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1 Presented by Niels Ramm United Nations Office for Project Services (UNOPS) Prague, 21 November 201 1 DOING BUSINESS WITH THE UNITED NATIONS (UN)

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Presentation on theme: "1 Presented by Niels Ramm United Nations Office for Project Services (UNOPS) Prague, 21 November 201 1 DOING BUSINESS WITH THE UNITED NATIONS (UN)"— Presentation transcript:

1 1 Presented by Niels Ramm United Nations Office for Project Services (UNOPS) Prague, 21 November 201 1 DOING BUSINESS WITH THE UNITED NATIONS (UN)

2 2 UN System of OrganisationsHLCM Procurement NetworkFinding Information – UNGM How to do Business with the United Nations (UN) UN Procurement Statistics General UN Procurement Procedures

3 3 Increased Access for Suppliers Business seminars Special focus on suppliers from developing countries Harmonisation Guidelines for Harmonized UN Procurement at the Country Level Common Financial Regulations and Rules and General Terms & Conditions Sustainable Procurement Guidelines on IT, Furniture, Cleaning Products, Catering, Vehicles etc. Sustainable Procurement Guide Professional Development Recognition of procurement as strategic function Professional Certification Knowledge Sharing Vendor Management (UNGM) UNGM = Common UN Procurement Portal Vendor Eligibility UNCCS (material codes) Projects on Collaborative Procurement High Level Committee of Managements Procurement Network The Procurement Network - Heads and Directors of 40 UN Agencies. Focuses on:

4 4 Statistics (UN procurement system)

5 5 Total UN procurement of goods and services (UN System) 2006-2010 USD Million 9,404 10,113 13,594 13,79 7 14,544

6 6 USD Million

7 7 10 major countries of supply to the UN System 2010 USD Million Total UN 2010 procurement volume: $14.5 Bn No. of supplier countries: 191 Procured from USA: 10% Procured from France: 3%

8 8 Major items procured by the UN System Goods Food & Nutrition Pharmaceuticals & vaccines Motor vehicles & parts Textiles, incl. clothing, tents, blankets, mosquito nets etc. Medical, lab. & hospital equipment Computer & IT equipment, incl. software Petroleum & fuel products Books, paper, office stationery & supplies Furniture Services Transport services Construction, engineering and architectural services HR, consultants and project staff Building & machinery maintenance & repair Travel & tourism Leasing & rental services Computer & IT services Financial & auditing services Management services & consultancy

9 9 Thousand USD Buying from Czech Republic (USD1000) 2010 UN/PD5,176.46 IAEA4,025.94 FAO1,638.33 UNDP827.02 UNICEF369.20 UNOPS157.03 UN procurement from Czech Republic

10 10 Goods Radiotherapy Equipment Motor Vehicles Tyres Software Services Training Services HIV Prevention Study Major goods and services supplied by Czech Republic

11 11 UN System of Organisations

12 12 Overview The United Nations is not a single organisation but is in fact made up of a variety of organisational entities (agencies, organisations, commissions, programmes, funds, etc). A market in itself where each organisation has a different function and its own characteristics and requirements i.e. UNICEF, WFP, UNHCR Important to recognise the above if you wish to do business with the UN as each organisation has its own procurement department and processes and procedures may differ.

13 13 ……………………. ….

14 14 Le Nazioni Unite nel mondo UNAIDS OPCW Copenhagen UNOPS HQ - UNGM UNDP/Procurement Support Office UNICEF Supply Division UNFPA Procurement Unit UNEP Budapest UNHCR

15 15 EACH ORGANISATION... has its own special requirements for goods and services may conduct its own procurement activities follows, in general, common principles for procurement rules and regulations constitutes a separate and distinct customer/partner Overview

16 16

17 17 Web-based Information UN Procurements single commercial and procurement portal: United Nations Global Marketplace (UNGM)

18 18 Business Information 1. The Annual Statistical Report UN procurement by country – UN Agency procurement by country, commodity or service – Purchase orders and Contracts (over USD 30,000) placed by agency, by country of vendor, value and description of goods or services – Top Ten items procured by Agency 2. The General Business Guide – Lists all UN Organisations, fields of activity, contact persons, procurement activities and requirements and registration procedures Available from

19 19

20 20 The United Nations Global Marketplace (UNGM) UNGM = the procurement portal of the UN System UNGM brings together UN procurement staff and the supplier community UNGM acts as a single window, through which potential suppliers may register with the 20 UN Agencies using the UNGM as their supplier roster the UNGM therefore provides an excellent springboard to introduce your goods and services to many UN organisations, countries and regions by only completing one registration form.

