HOME > Glossary of terms

Term	Clarification/Definition
Action	A humanitarian aid Operation implemented by a Humanitarian Organisation and funded by the European Commission.
Ad Hoc Decision	A type of Financing Decision. It intends to give a one-off response to meet localised humanitarian needs, and is generally built on the basis of a limited set of elements. It can be articulated on the basis of a single sector or theme of intervention, a single or limited number of Partners or a limited set of specific objectives.
Agreement	Generic term covering both Grant Agreements and Contribution Agreements. Encompasses the General Conditions, Special Conditions, Annexes I and II (description of the Action; financial overview), and Action proposal.
Amendment	A modification to an Agreement to reflect operational or other changes in the implementation of the Action. An Amendment can take the form of a Unilateral Modification, an Exchange of Letters or a Supplementary Agreement.
Annex IV	Annex added to the FPA on 27/11/2007. It covers Rules and procedures applicable to property, supply, works and service contracts awarded within the framework of humanitarian actions financed by the European Communities.
APPEL	The application for electronic exchange of information between DG ECHO and its partners.
Assignment	Situation whereby the rights held by one party in the Agreement are transferred to a third party.
Award notice	The publication of the outcome of the award procedure which identifies the type of product, service or works purchased, the amount of the contract and the successful Candidate or Tenderer.
Bank Charges	Costs that banks or equivalent institutions impose on their clients for carrying out transactions or services, including bank guarantee charges.
Best value for money	Any award procedure must observe this criterion. Contracts shall be awarded to the tender offering the best value for money that is to say, the best price-quality ratio, while taking care to avoid any conflict of interests. Basing the award of contracts on this helps maintain transparency and non-discrimination. It involves selecting the offer which presents the optimum combination of factors such as appropriate quality, life-cycle costs and other parameters to best meet defined needs and objectives of the Action.
Bid	Used as a general term to denote both a Tender offered by a Tenderer in an Open Tender Procedure and the Offer (Negotiated Terms and Conditions offered) by a Candidate in a Negotiated Procedure.
Buying Agent	A commercial structure specialised in the Technical Assistance to Humanitarian Organisations for the organisation of procurement procedures. The award of contracts for the performance of this service must be done in accordance with the applicable rules established in Annex IV. Use of Buying Agents to advise on, arrange or manage a procurement process does not remove from Contracting Authorities the requirement to comply with its obligations under Annex IV.
Candidate	Economic operator who is invited to take part in a negotiated procedure.
Cash for Returnees	Providing returnees, in the context of their voluntary repatriation to their country of origin and resettlement, with a monetary grant, to facilitate their return and settlement. Also covers refugees and displaced persons who are considered to be “returnees” when they are subject to repatriation and resettlement.
Cash for Work	Aid in cash as remuneration for work carried out by the beneficiaries. The work corresponds to work of public or Community interest which is related to the implementation of the Action.
Codex Alimentarius	The Codex Alimentarius (Latin for “food code”) is a collection of internationally adopted food standards, guidelines and codes of practice. The Codex is the result of the work of the Commission and Technical Committees set up by the FAO and WHO to develop food standards, guidelines and related texts such as codes of practice under the Joint FAO/WHO Food Standards Programme. Partners and HPCs should consider the standards and guidelines of the Codex Alimentarius when procuring food aid. www.codexalimentarius.net The Codex standards and guidelines provide quality assurance for the production and distribution of particular food products but also provide some general recommendations, for example, General Standard for the Labelling of Pre-packaged Foods (1985); Standard for infant formula and formulas for special medical purposes intended for infants (1981); Standard for Natural Mineral Waters (1981); General Standard for Food Additives (1995); General Standard for Contaminants and Toxins in Food and Feed ( 1995) Guideline for the Validation of Food Safety Control Measures ( 2008).
Coercion Coercive practice	This involves impairing or harming, or threatening to impair or harm, directly or indirectly, any participant in the tender process to influence improperly its activities. Proposals and contracts must be free from this form of irregular behaviour and Contracting Authorities shall inform immediately the European Commission in writing in the event of being confronted by any such practice, and provide all the relevant information.
Collusion Collusive practice	This is an undisclosed arrangement between two or more tenderers or candidates designed to artificially alter the results of the tender procedure to obtain a financial or other benefit. Proposals and contracts must be free from this form of irregular behaviour and Contracting Authorities shall inform immediately the European Commission in writing in the event of being confronted by any such practice, and provide all the relevant information.
Co-financing	Financing modality whereby an Action is financed by several donors and/or financed partially by the Partner's own funds. DG ECHO's contribution amounts to a percentage of the Action's total budget. Only applicable to NGOs.
Committed Cost	Costs for which a legal obligation exists (e.g. on the basis of a contract) and is entered into the Partner's accounts. (See also Eligible Costs).
Confirmation Reply	A reply by DG ECHO to a request by a Partner on the applicability of existing rules.
Conflict of interest	Contracting Authorities shall inform immediately the European Commission in writing in the event of being confronted by any situation likely to constitute a conflict of interest and provide all the relevant information.
Contract	An agreement for pecuniary interest concluded in writing by a Contracting Authority in the context of an Action financed, in whole or in part, from a contribution from the Community budget (and where applicable, from the European Development Fund), in order to obtain, against a payment of a price the supply of products, the execution of works or the provision of services. On the basis of their object, the following types of Contracts can be established: Property Contracts, Supply Contracts, Works Contracts and Services Contracts.
Contract Notice	The publication by which a Contracting Authority launches a procurement procedure. The Contract Notice shall specify the rules governing the submission and presentation of tenders, the exclusion, selection and award criteria and set out the Technical Specifications or Terms of Reference. In order to keep publication costs reasonable it is sufficient that the Contract Notice contain a brief reference to the above-mention specifications and provides details on where or how to obtain more information.
