment supplied is appropriate for its intended use. TSS may be consulted to assist with the definition of requirements for projects involving health care, nutrition, engineering, town planning, shelter, water development, sanitation and agriculture, or outside consultants may be contracted for this purpose.

1.3.9 All equipment of a technical nature should be inspected and, if possible, tested before shipping. Suppliers may also provide assistance to commission, install and maintain equipment in the field or to train operators and maintenance personnel. Make sure that equipment requested can be supported locally by skilled operators, reliable power and/or fuel supplies, spare parts and service, to ensure its on-going effective use.

1.3.10 Requests for computer hardware or software are routed to MISS at Headquarters, who review its intended use, to determine compatibility with existing UNHCR equipment and current or planned UNHCR computer systems requirements. All hardware and software purchases are usually delivered first to MISS at Headquarters, for inspection and testing prior to shipment to the field for installation.

1.3.11 When servicing or spare parts for equipment are not available locally, request assistance from Headquarters. Specify the manufacturer, make, model, serial number and year of manufacture of the equipment, and identify the problem or spare parts required. Refer to the equipment manual. Equipment may have to be returned to the manufacturer or sent to the nearest service depot. When repairs can be made locally, Headquarters may pouch spare parts, dispatch them by courier service, or send them by air freight.

Vehicles, Spare Parts, Fuels and Lubricants

1.3.12 The identification and specification of needs for project and official vehicles is described more fully in Chapter 6, Vehicles. Requirements and costs are based on the models, options and prices listed in the current IAPSU Field Motor Vehicle Standards Catalogue and the IAPSU Heavy Vehicles-Trucks Catalogue. SFAS at Headquarters purchases most vehicles directly from the manufacturer. The earliest possible identification of need and advance planning are essential to select and schedule the delivery of vehicles for field operations. The lead-time, from submission of a purchase request to SFAS until delivery at destination, is normally 3 to 4 months.

1.3.13 Field requirements for spare parts which are not available locally present special problems. When identified, they are usually needed immediately to repair a vehicle which is out-of-service as a result. Usually, 10 per cent of the list price of a new vehicle (20 per cent in remote areas) is allocated for the manufacturer to supply fast-moving spare parts for vehicle maintenance purposes. Request additional spare parts using a Motor Vehicle Spare Parts Requisition (see Form SFAS/FH-6 in the Forms Annex). List the vehicle make, model, year, engine and chassis numbers, and the parts required. Manufacturers' spare parts catalogues and workshop service manuals are available from SFAS at Headquarters. Allocate sufficient funds to permit crated spare parts to be shipped air freight. Once the parts are received, ensure adequate controls are in place to safeguard them for their intended use.

1.3.14 Supplies of vehicle fuel and lubricants may also have to be imported. Calculate requirements on a periodic basis (quarterly, annually) for budgeting and ordering purposes. Refer to Chapter 5, Field Logistics Operations, and Chapter 6, Vehicles, for information on preparing these estimates. Fuel may be delivered in bulk, or in 200-litre drums if proper bulk storage and mobile tankers are not available. Ensure that monitoring procedures are instituted to issue and control the utilization of fuel and lubricants.

Medicines and Medical Supplies

1.3.15 The UNHCR Essential Drug Policy, issued by TSS at Headquarters, governs requests for drugs and medical supplies. This policy prescribes the best standards of health care for refugees, in consideration of their varied circumstances, the training and experience of health care workers, and the differing requirements imposed by host governments and other organizations. Determine local requirements and the appropriateness of certain drugs, in consultation with sectoral specialists in the field, doctors and pharmacists associated with our implementing partners, the government health ministry and other specialized UN agencies.

1.3.16 Use standard kits where appropriate, and request supplementary supplies of needed items not included in the kit, or where the quantity of a particular item is not sufficient. For medications, use generic names rather than product or manufacturers' names. Planned inventories for ongoing needs should include a working stock to meet drug needs between deliveries, and a safety or reserve stock to protect against total stock depletion which may result from delayed deliveries or unexpectedly high demand. An effective drug management system must be in place to prevent stock surpluses or shortages, and to avoid costly losses caused by spoilage, expiration or theft.

1.3.17 Before ordering vaccines or antibiotics, cold chain facilities must be available to handle and transport these consignments, which are normally shipped by air. A reliable power source is essential to maintain cold room temperatures and to operate refrigerators and freezers. Cold boxes, vaccine carriers, thermometers, monitoring forms and trained personnel are also needed. Additional information and technical specifications are available from TSS at Headquarters.

