UN Procurement Procedures
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UN Procurement Procedures. Formal procurement method: ITB/RFP. Informal procurement method: Shopping/RFQ. Request for procurement action. Development of specifications/TOR/SOW. Identification of suppliers Market research. Selection of procurement method. The Procurement Process.

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The procurement process

Formal procurement

method: ITB/RFP

Informal procurement

method: Shopping/RFQ

Request for procurement

action

Development of

specifications/TOR/SOW

Identification of suppliers

Market research

Selection of procurement

method

The Procurement Process

Strategic analysis/

Procurement plan


The procurement process1

RFQ – Request for Quotation, Up to USD30,000

Used for Goods and Services

Identify potential Suppliers

Document 3 Quotatations

Used for Services

(can incl. Goods)

RFP Request for Proposal, Over USD30,000

Used for Goods and Civil Works

ITBInvitation to Bid, Over USD30,000

Contract management

Formal procurement

method: ITB/RFP

Contract management

Separate Evaluation

Evaluation

Lowest Price

The Procurement Process

Informal

‘Shopping’

Less than USD2,500

Advertisement

Preparation of formal

solicitation documents

Advertisement

Preparation of formal

solicitation documents

Bid Receipt & Opening

Separate Bid Receipt & Opening Tech & Fin

Contract approval process

Contract approval process

Contract award

Contract award

Lowest Priced Compliant Bidder

Best Scored bidder


The procurement process2

Informal

Used for Goods and Civil Works

RFQ – Request for Quotation, Up to USD30,000

Used for Goods and Services

Identify potential Suppliers

Document 3 Quotatations

ITBInvitation to Bid, Over USD30,000

Used for Services

(can incl. Goods)

RFP Request for Proposal, Over USD30,000

Post Qualification/Pre-shipment Inspection

Prequalification

Expression of Interest

‘Shopping’

Less than USD2,500

Advertisement

Preparation of formal

solicitation documents

Advertisement

Preparation of formal

solicitation documents

Contract management

Formal procurement

method: ITB/RFP

Bid Receipt & Opening

Separate Bid Receipt & Opening Tech & Fin

Separate Evaluation

Evaluation

Lowest Price

Contract approval process

Contract approval process

Contract award

Contract award

Contract management

Lowest Priced Compliant Bidder

Best scored bidder

The Procurement Process


Additional processes
Additional processes

  • Expression of Interest

    Used as part of market researchIdentifying and prequalifying suppliers

    Keep abreast with new developmentsDoes not necessarily result in procurement

  • PrequalificationCan form part of ITB/RFP

    Used for high-risk goods such as pharmaceuticals, condoms

    Used for where high impact if delivery fails, such as elections

    Confirming manufacturing, quality standards, other issues i.e. child labor

    Very specialised for pharmaceuticals

  • Post Qualification/Preshipment InspectionUsed as part of testing pre-contract stageEnsuring equipment works under special conditions


Samples of eoi
Samples of EOI

Agency website, UNPD

Agency website, UNDP


Un procurement procedures

Request for Proposal (RFP)

  • Application:

    • Used for formal competitive bidding when requirements cannot be described in a definite or complete manner, i.e. when a technical or other solution is sought (TOR).

    • Normally used for procurement of works and services. Two-envelope system (technical and financial proposal).

  • Important:

    • Evaluation Criteria must be part of RFP.

  • Award of contract:

    • Select proposal that offers the best value in accordance with evaluation criteria.


Rfp process illustrated
RFP Process Illustrated

  • Based on actual case

  • Procument of Services results in RFP method

  • Project for Guard Security Service for UN offices in Pakistan

  • UNDP Pakistan country office requested UNDP/IAPSO in Copenhagen to undertake procurement on their behalf

  • Security service also for other UN Agencies in Pakistan

  • Case illustrates:EOI Pre-bidding meetingDetailed Tender DocumentationExamples of Evaluation Criteria related to ServicesExamples of OutcomesRFP resulting in Direct ContractingAnd another unexpected turn in events . . .

