Humanitarian procurement is the process of obtaining goods, services, and works needed to support people affected by conflict, disasters, displacement, disease outbreaks, and other emergencies. A well-managed humanitarian procurement process aims to obtain the right quality and quantity at the right time and price while maintaining transparency, competition, accountability, and compliance with applicable organizational and donor requirements.
Unlike ordinary commercial procurement, humanitarian procurement often operates under difficult conditions. Supply routes may be disrupted, markets may be volatile, suppliers may have limited capacity, and urgent needs may require rapid action. At the same time, humanitarian organizations must maintain appropriate controls and document their decisions.
The exact procurement procedure varies between organizations and can depend on the country, donor, procurement policy, financial thresholds, emergency conditions, and type of purchase. However, the following framework provides a practical overview of the major stages commonly found in humanitarian procurement.
What Is Humanitarian Procurement?
Humanitarian procurement is the structured process used by humanitarian organizations to source and purchase goods, services, and works required to implement relief and recovery activities.
Typical purchases may include:
- Food and relief supplies
- Medicines and medical supplies
- Shelter materials
- Water, sanitation and hygiene supplies
- Vehicles and spare parts
- Office and communication equipment
- Construction and rehabilitation services
- Transportation services
The objective is not simply to obtain the lowest price. A sound procurement decision considers factors such as quality, specifications, delivery time, supplier capability, total cost, risks, applicable rules, and value for money.
Because humanitarian organizations are accountable to affected populations, donors, regulators, and other stakeholders, procurement decisions should be transparent, properly authorized, and supported by appropriate documentation.
Humanitarian Procurement Process at a Glance
A typical humanitarian procurement cycle can be represented as:
Need identification → Purchase requisition → Specifications → Market research → Procurement method → Solicitation → Bid or proposal evaluation → Approval → Contract or purchase order → Delivery → Inspection → Payment → Supplier performance review
The exact sequence can vary. For example, emergency procurement may involve accelerated procedures, while framework agreements or existing contracts may reduce the need to conduct a full sourcing exercise for every purchase.
1. Identify the Need
The procurement process begins when a program, logistics, warehouse, administration, or other authorized department identifies a requirement.
The requesting department should establish what is actually needed, why it is needed, when it is required, and the quantity required.
For example, a humanitarian program may determine that it needs:
- 500 hygiene kits;
- 20 water tanks;
- 10 computers;
- vehicle maintenance services; or
- transportation for relief supplies.
A clear definition of the need helps prevent unnecessary purchases and reduces the risk of ordering unsuitable goods or services.
Before starting procurement, the organization may also need to confirm that the requirement is included in an approved budget or otherwise properly authorized.
2. Prepare the Purchase Requisition
Once the requirement has been identified, the requesting department normally submits a purchase requisition or another approved procurement request.
Depending on the organization's system, the requisition may include:
- Description of the requirement
- Quantity
- Required delivery date
- Budget or project information
- Suggested specifications
- Delivery location
- Funding information
- Supporting documents
- Required approvals
The requisition provides the procurement team with an authorized basis for beginning the sourcing process.
Procurement staff should not change the technical requirement simply to make sourcing easier. Where technical clarification is necessary, it should be coordinated with the requesting or technical department.
3. Develop Clear Specifications or Terms of Reference
Good specifications are essential to a fair procurement process.
For goods, specifications may describe:
- Technical characteristics
- Dimensions
- Materials
- Quality requirements
- Packaging
- Performance requirements
- Applicable standards
- Warranty requirements
- Delivery requirements
For services, the organization may prepare Terms of Reference (TOR) or a Statement of Work (SOW) describing:
- Scope of services
- Deliverables
- Required qualifications
- Time frame
- Performance requirements
- Reporting requirements
- Evaluation criteria
Specifications should describe the organization's actual need without unnecessarily restricting competition.
For example, instead of specifying a particular brand when a generic technical requirement would be sufficient, the procurement team should normally use objective and functional requirements, subject to the organization's applicable procurement rules.
