The document outlines procurement rules and regulations for an agency that provides assistance and development in Afghanistan. It discusses procurement functions, authorization levels, donor regulations, and the procurement process including needs identification, requisitioning policy, supplier selection, soliciting bids, and purchase orders/contracts. It also covers topics like delivery, payments, warehousing, vehicles management, and forms.

1. AGENCY FOR ASSISTANC
DEVELOPMENT OF AFGHA
PROCUREMENTS AND LOG
RULES AND REGULATION
Revised: June 2011
Dr Roohullah Shabon
Date: October 2011
1
AGENCY FOR ASSISTANCE AND
DEVELOPMENT OF AFGHANISTAN
(AADA)
PROCUREMENTS AND LOG
RULES AND REGULATION
Revised: June 2011
Approved by:
Dr Roohullah Shabon
President/CEO
Date: October 2011
E AND
NISTAN
PROCUREMENTS AND LOGISTICS
RULES AND REGULATIONS

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Contents
Procurements and Logistics Rules and Regulations......................................................................................1
1. Procurement .................................................................................................................................................4
1.2 Procurement Functions .....................................................................................................................4
1.3 Authorization Guidelines ...................................................................................................................5
1.4 Approval Levels ..................................................................................................................................5
1.5 Donor Regulations..............................................................................................................................5
1.6 Procurement Process ........................................................................................................................5
1.6.1 Needs Identification .......................................................................................................................5
1.6.2 Requisitioning Policy......................................................................................................................6
1.6.3 What to Procure .............................................................................................................................6
1.6.4 Requisition Form ............................................................................................................................6
1.6.5 Considerations for Requisition Processing ................................................................................6
1.6.6 Supplier Selection and Determination of the Source of Procurement....................................7
1.6.7 Solicitations for Goods and Services ..........................................................................................7
1.6.8 Closing Date for Acceptance of Bids...........................................................................................8
1.6.9 Rejection of Offers/Proposals.......................................................................................................8
1.7 Source of Procurement (Local Or International)............................................................................8
1.8 Solicitation and Processing Of Quotations .....................................................................................8
1.8.1 Guidelines/Considerations in Supplier/Bid Solicitation:............................................................9
1.8.2 Securing Quotations ......................................................................................................................9
1.8.3 Receipt of Bids .............................................................................................................................10
1.8.4 Additional Guidelines for Sealed................................................................................................10
1.8.5 Cost Analysis ................................................................................................................................10
1.8.6 Purchase Orders and Contracts ................................................................................................10
1.9 Composition of a Purchase Order..................................................................................................11
1.10 Amendments to Contracts...............................................................................................................11
1.11 Contract Formulation Guidelines.................................................................................................... 11
1.1.1 Basic Contents 0f a Contract......................................................................................................12
1.2 Delivery of Goods/Services.............................................................................................................13
1.3 Return Procedures ...........................................................................................................................14
1.4 Payment Procedures .......................................................................................................................14
1.5 Payment Methods ............................................................................................................................14
1.6 Vendor File ........................................................................................................................................15
2. Ethical Guidelines ......................................................................................................................................15
2.1 Relationships with Suppliers...........................................................................................................15
2.2 Ethical Conduct for AADA Staff During Procurements ...............................................................16
3. Subcontracting For Goods/Services/Technical Services.....................................................................16
4. Procurement Procedures..........................................................................................................................17
5. Basic Procurement Forms ........................................................................................................................18
5.1 Requisition Form :( Mandatory for Purchases over Us$100).....................................................18
5.2 Request for Quotation......................................................................................................................18
5.3 Bid Summary Sheet .........................................................................................................................19
5.4 Purchase Order :( Mandatory for purchases over USD 4,999 or AFS 24999)........................19
6. Allow ability of Costs..................................................................................................................................19
7. Reasonable Costs......................................................................................................................................19
8. Warehousing Management ......................................................................................................................20
8.1 Warehouse Inspection.....................................................................................................................20
8.2 Acceptance of Materials / Goods ...................................................................................................20
8.3 Storage of Goods .............................................................................................................................21
8.4 Stock Record and Control:..............................................................................................................21
8.5 Monitoring..........................................................................................................................................22
8.6 Procedure for Releasing Goods..................................................................................................... 22
8.7 Waybill................................................................................................................................................22
8.8 Transportation of Goods..................................................................................................................22
9. Vehicles Management...............................................................................................................................23

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9.1 Types of Vehicles in AADA.............................................................................................................23
9.1.1 Personal vehicles of staff............................................................................................................23
9.1.2 Rented Vehicles ...........................................................................................................................23
9.2 Technical and Safety Rules for AADA Drivers.............................................................................24
9.2.1 Body Checking of the Vehicles ..................................................................................................24
9.2.2 Mechanical check: .......................................................................................................................24
9.2.3 Vehicle inspection ........................................................................................................................24
9.2.4 Driving conduct and safety .........................................................................................................24
9.3 Tool kit................................................................................................................................................24