  • Confidentiality . . . Names and documentation

  • NB: RFP can also be done for goods, e.g. part of complete solution, or where there could be alternative or varied goods to meet the same need


Un procurement procedures
EOI

Reason

Supply market analysis

Needed to comply with UN Security Council requirements

Preqaulification

Published on IAPSO website

and in local media

Outcome

19 EOIs Received

8 Companies shortlisted


Un procurement procedures
RFP

RFP

Participation only for short listed suppliers in this case

Why? Control of process . . . Required 3 compliant bids

If no prequalification, all welcome to participate


What to look out for
What to look out for

  • Allow to bid on sections or only total requirements

  • Pre-bidding meeting

  • Clarifications and AmendmentsCommunicated to allSuggesting alternativesAdvise on short delivery times


Pre bid meeting
Pre-bid meeting

  • CVs for staff

  • Suggestions by suppliers

  • Letters rule

  • Detailed evaluation method not disclosed


Pre bid meetings and visits
Pre-bid meetings and visits

  • Open to suggestions

  • In UN’s interest to have compliant bids


Details
Details

  • Language

  • Checklist of documents

  • Use the correct format!!

  • Impressions and facts


Policies and standards
Policies and Standards

  • Quality Standards vary

  • Supplier Code of Conduct

  • NB:No pricing informationNumberingProprietary InfoConfidentiality


More details
More Details

  • Quote in requested currency

  • Note: Letter overrule figures

  • SignaturesCopies

  • Payment terms not negiotable


Deadlines
Deadlines

  • No exceptions!

  • Time difference

  • Envelopes


Opening and evaluation
Opening and Evaluation

  • Committee

  • Errors

  • Non-responsive bidsLateUnsignedIncompleteWrong format

  • Tech & Fin Proposals



Actual score sheet
Actual Score sheet

Company B

Company A

  • Ranking






Contract
Contract

  • Cancel processPoor processLack of fundsChange of needs

  • Flexibility and patience required


Performance security and payment
Performance Security and Payment

  • Bank guarantees/performance security

  • Payment terms not negotiable

  • 30 days after delivery

  • Could be staggered depending on services/goods

Page 31



Performance

Page 24

Performance

  • Crucial

  • Share information via UNGM

  • Vendor eligibility policies


Price schedule

Page 27

Price Schedule


Financial proposal s opening
Financial Proposal’s Opening

Company A

Company B


Financial proposal
Financial Proposal

Company A

Company B


Internal review of procurement process
Internal Review of Procurement Process

  • For all processes over USD30,000

  • Between 30,000 – 300,000 Local approval

  • Over USD300,000 approval at HQ level

  • Thresholds vary


Headquarter review
Headquarter Review

  • Review:

    ProcessValue For MoneyQuality AssuranceDocumentationOutcome:

  • Queried number, qualification and supervision of guards

  • Seeked report on performance of Company A (existing supplier)

  • Concerned about limited competitionand requested outcome of evaluation results

  • Performance report shows issues with supplier ...

  • Meeting with supplier to address issues

  • Rewarded for 6 months period and measures and stringent arrangements put in place to monitor


How the itb process differ
How the ITB Process Differ?

  • Used for goods and works where specific quantities are available.

  • Simplified process, comparison simple

    Instructions to bidders includes:

  • Incoterms 2000

  • Delivery dates FCA and FOB

  • Freight arrangements

  • After-sales service

  • Training

  • Spare parts

  • Deviations from specifications

  • Country of origin information and developing countries



Evaluation criteria
Evaluation Criteria

  • Compliance with GTAC

  • Supplier Criteria

  • Technical Specs

  • Price and Delivery Time


Price schedule1
Price schedule

  • Do NOT change format




Un procurement procedures

Practical Tips for Potential Vendors

  • Research UN agencies and traditional items/services required

  • Marketing your goods and services Look for EOI Post/e-mail information English on website Start where you are doing business

  • Register on www.ungm.org E-mail address Correct coding Key words Up to date Respond to reminders


Un procurement procedures

Practical Tips for Potential Vendors

  • Finding opportunitiesUNGM – Tender Alert ServiceAgencies’ websites

  • Always respond

  • Pay attention to:Deadlines, timezonesFormatLanguageCurrencyAddressing of envelopes

  • Seek clarification


Un procurement procedures

Practical Tips for Potential Vendors

  • Attend Bid Openings or ask Embassy/Consulate

  • Prepare to meet new challengesKits, training materials, after-sales serviceAwareness of environmental concerns

  • Be patient and perservere