1.3.18 All requests for medicines and medical supplies are routed to SFAS at Headquarters, except for local purchases which may be required to comply with the host government's medical policy and guidelines. Details of each order, including local purchases and potential donations, are confirmed with TSS before proceeding.

1.3.19 Medical suppliers are selected from those licensed by the government, preferably located in countries participating in the WHO Certification Scheme. All drug supplies should be consistent with the specifications in the current British, European or American pharmacopoeia. A Certificate of Analysis must accompany each item supplied and shipped, to certify that it conforms with the specifications regarding drug formulation, dosage, unit size and quantity, and, where appropriate, has a minimum two-year shelf life from time of delivery.

1.3.20 Separate inspections are conducted prior to shipment and prior to distribution to verify conformity with specifications, labelling, package size, dosage, quantities, time validity, batch numbers and each Certificate of Analysis. All medicines must meet quality requirements for safety, effectiveness and acceptability.

1.3.21 Except in emergencies, large international medical consignments are packed in cargo containers and shipped by sea. Smaller consignments are crated and travel either by sea or by air. Monitor transportation and storage of consignments in the field to ensure that proper conditions prevail.

Pesticides and Chemicals

1.3.22 Identify requirements for pesticides, fertilizers and other chemicals in consultation with sectoral specialists who are knowledgeable about their use and application. Requests for chemicals are subject to TSS approval, to confirm their acceptability on the basis of proven effectiveness for their intended use, both locally and internationally, with minimal environmental risk or potentially harmful side effects.

1.3.23 Special tools, equipment or training may be needed to administer the chemical treatment or to protect those handling the substances. Check any local practices, protocols or restrictions for transporting and receiving consignments of hazardous chemicals before initiating a purchase. Note all relevant information in your request. Ensure that proper precautions are instituted to store, use and dispose of these chemicals.

Administrative Supplies

1.3.24 UNHCR field offices are usually allocated a minimal budget to make local expenditures for administrative supplies. Forward all other requests to the Budget and Management Section at Headquarters, who will obtain supplies in Geneva or authorize the field office to make a local or regional purchase. Submit orders for office supplies semi-annually.

1.3.25 Most printing, letterheaded stationery, UN forms, business cards, consumable office supplies (e.g., pencils, paperclips) and small equipment (e.g., calculators, staples) are obtained from the Purchase, Transportation and Internal Service Section at the Palais des Nations in Geneva. The Budget and Management Section may also make direct purchases or request SFAS to purchase items such as office equipment, administrative vehicles, spare parts or large orders of paper. Except for SFAS purchases, the Budget and Management Section makes its own shipping arrangements for administrative consignments.

Emergency Needs

1.3.26 A major part of an effective emergency response is the prompt delivery of appropriate supplies. These requirements may include tents, blankets, cooking sets, medical supplies and foodstuffs. Assess emergency needs and the availability of appropriate local supplies in consultation with local experts, suppliers, government representatives and other international agencies present. Consider all possible options to meet immediate needs:

(a) local supplies and potential purchases;

(b) local in-kind donations;

(c) borrowed stocks from the government or other aid organizations (which must subsequently be replaced);

(d) in-kind donations resulting from an FRS special appeal and possibly air-lifted as near as possible to the emergency site;

(e) international purchases shipped by air; or

(f) redirection of less urgent international shipments in process of delivery to other projects or destinations.

1.3.27 Coordinate all requirements and responses with the geographic desk at Headquarters. Headquarters personnel concerned can accelerate the purchasing and shipping processes to give an emergency situation first priority. Complete, accurate communications are imperative to expedite emergency relief. Regardless of the urgency of the need, obtain all proper authorizations and approvals before proceeding. Then follow procedures and keep records.

Chart 1.E: Responding to Emergency Needs

Anticipating all the circumstances which may be encountered in a refugee emergency, or which options may best fulfil the needs, is not easy. To illustrate how the international purchasing and shipping processes can be accelerated in emergency situations, however, the following scenario is normally applied:

UNHCR Field Office:

1. Telex the geographic desk at Headquarters, giving full specifications of the emergency supplies, quantities, packing and labelling details, and preferred routing of the shipment, with any supplementary information such as local conditions which may impede delivery.

Geographic Desk:

2. Obtain proper authorization and budget allocation (cost estimates provided by the SFAS Purchasing Officer). Prepare and forward a Purchase Authorization to SFAS.