21 21 Procurement & the United Nations ultimate goals The UN is committed to sustainable and equitable development World leaders and the UN have formed a new global partnership to reduce extreme poverty with a deadline of 2015 – a number of targets known as the Millennium Development Goals The UN Secretary General has asked all UN agencies, funds and programmes to become climate neutral and go green Procurement is now recognised as a relevant component of the common effort towards sustainability

22 22 The Global Compact promotes principles of human rights, labour, environment and anti-corruption The UN strongly encourages all vendors to actively participate in the Global Compact The UN supplier Code of Conduct spells out the principles that should inspire the business practice of suppliers The UN supplier Code of Conduct provide the minimum standards expected of suppliers to the UN Reaching the standards is a dynamic process; suppliers are encouraged to continually improve their workplace conditions First steps: the UN Global Compact and the Supplier Code of Conduct

23 23 Procurement from Global Compact members

24 24 UN Procurement Procedures

25 25 Common Guidelines for UN Procurement system Procurement activities of the UN system are based on the following principles: Advancing the interests of the organisation Obtaining value for money Ensuring probity through inter alia, fairness, integrity, transparency and effective competition Accountability for outcomes These Common Guidelines cover procurement stages from sourcing to execution of a procurement contract

26 26 the value of the procurement the nature of the goods and services to be procured critical dates for delivery How is the procurement method decided?

27 27 Request for Quotation (RFQ) - less formal solicitation used for lower value procurement (i.e. USD 30,000 * ) Invitation to Bid (ITB) - formal solicitation method for well-defined goods (or services); contract award is based on lowest acceptable bid. Request for Proposal (RFP) - formal solicitation whereby the contract award is based on a combined (weighted) evaluation of both the technical solution and price. Types of solicitation * Thresholds may vary

28 28 Up to 30,000 USD * - Informal, simplified acquisition procedure - Requests for Quotation (RFQ) - Lowest priced, technically acceptable bidder or best value bidder (evaluated). Above 30,000 USD * - Invitation to Bid (ITB) and Request for Proposal (RFP) - Open and formal: advertised (on the web) generally larger shortlist (minimum 6 potential bidders, 3 to comply) - Public bid opening - Review and Recommendation by Contract Committees Thresholds/Types of solicitation * Thresholds may vary

29 29 Expression of Interest Used as part of market research Identifying and prequalifying suppliers Keep abreast with new developments Does not necessarily result in procurement Prequalification Can 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 Very specialised for pharmaceuticals Post Qualification/Preshipment Inspection Used as part of testing pre-contract stage Ensuring equipment works under special conditions Other steps in the procurement process

30 30 Long Term Agreement (LTA)/Frame Agreement Based on ITB or RFP process 2-4 years period Potentially more than one LTA for same goods/service Single tendering exercise reduces administrative effort The supplier benefits in terms of continuity of supply Direct Contracting Exception to the rule In case of extreme emergency Sole source If competitive bidding process has failed for valid reason Very stringent controls and has to be well justified In addition...

31 31 Competitive suppliers of previous procurement - Past performance Suppliers of the required goods or services, found on the UN Global Market - Codification Through calls for Expression of Interest (EOI) - Notices Search of World Wide Web Trade Missions, Chambers of Commerce Exchange with other UN Agencies How are vendors identified?

32 32 Evaluation Criteria Acceptance of UN payment terms, terms & conditions, contract template, liability, legal capacity, etc. Technical Requirements Delivery Terms (INCOTERMS 2000) Delivery Time Recognised International/National Standards Supporting Documentation Proven Production Capacity & Financial Strength Warranty Conditions Appropriate After-sales Service Previous Contract References Price

33 33 Evaluation Criteria for Requests for Proposal (RFP) Proposals are always evaluated according to the principle of Best Value both technically and financially Best value: best overall benefit, both technically and financially Lowest cost may not necessarily be best value for money The evaluation criteria are set out in the RFP Generally, the technical proposal will be given 70%-80% of the overall score, and 20%-30% will given to the financial proposal

34 34 Evaluation Criteria for Invitations to Bid (ITB) Proposals are always evaluated according to the principle of … lowest price meeting technical specifications and stated requirements

35 35 Thank you & good luck!

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