The Procurement Section, comprising of the Technical Support Unit and the Procurement Unit, is responsible for the
provision to Technical Co-operation projects of equipment, supplies and sub-contracts services, in accordance with approved specifications and purchasing procedures. The Section’s work is focused on:
- Investigation of sources of supply
- Obtaining price quotations
- Negotiations with suppliers on price and delivery;
- Preparation of contracts;
- Arranging of documentation, insurance and shipping, monitoring of the installation and commissioning of procured equipment
Role and Functions of the Procurement Section
The overall objective of ICAO’s Procurement activities is to ensure that procurement of equipment, supplies and services are effected in the best interests of the Organization and/or Assisted States, having due regard to the availability of funds, economy and national, regional or international competition. Procurement activities support the projects initiated and administered by the Technical Co-operation program in assisting Member States to implement ICAO Standards and Recommended Practices (SARPS). All Procurement Activities are regulated by the ICAO Procurement Code, based on the UNDP Financial and procurement regulations.
Procurement under the Civil Aviation Purchasing Service (CAPS)
The Civil Aviation Purchasing Service (CAPS) was established by ICAO in 1974 to assist countries in the procurement of civil aviation equipment and services. The assistance is provided in both the administrative aspects of a procurement and, when necessary, the technical aspects. Any Government/Administration/Government Agency/Private Entity may become a Member of CAPS by completing the registration form and the Memorandum of Understanding. CAPS Is essentially a type of Trust Fund arrangement. The method of assessing administrative charges, however, departs from the traditional, cross-the-board, flat rate percentage, utilizing instead a progressively reducing scale of charges, according to the value of the purchase involved. A feature of CAPS is the flexibility to offer a CAPS Member the option of either complete procurement services (from specification of the equipment through to its commissioning) or participation in specific stages of the procurement process, for example:
- Preparation of specifications;
- Invitation of tenders, evaluation of tenders and preparation of recommendations;
- Negotiations of the award of contract;
- Supervision of contract awarded by ICAO or awarded directly by a CAPS Member
The cost for each stage is developed and quoted to the CAPS Member once the tasks required of ICAO are clearly defined. The nature of purchases already undertaken under CAPS is varied and has included the procurement of flight and ATC radar simulation equipment, aircraft, navigation aids, air traffic control radar equipment and complex, large-scale activities associated with complete airport development. In spite of the challenging problems which inevitably arise under major contracts, practically all work undertaken by ICAO has been completed either on or ahead of schedule.
Benefits of Using ICAO Procurement Services
- Ensures compliance with ICAO requirements, Standards and Recommended Practices. All the equipment is procured in accordance with technical specifications that are prepared in strict compliance with ICAO norms and regulations;
- Provides updated information on the most modern, applicable technology. Ensures availability of extensive information on the technological advances in the civil aviation industry which provides for the best technical solutions worldwide;
- Usage of an internal database of registered/pre-qualified international suppliers of major aeronautical equipment and aviation related services as a sourcing tool in the preparation of bidders lists to be used during competitive tendering exercises;
- Affords a qualified assessment of the user’s needs in regards to the technological modernization to be carried out. Audits, studies and experts’ evaluations and participation in national and regional technical cooperation projects enable an in-depth knowledge of the States’ technological improvement needs;
- Allows for the best market prices provided by manufacturers and other suppliers, with whom ICAO maintains negotiations regarding purchases worldwide in order to pass on the economy of scale in prices to befit States. An extensive database is available, which contains information on commercial trends and offers from the civil aviation industry, allowing ICAO to manage comparative information regarding prices and guaranteeing accessibility to the most competitive offers in regards to quality and price;
- Grants the best conditions in the scope and application of warranties and post-sale services of the equipment;
- Offers instant benefits from ICAO’s good experience in customs clearance and extended worldwide expertise in feasibility studies, preparation of technical specifications, motivation of suppliers, analysis and evaluation of offers, preparation of contracts, contract management, financial management and communication and coordination with national authorities and specialists, with the direct participation of experts from the national administration;
- Allows for the possibility of carrying out the management and supervision of turnkey contracts, freeing the national administration of this burden;
- Guarantees technical support during the complete procurement process, assisting in defining a project’s requirements; evaluation of possible suppliers, budget estimates and financial analysis, preparation of the technical specifications for equipment/services required, invitation to international tender, evaluating and rating tenders/offers received, advice in the technical negotiation, support commissioning in factory and on site, technical supervision of the putting into operation of the equipment and systems and compliance with the established warranties;
- Encourages some companies to waive financing conditions or commercial and financial consequences imposed due to a country’s risk classification;
- Allows for profiting from ICAO’s great experience in carrying out large-scale equipment procurement projects worldwide.
