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Doing Business with the United Nations (UN)

Doing Business with the United Nations (UN). Kerry Kassow, High Level Committee of Management’s Procurement Network (HLCM PN). Agenda. HLCM P rocurem ent Network UN Procurement & Statistics UN System of Organisations Supplying the UN Finding Information – UNGM

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Doing Business with the United Nations (UN)

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  1. Doing Business with the United Nations (UN) Kerry Kassow, High Level Committee of Management’s Procurement Network (HLCM PN)

  2. Agenda • HLCM Procurement Network • UN Procurement & Statistics • UN System of Organisations • Supplying the UN • Finding Information – UNGM • General UN Procurement Procedures • Practical Tips

  3. High Level Committee of Management’s Procurement Network The Procurement Network - Heads and Directors of 36 UN Agencies. Focuses on: • Increased Access for Suppliers • Business seminars • Special focus on suppliers from developing countries • Harmonisation • Supporting harmonised UN Procurement • Sustainable Procurement • Guidelines on IT, Furniture, Cleaning Products, Catering, Vehicles etc. • Sustainable Procurement Guide • Advisory Services • Professional Development • Recognition of procurement as strategic function • Professional Certification • Knowledge Sharing • Vendor Management (UNGM) • UN Global Marketplace = Common UN Procurement Portal • Special Projects

  4. UN Procurement & Statistics

  5. Procurement & United Nations ultimate goals • The UN is committed to sustainable and equitable development • World leaders and the UN have formed a global partnership to reduce extreme poverty with a deadline of 2015 – a number of targets known as the Millennium Development Goals

  6. Procurement & United Nations ultimate goals

  7. Procurement & United Nations ultimate goals • The UN is committed to sustainable and equitable development • World leaders and the UN have formed a global partnership to reduce extreme poverty with a deadline of 2015 – a number of targets known as the Millennium Development Goals • The UN Secretary General has asked all UN agencies, funds and programmes to become climate neutral and “go green” • Procurement is now recognised as a relevant component of the common effort towards sustainability

  8. The UN Global Compact and the Supplier Code of Conduct • The UN strongly encourages all vendors to actively participate in the Global Compact • The Global Compact promotes principles of human rights, labour, environment and anti-corruption www.unglobalcompact.org • TheUN Supplier Code of Conduct spells out the principles that should inspire the business practice of suppliers • The UN Supplier Code of Conduct provides the minimum standards expected of suppliers to the UN • Reaching the standards is a dynamic process; suppliers are encouraged to continually improve their workplace conditions

  9. Total UN procurement of goods and services 2008-2012 USD Million 15.37 14.54 14.27 13.79 13.59

  10. Procurement volume of the 10 principal UN agencies 2012 USD Million

  11. 10 major countries of supply to the UN System 2012 USD Million

  12. Major items procured by the UN System Goods • Food & Nutrition • Pharmaceuticals & vaccines • Motor vehicles & parts • Textiles, incl. clothing, tents, blankets, mosquito nets etc. • Medical, lab. & hospital equipment • Computer & IT equipment, incl. software • Petroleum & fuel products • Books, paper, office stationery & supplies • Furniture • Services • Transport services • Construction, engineering and architectural services • HR, consultants and project staff • Building & machinery maintenance & repair • Travel • Leasing & rental services • Computer & IT services • Financial & auditing services • Management services & consultancy

  13. UN procurement from the Czech Republic USD Million • Buying from the Czech Republic • (USD Million) 2012 • UN/PD 12.62 • IAEA .759 • UNDP .771 • OPCW .141 • UNICEF .100 14.51 = 0.09% 12.31

  14. Major goods and services supplied by the Czech Republic Services                • System Design & Development • Technical Advisory Services Goods • Motor Vehicles & Spare Parts • Laboratory Equipment • Medical Disposables • Education Supplies

  15. UN System of Organisations

  16. UN System of Organisations • The United Nations is not a single organisation but is in fact made up of a variety of organisational entities (agencies, organisations, commissions, programmes, funds, etc) • Each organisation is a market in itself and has a differentfunction, itsowncharacteristics and requirements i.e. UNICEF, WFP, UNHCR • Important to recognise the above if you wish to do business with the UN as each organisation has its own procurementdepartment, and processes and procedures may differ slightly

  17. Supplying the UN

  18. Are you ready to supply the UN? • Market knowledge (UN structure and culture) • Suitable products/services • Export experience/references • Languages • Competitive prices • Networks/partners (country knowledge, after-sales services etc.) • Capacity (financial, personnel) • Intercultural skills • Flexibility • Accuracy • Persistence and patience

  19. Step-by-step towards success • Extensive market research • Identification of relevant UN Organisations • Registration • Establish personal contacts • Thorough information about procurement practices • Obtain systematic/regular information about current procurement activities/opportunities • Bid according to tender documents/rules • Observe norms and standards • Seek clarification • Performance

  20. Finding Information

  21. Web-based information UN Procurement’s single commercial and procurement portal: United Nations Global Marketplace (UNGM) www.ungm.org

  22. Business information • The Annual Statistical Report • UN procurement by country • UN Agency procurement by country, commodity or service • Purchase orders and Contracts (over USD 30,000) placed by agency, by country of vendor, value and description of goods or services • Top Ten items procured by Agency • The General Business Guide • Lists all UN Organisations, fields of activity, procurement activities and requirements and registration procedures Available from www.ungm.org

  23. Register as a Potential Supplier www.ungm.org

  24. The UN Global Marketplace (UNGM) • UNGM = the procurement portal of the UN System • UNGM brings together UN procurement staff and the supplier community • UNGM acts as a single window, through which potential suppliers may register with the 20+ UN Agencies using the UNGM as their supplier roster  introduce your goods and services to many UN organisations, countries and regions byonly completing one registration form.

