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2. Procurement Principles

2. Procurement Principles. Quality is integrated in all processes & stages. Maximise economy and efficiency. Encourage as wide a solicitation of proposals as possible to promote competition.

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2. Procurement Principles

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  1. 2. Procurement Principles • Quality is integrated in all processes & stages. • Maximise economy and efficiency. • Encourage as wide a solicitation of proposals as possible to promote competition. • Encourage and include sources of supply indigenous either to the country being assisted or from other developing countries. • Encourage and include sources of supply from underutilized major donor countries. • Promote integrity and fairness and maintain the transparency of the procurement process.

  2. 3. The Aim of Procurement • RIGHT Goods/Services at the • RIGHT Quality • RIGHT Price • RIGHT Quantity • RIGHT Time • RIGHT Place "The Six Rights "

  3. 3.1 Providing the RIGHT Goods/Service • involves: • Getting all the information that enables you to make the right purchase decision by: • Knowing the specifications (size, colour, performance, tensile strength, formulation etc.) • Conducting Market Research to identify: • Availability (different types) • History (bad reports, failure rates, legal issues) • Consumer preferences • Local support and back-up (trained personnel to handle implementation and maintenance service, availability of spare parts etc.).

  4. 3.2 Providing the RIGHT Quality involves: • Perform thorough evaluation of supplier before contract award based on documentary evidence, factory inspections and samples of commodity. • Conducting sampling and testing before shipment by independent inspection company and laboratory to a pre-determined testing protocol known by the supplier at time of contract award. • Ensure that all commodities conform to international standards. • Fit for purpose for which it is acquired.

  5. 3.3 Providing at the RIGHT Price involves: • Market research (International/Local). • Competitive Bidding (ICB/LIB), Request for Proposal (RFP), Request for Quotation (RFQ) or Negotiation. • Identifying the Right Source. • The RIGHT Specification (WHO, MOH Essential Drug list, UNICEF Catalog, UNFPA/TSD Contraceptives list). • Identifying the Right Source (Manuf., Agent, Trader). • Economic quantities. • Appropriate contract terms.

  6. 3.4 Establishing the RIGHT Quantities involves knowing: • Usage rates (past consumption patterns and levels, e.g. preferences between IUD's and female condoms and the overall volume). • Storage and distribution capacity (shelf-life of product). • Mode of transportation. • Economic Order Quantity: Economies of Scale, Discounts for larger orders, Storage, Usage Rate. • Budget availability.

  7. 3.5 Providing goods/services at the RIGHT Time: • Lead time: the time between the issuance of a request and receipt of the goods, incl.: • Time for Order Processing (FO and HQ) • Time for Manufacturing Process • Time for shipment to Destination • Time for Inspection / Custom clearance • Time required for internal distribution.

  8. 3.6 Providing the goods to the RIGHT Place involves emphasis on training: • Correct Consignee Address & Details (indicate special port if applicable). • Correct Documentation (AWB, B/L, invoice, packing list, Certificate of Analysis, etc.). • ** Indication of Special requirements for Licensing, packaging, inspection, labeling, keep cool items, etc. ** • Import licenses, Exemptions.

  9. 5. Steps in the Procurement Cycle Need Identified UNFPA FIELD OFFICE or External client Budget Identified & Requisition raised Procurement Unit Invoice Goods received Receiving & Inspection Report Supplier Qualification Shipping Advice Market Research Delivery >US$100,0000 CRC RFP / ITB > US$ 30,000 Specifications Checked Certify Funds by UNFPA Finance Branch Purchase Order SUPPLIER Request for Quotations <US$30,000 PSS/UNFPA April, 2004

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