Contracting Authority	Contracting Authority refers in Annex IV to those entities eligible for EU financing for the implementation of humanitarian Actions under the Humanitarian Aid Regulation and to which the rules and procedures of Annex IV and these Guidelines apply. In these Guidelines the term is generally synonymous to the word Partner but may also refer to an HPC while procuring supplies and services. Implementing Partners for a Contribution or Grant Agreement holder are also considered Contracting Authorities when the implementation of the tasks that they assume in the Action requires the award of Contracts. The term Contracting Authority, defined in paragraph 1.5 of Annex IV, is to be understood, therefore, as the service or person empowered in each organisation to manage procurement processes.
Contractor	All types of economic operators concluding Contracts with the Contracting Authorities. Contractors can be Suppliers, Works Contractors and Service Providers.
Contribution Agreement	An Agreement signed by DG ECHO and an International Organisation or a Member State specialised agency, covering an Action.
Control mechanism	The supervisory and monitoring procedure applied to each individual Agreement for identifying, assessing, and managing risks, carried out by the European Commission to provide reasonable assurance as regards the achievement of the objectives. Agreements may be subject to an “A” or a “P” control mechanism: The “P” Control mechanisms (whereby “P” stands for Prior assessment and own Procedures) where DG ECHO assesses the technical capacity and the procurement rules and procedures of the Partner signatory of the Agreement beforehand. In these cases the Partner uses its own rules for procurement and Annex A of the Single Form is not mandatory. Also the reporting on procurement will be less detailed in the final financial report. The “A” Control mechanisms (whereby “A” stands for Action-related monitoring) where DG ECHO assesses merely the sound management of the Action (including also the respect of internal control and risk management), the sound financial management and the sound management of the procurement procedures. The Partner will have to follow more detailed procurement rules in Annex IV and in the Humanitarian Aid Guidelines for Procurement. Also the related reporting will be more detailed as Annex A of the Single Form is mandatory at each stage and more explicit reporting requirements are fixed for the final financial report. Actions under this mechanism will be more closely looked at during liquidation and will be subject to more regular audits. In some cases, the Action will be subject to a maximum funding ceiling. If request is made to exceed the funding threshold, additional controls will be necessary. These controls will be established on a case by case basis. The Special Conditions of the individual Agreements signed with the Contracting Authority expressly identify the control mechanism to be applied.
Corruption Corrupt practice	This includes the offering, giving, receiving or soliciting, directly or indirectly, of anything of value to influence improperly the activities of the Contracting Authority. Proposals and contracts must be free from this form of irregular behaviour and Contracting Authorities shall inform immediately the European Commission in writing in the event of being confronted by any such practice, and provide all the relevant information.
Date of Adoption of the Financing Decision	The administrative date given by the Secretariat General of the European Commission and indicating when the Financing Decision was formally adopted by the European Commission.
Date of Entry into Force of the Financing Decision	The date when the Financing Decision produces legal effects and individual agreements can be signed.
Date of Submission of documents	Date of registry by DG ECHO of the received documents..
Depreciation	In general, depreciation is an accounting method for spreading the actual cost of durable equipment or assets over its estimated useful economic lifespan in a systematic manner and must exceed one accounting year.
Derogation	Annex IV provides for a procedure by which ECHO may approve Derogations to the General Rules and Procedures. Any request for a departure from these rules must be accompanied with proper justification and if granted will be included in the Special Conditions of the Agreement. Derogations may be justified for/on security, operational, technical or quality reasons; shortfall or unavailability on the markets of the supplies; costs or delays due to transport; on the grounds of legislation in the country of operation or if the fulfilment of the contractual obligation would harm the Humanitarian Organisation’s mandate or the safety of its staff.
Direct Costs	Any expenditure directly linked to the implementation of the Action. They can be defined as actual costs pertaining to the implementation of the Action and cover both the costs of goods and services delivered to beneficiaries and the costs related to the support activities required for the correct implementation of the Action.
Donation Certificate	A certificate signed by the Partner and the beneficiary of the donation (of durable equipment or stocks), the purpose of which is to lay down the terms and conditions of the donation.
Double Financing / charging	Double Charging is a situation whereby the same cost is claimed more than once while Double Financing is a situation whereby the same cost is actually reimbursed more than once. Both must be avoided.
Durable Equipment	Durable equipment is defined as equipment that can be used multiple times over their estimated economic useful lifespan and has a residual economic value at the end of the project.
Duration of a Financing Decision	The period during which the Actions must be implemented. Only Worldwide, Global Plans and Ad Hoc Financing Decisions establish such a period. Synonym for “Implementation Period of a Financing Decision”.
Earmarked contributions	Sometimes donors to humanitarian actions “earmark” their contribution to an action, meaning that they reserve the use of their donation by indicating precisely to which aspect of the action (e.g. specific items or categories of expenditure) it should be devoted, or to which aspect it should not be devoted.
Eligibility Period of the Action/Agreement	The period during which the expenses incurred for an Action are eligible.
Eligible Costs	Costs that are (i) necessary and reasonable for the implementation of the Action, (ii) actually incurred, complying with the principles of sound financial management, (iii) committed during the Eligibility Period of the Action, (iv) identifiable, recorded in the accounting records of the Humanitarian Organisation or its implementing partners, (v) determined according to the applicable accounting standards of the country where the Humanitarian Organisation is established and according to the usual cost-accounting practices of the Humanitarian Organisation, (vi) backed by original supporting evidence, verifiable, and (vii) complying with the requirements of applicable tax and social legislation.. (See Article 18 of the General Conditions.)
Emergency (financing) Decision	One of the four categories of Financing Decisions covering new crises and established humanitarian crises where humanitarian aid is already under way, but where continuing uncertainty and instability requires an appropriate, rapid and flexible response, e.g. where there are sudden deteriorating weather conditions within a natural disaster situation (a crisis within a crisis).
