Section 4 Appendix A
CALLDOWN CONTRACT
Framework Agreement with:
The Crown Agents for Overseas Governments and
Administrations
Framework Agreement for:
Generalist Procurement Agents
Framework Agreement Purchase Order Number:
4447
Contract For:
Procurement Agent and Capacity Development in
Partner Government Services for Bangladesh
Contract Purchase Order Number:
6127
I refer to the following:
1.
The above mentioned Agreement dated 1 April 2009
and I confirm that DFID requires you to provide the Services (Annex A), under the terms and conditions of the
Agreement which shall apply to this Calldown Contract as if expressly incorporated herein.
1.
Commencement and Duration of the Services
1.1
The Supplier shall start the Services no later than 01 April 2013 (“the Start Date”) and shall be completed
by 31 March 2014 (“the End Date”) unless the Calldown Contract is terminated earlier in accordance
with the terms and conditions of the Agreement.
2.
Recipient
2.1
DFID requires the Supplier to provide the Services to DFID (“the Recipient”).
3.
DFID Officials
3.1
The Project Officer is:
3.2
The Contract Officer is:
4.
Reports
4.1
The Supplier shall submit project reports in accordance with the Terms of Reference/Scope of Work at
Annex A.
5.
Calldown Contract Signature
5.1
If the original Form of Calldown Contract is not returned to the Contract Officer (as identified at clause 4
above) duly completed, signed and dated on behalf of the Supplier within 5 working days of the date of
signature on behalf of DFID, DFID will be entitled, at its sole discretion, to declare this Calldown Contract
void.
1
For and on behalf of
The Secretary of State for
International Development
Name:
Position:
Contract Officer
Signature:
Date:
For and on behalf of
Crown Agents for Overseas Governments
and Administrations
St Nicholas House
St Nicholas Road
Sutton
SM1 1EL
13 May 2013
Name:
Position:
Signature:
Date:
2
Terms of Reference
Procurement Agent for Bangladesh
1.
Objectives and Requirements
1.1
DFID and the Procurement Agent have signed a Framework Agreement which sets out the
basis and conditions on which the Agent will undertake procurement of goods and
associated services when funded by DFID. These ToRs and the accompanying standalone
Call Down contract set out the scope and terms of conditions on which the Agent shall
provide in-country procurement services solely for Bangladesh.
1.2
The objective is to work as a key business partner in the strategic and operational
procurement of goods and equipment. All service provision must meet the Client and DFID’s
requirements, achieve and demonstrate value for money, transparency, stand up to both
internal and external scrutiny, and where applicable adherence to EU Public Procurement
Directives, DFID procurement procedures and associated legislative requirements.
1.3
All procurement for DFID Technical Cooperation programmes valued at more than the EU
threshold (current at £113,057), is subject to the full rigour of the legislation and requires
publication of the requirements in the Official Journal of the European Union (OJEU).
2. Recipient
2.1
The services will be provided to the Department for International Development (DFID) for its
use directly or through its partner organisations.
3
Business Model
3.1
Operational Units (Business Model illustration on page 2)
Operational units managed by the Agent will operate in-country, with the potential support of
UK facilities. The Agent appointed to each Operational Unit will be responsible for the full
Scope of Services as in paragraph 4. Activities will include; challenging/fulfilling DFID
requirements, support in developing specifications/terms of reference, best practice
compliance (including OJEU), developing existing suppliers and suggesting alternative
local/regional sourcing options, and ensuring effective supplier management.
3.2
Collaborative Units (Business Model illustration below)
The Collaborative Unit will be managed by DFID Procurement Group in the UK. Activities
will include collaboration across units, consolidation of management information, key supplier
management, spend analysis, lessons learned and sharing information
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Roles & Responsibilities
•Mgt of tender process to identify suitable
Pr
G
service provider(s)
•Lead implementation / change Mgt
Collaboration Unit
•Collaboration across units
•Category Management strategy
•Consolidated Management
PrG
Information
process
•Co-ordinate Global Key Supplier
•On-going contract / relationship
Collaboration Unit
management
(Strategic overview & central Mgt)
Management
•Spend Analysis / Reporting
•Lessons Learned / Sharing Info
Operational Unit
Operational Unit
Operational Unit
(Africa)
(Asia)
UK & Others
Regional
Support
In-plant
Facility
Regional
Support
In-plant
Facility
Regional
Support
In-plant
Facility
Operational Regional Unit
Operational In-country Facility
•Challenging / Fulfilling DFID requirements
•Support in developing specs & Terms of Reference
•Challenging / Fulfilling DFID requirements
•Support in developing specs & Terms of
Reference
Reference
•Best Practise compliance (including OJEU)
•Developing local sourcing options
•Contract & Supplier Management
•Best Practise compliance (including OJEU)
•Developing local sourcing options
•Contract & Supplier Management
•Support desk located within Country Office or
city providing dedicated purchasing support to
higher spend Office
3.3
The operational regional units, and the country allocation are included in the table below;
Lot
Asia
Countries
Bangladesh
A permanent full-time experienced in-country representation is required for the duration of the Call
Down contract.
