Procurement is the general process by which civil works, goods and services are obtained, from the identification of needs, selection and request of resources, contract preparation and adjudication and all the following administration phases to the end of a service contract and a good’s lifespan.  

As a public organization committed to supporting developing economies that has been trusted donor’s funds, the United Nations Development Programme stands by the following principles:

The best quality-price ratio, which consists on selecting the best offer that satisfies the final user’s needs and presents the best return of investment. Having the best quality-price ratio is a result of several factors such as quality, experience, the provider’s reputation, cost, benefits of the good’s lifespan and the measurement of how the product or service allows the organization to achieve their social, environmental or strategic objectives.

Equity, integrity and transparency, which ensures that all competitive processes are fair, open and based on rules. All potential providers must receive the same treatment and the process must meet clear evaluation criteria, unequivocal instructions, realistic requirements, norms and procedures that are easy to understand.  

Effective international competition, understood as giving each possible provider adequate information on UNDP requirements, as well as equal opportunity to participate in procurement actions and restricting them only when it is necessary for achieving the organization’s development goals.

In the UNDP’s best interest, which means any commercial transaction must be adjusted to the UNDP and United Nation’s mandates and principles.

UNDP procurement is based on competitive bidding. According to complexity, size, budget and other elements, the most utilized bidding methods are:

Micro-procurements

Micro-procurements are a simplified and informal method of procurement destined for the acquirement of easily attainable goods, standardized services and small infrastructure which contracts don’t exceed USD 10.000. Micro-procurements can be carried out with at least two providers and the contract goes out to the one with the lowest price.

Request for Quotation (RFQ)

An RFQ is an informal invitation to send a quotation, generally for goods, services or civil works between USD10.000 and USD200.000. Prices and other commercial terms and conditions are requested and the contracts given to lowest technically acceptable price. 

Invitation to Bid (IAL in spanish)

An IAL is a formal invitation to present an offer generally associated with clear and concise requirements with an estimated value of USD200.000 or more. Normally the price is the only determining factor when it comes to the contract. When all technical criteria are met, the contract goes to the provider with the lowest price.

Request for Proposal (RFP)

An RFP is a formal request to present a proposal generally associated with needs and services that cannot be clearly or concisely defined, with an estimated value above USD10.000. Price is only one of several factors that make up evaluation criteria. Contracts are given to qualified bidders whose offer meets the requirements established in the bidding documents and has been evaluated as the lowest cost for the organization.

In some cases, there is an exception to competition, hiring directly instead. This usually happens when there exists a Long-Term Agreement (LTA), be it globally (HQ) or locally (country office).

Evaluation process

Evaluation is the process of assessing offers and proposals according to the established method and criteria with the objective of getting the best price-quality ratio. It is carried out fairly and transparently to guarantee equal conditions for each bidder. 

The Evaluation Committee consists of three to five members according to the nature, complexity and value of the procurement activity. The Committee is presided by one person with experience, normally a member of the UNDP Programme Section. Membership is approved by the country’s UNDP High Management. 

In the selection of members of the evaluation team the type of hire is considered. Finance, client organization or national representatives can only participate from the process as observers. All observers and team participants of the evaluation team sign a Declaration of Impartiality.

Protest procedure for suppliers

The protest procedure for UNDP protest suppliers gives the opportunity of appeal through a competitive procurement process. In case that a Proponent believes they have received fair treatment, the following link offers more details on UNDP protest procedures for suppliers. Check UNDP Policy on fraud and other corrupt practices.

Contract Adjudication

All previous contests (winner’s name and sum of contract) can be found in the Bidding Archive .

How to access UNDP bidding call ups?

The UNDP publishes its bidding call ups on the organization’s corporate websites at the HQ and on a local level: https://procurement-notices.undp.org

Related Resources

• UN Supplier Code of Conduct.
• Procurement Protest and Vendor Sanctions.
• Qualification and Eligibility of Vendors.

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