SFAS Purchasing Officer:

3. Issue Quotation Requests by telex to known suppliers, especially those who may have stocks on hand, with an abbreviated reply time, perhaps even the same day.

4. Consult with the SFAS Shipping and Insurance Officer and the geographic desk, to determine shipping modalities.

5. On receipt from the suppliers, tabulate and compare the quotations promptly. If a proposed purchase exceeds US $40,000, prepare a memorandum recommending the selected supplier to the Committee on Contracts. The Secretary to the Committee or the Purchasing Officer hand-carries the recommendation to the individual Committee members who note their decision on the memorandum. Supplier selection can usually be accomplished in one day.

6. With proper approval and authority, issue Purchase Orders by telex for all the goods which comprise the emergency supplies.

SFAS Shipping and Insurance Officer:

7. Coordinate and assemble consignments and deliveries from several suppliers at a central departure point for consolidation and rapid shipment to the emergency field location. Appoint a superintendence company at the consolidation point to verify that all items, quantities and shipping documents are on hand, properly packed and labelled. For air shipments, the shipping documents travel with the consignments.

Geographic Desk:

8. Keep the field office informed throughout the purchasing and shipping process, providing details of orders placed, planned deliveries and scheduled arrivals in the field.

UNHCR Field Office:

9. Make all local arrangements to meet and clear the shipment, and to transport it to the operational site for storage and distribution to the refugees.

1.4 Packing and Labelling Requirements

Packing of Consignments

1.4.1 Proper packing of supplies and food aid provides units which can be conveniently handled and protects the contents until they reach the beneficiaries. Adequate packaging helps to maintain product quality and reduces loss or damage to the contents while in transit or in storage. The suitability of each unit and the ease of opening and dispensing the contents may also enhance their acceptability for distribution in the refugee programme. All of these considerations, however, must often be weighed against packing costs and available supplier standards, to determine a suitable compromise.

1.4.2 From its experience with supplies and past shipments, SPAS has gathered and developed international standards for export packaging. Assess packing requirements for shipments of refugee goods using these international standards which are summarized in Annex I, and the considerations for particular types of cargo outlined below.

1.4.3 For most refugee programmes, shipments of commodities such as fuel, wheat, maize and other cereals are transported in drums or sacks for ease of handling. Extra sacks or drums should accompany the shipment to reclaim the contents of damaged units which have been punctured, torn in transit, or show evidence that they are leaking.

1.4.4 Some packaging has monetary value or alternate uses once it is empty. Jute sacks may be used as a floor covering or in the construction of temporary shelters. Fuel drums may be used as water containers or communal cooking pots. Consider their potential resale value or secondary uses when specifying packaging requirements.

1.4.5 Bulk shipments usually refer to commodities which are shipped in bulk (no packaging) in tankers or bulk carriers. Fuel and edible oil should be shipped in drums unless suitable bulk handling and storage equipment is readily available. Bulk foodstuffs may be bagged during discharge at their destination, either manually or using automated bagging equipment. Manual bagging operations may delay the discharge of the cargo and are time-consuming, inefficient, result in cargo losses and provide bags of only approximate weight. Sacks may have to be purchased or supplied locally. Automated bagging equipment should be available in the port. If not, a mobile bagging plant can be leased through SFAS to off-load bulk cargo. It is the size of two containers, can be assembled easily, and has a capacity of 400 to 500 MT per day. The lease includes the on-site technical personnel to oversee and maintain the efficiency of the discharge operation.

1.4.6 Cargo containers are sometimes used to ship goods which are particularly valuable or vulnerable and, therefore, warrant extra protection against pilferage or damage. Containers are large, standardized receptacles which are specially designed for repeated use. They are fabricated from light, strong aluminum alloys. Their standard sizes fit securely into cells created on a container vessel, flatbed trailer truck or rail wagon. Consider local off-loading and transport facilities and needs before requesting container service for your international purchases.

1.4.7 Pallets are small, portable, wooden platforms on which all types of small or lightweight packages are stacked for shipping. Pallets are constructed in dimensions which are suitable for mechanical handling using forklifts or cranes. To prevent shifting and provide added protection, palletized goods such as cartons, bags or small (100-litre) oil drums, are often shrink-wrapped with plastic sheeting and strapped with metal or polyester bands. UNHCR field offices may request that pallets accompany consignments to their destination, where they may be used to improve storage practices or be broken up to provide wood for other uses.