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1. Procurement
One of the main responsibilities of the Logistics/Procurements Unit of AADA main office is to assure
that goods and services required to support program operations are supplied at the right time, with
adequate quality for the best overall cost. It also acts as the main contact between the suppliers and
other departments (Finance and Program) in the central office.
The Logistics/Procurements Unit serves as the channel through which requests regarding goods and
services are handled. It is responsible for initiating and maintaining good relationships with suppliers.
Negotiations with suppliers should only be undertaken by logistics/procurements staff duly authorized.
In consultation with President/CEO, only the General Director or his designee, Operation Manager,
Project Manager and Finance Manager are authorized to make/assign and dismiss committee for the
purchase of goods and services.
The Logistics/Procurements Unit is responsible for developing a wide range of sources to provide
adequate competitive bids of comparable overall quality and cost. They should maintain an up-to-
date database of qualified vendors that meet objectively justifiable minimum requirements. Bids or
quotations submitted to the Logistics/Procurements unit should be kept confidential.
It is the responsibility of the procurement/logistic staff to assure delivery of goods and services by the
supplier are done on a timely manner, clearance of any imported materials or equipment and
negotiations of any returns or adjustments, when necessary. The Logistics/Procurements Unit should
also maintain open line of communication with departments (Finance and Program) that have made
requests for the purchase of goods and services.
The following is a detailed step by step procedure that must be completed on all purchases for the AADA. If in
any event this procedure is in conflict with those of a donor, the donor requirements will take precedence.
For Staff procurement authorization, refer to financial AADA authorization chart:
In general, the General Director will take approval of any procurement above $ 5000 from
President/CEO. Purchases exceeding $10,000, or are classified as capital assets and need approval of
President/CEO and one board member.
1.2 Procurement Functions
The following brief job descriptions represent the main responsibilities required of a procurement
operation:
• Coordinates local and (international if required) procurement activities
• Hire, train and supervise logistics/procurement staff involved in procurement
• Adhere to established policies and procedures
• Update the General Director/Project Manager and finance manager/officer of significant
economic issues
• Contact with suppliers, if necessary
• Reviews purchase requests for completeness and approvals
• Prepares requests for quotations to be sent to suppliers
• Analyze quotations and prepare bid analysis

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• Maintain product and supplier information
• Negotiate with suppliers, within limits of authority
• Meet with suppliers, if necessary
• Follow up with suppliers to ensure prompt delivery
• Clear imported goods from government customs
• Perform other functions are required
1.3Authorization Guidelines
Policy: Only those staff that has been given approval authority may commit AADA to a purchase
order or other form of contract.
1.4Approval Levels
See the finance section, Article 6.
1.5Donor Regulations
AADA procurement policies and procedures as outlined in this manual have been developed to
assure general compliance with standards and various donor regulations. However, additional donor
requirements not outlined in this manual should be considered and it is responsibility of Program
Managers to inform AADA management about any changes or additions about donor specific
requirements regarding procurements.
1.6Procurement Process
1.6.1 Needs Identification
Planning of requirements by the requestor must be at the forefront of all purchases. Most supply
requirements are anticipated and result from the program budget.
If exceptional circumstances prevent planning and early notification of the requirement, it is still
required that purchasing processes and procedures are followed. If this is not possible because of
urgency, approval should be sought from the Authorized Signatories and the reasons and
circumstances for the urgency should be fully documented.
Before initiating any procurement, it should be a standard measure to check if the goods, and in
particular assets, are available from other sources than procurement (e.g. redeployment).
In addition, where appropriate, an analysis is made of lease and purchase alternatives to determine
which would be the most economical and practical procurement for the donors.
The procurement staff/buyer should provide planning support i.e. he/she supports and advises the
requestor in completing the requisition and gives appropriate input as regards to:
• Quality
• Delivery expectations
• Detailed specifications
• Policy and procedures

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1.6.2 Requisitioning Policy
A formal written request should be made by a department to the Logistics/Procurements Unit in order
to initiate the procurement process.
If the value of the purchase is above USD100, a Requisition form is required to be filled in. Sufficient
detail and proper approval are the most important elements of a complete Requisition form.
If the value of the amount to be purchased is below USD100, the procedures will be proceeding
without any Requisition and requisition form should be filled and authorized later. Form but only for
allowable items. Fancy and other restricted items should not be included in petty cash procedure.
1.6.3 What to Procure
The procurement of any item should be based on the actual needs of the program. Hence, it is
important to avoid purchasing unnecessary items. For purposes of this guideline, needs is defined as
project costs such as equipments, commodities, supplies and services required to achieve the
objectives of the program and are allowed to be procured by the donors.
1.6.4 Requisition Form
A completed Requisition Form is required for all purchases in excess of $100.00. The Procurement
Requisition Form must include:
• A complete description of the item and unit for each item
• Quantities required estimated cost and budget/codes.
• Stock position for each item.
• Date required.
• Special shipping requirements, if any.
• Whether the purchase is to be made locally or internationally.
• Suggested vendor, if known
• Obtaining all required signatures which are indicated in Requisition Form.
1.6.5 Considerations for Requisition Processing
Upon receipt of the request from the other departments, the Logistics’ staff should make sure that:
• Check the requisition for authorization and completeness of the specifications and determines
whether bids, signatures or additional information are required.
• Review of the specifications detailed in the requisition like requests to purchase from a sole
source, for quantity greater than required, those inconsistent to actual needs or insufficient
detail. Any changes to the purchase requisition should be discussed with the department who
made the request together with appropriate approval.
• The Logistics/Procurements unit should maintain a list of suppliers. The requestor may
recommend a source, but the selection of vendors to be solicited is solely responsibility of the
Logistics/Procurements staff assigned to do the procurement.

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• When the requisition is presented as “urgent”, or mentioned ASAP (As Soon As Possible) the
timeframe for the requirement should be clearly stated. All departments should make every
effort to minimize rush transactions.
The procurement staff should open a subject file for use during the bidding process if it is required to
be conducted.
In order to avoid unnecessary delays and confusion, open lines of communication between
Logistic/Procurements and other departments should be maintained. This is to move the requisition
efficiently.
1.6.6 Supplier Selection and Determination of the Source of Procurement
Suppliers List
The Logistics/Procurements Unit should maintain a database of potential and current suppliers. The
following basic information should be present in each file whenever possible:
a) Full name and addresses
b) Product information
c) After sales service
d) Quality of products, delivery time, payment terms, warranties
e) Packing and shipping facilities
f) Company profile, including financial data
g) References
h) Past performance record
1.6.7 Solicitations for Goods and Services
Once the review process for requisition is done, suppliers are identified. The choice of suppliers to be
approached is made by the Logistic/Procurements unit, with suggestions from the department who
made the requisition.
After researching possible sources, the Logistic/Procurements Unit forwards the RfQ (Request For
Quotation) to three or more vendors and follows up to obtain timely bids and to work out details.
The following information should be included in the Request for Quotation to the supplier:
• Date when reply is requested.
• A clear and accurate description of the technical requirements for the material, product or
service to be procured. In competitive procurement, such a description shall not contain
features, which unduly restrict competition. The specific features of "brand name or equal"
descriptions that bidders are required to meet when such items are included in the solicitation.
• A description, whenever practicable, of technical requirements in terms of functions to be
performed or performance required, including the range of acceptable characteristics or
minimum acceptable standards.
• Quantity of each item required
• Delivery date by which items are expected

