UNDP Procurement Management
Operations Manager, UNDP China
2 July 2015
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Content
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Procurement Definition
Procurement Support Office
Procurement Principles
Contract types
Procurement Process
Types of Competition
Procurement Method
Bid Evaluation
Procurement Oversight and Review
Key Steps in Atlas
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What is Procurement
The term “procurement” refers to the
process of acquiring goods, service and
civil works. The process spans the whole
cycle from identification of needs through
the end of a services contract or the
useful life of an asset.
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Procurement Support Office
New York, USA
• PSO in NY: policy-making and oversight
Copenhagen, Denmark
• PSO Supports to 166 Country offices
• Responsibility for procurement of goods and services related
to strategic objectives, i.e. elections, crisis prevention and
recovery, Global Fund etc.
UNDP Procurement Principles
1. Best Value for Money: Selection of the offer that best
meets the end-user’s needs
2. Fairness, Integrity and Transparency: are
responsible for protecting the integrity of procurement
process and maintaining fairness in UNDP’s treatment
of all Offerors
3. Effective Competition: provide all eligible prospective
Offerors with timely and adequate notification of
UNDP’s requirements and an equal opportunity to
tender for the required procurement
4. The interest of UNDP: protect interest of UN and
UNDP
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Contract type
• Purchase Order/PO: goods
• Institutional Services Contract: service from a firm at
value below US$ 30k
• Professional services contract: service from a firm at
value above US$ 30k
• Individual Contract (IC): consulting service from
individual (RLA & NRLA: engage an individual from a
firm)
• Civil works Contract: for civil works
• Long Term Arrangement: apply to all above
mentioned contract types with long engagement
Procurement Process
Prepare Invitation
for Bidding
Documents
Specification
Terms of Reference
Statement of Works
Define Needs
Define Procurement
Modality
Invitation for
Bidding
Choose Supplier
Evaluation of
Bidders
Contract
Management
Signing of Contract
Appraisal of Procurement 7
Types of Competition
• Open International Competition:
provide equal opportunity to the universe
of eligible vendors
• Limited International Competition:
narrowing the competition field into a
short list of prospective offerors
• National Competition: under certain
circumstances
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Procurement Method
Procurement
Method
Contract Value
Type of
Requirement
Method of
Solicitation[2]
Type of
Competition
MicroPurchasing
Below USD 5,000
Goods,
Services, or
Simple works
Canvassing (by
phone, by internet,
by shopping, etc)
Limited
International or
National
RFQ
USD 5,000 to
99,999
Goods,
Services,
or simple works
Written Request for
Quotation
Limited
International or
National
ITB
USD 100,000 and
above
Goods or
Works
Advertisement in
International media
Open
International
RFP
USD 100,000 and
above
Services
Advertisement in
international media
Open
International
Direct
Contracting
Any Amount
within
permissible
circumstances
Services,
Goods,
or Works
Direct Invitation or
Negotiation
None
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1. Micro Purchasing
Micro Purchasing <US$ 5,000
 Small – value purchase goods or service below US$
5,000
 Use simple canvassing form (over phone, internet,
or through local vendors)
 Record all information and price collected
 The person who collected the data must be
accountable for the correct and accuracy of all
information and data, sign it
 Approved by staff who has the delegated authority
2. Request for Quotation (RFQ)
REQUEST FOR QUOTATION (RFQ)
 Commonly used for procurement of simple goods/service and
aggregate amount less than $100,000
 Advertisement is not a must
 Collect at least 3 formal quotations
 Prepare quotation comparison
 CAP review is required between $50k-150k
 Award is typically based on lowest price among responsive
bidders
3. Invitation to Bid
INVITATION TO BID (ITB) < US$ 100,000
 used for supply of goods or works where requirements are
clearly defined (little room for deviation)
 Advertisement is mandatory for at least 2 weeks for contracts
over US$ 100,000
 Formal bid opening is required
 Evaluation by a ad-hoc evaluation committee is required
 Contract < US$ 150K needs CAP review and > US$ 150K
RACP review
 Award is typically based on lowest price among responsive bids
4. Request for Proposal
Request for Proposal (RFP) > US$ 100,000
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Use for services or complex goods + range of approaches
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Adv is mandatory for at least 2 weeks for contracts > US$
100,000
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2 formal bid openings are required: technical proposal and
financial proposal
 Evaluation by a ad-hoc evaluation committee is required
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Contract < US$ 150K needs CAP review and > US$ 150K
RACP review
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Award does not need go to the lowest priced offer, and could go
to the higher rated proposal, provided it is meet all evaluation
criteria and the budget ceiling
Bid Evaluation: goods
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Compliance with requirements relating to technical design features,
specifications, functions and etc
Compliance with start-up, delivery or installation deadlines
Demonstrated ability to comply with critical provisions such as
execution of the Purchase Order
Demonstrated ability to honor important responsibilities and liabilities
allocated to Supplier listed in the ITB (e.g. performance guarantees,
warranties, or insurance coverage, etc).