1.4.8 For international purchases, SFAS uses established standards for export packaging. Include packing instructions in your purchase request only if local conditions require special arrangements, national standards in the host country differ from international standards, or a cost-effective alternate use of the packaging is planned.

1.4.9 For local or regional purchases, include detailed instructions in contracts with suppliers for durable packaging. Packing must be suitable to preserve the quality and integrity of the contents for the length of time until the goods are distributed, for the conditions which will prevail during that time, and to facilitate distribution and end-use. See Annex I for international packaging standards.

Chart 1.F: Packaging Considerations

1. Nature of the goods and standard suppliers' packing available.

2. Durability and size/weight of packages in anticipation of planned transportation modalities, equipment, operators and labourers: reliability, capacity, handling methods. Port facilities and capacity to handle cargo containers. Warehousing facilities and handling equipment at various transit and storage locations in the host country.

3. Adequacy of packing to withstand high temperatures, rain, high humidity, condensation, mould, dust and seawater spray which may be encountered in transit or in storage at destination.

4. Dimensions and weight of each unit which will be suitable for release to implementing partners or distribution to the refugees immediately on receipt.

5. Assumption that shipments will receive rough handling and will be loaded and unloaded numerous times before they reach their final destination.

Chart 1.G: Use of Cargo Containers for Shipments by Sea

Advantages	Disadvantages
Extra protection against pilferage and damage.	Added expenses for container lease/purchase, and handling charges for stuffing, de-stuffing.
Reduced cargo insurance premiums.	Difficulties in inspecting contents without de-stuffing.
Reduction in packing time, cost of packing materials, and gross weight for goods which can be packed in cardboard cartons and containerized for shipping.	Necessity for fast de-stuffing to avoid container detention charges after expiration of the rental "free time", usually 10 to 14 days.
Savings on cargo handling charges for "door-to-door" shipments.	High freight rates for containers shipped to ports with little or no return container cargo.
Use of purchased second-hand containers which can be placed where needed when empty, as lockable, secure storage, offices or for a multitude of other purposes.	Unwillingness of many shipping lines to permit their containers to leave the port, exposing goods during the most vulnerable part of their journey, from the port to an inland destination.
	High cost of inland transport if containers must be returned to the port empty.
	Lack of container handling equipment outside major ports.

To take a cargo container down from a truck at an operational site:

- De-stuff the container.
- Tie the container to a tree or other solid object.
- Have the trucks move away slowly.
- Ensure the truck's rear lights are not damaged.
- Once the container is on the ground, refill and lock it.

Labelling and Shipping Marks

1.4.10 Labelling each package for identification and instruction ensures correct delivery and use. Each packaged unit in a consignment, especially those intended for direct distribution to the refugees, should be labelled to identify the contents and provide instructions for use. Written instructions printed on each package or accompanying the consignment should be in a language understood by the intended beneficiaries. Items such as medicines or foodstuffs requiring preparation or cooking can be requested with pictorial labels which the refugees can understand. Labels may also be affixed to inner or outer packing to comply with donor requirements or to provide warnings concerning hazardous contents. Larger cartons, bags or packages which comprise the shipment must be labelled individually with shipping marks.

1.4.11 Shipping marks identify the consignee, the destination of the shipment, and the project. Shipping marks:

(a) identify the goods to carriers and to all those engaged in handling the shipment while in transit to its final destination; and

(b) ensure correct delivery and identification by recipients.

1.4.12 Shipping marks are stencilled in bold, dark letters which are proportional to the size of the package. Packages shipped on pallets must be marked individually so they can still be identified if the pallet straps should break. Similarly, each package shipped in a cargo container must be marked, to ensure its continued identification from the point where the container is de-stuffed.

1.4.13 Specify labelling requirements and shipping marks in each international purchase request. Include instructions for labelling in contracts with suppliers for local or regional purchases.

Chart 1.H: UNHCR Shipping Marks

For example:

· Identification of the consignee:	UNHCR
· Address:	LUSAKA, ZAMBIA
· Port of discharge:	VIA DAR ES SALAAM
· Final destination:	FOR NYANGO
· Project symbol:	87/AP/ZAM/LS/1
· Purchase Order number:	DR/00405 PO/00275
· Package number:	1/35, 2/35 or 3/35, etc.

