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1HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes HLCM PN WG Harmonization Procurement Process and Practice Harmonization.

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Presentation on theme: "1HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes HLCM PN WG Harmonization Procurement Process and Practice Harmonization."— Presentation transcript:

1 1HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes HLCM PN WG Harmonization Procurement Process and Practice Harmonization in Support of Field Operations Options for common UN procurement Animations

2 2HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes Background The document Common UN Procurement at the Country Level (Guidelines) was endorsed by the UNDG and HLCM in 2012 Based mainly on the General Assemblys Comprehensive Policy Reviews, progress reports from Delivering as One pilots; these documents encourage the UN System to increase efficiency, effectiveness and coherence at the country level. Purpose Facilitate common procurement at the country level, whilst respecting the processes, procedures of individual UN entities Recommendations for business processes for common procurement, sharing and developing common LTAs, and for common procurement review committees at the country level. Annexes include templates, forms, and tools required to move forward on common procurement. Common UN Procurement at the Country Level: Background and Purpose 1

3 3HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes Various options of UN cooperation in common procurement are elaborated in the Guidelines 1 Options for common UN procurement No or minimal common procure- ment Using existing LTAs or contracts of other UN orgs. Using joint LTAs and contracts (lead agency) Using procure- ment services of other UN orgs. Procuring from another UN organi- zation Using a joint procure- ment team These options are further elaborated on the following slides

4 4HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes Using existing LTAs/contracts of other UN organizations (1): Piggy-backing UN-B UN-A Supplier Purchase Order _____ UN-B 2 Invoice To UN-B 3 Contract / LTA _____ ______ UN-A Supplier 1 Goods Services 1

5 5HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes Using existing LTAs/contracts of other UN organizations (2): Re-Use Tender Result UN-B UN-A Supplier Invoice To UN-B 3 Contract / LTA _____ ______ UN-B Supplier 2 Goods Services ITB / RFP 1 1

6 6HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes Utilizing LTAs/Contracts of other UN entities 1 Usually the same terms and conditions are used: Prices, Delivery, Services, Obligations Depending on your agencys procurement procedures (no) further procurement review required Negotiation position of UN entities towards supplier improves indirectly (better service and relationship) Reduced staff workload: Better use of staff time and effort See common procurement survey (part 2 of this presentation) for most suitable commodity groups This model is pursued most frequently at the country level Needs approval of originating UN entity and supplier No direct leveraging of UN entities market power with suppliers in terms of volume bundling and lower prices LTA database with accurate and up- to-date data required Details and main benefitsChallenges FOR DISCUSSION

7 7HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes Procurement lead-agency: Joint solicitation UN-A Supplier 1Tender needs to specify number of contracts / LTAs and the applicable GTC for the resulting LTA(s) GTC X Purchase Order _____ UN-B UN-C UN-D 4a Rep. of UN-A Rep. of UN-B Rep. of UN-C Rep. of UN-D 1 Joint Specs possibly also joint financial, technical evaluation ITB / RFP 1 or x LTAs 1 2 Contract / LTA _____ ______ UN-A Supplier 3a UN-D UN-C UN-B Goods Services Invoice To UN-B, UN-C or UN-D 5 GTC X 3b Contract / LTA _____ ______ UN-B Supplier UN-C UN-D 1

8 8HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes Procurement lead-agency: Joint solicitation 1 All organizations receive the same price structure, rates, exemptions and/or service support agreed to with the provider or supplier Depending on your agencys procurement procedures (no) further procurement review required Direct leveraging of UN entities market power with suppliers Reduced staff workload: Better use of staff time and effort Negotiation position towards sup- plier improves directly (preferential terms and rates, better service) See common procurement survey (part 2 of this presentation) for most suitable commodity groups Assignment of lead agency: Who drives the procurement process as lead agency and takes on the workload; possibly balancing of workload on several agencies for different commodity groups Joint requirements specification and joint evaluation requires additional initial effort and coordination Details and main benefitsChallenges FOR DISCUSSION

9 9HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes Procurement from UN Entity 1 UN-B Purchase Order... based on MoU... _____ UN-B 2 Invoice To UN-B 3 MoU _____ ______ UN-B UN-A 1 UN-A Goods Services

10 10HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes Procurement from UN Entity 1 Can enable leveraging another UN entitys expertise in procuring certain goods or services Depending on your agencys procurement procedures (no) further procurement review required Reduced staff workload: Better use of staff time and effort Can be the fastest way to procure certain goods and services if they are on stock at another UN entity Handling fee may be incurred by another UN entity – reflecting the administrative overhead which was involved in procuring the goods or services Details and main benefitsChallenges FOR DISCUSSION

11 11HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes Outsourcing among UN entities: Procurement action UN-BUN-A Supplier GTC Contract / LTA _____ ______ UN-A Supplier 4 ITB / RFP 3 Invoice To UN-A 6 Invoice To UN-B with service fee 75 MoU 1 Request Please carry out procurement action 2 Goods Services 1

12 12HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes Outsourcing among UN entities: Procurement action 1 Can enable leveraging another UN entitys expertise in procuring certain goods or services Depending on your entitys procurement procedures (no) further procurement review required Reduced staff workload: Better use of staff time and effort Can be a particularly useful model for small UN entities which do not have sufficient procurement expertise or capacity present in a country Handling fee may be incurred by another UN entity – reflecting the administrative overhead which was involved in procuring the goods or services Details need to be determined on a case by case basis (Who receives the invoice? To whom are the goods delivered?) Details and main benefitsChallenges FOR DISCUSSION

13 13HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes Outsourcing: Project including procurement (Option A) UN-BUN-A GTC Contract(s) _____ ______ UN-A Supplier 3 ITB(s) / RFP(s) 2 MoU for project Please carry out project 1 Invoice for project To UN-B with service fee 6 5 One or more supplier(s) 3 rd party Goods Services Project Invoice(s) To UN-A 4 1

14 14HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes Outsourcing among UN entities: Project including procurement (Option B) UN-B GTC Contract for project _____ ______ UN-B Supplier or UN-A 2 RFP for project 1 Invoice for project To UN-B rd party UN-A 1 1UN-A successfully wins the RFP in a competitive process including other potential suppliers Goods Services Project 1

15 15HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes Outsourcing among UN entities: Project including procurement 1 Can enable leveraging another UN entitys expertise in procuring certain goods or services or delivering certain types of projects (e.g. complex construction works like roads or bridges, running elections etc.) Can be a particularly useful model for small UN entities which do not have sufficient procurement or project management expertise or capacity present in a country Handling fee will be incurred by another UN entity – reflecting the adminstrative overhead and project management services which were involved in procuring the goods or services and delivering the project Details need to be determined on a case by case basis Details and main benefitsChallenges FOR DISCUSSION

16 16HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes Alexander Blecken, PhD Procurement Specialist Office: Skype: alexander.blecken Phillip Walker Project Assistant Office: Skype: phillip.walkerUNICEF Project Team Ann Hasselbalch Chair WG Harmonization Office: Contact Eric Dupont Vice-Chair WG Harmonization Office:


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