The ISA Group’s Supplier Information System is managed by PAR SERVICIOS INTEGRALES S.A., leader of UNION TEMPORAL PAR UNILINK, hired by ISA to manage and operate the system, which includes three processes:

To strengthen our alliances and to ensure that the procurement processes is based on the development of fair, trustworthy relationships, ISA has created several transparent, flexible processes for the acquisition of goods and services.

Here, current and potential suppliers can find Agreement 108, which contains detailed information about the contractual regime applied:

To clarify the guidelines for handling these issues, ISA also makes available the Suppliers’ HSE Manual.

ISA set up a set of interrelated elements whereby the company seeks to generate a culture of prevention, application of the current regulation, and control of Money Laundering and Financing of Terrorism activities.

This way, ISA demonstrates its commitment to the observance of ethical and legal principles on business achievements.

ISA guarantees quality during the acquisition of goods and services, trusting in the high standards of its suppliers. This is how ISA develops its procurement processes:

• If there is a significant number of certified suppliers for the purchase, ISA will demand the Quality Assurance Certificate as a requirement for participation.
• If there is not a significant number of certified suppliers, whoever is responsible for managing the purchase will demand the quality assurance requirement according to the information available in the market.
• When the contract object includes the acquisition of goods and services, ISA may independently specify the level of quality assurance requirements for goods and services.

Public request for bids

ISA believes in the benefits of feedback and dialogue to identify improvement opportunities, increase satisfaction levels, and ensure continuity in the delivery of its services.

According to our policies, we require the corresponding guarantees and insurances on the object of the contracts, in order to transfer risks which direct control is the responsibility of the supplier.

In the procurement processes, ISA will identify the risks relevant to the object and scope of the contracts:

• For identified risks, ISA will determine the maximum values of losses as per the type of contract, which may emerge if such risk situations arise.
• ISA will define adequate policies subject to the limits and sublimits to be contracted or requested according to the stage of the procurement process, based on the guide, to determine guarantees and insurance for each type of contract.
• The issuance of policies that are enforceable against the supplier must comply with the requirements specified in the guide to determine guarantees and insurance for each type of contract.
• ISA will accept policies upon revision of the original documents issued by the insurance company and upon compliance with the conditions provided, as per the guide for reviewing guarantees and insurances.
• Additional clauses that modify the main contract term or value will result in the extension of the term or the insured amount of policies. The original documents of the guarantees, as well as the insurance policies (whenever possible), will be part of the contract documentation that must be filed in the locations intended for such purpose by our Documentary Management.
• Policy information will be recorded in the SAP Integrated Information System in the module provided for this purpose.
• ISA will manage the policies so that their validity and coverage can be guaranteed with accuracy and timeliness.
• The supplier will be in charge of any extension or addition to the guarantees and insurance policies required according to the contract needs; unless the extension or addition do not arise from causes attributable to the supplier. In this case, the accrued costs will be reimbursed by ISA in Colombian pesos.
• The guarantees and insurance policies are incidental to the contract and are constituted without prejudice to the fulfillment of all the obligations arising thereof. They will not be cancelled without ISA’s written authorization.
• In the case of Temporary Joint Ventures or Consortiums, guarantees and insurance policies must include all members of such association. Likewise, the business name or corporate name of the policyholder(s) must be correctly registered.
• The guarantees must be issued by entities legally incorporated in Colombia. These guarantees must be issued to private entities or private individuals. The form and content of these guarantees must be satisfactory to us. In certain cases, the bank guarantee issued by a national or international bank authorized by ISA may also be accepted as a guarantee.

The guarantees and insurance policies usually required by ISA, depending on the type of contract and its conditions, are the following: