WORKING WITH DG ECHO AS AN NGO PARTNER | FPA 2014 - 2020
PRINCIPLE OF DUE DILIGENCE
Due diligence means carrying out duties professionally, carefully and thoroughly, going well beyond the minimum effort.
In order to be diligent in procurement matters, the partners should be aware of the importance of good procurement planning and should have in place systems of identifying risks and managing them.
A good procurement planning is essential to ensure a timely delivery and satisfactory quality of the supplies, works or services. The planning starts before the launching of the procurement procedure. For major procurement, it should be done at the time of the submission of the proposal to ensure that the procurement will contribute effectively to the achievements of the results.
The Humanitarian Organisation shall follow up on the timely delivery and satisfactory quality of the received supplies, works or services. In cases where the delivery is late, the quality is low, the partners will have to take measures to mitigate negative consequence and ensure sound financial management (for instance, the partners can apply a penalty to the providers, the partners can purchase new items locally while waiting for the delivery).
Furthermore, where the Humanitarian Organisation engages the services of a buying agent or other contractor to conduct procurement on its behalf, the Humanitarian Organisation shall maintain full responsibility for the regularity of these procedures, and shall exercise due diligence to ensure full compliance with the rules and procedures established herein.