4
Scope of Services
4.1
The Agent will provide the full range of services associated with the procurement of goods
and equipment (and where necessary capacity building services) in their allocated country.
4.2
The Agent will have a presence within the defined country. In which ever means they intend
to support procurement activities for that country, the Agent must clearly demonstrate how
their interaction with the Client/DFID would work and how any proposed transition can be
smoothly handled and embedded.
4.3
There will be no further need to compete for goods requirements except where Procurement
Group deem it expressly necessary to determine exceptional technical competence or where
the value of the order is at such an exceptionally high value that it is considered prudent to
do so.
4
4.4
At the outset of each relevant project, the DFID programme manager will arrange for the
issue of a call down contract from the overarching call down arrangement.
4.5
The services should also be accessible to other UK Government Departments and likeminded Donors with the Agent responsible for the following activities and outputs.
4.5.1
Establishing a good business relationship with DFID country office and DFID related partners
within their allocated country and raising awareness of the role of the Agent;
4.5.2
Effective and efficient communication with DFID country office and DFID related partners;
4.5.3
Provide timely advice, options and solutions, and link to the central Collaboration Unit;
4.5.4
Work to maximise potential collaborative opportunities with DFID’s partners and demonstrate
Value for Money to programmes for key products. At the outset of each financial year agree
with PRG a target efficiency savings figure that must be achieved;
4.5.5
Provide upon request a fast track service for one-off critical items of equipment direct to the
project site or as otherwise advised by DFID;
4.5.6
Draw up or help draw up, in case of a DFID programme managed by a DFID related partner,
procurement plans at the outset of each project, setting out clear roles and responsibilities,
communication channels and performance indicators. As a minimum this could be a Gantt
chart setting out critical milestones but larger and more complex purchases will require a
detailed and comprehensive project plan. In case of goods being procured for a DFID
programme managed by a Service Provider, time scales must be acceptable to the service
provider and enable the service provider to meet its obligations to DFID;
4.5.7
Assist the Client/DFID in improving initial specifications to the point where they are clear,
complete and suitable, for the purposes of seeking competitive bids and to a point where
suppliers can be expected to make sound technical and commercial judgements. Where this
activity requires specialist sectorial input outside the scope of services defined in this
document, then only with the express agreement of DFID/Client may additional proportionate
costs be agreed and incurred;
4.5.8
Where considered necessary, visiting project sites to advise on business solutions, budget
allocations, planning, timelines, suitability of specifications and how best to demonstrate and
achieve value for money for programme expenditure;
4.5.9
Ensuring where possible, that specifications are non-prescriptive and are not seen to favour
one supplier over another and that all tendering decisions, processes and procedures are
documented, justified and will stand up to external scrutiny and a clear audit trail maintained;
4.5.10 Comply with the mandatory legislative requirements for all procurement covered by the EU
Public Procurement Regulations – any deviation from standard procedures must seek the
prior approval of Procurement Group – Collaboration Unit. The Agent will be expected to
provide reasons/justifications and supporting recommendations for such actions;
4.5.11 For procurement not subject to the full rigour of the above legislation, the Agent will be
expected to identify at least three sources of supply, and in the exceptional case of singlesourcing document a sound defendable case for that course of action;
4.5.12 Where single-sourcing is used (including the use of catalogues or frameworks); negotiate the
best value for money from the supplier taking account of likely future orders and recording
5
where appropriate that the order is sufficiently low that competition would serve no economic
or added-value purpose;
4.5.13 Invite tenders or quotes as appropriate and in accordance with DFID procurement
procedures;
4.5.14 Undertake and record technical and commercial evaluation of tenders and quotations on the
basis of expected lifetime costs and not solely on price. Lifetime cost should take account of
relevant factors such as performance of the goods/equipment, warranties, after sales
service, and the availability of spares at the place where the goods/equipment are to be used
over their likely lifetime. Where in the opinion of the Agent a DFID/Client preference does not
represent value for money then the matter should be referred to Procurement Group –
Collaboration Unit;
