UNDP procures goods and services by soliciting bids through a competitive process. The following methods are used for the procurement of goods and services:
Request for Quotation (RFQ)
This is the most flexible and the least formal method that is used for procuring goods, services and/or works. RFQs call for a written quotation.
RFQ applies to contracts exceeding US$2,500 but less than US$100,000
Invitation to Bid (ITB)
An ITB is normally used when an entity is not required to propose technical approaches to a project activity, or to offer management or supervision of an activity. ITBs are used when an entity has to provide its cost requirements to meet precise specifications sought from UNDP. This is normally the case when UNDP buys goods. It may also apply to work contracts and services that can be expressed quantitatively and qualitatively.
ITB applies to contracts exceeding US$100,000.
Request for Proposal (RFP)
RFP is used when the inputs and/or outputs cannot be quantitatively and qualitatively expressed at the time the invitation is made, for example, consulting or similar services. An RFP may also be used for the purchase of complex goods when one is not sure of the functional specifications and wishes to seek proposals.
RFP applies to contracts exceeding US$100,000.00.