4. Conduct Market Research
Market research helps the procurement team understand the available supply market before selecting an appropriate procurement approach.
Depending on the requirement and local context, market research may examine:
- Available suppliers
- Market prices
- Product availability
- Lead times
- Supplier capacity
- Local manufacturing or import options
- Transportation constraints
- Market risks
- Seasonal factors
- Currency considerations
- Previous supplier performance
Humanitarian market conditions can change rapidly. Conflict, border restrictions, fuel shortages, inflation, or sudden increases in demand can affect both prices and availability.
For this reason, market information should be sufficiently current for the procurement decision.
5. Select the Appropriate Procurement Method
The procurement method depends on the organization's applicable policy and may be influenced by factors such as:
- Estimated procurement value
- Nature and complexity of the requirement
- Market conditions
- Competition available
- Urgency
- Existing framework agreements
- Donor requirements
- Emergency provisions
- Country-specific requirements
Depending on the organization, procurement methods may include competitive requests for quotations, invitations to tender, requests for proposals, direct or limited sourcing under defined conditions, framework agreements, or other approved methods.
It is important not to assume that one procurement threshold or method applies to every humanitarian organization.
For example, an NGO may have different thresholds and approval requirements from another NGO operating in the same country.
Therefore, procurement officers should always refer to the applicable organizational procurement policy and donor requirements.
6. Identify and Invite Suitable Suppliers
Once the procurement method has been established, procurement staff identify potential suppliers that can reasonably meet the requirement.
Supplier selection may consider:
- Relevant experience
- Technical capacity
- Product availability
- Geographic coverage
- Delivery capability
- Financial capacity where relevant
- Previous performance
- Legal or registration requirements
- Ethical and compliance considerations
A supplier should not be selected merely because it is familiar to the organization.
Where competition is required, the organization should follow its applicable procedures for identifying and inviting qualified suppliers.
The objective is to create a fair opportunity for eligible suppliers while protecting the organization from unnecessary procurement risk.
7. Issue the Solicitation Documents
The procurement team then issues the appropriate solicitation document.
Depending on the procurement method, this could be a:
- Request for Quotation (RFQ)
- Invitation to Tender (ITT/ITB)
- Request for Proposal (RFP)
- Request for Information (RFI)
- Other approved solicitation document
The solicitation should provide suppliers with sufficient information to prepare responsive offers.
Important information may include:
- Specifications or TOR
- Quantities
- Delivery location
- Required delivery schedule
- Instructions to bidders
- Submission deadline
- Evaluation criteria
- Required documentation
- Terms and conditions
- Validity period
- Contact information
The organization should provide suppliers with consistent information so that offers can be compared fairly.
8. Receive and Safeguard Offers
Supplier quotations, bids, or proposals should be received according to the applicable procurement procedure.
Controls around submission and opening are important because they help protect:
- Confidentiality
- Competition
- Integrity
- Equal treatment
- Auditability
Depending on the procurement method, the organization may have formal bid-opening procedures involving designated staff or committees.
Procurement personnel should follow the organization's rules rather than creating informal procedures.
9. Evaluate Offers
Evaluation is one of the most important stages of the procurement process.
The evaluation method should be consistent with the solicitation documents and applicable procurement policy.
For straightforward purchases, evaluation may focus heavily on compliance, price, quality, and delivery.
For more complex services, the evaluation may consider:
- Technical approach
- Relevant experience
- Personnel qualifications
- Methodology
- Delivery schedule
- Financial proposal
- Quality
- Risk
- Other predefined criteria
A key principle is that suppliers should be evaluated against established criteria rather than against criteria created after the offers have been received.
Example
Suppose three suppliers submit offers for 500 hygiene kits:
| Supplier | Technical Compliance | Price | Delivery | Overall Assessment |
|---|---|---|---|---|
| Supplier A | Compliant | $10,000 | 10 days | Strong |
| Supplier B | Partially compliant | $8,900 | 14 days | Requires clarification |
| Supplier C | Compliant | $9,600 | 7 days | Strong |
The lowest price alone does not automatically determine the best procurement decision.