4.5.15 Undertake and record post tender negotiations with suppliers to clarify technical/commercial
aspects of bids;
4.5.16 Make recommendations on proposed purchases to the Client/DFID, clearly explaining the
rationale behind each recommendation and the link in between Value for Money and delivery
Lead-Times;
4.5.17 Develop and/or make greater use of local suppliers;
4.5.18 Ensure that suppliers chosen to meet DFID/Client requirements have sound performance
track records and that necessary steps are taken to protect any associated risk to
DFID/Client funds;
4.5.19 Ensure that the commercial interests of the Client/DFID are protected through appropriate
contracting including, obtaining relevant warranties and after sales service guarantees;
4.5.20 Place orders that conform to agreed specifications;
4.5.21 Arrange customs clearance and delivery to the project site where and when appropriate;
4.5.22 Advise the Client/DFID of the need for, and cost of technical pre-shipment inspection of
goods/equipment, where in the opinion of the Agent this is necessary and mitigates
associated risk particularly for higher value consignments;
4.5.23 Where agreed with the Client/DFID arrange technical pre-shipment inspection of the quality
and quantity of goods/equipment;
4.5.24 Arrange where agreed and necessary a brief pre-shipment inspection of the quantity and
integrity of goods/equipment;
4.5.25 Arrange packing, consolidation, appropriate insurance and transportation
goods/equipment to the destination as defined and agreed by the Client/DFID;
of
4.5.26 Ensure that all shipping/airfreight details and appropriate despatch documentation reaches
the Client/DFID, or their nominated agent, or the end-user, in good time for the clearance of
goods/equipment without incurring demurrage charges;
4.5.27 Advise DFID of any relevant legislative clearance requirement at the time of placing the
order;
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4.5.28 Liaise with pre-shipment inspection agents and clearing agents to ensure goods/equipment
reach the end user to meet project deadlines;
4.5.29 There will be no additional charge for local pre-delivery inspection undertaken in country by
the Procurement Agent’s resident inspector, and this cost will be absorbed within the
procurement fees;
4.5.30 Advise and agree with the Client/DFID on International Commercial Terms and ensure that
Client/DFID understands at what point ownership transfers and that the Client/DFID must
meet payment obligations to suppliers;
4.5.31 Manage the supply base including quality control and assurance of locally and internationally
sourced products;
4.5.32 Use all reasonable endeavours, including liquidated damages, to ensure that all suppliers
comply with their contractual obligations and provide the Client/DFID with all reasonable
assistance in the resolution of problems arising during the lifetime of contracts placed,
including resolution of disputes arising during the warranty period;
4.5.33 Effect or arrange timely payment to suppliers of all goods and services;
4.5.34 Where required, the Agent will represent DFID at donor group meetings, or attend with DFID
staff.
4.6
Aligned to DFID’s Commercial Strategy, and our Categorisation of Expenditure and Strategic
Sourcing programme, appointed Agents will be required to put in place proactive and
strategic business solutions to meet the needs of DFID’s aid programme. This will
necessitate the setting up of Framework Arrangements for the supply of commonly used or
business critical supplies and commodities. DFID is committed to Corporate and Social
Responsibility issues and expects standards to be maintained in all business activity and to
be promoted and adhered to in the supply chain. That environmental issues are key, and that
local supply markets (where possible) are developed for the good of local communities. DFID
will continue to assist the appointed Agents in identifying product categories which can useful
benefit from these arrangements.
4.7
Access to central government frameworks
As agents of DFID the appointed Agents will have access to a panel of pre-tendered
frameworks and catalogues set up by DFID and Central Government. These frameworks
have been subject to the OJEU competition and provide quick access to a wide range of
goods and services on agreed terms and conditions and at agreed prices.
4.8
Electronic Procurement
Appointed Agents will not have direct access to DFID Corporate Information Management
systems and tools – it will be for the Agent to demonstrate that their internal systems and
tools for the management of procurement meet the service requirements laid out in this
document and to outline where current practice can be streamlined and improved.
DFID reserves the right to audit the Procurement Agent’s internal systems if the need arises.
4.9
Collaborative Opportunities
Where such agreements are requested in countries where like-minded donors are also
operating DFID may also consider some degree of collaboration with the donors in the use of
7
the services. Agents are expected to look for opportunities to increase value where possible
by aggregating requirements
5.
