UN Procurement
Guiding Principles for UN Procurement
The objective of procurement activities within the UN system is the timely acquisition of goods, services and works while addressing the following guiding principles:Promotion of UN objectives
The ultimate objective of procurement is to add value to the organization in fulfilling its mandate, goals and objectives.To a large extent the other three principles contribute to this overarching principle, but this principle also include concepts such as:
- Maintain the highest image and reputation of the organization through execution of the procurement process in full conformity with the Financial Regulations and rules;
- Promote the public goods as specified in the mandate of the organization.
Fairness, integrity and transparency through competition
Competition conducted in a fair and transparent manner is the heart of procurement in the UN. In order for competition to work best, it must guard against collusion and be conducted on the basis of clear and appropriate regulation, rules and procedures that are applied consistently to all potential suppliers. The procurement process should be carried out in a manner that gives all interested parties both inside and outside the organization the assurance that the process is fair.
A transparent system has clear rules and mechanisms to ensure compliance with those rules (unbiased specifications, objective evaluation criteria, tandard solicitation documents, equal information to all parties, confidentiality of offers, etc.) Records are open, as appropriate, to inspection by auditors; unsuccessful suppliers can be briefed on the strengths and weaknesses of their own offers. Transparency ensures that any deviations from fair and equal treatment are detected very early, and makes such deviations less likely to occur. It thus protects the integrity of the process and the interest of the organization.
Economy and effectiveness
Economy and effectiveness means providing an appropriate solution to the organization's need with regards to quantity, quality and timeliness at the right price.It also means ensuring that the overall cost to the organization in conducting the procurement process is minimized in the interests of the overall budget of the organization.Economy protects the interest of the budget owner, while effectiveness ensures the interest of the end-user is met.
Best Value for Money
Best value for money means selecting offers which present the optimum combination of factors such as appropriate quality, life-cycle costs and other parameters which can include social, environmental or other strategic objectives which meet the end-user needs. Best value does not necessarily mean the lowest initial price option, but rather represents the best return on the investment, taking into consideration the evaluation critera in the specified solicitation documents.
Solicitation
The types of solicitation practiced by the UN are as follows, although the dollar values may vary from one organization to another:
- Expression of Interest (EOI)
- Written communication by a supplier to provide information about its products, resources, qualifications and experience, in response to a particular opportunity.
- Request for Quotation (RFQ)
- Less formal solicitation, lower value (up to 100,000 USD), standard specifications, product readily available on the market.
- Invitation to Bid (ITB)
- Formal solicitation, higher value (above 100,000 USD), lowest price, compliancy and technical competency determining factors.
- Request for Proposal (RFP)
- Formal solicitation, higher value (above 100,000 USD), requirements possibly met in various ways, overall best solution will win the contract, not necessarily lowest price.
Online Resources
Each UN agency has its own mandate and procurement requirements. There are a number of resources available to assist in identifying which agencies are procuring which types of goods and services. These also contain guidance on how to supply to the UN.
UN Web Buy: http://www.unwebbuy.org/
UN Global Market:http://www.ungm.org/