The organization must apply the evaluation method established by its policy and solicitation documents.
10. Conduct Due Diligence and Compliance Checks
Before awarding a contract or purchase order, the organization may need to complete appropriate supplier due diligence and compliance checks.
Depending on the organization and transaction, these may include:
- Supplier registration
- Legal documentation
- Conflict-of-interest checks
- Sanctions or restricted-party screening where applicable
- Bank information verification
- References
- Tax or regulatory documentation
- Ownership information
- Previous performance
The depth of due diligence should be proportionate to the procurement risk and organizational requirements.
11. Obtain Required Approval
The procurement recommendation may need approval from designated authorities before the organization commits funds.
Approval requirements vary by organization and may depend on:
- Procurement value
- Procurement method
- Funding source
- Budget authority
- Emergency status
- Contract type
- Organizational policy
Segregation of duties is an important internal-control principle. Where feasible, responsibilities for requesting, purchasing, approving, receiving, and paying should not be concentrated in one person.
The exact approval structure should always follow the applicable organizational policy.
12. Issue the Purchase Order or Contract
Once the required approval has been obtained, the organization can formally establish the contractual commitment with the selected supplier.
For goods, this may be a purchase order.
For services or more complex arrangements, it may be a contract or another approved contractual instrument.
The document should clearly establish relevant obligations such as:
- Goods or services
- Quantities
- Prices
- Delivery requirements
- Payment terms
- Quality requirements
- Contract duration
- Applicable terms and conditions
- Responsibilities of the parties
The supplier should receive the formal authorization before beginning work unless the organization's procedures provide otherwise.
13. Monitor Delivery and Contract Performance
Procurement does not end when the purchase order is issued.
The organization should monitor whether the supplier performs according to the agreed requirements.
Monitoring may include:
- Delivery dates
- Quantity
- Quality
- Specifications
- Packaging
- Documentation
- Service performance
- Contract milestones
For humanitarian operations, delivery performance can be particularly important because delays may directly affect the delivery of assistance.
A supplier that repeatedly delivers late or provides non-compliant goods may create operational risks even when its prices are competitive.
14. Receive and Inspect the Goods or Services
When goods arrive, the responsible team should verify that they correspond to the purchase order and applicable requirements.
Depending on the type of purchase, receiving controls may check:
- Quantity
- Condition
- Quality
- Specifications
- Expiry dates
- Packaging
- Serial numbers
- Supporting documents
For services, the responsible department may confirm that agreed deliverables have been completed satisfactorily.
Receiving documentation creates an important audit trail and provides evidence that the organization received what it purchased.
15. Process the Supplier Invoice and Payment
After satisfactory receipt and completion of the required documentation, the supplier invoice can be processed according to the organization's financial procedures.
The payment process may require matching documents such as:
- Purchase requisition
- Purchase order or contract
- Delivery note
- Goods received note
- Service completion evidence
- Supplier invoice
- Required approvals
The exact control mechanism varies between organizations and accounting systems.
The important principle is that payment should be supported by appropriate documentation and authorization.
16. Close and Document the Procurement
After delivery and payment, the procurement file should be complete and properly retained according to the organization's records-management requirements.
A procurement file may contain:
- Requisition
- Specifications
- Market research
- Solicitation documents
- Supplier offers
- Evaluation documents
- Approval records
- Purchase order or contract
- Delivery documentation
- Inspection or receiving evidence
- Invoice and payment documentation
- Relevant correspondence
- Supplier performance information
Complete documentation supports accountability, audits, donor reporting, and future procurement decisions.
17. Evaluate Supplier Performance
Supplier performance information can help organizations make better future procurement decisions.
Useful indicators may include:
- On-time delivery
- Quality compliance
- Responsiveness
- Documentation accuracy
- Communication
- Contract compliance
- Complaint resolution
- Service reliability
A supplier-performance system should be based on objective and documented criteria rather than personal preference.