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• Packing and shipping requirements (if any)
• Terms and methods of payment
• Other requirements the bidder/offer or must fulfill and all other factors to be used in evaluating
bids or proposals.
1.6.8 Closing Date for Acceptance of Bids
The closing date for each RfQ must have at least three days to provide the bidders sufficient time to
prepare responsive bids.
1.6.9 Rejection of Offers/Proposals
The RfQ should contain a statement concerning AADA’s right to accept or reject offers/proposals prior
to the award of the order/contract. Such action should not be taken for the sole purpose of obtaining
lower prices.
1.7Source of Procurement (Local Or International)
Several factors have to be considered when determining whether to purchase the item locally or
source them out of the country:
• Item specifications
• Product availability
• Overall cost
• After sales service
• Procurement restrictions imposed by donors
• Emergency requirements
However, due consideration is to be given to the procurement of goods and services in the area of
operation to support the economy of local host country. It is also important that provided local
products/services are of adequate quality and offer competitive price.
If the item required needs to be sourced internationally, solicitations should have a wide geographical
distribution, i.e. not limited to a procurement agent or vendors domiciled in the country where AADA’s
headquarter is situated. However, if the program is funded by USAID, the source, origin, nationality
requirements of the grant should be complied with. Documentation is always required regarding
inability to meet delivery dates, substitutions, sole source reasoning and failure to meet required
number of bid responses.
1.8Solicitation and Processing Of Quotations
Policy: AADA’s policy is to conduct procurement transactions, which provides free and open
competition. This would require three or more suppliers to solicit for written quotations.
The Director General or his designee may make exceptions from the competitive bidding rule only in
the following cases:
• Prices or rates are fixed pursuant to national legislation or by regulatory bodies (e.g. Fuel).

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• Standardization of supplies, equipment or spare parts render competition impracticable like
toner cartridges for a particular photocopier.
• When the required number of sources of the items are unavailable.
• When emergency factors require a break from policy to achieve certain objectives in a limited
amount of time.
• When the item is not available in the open market at the time it is needed.
• RfQ/RfP would not give satisfactory results or would not be deemed in the interest of the
organization, as e.g., a contract is to be extended and changing the entity would not provide
continuity in the work.
• The proposed contract relates to procurement from a sole source of supply or services (e.g.
sole authorized vendor).
• Any other situation that can be documented to justify lack of competitive bidding.
1.8.1 Guidelines/Considerations in Supplier/Bid Solicitation:
Preference, to the extent practicable and economically feasible, should be given for products and
services that conserve natural resources, protect the environment, and are energy efficient.
Positive efforts shall be to utilize small businesses, minority-owned firms, and women's business
enterprises, whenever possible. AADA shall take all of the following steps to promote and achieve this
goal.
Ensure that small businesses, minority-owned firms, and women's business enterprises are used fully
practicable.
Make information on forthcoming opportunities available and arrange periods for purchases and
contracts to encourage and facilitate participation by small businesses, minority-owned firms, and
women's business enterprises.
Consider in the contract process whether firms competing for larger contracts intend to subcontract
with small business, minority-owned firms, and women's business enterprises.
Encourage contracting with consortiums of small business, minority-owned firms and women's
business enterprises when a contract is too large for one of them to handle individually.
Use the services and assistance, as appropriate, of such organizations as the Small Business
Administration and Department of Commerce's Minority Business Development Agency in the
solicitation and utilization of small businesses, minority-owned firms and women's business
enterprises.
1.8.2 Securing Quotations
a) Bids should be solicited only after a decision has been made to procure goods and services
through the standard requisition process.
b) Subject to donor regulations, phone bids are applicable for purchases above USD100 but below
USD200. Written quotations are required for purchases above USD200. The following points
should be made clear to the supplier:
Discussions held between AADA staff and the supplier before conclusion of the contract will
not bound AADA for execution of any term or condition in the contract.

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AADA is not under any obligation to cover any cost incurred by the supplier prior to
confirmation of order, unless otherwise agreed to in advance and in writing by the Main
Office.
1.8.3 Receipt of Bids
Quotations/Bids received should be immediately brought to the person designated to receive them for
recording/safekeeping. All bids received should be kept confidential.
1.8.4 Additional Guidelines for Sealed
The Logistics/Procurements Unit should be aware of donor requirements for sealed bidding. For
USAID, once the procurement goes beyond the small purchase threshold of USD100,000 sealed
bidding process should be undertaken by the grantee.
Bids received prior to the closing time specified in the RfQ should be kept secure and unopened until
the bid opening date. However, bids maybe withdrawn or modified prior to bid opening.
A late bid will not be considered even though it is due to circumstances beyond the bidder’s control. It
will be returned unopened to the bidder. A late bid will only be considered if the cause of it becoming
delayed is attributable to the contracting agency.
Sealed bidding shall be open by at least two AADA procurement staff, which shall record at a
minimum the name of the bidder and the total bid.
1.8.5 Cost Analysis
Upon receipt of the bids or quotes, the procurement staff reviews them for compliance with the
specifications.
Several factors should be considered when comparing the overall cost of an offer. Among them are
price, quality, delivery, terms of payment, insurance and transportation costs, packaging and handling
costs, source (local or international) of procurement, among others.
A “responsive” bid is one that complies with all the terms and conditions of the RfQ without material
modification. A material modification is one which affects in any way the price, quality, scope or
completion date or which limits in any way responsibilities, duties or liabilities of the bidder or any
rights of AADA as any of the foregoing have been specified or defined in the RFB.
No bidder is allowed to modify nonresponsive bids after bid opening to make them responsive.
However, AADA may request the bidder to provide clarifications of the bid as long as no material
modification is made.
A comparative analysis of local and international procurement of assets and large purchases must be
documented all the time. The process of cost analysis should be assigned to properly trained staff, as
this requires good judgment. This will provide the authorized entity and other delegated individuals to
approve the analysis done prior to confirmation of the order.
1.8.6 Purchase Orders and Contracts
A purchase order is prepared and issued to the vendor, upon receipt of the approval in writing from all
authorized personnel. The purchase order gives the supplier authorization to deliver and invoice the

