UN Procurement

How Does the UN System Procure?

1. The UN system operates on budgets funded by its members. Each Agency has a separate budget approved by its respective Executive Board.

2. Competitive tendering is used by the UN system to award contracts. The normal procedures followed for the various procurement levels of individual contracts is as follows (with minor variations among the agencies):

Values of purchase orders up to US$ 30,000: A direct selection of possible suppliers is done by the procurement officer concerned, normally three suppliers are identified. Based on an analysis of the quotations received, the order is awarded to the supplier that meets the specifications and delivery terms and has the lowest price.

Value of Purchase orders from US$ 30,000 up to US$ 100,000: Limited competitive bidding is done by inviting a pre-selected short list of suppliers to respond through sealed bids. The shortlist consists of suppliers from developing countries, including the recipient country; under-utilized donor countries and other donor countries. The order is awarded to the most qualified and responsive contractor submitting the lowest bid.

Value of Purchase orders from US$ 100,000 and up: International competitive bidding is the rule. If exigencies of a project so allow, suppliers are invited to bid by advertisement in the UN publication Development Business www.devbusiness.com, IAPSO's Procurement Notices on www.iapso.org or in other trade publications. When requests for proposals have been issued, contracts shall be awarded to the best-evaluated responsive offer.

3. The major emphasis is to achieve best value for money through transparent procurement process.