Presentation on theme: "DOING BUSINESS WITH THE UNITED NATIONS (UN)"— Presentation transcript:
1 DOING BUSINESS WITH THE UNITED NATIONS (UN) Presented byNiels RammUnited Nations Office for Project Services (UNOPS)Prague, 21 November 2011
2 How to do Business with the United Nations (UN) HLCM Procurement NetworkUN Procurement StatisticsUN System of OrganisationsFinding Information – UNGMGeneral UN Procurement Procedures
3 High Level Committee of Management’s Procurement Network The Procurement Network - Heads and Directors of 40 UN Agencies. Focuses on:Increased Access for SuppliersBusiness seminarsSpecial focus on suppliers from developing countriesHarmonisationGuidelines for Harmonized UN Procurement at the Country LevelCommon Financial Regulations and Rules and General Terms & ConditionsSustainable ProcurementGuidelines on IT, Furniture, Cleaning Products, Catering, Vehicles etc.Sustainable Procurement GuideProfessional DevelopmentRecognition of procurement as strategic functionProfessional CertificationKnowledge SharingVendor Management (UNGM)UNGM = Common UN Procurement PortalVendor EligibilityUNCCS (material codes)Projects on Collaborative Procurement
5 Total UN procurement of goods and services (UN System) 2006-2010 USD Million14,54413,79713,59410,1139,404
6 Volume of procurement of the 10 principal UN Agencies Total volume 2010: USD 14.5 billionUSD Million
7 10 major countries of supply to the UN System 2010 USD MillionTotal UN 2010 procurement volume: $14.5 BnNo. of supplier countries: 191Procured from USA: 10%Procured from France: 3%
8 Major items procured by the UN System GoodsFood & NutritionPharmaceuticals & vaccinesMotor vehicles & partsTextiles, incl. clothing, tents, blankets, mosquito nets etc.Medical, lab. & hospital equipmentComputer & IT equipment, incl. softwarePetroleum & fuel productsBooks, paper, office stationery & suppliesFurnitureServicesTransport servicesConstruction, engineering and architectural servicesHR, consultants and project staffBuilding & machinery maintenance & repairTravel & tourismLeasing & rental servicesComputer & IT servicesFinancial & auditing servicesManagement services & consultancy
9 UN procurement from Czech Republic Buying from Czech Republic (USD1000)2010UN/PD 5,176.46IAEA 4,025.94FAO 1,638.33UNDPUNICEFUNOPSThousand USD
10 Major goods and services supplied by Czech Republic Radiotherapy EquipmentMotor VehiclesTyresSoftwareServicesTraining ServicesHIV Prevention StudyFinal ReportBest practices in the Czech RepublicIntravenous Drug Users and HIV/AIDS - 2 Study Tours to the CRIntroduction, project objectivesThe company ResAd, Ltd. won a tender and was contracted by UNDP´s Bratislava Regional Centre in order to organize 2 study tours on „Best practices in the Czech Republic: Intravenous Drug Users and HIV/AIDS”. The substance of the contract was organization and conduction of the educational tour for 20 persons of Serbia experts from drug field whose work is related to methadone maintenance treatment (MMT) services (including medical doctors working in free settings and in prisons, nurses with the same background, and social workers); representatives of NGOs or community representatives who are dealing with NEP programs; policy makers and other professionals working in- or with specialized services for drug users. The study tour participants were divided into two consecutive groups.The main objective of the study tours was to scale up governance aspect of HIV/AIDS through improvement of capacity of services and programmes for intravenous drug users, and through sharing of experiences with the Czech experts in this field.
11 UN System of Organisations There are many organisations of the UN and this can be somewhat confusing. With the upcoming slides I hope to help explain the structure of the UN to you.
12 OverviewThe 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 it’s own characteristics and requirements i.e. UNICEF, WFP, UNHCRImportant 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.
