procurement

This section discusses the procurement of shelter NFIs, in the following stages:

• specification: performance and technical specification (7.4.1) • sourcing: identifying a sustainable supply and appropriate

supplier (7.4.2)

• purchasing: locally or internationally (7.4.3).

This section assumes that aid agencies and government organi- sations have their own logistics standards and procedures, and catalogues of equipment and materials. These guidelines are not intended to replace specialist logistics guidance.

7.4.1 specification

When shelter NFIs are to be distributed, it is important to specify the items carefully, to ensure that the materials will be of the appropriate quality and the right type for use with other shelter NFIs, and to ensure that their weight, size, and packing volume will match the expectations of the logistics chain.

Items should be procured either in accordance with a performance specification, which describes the function that the item is to

potential damage

Large transport operations involving some modes of transport may damage local infrastructure. For example, rural roads may not be appropriate for convoys of trucks, and the resulting damage may, unless repaired, have a bad effect on local relations.

losses in transit

Some materials, such as ceramic roof tiles and glass, are fragile; breakages in transit should be expected, especially over bad roads. Such losses should be factored into project planning, and additional materials should be ordered. Mitigation measures include improving packing, such as packing loads on pallets and protecting them with sandbags; and improving handling procedures and equipment (because many losses occur during loading and unloading). Tarpaulins might be specified or distributed, if the items are vulnerable to damage by rain or sun.

Valuable materials may make transport operations vulnerable to hijack or theft. Additional security measures should be considered.

handling commodities

Commodities with high volumes and weights may put a strain on transport capacities, because the loading and unloading required is labour-intensive. High-value commodities are a greater temptation to thieves if they are stored for long periods; so they should ideally be ordered and distributed on demand. A lack of handling equipment, such as forklift trucks, will slow down unloading. Palletised loads can speed loading and reduce loss in transit, provided that appropriate handling equipment is available. Sufficient labour should be made available, and additional support should be arranged to ensure distributions to vulnerable groups (7.2.3).

7.3.4 storage

There are two main considerations when planning the storage of shelter NFIs: the need for a storage strategy to support distribution systems; and requirements for the storage of specific shelter NFIs.

developing a storage strategy

For efficiency, shelter NFIs are usually distributed to each family in packages containing various commodities – so that, for example, a truck-load of nails is not followed immediately by a truck-load of

7 distribution

Local, national, regional, and international market sources should be evaluated to identify those that have the capacity to supply the commodities to the quantities and qualities required, reliably over the period required; and those that can provide emergency or back- up capacities, or offer alternative commodities.

local sourcing

It is preferable to purchase materials locally, because this can stimulate the local economy, build on local capacities, and reduce tensions between displaced and local communities by spreading the benefits of aid beyond the displaced population.

Large-scale procurements may have significant impacts on the local markets, forcing the costs of the commodities up beyond the reach of the local inhabitants and beneficiaries. For example, it is often the case that local disadvantaged communities rely on the same commodities that are being purchased to support the displaced population. Local purchase may therefore create unacceptable problems for local people, even to the extent of forcing them to seek the support that is offered to displaced communities.

The needs of displaced populations are by their very nature hard to predict. Large orders may be placed locally, and capacity may be increased in response (in part through local specialisation and investment), but after the response is completed the increased capacity may be unsustainable.

Furthermore, large orders may have serious and adverse impacts on the local environment. The environmental impacts are particularly noticeable in the case of wood harvested for construction or fuel. Many other materials, such as thatches and gravel extraction, also have an impact on the local environment. Phased procurement may reduce negative local impacts. Where appropriate, tree re-planting schemes or other environmental reparation measures should be considered (UNHCR 1998).

undertake, or in accordance with a technical specification, which describes the quality of materials and fabrication. Performance specifications are often used for rapid local or regional procurements, when it is not possible to undertake detailed multi- stage tendering processes (5.4.3). Technical specifications or design specifications are often used for common items included in equipment catalogues, if similar items have been purchased in bulk over many years and detailed descriptions can be developed. Technical and performance specifications of common shelter- material items are presented in section 7.5, while common household shelter items are presented in section 7.6. The specifications follow standards laid down by Sphere (Sphere Project 2004) and UNHCR (UNHCR 2000), which contain more details about the function of each item, as part of support for transitional settlement.

7.4.2 sourcing

Aid organisations, the donors supporting distribution projects, and local authorities may have policies and procedures concerning the sources of materials and commodities procured. Basic considerations are listed below:

• ethical concerns, including the question of whether child labour

was used in harvesting, or whether the human-rights record of the manufacturing country is deemed unacceptable;

• environmental concerns, including the potential impact of a

large-scale order on the local environment and on natural- resource management (2.5.4): for example, whether timber is harvested from sustainable forests, or whether production involves ozone-depleting chemicals;

• economic issues, including the potential impact of a large-scale

order on the local economies, both formal and informal: for example, whether the donor country has negotiated trade agreements with the supplier country which might reduce costs, or whether tariffs are in place which might increase costs;

• developmental factors, including opportunities for relief-aid

projects to offer sustainable local development: for example, whether procurement in a particular region might help to stimulate economic growth.