Roster of Registered Suppliers
The objective of procurement activities within ICAO is the timely acquisition of goods and services while addressing the following:
- Compliance with ICAO requirements, Standards and Recommended Practices (SARPS) and the ICAO Procurement Code;
- Fairness, integrity and transparency, through competition;
- Economy and effectiveness;
- Best value for money.
To assist with the successful implementation of the above objective, the Procurement Section maintains a roster of international registered suppliers of major aeronautical equipment and aviation related services, that acts as an important procurement tool, as well as to shortlist suppliers for competitive bidding. The supplier database is intended as a sourcing tool to assist in internal procurement requirements and to ensure that a list of potential suppliers is readily available for frequently procured goods and services. ICAO does not endorse or recommend any specific supplier or the equipment/services they offer.
Following receipt of a brief description of the major aeronautical equipment and/or aviation related services they provide, suppliers whose equipment and/or services fall within ICAO’s usual scope of activity will be requested to formally apply for registration.
Essential components of the application for registration process are, at a minimum, submission of the information listed below. Complete submission requirements will be defined at the time of applying for registration.
- A fully completed Supplier Profile – Goods or Supplier Profile – Services;
- Supporting technical documentation describing the equipment manufactured by the supplier or describing the aviation related services offered by the company;
- For consulting companies, the curriculum vitae of the experts’ whose services are offered;
- Company financial information;
- List of relevant international experiences;
- Registration application fee.
Applications for registration are evaluated by the Procurement Section to establish the eligibility for inclusion in the roster. To be eligible for inclusion in the ICAO roster of suppliers, firms must satisfy certain objectively justifiable minimum requirements, which include the necessary professional and technical competence (for the company and for the equipment/services offered) and financial strength.
Following a positive evaluation and receipt of a confirmation of registration with ICAO, a supplier will been given direct access to their company profile as it appears in the ICAO Data Base of Suppliers through the supplier web portal http://cfapp.icao.int/procurement/
. Short-listed suppliers will receive an automatic notification of inclusion on relevant tenders, to their designated primary contact e-mail address directly from the ICAO Supplier web portal.
Acceptance and inclusion of a firm on the ICAO roster of suppliers does not guarantee that a supplier will be invited to tender or solicited to participate in bidding procedures for each relevant procurement activity.
Examples of major aeronautical equipment and aviation related services regularly procured through the Procurement Section:
- Aircraft spares, components and engines
- Flight simulators
- Radar equipment (primary and secondary)
- Area control centres
- Air Traffic control and tower simulators
- Flight inspection systems
- Navigation aids (ILS, VOR, DME, NDB, GPS, TCAS)
- Airfield lighting equipment
- Meteorological systems and equipment
- Communication equipment (satellite communication, microwave link systems, HF, VHF, AFTN)
- Fire-fighting vehicles and equipment
- Refuelling vehicles
- Passenger boarding bridges
- Ground support equipment for airports (runway sweepers, de-icing machines)
- Buses, trucks and project vehicles
- Airport security equipment and systems (x-ray equipment, close circuit TVs)
- Airport feasibility studies
- Airport master plans
- Aircraft maintenance and overhaul