Goods
This section presents good practices developed globally in each stage of the procurement process of goods, as well as specific advances in Electronics, Apparel and Medical Supplies.
Pre-tender: Selection/ exclusion of suppliers
“The pre-tender phase refers to activities involved in the tendering process prior to award of a project. This includes for example defining the organisation’s internal needs, preparing the budget, designing the procurement strategy, scheduling the project, researching or analysing the market, defining the requirements and award criteria as well as developing the tender documents." (OECD, 2017:74).
Please see below the list of countries that have implemented good practices in this first stage of procurement where you can click on their laws and policies to be directed to the original documents.
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1. Human rights risk assessment by States according to the goods they are procuring.
• Northern Ireland: Procurement Guidance Note PGN 03/18 (Northern Ireland Human Rights Commission) p. 7
• UK, Australia, New Zealand and Canada: Principles to Guide Government Action to Combat Human Trafficking in Global Supply Chains (principle 1)
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2. Mandatory exclusion criteria like non-payment of social security or tax contributions, or abnormally low tenders when they result in non-compliance with environmental, social or labour legal provisions.
• European Union: Directive 2014/24/EU of the European Parliament and of The Council of 26 February 2014 on Public Procurement and Repealing Directive 2004/18/EC (100, article 69)
• United Kingdom: The public contracts Regulations 2015 (article 69)
• Belgium: Bulletin 16 May 2014 Guide of Sustainable Purchases: Integration of sustainable development within social clauses and measures favouring small and medium enterprises in the framework of public market for federal awarding authorities (section 3)
• Sweden: The Public Procurement Act 2016:1145 (p.102)
• Switzerland The Federal Act on Public Procurement (2019, article 26)
• Jamaica Public Procurement Regulations 2018 (Part IV. The Procurement Process (17))
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3. Voluntary exclusion criteria like suppliers that have violated environmental or social obligations
• European Union: Directive 2014/24/EU of the European Parliament and of The Council of 26 February 2014 on Public Procurement and Repealing Directive 2004/18/EC (101)
• Sweden: The Public Procurement Act 2016:1145 (chapter 16 section 9)
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4. Voluntary non-economic awarding criteria like social labels, suppliers with vulnerable workers (unemployed young workers, disabled, black or indigenous people), suppliers with gender policies, with women as majority shareholders or certain percentage of female workers, or SMEs with technological innovation.
• European Union: Directive 2014/24/EU of the European Parliament and of The Council of 26 February 2014 on Public Procurement and Repealing Directive 2004/18/EC (75, 88, article 2 and 43)
• Spain: Law 9/2017 of 8 November of Public Procurement Contracts by which Spanish Legal Framwork is aligned to Directives of the European Parliament and Council 2014/23/UE and 2014/24/UE of 26 februrary 2014. (article 145)
• Switzerland: The Federal Act on Public Procurement (2019, article 29)
• Canada: Standard Acquisition Clauses and Conditions (SACC) Manual (chapter 9 procurement strategy for aboriginal business)
• Mexico: Law on Acquisitions, Leases and Services of the Public Sector (2000, last amendment 2020, article 14)
• Chile: Decree 250 Ruling of the Law of Bases on Administrative Contracts of Supply and Provision of Services (2004, last amendment 2020, article 23); Directive 17 Instructions to Conduct Inclusive Public Procurement that Promotes Equal Opportunities in the Public Market
• Costa Rica: Executive Decree 39310 National Policy of Sustainable Public Procurement and Creation of the National Steering Committee of Sustainable Procurement (2015, article 4)
• Kenya: Public Procurement and Asset Disposal Act 33 (2015, provision 157)
• Zambia: Public Procurement Act (2008, section 63)
• South Africa: Preferential Procurement Policy Framework Act 2000: Preferential Procurement Regulations 2017
• Vietnam Law No.43/2013/QH13 dated November 26, 2013 of the National Assembly on bidding (2013, article 14).