Reporting
5.1
The Agent will supply written operational weekly electronic reports for their allocated country
on Work In Progress activity, including expecting delivery dates versus requested delivery
dates – highlighting orders in backlog and an action plan to meet the requested delivery
dates if need be.
5.2
The Agent will supply written monthly and quarterly electronic reports for their allocated
country on all procurement activity including progress on the Service Level Agreement (SLA)
to a nominated Procurement Manager in the Collaboration Unit in East Kilbride, copied to the
Commercial Adviser and the Delegated Procurement Officer in country, by the 10th day of the
following month (see SLA for required content)
6.
Monitoring
6.1
The Agent’s performance will be monitored regularly with file review at the Agent’s HQ
conducted annually by DFID. The Agents will co-operate fully with such monitoring and will
provide the monitoring team with all requested documentation and information in good time
for any monitoring visit. This may include retrieval of in-country documents.
6.2
DFID may conduct in country monitoring of significant programmes of work as required.
Where an Operating Unit has not had a significant programme of work a general monitoring
visit as above may suffice.
7.
Communications
7.1
The Procurement Agent will commit to answer any written request made by DFID or any
DFID partner within 1 (one) working day of the receipt of the request.
7.2
The Procurement Agent shall initiate and organise monthly meetings with (i) relevant staff of
DFID country office, and (ii) the management of each project. A schedule of these meetings
and a distribution list for the minutes will be agreed. They must include DFID PrG
Collaboration Unit, the DFID Delegated Procurement Officer of each country and the DFID
Commercial Adviser of each country.
7.3
The Procurement Agent shall create and distribute minutes within three (3) working days of
the meeting identifying agreed action points and those responsible for taking actions forward.
8.
Disagreements and Disputes
8.1
DFID, the Procurement Agent and any DFID partner shall exert their best efforts, in good
faith, to consult together to resolve all issues that may arise in an equitable and mutually
satisfactory manner. An issue that cannot be resolved in this way shall be treated as an
escalation under 8.2 below.
8.2
In the event of an Escalation arising under or relating to this overarching Contract and/or any
call down contract issued under the overarching contract, its formation, or the surrounding
facts and circumstances, either Party (the “Initiating Party”) may submit to the other Party
(the “Receiving Party”) a written statement, specifically designated as a Notice of Escalation,
briefly describing the nature of the problem, the position of the Initiating Party regarding the
8
problem, a narrative of the material facts and arguments in favour of the Initiating Party’s
position, and a statement of the actions or other relief requested.
8.3
Within ten (10) days after receipt of a Notice of Escalation, the Receiving Party shall issue a
written statement with supporting findings and reasons, and promptly communicate it to the
Initiating Party. This procedure will continue until an amicable solution is found.
9.
Timeframe
9.1
The Contract will commence on 01 April 2013 and run to 31 March 2014.
10.
DFID Coordination Point
10.1
The Coordination point in Abercrombie House will be the first point of contact for any issues
regarding this contract
11.
Charges
11.1
The proposed method must be simple to understand and be able to be put in place
immediately. The proposed method could use the current percentage charging scheme
methodology, or could use a new charging scheme methodology. The proposal must clearly
demonstrate how this approach will drive value for money and how this will be demonstrated
throughout the life of the contract. Calculation details and breakdown of costs should be
clearly explained, including customs clearance, quality assurance and pre-shipment
inspection costs.
11.2
DFID reserves the right to propose alternative methods of charging if the Agent’s proposal is
not, in the opinion of DFID, workable.
11.3
The charges agreed will be the standard for the duration of the contract term and cover
procurement of goods/equipment as defined.
11.4
Rates and percentage supplied should be guaranteed for the duration of the contract.
12.
Taxation
12.1
Even if DFID has signed an MOU with the Government of Bangladesh, this MOU does not
cover projects goods and equipment. all relevant Bangladesh taxation regulations, for
example VAT, or other taxation, or any import duty, levied on the goods provided by
suppliers or the procurement Agent under this contract will apply, and will be charged to
each individual project (unless otherwise stated)
13.
Liquidated damages for Late Deliveries
13.1
Except with respect to periods in which force majeure legitimately applies, DFID may assess
liquidated damages in the event that the Procurement Agent fails to deliver goods in
compliance with the agreed deadlines specified in each respective Call Down contract.
13.2
The amount of liquidated damages for each shipment shall be set at one (1) per cent of the
total value of the affected shipment per week, including, but not limited to amended dates for
replacement lots, or pro rata thereof, not to exceed a total of five (5) per cent of the Total
Price.