Humanitarian Procurement Process Flowchart
The complete process can be summarized as:
1. Identify need
↓
2. Submit requisition
↓
3. Develop specifications/TOR
↓
4. Conduct market research
↓
5. Select procurement method
↓
6. Identify suitable suppliers
↓
7. Issue RFQ/RFP/ITB or other solicitation
↓
8. Receive offers
↓
9. Evaluate offers
↓
10. Complete due diligence and approvals
↓
11. Award and issue PO/contract
↓
12. Monitor delivery/performance
↓
13. Receive and inspect
↓
14. Process payment
↓
15. Close procurement file
↓
16. Evaluate supplier performance
Not every procurement follows every step in exactly this sequence. Emergency procedures, framework agreements, low-value purchases, direct procurement under permitted circumstances, and other organizational arrangements may use different workflows.
Key Principles of Humanitarian Procurement
A strong humanitarian procurement system generally seeks to balance several principles.
Value for Money
Value for money is broader than simply selecting the cheapest quotation. Depending on the procurement, the organization may need to consider price, quality, delivery, risk, sustainability, and other relevant factors.
Transparency
Procurement decisions should be sufficiently documented and transparent to demonstrate how and why a supplier was selected.
Fair Competition
Where competitive procurement is required, eligible suppliers should receive a fair opportunity to compete according to the applicable rules.
Accountability
Procurement decisions should be traceable to appropriate approvals, supporting documentation, and established procedures.
Segregation of Duties
Appropriate separation of procurement responsibilities can reduce the risk of error, fraud, conflicts of interest, and unauthorized commitments.
Ethical Conduct
Procurement personnel should avoid conflicts of interest, improper influence, favoritism, corruption, and other conduct that could compromise procurement integrity.
Timeliness
Humanitarian procurement must consider the urgency of delivering assistance. However, urgency should not automatically be treated as permission to ignore applicable controls.
Emergency Procurement in Humanitarian Operations
Emergency situations can create a difficult balance between speed and control.
For example, an organization responding to a sudden displacement crisis may urgently need water, shelter materials, medical supplies, or transportation.
Standard procedures may allow specific emergency procurement mechanisms, but the organization should follow its applicable emergency provisions rather than assuming that an emergency removes procurement controls altogether.
A sound emergency procurement process should still consider:
- Justification for the emergency approach
- Appropriate authorization
- Reasonable market information where feasible
- Supplier suitability
- Value for money
- Documentation
- Conflict-of-interest controls
- Post-procurement review where required
The specific emergency procurement rules depend on the organization's policy and applicable donor or regulatory requirements.
Common Humanitarian Procurement Challenges
Humanitarian procurement teams frequently operate in environments where ordinary commercial assumptions do not apply.
1. Limited Supplier Availability
Conflict, insecurity, remote locations, or weak markets may reduce the number of suppliers capable of meeting requirements.
2. Price Volatility
Inflation, currency fluctuations, fuel prices, import restrictions, and sudden demand can affect procurement costs.
3. Long Lead Times
Imported goods may require customs clearance, international transportation, or multiple stages of delivery.
4. Emergency Requirements
Programs may need supplies faster than a standard procurement cycle would normally allow.
5. Quality Risks
Limited local availability can create pressure to accept products that do not fully meet specifications.
6. Compliance Requirements
Humanitarian organizations may need to comply simultaneously with organizational policies, donor requirements, national regulations, and contractual conditions.
7. Fraud and Corruption Risks
Procurement involves financial transactions and supplier relationships, making strong controls and documentation important.
Humanitarian Procurement KPIs
Organizations can use procurement performance indicators to identify operational problems and improve service delivery.