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5. Mandatory non-economic awarding criteria like higher score to bidders that offer better labour conditions to their workers or procuring certain amounts of public funds to vulnerable suppliers like food source from family-based farms or to women-owned SMEs
• Chile: Law 19886 Law of Bases on Administrative Contracts of Supply and Provision of Services (2003, last amendment 2018, article 6).
• Brazil: Law 11.947 (2009, article 14)
• Dominican Republic: Law 488-08 that Establishes Regulatory Framework for Development and Competitivity of Micro, Small and Medium Enterprises (MYPYMES) (2014, article 26)
• Paraguay: Procurement Law 2051 (2012) (article 59)
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6. Mandatory human rights inclusion in call for tenders like request private bidders to include their written human rights commitment in their proposals for bids or sign a form that their subcontractors involved in the contract are fully compliant to the best of their knowledge to certain human rights standards.
• Northern Ireland: CPD Supplier Code of Conduct (2020)
• Colombia Guide on Socially Responsible Public Procurement (p.9)
Tender: draft and award of contract
“The tender phase is where tender requirements are presented to the market. It often takes the form of a Request for Proposal (RFP), which is a structured invitation to suppliers to submit a proposal or tender to supply products or services in line with the requirements of the procurement documents that were developed in the pre-tender phase.” (OECD, 2017:77)
Please see below the list of countries that have implemented good practices in this second stage of procurement where you can click on their laws and policies to be directed to the original documents.
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1. Based on the State’s assessment on human rights risks, incorporate a procurement strategy to address them within the contract clauses. Clauses should be proportionate to the level of risk identified and include monitoring or verification mechanisms.
• Northern Ireland: Procurement Guidance Note PGN 03/18 (Northern Ireland Human Rights Commission) p. 7
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2. Request contractor to sign a form certifying that their subcontractors involved in the contract are fully compliant to the best of their knowledge to certain human rights standards.
• Northern Ireland: CPD Supplier Code of Conduct (2020)
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3. Set within the contract contractors’ obligations to respect human rights within all actions related to the contract like having their own human rights policy or develop one within 30 days from the signing of the contract; or compliance with minimum labour non-trafficking or ethical standards.
• Northern Ireland: CPD Supplier Code of Conduct (2020)
• Colombia Guide on Socially Responsible Public Procurement (p.9)
• Sweden: The Public Procurement Act 2016:1145 (chapter 17)
• US Federal Acquisition Regulation (2019, provisions 3.1002 22.1703)
• Spain: Law 9/2017 of 8 November of Public Procurement Contracts by which Spanish Legal Framwork is aligned to Directives of the European Parliament and Council 2014/23/UE and 2014/24/UE of 26 februrary 2014. (article 202)
• Norway: Contract Performance Clauses for Safeguarding basic human rights in the supply chain (2020); Public Procurement Act (2001, section 7)
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4. Set clear expectation of supplier’s responsibility to conduct appropriate due diligence in their supply chains to identify, prevent and mitigate human rights risks.
• UK, Australia, New Zealand and Canada: Principles to Guide Government Action to Combat Human Trafficking in Global Supply Chains (principle 2)
• UK: Protecting Human Rights in the Supply Chain: A guide for public procurement practitioners 2017 (CIPS, University of Greenwich, London Purchasing Consortium, APUC).
Post-tender: Monitoring and evaluation
Post-tender phase involves contract enforcement and management, which includes ensuring that requirements in the contract are met by suppliers.
Please see below the list of countries that have implemented good practices in this third stage of procurement where you can click on their laws and policies to be directed to the original documents.
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1. Set within the contract monitoring and verification mechanisms of human rights or social obligations and penalties in case of breach
• Chile: Directive 17 Instructions to Conduct Inclusive Public Procurement that Promotes Equal Opportunities in the Public Market (2014)
• Spain: Law 9/2017 of 8 November of Public Procurement Contracts by which Spanish Legal Framwork is aligned to Directives of the European Parliament and Council 2014/23/UE and 2014/24/UE of 26 februrary 2014. (article 202)
• Norway: Contract Performance Clauses for Safeguarding basic human rights in the supply chain (2020); Self assessment-Ethical Requirements (2021)