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14.
Force Majeure
14.1
If the Procurement Agent fails to perform any of its obligations under this Contract due to a
force majeure event, the Procurement Agent shall, to such extent, not be liable to DFID for
any excess costs directly arising from such failure to perform, and the delivery shall be
deemed extended by the duration of that event, provided that the Procurement Agent notifies
DFID in writing, within ten (10) days after the beginning of the force majeure event, of the
failure(s) and the cause(s) thereof. The term “force majeure event” is defined as a cause,
not in existence on the Effective Date of the Contract that is beyond the control and without
the fault or negligence of the Procurement Agent, of a type whose occurrence was not
reasonably foreseeable at the time the Contract was executed. Examples of force majeure
events include, without limitation, the sovereign acts of governments, fires, floods,
epidemics, revolutions, quarantine restrictions, freight embargoes, or prolonged unusually
severe weather conditions. A delay by an approved assignee or subcontractor shall not
constitute a force majeure event, unless the cause of the delay, if it had occurred directly to
the Procurement Agent, would have qualified as such an event.
14.2
Notwithstanding the occurrence of a force majeure event, the Procurement Agent, unless
otherwise directed by DFID in writing, shall continue to perform its obligations under this
Contract to the maximum extent practicable. In addition, the Procurement Agent shall seek,
at no additional cost, all reasonable alternative means of performance not precluded by the
force majeure event.
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Service Level Agreements
Any procurement which is subject to the EU Directives will be subject to the timescales set out under the relevant EU procedure. The procurement agent will
place a Prior Indicative Notice in OJEU wherever possible in order to reduce the timescales.
SERVICE LEVEL AGREEMENTS TIMESCALES PER PROCEDURE TYPE (working days)
Restricted*
Restricted
Accelerated*
OJEU Procedure
Open
no PIN*
Open
with PIN*
Mini-competition
CQ
CT-R
CT-RA
CT-O no Pin
CT-O Pin
CT - M C
0
0
0
0
0
0
0
0
0
1
1
1
1
0
from the date of contract notice
0
0
30
15
40
24
10
Evaluation Period
0
0
5
5
0
0
0
Invitation to Tender (ITT) sent
0
0
5
5
0
0
5
0
5
10
5
35
10
0
0
20
Evaluation of Technical Bids
5
5
15
15
5
TAT A - from agreement of specs to Evaluation report
5
15
81
41
56
40
40
Simple
purchasing
Competitive
quotations
SP
Agreement of Specifications
TED Advertising Date
TAT steps
Naming convention in DFID reporting
1
Time for receipt of tenders
Time for receipt of tenders
from the date of ITT
2
93.15
47.15
amber-green between 5.75
green
and
6.25
17.25 and
18.75 93.16
and 101.25 47.15
and
51.25
64.41
and
70.00
46.00
and
50.00
46.00
and
50.00
amber-red between 6.25
and
6.75
18.75 and
20.25 101.26 and 116.44 51.25
and
58.94
70.01
and
80.50
50.00
and
57.50
50.00
and
57.50
red
3
below
above
5.75
17.25
6.75
20.25
109.35
64.40
55.35
46.00
75.60
46.00
54.00
54.00
Receipt of approval from DFID/Service Provider
Presentation (if required)
N/A
N/A
10
10
10
10
10
0
5
0
5
10
10
10
10
10
10
10
10
10
Alcatel period
(after deciding on the preferred bidder)
4
Contract Finalisation
TAT B - from receipt of approval to contract finalisation
green
5
below
10
5
5.75
20
5.75
20
23.00
20
23.00
20
23.00
20
23.00
23.00
amber-green between 5.75
and
6.25
5.75
and
6.25
23.00
and
25.00
23.00
and
25.00
23.00
and
25.00
23.00
and
25.00
23.00
and
25.00
amber-red between 6.25
and
6.75
6.25
and
6.75
25.00
and
28.75
25.00
and
28.75
25.00
and
28.75
25.00
and
28.75
25.00
and
28.75
red
above
6.75
green
below
2.30
6.75
TAT C - on-time delivery
2
27.00
2
27.00
2
2.30
27.00
2
2.30
27.00
27.00
2
2.30
2
2.30
2
2.30
2.30
amber-green between 2.30
and
2.50
2.30
and
2.50
2.30
and
2.50
2.30
and
2.50
2.30
and
2.50
2.30
and
2.50
2.30
and
2.50
amber-red between 2.50
and
2.70
2.50
and
2.70
2.50
and
2.88
2.50
and
2.88
2.50
and
2.88
2.50
and
2.88
2.50
and
2.88
red
above
2.70
2.70
2.70
2.70
2.70
2.70
2.70
* Documents electronically available (Use of a portal)
Green 85% or more
Amber Green 75% - 84.99%
Amber Red 65.01% - 74.99%
Red Below 65%
11
KEY PERFORMANCE INDICATORS
1.