Possible indicators include:
| KPI | What It Measures |
|---|---|
| Procurement cycle time | Time required to complete procurement |
| On-time delivery rate | Supplier delivery performance |
| Purchase order compliance | Whether purchases follow approved processes |
| Supplier defect rate | Quality performance |
| Cost variance | Difference between planned and actual cost |
| Competitive procurement rate | Use of required competitive methods |
| Contract compliance | Supplier adherence to contractual requirements |
| Procurement savings | Savings achieved where a valid baseline exists |
KPIs should be defined consistently. For example, "procurement cycle time" needs a clear start and end point before performance can be compared across transactions.
How to Improve Humanitarian Procurement
Humanitarian organizations can strengthen procurement performance by combining appropriate controls with practical operational planning.
Improve Procurement Planning
Early identification of recurring requirements allows organizations to plan sourcing activities before emergencies occur.
Strengthen Market Knowledge
Regular market research can help procurement teams understand supplier capacity, price trends, lead times, and risks.
Use Framework Agreements Where Appropriate
Framework arrangements can reduce repetitive procurement work for recurring requirements when they are established and managed according to applicable rules.
Improve Specifications
Clear, objective specifications reduce ambiguity and make supplier offers easier to compare.
Monitor Supplier Performance
Documented supplier-performance information can improve future sourcing decisions.
Strengthen Procurement Documentation
A complete procurement file makes decisions easier to review and supports audits and accountability.
Use Technology Appropriately
Electronic procurement systems can improve workflow visibility, data quality, approvals, supplier records, and reporting. Technology should support sound procurement controls rather than replace professional judgment.
A Practical Example of Humanitarian Procurement
Imagine that an NGO needs to purchase 1,000 family hygiene kits for a humanitarian response.
The procurement process could look like this:
Step 1: Need
The program team identifies a requirement for 1,000 hygiene kits.
Step 2: Requisition
The requesting department submits an approved requisition specifying the quantity, delivery location, required date, and funding information.
Step 3: Specifications
The technical team defines the contents and quality requirements of each kit.
Step 4: Market Research
Procurement identifies suppliers capable of supplying the required quantity within the required timeframe.
Step 5: Procurement Method
The procurement team determines the appropriate sourcing method according to the organization's applicable procurement policy.
Step 6: Solicitation
Qualified suppliers receive the appropriate solicitation documents.
Step 7: Evaluation
Offers are evaluated according to the established criteria.
Step 8: Approval
The recommended supplier and procurement process receive the required approvals.
Step 9: Contract or PO
The organization issues the appropriate contractual document.
Step 10: Delivery
The supplier delivers the kits.
Step 11: Inspection
The responsible team verifies quantity and compliance with specifications.
Step 12: Payment
The invoice is processed after the required receiving and approval documentation is complete.
Step 13: Closeout
The procurement file is completed and retained according to applicable requirements.
This example is hypothetical and is intended to demonstrate the process. It should not be interpreted as the official procedure of any particular NGO.
Humanitarian Procurement vs Commercial Procurement
Humanitarian and commercial procurement share many fundamental concepts, but their operating environments can differ.
| Area | Humanitarian Procurement | Commercial Procurement |
|---|---|---|
| Primary objective | Support humanitarian operations and affected populations | Support commercial/business objectives |
| Operating environment | Often unstable or emergency-affected | Usually more predictable |
| Time pressure | Can be extremely high | Usually planned but varies |
| Accountability | Donors, affected populations, organization, regulators and partners | Owners, customers, regulators and other stakeholders |
| Market conditions | May be disrupted | Often comparatively stable |
| Funding | Frequently donor- or grant-funded | Usually commercial/business funding |
| Procurement controls | Organization and donor requirements may apply | Company policy and applicable law |
| Supplier risk | Can be high due to fragile markets | Varies by industry and market |
These are broad distinctions rather than universal rules. Individual organizations and commercial businesses can have very different procurement systems.
Humanitarian Procurement Checklist
Before completing a procurement, procurement and logistics teams can consider whether:
- ☐ The requirement is clearly defined.
- ☐ The purchase is properly authorized.
- ☐ Specifications or TOR are clear.
- ☐ The applicable procurement method has been identified.
- ☐ Market information is sufficiently current.