Additional information and signs may be added where required by law for dangerous cargo, and to ensure that fragile goods are handled with greater care. When considered essential or to identify UNHCR donors, markings such as "SALE PROHIBITED", "GIFT OF.....", etc., may be marked on another side of the package.

BO Khartoum has established a system of identifying purchases by a local requisition number, e.g., SPR6. Other field offices may introduce a similar system. These marks should be added, after the marks for the final point of destination, e.g., "FOR SHOWAK - SPR6".

The Bill of Lading or air, rail or truck waybill should show the same markings as those on the packages.

1.5 Inspection Requirements

1.5.1 Inspection of consignments at various stages in the supply process assures quality and quantity control of the goods provided. UNHCR cannot rely totally on suppliers, carriers and agents to deliver goods whose quality and quantity are adequate, with a minimum of loss, damage or spoilage. Although all UNHCR shipments over US $1,000 are insured and claims can be made to offset losses or damage, this alternative is of little comfort when the goods received fail to meet stated quality or quantity requirements. To minimize problems encountered on delivery, consider the need for inspection services for every purchase request, for international, local or regional purchases.

1.5.2 Some governments in developing countries require all imports to be inspected to protect the consignee from exploitation in invoicing and other forms of purchasing fraud. In general, this requirement does not apply to material assistance for refugees financed by UNHCR using external funding. If local authorities do require an Inspection Certificate, however, indicate these needs in your purchase request.

1.5.3 Various types of inspection services are available during manufacture, on loading, on discharge or on delivery. A summary of these services is included in Annex II. For international purchases, SFAS examines inspection requirements for each order placed. All food consignments are inspected, normally both on loading and on discharge. Technical equipment and other goods manufactured to stated UNHCR specifications (such as tents) are inspected prior to shipment to verify conformance with specifications and suitability for their intended use. For local or regional purchases, ensure that reliable inspection services are available, and inspection requirements are stipulated.

1.5.4 SFAS has established contracts with inspection agents covering every country or region. Beginning in 1988, costs for both insurance and inspection of supplies purchased by SFAS, the Purchasing Liaison Officer in Nairobi or the Regional Logistics Officer in Djibouti under assistance projects financed from the General Programme are paid from a separately administered project. No financial provision is necessary for inspection of these purchases. Goods purchased from Trust Funds or Special Programmes, and in-kind donations which require inspection through UNHCR, continue to require the provision for costs of inspection in the relevant project budget. Estimated costs for inspection services are approximately one per cent of the total C&F (cost and freight) value of the consignment.

Chart 1.I: Conditions for Inspection Services

1. Purchasing Officers stipulate inspection requirements in the Purchase Order placed with the supplier.

2. Inspection requirements are repeated in the contract with the inspection company, which also includes an estimate of the time necessary to carry out the inspection(s) and the related fees.

3. Inspections must be conducted by specialized personnel offering full guarantees of competence, ethics and security. Techniques and equipment used must be adequate for the operation, and match or exceed prevailing professional standards.

4. All inspections are done in accordance with recognized international standards. Inspection reports should refer to the international standards which have been applied.

5. Inspection Certificates may be issued only with a clean report of findings. No reservations are permitted unless UNHCR has given prior approval in writing for contractual deviations.

6. All information related to inspection services is confidential and may not be given to third parties without written authorization from UNHCR.

7. In the event of non-conformity with UNHCR specifications, the supplier must correct the deviation and present the goods for re-inspection. Inspectors' invoices for re-inspection, submitted to UNHCR, are deducted from amounts owed to the supplier.

1.6 Lead-times and Supply Sourcing Options

1.6.1 Why does it take so long? Lead-time is the time which elapses between the submission of a specific request for supplies and the time of arrival of the goods at their final destination.

1.6.2 Estimating realistic lead-times is an important aspect of programme and project planning. The achievement of objectives and the welfare of the refugees are directly related to the timely arrival of needed supplies. To fulfil this requirement, supply requests must be submitted early enough to provide sufficient lead-time to meet delivery and distribution schedules. Originating field offices must know what steps are involved in fulfilling their requests and how long it takes to complete the overall supply process.

1.6.3 The time required to complete each step in the supply process varies with the size and complexity of the request and the sourcing option selected. For international purchases, SFAS has instituted a 30-day guideline, from the receipt of a fully documented Purchase Authorization to the placement of the order with a supplier, with emergency requirements being met in a much shorter timeframe. Suitable potential suppliers must be given enough time to bid. The usual time is one week, but this may be extended for special or more technical needs or shortened for emergencies.