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ordered goods or services, and therefore becomes a commitment for the amount and value of those
items.
Purchase orders are based on the approved Requisition Form and Bid Analysis.
Contract is a deliberate agreement between two or more competent persons/parties to perform or not
to perform a specific act or acts. A Purchase Order when accepted by the vendor becomes a contract.
The Purchase Order or Service Contract shall be awarded to the qualified bidder whose bid is
evaluated to be the lowest offer/proposal meeting the requirements. In other words, any criteria
specified in the solicitation documents, such as quality, delivery time, payment terms and compatibility
with existing equipment, may be used to evaluate the offers/proposals.
Before issuing a purchase order, the vendor is contacted to verify the bid, availability of all items,
shipping procedures, special handling, shipping date, and method of payment.
Prior to issuing a purchase order, it must be verified that there are sufficient funds remaining in the
grant line item. This can be accomplished by reviewing the most recent financial statement to
determine the amount of funds already spent. All open purchase orders must then be reviewed in
order to determine amounts that have been obligated.
1.9Composition of a Purchase Order
A list of basic information required in a purchase order follows:
a) Date of purchase order
b) Date goods or services are required on site
c) Payment terms
d) Full name and address of supplier
e) Item numbers and quantity of each item required
f) Units requested for items like piece, set, liter
g) Full description of goods and services
h) Total price of the purchase order
i) Signature of authorized personnel
1.10 Amendments to Contracts
Approval of an amendment to an existing contract like increasing the scope of work is required to be
obtained from authorized personnel.
1.11 Contract Formulation Guidelines
The establishment of contracts of any kind in any central or provincial office is normally the
responsibility of the Logistics/Procurements Unit, although in some situations, other departments may
be delegated by the Operation Manager under the supervision of General Director for this
responsibility.

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1.1.1 Basic Contents 0f a Contract
The following briefly covers some of the more essential elements of the standard contract:
a) Construction contracts
Statement of intent
Specifications
Drawings, blueprints, schedules
Insurance provisions
Definitions of responsibility
Permits, licenses
Inspection requirements
Subcontracting regulations
Penalty and escape clauses
Statement of warranty
Payment timetable
Performance bonds
b) Lease agreement for property
Identification of lessee and lessor
Location of property
Description of property
Terms and conditions of the lease
Payment amount and period
Terms for renegotiation of the lease
c) Lease agreements for equipments
Identification of lessee and lessor
Description of equipment
Terms and conditions of the lease
Payment amount and period
Terms for purchase or optional renewal
Delivery, maintenance and other special charges
Conditions or restrictions on use
d) Lease agreements for vehicles
Identification of lessee and lessor

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Description of vehicle
Terms and conditions of the lease
Payment amount and period
Terms for optional renewal
Maintenance and other special charges
Conditions or restrictions on use
e) Contracting for individuals for services
statement of work
cost provisions
allowances and benefits
advance payments provisions
worker’s compensation coverage, if applicable
1.2 Delivery of Goods/Services
The responsibility for the coordination of clearance of goods is with the Logistic/Procurements Unit.
This responsibility also includes the determination, before confirmation of order, of relevant
regulations regarding the assessment of import duties, levies or taxes on purchased items. It is also
the responsibility of the Logistic/Procurements unit to assure that goods move in an expeditious
manner from the supplier to the central/provincial offices through follow-up.
The Field Office will follow-up with the vendor prior to shipping to ensure deadlines will be met and to
keep the freight forwarder and the Operations Manager informed as to status at all times.
For international, and if applicable, local procurement, the appointed freight forwarder shall be
instructed to send at a minimum the following documents:
• advance shipping advice by fax or e-mail
• waybill
• invoice and packing list
• other documents as required
Upon receipt of material, the Field Manager (if the items are received in the site rather than the central
office) inventories the material against the purchase order and forwards the original packing slips with
the signed inventory to the AADA Central Office.
If the order is incomplete, a back order report is prepared containing:
• Date of original order.
• Purchase Order Number
• vendor
• Description of items not received.

