UNDP has several contract modalities, amongst others:

• Lump Sum (Fixed Price Contract)
• Time and Material Contract
• Retainer Fee contract
• Percentage Contracts
• Long Term Agreements (Call off through contracts)

Long-term agreements (LTA) reduce administrative efforts by a single tendering exercise over the life of the arrangement. They are awarded on a 1-year renewable basis and exist on the country level as well as globally, administered by HQ.

Advantages include:

• quality assurance and legal requirements will have been dealt with at the outset;
• the supplier benefits in terms of planning stock levels and continuity of supply;
• a mutually beneficial longer-term working relationship can be established.