UNDP/UNFPA/UNOPS Renewed focus/commitment to joint procurement Leverage joint volume to lower purchase costs Reduce administrative costs and avoid duplication Gain efficiencies and strengthen procurement practices Presented by: Dominic Grace, Director Procurement Support Office, UNDP Eric Dupont, Chief Procurement Services Branch, UNFPA September 12, 2013 Joint Procurement Activities 1

Joint Procurement Initiatives: Completed 2 ParticipantsCommodity/serviceAnnual value (est.)Benefits gained UNDP / UNFPA / UNOPSCargo Insurance$2.5m$1.89m annual savings UNDP / UNFPA / UNICEFMedical/Health Insurance$1.20m annual savings VariousSatellite Communications (VSAT) $20m45% cost reduction UNFPA/UNICEFHospital Equipment$3.7m Competition Duplication Efficiency VariousExpansion of UN Web Buy: Ongoing vehicle LTAs > 200 trucks and busses Solar energy products ─Savings of $25m annually Duplication Efficiency VariousCloud Services$12m60% Cost reduction UNDP / UNFPACensus / Election Materials$5m Efficiency Duplication VariousCross-buying from LTAs (piggy- backing) ─> $433k annual savings Efficiency Duplication UNDP / UNFPA / UNICEF / UNOPS Sea Freight Air Freight Cost avoidance of $12m Efficiency Variouse-Tendering System$50kProduct standardization Fixed fee for product

3 ParticipantsCommodity/serviceBenefits gained UNDP / UNFPA / UNOPSPolicies developed to enable cross-buying from LTAs Efficiency Process simplification Speed VariousSupplier Code of ConductStandards set Best practice adopted VariousHarmonization Project – Phase I Common glossary of terms Common guidelines for procurement at country level Training Tools Strengthened standardized practices across UN Standardized tools and guidelines UNDP / UNFPA / UNICEF / UNOPS Implementation of UN model framework for vendor sanctions Standardized approach Vendor Risk Management VariousUN Global Marketplace (UNGM) Vendor Registration Reform Project Speed Efficiency Transparency Costs Vendor Risk Management Joint Procurement Harmonization Initiatives: Completed

4 Joint Procurement Initiatives: Current Lead agencyCommodityAnnual value (est.)Goals UNOPSCarbon offset certificates (CER) joint procurement $50k Duplication Assure supply Eligible projects Costs UNOPSTravel and Visa services$8m Efficiency Duplication Costs UNOPSOffice Products $4mStrengthen and standardize practices Costs Sustainable products UNFPAHarmonization Project Phase 2 ─Promote implementation of guidelines on Procurement at the Country Level Revise Procurement Practitioner‘s Handbook Assess feasibility of harmonizing standard procurement documents UNDPInter-Agency Task Team on Sustainable Procurement in Health Care ─Set standards Environmental criteria for specifications and evaluation Influence / Advocate UNDPMotor Vehicles Project Phase 2$300mFocus on further consolidating and standardizing of vehicle models to reduce costs by 10-20%

UNDP/UNFPA/UNOPS Renewed focus/commitment to joint procurement Leverage joint volume to lower purchase costs Reduce administrative costs and avoid duplication Gain efficiencies and strengthen procurement practices Presented by: Dominic Grace, Director Procurement Support Office, UNDP Eric Dupont, Chief Procurement Services Branch, UNFPA September 12, 2013 Joint Procurement Activities 5

6 Harmonization Working Group – HLCM PN Background: -Procurement-related activities specified in action plan of QCPR -…and addressed in HLCM strategic plan and result framework -HLCM working group on harmonization aligned with priorities and outputs of QCPR action plan -Phase 1 now completed. Phase 2 will start very soon

7 Harmonization Working Group – HLCM PN Phase 1 - Deliverables: -Revised Guidelines for Common UN Procurement at the Country Level including an extended set of practical tools -Field support missions to countries to assess country outcomes and identify best practices -Extensive training material on UN cooperation -Worked with UN organisations to include UN cooperation material in training courses -Facilitated UNSSC training on common UN procurement, delivering training to over 120 UN staff

8 Harmonization Working Group – HLCM PN Phase 1 - Deliverables (continued): -Standardized table of contents for UN procurement manuals -Developed a Common UN Glossary of procurement-related Terms -Comparative review of procurement review committees -Piloted implementation of a new way of presenting the UN Procurement Practitioner‘s Handbook and Guidelines for Common UN Procurement at the Country Level (website, iPhone & Android App, E-Book) -List of priority actions that, if implemented by UN agencies, would enable collaborative procurement

Harmonization Working Group – HLCM PN (baseline – end 2011) Include 2 slides on status of implementation 1. UN Cooperation; 2. Secondary Review; 3. LTAs; 4. Restrictions; 5. Procurement Services; 6. Integration of ‘guidelines´; 7. Communication on ‘Guidelines’; 8. Table of contents

Harmonization Working Group – HLCM PN ( Sept 2012) 1. UN Cooperation; 2. Secondary Review; 3. LTAs; 4. Restrictions; 5. Procurement Services; 6. Integration of ‘guidelines´; 7. Communication on ‘Guidelines’; 8. Table of contents

Harmonization Working Group – HLCM PN (Sept 2013) 1. UN Cooperation; 2. Secondary Review; 3. LTAs; 4. Restrictions; 5. Procurement Services; 6. Integration of ‘guidelines´; 7. Communication on ‘Guidelines’; 8. Table of contents

12 Harmonization Working Group – HLCM PN Phase 2 plan: -Scale-up roll out of the country guidelines -Assess countries that have been trained to use these guidelines -Train additional countries for the use of the guidelines -Assess feasibility of harmonising standard procurement documents