HLCM PN WG Harmonization
Procurement Process and Practice
Harmonization in Support of Field
Operations
Options for common UN procurement
Animations
HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes
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‘Common UN Procurement at the Country Level’:
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Background and Purpose
Background
• The document ‘Common UN Procurement at the Country Level’
(“Guidelines”) was endorsed by the UNDG and HLCM in 2012
• Based mainly on the General Assembly‘s Comprehensive Policy
Reviews, progress reports from Delivering as One pilots; these
documents encourage the UN System to increase efficiency,
effectiveness and coherence at the country level.
Purpose
• Facilitate common procurement at the country level, whilst respecting
the processes, procedures of individual UN entities
• Recommendations for business processes for common procurement,
sharing and developing common LTAs, and for common
procurement review committees at the country level.
• Annexes include templates, forms, and tools required to move forward
on common procurement.
HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes
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Various options of UN cooperation in common
1
procurement are elaborated in the Guidelines
Using a
joint
procurement team
No or
minimal
common
procurement
Options for
common UN
procurement
Procuring
from
another UN
organization
Using
existing
LTAs or
contracts of
other UN
orgs.
Using
procurement
services of
other UN
orgs.
HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes
Using joint
LTAs and
contracts
(“lead
agency”)
These options
are further
elaborated on
the following
slides
3
Using existing LTAs/contracts of other
1
UN organizations (1): Piggy-backing
2
Goods
Services
Purchase Order
_____
UN-B
3
Invoice
To UN-B
1
UN-B
UN-A
Contract / LTA
_____
UN-A
HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes
______
Supplier
Supplier
4
Using existing LTAs/contracts of other UN
1
organizations (2): Re-Use Tender Result
2
Services
Contract / LTA
_____
UN-B
3
Goods
______
Supplier
Invoice
To UN-B
1
UN-B
ITB / RFP
UN-A
HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes
Supplier
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Utilizing LTAs/Contracts of other UN
1
entities
Details and main benefits
• Usually the same terms and
conditions are used: Prices,
Delivery, Services, Obligations
• Depending on your agency‘s
procurement procedures (no) further
procurement review required
• Negotiation position of UN entities
towards supplier improves indirectly
(better service and relationship)
FOR DISCUSSION
Challenges
• Needs approval of originating UN
entity and supplier
• No direct leveraging of UN entities‘
market power with suppliers in
terms of volume bundling and lower
prices
• LTA database with accurate and upto-date data required
• Reduced staff workload: Better use
of staff time and effort
• See common procurement survey
(part 2 of this presentation) for most
suitable commodity groups
• This model is pursued most
frequently at the country level
HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes
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Procurement lead-agency:
1
Joint solicitation
3b
5
Goods
Services
Contract / LTA
_____
UN-B
UN-C
UN-D
______
Supplier
2
ITB / RFP
4a
Purchase Order
_____
UN-B
UN-C
UN-D
GTCX
GTCX
Invoice
To UN-B, UN-C
or UN-D
UN-D
UN-C
UN-B
1
“1 or x LTAs1”
1
Contract / LTA
_____
UN-A
UN-A
Rep. of UN-A
Rep. of UN-B
Rep. of UN-C
Rep. of UN-D
3a
______
Supplier
Supplier
Joint Specs
possibly also
joint financial,
technical
evaluation
Tender needs to specify number of contracts / LTAs and the applicable GTC for the resulting LTA(s)
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Procurement lead-agency:
1
Joint solicitation
Details and main benefits
• All organizations receive the same
price structure, rates, exemptions
and/or service support agreed to
with the provider or supplier
• Depending on your agency‘s
procurement procedures (no) further
procurement review required
• Direct leveraging of UN entities‘
market power with suppliers
FOR DISCUSSION
Challenges
• Assignment of lead agency: Who
drives the procurement process as
lead agency and takes on the
workload; possibly balancing of
workload on several agencies for
different commodity groups
• Joint requirements specification and
joint evaluation requires additional
initial effort and coordination
• Reduced staff workload: Better use
of staff time and effort