Empowerment	Mandate given by the College of Commissioners of the European Commission to one or several Commissioners to act on behalf of and under the responsibility of the Commission, according to well-defined conditions, among others to adopt financing decisions.
Equal treatment	Equal treatment and non-discrimination of potential contractors and donors. A Mandatory Principle in Annex IV which any award procedure must observe in the procurement processes.
Estimated amount / value of a contract	The estimated value of a contract may not be determined with a view to evading the publication and tender requirements laid down in Chapter 3, Annex IV, nor may a procurement procedure be split up for that purpose. Where the subject of a contract is subdivided into several lots, even if each one will be subject of an individual contract, the value of all lots together must be taken into account for the overall evaluation of the applicable threshold. For the purposes of calculating the estimated amount of a Framework Contract, the value to be taken into account shall be the maximum value of all the contracts envisaged during the total lifetime of the Framework Contract.
Ethical Procurement	A Mandatory Principle in Annex IV. Contracting Authorities, Tenderers and Candidates must observe the highest ethical standards during the procurement and execution of contracts and ensure basic social rights and working including protection against exploitative child labour.
European Commission	In humanitarian aid Actions and most related matters the European Commission is represented by Directorate General for Humanitarian Aid and Civil Protection (ECHO). Where appropriate ECHO is used to refer to the European Commission so as to avoid confusion between Humanitarian aid and other forms of aid for which other Commission DGs are responsible.
European Development Fund - EDF	All references to the funding of humanitarian Actions by ECHO in the Guidelines include the resources allocated from the EDF to the financing of humanitarian aid
Exclusion criteria	Tenderers and candidates must be excluded from participation in procurement procedures if they incur in one of the grounds set out in Article 93 of the Financial Regulation. These situations include bankruptcy, conviction of an offence, professional misconduct, tax or social security evasion, fraud, corruption or criminal activities, misrepresentation or failure to supply essential information or serious breach of obligations. Furthermore contracts shall not be awarded to tenderers or candidates who, during the procurement procedure for the contract in question find themselves in one of the situations referred to in Article 94 of the Financial Regulation. These include being subject to a conflict of interest, being guilty of misrepresentation or failure to supply information required for participation in a procurement procedure or being subject to any of the situations of Exclusion listed in Article 93 of the Financial Regulation.
Ex Tempore Amendment	An Amendment requested and adopted after the end of the Implementation Period of an Action, but before submission of the final report.
Exchange of Letters	An Amendment procedure consisting of a Partner's request to modify the Agreement and DG ECHO's reply.
eSingle Form	The electronic form to be completed by the Partners for the submission of Action proposals and reports, as from 2010. They are transmitted via the internet through the system APPEL.
eTools	A web-based system developed by DG ECHO, which automates the preparation, submission and approval of projects proposals, project reports and modification requests made by DG ECHO partners. There are two different online systems: APPEL, used by humanitarian organisations, and HOPE, used by DG ECHO. The two systems communicate with each other.
Fait du Prince	Decisions taken by national, regional or local authorities which affect the implementation of the Actions (e.g. prohibition to import humanitarian goods, refusal of access to the region affected by the crisis, etc.)
Financial and Administrative Framework Agreement (“FAFA”)	Agreement between the UN and the European Commission, laying down the mutual rights and obligations of partnership between both institutions for the funding of Actions in areas such as development and humanitarian aid.
Financing Decision	Act by which the Commission allocates funds from the General Budget to finance humanitarian Actions. It identifies i.e. the objectives of humanitarian interventions, the region, and type of activities, funds to be committed, eligibility period and potential partners.
Financial Leasing	A purchase financed by a debt. To be distinguished from Operational Leasing/rental agreements. It is synonym for hire purchase.
Financial Institutions	The Financial institutions are referred to as 'banks' but this term is used in the wider sense to cover all types of financial institutions (e.g. credit agencies, co-operatives, etc.) even those that may not have an official structure.
Financial Regulation	Council Regulation No 1605/2002 of 25/06/2002 on the Financial Regulation applicable to the general budget of the European Communities.
Food Access	The extent to which resources can be used to obtain adequate and appropriate foods for for a nutritious diet. Depends on income available to the household, on the distribution of income within the household and on the price of food.
Food Aid	Assistance in the form of food commodities, or in the form of financing that supports the centralised procurement and distribution of food to beneficiaries. Procurement of Food Aid is subject to Special Rules in Annex IV, Chapter 4 relating to the particular features of the relevant local beneficiary markets, nutritional habits of the beneficiary population, quality standards. In derogation to Annex IV, para 3.4,when the object of the contract is the supply of fresh food and the contract is divided into several lots taking into account the seasonal availability of products, each one of the lots will be considered individually, and not aggregated, in order to establish the applicable threshold.
Food Availability	The extent to which sufficient quantities od adequate and appropriate food can be secured from household production, other domestic output, commercial inputs or food aid.
Food Consumption	The act of transferring food commodities, and the nutrient within them, to the body
Food Utilisation	The physical use of food by an individual prior to consumption (including storage and processing) and the body's biological use of food, its energy and its micronutrients, after consumption. Determinants of food utilisation are as diverse as access to water and adequate sanitation, access to cooking utensils, health status and disease burden, as well as knowledge within the household of food storage, basic principles of nutrition, and proper child care and child feeding practices.
Force Majeure	Any unforeseeable exceptional situation or event beyond the Partner's or DG ECHO's control which prevents either of them from fulfilling any of their contractual obligations, which is not attributable to error or negligence on their part (or the part of their implementing partners, contractors or employees), and which proves insurmountable in spite of all due diligence. Defects in equipment or material or delays in making them available or financial difficulties are not force majeure.
