Procurement Methods

UNDP Procurement

If the value of the goods, services or simple works to be procured is below USD 5,000, Micro-Purchasing may be used. This method uses a simple canvassing template, and procurement staff may obtain pricing information over the phone, internet, or by visiting local vendors. Micro-purchasing can normally be done in 1 or 2 days. Award is made to the lowest price available.

A Request for Quotation (RFQ) is an informal invitation to submit a quotation, used for goods/services/civil works valued between USD 5,000 and USD 100,000. Depending on the complexity of the requirement, vendors will be given 3 to 10 business days to respond to an RFQ. Prices, and other commercial terms and conditions are requested and award is made to the lowest priced technically acceptable offer.

An Invitation to Bid (ITB) is a formal invitation to submit a bid, usually associated with requirements that are clearly and concisely defined, with an estimated procurement value of USD 100,000 or more. Normally price is the sole determinant in making an award. Where all technical criteria are met, an award is made to the lowest bidder. Vendors will normally be given 15 business days or more to respond, depending on the complexity of the requirement. In some cases involving large and complex contracts, vendors may be asked to pre-qualify.

A Request for Proposal (RFP) is a formal request to submit a proposal usually associated with requirements for services, which cannot be clearly or concisely defined, with an estimated procurement value of USD 100,000 or more. Price is only one of several factors comprising the evaluation criteria. Award is made to the qualified bidder whose bid substantially conforms to the requirement set forth on the solicitation documents and is evaluated to be the lowest cost to UNDP. Vendors are normally given 15 business days or more to respond to an RFP. In some cases, vendors may be required to pre-qualify.

Exceptionally and when it is deemed in the best interest of UNDP, procurement staff may buy goods or services through Direct Contracting.

The following table provides a summary of the various Procurement Methods:

UNDP Procurement Table Summary