UN Procurement Procedures
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The Procurement Process
Strategic analysis/
Procurement plan
Request for procurement
action
Development of
specifications/TOR/SOW
Identification of suppliers
Market research
Selection of procurement
method
Informal procurement
method: Shopping/RFQ
Formal procurement
method: ITB/RFP
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The Procurement Process
Informal
‘Shopping’
Less than USD2,500
Formal procurement
method: ITB/RFP
RFQ – Request for
Quotation,
Up to USD30,000
ITB
Invitation to Bid,
Over USD30,000
RFP
Request for Proposal,
Over USD30,000
Used for Goods and
Services
Used for Goods and
Civil Works
Used for Services
(can incl. Goods)
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Preparation of formal
solicitation documents
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Preparation of formal
solicitation documents
Identify potential
Suppliers
Document 3
Quotatations
Lowest Price
Bid Receipt & Opening
Evaluation
Contract approval
process
Contract award
Contract management
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Lowest Priced
Compliant Bidder
Separate Bid Receipt &
Opening Tech & Fin
Separate Evaluation
Contract approval
process
Contract award
Contract management
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Best Scored bidder
The Procurement Process
Informal
‘Shopping’
Less than USD2,500
Formal procurement
method: ITB/RFP
RFQ – Request for
Quotation,
Up to USD30,000
ITB
Invitation to Bid,
Over USD30,000
RFP
Request for Proposal,
Over USD30,000
Used for Goods and
Services
Used for Goods and Civil
Works
Used for Services
(can incl. Goods)
Expression of Interest
Prequalification
Post Qualification/
Pre-shipment Inspection
Identify potential
Suppliers
Document 3
Quotatations
Lowest Price
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Preparation of formal
solicitation documents
Bid Receipt & Opening
Evaluation
Contract approval
process
Contract award
Contract management
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Lowest Priced
Compliant Bidder
Advertisement
Preparation of formal
solicitation documents
Separate Bid Receipt &
Opening Tech & Fin
Separate Evaluation
Contract approval
process
Contract award
Contract management
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Best scored bidder
Additional processes
• Expression of Interest
Used as part of market research
Identifying and prequalifying suppliers
Keep abreast with new developments
Does not necessarily result in procurement
• Prequalification
Can form part of ITB/RFP
Used for high-risk goods such as pharmaceuticals, condoms
Used for where high impact if delivery fails, such as elections
Confirming manufacturing, quality standards, other issues i.e. child
labor
Very specialised for pharmaceuticals
• Post Qualification/Preshipment Inspection
Used as part of testing pre-contract stage
Ensuring equipment works under special conditions
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Samples of EOI
Agency website, UNPD
Agency website, UNDP
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Request for Proposal (RFP)
Application:
• Used for formal competitive bidding when requirements cannot be
described in a definite or complete manner, i.e. when a technical or other
solution is sought (TOR).
• Normally used for procurement of works and services. Two-envelope
system (technical and financial proposal).
Important:
• Evaluation Criteria must be part of RFP.
Award of contract:
• Select proposal that offers the best value in accordance with evaluation
criteria.
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RFP Process Illustrated
•
•
•
•
Based on actual case
Procument of Services results in RFP method
Project for Guard Security Service for UN offices in Pakistan
UNDP Pakistan country office requested UNDP/IAPSO in Copenhagen to
undertake procurement on their behalf
• Security service also for other UN Agencies in Pakistan
• Case illustrates:
EOI
Pre-bidding meeting
Detailed Tender Documentation
Examples of Evaluation Criteria related to Services
Examples of Outcomes
RFP resulting in Direct Contracting
And another unexpected turn in events . . .
• Confidentiality . . . Names and documentation
• NB: RFP can also be done for goods, e.g. part of complete solution, or where
there could be alternative or varied goods to meet the same need
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EOI
Reason
Supply market analysis
Needed to comply with UN
Security Council requirements
Preqaulification
Published on IAPSO website
and in local media
Outcome
19 EOIs Received
8 Companies shortlisted
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RFP
RFP
Participation only for short
listed suppliers in this case
Why? Control of process . . .
Required 3 compliant bids
If no prequalification, all
welcome to participate
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What to look out for
• Allow to bid on sections or only
total requirements
• Pre-bidding meeting
• Clarifications and Amendments
Communicated to all
Suggesting alternatives
Advise on short delivery times
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Pre-bid meeting