Four Pillar Review	Assessment of accounting, audit, internal control and procurement procedures of an international organisation, which, if satisfactory, offer guarantees equivalent to internationally acceptable standards.
Framework Contract	Sometimes it is also called a long term agreement (LTA) and is a contract concluded between a Contracting Authority and one or several economic operators for the purpose of laying down the essential terms governing a series of specific contracts to be awarded during a given period, in particular as regards the duration, subject, prices, conditions of performance and the quantities envisaged. Specific contracts based on Framework Contracts shall be awarded in accordance with the terms of the Framework Contract, after having consulted in writing all Contractors originally part of the Framework Contract. The award of Framework Contracts must comply with the Mandatory Principles and must not prevent, restrict or distort competition. The term of a Framework Contract may not exceed five years.
Framework Partnership Agreement (“FPA/NGO”)	Agreement between DG ECHO and the NGOs which establishes the principles of partnership between DG ECHO and the NGOs defines their respective roles, rights and obligations and establishes the rules applicable to the Actions implemented by the NGOs and financed by DG ECHO.
Framework Partnership Agreement for International Organisations (“FPA/IO”)	Agreement between DG ECHO and the International Organisations, other than the UN organisations (who are subject to the provisions of the FAFA), which establishes the principles of partnership between DG ECHO and the International Organisations, defines their respective roles, rights and obligations and establishes the rules applicable to the Actions implemented by the International Organisations and financed by DG ECHO.
Fraud Fraudulent practice	This includes any act or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, the Contracting Authority to obtain a financial or other benefit or to avoid an obligation. Proposals and contracts must be free from this form of irregular behaviour and Contracting Authorities shall inform immediately the European Commission in writing in the event of being confronted by any such practice, and provide all the relevant information.
General Conditions	A pre-established set of contractual clauses, annexed to the different FPAs and FAFA, which are part of each Agreement and establish the general rules and procedures applicable to the implementation of the Action.
General Rules and Procedures	Chapter 3 of Annex IV establishes basic rules which should government procurement. The provisions of these General Rules and Procedures are mandatory to contracts above €60,000 for Actions subject to the A-Control mechanism and are further developed in detail in the Humanitarian Aid Guidelines for Procurement.
Global Harmonization Task Force (GHTF)	Medical devices shall meet essential requirements as described by the GHTF. GHTF, SG1- N041R6 – essential principles of safety and performance medical devices (including In Vitro diagnostic devices) 2004 and GHTF SG1(PD) - N043R6 – labelling for medical devices (including In Vitro diagnostic devices) 2004.
Global Plan	A type of Financing Decision intended to provide a coherent framework for action in a given country or region for long-lasting/protracted humanitarian crises which may evolve more or less slowly and in a more or less predictable way. Global Plans provide an integrated and multi-sector humanitarian response to complex, large-scale, protracted and, in most cases, man-made humanitarian crises.
Good Distribution Practices - GDP	Pre-qualification of medicines should be based, amongst other things, on an assessment of compliance with GDP. The WHO publishes standards and quality assurance guidelines in this field
Good Manufacturing Practice - GMP	Good manufacturing practice (GMP) is that part of quality assurance which ensures that products are consistently produced and controlled to the quality standards appropriate to their intended use and as required by the marketing authorization. Pre-qualification of Pharmaceuticals and Medical Devices should be based on a general understanding of the production and quality control activities of the manufacturers and suppliers and of their commitment to the principles of GMP. GMP is aimed primarily at diminishing the risks inherent in any pharmaceutical production, which may broadly be categorized in two groups: cross contamination/mix-ups and false labelling. Above all, manufacturers must not place patients at risk due to inadequate safety, quality or efficacy. The WHO publishes standards and quality assurance guidelines in this field.
Good Storage Practices - GSP	Pre-qualification of Medicines should be based, amongst other things, on an assessment of compliance with GSP. The WHO publishes standards and quality assurance guidelines in this field.
Grant Agreement	An Agreement signed by DG ECHO and an NGO, covering an Action.
Humanitarian Aid Regulation	Council Regulation (EC, Euratom) No 1257/96 of 20 June 1996 concerning humanitarian aid, OJ L 163, of 2 July 1996.
Humanitarian Food Assistance	Food assistance provided to assist victims of humanitarian crises. Food assistance refers to any intervention designed to tackle food insecurity, its immediate causes and its various negative consequences. Food assistance may involve the direct provision of food, but may utilize a wider range of tools, including the transfer or provision of relevant services, inputs or commodities, cash or vouchers, skills or knowledge.
Humanitarian Implementation Plan (HIP)	By publishing a HIP, DG ECHO informs its Partners of the availability of funds for a specific country or crisis and of the planned procedure for the allocation of these funds. The HIP gives a snapshot of the situation in a given crisis/country. It provides an overview of the humanitarian needs and DG ECHO's response to address the challenges identified.
Humanitarian Organisation	Non-profit making autonomous organisations eligible for Community financing for the implementation of Actions under the Humanitarian Aid Regulation. It covers National Societies of the Red Cross and Non-Governmental Organisations signatories of the Framework Partnership Agreement.
HOPE	An Intranet, used by DG ECHO staff to appraise and evaluate an eSingle Form. HOPE is not accessible by partners.
Humanitarian Procurement Centre - HPC	Not for profit organisation specialised in the technical and commercial management of supplies and services related to humanitarian aid. It can provide Technical Assistance in procurement or supply pre-established stocks, purchasing or logistics capacity. The use of HPCs to provide assistance, procurement services or supplies pre-established stocks, purchasing or logistics capacity permits the Partner to apply the negotiated procedure with a single tender under Annex IV. HPCs must guarantee equal treatment of suppliers and among Contracting Authorities, high standards for integrity, transparency, price, performance and quality. The procurement procedures of HPCs shall comply with the Mandatory Principles of procurement.