1.6.4 For purchases exceeding US $70,000, a submission to the UNHCR Committee on Contracts and their approval of the preferred supplier are necessary before placing the order. The Committee meets once a week. In emergencies, submissions may be circulated to the Committee members for their approval, usually within one day.

1.6.5 Estimate sufficient time for suppliers to produce and deliver the goods. This step of the supply process is the most time-consuming and the most difficult to control. Goods may be available ex stock, but normally UNHCR must allow up to three months for the supplier to schedule, manufacture and assemble the order. Sample testing and quality assurance inspections take additional time.

1.6.6 Also consider loading, transportation and discharge. For international shipments by sea, the average time required is 3 to 5 weeks, depending on the vessel's itinerary and the distance to the port of discharge. For air shipments, the time should be reduced to less than one week, depending on carriers, schedules and the priority assigned to the cargo. Timing for the delivery of local or regional purchases is influenced by the mode of transport selected and the distance from source to destination.

1.6.7 The UNHCR consignee field office must establish procedures to minimize the time required for receiving, clearing and transporting consignments to their final destination. Port congestion or delays in the routing of documents, handling and clearance of consignments, or scheduling of inland transport can adversely affect these operations.

1.6.8 Some potential delays can be avoided - by specifying needs clearly, selecting reliable suppliers and following established procedures. Other delays are unpredictable, such as transportation breakdowns or shipping documents which have gone astray.

1.6.9 Estimate the lead-time for initiating supply requests by taking each step of the process into consideration. Allow at least 20 per cent extra time for unforseen events or delays. The UNHCR Specifications Catalogue, issued by SFAS, provides estimated lead-times for standard items, based on receipt of a request for reasonable quantities at Headquarters.

Chart 1.J: Assessment of Lead-time

Action	International Purchase	Local/Regional Purchase	Potential Delays	Remarks
1. Identification of needs and submission of request to geographic desk at Headquarters.	UNHCR field office	UNHCR field office	Routing and processing of request - sub-office/Branch Office can cause delay.	Must be controlled at the field office level.
2. Confirmation of funding and Issue of LOI or Purchase Authorization (PA).	Geographic desk	Geographic desk	Insufficient or unallocated funds require budget amendment.
3. Issue of Quotation Requests, receipt and evaluation of bids and placement of the Purchase Order.	SFAS (30 days from receipt of fully documented PA, faster for emergency purchases)	UNHCR field office	Inadequate specifications or technical detail may require clarification. Supplier must be given sufficient time to bid. Technical bids usually take longer.	May be placed through the Regional Purchasing Liaison Officer in Nairobi. Submission to the Committee on Contracts may be necessary, which normally meets once a week.
4. Production, packing, inspection, transport to UNHCR point of delivery.	Supplier (in accordance with contract terms)	Supplier (in accordance with contract terms)	Production times can be as long as three months. Transportation delays are unpredictable.	Delivery times should be specified in the contract. On occasion, goods are available ex stock. Phased delivery can be requested for large quantities.
5. Port clearance and receiving.	UNHCR field office or designated agent	UNHCR field office or designated agent (receiving only)	Incomplete or inadequate shipping documents, port congestion, or delays in handling or clearance may occur.	Local/regional purchases should be delivered to UNHCR or a designated agent at the supply control point nearest their final destination.
6. Transport to final destination.	UNHCR field office or designated agent	UNHCR field office or designated agent	Inland transportation may be inadequate or untimely.

1.7 Shipping Instructions

1.7.1 Common terms, like C&F and FOB, are used to standardize trade practices in purchasing contracts by defining the moment and place where the ownership and liability of the goods purchased are transferred from the supplier to the buyer. Known as the Incoterms, each is explained in Annex III.

1.7.2 Most UNHCR international purchases and donations are made on a C&F (cost and freight) basis. This means that the supplier or donor is responsible for providing transportation to the named destination, usually the nearest port of entry or point to which international shipping arrangements can be made reliably. UNHCR may select the mode of transport - air, sea or land (truck or rail) - to be used by the supplier or donor.

1.7.3 Some international purchases are supplied FOB (free on board) at a named location in Europe (e.g., Geneva). Local purchases can also be made FOB in the host country. UNHCR takes delivery immediately and must arrange any transportation to the final destination, warehouse or operational site. At Headquarters, the SPAS Shipping and Insurance Officer negotiates transport for international FOB shipments. The Field Programme Officer responsible for logistics in the local UNHCR office should make similar transportation arrangements for locally supplied FOB goods.