• CVs for staff
• Suggestions by
suppliers
• Letters rule
• Detailed evaluation
method not disclosed
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Pre-bid meetings and visits
• Open to suggestions
• In UN’s interest to have compliant bids
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Details
• Language
• Checklist of documents
• Use the correct format!!
• Impressions and facts
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Policies and Standards
• Quality Standards vary
• Supplier Code of Conduct
• NB:
No pricing information
Numbering
Proprietary Info
Confidentiality
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More Details
• Quote in requested
currency
• Note: Letter overrule
figures
• Signatures
Copies
• Payment terms not
negiotable
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Deadlines
• No exceptions!
• Time difference
• Envelopes
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Opening and Evaluation
• Committee
• Errors
• Non-responsive bids
Late
Unsigned
Incomplete
Wrong format
• Tech & Fin Proposals
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Formula
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Actual Score sheet
Company A
Company B
• Ranking
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Details of Evaluation
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Actual document and Evaluations
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Actual evaluation comments
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Technical Evaluation Outcome
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Contract
• Cancel process
Poor process
Lack of funds
Change of needs
• Flexibility and
patience
required
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Performance Security and Payment
Page 31
•
•
•
•
Bank guarantees/performance security
Payment terms not negotiable
30 days after delivery
Could be staggered depending on services/goods
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The form
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Page 24
Performance
• Crucial
• Share information
via UNGM
• Vendor eligibility
policies
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Page 27
Price Schedule
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Financial Proposal’s Opening
Company A
Company B
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Financial Proposal
Company A
Company B
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Internal Review of Procurement Process
• For all processes
over USD30,000
• Between 30,000 –
300,000 Local
approval
• Over USD300,000
approval at HQ
level
• Thresholds vary
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Headquarter Review
• Review:
Process
Value For Money
Quality Assurance
Documentation
Outcome:
• Queried number, qualification and supervision of guards
• Seeked report on performance of Company A (existing supplier)
• Concerned about limited competition
and requested outcome of evaluation results
• Performance report shows issues with supplier ...
• Meeting with supplier to address issues
• Rewarded for 6 months period and measures and stringent
arrangements put in place to monitor
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How the ITB Process Differ?
•
Used for goods and works where specific quantities are
available.
• Simplified process, comparison simple
Instructions to bidders includes:
• Incoterms 2000
• Delivery dates FCA and FOB
• Freight arrangements
• After-sales service
• Training
• Spare parts
• Deviations from specifications
• Country of origin information and developing countries
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Supplier qualifications
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Evaluation Criteria
• Compliance with
GTAC
• Supplier Criteria
• Technical Specs
• Price and Delivery
Time
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Price schedule
• Do NOT change format
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Deviations
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Practical Tips
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Practical Tips for Potential Vendors
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
Research UN agencies and traditional items/services required

Register on www.ungm.org
E-mail address
Correct coding
Key words
Up to date
Respond to reminders
Marketing your goods and services
Look for EOI
Post/e-mail information
English on website
Start where you are doing business
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Practical Tips for Potential Vendors

Finding opportunities
UNGM – Tender Alert Service
Agencies’ websites


Always respond

Seek clarification
Pay attention to:
Deadlines, timezones
Format
Language
Currency
Addressing of envelopes
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Practical Tips for Potential Vendors
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
Attend Bid Openings or ask Embassy/Consulate

Be patient and perservere
Prepare to meet new challenges
Kits, training materials, after-sales service
Awareness of environmental concerns
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