Hybrid contracts	These are contracts having as object a combination of different types of contracts (e.g. Works, Services etc) and where the contract shall be deemed to relate to whichever type has the higher value. For example, a contract covering both works and services shall be considered a service contract whenever the value of the services in question exceeds that of the works included in the contract.
Implementation Period of a Financing Decision	The period during which the Actions must be implemented. Only Worldwide, Global Plans and Ad Hoc Financing Decisions establish such a period. Synonym for Duration of the Financing Decision.
Implementation Period of the Action/Agreement	The duration of the Action in the field. The start date of the implementation is identified in the Agreement.
Implementing Partner	Implementing Partner refers to Humanitarian Organisations (both national and international), Specialised Agencies of the Member States, International Organisations and local authorities which are identified in the Action proposal as implementing partners. They assist the Contracting Authority in the implementation of the Action in the field. The relation between the Contracting Authority and its Implementing partners shall be based on the principle of not-for-profit and neither party may obtain financial benefits out of it. Implementing Partners for a Contribution or Grant Agreement holder are considered for the purposes of Annex IV as Contracting Authorities when the implementation of the tasks that they assume in the Action requires the award of Contracts. They are bound to observe all the obligations of Partners when acting as Contracting Authority. Local Contractors are not Implementing Partners. The Implementing Partner – usually active in the country or region of the Action - is identified in the Single Form. It is not necessarily a local Partner. The Agreement holder retains full responsibility for the implementation of the Action.
Implementing Rules	Commission Regulation No 2342/2002 of 23/12/2002 laying down detailed rules for the implementation of the Financial Regulation.
Incoterms	Incoterms (International Commercial Terms) are standard trade definitions devised and published by the International Chamber of Commerce used in international sales contracts. See http://www.iccwbo.org/incoterms/id3042/index.html. Some commonly used Incoterms include: FOB (Free on Board); CFR (Cost & Freight); CIF (Cost, Insurance & Freight); DDU (Delivered Duty Unpaid); DDP (Delivered Duty Paid). The Contract Notice must specify, when required, the contractual Incoterms delivery conditions applied to the supply contract and identify the applicable Incoterm edition. When the Incoterms specified in the Contract Notice obliges the supplier to take out a transport insurance policy, this insurance shall be for at least the awarded tender amount and shall cover all risk associated with carriage.
Income generation	It is a tool that helps the affected beneficiaries to regain a minimum of self-sufficiency. It can take the forms of cash for work and the support of a professional activity with the free distribution of equipment and tools to the beneficiaries.
Indirect Costs	Costs necessary for the functioning of the organisation which cannot be directly linked to the implementation of the Action. They amount to a maximum of 7% of the total Direct Costs.
International Drug Prices Indicator	This is regularly updated and provides a spectrum of prices from pharmaceutical suppliers and procurement agencies, based on their current catalogues or price lists. It also contains prices obtained from international development organisations and government agencies, and represents an essential tool to be used by Contracting Authorities to compare prices. During the Process of Prequalification of Medicines or Medical Devices the Contracting Authority must consult the International Drug Prices Indicator. When comparing the costs of pharmaceutical products, the cost of the whole treatment -not just the cost per unit- should be taken into consideration. Since the choice may also be influenced by other factors such as transportation charges, storage requirements and shelf-life, the total cost should be considered.
International Organisations	An international public sector organisation set up by intergovernmental agreements, a specialised agency set up by such organisations, the International Committee of the Red Cross and the International Federation of National Red Cross and Red Crescent Societies.
International publication	Involves advertising the Contract Notice in a specialised site on the internet (and possibly also on the Contracting Authority's website) and simultaneously in a periodical published at least in the country of operation, or if this is not possible by any other relevant means available. The time limit for receipt of tenders shall be no less than 30 calendar days from the date on which the contract notice is published.
Inventory	List of supplies, products, equipment and any other goods.
ISO Standards	The International Standards Organisation publishes standards on quality of products and processes relevant in the procurement of food and medicines. Some relevant standards include: a) ISO 45004 – ISO/IEC 17020 in the food production sector, contracted to verify and certify quantity, quality, packing and marking of food supplies; and b) ISO13485/ ISO13488, ISO9001/ISO9002, ISO9001/2000 or equivalent – relevant for the Pre-qualification of Medicines (equivalents are EN46001/ EN46002, Japan QS Standard for medical devices 1128, United States QS (21 CFR part 820).
Joint Management	Method of implementation of the EU budget by which the EC entrusts some of its implementing tasks to an international organisation complying with international standards with regard to the “four pillars” (i.e. accounting, internal control, audit and procurement). The EC keeps some prerogatives of control and verification, as required, as required by the Financial Regulation. All Contribution Agreements signed between DG ECHO and the UN are done under the “joint management” modality.
Letter of Intent	An overview on the essential elements of an Action that can be required by the HIP for the first assessment round of Actions. It allows DG ECHO to have a global view on how all the interested partners expect to cover the identified needs, without having to draft a full Single Form. If a Letter of Intent is selected, the Partner is invited to submit a Single Form which will form the basis of the final assessment.
Local Partner	An organisation (NGO or local authority) which assists a Partner with the implementation of the Action at local level. A Local Partner is always an Implementing Partner.
Local publication	Involves advertising the Contract Notice in a periodical published in the country of operation or, if this is not possible, by any other relevant means available. The time limit for receipt of tenders shall be not less than 21 calendar days from the date on which the contract notice is published.
Malnutrition	Malnutrition results from deficiencies, excesses or imbalances of energy, protein and other nutrients. The vast majority of malnourished individuals in the developing world experience under-nutrition (a deficiency of energy, proteins or vitamins and minerals) as opposed to over-nutrition (an excess of certain food components such as satured fats and added sugars in combination with low levels of physical activity, normally resulting in obesity). Acute malnutrition, with its main charateristic of wasting, occurs as a result of rapid weight loss or a failure to gain weight within a relatively short period of time. Recovery from wasting is relatively quick once optimal feeding, health and care are restored. Wasting results from short term but usually critical deficiencies in macronutrients (fat, carbohydrate and protein) and micronutrients (vitamins and minerals), and is often linked to disease. Usually divided into moderate acute malnutrition (MAM) and severe acute malnutrition (SAM), which combine as global acute malnutrition (GAM). Chronic malnutrition, with its main charateristic of stunting, is a slow, cumulative process, resulting from sustained, but sometimes subtle nutrient and micro-nutrient deficiencies. Stunting is a failure to grow in stature, and occurs as a result of inadequate nutrition over a longer period, which is why it is also referred to as a chronic malnutrition. Stunting is not a good indicator of growth failure in emergencies as it does not reflect recent changes and requires a long-term response.
Mandatory Principles	Chapter 2 of Annex IV sets out the Mandatory Principles on procurement which are obligatory and must be observed by any Partners in the implementation of any Action.
Mark-up	These are price increases applied by the HPC to the different supplies in order to cover its costs. Mark ups should be defined by categories or families of products taking into account the specific costs associated with the purchase and storage of the products by the HPC. Mark ups should be established with due regard to the principle of non-profit making that rules the overall functioning of an HPC.
Medical Device	An instrument, apparatus, implement, machine contrivance, implant, in vitro reagent, or a component that provides a diagnosis, cure, mitigation, treatment, or prevention of a disease or condition, which does not achieve its intended use by being metabolized or through a chemical reaction. Examples of Medical Devices include: walking stick, surgical instruments, contact lens lubricants, condoms, stethoscopes, insulin syringes and needles, wheelchairs, hearing aids, implantable devices, Magnetic Resonance Imaging (MRI), and Computed Tomography Imaging (CT). Therefore, Medical Devices include an enormous variety of existing healthcare items, and many new forms are being constantly invented. The Global Medical Device Nomenclature (GMDN) system designates 12 categories of Medical Devices consisting of more than 10,000 generic groups.
Monitoring Agency	An internationally recognised inspection company or grouping of internationally recognised companies; preferably accredited to the standard norm ISO 45004 – ISO/IEC 17020 in the food production sector, contracted to verify and certify quantity, quality, packing and marking of food supplies. When awarding contracts of a value of more than EUR 300,000, the Humanitarian Organisation shall contract, except in case of urgent Actions, a Monitoring Agency responsible for verifying and certifying the quantity, quality, packing and marking of supplies. The Humanitarian Organisation shall include in the tender and contractual documents the necessary provisions as to assure the right of access and monitoring of the Monitoring Agency.
Multi-donor	Financing modality whereby DG ECHO and other donors contribute to an Action or programme of an International Organisation. All components of the Action or programme must be eligible for DG ECHO funding (i.e. they must be in line with the Humanitarian Aid Regulation). DG ECHO's contribution is a fixed amount (and not a percentage).
Negotiated procedure	A negotiated tender procedure is not an Open Tender, but requires the Contracting Authorities to invite simultaneously and in writing the Candidates of their choice to negotiate the terms of the contract. The written communication shall be the means by which the Contracting Authorities make known their intention to launch procurement procedures and shall contain the same information as a Contract Notice. The number of Candidates invited to negotiate shall not be less than 3, provided that a sufficient number of Candidates satisfy the selection criteria. In any event, the number of Candidates invited shall be sufficient to ensure genuine competition.
Negotiated procedure with a single tender	See Single Bid Negotiated Procedure.
Offer	Used specifically as a term to denote both a bid, including (Negotiated Terms and Conditions offered by a Candidate in a Negotiated Procedure.
Open tender	Tender procedures are open whenever all interested economic operators may submit a Tender after Publication of a Contract Notice. Contracting Authorities shall inform Tenderers of the outcome of the procedure by means of an Award Notice.
Operational Leasing	Rental Agreement. To be distinguished from Financial Leasing.
Partial Funding	It refers to both co-financing or multi-donor
Overhead costs	These are defined as recurring costs of running an organisation; necessary for the legal and regular functioning of the HPC. They cannot be directly linked to or caused by a specific contract.
Partner	A Humanitarian Organisation which has signed one of the following partnership agreements: the Framework Partnership Agreement with Non-Governmental Organisations, the Framework Partnership Agreement with International Organisations and the Financial and Administrative Framework Agreement between the United Nations and the European Community..
Pharmaceutical product	The procurement of medicinal drugs for human use (veterinary products are excluded from these provisions) is subject to Special rules provided in Annex IV, Chapter 4 to ensure quality of the products. These include rules on the Pre-Certification of Candidates, Pre-qualification, and the observance of certain quality standards such as ISO and EN standards and GMP, GDP GSP.
Pre-established Stocks	Stocks established before the day of the submission of the Action proposal.
Pre-positioning of Stocks	The constitution of emergency stocks and materials not intended for immediate use, and without a direct link to an individual humanitarian crisis, with the objective of reinforcing the emergency/disaster preparedness in third countries. Synonym for “Stockpiling”.
Pre-certification or Pre-Qualification of candidates	It is the process undertaken in defining a product or service needed, obtaining offers or quotes from enterprises to supply the product or service, and examining the product or service offered against the specification and the facility where the product or service is prepared against common quality assurance standards. Any procurement of pharmaceutical products and medical devices must be based on this. Meaning that, in derogation to the General Rules & Procurement procedures and irrespectively of the value of the contract to be awarded, the Contracting Authority shall launch a Negotiated Procedure by inviting simultaneously and in writing only pre-qualified potential Candidates of their choice. Whenever feasible, however, the number of Candidates invited shall be sufficient to ensure genuine competition. The purchase of Pharmaceutical products and medical devices shall be based on a pre-qualification scheme implemented by either the WHO itself, or by a Stringent Regulatory Authority; a UN organisation; a Non-Governmental Organisation, a Humanitarian Procurement Centre or a specialized commercial operator which meets WHO recommended norms and standards for carrying out pre-qualification. Pre-qualification is required for all Pharmaceutical products regardless of their composition and place of manufacture/registration. The principles upon which any Pre-qualification procedures should be based are laid out in Annex IV, 4.3 c).