  25. The UN Global Marketplace (UNGM) • Free of charge • Basic & Qualification Levels - can ’save’ and return to the registration process • Subscribe to Tender Alert Service (over 25 new Procurement Notices posted daily) • Help? registry@ungm.org

  26. UN Procurement Procedures

  27. Common Guidelines for UN Procurement Procurement activities of the UN system are based on the following: • The objectives of the UN Organisation • Fairness • Integrity & accountability • Transparency • Effective competition • Best value for money The common guidelines cover procurement stages from sourcing to execution of a contract - www.ungm.org

  28. Common General Terms & Conditions • Cover both the procurement of goods and the contracting of services • Most provisions are common within the UN system – some may vary in text depending on agency requirements • Potential suppliers are encouraged to familiarise themselves with the UN General Terms & Conditions. Available at www.ungm.org

  29. How is the procurement method decided? • the value of the procurement • the nature of the goods and services to be procured • critical dates for delivery

  30. Types of solicitation Expression of Interest (EOI) - interested suppliers requested to provide information on their products, resources, qualification etc. Request for Quotation (RFQ) - less formal solicitation used for lower value procurement (< USD 100,000*) Invitation to Bid (ITB) - formal solicitation method for well-defined goods (or services); contract award is based on lowest acceptable bid (> USD 100,000) * Thresholds may vary

  31. Types of solicitation Evaluation Criteria for Invitations to Bid (ITB) Bids are always evaluated according to the principle of … “lowest price meeting technical specifications and stated requirements” Expression of Interest (EOI) - interested suppliers requested to provide information on their products, resources, qualification etc. Request for Quotation (RFQ) - less formal solicitation used for lower value procurement (i.e. USD 30,000 *) Invitation to Bid (ITB) - formal solicitation method for well-defined goods (or services); contract award is based on lowest acceptable bid (> USD 100,000)

  32. Types of solicitation Expression of Interest (EOI) - interested suppliers requested to provide information on their products, resources, qualification etc. Request for Quotation (RFQ) - less formal solicitation used for lower value procurement (< USD 100,000*) Invitation to Bid (ITB) - formal solicitation method for well-defined goods (or services); contract award is based on lowest acceptable bid (> USD 100,000) Request for Proposal (RFP) - formal solicitation, generally for services, whereby the contract award is based on a combined (weighted) evaluation of both the technical solution and price (> USD 100,000) * Thresholds may vary

  33. Types of solicitation • Evaluation Criteria for Requests for Proposal (RFP) • Always evaluated according to the principle of best • value • Best value: best overall benefit, both technically • and financially • → Lowest cost may not necessarily be best • value for money • The evaluation criteria are set out in the RFP • Generally, the technical proposal will be given 60%-70% of the overall score, and 30%-40% will be given to the financial proposal Expression of Interest (EOI) - interested suppliers requested to provide information on their products, resources, qualification etc. Request for Quotation (RFQ) - less formal solicitation used for lower value procurement (i.e. USD 30,000 *) Invitation to Bid (ITB) - formal solicitation method for well-defined goods (or services); contract award is based on lowest acceptable bid. Request for Proposal (RFP) - formal solicitation whereby the contract award is based on a combined (weighted) evaluation of both the technical solution and price. * Thresholds may vary

  34. Thresholds/Types of solicitation Up to 100,000 USD* - Informal, simplified acquisition procedure- Requests for Quotation (RFQ)- Minimum 3 responsive quotes recommended- Lowest priced, technically acceptable bidder or best value bidder (evaluated). Above 100,000 USD* - Invitation to Bid (ITB) and Request for Proposal (RFP) - Open and formal: advertised (on the web) generally larger shortlist (minimum 6 potential bidders, 3 to comply) - Public bid opening - CPO approval after review and recommendation by Contract Committees * Thresholds may vary

  35. In addition . . . Long Term Agreement/Frame Agreement Based on ITB or RFP process 2-4 years periodPotentially more than one LTA for same goods/service Single tendering exercisereduces administrative effort The supplier benefits in terms of continuity of supply Direct ContractingException to the ruleIn case of extreme emergencySole sourceIf competitive bidding process has failed for valid reasonVery stringent controls and has to be well justified

  36. Evaluation Criteria • Acceptance of UN payment terms, terms & conditions, contract template, liability, legal capacity, etc. • Technical Requirements • Delivery Terms • Delivery Time • Recognised International/National Standards • Supporting Documentation • Proven Production Capacity & Financial Strength • Warranty Conditions • Appropriate After-sales Service • Previous Contract References • Price

  37. How are vendors identified? • Competitive suppliers of previous procurement - Past performance • Suppliers of the required goods or services, found on the UN Global Market - Codification • Through calls for Expression of Interest (EOI) - Notices • Search of World Wide Web • Databases e.g. Kompass, DACON • Trade Missions, Chambers of Commerce • Exchange with other UN Agencies

  38. Practical Tips General • Always respond to bid invitations – if you cannot submit an offer, inform accordingly Bid Preparation • Study bid documents, conditions and requirements carefully • Ask for clarification if uncertain • Ensure that your offer meets ALL bidding requirements • Technical specifications – read carefully and meet minimum requirements • Quality statements – international/national standards

  39. Practical Tips • Alternative proposal may be provided, in addition to what is being asked for • Submit bid, catalogues etc. in requested language • Prepare bid to facilitate work of procurement officer - requested format, use submission forms Bid Submission • Meet deadline • Attend public bid openings, whenever called Remember • Learning process

  40. Thank you! Contact: kerry.kassow@undp.org

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