• Negotiation position towards supplier improves directly (preferential
terms and rates, better service)
• See common procurement survey
(part 2 of this presentation) for most
suitable commodity groups
HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes
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Goods
1 Procurement from UN Entity
Services
2
Purchase Order
“... based
on MoU ...“
_____
UN-B
3
Invoice
To UN-B
UN-B
1
MoU
_____
UN-B
UN-A
______
UN-A
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1 Procurement from UN Entity
Details and main benefits
• Can enable leveraging another UN
entity‘s expertise in procuring
certain goods or services
• Depending on your agency‘s
procurement procedures (no) further
procurement review required
FOR DISCUSSION
Challenges
• Handling fee may be incurred by
another UN entity – reflecting the
administrative overhead which was
involved in procuring the goods or
services
• Reduced staff workload: Better use
of staff time and effort
• Can be the fastest way to procure
certain goods and services if they
are on stock at another UN entity
HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes
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Outsourcing among UN entities:
1
Procurement action
Goods
Services
5
7
6
Invoice
To UN-A
To UN-B with
service fee
1
UN-B
MoU
2
Invoice
Request
Please carry
out
procurement
action
UN-A
3
Supplier
ITB / RFP
4
Contract / LTA
_____
UN-A
______
Supplier
GTC
HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes
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Outsourcing among UN entities:
1
Procurement action
Details and main benefits
• Can enable leveraging another UN
entity‘s expertise in procuring
certain goods or services
• Depending on your entity‘s
procurement procedures (no) further
procurement review required
• Reduced staff workload: Better use
of staff time and effort
• Can be a particularly useful model
for small UN entities which do not
have sufficient procurement
expertise or capacity present in a
country
FOR DISCUSSION
Challenges
• Handling fee may be incurred by
another UN entity – reflecting the
administrative overhead which was
involved in procuring the goods or
services
• Details need to be determined on a
case by case basis (Who receives
the invoice? To whom are the goods
delivered?)
HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes
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Outsourcing: Project including
1
procurement (Option A)
Goods
Services
Project
5
3rd
party
6
Invoice
for project
4
Invoice(s)
To UN-A
To UN-B with
service fee
UN-B
1
MoU for project
Please carry out
project
UN-A
2
One or
more
supplier(s)
ITB(s) / RFP(s)
3
Contract(s)
_____
UN-A
______
Supplier
GTC
HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes
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Outsourcing among UN entities: Project
1
including procurement (Option B)
Goods
Services
Project
3rd
party
3
4
Invoice
for project
To UN-B
UN-B
1
UN-A1
RFP
for project
2
Contract
for project
_____
UN-B
1 UN-A successfully wins the RFP in a competitive process including other potential suppliers
HLCM PN WG Harmonization – Options for Cooperation in Procurement – Processes
______
Supplier
or UN-A
GTC
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Outsourcing among UN entities:
1
Project including procurement
Details and main benefits
• Can enable leveraging another UN
entity‘s expertise in procuring
certain goods or services or
delivering certain types of projects
(e.g. complex construction works
like roads or bridges, running
elections etc.)
• Can be a particularly useful model
for small UN entities which do not
have sufficient procurement or
project management expertise or
capacity present in a country
FOR DISCUSSION
Challenges
• Handling fee will be incurred by
another UN entity – reflecting the
adminstrative overhead and project
management services which were
involved in procuring the goods or
services and delivering the project
• Details need to be determined on a
case by case basis
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Contact
Project Team
Ann Hasselbalch
Chair WG Harmonization
E-Mail: ahasselbalch@unicef.org
Office: +45 35 27 32 30
Eric Dupont
Vice-Chair WG Harmonization
E-Mail: dupont@unfpa.org
Office: +45 35 46 73 67
Alexander Blecken, PhD
Procurement Specialist
E-Mail: ablecken@unicef.org
Office: +45 35 27 31 65
Skype: alexander.blecken
Phillip Walker
Project Assistant
E-Mail: pwalker@unicef.org
Office: +45 35 27 31 56
Skype: phillip.walkerUNICEF
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