- ☐ Suitable suppliers have been identified.
- ☐ Solicitation documents are complete.
- ☐ Supplier offers have been handled according to procedure.
- ☐ Evaluation follows established criteria.
- ☐ Required approvals have been obtained.
- ☐ Supplier due diligence requirements have been completed.
- ☐ The PO or contract is properly issued.
- ☐ Delivery is monitored.
- ☐ Goods or services are verified.
- ☐ Payment documentation is complete.
- ☐ Procurement records are properly maintained.
- ☐ Supplier performance is recorded where required.
This checklist is a general management aid, not a substitute for an organization's procurement policy.
Frequently Asked Questions
What are the main steps in humanitarian procurement?
The main steps generally include identifying the need, preparing a requisition, developing specifications, conducting market research, selecting an appropriate procurement method, soliciting suppliers, evaluating offers, obtaining approvals, awarding the purchase, monitoring delivery, receiving the goods or services, processing payment, and closing the procurement file. The exact procedure varies by organization and context.
What is the difference between humanitarian procurement and normal procurement?
Humanitarian procurement operates in environments where urgency, disrupted markets, security constraints, donor requirements, and the need to deliver assistance can significantly affect procurement decisions. However, both humanitarian and commercial procurement rely on fundamental concepts such as specifications, supplier selection, evaluation, contracting, delivery, and accountability.
Is the lowest price always the best procurement option?
No. The lowest price is not automatically the best option. The appropriate decision depends on the evaluation method and applicable procurement rules and may consider technical compliance, quality, delivery, risk, total cost, and other predefined criteria.
What is an RFQ in humanitarian procurement?
An RFQ, or Request for Quotation, is a solicitation method commonly used for requirements where suppliers can provide comparable quotations based on clearly defined specifications. The exact use and threshold for RFQs depend on the applicable organization's procurement policy.
What is an RFP in procurement?
An RFP, or Request for Proposal, is generally used when the organization needs suppliers to propose a solution, methodology, or approach in addition to providing financial information. The evaluation may therefore include both technical and financial components according to predefined criteria.
What is emergency procurement?
Emergency procurement refers to procurement conducted under specific provisions designed to address urgent requirements. The applicable procedure depends on the organization's policy and the circumstances. Emergency procurement should not automatically be assumed to eliminate normal accountability and documentation requirements.
Why is procurement important in humanitarian operations?
Procurement determines whether humanitarian programs can obtain the goods and services they need at the required quality, quantity, timing, and cost. Effective procurement can support timely assistance, value for money, accountability, and operational continuity.
What documents are normally included in a procurement file?
Depending on the organization and procurement method, documentation may include the requisition, specifications, market research, solicitation documents, supplier offers, evaluation records, approvals, purchase order or contract, delivery documentation, receiving records, invoices, payment records, and relevant correspondence.
How can procurement officers improve humanitarian procurement?
Procurement officers can improve performance through stronger procurement planning, market analysis, clear specifications, appropriate sourcing methods, supplier-performance monitoring, accurate documentation, risk management, ethical conduct, and effective coordination with program, finance, logistics, and other relevant teams.
Key Takeaways
Humanitarian procurement is more than purchasing goods at the lowest available price. It is a structured process that connects operational needs with suppliers while balancing timeliness, quality, value for money, competition, accountability, compliance, and risk.
A typical humanitarian procurement cycle moves from:
Need → Requisition → Specifications → Market Research → Procurement Method → Solicitation → Evaluation → Approval → Contract/PO → Delivery → Inspection → Payment → Closeout → Supplier Performance
However, there is no single universal humanitarian procurement procedure. Requirements can vary by organization, country, donor, procurement value, emergency status, funding arrangement, and applicable policy.
For procurement and logistics professionals, understanding both the standard procurement cycle and the context in which that cycle changes is essential. Strong procurement practice means knowing the rules that apply, documenting decisions properly, managing supplier and market risks, and ensuring that procurement supports timely and effective humanitarian assistance.