In accordance with UN’s Financial Regulations and
Rules, the following general principles must be
given due consideration while executing
procurement on behalf of the organization:
 Best Value for Money
 Fairness, Integrity, Transparency
 Effective International Competition
 The Interest of the UN
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In the context of the procurement process,
obtaining “best value for money” means selection
of the offer, which presents the optimum
combination of life-cycle costs and benefits, which
meet the UN Agency’s [programme] needs.
Best value for money should not be equated with
the lowest initial price option rather requiring an
integrated assessment of technical, organizational
and pricing factors in light of their relative
importance (i.e., reliability, quality, experience,
reputation, past performance, cost/fee realism and
reasonableness).
The Agency’s parameters can also include social,
environmental and other strategic objectives
defined in the procurement plan. The principle of
best value for money is applied at the award stage
to select the offer that effectively meets the stated
requirement.
To ensure that best value for money is obtained, the
process of soliciting offers and selecting a
Contractor should:
 maximize competition;
 minimize the complexity of the solicitation,
evaluation, and the selection process;
 ensure impartial and comprehensive evaluation
of solicited offers; and
 ensure selection of the Contractor whose offer
has the highest degree of realism and whose
performance is expected to best meet the
specs, statement of works/ terms of reference.
As competition is the basis for efficient,
impartial and transparent procurement,UN
Agencies are responsible for ensuring the
integrity of the procurement process and
maintaining fairness in the UN’s treatment of
all offerors.
Sound procurement (i.e., openness of the
process; probity; complete and accurate
records; accountability; confidentiality)
establishes and then maintains rules and
procedures that are attainable and
unambiguous.
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The objective of competitive processes as
described in these Guidelines is to provide all
eligible prospective Offerors with timely and
adequate notification of the procuring entity’s
requirements and an equal opportunity to tender
for the required goods, civil works and services.
Procurement Units should ensure that restrictions
are not placed on the competitive processes
limiting the pool of potential Offerors.
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In practice, the specific procurement rules and
procedures established for the implementation of
a programme are contingent upon the individual
circumstances of the particular case; however the
following four considerations generally guide the
UNDP’s interest for the acquisition of inputs:
The need for economy and efficiency in the
implementation of the programme, including the
procurement of goods, civil works and services
involved.
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the access to procurement opportunities for
all interested and qualified Offerors
worldwide.
giving all eligible Offerors the same
information and equal opportunity to
compete in providing goods, civil works or
services; and
the importance of transparency in the
procurement process
As funds of UNDP are entrusted to the
organization by the public at large, it is
imperative that all transactions committing
UNDP are carried to the highest degree of
public trust and should be conducted with
the highest degree of integrity.
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The award of a contract shall be made after
due consideration has been given to the
general principles described in Regulation
21.02 and in accordance with the following:
When a formal invitation to bid has been
issued, the procurement contract shall be
awarded to the qualified bidder whose bid
substantially conforms to requirements set
forth in the solicitation documentation and
offers the lowest cost to The UN;
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When a formal request for proposals has
been issued, the procurement contract shall
be awarded to the qualified proposer whose
proposal, all factors considered, is the most
responsive to the requirements set forth in
the solicitation documentation.
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In selecting the members of the evaluation
team, the type of procurement being carried
out should be considered. In particularly
complex procurement cases, an external
expert may be included to assist in the
evaluation process as one of the team
members.
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In these cases it is important to identify the
need for an expert early in the process (i.e.,
during the planning stage) in order to avoid
unnecessary delays and to ensure that proper
funds are budgeted
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The work of the evaluation team is strictly
confidential and information about
submissions or proposals shall not be
publicly revealed
Representatives from the funding source, the
client organization, or national
representatives may participate in the
evaluation process only as observers.
Evaluation Team members must be instructed
to immediately indicate if they are in a
potential conflict of interest situation with
one of the suppliers (e.g., owing shares in the
supplier’s company, familiar relationship with
suppliers, etc)
All observers or participants in the evaluation
team who are non-UN staff must sign
confidentiality and no conflict of interest
statements.
UNDP is committed to making information
about their programmes and operations
available to the public. UNDP considers
public access to information a key component
of effective participation of all stakeholders,
including the public, in the human
development process.
UNDP recognizes that there is a positive
correlation between a high level of
transparency through information sharing
and public participation in UN-supported
development activities
Public access to comprehensive and timely
information held or generated by UNDP will
continue to facilitate the transparency,
accountability and national ownership of
UNDP programmes and operations.
To the extent that much of UNDP information
is already available to the public through
various means, including through the UNDP
corporate website and individual Country
Office websites, this Policy codifies existing
principles, practices and procedures.
