How we do business
Procurement is the overall process of acquiring goods, civil works and services which includes all functions from the identification of needs, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration through the end of a services’ contract or the useful life of an asset.
Depending on the nature and size of the project and its procurement elements, UNDP may use any of the following competitive methods set our in UNDP relevant guidelines to procure goods, civil works or services:
- Open International Competition
- Limited International Competition
- Local and/or National Competition
The types of solicitation practiced by UNDP are as follows:
- Expression of Interest (EOI) - Written communication by a supplier to provide information about its products, resources, qualifications and experience, in response to a particular EOI
- Request for Quotation (RFQ) - Less formal solicitation, value below US$ 100,000, standard specifications, product readily available on the market
- Invitation to Bid (ITB) - Formal solicitation, mainly for goods, value above US$ 100,000, lowest price compliancy and technical competency determining factors
- Request for Proposal (RFP) - Formal solicitation, mainly for services, value above US$ 100,000, requirements possibly met in various ways, overall best solution will win the contract, not necessarily lowest price
The main principles which guide UNDP procurement in general and for extension apply to any UNDP procurement project are:
- Best Value for Money, which is the core governing principle and means selecting the offer which presents the optimum balance of quality and costs meeting the requirements of the organization.
- Fairness, related primarily to the treatment of suppliers. Fair and open competition is the default procurement method in UNDP. Business units are therefore responsible for providing the widest possible access to UNDP contract opportunities for the supply community through open competitive procurement processes, broad advertisement, unbiased specifications, clear and unambiguous evaluation criteria.
- Integrity, as demonstrating the core values of the UN in daily activities and behaviors: act without consideration of personal gain; resist undue political pressure in decision-making and actions taken; not to abuse power or authority; stands by decisions that are in the organisation’s best interest; and takes prompt action in cases of unprofessional or unethical behaviour
- Accountability, as taking ownership of all responsibilities and commitments; delivering outputs for which one has responsibility within prescribed time, cost and quality standards; operating in compliance with financial rules and regulations. This must be supported by documenting the procurement process, signatures on key documents, with clear justifications for decisions made, thus leaving a clear audit trail of the actions and decisions taken
- Transparency, as demonstrating openness to stakeholders in the procurement process and in compliance with rules and regulations. Transparency is especially relevant in the solicitation stage in demonstrating the fairness and integrity of the process to bidders through clear instructions, release of information and the evaluation process (e.g. public bid opening), vendor protest procedures and publication of contract awards
- Effective International Competition is the default solicitation method of all UNDP procurement applicable for contracts exceeding USD 150.000. This involves providing all eligible prospective vendors globally with timely and adequate notification of UNDP’s requirements - and fair and equal opportunity to bid for the required goods, works or services
- The Best Interest of the Organisation. In practice the specific procurement rules and procedures established for the implementation of a programme are contingent upon the individual circumstances of the particular case. Procurement is ultimately a support function, albeit a strategic function, that supports economic and efficient delivery of UNDP’s programmatic and organisational outcomes
As part of its commitment to the environment and sustainable management of natural resources, UNDP actively promotes and implements Green procurement by requiring its staff to conduct all activities, including contracting with other entities, in a resource-efficient manner. UNDP's Green procurement policy is based on the following four "R" strategies:
- Re-thinking the requirements to reduce environmental impact;
- Reduce materials consumption;
- Recycle materials/waste; and
- Reduce energy consumption
UNDP is therefore selective in its choice of products, processes and services, taking into consideration the effects of energy consumption, toxicity, ozone depletions, radiations, and the use of recycled materials.
Supplying the UN
Interested suppliers are invited to visit the following UNDP and UN websites frequently for procurement guidelines, information and notices:
UNDP Website: http://www.undp.org/
UN Web Buy: http://www.unwebbuy.org/
UN Global Market: http://www.ungm.org/