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• Quantity ordered.
• Quantity received.
• Date received.
The vendor is then contacted to determine the reason for delay and confirm new delivery dates.
The process described above is continued until all items have been received, all packing slips,
verifications, and invoices have been received, and payment in full to the vendor and freight forwarder
has been made. The file is then closed and transferred from the pending files to the central file cabinet
for storage.
1.3 Return Procedures
It sometimes becomes necessary to return materials because the goods are no longer required,
excess material was ordered, or the material as received is not acceptable. The requisitioning
department is responsible for the identification and return of all items requiring return, in coordination
with the Logistic/Procurement unit. The requisitioning department should provide a list of items to be
returned to the Logistics/Procurements Unit who will negotiate return of the materials to the supplier. If
the return cannot be negotiated, the matter should be referred to the Operation Manager or
GeneralDirector.
1.4 Payment Procedures
For goods and materials:
If not already received, invoices for any unpaid balances are requested.
If all the goods ordered were received, the invoice is verified and, if complete, the invoice with
a payment request is forwarded to the Finance Department for payment. If the goods are not
all received, a corrected invoice is requested.
After receipt of a complete and correct invoice, a Payment Request is prepared. Any
advance payment made to the supplier should be taken into consideration when preparing the
payment request. Originals of the following must be attached to the Payment Request:
purchase order, request for bid, vendor's bid, requisition, invoice, cash advance voucher (if
applicable) and Letter of Approval, if needed. These documents are then submitted to the
Accounting Department for processing.
For Contracts
The contract should be closed out in an orderly fashion upon satisfactory completion of work of the
contractor. Final payment to the contractor is withheld until the contractor provides evidence that it
has met all of its obligations under the contract and all required certifications (including acceptance of
the work by AADA) have been executed.
1.5 Payment Methods
Several (available) payment options may exist depending upon agreement reached between a central
office and the supplier. The payment option should always be clearly detailed in the purchase order as
follows:
a) Direct payment by cheque.

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b) Wire transfer directly from the central bank offices accounts of applicable or available.
c) Cash payment when wire transfers or direct payment by cheque is not possible. This should be
avoided unless there is no other option.
d) Wire transfer from a central bank account on behalf of the central office.
1.6 Vendor File
A vendor file would contain the following:
a) Procurement Requisition.
b) Bids/Quotes.
c) Purchase Order.
d) Invoice stamped “Paid” to avoid any possible double payments.
e) Shipper's Bill.
f) Receipt of Shipment Confirmation has to be available or invoice needs to be stamped “Received”
with receiving party signature and date.
g) All related reconciliation material.
Correspondence Letters
a) Memos/Fax’s
b) Records of Conversations
c) Donation letter (if applicable)
d) Packing list
e) Pro forma invoice
f) Other related documents if applicable or available
Procurement records and files should include the following at a minimum: (a) basis for contractor
selection, (b) justification for lack of competition when competitive bids or offers are not obtained, and
(c) basis for award cost or price.
Operations Manager or his/her designee verifies the inventory, and if complete, files in the vendor file
with related purchase order material.
Throughout the process, the Operations Manager or his/her designee audits the file against the
Procurement File to ensure all required documents are received in a timely fashion and are filed
appropriately.
2. Ethical Guidelines
2.1 Relationships with Suppliers
The following should be observed when dealing with vendors and their representatives:
a) Give fair and equal treatment to their suppliers and representatives.
b) Provide equal opportunity for all suppliers to make quotations.

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c) Keep all quotations received confidential.
d) Keep vendors informed of current and anticipated requirements.
e) If, for any reason, one vendor is allowed to re-quote, all competitors should be given the same
opportunity.
f) Remain free from obligations to any supplier.
2.2 Ethical Conduct for AADA Staff During Procurements
AADA maintains a code of standards of conduct that shall govern the performances of its employees
engaged in the award and administration of contracts. No employee, officer, or agent shall participate
in the selection, award, or administration of a contract supported by donor funds if a real or apparent
conflict of interest would be involved. Such a conflict would happen when the employee, officer, agent,
any member of his/her immediate family, his/her partner, or an organization employs or is about to
employ any of the parties indicated above, has a financial or other interest in the firm selected for an
award. AADA officers, employees, or agents shall neither solicit nor accept gratuities, favors, or
anything of monetary value from contractors, or parties to sub-agreements. These standards shall
provide for disciplinary actions to be applied for violations of such standards by AADA officers,
employees, or agents.
3. Subcontracting For Goods/Services/Technical Services
• The following provisions shall be adhered to for subcontracting:
• The process of contractor selection shall be conducted in a manner to provide, to the
maximum extent practical, open and free competition. AADA should be alert to organizational
conflicts of interest as well as noncompetitive practices among contractors that may restrict or
eliminate competition or otherwise restrain trade. In order to ensure objective contractor
performance and eliminate unfair competitive advantage, contractors that develop or draft
specifications, requirements, statements of work, invitations for bids, and or requests for
proposals should be excluded from competing for such procurement. Awards shall be made
to the bidder or proffer whose bid or offer is responsive to the solicitation and is most
advantageous to AADA, price, quality and other factors considered. Solicitations shall clearly
set forth all requirements that the bidder or proffer shall fulfill in order for the bid or offer to be
evaluated by AADA. All bids or offers may be rejected when it is in AADA's interest to do so.
• Contracts shall be made only with responsible contractors who possess the potential ability to
perform successfully under the terms and conditions of the proposed procurement.
Consideration shall be given to such matters as contractor integrity, record of past
performance, financial and technical resources or accessibility to other necessary resources.
• The type of procuring instruments used (e.g., fixed price contracts, cost reimbursable
contracts, purchase orders, and incentive contracts) shall be appropriate for the particular
procurement and for promoting the best interest of the program or project involved.
• Contracts should be written in English unless AADA agrees otherwise.
Contracts in excess of the small purchase threshold shall contain contractual provisions or conditions
that allow for administrative, contractual, or legal remedies in instances in which a contractor violates
or breaches the contract terms, and provide for such remedial actions as may be appropriate.
All contracts in excess of the small purchase threshold shall contain suitable provision for termination
by the recipient, including the manner by which termination shall be effected and the basis for
settlement. In addition, such contracts shall describe conditions under which the contract may be