Primary Emergency (financing) Decision	One of the four categories of financing Decisions designed to cover the first immediate needs of the people concerned in the hours and days after the outbreak of a new humanitarian crisis. Such crises are unpredictable in terms of where, when and how they strike. It is a first initial response which does not aim to cover all needs. The Primary Emergency Financing Decision is appropriate in the case of sudden onset of conflicts or natural disasters such as earthquakes.
Property Contract	A Contract which covers the rental of land, existing buildings or other real estate.
Proportionality	A Mandatory Principle in Annex IV which any aware procedure must observe in the procurement processes. The procedures followed for awarding a contract must be proportionate to the value of the contracts; the higher the value the higher the more demanding the procedures.
Pubblication	Publication of the Contract Notice is essential to an Open Tender. Depending on the circumstances, Publication may be either International or Local.
res iudicata	A matter already adjudicated upon that cannot be raised again by the same or another court
Right of access and control	Contracting Authorities are required to grant the European Commission, the European Anti-Fraud Office (OLAF), and the Court of Auditors complete information on the procurement procedures, documents, bid evaluations, award recommendations and contracts as well as on the spot access to their documents as well as those of any other contractors who have received Union funds.
Revolving funds	A revolving fund is when a reserve of money (the fund) is used to lend to one or more borrowers. Over a given period of time, the borrower is expected to repay the original sum that restocks the fund.
Rule of Nationality	Rule which determines in which countries the suppliers, contractors and service providers of the Partners of DG ECHO must be established.
Rule of Origin	Rule which determines from which countries the supplies and materials purchased by the Partners must originate.
Sanctions	In the event of irregularity or fraud in the procurement rules and procedures contractual and regulatory sanctions may be applied by ECHO, including the suspension of payment, the termination of the Agreement and the refusal to cover any expenditure incurred by the Contracting Authority related to the contracts in question with EU financing. This is without prejudice to the adoption of financial and administrative sanctions in accordance with the Financial Regulation and the Implementing Regulation (in particular, Articles 96, 114 (4) of the FR and Articles 134 (b) and 175 IRFR).
Service Contract	A Contract which covers all intellectual and non-intellectual services other than those covered by Supply Contracts, Works Contracts and Property Contracts. Service Contracts equally comprise Study and Technical Assistance Contracts. A Study Contract is a Contract concluded which includes studies for the identification and preparation of projects, feasibility studies, technical studies and audits. A Technical Assistance Contract is a Contract where the contractor is called on to play an advisory role, to manage or supervise a project or to provide the consultancy specified in the Contract.
Service Provider	An economic operator, natural or legal person, who provides services on the basis of a Service Contract.
Single bid negotiates procedure	Contracting Authorities may, in certain exceptional cases resort to a negotiated procurement procedure with only one Candidate. The Mandatory Principles still apply and the Contracting Authority is still obliged to negotiate the best terms and conditions possible in the circumstances.
SINGLE FORM	The form to be completed by the Partners for the submission of their Action proposals and reports. The single form evolves along with the Action it refers to.
Single Largest Donor	Contributor to an Action providing the highest individual contribution.
Special Conditions of an Agreement	Contractual clauses either pre-established or variable establishing particular conditions ruling in the Agreement. It includes also the Specific Conditions.
Specific Conditions of an Agreement	Provisions in the Special Conditions of the Agreement which are not covered by other parts of the Agreement but which are necessary for the proper implementation of the Action. Specific Conditions are used either to supplement (i.e. add something to) or to derogate from (i.e. remove something) the Agreement and the rules applicable to it. They may also establish the nature of the implementing modalities of a Action. The Specific Conditions are included in Article 8 of the Special Conditions of the Agreement.
Special Rules	Chapter 4 of Annex IV sets out particular requirements or exceptions for procurement which are mandatory to all Partners when they deal with Urgent Actions; pharmaceutical products & Medical Devices; the procurement of Food Aid; Pre-established Stocks; Framework Contracts; or Humanitarian Procurement Centres.
Specialised Agencies of the Member States	National public-sector bodies or bodies governed by private law but subject to special public supervision and governance rules with a humanitarian aid mission. The definition of a “Member State's Specialised Agency” depends on the national legislation. Not all Member States have such organisms. Their mandate should explicitly relate to humanitarian activities, they should have a legal entity and the authority to sign contracts.
Stockpiling	The constitution of emergency stocks and materials not intended for immediate use, and without a direct link to an individual humanitarian crisis, with the objective of reinforcing the emergency/disaster preparedness in third countries. Synonym for “Pre-positioning of Stocks”
Stocks of Goods	Consumables which do not have an economic value after minimal use and therefore do not constitute Durable Equipment.
Stringent Regulatory Authority	A National Drug Regulatory Authority of a country participating either in the PIC/S (Pharmaceutical Inspection Convention and Pharmaceutical Inspection Cooperation Scheme) and/or the ICH (International Conference on Harmonization of Technical Requirements for Registration of Pharmaceuticals for Human Use) initiatives.
Supplier	An economic operator, natural or legal person, who supplies products on the basis of a Supply Contract.
Standards	The references in Annex IV to International or European standards for quality assurance of products are neither exhaustive, nor definitive. Contracting Authorities shall take as a reference any internationally recognised standard that may be set and the updates and revisions of the standards mentioned herein. See ISO.
