This position paper by the Inter-Agency Procurement Group (IAPG) emphasizes some of the inefficiencies caused by the lack of alignment in procurement requirements among institutional donors in the humanitarian sector.
Context
The COVID-19 pandemic highlighted the critical role of supply chains in humanitarian response. With up to 65% of humanitarian funds spent through procurement, improving procurement efficiency is essential. Humanitarian procurement must navigate a complex intersection of objectives: costefficiency, speed, transparency, compliance with public funding rules, and increasingly, sustainability. The need for harmonised, streamlined procurement practices is more urgent than ever. This paper aims to highlight the operational impacts of donor misalignment and propose practical, sector-wide solutions to improve procurement efficiency and effectiveness.
Key Findings
Based on a survey of 27 IAPG member organisations, the paper focus on IAPG members’ five major areas where donor requirements diverge and negatively impact procurement:
- Competition Thresholds: Varying thresholds across donor’s force NGOs to adopt the strictest rules, increasing lead times and administrative workload.
- Eligibility of Prepositioned Stock Costs: Many donors do not allow costs incurred before grant start dates, discouraging preparedness and efficient stockpiling.
- Digital Documentation Acceptance: Inconsistent acceptance of digital procurement records complicates archiving and audit processes.
- Audit Practices: Diverse audit expectations and lack of standardisation increase workload and risk of non-compliance.
- UN Agency Rules for Implementing Partners: Discrepancies between UN agencies’ internal procurement rules and those imposed on partners create confusion and inefficiencies.
Recommendations
To address these challenges, IAPG proposes six strategic recommendations:
- Shift from Detailed Requirements to Harmonised Principles: Donors should adopt common procurement principles rather than imposing detailed, conflicting rules.
- Create a Dedicated Forum for Procurement Harmonisation: A multi-stakeholder platform should be established to coordinate simplification efforts and share best practices.
- Enhance Prepositioning Strategies: Donors should more broadly recognise and fund prepositioning costs to improve emergency preparedness and cost-efficiency.
- Reform Humanitarian Procurement Centre (HPC) Use: Broaden recognition of HPCs beyond DG ECHO and expand their role in strategic procurement.
- Foster NGO Collaboration: Encourage joint procurement, contract sharing, and supplier vetting to reduce duplication and increase efficiency.
- Establish a Task Force on Medical Procurement: Align quality assurance and procurement rules for medical supplies across donors to reduce risk and waste.
Conclusion
The paper underscores that harmonising donor requirements is not just a technical necessity but a strategic imperative to enhance the effectiveness, efficiency, and sustainability of humanitarian aid. In a time of geopolitical uncertainty and shrinking resources, coordinated procurement reform is essential to ensure timely, accountable, and impactful humanitarian response.
