1. PSS/ UNFPAAugust, 2004 2. Procurement Principles ÔQuality is integrated in all processes & stages. ÔMaximise economy and efficiency. ÔEncourage as wide a solicitation of proposals as possible to promote competition. ÔEncourage and include sources of supply indigenous either to the country being assisted or from other developing countries. ÔEncourage and include sources of supply from underutilized major donor countries. ÔPromote integrity and fairness and maintain the transparency of the procurement process.

2. PSS/ UNFPAAugust, 2004 3. The Aim of Procurement ÔRIGHT Goods/Services at the ÔRIGHT Quality ÔRIGHT Price ÔRIGHT Quantity ÔRIGHT Time ÔRIGHT Place "The Six Rights "

3. PSS/ UNFPAAugust, 2004 3.1 Providing the RIGHT Goods/Service involves: ÔGetting all the information that enables you to make the right purchase decision by: -Knowing the specifications (size, colour, performance, tensile strength, formulation etc.) -Conducting Market Research to identify: Availability (different types) History (bad reports, failure rates, legal issues) Consumer preferences ÔLocal support and back-up (trained personnel to handle implementation and maintenance service, availability of spare parts etc.).

4. PSS/ UNFPAAugust, 2004 3.2 Providing the RIGHT Quality involves: ÔPerform thorough evaluation of supplier before contract award based on documentary evidence, factory inspections and samples of commodity. ÔConducting sampling and testing before shipment by independent inspection company and laboratory to a pre- determined testing protocol known by the supplier at time of contract award. ÔEnsure that all commodities conform to international standards. ÔFit for purpose for which it is acquired.

5. PSS/ UNFPAAugust, 2004 3.3 Providing at the RIGHT Price involves: ÔMarket research (International/Local). ÔCompetitive Bidding (ICB/LIB), Request for Proposal (RFP), Request for Quotation (RFQ) or Negotiation. ÔIdentifying the Right Source. ÔThe RIGHT Specification (WHO, MOH Essential Drug list, UNICEF Catalog, UNFPA/TSD Contraceptives list). ÔIdentifying the Right Source (Manuf., Agent, Trader). ÔEconomic quantities. ÔAppropriate contract terms.

6. PSS/ UNFPAAugust, 2004 3.4 Establishing the RIGHT Quantities involves knowing: ÔUsage rates (past consumption patterns and levels, e.g. preferences between IUD's and female condoms and the overall volume). ÔStorage and distribution capacity (shelf-life of product). ÔMode of transportation. ÔEconomic Order Quantity: Economies of Scale, Discounts for larger orders, Storage, Usage Rate. ÔBudget availability.

7. PSS/ UNFPAAugust, 2004 3.5 Providing goods/services at the RIGHT Time: ÔLead time: the time between the issuance of a request and receipt of the goods, incl.: -Time for Order Processing (FO and HQ) -Time for Manufacturing Process -Time for shipment to Destination - Time for Inspection / Custom clearance -Time required for internal distribution.

8. PSS/ UNFPAAugust, 2004 3.6 Providing the goods to the RIGHT Place involves emphasis on training: ÔCorrect Consignee Address & Details (indicate special port if applicable). ÔCorrect Documentation (AWB, B/L, invoice, packing list, Certificate of Analysis, etc.). Ô** Indication of Special requirements for Licensing, packaging, inspection, labeling, keep cool items, etc. ** ÔImport licenses, Exemptions.

9. PSS/ UNFPAAugust, 2004 5.Steps in the Procurement Cycle PSS/UNFPAApril, 2004 Budget Identified & Requisition raised Procurement Unit Specifications Checked Need Identified Market Research Supplier Qualification Request for Quotations <US$30,000 SUPPLIER Receiving & Inspection Report Purchase Order Shipping Advice Invoice Goods received Certify Funds by UNFPA Finance Branch UNFPA FIELD OFFICE or External client CRC RFP / ITB > US$ 30,000 Delivery >US$100,0000