Statistics and Reporting
1.1
The Agents shall be responsible for maintaining statistics on each Operating Unit under their
control and will be expected to report monthly by country in excel format including the
following data;
(a) Details in Excel format of all orders placed including Purchase Order number, Funding
type, description of goods, and category of expenditure, supplier name, supplier proposal, unit
prices, supplier contract cost, realised savings and freight charges
(b) Number of complaints received in respect of incorrect processes, faulty or incomplete
equipment received, and documenting corrective action taken
(c) Details including cost, quantity, and source of origin of any timber or timber products
purchased
(d) Total number and value of orders place on non-UK suppliers
(e) Total number of orders placed with UK-based small and medium enterprise
organisations/firms – defined as companies employing 200 or fewer employees
(f) Total number and value of orders placed with suppliers in the country from which the order
was placed
(g) The Agent must report performance against the Service Levels agreed and provide
statistics for the previous month on the tenth day of the subsequent month
(h) All reports to be submitted to;
1.2
Reports should not be restricted to statistical data and must include narrative on topical
issues/trends such as,
(a) Identifying common procurement problems facing country programmes within their
Operating Unit,
(b) Market movements and which markets appear to be moving towards or against DFID
interests,
(c) How reforms in logistics or local taxes in the respective Operating unit may affect DFID,
(d) How the Agent is delivering tangible results, sustainable quality, and realised savings for
DFID programme expenditure,
(e) Details of vendor appraisals, inspections and any other quality assurance activities
undertaken locally during the reporting period
1
Background Information
1.
Department for International Development Structure
1.1
The UK government believes it is in all our interests to help poor people build a better life for
themselves. So in 1997 it created a separate government department - the Department for
International Development (DFID) - to meet the many challenges of tackling world poverty. It
is DFID’s job to make sure every pound of British aid works its hardest to help the world’s
poor.
2.
Our structure and staff
2.1
DFID is the part of the UK government that manages Britain's aid to poor countries and works
to get rid of extreme poverty. We are led by a cabinet minister, one of the senior ministers in
the government. This in itself is a sign of how determined the UK Government is to tackling
poverty around the world.
2.2
We work in 150 countries and have 2,600 staff, half of whom work abroad. We have
headquarters in London and East Kilbride, near Glasgow, and 64 offices overseas.
2.3
Our work is guided by two sets of targets. First, we are working to reach the Millennium
Development Goals (MDGs), international targets agreed by the United Nations (UN) to halve
world poverty by 2015. Second, the government’s Public Service Agreement (PSA) sets
objectives and targets by which we measure our progress towards this aim.
2.4
We work with governments of developing countries, charities, businesses and international
bodies, including the World Bank, UN agencies and the European Commission. All our
partners share our ambition to achieve the Millennium Development Goals.
3.
What is the legal basis for our work?
3.1
The legal basis for our work is the International Development Act 2002. The act allows the
Secretary of State (SoS) for International Development (the cabinet minister who heads this
department) to provide aid for sustainable development and welfare. However, the SoS is
committed to ensuring that the UK aid will contribute to reducing poverty. Under the act, UK
aid cannot be tied to British goods and services (and since 1997, governments receiving UK
aid have been free to use suppliers who compete on price, quality and service).
3.2
We also work within the International Development Act (Reporting and Transparency) 2006.
This act requires the SoS to report every year on how much we spent on aid, how effective it
was in reducing poverty and how much we gave to poor countries.
3.3
The National Audit Office (NAO) keeps a watch on public spending for parliament. It audits
the accounts of all government departments and agencies, including DFID.
3.4
The NAO reports to the Parliament and the Public Accounts Committee, which analyses the
value for money of DFID’s work. In parliament the International Development Committee
(IDC) scrutinises our annual report and also holds inquiries into particular areas of our work.
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3.5
Our values
3.6
Our values set out how we mean to live up to our strategic aim of halving world poverty by
2015.
Our values include:
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ambition and determination to eliminate poverty
diversity and the need to balance work and private life
ability to work effectively with others
desire to listen, learn and be creative
Professionalism and knowledge.
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