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terminated for default as well as conditions where the contract may be terminated because of
circumstances beyond the control of the contractor.
4. Procurement Procedures
The following is a detailed step by step procedure that must be completed on all purchases for the
AADA. This procedure is meant as a guide, and while some exceptions are anticipated for
emergencies, it should be followed as closely as possible. If in any event this procedure is in conflict
with those of a donor, the donor requirements will take precedence. Based on 21 article of
Afghanistan procurement law, the RFQ (request for quotation) method is applicable for all goods or
services which are under Afs, 500,000. Less than Afs, 3000 needs single source purchasing with one
person’s signature, 3000 up to Afs,15,000 2 person’s signature but with three quotations, and 15000
up to 500000, three person’s signature with three quotations. Our procurement policy should be
arranged within these ranges.
• All Logistics/Procurements and Administration staff and those others specifically authorized
by AADA management may make direct purchases using the petty cash fund for total orders
of less than USD 100 or AFS 5000, but later on completing Requisition Form and obtaining
approval of each expense needs authorization according to the list of authorized signatories.
• In the event that the order cannot be purchased, or paid for, at a site and must be procured
through Central office, a Requisition Form must be completed and it must be sent to main
office for further execution.
• If a purchase is less than the USD 100 or AFS 5,000, but cannot be paid for out of petty cash
and requires payment by cheque, then a Requisition Form must be completed before
purchasing the item.
• Any order, regardless of its value that is considered by a specific donor to fall into the
category of unallowable items will not be processed. It is the responsibility of each authorized
individual to be aware of the specific requirements related to the grants which fund your
program as to what costs are unallowable. The U.S. Government grants have detailed listings
of those items that cannot be purchased under any condition, or requires advance approval
from the donor.
• All purchases require a requisition form, and it must be authorized.
• A requisition form must be completed and given to the Logistics/Procurements Department.
• Three written bids are mandatory for each purchase when exceeding USD 99 or AFS 4999. In
the event that the specifics of the situation does not allow for the required written bids, the
person completing the requisition must provide a detailed justification in the comments
section of the Requisition Form.
• Once written bids have been completed, Logistics/Procurements must then complete the
Procurement Bid Summary/analysis. It is normally the responsibility of the
Logistics/Procurements Department to return the requisition form with the written quote sheet
and bid summary to the issuing individual to determine, and justify which vendor with whom
the order will be placed. In the event that the vendor awarded the bid is not the apparent low
bidder, proper justification must be given for the selection of the vendor.
• It is the responsibility of the Finance Department to insure that sufficient funds are available to
pay for the purchase, and that all donor requirements have been met under the terms of the
specific grant to be charged. In the event that it does not appear that there are sufficient
funds to pay for the purchase, or that the purchase is not allowable under the terms of the
grant, Finance must discuss the issue with the person placing the requisition.

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• If agreement cannot be reached between the individual placing the order and the Finance
Department, approval must be received from the Director General or Board of Directors prior
to the purchase being made.
• All purchases greater than USD 499 or AFS 24,999 require an issued purchase order.
• Three written bids must be solicited from prospective vendors. Approval in writing by the
Controller and the authorized signatories must be obtained prior to purchase. All records of
bids and subsequent purchases should be maintained in the AADA Central and Field Offices
for review and subsequent audit.
• As each donor has different guidelines and requirements in determining capital assets,
“attractive” items, each individual is responsible for knowing the requirements or consult the
Finance Department to make the appropriate determination.
• All purchases must meet the criteria mentioned above.
5. Basic Procurement Forms
5.1 REQUISITION FORM :( MANDATORY FOR PURCHASES OVER US$100)
• Without any exception, it is mandatory to execute separate Requisition Form for each item
which is going to be charged to separate budget line and separate grant.
• As most items on the form are self-explanatory, it is not necessary to give a line-by-line
description of how to complete the form. Generally, more detail provided under the item
description will make the process easier. Please be aware that the U.S. Government requires
justification for procurement of items based on specific trade or brand names. Obviously, if
you are looking for replacement parts for a particular item, you will need those authorized by
the manufacturer.
• Please provide all information required as stated in the comment section. It is especially
important that any information that would require you to choose other than low bid must be
detailed and given to each prospective vendor. For example, if there is a specific time of
delivery required, it must be listed. If this information were not provided to the vendor, you
would not have justification for selecting another bidder based on the delivery time.
• The person making the requisition shall keep one copy and give the original one to the
Logistics/Procurements Department.
• Logistics/Procurements unit will keep one copy for their internal record keeping.
• Once Logistics/Procurements unit has completed the purchase order, the original copy of the
requisition will be attached to the purchase order. In the event that a purchase order is not
used, one copy of the requisition will be attached to the invoice or the request for payment.
5.2 Request for Quotation
• AADA has developed sheet for Request for Quotation. The person who requests any type of
bid should use this sheet and request the vendor to provide him/her the filled sheet of
Request for quotation stamped and signed.
• Please insure that the description provided in Request for Quotation is sufficient and
adequately covers the requirements relating to brand name items or unallowable items.
• The Logistics/Procurements Department is normally responsible for the completion,
distribution and collecting of this sheet.

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5.3 Bid Summary Sheet
• This summary page is intended to provide a side by side comparison of the information
contained on the received Request for quotation from suppliers.
• Logistic/Procurement unit is responsible for forwarding the summary to the individual who is
authorized for final decision to select one supplier.
• If the person placing the order determines that the order should be placed with other than the
apparent low bidder, it is that person’s responsibility to fill in the section of recommended
vendor and the reason why that vendor was chosen. If you are unsure as to the proper
procedure for choosing a recommended vendor, please discuss the issue with the Operation
Manager.
• Once the vendor is selected, the person making the choice should sign the first approved line.
The summary should then be given to Operations Manager second approved line.
• Upon Operations Director approval of the summary, it is responsible to forward the summary
back to Logistics/Procurements for that department to complete the purchase order.
5.4 Purchase Order :( Mandatory for purchases over USD 4,999 or AFS
24999)
• All information on the purchase order shall be taken directly from the bid summary. It is
important that all line items be completely filled out, and should not vary from the information
used to make the selection of the vendor.
• While it may seem redundant, each person, or department, who has signed the other forms,
must also sign on the appropriate line. Once the purchase order has been sign, it will be
returned to the Logistics/Procurements Department for presentation to the vendor.
• There should be an indication at the bottom line showing number of purchase order copies
and which department/section gets the copy.
• For more than 500000 Afs we can use either the open tendering, or restricted tendering
procurement methods based on environmental or social situations.
• Procurement procedure for more than 500000 Afs in open tendering (bidding) method: to be
sure the availability of cost and budget, formation of specifications in bidding document
(Shartnama),procurement announcement, distribution of bidding documents for applicants,
taking security payment for Shartnama, opening of bids’ meeting, announcement of the
responsive offer, procurement acceptance announcement, procurement agreement with
successful bidder, and payments, ,
6. Allow ability of Costs
• All items that are requested to be purchased should meet donor rules and regulations and be
allowable.
• All purchased items should be adequately documented.
7. Reasonable Costs
• A cost is reasonable if, in its nature or amount, it does not exceed that which would be
incurred by a prudent person under the circumstances prevailing at the time the decision was
made to incur the costs.

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• In determining the reasonableness of a given cost, consideration shall be given to:
• Whether, the cost is of a type generally recognized as ordinary and necessary for the
operation of the organization or the performance of the award.
• The restraints or requirements imposed by such factors as generally accepted sound
business practices, arms length bargaining and terms and conditions of the award.
• Whether the individuals concerned acted with prudence in the circumstances, considering
their responsibilities to the organization, its members, employees, clients, and the public at
large.
8. Warehousing Management
A warehouse is a storage facility where goods are kept in secured, systematic, and orderly form. The
type of building AADA should maintain will be described according to the standard specification of
AADA. The warehouse size, nevertheless, should be wide enough to allow movement of goods as
well as to provide free access to people who make inventories and labeling. A bigger capacity of a
warehouse is convenient in times of ordinary working days and essential in times of emergency where
ample space for movement of people or goods may prove vital to this type of situation. The question
of extra or ample space can also become critical especially in times of fire where wider isles can serve
as a safety mechanism to prevent the collusion of people and goods.
The parking area as well as the loading, and unloading space should also be strategically convenient
in terms of easy carriage of goods in and abut of the warehouse. The loading, and unloading zone is
also recommended to be a location closer to the storage area of the particular item. This is expected
to save time and reduce any confusion of storage areas designated for each type of consignment.
The warehouse should be water right, and constantly checked for the smallest leakage. Fire
prevention and detection methods are also to be put in place for an immediate response in case of
fire. To this end, fire extinguishers are to be located at each corner of the warehouse in addition to
other strategic locations that are identified as critical to combat fire. In order to prevent any possible
cause for fire, smoking cigarettes and other use of fire is also prohibited inside the warehouse. The
warehouse personnel especially the guards, who are exposed to extreme weather condition, should
be provided with heating and cooling systems, to that the need for warmth should not encourage the
use of fire around the warehouse.
8.1 Warehouse Inspection
The warehouse inspection will be carried out by the AADA senior management to ensure that the
standard is according to the specification of AADA warehousing procedure, which follows the method
for inspecting order, safety, and maintenance. The following areas may be looked for as a regular
inspection mechanism.
• Systematic and safe storage of goods.
• The space between stacked goods is within specification, and that the aisles are clear for
movement.
• Fire warning and prevention system is in place.
• Security procedures are followed.
• The method and system of reporting the findings shall be recorded in a warehouse inspection
form and duly signed by the person that performed the inspection.
8.2 Acceptance of Materials / Goods

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This calls for a strict and well-defied regulation as to the circumstances of acceptance of goods at the
warehouse. This means that the hours of acceptance of delivery should be defined, and authorized
individuals should be assigned to take responsibility for accepting the delivered goods. The
acceptance procedure should include the responsible inspection team that will verify the quality and
identity of the goods. The general inspection is an initial process that must take place upon arrival of
shipment of the warehouse that involves the physical counting of items, and an evident check of
damage, that does not require the special expertise of the technical unit.
Incoming shipments, weather delivered by a supplier, a handling agent or even AADA must be
accompanied by a complete documentation that would enhance the smooth running of the hand over
process. Upon successful delivery of goods that follows quality check, physical quantity check, and
correct documentation, the warehouse in charge will sign the way bill that has a record of the actual
shipment.
The responsibility and procedure for receiving the goods and shipment will include:
• Unload and unpack goods.
• Check goods against purchase order and bills.
• Make quality control.
• Fill out and sign the goods received form.
• Sign on the Goods Delivery Note or the waybill which should have specific description of the
items to be delivered.
The waybill, which is the final confirmation of receipt of goods, may not be signed unless all the above
mentioned criteria have been fulfilled.
8.3 Storage of Goods
In terms of a physical layout, a warehouse showing the physical storage location of each group of
goods should be drawn in order to have a quick reference to the identify and location of different types
of goods and materials. First In – First Out mechanism may be used in order to reach to old items
sooner that the new ones. Thus, new arriving items should not be piles up on top of old ones, as this
would create a difficulty in retrieving the ones underneath.
Goods should be stored with a maximum possible space between them in order to allow comfortable
movement for storage or removal.
8.4 Stock Record and Control:
The method is carried out to control and register the movement of times in the warehouse, and is kept
by the storekeeper. The stock record is manually entered in a Stock RecordBook and kept up to
date by the storekeeper. Similarly, an identical record is kept in a computerized system updated by
the warehouse in charge. This is also a procedure to help for itemization, storage, order and
accountability.
Stock control is an essential system to check on all items store or held at the warehouse. It may be
carried out at the end of each month and or at the end of project. It may be carried out as often as
required as a measure against loss and negligence by staff, as well as to identify potential problems
at the early stage.
An inventory control will indicate that:

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• All records are correct, complete and up to date.
• To check and balance of the goods are accurate. This means that the incoming, outgoing
and stored goods should tally and balance out.
• The physical numbers of items equal the documented.
• To check for damaged goods.
• To check for loss goods.
• Physically checking warehouse and update all stock cards with proper dates and expiry
period.
• To provide loss and damage report to operations or logistic department.
8.5 Monitoring
A warehouse monitoring procedure will be used in order to complement and assist the standard stock
recording and accounting record procedures. Monitoring may be used as a tool to prepare the
groundwork for periodical accountability of goods in the warehouse. Beyond that, it will assist in the
general control of the day operation of the warehouse.
The control of accountability and efficiency will be supported through this system by using a routine
check on goods and accompanying documents. This means that documents, such as waybills have
been individually filed according to their identity along with the justification and document of
accountability.
8.6 Procedure for Releasing Goods
The storekeeper is essentially responsible to carry out this procedure; however, other person
delegated with the responsibility may also perform this duty. The procedure will follow that the person
releasing the goods has to see Goods Requisition Form and check the availability of goods in the
store. The warehouse in charge will then prepare the goods release form will be signed by the person
receiving the goods. The original of this form will accompany the goods to be signed by the receiving
end, while the copy will be filed as a receipt against which the goods have been released.
The request be made by the department concerned but must be approved by the General Director
and bear the signature of the authorized personnel, whose name and signatures would have been
pre-issued and introduced to the warehouse keeper. This form is a justification for materials to leave
the warehouse. Any person receiving and signing as such on the release form will hold accountable
for those items.
8.7 Waybill
The destination warehouse representative may also use this document as a delivery and acceptance
letter document. This is possible because it contains the same information as to the precise details of
shipment contents, points of origin, and destination point. This form also indicates specific
accountability of goods at each point of the commodity’s journey.
8.8 Transportation of Goods
The logistic department is the sole responsible for the transportation and distribution of the goods to
the provincial offices and project site. To carry out this responsibility, the logistic department will also
be responsible for the follow up of effective and efficient transportation of goods.

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9. Vehicles Management
AADA furnishes the use of vehicles in order to create an easy mobility to staff that should make an
efficient contribution to their day to day implementation of program activities.
AADA tries its best effort to allocate vehicle for different sections/department up on the availability of
its status of available budget. This will make every department/sections enable to forward their daily
activities as smooth as it is required by the program.
All vehicles that assigned to the different programs, as well as their services and management will be
the sole responsibility of the administration/operation department. Administration/operation
department will manage purchase/rent of vehicles, spare parts and all other related services. Each
vehicle will have logbook in which users and drivers record the vehicle movements when the staff
getting in and getting down in the vehicle. This expects to enhance efficiency as well as accountability
of the vehicle’s performance and longevity.
None of the AADA staff can use the transport for their personal use except the top management staff,
but they have to inform the Operations Manager. In cases of certain occasions such as marriage, or
emergencies such as death of spouse, parent, and children, AADA will (upon availability of vehicles),
provides transportation, for the staff of central office.
9.1 Types of Vehicles in AADA
Two types of vehicles are available in AADA for the staff and program:
9.1.1 Personal vehicles of staff
Top management staff may use their own vehicles for their daily transportation to office, attending
meetings, or for any other official business. Instead, AADA will provide fuel and all other kinds of
lubricates to their vehicles.
9.1.2 Rented Vehicles
AADA will rent the vehicles for the project sites and for the central office based on following terms and
conditions.
• The owner of the vehicle will ensure that all the necessary documents of the vehicle are
valid.
• The rented vehicle will be at the service of the AADA seven days a week, 24 hours per
day, or as required by AADA.
• The rent of the vehicle will be paid on monthly basis at the end of the month.
• The owner is to provide the vehicle in full working condition, good tires including one
spare.
• The following items are required as standard equipments and accessories, and should be
on fully working condition while handing over the vehicle to AADA. These items are jack
and handle, fully function electrical system, very good brakes, proper seat and working
seat belts, loud horn, spare tire, working wind shelf wipers, all mirrors, and emergency
tool kit.
• At least one week in advance written notice from AADA and two week- notice from the
owner of the vehicle is required at the time of termination of thecontract between AADA
and vehicle’s owner..

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• AADA reserves the right to terminate the contract due to misbehavior by the owner,
funding constraints, or any other uncertain circumstances.
9.2 Technical and Safety Rules for AADA Drivers
9.2.1 Body Checking of the Vehicles
• Inspect air pressure of tires.
• Check tightness of axle, bolts and nuts.
• Check that there is nothing big underneath the vehicle that is likely to hit the vital parts of the
vehicles.
• Check the leakage of oil and water.
• Check tie rod, and see if front and rear lights as well as signals are working proper.
9.2.2 Mechanical check:
• Check the level of oil.
• Check radiator water level.
• Check brake and clutch fluid, as well as power steering fluid level.
• Check battery electrolyte level, terminal corrosion and tightness.
• Check v-belt tension and damage.
9.2.3 Vehicle inspection
• Make sure that the inside and outside rearview mirrors is positioned to allow comfortable
vision of cars from behind and the sides.
• Start the engine and leave it on idle for a while to warm up the engine.
• Check the gauge, windshield wiper, and emergency indicators for proper function.
9.2.4 Driving conduct and safety
• Follow strict traffic regulations.
• Take traffic signs seriously, as a measure of prevention for loss of life and property.
• Observe the maximum speed (Not over 80).
• Avoid conversation while driving; this could be a cause for loss of concentration.
• Avoid smoking , drinking, or eating while driving.
• Avoid giving lift to strangers, avoid loading unidentified cargo.
9.3 Tool kit
Any vehicle rented with AADA should have the following

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• Spare tire
• Jug
• Different types of screw drivers
• Bolts opener (handle)
• Brake fluid, engine oil
• Extra filters
• Fuel container for long trips
• Sleeping bag if required for long trips
• Tube
• Adhesive glue
Accountability
After approval of President/CEO, Director General and Senior Program Manager and Provincial
Managers are accountable for safeguarding employees and assets under their area of responsibility
and for implementing this policy and procedure.