7 distribution 7.4.3 purchasing

It is important to make sure that the appropriate commodities have been properly specified (7.4.1), sourced (7.4.2), and selected before purchasing. Selection should take the following factors into account:

• whether beneficiaries are familiar with the commodities, and

whether they know how to use them;

• the reparability and maintenance of the commodities, including

parts, tools, and skills required;

• options for the replacement or substitution of the commodities

– because sustainable support is an important objective, and because all materials commodities have a limited design life. Some aid organisations and donors have policies which require different procedures to be adopted for single procurements over a certain cost: for example, tendering may be required (5.4.3), or approval by staff at headquarters. Such policies might apply to the purchase of a large quantity of a single NFI commodity.

Other financial constraints and opportunities relevant to purchasing (concerning, for example, the maintenance of a cash flow) are offered in section 2.4.2.

quotations It is very important to understand what a quotation includes: for example, does it cover the costs of packing goods on to pallets, load- ing them, and maintaining additional stocks? The same is true when tendering for labour and building contracts. It is important to take into account the costs of transport, loading, unloading, and storage, especially when procuring bulky shelter materials, because these costs can exceed the costs of the actual materials. It is impor- tant to determine whether the supplier or the transport company will pay for losses in transit; such losses are commonly as high as 10 per cent, or even higher for fragile items such as tiles or glass.

frame agreements

‘Frame agreements’, in which an aid organisation agrees to use a certain supplier first, in exchange for purchasing a commodity at a guaranteed price, may be made or may already exist.

ordering Having decided where and from whom to buy materials, next you need to develop a list of required conditions and specify them in the contract: for example, conditions might include delivery times, the material and packing specifications, liability for losses in transit, The Sphere Project offers guidance on construction standards:

Sourcing of shelter materials and labour: livelihood support should be promoted through the local procurement of building materials, specialist building skills and manual labour. Multiple sources, alternative materials and production processes, or the provision of regionally or internationally sourced materials or proprietary shelter systems are required if the local harvesting and supply of materials is likely to have a significant adverse impact on the local economy or the environ- ment. The re-use of materials salvaged from damaged buildings should be promoted where feasible, either as primary construction materials (bricks or stone masonry, roof timber, roof tiles, etc.) or as secondary material (rubble for foundations or levelling roads, etc.). Ownership of or the rights to such material should be identified and agreed (see Shelter and settlement standard 6, guidance note 3 on page 228).

Sphere Project (2004), chapter 4, p 225

national and regional sourcing

If there are insufficient local sources of materials (perhaps because of concerns for the local environment and effects on the local market, or for reasons of cost), it may be necessary to source materials nationally or regionally. Transport costs will be higher, and supply will be slower. If the goods must cross a national border, customs requirements should be considered.

There may be regional stockpiles and items pre-positioned in anticipation of an emergency. Stockpiling is a crucial part of contingency planning. It should be noted that some materials do not last indefinitely, and old materials from some stockpiles may be in poor condition, especially materials that have been badly stored and those which have short shelf-lives, such as cement and tents.

international sourcing

Some shelter equipment may need to be sourced internationally: items that do not exist regionally, or have long lead times, or need to be stockpiled, or those for which significant savings can be made if ordered in bulk.

Aid organisations should consult head-office procurement staff, because they are likely to have guidance notes on sourcing, and records to indicate whether individual suppliers and manufacturers can deliver satisfactorily.

7 distribution

standards This section includes relevant entries from standards for shelter- material items developed by the Sphere Project (2004), UNHCR (2000), and the United Nations Development Programme and the Inter-Agency Procurement Services Office of the United Nations Development Programme (UNDP / IAPSO 2000). Thanks are due to these agencies for permission to reproduce their copyright mate- rial.

From Humanitarian Charter and Minimum Standards in Disaster

Response (Sphere Project 2004), references are made to the

standards, key indicators, and guidance notes sections.

From Handbook for Emergencies (UNHCR 2000), references are made to chapters 12, 13, 17, and 18.

From volume 1 of Emergency Relief Items – Compendium of Generic

Specifications (UNDP / IAPSO 2000), excerpts are reproduced from

the specifications sections, with details of criteria such as weight, size, and packing volume.

The extracts presented here are intended to give an overview of the kind of information that is available, and to aid general understanding. They do not include the preambles and intro- ductions necessary for a detailed specific understanding of any of the items. The original publications should always be consulted before any standards are used.

7.5.1 tents

Table 7(a) presents the six types of tent in general use by the aid community, summarising and comparing their properties and range of uses.

and responsibility for costs of transport, loading, and unloading. Consider including penalty clauses or incentive clauses to increase the likelihood of commodities arriving on time.

quality control

It is important to maintain quality control, to ensure that specification and sourcing standards are maintained. The purchasing organisation should undertake regular inspections and ‘spot’ inspections, when the inspection is not announced to the supplier. In some cases, a reputable private inspection company may be employed instead. It is particularly important to check the quality of materials at their source, if the materials have to travel a significant distance. In most cases, the cost of maintaining quality control through regular and impartial inspections will be far less than the losses incurred when suppliers seek to avoid their obligations.