1. DOING BUSINESS WITH THE UNITED NATIONS (UN)
Presented by
Niels Ramm
United Nations Office for Project Services (UNOPS)
Prague, 21 November 2011

2. How to do Business with the United Nations (UN)
HLCM Procurement Network
UN Procurement Statistics
UN System of Organisations
Finding Information – UNGM
General 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 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

4. Statistics (UN procurement system)

5. Total UN procurement of goods and services (UN System) 2006-2010
USD Million
14,544
13,797
13,594
10,113
9,404

6. Volume of procurement of the 10 principal UN Agencies
Total volume 2010: USD 14.5 billion
USD Million

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. 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. UN procurement from Czech Republic
Buying from Czech Republic (USD1000)
2010
UN/PD 5,176.46
IAEA 4,025.94
FAO 1,638.33
UNDP
UNICEF
UNOPS
Thousand USD

10. Major goods and services supplied by Czech Republic
Radiotherapy Equipment
Motor Vehicles
Tyres
Software
Services
Training Services
HIV Prevention Study
Final Report
Best practices in the Czech Republic
Intravenous Drug Users and HIV/AIDS - 2 Study Tours to the CR
Introduction, project objectives
The 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. 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 it’s 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. ……………………. ….

14. Le Nazioni Unite nel mondo
Budapest
UNHCR
OPCW
UNEP
UNAIDS
Copenhagen
UNOPS HQ - UNGM UNDP/Procurement Support Office UNICEF Supply Division UNFPA Procurement Unit 1 1

15. Overview
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

16. Finding Information

17. United Nations Global Marketplace (UNGM)
Web-based Information
UN Procurement’s single commercial and procurement portal:
United Nations Global Marketplace (UNGM)

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. Registering as a Potential Supplier

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

23. Procurement from Global Compact members

24. UN Procurement Procedures

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

27. Types of solicitation
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.
* 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 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

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/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

31. How are vendors identified?
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

32. Evaluation Criteria Technical Requirements
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. 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 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. 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. Thank you & good luck!
Possibility for Question and Answers.