Standard Operating Procedures - SOPs	Pre-qualification of Medicines should be based, amongst other things, on availability of appropriate quality systems and SOPs.
Stocks	The Contracting Authority or its Implementing Partners may incur expenditure before the date of submission of the Action proposal and related to the constitution of stocks of goods and equipment for use in connection with the Action for which the contribution is awarded. This expenditure is eligible for EU financing provided that the procurement rules of the Contracting Authority had been correctly applied and with due regard to the Mandatory Principles.
Study Contract	A contract concluded which includes studies for the identification and preparation of projects, feasibility studies, technical studies and audits.
Supply Contract	A Contract which covers the purchase, Operational Leasing, rental or hire purchase, with or without option to buy, of products. The delivery of products may in addition include sitting, installation and maintenance.
Suspension of the Implementation of the Action	A suspension of the implementation of the humanitarian Action is a temporary stopping of the activities of the Action, due to circumstances which make it impossible or excessively difficult to continue.
Supplementary Agreement	An agreement between the Partner and DG ECHO, reflecting a modification to a signed Agreement and containing the amended Articles of the initial Agreement.
Technical Assistance Contract	A contract where the contractor is called on to play an advisory role, to manage or supervise a project or to provide the consultancy specified in the contract.
Technical Specifications	Tendering requirements for Supply and Works Contracts that (i) set out the characteristics of supplies to be procured, such as quality, performance, safety and dimensions, or the process and methods for their production, or the processes or methods for their provision, including any applicable administrative provisions, or (ii) address terminology, symbols, packaging, marking or labelling requirements, as they apply to a supply or related services, or (iii) set out conformity assessment procedures prescribed by a Contracting Authority.
Tender	Used specifically as a term to denote both a bid (terms and conditions) offered by a Tenderer in an Open Tender Procedure.
Tender documents	Provide detailed information on what the procurement procedure hopes to obtain and the procedures to be followed. It should include all the elements contained in the Contract Notice but in more detail. They may be provided to all potential tenderers upon request or else posted in their entirety online. They include the terms of the future contract.
Tenderer	An economic operator who has submitted a tender offer.
Terms of Reference (ToR)	Requirements for a Service Contract which accurately define the characteristics of the service required with regard to the purpose for which it is intended and sets out conformity assessment procedures prescribed by a Contracting Authority.
Thresholds	Annex IV, point 3.6 sets thresholds and procedures for procurement which are mandatory for Partners subject to the “A” Control mechanism. Depending on the value and type (whether Supply & Service or Works Contract) of the contract to be awarded, these rules set which level of publication and procedure the procurement should follow.
Tied Aid	This is when aid is given to a beneficiary subject to some condition for example on the origin of the supplies or nationality of the tenderers and candidates. Annex IV clearly states that Tied Aid is not consistent with the principles of impartiality and independence of EU Humanitarian Aid and that procurement procedure must be free of any interference or conditionality due to tied aid.
Transparency	A Mandatory Principle in Annex IV which any award procedure must observe in the procurement process. This is upheld by publication and advertising of contract notices, genuine competition and impartiality in the procurement procedure.
Unilateral Modification	An Amendment method whereby the Partner informs DG ECHO of changes the Partner introduced.
Unit Costs	Costs incurred by a company to produce, store and sell one unit of a particular product. Unit costs include all fixed costs (i.e. plant and equipment) and all variable costs (labour, materials, etc.) involved in production. Unit costs may be a single sample or represent averages per unit per output.
Urgent Actions	Actions which meet immediate and unforeseeable humanitarian requirements generated by sudden natural or man-made disasters. Also Actions which have to start immediately and where delays in awarding procurement contracts would put the respect of the principle of humanitarian aid at risk. These Actions must be identified in Article 8.3 of the Agreement. Actions financed by European Commission’s primary emergency and emergency decisions are always Urgent Actions. The concept of urgency also includes any situation financed under other types of financing decisions, duly justified, in which the implementation of the humanitarian Action has to start immediately and the delay incurred by putting out to tender procurement contracts would put lives at risk. The concept of urgency cannot be based on circumstances that can be attributed to the Contracting Authority. Contracting Authorities may place their orders, whatever the estimated value of the Contract, on the basis of a negotiated procedure with single tender. Annex IV, point 4.2.
Voucher	Vouchers provide access to pre-defined commodities or services. They can be exchanged in designated shops or in fairs and markets. The vouchers may be denominated either in cash, commodity or service value. These are described respectively as value-based, commodity-based or service-based vouchers. Combined vouchers also exist. Vouchers have been most commonly used to provide access to seeds and livestock
Winding-up costs	Winding-up costs consist of costs committed after the end of the implementing period of the Action (but in any case before the submission of the final reports) that are necessary to fulfil the partner's contractual obligations. These winding-up costs have to be caused by impossible to budget circumstances that arise after the end of the implementing period of the Action. Examples: running costs such as fuel and maintenance and day-labour related to winding-up activities. Winding-up costs are eligible if agreed by DG ECHO at the final liquidation stage.By opposition, costs committed before the end of the implementation period of the Action and materialized before the final report (such as drafting the final report, distributing last remaining supplies, etc.) are not winding-up costs.
Work Contract	A Contract which covers either the execution, or both the execution and design, of works or the realisation, by whatever means, of a work corresponding to the requirements specified by the Contracting Authority. A 'work' means the outcome of building or civil engineering works taken as a whole that is sufficient by itself to fulfil an economic or technical function.
Works Contractor	An economic operator, natural or legal person, who executes works on the basis of a Works Contract.
Worldwide Decision	A type of Financing Decision intended to provide a coherent framework for all humanitarian aid actions covered by DG ECHO's annual operational strategy. The duration of each decision is 24 months, starting on 1 January of each year, and all DG ECHO partners and Member States' Specialised Agencies are identified as potential partners for the implementation of these financing decision.