1 presented by niels ramm united nations office for project services (unops) prague, 21 november 201...
TRANSCRIPT
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Presented by
Niels RammUnited Nations Office for Project
Services (UNOPS) Prague, 21 November 2011
DOING BUSINESS WITH THE UNITED NATIONS (UN)
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UN System of Organisations
HLCM Procurement Network
Finding Information – UNGM
How to do Business with theUnited Nations (UN)
UN Procurement Statistics
General UN Procurement Procedures
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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
High Level Committee of Management’s Procurement Network
The Procurement Network - Heads and Directors of 40 UN Agencies. Focuses on:
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Statistics (UN procurement system)
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USD Million
9,40410,113
13,59413,797
14,544
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USD Million
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USD MillionTotal UN 2010 procurement volume: $14.5 Bn
No. of supplier countries: 191
Procured from USA: 10%
Procured from France: 3%
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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
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Thousand USD Buying from Czech Republic (USD1000)
2010• UN/PD 5,176.46• IAEA 4,025.94• FAO 1,638.33• UNDP 827.02• UNICEF 369.20• UNOPS 157.03
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Goods • Radiotherapy Equipment• Motor Vehicles• Tyres• Software
Services• Training Services• HIV Prevention Study
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UN System of Organisations
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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.
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…………………………………………..
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Le Nazioni Unite nel mondoLe Nazioni Unite nel mondo
UNAIDS
OPCW
Copenhagen
UNOPS HQ - UNGMUNDP/Procurement Support OfficeUNICEF Supply DivisionUNFPA Procurement Unit
UNEP
Budapest
UNHCR
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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
Overview
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UN Procurement’s single commercial and procurement portal: United Nations Global Marketplace (UNGM)
www.ungm.org
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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 www.ungm.org
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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.
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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
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The Global Compact promotes principles of human rights, labour, environment and anti-corruption
www.unglobalcompact.org
The UN strongly encourages all vendors to actively participate in the Global Compact
The UN supplier Code of Conduct spells out the principles that should inspire the business practice of suppliers
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
First steps: the UN Global Compact and the Supplier Code of Conduct
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Procurement from Global Compact members
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UN Procurement Procedures
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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
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• the value of the procurement • the nature of the goods and services to be procured• critical dates for delivery
How is the procurement method decided?
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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.
Types of solicitation
* Thresholds may vary
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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/Types of solicitation
* Thresholds may vary
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Expression of InterestUsed as part of market researchIdentifying and prequalifying suppliersKeep abreast with new developmentsDoes not necessarily result in procurement
PrequalificationCan 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 pharmaceuticals
Post Qualification/Preshipment Inspection Used as part of testing pre-contract stageEnsuring equipment works under special conditions
Other steps in the procurement process
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Long Term Agreement (LTA)/Frame Agreement Based on ITB or RFP process 2-4 years periodPotentially more than one LTA for same goods/serviceSingle tendering exercise reduces administrative effortThe supplier benefits in terms of continuity of supply
Direct ContractingException to the ruleIn case of extreme emergencySole sourceIf competitive bidding process has failed for valid reasonVery stringent controls and has to be well justified
In addition . . .
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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
How are vendors identified?
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Evaluation Criteria
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
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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 financiallyboth 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
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Evaluation Criteria for Invitations to Bid (ITB)
Proposals are always evaluated according to the principle of …
“lowest price meeting technical specifications
and stated requirements”
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Thank you & good luck!