14 Le Nazioni Unite nel mondo BudapestUNHCROPCWUNEPUNAIDSCopenhagenUNOPS HQ - UNGM UNDP/Procurement Support Office UNICEF Supply Division UNFPA Procurement Unit11
15 OverviewEACH ORGANISATION . . .has its own special requirements for goods and servicesmay conduct its own procurement activitiesfollows, in general, common principles for procurement rules and regulationsconstitutes a separate and distinct customer/partner
17 United Nations Global Marketplace (UNGM) Web-based InformationUN Procurement’s single commercial and procurement portal:United Nations Global Marketplace (UNGM)
18 Business Information 1. The Annual Statistical Report UN procurement by countryUN Agency procurement by country, commodity or servicePurchase orders and Contracts (over USD 30,000) placed by agency, by country of vendor, value and description of goods or servicesTop Ten items procured by Agency2. The General Business GuideLists all UN Organisations, fields of activity, contact persons, procurement activities and requirements and registration proceduresAvailable from
20 The United Nations Global Marketplace (UNGM) UNGM = the procurement portal of the UN SystemUNGM brings together UN procurement staff and the supplier communityUNGM 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 Procurement & the United Nations ultimate goals The UN is committed to sustainable and equitable developmentWorld 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 GoalsThe 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 First steps: the UN Global Compact and the Supplier Code of Conduct The UN strongly encourages all vendors to actively participate in the Global CompactThe Global Compact promotes principles of human rights, labour, environment and anti-corruptionThe UN supplier Code of Conduct spells out the principles that should inspire the business practice of suppliersThe Global Compact is a voluntary initiative promoted by the UN Secretary General and aimed at businesses that are committed to align their operations and strategies with recognised principles of human rights, environment, labour and anti-corruption.The UN recognizes that reaching the standards established in this Code of Conduct is a dynamic rather than static process and encourages suppliers to continually improve their workplace conditions.The UN supplier Code of Conduct provide the minimum standards expected of suppliers to the UNReaching the standards is a dynamic process; suppliers are encouraged to continually improve their workplace conditions
25 Common Guidelines for UN Procurement system Procurement activities of the UN system are based on the following principles:Advancing the interests of the organisationObtaining value for moneyEnsuring probity through inter alia, fairness, integrity, transparency and effective competitionAccountability for outcomesThese Common Guidelines cover procurement stages from sourcing to execution of a procurement contract
26 How is the procurement method decided? the value of the procurementthe nature of the goods and services to be procuredcritical dates for delivery
27 Types of solicitationRequest 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.* Thresholds may vary
28 Thresholds/Types of solicitation 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 may vary
29 Other steps in the procurement process Expression of InterestUsed as part of market research Identifying and prequalifying suppliersKeep abreast with new developments Does not necessarily result in procurementPrequalification Can form part of ITB/RFPUsed for high-risk goods such as pharmaceuticals, condomsUsed for where high impact if delivery fails, such as electionsConfirming manufacturing, quality standards, other issuesVery specialised for pharmaceuticalsPost Qualification/Preshipment Inspection Used as part of testing pre-contract stage Ensuring equipment works under special conditions
30 In addition . . .Long Term Agreement (LTA)/Frame Agreement Based on ITB or RFP process 2-4 years period Potentially more than one LTA for same goods/serviceSingle tendering exercise reduces administrative effortThe supplier benefits in terms of continuity of supplyDirect 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
31 How are vendors identified? Competitive suppliers of previous procurement- Past performanceSuppliers of the required goods or services, found on the UN Global Market- CodificationThrough calls for Expression of Interest (EOI)- NoticesSearch of World Wide WebTrade Missions, Chambers of CommerceExchange with other UN Agencies
33 Evaluation Criteria for Requests for Proposal (RFP) Proposals are always evaluated according to the principle of “Best Value“Best value: best overall benefit, both technically and financially→ Lowest cost may not necessarily be best value for moneyThe evaluation criteria are set out in the RFPGenerally, the technical proposal will be given 70%-80% of the overall score, and20%-30% will given to the financial proposal
34 Evaluation Criteria for Invitations to Bid (ITB) Proposals are always evaluated according to the principle of …“lowest pricemeeting technical specificationsand stated requirements”
35 Thank you & good luck!Possibility for Question and Answers.