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Information under the following categories
is deemed confidential and not available to
the public:
◦ Information received from or sent to third parties,
under an expectation of confidentiality.
◦ Information whose disclosure is likely to
endanger the safety or security of any individual,
violate his or her rights, or invade his or her
privacy;
◦ Information whose disclosure is likely to
endanger the security of Member States or
prejudice the security or proper conduct of any
operation or activity of UN;
◦ Information covered by legal privilege or related
to access to internal audit reports;
◦ Internal inter-office or intra-office documents,
including e-mails and draft documents;
◦ Internal inter-office or intra-office documents,
including e-mails and draft documents;
◦ Commercial information where disclosure would
harm either the financial interests of UN or those
of other parties involved;
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◦ Information which, if disclosed, in UN’s view
would seriously undermine the policy dialogue
with Member States or implementing partners.
Abusive, excessive or vexatious requests may be
denied.
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Based on the UN decentralized structure,
consolidated procurement plans are developed at
different levels, including Corporate, Business Unit
and Country Office.
Procurement planning will also take place at the
project level or even at the activity level, depending
on the complexity of the activity and the number of
interrelated procurement actions.
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All procurement plans are based on the
Annual Work Plans (AWP’s). AWP’s are
agreed in consultation with Government.
Procurement plans are internal documents
and under the confidentiality clause (e), are
not for public disclosure.
Contracts are confidential. However, generally
the UNDP makes public all its awarded
contracts in excess of USD100,000 online on
Country Office websites, by region and kind
of services/goods (type, scope and amount of
the contract).
However, for security reasons, UNDP Somalia
Office has a waiver from posting this
information on its website for public view.
This is line with the confidentiality clause (b)
& (c) cited above. The other UN Agencies
have a similar policy.
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Based on the procurement principles the UN should
ensure that restrictions are not placed on the
competitive processes limiting the pool of potential
Offerors.
However, where possible local procurement is
encouraged where it provides value for money,
creates local employment, helps to build local
capacity and is in the interests of the Organization.
Local Long Term Agreements (LTA’s) are being
developed resulting from a competitive process for
regularly purchased goods and services.
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Under the international agreements
governing the procurement for country
programmes four considerations consistently
guide the UN’s interest for the acquisition of
inputs:
the need for economy and efficiency in the
implementation of the programme, including
the procurement of goods, civil works and
services involved;
the access to procurement opportunities for
all interested and qualified Offerors
worldwide, except where other criteria
mandated by the Security Council or General
Assembly prevails.
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giving all eligible Offerors the same
information and equal opportunity to
compete in providing goods, civil works or
services; and
the importance of transparency in the
procurement process.
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Contracts for rentals are granted based on
the results of a competitive bidding exercise
resulting in the development of Long Term
Agreements (1 year) with multiple service
providers who the Somaliland authorities
registered companies with proof of liability
coverage etc and who provide the most
competitive rates that meet the safety and
technical requirements of UN Agencies.
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Consistent with the provisions contained in
UNDP’s Regulation 21.02 and except as
otherwise provided in Rule 121.05,
procurement contracts shall be awarded on
the basis of effective competition, and to this
end, the competitive process will, as
necessary, include:
Market research to identify potential
Contractors
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Competition on as wide a geographical basis
as practicable and suited to market
circumstances;
Consideration of prudent commercial
practice;
If UN Agencies do not feel that market
research has provided a pool of suitably
qualified Consultants locally, such
Consultants must then be sourced from
elsewhere
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UNDP projects in Somalia use the following
principles when undertaking civil works
projects:
Liaise with MOPW on preparation of all Bills of
Quantity (BOQ), Scopes of Work (SOW), and
Technical Drawings.
Ensure Signed approval of all BOQ’s and
technical drawings by MOPW, recognizing
that MOPW is the lead Ministry for all infrastructure works projects.
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Certification of Land Titles on which
proposed new constructions are to be built
Ensure that all pre-qualified Contractors are
registered with the appropriate authorities
and have current business licences
Reference check and capacity assessment of
any Contractor recommended for award of
contract.
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For all GoSL buildings, mandatory testing of
all construction materials will be undertaken
in the MOPW’s laboratory.
Final endorsement of satisfactory completion
and quality standards with MOPW for
Government buildings before certification of
final payment.
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The UNDP Engineers welcome the involvement of
MOPW Engineers in reviewing work progress during
regular scheduled site visits and attesting to final
satisfaction of completed works. However, The
UNDP Engineers authority is the deciding factor in
awarding final payment or retention of payments,
as appropriate.
It should be noted however, that Agencies vary in
their approach to Government interaction for civil
works projects; some working specifically with their
respective Line Ministry for approval of BOQ’s,
Scopes of Work.