Proof of after-sales service capacity and appropriateness of service
network.
Compliance with pricing conditions set in the ITB
Responsive bidders means to meet all above technical requirements
• Award is typically based on lowest price among responsive bids
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Bid Evaluation Service: Technical Criteria
I.
Management : Track Record on the work required,
Experience with UN/Development Organizations,
Technical Capability, Quality Standard Accreditations,
Financial strength, Credit lines, Reputation, etc
II.
Technical Proposal: Full compliance to specifications/
requirements/TOR, thorough understanding of the
requirement, appropriateness of methodology to the local
conditions, practicality of approaches, acceptability of
implementation timelines, etc.
Passing Rate :
Key Experts: Experience/Qualifications of the team that
will be engaged with UNDP, right mix of experts70%
III.
Evaluation for Service: Financial Offer
Two Types of evaluation:
1. Lowest price technically compliant – the award goes to the lowest
priced offer among those that obtained 70% and above, provided the
price is within the budget for the contract
2. Cumulative analysis – the maximum weight is allocated to the lowest
price proposal. All other price proposals receive points in accordance
with below formula
Fs = 1000 x F1/Fc (Fs = the financial score, F1 = the lowest price, Fc
= the price of the proposal under consideration)
The highest score will be calculated by formula:
HS = ( Ts x 70%) + (Fs x 30%)
HS = highest score, Ts = Technical score, Fs = Financial Score
UNDP Oversight
Provisions
 Committees established at three levels
 Single layer review – by one committee
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Thresholds for Committee Review
Level 1: CAP
Level 2: RACP
(For Country
Offices Only )
Level 3: ACP
Competitive Procurement Process (except for ICs)
Any contract [3] or a series
of contracts including
amendments to be awarded
to a vendor in a calendar
year that in aggregate has a
cumulative value:
Between USD
50,000 and up to Above the DPA and
the DPA (China: up to USD 2 million
150K)
HQ units :
Above the DPA
COs: Above
USD 2 million
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Review Committees
Terms of Reference
 Ensure UNDP procurement general principles adhered to:
- BVFM
- Fairness, integrity and transparency
- Effective international competition
- The interest of UNDP
 Mitigate UNDP risks
 Is covered by the requisite funding and programme
 Check against sanctions and watch-lists
 Recommend for approval or reject
 Approval: CO level by CD; RACP level by Regional CPO; and
ACP level by CPO
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Key Procurement Steps in Atlas
Requisition
Vendor
PO
Receipt
voucher
close PO
• Create requisition: requesting unit
• Approve requisition: team leader
• Create vendor: buyer
• Approve vendor: Finance Officer/OM
• Create PO: buyer
• Approve PO: Operations Manager or Deputy Country Director
• Receipt: requesting unit
• Payment request: requesting unit
• Voucher: Fin Asst
• Approve: Finance Officer or Operations Manager
• Close PO: buyer
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PO and Non-PO in Atlas
PO transaction: A Purchase Order for purchasing request
exceeding USD2,500 must be raised in Atlas and the
transaction should be made through a PO in Atlas.
 Non-PO transaction: For purchases up to USD2,500, it can
be procured without a PO in Atlas but however, the
expense should be reflected by Finance through a AP
voucher in Atlas.
 Asset Management: if the contract amount is USD 1500
and above for an asset, PO is still needed
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