1.7.4 UNHCR field offices should try to negotiate internal transport with local suppliers. Avoid buying Ex-Works or FOB when the goods are received at the supplier's warehouse. Problems of coordinating transport requirements can be significantly reduced if suppliers provide the goods Free at Destination, delivering them to a named location as close to the operational site as possible. In this case, UNHCR pays only for the quantities actually delivered, leaving the supplier responsible for the cost of transport, insurance, and loss or damage to the consignment. These costs will be reflected in the unit price of the supplies, but all of the arrangements and any follow-up are left to the supplier.

1.7.5 Transport by sea is used for large international shipments when delivery is not urgent. It is less expensive than any other means of carriage, but a precise arrival date at the port of discharge is difficult to determine, even for scheduled liner services.

1.7.6 Most UNHCR shipments by sea are carried on «liner out terms», which means that the cargo is carried under contract with a shipping company which provides a regularly scheduled service to the port of destination. The vessel is responsible for putting the cargo on the quay at the destination, but the consignee must receive the cargo as fast as it is delivered. Requesting sea transport on liner out terms minimizes the risk of additional charges for detention of the vessel, because the shipping company makes its own arrangements with the port authority to discharge its cargo, to permit the vessel to keep closely to its pre-planned schedule. Port handling and storage fees, however, accrue to the account of the consignee.

1.7.7 Alternatively, large shipments may be transported under a contract of affreightment called a «charter party». Usually an entire vessel is chartered for a voyage to carry a particular consignment from a named port of loading to a named port of destination. These arrangements are complex, the contractual conditions can vary considerably, and agreements should be negotiated only through a broker. Charter parties are rarely used in UNHCR, but may be encountered in the field if donors make such arrangements, or when UNHCR field offices are involved in the receipt of large WFP food consignments. A copy of the charter party must be available. Seek expert advice to interpret the terms of the contract.

1.7.8 Examine the alternatives for shipping an international consignment to a final land-locked destination. If the named C&F destination is inland, the supplier must arrange transshipment at the port of entry. Savings in both time and cost can be significant if UNHCR receives the goods at the port of entry and arranges to transship the consignment locally. You will need to confirm insurance coverage to the final destination, however, and a designated UNHCR agent must be present in the port to deal with the port clearance and transshipment. For example, some shipments destined for inland destinations in Ethiopia and northern Somalia are currently routed through Djibouti, with the assistance of the Regional Logistics Officer located there. Similarly, through-shipments for Uganda and Sudan received in Mombasa are being handled by the Purchasing Liaison Officer in Nairobi.

1.7.9 Air freight is the fastest and most reliable shipping option, but it is also the most expensive. Shipments are sent by air only when the consignment is small, the goods are extremely valuable, urgently needed, or when transport by other means is not possible. International consignments are routed to the international airport nearest the consignee field office.

1.7.10 Land transportation is limited to shipments where routes and transport units are available between the source of supply and the destination. Trucks sometimes transport goods from Europe to the Middle East, and in the field move goods from the port of discharge to a final land-locked destination. International shipments seldom travel by rail because most rail networks between the source and the destination of the goods are inadequate. Some countries have excellent internal rail networks, however, and rail transport is recommended. Rail transport is economical for moving larger consignments, especially where the distance to the destination exceeds 500 km.

Chart 1.K: Criteria for Selecting Mode of Transport for International Shipments

· Urgency of the shipment.

· Size of the shipment: weight and volume.

· Origin of the goods: supplier's location.

· Normal transportation routes and scheduled services between the point of origin and the destination.

· Ports of entry, receiving facilities and transportation infrastructure at the destination.

· Relative costs and budgetary limitations.

1.8 Associated Costs

1.8.1 Identify the costs of meeting supply requirements realistically, for the purposes of budgeting and purchase authorization or for the valuation of in-kind donations. Establish current market prices for each item requested using catalogues, pricing lists, or in consultation with Purchasing Officers or local suppliers.

1.8.2 Base requested quantities and budgetary calculations on beneficiary population figures known to the field office at the time that plans are formulated. Excessive quantities are costly, in terms of acquisition, transport and storage requirements. Inadequate quantities create distribution problems and may also adversely affect the achievement of programme objectives.

