HLCM PN WG Harmonization Procurement Process and Practice Harmonization in Support of Field Operations

1. Options for common UN procurement Animations HLCM PN WG HarmonizationProcurement Process and Practice Harmonization in Support of Field Operations

2. ‘Common UN Procurement at the Country Level’: Background and Purpose 1 • 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.

3. Various options of UN cooperation in common procurement are elaborated in the Guidelines 1 These options are further elaborated on the following slides

4. Using existing LTAs/contracts of other UN organizations (1): Piggy-backing Goods Services 1 3 Invoice To UN-B 2 Purchase Order _____ UN-B UN-B UN-A Supplier 1 Contract / LTA _____ ______ UN-A Supplier

5. Using existing LTAs/contracts of other UN organizations (2): Re-Use Tender Result Goods Services 1 3 Invoice To UN-B 2 Contract / LTA _____ ______ UN-B Supplier 1 ITB / RFP UN-B UN-A Supplier

6. Utilizing LTAs/Contracts of other UN entities FOR DISCUSSION 1 Details and main benefits Challenges • 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) • 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 • 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 up-to-date data required

7. Procurement lead-agency: Joint solicitation Goods Services 1 4a Purchase Order _____ UN-B UN-C UN-D GTCX GTCX 5 Invoice To UN-B, UN-C or UN-D 3b Contract / LTA _____ ______ UN-B Supplier UN-C UN-D 2 ITB / RFP “1 or x LTAs1” UN-A Supplier UN-D 3a Contract / LTA _____ ______ UN-A Supplier UN-C Rep. of UN-A Rep. of UN-B Rep. of UN-C Rep. of UN-D 1 Joint Specs possibly also joint financial, technical evaluation UN-B • Tender needs to specify number of contracts / LTAs and the applicable GTC for the resulting LTA(s)

8. Procurement lead-agency: Joint solicitation FOR DISCUSSION 1 Details and main benefits Challenges • 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 • Reduced staff workload: Better use of staff time and effort • Negotiation position towards sup-plier improves directly (preferential terms and rates, better service) • See common procurement survey (part 2 of this presentation) for most suitable commodity groups • 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

9. Procurement from UN Entity Goods Services 1 Purchase Order “... based on MoU ...“ _____ UN-B 2 3 Invoice To UN-B UN-B UN-A 1 MoU _____ ______ UN-B UN-A

10. Procurement from UN Entity FOR DISCUSSION 1 Details and main benefits Challenges • 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 • 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 • Handling fee may be incurred by another UN entity – reflecting the administrative overhead which was involved in procuring the goods or services

11. Outsourcing among UN entities: Procurement action Goods Services 1 5 7 Invoice To UN-B with service fee Invoice To UN-A 6 UN-B UN-A Supplier 4 Contract / LTA _____ ______ UN-A Supplier 3 ITB / RFP 1 2 MoU Request Please carry out procurement action GTC

12. Outsourcing among UN entities: Procurement action FOR DISCUSSION 1 Details and main benefits Challenges • 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 • 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 goodsdelivered?)

13. Outsourcing: Project including procurement (Option A) Goods Services Project 1 3rd party 5 6 Invoice for project To UN-B with service fee Invoice(s) To UN-A 4 UN-B UN-A One or more supplier(s) 3 Contract(s) _____ ______ UN-A Supplier 2 ITB(s) / RFP(s) 1 MoU for project Please carry out project GTC

14. Outsourcing among UN entities: Project including procurement (Option B) Goods Services Project 1 3rd party 3 Invoice for project To UN-B 4 UN-B UN-A1 2 Contractfor project _____ ______ UN-B Supplier or UN-A 1 RFP for project GTC • UN-A successfully wins the RFP in a competitive process including other potential suppliers

15. Outsourcing among UN entities: Project including procurement FOR DISCUSSION 1 Details and main benefits Challenges • 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 • 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

16. Contact Alexander Blecken, PhDProcurement Specialist E-Mail: ablecken@unicef.org Office: +45 35 27 31 65 Skype: alexander.blecken 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 Phillip Walker Project Assistant E-Mail: pwalker@unicef.org Office: +45 35 27 31 56 Skype: phillip.walkerUNICEF