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Procuring As One in Tanzania: Creating UN Efficiency & Effectiveness - UNCT 10 October 2008.

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Presentation on theme: "Procuring As One in Tanzania: Creating UN Efficiency & Effectiveness - UNCT 10 October 2008."— Presentation transcript:

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2 Procuring As One in Tanzania: Creating UN Efficiency & Effectiveness - UNCT 10 October 2008

3 Procuring as One: Creating UN Efficiency & Effectiveness Background: One Office Plan February 2008 One UN Procurement Options Report March 2008 One UN Procurement TOR April 2008 KPMG July-September 2008 UNCT Procurement Briefing August 2008 Procuring as One Workshop October 2008 UNCT Meeting October 2008

4 Procuring as One: Creating UN Efficiency & Effectivenes s Workshop: KPMG Gerard Gomez, UNDP Chief Global Procurement Unit, Cph & HLCM Procurement Network, U.N. Harmonisation Working Group Suvi Rautio, UNICEF Regional Chief of Supply Eastern & Southern Africa, Nairobi Mohammed Nowai, UNICEF Procurement Specialist, Nairobi Elizabeth Spencer, Common Services Advisor, UNDOCO, New York Tanzania Operations Management Team Tanzania Country Procurement Team (UNFPA, WHO, ILO, World Bank, FAO, UNICEF, UNESCO, UNDP, WFP, UNHCR, IOM) Remote support: James Provenzano, Director Procurement Support Office UNDP New York; DOCO Task Team on Common Services & Procurement & HLCM Dominik Heinrich, Director Management Services Division, WFP, Rome, HLCM Procurement Network Chair

5 Procuring as One: Creating UN Efficiency & Effectiveness Key Recommendations: Set up and manage long term agreements One UN Procurement Planning Using Government Procurement Systems One UN Procurement Team

6 Procuring as One: Creating UN Efficiency & Effectiveness Efficiency Reduced transaction cost ($0.9 mil) Time released (1,858 days) Volume discount ($2.9 mil) Effectiveness Quicker delivery time Standardization Getting rid of parallel systems *Figures are potential as per the KPMG report DELIVERING AS ONEDELIVERING AS ONE

7 Procuring as One: Creating UN Efficiency & Effectiveness Positives: Coordinated Planning Efficiency & Effectiveness through Information Sharing Expanded Professional Knowledge Greater use of Government systems (Paris/Accra) Similarity of Agency Processes & Agency Expertise Reduction of transaction costs and time Bulk discounts

8 Procuring as One: Creating UN Efficiency & Effectiveness Main Concerns: Procurement Scope One Agency - ERP Systems - Human Resources - Disparity in Cost Approval & Authority LTA Coordination Planning

9 Procuring as One: Creating UN Efficiency & Effectiveness Problem Resolutions: Tanzania One Procurement Strategy (TOPS) Procurement Scope: In-country generated goods & services procurement local, government & global not specialized, e.g. food, pharmaceuticals & vaccines, contraceptives, transport One Agency Approach: Interagency Core Team (with all agency support) Individual ERPs (resolves accountability, IPSAS compliance, Asset management, approval levels, cash transfers and funding cycles) LTA Coordination & Planning Tanzania One Procurement Team (TOPT)

10 Procuring as One: Creating UN Efficiency & Effectiveness LTAs Today: UNDP & UNICEF local LTAs not used by others Current time frame for developing LTAs approx one year - only 5 agencies provided data 3 LTAs lapsed between (fuel, paper, travel) Lack of communication No incentive for use No ability to take advantage of bulk discounts, plan across country needs or ability to coordinate use of government systems Unreliable reputation with suppliers

11 Procuring as One: Creating UN Efficiency & Effectiveness 10-Oct-0815-Oct-0801-Jan-0901-Jul-09 Map LTAs 2-3 existing LTAs used LTA needs identification Planning Set-up new LTAs TOR of TOPT finalized Manage LTAs Set-up new LTAs Ad-hoc procurement Commitment Oversight Empowerment TOPS presented to and approved by CMT TOPT set-up 4 staff UNDP, UNICEF, WFP, UNHCR (1 day a week) Short-term expert/PM Increase TOPT resources TOPT Final form

12 Procuring as One: Creating UN Efficiency & Effectiveness Recommendations for Way Forward: Track One: (Decision Needed Today) - Tanzania One Procurement Team (TOPT) - Kick Start LTA review and gaps - Mandatory use of LTAs and collaborative monitoring for on going analysis - Procurement Planning and New LTAs Final Planning, Analysis & Decision Making Feb/March 2009 Track Two: (Decision March 2009) -Scoping and planning for final co-located Tanzania One Procurement Team (TOPT) Based on the results of the analysis done through the LTA and Procurement process - Risk analysis Decision March 2009, Full Implementation July 2009

13 Procuring as One: Creating UN Efficiency & Effectiveness Assumptions: Full UNCT commitment, support and decisions OMT and procurement staff 100% commitment and contribution Project decisions can be taken at country level Reliable service providers in the Tanzanian market place Risks and Mitigation: Resistance to change (results, incentives, communication, training) Efficiency and effectiveness targets not achieved (revise targets if minor, or revert to current status if major) Business processes (access, better communication, ICT, and trying) Human resource (plan carefully with HR and staff associations, full transparency)

14 Asanteni Sana!


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