1.8.3 Costs must include freight charges to the named destination where UNHCR will take delivery of the goods. To arrive at a cost and sea freight price, add 10 to 15 per cent to the current ex-works price. Assess air freight costs on a case-by-case basis. The minimum cost is usually about 25 per cent of the ex-works price, but may be as high as 100 per cent for heavy or bulky consignments.

1.8.4 Allocate funds to pay for shipping insurance and inspection services, except for international purchases from General Programmes where these costs are covered by a separately administered project in SFAS.

1.8.5 Check prices of goods which are available from local suppliers, such as bicycles, cooking pots, grinding mills or construction materials. Exercise caution in recommending local purchases, however, even when prices are competitive. Goods may not be available in sufficient quantities or they may be of substandard quality. Avoid competing with the general public or other international agencies for limited local quantities, which may monopolize the supply and result in substantial price increases for all consumers.

1.8.6 State costs in the proposed currency of expenditure. International purchases are usually allocated in US dollars. Budget for local purchases in local currency. Anticipate fluctuations or variations in currency exchange rates because, once established, budgets are sometimes difficult to amend. Currency fluctuations may result in changes in the quantity or number of items purchased when funding is insufficient and cannot be increased. Do not budget for price inflation, however, as this may affect quoted or market prices if the amount becomes known.

1.8.7 SFAS allows a 10 per cent budget variation for individual items listed for one project on a Purchase Authorization, provided the total allocation is not over-spent. When stated requirements exceed these limits, purchasing action is delayed, pending approval of a budgetary revision or change in stated quantity or item requirements.

1.9 Field Office Requests for Supplies and Food Aid

1.9.1 In UNHCR, Field Programme Officers normally initiate requests for supplies and food aid, to meet planned project objectives within established budgets. Anticipate lead-times for receipt of requested supplies when submitting requests and propose reasonable delivery deadlines. Consider available sourcing options - in-kind donations, international, regional or local purchase - and justify your recommended source of supply as appropriate to meet refugee needs, in terms of quality and quantity, in the most economical way.

1.9.2 For each item requested, provide complete detailed specifications and shipping instructions. Specify requirements for packing, labelling and inspection services where relevant. Allocate funds for the requested items, based on the current unit price and quantity required, and include all related costs of freight, insurance and inspection, as necessary.

1.9.3 Route requests to the geographic desk at Headquarters for approval and action through SFAS or a regional or local Purchasing Officer. Field requests must be coordinated and controlled at the field office level, to keep track of what has been ordered, by whom, from where, and for what purpose. Log each request approved and maintain control records until the supplies have been received, distributed for their intended purpose, and reported.

Chart 1.L: Requests for Supplies and Food Aid

Each request must fully identify the material assistance listed:

· Project Symbol:

Show the project symbol against which budget the costs to obtain and deliver the goods will be charged. If this symbol is not available, provide a description of the intended purpose of the goods, sufficient for those responsible to insert the project symbol later.

· Item Specifications:

Identify each item and provide detailed specifications which will permit the Purchasing Officer and the supplier to clearly understand your requirement. Include catalogue references and complete descriptions where appropriate. Indicate the intended purpose or planned use of the items. Consult with sectoral specialists and technical experts as necessary.

· Quantity:

Based on its planned use or the established number of beneficiaries, state the number of each item required.

· Delivery Date:

Indicate when the goods are needed and where. Be realistic, taking into consideration the lead-time for supply processing, manufacturers' production and delivery to final destination, including both international shipping and inland or local transport. If the existing project agreement will expire before delivery, indicate that a project extension is planned.

· Recommended Source:

In consideration of international, regional or local market availability, international donor commitments, funding, timing and final destination, recommend local, regional or international purchase, or donation in-kind. If potential suppliers are known, name the actual companies suggested, their location/address and the basis for their pre-selection.

· Shipping Instructions:

Clearly identify the consignee for the shipment, with full mail and street address, telephone and telex numbers (avoid giving P.O. Box numbers). Indicate the routing of the shipment, the port of discharge, final destination and mode(s) of transport. A request for shipment by air must be justified.

· Costs:

Based on current unit costs and the quantity requested, establish budget allocations for each item, total freight and any other services necessary (e.g., insurance, inspection). State amounts in US dollars or local currency, as appropriate. Ensure that an adequate budget has been established or that the geographic desk at Headquarters is aware that these needs require a special allocation - CAF, MOD or LOI.

· Other Information:

Provide additional details about local conditions or the nature of the goods which require special packaging or labelling instructions, inspection services, shipping or insurance arrangements.